15774. Emigrant Industrial 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
ed6bc9e5

Response Measures

Accommodated withdrawals

Description

Newspaper accounts (Sept 23–Oct 18, 1873) describe an initial run/large withdrawals at Emigrant Industrial Savings Bank, directors posting notices requiring 30/60 days' notice (a partial suspension of immediate payment), and later removal of restrictions and return of monies — consistent with a run leading to a temporary suspension and subsequent resumption of normal payments.

Events (5)

1. September 23, 1873 Run
Cause
Rumor Or Misinformation
Cause Details
General panic after broader financial disturbances in New York produced depositors' fear; articles describe 'run' among savings banks rather than bank-specific insolvency.
Measures
Meeting all demands initially without regard to amount; later directors ordered notice posted requiring 30/60 days for withdrawals of larger sums.
Newspaper Excerpt
At the Emigrant Industrial Savings Bank a considerable amount of money was withdrawn during the day. Soon after the opening ... a large number of the depositors assembled
Source
newspapers
2. September 24, 1873 Run
Cause
Rumor Or Misinformation
Cause Details
Continued depositor nervousness following earlier days' disturbances; banks adopting notice rules to curb runs.
Measures
Directors posted notice requiring 30/60 days' notice for certain withdrawals.
Newspaper Excerpt
EMIGRANT INDUSTRIAL SAVINGS BANK, in Chambers street, had a slight run yesterday morning. The directors ordered a notice posted
Source
newspapers
3. September 24, 1873 Suspension
Cause Details
Bank instituted the statutory notice requirement (30/60 days) to restrict immediate withdrawals amid the panic; a precautionary, regulatory measure rather than a government closure.
Newspaper Excerpt
The directors ordered a notice posted
Source
newspapers
4. October 2, 1873 Other
Newspaper Excerpt
Of the $150,000 paid out at the Emigrant Industrial Savings Bank on the Monday of the run, Mr. Donnelly ... states that probably 60 per cent has been returned by the original depositors. He said ... The managers hope in the course of a week to take down the card requiring notice on the withdrawal of deposits. Confident that all excitement is at an end ... they held notices of the withdrawal of deposits amounting to $203,000. (emphasis in article.)
Source
newspapers
5. October 18, 1873 Other
Newspaper Excerpt
At the Emigrant Industrial Savings Bank the Controller said that they held notices of the withdrawal of deposits amounting to $203,000 ... Few notices were now coming in. only two or three a day. ... They still required the notice from those having no actual and immediate requirement for their moneys, but were paying all demands necessary for business purposes.
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 24, 1873

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THE SAVINGS BANKS. A tour of the savings banks by a HERALD re porter yesterday revealed the fact that, as stated above, "comparative" quiet existed all over. What reasoning by word of mouth failed to accomplish was effected by printed placards, which instructed callers that no deposits would be returned short of receiving proper notice, thirty or sixty days' ahead. THE SEAMAN'S SAVING INSTITUTION, on Wall street, has had no run. At the same time the thirty days' clause has been taken advantage of by the directors, who declare, however, that they have over $1,000,000 surplus, and can withstand any financial storm that may arise. Considerable deposits were made there yesterday. THE MUTUAL BENEFIT SAVINGS BANK, on Printing House square, has had no run. The sixty days' notice had been displayed there. Up to three o'clock only fifteen persons had filed notice to withdraw their deposits. EMIGRANT INDUSTRIAL SAVINGS BANK, in Chambers street, had a slight run yesterday morning. The directors ordered a notice posted


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 New-York Tribune, October 2, 1873

