14253. Paterson Savings Institution (Paterson, NJ)

Bank Information

Episode Type
Run Only
Bank Type
savings bank
Start Date
July 18, 1877
Location
Paterson, New Jersey (40.917, -74.172)

Metadata

Model
gpt-5-mini
Short Digest
203c21d4

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions

Description

Multiple July 18–22, 1877 newspaper accounts report a run on the Paterson Savings Institution with withdrawals (about $37,000–$40,000) by mostly small depositors. The trigger was rumors and the recent failure/suspension of other local financial firms (Paterson Fire Insurance Company and Merchants' Trust and Loan Company). No suspension or closure of the savings institution is mentioned; reports indicate the bank was solvent and paid withdrawals during the day and made provisions for a protracted run.

Events (1)
1. July 18, 1877 Run
Cause
Local Banks
Cause Details
Run triggered by rumors about the bank's soundness following the failure of the Paterson Fire Insurance Company and the recent suspension of the Merchants' Trust and Loan Company; many managers were directors in those firms.
Measures
Officers paid withdrawals through the day; National Banks of Paterson offered to advance money on bonds and government securities; bank stated it had ample available funds.
Newspaper Excerpt
The failure of the Insurance Company, added to the suspension of the Merchants' Trust and Loan Company last week, caused a run upon the Paterson Savings Institution yesterday... At four o'clock ... about $37,000 had been withdrawn.
Source
newspapers

Newspaper Articles (10)
1. July 19, 1877 New-York Tribune New York, NY
Article from New-York Tribune, July 19, 1877

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Article Text

RESULTS OF THE PATERSON SUSPENSION. A RUN ON THE SAVINGS BANKS. Vice-Chancellor Van Vleit of New-Jersey, yesterday appointed James Jackson, Cashier of the Second National Bank of Paterson, Receiver of the Paterson Fire Insurance Company. The Receiver will give bonds in $300,000. The total available resources of the company will not exceed $180,000, while the liabilities are about $190,000, including the capital. Nearly the whole of the stock IS held in Paterson, in amounts ranging from $200 to $12,000. Experts estimate that it will take about $100,000 to pay the claims of the policy-holders, while the unpaid losses amount to about $92,000. Receiver Jackson will at once take charge of the office. The failure of the Insurance Company, added to the suspension of the Merchants' Trust and Loan Company last week, caused a run upon the Paterson Savings Institution yesterday. This Bank is said to be one of the staunchest savings institutions in New-Jersey, its deposits aggregating $790,000. It was incorporated in 1869. The run was caused by rumors affecting its soundness, which were caused probably by the fact that some of its Managers were also Directors in the Paterson Fire Insurance Company and the Merchant's Loan and Trust Company. The run was made by the mill operatives and other small depositors, those having large sums on deposit not participating. During the day several hundred of the depositors gathered about the banking house and a large force of clerks was kept busy all day paying the claims as fast as they were presented. At four o'clock in the afternoon, the usual closing hour, about $37,000 had been withdrawn. The officers have made ample provisions for a protracted run. No notice is required of depositors. The bank has at least $500,000 in available funds. Heavy runs were made upon this Bank in 1872 and 1873, but all demands were promptly mei, and the money was re-deposited during the next ten days. The capital is $100,000, but each stock-holder is responsible for double the amount of stock that he holds. The National Banks of Paterson have offered to advance all the money needed upon the bonds and Government securities held by the Institution until tue run ceases. A slight run was made also upon the Passaic County Savings Institution, about $3,000 being withdrawn in small sums. The following letter in relation to the failure of the Insurance Company was received yesterday: To the Editor of The Tribune. SIR: In your paper of this date I notice an article headed 'The Patters II Fire's Heavy Losses," in which is a statement that reflects injuriously upon me, which reads as follows: "The agent of the Middle Department of New-York State, D. R. Satterlee, is behind about $8,000, which we has received as premiums, and which amount stands charged to nin on the books of the Company." This statement is untrue. My department does not include the State of New-York, but embraces the States of Pennsylvania, Ohio, Indiana and Kentucky. I have in my hands DO premiums collected for the Company; but the amount alluded to is in the hands of agents under me, who haver not yet paid it into my hands. Please make the correction and oblige D. R. SATTERLEE. Yours truly, New. York, July 18, 1877

2. July 19, 1877 Public Ledger Memphis, TN
Article from Public Ledger, July 19, 1877

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Article Text

Runs on Banks, NEW YORK, July 19.-A run on the Paterson (N. J.) Savings Bank yesterday also caused a run upon the Passaic County Savings Institution in Paterson.

