15566. Central Park Bank (New York, NY)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: November 26, 1875
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 4965250b

Response Measures

None

Description

The Central Park Bank (a small savings institution) was ordered closed by the State Superintendent, a receiver was appointed, and the bank was wound up. Coverage describes insolvency, mismanagement, use of depositors' funds to build premises, and appointment of a receiver. No discrete depositor 'run' triggering the closure is reported — withdrawals occurred over time and the Superintendent closed the bank for safety.

Events (3)

1. November 26, 1875 Receivership

Newspaper Excerpt: A Receiver Appointed for the Central Park Bank... there has been a receiver appointed by the State about two weeks ago, and yet no statement appeared to show the condition of the bank . . . will be wound up. Suspended. ... a receiver appointed by the State about two weeks ago (reports vary around Nov.26-27,1875).
Source: newspapers

2. November 26, 1875 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Superintendent Ellis found the bank in a 'shaky condition' after deposits had been largely withdrawn and depositors' funds had been invested in the bank building; insolvency and mismanagement prompted the closure.
Newspaper Excerpt: A Receiver Appointed for the Central Park Bank... Superintendent Ellis made an investigation ... he informed the President that he would have a receiver appointed
Source: newspapers

3. November 27, 1875 Other

Newspaper Excerpt: The Central Park Bank, a small savings institution up town, will be wound up. Suspended... The deposits are all gone, the building stands incomplete, and is mortgaged to the Trustees for $40,000.
Source: newspapers

Newspaper Articles (13)

1. November 26, 1875 The New York Herald New York, NY

Article from The New York Herald, November 26, 1875

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ANOTHER BROKEN SAVINGS BANK will close its doors to-day. The reasons for the step will be found recited in another column. The institution to take this serious step is known as the Central Park Bank, situated in Third avenue, not many blocks from the broken Third Avenue Bank. The suspended institution may not cause much excitement, but there are probably many unfortunate people who will suffer by finding their hard earned savings gone at a time when the loss will be felt keenly in these days of general distrust. It appears that the Central Park Bank was. like the Third

2. November 26, 1875 The New York Herald New York, NY

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ANOTHER BROKEN BANK. A Receiver Appointed for the Central Park Bank. Two Years of Insecurity Followed by Suspension. An Official Statement of the Bank's Condition. From the beginning of the trouble which culminated in the suspension of the Third Avenue Savings Bank a tress has been felt by all the small savings institutions, mong others the Central Park Bank, at No. 774 Third avenue. This institution, though never a very prosper108 one, was regarded as solid, and the directors hoped, by conservative management, to bring it up to a paying #8818 Those hopes gave promise of fulfilment until the Third Avenue Bank trouble began to scare depositrs and weaken confidence. This lack of confidence in the part of the public soon engendered trouble in the management of the bank, and great difficulty was experienced in finding a man who would represent the institution as its president. A temporary president was found, and shortly after he was necessitated to retain the place, as his resignation would not be accepted and the directors could not hold another election. Under this temporized management the institution floundered along until a lew weeks since, when Superintendent Ellis made an investigation of the affairs of the Central Park Bank and found the institution to be in a very shaky condition. A consultation was held with the officers of the bank. and Mr. Thomas Gearty, the President, induced Mr. Ellis to postpone definite action in the premises antil the bank could move into its new quarters, corner of Third avenue and Fortyeighth street. This Mr. Ellis refused to do unless the sum of $6,000 was added to the credit of the Bank, the money to be held as security for the claims of depositors. Ofthis sum Mr. Gearty raised $5,000, and with this new capital the bank was started in its new building. The condition of affairs spoken of as having claimed the attention of Mr. Ellis was that the bank was bare of deposits, most of the money having been withdrawn. It was hoped that when the new quarters were entered business would be improved. but depositors were not to be lured by a high stoop and plate glass windows, and the complained of bare condition of the bank still conilluued. Mr. Gearty promised to inform Mr. Ellis of the progress of the institution under the new condiions, and on Friday last he told the Superintendent that business had not improved, and, all things conridered, he thought It best to wind up the concern. Dn receipt of this information Mr. Ellis again visited the bank, and after an examination concluded to take Mr. Gearty's advice. To this end he informed the President that he would have a receiver appointed, and it is supposed that this functionary will take his position this morning at ten o'clock WHAT THE PRESIDENT SAYS. In possession of these facts a HERALD reporter called on Mr. Gearty, the President, at his residence, on Lextagton avenue, last night At first Mr. Gearty was indisposed to talk, but finally he gave the reporter all the Information in his possession. He recited the trials of the institution as told above, and added that he was glad that he had been able to induce Superintendent Ellis to allow the bank to move to its new quarters, as IS it had simplified matters greatly. The building, with the lot on which it stands, belongs to the institulion and are unencumbered, It is a substantial structure, and in a good market will enable the bank to realize enough to pay dollar for dollar on the $40,000 now remaining to the credit of the depositors. From the statement of Mr. Gearty it 18 to be inferred that the bank died a natural death-i e, the people drew out their moneys until what was left could not earn enough NO pay the help necessary to the proper working of he institution. THE BANK STATEMENT. The following is the report of the Central Park Savings Bank for 1875, examined December 23, 1873, by George W. Reid and William F. Aldrich, for Mr. Ellis, Superintendent:-

