South Brooklyn Savings Institution

Bank Information

Episode Type: Run Only
Bank Type: savings bank
Start Date: May 16, 1884
Location: Brooklyn, New York (40.660, -73.951)

Metadata

Model: gpt-5-mini
Short Digest: 201617ff

Response Measures

Accommodated withdrawals

Description

Multiple contemporary newspapers (May 16, 1884) report a run on the South Brooklyn Savings Institution triggered by depositors confusing it with the Atlantic (State) Bank that had suspended. The bank met demands and paid out large sums (reported $125,000) and declared a surplus; there is no report of any suspension or closure of this institution in these articles.

Events (1)

1. May 16, 1884 Run

Cause: Rumor Or Misinformation
Cause Details: Depositors were misled by similarity of names/locations, believing South Brooklyn Savings Institution was the Atlantic (State) Bank that had suspended.
Random Run: Yes
Random Run Snippet: Depositors misled, supposing it was the Atlantic bank which suspended.
Measures: Paid out demands promptly (reported $125,000 paid out); cashier and clergy appealed to depositors; officers announced surplus and ability to pay in full.
Newspaper Excerpt: There was a run on the South Brooklyn Savings bank to-day. The depositors are mostly poor and ignorant people who were misled, as the bank is on Atlantic avenue, into supposing it was the Atlantic bank which suspended yesterday.
Source: newspapers

Newspaper Articles (5)

1. May 16, 1884 The Portland Daily Press Portland, ME

Article from The Portland Daily Press, May 16, 1884

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would be all right, and they would lose nothing. He promised to have a statement for publication ready this afternoon. The panic seems to have extended to the depositors of the other banks in Brooklyn as well, and large quantities of money were drawn from the savings banks. They were prepared for a run, however, and many of them were by no means disturbed by the withdrawal of some of the surplus deposits. They save thousands of dollars in interest which would be due to depositors on June 1st. Among the other banks the Brooklyn Savings Bank, Dime Savings Bank and South Brooklyn Saving Institution paid out large amounts of money to depositors. There was a run this morning on the Irish Emigrant Savings Bank in Chambers street, and about 200 of the depositors withdrew their account. Most of the depositors belong to the laboring classes. President Hagarth said the bank would gain about $10,000 by the withdrawals. At 2 o'clock this afternoon Wm. H. Sweeney, banker of 104 Nassau street, made an assignment without preferences, The amount involved is probably not large. THE LATEST. Late this evening Messrs. Fisk & Hatch handed the following notice to the Associated Press reprecontative: To our depositors and other creditors: It is with great sorrow that we are obliged to announce to you our suspension which has been brought about by a combination of circumstances. The long continued decline in the market prices of securities, even the very best, accompanied by a general weakening of confidence in financial matters, together with heavy drainage of deposits, are the principal causes of our unfortunate position. We can only request those having claims against us to extend to us such consideration and indulgence as we may need [and it may be in their power to grant. Very truly, FISK & HATCH. The statement that the Bank of Commerce was in debt to the Clearing House to the amount of $1,500,000 is an error as the bank was a creditor to the Clearing House of over $2,800,000, all of which was paid in cash with the exception of $100,000 in new loan certificates. At the office of Fisk & Hatch to-night as late as 11 o'clock great activity prevailed and appearances indicated that none in the office would leave to-night. It was said by their representative that nothing satisfactory could be added to their published circular until to-morrow. A Questionable Opinion. A prominent broker said tonight in regard to Fisk & Hatch that the position of the firm is very peculiar owing to the fact that they have only government bonds and cannot borrow money upon them except at most exorbitant rates of interest. For some time past they have been trying to bull governments but failed. Wednesday they borrowed $500,000 on governments and paid 2 per cent. interest a day. This loan even was only allowed to stand one day, and today when other loans were being called in they saw it was useless to continue the struggle and suspended. They will have plenty of company soon; in fact we may have another "black Friday." The Grant & Ward Failure. NEW YORK, May 15.-The Supreme Court to-day granted an order giving the Chicago & Atlantic Railroad Co. leave to prosecute an action against Receiver Julian T. Davies jointly with other parties for the purpose of obtaining relief to which it is entitled relating to notes or other securities heretofore belonging to the Railroad Company, and held, negotiated or otherwise disposed of by the firm of Grant & Ward. The complaint make Grant & Ward, E. St. John Hay & Co., J. W. Seligman & Co., Drexel, Morgan & Co., P. W. Gollaudet & Co., Reid & Smith, the Equitable Life Assurance Society of the United States, the Oriental Bank, Columbia Bank, the New York, Lake Erie & Western Railroad Company. and other corporations and banks defendants. The company alleges that they deposited with Grant & Ward several million dollars' worth of mortgage bonds as collateral for loans to them by Grant & Ward, aggregating $1,500,000. Grant & Ward, they allege, have mixed up these bonds, and putting them in parcels have disposed of them for their own account. The company seeks to recover these bonds and to prevent Grant & Ward's receiver from disposing of such of the bonds as remain unsold for the benefit of the assets of Grant & Ward.

