16163. Mechanics & Traders Bank (New York, NY)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
October 21, 1898
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
5b7f83d0

Response Measures

Accommodated withdrawals, Public signal of financial health, Books examined

Other: Directors replaced president; Clearing House provided cash ($100,000–$500,000) to meet withdrawals.

Description

Multiple contemporaneous articles (Oct 21–24, 1898) report a run caused by adverse published reports/rumors about President Fernando Baltes and his dealings. The bank met all demands, received clearing-house/other support, directors changed management, and the run ended; there was no suspension or closure reported.

Events (1)
1. October 21, 1898 Run
Cause
Rumor Or Misinformation
Cause Details
Published reports and rumors that President Fernando Baltes would be deposed and stories that he was offering his notes on the street; reports of an examination suggested by clearing house committee.
Measures
Clearing House guaranteed funds and sent cash (reports of $100,000–$500,000); directors met, deposed President Baltes and elected Leo (Lee) Schlesinger; bank met all withdrawal demands.
Newspaper Excerpt
A run was made on the Mechanics and Traders' Bank to day. ... The run was started by the published reports that Fernando Baltes, the president of the bank, had been or would be asked to resign ...
Source
newspapers

Newspaper Articles (10)
1. October 21, 1898 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, October 21, 1898

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Run on a Bank. NEW YORK, Oct. 21.-A run was made on the Mechanics and Traders' Bank to day. It began at an early hour this morning and continued steadily through the morning hours. The directors said it amounted to nothing, that no large depositor had touched his account. The run was started by the published reports that Fernando Baltes, the president of the bank, had been or would be asked to resign by the directors and that an examination of the bank by State Superintendent Kil. burn had been made recently at the suggestion of the clearing house committee, because of rumors current upon Wall street. Charles Strauss, counsel and director of the bank, said to-day that a change would probably be made in the management of the bank. He said the idea that the bank was not solvent was absurd. President Schlesinger said to-day the bank was all right. The Clearing House had guar. anteed all the money needed for the run, and $500,000 was already on hard to meet it. I he bank's resources are nearly $3,000,000. Depositors are still withdrawing their money

