14159. Dime Savings Institution (Newark, NJ)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
savings bank
Start Date
December 13, 1877
Location
Newark, New Jersey (40.736, -74.172)

Metadata

Model
gpt-5-mini
Short Digest
bc4b6011

Response Measures

Partial suspension, Books examined

Other: Invoked 90-day rule (three months' notice) to check withdrawals; later sought court protection and court limited payments to 20% and appointed a special master.

Description

December 13, 1877: a run/withdrawal pressure was checked by enforcing the 90-day (three months) notice rule. February 1878: managers petitioned Chancellor Runyon and were ordered to pay only 20% pending examination (effectively a suspension under court control). Sources do not show a full resumption of normal payments or a permanent receivership/closure in the provided articles, so whether the bank ultimately reopened fully is unclear.

Events (2)
1. December 13, 1877 Run
Cause
Local Banks
Cause Details
Loss of confidence triggered by failures/troubles of other Newark and nearby savings banks (recent suspension/failure of Newark Savings Institution and other local banks); generalized panic among savings depositors.
Measures
Enforced the 90-day (three months) notice rule for withdrawals to check the run.
Newspaper Excerpt
The Dime bank checked their run by requiring three months' notice
Source
newspapers
2. February 23, 1878 Suspension
Cause
Local Banks
Cause Details
Managers cited prevailing loss of confidence after recent trouble of other local banks and the bank's large holdings of railroad bonds and mortgages which could not be realized without heavy loss; petitioned court for protection and limitation of payments to protect depositors' equality of treatment.
Newspaper Excerpt
Chancellor Runyon granted an order preventing the bank from paying more than 20 per cent. to depositors until further notice ... special master in chancery to make an examination
Source
newspapers

Newspaper Articles (18)
1. December 13, 1877 The Sun New York, NY
Article from The Sun, December 13, 1877

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Article Text

At 3% o'clock the throng in front of the bank were intensely excited by the statement that the Dime Savings Bank. of which Mr. John MeGregor is President, had decided that it would not pay any more deposits without a three months notice. This news, coupled with the tast that th ree or four banks had failed or suspended in Newark last summer, created great distrust among the people. and fears were entertained that a panic would be created and a general run be made upon the other banks today. But when the Newark Savings Institution closed its doors. at o'clock. confidence seemed to be restored. and a number of depositors had handed back their deposits. The general opinion among bankers was that the bank would pay from seventy-five to ninety cents on the dollar. perhaps more if not crowd. ed too hard by the depositors. The securities are good if they can be held for an advance. In their notice to depositors the managers say that they have a very large amount of securities which can be turned into cash at once, but a much larger amount in bonds and mortgages and other securities which cannot be converted into money without much delay. They hope that under wise restrictions and careful management the assets will prove ample to pay all depositors in full. But they are satisfied that the prevailing distrust may cause such H withdrawal of funds as will exhaust their cash assets for the benefit of those who shall first apply. and leave the other securities for those who are reluctant or unable to demand payment. They feel it to be their duty to prevent this injustice, and to do all in their power to secure perfect equality. and to promote confidence in the ultimate safety of the funds in their charge.

2. December 14, 1877 The Dallas Daily Herald Dallas, TX
Article from The Dallas Daily Herald, December 14, 1877

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Article Text

A Run On the Savings Banks-The Excitement Subsided. NEWARK, N.J., December 13,-The excitement to-day, which extended to all the savings banks, subsided towards night. The Newark Savings bank paid all applicants eighteen per cent. The amount drawn was $25,000, and $24,000 of it was newly deposited. The managers express confidence that depositors will ultimately lose nothing. The Howard Institute paid depositors in full as fast as they appeared The managers have determined to continue the payment asrapidly as the clerical force will allow. The Dime bank checked their run by requiring three months' notice, and "hope to resume payments soon if not suddenly compelled to convert their securities. The German bank, a small institute, is not yet affected, but will adopt the three months notice rule if affected.

