15624. Citizens Savings Bank (New York, NY)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
savings bank
Start Date
September 23, 1873
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
4db357d6

Response Measures

Accommodated withdrawals, Partial suspension

Description

Newspapers report a heavy run on Citizens' Savings Bank on Sept 23, 1873; officers paid limited demands and then enforced the statutory notice rule (effectively restricting withdrawals) on Sept 24. By Oct 2 the bank had resumed payment of all deposits on demand. Cause of the run and consequent restriction was circulating rumors/nervousness during the 1873 financial crisis.

Events (3)

1. September 23, 1873 Run
Cause
Rumor Or Misinformation
Cause Details
Run began after rumors circulating Sunday; anxious depositors rushed the bank seeking withdrawals.
Measures
Paid demands below specified limits (initially paying demands under $1,000; police stationed; later bank enforced notice for larger amounts).
Newspaper Excerpt
The Citizens' Savings Bank ... had a heavy run on it. ... the spacious offices were filled with anxious people, clamoring for their money.
Source
newspapers
2. September 24, 1873 Suspension
Cause
Rumor Or Misinformation
Cause Details
Officers enforced the statutory notice requirement (30/60 days depending on amount) to stem withdrawals after the run; effectively suspended immediate full payment for larger sums.
Newspaper Excerpt
At this bank the rule requiring notice of intention to draw deposits was strictly enforced, and no moneya were paid out at all.
Source
newspapers
3. October 2, 1873 Reopening
Newspaper Excerpt
Several of the savings banks have resumed payment of all deposits on demand. Among those who have done so are the Citizens', Manhattan, and German Savings Banks.
Source
newspapers

Newspaper Articles (5)