2. May 16, 1884 Morning Journal and Courier New Haven, CT

Article from Morning Journal and Courier, May 16, 1884

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purpose of obtaining such relief as it is entitled to relating to notes and other securities belonging to the company held or disposed of by Grant & Ward. AN OFFICER OF THE METROPOLITAN BANK told a reporter this afternoon that $185,000 was paid out during the day. The deposits amounted to $664,000 and checks for $454,000 were certified. It is estimated that by settling his privileges on the basis of to-day's prices Russell Sage would lose from $800,000 to $1,000,000. FAILURE OF A SMALL BROKER W. H. Sweeney, a small banker at 104 Nassau street, assigned to-day to A. C. Aubrey. The failure is insignificant. A RUN ON THE BROOKLYN BANKS. There was a run on the South Brooklyn Savings bank to-day. The depositors are mostly poor and ignorant people who were misled, as the bank is on Atlantic avenue, into supposing it was the Atlantic bank which suspended yesterday. The demands were promptly met. Father Franceli, of St. Peter's Catholic church, to which most of the depositors belong, went to the bank and addressed the crowd, begging them to go home and not lose six months' interest by drawing out their money. He said he would personally vouch for the soundness of the bank. His remarks, however, were not heed~ ed by the excited crowd Up to the elosing of business $125,000 had been paid out. The cashier says there is a surplus of $700,000 and all applicants will be paid in full. The Brooklyn Savings bank was also run upon and paid out $150,000. The officers count their gain of $6,000 in interest. Nearly all the other savings banks in Brooklyn sustained slight runs. Another Bank Shuts Its Doors. St. LOUIS, May 15.-The Bank of Kansas City closed its doors this morning. It had a capital of $600,000 and was the last to close in the great panic of 1873. President Chick states that the suspension is due to the failure of Donnell, Lawson & Sintpson, their New York correspondents. The bank had a surplus of $106,688.After a meeting of the directors it was announced that the bank would pay twenty per cent. cash and the rest in certified checks. The amount of deposits is figured at $2,000,000. A Bank in Illinois Goes Down. QUINCY, Ill., May 15r-The Union bank of this city failed to open its doors this morning. When the Marine bank of New York failed the Union transferred its accounts to the Metropolitan, and the closing of that bank yesterday is given as the cause of the suspension Comments of the London Press. LONDON, May 15.-The Daily Telegraph this morning regards the financial situation in New York with cheerfulness and says everything will be straightened out in the course of a few weeks. It praises Secretary Folger's action. The Times and the News think it deubtful that the crisis is yet reached in the New York panic. They do not think, however, that the panic will be as disastrous as that of 1873. Ward Tells About His Business Methods. NEW YORK, May 15-The examination of Ferdinand L. Ward was continued before Referee Cole to-day. Mr. Ward admitted that he never had any government contracts, yet had given out that impression to the people he was dealing with. The examination also developed the fact that two ledgers were kept by the firm of Grant & Ward, the entries in the one being at considerable variance with those in the other. The testimony of the bookkeeper of Grant & Ward showed that two weeks before the failure Mr. Spicer deposited with the firm $26,000 in Colorado bonds and that on the day of the failure Mr. Ward declared that the bonds were only deposited for safe keeping and not as security for Spicer's account, and they were withdrawn from the assets of the firm. The examination will be resumed to morrow

3. May 16, 1884 New-York Tribune New York, NY

Article from New-York Tribune, May 16, 1884

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A LITTLE EXCITEMENT IN® BROOKLYN. Some excitement prevailed in the Brooklyn banks where timid depositors drew out their savings, losing interest for three or six months. There was no reason for fear, it was declared. in regard to any of the Brooklyn savings banks, but small crowds of depositors gathered at each. Probably the bank which suffered the most was the South Brooklyn Savings Institution, sometimes called the Atlantic Bank, at Clinton-st. and Atlantic -ave. The similarity of the name to that of the Atlantic State Bank led many persons to confound the two, and a large amount was withdrawn by the depositors. When the bank closed for the day many persons were unpaid. At the Brooklyn Savings Bank from $125,000 to $150,000 was drawn out, a sum largely in excess of what is usually drawn. There were also many deposits made. At the Dime Savings Bank, President Hunter said that about $80,000 was drawn out and $20,000 put in. The amount drawn out was about three times as much as usual. None of the large depositors in any of the dozen Brooklyn saving banks drew out their money. Mayor Low said that the city was never in better shape to meet an emergency. The situation was perfectly easy.

