14797. Dollar Savings Bank (Bronx, NY)

Bank Information

Episode Type
Run Only
Bank Type
savings bank
Start Date
October 24, 1907
Location
Bronx, New York (40.850, -73.866)

Metadata

Model
gpt-5-mini
Short Digest
7f57c352

Response Measures

Accommodated withdrawals

Description

Multiple articles describe a brief run (beginning Oct 24, 1907) caused by confusion/misinformation linking the Dollar Savings Bank with the adjacent Knickerbocker Trust branch (including a careless newspaper caption). Explanations and early opening/payments quickly ended the run; the bank did not suspend and later accounts say the episode lasted several days but the bank weathered it.

Events (1)
1. October 24, 1907 Run
Cause
Rumor Or Misinformation
Cause Details
Depositors (largely foreign-born) confused the Dollar Savings Bank with the adjacent Knickerbocker Trust Company's Bronx branch after reports/captions that the neighboring bank had failed; a newspaper caption error also amplified the rumor.
Random Run
Yes
Random Run Snippet
depositors confused it with Knickerbocker Trust; false rumor corrected
Measures
Opened early and began paying depositors on demand; ordered clerks in early; interpreters/explanations given to reassure depositors; officials publicly declared the bank sound.
Newspaper Excerpt
the depositors in the Dollar Savings Bank in the Bronx ... had confused the Knickerbocker Trust Co's Bronx branch with their own institution.
Source
newspapers

Newspaper Articles (10)
1. October 24, 1907 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, October 24, 1907

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the company as last reported were in excess of $70,000,000. Several millions withdrawn today but funds to satisfy every claim were said to be at hand. This was the only run of imporlance today, and this fact was an encouraging feature. The depositors in the Dollar Savings Bank in the Bronx, of which borough President John Hafien is the head, became uneasy over he general situation and many clamorfor their money. These depositors vere chiefly foreigners who had confused the Knickerbocker Trust Co's: Bronx branch with their own instituion. The run, for which there was absolutely no excuse, ended at once. when explanations were made This flurry over, things looked still better, as the minfor ned element among depositors was regarded as hard to control in times of excitement. The Clearing House report was also lawerable today. Apparently the national banks have passed the crisis and those which have required assistince gave evidence today of being able help themselves. James G. Cannon, rice president of the Fourth National Bank and a member of the Clearing House committee appointed to examthe national banks that have been under criticism. announced today that condition of the banks as shown at Clearing House was first-class. Almough a few of them might have to assisted further, he said that conlitions were tast becoming normal. The action of the Knickerbocke Trust Co., which suspended yesterday, re-open today did not exercise such adverse influence on the general situation as might have been expected and the early action of Acting Superintendent of Banks Skinner in taking possession of the institution on the adof the attorney general gave rise a feeling of relief. as it was felt that the state officials would make the most out of the situation. It is said to a question whether the institution will ever re-open, at least under the present management. Another favorable development tolay was a sort of tacit uderstanding between the banks and the members of the Stock Exchange to aid each othbanks by loaning money at somehing like normal rates, and the tradby preventing the bottom dropping of prices on the exchange. Though cail money ruled nominally at 70 per

2. October 24, 1907 The Evening Star and Newark Advertiser Newark, NJ
Article from The Evening Star and Newark Advertiser, October 24, 1907