3. November 27, 1875 New Orleans Republican New Orleans, LA

Article from New Orleans Republican, November 27, 1875

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NEW YORK. A Savings Bank Wound Up. NEW YORK, November 26.-The Central Park Bank, a small savings institution up town, will be wound up. Suspended. The Manufacturers and Builders' Bank suspended. The liabilities, exclusive of capital, which is $180,000, are $300,000. The officers say they have sufficient to pay depositors and have a handsome surplus. Run on a Bank. There was a run on the People's Savings Bank, but the officers took advantage of sixty days' notice allowed. and closed the doors. There was a slight run on the Security Savings Bank. Arrival of the Cardinal. The Abyssinia. with Cardinal McCloskey, has arrived. He was met on the landing by a delegation of the clergy and laymen, and escorted to his dwelling. Failed. E. Waitzfelder & Co., dry goods and cotton commission merchants, failed. Oakey Hall Turned Actor. Manager Stuart's announcement that exMayor Hall would appear at the Park Theatre in a new drama is corroborated by him, and has excited much interest in dramatic, literary and legal circles. Boucicault, Harlbut and Stuart himself are said to be his collaborators. Beecher's Thanksgiving Sermon. Mr. Beecher, in his thanksgiving sermon, discussed the question of the common schools. and notably the point whether the Bible should be read in them. He declared unqualifiedly against. There is no reason, he argued, why the Jew should be compelled to listen to, or pay for the reading of the Testament, which he did not believe, why the Roman Catholic should be forced to have his children read or listen to the reading of the Protestant version of the Bible, which he did not think correct. or why, in the localities where the majority was the other way, the Protestant children should be forced in the same way to read the Douay Bible.

