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BY TELEGRAPH. I Run on the Bowery Savings Bank, &e. NEW YORK, Oct. 10.-There was a run on the Bowery Savings Bank. but pays promptly. The Park Bank went through the run nobly, coming out stronger than before.
15512. Bowery Savings Bank (New York, NY)
Bank Information
- Episode Type
- Run Only
- Bank Type
- savings bank
- Start Date
- October 10, 1857
- Location
- New York, New York (40.714, -74.006)
Metadata
- Model
- gpt-5-mini
- Short Digest
665b880e
Response Measures
Accommodated withdrawals, Public signal of financial health, Capital injected
Description
Multiple articles from Oct 10–15, 1857 describe repeated runs on the Bowery Savings Bank caused largely by confusion with the failure/suspension of the (similarly named) Bowery Bank and rumor. The savings bank met demands, paid out specie, received large Treasury/redemption drafts, and did not suspend—so this is classified as run_only.
Events (1)
1.
October 10, 1857
Run
- Cause
- Rumor Or Misinformation
- Cause Details
- Withdrawals were driven by confusion of names and rumors about the failure/suspension of the (similarly named) Bowery Bank and related panic news about other banks; small depositors chiefly withdrew.
- Measures
- Paid out specie promptly; paid out 10% upon deposits at one point; received large redemption transfers (three drafts of ~$200,000 from Treasury) to strengthen specie reserves.
- Newspaper Excerpt
- There was a run on the Bowery Savings Bank...the bank paid out the gold with a promptness and expedition which soon restored confidence.
- Source
- newspapers
Newspaper Articles (12)
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BY TELEGRAPH. NEW ORLEANS, Oct. 9 - otton sales 1000 hales; prices unsettled, but mostly middling at 12c Sales of the week, 12,700 bales. Receipts 40 000 bales. D crease in receipts at this port, 57 000 hales. Money tighter. NEW YORK, Oct. 9 -Cotton quiet; floursales 85,000; wheat $1,25a1 for white; $1,18a 1.22 for red; corn 67a69c.; pork $23a23, Chicago beef 138141 sugar declined 10. Gallandet & Wetmore, bankers nave suspend d The run on the Park bank has subsided-all de mands were met The Central bank of Brooklyn has been enjoined and 8 receiver appointed. A n eeting of the banks reported that they will provide six millions for forwarding produce. CINCINNATI, Oct 9.-There is great ex C tement at the financial news from New York. Business neglected. Flour $450, unsettled whisky 16c.; oats 33.35c.; corn 40.45c. BOSTON, Oct. 9 Failures reported, Lagwerg & Co., straw goods; Milton Gale, oil and leather; Nash French & Co., shoe dealers. WASHINGTON, Oct. 9.-It is probable that the present Government of Nicaragua will be recognized by the reception of a Minister W th the view of securing the privilege of the transit route. The Post Master General has appointed six agents to attend the through Express mail from Baltimore to Cincin ati to secure more regularity The Secretary of the Interior has received advices that within one month the Minnesota wa. gon road will be completed to Fort Ridgely. The Attorney General is examining the basis on which the banks of the District of Columbia have been transacting business. ST. LOUIS, Oct. 9.-Kansas advices say that the Legislature is doubtful-accounts are conflict. ing. The New Mexico mail left Santa Fee on the 15th of September and arrived at Independence on the7th. Otero is re-elected to Congress by 7,000 ma. jority. The Indians quiet. The Cheyennes are anxious to make peace. DETROIT, Oct 9 -Immense quantities of produce are blocked up here for want of funds to carry it forward. The money excitement has subsided. The utmost confidence is placed in the remaining banks. NEW YORK, Oct. 9.-The Erie Railroad Co did not pay their laborers at Berger tunnel to-day. Grest excitement. The track was torn up. The Bowery bank has suspended. It wasasmallaffair. Its bills are secured. ST.LOUIS Oct -Wheat-white $1,06a1,00; corn-white 75c; tobacco improved; hemp un settled. NEW YORK, Oct. 10.