3. July 19, 1877 The New York Herald New York, NY
Article from The New York Herald, July 19, 1877

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Disregard of Business Principles Which Caused the Failure of the Paterson Company. LOSSES OF STOCKHOLDERS. Impairment of the Royal Canadian and How It Is To Be Repaired. GUARDIAN MUTUAL LIFE. [BY TELEGRAPH TO THE HERALD.] PATERSON, N. J., July 18, 1877. The Paterson Fire Insurance Company in 1876 ap. peared to many as mismanaged, its risks being of a slop-bucket kind. The Secretary was recommended to the company by Mr. Home, ot the Continental Company. He took all hazards and they did not average. "A director cannot go into voluminous details," said one director, "and the business must rely on its agents." A broker savs, however, that in this case nobody knew anything but the Secretary, and he knew nothing. James Jackson, the appointed receiver, is a financier who will untangle the difficulty. it appears to be the sentiment here that the President should have known about the affairf. Some time ago he had $10,000 of the stock. He is President of the First National Bank and connected with the Paterson Savings Bank, which is a sort of tender to 11, and which had a large run on It yesterday, policemen being necessary to control the crowd. The savings bank, however, is safe. The losers by of the insurance company involve the holders stock of most of the moueyed institutions in the town, and though some of them said last evening that the questions of the HERALD reporter were those of a fool they subsequently acknowledged that If they had asked themselves the same questions six months ago they would have fared better. STOCKHOLDERS' LOSSES. Shaw, Hincheliffe & Penrose, brewers, lose $15,000; Mr. Caburo, a Spaniard, $10,000; Mr. Crosby, the grocer, $6,000; Mr. McNab, $10,000; John Dunlap, silk dealer. $12,000; David Henry, builder, $5,000; Mr. Vandyck. dry goods, $10,000; Daniel Milter. $5,000; James Jackson, cashier of the Second National Bank, $6,000; John Swinburne, cashier of the First National Bank, $5,000. FINANCIAL IG ORANCE. Much of this is now probably cats and dogs. The truth is that a mau who made his money in dry goods was put as a figurehead in local institutions, and he relieu on specialists who knew even less than he did 10 general finance. Paterson is financially weak, and the secret is that men who made money last in special businesses were ignorant when it came 10 broad, geueral financial principles.

4. July 19, 1877 The New York Herald New York, NY
Article from The New York Herald, July 19, 1877

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Article Text

RUN ON PATERSON BANKS. PATERSON, N. J., July 18, 1877. Tuere was a run on the Paterson savings banks to. day caused by the recent failures. Forty thousand dollars were drawn from the Paterson Savings Bank and $3,000 from the Passaic County Savings Bank.

5. July 20, 1877 The Daily Gazette Wilmington, DE
Article from The Daily Gazette, July 20, 1877

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Article Text

THE RUN ON SAVINGS BANKS. The run on the Paterson Savings In stitution, at Paterson, N. J., continued yesterday, and $37,000 was withdrawn from it, mostly by small depositors. In the afternoon the excitement was subsiding. There was no run on the Passa1c County Savings Bank yesterday. Investigation shows that the capital of the Paterson Fire Insurance Company was impaired $30,000 last December, when the sworn statement of its ficers asserted that the company had a reinsurance fund of $167,000 and a surplus of $17,000. There is talk of bringing the matter before the Grand Jury. The run on the Savings Banks in Chicago was renewed yesterday, and was liveliest on the State Savings Bank. It was checked speedily by the posting of notices in all the Savings institutions, declaring that the thirty days' rule would be enforced. The general opinion is, that the excitement will subside in a few days.