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them, the supply being maintained by heavy shipments of currency from the treasury at Washington. It was announced early this afternoon that John D. Rockefeller had deposited $10,000,000 with the Union Trust Company, one of the city's oldest and strongest trust companies, the money to be used by that company in aiding the trust company situation generally. The suspension of the Hamilton Bank was announced at 9 o'clock this morning. Its place of business is in 125th street, near Eighth avenue. The explanation is given that pending the complete restoration of public confidence the officers had concluded to close in justice to all concerned. Following the announcement of the suspension of the Hamilton Bank came the news that the Twelfth Ward Bank, located at 125th street and Lexington avenue, had suspended payment. The Twelfth Ward Bank is a State institution, and a State bank examiner has been placed in charge of its affairs. According to a recent statement the institution owed depositors about $3,000,000. The Empire City Savings Bank, located at 231 West 125th street, posted a notice this morning announcing its suspension for thirty days under the banking laws. The officials of the bank declare that the institution is entirely solvent, but that they decided to avail themselves of the thirty days' notice of withdrawal under the State law, because they feared a run owing to the suspension of payment by the Hamilton and Twelfth Ward banks in the same neighborhood. The Empire City Savings Bank, according to a recent statement, owed its depositors about $3,300,000. The run on the Dollar Savings Bank, in the Bronx, which began Tuesday, continued today. Nearly 300 depositors waiting for an opportunity to withdraw their savings were lined up outside the building when daylight came. Many of them, a majority of whom were women, had stood all night in the line. A large percentage of this bank's depositors are foreigners. The stock market's expression at the outset to the feeling of satisfaction over the measures announced over night to end the financial crisis attracted attention at once. Active buying orders were numerous and a buoyant upshoot of prices resulted. The opening pace proved too rapid to be maintained, however, and there was some reaction, but the activity immediately diminished at the lower prices. Westinghouse Electric rose 10 and American Tobacco preferred 48/4. There were advances of 23/4 to 1% in market leaders, but in a few stocks f the pressure of liquidation still made itself felt, Sault Sainte Marie running off 4½, Southern Pacific preferred 21/3, S Interborough-Metropolitan preferred S and Sugar 1½, and Missouri Pacific S and Toledo, St. Louis and Western a t point. a All the overnight developments are S declared to be reassuring. The series of conferences last night, participated n in by Secretary Cortelyou, J. Pierpont d Morgan, John A. Stewart, James Stillr man and other representative bankers and men of affairs, disclosed an agreet ment in the opinion that the situation is well in hand and that with the $25,000,000 government deposits to be made V by Secretary Cortelyou today there S will not only be enough cash on hand, but even more than might be needed h to meet safely any emergency.

3. October 24, 1907 Santa Fe New Mexican Santa Fe., Santa Fe, NM
Article from Santa Fe New Mexican, October 24, 1907

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Government Money Saves Big Banks of New York $10,000,000 ARE DEPOSITED Several Small Banks Suspended Today But No More Large Failures Expected. New York, Oct. 24.-A series of conferences last night, participated in by Secretary of the Treasury Cortelyou, J. Pierpont Morgan, John A. Stewart, James Stillman and other representative bankers and men of affairs, disclosed the fact that the banking situation is well in hand and that with the government deposits made by Secretary Cortelyou today there is not only enough cash on hand, but even more than might be needed to in sure safety in any emergency. Early this morning Secretary Cortelyou said he had directed the depositing in this city of twenty-five million dollars and predicted a speedy return of confidence which the circumstances, he declared, warranted. Rockefeller and Other Financiers Stay Panic. The run on the Trust Company of America was continued this morning. The determination of the other trust companies to aid the Trust Company of America, was pronounced today and is part of the efforts to stay the panic. The reassuring statements made by John D. Rockefeller and other men of money, it is believed, cannot fail to help what is in some respects the most acute money crisis New York has seen since the Grant-Ward failure in 1884. Governor Hughes' prompt appointof ment of a new superintendent banks in the person of Clark Williams, a prominent banker here, to fill a vacancy created this week, and the steps taken by the Knickerbocker Trust Company to resume business are other satisfactory signs. Confidence Restored in Trust Company of America. In the first half hour of business this morning of the Trust Company of America more money was deposited than was withdrawn. The new deposits to 10:30 o'clock amounted to more than $900,000. At 10:45 o'clock, J. P. Morgan in reply to a question as to the situation said: "It is all right.' James Stillman, president of the National City Bank, the largest bank in the United States, who was with Morgan, concurred in saying that the situation was satisfactory. Secretary Cortelyou at 11 o'c'lock said: I "Thinks look pretty good now. will remain here some time longer, but how long I cannot say. I would have had to be in New York tonight anyway. The rumor that we are short in small bills is unfounded. We have $10,000,000 in bills of small denominations. The suspension of payment of three relatively small banking institutions in the outlaying Harlem districts were without any effect whatever on the general financial situation downtown. The Empire City Savings Bank is a comparatively small organization. The Twelfth Ward Bank is a state institution and the State Bank examiner will have charge of its affairs. The last statement showed it owed depositors $3,000,000." The run on the Dollar Savings Bank in Bronx which began Tuesday continued today. A large percentage of its depositors are foreigners. The stock market opened strong and higher today. Active buying orders were in the market but the opening pace proved too rapid. There was a reaction and activity diminished; the general level of prices fell below last night's. Call money opened at fifty per cent. $10,000,000 Placed on Deposit. The sub-treasury received $10,000. 000 in cash from Washington this morning. After a conference with Sec retary Cortelyou, George W. Perkins, of Morgan and Company, said: "The situation is working itself out satisfactorily. Today is better than yesterday and tomorrow will be bet ter than today. At the office of the state bank ex aminer, no other suspensions are ex pected. One examiner said that the three suburban banks which suspended are perfectly solvent. Immediately after 2 o'clock Union Pacific was selling down to par a decline of 8 1-2. There was no news to account for the decline except the scarcity of money. It was announced at 2:20 o'clock that a pool had been formed which would supply all the money required to close their operations tonight. This was followed by "tolent feverish rallies, Union Pacific

