14833. Brooklyn Savings Bank (Brooklyn, NY)

Bank Information

Episode Type: Run Only
Bank Type: savings bank
Start Date: July 29, 1893
Location: Brooklyn, New York (40.660, -73.951)

Metadata

Model: gpt-5-mini
Short Digest: 4cfac4c0

Response Measures

Accommodated withdrawals, Public signal of financial health

Description

Multiple contemporary articles (Jul 29-31, 1893) report a slight to significant run on the Brooklyn Savings Bank triggered by savings banks' presidents enforcing the 30/60-day notice rule. The bank paid depositors who demanded funds and remained open; no suspension or receivership is reported. I classify the cause as other because the immediate trigger was a policy decision (enforcement of the time/notice clause), not rumor, insolvency, correspondent failure, or government action.

Events (1)

1. July 29, 1893 Run

Cause Details: Depositors alarmed by savings banks' presidents enforcing 30/60-day notice requirement for withdrawals; policy decision prompted crowds and withdrawals.
Measures: Notices posted enforcing 30/60-day rule; bank paid depositors who demanded funds in full; large cash and convertible securities on hand to meet demands.
Newspaper Excerpt: There is a slight run on the Brooklyn Savings Bank. About 100 people are in line. The run is caused by the action of the savings bank presidents yesterday requiring thirty days notice.
Source: newspapers

Newspaper Articles (10)

1. July 29, 1893 Evening Star Washington, DC

Article from Evening Star, July 29, 1893

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IT CAUSED A RUN. Effect of the Decision of the New York Brooklyn Savings Bank Presidents. BROOKLYN, N. Y., July --There is . slight run on the Brooklyn Savings Bank. About 100 people are in line. The run 18 caused by the action of the savings hank presidents yesterday requiring thirty days notice. Cashier Flandreau said the bank was in good condition and all depositors who demand their money today will be paid in full. The Dime Savings Bank and the South Brooklyn Savings Bank both put into open. ation today the thirty and sixty day rule, The General Savings Bank of Kings county announces that they will put the same rule into operation on Monday morning, All of the savings banks of Kings county will probably do the same. Able to Stand Runs. TRENTON, N. J., July 29.-A run come menced this morning on the Trenton Savings Bank and by noon about $30,000 was paid out. The bank is one of the strongest in the state, having 8. clean surplus of $268,000. The money paid out this morning was in new silver dollars just received from the Philadelphia mint. All the Trenton banks are in excellent shape and no suspensions will occur. NEWARK. N. J., July 29.-There is . slight run today on the Howard Savings Institution of this city. A long double line of depositors has been passing in front of the paying teller's window all the morning. The officers of the bank say that they have plenty of money on hand to pay all demands. The Howard is the strongest savings bank in the city.

2. July 29, 1893 The Jersey City News Jersey City, NJ

Article from The Jersey City News, July 29, 1893

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Run on a Brooklyn Bank. BROOKLYN, N. Y., July 29, 1893. - There is a slight run on the Brooklyn Savings Bank. About one hundred people are in line. The run is caused by the action of the Savings Banks Presidents yesterday requiring thirty day's notice. Cashier Fiaudreau said the bank was in good condition and all depositors who demand their money today will be paid in full. The Dime Savings Bank ot Brooklyn and the South Brooklyn Savings Bank both put into operation today the thirty and sixty day rule, The Germania Saylugs Bank of King's County announce that they will put the same rule into operation ou Mondav morning. All of the Savings Banks of King's County will probably do tbe same. Run in Trenton. Special to The Jerseu City News. TRENTON, July 29, 1893.-A run commenced this morning on the Treuton Savings Bank, and by noon about $30,000 was cald out. The bauk is one of the strongest in the State, having k clexu surplus of $268,000. The money paid out this morning was in new silver