-The Associated Press have decided hereafter to employ a substantial news Yacht at New Foundland, to board Foreign steamers off Cape Race, thereby shortening the time of reception of news to from 6 to 8 days. BOSTON, Oct. 10-A letter from Foster, Ro. gers & Co., at Calcutta, dated August 10, don't mention the news respecting Lucknow, except that Have ock reinforced was marching towards it NEW YORK, Oct. 10-The Illinois Central and Erie Railroads have suffered their notes to be protested. NEW YORK, Oct. 10.-Money depressed. Failurs, Seymour & Co., paper dealers; Coit & Co., sugar dealers; J. W. Corleis, dry goods. BOSTON, Oct. 10.-Money depressed. No new failures. CINCINNATI, Oct. 10.-Flour $4,25a4,50; grain unchanged; Whisky 16c.; Star candles 24c.; Tallow 12a13c. ST. LOUIS, Oct. 10.-According to the estimate of the Free State men. the Kansas Legislature will stand, Council--9 Republicans; 4 Democrats-House 24 Republicans; 15 Democrats. NEW ORLEANS, Oct. 10.-Cotton sales, 3000 bales at 11 to 11}c.; flour $5,624c.; nothing doing in exchangd. The ship Sultana from New York reports passing on the 22d, four corpses in the water, supposed to belong to the Central America. NEW YORK, 10.-Cotton and flour quiet; wheat $1,25a1,39 for white; $1,15a1,22} for red; corn 65 a68&c.; Provisions dull. AUGUSTA, Ga., Oct. 10.-Reliable intelligence from Charleston, announce the suspension of the Bank of the State of South Carolina. C.M. Firmer, President. NEW YORK, Oct. 10.-A run was made on the Brooklyn and Bowery Savings banks to-day-all demands were met. The Park bank stood the run successfully. BOSTON, Oct. 10.-The Michigan Central Railroad have suspended until they realise from the proposed bond subscriptions. On the 10th of Nov. their coupons will be paid as usual Meade, Minister to Brazil sails in the frigate Vincennes this day. f What it is doing for the Sick.-The Editor
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institution and confidence in the officers of the bank. A number of the la gest depositors expressed them selves as perfectly willing to allow their deposits to remain Towards evening the panio had some-hai subsided. and a large number of those who had come to draw their funds, deperted well satisfied with their security. Those who withdrew their deposits Inst the interest for six months, besides running the risk of having we morey stolen. On Saturday evening a man weo had drawn two hundred dollars in gold from the bank, hi 6 returning home had tate pocket picked in Ful. ton street of the whole of he money. Abont $55,000 was withdrawn en Saturday, and $120 000 will be ready for draft inte morning if the run cominges. All be other Brooklyn Babks, so far as board from, stand firm, despite small runs made upon them by easily intimidated persons. They express their perfect ability to weather the storm successfiley. Is some of the banks the deposits have been greater than the withdrawals. RUN ON THE BOWERY SAVINGS BANK. Owing to the failure of the Bowery Bank and the simi lariy of names between that and the Bowery Savingu Bank, there was quite a run on the latter institution on Saturday. The bank, however, paid out the gold with a promptness and expodition which soon restored confidence the withdrawals were mainly by small depositors. The large depositors are generally more calculating, and hav. ing perfect confidence in the solvency of the institution, will not undergo Ices of interest, as they would necessa rily do by a withdrawal. The savings banks of the city are deemed impregnable, and by a recent State law being planed under the superintendence of the State Ba: king Department, have the confiderce of all their depositors. One of our savings basks has, we understand, forward. ed to Washington or redemption five hundred thousand dollars worth of United states stocks, and will receive the coin in return. At the rate which the government bas decided to allow for these B'ocks the bank will receive a consicerable advance on heir original cost, and after stocking their vanite with specie until the orisis is passed, can re-leves judiciously in St.to stocks. It is well known that the Bower, Savinge Bank, a few days since, obtained one bondred thousand dollars in specie in this way, and were thes p epared to meet the run. All these (ac.s must tend to increase public confidence in the savings banks FAILURES OF BANKS AND INDIVIDUALS. The failures on Saturday were quite numerous, and exceed in amount of liabilities those of any previous