2. October 22, 1898 New-York Tribune New York, NY
Article from New-York Tribune, October 22, 1898

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LEO SCHLESINGER NEW OF THE MECHANICS AND TRADERS'. SOME DEPOSITORS WITHDRAW THEIR MONEY. THE BUT ARE REASSURED BY PROOF OF COMPLETE SOLVENCY OF THE BANK Vice-President Leo Schlesinger was elected of the to succeed Fernando Baltes as president Mechanics and Traders' Bank. at Broadway held and Broome-st. at a meeting of the directors one of afternoon. and Isaac Stiebel, Prestyesterday directors. was elected vice-president. meeting that the Schlesinger said after the prestdent Baltes had been deposed from and the unable dency Mr. because he was incapacitated take care of the bank to was a run of fair-sized proportions the pub- on There bank yesterday. which was due Baltes's to notes the regarding President lished and the reports probability that he would assurances be deposed of the by The printed declaraabsolute solvency. reinforced the same effect by officials tions bank's the directors. to the of by depositors. bank. weight with some of the uneasy deposits: had concluded not to withdraw their nothing but who others would be satisfied with promptly but their money. and they received it as them. as the paying teller could attend to WAITING FOR THEIR MONEY 11 o'clock there were about four hundred from At line waiting to withdraw money was in men in Vice-President Schlesinger there. but President Baltes was Schlesinger said he supposed Mr. "face the music." He the the bank. bank. not wish to discovered the not president that added a did when the Clearing House had that of the president's indorsements surprisnumber found in Wall Street gelling at a it been discount. and investigated the matter. The ing found the bank perfectly solvent. the Clearing had House. he said. had guaranteed $100,000 had sent to the bank for bank been all the money it wanted. depositors vice-president. and "was "Mr. Baltes," added the easygoing." too the usual time for the closing of the of bank. the At there were still within the doors The 8 institution o'clock. about two hundred depositors. was iron door at the Broadway entrance Broome-st. big while the door leading into those of closed. kept open for the convenience of the bank was unpaid depositors who had been in estimatthe time for closing It was roughly durat the that fully $250,000 had been withdrawn supplies of ed the run on the bank. Large bank ing came in by messenger to number the of money the afternoon. and a large the day. through those who, in the excitement earlier in to the withdrawn their deposits returned over to bank, had where they handed their money the receiving teller. the newly After the meeting of the directors said that the Mr. Schlesinger. $174. had been found to have a slightly elected bank president, surplus only of and that this surplus had been had not 000. impaired. The bank was sound and and would injured in the slightest way. the day. been not be injured by the withdrawals of Leventritt Late in the afternoon George in the for x-President Baltes. appeared presented counsel building and reported having which he resignation of his client. was been accepted. This said bank the said written had Stiebel, statement who by Vice-President action the directors had who anby President Schlesinger, it referred that confirmed after to taken predeceasor. the the deposition of his to was nounced deemed best, as a matter of propriety. accept Leventritt, the resignation. in his explanation of foolish the situ- in Mr. said that Mr. Baltes had been Street, in stion. the matter of floating bonds in Wall would expectation that the transaction of $500,000 result the in securing to the bank a deposit name. source which he refused to head from a president. Leo Schlesinger. is firm of Leo Schlesinger & been of at No. 129 Crosby-st., and in The toys, the new Co., has dealers Isaac is a director in the bank for several vice-president, years. Stiebel, the newly elected Company, of the Japanese Fan from at president There is no allegation source affecting the any the only reason for dent having been that the No. 519 Baltes, said. Broadway. integrity his directors of the retirement, ex-Presi- Tacoma felt it is his reported connection with promote the that enterprise was not likely to he was railroad best interests of the institution of which the head. TACOMA AND COLUMBIA RIVER of CO the THE M. Morton, vice-president George and Columbia River Railway Company, Eastern Tacoma yesterday afternoon at Wall-st. the and was seen of the corporation, at No. 40 follows reoffices made a statement in substance as the road: garding Tacoma Railroad became the property Tacoma, of "The Washington National Bank, of Currency the failed. The Controller of the the road which charge. put in a receiver and had and took A friend and myself put up reorganized. the money and sold. the property. It was of the road bought bonds were issued upon the Important part terminals which secured, was in and operation according the $250,000 terms of were the were bonds to the amount of Contracts were upon these of the bonds, but came on Mr. mortgage Issued made for and disposing the contracts terminals. were Baltes not assisted fulfilled. the war to a small extent in one by all who have ex an Mr. Rumrill, some been of offered considered Money had it. to be excellent raised this work. This whose enterprise notes. is amined Mr. Baltes, have office. Wall Street, is a road, continued voting "The stock been placed in the hands trustee Indorsed by of the bookkeeper this of Mr. Mor- was re- in ton, "had and the sole just William Bailey, the West that the officers been trust for word five from years. the president have new road has celved by the election of means all Western men, effected a reorganization Mr. Bailey reorganized has and that probably of the to road, that suit himself. Garman, formerly treasurer put $19,000 into the enterprise and that Mr. the railroad's mortgage is F.H. quoted as saying The trustee that of he Company. Morton had had of this invested city $100,000. the Continental Trust of that company is Bannard. president was an unOtto vesterday T. that the mortgage bond itself said the line being allowed to route and limited one, on each mile of the present to the amount for $20,000 future extensions Bonds $250,000 on the ossible had been issued terminals of $500,000 $250,000 on the deep -water reported reroad and knew nothing of the in organization of affect the mortgage. The but case Mr. it Bannard would not the line, its September and said coupons, that road any had defaulted upon the mortgage no foreclosure six of within the date of the proceedings under months from the terms could be instituted default. ders' Bank gave The Board of Directors out of the the following Mechanics state- and