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THE SAVINGS BANKS STRENGTHENED. MONEY FLOWING BACK-THE DEPOSITORS REGRET THEIR FORMER FOLLY. The business of the up-town savings banks has steadily increased since the early part of last week. Their officers are considering how they may prevent a recurrence of a loss of confidence and the consequent run upon the banks. Some of them believe that a notice of one year should be required in place of thirty or sixty days. Again, this sudden demand for ready cash for deposits made might be obviated by the issue of certificates of deposit, which, once brought into use, might prove as easy of negotiation as other mercantile paper, and certainly as safe. This would free the banks from the necessity of sacrificing securities to meet demands. None of the officials anticipate any further excitement at present, but deem that, until some change is made in the banking laws, such scenos are liable to recur at any time. The custom of meeting all demands from depositors has been continued at the East River Savings Bank. During the week ending Saturday evening $53,000 was received on deposit, and considerable money was returned. Of the $150,000 paid out at the Emigrant Industrial Savings Bank on the Monday of the run, Mr. Donnelly, Assistant Controller, states that probably 60 per cent has been returned by the original depositors. He said that it was an amusing scene to see them come in and, with very sheepish looks, make excuses for having drawn out their deposits. The managers hope in the course of a week to take down the card requiring notice on the withdrawal of deposits. Confident that all excitement is at an end, the officers of the Citizens' Saving Bank have resumed the payment of all deposits, and the card requiring notice is withdrawn from sight. During the week past about $65,000 has been received in deposits-a very fair percentage of the total amount withdrawn during the first days of the excitement. At the Bowery Savings Bank the requiring of notice is also practically discontinued. Money is paid in any amount to those actually requiring it, and the rule of notice is only enforced in the case of those who still find cause for anxiety. At the Metropolitan Savings Bank the rule requiring notice of the withdrawa of deposits is still enforced to some extent, the officers using 'their discretion in the matter. T. W. Lillie, Secretary, says the stories of depositors to gain their money have proved an endless source of amusement. Notices have been received of the withdrawal of between $60,000 and $70,000. and Mr. Lillier argues that the persons should be compelled to take their money, as part return for the trouble occasioned the bank, and not permitted to withdraw the notices, as many are already doing. At the Manhattan Savings Bank business has resumed the ordinary routine. or the $240,000 withdrawn on Monday of last week, much has been returned. At the Sixpenny Savings Bank the rule requiring notice is still in force. Few demands are received, except from regular business men, and these are met. About 80 notices, representing $25,000, have been given. The German Savings Bank is meeting all demands, BIGH Dues


