15207. Long Island City Savings Bank (Long Island City, NY)

Bank Information

Episode Type: Run Only
Bank Type: savings bank
Start Date: April 12, 1890
Location: Long Island City, New York (40.745, -73.949)

Metadata

Model: gpt-5-mini
Short Digest: 2b15d86c

Response Measures

Accommodated withdrawals

Description

Multiple contemporaneous articles (April 11–14, 1890) describe a run triggered by resignations and rumors among bank officials. The bank paid out large sums ($330,000 reported), made preparations (had $50,000 cash ready), declined outside assistance, and continued operations; there is no evidence it suspended or closed.

Events (1)

1. April 12, 1890 Run

Cause: Rumor Or Misinformation
Cause Details: Resignations of Vice-President Appleton and trustee Livingston and quarrel among officials led to exaggerated reports and loss of confidence; refusal to allow examination of books fueled rumors.
Measures: Bank prepared $50,000 cash to meet withdrawals; cashier paid all comers; posted notice to remain open and extended hours; declined offers of assistance from other banks and merchants.
Newspaper Excerpt: There was still quite a flurry of excitement ... the rumor started yesterday that the Long Island City Savings Bank was in trouble, and many depositors called at the bank this morning. ... the spread of the rumor had caused a considerable run on the bank.
Source: newspapers

Newspaper Articles (10)

1. April 12, 1890 The Evening World New York, NY

Article from The Evening World, April 12, 1890

Click image to open full size in new tab

Article Text

BANK DEPOSITORS SCARED. Quarrelling Officials Cause a Run on a Long Island City Bank. There was still quite a flurry of excitement over in Mayor Gleason's borough today over the rumor started yesterday that the Long Island City Savings Bank was in trouble, and many depositors called at the bank this morning. They were all informed that the bank was perfectly solvent. and all claims were met promptly on demand, notwithstanding that the spread of the rumor had caused a considerable run on the bank. The tronblesome rumor arose from the resignation of First Vice-President John H. Appleton, one of the bank's tounders. and Jonn H. Livingston. one of the Examining Committee. whose retirement grows out of a disagreement between the bank others. Cashier Smedley's last a nual report was made up by reckoning the surplus at the estimated value of the bank's securities, charging up the difference between 11 and the par value as protit. This showed the surplus to be $40,000 and the net profit about $9,000, whereas the actual surplus was only $18, 801.71, and the net protits not over $2,000. Messrs. Apuleton and Livingston desired an examination of the bank's anairs, and when a resolution to that effect was defeated at & me eting of the trustees on Tuesday night, they at once resigne.i. No one imagines that any gross wrong has been committed. The bank was incorporated in 1876 and has miways been in good standing,

2. April 12, 1890 Waterbury Evening Democrat Waterbury, CT

Article from Waterbury Evening Democrat, April 12, 1890

Click image to open full size in new tab

Article Text

Bank Depositors Up All Night. NEW YORK, April 12.-There is a run on the Long Island City Savings Bank to-day, owing to the quarrel that is in progress among its officials. A number of servant girls and other small depositors were standing in front of the building all of last night in order to be first at the teller's counter this morning. The trouble is caused by the refusal of Cashier and Secretary Smedley to allow his books to be examined; a course in which he was upheld by a tie vote in the board of trustees. VicePresident Appleton and Director Livingston have resigned on this account. They claim that something is wrong.

