15776. Emigrant Industrial Savings Bank (New York, NY)

Bank Information

Episode Type: Run Only
Bank Type: savings bank
Start Date: July 29, 1893
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: b3e27bf7

Response Measures

Accommodated withdrawals, Partial suspension

Description

Savings-bank panic in summer 1893: heavy withdrawals by largely small depositors (many women and immigrants). The bank invoked the time‑notice rule (30/60/90 days) and limited cash payments, but did not suspend payments or close; by Sept. 1 most notices expired with only a small portion withdrawn. Cause attributed to broader financial depression and nervousness (macro news) and some rumor-driven local confusions in the press. OCR corrected minor spacing (Sav. ings -> Savings).

Events (3)

1. July 29, 1893 Run

Cause: Macro News
Cause Details: Heavy withdrawals driven by the 1893 financial depression, currency movements and general nervousness about banks
Measures: Bank joined other savings banks in deciding to require notice of withdrawal (30/60 days) and to limit payments
Newspaper Excerpt: President McMahon ... said that the withdrawals at his bank were very heavy yesterday
Source: newspapers

2. August 1, 1893 Run

Cause: Macro News
Cause Details: Continued crowding and withdrawals by small depositors (many women and immigrants) amid the same depression and nervousness
Measures: Posted time‑notice rule; limited per‑payment and monthly maximums; paid small depositors in full in many cases
Newspaper Excerpt: The bank will require thirty days' notice of the intended withdrawal of all sums exceeding $50...no sum exceeding $1,000 will be paid in each calendar month until further notice.
Source: newspapers

3. September 1, 1893 Other

Newspaper Excerpt: Notices to the amount of over $215,000 expired. but of this only $26,000 was taken out.
Source: newspapers

Newspaper Articles (7)

1. July 30, 1893 The Wichita Daily Eagle Wichita, KS

Article from The Wichita Daily Eagle, July 30, 1893

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MONEY AND STOCKS. NEW YORK, July 29.-There was an exciting scene at the opening of business on the Stock exchange this morning. Uneasiness was caused by the action of the savings banks in demanding thirty and sixty days' notice of the withdrawal of deposits, and by rumors affecting Chicago Gas and General Electric. The biggest crowds in the room were interested in Chicago Gas and General Electric. The latter stock closed last night at 35, having rallied to that point from 31½, the lowest point. Among those in the crowd were Brokers Sproul and Savin. Savin was bidding for the stock away below the closing price. There was, however, no stock offered until just as the chairman's gavel dropped, when Savin bid 30 for 500 shares. Sproul, to the amazement of every one in the crowd, cried "Sold!" before any higher bid could be made. The crowd was indignant at this transaction, and threats were made to take the case before the governing committee. The genuineness of the transaction was doubted. The next sale was at 39, or 9 points from the opening. Chicago Gas opened at 44, or 3 below last night; sold down to 40 and back to 46½. The other stocks closed per cent lower than yesterday. The money market was merely nominal, call loans being quoted at 4 per cent. The bankers reported the outward movement of currency as lighter today than on any day in two weeks. Only $450,000 were shipped out of town. The estimated shipment of currency to the interior for the week is $$,000,000. The banks, however, received $3,000,000 from the interior and $1,750,000 were imported, making the net loss of money for the week $3,250,000. The publication of the intended action of the savings banks and institutions to put into practice the law entitling them to sixty days' notice from depositors precipitated runs on many savings banks this morning. Some of them paid in full and thus sought to restore confidence. Others required notices ranging from ten to ninety days. "The meeting of presidents yesterday afternoon was called," said President McMahon of the Emigrant Industrial Sav. ings bank today, "to consider what action was thought to be advisable to retrieve the heavy drain the depositors have been making since the present depression commenced. Each president was invited to give hisexperience since the drain began, and what in his opinion should be done to stay it. They all agreed that the withdrawal of deposits was in much greater proportion than the money going in." Lazard Freres will ship $1,000,000 in gold from Liverpool next Wednesday.

