15785. Empire City Savings Bank (New York, NY)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
October 24, 1907
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
dba84bcf

Response Measures

None

Description

The Empire City Savings Bank posted a notice invoking the 30-day/60-day withdrawal clause on Oct 24, 1907 out of fear of runs after neighboring Hamilton and Twelfth Ward banks suspended. The bank was solvent, paid small withdrawals, and resumed normal payments after the notice period (no failure or receivership).

Events (3)

1. October 24, 1907 Other
Newspaper Excerpt
Depositors were told the bank would take advantage of only thirty days; officers declared the institution entirely solvent and deposits estimated at about $3,000,000-$3,500,000 in various accounts.
Source
newspapers
2. October 24, 1907 Suspension
Cause
Local Banks
Cause Details
Officials invoked the 30-day suspension because of fear of a run following suspension of the Hamilton and Twelfth Ward banks in the same neighborhood.
Newspaper Excerpt
This bank has suspended payment for thirty days on account of heavy withdrawals of deposits.
Source
newspapers
3. November 24, 1907 Reopening
Newspaper Excerpt
THIRTY-DAY NOTICE UP, AND NO RUN. Few Depositors Withdraw Money from Empire City Savings Bank.
Source
newspapers

Newspaper Articles (20)

Article from Evening Star, October 24, 1907

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Takes Thirty Days' Grace. The Twelfth Ward Bank, the other state institution, is at 147 East 125th street It has two branches, one at 173 East 116th street and another at 1927 3d avenue, Its capital stock is $200,000. The New Amsterdam National Bank, which cleared for the Twelfth Ward Bank yesterday gave notice that it would not clear that bank hereafter. Bankers express the opinion that the Twelfth Ward Bank has been well managed and is in a perfectly solvent condition. It is thought that the state Banking department in closing the institution did so on account of a run upon the institution. At 10 o'clock this notice was posted on its doors: "This bank is compelled to suspend payment owing to inability to procure sufficient cash to meet current payments." Following the announcement of the suspension of the Hamilton Bank the Empire City Savings Bank. at 231 West 125th street, turned away depositors who wished to make withdrawals Under its by-laws the bank can claim ninety days before paying demands. Customers who wished to draw out money today were told that the bank would take advantage of only thirty days. The savings bank depends for its currency on the Hamilton Bank A meeting of the directors of the Empire City was held before banking hours, at which it was decided to take advantage of the clause in the bank's bylaws. Its deposits are estimated at $3,000,000.


Article from The Evening Star and Newark Advertiser, October 24, 1907

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them, the supply being maintained by heavy shipments of currency from the treasury at Washington. It was announced early this afternoon that John D. Rockefeller had deposited $10,000,000 with the Union Trust Company, one of the city's oldest and strongest trust companies, the money to be used by that company in aiding the trust company situation generally. The suspension of the Hamilton Bank was announced at 9 o'clock this morning. Its place of business is in 125th street, near Eighth avenue. The explanation is given that pending the complete restoration of public confidence the officers had concluded to close in justice to all concerned. Following the announcement of the suspension of the Hamilton Bank came the news that the Twelfth Ward Bank, located at 125th street and Lexington avenue, had suspended payment. The Twelfth Ward Bank is a State institution, and a State bank examiner has been placed in charge of its affairs. According to a recent statement the institution owed depositors about $3,000,000. The Empire City Savings Bank, located at 231 West 125th street, posted a notice this morning announcing its suspension for thirty days under the banking laws. The officials of the bank declare that the institution is entirely solvent, but that they decided to avail themselves of the thirty days' notice of withdrawal under the State law, because they feared a run owing to the suspension of payment by the Hamilton and Twelfth Ward banks in the same neighborhood. The Empire City Savings Bank, according to a recent statement, owed its depositors about $3,300,000. The run on the Dollar Savings Bank, in the Bronx, which began Tuesday, continued today. Nearly 300 depositors waiting for an opportunity to withdraw their savings were lined up outside the building when daylight came. Many of them, a majority of whom were women, had stood all night in the line. A large percentage of this bank's depositors are foreigners. The stock market's expression at the outset to the feeling of satisfaction over the measures announced over night to end the financial crisis attracted attention at once. Active buying orders were numerous and a buoyant upshoot of prices resulted. The opening pace proved too rapid to be maintained, however, and there was some reaction, but the activity immediately diminished at the lower prices. Westinghouse Electric rose 10 and American Tobacco preferred 48/4. There were advances of 23/4 to 1% in market leaders, but in a few stocks f the pressure of liquidation still made itself felt, Sault Sainte Marie running off 4½, Southern Pacific preferred 21/3, S Interborough-Metropolitan preferred S and Sugar 1½, and Missouri Pacific S and Toledo, St. Louis and Western a t point. a All the overnight developments are S declared to be reassuring. The series of conferences last night, participated n in by Secretary Cortelyou, J. Pierpont d Morgan, John A. Stewart, James Stillr man and other representative bankers and men of affairs, disclosed an agreet ment in the opinion that the situation is well in hand and that with the $25,000,000 government deposits to be made V by Secretary Cortelyou today there S will not only be enough cash on hand, but even more than might be needed h to meet safely any emergency.