3. April 12, 1890 New-York Tribune New York, NY

Article from New-York Tribune, April 12, 1890

Click image to open full size in new tab

Article Text

RESIGNATIONS CAUSE 4 RUN ON A BANK. Z TROUBLE IN A LONG ISLAND CITY SAVINGS INSTITUTION-IT IS SOLVENT. When it became known yesterday that John Apples ton, the first vice-president, and John H. Livingston, a trustee, had resigned their places in the Long Island r City Savings Bank, of Long Island City, there was it something of a run on the bank, and before its doors were closed at the usual time, 4 p. m., about $10,000 st had been drawn out. This is a considerable sum in o an institution in which frequently not more than & e few hundred dollars are taken out in a day. The I. resignations were handed in at the meeting of the t trustees on Tuesday, but that fact did not become pubn licly known until yesterday. The cause of the action e of the two men was the failure of the Board of t Trustees to pass a resolution to have the affairs of S the bank examined by the officers and a special come mittee. The two men named and Sylvester Gray, the president, and H. M. Thomas, the second vice. e president, favored the resolution, but the cashier, e J. Harvey Smedley, and three others wished the regular Examining Committee to make the investigation. so there was a deadlock. Mr. Appleton's desire for an examination of the 0 books, he said, was due to the fact that Mr. Smedley 0 had charged up as profits about $8,000 which Mr. 0 Smedley said was the difference between the present 0 market value of the securities of the bank and their cost. This, Mr. Appleton said, was illegal. He was 5 also aggrieved because the Examining Committee had taken Mr. Smedley's word for the amount of cash on hand, instead of counting it. 6 Mr. Smedley said yesterday to a Tribune reporter that he had not reckoned the increase in the value of the securities as part of the profits, but had merely placed on his report the market, as well as the par, value of the stocks and bonds, in accordance with the rules of the State Banking Department. He said that if the Examining Committee had not actually counted his cash, it was not his fault, because they could have done SO had they wished. Mr. Smedley thought that the real cause of Mr. Appleton's disd satisfaction was a personal one. "The Board recently granted me an increase of salary to $1,500 a year, by a unanimous vote," said Mr. Smedley, "but imh mediately afterward Mr. Appleton expressed his regret at this. If he did not wish me to place the valuation e upon the securities, and had said so, I would gladly have turned the job over to him or to the Examining Committee. That committee went over my valuations and reduced them from $158,175 to $150,234, but this was after my quarterly report, to the correct. ness of which they made affidavit, had been sent to Albany." The bank was organized in 1876, and the deposits last night amounted to about $387,000, and the surplus was over $18,000. The officials are prepared for a run to-day, and rather expect one. Mr. Appleton says that the bank is amply able to meet its obligations, but his withdrawal from it is viewed by some depositors as an indication that everything is not right. The trustees met last nght and made a formal statement of the facts in connection with Mr. Appleton's resignation, which said that the securities and funds of the bank are intact and every depositor's money is absolutely safe." Another first vice-president will be elected probably at the next monthly meeting.

4. April 12, 1890 Morning Journal and Courier New Haven, CT

Article from Morning Journal and Courier, April 12, 1890

Click image to open full size in new tab

Article Text

A Run on a Bank. LONG ISLAND, L. I., April 11.-A slight run on the Long Island City Savings bank occurred this afternoon and evening in consequence of exaggerated reports concerning the affairs of the institution, but confidence was apparently restored when those who appeared at the cashier's window to draw out their deposits received their money in full.

