16102. Manhattan Bank (New York, NY)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
September 19, 1873
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
acf50e77

Response Measures

Accommodated withdrawals, Public signal of financial health

Description

Articles from Sept 19–26, 1873 describe heavy withdrawals / a run pressure on Manhattan Bank during the Wall Street panic of September 1873. The bank remained open, honored Union Trust drafts, kept doors open late to certify checks and was said to have 'laughed to scorn' the runs. No suspension, receivership, or permanent closure is mentioned. Cause attributed to the broader Wall Street panic and related failures/defalcations (macro/systemic news).

Events (1)

1. September 19, 1873 Run
Cause
Macro News
Cause Details
Run pressure driven by the Wall Street panic of September 1873 (speculative collapse, failures and defalcations such as Union Trust), not by a specific false rumor about Manhattan Bank.
Measures
Kept doors open an hour later to certify Union Trust checks; honored drafts and continued to pay as presented.
Newspaper Excerpt
The Union Trust Company kept their doors open ... The Manhattan Bank also kept open till the same hour, to certify the Union Trust Company's checks.
Source
newspapers

Newspaper Articles (3)

Article from The Portland Daily Press, September 20, 1873

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Article Text

NEW YORK. Sept. 19-Ecenina.-The grain and provision markets are all unsettled by the wallstreet panic. State and Railroad bonds and city bank shares have been practically neglected, while the dealings in Railroad stocks continued on an onormous scale this azternoon. The principal transactions have been in Pacitic Mail, Western Union and Erie. Gold opened at 112}, sold at 1123. down to 1121, up to 113, off to 111], up to 111g, and -closed at 111g @ 111 Governments dull and nothing doing. Stetling Exchange dull at 1081@1091. Money at 7 per cent. gold. bid. without transactions. State bonds dull. Stocks-The following were the fluctuations: Pacific Mail opened at 371, sold down to 361, up to 38 down to 321, up to 30, down to 334, up to 35, down to 34 cash, up to 39, down to 36), up to 38, down to 361 cash. up to 37} cash and 391, down to 381 cash, down to 351, up to 371, and closed at 374 @ 37 Western Union opene at 77, sold off to 70, np to 764, off to 69, up to 76, off to 70, up to 72, off to 69, u2 to 72, off to 63, up to 71. off to 69 cash, up to 70, off to 671 and 67 cash, up to 70, up to 721, up to 74, off to 73 cash, up to 76, up to 761, down to 741, up to 75, down to 80, down to 681 cash, up to 70, and closed at 681 @ 69: Erie opened at 53g, sold up to 54, up to 55, then 55 then 543. and closed at 54g @ 54); N Y Central opened 95, sold down to 91, up to 96, off to 91 cash, up to 94 cash, down to 911 cash, up to 93, up to 95, dowu to 911, down to 932, and closed at 93 @ 94; Union Pacific opened at 204, sol I at 21 cash, oil to 19 @ 17 cash, up to 18 @ 18 cash, up to 183, down to 18, up to 21, off to 184, up to 20. The Union Trust Company kept their doors open and continued till 4 o'clock, one hour later than the usual hour for closing. The Manhattan Bank also kept open till the same hour, to certify the Union Trust Company's checks. Richard Schell expresses confidence of the ability of the Union Trust Company to weather the st rm. The assistant secretary or the company asserts that the company can pay two dollars for every one of its indebtedidess. Prominent bank officers are of the opinion that the worst of the Hash is over. Money all day was very unsettled, and early in the ay it was impossible to borrow in consequence of the prevailing excitement. Stocks were turned at a difference of from 1 to 5 per cent., and the late dealings in Money on the street were at 1 @ 1) per cent. per diem. Foreign Exchange was demoralized by the tight Money market and the prevailing excitement. Business in nearly all branches of produce is at a stand still, and in fact almost bordering on demoralization. Everybody is looking out for their Money, and holders of goods are not disposed to realize. A feverish feeling prevails and many merchants fear a greater depression unless the Government comes to the rescue. The rates paid for carrying Gold to-day were 1-32, 7, 6, 5 @ 7 per cent. Gola and 12 per cent. and flat for borrowing. The day's business at the Gold Exchange Bank was as follows:gold balances $1,546,710; currency balances $1,856,717; gro-s clearances $122,794,000. The Asst. Treasurer to-day paid out $54,000 for the redemption of 5-20 bonds The railway and miscellaneous speculation was active and excited from the opening of the Exchange till the very close. The volume of business exceeded the immense transactions of yesterday, while the fluctuations were of greater breath and much more eratic. It would be useless to attempt to describe the discourse of prices as usually given in this column, and only the chief points of interest can be enumerated. As failure followed failure in quick successión, wild scenes were enacted in the Exchange where every time a surging crowd would throw overboard immense blocks of stock almost regsrdless of the prices they brought.


