14179. Howard Savings Institution (Newark, NJ)

Bank Information

Episode Type: Run Only
Bank Type: savings bank
Start Date: February 10, 1914
Location: Newark, New Jersey (40.736, -74.172)

Metadata

Model: gpt-5-mini
Short Digest: 95591c53

Response Measures

Accommodated withdrawals, Public signal of financial health

Description

A short-lived depositor run occurred Feb 10-14, 1914 caused by groundless/local rumor (misunderstanding of a woman's denied $50 withdrawal and telephone gossip). Bank paid out cash, opened extra tellers, received support offers, and remained open; deposits largely returned.

Events (1)

1. February 10, 1914 Run

Cause: Rumor Or Misinformation
Cause Details: Groundless rumors stemming from a misunderstanding when a woman was refused a $50 withdrawal; the story was spread by telephone and exaggerated in immigrant neighborhoods.
Random Run: Yes
Random Run Snippet: Woman denied $50 withdrawal; telephone-spread rumor proved false
Measures: Opened extra paying-teller windows; paid out cash (large bills and gold), kept substantial coin and bills on hand; received offers of cash from New York/Philadelphia bankers; police kept order.
Newspaper Excerpt: ABSURD RUMOR CAUSES FLURRY AT LOCAL BANK ... Reports concerning the Howard Savings Institution ... wild rumors began to be heard in the foreign districts.
Source: newspapers

Newspaper Articles (10)

1. February 10, 1914 El Paso Herald El Paso, TX

Article from El Paso Herald, February 10, 1914

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Mexican Prisoners Escape; Guards Fire SAYS SUBIO ADMITS United States Soldiers PrePOOR GATHER AT KILLING MARSHAL BANK, DEMAND MONEY vent Dash For Liberty Newark, N. J., Feb. 10.-An inexplicaWas Digging a Grave For Murdered ble run, apparently caused by baseless in Prison Camp. Man When Officers Came Upon rumors, began today on the Howard | Him; Was Wounded in Side. Savings Institution, one of the largest Pecos, Tex., Feb. 10.-Sheriff Tom and oldest savings banks in the state. Two Mexican federals attempted to Those in the line were mostly of the Harrison returned this morning from escape at the Fort Bliss prison camp poorer class, as in the case of the reMidland, where he left Fernando Subio, Monday night, but were overtaken and cent run on the Bank for Savings in, the Mexican who killed city marshal T. New York city. returned. The guards fired on the Y. Moorhead Sunday night. Subio, it is All applicants were being paid off escaping prisoners, but fired high, 80 said, admitted doing the shooting, after and president Samuel S. Dennis said the officers stripped him and found his the bank was prepared to meet all dethat they would not hit them. It was bandaged side where a bullet had inmands. The bank's surplus and profreported downtown that two of five flicted a flesh wound. The prisoner its, according to its last report, were was coolly digging the grave of the federals who had tried to get away had more than $2,350,000 and its deposits murdered marshal when arrested. more than $24,000,000. been shot, but this was denied by the The West Texas Reclamation asso-

2. February 11, 1914 The Washington Times Washington, DC

Article from The Washington Times, February 11, 1914

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Depositors Begin Run On Big Newark Bank NEWARK, N. J., Feb. 11.-The eavy withdrawal of deposits from the Howard Savings Institution, of New York, which started last week, eveloped into a run on the bank toay. Money is being paid out by sevral tellers. The bank is the largest the State.

