16445. Oriental (New York, NY)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
February 5, 1908
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
c82bf954

Response Measures

Accommodated withdrawals, Capital injected, Full suspension, Books examined

Description

Newspaper articles describe a rush/withdrawals at the Oriental after failures of other New York banks in early February 1908 (run). Temporary receivers were appointed late February 1908 but courts subsequently vacated the receivership and re-delivered assets to the directors in March 1908, allowing the bank to contest receivership and consider resumption of business. Cause of the run is clearly linked to failures of other local banks/clearing-house actions rather than an isolated misinformation event. Bank charter type not specified in articles.

Events (3)
1. February 5, 1908 Run
Cause
Local Banks
Cause Details
Runs began after closing of other New York banks (New Amsterdam, Mechanics & Traders, National of North America) and renewed drains following clearing house actions.
Measures
Depositors were paid promptly.
Newspaper Excerpt
As a result several other banks not in the important class met with heavy withdrawals of deposits. One of these was the Oriental, where a rush began as soon as the office was opened for business. Depositors were paid promptly.
Source
newspapers
2. February 28, 1908 Suspension
Cause
Government Action
Cause Details
Temporary receivers were appointed (Attorney General Jackson sought receivership) following the bank trouble; court actions followed to vacate the appointment.
Newspaper Excerpt
A red-hot court battle...attempt to throw into the hands of permanent receivers the Oriental...an order was secured from Justice Platzek directing Jackson to show cause before Justice O'Gorman on Tuesday why the Oriental receivership should not be vacated. Jackson wanted the temporary receivers to hold over until the case should come up late in March.
Source
newspapers
3. March 18, 1908 Reopening
Newspaper Excerpt
ORIENTAL WINS AGAIN...the order appointing the receivers was properly vacated...the court exercised all possible haste, out of consideration for the bank's depositors. Whether, on the re-delivery of the assets to the bank's directors, the business should be resumed...was left to directors' decision.
Source
newspapers

Newspaper Articles (10)
1. February 3, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, February 3, 1908

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CONFUSED BANK FIGURES How Elimination of Averages of Failed Banks Affected the Weekly Return NEW YORK. February 2.-The bank statement was utterly confused this week by the elimination of the figures of the four suspended banks--the Mechanics' and Traders'. the North America, Oriental and the Now Amsterdam. These institutions had loans of $18.000,000, so that the decrease of $1,783.000 reported by the Associated Banks yesterday would apparently mean that the total contraction was close to $20.000.000. if the averages of the four failed banks have been eliminated entirely. In the same way the cash gain of $6,295,000 reported yesterday must have reflected an actual Increase of nearly

2. February 6, 1908 Wood County Reporter Wisconsin Rapids, WI
Article from Wood County Reporter, February 6, 1908

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NEW YORK BANKS FAIL. New Amsterdam National and the Mechanics and Traders Are Hit. Bank examiners have taken charge of the affairs of the New Amsterdam National and the Mechanics and Traders'. a State institution. both of which closed their doors in New York the day before. These banks were in the Morse-HeinzeThomas chain, and after the closing of the National of North America a few days ago, there had been runs upon them. Both were unable to take up their allotment of the certificates which the clearing house issued during the stringency beginning in October, and when the renewed drain upon their resources began the clearing house authorities declined to extend their credit. Although the closing was expected among the bankers and wellinformed men in the financial world it found many of the depositors unprepared and caused them inconvenience. As a result several other banks not in the important class met with heavy withdrawals of deposits. One of these was the Oriental, where a rush began as soon as the office was opened for business. Depositors were paid promptly.

3. February 11, 1908 Wausau Pilot Wausau, WI
Article from Wausau Pilot, February 11, 1908

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NEW YORK BANKS FAIL. New Amsterdam National and the Mechanics and Traders Are Kit. Bank examiners have taken charge of the affairs of the New Amsterdam National and the Mechanics and Traders'. a State, institution, both of which closed their doors in New York the day before. These banks were in the Morse-HeinzeThomas chain, and after the closing of the National of North America a few days ago, there had been runs upon them. Both were unable to take up their allotment of the certificates which the clearing house issued during the stringency beginning in October, and when the renewed drain upon their resources began the clearing house authorities declined to extend their credit. Although the closing was expected among the bankers and wellinformed men in the financial world it found many of the depositors unprepared and caused them inconvenience. As a result several other banks not in the important class met with heavy withdrawals of deposits. One of these was the Oriental, where a rush began as soon as the office was opened for business. Depositors were paid promptly.