3. October 22, 1898 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, October 22, 1898

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TELEGRAPHIC BREVITIES. Notice of the voluntary assignment of the Pittsburg Ornamental Wire Company was filled o.day. Mr. Richard Croker and ex-Senator David B. Hill had a friendly meeting in New York last night and made plans for the campaigning up the State. Mrs. Nellie Maillard, a wealthy widow, who lives alone with her maid in an apartment house on west 65th street, New York, was robbed of $9.000 worth of jewelry this morning at the point of 8 revolver by a burglar who escaped. Several cases of rare coins in the parlor had been rifled and small objects of art on the walls taken. In all her loss amounts to $12,000. The closing of the First National Bank of Lisbon, o, has caused great excitement and there is a feverish unrest in business circles. The shortage of Cashier Childs has not yet been determined, but it is claimed that it is large. Childs was city and township treasurer and handled the funds of the United Presbyterian Church, of which he was a leading member. The public and church funds were deposited in the bank. Childs is supposed to have gone east. George Vetter, 23 years old. and Louis Lavigne, 16 years old, narrowly escaped being burned to death this morning in the basement of a Ninth avenue, New York, tin shop. They were engaged in melting solder in the cellar when it exploded. Vetter was knock down, and fire was started. Lavigne ran to bis companion's assistance and pulled him away from the flames. Both then attempted to get out of the cellar, by the basement stairs, but the flames had spread and their escape was cut off in that direction. They were almost overcome by smoke when rescued. The run on the Mechanics and Traders' Bank in New York continued this morning but it was partly offset by a line of depositors. some of whom had withdrawn their accounts only the day before. The bank will experience no trouble. It has been found that the bank had a debit balance of $201,000. It was satisfactorily shown that the bank was able to meet this and the clearings of all the banks were then completed without further incident. Because she refused to marry the man whom her guardian desired to wed, Lizzie Johnson, aged 18, an orphan, residing near Cottondale Ala., ran away from home yesterday Last night her body WAS found beside the railroad track with a bullet woond in the head. The girl was seen walking down the railroad track in company with her rejected lover, William Jackson. A sheriff's posse is in pursuit of Jackson, who is suspected of the crime. Mr. Lilburn T. Myers, chief of the inspec. tion division of the Postoffice Department, has tendered his resignation. Acting Postmaster General Heath has been asked to appoint Mr. James C. Cook, superindentent of the Railway Mail Service at Baltimore, to the vacancy which will be made by the retire. ment of Mr. Myers. One man was killed and eight injured by an explosion of boilers on the towboat Res. cue two miles above Elizabeth. Pa., on the Monongahels river late last night. The boat was completely wrecked and what remained of it sunk before rescuing parties from other boats resched the scene. President McKinley and party passed through Harrisburg, Pa, at 10:30 o'clock this morning on their way to Washington. There was no speechmaking there or at any other point along the route to-day. Judge Van Wyck. democratic candidate for Governor of New York, arrived at Buffalo today. He said: "All through the State the indications are strongly democratic."

4. October 22, 1898 El Paso Daily Herald El Paso, TX
Article from El Paso Daily Herald, October 22, 1898

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Run On New York Bank. NEW YORK, Oct. 22.-The run on the Mechanics' and Traders' bank continued this morning but was not severe. Several banks offered to help the Mechanics' but officials say they can weather the blow alone.

5. October 22, 1898 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, October 22, 1898

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RUN ON A BANK. The Mechanics' and Traders' of New York Kept Busy Paying Out Money. NEW YORK, Oct. 1.-The Mechanics' and Traders' Bank, concerning which there developed some adverse rumors over night, made its exchanges as usual at the clearing house to-day. Among the bank presidents down town the belief prevailed that the bank is perfectly solvent and that it will go right on, although there might be some change in the management. At a directors' meeting later in the day President Baltes was deposed and Vice President Lee Schlesinger made president. The publication of the story that President Baltes had been offering his notes on the street caused a crowd to collect in front of the bank before the doors were opened to-day, and when business began the depositors lined up to the paying teller's window. All demands were promptly met. Offcials of the bank assured the waiting depositors that the bank was perfectly solvent and that $100,000 cash had been received at the bank for those who wished to withdraw. Nobody, however, seemed to care to withdraw from the bank. One man withdrew $8,000 and others took out sums running down to $100. Information as to the amount paid out this morning was refused. At 11 o'clock there were about 400 men in line waiting to withdraw money from the bank.

6. October 22, 1898 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, October 22, 1898

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BANK RUN AT NEW YORK. Mechanics & Traders Bank Depositors Wanted Their Cash. New York, Oct. 21. - The Mechanics & Traders bank, concerning which there has developed some adverse rumors over night, made its exchanges as usual at the clearing house today. Among the bank presidents down town the belief prevailed that the bank is perfectly solvent, and that it will go right on, although there might be some change in the management. At a directors' meeting late in the day, President Baltes was deposed and Vice President Lee Schlinger made president. The publication of the story that President Baltes had been offering his notes on the street caused a crowd to collect in front of the bank before the doors were opened today, and when business began, depositors lined up to the paying teller's window. All demands were promptly met. Officials of the bank assured the waiting depositors that the bank was perfectly solvent and that $100,000 in cash had been received at the bank for those who wished to withdraw. Nobody, however, seemed to care to withdraw from the line.