3. February 11, 1914 Newark Evening Star and Newark Advertiser Newark, NJ

Article from Newark Evening Star and Newark Advertiser, February 11, 1914

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ABSURD RUMOR CAUSES FLURRY AT LOCAL BANK Foreigners Become Scary and Withdraw Deposits from the Howard Savings Institution. BANK ONE OF BEST IN THE COUNTRY Has Assets That Can Be Turned Into $25,000,000. Statement by President. For the purpose of withdrawing several foreigners, to their positors, accounts, mostly hundred went de- at the Savings Institution street today. 776-778 heard Howard absurd Broad reports concerning They had the bank and had become alarmed unnecessarily bank did not concern itself to extent about from to any demand The great depositors, the except unusual make special arrangements to care for all who might care to withdraw their money. that the so-called concern did not to "run" It all was the on the evident depositors, for there appeal was a string of persons, mostly women, standing at the receiving teller's window and making deposits. None of them seemed a bit bothered over the crowd of persons in the other aisle who were waiting to take out their funds. Sitting at his desk this forenoon, Samuel S. Dennis, the president of the Howard Savings Institution. remarked to an Evening Star reporter: 'Without moving from this chair I can get $5,000,000 cash. There is more than $1,000,000 cash in our vaults. Our assets stand to realize us not less than $25,000,000 market value.' Mr. Dennis's statements were corroborated by Alexander S. Ward. the treasurer, who was in the room of the president at the time Bank Officers Not Worried. Mr. Dennis, in speaking about the bank. said he could offer no explane tion of how the rumors concerning the institution were started. He first heard about them through the newspapers, he said, but paid little attention until the inquiries from depositors became frequent yesterday. Then he immediately arranged with the other officers to care for all who applied. Today he ordered that three paying teller windows should be opened. Other clerks were stationed in the aisles to assist the foreigners and offers who desired to make withdrawals. Every effort was made to handle the accounts as quickly as possible. During the morning the applicants were fairly numerous but at no time was there more than 100 persons in S the corridors There was no disorder whatever. The withdrawals continued this afternoon. The number of applications averaged about the same as during the morning hours. Nearly All of the persons who asked for their money were foreigners, mostly women. It was evident, judging from their inquiries, that they were handicapped because of inability to speak English, and therefore falled to com prehend the real situation. All seemed to be animated with the idea that they should not take any chances. There were many curious persons in the neighborhood of the bank. For a time some of them stood near the big stone pillars at the entrance. In order to prevent lounging three policemen were sent to the bank from the First precinct station. They quickly cleared the steps and sidewalk. Depositors Acting Foolishly S President Dennis, after glancing at the line of applicants for funds today, said: am sorry for the depositors who are taking out their accounts They are foolish "Some of them are sure to lose a large percentage of their money after a taking it away from here. They will probably secrete their savings in their d homes. There it is apt to be stolen, or to suffer by some mishap. "The depositors also will lose the interest on their accounts. This a bank will be a amount Of course to the considerable aggregate. gainer will in this one respect. d 'The Howard Savings Institation is K (Continued on Page 10. Column 6.)

4. February 12, 1914 Newark Evening Star and Newark Advertiser Newark, NJ

Article from Newark Evening Star and Newark Advertiser, February 12, 1914

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FLURRY AT BANK APPARENTLY HAS COME TO CLOSE Newark Business Men Ridicule Idle Rumors That Scared Some of the Depositors. The "run" on the Howard Savings Institution, during which a few hundred depositors, mostly foreigners, withdrew their accounts, has been abated, is believed. local have the idle strongly business it and leaders openly and ridiculed financiers Many anonymous talk that led up to the situation of yesterday. Many of the persons, who withdrew their money from the Howard immediately went to in this to in city with it other deposit, banks but nearly every case were told that it would not be accepted and were informed they should have left the money where it was Several millions of dollars in hard cash will be on hand in the Howard Bank when the doors open tomorrow morning. This announcement was made today by Samuel S. Dennis, the president. He has arranged to check any run no matter how great. The bank has received many assurances from New York bankers and financial institutions to send any amount desired. As today is a holiday, the bank, like all others, was closed. Very few persons were seen about its doors. Those that did appear tried the doors and, finding them closed, went away apparently unconcerned. One prominent Newark banker declared that if he could not trust the Howard Savings Institution he would not trust the United States government. Mr. Weingarten's Work. A feature of the checking of the bank flurry was the work of Levi Weingarten and David Grotta, officers of Weingarten Brothers, corset manufacturers. Mr. Grotta went among the scared depositors lined up in the bank yesterday afternoon and by their assurances turned away more than a hundred persons. After banking hours the two men hurried to their big plant, High street, and assured their employees, most of whom are depositors, that the bank was absolutely safe. They offered to make good to any one in their employ who should lose a single cent in the Howard Savings Institution. Mr. Weingarten today called several mass-meetings of the employees in the different parts of the factories and again told them of the obsurdness of the rumors that started the run. The thousand or more men and girls who listened to the addresses of their employers cheered them and promised to keep faith in the bank. Mr. Grotta, who is also president of the City Plan Commission, introduced a resolution at a meeting of the Board of Trade last night, in which the board expressed its unqualified confidence in the bank. The resolution was passed by an unanimous vote. Mr. Weingarten at his factory this forenoon asserted his belief that the Howard Savings Institution was practically as good as the Bank of England, and said that if his firm had a million dollars he would deposit it in the Howard and not withdraw a cent of it. 'Mr. Grotta and myself were passing the bank when we saw the crowd outside and inquired the cause, Mr. Weingarten explained when asked about his efforts to check the rush. 'When we went inside I recognized many friends, some of them employees of mine. I gave them my word that there was absolutely no cause for alarm. In almost every case they dropped out of the line, put their books in their pockets and went out. Duties of Business Men. Mr. Grotta agreed with his colleague. He added: 'I think we did nothing more than every business man should do. It is the duty of every business man, and if he does it there will be no cause for alarm, for practically the majority of depositors are workingmen and women employed in the industries of (Continued on Page 2, Column 2.)

