16413. North River 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
083aa4c0

Response Measures

Accommodated withdrawals, Partial suspension

Description

Articles (Sept 23–24, 1873) describe a run on North River Savings Bank during the 1873 panic, the bank posting 30/60-day notice (invoking the legal notice rule) and shortly afterward resuming limited payments for small amounts. Cause attributed to the wider panic of 1873 rather than specific fraud or misinformation.

Events (3)

1. September 23, 1873 Run
Cause
Macro News
Cause Details
Deposit withdrawals triggered by the broader financial panic of September 1873 and general loss of confidence across savings banks in the city.
Measures
Directors decided to invoke legal notice (30/60 days) for withdrawals above set thresholds; limit payments for small amounts.
Newspaper Excerpt
A considerable run was made upon this bank, but the President decided to avail himself of the sixty days' notice
Source
newspapers
2. September 23, 1873 Suspension
Cause
Macro News
Cause Details
Bank invoked the statutory notice-of-withdrawal rule (30/60 days) in response to heavy withdrawals during the general panic; effectively suspended immediate full payment for larger sums.
Newspaper Excerpt
The North River Savings Bank ... required thirty days for notification
Source
newspapers
3. September 24, 1873 Reopening
Newspaper Excerpt
The North River Savings Bank ... began yesterday to pay in small sums, as the demand was light, although they had previously decided to require the thirty and sixty days' notice, according the rule.
Source
newspapers

Newspaper Articles (4)

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 The New York Herald, September 23, 1873

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North River Savings Bank. A considerable run was made upon this bank, but the President decided to avail himself of the sixty days' notice, and payments were accordingly not made.


Article from The New York Herald, September 24, 1873

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informing depositors that all amounts under $100 will be paid without notice being given, but all intended withdrawal of amounts over that sum must be noted thirty days in advance. MANHATTAN SAVINGS INSTITUTION. This establishment, situated at the corner of Broadway and Bleecker street, requires no notice for withdrawal of deposits. There was no perceptible run on this bank yesterday. On the contrary, a number of depositors who had drawn their money on Monday returned the same yesterday. Confidence seems to have been entirely restored among the patrons of this bank. BOWERY SAVINGS BANK. Although this bank, in its report to the General Superintendent of Banks, shows the largest surplus and soundest condition, it has, nevertheless, posted large placards inside and outside of the building notifying depositors that thirty days' notice mustabe given before withdrawing any sums of $300 and under, and sixty days 10r amounts above that. No run there yesterday. THE NORTH RIVER SAVINGS BANK, corner of Eighth avenue and Thirty-fourth street, has issued similar notices to those of the larger institutions. At a meeting of the Board of Directors, held yesterday, it was decided that, in view of the many poor people having deposits there, sums of $10 and under be paid out on demand. Larger amounts, however, require notice. OTHER BANKS. The Atlantic, Broadway, Claremont, Dry Dock, Clinton, East River, Excelsior, Merchants', Clerks', Dime Savings, Mutual, New York and other banks have been compelled to protect themselves by issuing the thirty and sixty days' notices.