4. November 27, 1875 New-York Tribune New York, NY

Article from New-York Tribune, November 27, 1875

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THE NEW-YORK BANKS. NO GENERAL ALARM AMONG DEPOSITORS. STATEMENTS OF SAVIEGS-BANK OFFICERS - ONLY SMALL INSTITUTIONS IN TROUBLE-TEV DEPOSITS WITHDRAWN. To ascertain what effect the recent announcements that Superintendent Ellis had declared several savings banks in this city to be unsound, together with the disclosoure of the position of the People's Savings Bank, had produced among other institutions of the kind, TRIBUNE reporters yesterday visited the various savings banks, and conversed with their officers in regard to the matter. At nearly all of the banks it was stated that the troubles had been among weak banks, which were better out of the way. There were no indications of a panic of any kind, and depositors showed no disposition to "run" on the banks. At some places it was remarked that a few persons had closed their accounts. but very little money had been paidout. In one or two cases the officers inqured with eager interest what was said at the other banks, but all preferred personally to feel no auxiety. At the Irving Bank, at No. 96 Warren-st. the officers said that they had paid out only about $1,300 during the day. They did not think that any large amounts would be drawn, If at all, before next January. At the Seaman's Bank at No. 74 Wall-st., the cashier stated that the suspensions and rumors of failures had produced no effect whatever on that bank. No real failures had occurred. Some of the weak banks had been unable to pay the expenses of keeping open, as in the case of the Central Park Bank, and Superintendent Ellis had ordered them to close in order to insure depositors against any possible danger. None of the old banks would be affected, and there were no indications of a general erash. Only a few new and weak banks, without proper backings, were involved. Among the banks where no deposits had been with drawn, and where no fear was expressed, were the Broadway, at No. 4 Park-place; the Emigrant, at No. 51 Chambers-st.; the Mutual Savings, in Try on-row; the Clairment, at No. 247 Greenwick-st., and the East River, at No. 3 Chambers-st. Seymour A. Banee, Secretary of the Citizens' Savings Bank, at No. 58 Bow ery, said that it had been "known in banking circles for six months that the Central Park and Peoples' Banks were in a weak condition. He thought no effect of inportanee would be produced on the older institutions. Money was plenty, and there never was a better time than the present to market securities. There had been no departure from the ordinary amount of business done since the failures were announced G.E. Coggeshall of the Bowery Bank, which is situated at No. 130 Bowery, declared that he anticipated no trouble This ban has $12,000,000 in Government bonds. He though the present laws sufficient to close any banks that were unsound, and deprecated the course of certain newspapers which attempted arouse suspicion among certain class of people who were easily frightened and might be led to withdraw there deposits when there was no occasion sor alarm. He had not anticipated the failure of the People's Bank. The Oriental Bank, at No. 430 Grand-st. was stated to be in good condition and to have done only the ordinary amount of business. The deposits were small, bu regalar. There had been no indications of a run." and when there was any pressure on any banks it was usually felt early at the Oriental Its money was invested in Government bonds, New-York and Brooklyn City bouds, and first-class mortgages. An officer of the Sixpo muy Bank at B. : eadway and Astorplace stated that at that bank as well as all others, the deposits were not quite equal to the withdrawals. The Sixpenny Bank had $2,600,000 It deposit. He thought that a bank with not more than $500,000 could BOL pay expenses. At the Bond Street Bank, at Boudst. and the Bowery, the officers said that he ree at failure 8 had been caused by the nowise policy of the Legislature in gran 1114 a large number of chart between 1801 and 1870. In 1863 a petition was presented to that body, station that the savings banks in New-York were suidelent in number to supply all the wants of the population, and reque that no more 101 charters should be granted. In spite of this, in the lowing six years 15 new cuarters were granted. Avali of the following banks substantially the same statement was made, namely, that the failures had prin duced no general effect, and none was looked for. 11 was thought, however, that the ne spapers migrt bause "run" in certain quarters, but in reality this was of adv intage to the banks. as the depositors would clus lose the interest which was due, in some cases since July and in others since October Metropolitan, at Thard-ave. and Seventhst.; New-Aunsterdam, at No. 215 Bowery Tomonia. at No.25 Avenue A German, at Fourth-ave and Fourteenth-st.; E:eventh Ward, at No. 107 Avenue C: Mocnapics and Traders' No. 283 Bowery The officers of the Manualtan savings Institution, at No. 644 Broadway, had nothing to committee mucata to the public. Their baux they said, was sale. for officers 01 fae Frankin Savings Bank, at No. 638 Eighth-ave say that they have prepared with funds foresaw that They emergency. any meet to there might be trouble. and took 11.14 timely peccatution. The Chicon Savings Bana, at No. 244 have, examtued on saturday last by the band examiners, who, tue oliteers state, found every and sat .Stuctory The Controller of the Biecker Street Savings Bank assure d the reporter that DOLL the officers all we public the utmost confidence lu this Dank The secur use are well invested and available. Most of their depositors are domestic servants. The Hourstary of Lae West Side Savings Bank says that institution less expense any our bank in the city. real estate. has sude 01 Kiags County, Rochester, Broval 11, and New York iu anned was this month Solar we TOTAL deposits amount 125,11,259 53. The Treastites 01 the Greenwice savings Bank, at No. that has Bank were 111g their rounds, and be und received Hotilcaston that they would DO there in a ICW days. lie them tuo mori xaminers be 1.00 during his 40 year with the bank. Walao, secretary of the Exceision Savings Bank, is that states Bixth-ave 374 No. as always doing a close, conservative business and has whatever was required without previous notice allowed by charter. law collects a 'un oil in likem good rather that love are receiving as much 10r deposit us Lacs are paying out. Yesterday was a FOOD an for receipts. North River Savnugs Bank, at No. 174 Eiginiave., a low or the depositors. evidentiy becoming signtened at the reports of brozen yes terlay drew toon money our, but the obtacts seel 110 to are that ready they as tuey for atard, cause meet Hinergency. Amount base were especial Twenty-toird-si and tue West side Savings Data de No. 154 sixthare The general complaint among the bank officers is that money taken 10 now cannot be invested at good advatilarge. Tue stagnation business and small demand money, also lin new rate of premium for 111.4 seven per cent, mast it improntable to purcasses curtifies except as permanent investments. are law obliges them in keep 10 per IN OF their be meet any emerge ney, and in order to do this they are obtised to 1000 that amount on cali, or take in ill such co.laurais as they can use, which in very low cases pays them more than turee per cent. SUSPENSION OF A STATE BANK. WILLIAM A. BUILER APPOINTED RECEIVER OF THE MANUFACTURERS AND BUILDERS' BANK-THE

5. November 27, 1875 The Daily Dispatch Richmond, VA

Article from The Daily Dispatch, November 27, 1875

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Bank 10rm. New YORK, November 26-The Central Park Bank, a small savings institution up town, is to be wound up. The Manufacturers and Builders Bank has suspended. There was a run on the People's Savings Bank to-day, but the officers took advantage of the sixty days' notice and closed their doors. There was also.a slight run on the Security Bank.