3. July 30, 1893 New-York Tribune New York, NY

Article from New-York Tribune, July 30, 1893

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MONEY WITHDRAWN IN BROOKLYN. SOME BANKS AVAIL THEMSELVES OF THE RULE. OTHERS DO NOT. The news that some savings banks would take advantage of the law permitting them to exact sixty days' notice from depositors who wished to withdraw money alarmed many depositors in Brooklyn yesterday, and there were considerable sums drawn from some of the savings banks before they took advantage of the rule. Others announced to depositors who sought to get money that the rule would be enforced, and so prevented any possibility of a run. There was a considerable crowd of persons at the Brooklyn Savings Bank, at Fulton and Concord sts., and many of them drew money. Felix E. Flandreau, the cashier, said that the bank had not announced its intention of taking advantage of the sixty-day rule, and he did not believe it would be done. President Morgan started for Massachusetts on Filday for his vacation, and Mr. Flandreau did not think that the flurry over the subject would bring him back. There was no alarm at the bank, although the drafts had exceeded the deposits for some time, for the bank is one of the soundest in the world. There was $1,500,000 in cash in the bank and neighboring trust companies, and a large amount of securities readily convertible into cash. Mr. Flandreau added, While we do not feel the slightest alarm. we are of the opinion that the action of the New-York and some of the Brooklyn banks in enforcing the rule is a mistake, as it may be taken by ignorant people as a confession of weakness. I think the result will show that It would have been wiser not to do so. Considerable money has been withdrawn by savings bank depositors to invest in stocks and bonds, which the investors regard as bargains." The second largest savings bank in the vicinity of the City Hall in Brooklyn is the Dime, at Court and Remsen sts. A meeting of the Finance Committee was held yesterday morning. and It was decided to require the sixty days' notice for the withdrawal of all sums over $100. President 5. G. Hutchinson said: "This is a precautionary measure latended to subserve the interests of our depositors as well as ourselves. It Is certainly much wiser to harbor our resources of ready cash while we have it on hand. than to pay It out and be compelled to throw securities on the market when everything is depressed." Ex-Mayor John W. Hunter is treasurer of the Dime Savings Bank, and he said: This bank was represented at the meeting in New-York, and we have decided to take advantage of the rule in regard to sums over $100. No one need be alarmed at this, and there is no danger. I understand all the banks will do the same. But we will not net arbitrarily. and if a depositor needs his money he will be able to get it. We want to protect our depositors and the bank. It is as sound as ever." There was a slight run at the South Brooklyn Savings Institution. at Atlantic-ave. and Clinton-st., and the sum of $10,000 was paid out In a few minutes in the morning. It was then decided to take advantage of the rule requiring depositors to give notice, and the run was stopped. The Germunia Savings Bank. in Fulton-st. opposite the City Hall, received no notice of the conference in New-York, and did not decide to require notice from depositors in advance of withdrawals. Vice-President Augustus Kurth said that there was no cause for alarm. and that the press should take steps to allay any suspicion due to the action of the New-York banks. The East Brooklyn Savings Bank. at Myrtle and Franklin aves., decided to give notice that the sixty days' clause would be enforced 10-mocrow. The largest savings bank in Brooklyn is the WIT tamsburgh Bank, at Broadway and Driggs-ave. There was a small run at this bank yesterday morning. due to alarm among the ignorant residents of the Eastern District, but all depositors who wished to draw money were paid from great piles of gold on the cashier's desk. General Meserole, president of the bank, said that the business of the bank was going on as usual. and that the bank was prepared to pay all demands. He declined to say whether the sixty days' rule would be enforced or not. No notice of it was given yesterday. At the Kings County Savings Bank in Broadway all persons who sought to withdraw their deposits were paid. The following figures are from the reports of all the savings banks in Brooklyn for last year:

