14892. Long Island Savings Bank (Brooklyn, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
savings bank
Start Date
September 23, 1873
Location
Brooklyn, New York (40.660, -73.951)

Metadata

Model
gpt-5-mini
Short Digest
87c1c636

Response Measures

None

Description

In Sept 1873 the Long Island Savings Bank invoked its charter's 30-day withholding clause (a suspension/temporary withholding) during the Panic of 1873 despite no extraordinary withdrawals. By 1877 trustees were pursuing winding-up arrangements and offering depositors 80% in installments, indicating permanent closure/settlement rather than continued operation. No discrete run triggering the suspension is described.

Events (2)

1. September 23, 1873 Suspension
Cause
Macro News
Cause Details
Invoked the charter provision to withhold payments (30-day clause) amid the nationwide financial panic of 1873, though officials reported no extraordinary demand or run.
Newspaper Excerpt
The Long Island Savings Bank ... took advantage of the 30 days clause.
Source
newspapers
2. September 27, 1877 Other
Newspaper Excerpt
Long Island Savings Bank ... depositors ... to accept eighty per cent. winding up ... the trustees' offer to pay in installments ... to close up this branch ... winding up the affairs by the trustees. (Trustees offering 80% in installments to depositors; winding up/closure indicated.) the trustees to pay eighty per cent. ... in 12, 18, and 24 months (excerpt).
Source
newspapers

Newspaper Articles (3)

Article from New-York Tribune, September 23, 1873

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Article Text

THE BROOKLYN BANKS. NO RUNS, AND A GENERAL FEELING OF CONFIDENCE. There were no signs of a run upon any of the Brooklyn banks yesterday. All of them paid out their money as usual, with the exception of the Long Island Savings Bank, which, according to a determination arrived at by the Finance Committee of that institution, took advantage of the 30 days clause. The Nassan Bank was visited, yesterday, and nothing about it indicated that a financial panie had occurred. President Smith stated that in hisopinson the worst was over. He thought that the Brooklyn banks would not be affected as they did a strictly domestic business, and they were not interested in Wall-st. speculation. Bustness was going OIF as usual, and he had no fears. He thought that the panic was entirely useless. Daniel Chauncey, President of the Mechanics' Bank, said that his bank had not been affected by the panie. There had been no crawd or excitement whatever. and he thought there was no reason for any uneasiness. He thought that the impression prevailed in Brooklyn that the action of the United States Treasurer in issuing greenbacks for Government bonds will relieve the pressure and restore confidence throughout the country. The City Bank was visited, and J. J. Studwell, the President, said that be did not anticipate any serious trouble unless people should get unnecessarily excited. He thought in such a case that the savings banks would be the first to feel the pressure. Arrangements, he said, had been made by the savings banks to sell Government bonds in order to meet any ordinary demand that might be made. He stated that no unusual demands had been made on the City Bank, and he did not expect any. The Brooklyn Savings Bank opened its doors at 10 a. m., as usual, and at noon several depositors drew their money, but there was no exeitement and no prospect of a scare. The South Brooklyn Savings Bank paid out a little more money yesterday than usual, but there was nothing approaching a Fun. Those that called were promptly paid. The Long Island Savings Bank alone took advantage of the provision of itscharter, which permits it to withhold funds for 0 days after it has received notice to pay, but there was no extraordinary demand made upon it for payment. The officials stated that they had not the slightest fear of any panic. The following letter in regard to the condition of the Fulton Bank was yesterday received at the Brooklyn branch office of THE TRIBUNE: To the Editor of The Tribune. SIR: Your article in this morning's paper: regarding our bank is doing this bank great injustice. We have not sunk our capital in Georgia bonds, nor 18 Judge Alexander McCue a director, nor are Mr. and Mrs. WilFowler in liam A stockholders this bank. solvent The bank and upon them as a loss. The bank is perfectly holds$35,000 worth of Georgia bonds, but our surplus covarsthem provided they are a loss, though we do not look fully able to pay every dollar it owes and hold its capital unimpaired. We hope you will make proper correction. Respectfully, A. G. JOHNS, President. Fulton Bank of Brooklyn, Sept. 22, 1873. The article in yesterday's TRIBUNE stated that the bank was controlled by Judge McCue, Kingsley, and others. Further investigation made yesterday shows that the fact is as stated. Mr. McCabe, a friend of Judge McCue. is Vice-President, and obtained his position as attorney for the bank through Judge McCue, who lobbied the charter creating the bank through the Legislature. Judge McCue and the other persons named owned stock in the bank, with the exception of Mrs. Wm. A. Fowler, who owned some until a short time ago. when it was sold. That anxiety was stated to exist as to the standing of the institution was stated only as a rumor, while the statement made on Saturday by the bank officials, was duly credited in yesterday's TRIBUNE. There was no run upon the bank yesterday, and the statement of the President was to the effect that the bank was in perfectly sound condition. RESULTS IN JERSEY CITY AND HOBOKEN. THE FIRST NATIONAL BANK OF HOBOKEN SECURE The deposits received yesterday by the First National Bank of Hoboken were $4,000 in excess of the payments. At an early hour in the morning a number of depositors who had remained away on account of the run upon the bank on Saturday appeared and hand in money. By tea a. III., the regular time for opening the institution, upwards of a score of depositors had left considerable sums in care of the institution. When the doors were opened and the business of the day was fairly begun, it soon became evident that there would be no continuation of the run of Saturday. The transactions during the day were numerous, and the drafts and deposits were paid and received with, perthan the usual speed, yet were at time more than ten dealers windows were closed at p. ID., announcement was made any haps, when gratifying one more the in there that the 3 the bank, receipts of not and the were $4,000 in excess of the payments. One the dealers during the day drew out $9,000, with which he paid a debt, and the person who received the money subsequently deposited the same with the bank. A New-York merchant called on H. W. Kimbail, the acting President, yesterday, and tendered to him a loan of $50,000. cash, in case of an emergency. This was, of course, promptly declined for tue present, as the bank has no need of it. United States National Bank Examiner Adams visited the institution yesterday morning, and passed the day in investigating the accounts. At the close of the investigation he expressed himself fully satisfied with the soundness of the institution, and remarked that there was not a stronger little bank in the State. Mr. Adams submitted the following statement of affairs at the beginning of business yesterday : RESOURCES. and 456 46