5. February 12, 1914 Newark Evening Star and Newark Advertiser Newark, NJ

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FLURRY AT BANK COMES TO CLOSE (Continued from First Page.) this city. We showed our employees how foolish it was to take the money out of a reputable bank like the Howard and take their chances of losing It, by theft or otherwise, and of being tempted to spend it, besides losing the interest the time they have it out." Neither Mr. Weingarten nor Mr. Grotta are officers or stockholders of the Howard. An explanation of the "run" is a story that is being given much credence by those who are interested in the bank. It is said thta a woman, a foreigner, went to the bank one day some weeks ago and tried to withdraw $50 from an account which was in the name of herself and her husband jointly, Her husband had just sailed for Europe and the woman was unable to get his signature. She was told she could not have the money and the situation was explained to her. It is now thought the explanation did not explain, and she went away with the impression that there was no money in the bank. She told her story to friends, and soon after wild rumors began to be heard in the foreign districts. The rumors spread and grew until they reached a climax yesterday. One illustration of how a baseless report circulates was given by Mr. Weingarten. One of the servants employed in his home came to him and said she wanted to withdraw her money from the Howard Savings Institution, as she had just received a telephone call that it was going to fail. The telephone call is supposed to have come from another young woman who, hearing the rumor, proceeded to send it out in an exaggerated form by telephone to everyone she knew. In the Weingarten factory many of the employees leave their bank books in the custody of the concern to be kept in the company's safe. Some of the employees yesterday asked for the books. The head of the firm called to his office those who made the requests and gave them some good advice. The accounts were not touched. A person who was depositing money yesterday in the Howard Bank saw Mr. Weingarten by a word or two here and there turning away people from the line at the paying teller's windows. He made many smile by his witticisms and relieved their anxI iety concerning their money. One of the first persons Mr. Weingarten saw when he entered the bank was a young girl. The manufacturer looked surprised and said: "Why, Mary, don't you know that your money is safe: that there is two dollars security for every dollar that is deposited?" "I didn't know that, Mr. Weingarten," replied the girl, "but now that I do, I guess I'll leave my money in the bank." She left the line. and with her went two others who had heard the conversation. State Banking Commissioner George M. La Monte expressed surprise at the Howard Bank incident. He said he heard the rumors on Monday but considered them too silly for consideration. "We think the Howard one of the strongest financial institutions in the country," he added.