2. July 30, 1893 New-York Tribune New York, NY

Article from New-York Tribune, July 30, 1893

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plics with especial force whose savings are deposited with the banks, for a speedy solution of existing depression means to them renewed or continued employment, and they should, 85 far as lies in their power, all to bring about this result. There is no safer place for the deposits of savings during a period of financial depression than the savings banks of this State. They are carefully regulated in their investments by wise laws, frequently examined by the department at Albany, purely benevolent in their character and managed by trustees who receive no compensation and who, gnize the sacred character of the trust they have in charge We believe that the depositors will recognize these facts and cheerfully acquiesce in the judgment of those having their savings in charge, and agree that what has been done is solely in their interests and for the better protection of their hard-earned savings." NOTICE GIVEN TO THE COUNTRY BANKS. The meeting at the Emigrant Industrial Savings Bank was attended by representatives of the Emigrant, the Greenwich, the Bank for Savings, the Bowery, the Citizens', the East River, the Franklin, the German, the Harlem, the Seamen's of South Brooklyn, the Dime of Brooklyn, the Albany of Brooklyn, the Utica, the Williamsburg and the Seaman's of New-York. The decision reached was reduced to a resolution, and the following circular letter was sent out to all savings banks in the State: New-York, July 28, 1893. Dear Sir At a meeting held this day at the Emigrant Industrial Savings Bank, numerously attended by the representative officers of the savings banks of this city and Brooklyn. it was their unanimous opinion that in view of the recent developed manifestation of depositors to withdraw their funds, as learned in many instan to hoari the same, and also in view of the exceptional difficulty of obtaining currency, as well as the serious loss which must arise in the effort to sell securities at the present time to satisfy the demand, the best interests of the depositors require prompt action on our part here and throughout the State; therefore be it Resolved, That it is the judgment of this meeting the time has arrived when, in the interests of their Jm. portant trusts, it is expedient that the trustees of the savings banks of New-York, Brooklyn and elsewhere throughout the State should require from their depositors the notice of withdrawal 01 deposits provided in their respective bylaws and in accordance with the agreement in which all deposits are received. JOHN HARSEN RHOADES, Chairman of this meeting and of the Executive Committee of the Savings Banks of the State of New-York. WILLIAM G. CONKLIN, Secretary. PROVISIONS OF THE LAW. Mr. Rhoades said, in further explanation of action taken: The resolution embodied in the circular letter to the banks draws attention to the law permitting and authorizing the previous notice, which is section 113 of Banking Laws, relating to management of savings banks, reading in part as follows:" The sums deposited with any savings bank, together with any dividends or interest credited thereto, shall be repaid to such depositors respectively or to their legal representatives after demand in such manner and at such times and after such previous notice and under such regulations as the Board of Trustees shall provide. Such regulations shall be posted in a conspicuous place in the room where the business of the corporation shall be transacted, and shall be printed in the pass-books or other evidences of deposit furnished by it and shall be evidence between the corporations and the depositors holding the same of the terms upon which the deposits therein acknowledged shall be made. Mr. Rhoades explained that his bank had never had. occasion to enforce the time clause, but was always entitled to do so. Most banks, he said, will probably demand under their by-laws thirty or sixty days' notice. This does not mean that no deposits can be withdrawn, but proper discretion is to be used, and no one will be allowed to withdraw the whole of a large deposit ot once. Our decision is not binding on any one." he continued, "and I have no doubt many will not avail themselves of the action. But the stronger ones will and will do so to introduce the uniform policy. My bank is in an excellently sound position, but on Monday I shall lead the way. You understand, of course, that each bank acts under the management of its president and board of directors. They must meet and decide before their institution can co-operate with us. DANGERS TO BE AVOIDED. President McMahon, of the Emigrant Industrial Savings Bank in Chambers-st., said that the withdrawals at his bank were very heavy yesterday, and that while no panic was feared. unless some such expedient for preventing an indiscriminate run as had been agreed upon by the banks was put in force Monday would witness a withdrawal of deposits such as had seldom been known in New-York. To meet such a run the bank would be compelled to sacrifice its securities It In mortgages and bonds of all descriptions. would be impossible to predict the demoralization in values which might follow. Mr. McMahon said that he thought that the duty of savings bank officers was plain. From every point of view it was necessary that the banks take advantage of the law which provides that they may require legal notice from depositors before withdrawing large amounts. This did not mean suspension of payment, but only the exercise of reasonable discretion to protect the interests of all concerned. At the time of its last published report the Emigrant Industrial Savings Bank had 73,015 depositors, who had $41,309,093 in the bank. In this city only the Bowery and the Bleecker Street Savings banks have larger amounts due depositors. The Emigrant Bank's cash on hand was $344,533. - A WOMAN WHO WANTED HER MONEY. At the Seaman's Bank for Savings, No. 74 Wallat., there was a heavier withdrawal than usual by depositors, but there was no excitement. One woman, who had four deposit books. withdrew the entire amount of her savings, over $7,000. with the evident intention. one of the officers said afterward, of secreting the coin. She would not accept a check, which is a usual way of paying 80 large an amount, but demanded the coin, which she could hide away in a stocking. Had he known of it at the time, the official said, he would have enforced the thirty days' notice clause against her. Under the agreement which all depositors have to sign savings bank officers have power to enforce the time clause against any individual depositor at a moment's notice. No action by trustees is ever necessary for the operation of this time limit. William C. Sturges, the president of the Seaman's Bank, said that the institution would put the thirty days' clause into effect to-morrow morning. This was Mr. Sturges's comment on the action of the bank presidents, as he wrote it out: HOW A SAVINGS BANK IS MANAGED. A savings bank differs from a bank of dis-