4. May 16, 1884 New-York Tribune New York, NY

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that the women's antrance was closed and locked its and the crowd was left only one door for both hrentrance and departure. When 3 o'clock in rived no additional persons were admitted Then the bank and the heavy doors were closed crowd a shout of disappointment went up from the without, which lingered about the street until dusk. Treasurer David Olyphant, in speaking of the condition of the bank, said to a TRIBUNE reporter: This rush does not alarm us in any way. The people who are demanding their money are small depositors, and Accountant Knolle tells me that the largest amount be has paid out to-day was $300. We have 109,517 depositors and a total fund of $40,601,604, 80 you see there This is bound to be some crush after a scare like this. bank and. think, all the other savings banks are in ex cellent condition, as they have been obliged to keep from investments recently -because there was nothing to invest in. Therefore they have large amounts of cash on hand. Wall Street does not affect us in any way as the National banks were welded together yesterday by the action of the Clearing House Committee, and they are the only depositories of our surplus. Our cash accounts are with the Manhattan Company and the Bank of Com merce, and think there is no person who will say anything against those institutions. The amount we owe our depositors 18 $39,679,063 11. The daily average payment of the bank to its depositors is about 000; today, as nearly as the accountant can judge, it has been about $125,000. BOWERY BANK READY FOR EMERGENCIES. The interior of the Bowery Bank was occupied by depositors who lounged leisurely about the long benches and looked meditatively at the long line of their fellow depositors who were drawing their money. There was no excitement, and when the time for closing came the depositors left the building without disorder. President Edward Wood said: There was a run on us this morning, but, when it was known that we were perfectly willing to pay all depositors who came, it dwindled down to the scene before you. We have been prepared for an excitement of this kind for a considerable time and, consequently, we shall feel no evil effect from it. We shall gain rather than lose, for the depositors by drawing their money forfeit all claim to interest on it. We make an average payment and of $15,000 each day in ordinary times, to-day, as nearly as I can approxmate, we have paid out about $60,000. We are prepared for any emergeney, and if to morrow we should find a great crowd here we shall simply refuse to pay out any money for thirty days, as we have always done in case of panic and as the depositors know that we have right to do, because the rule is printed in every pass book. All of these people here to-day will lose half year's interest. We have assets which can be realized at almost any time amounting to $42,970,2 28: our depositors can claim of that $40.222,969 55 Right underneath your feet. in our vaults, we have $756, 175 11 in eash: SO you can understand we are in a good, solid condition. THE SEAMEN'S ABLE TO STAND A RUN. The great drab-colored building of the Seamen's Bank for Savings loomed up in Wall-st. like a rock. The venerable president, W. H. Macy. received a TRIBUNE reporter, and looked askance at him when he inquired how the bank was affected by the failure. The banking-room was filled with depositors, and a long line of them extended to the paying teller's desk. They conducted themselves quietly, however, and there was only a slight run on the bank. Mr. Macy said The failures have passed by us at such a distance that we haven't even felt the wind of them. We have had a larger demand for money to-day than we have ordinarily; but it has caused (with smile) no uneasiness. We haven't had a demand to-day sufficiently large to require us to draw a check for it. We can go on paying, at this on rate, every day this year, and we could have a run the bank until July 1. and then have surplus of $2,000,000. felt in my bones that this erash was coming, and we prepared for it by keeping the money in our vaults, instead of investing it. At present our assets amount to $27,696,406 59, of which more than -thirds is invested in National. State and City bonds. No, we have no reason to dread a panic, except that our depositors may be foolish enough to draw their money and lose their interest. THE DRY DOCK INSTITUTION SOLID. Things were unusually quiet at the Dry Dock Savings Bank. There had been a run, but it had been unimportant and few persons were in the bank when the reporter called. Secretary William V. Webster said We are all right here and we haven't felt the slightest wave from the flurry down-town. Of course, there have been more persons calling on us to-day to withdraw their money than on ordinary occassions, but not remarkably so. Our payments have all been in small amounts, and the total, should think, was about $40,000. Our daily average 18 about $15,000. At present-we have assets amounting to $12,248,720 85 and a surplus of $1,158,219 29 over the amount we owe our depositors. As we never invest in anything ether than Government securities, we can negotiate them and realize within forty eight hours. No, we are solid here. NOTHING DREADED BY THE UNION DIME. There were not more than twenty persons waiting to draw their deposits when the Union Dime Savings Bank closed for the night. There had been a run earlier in the day, but, as the afternoon wore on, the demand for money stopped. Mr. Chapin, the treasurer, said that his total payments for the day would not amount to more than $30,000. We have nothing to dread, said he, for our depositors know that the bank is reliable and we have a surplus of $443,234 91. OLD "CHAMBERS STREETS" SURPLUS. The East River Savings Institution, or, as it is better known, "the Old Chambers Street Bank," had its entrance blocked with enger depositors in the morning, but the excitement subsided in the afternoon. At 3 p. m. the president attended a a regular meeting of the Finance Committee in banking room whence all depositors had departed apparently satisfied. Secretary Charles A. Whitney informed a reporter that only about $30,000 had been paid out during the banking honrs. As we have a surplus fund of 1,393,252 12," he continned, we think we need have no dread of danger." THE GREENWICH IN GOOD CONDITION. Treasurer Gilbert, of the Greenwich Savings Bank, shook his head energetically when a reporter asked him if his bank had been affected by the trouble down-town. He said: I don't think our bank will be affected when we can show a surplus above all liabilities of $3,215, 167 22. We have assets amounting to over twenty one millions, and we owe our depositors something over eighteenand half millions. There has been a considerable increase in the number of persons who drew money from the bank to-day, as we have paid out about $50,000; but we do not regard that as important. No, sir; the savings banks were never to a better condition than they'are at pr sent. A LITTLE EXCITEMENT IN BROOKLYN. Some excitement prevailed in the Brooklyn banks where timid depositors drew out their savings, losing interest for three or six months. There was no reason for fear, it was declared. in regard to any of the Brooklyn savings banks, but small crowds of depositors gathered at each. Probably the bank which suffered the most was the South Brooklyn Savings Institution, sometimes called the Atlantic Bank, at Clinton-st. and Atlantic -ave. The sumilarity of the name to that of the Atlantic State Bank led many persons to confound the two, and a large amount was withdrawn by the deposi-

