15326. Bank For Savings (New York, NY)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
September 22, 1873
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
db3ddce4

Response Measures

Accommodated withdrawals

Description

Articles (Sept 24 and Oct 18, 1873) describe a depositors' 'run' / besieging of the Bank for Savings with heavy withdrawals during the panic week, but the bank continued to pay demands and did not suspend; by mid-October business had returned toward normal. No suspension, receivership, or permanent closure is reported. Cause classified as macroeconomic panic (panic of 1873) rather than a discrete rumor or bank-specific failure.

Events (1)

1. September 22, 1873 Run
Cause
Macro News
Cause Details
Part of the wider panic in New York (panic week in September 1873) causing depositors to besiege savings institutions and demand funds
Measures
Continued to pay depositors' demands; authorities did not place restrictions on drawings; the bank met withdrawals and many depositors returned funds later.
Newspaper Excerpt
BANK FOR SAVINGS... was besieged throughout the ... the excitement attending the run of Saturday and Monday; indeed, a fair proportion drawing on the bank ... many drew their money ... and then returned it
Source
newspapers

Newspaper Articles (2)

Article from New-York Tribune, September 24, 1873

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Article Text

that may be converted in fifteen minutes, and $750,000 bonds, in cash, an amount total which their entire force would find difficulty in paying out in many days. BANK FOR SAVINGS. for Savings of the City of New-York. on was besieged throughout the de- its and paying, as they sum depositors, Bleecker-st., The Bank continued to day large do, all by even to the settlement of accounts, a mands, necessarily paid out. There seemed, however, of money a want was of the excitement attending the run of Saturday and Monday; indeed, a fair proportion drawing on the bank with the intention of those visiting doing so, assured by their deposits returned without appearance of things of their security. reply of the the controller to the ft-repeated question, Are my if safe 9" that They were; still, take them earnings want them," deterred many drawing. A large majority you of those drawing yesterday were women, credof whom, from appearances, would not be many ited with any great surfeit of this world's goods, yet whose bank account was quite large. With loss the money once in their possession, many seemed at a know what to do with it. Every one in their immediate to neighborhood seemed looked upon evil charac- One and the money was quickly hidden from sight. the ter, very scantily dressed. though advised to contrary. woman, drew her account of nearly $1,000, and, with the fear depicted on every feature, hurriedly passed to front door. But the gaze of the crowd of idlers upon the outside was too much for her, and she as hurriedly a returned to the receiving teller's desk and opened account. Soi it was with many others, who merely new drew their money as it appeared, to satisfy themselves that 11 was actually in the bank, and then returned it, though forfeiting the interest about due. It is understood that the authorities will not place any restrictions on the drawing of moneys, but will continue their preseut course. UNION DIME SAVINGS BANK. N. J. Haines, the President of this institution, said that they had since the excitement began paid in full every depositor who demanded money up to 7 p. m. Monday night, and that at that hour they had paid one depositor $8,000. "To-day, however," said he, the directors reluctantly passed: resolution to avail themselves of the 60 days' time allowed by law in the case of sums over $100. They had paid out on Monday $130,000, and yesterday the amount, he thought, would not exceed $40,000. which was not one-fourth the amount paid out by them daily in ordimary times. Yesterday a large number of depositors, mostly of small amounts, besieged the doors early in the morning. These, however, drew much lighter than the rule, and it was a noticeable feature that nine out of ten were unable to sign their names. Inside the clerks were busy tearing the wrappers off from huge packages of greenbacks from the Treasury and anextra paying teller was put on in order to satisfy the crowd as soon as possible. At 1:15 in the afternoon the street was perfectly clear of depositors, and the crowd inside was diminishing rapidly. This bank had also in the midst of the panic purchased |$100,000 worth of Government bonds, and paid cash. The Treasurer paid that the bank had made, by those depositors drawing out their accounts, between $5,000 and $6,000, to the advantage of those who had seen fit to let their money remain. MANHATTAN SAVINGS BANK. At the Manhattan yesterday. everything was quiet and Edward Schell, the Treasurer, stated that their drafts were not over an average business, and that many times during the day there was not a single person in the bank besides the officials and employes. They bad paid in full from the beginning, and the amount paid out yesterday would not equal one-tenth the sum drawn day previous. their financial affairs were adjustIng themselves properly to their agreeable surprise, as they expected troublejfrom the indications of Saturday. GREENWICH SAVINGS BANK. C. Gilbert, the Treasurer of the Greenwich Savings Bank, said that afnumber} offsmall accounts had been closed since Saturday, more, perhaps, than in ordinary times, though there had been no run and they had paid In full when asked to do so. About $60,000 was paid out on Monday. Yesterday, an hour before closing, the amount did not exceed $17,000, and there were few perBons in bank. Ordinarily in busy times they had paid four times that amount. GERMAN SAVINGS BANK. At eight o'clock yesterday morning a solitary woman was BOOD sitting on the steps of the German Bank in Union-square, and an hour later she was joined by half d o dozen men, who waited patiently until the doors were ppened. This bank has not availed itself of time, and Several of the men on learning that they could have their money, preferred to let it remain rather than lose %hree months' interest. " Monday," said Theo. E. Buck, the Treasurer, we had a deposit of $25,000. Some ac Counts have been closed, for among 20,000 depositors come will be foolish enough to draw in times like these." FRANKLIN SAVINGS BANK. The Franklin, at Forty second-st. and Eighth-ave. also resumed the payment of small amounts, yesterday, and will continue in this course unless the panic returns, a thing which the officers of that institution by no means anticipate. NEW-YORK SAVINGS BANK. President Richard H. Bull said that there had been few persons in this Bank all day, and their deposits yes Berday would, he thought, nearly equal their drafts. NORTH RIVER SAVINGS BANK. The North River Savings Bank, at Thirty-fourth-st. and Eighth-ave. began yesterday to pay in small sums, as the demand was light, although they had previously desided to require the thirty and sixty days' notice, ac cording the rule. One of the tellers said that they should continue to meet small amounts as long 88 there was the present quiet condition of affairs. but should avail themselves of their first determination if there wasany prospect of the repetition of a general rush. / OTHER RAVINGS INSTITUTIONS. At most of other savings banks, there was a return to the usual business. The Atlantic was paying all demands of $100, and larger sums when necessary; and this course was taken at the Mechanica' and Traders' Savings Bank. The New-Amsterdam was meeting all demands, which did not much exceed the usual amount The German Up-town Bank was free from the run of Monday. through adopting the requirement of 30 days' potice in all cases. The Teutonia Savings Bank, on Avenue A, was somewhat pressed on Monday. but its depositors recovered their confidence yeaterday, and held back. The Freedman's Savings Bank, on Bleeckerst., was quiet, paying out little money and receiving many deposits. The Clinton Savings Bank. on Eighth-ave., has from the outset had no trouble from depositors anxious to withdraw their accounts, and was yesterday opening a number of new accounts. O. P. Smith. the secretary, paid that everything was as quiet as Sunday there. This was also the case with the Trades' Savings Bank, Twenty-third-st. The Metropolitan and Seamen's SavIngs Banks have required the 30 days notice for sums $ 100 and 60 days for sums over $500. The Mutual Benefit, on Nassau-st., also adopted this rule, and was visited by few depositors yesterday. Thus the excitement seems lessening, and all the savings institutions in the city are confident that there will be no repetition of the panie, while many of the depositors are beginning to regret the loss of the interest on their money, which will considerably benefit the banks. The arrangements of Superintendent Matsell to keep order at the savings banks upon which "runs" were begun by customers were similar to those of the day