3. August 1, 1893 New-York Tribune New York, NY

Article from New-York Tribune, August 1, 1893

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Fourth-ave., where four policemen, two inside and two outside, were occupied keeping the crowd in line. Nobody got any more than $100, and these sums were being paid out slowly. They paid out about $30,000, the bank keeping open until 8 o'clock, which it does on Monday evenings. Many of these people, thinking they could not get any money at all without offering some excuse, said they were going to buy grocery stores. At the Bowery Savings Bank President Wood said that they were paying $100 to as many people as they could; above that and up to $300, thirty days' notice, he said, was demanded, and for sums larger, sixty days' notice. The crowd here was much the same as at the other banks, and was regulated by policemen. There was a good-sized crowd at the Emigrant Industrial Savings Institution, in Chambers-st., when it opened, but no excitement. Two-thirds of those who came with their passbooks were women, many of them carrying children in their arms. They found the following notice posted conspicuously at various points in the interior of the bank, signed by David Ledwith, controller: "The bank will require thirty days' notice of the intended withdrawal of all sums exceeding $50. One payment to that amount in each week will be made on demand, and no sum exceeding $1,000 will be paid in each calendar month until further notice. By order of the Board of Trustees." An orderly line was formed, and all who wanted $50 got it. It was paid half in currency and half in gold. The great majority of those asking withdrawals were of the most ignorant classes. Onefifth were Italians. But a great many of those who came for money took only the interest due them, and left their deposits intact. There was no rush for the window at which the thirty days' notice was given, and one clerk leisurely attended it. Much of the time it was without customers. While the paying teller was engaged handing out notes and gold, the receiving teller was almost as busy taking in money offered by depositors. At the close of business, it was found that about 800 holders of passbooks had withdrawn