4. February 14, 1908 The Boise Citizen Boise, ID
Article from The Boise Citizen, February 14, 1908

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THE RAID ON NEW YORK BANKS. That the panic was caused by the Rockefeller-Morgan combine for the purpose of getting control of numerous New York banks and punishing their enemies is becoming more evident every day. The Clearing House Committee is dominated by these interests and is now arbitrarily refusing aid to one bank after another that the interests cannot control. The ultimate object is a banking trust in New York that will seek to control the financial policy of the nation. These men never cease in their endeavor for special privileges and power and it behooves the American people to become aroused to the true situation. Regarding the closing of three banks last week in New York the Morming Telegraph discloses the conspiracy in the following editorial: "Certain features of the "cleaning up"-such is the expression used by the cleansers themselves-of the New Amsterdam and Mechanics & Traders' and Oriental banks are not exactly plain to the superficial observer. What is there behind the refusal of the Clearing House to accord further privileges to the banks which are members of the association? Also, what does it profit a bank to belong to a Clearing House if it has to be on a continual defensive toward all the other members? Further inquiry is also pertinent. Why are not some eight or ten other banks proceeded against as radically and drastically as were the New Amsterdam and Mechanics & Traders'? There are other institutions enjoying Clearing House privileges today which are no stronger on their financial underpinning than were these two. Both of these were admittedly solvent. Reports thus far show that both will pay out and pay out in full. The Clearing House Committee itself The Morning Telegraph dislikes to hold responsible, esteeming the members to be in the decay of their intelligences or they would not be retired to their present positions. They represent not their own views; not their own financial interests, but are there to represent others and do as they are bidden. The Clearing House Committee, under direction, has caused runs on various banking institutions by asserting the shakiness of these concerns, and then fearing the ultimate result temporarily stayed the progress of the destruction they had organized. It was decided to take them in series. There is no banking institution, probably, however solvent it may be, that could successfully withstand a run if left to its own cash resources. In an interview last week Mr. John D. Rockefeller said: "Mr. Morgan and I have been described by the newspapers as being very wicked men, yet Mr. Morgan and I saved fourteen banks from being wrecked and stood behind seventy others during the late panic. That was a pretty fine thing for two such wicked men to do," smugly concluded Mr. Rockefeller. He did not add that every dollar of Mr. Morgan's money, or money of which he had control, and every dollar of Standard Oil money which went to plug up the holes was returned with interest at anywhere from 20 to 150 per cent when demanded, and was replaced in the original lending by securities of twice its value. Also, currency was at a premium of 3 per cent over night, SO that if a man were young enough and strong enough; arose early in the morning and remained up late at night, with a large bank fromor, let us say, the United States Treasury to refresh his capital-he might turn his money over in the twenty-six working days of the month. Rockefeller and Morgan did a very nice thing, but they were nicely paid. And now the banks are going three at a time instead. That is a side issue, however. What we would like to understand, and we are not solitary in this desire, is why the Clearing House Committee did not earlier shut down on these recently closed banks? If they needed money two months ago and were held up and were furnished with it, why cut off the supply? It looks something like malicious mischief. The Mechanics & Traders, had six million dollars' securities at the Clearing House, as against a debit balance of less than two millions. That left quite a bulwark for advances with securities as they are at the lowest prices. Mr. Sullivan, president of the Mechanics & Traders', said that he was told some time ago if he would resign his bank would be heldup. He declined on the ground that he owned the majority of the stock and did not care to have his property administered upon by the clerk or creature of some other banker, or association of bankers. Mr. Sullivan feared the wolves. Mr. Sullivan's statement is supported by a similar assertion; cold clammy and detailed by a member of the Clearing HouseCommittee. Mr. Sullivan would not submit and his privileges were cut off. Since the pulling down of the curtains in The Mechanics & Traders', one of the oldest financial institutions of the city, Mr. Sullivan has signified a willingness to withdraw from the active management of his bank, if reopened, and reopened it doubtless will be, as there never was any reason for closing it which has not existed for two months and which does not apply with equal force to many other banks. The more the situation is studied the more the conclusion is irresisP tibly fastened that the war is one of aggrandizement by individuals against other individuals. The first attack was SO sudden and so strong that the assailants themselves were frightened. They decided, after several hurried conferences, to go out after the other persons and interests in detail instead of in mass. The enterprise as originally planned was too great. In six months we may have a banking trust to add to the list of "predatory" concerns. For several weeks we have sent in a list of five subscriptions to The Commoner and a few to The Public, Lewis F. Post's journal of fundamental Democracy, and to The Investigator, of Omaha, Tom Tibbles' paper THE CITIZEN is pleased to consider itself in a small de-

