14287. Plainfield Savings Bank (Plainfield, NJ)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
savings bank
Start Date
January 1, 1878
Location
Plainfield, New Jersey (40.634, -74.407)

Metadata

Model
gpt-5-mini
Short Digest
6aadbd52

Response Measures

Full suspension, Books examined

Other: Chancellor appointed a special master/receiver; bank enjoined from receiving or paying money.

Description

Depositors made heavy withdrawals beginning in January 1878 (about $100,000) after rumors about the late president's conduct and after the Newark bank failure; officers converted securities to cash but applied to the Chancellor and the bank was enjoined/closed Feb 18, 1878. The closure appears permanent/for winding up (special master appointed, officers to wind up).

Events (3)

1. January 1, 1878 Run
Cause
Bank Specific Adverse Info
Cause Details
Sustained injury to reputation from operations of its late president (rumor he used bank funds) and loss of confidence after Newark bank failure leading to heavy withdrawals through January and February.
Measures
Converted marketable bonds into cash; met large withdrawals (sudden demand for $80,000 in cash) in an attempt to satisfy depositors.
Newspaper Excerpt
Since January 1st about $100,000 of the deposits have been withdrawn
Source
newspapers
2. February 18, 1878 Suspension
Cause
Government Action
Cause Details
Officers applied to the Chancellor for a receiver and court enjoined the bank from receiving or paying money; special master to examine affairs and wind up business.
Newspaper Excerpt
The Plainfield savings institution closed its doors on Saturday. ... the officers applied to the chancellor for a receiver, and were enjoined from receiving or paying money.
Source
newspapers
3. February 19, 1878 Other
Newspaper Excerpt
Application was therefore made to the Chancellor of New Jersey by the President for permission to wind up the business... No receiver is appointed, but a special master is to be appointed by the Chancellor to make an examination of the affairs of the bank. Meanwhile, the bank officers have charge of the assets, with power to convert them into cash ... It is estimated that from six to ten months will be required to settle the affairs of the concern.
Source
newspapers

Newspaper Articles (6)

Article from Evening Star, February 18, 1878

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Article Text

Another Savings Bank Shut Up. ELIZABETH. N.J., Feb. 18.-The Plainfield savings institution closed its doors on Saturday. Since January 1st about $100,000 of the deposits have been withdrawn, and to save the rest the officers applied to the chancellor for a receiver, and were enjoined from receiving or paying money. The bank statement, January 1st, showed bonds and mortgages to the amount of $230,000. and a surplus over liabilities of $6,000.39. Judge Runyon is pres dent and E. R. Pope treasurer.


Article from The Sun, February 19, 1878

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Article Text

PLAINFIELD'S BANK CLOSED. Another Savings Institution in the Hands of New Jersey's Chancellor. On the doors of the Plainfield (N.J.) Savings Bank yesterday were posted notices that the bank was closed, and that money would be neither received nor paid out. This is the culmination of a series of difficulties surrounding the bank for the last six months. It was not entirely unexpected in the vicinity. The bank sustained some injury, in reputation at least, from the operations of its late President, Elston Marsh, whose complications with the Central Bailroad of New Jersey led to a public rumor that he had used the money of the bank. Then the failure of the Newark Banking Institution led to a loss of confidence. and the depositors have been making constant withdrawals of deposits that have not been replaced. In December Inst there was $20,000 more drawn out than was put in. January increased the trouble, for there was $44 000 withdrawn above the amount deposited. In the first half of the present month. $15,000 more was withdrawn. The bank officers are well-known men in financial circles and in public affairs. The President, E. W. Runyon. is Judge of the Circuit Court of the county and Vice-President of the First National Bank of Elizabeth. The Treasurer, Mr. E. R. Pope. is President of the City National Bank of Plainfield. and Treasurer of the Building Loan. The Vice-Presidents are S.O. Horton and Isaae P. Brown. As the bank has been established ten years, and is the only savings bank in Plainfield. there being no other nearer than twelve miles, the officers hoped to ride out the storm. They converted their marketable bonds into eash, which, added to the $11,000 on hand in January, when there was $6,000 surplus, they hoped would be sufficient to pull them through. But the sudden demand for $80,000.in cash. which they met, crippled their resources. and they saw that unless they disposed of their securities at a snerifice they must stop. Application was therefore made to the Chancellor of New Jersey by the President for permission to wind up the business, and the order was issued by the Chancellor last Friany. It is similar to that in the case of the Newark Savings Institution. No receiver is appointed, but 11 special master is to be appointed by the Chancellor to make an examination of the affairs of the bank. and report. Meanwhile, the bank officers have charge of the assets, with power to convert them into cash in cases where that can be done without loss, It is estimated that from six to ten months will be required to settle the affairs of the concern. No accurate estimate of the amount that will be realized by depositors can yet be made. Mr. Pope said yesterday that he could say generally that there is about $250,000 due to 1,400 depositors. To secure this there is 11 slightly larger sum due the bank for loans on bond and mortgage, which he believes to be good.


