14046. Importers & Traders National Bank (New York, NY)

View Charter #1231 on SPMC

Bank Information

Episode Type
Run Only
Bank Type
national
Bank ID
1231
Charter Number
1231
Start Date
June 29, 1893
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
87995e7ca6009a8d

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Fed/other loan

Description

Articles describe heavy money-market strain in late June 1893 and the bank's taking of clearing-house loan certificates (reported $500,000) as part of the clearing-house committee action to relieve high money rates. In August 1893 the bank briefly delayed payment on a city warrant and was reported as not prepared to meet so big a demand for currency but later honored the claim. There is no mention of a suspension, receivership, or permanent closure of the bank — only acute liquidity pressure and emergency measures — so classify as a run_only episode (runs/large withdrawals resolved while bank remained open). OCR errors in articles were corrected (e.g., Importers and Traders National Bank spelled in different variants).

Events (4)
1. June 6, 1865 Chartered
Source
historical_nic
2. June 29, 1893 Run
Cause
Macro News
Cause Details
Severe money-market strain/panic: very high money rates in New York (rates quoted up to 75%) and clearing-house loan committee issued certificates to relieve market.
Measures
Took clearing-house loan certificates (reported $500,000) as part of the clearing-house committee issuance to raise liquidity.
Newspaper Excerpt
This bank took out $500,000 of certificates ... Importers and Traders National Bank
Source
newspapers
3. August 10, 1893 Run
Cause
Macro News
Cause Details
Liquidity pressure: bank reportedly not prepared to meet a large demand for currency for city payrolls, causing a short delay in payment but later honored the warrant.
Measures
Consultation between bank president and city officials; bank later honored the warrant and assured it would meet the city's demands.
Newspaper Excerpt
Payment was refused at the Importers' and Traders' Bank yesterday on a city warrant for $104, but President Perkins said that the refusal was due to a misunderstanding ... He was paid later.
Source
newspapers
4. May 9, 1923 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (3)
1. June 30, 1893 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, June 30, 1893

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Article Text

YORK, June 29.-The rates this for NEW which mounted skyward being money as much as 75 per cont in the morning, quoted in the forenoon, broke midmost unexpected manner about of the the result of the action house loan committee, is been previously clearing day has as pointed commit- out, which, the as same as the clearing house associaonly the chairman of the of the teo, G. G. Williams, president member tion, Chemical Bank, is ex-officio a presiand Frederick D. Tappen, is of it, of the Gallatin National Bank, H. dent chairmrn of it, instead of E. the Perkins, jr., president of the Importers' and Traders' National Bank. morning the committee, or This majority of them, in conjunc. of rather with a Goorgo F. Baker, president virtually tion First National 'bank, to take the a syndicate by agreeing certififormed of clearing house loan out a for the purpose of a cates rates for money to that virtually panic market. Some of for the lot high existed putting National the and in banks, stop the the money Gallatin and the First loan certhe had never taken out need instance, tificates before, and they had no moral now, except for the By takto do to BO be produced thereby; enables effect out certificates, though it of money ing to lend large sums cash in them intrenching upon the their rowithout vaulte, all of them have quired their lawful reserve of twenty-five per cent of their deposits. result of the committee's deliberAs a this morning an issue of $9,000,000 and all ation certificates was authorized, committee of members of the loan availed the themselves of the opportunity proportion to their capital except Tradin the Chemical and Importers and era National Banks. amounts thus taken were as folThe Gallatin National Bank, $500,000; lows: Fourth National Bank, $1,000,000; Chase ExNational Bank, $1,500,000; Corn Bank, $500,000; First National change Bank, $2,500,000. Total, $6,000,000. Immediately after the issue of certifi. was authorized, H. P. Frothingcates representing some of the banks, at ham, lent $3,000,000 on the stock exchange the of 1 per cent and interest, and at. rate 1.8 immediately fell to 6 per cent, and terwards increasing to 12 per cent, then falling at 2 o'clock to 3 per cont. Tappan, president of the Galiatin admitted that of out half a million Bank, had Mr. taken frankly dollars his bank state loan certificates, but declined to had names of the other banks that the 80. In accordance with the rule done of the committee, however, he paid the the committee had to-day authorized of $6,000,000 of certificates, which alto. issue made about $15,000,000 issued gother. of to-day's action, Mr. be "No monoy was Tappen In explanation said price, to and this morning at any time thought it was should be done. beobtained something the committee This bank out $500,000 of citificates, not took we needed them, but to break banks up cause the high rate for money. Other must took out n largo amount, but you get the names from them. Simmons, president of the Fourth said: "This need the certificates or money, National not Mr. Bank, that bank but did it to me necessary soine to be taken to give the demanda of the action seemed pressing should merchants rolief and to stop this unreasonable money This morning our cash on hand panic. and our call loans exceeded 60 per cent of our deposits." The stock market enjoyed a boom in as n result of the clearing house prices committee's action and the relief was general. The condition of nflairs in Philadelbanking circlea in connection with phis their accounts with banks in this these city, to which attention was called in a couple of days ago, is bemore marked. received (rotn advices dispatches coming Philadelphia According in that this to Now York exchange is at a premium of $5 for or cent on the dollar. in this city have large morning, half city banks a Philadelphia Several $1,000, balances large to them by while the luttor are on account of to procure New One bank in this tied up in Philadelphia banks, $750,000 ability to owing or currency. remit York exchange their city in unable that has inanother has $600,000 and another $500,000. way and the question is becoming serious our Unloss the Philadelphia banks remit this week, it is probable to sotno New York bankers discount will be charged on all according that n received from Philadelphia exchange here. One case is known discount was charged for a dealers large transac- where check of n $100,000. it being a special tion. Philadelphin's situation PA June 20 -Six per