Article from The New York Herald, September 25, 1873

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Article Text

BROCKLYN BANKS. There was no untoward excitement visible at any of the banks of the City of Churches yesterday. A tour of the leading institutions was made by the writer, which elicited the fact that the anxiety which characterized the action of the panicstricken depositors on Monday and Tuesday has subsided, and a better feeling of security was apparent. At the Brooklyn Bank, corner of Concord and Fulton streets, where the run had been greatest the day previous, there were not more than twenty-five or thirty people in line at one time, and many of these were persons who had withdrawn their money in naste to repent at leisure. This class of people were returning their money to the sale keeping of the bank, having iorieited, however, the interest due lor the past three months. The President of the bank stated that he believed the worst had passed over, and that the accounts from abroad were more favorable. He was sorry to see a "run," such as they had been subjected to, but then the depositors had a periect right to control their own money; and whenever, in their judgment, it was proper to withdraw their money, the banks should let them have it. They had never availed themselves of the thirty days' notification provision, as they always managed to have the cash. By having such securities, as the best government bonds upon which they could always realize. The administration had acted nobly during the crisis; and were it not for the assistance of the government no bank could have withstood the storm. Money was not to be had on checks at any bank in the "two cities." All the banks could do was to certify their checks, which enabled them to go through the Clearing House. Two hundred and fifty thousand dollars of currency was obtained by the Brooklyn Bank yesterday forenoon. When the hour for closing arrived there was nobody to bother the paying teller. At the South Brooklyn Savings Bank the same improvement in the condition of affairs was noticeable. There was no crowd, and nothing for the busy little porter or the special officer to do. The Long Island and Dime Savings Banks also enjoyed a day of perfect rest.