4. July 31, 1893 The Portland Daily Press Portland, ME

Article from The Portland Daily Press, July 31, 1893

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DOLLARS AND CENTS. More Western Banks Have Closed Their Doors, AND MORE MILL WHEELS HAVE CEASED TO TURN. But It Is Believed That Bottom Has Been Touched-The Watch Makers Will Have a Rest-Nashua Shoe Shops Close -Signs of Returning Confidence in Business Circles. NASHUA, N. H., July 29.-The Williams belt factory shut down this morning. Work will be resumed Monday but with only one-third of the help. The cause is lack of orders. Moulton's shoe shop shutdown this morning on account of inability to make collections. In the two factories 400 hands are thrown out of work. HAMILTON, Ont., July 29.-The McNeil and Urban Safe and Lock Company, one of the largest concerns of its kind in the country, made an assignment yesterdao. Liabilities, $400,000; assets fully double that amount. CoVINGTON,Ky.,July 29.-The Farmers and Merchants' bank of this city closed yesterday, by reason of the present financial stringency, and inability to realize on its securities. Ex-United States Treasurer Nebeker is the president. LOUISVILLE, Ky., July 29.-The Pineville Banking Company at Pineville closed its doors Friday. It was considered the best bank in southeastern Kentucky. GRAND RAPIDS, Mich., July 29.-C. W. Chapin & Co.' private bank at Stanton, Montcalm county has suepended owing to the rush of depositors for their cash. Leather Company Assigns. MILWAUKEE, Wis., July 29.-The R. Suhm Leather Company, operating the Kinnicinnie tannery, assigned Friday to John J. Suhm, who gave bonds for $80,000. Run on a Brooklyn Bank. BROOKLYN, N. Y., July 29.-There is a slight run on the Brooklyn Savings Bank. About 100 peaple are in line. The run is caused by the action of the savings banks' presidents, Friday, requiring 30 days notice. The cashier says the bank is in good condition and all the depositors who demand their money will be paid in full. Discouraging Outlook for Watch Making WALTHAM, Mass., July 29.-Late intelligence regarding the situation in the watch making centres of the United States is far from the encouraging. All the American Waltham Watch Company's foremen have been instructed as to reducing their working forces. In some cases there will be a down of per cent. and in all 1500 be 50 thrown hands cut will out of work indefinitely. Of the hands who are retained a large number will have to look for reduced pay, 15 per cent. being cut off in some cases it is said. Letters received today from the Elgin factory report the situation even worse than in Waltham. Sixteen hundred watchmakers will be discharged there on August 1st and the pay roll of $120,000 a week will be reduced about one-half. There are 500,000 movements in stock there valued at half a million dollars. The concern is all right financially, having a surplus on hand of a million dollars of undivided profits. More Mills Shut Down. PITTSFIELD. Mass., July 29.-Hinsdale Bros. woolen manufacturers atHinsdale. will shut down tonight two of their three mills, throwing 150 hands out of employment. The largest order ever received by this firm was recently cancelled and the outlook is too discouraging to conat The third mill will tinue business five present. run days each week for the present, employing 100 hands. Mr. Hinsdale said this afternoon that he could not market the goods and was compelled to shut down. D.M. Collins & Co., who run a large knitting mill in this city, find business so slack that they will probably shut down their whole plant soon. New Jersey Savings Banks. NEWARK, N. J., July 29.-There was a slight run on the Howards' Savings Institution today. The officers says they have plenty of money to pay all demands TRENTON, N.J., July 29.-A run commenced this morning on the Trenton Savings Bank, and by noon about $30,000 was paid out. The bank has a surplus of $268,000. Steel Works Shut Down. BRADDOCK, Pa., July 29.-It is reported here that the Edgar Thomson steel works are to close indefinitely in all departments either during next week or the week following. Two of the furnaces were blown out Thursday, and another yesterday. This fact lends color to the report that the mill will suspend operations. The officials will neither confirm nor deny the rumors. Six furnaces are in blast, but 450 men have been laid off. Providence Mills Close. PROVIDENCE, July 29.-The Redman Manufacturing Company of Lafayette, engaged in the manufacture of Kentucky jeans, has decided to close all of mills part of during is reported August that and September. owners its It other mill in the town will soon follow suit. Western Publishing House Failed. PORTLAND, Ore., July 29.-Lewis & Dryden, the largest publishing house in

5. July 31, 1893 The Portland Daily Press Portland, ME

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BROOKLYN, N. Y., July 29.-There is a slight run on the Brooklyn Savings Bank. About 100 people are in line. The run is caused by the action of the savings banks' presidents, Friday, requiring 30 days' notice. The cashier says the bank is in good condition and all the depositors who demand their money will be paid in full.