Article from Perth Amboy Evening News, October 24, 1907

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NEW YORK, Oct. 24:-The Twelfth Ward and the Hamilton, both Harlem banks, each capitalized at $200,000, the former having individual deposits of $3,000,000 and the latter $7,000,000, suspended payment this morning. The state banking department is now in charge of the institutions. The Hamilton bank posted a notice stating that it was entirely solvent and in justice to all depositors, It had suspended payments until confidence is restored. The result of these suspensions is that Harlem and the Bronx are in an uproar and timid depositors are flocking to various banks and withdrawing their funds. A brief summary of New York's aancial condition today is: Stock market opened buoyantly with advances from one to two and a half points. The run on the Trust Company of America continues. The clearing house committee is in session to consider the applications for aid. The Empire City Savings bank was the first to take advantage of the state law compelling depositors to give sixty days' notice before drawing their accounts. Secretary Cortelyou will today deposit $25,000,000 in the banks of the city and John D. Rockefeller will assist the money market by depositing cash in various banks. Word was received from Washington that President Roosevelt would go to any length to prevent a paic. J. P. Morgan hopes for the best. (Continued on page 2.)


Article from The Fairmont West Virginian, October 24, 1907

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MARKET OPENED STRONGER BUT MORE BANKS FAILED NEW YORK, Oct. 24.-With the NEW YORK. Oct. 24.-The stock London market strong, a general adopened buoyantly with advance of vance of from one to three points refrom one to two and a half points. corded in the entire list, it Is anticiHarriman stocks were especially pated the market here will open strong In Initial quotations. stronger, although the big brokers are Bankers declare the Tewlfth ward taking no chances and are prepared to bank is in good shape. It is thought support the market. A line of dethe closing was a safeguard. The positors was before the doors of the Empire City Savings Bank was first The Trust Company of America long to take advantage of the State law before opening time. Officials declarcompelling depositors to give sixty they had plenty of money to meet days' notice before their accounts the demands. Associated Trust Comcould be withdrawn. This was on acpanies declared they would extend all count of the excitement following the needed aid. losing of other institutions. Its deA run is impending on the Lincoln positors are estimated at three milTrust Company. A crowd of deposilions five hundred thousand. It Is tors was waiting fore the doors to thought other savings banks will folopen. Officers of the concern anlow its example. nounce plenty of cash to meet the deThis notice has been posted on mands. Hamilton Bank door. This bank is abThe Twelfth Ward Bank and the solutely solvent. In justice to deposiHamilton Bank, both small, suspended tors It has suspended until public conthis morning. The State Banking Defidence Is restored. The run on the partment is in charge of both banks Trust Company of America continues The Twelfth Ward Bank had a paid up unchecked. Depositors are being paid capital stock of two hundred thousand, as fast as they come. Two hundred surplus and profits estimated at two thousand dollars was deposited at the hundred twenty one-thousand six hun sub-treasury for immediate transfer dred and eighty dollars. The Hamilto St. Louis. ton had a paid up capital of two hunThe First National bank loaned two dred sand, surplus and profits, million at fifty per cent. but there hundred and seventy. Individual dehas been no other supply. Many posits, seven million: discounts, four loans were called in all over the million six hundred sixty two thous street. A large selling was the liquiand nine hundred and forty. dation of loans, but there were also PITTSBURG, Pa. Oct. 24.-The renewed attacks by bear operators Stock Exchange to-day by unanimous that helped force prices down to lowvote of the board of directors was not est points reached SO far to-day, this reopened. No Official statements was noon report. Prices of many stocks made. One official stated it was hard late forenoon reached the lowest to tell when it would resume business points in years. which was taken to mean to wait till Judge Ward in the United States the New York storm subsides. Circuit Court here to-day appointed It was stated officially by Receiver E. M. Herr, T. H. Given and Chas. T. Hart Given for the Westhinghorse Burlingham receivers for the WestElectric and Manufacturing Company, inghouse Electric and Mrg. Co. for that the plants would positive posithe Southern district of New York. tively continue operations. A joint bond of twenty thousand dolThe Pittsburg financial situation is lars were required. They were ordeclared sound, no need of fear of idereid toi take charge of the property trouble as result of New York storm. and assets of the company here.


Article from The Seattle Star, October 24, 1907

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(By United Press.) NEW YORK, Oct. 24.-The Twelfth Ward and Hamilton banks, small institutions, suspended this morning. The state banking department is in charge. The Hamilton bank has six branches in Harlem and one in Williamsburg. The Mercantile National bank formerly cleared for the Hamilton, which has a paid up capital of $200,000 and individual deposits of $7,000,000. Its loans and discounts amount to $4.662,940. The Twelfth Ward bank has a paid up capital of $200,000, individual deposits of $3,000,000, and loans and discounts of $2,400,000. Bankers say that the Twelfth Ward bank is solvent. It is thought the state banking department closed the bank to safeguard Its depositors. The New Amsterdam National bank announced yesterday that It would no longer clear for the Twelfth Ward. Morgan Works-Not Talking. A notice on the Hamilton bank door says: "This bank is absolutely solvent. In justice to all depositors It suspended payments until public confidence is restored.' Harlem and the Bronx are in an uproar. Depositors are flocking to the various banks to draw their funds, and the run on the Trust Company of America continues. The line of depositors extends for blocks. They are being paid at the rate of one a minute. There is plenty of money on hand. J. Pierpont Morgan said at the opening of the Stock Exchange this morning: "The first two hours will tell the tale. We have done all we can. I hope for the best. This is the time for action, not talk." The Empire City Savings bank is the first bank to take advantage of the state law compelling depositors to give 60 days' notice before withdrawing their accounts. Its deposits amount to $3,500,000. Judge Ward in the district court today appointed E. M. Herr, T. H. Gisten and Charles Burlingham ancillary receivers for the Westinghouse companies for the Southern district of New York.


