15729. Dry Dock Bank (New York, NY)

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: October 1, 1876
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: ab5eb5fe

Response Measures

Accommodated withdrawals

Other: Bank is a savings bank; officers waived the 60-day notice and paid depositors to calm panic.

Description

Multiple articles (Sept 30–Oct 5, 1876) describe a depositors' run on the Dry Dock Bank triggered by suspensions of other savings banks (New Amsterdam, Bond Street). The bank paid depositors (waived 60-day notice) and met demands; the run subsided and the bank did not suspend or fail in these accounts.

Events (1)

1. October 1, 1876 Run

Cause: Local Banks
Cause Details: Panic contagion from the suspension/closure of other east-side savings banks (New Amsterdam and Bond Street) which spurred depositors to withdraw from Dry Dock Bank.
Measures: Officers waived the 60 days' notice and paid depositors as presented; officers stated securities could be quickly liquidated to meet demands.
Newspaper Excerpt: it seemed to be generally taken for granted that the bank was going to suspend payment... the Dry Dock Bank came in for more than a fair share of this run.
Source: newspapers

Newspaper Articles (7)

1. September 30, 1876 New-York Tribune New York, NY

Article from New-York Tribune, September 30, 1876

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THE SAVINGS BANKS. MANY DEPOSITORS WITHDRAWING THEIR ACCOUNTS -ACTIVITY OF THE DRY DOCK BANK-RESERVES OF THE BOND STREET BANK. There appears to be considerable uneasiness among the depositors of the different savings banks, and an inclination to withdraw deposits, even from some of the stronger institutions. The closing or suspension of the New Ainsterdam and Bond Street banks has apparently created this excitement. At the Dry Dock Bank, at Third-st. and the Bowery, yesterday, large numbers of men and women called for their deposits. The officers of the bank waived the 60 days' notice which they had a legal right to enforce, and the uneasy depositors were paid as fast as two clerks could settle their accounts. Mr. Webster, the secretary of the bank, stated that the securities held by the bank could be turned Into money in two or three hours, and that even if they were sold at the lowest market rate there would be a surplus left large enough to start another bank with a capital of from $60,000 to $65.000. Most of the securities were United States and city bonds, which command a premium of from 8 to 15 per cent. Six millions of these bonds are United States, New-York City, Brooklyn, and Albany bonds, all of which are salable at a moment's notice. The excitement also extended somewhat to the Bowery, Bleeeker Street, and Metropolitan Banks, and the officers of each made similar statements in regard to their readiness to meet any demands. About 250 depositors of the suspended Bond Street Savings Bank assembled last evening at No. 291 Bowery. Henry Dauscha was chosen chairman, George D. Rollwagen secretary, and Sohn Lewis treasurer. The committee appointed to confer with the officers of the bank made a favorable report. Following are the chief points of interest: Value of assets by the books, $1,412,287 58, with lialiabilities $1,286,688 02, showing an apparent surplus of $125,599 56. The committee, however, reported as immediately available:

2. October 1, 1876 The New York Herald New York, NY

Article from The New York Herald, October 1, 1876

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RUN ON THE SAVINGS BANKS. Yesterday morning the excitement among the smaller depositors in the savings banks of the east side, which began to manifest itself on Thursday and culminated in a perfect panic on Friday, in no degree abated, but in the afternoon there was a very perceptible decrease in the number of applicants for a settlement of accounts. The cause of this sudden withdrawal of deposits lies in the suspension of the New Amsterdam and Bond street savings banks. When the trustees of these establishments announced their intention of giving over business, but found themsolves unable to go into voluntary liquidation, a doubt of the security of other kindred institutions became broadcast. The recollection of the Third Avenue Bank's failure and the close of the Mutual, the Germania and the Abingdon Square is yet green in the memory of most depositors, and there was consequently a grand rush to the paying telsers' desks. The Dry Dock Bank, at corner of Bowery and Third street, came in for more than a fair sbare of this run. A large gathering had assembied before it at an early hour, and after dark the employés were still busy handing over money to importuning depositors. it seemed to be generally taken for granted that the bank was going to suspend payment, and the only thought in the minds of all comers was how to most readily reach the counters and withdraw such deposits as they had made. However, it was clear that no one bad a definite notion of what they had to fear. nor could any one give any idea of what their doubts were founded on. It was stated by one or two, though on what authority it would be difficult to determine, that the bank officials were unable to pay the interest on the mortgage which they had been obliged to take out in order to complete the building. and that it was consequently to be sold on account of a foreclosure suit. It was claimed by others that the Dry Dock Bank bad large securities invested in those institutions which have recently suspended and that it had its finances further crippled through that means. In conversation with William V. Webster, the secretary of the bank, a HERALD reporter learned that the securities held by the bank could be realized in a short time, and that even if they were sold at the lowest market rate there would be left a surplus of over $60,000. He said that there was no cause whatever for apprehension among the depositors, but that if they persisted in their intentions of withdrawing their deposits the trustees fancied that, far from damaging the bank's interests, they would only be advancing them. "This run," said Mr. Webster, "will be of benefit to us, because we will not only escspe the ob. ligation of paying interest upon the sums withdrawn, but we will be freed from the payment of the State tax, and that of itself is a matter worth considering." The excitement was not confined to depositors of the Dry Dock Bank alone, but circulated among people who had placed their savings in the Bowery, Bleecker Street and Metronolitan Banks. In these there were fewer amounts drawn and the officers in all cases expressed themselves satisfied of their institutions being able to weather the run. However confident these gentlemen may by of their financial security, there is no doubt but that a wide-spread feeling exists that in this crisis every bank whose finances are not on a solid basis will be sorely pushed. The recent suspensions have inspired a lack of confidence, under which many such institutions may succumb if it be not speedily removed.

3. October 2, 1876 New-York Tribune New York, NY

Article from New-York Tribune, October 2, 1876

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DRAFTS ON THE SAVINGS BANKS. The run upon some of the savings banks, which continued on Thursday and Friday, seemed to have subsided to a great extent on Saturday, A reporter of THE TRIBUNE visited several of the institutions, and found that, though many depositors had called to draw their money, this feeling of apprehension was confined to the depositors of small amounts. At the Dry Dock Bank there was an absence of anything like a run. Many depositors called, collected in groups, and talked over the outlook, but generally went away very soon, without drawing their money. Mr. Webster, the secretary, said that from appearances he thought that the run was about over. He said that the bank was abundantly able to meet all obligations. He thought that the run was not the result of any combination, but that the people had become timid and suspicious of all banking institutions through the suspension of some of the weaker banks. The auxiety seemed to be confined to those having small credits, as the old customers and depositors having large credit accounts were not in the least affected by the rumors in circuiation. The amount paid out in the three days was about