Article from New-York Tribune, September 23, 1873

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Article Text

THE SAVINGS BANKS UNHARMED. SEVERAL TEMPORARY RUNS-GENERAL RESTORATION OF CONFIDENCE. Among the savings banks there was little variation in yesterday's business as compared with that of Friday, Saturday, and many previous days. A few of them alone experience anything like a run upon their deposits, and these not to such an extent as to excite anyapprehension as to solvency. All were seemingly prepared for the worst, and were most agreeably disappointed as the day passed on without any invasion of moment upon their cash assets. In anticipation of a general run, members of the police force had been assigned to duty in the different savings banks, and most of them had an easy task. The German savings banks were particularly quiet, a president in one instance informing a reporter that his bank had money on hand for any of his neigh bors who might be pressed. At number of the banks the rule requiring notice of the withdrawal of deposits over a stated sum was strictly enforced, the amount varying, and it is a somewhat singular fact that those meeting all demands were the only ones, with one or two exceptions, upon which there was any considerable run. EAST RIVERSAVINGS BANK. At the East River Savings Bank, on Chambers-st there was no variation in the usual business of the day President Whitney stated that during the morning a number of deposits had been withdrawn. and likewise a large number received, in neither case to such an ex tent as to excite comment. He knew nothing of the action taken by some of the savings banks' officers Sunday evening, and could not agree with them that any particular distinction at this time should be made in the withdrawal of deposits. His bank was paying all demands without regard to notice given. EMIGRANT INDUSTRIAL SAVINGS BANK. At the Emigrant Industrial Savings Bank a considerable amount of money was withdrawn during the day. Soon after the opening of the bank a large number of the depositors assembled, and the line formed to the paying teller's windows found constant accessions during the day. Controller David Ledwith stated that they were meeting all demands without regard to amount or notice, and apprehended no difficulty in continuing to so. Indeed, the present run was not 80 extensive as they had anticipated and had made preparations for. They were led to believe that it would be of short duration. The bank statement of Jan. showed an excess over liabilities of $790,129 The majority of those closing their accounts had comparatively small deposits, 80 that the amount paid out was not large. ATLANTIC SAVINGS BANK. At the Atlantic Savings Bank, on Chatham-st. there was no excitement; still. as a precautionary move, the officers have adopted the plan of requiring sixty days' notice in the withdrawal of all sums of over $100. CITIZENS'(SAVINGS BANK. The Citizens' Savings Bank experienced something of a run during the earlier port of the day. but before closing this had almost entirely subsided. They are paying all demands under $1,000. requiring notices for larger amounts. Those in the line early in the day were mostly new depositors, the older and heavier ones having perfect confidence] in the bank. President Quintard remarked, as an evidence of the class now withdrawing their deposits, that up to p. m. probably not more than $25,000 or $30,000 had been paid over the counter. He was satisfied that no extensive run need be anticipated, but was well prepared to meet all demands. ORIENTAL SAVINGS BANK. Everything was as quiet as usual at the Oriental Savings Bank, on Grand-st. President Buckmaster stated that many had visited the bank during the day to make inquiries as to their deposits, and had departed satisfled of their security-many, perhaps, coming with the intention of drawing, and returning with only such as they required for use. In such cases no advantage was taken of the law requiring notice of such intention. As evineing a general confidence in the institution, the cashier stated that a number of new accounts had been opened during the day, and that no inconsiderable amount had been received on deposit. BOWERY SAVINGS BANK. Before the opening of the Bowery Savings Bank it was evident that a run was to be made, from the erowd of depositors that gathered around the doors. The trustees met and decided to pay all claimstor the present, believing that the run would not last long and not interfere with,the regular business. It was understood that should it continue, they should take advantage of the 60 days' notice, even then using their own discretion in the matter, and paying larger claims, to relieve suffering or inconvenience. Throughout the day and evening the steady run continued, the number at no time greatly crowding the bank. One by one they drew their deposits, losing nearly three months interest by doing 80, 80 that they alone are the losers and the bank is in no way inconvenienced. A very great many before long were convinced of this fact, returned to the bank and again deposited their money, begging that their interest might not be sacrificed. An instance of this kind was mentioned by the President. Early in the morning a woman drew about $3,000, the earning of many years. Her anxiety to withdraw it was hardly equaled by her anxiety to return it a little later, and the loss to her of the $85 interest affected her very much. The scene deterred many from following her example. The President further stated that the majority of the deposits drawn were of small amount, and that the smaller the amount the more auxious the owners seemed to be to get it, so that up to 2 o'clock in the afternoon not more than $200,000 had been paid out, and in the same proportion during the afternoon and evening. The bank had more tban 60,000 depositors. He did not anticipate any extensive run. NEW AMSTERDAM SAVINGS BANK. The New-Amsterdam Savings Bank has experienced no run from its depositors. Yesterday was a quiet day at the bank, though considerable deposits were received. President Frohwein stated that they are more fortunate than a majority of the banks in having an abandance of small bills. having $116,000 in the safe. They proposed to help the neighboring banks as far as they could, and had already done so by furnishing one that morning with $20,000 in bills on bond security. MECHANICS AND TRADERS SAVINGS' BANK. At the Mechanics' and Traders' Savings Bank it was stated that some accounts had been closed during the day. and perhaps $20,000 drawn while the average deposits had been received. There had been no run sufflclent to excite comment. NEW-YORK SAVINGS BANK. The New York Savings Bank on Bleccker-st. was surrounded by an anxious crowd of depositors from the opening of the doors in the morning. o'elock the doorewere closed, the officers deeming that there were then as many in the building as they could pay during banking hours. Probably nearly 100 were then in walt ing. Little information could be gained, further than that considerable money had been withdrawn, and also many deposits received. The officers anticipate DO trouble in meeting all demands. PEOPLE'S SAVINGS BANK. At the People's Savings Bank the cashier stated that one or two large demands had been made, in which cases they had taken advantage of the rule requiring notice. In small amounts, $3,000 or $1,000 had been drawn, and more than made up by deposits. MANHATTAN SAVINGS BANK. At the Manhattan Savings Bank a long line of depositors presented themselves in the morning desirous of drawing out their money, but the bank readily met Nee Fourth Page


Article from The New York Herald, September 23, 1873

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The Citizens' Savings Bank. The Citizens' Savings Bank, Bowery, near Canal street, had a heavy run on it. The bank officers had anticipated a trouble from the rumors that had prevailed on Sunday, and had made ample provision to meet every emergency. During the forenoon everything was quiet and no particular innux of depositors occurred. About one o'clock in the afternoon the rush began, and in a very short time the spacious offices were filled with anxious people, clamoring for their money. The police were speedily on duty in and around the building, and during the rest of the afternoon were kept busy in keeping the crowds in order. Inside, around the paying tellers' windows, long files of men and women patiently awaited their turn to be served. On the seats running along the walls numbers of depositors sat eagerly looking at the expectant files and hoping that their own chance might speedily arrive. At the entrance doors the crowd was packed so closely together that it was with difficulty the police officers could keep s passage way clear. Other crowds of sightseers gathered on the street, immediately in front of the building. The people interested in the payments by the bank were generally quiet and undemonstrative. A large proportion of those who constituted the growde age come simply tg inquire is the bank