6. July 31, 1893 Deseret Evening News Salt Lake City, UT

Article from Deseret Evening News, July 31, 1893

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the banks claimed the privilege of using the time clause, sil, in comparatively few instances, was it applied. There uid not seem to be any run anywhere. In Brooklyn the effect was somewhat different and the notice caused several "runs" The greatest was on the Brooklyn Savings bank. When the doors opened this morning no enermous crowd was as waiting to draw money. Thrests we re made, but AB these were of no avail, the crowd went away in an ugly mood. There were also slight runs on South Brooklyn Havings institution and the Dime Savings bank.

7. August 1, 1893 Morning Journal and Courier New Haven, CT

Article from Morning Journal and Courier, August 1, 1893

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ACTION OF BANKS. Some Post the Sixty Days' Notice and Others Fail to Open Their Doors. FALL RIVER, Mase., July 31 morning the four savings banks of the city took advantage of their by-laws to prevent any further withdrawale of deposits. Hereafter until further notice is given deposit ors will not be allowed to withdraw large sums except after having given 30 or 60 days' notice. In some banks the amount is $50 and in others the amount is $100. This action was necessitated as a result of heavy withdrawals during the past two weeks, but more particularly during the past few days. It is said that last week the withdrawals were $100,000 in xcess of the deposits. BROOKLYN, N. Y., July 31.-The sixty days notice order of the Brooklyn banks, compelling depositors to give notice before they could withdraw their deposits, caused several runs on the savings banks to-day. The greatest run was on the Brooklyn Savings bank. When the doors of the bank opened at 10 o'clock this morning an enormous crowd was waiting to draw its money. When they entered the bank they found notices posted on the walls compelling depositors to give eixty days' notice before they could draw their money. Great indignation was caused by these notices. Threats were made, but as these were of no avail the crowd went away in an ugly mood. Slight runs were also made on the South Brooklyn Savings institution and on the Dime Savings bank. UPPER SANDUSKY, O., July 31.-The Wyandotte County bank went into the hands of 8 receiver this morning. The bank officials claim the assets are sufficient to pay depositors three times over. CEDAR RAPIDS, Ia., July 31.-A. Daniels & Co., private bankers at Marion, made an assignment to C. H. Kuriz. The property is valued at $200,000 for the: benefit of all their creditors. PORTLAND, Ore., July 31.-The First National bank of East Portland failed to open its doors this morning. The officers of the bank say the suspension is temporary. A statement published July 12 shows resources of $300,000 and deposits of $150,000. THE DALLES, July 31.-The First National bank closed its doors this morning. The suspension is due to the closing of the Commercial National bank of Portland. PENDLETON, Ore., July 31.-The Pendleton Savings bank has temporarily suspended, Assets, $250,000; liabilities, $135,000. WORCESTER, Mass., July 31.-The Worcester savings banks give notice to-night that beginning to-morrow they will, in common with the majority of the savings banks throughout the state, enforce the provisions of their by-laws which requires notice of withdrawal of amounts exceeding $50.