Article from Perrysburg Journal, February 22, 1878

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THE EAST. Miss Susan Dickie, whose alleged insanity has been a subject of inquiry by a New York since Dec. 9, has been sound been a asyjury mind. She has confined declared in of lunatic her of brothlum seven years at the instance ers and sisters. She will at once enter suit for her property. The Free Pipe Line bill has passed third reading in the Pennsylvania House. A bill was introduced in the New York Senate on the 12th permitting pool-selling on race tracks. A collision between express and freight trains occurred near Newport, on the Newcastle branch of the Pittsburgh & Fort Wayne the 13th. Engineer the and Fireman passenger freight, Road, on Hill, of the Pflugh, and several of train, were killed. Both engines freight cars were wrecked. The President and family were in Baltimore on the 13th and attended the opening of a Methodist fair. The shoemakers' strike at Lynn, Mass., is ended, mutual concessions having been made. Mother Theresa, of the order of Carmelite Nuns, died in Baltimore on the 12th in the eighty-first year of her age and the sixty-first of her religion. Her father was Col. Sewell, of Gen. Washington's staff. the convicted and sentenced ex-President New York Security Case, of the bail Life in $25,000 Insurance Company, was admitted to on the pending his appeal. for many years the J.F. 13th, Tracy, President Railroad, of died Chicago, Rock Island & Pacific at Erie, Pa., on the 13th. Daniel Webster's old mansion at Marshfield, was destroyed by on of the Navy Ex-Secretary Mass., fire Gideon the Welles 14th. the 14th at Hartford, Conn. The were simply the was ceremonies buried on number burial of service disof the Episcopal Church. A were of been tinguished C. W. Woolley, persons Cincinnati, present. has elected President of the National Trotting Association. On the 14th the steamer Richmond sailed from Philadelphia for Brazil, conveying men and material for the execution of the contract of the Maderia & Mamore (Brazil) She carries forty cabin passengers, Railway. building forty-two officers and and about sea425 Many started again olis men, steerage survivors passengers. and of the others Metrop- will next steamer. of the contractors, was one lins, follow one on the Thomas of Col- the passengers. First and Chase National of New York, The Banks, Corn Exchange, have been victimized to the amount of $19,000 by false checks issued by the clerk of deposit of the Corn Exchange Bank. been reported in the Maine House of equal A Representatives bill has giving political rights, the irrespective of sex, and granting women right to vote in municipal elections. The Schepler Brothers, of Philadelphia, of worsted goods, on the 15th. Their are payment manufacturers liabilities suspended very heavy. The Manchester (N.H.) City Savings Bank has suspended business. difficulties of the Lord York, out of the marriage to Mrs. Hicks, The growing family of settled. at the New old Sr., surrenders to amount to over Thomas gentleman -estimated Lord, have hisentire $2,000,000-to been estate who will to each of annum during the trustees, $12,000 per pay old them. the man's children Mrs. life. On his death the estate goes to Lord surrenders all right of dower. She is said to possess a fortune of over $500,000. number of cases of from an well have occurred at Vt. A infected large poisoning Rockport, steamer the morning of the 17th the Old of the Fall River & when Point Judith, Colony, On off broke New her York walking- line, which crashed the the to of beam, hold, injuring vessel through the the decks amount injured. to $75,000. Fortunately no one was The force of the fall may be imagined when it is considered that upward of twenty tons of from an elevation to It was a most escape fifty iron feet. fell marvelous of from forty from entire destruction. Block, New and the The York, Excelsior Presbyterian Twenty-third and Scotch street, Covenanters' Churches, adjoining, were destroyed by fire on the 17th. Loss estimated at $475,000. Peter Cooper has issued an appeal to the country in which he declares it to be the duty of our Government to silver also to possible remonetize to be and do all that is done to those Governments that have desilver to He that a or monetized induce suggests remonetize Northwestern the same." Southbe built to give the that silver be as a western unemployed; railroad financial restored work policy to legal that a permanent be that a judicious on all of which we raw adopted; tender; importations tariff have be levied the in and service as as material be organized abundance, specifically that the the civil military. The Plainfield (N. J.) Savings Institution has closed its doors. Operations were resumed in the Lehigh (Pa.) coal regions on the 18th. The steamer City of Dallas, laden with eotton, was burned at New York on the 18th. WEST AND SOUTH. The International Executive "Committee