6. November 27, 1875 The New York Herald New York, NY

Article from The New York Herald, November 27, 1875

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Total $92,778 Since the above report was made the complexion of affairs materially changed, and it appears that at the time the new building was occupied the whole of exthe depositors' money had, with the ception, perhaps, of $5,000 or $6,000 in cash, been sunk in the building. With regard to the building and the manner in which the bank was run, the story is better told in the words of the Bank Superintendent, Mr. Ellis, who, in conversation with a HERALD reporter last night, said substantially as follows:"it was by my order that the Central Park Bank closed. I have known for some time that they were not in a condition to go on with their business, and I applied for the appointment of a receiver. This not being done, I perempThe torily ordered the bank to be closed up. way in which my attention to the condition of affairs was called is as follows: When the new building was completed I was applied to by the president for permission to allow the bank to move to its present location. Knowing that the business usually done was but small I did not see what they wanted to change their offices for. I came on to New York and began an investigation, when I found that the bank had purchased the lot at the corner of Forty-eighth This street and built the present edifice. was the first intimation I had that they had begun building. The property had been bought and the building erected with THE DEPOSITORS' MONEY, which amounted to somewhere about $40,000 or I $45,000. The total cost of the building and lot was, believe, about $76,000. On this sum was paid $40,000 and a second mortgage given for the balance to Mr. Gearty, the President of the bank, who built the house. The first mortgage was, of course, held as security for the depositors, I found that there was existing, even looking upon this security as good, a deficiency of between $5,000 and $6,000, and until that was made good refused to sanction any removal, while at the same time I The had almost determined to close the institution. President finally said he would make up the deficiency himself by writing off from his second mortgage the sum of $5,000, and giving one to the bank for the same amount, which he did. This made the bank apparently straight on paper, that is to It say, the depositors had security for their money. was then said that it would be a saving of the $2,000 a year rent which the bank was then paying if the removal was made, as they had on their hands the new building and might as well occupy it. at last gave my consent, and after this removal was effected. some two or three weeks since, I continued to frequently look after the bank. Finding that the depositors were gradually withdrawing deposits, the money for which was furnished by the $5,000 or $6,000 held back when the $40,000 was paid, 1 determined to close the matter." A SINGUEAR FACT will be noticed in the above statement, which is that Mr. Gearty should not only act as President of the bank, but be the builder of the premises, while at the same time he is the second mortgagee, and paid himself the $40,000 out of the moneys entrusted to him for safe keeping by the depositors. Mr. J. W. Carey, the Vice President, has, it is understood, been busily engaged in doing the painton the building, inside and out No doubt these model ing officers thought it but right that the money spent the should be retained and divided for the benefit of brotherhood. The only wonder among banking people generally is that the Central Park Bank was not closed long since, for it has long been talked of What portion of their a deposits the unlucky depositors will ever get back is problem difficult to solve. The dividend will in all proba- be bility be not more than thirty per cent, and it may even very much less. THE SECURITY BANK. The practical stoppage of the Security Savings Bank took every one by surprise yesterday morning, for it was looked upon with great favor and confidence. inPeople at first refused to credit the fact, but when quiry was made at the office no further doubt existed. There they found posted on the glass partition enclos ing the clerks' desks the following cards:NNNNO This Bank will decline to receive deposits or 2 2 pay drafts until an examination which has been re {quested shall have been made by the State Superin tendent. Mr. Ellis, the Bank Superintendent, was present 2 at the bank this morning and states that he has every confidence in the solvency of the bank, and that any statements purporting to have been made by him regarding the appointment of a receiver are without the slightest foundation. He will ex amine the bank on Monday. ONNAMI Mr. Commissioner D. D. T. Marshall was on hand throughout the day, and, in answer to all inquiries, stated in the most emphatic terms that there exists no ground for any apprehension of loss to the depositors. Every claim would be paid in full. The trustees, he said, had simply determined, In order to avoid a run on the bank, to not receive any more deposits and to avail themselves of the sixty days' notice required by law to be given e by the depositors before withdrawing their money. , This course will be followed until the Bank Superin tendent has made an examination into the bank's affairs. "This is, of course, a practical suspension, but leaves us in a position," " said Mr. Marshall, "to go on or wind up, according as the official examination shall determine our exact condition. The securities are all first class, and will fully realize all they are set down for on was the books." This fact, it may here be mentioned, afterward verified by the reporter by inquiries made that in other quarters Indeed, it is the general belief mapk is Able to DAY every one, There, however.