4. August 1, 1893 Waterbury Evening Democrat Waterbury, CT

Article from Waterbury Evening Democrat, August 1, 1893

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SILLY RUNS ON BANKS. New York Savings Institutions Crowded With Depositors. WOMEN WANTED THEIR MONEY. People With Small Sums Got Scared and Hastened to the Bank to Get Their Savings-Foreigners Were Hard to Reason With Did Not Like to Take Gold. NEW YORK, Aug. 1.-At all of the banks here an unusual number of nervous depositors want their money. More than :hree-quarters of these are women. At the east side banks, where the depositors are mostly foreigners, the run is heaviest There is no alarm among the savings banks officials over the situation. They all declare that they are more than able to meet with their cash balances the demands that will now be made upon them. They expect that the excitement among the igaorant depositors will subside by the end S of the week at least. r This confidence on their part is warranted by the actions of depositors at the banks. At many of the banks the amount of money paid in did much to offset what f was drawn out. At one of the largest a banks the amount deposited was almost S one-half as large as the amount drawn out. S So far as is known, all the savings banks is in the city except two or three put the time clause into effect before the day closed. is There were strange scenes around the a banks during the day. At the Emigrant n Industrial Savings bank, in Chambers d street, there was a crowd of from 200 to 400 % depositors all day. The great majority of them were poor women. and a very large d percentage of them were Italians. The bank had not availed itself strictly of the r time clause, but they paid the small depositors in full. il They Objected to Gold. c At this bank, as at all the others, the officers had clerks out among the depositors an explaining to them the foolishness of their t fright, and these emissaries induced scores of those ho had come to get their money to go away without it. All those who insisted on drawing as much as they could h were paid half in greenbacks and half in n gold. It was a somewhat remarkable fact that nearly all objected to the gold and at asked that it be exchanged for the paper n money. ne At the Franklin Savings bank on Eighth le avenue the crowd of depositors vhowanted 10 to withdraw their money was very large. The time clause had there been posted. ne President Archibald Turner said that he thought the excitement would all be over in three or four days, as it was confined ce only to the poorer and more ignorant de positors. he The Broadway Savings institution. the ne Irving Savings institution and the East nt River bank had only about 12 time notices served upon them and no great rush of people at any time during the day. The Harlem Savings bank had a crowd, but er the drafts exceeded the deposits for the od day to the amount of only $18,000. Everybody was accommodated with all the money he wanted if he could show a good reason for withdrawing it. on How a Run Started. There was printed in a Jewish paper on Saturday morning that the "Neb. State bank." meaning the Nebraska State bank. Iso had closed its doors. This caused a senseless run on the State bank at 378 Grand se street, which was kept up all day. The Polish and Russian Jews, who are the depositors in the Grand street State ns bank, did not know what "Neb." meant. ill They came to the conclusion that it was a typographical error and that the bank reap ferred to was their bank, and when it was he opened there was a rush of depositors to ed draw out their money. It was impossible of to reassure them, so the officers simply repaid out every account that was called for and prepared to stand a run. nd About all of the Brooklyn savings banks insisted on the rule requiring notice of the nd withdrawal of deposits, but only in case of ag, demands for over $100, and smaller sums ng were paid out freely. There were crowds before the window in of nearly all the banks when they opened rs' for business, but there was no evidence of he panic. There were complaints heard of the enforcement of the 30 day notice rule. but n't there was very little excitement, and the isspecial policemen who were detailed at the banks had nothing to do but to keep peofor ple in line. Furniture Dealer Gives Up. mCLEVELAND. Aug. 1.- H. J. Moriarty rill furniture dealer, made an assignment. P. the M. Spencer was made assignee and roughly a estimated the liabilities at $20,000. bA Springfield Bank Assigns. SPRINGFIELD. Ills., Aug. 1.-The Spring ou field Savings bank, with a capital of $25, res 000 and deposits of about $100,000, made at ayassignment. he Leather Firm Suspends. ou, BOSTON, Aug. 1.-F. A. Loring & Co. the leather dealers, of 132 Lincoln street, with mR tannery at Woburn, have made an as signment. ng A Providence Bank Wants Time. do PROVIDENCE, Aug. 1.-The Merchants to Savings bank called for 90 days' notice or deposits to