Article from New-York Tribune, September 24, 1873

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that may be converted in fifteen minutes, and $750,000 bonds, in cash, an amount total which their entire force would find difficulty in paying out in many days. BANK FOR SAVINGS. for Savings of the City of New-York. on was besieged throughout the de- its and paying, as they sum depositors, Bleecker-st., The Bank continued to day large do, all by even to the settlement of accounts, a mands, necessarily paid out. There seemed, however, of money a want was of the excitement attending the run of Saturday and Monday; indeed, a fair proportion drawing on the bank with the intention of those visiting doing so, assured by their deposits returned without appearance of things of their security. reply of the the controller to the ft-repeated question, Are my if safe 9" that They were; still, take them earnings want them," deterred many drawing. A large majority you of those drawing yesterday were women, credof whom, from appearances, would not be many ited with any great surfeit of this world's goods, yet whose bank account was quite large. With loss the money once in their possession, many seemed at a know what to do with it. Every one in their immediate to neighborhood seemed looked upon evil charac- One and the money was quickly hidden from sight. the ter, very scantily dressed. though advised to contrary. woman, drew her account of nearly $1,000, and, with the fear depicted on every feature, hurriedly passed to front door. But the gaze of the crowd of idlers upon the outside was too much for her, and she as hurriedly a returned to the receiving teller's desk and opened account. Soi it was with many others, who merely new drew their money as it appeared, to satisfy themselves that 11 was actually in the bank, and then returned it, though forfeiting the interest about due. It is understood that the authorities will not place any restrictions on the drawing of moneys, but will continue their preseut course. UNION DIME SAVINGS BANK. N. J. Haines, the President of this institution, said that they had since the excitement began paid in full every depositor who demanded money up to 7 p. m. Monday night, and that at that hour they had paid one depositor $8,000. "To-day, however," said he, the directors reluctantly passed: resolution to avail themselves of the 60 days' time allowed by law in the case of sums over $100. They had paid out on Monday $130,000, and yesterday the amount, he thought, would not exceed $40,000. which was not one-fourth the amount paid out by them daily in ordimary times. Yesterday a large number of depositors, mostly of small amounts, besieged the doors early in the morning. These, however, drew much lighter than the rule, and it was a noticeable feature that nine out of ten were unable to sign their names. Inside the clerks were busy tearing the wrappers off from huge packages of greenbacks from the Treasury and anextra paying teller was put on in order to satisfy the crowd as soon as possible. At 1:15 in the afternoon the street was perfectly clear of depositors, and the crowd inside was diminishing rapidly. This bank had also in the midst of the panic purchased |$100,000 worth of Government bonds, and paid cash. The Treasurer paid that the bank had made, by those depositors drawing out their accounts, between $5,000 and $6,000, to the advantage of those who had seen fit to let their money remain. MANHATTAN SAVINGS BANK. At the Manhattan yesterday. everything was quiet and Edward Schell, the Treasurer, stated that their drafts were not over an average business, and that many times during the day there was not a single person in the bank besides the officials and employes. They bad paid in full from the beginning, and the amount paid out yesterday would not equal one-tenth the sum drawn day previous. their financial affairs were adjustIng themselves properly to their agreeable surprise, as they expected troublejfrom the indications of Saturday. GREENWICH SAVINGS BANK. C. Gilbert, the Treasurer of the Greenwich Savings Bank, said that afnumber} offsmall accounts had been closed since Saturday, more, perhaps, than in ordinary times, though there had been no run and they had paid In full when asked to do so. About $60,000 was paid out on Monday. Yesterday, an hour before closing, the amount did not exceed $17,000, and there were few perBons in bank. Ordinarily in busy times they had paid four times that amount. GERMAN SAVINGS BANK. At eight o'clock yesterday morning a solitary woman was BOOD sitting on the steps of the German Bank in Union-square, and an hour later she was joined by half d o dozen men, who waited patiently until the doors were ppened. This bank has not availed itself of time, and Several of the men on learning that they could have their money, preferred to let it remain rather than lose %hree months' interest. " Monday," said Theo. E. Buck, the Treasurer, we had a deposit of $25,000. Some ac Counts have been closed, for among 20,000 depositors come will be foolish enough to draw in times like these." FRANKLIN SAVINGS BANK. The Franklin, at Forty second-st. and Eighth-ave. also resumed the payment of small amounts, yesterday, and will continue in this course unless the panic returns, a thing which the officers of that institution by no means anticipate. NEW-YORK SAVINGS BANK. President Richard H. Bull said that there had been few persons in this Bank all day, and their deposits yes Berday would, he thought, nearly equal their drafts. NORTH RIVER SAVINGS BANK. The North River Savings Bank, at Thirty-fourth-st. and Eighth-ave. began yesterday to pay in small sums, as the demand was light, although they had previously desided to require the thirty and sixty days' notice, ac cording the rule. One of the tellers said that they should continue to meet small amounts as long 88 there was the present quiet condition of affairs. but should avail themselves of their first determination if there wasany prospect of the repetition of a general rush. / OTHER RAVINGS INSTITUTIONS. At most of other savings banks, there was a return to the usual business. The Atlantic was paying all demands of $100, and larger sums when necessary; and this course was taken at the Mechanica' and Traders' Savings Bank. The New-Amsterdam was meeting all demands, which did not much exceed the usual amount The German Up-town Bank was free from the run of Monday. through adopting the requirement of 30 days' potice in all cases. The Teutonia Savings Bank, on Avenue A, was somewhat pressed on Monday. but its depositors recovered their confidence yeaterday, and held back. The Freedman's Savings Bank, on Bleeckerst., was quiet, paying out little money and receiving many deposits. The Clinton Savings Bank. on Eighth-ave., has from the outset had no trouble from depositors anxious to withdraw their accounts, and was yesterday opening a number of new accounts. O. P. Smith. the secretary, paid that everything was as quiet as Sunday there. This was also the case with the Trades' Savings Bank, Twenty-third-st. The Metropolitan and Seamen's SavIngs Banks have required the 30 days notice for sums $ 100 and 60 days for sums over $500. The Mutual Benefit, on Nassau-st., also adopted this rule, and was visited by few depositors yesterday. Thus the excitement seems lessening, and all the savings institutions in the city are confident that there will be no repetition of the panie, while many of the depositors are beginning to regret the loss of the interest on their money, which will considerably benefit the banks. The arrangements of Superintendent Matsell to keep order at the savings banks upon which "runs" were begun by customers were similar to those of the day