5. April 12, 1890 New-York Tribune New York, NY

Click image to open full size in new tab

Article Text

TWELVE PAGES. THE NEWS THIS MORNING. Foreign.-In the Parliamentary election in the Carnarvon District, the English Liberals gained "The London Lancet" prints details a seat. of the recent prison atrocities in Siberia. Quiet has been restored in Valencia, Spain, the scene of an anti-Carlist outbreak. Emperor William visited the Empress of Austria at WiesIt is said to be the purpose of Great baden. Britain to spend large sums in fortifying the coasts Scores of students have been Canada. of sent home or expelled from the Russian Universities. The Congress.-Both branches in session. Senate: Mr. Evarts made an impressive speech on the Montana contest. The House: The contested election case of Waddill against Wise in the па Virginia District was begun. The World's Fair bill was reported to the Senate: one of the amendments provides for a naval review in New-York harbor in April, 1893. Domestic.-Senator Stewart's Police Justices bill was killed in the Assembly by Democrats and bolting Republicans, led by Messrs. Fish and Much interest was shown in the outGibbs. come of the special elections to be held in Providence, R. I., to-day. Mr. Randall was reported at a late hour to be growing weaker. Jay Gould, at Dallas, commented on the prosperity of Texas and Mexico. Congressman Phelan gave out a statement explaining and defending his course in his difficulty with Colonel Fleming, of Knoxville. City and Suburban.-A gas explosion blew the windows out of a house, splintered the floors and The Redemolished furniture and paintings. publican Committee of Jersey City determined to contest the election of Orestes Cleveland; many more frauds were disclosed before the New-Jersey a Senate Investigating Committee. A run on Long Island City savings bank caused by the resignation of some of the officers of the institution; it is entirely solvent. Emigration Commissioner Stephenson, in giving testimony before the Congress Sub-Committee, made an attack on August Belmont and O. B. Bernard Biglin. Potter accepted Mayor Grant's appointment of them as Rapid Transit Commissioners; C. S. Smith declined. Two desperate convicts overpowered their guard and escaped from Sing Sing Prison, but were recaptured in a few hours. Stocks generally dull and sympathetic, with savage raids made on specials, closing at about the lowest figures. The Weather.-Forecast for to-day: Warmer and fair. Temperature yesterday Highest, 50 degrees; lowest, 36; average, 43 1-2.

6. April 13, 1890 New-York Tribune New York, NY

Article from New-York Tribune, April 13, 1890

Click image to open full size in new tab

Article Text

LONG ISLAND. THE BANK WAS PREPARED FOR A RUN. When the doors of the Long Island City Savings Bank were opened at 9 o'clock yesterday morning a crowd of anxious depositors to the number of 200 was gathered about and made a rush for the cashier's window. The officers of the institution, anticipating a run. had made ample preparations to meet one and had $50,000 in cash ready to pay out. Cashier Smedley at once began paying all comers, most of whom were small depositors. As the day wore on and the crowd outside saw those who had got in first coming out with their money in their hands many vent away with their bank-books, concluding that their money was safe. The bank received offers of assistance from the Queens County and the Mechanics and Traders' Bank, as well as from many wealthy merchants, but all offers of help were declined with thanks. At noon, the time at which the bank usually closes for four hours, President Gray posted a notice outside the bank saying that it would not be closed at all until p. m., and that it would reopen at 9 a. m. Monday and remain open without intermission all that day. A number of people attempted to enter the bank to make deposits, but were not able to do so. PLAINVIEW.-Gunther Kell. who shot and killed Frederick Van Size at Plainview a week ago. was vesterday arrested on a warrant issued by Justice Steinert of Hicksville Kell was found in his bed. still suffering from the injuries he received in the fight which took place after the shooting of Van Size. A constable was directed to remain on guard at the house until his prisoner Is well enough to be locked UD.

7. April 13, 1890 St. Paul Daily Globe Saint Paul, MN

Article from St. Paul Daily Globe, April 13, 1890

Click image to open full size in new tab

Article Text

Depositors Panic Stricken. NEW YORK, April 12.-The run on the Long Island City Savings bank continued all day, and at the close of business $330,000 had been paid out. Several Brooklyn banks have offered to assist the bank it necessary, but the officials say they are making money by the run, as the depositors who withdraw their money will forfeit three months' interest.

8. April 16, 1890 The Enterprise Wellington, OH

Article from The Enterprise, April 16, 1890

Click image to open full size in new tab

Article Text

Only the Depositors Lose. NEW YORK, April 14-A run on the Long Island City savings bank took place Saturday and at the close of business $330,000 had been paid out. Several Brooklyn banks offered to assist the bank if necessary, but the officials say they are making money by the run, as the depositors who withdraw their money will forfeit three months' interest. ni 110 mon DI