2. June 30, 1893 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, June 30, 1893

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Article Text

CAME TO THE RESCUE. Action of the Banks Breaks the High Rates for Money. Clearing House Certificates Taken Out by Solid Institutions. General Relief at Once Afforded the Street by This Action. Much New York Money Tied Up in Philadelphia Banks. NEW YORK, June The rates for which mounted skyward this morning, money, as much as 75 per cent being quoted in the forenoon, broke in an un- the expected manner about midday as result of the action of the clearing house loan committee, which as had been previously pointed out, is the same as the clearing house committee. This morning the committee, or rather majority F. of it, in conjunction with George Baker, president of the First National virtually formed a syndicate bank, by agreeing to take out lot of clearing purpose house loan certificates for the for of putting stop to the high rates exand the panic that virtually of money isted in the money market. Some Fourth banks, the Gallatin and the National, the for instance, had never taken out loan certificates before, and they for had need to do so now, except the moral no effect to be produced thereby it taking out certificates, though, of enables By them to lend large sums the money without entrenching upon Cash in Their Vaults All of them have more than the re- of quired lawful reserve of 25 per cent their déposits. As result of the coin- an deliberation this morning mittee's $9,000,000 of certificates was issue authorized. of and all the members of the committee availed themselves of local the opportunity in proportion to their ImChemical and and capital, except the Traders National banks. porters The amounts thus taken Nafollows: Gallatin $1,000,000; were tional bank as $500,000; Chase Fourth National National bank, bank, Corn Exchange bank, $500, $1,500,000; $2,500,000 000; First National bank, after the $6,000, 000 Immediately H. total, of certificates was authorized of representing some P. Frothingham, banks, lent $3,000,000 on the stock the at 1/ of 1 per cent and interexchange and the rate immediately fell to 6 est, afterward increasing per cent cent, and then falling at 2 o'clock to per cent. Tappen, president of the Gallatin bank Mr. frankly admitted that his of bank taken out half million dollars loan had certificates, but declined to state the names of the Other Banks That Had Done So accordance with the rule of the the In however, he said that the committee committee, had today authorized of $9,000,000 o certificates, which issue about $15,000,000 issued altogether. made In explanation of today' action Mr Tappen said: "No money was to be obtained this morning at any price, and the commitit was time something tee should thought be done. This bank took out we $500,000 of certificates. not because needed them, but to break up the high out for money. Other banks took the rate large amount, but you must get cent names from them. We had per need reserve this morning, we did not certificates, but by taking them out we cash. were enable to lend $500,000 without encro aching upon president our of the Fourth Mr. Simmons, bank did National bank, said: This but not need the certificates or money, seemed to me necessary that some action should it be taken to give relief to pressing demands of the merchants the stop this unreasonable money and to This morning our cash on hand panic. and out call loans exceeded 66 per cent of our deposits Have Plenty of Cash F H. Perkins Jr., president of the Importers and Traders National bank, said the report was not true that he had his to take out certificates for refused know,' he added, bank. "I do not "whether we shall take any out or not. We have plenty of money to lend without doing Mr. Williams, president of the Chembank, declined to say whether his ical would or would not take out any bank believed in banking circles that certificates. both the Chemical and Importers and Traders bank will take outcertificates this week. Some of the banks did so yesterday, but largest to accommodate their customers simply without entrenching upon the cash their vaults. The stock market enjoyed a boom in prices as a result of the clearing house committee's action and the relief was The condition of affairs in Philadelphia general. banking circles in connecwith their accounts with banks in this tion city, which attention was called titese dispatches a couple of days ago, in is becoming more marked According advices received from Philadelphia to this morning New York exchange in that city is at A Premium of 85 for $1,000, half cent on the dollar. Several or large banks in this city have large balances owing to them by Philadelphia banks, and which the latter are unable to remit on account of their inability to procure New York exchange or currency. One bank in this city has $750,000 tied up in Philadelpnia that way; another has $600,000 and another $500,000, and the question is becoming the serious one. Some a banks here have charged the sums thus owing by their Philadelphia customers for collections to the latter's reserve accounts with them. This will make it necessary, of course, for these Philadelphia banks to make their accounts here good in some way if they to draw on the other cities. have But the banks have not done anything in the matter but to use extreme caution in cashing Philadelexchange from their customers. phia Unless the Philadelphia banks remit this week, it is probable, according to some New York bankers, that discount will be charged on all Philadelphia exchange received from dealers here. One case is known where large discount was charged for check of $100,000, it being a special transaction. Enormous Bond Transactions NEW YORK, June 29.-Dealers say transaction in government bands