4. October 4, 1876 The Sun New York, NY

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PRICE TWO CENTS. THE SAVINGS BANKS AGAIN. AN GIN OF THE OFFICER'S THEORY FLURRY. OF THE ORI. I Excitement Visibly Abacina-A who are Wholes Amble The for Officers Dividende some Lesson Make a Good Exhibit of side tious to scenes in and around the a more east temThe banks yesterday indicated and many savings feeling among the depositors, their deposits reperate Monday withdrew of the banks. who on their money to the vaults had been stored Citizens' Bank. preparation At half past At the meet an anticipated run. were outside 2 made to than a dozen persons whethnot more and they seemed uncertain ready tellers. the countere, draw out or pay in, while the greenbacks, exer to handled their piles of that as they almost a feeling of dissatisfaction to show the hibited had not had the opportunity obligations to de+ they bank to meet its one the officers said. ability positors. of the We have no The fears bank whatsoever," is solvent and its patrons. of meet any requirements of savings banks able to is that some of the endeavorThe trouble established have been when they more recently sixpercent. dividends, cent. ing to not declare realizing more four Under or five per the new were their investments. record Interest law. on the trustees are required dividend to debanking individual votes upon any will be their This being done, each trustee deficit. clared. individually responsible for of any the bank held should the earnings examination For Instance, to be $100,000. and an Superintendent be declared $75.000, the Bank trustees to show only the doors and force the continued, "is could close $25,000 deficit. This," he old bank. pay the Houble !ca Hutshell. The of inthe whole allowed themselves a margin have always have always dividends: hence they deposterest over to meet any demands made eagerness by ta Itors. been able The new showing, banks, declare in their dividends does not that nlmake a good on their investments insists upon a wars the interest justify. enforcement Now of that the Mr. law, themselves Eilis holding they the close trustees rigid their responsible. doors and ask to for save the appointment of street a recelver.' At the Savings Institution said: We in declare Bleecker four justines per cent. one of dividend, the officers additional and when our dividend. surplus which seven will cent. declare an six and sometimes howwe make the aggregate The money is always in hand, done per ever. before the Bond we do Street this.) Bank were nothing awaiting was the arAt The officers receiver. yesterday. W.S. Paine, the doors rival of Mr. Dry Dock Bank, as anxious soon as throng the of At the opened. yesterday, and an formed in dougle received row depositors were rushed in As each depositor visibly around money the from desks. the teller o'clock the excitement only a few par dehis subsided. and at the (bree bank. .. We President are able to said. all positors demands were made in feeling upon us, is the rapidly withdrawing subsiding. ) , There " The are feverian at least one-third and by to-morrow less business. I think their deposits to-day, down to our ordinary has erected a new ) we shall The settle fact that this little bank or no income is upon debuilding, from which much to do with the run But, he rived. has an bad officer of another the bank. Dry Dock Bank. it.' said " an institution millions like of dollars within which can raise can have nothing and added, certainly seven stood in to fear. around an hour, all the multitude word that was attered. Every this In bank. not a bent loud upon transacting expressing business , person seemed possible. coary even The of teliers did I as rapidly to most as intimate friends. countenances. and Bullen the views their duty with smiling their money with a fears I determination depositors received that bespoke alike their I at a ) and their needs. shows that in May S. Dick) Investigation bis name as Henry business / man who was gave a real estate agent doing sh deposit in son. 37 who Eighth avenue. made Savings a Bank, and then viot the at Ablogdon check. Square which the institutions. bank took in Soon deposited of the a rule of savings the bank from Mr. e lation checks began to said pour that in be upon received estate them busi- from Dickson. who transacted real what ) men with whom account be with the deposited bank became checks is ness. termed His an "active" daily. one. At length some from of the the checks and drew turned money out to the have bank's been raised officers learned sum 1 original Mr. figures, Dickson and had drawn Then a the much officers larger of the e that than belonged to him. Mr. Dickson. but raising be was a fund not bank be went found. to The see depositors to examine are the bank's to to books. employ and learn an expert to what extent they have been defrauded.

5. October 5, 1876 The Cincinnati Daily Star Cincinnati, OH

Article from The Cincinnati Daily Star, October 5, 1876

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NEWS FROM THE METROPOLIS Savings Banks. NEW YORK, October 5.-There is no unusual commotion about the savings banks to-day, the run at the Dry Dock Bank having nearly subsided. Railroad Convention. A convention of railroad officers, representing a number of the principal rallroads of the United States and Canada, for the purpose of arranging the running schedules and making general arrangements for the winter's work, will be held at Windsor Hotel this week. Personal. John F. Cleveland, financial editor of the Tribune, is seriously ill, and at latest accounts was very low and not expected to recover. His family and physicians are in constant attendance. Nellie May Florence, the reputed daughter of Madame Florence, a clairvoyant, for whose recovery $500 reward was offered, has been discovered in Jersey City. The child was found in the care of its mother. Joseph Woods, of Jersey City, brought an action in the King's County Supreme Court against Wm. B. Holton to recover the sum of $20,000 dama for an alleged libel, caused by an article which he claims the defendant furnished the Evening Journal of Jersey City. Commodore Vanderbilt spent a restless night, and is very weak and nervous. Captain Robert Hamil, the oldest living New York and Sandy Hook pilot, died yesterday at his residence. He was about seventy-five years of age, and was engaged in piloting into New York Harbor for forty years.

