Perth Amboy Trust Company - Perth Amboy, NJ

Bank Information

Episode Type: Run Only
Bank Type: trust company
Start Date: April 12, 1921
Location: Perth Amboy, New Jersey (40.507, -74.265)

Metadata

Model: gpt-5-mini
Short Digest: 9da60d6e

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health

Description

Newspaper articles (Apr 12-13, 1921) describe an incipient run triggered by false rumors that the bank had lent money to a jailed bootlegger. The president obtained $500,000 in cash from Manhattan, kept vaults open and extended paying hours; depositors redeposited and the bank continued business. No suspension or receivership is mentioned.

Events (1)

1. April 12, 1921 Run

Cause: Rumor Or Misinformation
Cause Details: False/ circulating rumors (anti-saloon publication and a sermon) alleged a large loan to a bootlegger which alarmed depositors.
Measures: President Isaac Alpern obtained $500,000 in cash from Manhattan banks, placed it in the vaults, kept the bank open beyond usual hours and issued a directors' statement assuring solvency.
Newspaper Excerpt: An incipient run on the Perth Amboy Trust Company, based on a rumor that the directors had lent $100,000 to a bootlegger, was checked late yesterday after a statement had been issued by President Isaac Alpern.
Source: newspapers

Newspaper Articles (3)

1. April 13, 1921 Perth Amboy Evening News Perth Amboy, NJ

Article from Perth Amboy Evening News, April 13, 1921

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Article Text

TRUST COMPANY NORMAL AGAIN Scare Yesterday Subsides as the Truth About Bank Became Known. As the truth regarding financial condition of the Perth Amboy Trust Company became known to the people yesterday afternoon the fear that had been created through the circulation of false rumors regarding the bank subsided so that by 3 o'clock, the regular hour for closing the bank. there were hardly any people at the withdrawal window and by 3:30 o'clock the place was vacant. It was the intention of the bank officials to keep the doors open as long as there was anyone who wanted to draw out money, but the demand had ceased before the afternoon was half over. This morning a few accounts were closed. but there was no crowd and with great quantities of money piled inside the tellers' windows as strikIng evidence of the bank's ability to take care of all comers, those who vere still skeptical went away satisfied. This afternoon money was being déposited by those who had become panic-stricken yesterday, many who had hastily withdrawn their savings yesterday being particularly anxious as to whether or not they would lose their interest if they returned their money today. With a capitalization of $200,000 and with a surplus of $200,000 more, and with resources totalling over $4,500,000, as shown in the statement of the bank published yesterday, it was evident at once to every thinking person that the Perth Amboy Trust Company is in excellent financial condition and more than able to meet any demand that might be made upon it. There was widespread regret that such a false rumor should have been circulated. It was particularly hard on many people who were thus influenced to draw out their savings thus losing their interest and running the risk of having their money stolen. The bank is doing business as usual today.

2. April 13, 1921 The New York Herald New York, NY

Article from The New York Herald, April 13, 1921

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Article Text

MANHATTAN CASH HALTS BANK RUN $500,000 Sent to Perth Amboy Restores Faith in Trust Company. SERMON STARTS ACTION Officials Blame Attack by Official Organ of N. J. Anti-Saloon League. $35,000 LOAN CRITICISED Bank Has 10,400 Depositors and Assets Are Entirely Unimpaired. two hurried trips to and back Manhattan By making taking with him in on each trip in a the Isaac cash. handbag Alpern. president $250,000 of N. J., Trust Company, in Perth succeeded Amboy yesterday stopping 300 a two on his bank in which ac$161,000. were counts, day run totalling closed out. The news that the president of the bank had obtained half a million dollars in cash from the big banks of New York caused such renewed confidence in his institution. however, that late afternoon up to yesterday by depositors $81,600 of the funds withdrawn had been redeposited. Mr. Alpern said last night that the caused by the run American was official circulation by of the Issue, the organ Anti-Saloon League of New Jersey, of that the trust company the reports had joaned $100,000 to Frank Gold, who has been convicted and sentenced to serve six months for violation of the Volstead act. Subject of a Sermon. loan was of last of The a sermon alleged Westcott. pastor Sunday also by the the the Simpson subject Rev. of Perth bank for money Methodist Wilbert denounced Church the lending Amboy. matter who to bootlegger. The talk of the town then a caused became convicted such the whole the and unrest among depositors, most of whom are foreigners, that the run began. The bank president said last night that what really happened was that some time ago the trust company made a loan of $35,000 to Frank Gold, Inc., which a as a in money was wholesale obtained firm had dealer by Government Sigmund liquor. Spitzer, The permit and secured and of the & was bonds amply Chicago, by Liberty Burlington Since bonds the Gold has on a senloan convicted Quincy was made Railroad plea Company. of guilty been and arrested. tenced to six months, but Mr. Alpern said that this in no way affected the collateral furnished to the bank to seto the cure The matter, the loan however, Gold Mr. the Alpern corporation. Anti-Saloon said, was selzed upon by League, and several editorials appeared in the American Issue, published in Newark, the result being that the depositors became alarmed over the reports that the bank was making large loans to bootleggers. Run Began on Monday. The trouble began on Monday, when there were an unusual number of accounts withdrawn. Late in the afternoon of that day Mr. Alpern came to New York and obtained $250,000 in cash, which he took home and placed in the trust company's vaults. Yesterday morning the run continued, and by noon the line of people at the paying teller's window stretched far into the street. Before noon Mr. Alpern came again to New York and obtained another $250.000. With this half million in the large amount of on Alpern said company was any vaults, prepared last together night cash to kept that weather with the hand, the trust usual Mr. storm. In order to accommodate depositors who wished to withdraw their accounts the the usual tobank hour facility of remained closing will yesterday, open be offered beyond and to day ever any one who desires his money. Mr. Alpern said that the bank had a total of 10,400 accounts totalling $4,600,000, and was entirely sorvent.

3. April 13, 1921 New-York Tribune New York, NY

Article from New-York Tribune, April 13, 1921

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Article Text

Bootlegging 88 Story Stirs Up a Run on Perth Amboy Bank Rumor of $100,000 Loan to Culprit Excites Depositors, but Assurance of Solvency Restores Calm PERTH AMBOY, N. J., April 12.-An incipient run on the Perth Amboy Trust Company, based on a rumor that the directors had lent $100,000 to a bootlegger, since jailed for a violation of law, was checked late yesterday after a statement had been issued by President Isaac Alpern declaring aspersions cast on the bank's soundness to be without foundation. For a time during the morning and early afternoon depositors were lined up for half a block waiting their turn to make withdrawals. It was said that President Alpern had secured $500,000 in gold from a Manhattan bank to pay all comers as fast as they presented themselves at the cashier's window. Two months ago The American Issue, an anti-saloon publication, according to report, published an editorial attacking the bank for an alleged loan to Frank Gold, since charged with being a bootlegger and now in jail awaiting a hearing on charges of liquor law violation. Last Sunday the Rev. Wilbert Westcott, pastor of Simpson Methodist Episcopal Church of Perth Amboy, delivered a sermon, attacking the supposed loan. Late yesterday there came a reaction and depositors who had withdrawn their accounts began redepositing. A statement issued by the board of directors of the company, reads: "Certain false statements have been circulated involving the condition of the Perth Amboy Trust Company and some became concerned for the solvency of the institution. The undersigned directors desire to express full confidence in the institution over which they preside and pledge our united support to it, guaranteeing its solvency and ability to carry on a successful banking business. All its assets are easily converted into cash and there is not the slightest ground for any fear regarding its ability to meet every obligation."