Article from New-York Tribune, October 18, 1873

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SAVINGS BANKS UNSHAKEN. BUSINESS FLOWING BACK INTO ITS ORDINARY CHANNEL-PAYMENTS MADE TO DEPOSITORS IN ALL CASES OF NECESSITY-WITHDRAWAL MADE FOR PERMANENT INVESTMENT. " Business with us is easy," said President Brown of the Bowery Savings Bank yesterday, when questioned in this particular by a TRIBUNE reporter. easy as it has ever been." He further said that they had virtually resumed the payment of all demands, only draft requiring the legal notice, when the proposed a seemed unnecessary to the depositor. Only few of these notices were now given, on an average one or two daily. Taken altogether, notices had been received covering about $280,000; if the bank had settled all these book accounts at the time the respective notices were given. it would not have proved much more than the usual day's business. More money was being paid out than during the month previous to the panic, no doubt partly occasioned by the investments in real estate. He said the number of small drafts -of $5, $10, and was unusually large, which would seem to indicate that a large number of the laboring class were out of employment. Deposits, as was usually the case during the month of October, had been Finall. Deposits made after the 1st did not draw interest until the fullowing January. Compared with the corresponding month of last year, there was a very marked decrease, but taken altogether, everything connected with the banking business seemed most satisfactory at present. In the course of his remarks, Mr. Brown spoke of the statement made through the press to the effect that the savings banks were hoarding greenbacks-were ac cumulating in their vaults an "unusually large amount of bills. This," said he, " 80 far as the Bowerv Bank 18 I concerned, is untrue. On the Monday of the run, drew $500,000 from the Sub-Treasury, and the same day paid out $399,000. Anticipating a similar run on Tuesday, I that day drew another $500,000 from the Sub Treasury but the course then taken prevented run and this latter sum was left intact. I have now in the vaults $580,000 in greenbacks, against a liability of $27,000,000. and with notices covering $280.00 maturing within a few days. This amount is not as large by at least one third as the cash kept in the bank during the months of July and August last." When questioned as to the probable effect on their business of the enforcement of the law requiring notice. he said it did not appear hurtful to him. The depositors must in time acknowledge that they alone were benefited by such a course. Especially was this the case at this bank. The Bowery Savings Bank was in reality a charitable institution. and if the depositors could find more profitable investment for their savings, then its only aim was accomplished. There were no sinecures in the institution, none of the officers drew salaries except those actually engaged in the business of the bank. As to deposits, it would cause no disappointment if not another dollar was received. Secretary T.S. Armour reported a similar encouraging condition of affairs at the Union Ditne Savings Bank present they were paying sums of $500 upon demand, and even larger amounts when satisfied that they were required for legitimate business purposes. Notices covering about $57,000 had been received, and scarcely a day passed without many withdrawals were made. The drafts were mostly in small amounts. The receipts of the month were in excess of the payments, and, considering the circumstances, compared very favorably with the business of last year for the same month. the difference amounting to about $83,000. At present. business was not quite as heavy as ordinarily During the three days' run about $175,000 had been paid out-the largest amount in one day being $129,000. This was not equal to the usual payments for January and July, when dividends were declared. At these times as high as $150,000 or $200,000 was distributed in a single day. Of those w ho had helped to cause the run upon the bank, the majority were of the poorest and most illiterate their customers-it was safe to say seven out of ten could neither read nor write. At the Emigrant Industrial Savings Bank the Con troller said that they held notices of the withdrawal of deposits amount ing to $203,000. and in amounts varying from $50 to $2,000. He believed that little of this would be called for. Few notices were now coming in. only two or three a day. The receipts during the month were about one-third less than those of the corresponding month last year; the drafts were somewhat in excess. Much of the money was drawn for more profitable investment and not from any fear as to the security of the deposits. They still required the notice from those having no actual and immediate requirement for their moneys, but were paying all demands necessary for business purposes. At the Greenwich Savings Bank they have not exacted any notice from their depositors, meeting all demands promptly. Secretary Boyce stated that they were still paying out a larger amount of money than usual, but. as it seemed. chiefly to meet actual necessities. Few If any accounts were being closed, and no evidences of alarm could be seen among those making drafts. This ratber unusual drain upon the deposits he believed was occasioned partly by the large number of men out of employment at present, partly by the tightness of the money market, and partly by the investment of considerable sums in real estate. The drafts of this month were much larger than for the same period last year. He thought that the savings banks that had enforced the rule requiring notice from depositors would in the end suffer from it, and that those that had continued in the payment of all demands would be correspondingly benefited. Controller Craig, at the Bank for Savings of the City of New-York. said: Money is still coming in and going out. We are still paying out considerable more than our average previous to the panic, but among those drawing their deposits there are no evidences of fear as to their security. People seem to be very generally investing in good securities, and in real estate, and being unable to draw their deposits from other banks, are necessarily compelled to take what they have with us. Many are idle, and must have money to meet the actual requirements of life. Some of our country depositors have just heard that there has been some frouble in New-York, and are coming in to look after their deposits. Some take them. but more leave them. Very few accounts are being closed indeed a very fair percentage of money drawn during the excitement has been returned. To be brief, business is in most satisfactory condition. The secretary of the East River Savings Bank stated that the receipts for the week ending last Wednesday were $10,000 in excess of the amount for the corresponding week last year. The payments were somewhat heavier, and had been all along. Visits to numerous other savings banks-the German. Merchants' Clerks', Freedman's, Manhattan, Mechanics' and Traders', and Citizens'-substantiated the above reports. With all, business has resumed its ordinary channel, and the future appears most promising. THE DELTA KAPPA EPSILON FRATERNITY. EASTON. Pa.. Oct. 17.-The closing entertain-