3. December 14, 1877 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, December 14, 1877

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A Little Panicky. NEWARK, December 13.-The excitement extended to all the savings banks to day, but subsided toward night. The Newark Savings Bank Institution paid all the applicants 18 per cent. They numbered 500, but only half drew their money. The amount drawn was $25,000, and $2,400 newly deposited. The mana. gers express confidence that the depositors will lose nothing. It is stated that the Board, comprising the Governor, Sec. retary of State and Comtroller, met today and sustained action of the Chancellor. The Howard Institution paid their depositors in full as fast as they appeared, together with 21 per cent interest. The Dime Bank checked the run by requiring three months notice and hope to resume payments soon, if not suddenly compelled to convert their securities The German Bank, a small affair, is not yet affected but will require three months notice if pressed.

4. December 14, 1877 The Wheeling Daily Register Wheeling, WV
Article from The Wheeling Daily Register, December 14, 1877

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Article Text

Financial Flurry in Newark, N.J. NEWARK, December 13.-The excitement extended to all the savings banks to day, but subsided toward night. The Newark Savings Bank Institution paid all applicants 18 per cent. They numpered 500, but only half drew their money. The amount drawn was $25,000 and $2,400 was newly deposited. The managers express the confidence that the depositors will lose nothing, It is stated that a board comprising the Governor, Secretary of State and Controller met to-day and sustained the action of the Chancellor. The Howard Institution paid the depositors in full as fast as they appeared, together with 21 per cent. interest. The Dime bank checked the run by requiring three months' notice, and hope to resume payments soon, if not suddenly compelled to convert their se. curities. The German bank, & small affair, is not yet affected, but will require three months' notice if pressed.

5. December 14, 1877 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, December 14, 1877

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The Savings Bank Panic in Newark. NEWARK, N. J., Dec. 13.-The excitement extended to all savings banks today, but sub. sided toward night. The Newark Savings Institution paid all applicants 18 per cent. They numbered 500, but only half drew their money. The amount drawn was $25,000, and $2400 were newly deposited. The managers express confidence that the depositors will ultimately lose nothing. The state board, comprising the Gov. ernor, Secretary of State and Controller, met today and sustained the action of the Chancellor. The Howard Institution paid its depositors in full as fast as they appeared, together with 21 per cent. interest. The bank is very strong in government and other equally available securities, and the managers are determined to continue payments as rapidly as the clerical force will allow. The Dime Bank checked their run by requiring three months' notice, and hope to resume payments soon if not suddenly compelled to convert its securities. The German bank, a small institution, is not yet affected, but will require three months' noice if pressed.

6. December 14, 1877 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, December 14, 1877

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Article Text

NEW JERSEY. Bank Matters. NEWARK, December 13. The excitement extended to all the Savings Banks to-day, but subsided toward night. The Newark Savings Institution paid all applicants 18 per cent. They numbered 500, but only half drew their money. The amount drawn was $25,000, and $2,500 were newly deposited. The managers express confidence that the depositors will ultimately lose nothing. The State Board, comprising the Governor, Secretary of State and Controller, met to-day and sustained the action of the Chancellor. The Harvard Institution paid its depositors in full, as fast as they appeared, together with 2 1-2 per cent. interest. The bank is very strong in government and other equally available securities, and the managers are determined to continue the payments as rapidly as the clerical force will allow. The Dime Bank checked their run by requiring three months' notice, and hope to resume payment soon, if not suddenly compelled to convert its securities. The German Bank a small institution, is not yet affected, but will require three months notice if pressed.