Article from The Sun, February 23, 1878

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Article Text

A new definition of the word surplus is required for the benefit of some of the managers of savings banks. In the cases of the Rahway and Plainfield savings banks that recently stopped. the January reports showed a fair surplus. In ordinary language this would indicate that a bank had enough assets to pay its debts and something over. But the surplus meant something that existed chiefly in the imagination, and could not be found even by the most assiduous receiver.


Article from New Ulm Weekly Review, February 27, 1878

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The Plainfield, N J., savings institution has closed its doors. Hugh Matthewson & Co. grocers, Montreal, have suspended. Liabilities $170,000; assets $100,000. Her Majesty's frigate Raleigh, reported ashore on Rabbit Island, is afloat again. She sustained no damage. Chess, Charley & Co.'s and Voss, Taylor & Co.'s large oil warehouse at Mobile burned on the 18th. Loss $25,000. An international butter, egg and cheese convention for the United States and Canada, is to be held at Chicago, March 6th to Sth. The Chicago Burlington & Quincy railroad company reports its gross earnings last year at $12,551,454; net earnings $5,373,141; deducting interest on bonds and bills, balance $3,223,230. Desmarteau, Lamaraux & Creiver, of Montreal, land speculators, have failed. Liabilities half a million dollars. Their assets consist of real estate, on which there is a great shrinkage. A Havana telegram says all the insurgent chiefs have given in their adhesion to the conditions of peace. General satisfaction is expressed all over the Island, and peace is no longer doubtful. The Steamer City of Dallas, cotton and fruit laden, from Fernandino, Florida, was sunk at her dock in New York on the 17th inst., to prevent her cargo from being wholly destroyed by fire which broke out in the hold. A large brick warehouse at Savannah, Ga., belonging to the Savannah Bank and Trust Company, and leased to H. M. Corner & Co., was burned by incendiary on the 17th inst. The building contained 4,000 bales o cotton, covered by by $22,000 insurance. Only 500 bales, damaged, were saved. The suspension, on the 20th inst., of the old flour and grain firm of A. G. Cattell & Co., caused no little excitement in the trade, as this firm has been in business for 33 years, and


Article from The Redwood Gazette, February 28, 1878

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EPITOME OF THE WEEK. Condensed Telegraphic News. CURRENT PARAGRAPHS. Rev. Alexander Duff, D. D., a distinguished Scottish Missionary, is dead. The Plainfield Savings Bank, of Plainfield, N. J., closed its doors, on the 18th. The King of Siam has decided to send a diplomatic representative to the United States. The Etna Iron Works, of Ironton, Ohio, has suspended payment. It had a capital of $1,000,000. The old family mansion of Daniel Webster, at Marshfield, Mass., was burned, on the morning of the 14th. J. F. Tracy, formerly President of the Chicago, Rock Island & Pacific Railroad, died at Erie, Pa., on the 13th. There is to be a National Fat-Cattle Show at Chicago, opening in the Exposition Building, on the 2d of December. President Hayes has refused to remove Gen. Anderson from the office of United States Collector at the Port of New Orleans. Sixty-one Cardinals entered their cells in the Vatican, on the evening of the 18th. where they will remain until a Pope is elected. The house of Daniel Reardon, at Wickham, N. B., was burned, a few days ago, and he, his wife and four children, perished in the flames. The house of J. Leftridge, near Ironton, Ohio, caught fire, the other day, and his three children, who were alone in the house, perished in the flames. The strike of the Crispins, at Lynn, Mass., has been virtually ended by concessions upon both sides, and all the boot and shoe establishments have resumed operations. An official telegram from Zanzibar announces the death there of Messrs. Mars and Crespel, who were sent by the King of Belgium to explore the interior of Africa. The income tax of 1870 produced $5,000,000. and was paid by 75,000° people. Commissioner Raum has expressed the opinion that the renewal of such tax would not now yield over half that sum. The United States Treasury held, on the 16th, $346,237,550 in United States bonds to secure National Bank circulation, and $13,493,000 in bonds to secure public deposits. National Bank circulation outstanding: Curreney notes, $320,608,518; gold notes, $1,432,120.