5. March 1, 1908 The Washington Times Washington, DC
Article from The Washington Times, March 1, 1908

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NEW YORK BANKS FIGHT RECEIVERS Oriental and Mechanics and Traders Wage Court Battle. NEW YORK, Feb. 29.-A red-hot court battle, with millions of dollars involved, is to be the result of Attorney General Jackson's attempt to throw into the hands of permanent receivers the Oriental, and Mechanics and Traders' Banks, as indicated by today's proceedings. Powerful financiers who are interested in the banks are opposing the receiverships, as they want to attend to the liquidation of the banks themselves. Jackson says these plans are neither legal nor satisfactory. First blood was scored for the financiers late this afternoon, when an order was secured from Justice Platzek directing Jackson to show cause before Justice O'Gorman on Tuesday why the Oriental receivership should not be vacated. Jackson wanted the teprorary recelvers to hold over until the case should come up late in March. On representation of attorneys of the Metropolitan Trust Company, which has arranged to take over the Oriental's affairs, Justice Platzek ordered the hearing Tuesday. Some surprise was expressed at this, as Justice Platzek was the officer who appointed the temporary receivers Friday evening. In financial circles it has been generally reported that the Mechanics and Traders' Bank would be able to continue business, and it was understood that "new blood" was to be infused. The appointment of receivers, therefore, came as a surprise.

6. March 18, 1908 New-York Tribune New York, NY
Article from New-York Tribune, March 18, 1908

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ORIENTAL WINS AGAIN. Continued from first page. of the appointment of the receivers, and I agree that the order appointing the receivers was properly vacated. It is not the province of the court to advise the directors of a bank with respect to their powers or duties." Justice Laughlin said he thought the court should refrain from expressing any opinion on these questions: Whether, on the re-delivery of the assets to the bank's directors, the business should be resumed; or, if unable to resume, if money may lawfully or should be raised in the manner proposed: or whether the bank should go into voluntary liquidation, as provided by law. That the decision was handed down on Tuesday, and not on Friday, as is customary, was due to the fact that the court exercised all possible haste, out of consideration for the bank's depositors.

7. June 7, 1912 The Evening World New York, NY
Article from The Evening World, June 7, 1912

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small bank uptown would fit him to say that 60 per cent. of the out of town checks are on the so-called discretionary points? A. Yes; he is a student of banking. Q. Did you make this statement just now because you thought the facts printed In The World would hurt the Clearing House? A. No. I don't think the Clearing House can be hurt. Mr. Untermeyer raised his eyebrows. "You don't think," he asked, "that It is in the power of any one to hurt the Clearing House?" "Not by the statements published," replied Mr. Sherer. Q. But do you say that if this Clearing Mouse is levying an excessive and outrageous tribute upon the American people that the law cannot stop it-that the law cannot forbid such oppression and injustice? A. on, yes, if it is oppressive and unjust. Q. Have you talked with any member of the Clearing House Committee since you testified yesterday? A. With Mr. Vanderlip. Q. He was very much disturbed, was he not, and wanted you to "correct" what he considered a most unfortunate admission? A. No. but he suggested that I have it revised. I had made up my mind to do that anyway. ASKS ABOUT MORAL ASPECT OF THE RULE. Mr. Untermyer wanted to know how Mr. Sherer regarded the legal and moral aspects of the Clearing House banks being bound by the minimum collection charges rule. "What better right have the banks to do this than for manufacturers to get together and fix a price for their products?" asked Mr. Untermyer. "Well," said Mr. Sherer, "the charge is for a service. Carpenters, plumbers, and others have a moral as well as legal right to organize and fix a minimum price for their services. Any class rendering a service has that right." There was a laugh as Mr. Untermyer exclaimed: "Oh, then you want to pass under the labor union rule?" Q. What greater right have the banks to do what they are doing then railroads would have to fix a minimum charge for their services? A. The railroad has the grant of eminent domain -can run right through my home If It sees fit. It lays Its tracks over several States. It has privileges granted to It by the public and owes the public certain duties in return. Q. Are they not under the control of the national Government? A. But in very different ways. 1 Q. Both are engaged in interstate commerce? A. I could not say that. Q. Both are instruments of Interstate commerce? A. Yes. Mr. Sherer was questioned at length about the Clearing House certificates issued during the 1907 panic. He said the total was $101,060,000. In an effort to show how the withdrawal of Clearing House support could close the doors of a bank, Mr. Untermyer displayed a copy of a letter sent to four banks late in January, 1908, requiring them to withdraw their Clearing House "panic" certificates by Feb. 6 following. The four banks were the Oriental, the Mechanics and Traders, the National of North America and the New Amsterdam.

