16242. Metropolitan Savings Bank (New York, NY)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
savings bank
Start Date
September 23, 1873
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
5c2e3a3c

Response Measures

Accommodated withdrawals, Partial suspension

Description

During the Panic of 1873 the Metropolitan Savings Bank experienced heavy withdrawals and invoked the customary notice rule (30 days) rather than immediate full payment. The article a week later (1873-10-02) reports strength returning and partial withdrawal of the notice rule, consistent with a temporary/partial suspension followed by resumption of ordinary payments.

Events (3)

1. September 23, 1873 Run
Cause
Macro News
Cause Details
Part of the broader panic of September 1873 causing widespread depositor withdrawals across New York savings banks.
Measures
Bank and other savings banks adopted the requirement of notice (30 days) for withdrawals; officers used discretion in paying out funds.
Newspaper Excerpt
At the Metropolitan... Similar statements were met at the Security. Metropolitan, Central Park, and Dry Docks Savings Banks. There had been no unusual variation in the regular business. A notice of requirement of 30 days was posted up in the Central Park Bank.
Source
newspapers
2. September 23, 1873 Suspension
Cause
Macro News
Cause Details
Invocation of the 30-day notice rule by savings banks in response to runs triggered by the 1873 financial panic and loss of depositor confidence.
Newspaper Excerpt
A notice of requirement of 30 days was posted up... The Metropolitan, Oriental, Central Park... reported adopting the rule requiring notice.
Source
newspapers
3. October 2, 1873 Reopening
Newspaper Excerpt
THE SAVINGS BANKS STRENGTHENED. MONEY FLOWING BACK-THE DEPOSITORS REGRET THEIR FORMER FOLLY... At the Metropolitan Savings Bank the rule requiring notice of the withdrawal of deposits is still enforced to some extent... officers confident excitement is at an end (banks resuming ordinary payments).
Source
newspapers

Newspaper Articles (2)

Article from New-York Tribune, September 23, 1873

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Article Text

THE PANIC OVER. Continued from First Page. all their demands and the number was considerably diminished as the hour of closing approached. There were also a number of deposits made with this institu tion. and several new accounts were opened. Mr. Alvord, the Secretary, informed a TRIBUNE reporter that they did not see any reason why they should avail themselves of the legal time allowed, as they had been prepared thus far to meet all payments without the slightest embarrassment. GERMANIA RAVINGS BANK. The Germania Savings Bank was paying out more than It was receiving, but there was no indication of a run. The cashier said that they had vet no reason to take the legal time, and probably would not. NEW-YORK SAVINGS BANK. At the New York Savings Bank at Fourteenth-st and Eighth-ave. there was in the morning little demand for cash. The bank paid sums not exceeding $500. A8 the day advanced, somewhat of a run began, and increased to such an extent that the President, seeing that he could not pay every depositor in full, decided to give each one something, the amount depending upon the number that presented themseves. There was, how ever, stay in the panic toward the latter part of the afternoon, and many of those who had drawn out their money returned and redeposited it. TRADES' SAVINGS BANK. At the Trades' Savings Bank, at No. 275/Twenty-thirdst., there was no run, and C. B. Le Baron, the President, said that nothing had occurred to interrupt their ordi nary transactions He anticipated no trouble. and thought that the affairs of other similar institutions would soon become quiet again. ABINGDON SQUARE SAVINGS BANK. At the Abingdon Square Savings Bank the deposite exceeded the payments. G. N. Brown, the Secretary. said that a few depositors had called during day, but were satisfied on inquiry that there was no occasion for . drawing their money. OTHER SAVINGS INSTITUTIONS The Clinton'Savings Bank, on Eighth-ave was undia turbed, and at the Excelsior. on Sitxh-ave., there was run. The North River Savings Bank, at Thirty-fourth-et and Eighth-ave., and the Franklin, at Forty-second-st. and Eighth-ave. required thirty days for notification This was also the case with the Dime Savings Bank in Canal-st. Similar statements were met at the Security. Metropolitan, Central Park, and Dry Docks Savings Banks. There had been no unusual variation in the regular business. A notice of requirement of 30 days was posted up in the Central Park Bank. THE RULE OF REQUIRING NÓTICE INDORSED. An adjourned meeting of savings bank officials was held at the Fifth Avenue Hotel, last evening, to discuss further the situation and extend protective measures. Isaac T. Smith of the Metropolitan Savings Bank acted as Chairman, and William H. Waring of the Franklin Savinga Bank as Secretary. The following institutions were represented, numbering 23: The Metropolitan, Oriental, Central Park, Sixpenny, German Uptown, Eleventh Ward, Abingdon-square, Equitable, Teutonia, New-Amsterdam, Peoples', Mechanies' and Traders', Third Are nue, Citizens', Irving, Union Dune, Security, Emigrant, Franklin, Bowery, North River, Manhattan, and Ger man Savings Banks. It was reported that the Seamen's Savings Bank had been the first to carry out the rule adopted on Sunday evening with regard to notices from depositors. The majority of those mentioned above had also observed it. The Bowery Savings Bank had met all demands until p. in., paying out over $100,000. The German Savings Bank had been paying all day, and had disbursed about $175,000. The Manhattan, Citizens, Union Dime, and Mechanics and Traders' had also paid all demands. The banks that had required the notice had found that their depositors quickly understood the necessity of the rule, and betrayed no loss of confidence It was attended with the best of results wherever followed. A resolution was adopted as follows Whereas, It has been ascertained by the reports of the various savings banks represented here this evening that the adoption to-day by many of them of the recommendation of the meeting of last evening. that notice be required from depositors, has met with their general approval, and has had the effect of allaying all excite ment a the institutions which have adopted it; therefore Resolved, That this meeting do recommend that the provision requiring notice be generally adopted by the savings banks of this city. It was directed that copies of the resolution be sent to all banks which have not yet agreed to its observance All those present expressed themselves as contident that the excitement was about over. The meeting adjourned. subject to the call of the chairman. SERVICES OF THE POLICE. Superintendent Matsell ordered, yesterday, Detective Warlow, at present in command of the detect ive squad, to sendeight of the detectives to Wall-st. and to keep the remainder in the Police Headquarters building ready for any duty which might be required of them during the day. The detectives assigned to Wall-st. re mained there all day. and were busily employed in watching for pickpockets in the crowds which gathered around the doors of the suspended banking firms. After few hours of idleness the Police Headquarters detectives began to be called upon for the duty which the Superintendent had suspected would be necessary when he had withdrawn the men from their usual work Orders had been issued to the captains of the police precincts to telegraph at once to Police Headquarters the fact of any 'run" being begun by the de positors in a savings bank. Soon after 10 o'clock telegram was received that the Manhatian Savings Bank at Bleecker-st. and Broadway, was beginning to be unusually crowded with customers. Superintendent Matsell at once summoned a detective, and, after informing him of the situation of affairs at the bank, gave him orders to go to the bank and remain there during the day, to guard the depositors from being robbed by pickpockets, and to remove from the bank any suspicious person whom they might see. Information in regard to runs upon other eavings banks quickly followed, and, as each report was received, a detective was given similar orders, and was sent to the threatened bank. In the course of the day nearly every detective thus reserved was detailed to the duty described. The police captains had also received orders in respect to detailing men to goard bank ing-houses and savings banks whenever it might become necessary to do so. Patrolmen on duty near the savings banks received orders from their respective captains to report at the station-house f there was any indication of a run on such institu. tions. As soon as the information was received a squad of police was sent to the bank: the people at its doors were marshaled into line, and crowds were prevented from gathering on the sidewalk Capt. Clinchy of the Fourteenth Precinct personally took command at the Bowery Savings Bank, and, with the aid of several policemen, succeeded in maintaining perfect order among the multitude that sought to enter the bank doors, and also kept the sidewalk clear for pedestrians. The Sixth Precinct police, undea the command of Capt. Kennedy, maintained order in a similar manner at the Citizens Savings Bank, at the Bowery and Canal-st.; Capt. Byrnes of the Fifteenth Precinct at the Manhattan and the Bank for Savings in Bleecker-st.; and Capt. Washburne of the Ninth Pro einet at the Greenwich Savings Bank, at Waverley place and Sixth-ave THE FUGITIVE SECRETARY FRANK STATEMENT OF HIS FATHER-THE SON LAST