6. October 5, 1876 New-York Tribune New York, NY

Article from New-York Tribune, October 5, 1876

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LOCAL MISCELLANY. THE SAVINGS BANKS. RUN ON THE DRY DOCK BANK CLOSED-PAYMENT OF 50 PER CENT BY THE MECHANICS' AND TRADERS' BANK. A reporter of THE TRIBUNE visited yesterday many of the savings banks, and found from appearances and from the opinions expressed by the bank officers that the uneasy feeling among depositors apparently had entirely passed away. Banks which had on Monday paid out amounts greatly in excess of deposits showed from their ledgers that depositors had reopened their accounts. This was particularly the case in the Dry Dock Bank, although yesterday morning when the doors were opened 20 or 25 depositors called to close their accounts. After the last of these accounts had been sottled there were not more than three or four persons besides the officials in the bank at any one time. Those who drew their accounts yesterday were in the main depositors of small amounts, so that the amount drawn out was very light. Mr. Webster, the secretary, stated that the feverish feeling had subsided and that the run was virtually at an end. Nearly $12,000 of aecrued interest has been lost by depositors who closed their accounts. Some excitement was caused yesterday at the Mechanics' and Traders' Savings Institution by the payment of the first dividend of 50 per cent, by the receiver, William J. Best. About 500 persons, nearly half of them being women, collected in front of the bank before the doors were opened. When Mr. Best appeared, about 10 o'clock, he addressed the crowd, stating that he had enough to pay them all, and that he should continue paying on Mondays, Wednesdays, and Fridays, between the hours of 10 and 3 a. m., and 6 and He requested that the women and old men should be allowed to draw their dividends first. The depositors were assured, also, that they would finally receive at least 75 per cent of their deposits. A line was formed, and the receiver began paying off the dividends at the rate of about 30 an hour. It was the intention of Mr. Best to pay all sums over $100 in checks, but the depositors declined to accept them. There are in all 3,202 open accounts, but of these, about 500, amounting to about $350, are not considered payable, as the pass books are turned in and the accounts are supposed to be errors of clerks. The liabilities of the bank amount to $1,556,265 29, consequently the amount to be paid out at the present dividend is $778,132 64. Police were on duty at the bank, but their services were not needed. About $150,000 was paid out yesterday. Willis S. Paine, the receiver of the Bond Street Savings Bank, presented his papers yesterday at the bank, and will probably assume charge to-day. Officers of the Brooklyn savings banks state that the failures of the New-York banks, recently closed, have not caused any decrease in their deposits. Some of them, on the contrary, claim an increased number of depositors during the past few days.

7. October 5, 1876 The Sun New York, NY

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TH LC SAVINGS OF THE POOR. Depositors Gradually Becoming Satisfied that their Money is Secure. The excitement among the depositors in the east side savings banks is virtually at an end. Yesterday, in the Bowery, Citizens'. and Bleecker Street Banks, nothing excepting the usual everyday business was transacted. Early in the morning there was still a feverish feeling exhibited by the depositors in the Dry Dock Bank, but as the day wore on and the demands of each were promptly met, this subsided, until at 2 o'clock there were not more than three or four persons in the place. The President says that during the run neither he nor his officers have said a word to influence the action of depositors. "The best argument," said he, "in a case of this kind is to pay them their money. Certainly they have a right to demand It, and our duty is simply to pay it over without question. At no time has the bank experienced any uneasiness. The depositors are becoming convinced of this and many of them are bringing back their money." Long before the doors of the Mechanics' and Traders' Institution were opened to pay the fifty per cent. dividend declared by the receiver, Mr. W. J. Best. a tumultuous crowd gathered along the sidewalks and out into the street in front of the building. Policemen were stationed on the steps of the bank. and at 10 A. M. preelsely the first fifty were admitted. They were formed into line, and as rapidly as possible were paid off and ushered out through the door opposite the entrance. Tbis was kept kept uo systematically until 3 o'clock. when the doors were closed for the day. At that time there was still an eager crowd waiting for admission. By Friday it is thought that all will have been paid their first dividend. With regard to any future payments, Mr. Best says the books show that the institution owes $343,816.39 in excess of its assets at their appraised value. This amount will be increased to the extent of the expenses of the State in having a receiver appointed. and the receivership. It is also liable to be increased or diminished by the sale of the securities. which are changing in value almost daily. He thinks the amount the depositors may safely count on receiving will reach seventy-five per cent., or three dollars out of every four of their respective demands.