9. April 17, 1890 Iron County Register Ironton, MO

Article from Iron County Register, April 17, 1890

Click image to open full size in new tab

Article Text

LATE NEWS ITEMS. IN the Senate, on the 12th, after the transaction of routine business, the calendar was taken up under the five-minute rule and a large number of bills were passed, the most important of which was Senate bill to increase the efficiency and reduce the expense of the signal corps of the army; after which a In the brief secret session was held House, immediately after the reading of the journal, consideration of the con. tested-election case of Waddell against Wise was taken up and discussed, and the majority report, seating the contestant, was adopted-yeas, 134; nays, 120. Public business was then suspended, and the House proceeded to pay fitting tributes to the memory of the late James Laird, Representative from Nebraska. Hon. SAMUEL J. RANDALL, died at his home in Washington City, on the 13th, after a lingering and very painful illness from internal cancer. His last hours were cheered by the presence of his devoted wife and affectionate children. He was in his sixty-second yearmore than half of his life having been passed in public office, twenty-seven years of it in Congress, of which he was one of the most effective and hard-working members, and in which he served during three sessions as Speaker. IT is stated that Belgium has guaranteed a loan of £6,000,000 for the Congo Free State. It is rumored in this qonnection that King Leopold declined an offer of £4,000,000 from Germany toward the loan. THE steamer Chenango, bound from Toledo, O., to Buffalo, N. Y., with 60.000 bushels of grain, was burned off Erie, Pa., on the night of the 11th, and sunk in four fathoms of water. Her crew was rescued by a passing steamer. THE supplementary elections in Rhode Island, on the 12th. gave the Legislature to the Democrats and insured the election of the Democratic State ticket. DURING à run on the Long Island City (N. Y.) Savings Bank, on the 12th, in which $330,000 were paid out, several Brooklyn banks offered assistance, but were assured that the bank was making money by the run, as the depositors who withdrew their money forfeited three months' interest. A FIVE THOUSAND gallon water-tank, weighing, with its contents, over twenty tons, crashed through the roof of the Park Theater, in Philadelphia, on the 13th, wrecking in its descent the paint frame, some of the scenery and about one-half of the stage. The tank went clear through to the cellar where everything was flooded.

10. April 19, 1890 Huntsville Gazette Huntsville, AL

Article from Huntsville Gazette, April 19, 1890

Click image to open full size in new tab

Article Text

MISCELLANEOUS. IT is stated that the inquiry into the financial condition of the city of Rome shows the situation to be worse than indicated by the most gloomy anticipations. As the government refuses relief to the municipality, a crash with numerous resulting failures is expected. ON the 11th upward of fourteen hundred plumbers, gas-fitters, carpenters, stair-builders, painters, varnishers, marble-cutters, hod-hoisting machine engineers, electric-wire men, tile layers, framers, etc., employes of the firm of Paulsen & Egan, of New York City, which signed an agreement to comply with union rules and afterward refused to keep it, went on strike. ON the 9th the fiercest tornado ever known in that section swept across the southern part of Wyoming Territory. The storm stopped all railroad traffic, and caused a total suspension of business in many towns. THE Boston Duck Company, with works at Bondsville, Mass., will suspend operations Friday and Saturday of each week for an indefinite period, owing, it is stated, to overproduction. AT Dover, Me., an earthquake shock was felt about three o'clock on the morning of the 11th. A noise like that caused by an explosion was first heard and then the earth trembled for several seconds. A RUN was made on the Long Island City (N. Y.) Savings Bank, on the 12th, in which $330,000 was paid out. Several Brooklyn banks offered assistance, but were assured that the bank was making money by the run, as the depositors who withdrew their money forfeited three months' interest. IT is estimated that the maple-sugar crop of Vermont, which has just been harvested, amounts to about 5,000,000 pounds, which is below the quantity usually obtained. ON the 15th the celebration of the twenty-fifth anniversary of the establishment of the military order of the Loyal Legion began in Philadelphia. IT is stated that the Westinghouse Electric Company of Pittsburgh, Pa., has fixed up a department for the manufacture of street railway motors under patents controled by the company, and have definitely decided not to enter the proposed electric trust proposed by the TThomson-Houston Company.