Article from Pine Bluff Daily Graphic, October 24, 1907

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ROCKEFELLER THERE NO WILL BE PANIC Many bulletins telling of the wild has assumed charge of the embarrassstate of affairs in New York and esed institutions. They merely suspended payment and the Banking Departpecially on Wall street, were receivment took hold immediately. ed at the headquarters of the Pine It is rumored in New York that Bluff Board of Trade today. The sitWannamaker and Company has gone uation in the national metropolis is into the hands of a receiver. Big alarming. but at a late hour this af- runs were made on several trust ternoon John D. Rockefeller appeared companies and various minor banks at the office of the Union Trust Com- in New York during the day, but the pany, according to a dispatch, and ad- excitement is subsiding this afternoon vanced $10,000,000 for the Union when call money dropped to twenty Trust Company of America. Almost per cent, compared with a close of instantly after this announcement was seventy per cent yesterday. made call money, which had adThe directors of the defunct Knickvanced to 100 per cent, dropped to erbocker Trust bank, which recently twenty per cent and the various ficlosed, are meeting today and it is benanciers are breathing easier this aflieved that the company will resume ternoon. The crisis, according to business tomorrow, if not sooner. late information from New York, has The First National bank today loanRockefeller is believed to passed. ed $2,500,000 at fifty per cent have saved the day. Cotton is weak on the boards beIn Nevada, to avoid a panic in financause of the bad reports from Wall street. cial circles, the governor has declared a three days holiday and all Well posted financiers declare that banks in the State are closed. there will be no panic and that men The Empire City Savings Bank and of means, together with the United the Twelfth Ward Banks went to the States government, have successfully wall this morning and the State piloted the grave situation to a more favorable point. Banking Department of New York


Article from The News-Democrat, October 24, 1907

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a recent statement, the institution owed depositors about $3,000,000. EMPIRE CITY BANK. The Empire City Savings bank, located at 231, West 125th street, posted a notice this morning announcing their suspension for 30 days under the banking laws. The officials of the bank declare that the institution is entirely solvent, but that they decided to avail themselves of the 30-day notice of withdrawal under the state law, because they feared a run owing to the suspension of payment by the Hamilton and Twelfth Ward banks in the same neighborhood. The Empire City Savings bank, according to a recent statement, owed its depositors about $3,300,000. The Empire City Savings bank is one of the city's comparatively minor organizations. Its suspension is without bearing on the general financial situation in New York. The run on the Dollar Savings bank in the Bronx, which began Tuesday, continued today. Nearly 300 depositors were lined up outside the building when daylight came. Many of them, a majority of whom were women, had stood all night in the line. A large percentage of the Dollar bank's depositors are foreigners. The sub-treasury received $10,000,000 in cash from Washington this morning. The shipment consisted of bills of all denominations, largely lower denominations, in order to meet every demand for small bills. This permitted Secretary Cortelyou to deny reports that the supply of small bills was not sufficient to meet current needs. He says the amount received today amply meets present requirements. PERKINS IS PLEASED. After a conference with Secretary Cortelyou this morning. George W. Perkins, of J. P. Morgan & Co., said: "The situation is working itself out satisfactorily. Confidence is being restored. and I can say that the financial institutions of the city are perfectly solvent. Today is better than yesterday, and tomorrow will be better than today." At the office of the state bank examiners it was stated today that up to 10:45 a. m., they had received the report of the suspension of only three suburban banks, and It was believed by the examiners that other than these three minor institutions. no suspensions would be recorded today. One of the examiners said that the Hamilton, Twelfth Ward and Empire City bank are perfectly solvent. Call money opened at 50 per cent. Weakness in the stock market apparently was due to forced liquidation, and represented to a considerable extent the closing out of stocks carried to speculative account on margins. The decline in prices after 11 o'clock became more precipitate, Union Pacific selling down to 1061/2. St. Paul, to 102½. Northern Pacific to 106, Reading to 75½. and Atchison, to 73. OTHER BANKERS TALK. The situation of the Trust Company of America at noon was appreciably better. Oakleigh Thorne said to The Associated Press that they were getting on very well: that a good many depositors were returning their money and withdrawals were by no means so heavy as they had reason to expect from yesterday's experience; that the applicants at the paying teller's window had fallen off, both at the parent bank and at the Colonial, and he had no solicitude as to the future. George R. Sheldon, one of the leading bankers, said at noon: "There is absolutely no cause for alarm. The situation may be regarded as clear, and there is a decided improvement today. The banks and trust companies are perfectly solvent and will meet any demands made upon them." Mr. Sheldon made the above statement at the close of the conference with J. P. Morgan and other bankers. (Continued on Page Two.)


