Citizens Bank - New York, NY

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: September 23, 1873
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 0521f83b

Response Measures

Accommodated withdrawals

Description

Article (The New York Herald, 1873-09-23) describes a heavy run on Citizens' Bank. The bank continued to pay depositors (small sums under $1,000 paid), issued certificates for large deposits, remained open late, and there is no mention of a suspension or closure. Cause appears to be general 'scare' and rumors.

Events (1)

1. September 23, 1873 Run

Cause: Rumor Or Misinformation
Cause Details: Depositors acted under a 'scare' and rumors about safety; widespread nervousness prompted withdrawals.
Measures: Paid sums under $1,000 as able; issued certificates in lieu of paying out largest deposits; kept open late; stationed police to preserve order.
Newspaper Excerpt: was solvent, and, being assured of this, they did not draw their money. A few people, who had come under the influence of a scare in the early part of the afternoon, and drawn their money... The bank officers say that they looked upon the action of the great bulk of their depositors as very foolish.
Source: newspapers

Newspaper Articles (1)

1. September 23, 1873 The New York Herald New York, NY

Article from The New York Herald, September 23, 1873

Click image to open full size in new tab

Article Text

was solvent, and, being assured of this, they did not draw their money. A 10w people, who had come under the influence of a scare in the early part of the afternoon, and drawn their money, and who then went away, subsequently returned and again deposited their money. The bank officers say that they looked upon the action of the great bulk of their depositors as very foolish. They did all they could to assure them that the bank was perfectly solvent and abundantly able to pay every dollar that might be demanded, but they did not desire to pay the largest deposits. Sums of less than $1,000 were paid as fast as the corps of assistants were able to prepare them. There are about $8,000,000 deposited in this bank. The bank officers say that they will continue to pay as they were paying yesterday, but should the other savings banks agree on a united action the Citizens' Bank will be in tull accord with them, and will act in harmony with them. The bank kept open until seven o'clock last evening. Up to that hour the crowd continued around the buil ding, and became an object of attention for all the passengers in the cars travelling up and down the Bowery. The Bowery Savings Bank. There was a long and a strong run on this bank during the entire day. The bank offices were crammed, and the street in front of the building was thronged with anxious groups of people. As in the Citizens' Bank police officers were stationed in the building and outside of it to preserve order. The rush was constant and threatening. More than at any other banking institution in the city depositors flocked here, as rumors had been rile relative to the run upon it. The stream of people wanting to draw their money was continuous, and last as the clerks could supply it the money was placed on the counters. The facility with which anxious people were supplied with their accounts helped to send many others away who had been in serious trepidation as to the safety of their savings. The principal officers of the bank stated that it was with great. regret they saw depositors acting so foolishly, as, of course, by drawing their money they were losing the three months' interest. They stated, furthermore, that they intend paying as long as depositors appear to demand their money. They do not, however, intend to pay in cash the largest amounts on deposit, for this could not possibly do any good, but to those who have very large deposits in the bank they give certificates, which, IOr all business purposes, are just as good as the money. In this way they mean to continue until'the run ceases. They had no fears whatever yesterday as to the result of the run upon the savings' banks, and anticipated that to-day would see the end of it. The bank had a rull reserve on hand yesterday morning, in all about four hundred thousand dollars. The total deposits amounted to about nine hundred and fifty thousand dollars.