16476. Peoples Savings Bank (New York, NY)

Bank Information

Episode Type
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
6f3b7f38

Response Measures

None

Description

Articles from Sept 23, 1873 report People's (Peoples) Savings Bank invoking the sixty-days notice law and refusing panic-driven large demands while paying small sums. This indicates a temporary suspension/partial suspension (30/60/90 rule) tied to the 1873 panic (macro news). No article reports permanent closure or receivership; therefore classified as suspension_reopening (temporary suspension with no evidence of permanent failure).

Events (1)

1. September 23, 1873 Suspension
Cause
Macro News
Cause Details
Invoked sixty days' notice and refused demands made 'under the influence of the panic' during the financial panic of 1873; precautionary partial suspension of large withdrawals.
Newspaper Excerpt
The People's Savings Bank, No. 301 Third avenue, have taken advantage of the sixty days' law. They will, however, pay all small sums that may be applied for, but any demands made under the influence of the panic shall be refused.
Source
newspapers

Newspaper Articles (3)

Article from New-York Tribune, September 23, 1873

Click image to open full size in new tab

Article Text

THE SAVINGS BANKS UNHARMED. SEVERAL TEMPORARY RUNS-GENERAL RESTORATION OF CONFIDENCE. Among the savings banks there was little variation in yesterday's business as compared with that of Friday, Saturday, and many previous days. A few of them alone experience anything like a run upon their deposits, and these not to such an extent as to excite anyapprehension as to solvency. All were seemingly prepared for the worst, and were most agreeably disappointed as the day passed on without any invasion of moment upon their cash assets. In anticipation of a general run, members of the police force had been assigned to duty in the different savings banks, and most of them had an easy task. The German savings banks were particularly quiet, a president in one instance informing a reporter that his bank had money on hand for any of his neigh bors who might be pressed. At number of the banks the rule requiring notice of the withdrawal of deposits over a stated sum was strictly enforced, the amount varying, and it is a somewhat singular fact that those meeting all demands were the only ones, with one or two exceptions, upon which there was any considerable run. EAST RIVERSAVINGS BANK. At the East River Savings Bank, on Chambers-st there was no variation in the usual business of the day President Whitney stated that during the morning a number of deposits had been withdrawn. and likewise a large number received, in neither case to such an ex tent as to excite comment. He knew nothing of the action taken by some of the savings banks' officers Sunday evening, and could not agree with them that any particular distinction at this time should be made in the withdrawal of deposits. His bank was paying all demands without regard to notice given. EMIGRANT INDUSTRIAL SAVINGS BANK. At the Emigrant Industrial Savings Bank a considerable amount of money was withdrawn during the day. Soon after the opening of the bank a large number of the depositors assembled, and the line formed to the paying teller's windows found constant accessions during the day. Controller David Ledwith stated that they were meeting all demands without regard to amount or notice, and apprehended no difficulty in continuing to so. Indeed, the present run was not 80 extensive as they had anticipated and had made preparations for. They were led to believe that it would be of short duration. The bank statement of Jan. showed an excess over liabilities of $790,129 The majority of those closing their accounts had comparatively small deposits, 80 that the amount paid out was not large. ATLANTIC SAVINGS BANK. At the Atlantic Savings Bank, on Chatham-st. there was no excitement; still. as a precautionary move, the officers have adopted the plan of requiring sixty days' notice in the withdrawal of all sums of over $100. CITIZENS'(SAVINGS BANK. The Citizens' Savings Bank experienced something of a run during the earlier port of the day. but before closing this had almost entirely subsided. They are paying all demands under $1,000. requiring notices for larger amounts. Those in the line early in the day were mostly new depositors, the older and heavier ones having perfect