7. November 27, 1875 The New Orleans Bulletin New Orleans, LA

Article from The New Orleans Bulletin, November 27, 1875

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[CONTINUED FROM FIRST PAGE.] Panama, Nov. 17.-Everything quiet. The people have resigned themselves to the provisional government. President Arosemena has gone into the interior. NEW YORK, Nov. 26.-The Central Park Bank, a small savings institution up town, will be wound up. The Manufacturers' and Builders' Bank has suspended. There was a run on the People's Savings Bank, but the officers took advantage of the sixty days' notice allowed, and closed the doors. There was a slight run on the Security Savings Bank. Cardinal McCloskey was met on landing by a delegation of the clergy and laymen and escorted to his dwelling. QUEBEC, Nov. 26.-One of the survivors of the Magdalen fleet says six vessels were lost, and only seventeen out of sixty-two persons were saved. BOSTON, Nov. 26.-The creditors of Lee & Shepard have accepted twenty-five cents on the dollar, payments to be made in eight instalments. VIRGINIA CITY, Nov. 26.-The new Ophir mines commenced hoisting from 1300 feet level. SAN FRANCISCO, Nov. 26 -Benj. F. Gentz, of Boston, and Chas. Knight and wife, of Waltham, were lost on the Pacific. The schooner Sunshine, hence for Coos Bay, is ashore. bottom up, at the mouth of the Columbia River. It is reported she had thirty passengers and a crew of ten men; all are supposed be lost. Philadelphia, Nov. 26.-In the case against the President of the Bank of the Republic for $500 penalty, for refusing to allow Supervisor Tutton to search the bank for misstamped checks, the Judge said the Supervisor was not the proper officer to make the examination, and a verdict was rendered for defendant. FLATBUSH, N. Y., Nov. 26-In an altercation one woman killed a child in the arms of another woman, with a poker. MILFORD, Pa., Nov. 26.-The barn and sheds of Wm. Garrison were burned with LA three cows, a valuable horse, and a tramp who slept in the barn. MILFORD, PA., Nov. 26-The small-pox has broken out along the Hudson and Delaware Canal. The company have quarantined all boats showing the least symptoms of the disease. TOBONTO, Nov. 26.-Ex-Alderman Clement has been arrested for complicity in the muider of Miss Gilmore, for causing her death by abortion, and for which Dr. Davis and wife are now under sentence of death. 1 ATLANTA, Nov. 26.-Ten days ago the Gov. 1 ernor required State Treasurer Jones to make in a new bond; the time expired last night, and ] Jones having failed to file the bond, the office became vacant by the operation of the law. The Governor reserves the appointment of a 1 successor until a future day. Treasury business is done through the Controller's office A until an appointment is made. NEW YORK, Nov. 26.-Manager Stuart's ani nouncement that ex-Mayor Hall would appear at the Park Theatre in a new drama is corroborated by him, and has excited much c interest in dramatic, literary and legal circles. t Boucicault, Harlbut and Stuart himself are o said to be his collaborators. LITTLE Rock, Nov. 26.-The Senate passed 8 a bill changing the name of Clayton county I to Clay.

8. November 30, 1875 The Cincinnati Daily Star Cincinnati, OH

Article from The Cincinnati Daily Star, November 30, 1875

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LAST EDITION. New York. Old Winter-0'Conor-Savings - Banks-Must Hang. NEW YORK, Nov. 30.-The weather this morning is the coldest yet experien ced here this season. The air is sharp and biting and a bitter wind prevails. The cold is felt more intensely from the fact of the sudden change in the atmosphere. Yesterday morning the thermometer indicated 40 degrees above zero. Last night it had fallen to 25 degrees above and at 8 o'clock this morning had dropped to 10 above, and is still falling towards zero. The Savings Bank failures had no appreciable effect on a majority of the city savings institutions. All the banks are paying on demand, and the officers of the large banks state that there will be no necessity for a combined movement to adopt the sixty-day rule. The tailures last week do not appear to have shaken public confidence, and there has been nothing like a run attempted an any of the banks. The suspended Security Savings Bank will probably pay in full, the Peoples' Bank 50 per cent., and the Central Park Bank at least 60 per cent. Judge Barrett to-day denied the motion for a stay of execution in the case of Charles Weston, William Ellis and William Thompson, the murderers of Abraham Wissing. They will be hanged December 11. CHARLES O'CONOR. NEW YORK, Nov. 30.-Charles O'Conor, the criminal lawyer, whose critical illness at his residence at Fort Washington, as announced yesterday morning, was still alive last night, but no hopes are entertained of his recovery. The exact nature of his disease has not been clearly defined. The stomach, however, is the seat of all his trouble, and for several days he has been unable to take any nourishment. His physiciaus, after consultation, informed him that he can not survive, and he awaits with calmness and fortitude his approaching dissolution. Cardinal McCloskey has administered to him the last rites of the Roman Catholic Church. He is over seventy years of age. His wife, who was an Episcopalian, died two years ago.