day within the history of the country. So far as they have been officially announced they are av follows:Illino's Central Railroed Co., b: nds and stocks. $30,000,000 88 000,000 New York and Erie Railroad Co., do Michigan Central Railroad Co 14,000,000 Individual concerns, estimated 8,000,000 Total $86,000,000 The failures of a large paper bouse, one in the auction line, one in the sugar trade, several in the general grocery business, and several dry goods houses, were also reported, involving a very large amount of liabilities. The Fest River Bonk closed Its doors on Saturday. It was rather A weak concern, and has never enjoyed a very bigh credit. the date of the last report. Oct. 2, its condivon was as follows:Loans and discounts $391,088 specie 20,99L Circulation 91 632
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Trancial. Njw YORK, Out 10-M The reported failure of Geo. BIi S & Co urrent in the streets yesterday proved to be untrud. The firm is one of the strong st in the city, and entertain no thought of suspension: Illinois Central Railroad and Erie Railroad have both suffered their notes to be rotested. Money depressed. Seymour & Co., paper dealers, Coit & Co., sugar dealers, J. W, Colies, dry goods, have miled. BOSTON. Oct 10Money depressed Merchants, h. wever. generally neeting their notes. No new failures. AUGUSTA. On, Oct 10-PM Reliable intelhgence from Charleston announees the suspension of the Bank of the State of South Carolina. a State institution. TOOT NEW M There was a run made this morning on the Brooklyn Savings Bank: A hurge was ngregated n at the Bank and some excit ment previded. The Police was called to preser order. The Bank is abundantly able to meet the run. There was a run on the Bowery Savings Bank. but that institution met all demands promptly. The Park Bank came out stronger claim before, BOSTON, Oct 1 -PM In consequence of delay in Western remittances and thealmost total suspension of P per negotiation here. the M. U. R. R. suspended payment until they can realize from the proposed ubeription to bonds. They will pay their coupons as usual. RICHMOND, Oct 10-P M The Governor has cansed a pro lamation prohibiting the notes of the Bank of Kanawho from being received for debts due the S ate. the Bank having failed to redeem and moved a large amount of its assets beyond the limits ot the State.
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Saturday was the dark day of a dark week. The consultation between the Bank officers and the merchants had resulted in nothing specific or encouraging, and it became more evident than ever that there was no sympathy of feeling or concert of action among our city Banks. Under such circumstances the policy of the more cautious is unavoidably followed, and any considerable increase of discounts becomes next to impossible. Stocks suffered a still further decline; exchange and money negotiations were as difficult as they have been. The East River Bank, a small concern, a statement of the affairs of which will be found elsewhere, suspended payment; and there was quite a run upon the Bowery Savings Bank by small depositors-some of whom doubtless confounded this institution with the Bowery Bank-while others were frightened by a rumor that the latter had $50 000 in specie belonging to the matter in its vaults when it suspended on Friday. There were several important mercantile failures in the course of the day, which would of themselves have formed a fitting close to the disasters of the week. But they were thrown into the shade by the anuouncement that one of our great railroad corporations had made an assign. ment, and that the paper of two others had gone to protest. The following is the bulletin of the day: The ILLINOIS CENTRAL RAILROAD Co., assigned in consequence of inability to carry its large floating debt in such times as these. Its circular and the names of the assignees will be found in another column, where is also a statement of the retrenchments that it has been making on the line of the road. The NEW-YORK AND ERIE RAILROAD Co., notss protested. The MICHIGAN CENTRAL Railroad Co., suspended payment on its floating debt. The EAST RIVER BANK, suspended specie payment. Its notes will be received at par by the other banks.