confidence] in the bank. President Quintard remarked, as an evidence of the class now withdrawing their deposits, that up to p. m. probably not more than $25,000 or $30,000 had been paid over the counter. He was satisfied that no extensive run need be anticipated, but was well prepared to meet all demands. ORIENTAL SAVINGS BANK. Everything was as quiet as usual at the Oriental Savings Bank, on Grand-st. President Buckmaster stated that many had visited the bank during the day to make inquiries as to their deposits, and had departed satisfled of their security-many, perhaps, coming with the intention of drawing, and returning with only such as they required for use. In such cases no advantage was taken of the law requiring notice of such intention. As evineing a general confidence in the institution, the cashier stated that a number of new accounts had been opened during the day, and that no inconsiderable amount had been received on deposit. BOWERY SAVINGS BANK. Before the opening of the Bowery Savings Bank it was evident that a run was to be made, from the erowd of depositors that gathered around the doors. The trustees met and decided to pay all claimstor the present, believing that the run would not last long and not interfere with,the regular business. It was understood that should it continue, they should take advantage of the 60 days' notice, even then using their own discretion in the matter, and paying larger claims, to relieve suffering or inconvenience. Throughout the day and evening the steady run continued, the number at no time greatly crowding the bank. One by one they drew their deposits, losing nearly three months interest by doing 80, 80 that they alone are the losers and the bank is in no way inconvenienced. A very great many before long were convinced of this fact, returned to the bank and again deposited their money, begging that their interest might not be sacrificed. An instance of this kind was mentioned by the President. Early in the morning a woman drew about $3,000, the earning of many years. Her anxiety to withdraw it was hardly equaled by her anxiety to return it a little later, and the loss to her of the $85 interest affected her very much. The scene deterred many from following her example. The President further stated that the majority of the deposits drawn were of small amount, and that the smaller the amount the more auxious the owners seemed to be to get it, so that up to 2 o'clock in the afternoon not more than $200,000 had been paid out, and in the same proportion during the afternoon and evening. The bank had more tban 60,000 depositors. He did not anticipate any extensive run. NEW AMSTERDAM SAVINGS BANK. The New-Amsterdam Savings Bank has experienced no run from its depositors. Yesterday was a quiet day at the bank, though considerable deposits were received. President Frohwein stated that they are more fortunate than a majority of the banks in having an abandance of small bills. having $116,000 in the safe. They proposed to help the neighboring banks as far as they could, and had already done so by furnishing one that morning with $20,000 in bills on bond security. MECHANICS AND TRADERS SAVINGS' BANK. At the Mechanics' and Traders' Savings Bank it was stated that some accounts had been closed during the day. and perhaps $20,000 drawn while the average deposits had been received. There had been no run sufflclent to excite comment. NEW-YORK SAVINGS BANK. The New York Savings Bank on Bleccker-st. was surrounded by an anxious crowd of depositors from the opening of the doors in the morning. o'elock the doorewere closed, the officers deeming that there were then as many in the building as they could pay during banking hours. Probably nearly 100 were then in walt ing. Little information could be gained, further than that considerable money had been withdrawn, and also many deposits received. The officers anticipate DO trouble in meeting all demands. PEOPLE'S SAVINGS BANK. At the People's Savings Bank the cashier stated that one or two large demands had been made, in which cases they had taken advantage of the rule requiring notice. In small amounts, $3,000 or $1,000 had been drawn, and more than made up by deposits. MANHATTAN SAVINGS BANK. At the Manhattan Savings Bank a long line of depositors presented themselves in the morning desirous of drawing out their money, but the bank readily met Nee Fourth Page