6. July 20, 1877 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, July 20, 1877

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MINOR TELEGRAMY. In Amesbury, Mass., Mrs. Mary E., wife of F. W. Lane, died yesterday morning of burns received from the accidental ignition of a kerosene oil stove. In Auburn, Mass., yesterday morning, Ellen, wife of Frank Campbell, a crippled pauper, was murdered by James Mulcahy, alias Williams. He broke all four of his victims limbs across his knees, and pounded her head, destroying one eye and fracturing her skull. She lived about four hours and told the story of the murder and the name of the murderer. Mulcaby has been arrested and admits the crime. In Baltimore, J. P. Wehram was instantly killed Wednesday, by the explosion of 2 gas machine which he was examining with a lighted candle. He was thrown to the ceiling, 22 feet, with such force as to break his neck, right arm, right leg and several ribs. Mr. Tilden told a reporter that be had nothing to do with the Louisiana Returning Board indictments. The doctor who attended Courtney, the oarsman, asserts that he was not poisoned, but suffered from excitement, imprudent eating or change of water. The great shirt manufactory of T. A. Cool® idge at West Marlboro, Mass., was burned Wednesday night, with a dwelling house. Loss on factory and stock $100,000; insured for $74,000 in 21 companies. Over 200 hands are thrown out of work. A Galveston despatch from San Antonio, Wednesday, says Gen. Pedro Valcez arrived by Eagle pass stage this morning. He has 280 men. Gen. Naranjo, on the other side, has 160 men, 100 of whom will join Valdez as soon as he crosses, which will be in six days. The first number of the daily newspaper "Among the Clouds" published on Mount Washington, was issued yesterday. It is the first newspaper printed upon a mountain in the country, if not in the world. John H. Shields, the ringleader of the gang who committed rape on Mrs. Ellen Warren of New Haven, May 23, was sentenced yesterday to imprisonment for life. In the race at Providence yesterday between P. Keeler's chestnut mare Lizzie Keeler and George Amsden's chestnut mare Fannie, for $2000 a side, Keeler won in three straight heats. Time, 2 301. 1.301, 2.36. The New Hampshire Legislature adjourned yesterday till the last Wednesday of next May. Wallace Cook's house and barn at East Hamburgh, N. Y., with contedts were burned Wednesday night. Loss $10,000; insurance $5600. The run on the Paterson savings institution continued yesterday, $37,000 being drawn, mostly by small depositors. Excitement is subsiding. Hon. J. Simpson of Cavendish, P.E.I., is dcad. Thomas Robinson, who acted as grand marshal at Hackett's faneral, has received a letter threatening his life. Eggleston Montgomery of New York has been appointed consul at Geneva. Owensburg, Ky.. was burned Wednesday night. Loss $50,000. Tweed sends a letter to the corporation counsel authorizing him to enter judgment in all pending suits. 25,000 more Spanish troops are to be sent to Cuba. The Pennsylvania Republican State Conventson has been postponed till Sept. 5. The Royal Canadian Insurance Co. has decided to reduce its capital stock from $600,000 to $300,000, and that special assessments of $300,000 due in August be carried as a reserve. A widely circulated report that J. J. Houghton, formerly of Burlington, Vt., has been arrested as the Keeseville bank robber, is entirely untrue.

7. July 20, 1877 The New York Herald New York, NY
Article from The New York Herald, July 20, 1877

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Article Text

RUN ON THE PATERSON SAVINGS BANK. PATERSON, N. J., July 19, 1877. The run on the Paterson Savings Institution continued to-day. Thirty-seven thousand dollars were withdrawn, mostly by small depositors. The excitement is subsiding. There was no run on the Passaic County Savings Bank to-day.

