Williamsburg Savings Bank

Bank Information

Episode Type: Run Only
Bank Type: savings bank
Start Date: October 15, 1857
Location: Brooklyn, New York (40.660, -73.951)

Metadata

Model: gpt-5-mini
Short Digest: 4a1cae22

Response Measures

Partial suspension

Other: Directors invoked by‑law requiring one month's notice for drafts over $50; paid out current bills to those who preferred them.

Description

1857 October newspapers describe an ongoing run on the Williamsburg Savings Bank with heavy withdrawals over a two-week span. Directors imposed a one-month notice for drafts over $50 and paid out specie / current bills; the bank remained open and did not suspend in these reports.

Events (1)

1. October 15, 1857 Run

Cause: Macro News
Cause Details: Run occurred in context of the wider 1857 financial panic and suspensions of specie payments by New York banks (reports link runs to suspension of specie payments elsewhere).
Measures: Directors resolved to require one month's notice for drafts over $50; paid depositors in current bills when preferred; kept specie in vaults and continued payments.
Newspaper Excerpt: There has been an almost constant run upon this bank for two weeks past, and on Tuesday they paid out more specie than on any previous day, but notwithstanding this, they opened the doors yesterday afternoon with a larger amount of specie in the vaults than on any previous day.
Source: newspapers

Newspaper Articles (3)

1. October 5, 1857 The New York Herald New York, NY

Article from The New York Herald, October 5, 1857

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Article Text

Williamsburg City News, BOID ROBBERT.- Late on Saturday night, as the propriefor of the gro very store corner of Second and South Third streets was making up bis cash account, a man and woman entered, and while the man was goiling a drick the woman picked up a rell of bills amounting to $100. The beft was not discovered until the parties had len and made good their escape. ARREPT OF A HORRI THERE-Yesterday morning about 4 o'clock Officer Griffith arrested a man at Peak slip forr; on suspicion of having in his powession a Molen horse, wagon and barness The prisoner was handed over to anoth. or officer, while Officer Griffth weet in pursuit of two oth or suspected parties. The prisoner was conveyed to the Fourteenth ward station house, and was let go, as no charge was preferred against him The property was retained, and yearerday forenoon George Phiper, corner of Fitshing avenue and Delmonico place, appeared and claimed the wagon. RUN UPON A RAVINGS BANK -There has been a run upon the Williamsburg Savings Bank, localed infoor street, since Thursday last. Some $40,000 have been withdra vn, but many of the depositors have again returned their mo ney to the bank. ASSEMBLY NOMINATIONS -The democracy of the Seventh Assembly district, comprising the Seventh, Fifteenlh, Six. teenth and Nineteenth wards, have put in nomination for Assembly Supervisor Bleecker. BURGLARIES -The dwelling of Mr. Winham, 179 South Second street, was entered early on Saturday morning and robted of a gold watch, $30 in money, and a quantity of clothing and silver ware. The house of John Hott, 113 South Fourth street, was also robbed of a gold watch and some money