Article from Alexandria Gazette, October 24, 1907

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Today's Telegraphic News. Excitement in the Market. New York, Oct. 24 - Wh the London market strongand a general advance of from 1 to 3 points recorded In the entire list, it was anticipated that the market here would open stronger, although the big brokers are taking no chances and are prepared, as on yesterday, to support the market. The run on the Trust Company of America will continue today, but the officials claim they have money enough in the value to ensure the payment of all claims made. The line of depositors formed very early today at the main office of the company and its two branches and had increased 80 that it encroached upon the street. Associated trust companies declare they will extend all needed aid to the concern. A run is impending on the Lincoln Trust at 208 Fifth avenue. At 9:30 a crowd of depositors had gathered in front of the doors aud had been forced to form a line by the police reserves who had been summoned. The officers of the concern announce they will open the doors as usual at 10 o'clock and are prepared to meet all demands. New York, Oct, 24.-The Twelfth Ward Bank and the Hamilton Bank, both small institutions, suspended this morning. The Twelf h Ward has a paid up capital of $200,000. The surplus and profits are estimated at $221 680. There are due to banks $165,590; individual deposits $3,000,000 and loans and discounts about $2,400.000 The Hamilton Bank has a paid up capital of $200,000; surplus and profi 8 of $282,270; individual deposits of $7,000,000; loans and discounts $4,662,840. A notice has been posted on the door stating that the bank is solvent. New York, Oct. 24.-The Empire City Savings Bank at 231 W. 125:h street is the first to take advantage of the State law, compelling depositors to give sixty days' notice before their accounts can be withdrawn. Two hundred thousand dollars was deposited at the sub-treasury today for immediate transfer to St. Louis. All interest in the stock exchange is centered in the loan crowd. The First National Bank loaned $2,000,000 at 50 per cent. but there has since been no other reply. Many loans bave been called in all over the street and the collateral sold because of inability of borrowers to respond to these calls. A large part of the selling was this liquidation of loars, but there was also renewed attacks by bear operators that helped force prices down to the lowest level reached 80 far today. The prices of many stocks in the late forenoon reached the lowest point touched in years. The declines 80 far were not sensational, but were disastrous because they continued the downward movement already so long in progress.


Article from Evening Journal, October 24, 1907

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MORGAN AVERTS MONEY PANIC Believed That the financiers Have Restored Confidence in New York TWO BANKS CLOSE AND STOCKS TUMBLE By THE JOURNAL'S Special Wire. NEW YORK, Oct. 21-Two state banks in possession of the State Banking Ex aminer. a sweeping FGR cont nuing on the Trust Company of Ame.ica and miner rung on other trust companies and ings banks, one of which compelled to insist on thirty to sixty day notice fore withdrawals can be made. the market feverish but and the money market under sure summarizes to-day local financial world. Morgan hasprobably won the important battle of his financial Assisted by John D. Rockefel Standard Oil millions, by Secretary the Treasury Cortelyoh and the ceg in of federal government he restoring confidence to such the results that unless some unforeseen stock exchange and firms will back to normal the end of the week The loaning or the stock exchange was to-day the storm centre, There was urgent mand for money and the rate for call funds ranged from fifty to one hundred The National copper bank $800,000 nity per cent: the First National $2,000,000 at a similar figure. and syndicate of local bankers paid out three millions figures which covered the fluctuations While going on John D. Rocke feller's personal agents Were loaning at per cent., as was all of the Standard OII banks. The National City loaned $4,500,000 this rate. Scarelty of money. however at compelled many to sacrifice stock holdings with the result that prices covered wide range and fluctuated from high low alternately. The new State superIntendent of banks took charge to-day and all State banks are to be thoroughly examined and compelled to adopt more conger varive methods. The Knickerbocker matter is still unchanged. Huge Sums Withdrawn The directors met to-day and It was announced that they were trying to range for loans in the West which would enable them to resume soon The officials of the Hamliton and Twelfth Ward Banks, which closed today. also Insist they will resume next week, when the excitement has quieted down. solvent Both are said to be absolutely Deputy Superintendent of Banks Skinner estimates there have beer withdrawn from the local banks during the past week or two more than safe $200,000,000. Most of this is now in deposit vaults. While the Trust Company of America will have paid out exceeding five lions before it closes for the day o'clock. It has also taken in in deposits much more than one million dollars The officials declare the backbone the run has been broken and another of da ywill see Its end Two Banks Suspended The Twelfth Ward Bank and the Hamilton Bank, both small institutions suspended this morning The State Banking Department took charge of both banks. The Hamilton Bank has Its main office at 215 West 125th street, with many branches The Twelfth Ward Bank has a paid up capital of $300,000. The Hamilton Bank has a paid up capital of $200,000; surplus and profits of $282,270; individual deposits of $7.000,000. This notice has been posted on the doors of the Hamilton Bank: "This bank is absolutely solvent. In justice to all depositors it has suspended payments until public contidence been restored. Timid Depositors Alarmed. Harlem and the Bronx is in an up. roar. Timid depositors are flocking the various banks there with pass books in their hands and drawing out their funds The closing of the Hamllton and Twelfth Ward Banks is severe blow to the business men, who have running accounts in the institutions. The run on the Trust Comapny of America continues unchecked and the line of waiting depositors extends for blocks. They are being paid off rate of one a minute and Treasurer Fonda says he has plenty of money on hand. The clearing house committee is In session prepared to consider applications for aid. President James Still. man. of the National City Bank, present. Must Give Notice The Empire City Savings Bank at 231 West 125th street, is the first to take advantage of the State law com. pelling depositors to give sixty days notice before their accounts can b withdrawn. This is done because of the excite. ment in Harlem and the Bronx following the close of the Twelfth Ward and Hamliton banks. Other savings banks are expected to take similar tion once. Decline in Stocks All interest in the stock exchange is centered in the loan crowd. The First National Bank loaned $2,000.00 er cent... but there has been no other suly. Many loans have been called all over the street and the collateral sold because of Inability of borrowers to resend to these calls A large part of the selling was this liquidation of loans, but there was also renewed attacks by bear operaors that helped force prices down to the lowest level reached so far to-day The prices of many stocks in the late forenoon reached the lowest point touched in years The declines were disastrour because they continued the downward movement already 80 long in progress The market had opened strong Hear the real facts from Maine