9. November 30, 1875 Los Angeles Daily Herald Los Angeles, CA

Article from Los Angeles Daily Herald, November 30, 1875

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EASTERN NEWS. New York News. NEW YORK, November 29th.-Information from Fort Washington received late this afternoon states that Charles O'Connor is alive, but very low, and his physicians say he cannot live over night. The Savings Bank failure has had no effect on the majority of the city savings institutions. To-day all the banks are paying on demand, and the officers of the large banks state that there will be no necessity for a combined movement to adopt the sixty days rule. The failures last week do not appear to have shaken public confidence, and there was nothing like a run attempted on any of the banks today. The suspended Security Savings Bank will probably pay in full, the People's Bank fifty per cent., and the Central Park Bank at least sixty per cent. Judge Barrett to-day denied the motion for a stay of execution in the case of Chas. Weston, Wm. Ellis and Wm. Thompson, the negro murderers of Abraham Weisberg, and they will be hanged December 18th.

10. December 1, 1875 The New York Herald New York, NY

Article from The New York Herald, December 1, 1875

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the protection of themselves and the depositors generally. are many of them having from $3,000 to to $5,000 leave There who promise, if the bank resumes, twelve months, on deposit deposits untouched for at least generally appear their no interest. The depositors ought to be and draw confidence in the bank. There that the Third to have do a good business now the avenue room Avenue for and it to the other weak institutions on have been closed up. THE PEOPLE'S BANK certainly go into liquidation. The of prospect their deposits of the will depositors getting over fifty worse per every cent day. The officials appears to notified be getting the Attorney General that to they show did to answer the a receiver should not be not yesterday intend why order appointment appointed, cause and were only now awaiting his THE MUTUAL BENEFIT BANK. There was nothing new developed in regard hold to formal this yesterday. The trustees will a will institution meeting to-day and determine what their action be in reference was nothing to the new bank. to recount touching it the is Cen- still There Park Bank yesterday The depositors, who will, tral thought, will be paid in full by the trustees, lot. it is asserted, take over TRADESMEN'S the building BANK. and THE Berry, President of the Tradesmen's that Mr. Richard called upon, and said substantially such this as Bank, was when the conditions in business are were more is a time cause alarm than if they the crops, to more readily lively. With the coming in of entire counhealthfully which are heavy throughout will the be healthful, however, will be found that the effect With the retry, it business will be better. will proband that of banking returns on the crops an impetus generally, and ception be given to business operations for alarm. The cause ably then there will not troubles be any has cause been greatly through has been the of the present of values, which shrinking indisposition shrinking of a very general to embark the cause of business men their on the new part enterprises, or, in fact, now to enlarge engaged. I operations in any in those in which have they many are other officers of banks, have, however, hopes that and the so bottom has will been soon reached be upward or nearly so, and that depth the of progress the depression had fail- not again. reached the effect of nearly have been far more been. Their tendency even now, at all been ures would If the these disastrous however, pleasthan it has confidence. And it is a conditions not exist is to destroy of the case to know that the can be recognized ant view are the same as home and ing here with us business world to-day at prothroughout abroad. The the trouble everywhere has I have, been over however, duction in, I may early say, everything. future. am one of banks. those who The I confidence believe that in we the have too has many been greatly savings overdone, and of savings believe bank that business the influence of The a superabundance banks that have such banks were gotten is detrimental. up, I believe, and take simply the to furnish poor sinecures failed for friends for pecultar uses. banks There in this city are people's 70,000,000 money deposited in the savings This enormous amount and $40,000,00 the in Brooklyn. savings banks, causes, at people, times, very and serious in the hands apprehensions of on so the many part of of these the mushroom is, receiving should particularly when we have their money. There be greatly concerns no reason why the public great shrinkage and else- we alarmed. however, There failures. has been Money a IS plenty there here is a drug and as it must expect Look at London. Money on call. These failures, then, are is where. here, even no indication two per of cent general weakness, and should not be so considered. MERCHANTS' EXCHANGE BANK. the Merchants' THE Exchange found, Bank, and the inquiry President, was Mr. At William A. Thompson, the main the was same as those be above feared remade of him in said that nothing was recognized to as ported. He the banks that are banks belongin any founded, of or any of the The trouble has well to the Clearing little House. irregular banks, that business they been, ing said he, with the to do both a savings complications bank in have been trying banking business. The ago. We all a general banks began long and these method was State Senate I and that peculiar the was in the wrong, have passed while that saw ex-Mayor Tieman him present and a bill endeavored to the have evil. He said he generally wanted througha bill to correct the banking business drew such a bill, out the State, get him to present do business but we could never banks should York would apply to and 1, with others, it. Our desire State that States stocks, the large only was on United savings and those of New get cities Now, a stocks and securities, at the time we could not rule by which in the State, in but this bank we have a received from it when sued and its account to has been here debt, with us we there charge is nothing That profit and on loss, an and execution it 80 appears for in thirty our reports years. When can be the state- relied rule of this the bank bank appears it I may say, in addi- of ment upon it of as being full nothing and accurate. in the condition known of any at the tion, that there is and deposit that are the banks of issue that need cause any few of In fact, there have York been that have Clearing House apprehension very even the the to banks of the stockholders to pay of but one any called one. on their city banks. of New I know really and, any perhaps of inliabilities of their the Knickerbocker, sure of that. stance, and that was Ocean, but I am not quite never been any I might add, old the savings banks there has large surplus. the The Bowery has a gone were trouble. banks that are follow proper value of With all The not very the rules institu- the in tions that did failed to recognize the older and banking. They business adopted were by therefore not of experienced of doing concerns, financial and institutions. For any healthful the Bowery Bank premium for instance, system more when account as buys United States them, the to government bonds and bonds, pays they a are entered goes down on or other government at par; the additional clear price understanding as of a books and simply loss That rule and gives is universally recognized would, if profit the bank's condition, banks while perfectly the market good, suddenly, forced to put their loss, and therefore as intending do good so one. at a serious Many banks securities that are on reported allowed it is possible for settle- that un- to some of the or the sixty save days themselves from able to 80 take ment, advantage may do so simply not because to they conditions are not are not seem pay, with so bad banking as they conditions may and rules. necessary that loss, even and in such cases to such the as are not familiar