8. July 21, 1877 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, July 21, 1877

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The trial of William Henry Keatts for the killing of George W, Little at Mount Airy, in Pittsylvania county, last April, was concluded Thursday, resulting in a verdict of two years in the penitentiary. This was his second trial. He was sentenced for four years the first time. Almost the entire business portion of Owensboro', Ky., was destroyed by fire Wednesday night. A Mr. McJobnson and his family were nearly suffocated in their house before being rescued. Loss about $50,000. The match and shoe-blacking factory of Swift & Courtney, at Philadelphia, was partially destroyed by fire Thursday night. Loss about $40,000. The run on the Paterson (N. J.) Savings Bank was continued Thursday, and $37,000 was drawn out. The excitement is subsiding. The capital of the Paterson (N. J.) Fire-Insurance Company was. impaired $50,000 last December, when the sworn statement of the officers said the company had a reinsurance fund of $167,000, and a surplus of $17,000. There is talk of a grand jury investigation into the matter. The police made 2 descent on two houses in Montreal, Canada, early Thursday morning, and arrested three men charged with the shooting and serious wounding of William Elliott on Monday evening after the funeral of Hackett, the murdered Orangeman: Rev. Mr. McLeod, of the Presbyterian Church, is the clergyman who went forward when Hackett was shot, but was prevented by the mob from performing any ministerial service. Dr. Edward Ransom, a native of Gloucester county, Va., died at his home in Tyrell county, N.O., on the 14th. He was a Republican, and had held a number of prominent public positions. Right Rev. James Gibbons, Bishop of Richmond, Va.. is visiting Bishop Healey, in Portland, Me.

9. July 22, 1877 Evening Star Washington, DC
Article from Evening Star, July 22, 1877

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Article Text

THE RUN on the Paterson (N. J.) Savings Bank was continued yesterday, and 837,000 was drawn out. The excitement is subsiding. The capital of the Paterson (N. J.) Fire Insurance Company was impaired 850,000 last December, when the sworn statement of the officers said the company had a re-insurance fund of $167,000 and a surplus of $17,000. There is talk of a grand jury investigation into the matter.

10. July 24, 1877 The Sedalia Weekly Bazoo Sedalia, MO
Article from The Sedalia Weekly Bazoo, July 24, 1877

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News Items by Telegraph and Otherwise. -The railroad strike is subsiding. -The Turks are pulling back before the Russians. -The situation in the last is very discouraging to the Ottoman. -Road agents continue to plunder stage coaches in the Black Hills. -The Northern Indians; in Montana, continue to threaten the settlements. -The run upon upon the Savings Banks, of Chicago, has shown no signs of abating. -The Canadian anthorities have notified Sitting Bull that he must leave the country. -Turkish commanders in Bulgaria are accused of betraying their country to the enemy. -The hostile Chief Joseph pretended to sue for peace in order to get time to continue his retreat. -Governor Hartranft, of Pennaylvania, with a party of excursionists is on a trip to the mountains. -The White citizens of the Northwest, complain that all their troubles are brought about by Indian Agents. -The run on the Paterson, (N.J.) Savings Bank yesterday also called a run upon Passaic County Savings Institute in Paterson. -The house of David Graves at Brandywine Springs, Del., was robbed Friday night of $11,000 in United States bonds, $100 in cash and valuable jewelry. -The textile manufacturers of America held a slimey attended meeting in Chicago yesterday. They passed resolutions and did business of interest to the trade. -At a meeting of the Board of Managers of the Produce Exchange in New York Friday, it was decided to withdraw from the National Board of Trade and not send a delegation to its meeting. -J. P. Wehrheim, of the firm of Wehrheim & Bros., 111 Frederick Avenue, of Baltimore was instantly killed by the explosion of a gas machine, which, with a lighted candle, he was examining for a leak. -Henry M. Hoyt, Chairman of the Republican State Committe of Pennsylvania, has issued an order postponing the Republican State Convention, called to meet at Harrisburg, August 39, until September 5th. -The shoe manufactory and dwelling house of T. A. Coolidge, West Marlboro, was burned Friday night. Loss on buildings and stock $100,000. Insurance $75,000 Over two hundred hands are thrown out of employment. -The Montgomery County Republicans met in convention at Dayton. Ohio, yesterday, and elected delegates to the State Convention at Cleveland, August 1. They adopted a resolution endorsing the pacification policy of President Hayes and in favor of the silver dollar. --A San Francisco dispatch says a fire Friday night destroyed several thousand feet of the snow sheds on the Central Pacific railroad, near Emigrant Gap and Dutch Flat, delaying trains and stopping telegraphic communication for some hours.