Mechanics & Traders Savings Institution

Bank Information

Episode Type: Run Only
Bank Type: savings bank
Start Date: January 23, 1872
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: db7c4fea

Response Measures

None

Other: This response classifies the episode as 'other' because the article reports only rumors of runs on several savings banks (including the Mechanics' and Traders' Savings Bank) but states that only ordinary business was observed; there was no actual run or suspension described.

Description

Article (New-York Tribune, 1872-01-24) reports rumors of runs on several savings banks including the Mechanics' and Traders' Savings Bank; however it states only ordinary business occurred. No suspension, closing, or reopening is described. Bank name given as Mechanics & Traders Savings Institution (article calls it Mechanics' and Traders' Savings Bank).

Events (1)

1. January 23, 1872 Run

Cause: Rumor Or Misinformation
Cause Details: Rumors and general distrust after recent failures and semi-annual interest payments led to reports of runs, though the article says only ordinary business was conducted.
Newspaper Excerpt: the presence of depositors in unusual numbers, coupled with the feeling of distrust caused by the recent failures, has given rise to rumors that there were runs on the Manhattan Savings Bank, the Mechanics' and Traders' Savings Bank, and the Bleecker-st. Savings Bank.
Source: newspapers

Newspaper Articles (1)

1. January 24, 1872 New-York Tribune New York, NY

Article from New-York Tribune, January 24, 1872

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Article Text

THE SAVINGS BANK. INCREASE OF BUSINESS IN THE LARGER BANKSMEASURES FOR THE ARREST OF THE DEFAULTER CONKLIN. At most of the larger savings institutions in this city there has been a great increase of business since Jan. 15, owing to the semi-annual payments of interest on deposite, and a large number of depositors imagine that the interest must be immediately credited upon their books. The presence of depositors in unusual numbers, coupled with the feeling of distrust caused by the recent failures, has given rise to rumors that there were "runs" on the Manhattan Savings Bank, the Mechanics' and Traders' Savings Bank, and the Bleecker-st. Savings Bank. At these institutions yesterday only ordinary business transactions were noticed, and the repetition of the rumors alluded to only ocaasioned smiles. A large crowd assembled at the Bleecker-st. Bank, but no doubts were expressed concerning the solvency of the bank. Sarah E. Mackey, who has $1,500 on deposit in the Market Savings Bank, filed a petition in the United States District Court, yesterday, to have the Bank put into bankruptcy. Judge Blatchford issued an order, returnable Feb. 3, requiring the Bank to show cause why the petition should not be granted. The officers of the bank were reticent, yesterday, but it is alleged that measures will be taken to secure the arrest of Conklin, the cashier, who has fled from the city, and that the property at Milton, N.Y., now held in his wife's name, would be attached. Receiver Dennis has issued the following circular: MARKET SAVINGS BANK. No. 82 NASSAU-ST. } NEW-YORK, Jan. 23, 1872. To the Depositors of the Market Savings Bank: It is frankly admitted that the affairs of this bank are not in as satisfactory a condition 88 could be desired, but the depositors can be assured that every dollar that can be saved will be devoted to their benefit, and not wasted in needless proceedings or tedions delays of any kind. A great deal has had to be done, and every effort is being diligently made to get the affairs in such a shape as will enable me to make a definite statement to the publie at the earliest possible moment. I confidently trust that the result will show that the condition of things is not so bad as the public has appreReceiver. JAMES DENNIS, hended. The Third Avenue Savings Bank was crowded with depositors, yesterday; but as few large deposits are now applied for, the payments did not exceed $50,000. It is reported that one of the largest life Insurance companies 111 the city has pledged itself to take $1,500,000 of the bank's bonds and mortgages. In regard to a statement that the report of the bank for 1871 does not include among the liabilities the interest due depositors, the officers deny that any deficiency ever existed, and affirm that the securities were placed at only their par value, and that the premiums gave a considerable surplus over all obligations. BOWLING GREEN SAVINGS BANK. A large number of the depositors of the Bowling Green Savings Bank assembled at No. 72 Greenwich-st., last evening, for the purpose of hearing the report of the Committee appointed to investigate the condition of the bank. Judge Edward Hogan presided, and stated that the Committee had delegated to Augustus Phillips and himself the duty of investigating the bank's affairs, and that the report would have been ready some time ago if the bank officers had not caused delay by absenting themselves, so that information could not be obtained. The following is an abstract of the report: Amount due to depositors. $445,000; claims against the bank. $5,000; securities (Louds and mortgages) $174,379 50: call loans, $249,306 69, for which the bank holds the paper of borrowers, of which the Committee believe $137,700 to be worthless, and $111,606 69a8 good: over drafts, $3,000. of which $3.000 is worthless; city stock. $2,000. although the bank records show that there should be $27 000. The Secretary of the bank. Reeves E. Selmes, has given to the Receiver a deed of property which was purchased for $169,000. and upon which there are mortgages of $103,000, leaving about $65,000 to be applied to the bank assets, and showing a deficit of $92,013 81. Among the loans appears the sum of $48.000 charged against the Avenue C Railroad Company, for which the bank holds the paper of the Company The claim is dispated. The Guardian Savings Bank also claines $58,000, with interest, being the amount drawn by the Secretary, Reeves E. Selmes, on bis checks. If the Avenue C Railroad Company should not make payment, and if the claim of the Guardians Savings Bank should he allowed, the deficit will amount to $193,013 01. Among the call loans appear the names of persons, credited with large amounts, whom neither the Receiver nor the Committee has been able to find. The Committee believes that these loans are fraudulent, and that the names are fictitions. Judge Hogan reflected severely upon the course of Vice-President Walter Roche and Secretary Reeves E. Selmes, the former of whom had stated, upon the suspension of the Bank, that the depositors would lose nothing through him, but who now manitests DO disposition to keep his word. depositor suggested that a committee should be appointed to investigate the matter of the fletitious loans, and, upon verifying the frauds, to lay the facts before the Grand Jury, who would compel the guilty persons to show where the money had gone. Considerable desultory discussion followed, in which the officers of the bank were denounced. Depositors urged that steps should be taken to send them to State Prison. Judge Hogan said that he had learned during the day that Reeves E. Selmes had carried off the bank vouchers which showed upon whose order the money had been drawn. Another depositor stated that Philo T. Ruggles had been appointed referee by the Supreme Court on the application of counsel. It was finally decided that a petition should be signed by the depositors for presentation to Judge Blatchford, opposing the petition of a depositor who estred to throw the institution into bankruptcy. The Investigating Committee was discharged, and a Committee, consisting of Messrs. Sullivan. Canton, Ho gan, and Fox, was appointed to take action in behalf of the depositors.