6. February 13, 1914 Newark Evening Star and Newark Advertiser Newark, NJ

Article from Newark Evening Star and Newark Advertiser, February 13, 1914

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Depositors After Today. ONE WOMAN RETURN OF WITH 1,900 DEPOSIT Every Says Dennis President Be PoDollar Returnedlice Caution People. of who with depositors their from money Howard to retu irned today stitution reto teller's to the ording windoweciting After in money the deposit according they epositors had the appeared about the street to place teller. hands the danger of walking and were the their to realize the with such the funds sums with the care actual But Some for only the eager bank again. deposit left five minutes interest on bank ones lost momen of the of the avering that few President ued the their money S. Dennis, itution. ent issue com- folSamue savings This finance had today. of the and force meeting deposime. a the on the driven home. missing mittee lowed of effect of was child who has for dollar when Dennis the woman or will this run two days continues money dollar. or three Every man, this bank whether months last six fifty this years any required of its one day This out toda good longer... During the has never to wait in the one past, to withdraw has clerks wds going assistby them thus when holds To money those about Mr. the crombers, eller's The their in and taking the the paying comfinance was wing mittee S officials: ing window ving is eeting nded of the by Dennis, the followest derick the of of manboard viceCarter, of the Whitehwayof the and board of for one said Treeting are only this, after the who their of maThere like Ward people fact that blem S. of the out, in you them for their monwill tell action they rumor only stop only reason hearts would the their bank of this its institicials at company won laugh netting stop alize the mentate who they they but ower Howing else only call ans for in of and the books manner the all their of the siting. West instab McCanna them Wednes. of of One Mrs. eople Mary is cited. who is and the her street ann McCanto to to enterann the she came the was first Mrs. way to went teller. ndow ving Cann velope Mrs. she Crede- that hadted. hich night This was thousa billain M. thouround dollar Captain contain Ryan as In the by envethe Celope. old the her and sight among them had after anquiring way told withthem the wedged that she that time she since Mc Mrs. the of one savingated on slept her she bank had withdared thement momen that ins in the tance the one ting. tain norhis is Capinet had the who the in one those before the was Shortly Ryan, the time of righ lesing as below Capta of his men quiet front order William were along the police he that from books ring to Hock were bank this mornwere look relater gretion their monho this early the had come they bank by tolbers ing of they are that the police who those bags by the the that in Serious

7. February 13, 1914 The Washington Times Washington, DC

Article from The Washington Times, February 13, 1914

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Depositors Continue Run on Newark Bank NEWARK. N. J., Feb. 13.-Despite assurances of the soundness of the Howard Savings Institution by large employers of labor and by the board of trade, the "run" on the bank continued today. Almost 500 depositors were in line at the bank's opening. They were kept in order by the police and money was paid out by several extra tellers. President Samuel S. Dennis said that he has received offers of millions of dollars in cash by New York and Philadelphia bankers. Bills and coin aggregating a million dollars were brought out of the vaults today and piled up in the cages.