Article from The Rutland Daily Globe, September 24, 1873

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FEW MORE FAILURES Tuesday's News, NEW York, Sept. 23. 10:15 im THE TIDAI WAVE RECEIDING Gold opened at 112. The following notice is posted until The further stock exchange orders." will remain closed The governing B.O. committee WHITE, will Secretary. meet half-past nine to-morrow. 10:50 p.m. -The excitementon the seems to be wearing itself out, appears to exist. Brokers gregated feeling and have street in front of the stock exchange. and formed a street market. all sales being for cash. The following are the quotations Central 91 and 92 bid: Lake Shore, 82 bash, and 110 50 offered: Harlem. bid: 109 bid Wit. bid: Rock Island. 88 bid: Paul, 85 bid: Ohio and Wisconsin, 30 St. I. Union Pacific, 21 and 22 bid: C. bid C. 21 bid Hannibal and St. Joseph, and 20 bid : Western Union Tel., 66 bid. 70 of Pacific Mail. 343 and 36 fered The bid. gold exchange is open and doing business as usual, gold 1141. 000 The bonds sub-treasury this morning. have purchased 83,500, The Union Trust Company are still paring a statement which they expect premake public late in the day. Noon Two millions of bonds havebeen bought Street at the sub-treasury to this hour. quotations now Ohio, 30 bid : CenWabash. 18 bid : St. Paul, 36 bid : tral. 93 Lake Sdore, 82 bid, THE SAVINGS BANKS banks 12:10 P. m. & light run on the savings is being continued. The their banks strictly adhere to the provision smaller charters which requires a notice of from tors. thirty to sixty days from heirdeposi. of The Bowery. Citizens'. Union, time Dime and Bleeker street savings bank con. to make payments up to 8100. THINGS DOWN TOWN. 12.15 P. m. There is but little more than lower the usual number of people in streets of the city, beyond the about the Stock in stocks. The gatherings are ten dickering Exchange, financial the small who presents the appearance of cen. after great manifested to have and is no lassitude, desire struggle. exhaustion the There stock exchange re-open. except by those wanting to purchase for investment. and brokers generally would like to have it continue closed during the remainder of remark among them is will materially thin number this The disaster general the out week. that the of brokers as was the case Black Friday, thus making more business with for those remaining. BONDS PURCHASED 12:30 p.m.--Gold 110 bid. The sub-treasurer has purchased 88, 100 bonds up to this hour. including Satur- 169. day and yesterday. 12. 45 P. -TheStreet quotations stocks are: Lake Shore 80: for 92: Northern Central Union Pacific S New Western York 65: Eric 58: Pacific Mail 31: Ohio and Mississippizo: Northwestern 40: Rock Island M.C.C.& L 22 St. Paul, com mon. 36 Wabash 15 ABOUT BANKS The Bank of the Commonwealth keeps its doors closed. The run on Fourth National has ceased. MORE GREENBACK Assistant Treasurer Hillhouse in greenbacks from Wash. morning. to the ington twenty this millions prevent received possi. bility of becoming embarrassed in the pur. chase of bonds, QUIET IN FINANCIAL CIRCLES 1 p.m. - Affairs are still quiet with prospect of continuing so. GOLD EXCHANGE BANK CLEARANCES of the Gold bank The clearances Exchange are complete. and the balances be paid as usual. FOOLISH DEPOSITORS Several depositor> are in line in front of the Union dime savings bank this morning, The president says they can all have their money. SMALL CROWD AT THE FIFTH AVENUE HOTEL The crowd at the Fifth Avenue Hotel last night was small and quiet. compared with previous evenings. SLOW-MOVING ALDERMEN. The board of aldermen have decided the special meeting not today, to hold called for to take action on the financial erisis. MENT. THE CRISIS OVER-PRAISE OF THE GOVERNPresident Kennedy of the Bank of Com. merce said last evening that government is doing that over. it probably The the the crisis best is can. President Kitchen of the National Park bank says that for reasons ped All the discounting only morning prudential it stop journals unite in express ing the opinion that the panic is over. AN OVER-DRAFT SETTLED. John Bonner, the banker the overdrew his account at the bank of North America to the extent of several hundred thousand dellars, has made a satisfactory settlement bank. Large orders from all over the be brokers with received the continue country to to for the purchase of stocks, so that lively bidding is anticipated when the Stock Exchange reopens. THE SUB-TREASURY yesterday declined to the of the sellers of bonds to the ernment, Gen. names Hillhouse the gov- give on ground that suspicion against the into the market to those might Some who sellers be directed rushed solvency realize of were connected with savings banks, Gen. Hillhouse has not to bonds of '81, as the dent thorized did buy been prosi- aunot believe he had a legal tight to take the bonds not yet due.