Article from The Rock Island Daily Argus, September 22, 1873

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Article Text

Wadsworth, Brown & Co. have failed. The latest suspensions are the National Bank of the Commonwealth, Saxe and Rogers, Ketchum & Belknap, and E.C. Broadhead. The defalcation in the Union Trust Company is said to be $500,000, and the Secretary, Charles Carleton, is the reported defaulter. The Manhattan Bank honors the Union Trust Company's drafts as fast as presented. Laussig, Gemp & Co., of this city, closed doors this afternoon after the announce ment of the failure of their New York house, Laussig, Fisher and Co. ALBANY, Sept. 20.-T. C. Squire & Co. bankers, announce their temporary suspension until further advices from New York. PHILADELPHIA, Sept. 20.-The Union Banking company did not open to-day, A placard on the door states that owing to the heavy demand, a suspension of a few days had been resolved upon. BURLINGTON, Ia., Sept. 20.-The Orchard City Savings Bank suspended at 12:20 p. m. BURLINGTON, Ia., Sept. 20.-At one A. M. a fire was discovered in the cellar of a Swede named Solomon, on Jefferson street, between Sixth and Seventh, and spread with great rapidity. One of the largest lumber yards of Gilbert, Hedge & Co., containing six million feet and worth $120,000, was completely destroyed: Twentyfour buildings, mostly wooden structures. and situated between Fifth and Eighth streets, were burned. The total loss will reach $200,000. Telegrams to our sister cities were dispatched for their fire depart ments and Monmouth, Galesburg, Quincy and Ottumwa responded promptly. The fire was got under control at five A. M., after devouring two and a quarter blocks. SAN FRANCISCO, Sept. 20.-A fire broke of out in the Yellow Jacket Mine. in Nevada of in the 1,300 foot level, and six lives were to lost. The fire is under control. Particu18lars will be sent soon. uted DES MOIMES, Ia., Sept. 20. - -Last April of William Riley and Ursula Spangler were diarrested on a charge of murdering their its irted into the ing bastard it babe, breaking Cedar river neck from and the throw rail ty, road bridge at Cedar Falls. Riley ha been held for the murder, and found guilty of murder in the first degree, which, under ew the new code, means imprisonment for life et, with no pardon by the Governor. ion for SPRINGFIELD, Ill., Sept. 19.-W. U The Parsons, of Tazewell county, late Unite atStates Deputy Collector, is reported a de few faulter to the amount of $4,000, and cuwarrant was issued for his arrest an cial placed in the hands of Deputy Marsha on Prettyman, who left to-day to execute it


Article from Burlington Weekly Free Press, September 26, 1873

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Article Text

The N. Y. Herald thus sums up the financial situation in New York City : So far the banks are not affected, except one or two, which were closely connected with the operations of the speculative brokers. The trust companies which have failed owe their downfall to similar causes, and in one case, partially at least, to defalcation. Outside of these there have been no failures. The mercantile interest is as safe as in the best of times. The railroads, except the wild-cat affairs which were made the basis of reckless speculation. are uninjured. Credit generally is unimpaired. Nothing more serious has happened than the overthrow of a few houses which were doing a notoriously unsafe business. It was a mere financial thunderstorm, passing through Wall street and toppling over some unsafe buildings, but leaving the substantial houses in as good condition as before. Already the storm is almost past, and the sky will soon be serene and fair and the atmosphere purer and better, if wise counsels prevail. There is no occasion whatever for a general panic. The real business interests of the country cannot suffer while the embarrassment is confined to the speculators in worthless railroad bonds and the gamblers in valueless stocks. It will be a wholesome lesson to all classes of business men if the storm is confined to those who courted it, and when it is over no one will regret that they who sowed the wind were compelled to reap the whirlwind. Few of the New York brokers know where they stand. On Saturday the best securities went begging at the lowest rates. There was no fixing values on any stocks, and the stock exchange was wisely closed to give men time to recover from their distrust and gather their scattered senses. A. few more of the weakest houses will go down when settlements are made. Some of these whose failures have been announced from the board will recover and go on. Not a single mercantile house, savings bank or other institution doing legitimate trade, has fallen. Excitement and distrust, caused by wild speculators, extended the panic beyond the stock exchange and three banks suffered from severe runs upon them. The Union Trust Company was weakened by the discovery of a large defalcation aggregating $800,000 and the impossibility of realizing on heavy call loans to the Lake Shore Railroad Company, and it suspended. The Bank of the Commonwealth was weakened by the payment of an overdraft of $220,000 of a house which has suspendad. The National Trust Company, with $800,000 in governments on hand, could not realize a dollar on them, and wisely closed its doors until it could dispose of them. Runs on the Fourth National and Manhattan banks laughed to scorn by those institutions. the the went on During were morning banks the principle of Fisk "Each man to drag out his own corpse. and refused each other's checks, but later a meeting was held, and concerted action agreed on. and subsequentt ly there was no further trouble. The purchase of bonds by the government also aided to break the force of the storm.-N. Y. Special.