7. December 14, 1877 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, December 14, 1877

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Financial and Commercial Troubles. THE EXCITEMENT AMONG THE NEWARK BANKSTHE DEFUNCT PATERSON INSURANCE COMPANY-THE HILDREDTH DEFALCATION. NEWARK, N. J., December 13.-The excitement to-day extended to all the savings banks, and subsided toward night. The Newark Savings Institution paid all applicants eighteen per cent. The amount drawn was $25,000, and $2,400 were newly deposited. The managers express contidence that the depositors will ultimately lose nothing. The Howard Institution paid depositors in full as fast as they appeared. The managers have determined to continue the payments as rapidly as the clerical force will allow. The Dime Bank checked their run by requiring, three months' notice, and hope to resume payments soon if not suddenly compelled to convert their securities. The German Bank-a swall institutionis not yet affected, but will adopt the three months'-notice rule if pressed. PATERSON, N. J., December 18.-An inventory of the defunct Paterson Fire-Insurance Company shows "the liabilities to be $450,000, including $200,000 capital; assets, $65,000; NEW YORK, December 13.-The amount of defalcation in the Watson J. Hildreth & Co. collecting agency is over $200,000. Many of the shrewdest merchants in town are among the victims. Investigations of numerous other similar institutions have already begun under the impulse of this failure.

8. December 14, 1877 The Daily Gazette Wilmington, DE
Article from The Daily Gazette, December 14, 1877

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A RUN ON NEWARK BANKS. NEWARK, N. J.. December - -The exeitement to day extended to all the sav. ings banks, but subsided before night. The Newark savings institution paid all applicants 18 per cent. The amount drawn was $25,000, $24,000 was newly deposited. The managers express confidence that depositors will ultimately lose nothing. The Howard institution paid depositors in full as fast as they appeared, and the managers have determined to continue payments as fast as their clerical force will allow. The Dime Bank checked their run by requiring three months' notice, and hope to resume payments soon, if not suddenly compelled to convert securities.

9. December 14, 1877 New-York Tribune New York, NY
Article from New-York Tribune, December 14, 1877

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DEPOSITORS ALARMED. RUN ON THE NEWARK SAVINGS BANKS. RETURNING CONFIDENCE IN THE SAVINGS INSTITUTION-THE HOWARD BANK PAYING ALL DEMANDS-THE DIME REQUIRING THREE MONTHS' NOTICE. The run on the Newark Savings Institution decreased somewhat yesterday, confidence being restored apparently by the Chancellor's action of the day before. The excitement, however, had extended to the depositors in the Howard and Dime Savings Institutions. A run upon the Howard followed, but all demands for money were promptly met. The run upon the Dime Bank was prevented by enforcing the rule requiring three months' notice.

10. December 16, 1877 The Sun New York, NY
Article from The Sun, December 16, 1877

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SUBSIDING. Speculators Offering to Buy Claims Against the Newark Savings Banks. The alarm of the depositors in the savings banks of Newark has subsided. Theoffer of a speculator to buy claims against the Newark Savings Institution at sixty center on the dollar, and take the risk. allayed the fours of depositors in that bank. and not above sixty persons drew their 18 per cent. yesterday. The run on the Howard Savings Bank was continued but at 2 o'clock twenty persons only were writing, There were no throngs in front of thebank No busin S8 was done at the Dime Savings Lastitution. It did not pay out a dollar, the ninety days rule being strictly adhered to. Persons who called to make deposits were advised to keep enough money for their immediate needs. HS the bank would not resume pay ments untileon fidence is restored. There was no excitement at the German Savings Bank either.

11. December 18, 1877 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, December 18, 1877

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NEW YORK. ) / NEW YORK, December 17.-The - cat show opened to day in the American , Museum. The cats are of all degrees, 1 sizes and colora. There is one cat with double toed web feet, an 18 year old cat that has never had a tooth and eats like a monkey, a prolific cat performing, a cat that does tricks and goes in a cage with ) birds without devouring them, and a cat 3 that plays with children. The run on the Dime Savinga Bank, at ( Newark, has nearly ceased. 5 THE CRESCENT AND CROSS SOCIETY. , a The Crescent and Cross Society has dissolved. Their recent ball netted seven ) thousand dollars, a portion of which has been transmitted to Russia and Turkey. The City Chamberlain has received from the Attorney General a check for $443,982, the amounts received from Peter B. Sweeney and Elbert A. WoodA ward, in settlement of suits against them f to recover part of the money stolen from the city by the Ring. a