Article from The Sun, September 27, 1877

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Article Text

BANK. BROOKLYN'S BROKEN DEPOSITORS RESOLVING TO ACCEPT THE TRUSTEES' OFFER. Women Enger and Anxious Resolutions to Secure Poor Money Mr. Reilly's their Adopted- An Old Man Wants his Money. Long Island Savings Bank was The yesterday with depositors. principally to thronged who were enger to sign their assent of their the women. agreement to accept eighty per cent. winding or to give their consent to the their deposits. of the bank by the trustees. under in two up to pay all claims in full by proposition The Cashier said that he had found. were years. with the depositors. that they bank. conversing to any out-of-town receiver. The busiaverse to 1873. did n large special deposit for prior receiving deposits payable on demand. In ness. they allowed four per cent. interest. of their which there was a run on this branch 1873 and for a time it threatened to cripple all debusiness. institution. but the trustees paid They the and got through without loss. of the mands. then to close up this branch it. and determined because of the risk attending since business then they have confined themselves to a legitimate savings bank business. trustees say that rival savings banks have by The much to injure the Long Island business. Bank done and untruthful gossip about their the imidle that some depositors have gained deand that their venture into a special with the pression business had something to do The posit insolvent condition of the bank. freestone present about their neck is their they had millstone and they did not think that They could building. in erecting it when they did. depreciation of erred on the disastrous then real estate. A of a bank's being at not calculate building some evidence was recommended Superintendent because it was and the Bank of his substantial. profuse in the declarations buildthat time the was wisdom of erecting not but only one a large belief in bank's commodation. and his and ing for elegant the followed enough out to afford by the a trustees. revenue. perideas were of the 4,000 unfortunate About 400 have out money tied up War in the Veterans Long sons Island who Savings Bank met and in Joralemon the streets. Club rooms, Dr. at D. Court D. Smith was Secretary. elected Chair- The last night. A. D. Limberger day laman. and room included prehants. widows. through borers. in washerwomen, the young attended. and old although None of the bank officials a desire to rethem many depositors Mr. E. P. Day expressed said that it was they necessary would there. for the depositors to decide in their whether plan to wind up unite with the trustees bank. or whether they would down the affairs Attorney-General of the to send a man affairs. trust the take charge of its depositor. from Albany Schenectady. to suggested a the village. From Mr Day. the smaller any Well." said villain. He was opposed to rethe attempt greater to gobble the up the bank by a strange ceiver. suggested Supervisor Williamson. trustees, but suppose haven't Well." much we would confidence not do in any those better with the receiver Beilly offered a series of resolutions of the r.Philip results of the examination thetrustees to pay eighty cash bank's reciting affairs.an the per the cent. offer in of cash. and in in full depositors in 12. installments 18. and 24 months, of twenty-flv and concluding percent. as follows: Revieed That we large the depositors. a suin 1 while bank building believing regard was that 3 edasa the mistake investing judicious on the of part so investment of them the trustees. at the yet. time. asit we was do the not offer for of That we do hereby agree believing to accept that by sodo our settlement Resolved. made avoid by litigation the trustees, and delay. and secure ing we shall best interests Resolved. That, as many of earnestly us are in request need of the our Attorney money. the we do respectfully the Bank but Superinterden commenced to disc intinue against General proceedings and which they have settle our accounts any without delay. account of legalexpenses. legal bank, that we and may without be allowed being compelled to to suffer through greater Restrict loss That. on if it is the our bank urgent must wish be wound that commanding up shall be by as legal procee appointed dines. by our local courts respect the they receiver do. in the highestdegree Mr Ogden the receiver appointed an old citizen in of Re need. commenced That by a depositor being and spacity. Brooklyn, action our of confidence integrity and if the it is our losing wish of the and bank re possesses intrusted tun ceiver. assuch must be he be allowed to continue quest that depositor. who gave name. the number said that of the his book One 41,100, instead smack of his of whitewash about the resolutions had said a an old man close if to I can them. Yea, tremulous with age. I chair. in a voice money by whitewashing is am our in get any more barrel. What we want which for doing it by the was an excited debate. together. in money. There persons kept speaking whitewashing a some half talking dozen about the others peril about of the peril guilty trustees. Atlength and Mr. Reilty's resolutions a committee were adopted delay. almost unanimously, to and meet the trusof ten persons morning was appointed to make The arrangements committee are: to tees this out their proposal. of the meeting: P. J. E. Arnold carry L. Dr. Williamson. D. D. Smith. F. E. Dana. Chairman Thomas Philip Fitzgerald. Reilly, E. A. Henry G. P. Cro- Day. to a Sipperly. nin. Chas. D. Miller. The committee W. are to report and meeting E. S. Knapp. tube called by them.