7. October 23, 1898 New-York Tribune New York, NY
Article from New-York Tribune, October 23, 1898

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BANK ABSOLUTELY SOLVENT. AFFAIRS OF THE MECHANICS AND TRADERS IN GOOD CONDITION The line of customers at the paying-teller's window of the Mechanics and Traders' Bank yesterday morning was a rather long one, but It contained comparatively few persons who were anxlous to withdraw their deposits through apprehension as to the stability of the institution All of this class were small depositors. whose accounts ranged from $400 downward. and they all got their money without delay. Several banks in this city, among them the Mercantile National, have offered loans to the Mechanics and Traders' Bank, but It has replied to them all that it is not in need of assistance. The bank did not close for the day until 1 o'clock, at which time few persons were on the line. F. D. Kilburn, State Superintendent of Banking. who was at the bank yesterday morning said: "This is the most senseless run I ever heard of." Regarding ex-President Baltes's relations with the bank, Mr. Kilburn said: "Mr. Baltes owes the bank $14,300. of which $4,800 is secured by the personal indorsement of one of the most substantial business men of this city. There is one loan of between $4,000 and $5,000, which is secured by bonds of the Tacoma and Columbia River Railway Company. The rest of the $14,300 is all well secured. So probably only about $4,000 is questionable, but even if the bank should be compelled to lose the whole amount its stability would not be affected in the least.' Bank Examiner Judson said: "I stand by my first report. The bank is absoluteiy solvent, and nobody has anything to fear." There was a short delay yesterday morning in the exchanges of the banks at the Clearing House. After the clerks of the other banks had made their exchanges the balance of the Mechanics and Traders' Bank was figured out, and it was found that the bank was debtor in about $201,000. It being ascertaine that the bank was prepared to meet the debit balance, the clearings of all the banks were then completed. At a meeting yesterday morning of the Board of Directors of the Mechanics and Traders' Bank the resignation of ex-President Baltes as a director was accepted This action terminates his connection with the institution. The directors also authorized the Executive Committee to raise money, if it should be necessary. to meet any emergency, President Schlesinger said after the meeting. but he added that there was plenty of cash in the bank's vaults to meet all demands which might be made upon the institution.

8. October 24, 1898 The Evening Times Washington, DC
Article from The Evening Times, October 24, 1898

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DEPOSITORS FEEL EASY. Run on the Mechanics and Traders' Bank Ended. New York, Oct. 24.-Officers of the Mechanics and Traders' Bank today said that they felt certain that their depositors had been fully reassured, and that there would be no more heavy withdrawals of money. There were a good many customers in the bank this morning, but most of them were depositing money, and there were few visits made to the paying teller's window. The run was apparently at an end.

9. October 24, 1898 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, October 24, 1898

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TELEGRAPHIC BREVITIES The run on the Mechanics and Traders' Bank in New York is now at an end, and business at the bank is progressing as usual. John C. Munsinger, of New York, who was responsible for the famous Lexow investigation, died on the 15th instant in New Orleans, where be fled from New York. The trial of Cap Hatfield Was begun at Logan, W. Va., Saturday. Several witnesses have been examined. So far all has passed off quietly, but nearly all of Hatfield's relatives are in and about Logan. Charles Brassler, a linguist and writer of considerable note commitre suicide at his home, in Plainfield, y J., last night, by cutting his throat with a butcher knife. The fact toat was slowly losing his sight prompted the deed. Wm. Combs blew off 'Wild Bill Turner's head with a shot gun at the ter's saloon near Mingo Mines, Ky.,last night and escaped. Turner WHS prominent leader of the Turner faction of Turner-Howard fame. He had killed several men. Hon. Wm. Jennings Bryan, com manding the 3rd Nebraska Vo unter is at the DeSota Hotel. Savannah, Ga He is not very sick and has Simply's word to those who have called on him that he is indisposed. He will one. He has wired to his wife, who in Nebraska, to come to him andshe will probably arrive during the week. His regiment reached Sayannah this morning. The steamer Beverly, with Lient on board, arrived at Boston this said he came to consult with the certetary the the Navy regarding the raising tobal Colon and the Reina Mercede obtain more men and materials The Maria Teresa was in good shape clared, and had probably started day The work on the Colon was well and he had strong hopes of The Vizcaya was a wreck and it great deal to raise her. It is reported that in order to tion and hasten & readjustment of an effort will be made by the mittee of the Cape Fear and Yadkin bonds Bailroad to purchase the the New York committee. M. Parriera. a salesman for A. Mendelsobn & Son, of New York, where he and three children, was shot dead ton. Tex. by George De Moss yesterday is alleged that Parriera insulted Mrs. De Moss on the street. O. Mrs. To-morrow at West Lebanon Elizabeth Buckwalter and Daniel Beals marry. Forty-nine years ago Mrs. Bues walter sued Beals for breach of promes was paid $750 on the judgment. She rich. Philip Cocke. a letter carrier was stabbed to death at Louisville, Ky., last evening his brother in-law, A C. Robbins Bothi was drunk and Cocke was defending Mr. Robbins from her husbard's abuse. Wheat went up in New York again to because of the war scare abroad ment was intense while December whest at 7714 cents. The Chicago wheat was excited and higher. The body of Mrs. Charles Newcombe Swampscott, Mass. was found Washe! thought is It on Whales Beach yesterday. she commi ted suicide by jumping into the sea. It has been learned at Walker Minnitist fifteen Indians, armed with carrying handcuffs have gone after Buy Ma-Ge-Shig and his SGI. The President has approved the tial sentence dismissing Chaplair Joseub navalsu the McIntyre, of the Oregon from vice