5. August 1, 1893 Rock Island Daily Argus Rock Island, IL

Article from Rock Island Daily Argus, August 1, 1893

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TIME RULE POSTED New York Has Trouble With Savings Despositors. NO PANIC, BUT MUCH NERVOUSNESS Crowds of People at Nearly All the Savings Banks Wanting Their Money, the Majority Being Women and of Foreign Nationality-Germans Give One Concern Much Trouble, and Poles and Russians Worry Anotber-Officials Confident. N YORK, Aug. 1.-At all of the savings banks here an unusual number of nervous depositors wanted their money. More than three-quarters of these were women. At the East Side banks, where the depositors were mostly foreigners, the run was heaviest. There was no alarm among the savings banks officials, who declared that they were more than able to meet with their cash balances the demands that may be made upon them. They expect that the excitement among the ignorant depositors will soon subside. Still where it was evident that a panic might be started, or that the depositors were themselves panic struck, the time rule was enforced. Few Large Depositors Give Notice. The most encouraging sign was that very few large depositors gave notice that they would withdraw their deposits in thirty or sixty days. So far as is known all the savings banks in the city except two or three put the time clause into effect before the day closed, and the others probably will do SO today. There were strange scenes around the banks during the day. At the Emigrant Industrial savings bank in Chambers street there was a crowd of from 200 to 400 depositors all day. The great majority of them were poor women, and a very large percentage of the men were Italians. t Germans Were Very Anxious. The bank that had the most trouble was T the German Savings bank at Fourth avenue and Fourteenth street. There were S hundreds of women and many men around I o its doors all day. Notice of sixty days was required for withdrawals of more r than $100. The bank was kept open until r 8p. m., as is customary on Monday, but i not one-half of the depositors who wanted money could get it owing to rush. The time rule was in force at the Dime Savings on ( Broadway and Thirty-second streets, at S the Franklin on Eighth avenue, the Irving I and the East River. Poles and Russians Didn't Understand. S A Jewish paper printed a statement that I the "Neb." state bank had failed, meanr ing the Nebraska State bank. This r caused a run on the state bank at 378 Grand street, which was kept up all day. t The Polish and Russian Jews, who are the 1 depositors in the Grand Street State bank, i did not know what "Neb." meant. They a came to the conclusion that it was a typon graphical error and that the bank referred to was their bank, and when it was opened t there was a rush of depositors to draw out f their money. It was impossible to reast sure them, SO the officers simply paid out every account that was called for and preh pared to stand a run. S Brooklyn Adopts the Time Rule. All the savings banks in Brooklyn h adopted the ninety, sixty and thirty day rule for the withdrawal of deposits. The C Dime of Brooklyn, the Brooklyn, the A South Erooklyn, the Williamsburg, the Kings County, the German and the Germania Savings banks posted ninety day notices. The other banks are about evenly divided on the sixty and thirty day rules. B

6. September 1, 1893 New-York Tribune New York, NY

Article from New-York Tribune, September 1, 1893

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DEPOSITORS CHANGED THEIR MINDS. WHEN THEY COULD GET MONEY FROM SAVINGS BANKS THEY DIDN'T WANT IT. Depositors' notices of withdrawal of funds from the savings banks expired for several of the banks yesterday. They were the institutions which required only thirty days' notice for the withdrawal of large amounts. As a significant sign of the times. the outcome yesterday was watched with a great deal of interest, and, as it also proved, with a great amount of satisfaction. The calls on the banks were extremely light. In most cases they did exceed 10 per cent of the notices, and in some instances the proportion was much less. At the Emigrant Industrial Savings Bank. No. 49 Chambers-st., notices to the amount of over $215,000 expired. but of this only $26,000 was taken out. At the Bowery Savings Bank the expired notices called for $33,000, of which $3,200 was taken out. The East River Savings Bank paid out less than 10 per cent of the amount affected by the time notices. Reports from other institutions were equally encouraging.