3. August 10, 1893 The Sun New York, NY
Article from The Sun, August 10, 1893

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Article Text

PASSED A $20,000 PAY ROLL. President Perkins Says the City's Demands Will Be Honored-Drivers Impatient, Acting Comptroller Storrs and Deputy City Chamberlain Campbell surprised Mayor Gilroy yesterday morning with the announcement that they were having difficulty in securing money with which to meet the city pay rolls. The sweepers and drivers of the Street Cleaning Department should have been paid yesterday. but the finance officials said they could not get the money-something like $20,000-for the purpose. Paymasters' warrants are usually drawn on the Importers' and Traders' National Bank. which receives most of the city's cash deposits. It was reported to the Mayor yesterday. however. that that bank was not prepared to meet 80 big a demand for currency. He accordingly sent for President Edward 11. Perkins, Jr., and in the alternoon held a long consultation with him. Acting Comptroller Storrs. and City Chamberlain O'Donohue. The Mayor announced as a result of this conference that there would be no further difficulty and that President Perkins had assured him that the city's demands on the Importers' and Traders' Bank to meet its pay rolls would be promptly honored. Payment was refused at the Importers' and Traders' Bank yesterday on a city warrant for $104, but President Perkins said that the refusal WAS due to a misunderstanding regarding the identification of the man who presented the warrant. He was paid later. The delay in the payment of the Street Cleaning Department employees came very near precipitating it strike. It is the custom for the paymaster to pay the men at the differont stables between 1 and 3 o'elock in the alternoon, and it was not until nearly 3 o'clock vesterday afternoon that the men were informed that they could not have their money. Ignorant of the reason for the delay they began at once to talk of a striko, and the drivers, who are thoroughly organized, called meetings to consider the situation. The chief of these for the east side stables " as held at 530 East Sixteenth street. and the west side men met in West Fifty second street. There was a great deal of talk. but the drivers wisely concluded that there was probably good reason for the delay: that they will get their money to-day. and that there is no reason to declare is strike. Many sweepers who were present thought there should be a strike. and said that they had a grievance. The grievance was overwork, occasioned by Commissioner Andrews's reduction of the force. One man said that eighteen sweepers now the work assigned formerly to thirty-six in the district bounded by Twelith and Seventeenth streets, Fifth avenue and the East River. We can't do it: that's all." said he. "I've got 22 district now that's three times as big as it used to be, and the worst of it is that it's in one of those good neighborhoods where they complain if you don't clean up to the Queen's taste." The discontented BW were told to organize as the drivers had done and their Erlevances might be attended to.