Continental National Bank

Bank Information

Episode Type: Run Only
Bank Type: national
Bank ID: 1389
Charter Number: 1389
Start Date: September 24, 1873
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: aaa99cdf

Response Measures

Accommodated withdrawals

Description

Article (New-York Tribune 1873-09-24) reports a telegraphed false report that the bank had suspended which produced a 'tremendous run by letter' from out-of-town depositors. The bank met all calls and remained open, so this is classified as a run only driven by misinformation.

Events (3)

1. July 5, 1865 Chartered

Source: historical_nic

2. September 24, 1873 Run

Cause: Rumor Or Misinformation
Cause Details: A false telegraphed report circulated that the bank had suspended, prompting out-of-town customers to call in deposits.
Random Run: Yes
Random Run Snippet: false telegraphed report that the bank had suspended
Measures: Responded to all calls, paid out deposits to meet demands, planned to liquidate out-of-town indebtedness.
Newspaper Excerpt: a report had been telegraphed all over the country on Saturday that the bank had suspended; and the result was that their out-of-town customers were calling in their deposits. There had been a tremendous run by letter telegraphal...
Source: newspapers

3. May 25, 1901 Voluntary Liquidation

Source: historical_nic

Newspaper Articles (1)

1. September 24, 1873 New-York Tribune New York, NY

Article from New-York Tribune, September 24, 1873

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Article Text

PRESSURE UPON THE BANKS. CURRENCY EXCEEDINGLY SCARCE-DEMANDS FOR LOANS POURING IN FROM THE COUNTRY-THE CROPS MUST BE MOVED. upon of the downtown to ascertain their viewa. A reporter the banks Presidents of THE of TRIBUNE many called, leading The yesterday, questions asked had reference chiefly to the demand for loans from city customers and e drain from banks out of town. The reporter found a marked difference between the banks doing business for the brokers and those transacting a strictly mercantile business. Money was scarce everywhere, and discounts could not readily be obtained. The best commercial paper was offered at two per cent a day, but the money could not be had. OUTSIDE DEMAND FOR LOANS. W. K. Kitchen, President of the Park Bank, told the reporter that the calls on the bank were not very great from the city, as they paid large amounts only on certified checks from the Clearing-house, and the demand for loans was not so large as one might suppose. The demand from country banks, however, was simply enormous, and could be in the banks to country amounted to not be raised in an banks met. banks which could The in the deposits city hour. a belonging The vast not sum, haven't got it; they ought to have taken on Saturit day the action which they took on Monday, and was a great mistake that they failed to do so. To a customer who called for a loan-We will let you have the money as soon as we can. Send around to your customers and make them pay up. This is a good time to collect in money. THE COMMERCIAL WORLD NOT AFFECTED. Geo. S. Coe, President of the American Exchange Bank, said that his institution was not a brokers' bank, and the demands for loans from merchants were not greater than usual. The commercial world was not affected in the least as yet, and he saw no reason why they need be. The out-of-town demand for money is always large at this season of the year, but is larger now than usual owing to the panic. Their deposits are small in proportion to their capital, and they are meeting demands from all sources. He looked upon the trouble as a stock-brokers' affair which need not troubln outsiders. The stock gamblers, he said, were drawing money from the banks, and stood ready with it in their pockets to buy stocks whenever they could put them down low enough. MONEY NEEDED FOR MOVING CROPS. John E. Williams, President of the Metropolitan Bank, told the reporter that they did a strictly commercial business, and were not affected in any way by the panic. There was great demand from out of town for money with which to move the crops. That was the cause of the trouble. "Our wealth in us poor and when a sudden call for grain Wall-st. Cooke's made failure created in currency, money Jay in it was n't in the city. The wheat was nor one was in a good." never 80 Every large the foreign hurry demand crop to get so his crop to the sea, and his bank sent out $100,000 a day for five or six weeks. The demand had somewhat increased, and some of the country bankers had gone wild. One man was day or two ago who had $70,000 on deposit and $40,000 in greenbacks in his pockets, and still wanted to get a discount. Mr. Williams told him to go home and cool off. The national currency, Mr. Williams said, is all out of the city; there is probably not more than $1,000,000, and perhaps not more than half a million in the banks. If they had all been paying out gold they would have been compelled to suspend. The great trouble was caused by the large amounts of worthless railroad bonds and stocks forced on the market by false representations. A JUBILANT BANK. At the Fourth National Bank the aspect of things had greatly changed since Monday. There were few persons at the paying teller's desk, but there was a long line of depositors at the window of the receiving teller reaching half around the bank. At 3 o'clock the line had not been shortened, and half an hour later it numbered 26. Mr. Lane, the cashier. told the reporter that they had found themselves a creditor bank at the Clearing-house, and were feeling quite jubilant over it. Heretofore they had been on the debtor side. The worst of the trouble, he thought, was over; there would still be ruin among the bankers, but the trouble of the banks, he thought, was over. After the suspension of Henry Clews & Co. a report was circulated on the street that the Fourth National Bank had suspended. The reporter returned, and was told that the report had probably arisen from their refusal to clear for Henry Clews & Co., but that the situation was unchanged since the former visit. The cashier pointed to the line of depositors, as if this were a sufficient answer to all questions of their elvency. A THRUST AT BROKERS' BANKS. W. H. Scott. President of the Hanover National Bank, said that they kept no brokers' accounts, and there was no unusual city demand, while the number had increased from the not be met: pouring the of panic their in, began. depositors and could Demands largely country there was since were currency to meet no which did a who dealt in business; fears for enough the the bankers banks in the city strictly them. stocks banking He would had not probably have to go down before things became settled. BROKERS MAKING SETTLEMENTS. Tappan, President of the Gallatin National Bank, said that the demand for loans was light. The brokers seemed to be settling up their affairs, exchanging stocks, and getting rid of collaterals, rather than incurring new obligations. There was a process of liquidation going on all around. They had no correspondents except in Philadelphia, and the out-of-town demand was limited to that city, but the demand from there was heavy. NO UNUSUAL CITY DEMAND, The reporter found everything quiet at the Continental National Bank. T.G.S. Flint said that a report had been telegraphed all over the country on Saturday that the bank had suspended; and the result was that their out-of-town customers were calling in their deposits. There had been a tremendous run by letter telegraphal day Monday and yesterday, and they did not know what was the cause until yesterday. They had responded to all calls, and unless there were a change within a few days they would liquidate their entire out-of-town indebtedness. The false report was circulated in had been no unusual denot how much ruthem, but it had inthe mand. mor country, had He caused could and there say certainly harm been city the inrious to their customers and to many from whom