Article from Palestine Daily Herald, October 24, 1907

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Two Other Banks Suspended Today. Special to the Herald. New York, Oct. 24.-The Twelfth Ward Bank and the Hamilton Bank, both small institutions, suspended payments today, and closed up. The state is now in charge of two banks. The bankers say the Twelfth Ward Bank is solvent. The Empire City Savings Bank took advantage of the sixty days' notice from its depositors. The Hamilton Bank announces that it is solvent, but will remain closed until confidence is restored. The run on the Trust Company of America continues. J. P. Morgan said today: "The first two hours will tell the tale. We have done all we can do for the best interests." Secretary Cortelyou has released twenty-five million dollars from the sub-treasury, and John D. Rockefeller announces his intention to use his private reserve toward restoring confidence.


Article from Albuquerque Citizen, October 24, 1907

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MEN OF MONEY ARE GIVING AID Most Acute Local Crisis Since 1884 Is Fast Passing Away in Empire City and Confidence Is Resuming Sway Rapidly. New York, Oct. 24.-A series of conferences last night participated in by Secretary Cortelyou, J. Pierpont Morgan, John A. Stewart, James Stillman, and other representative men of affairs, disclosed an agreement in opinion that the banking situation is well in hand and that with government deposits to be made by Secretary Cortelyou today, there will not only be enough cash on hand, but even more than might be needed safely in any emergency. Early this morning Secretary Cortelyou said he had directed deposits in this city of twenty-five million dollars and predicted a speedy return of confidence, which circumstances, he declared. warrant. Factors in Improvement. The run on the Trust Company of America was continued this morning. The determination of other trust companies to aid the Trust Company of America, Mr. Morgan's pronounced part in the efforts to stay the panic, and the reassuring statements by John D. Rockefeller and other men of money, it is believed, cannot fail to help what is in some respects, the most acute money crisis New York has seen since the GrantWard failure in 1884. Governor Hughes' prompt appointment of a new superintendent of banks in the person of Clarke William, a prominent banker here, to fill the vacancy created this week, and steps to have the Knickerbocker Trust company resume business, are other satisfactory signs. Temporarily Suspended. The Hamilton bank on West 125th street, and the 12th Ward bank today suspended payments to depositors. The banks claim to be solvent and propose to reopen when public confidence is restored. The Tmpire City Savings bank, also posted a notice of suspension for thirty days under the banking laws. Its officers feared a run, they said, because of the suspension of the Hamilton and Twelfth Ward banks, which are in the same neighborhood. The Empire City Savings bank owes depositors about three millions of dollars. Small Institutions. The Hamilton bank was not a large institution but had deposits of about seven millions. E. R. Thomas, who was associated with Heinze and Morse in several financial ventures, resigned as president after the break in United Copper, and William R. Montgomery was elected president of this bank. No Trading Today. Pittsburg, Pa., Oct. 24.-At a meeting today of the members of the Pittsburg stock exchange it was decided not to re-open for business today.