4. October 24, 1907 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, October 24, 1907

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feature. The depositors in the Dollar Savings bank in the Bronx, of which Borough President John Haffen is the head, became uneasy over the general and many under situation money today clamored impression for their that their deposits were in jeopardy. These depositors were chiefly foreigners who had confused the situation yesterday of the run on the Knickerbocker Trust company's Bronx branch with their own institution. Officials of the latter institution explained matters and the run, for which there was absolutely no excuse, ended at once. This flurry over things looked still better as the uninformed element among depositors was regarded as hard to control in times of general excitment. The clearing house report was also favorable today. Apparently the national banks have passed the crisis and those which have required assistance gave evidence today of being able to take care of themselves. Another favorable development today was a sort of tacit understanding between the banks and the members of the stock exchange to aid each other's banks by loaning money at something like normal rates, and the traders by preventing the bottom dropping out of prices on the exchange. Though call money ruled nominally at 70 per cent today, and the fnal/accommodation was se90 cent, of the recured day several at per biggest throughout banks the newed loans at 6 per cent, and millions out at half have been that were might let the squeezed interest from rate desperate borrowers. Then, too, minor influences, making for confidence, were at work. Taken as a whole therefore, the day passed much better than had been expected and the promise for tomorrow is for a quiet and better day all around. Review of Accounts. The conferences at the office of J. P. Morgan and Company made a thorough review of the accounts of the Trust Company of America. The company's securities were brought over in wagon loads. carefully scrutinized and it is understood found so satisfactory that the Trust com-, pany will receive assistance should it be needed tomorrow. At the conference, or rather a series of conferences, were present not only all the presidents of the Trust companies concerned, particularly the Trust Company of America. but many other financiers who are interested in the situation in general. Among them were J. P. Morgan. E. H. Harriman, Thomas F. Ryan, H. C. Frick, Paul Morton. George F. Baker, Hamilton Fish. Assistant United States Treasurer, Judge E. Gary (CONTINUED ON PAGE 2.)