5. May 21, 1884 Morris Tribune Morris, MN

Article from Morris Tribune, May 21, 1884

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frequently heard of as a lecturer on religious subjects at the Macaulay Cremorne mission. Fisk has just returned from a tour in Europe. The immediate result of the failure on the stock exchange was a decline of 1 to 5 points. The weakness of the government bond market was explained the a reago an porter by suspension who called of there this two firm, hours although for explanation of the decline was informed there was no rational eause for it. The suspension was not announced untll a few minutes before 3 o'clock, the closing hour of the exchange, but the effect was instantaneous and depressing. On the announcement of the failure a rush of operators was made for the office of the collapsed firm, and anxious inquiries were made by brokers as to how the firm stood. Fisk was seen by a reporter, but refused to say anything. The doors were closed, and the crowd outside increased. The suspension was SO unexpected that the street is again excited. Brokers are rushing around wildly, d the situation again assumes a troubled aspect. The stocks were firm from the afternoon until just before the close of business, when the suspension of Fisk & Hatch was announced. Prices broke ftom 1 to 5, and the market closed weak and panicky, although some shares showed evidences of strong support. The situation is looked upon as extremely critical, and many prophecies are made that to-morrow may see a repetition of the scenes of yesterday. There was a run on the South Brooklyn Savings bank. The depositors are mostly poor and ignorant people, who were misled -as the bank is on Atlantic avenue-into supposing that it was the Atlantic bank which suspended Wednesday. The demands were promptly met. Father Francioti, of St. Peter,s Catholic church, to which most of the depositors belong, went to the bank and addressed the crowd, begging them to go home and not lose six months' interest by drawing out their money. He said he would personally vouch for the soundness of the bank. His remarks, however, were not heeded by the excited crowd. Up to the closing of business $125,000 had been paid out. The cashier says there is a surplus of $700,000, and all appli cants will be paid in full. The Brooklyn Savings bank was also run upon, and paid out about $150,000. The officers count this a gain of $6,000 in interest. Nearly all the other savings banks in Brooklyn sustained slight runs. An officer of the Metropolitan bank told a reporter that $185,000 was paid out during the day. The deposits amounted to $664,000 and checks for $454,000 were certified.