Article from The Times Dispatch, October 25, 1907

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Napoleonic Stroke by Coterie of Financiers Elicits Cheer For Him. POUR OUT MONEY TO SAVE BROKERS More' Than Hundred Millions Thrown Into Market by Morgan, Rockefeller, the Government and Other Agencies, and Money Rate Goes Down. NEW YORK, October 24.-As a result of to-day's developments in the financial world, there is every indication that the crisis in the banking and trust company 'situation has been safely passed. The Trust Company of America, all through the day's banking hours. paid out money to depositors as rapidly as possible, and closed the day A with all demands having been met. very favorable feature of the situation respecting this company was that it was able to make its payments with very little assistance, and another was that the company received over its counter in the morning hours in ordlnary deposits more than $1,000,000. It was the general impression in financial circles that this company, having withstood a two-days' run with so little trouble, was undoubtedly in good condition to continue its business: and, in fact. that company and its affairs were not considered as a factor any longer in the general situation. As the Trust Company of America had been the centre of the recent financlal storm, it was accepted that the ability it had thus shown to weather the storm was a clear indication that the financial sky had cleared and that a period of fair weather was now well In sight. Day's Noteworthy Episodes. The day was marged by three noteworthy episodes. First and earliest in the day came the announcement of trouble in three minor State banks in Harlem-the Hamilton Bank, the Twelfth Ward Bank and the Empire City Savings Bank. These banks transacted only a neighborhood business, and their suspension of payment was absolutely without significance as bearing on the general situation. State Bank Examiner Judson, however, declared this afternoon that all three were solvent, and that their depositors would lose nothing. The second episode was a run inaugurated against the Lincoln Trust Company. The run against this company was steady throughout the day, but the sums withdrawn were not large. At the close of the day the company's officials announced that they were fully able to meet all obligations. By far the most notable, even dramatic, episode of the day was the emptying of millions of money into the Stock Exchange through a pool headed by J. P. Morgan and other financiers, in order to avert a ruthless selling out of stocks held by brokers, which was threatened because of their inability to obtain renewals of loans on which these stocks had been carried. A remarkable.condition brought about this extreme strngency in money. which had gradually forced the interest rate up to an almost unprecedented figure. Denonuced the Usurers. Certain large interests of great financial resources had been charging recently what was, in effect, If not in law, usurious rates of interest on all call loans. The institution that had been engaged in this practice was itself a member of the clearing-house and was severely criticised by other bankers for its action on the ground that this added an unnecessary complication and strain to the money situation. As a result of the criticism this institution withdrew its support and declined to offer money cn call on the Stock Exchange. The effect of this was to run the rate for money to-day up to 100 per cent., and when that figure was quoted an extremely sharp decline resulted in the stock market, Union Pacific, a 10 per cent. stock, selling down to par. Notwithstanding the high rate for money that might have been ob


Article from The Brunswick News, October 25, 1907

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THE FINANCES OF NEW YORK CITY FEDERAL GOVERNMENT COMES TO THE RESCUE OF GOTHAM BANKS. DEPASITS SUM IF $25,000,000 in Three Other Banking Institution New York Under the Crash Suspended Payments Yesterday. New York, Oct 24.-All over night developments in the financial situation were reassuring A series of con ferences last night were participated in by Secretary Cortelyou, J. Pier pont Morgan, John A. Stewart,James Stillman and others and disclosed an agreement in the opinion that the banking situation is well in hand, and that, with the government desposits to The made today, there will not only be enough cash on and but even more than might be needed to meet . safely any emerge In a statementagiven out by Sec retary Cortelyouthe suggested theutmost franknes and the statements to the public regarding the conditions, and said: "Strong and able men are render ing aid, and in behalf ottle Treasury Department. I may say I believe it is my duty to do SO and I shall do it in the large st. way, possible whatever may he necessary to effect the relief. The Secretary then announced that he had directed deposits made in this city to the extent of $25,000,000. The run on the Trust Company of America was continued this morning. The Tweltth Ward Bank suspended payments to depositors, and the state examiner will be put in charge. At 9 o'clock it was announced that the Hamilton Bank, on One Hundred and Twentyfifth street, had decided to suspend payment pending a complete restoring of confidence. Note was posted which said that the bank was destinent. The Hamilton is not one of the large instittuions and is not a representative New York bank. The Empire City Savings Bank, at 3 West One Hundred and Twentya under fifthstreet. for thirty days, announced the suspension banking laws. The officials declare that the bank is solvent, but feared a run, OWing to the suspension of the Hamilton Bank and the Twelfth Ward Bank. The Empire owed the depositors about $3,300,000. President Thorne, of the Trust Company of America, after a meeting of the directors this morning, told the waiting crowd may the company was prepared to meet all the demands solvent. About were was hundred entirely line in front main office at 23.30 o'clock. change Classed meetPa. Oo Durg not to reopen the exchange today. NEGRO STOLE WATCH NOW HE A pretty solid from Mrs. ago, was recess terday. John and, known negi of that length after keep time. we the pawnbrokCTS to were put on he watch was stolen ntly when the negro presented the watch he was and is now in


Article from The Washington Herald, October 25, 1907

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DEMANDS THIRTY DAYS' TIME. Empire City Savings Bank Takes Advantage of Its Legal Rights. New York, Oct. 24.-The first savings bank in the city to take advantage of the law and require its depositors who reached the bank to-day with their pass books to give notice of withdrawals, was the Empire City Savings Bank, at 231 West 125th street. Depositors who reached the bank to-day found this notice on the door: "This bank has suspended payment for thirty days on account of heavy withdrawals of deposits." This notice was posted up at the direction of President Isaac A. Hopper, who decided that it was the wisest thing to do under the circumstances. A good many got the impression at first that the bank had closed its doors. On the contrary, those who hurried to the bank from all over Harlem found the doors open, with Mr. Hopper standing outside, telling depositors just what to do if they wanted to withdraw their money at the end of the thirty days. What they had to do was to get in line with their bank books, and upon reaching the window of the paying teller have them stamped with the date. This also is required by the law when a bank gives such a notice. Mr. Hopper also explained that those who got their books stamped would lose interest from October 1, even if at the end of thirty days they decided not to take out their money.


