Article Text
Broadway Bank Suspends. NEW YORK, April 14.-The Federal bank. a small institution in Broadway closed its doors this morning. Its capital was $250,000.
15532. Broadway Bank (New York, NY)
Bank Information
- Episode Type
- Run → Suspension → Closure
- Bank Type
- state
- Start Date
- April 1, 1904*
- Location
- New York, New York (40.714, -74.006)
Metadata
- Model
- gpt-5-mini
- Short Digest
b5318083
Response Measures
Full suspension, Books examined
Other: Articles show OCR confusion between 'Federal Bank' and 'Broadway Bank'; State Banking Department and District Attorney examined accounts.
Description
Newspaper reports state depositors at the Broadway Bank had heard rumors and withdrew $150,000 earlier in the week, and a separate brief item (Apr 14, 1904) reports the Broadway Bank suspended/closed its doors that morning. No reopening is reported in the provided articles. Bank type not specified in text.
Events (2)
1.
April 1, 1904*
Run
- Cause
- Rumor Or Misinformation
- Cause Details
- Depositors heard rumors which prompted withdrawals of about $150,000 earlier in the week before the suspension.
- Newspaper Excerpt
- Early in the week depositors in the Broadway bank had heard rumors and withdrew $150,000.
- Source
- newspapers
2.
April 14, 1904
Suspension
- Cause Details
- Article simply reports the bank closed its doors on April 14; contemporaneous reporting links prior rumor-driven withdrawals to the bank's distress, but the suspension notice does not explicitly state the formal cause.
- Newspaper Excerpt
- Broadway Bank Suspends. NEW YORK, April 14.-The Federal bank. a small institution in Broadway closed its doors this morning.
- Source
- newspapers
Newspaper Articles (2)
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Article Text
Guardian Trust Company." Mr. Muirhead said that the notice posted at the bank was for the purpose of letting the holders of these checks know they could be redeemed with new checks at the company's office. Many depositors who had read in the newspapers of Rothschild's connection with the Globe Security Company misunderstood the notice and went down to Park Row with their bank books. Depositors After Cash. "The Globe Security Company will only rèdeem its own checks," Mr. Muirhead was explaining to several Federal Bank depositors when an Evening World réporter arrived. "We have $92,000 worth of hypothecated paper In the Federal Bank," he concluded, "and the most of this is good. Besides, there is the cash deposit of $8,000, SO that the bank will not lose through this concern. But I have no bank now to carry my paper, and I am nearly distracted. I have been forced to refuse business, and have sent back several large checks from private persons who destre to open an account with us rather than have them involved in the present tangle, which looks very blue for us." The District Attorney has joined the officials of the State Banking Department in the examination of the Federal's accounts and they are said to agree that the conditions revealed are about the worst they have ever met in this city. Some of the officials are not so sanguine as those who think depositors may get forty cents on the dollar. The less optimistic ones say that nrteen cents will be about all that any depositor can hope for. Small Tradesmen Suffer. Many small east side tradesmen will suffer by the failure of the Federal Bank. Some of them have their all involved in the concern, and not a few, besides being depositors, were induced to invest the savings of years in its stock. These investments run all the way from $1,000 to $5,000. The assets of the Federal consist of $600,000 in loans. When its doors closed yesterday its deposits amounted to $350,000, of which sum $120,000 belonged to east side depositors. Early in the week depositors In the Brodway bank had heard rumors and withdrew $150,000. These rumors did not get over to Grand and Orchard streets, and the poor people there kept putting money in the branch bank until a few minutes before the doors were closed. It is believed by the State Banking Department that the original paid-in capital of $250,000 and a surplus of $50,000 are gone. The Federal Bank was started two years ago chiefly by David Rothschild. who was its president until three weeks ago. In the latter part of March many complaints were made to the District Attorney against the Globe Security Company, which occupies nearly all of the seventh floor of the Tract Society Building, at No. 150 Nassau street. These complaints resulted in the arrest of William Muirhead, president of the Globe Company. on a charge of usury. The arrest of Muirhead disclosed pecullar relations between the bank and the Globe Company. The Globe, it is said, was established by Rothschild and his brothers shortly before the bank was organized. There are several of these Rothschild brothers. David is regarded as the head of the family. He lives in good style at the Ansonia. The brothers dealt in bar fixtures and office furniture in Cincinnati, and tried the same business here, but abandoned it to go into finance.