10. October 28, 1898 Marshall County Independent Plymouth, IN
Article from Marshall County Independent, October 28, 1898

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MISCELLANEOUS. Cincinnati, Ohio-The Master Horseshoers' International Protective Association adjourned, to meet in Pittsburg the second Monday in October, 1899. New York.--The directors of the Mechanics and Traders' bank deposed President Fernando Baltes and elected Vice President Schlesinger to succeed him. There was a slight run on the bank, but all demands were met. Nassau, N. P.-The United States cruiser Montgomery, Commander Converse, has arrived from Hampton Roads on special business. She will remain there for a few days. St. Louis.-The druggists concluded their sessions with a banquet. Des Moines, Iowa.-At a camp fire Congressman Hull declared in favor of keeping the Philippines. New York.-Rev. Charles Heath, a colored preacher is dead. He was 101 years of age, and a veteran of the civil war. Belvidere, III.-Commodore E. E. Potter, retired from the navy, who was stricken with paralysis at his home a few days ago, is now in a critical condition. Seattle, Wash.-Adrian Tappney of New York, who arrived from St. Michael's on the last trip of the steamer Roanoke, reports the probable loss of the schooner Annie Rowe in the north sound and the drowning of eleven passengers. Milwaukee, Wis.-Col. John J. Upham, retired, of the Eighth cavalry, U.S.A., died of Bright's disease of the kidneys, aged 61 years. Col. Upham was one of the best known military men of Wisconsin Springfield, O.-D. L. Snyder, the aged millionaire and philanthropist, is dead. New York-James A. Pollock, better known on the stage as James W. Forrest, died in a police station of apoplexy. Washington-The Knights of Malta finished their business and adjourned. Authority was granted the Wisconsin grand commandery to solicit subscriptions throughout the United States for a fund to erect a hospital at West Superior for indigent members of the order. Philadelphia - Brig.-Gen. Joseph Roberts, a veteran of the civil war, is dead at his home in this city, aged 84 years. Seattle, Wash.--Frederick Furth, secretary of the Vulcan works, dropped dead in the street from heart disease, aged 60. He was a brother of Leopold and Solomon Furth of Richardson, Ill. Washington-Germany is about to have an apple crop smaller in quantity and poorer in quality than has been gathered in recent years, according to United States Consul General Frank Mason at Frankfort. Lexington, Ky.-Gen. James H. Wilson has assumed command of the First army corps, General Breckinridge turning it over to him after a review of all troops. Louisville, Ky.-Charles G. Henning. individual bookkeeper at the Bank of Louisville, is a defaulter in a sum ranging between $8,000 and $10,000, and the has fled from the city. Detroit, Mich.-The Society of Western Artists elected the following officers: T. C. Steele, Indianapolis, president; Lorado Taft, Chicago, vicepresident, and Holmes Smith, St. Louis, secretary and treasurer. Lexington, Ky. -Private John Phelps of the First Missouri was dishonorably discharged from the volunteer army for a repetition of insubordination. He is a son of ex-Governor J. S. Phelps of Springfield, Mo.