5. October 24, 1907 The News-Democrat Providence, RI
Article from The News-Democrat, October 24, 1907

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a recent statement, the institution owed depositors about $3,000,000. EMPIRE CITY BANK. The Empire City Savings bank, located at 231, West 125th street, posted a notice this morning announcing their suspension for 30 days under the banking laws. The officials of the bank declare that the institution is entirely solvent, but that they decided to avail themselves of the 30-day notice of withdrawal under the state law, because they feared a run owing to the suspension of payment by the Hamilton and Twelfth Ward banks in the same neighborhood. The Empire City Savings bank, according to a recent statement, owed its depositors about $3,300,000. The Empire City Savings bank is one of the city's comparatively minor organizations. Its suspension is without bearing on the general financial situation in New York. The run on the Dollar Savings bank in the Bronx, which began Tuesday, continued today. Nearly 300 depositors were lined up outside the building when daylight came. Many of them, a majority of whom were women, had stood all night in the line. A large percentage of the Dollar bank's depositors are foreigners. The sub-treasury received $10,000,000 in cash from Washington this morning. The shipment consisted of bills of all denominations, largely lower denominations, in order to meet every demand for small bills. This permitted Secretary Cortelyou to deny reports that the supply of small bills was not sufficient to meet current needs. He says the amount received today amply meets present requirements. PERKINS IS PLEASED. After a conference with Secretary Cortelyou this morning. George W. Perkins, of J. P. Morgan & Co., said: "The situation is working itself out satisfactorily. Confidence is being restored. and I can say that the financial institutions of the city are perfectly solvent. Today is better than yesterday, and tomorrow will be better than today." At the office of the state bank examiners it was stated today that up to 10:45 a. m., they had received the report of the suspension of only three suburban banks, and It was believed by the examiners that other than these three minor institutions. no suspensions would be recorded today. One of the examiners said that the Hamilton, Twelfth Ward and Empire City bank are perfectly solvent. Call money opened at 50 per cent. Weakness in the stock market apparently was due to forced liquidation, and represented to a considerable extent the closing out of stocks carried to speculative account on margins. The decline in prices after 11 o'clock became more precipitate, Union Pacific selling down to 1061/2. St. Paul, to 102½. Northern Pacific to 106, Reading to 75½. and Atchison, to 73. OTHER BANKERS TALK. The situation of the Trust Company of America at noon was appreciably better. Oakleigh Thorne said to The Associated Press that they were getting on very well: that a good many depositors were returning their money and withdrawals were by no means so heavy as they had reason to expect from yesterday's experience; that the applicants at the paying teller's window had fallen off, both at the parent bank and at the Colonial, and he had no solicitude as to the future. George R. Sheldon, one of the leading bankers, said at noon: "There is absolutely no cause for alarm. The situation may be regarded as clear, and there is a decided improvement today. The banks and trust companies are perfectly solvent and will meet any demands made upon them." Mr. Sheldon made the above statement at the close of the conference with J. P. Morgan and other bankers. (Continued on Page Two.)

6. October 24, 1907 The Times Dispatch Richmond, VA
Article from The Times Dispatch, October 24, 1907

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Another potent factor in bringh about a bette feeling and the retu of saner sentiment and improved có fidence was the ability of the Tru Company of America to withstand all-day run, as it successfully did. the face of enormous withdrawals t officials of the bank proclaimed the readiness to settle with all deposito on demand. Even for a few minut after the regular hour of closing t. company continued to pay out mon nt its main office In Wall Street a at the Broadway branch, and to ce tify all checks presented. Then it w announced that the institution wou be open as usual at 10:30 o'clock t morrow morning prepared for : eventualities. So marked was ti strength of the bank that many WI withdrew deposits early in the di again deposited them before the doo closed. The total resources of 1.) company as last reported were in e: cess of $70,000,000. Several million were withdrawn to-day, but funds satisfy every claim were said to I at hand. This was the only run of importan to-day, and this fact was an encoura ing feature. The depositors in ti Dollar Savings Bank, in the Bronx, which Borough President John Havfre is the head, became uneasy over ti demoralization. many clainoring I their depositors their the had confused Knickerbocker money, deposits were under the were chiefly run the in Trust jeopardy. of foreigners. impression yesterday Company The wl th o explained Bronx tion. Officials branch matters. of with the and their latter the own institutio run, institu f which there was absolutely no excus ended at once, This flurry over, thing looked still better, as the uninforme element among depositors was regarde as hard to control in times of genera excitement. Clearing House Report Favorable. The clearing house report was als favorable to-day. Apparently the na tional banks have passed the crisis, an those which have required assistano gave evidence to-day of being able 1 take care of themselves. Another favorable development to day was A sort-of tacit understandin among the banks and the members ( the Stock Exchange to aid each other banks by loaning money at somethin like normal rates. and the traders b preventing the bottom dropping out o prices on the exchange. Though call money ruled nominall at TO per cent. throughout the da: several of the biggest banks renewe loans at 6 per cent., and millions wer let out at half the interest rate thu might have been squeezed from des perate borrowers. Then, too, minor in fluences, making for confidence wer at work. Taken as a whole, therefore the day passed much better than ha been expected, and the promise to to-morrow is for a quiet and bette day all round. Fifteen bank examiners were bus here to-day, and their frequent re ports were said to be favorable. Th announcement from Albany to-nigh of the appointment by Governo Hughes of Clarke Williams, of thi city, as State Superintendent of Bank was received with favor, and is view ed as a timely act by the Governo Acting Superintendent Sinner had bee filling in since the resignation of Su perintendent Mott. Hold Midnight Conference. At 12:20 o'clock Mr. J. Pierpont Mo gan and James Stillman, president . the National City Bank, made 3. hu ried call upon Secretary of the Trea ury Cortelyou at the Manhattan Hote Mr. Morgan declined to say anythir regarding his visit to Mr. Cortely discuss the tinancial situation