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LATEST NEWS. New York Money Market--The Bluese Day Yet. New YORK Oct. 10. Prices of stocks are rather better, but outside it is the bluest day yet. Erie and Illinois Central Railroad Companies gone to protest. Money is scarce and much wanted at high advanced rates. Sterling Exchange is nominal. The failures this morning are J. W Corlies & Co., dry goods, and Colt & Co. sugar importers, Savannah trade. New York, Oct. 10. P. M To-day has been the bluest one yet in our market. The Illinois Central Railroad Company has made an assignment. The run on the Bowery Saving= Bank continued throughout the day. It is believed the bank is amply able to meet all its liabilities. The run on the Brooklyn Savings Bank had somewhat subsided at noon. Up to that hour $90,000 had been drawn out. Genin. the well known hatter, and Fen ton & Lee, have suspended. Railroad stocks went down still further, Illinois Central Railroad bonds falling off 15 cents, and the shares 5 cents. The Park Bank went through the run yesterday nobly and closed out to-day stronger in specie than before. There was a large business in State Stocks mostly at lower prices. Bank stock sold at a slight decline. There were rumors in the afternoon of feeting the credit of SOINE of the heaviest houses in the city. II. A. Coit, whose failure is announced today, is the agent of Drake & Co. of Havana. The Cowery Bank goes into liquidation. Stocks at Second Board were dull Missouri sold at 64 14 Virginia 70; Canton Co., 13; Erie R. R. 7318; Illinois Central 74: C. & H 8; Le Crosse & Mil. 51 1-4.
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confederates a chance to refund the money. James McCoy, indicted for attempting to break into the store of Roes & Ballard, Chambers street, on the 23d of September, was convicted of an attempt to commit larceny, and renanded for sentence. We have news from the city of Mexioo to the 4th and Vera Cruz to the 7th inst. The Mexican Congress had held a preliminary meeting and chosen Manuel Ruiz President. The insurgents at the South continued to hold out against the government forces, and it was reported that Alvarez had been assassi` nated. The town was rife with rumors of commercial failures yesterday, most of which were entirely without foundation. The Grocers' Bank, however, stopped payment, and there was somewhat of a run on one or two of the savings institutions, among them the Bowery Savings Bank. The depositors received their funds as fast as they could be counted out. This bank yesterday received $607,000 from the Secretary of the Treasury for redeemed government securities, and may therefore be regarded as impregnable. The Pennsylvania House of Representatives yesterday, by a vote of thirty-four to fifty-six, defeated the Senate bill legalizing the suspension of specie payments by the banks. We are happy to learn that the statement that Messrs. A. T. Stewart & Co. had discharged a number of hands was unfounded. Doubtless their employés will be equally satisfied to learn that they have no intention of discharging any of them. The following are the movements of produce for the twenty-four hours ending at noon yesterday:-
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TUESDAY, Oct. The storm has broken at last, and eighteen of the City Banks have been obAged to secomb to the pressure for Thisevent although most of the bank officers have expressed great confidence in their ability to withstand the storm. There has been for some time past & persistent drain of Gold by the withdrawal of deposits, and this has been more rapid and exhaustive within the 1sst day or two. The Bank Statement, published this morning, w&s not satisfactory, and, with the failure of the East River and Bowery Banks, produced a severe run upon the up-town Banks, which soon extended to the Wall street Banks. Some of the np-town banks yielded to the pressure at once and closed their doors, while the down-town institutions held out, with two or three exceptions, until the stroke of three relieved them from the crowds which besieged their doors. The exceptions were the Leather Manufacturers' and New York, which refused coin but continued to certify checks, and the St. Nicholas, which closed about 1 o'clock. The New-York is one of the oldest, if not the oldest bank, in the city, and the news of its stoppage was received at first with entire incredulity. The bank has, under legal advice, arranged to go on with its business to morrow as usual. Some of the banks which are reported to have sustained specie payments, resorted to various subterfuges to sustain themselves, which might be called by & harsher name. In the hight of the run, between 2 and 3 o'clock, Wall street certainly presented the most excited appearance that has ever been exhibited there. The walks, door-ways and windows, were crowded with an eager throng, mostly, however, attracted by curiosity. The bank rooms were full of anxious