Article from New-York Tribune, September 24, 1873

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THE SAVINGS BANKS UNDISMAYED. GENERAL ADOPTION OF THE RULE REQUIRING NOTICE -SEVERAL SLIGHT RUNS, BUT A FEELING OF CONFIDENCE PREVALENT. At the savings banks matters yesterday wore a much more cheerful aspect. At most of them there was an entire want of the excitement of Monday. The agreement to require the stated notice on the withdrawal of all deposits appears to have had a most salutary effect. and, though numerous notices were given at the various banks, it seems the general impression with the officers that few will be 80 anxious to draw their deposits at the end of the stipulated time. EMIGRANT INDUSTRIAL SANINGS BANK. At this bank all demands of $100 and under were paid during the day, but in the settlement of all amounts of large sums 30 days' notice was required. At 2 o'clock the bank was deserted, as compared with Monday. President Huguet stated to a TRIBUNE reporter that the excitement seemed much abated. Few notices of withdrawal of deposits had been made, and in small suma not more than $30,000 had been paid out up to that hour. EAST RIVER SAVINGS BANK. The East River Savings Bank had, thus far, enjoyed a freedom from anything like a run from its depositors. Many inquiries had been made as to the security of depositors, and little trouble had been found in giving satisfactory assurance. Deposits were coming in and drafts were being made to the usual extent. Many now accounts were opened during the day, one of $2,000 during the visit of the reporter. The officers are making no restrictions in the withdrawal of deposits. CITIZENS' SAVINGS BANK. At this bank the rule requiring notice of intention to draw deposits was strictly enforced, and no moneya were paid out at all. A long list of notices of such in. tention was shown, but the officers are confident that this would be the last heard of them. They hoped to return to their usual custom in the payments of demands within ajfew days. ORIENTAL:SAVINGS BANK. Here all necessary money required by depositors was willingly given, but in other cases the usual notices were required. There had been few demands, and as a general rule there was still little variation in the usual banking business. BOWERY SAVINGS BANK. Only in cases of absolute necessity was any money yesterday paid to the depositors of the Bowery Savings Bank, and then only when the officers were fully assured of such want. The notice stating that during the present excitement 30 days' notice would be required upon drafts of $300 and under, and 60 days upon sums exceeding that amount, served for the time to allay all excitement, and during yesterday the bank was comparatively quiet. Through the day many visited the bank, made inquiries, and left. The pohce force found little occasion for their services, beyond dispersing the crowd of idlers that continuously gathered upon the sidewalk. President Brown, who has just returned to the city, takes a very cheerful view of affairs, and gives it as his opinion that they will not be obliged to enforce any restrictions beyond a few days. During Monday, $490,000 had been paid out, and at the same time about $90,000 in deposits received. Yesterday, many deposits were returned, and President Brown has given orders that the old deposits drawn Saturday or Monday, and returned yesterday, shall draw interest the same as if not withdrawn from the bank at all. The long line of women yesterday at the windows of the m ceiving tellers was encouraging evidence that they at least had recovered from their momentary excitement. As conclusive evidence of the stability of the bank. it is


Article from Public Ledger, October 2, 1873

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LATEST TELEGRAMS. AMERICAN PRESS ASSOCIATION. VIA S. P. AND A. TELEGRAPH COMPANY. Specials to the]Ledger. NEW YORK. New YORK, October 2.-A pleasant dinner was given to Wilkie Collins, the famous author, at the Century Club, last evening. Sixty or seventy guests, mostly men of letters, journalists and artists, residents of New York, were present, including Park Godwin, Dr. Prine, M. Marbury, John Harper, Whitelaw Reid, Professor Drissler, Jas. Parton, Bret Harte, John Hays, R. Stoddard, Carlton Lewis, E. C. Studmon, Thomas Nast, and others. Speeches were made by Collins, Nast, Prine and Godwin. The Liberal Republican primaries held a meeting last evening to elect three delegates and three alternates from each assembly district to the Liberal Republican State Convention at Elmira October 8th. The business of the up town savings banks has steadily increased since the early part of this week. None of the officials anticipate & recurrence of the panic at present, and a run on the banks is not likely to be renewed. A large proportion of the deposits withdrawn during the,exeitement have been redeposited. Several of the savings banks have resumed payment of all deposits on demand, being confident that the excitement is at an end. Among those who have done so are the Citizens', Manhattan, and German Savings Banks. The prospect in Wall street is brightening daily. Money is returning rapidly to the coffers of the large banks, and the demand of National and State Banks for currency and discounts now receives prompt attention. Foreign exchange is easier, and the crops which were blocked up in the harbor are already moving across the ocean. It is generally reported that a large number of railroad shares have been absorbed by legitimate investers at panic prices, transferred to the names of the owners, and carried out of the street.