7. October 24, 1907 The Caucasian Shreveport, LA
Article from The Caucasian, October 24, 1907

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ITALIANS START RUN. Hundreds of Them Gather In Front of Financial Institution. New York, Oct. 24.-Hundreds of Italians, nearing that the bank at One Hundred and Forty-eighth street had suspended payment started a run on the branch of the Dollar Savings bank here, which is locaed next door to the branch of the institution of the Knickerbocker Trust company in the Bronx. The Dollar Savings bank dif. ficulties lasted only until an inter preter could explain to the alarmed depositors that it was the Knicker bocker and not the Dollar bank that was in trouble.

8. October 24, 1907 New-York Tribune New York, NY
Article from New-York Tribune, October 24, 1907

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RUN ON HAFFEN'S BANK. Savings Withdrawn-Stood Next to Knickerbocker's Bronx Branch. A run, caused solely, according to its trustees, by its position next to The Bronx branch of the Knickerbocker Trust Company, began early yesterday morning on the Dollar Savings Bank of New York, at Third avenue and 148th street. It is said a rumor that "the bank at 148th street and Third avenue" had failed spread through the Little Italy section of The Bronx on Tuesday night. and long before banking hours yesterday morning a mob of Italians, Poles, Scandinavians and Germans had gathered in front of the Dollar Savings Bank. To relieve the fears of the small depositors the bank's doors were opened fifteen minutes before the regular time. and the paying off began at once. John Haffen, the president, declared to all inquirers: "The Dollar Savings Bank is perfectly sound and we are prepared to meet all demands. We have ample capital, and entertain no fear at all." President Haffen had ordered all clerks to be on hand at 7 o'clock, evidently to anticipate a run. As

9. October 25, 1907 The Norfolk Weekly News-Journal Norfolk, NE
Article from The Norfolk Weekly News-Journal, October 25, 1907