11. December 2, 1875 The Wheeling Daily Intelligencer Wheeling, WV

Article from The Wheeling Daily Intelligencer, December 2, 1875

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Bank Failures. Our dispatches this morning announce the suspension of the Bank of America at New Orleans. The directors have resolved to put the bank in liquidation. The cause of this necessity is not stated, but no doubt it is the old, old story with which the public are made daily familiar, viz: reckless management, favoritism to unsafe borrowers, and perhaps the payment of large interest to depositors. This is the story that we are hearing now in regard to certain Savings Banks in New York, a number of which have been examined lately and found wanting. Four of these banks are now in the hands of Receivers, the Security, the Mutual Benefit, the Central Park, and the Manufacturers' and Builders'. The New York Herald gives currency to the rumor that Supt. Ellis; of the Bank Department, is about to close up eight or ten more. There is no general alarm in the city, and the credit of none of the larger banks has yet been attacked. The columns of the New York papers are full of the most unpleasant disclosures. The officers of the Central Park Bank, in order to make a good showing, were in the habit of putting in their own checks to the aggregate of $60,000 before making their quarterly reports. After the reports were made the deposits were withdrawn. The trustees of the bank began the erection of an elegant brownstone building, although they had but $50,000 deposits. One of the Trustees took the contract to build the bank, and another to paint it. The deposits are all gone, the building stands incomplete, and is mortgaged to the Trustees for $40,000. Could Credit Mobilier further go? In the Mutual Benefit Savings Bank there is a deficiency of at least $22,000; in the Security Savings Bank the deficiency reaches $23,000. The Trustees of these institutions have been compelled to give bonds to protect the depositors. The most unpleasant feature connected with these failures is the fact that the State Superintendent of the Bank De partment as recently as Oct. 12, certified that the Manufacturers' and Builders' Bank had $180,000 of assets beyond its liabilities. It now turns out to be about $80,000 short. The Herald publishes the certificate of Superintendent Ellis in full It is accompanied with all the official trappings of seals, and depositions, and must have looked to the depositors-before whom it was of course kept in a magnificent gilt frame-as true as Gospel. The contrast between this certificate and the truth will do more to hurt Superintendent Ellis' reputation than can possibly be made good by his procrastinated efforts now to clean up the savings banks. The occurrence illustrates the dangers of the system of examination. Secretary Chase, scenting the frauds, which it has made one of his successers famous to have exposed, once asked a body of scientific men if they could not invent for him a metre that would measure and register with infallible accuracy the flow of spirits from a vat. They could, was the reply, but they could not invent a man honest enough to report infallibly, the infallible register. This is the trouble with such systems as that of the examinations of savings banks. Who is to examine the examiners?