dealers, standing in long lines, awaiting their turn to reach the paying-teller's wicket, and to draw the gold for bills or checks. Exaggerated rumors flew through the crowd which surged up and down the street, or were perched upon the stoops of the various buildings overlooking the scene. The result of the run is fully told on another page of this sheet: the suspension of eighteen banks, followed by & consultation of those remaining standing, although not unshaken, whether to suspend or go on to-morrow. At the moment of writing, & meeting of the Banks is in session at the Clearing House, and we hope to be able, before we go to press, to obtain the result. The interest of the street was 80 entirely absorbed in the bank panic, that mercantile failures attracted but little attention, although the number of protests and extensions must have been very large, yet very few names have been mentioned. The Stock Board, also, was & matter of secondary interest. The transactions were quite moderate and mostly for cash. After the Second Board, when the impression prevailed that all the city banks would suspend, the market for the leading fancies was buoyant. Central advanced to 59, having opened at 521, and Reading went to 33, having opened at 29. At the close the former was 58 and the latter 321. The market in the morning was generally lower, but the decline was not material. Orders for 700 shares of Rock Island, on buyer sixty at 60@62, the cash price being 551 @56. Only 10 shares of Erie were sold. Delaware declined to 75 and Cumberland to 51. Toledo sold at 201, a decline of 11 P cent, and Hudson River at 10. Panama sold at 60 in the morning and jumped to 65 in the afternoon. In Bank Stocks the sales were moderate and show but little change from yesterday. Bank of Commerce sold at 70, Metropolitan 57, American Exchange 541, Commonwealth 60, &c. The sales of State Stocks con. tinue to be large, amounting to-day to over $130,000. The market shows'a smalldecline, excepting in Missouri 6's, which are better. In Railroad Bonds the market is dull and irregular. Illinois Central and Erie 1871 are better, while Erie 2d mortgage are lower. The impression at the close was, that if all the Banks suspended there would be & temporary advance in the whole list of stocks. There has been a moderate amount of business doing for the Wednesday steamer in Exchange at about previous rates. But few Sterltng bills have sold above par, but 102 is asked by some leading drawers. The supply of bills is large, and the disturbed state of financial affairs prevents important transactions. Buyers feel too uncertain about the result of to-day's work to make large engagements. Freights continue dull. To Liverpool the engagements are: 20,000 bushels Corn at 41@42d., in bulk. and 12,000 bushels Wheat at 51d., in bags; 2,000 bbls. Flour at 1s. 9d. @1s. 10ld. To London, 50 cases Indigo at 25e.; 20 tuns Measurement Goods at 20a. 50 tuns Oil Cake at 20a. To Glasgow, 12 tuns Whalefoot's at 27a. 6d.; ,500 bbls. Flour at 2s. 6d. A vessel of 650 tuns (abont 000 hhds.), for Cowes, with orders for Liverpool, London or Breinen, with Sugar, at 27s. 6d. The business of the Sub Treasury was: Receipts, $125,681 01, including $100,000 transferred from Bos. tor; payments, $277,407 92; balance, $5,817,545 48. The disbursements W and have been much larger but for the fact that the Bowery Savings Bank received $600,000 from Washington, in three drafts of $200,000, and only used one of them. The Artisans' and Merchants' Exchange Banks have published cards, stating that those institutions are abundantly able to pay all their debts, and that they hope soon to resume business. The following Stocks were sold to-day by Mr. Draper: Int. added 17) $3,000 City of Milwaukee To Int. added 4@4 12,000 Attica and Allegheuy RR Co. 7a. 10000 Milwaukee and Horicon RA Co. 8a Int. added 13 Int. added 50@55} 47 000 Tennessee 6a Int. added 541@554 11. 000 Virginia 91 40 shares Astor Fire Insurance Co 60 25 shares Shoe and Leather Bank 531 41 30 shares Metropolitan Bar Bank & 25 shares Continental 60 10 shares Nassan Bank 60 62 shares New World Fire Insurance Co 65 50 shares Bank of Commerce 50/20 shares Pacific Mail Steamship Co 50 20 shares Hanover Bank 55 50 shares Phenix Bank 75 16 shares Metropolitan Fire Insurance Co., Albert H. Nicolay sold at auction to-day: $18 400 Milwaukee and Horieon R.R. Farm Mort. & int. 000 Tennessee State 6 per cent Bonds, $5,000 Milwaukee & Horieon R. R. let M.8 percent @15 & int Convertible Sinking Fund Bonds 75 & int. South Carolina 6 per cent Bonds int. $1,000 Milwaukee City percent Bonds 67 $2,000 Virginia State per cent Bonds int. $10,000 Louisiana State 6 per cent Bonds. $20000 Attica & Alleghany R. let Bds. int. Attica Alleghany per Bds. 511055 int. $10,000 Milwaukee City per Bonds, 1874 Sacramento City 10 per cent Bonds. 74&80