Article from New-York Tribune, October 2, 1873

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Article Text

THE SAVINGS BANKS STRENGTHENED. MONEY FLOWING BACK-THE DEPOSITORS REGRET THEIR FORMER FOLLY. The business of the up-town savings banks has steadily increased since the early part of last week. Their officers are considering how they may prevent a recurrence of a loss of confidence and the consequent run upon the banks. Some of them believe that a notice of one year should be required in place of thirty or sixty days. Again, this sudden demand for ready cash for deposits made might be obviated by the issue of certificates of deposit, which, once brought into use, might prove as easy of negotiation as other mercantile paper, and certainly as safe. This would free the banks from the necessity of sacrificing securities to meet demands. None of the officials anticipate any further excitement at present, but deem that, until some change is made in the banking laws, such scenos are liable to recur at any time. The custom of meeting all demands from depositors has been continued at the East River Savings Bank. During the week ending Saturday evening $53,000 was received on deposit, and considerable money was returned. Of the $150,000 paid out at the Emigrant Industrial Savings Bank on the Monday of the run, Mr. Donnelly, Assistant Controller, states that probably 60 per cent has been returned by the original depositors. He said that it was an amusing scene to see them come in and, with very sheepish looks, make excuses for having drawn out their deposits. The managers hope in the course of a week to take down the card requiring notice on the withdrawal of deposits. Confident that all excitement is at an end, the officers of the Citizens' Saving Bank have resumed the payment of all deposits, and the card requiring notice is withdrawn from sight. During the week past about $65,000 has been received in deposits-a very fair percentage of the total amount withdrawn during the first days of the excitement. At the Bowery Savings Bank the requiring of notice is also practically discontinued. Money is paid in any amount to those actually requiring it, and the rule of notice is only enforced in the case of those who still find cause for anxiety. At the Metropolitan Savings Bank the rule requiring notice of the withdrawa of deposits is still enforced to some extent, the officers using 'their discretion in the matter. T. W. Lillie, Secretary, says the stories of depositors to gain their money have proved an endless source of amusement. Notices have been received of the withdrawal of between $60,000 and $70,000. and Mr. Lillier argues that the persons should be compelled to take their money, as part return for the trouble occasioned the bank, and not permitted to withdraw the notices, as many are already doing. At the Manhattan Savings Bank business has resumed the ordinary routine. or the $240,000 withdrawn on Monday of last week, much has been returned. At the Sixpenny Savings Bank the rule requiring notice is still in force. Few demands are received, except from regular business men, and these are met. About 80 notices, representing $25,000, have been given. The German Savings Bank is meeting all demands, BIGH Dues