12. December 23, 1875 The New York Herald New York, NY

Article from The New York Herald, December 23, 1875

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THE CENTRAL PARK BANK. To THE EDITOR OF THR HERALD:Will you kindly give space in your paper to these few remarks concerning the Central Park Bank, Fortyeighth street and Third avenue? When that institution failed it was intimated through some of the daily papers that the Trustees were about making good to the depositors whatever the deficiency might be. Yet there seems to be nothing done in the matter by them. There has been a receiver appointed by the State about two weeks ago, and yet no statement appeared to show the condition of the bank. I think is IS time that the depositors should take action in the matter and have it thoroughly invostigated. AN EAST SIDE DEPOSITOR. DECEMBER 1875

13. June 12, 1876 New-York Tribune New York, NY

Article from New-York Tribune, June 12, 1876

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# SAVINGS BANK TRUSTEES. Bank Superintendent Ellis estimated that the unfortunate depositors in the six savings banks which failed last year in this city would recover three-fourths of their deposits. The dividends which the receivers are slowly pay- ing, as well as the revelations which followed a close scrutiny of accounts, indicate a lower figure. But the actual loss of money, con- siderable as it is, represents only a portion of the injury inflicted on depositors. A large proportion of them had laid aside their money, not with an indefinite idea of saving it, but for specific purposes. The mere delay, even if the bank could pay in full, would be to them a serious matter. Anxious, needing their money for some emer- gency, these people cannot wait. They sell their accounts to brokers at a sacrifice meas- ured by their fears and necessities. Among them there are many who will never again deposit in a savings bank. They would rather, they say, squander money themselves, than give it to others to squander. They become mission- aries of this bad doctrine, and discourage others who might otherwise lay aside their savings. The failure of one of these banks is felt not only at the time, but indirectly for months afterward, by the rest of the savings banks in this and adjoining cities. While a variety of circumstances contributed to the failure of the broken concerns, it has been shown that in some of them there was stealing and in others almost equally criminal carelessness. There should be little distinc- tion between the treatment of the thief who robs a till, and of the trustee who assents to acts that steal the money of a savings bank depositor. Until the passage of the general act of 1875, there were several grave defects in the laws and charters of savings banks. They could put up extravagant buildings with- out regard to their means; and as a specimen, the Central Park Bank, with deposits amount- ing to about $40,000, invested $76,000 in a lot and banking house. Superin- tendent Ellis characterized the perform- ance as a piece of "corporate stupidity, "approaching the marvelous." They could invest their "available fund" in al- most any sort of securities; and the Third Avenue Bank showed what the law did permit by lending hundreds of thousands of dollars on the stocks of the Atlantic and Pacific Mail Steamship Companies with a slender margin. They could cover up their deficiencies by the hocus-pocus of fraudulent bookkeeping and false statements, and, when trustees and offi- cers made oath to these lies, a way was found by shrewd lawyers to protect the false swearers against the penalties of perjury. Let us hope that the trial of that case will not end there. The trustees who winked at wrong cannot plead ignorance. It was their business to know. Failing to find out the actual condition of the funds in their safe-keeping, they became part- ners in the crimes by which those funds were stolen or lost. The trustees of the older savings banks had a very different idea of their duty from that which has obtained in many of the younger institutions. When the first savings banks were organized in this city, their trustees set forth in their applications for charters that the banks were designed to cultivate habits of thrift among the poorer classes; to invest their money for them to the best possible ad- vantage; and, in short, that the aims sought were purely benevolent. Those respectable old merchants who undertook the task of founding our first savings banks gave their own personal labor, absolute clerical toil, for years, without reward. The notion that a bank might be formed to give employment to a real-estate lawyer in searching titles, and to provide salaries for officers and clerks who would otherwise be a burden to their families or their party, had not yet dawned upon the community. It was one of the discoveries of the Ring era in this city. Here and at Albany that era was marked by a succession of efforts of politicians to get con- trol of savings banks' funds. The banks that were then created would have had a hard time since, even if well managed. The rate of in- terest on the investments to which they are now restricted is, at present, below that which the savings banks are paying to their depositors. The surplus which the older banks possess yields them an additional income from which they can pay nearly or quite the old rate of interest to depositors; but the younger banks are severely strained by the competition. Until there is more activity in business and the price of money rises, this strain must continue. There has never been a period when the best of management was so imperatively required of savings bank trustees; there has never been a period when carelessness on their part so deserved the penalties of crime. "GONE ON A VISIT." There was an amusing morsel of news in the morning papers the other day; and much longer