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the Supreme the same points. Judge for The the Judge papers for the Mr. of New THE INSTITUTIONS. RUN MODE Yesterday institutions carnot they ted their States redeem with stock banks gold, cannot what they the Secretary may present, teracted per amounts under have, from The of any phase resolution very creatiably continue crisis order of officers banking street adilations:for Bank Savings, East River davings Institution. Bowery Savings Institution Merchants' Irving Clerks' Savings Institution. Emigrants' Savings Institution. South Brooklyn Brocklyn Institution. Institution Savings Institution. Marinera' Manhatian Savings Institution. Mechanica' Savings Institution. Dry Don't Savings and Traders' Institution. Savings Breadway Savings Institution. Greeswich Savings Institution. Willismsburg Seamon's Institution. JOHN After First-The only paid which State Second or depositors The EUN Verday, male. coaling charged they The assets published on $7,849,189 statement their and of surplus of bage to door turn. The cashier, newspapers of spectful who be probably to positors, the In morning excitement. for the hour approached at four grew larger 1,000 about
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quire one month's nolloe before payment, on all drarts amounting to over afty dollars. Before adjourning, the directors learned of the action of the officers of the New York banks so suspend spe no pay ments and accordingly decided to pay depositors current bills, should they prefer them to waiting thirty days. at three o'clock, the hour of opening, there were abo st fity persons in waiting, and up to seven e'clock there was no press. A majority of the depositors received bHis, while a few gave the required month's notice. THE PANIC AMONG THE SAVINGS BAN (8 IN 1837. Our reporter was informed by one of the trustees of the Bowery Savings Bank, in allusion to the financial crieis in 1837, that is did not in any way seriously incommo to the savings banks. That in that year the Bo very Savings In stitution had but $500,000 on deposit, and as soon as the Fun took place they throw themselves on the rules of the bank, and requested of their depositors a month's notice, as provided for. Before the month transpired the pante passed off, and there was no further occasion for infulgence; everything went on as usual. This stipulated notice the trustees feel should be always demanded as a protection to themselves and their depositors. We learn that in the year 1837 the par is mania as the Bowery Savings Bank resulted in an extra dividend to those of their deposiors who held on. The same will be the result of the present panic mania.
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SAVINGS BANKS. BOWERY SAVINGS BANK. The run upon this bank was resumed with increased vigor yesterday morning, rendering it necessary to have a very large police force to preserve order. The bank paid out 10 per cent upon the deposits. The Secretary of the Bank furnished us, at 4 o'clock P. m., with the following statement of its affairs: Due individual Depositors. $6,440,200
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The financial skies begin to clear in New York. Confidence revives. Stocks have gone up with a bound. New York State Stocks have advanced thirteen per cent. within two days. Ceptral Rail Road Stock is fifteen per cent. higher than it was a week ago. Virginia 6's jumped 17 per cent in a day. Even Erie and Illinois Central, whose engagements were lately protested, went up, the one 5, the otaer 8 per cent. Not a security sold at a decline. Gold begins to grow abundant. Specie was carried through the streets yesterday, looking for buyous at 4 per cent and found them scarce There is a story that an agent of the Rothschilds came out in the Van derbilt, to embrace this opportunity of buying up a large quantity of American securities at low rates. The Vanderbilt brings $20,000 in gold from Europe. The Northern Light brings $1,664,200 from California.Gold begins to find its way back to bank vaults. The run for savings has ceased. The Bowery Savings Bank alone received yesterday $5,000 in deposits, some of it in the same bags that carried it off a day or two before. Some who had drawn out gold to sell it in Wall street, found no market for it, and brought it back. There is no more trouble about bills. Everybody takes those of banks in this State without scrutiny. You hear noth ing more of "thrown out" or "broken" money. A dollar will go for a dollar, and silver change is freely given for it. The banks take all State bills on deposit. Bank stocks share in the general rise.Bank of Commerce is up to 70½ and American Exchange at 70-a rise of 18 per cent. Help is promised to the merchants.Accommodations were more liberal yes terday than for weeks past. The banks agree that there shall be an increase of discounts as rapid as their means will permit. Business faculies will be ex tended to bring forward the crops, and that once effected. all things will gradually but surely recover their healthy tone.-Albany Journal.