Article from New-York Tribune, October 18, 1873

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SAVINGS BANKS UNSHAKEN. BUSINESS FLOWING BACK INTO ITS ORDINARY CHANNEL-PAYMENTS MADE TO DEPOSITORS IN ALL CASES OF NECESSITY-WITHDRAWAL MADE FOR PERMANENT INVESTMENT. " Business with us is easy," said President Brown of the Bowery Savings Bank yesterday, when questioned in this particular by a TRIBUNE reporter. easy as it has ever been." He further said that they had virtually resumed the payment of all demands, only draft requiring the legal notice, when the proposed a seemed unnecessary to the depositor. Only few of these notices were now given, on an average one or two daily. Taken altogether, notices had been received covering about $280,000; if the bank had settled all these book accounts at the time the respective notices were given. it would not have proved much more than the usual day's business. More money was being paid out than during the month previous to the panic, no doubt partly occasioned by the investments in real estate. He said the number of small drafts -of $5, $10, and was unusually large, which would seem to indicate that a large number of the laboring class were out of employment. Deposits, as was usually the case during the month of October, had been Finall. Deposits made after the 1st did not draw interest until the fullowing January. Compared with the corresponding month of last year, there was a very marked decrease, but taken altogether, everything connected with the banking business seemed most satisfactory at present. In the course of his remarks, Mr. Brown spoke of the statement made through the press to the effect that the savings banks were hoarding greenbacks-were ac cumulating in their vaults an "unusually large amount of bills. This," said he, " 80 far as the Bowerv Bank 18 I concerned, is untrue. On the Monday of the run, drew $500,000 from the Sub-Treasury, and the same day paid out $399,000. Anticipating a similar run on Tuesday, I that day drew another $500,000 from the Sub Treasury but the course then taken prevented run and this latter sum was left intact. I have now in the vaults $580,000 in greenbacks, against a liability of $27,000,000. and with notices covering $280.00 maturing within a few days. This amount is not as large by at least one third as the cash kept in the bank during the months of July and August last." When questioned as to the probable effect on their business of the enforcement of the law requiring notice. he said it did not appear hurtful to him. The depositors must in time acknowledge that they alone were benefited by such a course. Especially was this the case at this bank. The Bowery Savings Bank was in reality a charitable institution. and if the depositors could find more profitable investment for their savings, then its only aim was accomplished. There were no sinecures in the institution, none of the officers drew salaries except those actually engaged in the business of the bank. As to deposits, it would cause no disappointment if not another dollar was received. Secretary T.S. Armour reported a similar encouraging condition of affairs at the Union Ditne Savings Bank present they were paying sums of $500 upon demand, and even larger amounts when satisfied that they were required for legitimate business purposes. Notices covering about $57,000 had been received, and scarcely a day passed without many withdrawals were made. The drafts were mostly in small amounts. The receipts of the month were in excess of the payments, and, considering the circumstances, compared very favorably with the business of last year for the same month. the difference amounting to about $83,000. At present. business was not quite as heavy as ordinarily During the three days' run about $175,000 had been paid out-the largest amount in one day being $129,000. This was not equal to the usual payments for January and July, when dividends were declared. At these times as high as $150,000 or $200,000 was distributed in a single day. Of those w ho had helped to cause the run upon the bank, the majority were of the poorest and most illiterate their customers-it was safe to say seven out of ten could neither read nor write. At the Emigrant Industrial Savings Bank the Con troller said that they held notices of the withdrawal of deposits amount ing to $203,000. and in amounts varying from $50 to $2,000. He believed that little of this would be called for. Few notices were now coming in. only two or three a day. The receipts during the month were about one-third less than those of the corresponding month last year; the drafts were somewhat in excess. Much of the money was drawn for more profitable investment and not from any fear as to the security of the deposits. They still required the notice from those having no actual and immediate requirement for their moneys, but were paying all demands necessary for business purposes. At the Greenwich Savings Bank they have not exacted any notice from their depositors, meeting all demands promptly. Secretary Boyce stated that they were still paying out a larger amount of money than usual, but. as it seemed. chiefly to meet actual necessities. Few If any accounts were being closed, and no evidences of alarm could be seen among those making drafts. This ratber unusual drain upon the deposits he believed was occasioned partly by the large number of men out of employment at present, partly by the tightness of the money market, and partly by the investment of considerable sums in real estate. The drafts of this month were much larger than for the same period last year. He thought that the savings banks that had enforced the rule requiring notice from depositors would in the end suffer from it, and that those that had continued in the payment of all demands would be correspondingly benefited. Controller Craig, at the Bank for Savings of the City of New-York. said: Money is still coming in and going out. We are still paying out considerable more than our average previous to the panic, but among those drawing their deposits there are no evidences of fear as to their security. People seem to be very generally investing in good securities, and in real estate, and being unable to draw their deposits from other banks, are necessarily compelled to take what they have with us. Many are idle, and must have money to meet the actual requirements of life. Some of our country depositors have just heard that there has been some frouble in New-York, and are coming in to look after their deposits. Some take them. but more leave them. Very few accounts are being closed indeed a very fair percentage of money drawn during the excitement has been returned. To be brief, business is in most satisfactory condition. The secretary of the East River Savings Bank stated that the receipts for the week ending last Wednesday were $10,000 in excess of the amount for the corresponding week last year. The payments were somewhat heavier, and had been all along. Visits to numerous other savings banks-the German. Merchants' Clerks', Freedman's, Manhattan, Mechanics' and Traders', and Citizens'-substantiated the above reports. With all, business has resumed its ordinary channel, and the future appears most promising. THE DELTA KAPPA EPSILON FRATERNITY. EASTON. Pa.. Oct. 17.-The closing entertain-