8. August 1, 1893 The Helena Independent Helena, MT

Article from The Helena Independent, August 1, 1893

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TO PREVENT HOARDING. New York Savings Banks Require the Time Limit. NEW YORK, July 31.-This morning the savings banks of the eit% as a rule, began to take advantage of the sixty-day time classe, where largo amounts are concerned. to check the withdrawal of money for boarding or in senseless fright. but while nearly all the banks claimed the privilege of the time olanse, still in comparatively few instances was is applied. There did not seem to be any run anywhere. In Brooklyn the effect was somewhat different and the notice caused several rans. The greatest was on the Brooklyn Savings bank. When the doors opened this morning an enormous orowd were waiting to draw money. Threats were made. but as these were of no avail the crowd went away in an ugly mood. There were slight rune also on the South Brooklyn Savings institution and the Dime Savings bank. KANSAS CITY, July 31.-The Missouri National bank resumed business this morning, having fully recovered from the effects of the senseless panic which caused its suspension two weeks ago. CEDAR RAPIDS, Iows, July 81.-A. Daniels & Co., private bankers at Marion, have made an assignment. It is believed all will be paid in full and the bank be open in a few days. PORTLAND, Ore., July 81.-The First National bank of East Portland failed. Officers say the suspension is temporary. Resources, July 12, $325,000, deposits $160,000. AKRON, O., July 31.-The Akron Savings bank went into the hands of a receiver this morning. Capital $200,000, reserve $50,000, surplus $18,000. Will pay in full. THE DALLES, Ore., July 31.-The First National bank failed this morning, due to closing of the Commercial National bank of Portland. HORNELLSVILLE, N. Y., July 81.-N. M. Craneland, a private banker, failed this morning. Assets ar said to exceed liabilities. SPRINGFIELD, Mo., July 31.-The Springfield Savings bank failed this morning. Deposits $100,00. capital $25,000; will pay in full. PENDLETON, Ore.. July 31.-The Pendleton Savinge bank has temporarily suspended. Assets $250.000, liabilities $135,000. ASHLAND. Wis., July 1.-The First National bank failed this morning, owing to the steady drain on deposits.

9. August 1, 1893 The Herald Los Angeles, CA

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PANIC - STRICKEN DEPOSITORS. The Bank Run Craze Getting Near Wall Street. New York Savings Banks Enforcing the Sixty-Day Rule. Runs on Savings Institutions in Brook. lyn-Heavy Issues of Clearing House Vertificates-General Financial Depression. By the Associated Press. NEW YORK, July 31.-The withdrawal of deposits today at many of the city savings banks was quite heavy and the presidents pointed to the lines waiting at the windows as a proof of the wisdom of the action in enforcing the 60-day clause, advised on Monday, because while it brought the depositors there, the notice prevented excited runs which would have followed unconcerted action. This morning the saving banks of this city, as a rule, began to take advantage of the 60-day time clause, where large amounts are concerned, or to check the withdrawal of money for hoarding or in senseless fright, but while nearly all the banks claimed the privilege of using the time clause, still in comparatively few instances was it applied. There did not seem to be any run anwhere. BANK RUNS IN BROOKLYN. In Brooklyn the effect was somewhat different and the notice caused several runs. It was greatest on the Brooklyn Savings bank. When the doors opened this morning an enormous crowd was waiting to draw money. Threats were made, but as these did not avail, the crowd went away in an ugly mood. Slight rune were also madeon the South Brooklyn Savings institution and its Dime Savings bank. CLEARING HOUSE CERTIFICATES. The issue of clearing house loan certificates has been heavy the last few days, most of them being taken out, it is thought for use in facilitating gold imports. The total outstanding issue of certificates has now reached $27,975,000, the largest amount ever put in circulation, beating the records of 1873 and 1890. The loan committee of the clearing house this morning issued $255,000 additional loan certificates, bringing the amount outstanding up to $28,000,000. It is understood the certificates taken out today will be used to provide for further importation of gold. The subtreasury is $602,365 creditor at the clearing house. SILVER AND GOLD MOVEMENTS. There was a big demand at the subtreasury today for transfers of silver dollars to western points, principally Chicago. Up to noon $15,000 had been applied for. Advices from Chicago say the First National bank of that city has ordered half a million gold in London and two other banks emaller amounts. but an subsequently Sterling exchange weakened, opened owing steady, to increase in the supply of bills of all kinds. Posted rates were $4.81@4.831/2. Bankers are still figuring on gold imports. They generally agree that the receipts will be larger within the next 30 days or so.

10. August 1, 1893 The Daily Morning Astorian Astoria, OR

Article from The Daily Morning Astorian, August 1, 1893

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SAVINGS BANK IN NEW YORK. New York, July 31.-This morning the savings bank of this city as a rule began to take advantage of the 60 àsy time clause. There did not seem to be any run anywhere. In Brooklyn the effect was somewhat different, and the notice caused several "uns. The greatest was on the Brooklyn Savings bank. A slight run was also made on the South Brooklyn Savings institution, and the Dime Savings bank.