8. June 8, 1912 The Wheeling Intelligencer Wheeling, WV
Article from The Wheeling Intelligencer, June 8, 1912

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PROBE IS SENSATIONAL The bank around which the testi+ ALLEGED CLEARING mony centered was the Oriental, or HOUSE WRECKED BANK. ganized in 1851. Its financial decease was the result, It was testified, of a New Facts Developed in Money demand made by the clearing house Trust Inquiry to Favor Fedcommittee three months after the panic began. that it redeem its eral Regulation. clearing house loan certificates fol. lowed by a promise that the associaNEW YORK. June 7.-Testimony intion would be sustained by it. tended to show the power of the New Mr. Untermeyer had on the stand York clearing house committee was William S. Shearer, manager of the used to force a resolvent bank to the Clearing House Association: James G. wall during the aftermath of the panic Cannon, president of the Fourth Naof 1907, with the result that the "fair tional Bank, who recently became a reputation" of its president was member of the Clearing House Cgm"blasted," was dramatically presented mittee: R. W. Jones, president of the to-day before the Pujo committee of Oriental at the time of the pante, and the house of represencatives, which Erskine Hewitt and Charles A. Beekis Investigating the so-called money man, directors of the Bank. trust. Mr. Untermeyer brought out testiThe testimony was elicted by Sammony showing that at the time of its uel Untemeyer, special counsel of the suspension the Oriental had collateral committee, In his effort to demonup with the Clearing House for twice strate that functions of the clearing the value of its loan certificates, that house enable It to control the desIt liquidated assets twice the value tiny of New York's financial instituof its capitalization and at the time tions, and should be subject to reguits trouble began, was paying 12 per lation by law. cent dividends,

9. June 8, 1912 The Times Dispatch Richmond, VA
Article from The Times Dispatch, June 8, 1912

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THE TIMES-DISPATCH: RICHMOND, VA., SATURDAY, JUNE 8, 1912. rget CLEARING HOUSE 700 Feet in Air IS ALL POWERFUL CL Testimony to Show How It Absolutely Controls DesEverybody is taki tinies of Banks. pedia closing offe and students use New York, June 7.-Testimony intended to show how the power of the ready reference. New York clearing-house committee now. was used to force a solvent bank to the wall during the aftermath of the panic of 1907, with the result that the "fair reputation" of its president "was blasted,' was dramatically presented to-day before the Pujo committee of the House of Representatives, which is investigating the so-called money EVERYB trust. The testimony was elicited by Samuel Untermyer. special counsel of the committee. in his effort to demonstrate that the functions of the clearing-house enable it to control the destiny of New York's financial inThe Rich stitutions, and should be subject to regulation by law. The bank around which the testimony centred was the Oriental. organized in 1853, and one of the charter members of the Clearing-House Association, but It was testified that three other banks-the Bank of North America, and the New Amsterdam National Bank, in both of which Charles W. Morse was interested, and the Mechanics and Traders-were similarly compelled through the action of the clearing-house to close, although all proved to have been solvent. Their financial decease was the result, it was testified, of a demand made and the expense amount by the clearing-house committee three months after the panic began, that amounting to they redeem their clearing-house loan beside his machine. certificates and, in the case of the For the complete 5-volum endurance record and start the Oriental followed a promise that the later. trip association would stand by it "to the last ditch." made several rounds of a wide Mr. Untermyer had on the stand of territory about Mineola, and William Sherer, manager of the covered about 185 miles, when he Clearing-House Association: James G. a clink, a crack and another Cannon. president of the Fourth NaThe engine "went dead." He tional Bank, who recently became a member of the clearing-house comforced to make a long glide to the mittee: R. W. Jones, president of the and did not know what the Oriental at the time of the panic, and ble was until he found the broken Erskine Hewitt and Charles A. Beekand a hole in the cylinder. Guessman, directors of the bank. the truth, he opented the cylinder.

10. June 11, 1912 The Farmer and Mechanic Raleigh, NC
Article from The Farmer and Mechanic, June 11, 1912

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CLEARING HOUSE IS RESPONSIBLE For Forcing a Solvent Bank Out of Business According to Testimony Before the Committee of the House Which Which is Investigating. New York, June 7.-Testimony intended to show how the power of the New York clearing house committee was used to force a solvent bank to the wall during the aftermath of the panic of 1907 with the result that the "fair reputation" of the president was "blasted" was dramatically presented today before the committee of the house, which is investigating the money trust. The testimony was elicited by Samuel Untermyer, special counsel of the committee, in his effort to demonstrate that the functions of the clearing house enable it to control the destiny of New York's financial ininstitutions and should be subject to regulation by law. The bank around which the testimony centered was the Oriental, organized in 1853, and one of the charter members of the Clearing House Association, but it was testified that three other banks, the Bank of North America and the New Amsterdam National Bank, in both of which cases with Morse was interested and the Mechanics and Traders were similarly compelled through the action of the clearing house to close, although all. proved to have been solvent. Their financial decease was the result, it was testified, of a demand made by the clearing house committee three months after the panic began, that they redeem their clearing house loan certificates and in the case of oriential followed a promise that association would stand by it "to the last ditch." Mr. Untermyer had on the stand William Shere, manager of the clearinghouse association; Jomes G. Cannon, president of the Fourth National Bank, who recently became a member of the clearing house committee; R. W. Jones, president of the Oriential at the time of the panic, and Erskine Hewitt and Chas. A. Beekman, directors of the bank.