Article from The New York Herald, September 23, 1873

Click image to open full size in new tab

Article Text

People's Savings Bank. The People's Savings Bank, No. 301 Third avenue, have taken advantage 01 the sixty days' law. They will, however, pay all small sums that may be applied for, but any demands made under the influence of the panic shall be refused. The deposits in the bank amount to from $8,000,000 to $4,000,000, covered by assets slightly exceeding that amount.


Article from The New York Herald, August 8, 1877

Click image to open full size in new tab

Article Text

SUPERINTENDENT ELLIS' TRIAL. MR. ELLIS TESTIMONY EXPLANATORY OF HIS OFFICIAL ACTION. SARATOGA N. Y., August 7, 1877. In the Ellistrial to-day, at the opening of the Senato, D. C. Ellis, bank superintendent, testified that the first time he ever heard the statement about the Third Avenue Bank, as sworn to by Isake Smith, a clerk in the department, was at Saratoga; don't remember any conversation with Smith about that bank there was a special examination by Reid, Aldrick and others in April, 1873: knew ot the $150,000 bonds which were to be given by the trustees; was influenced by all the lacts in bis knowledge; went to New York the day Duncan, Sberman & Co failed; saw Mr. Cisco, and be counselled delay; saw eight or ten other business men; they said that the market was excited: it continued 80 all the summer: acted on the opinion of these man; anticipated that the closing of this bank would be very disastrous to other banks; at tention was first called to the Mechanics and Traders' Bank by a letter from Roid, in 1874, about the trouble with the Secretary: I immediately went to New York the bank deposits were small; they continued to in. crease to the time of the closing ot the Third Avenue Bank: the complaint was against the management, not against the solvency of the bank; the officers were called set of robbers; examined the President and Finance Committee; found them running on in their own way; gave them the choice to close up or behave themselves; found the bank financially sound; when Reid examined the bank in December, 1874, showing a deficiency, the Secretary came to see me: told the Secretary the trustees must make up the deticiency or 1 would close them up; the letter of Decemi 25 was to know what had been done: received tele. gram saying they had put the bank in shape; Reid re ported in 1876 that the deficiency had been made good: relied on Retd' report, as I had no knowledge to the contrary next had attention called to the bank in August, 1876 Reid said, when told to go and look at the Beach street mortgage books. that they were not systematicali; kept: they seemed all right: was at Rochester when Lamb turned the bank over to the Attorney General, and approved his action instructed Reid to keep a watch on the bauk and others and report;returned the letters sent by Lamb and told him 10 look to the matter in his (Eills' absence. THE CASE OF THE PROPLE'S BANK. In the fall of 1873, on the report Mr. Reid, commenced proceedings to close the People's Savings Bank: some of the officers called and proposed to make up the deficiency, and as the bank had changed its location anticipated bette business; the trustees had put in one bond proposed changing, giving in dividual ones more binding; the suit was prosecu no further then: went to New York and looked Into the matter examined the trustees' bonds and mort gages, and was satisfied the deficiency would be made good in full; Reid and the superintendent called at the bank and made an informal examination of the assets did not make a formal report; only know that Reid reported when the report was produced on trial; the deficiency reported by Reld was more covered by bonds held by the department; thinks be acted under the letter received November 11, and telegraphed Reid to send formal report; wrote the Attorney Gen. eral to close the bank followed the figures of Reid's letter; the Attorney General prepared the summons giving the figueres in the letter: when formal report came, as figures differed, he changed them to agree with the formal report; after the Attorney General had no further control over the bank went with receiver to witness the deposit of the assets the bank the receiver of the Mechanics and Traders Bank found, after some months' work, that the ledgers were not correct as Reid had accepted them. THE LOANERS' BANK. Asked Smith, as he had been in the department many years, if the Loaners' Bank had ever made port; he said " bad made a statement but did not know what had become of it: he had examined and could tind no power to inforce the law Reid went and tried to examine; did not succeed went to New York in April, 1876; the officers told him they were taking of paying up depositors; handed him the opinion of William Tracy, their attorney thought it was before the opinion was put into the hands of the Attorney General the bank was turned over to the receiver: intended leaving the bani to the Attorney General and not put Traoy's opinion against the Attorney General: did not influence him from making un examination: could not walk m and take possession. ABINGDON SQUARE BANK. Never was inside of the Abingdon Square Bank nor saw the officers his only knowledge of this bank from reports and letters it was handed over to the Attorney General July 29, 1876, on the report of Reid by Lamb, Ellis being away has no recollection of hearing of bogus checks until the letter of Reid, when the bank closed; has no knowledge of the Receiver's actions. MORRISANIA GERMAN BANK. His attention was first called to the German Bank, Morrisauia, in March. 1875; Reid's examination men tioned a loan by former president on railroad bonds; the president and counsel of the bank came to Albany and be told them they must make up the deficiency they seemed very cuergetic did not want the bank closed; the former president deposited good collaterals for the oor under the former bank superintendent the officers seemed anxious to do al that the superintendent asked to make the and good General Sigel deficiency the trustees called after the bank had been pue in the hands of the Attorney General and said if there had not been such rnn and a little more time were allowed the depositors would all have been paid: a large proportion of the depositors had signed H petition, prom. ising to let their money lay in the bank it was not put in the hands of a receiver: had information from the Attorney General that be was going to try the ex periment of letting the depositors vote pro rata for a receiver; no lacts came to his knowledge to destroy the confidence in bank. his In the law of 1874 the New York Loan and Trust Company is required to report; examined in February 1875, after the report caine he examined the law and charter by which he could return them to the Attorney General: conversed with the trustees as to the manner of closing up BANK. SECURITY SAVINGS Attention was especially called to the Security Sav ings Bank in November of 1875: considerable excite ment prevailed in New York at the time; Mr. Reid made the examination had a conversation with the President: they had practically closed for a few days while the examination was being made they claimed that they were solveni Mr. Ettis told them the de ficiency must be made up he gave them all the time possible, as they were not doing business the bank was finalty closed by the officers January tive or six banks were closed after the Third Avenue NEW BANKS NURSED WEAK Attension was called to the Mutual Benefit Savings Bauk three or four days before the receiver was pointed Mr. Reid made an examination, found clency and told them they must make it up they asked time to nold meeting of trustees: two day before the time expired they appointed receive without his knowledge the deficiency was small trustees were always allowed to make up deficiency 18. new banks: in fact all new banks have to be propped up by their trustees: If any of banks holding mortgages were put under in the bammer, they would be insolvent time of great de preciation in stocks they might so, but allowed to go on would be right the Superintendent exercised his best discretion regard to these banks; it was that the Security Savings Bank was good and ought to go It not practicable with the force of the department to examine every piece of property the books hold one had 3,200 different mortgages: could only take the papers as they appeared to him they are re ported at face value in the present state of the real estate market; If their mortgages were foreclosed, banks could pay their depos tors; n run would force a foreclosure of mortgages, large proportion of which were taken when real estate was in better condition if let alone they will pull through. The Senate then adjourned.