7. January 8, 1898 The Herald Los Angeles, CA

Article from The Herald, January 8, 1898

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OFFICE OF THE HERALD January 7, 1898. "There are more fools than sages; and among the sages there is more folly than wisdom." + + There is a general feeling among the officials of the savings banks of New York city that beginning with the new year there will be a tendency toward a lower rate of interest than has heretofore prevailed. In fact, says the American Banker, some of the semi-annual announcements of dividends just issued are accompanied by a notice that the rate of interest paid to depositors will not exceed 31/2 per cent. William Hanhart, assistant controller of the Emigrant Industrial Savings bank, said: "Conditions are such now that the various banks are not earning as much as they did some years ago, and it is impracticable to pay a rate of interest that would cause a drain upon the surplus. No matter how strong a bank is or how secure the times there is no telling at what minute an emergency may arise which would require all the surplus to tide matters over. Our bank, for instance, paid 31/2 per cent from 1884 up 1893, when a period of panic caused such heavy run that our surplus had to be drawn upon. and for the next two years we were able to pay 4 per cent to depositors. Last year, however, our rate was again lowered to 31/2 per cent. and it will assuredly not be more than that this year." One cause of the tendency to lower rates, as given by men who deal largely with the savings institutions, is that the insurance and trust companies and other corporations with large surpluses are willing to loan money on real estate at as low a rate as B1/2, and in some instances 3 per cent. The banks formerly got these loans at 41/2 and per cent, and they have been forced by the competition to reduce the rates. + + + The operations of the San Francisco clearing house for the past year show agI gregate clearings of $751,246,445 as against $683,229,598 for the year 1896. The amount required to settle balances last month was $8,660,943, against $6,489,281 for the same month last year. Balances for the year were $96,115,499, against $90,491,483 in 1896. The clearings for the last year show an Increase of 10 per cent over 1896. The total Is the largest in several years, and indicates general improvement in business. + Comptroller of the currency Dawes has given out an abstract of the reports of the condition, December 16th. of the national S banks of San Francisco. It shows total resources of $15,243,967; loans and discounts amounting to $8,408,912 and a reserve of $4,143,230, of which $3,178,812 was in gold. The deposits aggregated $7,610,072. and the average reserve held was 45.56 per cent. + The supreme court of Georgia held. in the recent case of the German-American Mutual Life association vs. Farley. execE utor, that where, in a written application for insurance which was prepared by the agent of the company who solicited the insurance and delivered the policy, the applicant made certain statements as to his physical condition, as to the general state of his health, as to his rejection by other insurers to whom he had previously applied for insurance, which statements were warranted by him to be true, and which If false might materially affect the risk, a policy of insurance which recited that it was issued in consideration of certain statements and of certain other valuable considerations therein expressed, but which did not in terms provide that it should be void in case such statements of fact should prove to be untrue, it was not voided as a consequence of the mere falsity of any such statements where It appeared, that even if they were false they were not fraudulently made. and that the fact that they were false was known to the agent of the insurer, who had himself prepared the application and procured the applicant to sign it. The court further held, that if after a policy of insurance had been issued knowledge were brought la home to the insurer that certain statements material to the risk made by the assured to procure insurance were untrue, but which were by him warranted to be true, and notwithstanding such knowledge the insurer thereafter received the premiums in accordance with the terms of the policy, he would after loss be held to have waived any forfeiture which might otherwise have resulted from such breach of warranty and would be thereafterestopped to deny the validity of the policy. + 18 th The following monthy estimates of fire in loss in California and over the coast during this year will be found not very far fr pat of the way, says the Insurance Sun, u when the official figures are filed: California. Pacific Coast. $ 122.000 215.000 January