Manhattan Company - New York, NY

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: September 20, 1873
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 53f0525f

Response Measures

Accommodated withdrawals

Description

Article (New-York Tribune 1873-09-20) describes a heavy withdrawal episode at the Manhattan Company tied to presentation of Union Trust Company checks for certification after the Trust's account was depleted. No suspension or closure of the Manhattan Company is reported; officials said they would meet demands. Cause appears linked to distress/concern about another local trust/bank (Union Trust), so classified as local_banks/correspondent-type panic.

Events (1)

1. September 20, 1873 Run

Cause: Local Banks
Cause Details: Crowd formed when Union Trust Company's account was depleted; Trust's checks were presented at Manhattan Company for certification, spreading fear that the Trust had suspended and driving withdrawals.
Measures: Called in loans on short notice to raise funds; certificaton of Trust Company's checks as deposits arrived; paying tellers certified and paid out until closing.
Newspaper Excerpt: he stated that over $1,000,000 had been paid out. ... As the Union Trust Company made clearances through the Manhattan Company ... a crowd of anxious depositors formed at the paying teller's desk, clamoring for their money.
Source: newspapers

Newspaper Articles (1)

1. September 20, 1873 New-York Tribune New York, NY

Article from New-York Tribune, September 20, 1873

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Article Text

A SMALL BLACK FRIDAY. Continued from First Page. asking, at the desk of the cashier, for a statement of the number and amount of deposits withdrawn during the day, he was referred to Vice-President Augustus Schell. Mr. Schell stated that the account was not yet made out, but that over $1,000,000 had been paid out. The run bad not been anticipated, as it had not been thought that the excitement would turn in that direction. He said they had not attempted to provide for such a contingency until late in the day, when they had called in some of their loans, most of which were paid. They had found it hard work to raise the money on so short a notice. The clerks were then busy making out the necessary notices for calling in loans to meet to-day's requirements. He expressed himself as entertaining no doubt that the Company would be able to meet all demands, but again spoke of the difficulty of obtaining money upon short notice. They could not expect to receive the money on these loans until late this afternoon, which would cause considerable delay in getting their checks certified. The officials declined to make public the number of depositors paid during the day. SCENES AT THE MANHATTAN COMPANY. As the Union Trust Company made clearances through the Manhattan Company in Wall-st., much of the excitement in the offices of the former was transferred to the premises of the latter. Those who wished to withdraw their funds from the Union Trust Company were paid in checks on the Manhattan Company. These they presented immediately at the bank named for certification or for the money. At about noon the account of the Trust Company was depleted, and soon a crowd of anxious depositors formed at the paying teller's desk, clamoring for their money. Each and all were Informed that there were "no funds" at present, but that large deposits were expected at about 2 p. m. Long lines were formed, and the depositors awaited events with impatience. At one time there were about 200 persons in the bank, representing about $1,000,000. As the number of check-bearers increased, SO did the uneasiness. and when the hour of 2 was succeeded by that of 3, fears that the Trust Company had suspended were generally expressed. This idea prevailed 80 largely that the fear spread to "the street," and was circulated with depressing effect. At m., however, the long-looked-for deposits arrived, and there was joy among the attendants. The paying teller immediately began to certify the Trust Company's checks, and did not stop until about 4:30 p. m., when the bank was closed for the day. After the close of the excitement, a TRIBUNE reporter sought Mr. Harberger, the cashier of the Manhattan Company, and applied for information concerning the relations of the Trust and Manhattan Companies. Mr. Harberger said that the Manhattan Company was a mercantile and not a broker's bank. They did not certify for any account unless the money was in the bank. When & good mercantile house that had transacted a fair and remunerative business with the Company wanted $30,000 or $40,000, on good paper they were not disposed to withhold it, as the policy of the Company was to cultivate that interest, and thus enlarge and foster the commercial prosperity of the community. But when a banking. trust, or other concern, no matter how good, desired $500,000 or $1,000,000 certification, they did not care to grant it. The Union Trust Company, however, had amply fulfilled its obligations, having paid out about $2,000,000. He had no doubt that it was fully able to withstand all pressure which could be brought upon it to-day. He characterized the operations of the street" as gambling of the worst kind, and hoped that the Government would not interfere. The country at large was never more prosperous than at present. The crops were large, business was good, and industrial matters were making healthy progress. He was therefore opposed to Governmental interference. The close of the Union Trust Company's offices at the usual hour in the afternoon did not serve to drive all the anxious depositors from the vicinity of the bank. Equally futile was the cold, dreary night. Caring little for the inclemency of the weather, a few hovered around the doors, awaiting the return of day and the reopening of the vaults, hoping thereby to be among the first to present their claims.