2. October 15, 1857 The New York Herald New York, NY

Article from The New York Herald, October 15, 1857

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Article Text

BOWERY SAVINGS BANK. The run upon this bank was resumed yesterday morn eg, but towards afternoon the crowd considerably thinged off. A large force of police were in attendance to keep order, but their services were but little needed, as the people were both orderly and in good homor. The bank paid out ten per cent on all deposits, without asking for the usual notice, according to the following by lev:No person shall have the right to demand any part of bis principal or interest without producing the original book. that such payments may be entered therein, or at any other times than on the third Monday in each and every month, upon previous notice of one week to the secretary; and no less sum than live dollars of the capital of any depositor shall be withdrawn, unless the whole sum deposited be less than that amount. This gave great an 1 general satisfaction, and it is pre sumed the end of the run on this excellent and thoroughly sound institution end. Qatte a number of persons who had withdrawn previously, re deposited their respec live sums yealerday, and several new accounts were opened. This bank paid osi yesterday $10,000 up to balf past three o'cleck. One of the officers told our re porter they had $400,000 as yet unlouched in the Assay office. INCIDENTS, ETC. The deposits in a number of the banks are increasing, and the excitement in many quarters dying out. Some of those who have been drawing money in apaste al the savings banks sold the same at a premium, and de posited what was drawn In the very city bills bought The savings banks will put an end to this by paying out city bills to their depositors. We heard of several robberies committed, besides the loss by depositors through carelessness. One young woman who drew $75 thought she placed the money la her pocket, but instead it fell on the sidewalk, and some of the golden treasure found its way into more secure quarters. She only reco vered $55 of the amount. Another woman very fooliahly placed her deposit in a basket she carried, and before she went Twenty paces it was stolen. BROOKLYN SAVINGS BANK. The following notice was posted on the trees in the vial. nity of this bank, on Fulton and Concord streets, yester. day. The crowd was not large at any time during the day, and but very little excitement prevailed:Notice to Depositors in the Brooklyn Savings Bank. In consequence of the suspension of specie payments by the banks, the Trustees of the Brooklyn Savings Bank have concluded that their duty to their depositors demands that they should, for the present, discontinue receiving or paying deposits. In this emergency they cannot convert their securities into money without sacrificing the property held in trust by them for you. They assure the depositors that their money is invested in bonds and mortgages, se eured by real estate worth double the amount of the los 10, and State stocks, county and city bonds of undoubted se curity, bearing interest. As BOOS as circumstances will permit the regular business of the institution will be resumed, of which due notice will be given By order of the Board of Trusters. HOSEA WEBSTER, President. BROOKLYN, Oct. 14, 1857. It is stated that this bank has paid out, since the run be gan, about $300,000. An officer of the bank declared yes terday morning that there was now more specie in the vanits than there has been on any day since the commence ment of the pasic, but it was useless to pay it out to people who didn't want 14, to the detriment of others. The crowd about the bank did not appear excited, and readily re celved the statements of the safety of their de posite. SOUTH BROOKLYN SAVINGS BANK. This bank closed its doors yesterday morning. The fol lowing announcement is posted on the door:SOUTH BROOKLTN A INSTITUTION.) Oct. 1857. In consequence of the suspension of specie payments of the banks of the cities of New York and Brooklyn. the trustees of the South Brooklyn Savings Institution feel bound in duty to the depositors, for the present to discontinue the receiving and paying of deposite in this emergency they cannot con vert their securities into money without a sacrifice which they do not feel as liberty to make. because these securities consist of bonds and mortgages on real estate in this city, worth double the amount loaned, and of New York and Brooklyn city bonds, and Kings county bends, bearing interest No security is more acques tionable, and thus far not do lar has been sacrificed. As soon as circumstances permit the regular business of the bank will he resumed. By order of the truetees, C. DUNNING, Secretary. IRA SMITH, President The Brooklyn Savings Bank expects to beable to resume operations in a few days. THE WILLIAMSBURG SAVINGS BANK. There has bean an almost constant run upon this bank for two weeks past, and on Tuesday they paid out more specie than on any previous day, but notwithstanding this, they opened the doors yesterday afternoon with a larger amount of specie in the vaults than on any previous day. At a meeting of the directors on Tuesday night, the following resolution was passed:Resolved, That it is expedient and for the best interests of the depositors in this bank, to avail ourselves of the right secured to as by the by laws of this Institution, to re-