12. December 20, 1877 The Elk County Advocate Ridgway, PA
Article from The Elk County Advocate, December 20, 1877

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Newark, December 13.-The excite ment to-day extended to all the savings banks, but subsided toward night. The Newark Savings Institution paid all applicants eighteen per cent. The amount drawn was $25,000 and $2,400 were newly deposited. The managers express confidence that the depositors will ultimately lose nothing. The Howard Institution paid depositors in full as fast as they appeared and the managers have determined to continue payments as rapidly as their clerical force will allow. The Dime Bank checked their run by requiring three months' notice and hope to resume payments soon if not suddenly compelled to convert securities. The German Bank, a small institution is not yet affected, but will adopt the three months' notice ruleif pressed.

13. December 20, 1877 The Leavenworth Weekly Times Leavenworth, KS
Article from The Leavenworth Weekly Times, December 20, 1877

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BANK EXCITEMENT. The Failure of the Newark State Savings Institution Causes Considerable Excitement Among the Other Banks. NEWARK, N.J., December 13.-Excitement is extending to all the saving banks, to-day, but subsided towards night. The Newark Savings Bank Institution paid all applicants eighteen per cent. They numbered 500, but only half drew their money. The amount drawn was $25,000, and $2,400 were newly desposited. The managers express confidence that the depositors will nltimately lose nothing. The tate Board, comprising the Governor, Secretary of State and the Comptroller, met, to-day, and sustained the action of the Chanceller. THE HOWARD INSTITUTION paid its depositors in full as fast as they appeared. with two and a half per cant. interest. The dime bank checked their run by requiring three months' notice, and hope to resume payments, soon, if not suddenly compelled to convert its securities. The German Bank, a small institution, is not yet affected, but will require three months' notice, if pressed.

14. December 21, 1877 Vicksburg Weekly Herald Vicksburg, MS
Article from Vicksburg Weekly Herald, December 21, 1877

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SHAKY SAVINGS BANKS. Excitement is Newark, New Jersey-SevCORAZ eral Banks Affected. NEWARK, N. J. Dec. 13-The excite. ment to-day extended to all Savings Banks. The Newark Savings Bank paid all applicants 18 per cent. The amount drawn was $25,000. and $24,000 were newly deposited. The Managers express confidence that depositors will ultimately lose nothing. More ad) to The Howard Institution paid depositors in full as fast as they appeared, and are determined to continue paying as soon as clerical force will allow. The Dime Savings Bank checked a run by requiring 90 days notice. The German Bank, a small institution, is affected, but will adopt the three months' notice rule if pressed.

15. December 21, 1877 The Emporia News Emporia, KS
Article from The Emporia News, December 21, 1877

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A run on other banks followed the suspension of the Newark, N. J. Savings, bank on the 12th, and Dime Savings bank, and the German Savings bank required three months notice, an equivalent now-a-days to suspension. The Howard Institution met all demands.

16. February 24, 1878 The Sun New York, NY
Article from The Sun, February 24, 1878

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ONE MORE BANK IN TROUBLE The Dime Snvings Institution of Newark Put In the Chancellor's Hands. The managers of the Dime Savings Institution of Newark made application last night to Chancellor Runyon for an order like the one he granted in the case of the Newark Savings Institution on the 12th of December. The Dime Bank took advantage of the ninety-day rule at that time. and has not paid a dollar to its depositors since. In the petition the managers say that they apply to the Court of Chancery for relief in order to protect the depositors. The bank holds $200,000 worth of Chesapeake and Ohio Railroad bonds and $700,000 in bonds and mortgages, and if forced to realize on them now it would sustain a heavy loss. Besides, if the bank resumed payment at the expiration of the ninety days' notice, some depositors would get alltheir money and others would have to go without. because the bank could not pay out more money than it could realize from its investments. The prevailing loss of confidence in savings banks, the recent trouble of the Rahway, Trenton, Jersey City. and Plainfield banks. following so quickly after the disaster to the Newark Savings Institution, together with the factthatthe bank held $200,000 of the Chesapenke and Ohio bonds. were the causes which moved the managers to apply for protection. Chancellor Runyon granted an order preventing the bank from paying more than 20 per cent. to depositors on the total amount of their deposits until further notice from the Court of Chancery. He appointed Mr. William Silas Whitehead, special Master in Changery. to make an examination of the assets and liabilities of the bank. and to investigate its past management. The following is the annual report made to the State authorities on Feb. 1, 1878, by the Treasurer, J. D. Orton:

17. February 25, 1878 New-York Tribune New York, NY
Article from New-York Tribune, February 25, 1878

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LOCAL MISCELLANY. ASKING TIME FROM CREDITORS. SUSPENSION OF W. A. RANSOM & CO.-CONDITION OF THE DIME SAVINGS INSTITUTION OF NEWARK, W. A. Rancom & Co., wholesale dealers in boots and shoes at No. 537 Broadway, made an assignment for the benefit of creditors, Saturday, to Walter W. Law. The firm has been doing business for more than thirty years, and the failure 18 ascribed to bad debts and dulness in business. The liabilities probably will not be less than $250,000, the debts being due principally to Eastern creditors. The assets consist of stocks and bills receivable, the amount of which is not known at present. The managers of the Dime Savings Institution of Newark asked Chancellor Runyon, late Saturday afternoon, for an order requiring them to pay only 20 per cent of the amounts due depositors. At the time of the suspension of the Newark Savings Institution, the Dime Bank took advantage of the ninety days' limit, and consequently has not paid its depositors since that date. The bank, it is stated, holds Chesapeake and Ohio Railroad bonds for $200,000, and bonds and mortgages for $700,000, and, if forced to realize on its securities at present, would sustain a heavy loss. Chancellor Runyou granted the prayer of the petitioners, and appointed William Silas Whitehead, special master in chancery, to make an examination of the bank. According to the treasurer's report. on February 1, the bank had a surplus of $47,179 24; $1,632,818 53 is due depositors. Payment of the 20 per cent to depositors will be begun to-day, and preparations have been made for the anticipated run. Since February 1, the managers have sold Newark city and Paterson city bonds, and arrangements are being made for the sale of the Passaic water bonds. The average of deposits is about $156, the largest deposit being $20,000. It is thought the bank will ultimately pay not less than ninety cents on the dollar. Bennett & Smith, manufacturers of felt skirts at No. 61 Leonard-st., have made a voluntary petition in bankruptcy. The liabilities amount to $52,000. The assets, consisting of stock and machinery and book accounts, are worth about $38,500. John R. Platt has been appointed assignee of John P. Dallimore by Register Dayton. At a meeting of the creditors of Cammeyer & Nason, Saturday, it was agreed to accept a settlement at 40 cents on the dollar, payable in April, May, June and July. Samuel P. Kittle, dealer in bedding at No. 203 Canalst., has been adjudicated a bankrupt on the petition of his creditors. His liabilities amount to about $75,000, while his assets are valued at $10,000.

18. February 28, 1878 The New York Herald New York, NY
Article from The New York Herald, February 28, 1878

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NEWARK'S BROKEN BANKS. The receiver of the People's Savings Institution at Newark is making u careful examination of the alfairs of the concern. Thus far his task has been a most disagreeable one. Many of the securities-which were classed as assets 111 the last statement made by the bank-are found to be almost valueless, and a quantity of the stock of the Citizens' Insurance Company, which the bank held as colla.eral for loans, has DO market value that can be determined. Tue mortgages are mostly upon property which would noi sell for the amount loaned ou il, 11 sold under foreclosure, and the belief is entertained by those who are most familiar with the character of the assets of the institution that the depositors will do weil 11 they realize ten per cent. When the bank closed it had but $2 65 on hand in Cash. The Dime Savings Institution continues to pay out the twenty por cent ordered by the Chancellor, but though the Clerks are kept busy there 1s nothing like a real active "ron." The average payments daily in gross are about $7,000.