8. February 14, 1914 Newark Evening Star and Newark Advertiser Newark, NJ

Article from Newark Evening Star and Newark Advertiser, February 14, 1914

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TIMID DEPOSITORS BRAVE BLIZZARD TO REPLACE CASH Gold Coins Paid Out Yesterday Clink Merrily at Receiving Tellers' Windows. Timid depositors of the Howard Savings Institution who drew their out yesterday braved the blizzard to place in the noon money same today bank agin. their At paying savings yester- off day the bank started claims in gold and this morning there was a continuous click of the gold coins on the glass shelves of the receiving tellers' booths. That the uncalled for "run" on the bank is over WS evidenced by the lack of work for the score of policemen in the bank today. At imes there were more policemen in the bank than customers. The blizzard kept a number of the regular Sturday depositors away from the bank, but the money tken in was far in excess of that withdrawn today, declared Treasurer Alexander S. Ward. The same officil stated that on December 15 last, a regular busi ness day, there were 25 per cent. more withdrawals than last Wednesday when the "run" was a its height. Many Return Deposits. He cited a case of a young woman who had withdrawn $900 from the bank during the morning rush and a few hours later she returned and again deposited it. He also stated that there was a large number of similar cases. He further added that there was a marked increase in the deposits during the day and the amount was a little short of the sum received during the same day last year. He also announced that notwithstanding the fact that all de) positors were given their money the amount paid out was considerably less than the withdrawals during Tuesday and Wednesday. We also adopted a new plan when the bank closed this afternoon at o'clock, declared Mr. Ward. "When the doors were closed on Tuesday and Wednesday the paying tellers stopped paying out any more money. This afternoon all those in the bank and those standing on the steps waiting to get into the building were allowed to enter and withdraw their money. In accord with the policy used since the rumor started, the bank officials opened the bank doors at 9:30 o'clock this morning so that the few depositors standing outside could enjoy the warmth of the steam-heated building. It took some of the depositors a long I time to make up their minds that a they wanted to draw, and a number of 1 them declared they just wanted to make sure the "run' was over. t The police present were suspicious that several of those who entered wanted to get warm more than they wanted their money. At least ten of e the twenty admitted at 9:30 o'clock rushed to the steam radiators before reaching for their bank books. They were allowed to thaw out and no questions were asked. 0 e Run a Thing of the Past Mr. Ward declared that the withI drawals of today were far below the normal withdrawals of other Saturd days. "The 'run' is a thing of the past,' said a bank official. "It's as dead as a doornail. The indignation of bank officials in Newark institutions has been aroused by the foolish "run' on the Howard Bank. It is understood that a new law is being drafted for enactment that will empower State officials to prosecute those who start "run" rumors. The Legislature will have the measure placed before it for consideration within a week, according to officials of the strongest banks in the city. In April, 1907, the New Jersey Legislature passed a law providing that any person who wilfully or maliciously circulated a rumor that any banking institution was financially unsound or embarrassed in any way 1 was guilty of a misdemeanor. The penalty for the first oxense*is three years in prison or $1,000 fine, or both. The penalty for the second offense is doubled. I Under that law the prosecution of offenders rests with the bank about which the rumor started. Bankers say that this is unfair, because any institution, although perfectly sound. might be in danger of a run through beginning criminal proceedings against the gossip mongers. Those advocating a change in the I law want the act amended so that any bank hearing rumors about itself may complain to the commissioner of probanking and insurance. It is posed that the commissioner question the person spreading the rumor, and if the statements made be true that the bank be taken in charge by the State department: but if false, then the scandal monger be prosecuted by the commissioner.

9. February 15, 1914 The Sun New York, NY

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CAUSELESS RUN ENDS. Howard Savings Institution's DeposItors Regaln Faith. NEWARK, N. J., Feb. 14.-Officials of the Howard Savings Institution believe that the run started on the bank last Wednesday as a result of groundless rumors has ended. The doors of the bank were opened an hour earlier than usual this morning to meet any demand that might be made by depositors. but withdrawals were few. A dozen policemen were on duty at the bank but had nothing to do. There was $1,000,000 in the vaults when the bank opened this morning and three tellers stood at three windows ready to pay out the money. When the bank closed at noon the business was considerably smaller than the usual Saturday business. Half an hour after the bank closed five women tried to get inside. but were told that the bank would be open Monday morning and they could get their money then. They went away satisfied. Alexander S. Ward. treasurer of the bank, said to-day that every depositor could have every cent belonging to him. He said rumors that the institution would refuse to take back depositors who withdrew their money were untrue.

10. February 16, 1914 The Washington Herald Washington, DC

Article from The Washington Herald, February 16, 1914

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# JAIL FOR RUMOR MONGERS. Recent Run on Bank May Result in Drastic Law in New Jersey. As a result of the run on the Howard Savings Institution on Broad street, Newark, which began on Wednesday because of a false rumor, leading bankers of the State will ask the Legislature to amend the laws so that the Department of Banking and Insurance may prosecute persons starting such gossip. In April, 1907, the New Jersey Legislature passed a law providing that any person who wilfully or maliciously circulated a rumor that any banking institution was financially unsound or embarrassed in any way was guilty of a misdemeanor. The penalty for the first offense is three years in prison or $1,000 fine or both. The penalty for the second offense is doubtd. Under that law the prosecution of offenders rests with the bank about which the rumor is started. Bankers say that this is unfair because any institution, although perfectly sound, might be in danger of a run through beginning criminal proceedings against the gossip mongers. Those advocating a change in the law want the act amended so that any bank hearing rumors about itself may complain to the Commissioner of Banking and Insurance. It is proposed that the Commissioner question the person spreading the rumor and if the statements made be true that the bank be taken in charge by the State Department; but if false, then the scandal monger be prosecuted by the Commissioner. A bill will be introduced in the Legislature this month providing for this change. -New York Sun.