3. October 15, 1857 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, October 15, 1857

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Article Text

BROOKLYN SAVINGS BANKS. BROOKLYN SAVINGS BANK. The Brooklyn Savings Bank at Fulton and Concord streets is closed. The following notice is posted in front: In consequence of the suspension of Specie Payments by the Banks, the Trustees of the Brooklyn Savings Bank have concluded that their duty to their depositors demands that they should, for the present, discontinue receivingor paying deposits. In this emergency they cannot convert their securities into money without sacrificing the property held in trust by them for you. They assure the depositors that their money is in vested in Bonds and Mortgages, secured by Real Estate, worth double the amount of the Loans, and State Stocks, County and City Bonds of undoubted security, bearing interest. As soon as circumstances will perm the regular business of the institution will be resumed, of which due notice will be given." The surplus in this bank on the 1st of July amounted to $209,544.28 The President stated that at the present time the surplus is about the same, as it does not vary $10,000, either more or less, at any time. This bank is waiting to see what the other institutions will do. It will be open to-day for the purpose of giving information to such depositors as may visit the institution. CENTRAL BANK SAVINGS DEPARTMENT. This Central Savings fund has gone down with the Central Bank, of which it was an important limb. FARMERS' AND CITIZENS' BANK SAVINGS DEPARTMENT. The same as the Central. SOUTH BROOKLYN SAVINGS INSTITUTION. Tne South Brooklyn Savings Institution, at Atlantic and Clinton streets, is closed for the present. The following notice is posted on the door: In consequence of the suspension of specie psyments of the banks of the City of New York and Brooklyn, the Trustees of the South Brooklyn Savings Institution feel bound, in duty to the der ositors, for the present to discontinue the receiving and paying of depositors. In this emergency they cannot convert their securities into money without a sacrifice which they do not feel at libery to make, because their secutities consist of bonds and If ortgages on real estate in this city worth double the amount loaned, and of New York and Brooklyn City bonds, and Kings County bonds, bearing interest. No security is more un questionable, and therefore not a dollar has been sacrificed. As soon as circumstances permit, the regular business of the bank will be resumed. This institution publishes the following statement of its affairs: STATEMENT OF THE SOUTH BROOKLYN SAVINGS INSTITUTION, October 1, 1857. Bonds and mortgages on property in the City of Brooklyn, with double the amount loaned there$192,765.00 on, and interest accrued on the same Stocks of the Cities of New-York and Brooklyn and 131,600.00 Kings County, and interest 40,850.00 Loans on Stocks 23,000.00 Real estate 18,927 49 Cash on hand 407,142 Total $397,752.04 Liabilities THE WILLIAMSBURGH SAVINGS BANK. There has been an "almost constant run upon this Bank for two weeks past, and on Tuesday they paid out more specie than on any previous day, but notwithstanding this they opened the doors yesterday afternoon with a larger amount of specie in the vaults than on any previous day. At the meeting of the Directors on Tuesday night, the following resolution was passed: Resoived, That it is expedient and for the best interests of the depositors in this Bana to avail ourselves of the right secured to us by the by-laws of this Institution, to require one month's notice before payment on all drafts amounting to over fifty dollars. Before adjourning, the Directors learned of the action of the officers of the New-York Banks to suspend specie payment, and accordingly decided to pay depositors current bills, should they prefer them to waiting 30 days. At 3 o'clock, the hour of opening, there were about fifty persons in waiting, and up to 7 o'clock there was no press. A majority of the depositors received bills, while a few gave the required month's notice. THE WILLIAMSBURGH CITY BANK. The excitement in the vicinity of this bank, caused by the suspension of specie payments of the NewYork City banks, was almost entirely allayed. For a hile in the morning the business was interrupted in consequerce of the bills having been exhausted the evening previous. Mr. Field, the cashier, visited some twenty banks in New York, and, with one exception, was unable to procure any bills on the best security, the banks being all in the same condition. After the returns of the Clearing-House had been made business went on as usual. The amount of deposits was about equal to that withdrawn. Shortly after closing & large amount of bills was received for the operations of to day. Mr. Field states that this bank has never been on a firmer basis than at present, and there would not have been a suspension of specie payment but for the action of the New-York banks, as they have a plenty of specie in their vaults. The circulation of this bank, it is stated, amounts to $140,000. They are receiving on posit all the bills of New-York and Brooklyn Backs, except the East River, Bowery, Grocers, and Marine, and the Central of Brooklyn.