Highland Trust Company - West Hoboken, NJ

Bank Information

Episode Type: Run Only
Bank Type: trust company
Start Date: February 13, 1914
Location: West Hoboken, New Jersey (40.745, -74.032)

Metadata

Model: gpt-5-mini
Short Digest: 934625da

Response Measures

Accommodated withdrawals, Public signal of financial health, Books examined

Description

A short-lived run on the savings department in mid-February 1914, caused by a mistaken interpretation of a 'Bank Closed - Legal Holiday' sign by an Italian depositor who circulated a groundless rumor. Deposits were largely returned and the bank remained open; no suspension or receivership is mentioned. Bank took actions (engaged detectives, refused to 'renew' withdrawn accounts) and State examiner reassured public.

Events (1)

1. February 13, 1914 Run

Cause: Rumor Or Misinformation
Cause Details: An Italian depositor misread a 'Bank Closed - Legal Holiday' sign on Lincoln's Birthday and circulated a groundless rumor of failure, triggering withdrawals.
Random Run: Yes
Random Run Snippet: Italian depositor misread 'Bank Closed' holiday sign; spread rumor
Measures: Engaged detectives to find originator; State banking examiner reviewed records and issued reassuring statement; bank refused to 'renew' withdrawn accounts and suggested depositors try other institutions.
Newspaper Excerpt: After careful investigation the officers of the Highland Trust Company of West Hoboken, N. J., have discovered the cause of a run on the savings department of the institution, which began in a small way last Friday and still continues.
Source: newspapers

Newspaper Articles (3)

1. February 19, 1914 The Evening World New York, NY

Article from The Evening World, February 19, 1914

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Article Text

HOLIDAY SIGN READ: "BANK CLOSED." AND THAT STARTED A RUN Italian Depositor Circulated Rumor of Failure and Trouble Began Next Day. After careful investigation the ofGeers of the Highland Trust Company of West Hoboken, N. J., have discovered the cause of a run on the savings department of the institution, which began in a small way last Friday and still continues. An Italian depositor who cannot read English started the trouble. He is employed in a silk mill, and on last Thursday -Lincoln's Birthday-the mill did not close down. During the noon hour he went to the Highland Trust Company to draw some money. He found the doors closed and locked and was confronted by a sign reading "Bank Closed-Legal Holiday." Calling to a passerby, the depositor asked what the sign meant. He was told that the bank was closed for Lincoln's Birthday, but only the fact that the

2. February 20, 1914 Newark Evening Star and Newark Advertiser Newark, NJ

Article from Newark Evening Star and Newark Advertiser, February 20, 1914

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Article Text

PROBING RUN ON BANK IN HUDSON President of Highland Trust Believes Foreigner Spread Groundless Rumor. WEST HOBOKEN. Feb. 20.-President Thomas McEwan. of the Highland Trust Company, wants to know how the run on that bank started, and to that end engaged detectives today. Mr. McEwan believes that the run was wilfully started by somebody and he suspects a disgruntled foreigner. The run is now thought to be at an end, and it is believed that by the end of the week most of the deposits that were withdrawn will have been returned. "This bank has $1.23 to show for every dollar in deposits," said Mr. McEwan, "and if every dollar of deposited money was withdrawn today the Highland Trust Company would still have $223,000. This bank is absolutely sound, so sound that I cannot imagine how the run was started. Our ability to meet every demand without aid from any other banks shows that there is no. merit to the sudden demand for money." The business men of North Hudson showed no signs of distress, and very few of them withdrew during the run. Practically every business man in town is satisfied that the bank is safe, and did not venture to withdraw funds.

3. February 21, 1914 Newark Evening Star and Newark Advertiser Newark, NJ

Article from Newark Evening Star and Newark Advertiser, February 21, 1914

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Article Text

BANK REFUSES TO RENEW ACCOUNTS Highland Trust Asks Panicky Depositors to Try Some Other Institution. [Special to the Newark Star.] WEST HOBOKEN, Feb. 21.-Many of the depositors who withdrew their savings from the Highland Trust Company during the senseless run on the bank Thursday sought to have their accounts reopened today and asked that the interest stand the same as though their funds had never been disturbed. They were told that the interest would not stand and that the bank officials would prefer that they take their accounts to some other institution. The bank officials and business men are anxious to find the man who was ignorant that Lincoln's Birthday was a holiday and started rumors that caused the run. They will prosecute him under a State law of 1907 which makes such an offense a misdemeanor. The punishment is three years in prison or $1,000 fine, or both. State Banking Examiner Ray E. Mayham, of Trenton, is going over the bank's records. He issued a statement last night in which he said: "There is absolutely no cause for alarm on the part of the depositors of the Highland Trust Company. The regular examination of that institution by the State bank examiner several months ago showed it to be in excellent condition and there is no indication that there has been any change. No depositors should be influenced to withdraw money by unfounded rumors. In my opinion the institution is safe and sound and in every way worthy of the confidence of its depositors."