Article from New-York Tribune, October 27, 1907

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MANHATTAN RUNS ABATE. Nearly All Demands Are Paid and Excitement Is Subsiding. With the exception of runs 8n the Broadway Trust Company and the Northern Bank of New York, yesterday morning, the latter attended by disorder at the close. and the continued but decreased run on the Lincoln Trust Company, the bank situation was much improved and there were no further suspensions reported in Manhattan The situation in Harlem and The Bronx showed improvement also. The reflex of the restored confidence in Wall Street was apparent in the reduced crowds at the Harlem Savings Bank and the Dollar Savings Bank in The Bronx, where there have been runs. The run on the Northern Bank at Broadway and 4th street, resulted in the arrest of two depositors who refused to leave the bank when It closed at 12 o'clock, as allowed by law. When Henry Dimse. president of the bank, closed the doors, he said: "This bank is solvent. but we cannot pay off any more to-day A line of four hundred depositors extended at that hour from the paying teller's window to the street. Henry A. Belden, the cashier. came out and asked the depositors to leave the building When some of them refused Mr. Dimse telephoned for the police. but the depositors were stubborn and the police had no easy work in dispersing them. Eventually all of them left except the two men who were atrested. The Northern Bank has a capitalization of $300,000 and surplus and undivided profits of $239,099 The run on the Broadway Trust Company, at No. 756 Broadway, not far from the Northern Bank began at the opening of business An hour after the doors were opened the line contained three hundred and fity patrons. As the line grew Frederick G. Lee. vice-president, announced that the company would honor for the day only demands that were needed for payrolls. 'We are solvent, but we must have time," he said. Many of those waiting were there to draw money to pay off employes of nearby factories. and the money was sent to them in the afternoon. M. M Belding, jr., president of the company, said that $2,400,000 had been paid out in the week. He added "Up this minute we have paid off every demand. The Broadway Trust Company is capitalized at $700,000 and has deposits of $4,057,444. More than two-thirds of the deposits have been withdrawn, Mr. Belding said. The Harlem Savings Bank continued paying all small accounts, having availed itself the day before of the sixty-day clause on accounts of more than $100. The closing of the doors at the usual hour left about one hundred depositors in line. The readiness with which the Dollar Savings Bank in The Bronx has met all demands since the run began on Wednesday had its good effect, and while not altogether checked the demand was much diminished. Men and women had remained all night in the line in front of the bank, and some of the latter were nearly exhausted. The bank did not close at noon at usual on yesterday. but remained open until 3 o'clock, up to which time one thousand accounts had been closed, representing half of the $600,000 cash on hand. The excitement of a few days ago in Wall street, caused by the run on the Trust Company of America, was altogether absent yesterday. The all night crowd was much smaller and the paying out went on with reasonable rapidity. The company received $500,000 in deposits. Oakleigh Thorne, president of the company, said: "The institution occupies a stronger position at the end of this day than it did before. Colonel Heman Dowd. the vice-president, said: "The number of withdrawals were fewer to-day than we expected, and the deposits greater than we expected.' The situation at the Colonial branch of the Trust Company of America was much the same as at the main office. At both the main office and the Colonial branch the payments were made up to the usual Saturday closing hour. There were two hundred in line when the Lincoln Trust Company closed its day's business Louis Stern, one of the directors, said the Institution would meet every demand. Some of those in line when the bank closed were still there last night, apparently with the intention of remaining until Monday. When the Empire City Savings Bank, at No. 231 West 125th street, opened its doors there were four women and one man ready to hand in their passbooks for withdrawals. The Hamilton Bank remains closed. as do the United States Exchange Bank and the Twelfth Ward Bank, all in 125th street. There was a small run on the Bank for Savings, at Fourth avenue and 22d street, but it was not as heavy as on the two previous days. The bank has demanded sixty days' notice of withdrawal for large accounts. At 1 o'clock this morning there were forty-five persons waiting outside the Lincoln Trust Company, in Fifth avenue. They had numbers to show their places in line, and for the most part walked to and fro to keep warm, for the night was cold and raw. Some of them said they had received promises of $20 apiece to wait for the opening of the trust company. Outside the Trust Company of America, in Wall street, were twelve men, with numbers in their hats, waiting for the opening of banking hours tomorrow. Some had blankets to keep out the cold. The Colonial branch of the Trust Company of America was deserted


Article from New-York Tribune, October 30, 1907

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HARLEM BANKS MAY SOON REOPEN. The announcement was made yesterday that the Harlem banks that suspended last week would open in a few days. Attorney General Jackson said that he would give them every opportunity to resume business and would take no steps against them If their condition justifled their resumption. William Montgomery, president of the Hamilton Bank, in 125th street, speaking for that institution, said that it would reopen not later than next Monday, The same was said of the Twelfth Ward Bank. The run on the Harlem Savings Bank was ended yesterday. Many patrons returned to deposit the money they drew out last week. The conditions at the Empire City Savings Bank also were normal. There was none of the unusual activity of the last few days at the Dollar Savings Bank, in The Bronx. The run on the Broadway Trust Company had also abated.