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BRING ORDER OUT OF CHAOS REASSURANCE TAKES PLACE OF PANICKY FEELING IN GOTHAM. DELIEVED WORST IS NOW OVER Morgan Tackles Job of Averting Dis. aeter-Stocks Make New Low Level Records, but Rally at Close-Trust Company Withstands Run. New York, Oct. 24.-There was a sharp turn of sentiment in financial quarters, renewed contidence in local banking institutions taking the place of the panicky feeling that has de moralized the Stock exchange for the rast few days. The financiers whose deliberate opinions are most highly esteemed by the public expressed the conviction that the worst was over, and that out of the present chaos a condition more stable than has ex isted for some time was rapidly shap ing itself. Many of the banking men who had labored almost day and night recently, that the integrity of New York's financial institutions might be main tained, went home early, satisfied that suspected houses which had been found worthy of support had been fortified against incipient runs or other contingencies. Many Conferences Held. Several factors contributed to this change of feeling. First and foremost was the determination reached by men of great influence in the financial world and whose probity is unquestioned, to restore confidence, insure safety and avoid panic. Conspicuous among there were J. Pierpont Morgan and James Stillmian, president of the National City bank. Throughout the day there were conferences at the offices of J. Pierpont Morgan & Co., and while guarded statements only of what was done at these gatherings were given out during the business hours, the fact that such men were conferring, linked with their known personal standing and financial resources, did much to allay the fear for the future. News of these conferences quickly ran through the financial district; allayed the fears of the extremely nervous and brought a recovery of prices to. ward the close of a day during which new low levels had been reached. Rockefeller Rushes to Rescue. John D. Rockefeller has taken an active interest in the present financial situation and he has arranged to loan very large sums to a number of New York financial institutions. Next in point of influence was the presence at the subtreasury of Secretary of the Treasury Cortelyou, who not only lent the moral influence of a representative of the government, but during the course of the day caused to be deposited with New York banks a large sum, said to be $10,000,000. Mr. Cortelyou received many callers and all who conferred with him subsequently appeared to have been reassured. Another potent factor in bringing about a better feeling and the undoubted return of saner sentiment and improved confidence was the ability of the Trust Company of America to withstand an all day run, as it successfully did. In the face of enormous withdrawals, the officials of the bank proclaimed their readiness to settle with all depositors on demand. Even for a few minutes after the regular hour of closing the company continued to pay out money at its main office in Wall street and the Broadway branchos and to certify all checks presented. Brief Run on Savings Bank. This was the only run of importance and this fact was an encouragement. The depositors in the Dollar Savings bank, in the Bronx, of which borough President John Haffen is the head, became uneasy over the general situation and many clamored for their money. These depositors were chiefly foreigners who had confused the run on the Knickerbocker Trust company's Bronx branch with their own institution. Officials of the latter institution explained matters and the run, for which there was absolutely no excuse, ended at once. This flurry over, things looked still better, as the uninformed element among depositors was regarded as hard to control in times of general excitement. The failure of the Knickerbocker Trust company to reopen did not exercise such an adverse influence on the general situation as might have been expected, and the early action of Act.

10. November 10, 1907 The Washington Herald Washington, DC
Article from The Washington Herald, November 10, 1907

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PROPINQUITY STARTS A RUN. Mistake of Caption Writer Also Gives Harlem Bank Trouble. One of the runs of the period that has just gone into history. that on the Dollar Savings Bank, in The Bronx, had a haphazard start. Its banking house was next to the Bronx branch of the Knickerbocker Trust. When that closed its doors the rum spread that the savings bank was in trouble. Propinquity, in this case, says the New York Tribune, caused the Dollar Bank people no end of trouble for five days, but they weathered the storm nobly. This run, with the aid of a careless caption writer on a morning newspaper, caused a vigorous run on the Harlem Savings Bank, one of the oldest and stanchest institutions above One Hundredth street. The newspaper, in describing a photograph of a run on the Dollar Bank, in The Bronx, said that depositors were raiding a Harlem savings bank. That was enough for the foreign born element among the depositors, and they swooped down for their savings. Foreign-born depositors predominate at both these banks, and the runs became lines of all nations. They were more picturesque than those of the trust company depositors. They jabbered their troubles to the housetops. The women cried or laughed altérnately in a money fear hysteria. One and all besought policemen and reporters to slip them into the bank ahead of the rest. Many of this foreign crowd were so excited that they would accept nothing but gold in return for their much fingered passbooks. Some even went SO far as to test each piece by biting it. The sad part of it is that all who withdrew lost four months' interest, and for no reason in the world, for at no time were the savings banks in danger. The overnight runners who kept a long vigil in front of the Lincoln, the Colonial, and the Trust Company of America several nights had various ways of passing the time. Some brought campstools, and all laid in a supply of provisions. A drenching ran came down on them to add to their woe. But almost simultáneous with the storm there drifted into view of the line a vender of second-hand umbrellas. The bank runnérs bought him out,