Article from The Kemper Herald, October 31, 1907

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Cortelyou Helps. Secretary Cortelyou deposits $25,000,000 in New York banks. Hamilton bank, with deposits cf $7,000,000, suspends payment, claiming solvency. Twelfth Ward bank, with deposits of $3,000,000, suspends payment. Empire City Savings bank, with deposits of $2,300,000, suspends for 30 days, under banking laws. Run continues on Tust Company of America. Run continues on Dollar Savings bank. Pittsburg receives $5,000,000 from government to aid in meeting payrolls, if necessary. Pittsburg exchange*remains closed.


Article from The Lee County Journal, November 1, 1907

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Napoleon of Finance Gets Friends Together and Quells Tempest. MILLIONS FURNISHED Mighty Stream of Coin of the Realm Poured Into Coffers of Banks Routs Impending Panic and Ruin. A New York special says: As a result of Thursday's developments in the financial world there is every indication that the crisis in the banking and trust company situation has been safely passed. The Trust Company of America all through the day's bankIng hours, paid out money to depositors as rapidly as possible and closed with all demands having been met. A very favorable feature of the situation respecting this company was that it was able to make its payments with very little assistance and another was that company received over its counters in the morning hours in ordinary deposits more than $1,000,000. Mr. Oakleigh Thorne, president of the company, said that there was abundant cash in the vaults to meet the situation and that he had no apprehensions whatever regarding the institution for the future. As the Trust Company of America had been the center of interest in the financial storm, it was accepted that the ability it had thus shown to weather the storm was clear indication that the financial sky had cleared and tha a period of fair weather was now well in sight. The day was marked by three noteworthy episodes; first, and earliest in the day came the announcement of trouble in three minor state banks in Harlem - the Hamilton Bank, the Twelfth Ward Bank and the Empire City Savings Bank. These banks transacted only a neighborhood business, and their suspension of payment was absolutely without significance as bearing on the general situation. State Bank Examiner Judson stated that all three were solvent and that their dedepositors would lose nothing. The second episode was a ran inaugurated against the Lincoln Trust company. The run against this company was steady throughout the day, but the sums withdrawn were not large. It is an up-town institution with a great шапу women depositors and carried, mainly, personal household accounts. The run, however, was without importance to the city's banking interests as a whole. At the close of the day, the company's officials annoùnced that they were fully able to meet all obligations. By far the most notable, even dramatic, episode of the day was the emptying of millions of money into the stock exchange through a pool headed by J. P. Morgan and other financiers, in order to avert a ruthless selling of stocks held by brokers. At the time that excitement was at its height the announcement was made that a pool had been formed, with J. ierpont Morgan, at its head, to come to the rescue of the brokers, for it was necessary to provide funds at once in order that they might carry the stock they were holding for their customers. The effect of the relief measure was instantaneous and the rate on call money declined from 100 per cent to 10 per cent. Stock advanced more rair idly than they declined. Seldom, if over, had the veterans of finance seen a great situation saved so quickly and SQ effectively by such a Napoleonic stroke. When the stock exchange closed, every one was getting all the money he wanted. The close was marked by a memorable scene, in which the brokers gathered around the principal trading posts and gave cheers for J. P. Morgan and the members of the pool which had saved the day. The aggregate amount of money which had been contributed in to weather the storm and restore confidence assumed truly colossal proportions. Roughly estimated $25,000,000 which Secretary Cortelyou deposited in the New York banks, $25,000,000 which the Morgan pool brought to the floor, $10,000,000 which John D. Rockefeller deposited with the Union Trust company as a means of stemming the tide of the Trust Bank of America, and finally another $50,000,000 which, it is understood, Mr. Rockefeller stood ready to advance, to meet any further stress of conditions-in all considera. bly in excess of $100,000,000.


Article from New-York Tribune, November 24, 1907

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THIRTY-DAY NOTICE UP, AND NO RUN. Few Depositors Withdraw Money from Empire City Savings Bank. When the financial scare began the Empire City Savings Bank was one of the first to inform its depositors that it would require thirty days' notice for withdrawals of deposits of large amounts or of closing of accounts. The thirty days expired yesterday, and those who expected a big run of depositors who had given notice were disappointed. There was one depositor on hand when the paying teller's window was opened, and they came in ones and twos after that. All payments were made in gold. Many of the depositors asked for paper money, but they were refused. None of the depositors seemed to be worried. The Empire, it was announced, would continue to pay small amounts, but President Hopper said the bank in the next few weeks would take advantage of the sixty-day clause.


Article from New-York Tribune, November 26, 1907

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U. S. EXCHANGE BANK REOPENS. The United States Exchange Bank, 125th street and Fifth avenue, which suspended payment on October 25, resumed yesterday morning. One of the officials said that business was going on about as it had been before the suspension of payment. The reopening of the bank was made with the approval of the State Banking Department. At the Empire City Savings Bank, in 125th street, which began paying depositors on account of thirty day notices of withdrawal last Saturday, there were few withdrawals, it was said, and many deposits.