16493. Public Bank (New York, NY)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
December 2, 1914
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
b826ee72

Response Measures

Accommodated withdrawals, Public signal of financial health

Description

Multiple contemporary accounts (Dec 2–5, 1914) describe heavy withdrawals and large crowds at the Public Bank, Delancey & Ludlow, but the bank remained open, paid depositors, waived notice, and did not suspend or go into receivership in these accounts. The run was triggered by the recent closing of the Kass banks (contagion from other local bank failures).

Events (1)
1. December 2, 1914 Run
Cause
Local Banks
Cause Details
Contagion from the recent closing of the Kass banks on the east side led depositors to panic and demand cash from the Public Bank.
Measures
Added extra tellers (14 employees as tellers), admitted depositors in squads, extended hours (stayed open to 8pm), increased police presence; later posted signs waiving the usual sixty days' notice and requested State Banking Department permission to remain open all day; paid depositors throughout.
Newspaper Excerpt
Thousand at Doors of Public Bank, Delancey Street, at Opening To-day. #4 TELLERS KEPT BUSY. ... The biggest crowd was at the Public Bank.at Delancey and Ludlow streets.
Source
newspapers

Newspaper Articles (6)
1. December 2, 1914 The Evening World New York, NY
Article from The Evening World, December 2, 1914

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Article Text

EAST SIDE BANKS FACE RUNS; SEQUEL TO KASS CLOSING Thousand at Doors of Public Bank, Delancey Street, at Opening To-day. #4 TELLERS KEPT BUSY. Bank of United States Uses Hose to Keep Crowd Away. As an aftermath of the closing of the Kass banks on the east side, in Harlom and in Williamsburg by the State Superintendent of Banking yes$erday, there was a rush on nearly every east side bank to-day. There was no indication that the free rebources of any of them would not be anough to meet the strain. The biggest crowd was at the Public Bank.at Delancey and Ludlow streets. The pressure there began early yesterday. L. P. Pullman, the cashier put fourteen employees of the bank at work as tellers, ordered fifteen depositors admitted at a time and announced that the bank would not take advantage of its privilege of closing at 3 o'clock, but would stay open to 8 o'clock. The big electric sign which flashes the legend "Resources $14,000,000** was speeded up a little and until closing time two policemen from the Delancey street station had no trouble in keeping order. After 8 o'clock, however, a great browd gathered before the doors and grew uneasy and then noisy. A platoon of reserves was called from the station. Their appearance was taken by the crowd as an indication that something had really gone wrong with the bank, and there was soinething like a riot in progress until after 10 o'clock. There were a thousand persons in front of the bank at daylight and flerce rushes were made at the doors even before 9 o'clock, the opening hour. The police, first forming the troubled depositors, many of whom were women.carrying bables, into two lines which reached to Orchard Street, admitted squads of fifteen. Clerks of the bank, many of them girls with persuasive ways, were busy pointing out men and women at several windows depositing money. Depositors were urged not to sacrifice their January interest by drawing out money now. The bank has 15,000 depositors. "These poor people are only hurting themselves in their fright," said Mr. Pullman. "It is only natural in view of yesterday's failure and the others which have kept the whole neighborhood excited for months. Our capital and surplus is over a million dollars and back of them we have the resources of our directors, every one of whom, with one exception. is a milMonatre. "Our assets are all in liquid form. We have not a loan for more than three months. We have been prepar-

2. December 3, 1914 New-York Tribune New York, NY
Article from New-York Tribune, December 3, 1914

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Article Text

POLICE AID BANKS IN EAST SIDE RUNS Depositors Hysterically Demand Cash After Kass Failure. Suffering from hysteria conseque.it upon the closing of the Kass banks, excitable residents of the East Side made a run upon the Public Bank, at Delancey and Ludlow st., yesterday and upon other banks in the neighborhood. It was a characteristic East Side run. The news spread through the crowd like an electric spark through tinder. Before the bank doors opened there was a throng outside, and finally police reserves had to be called. When the doors opened the police permitted depositors to approach the paying tellers' windows in long lines. Many, as soon as they saw piles of actual cash ready to be handed out, abandoned their intention of withdrawing their money. Some wished to take only half of their savings, and many after withdrawing their money immediately desired to bank it again, and were greatly annoyed when they found they had to go to another window. The crowd remained about the same size in front of the building until banking hours were over. There were two or three arrests when the more excited began, in regular East Side fashion, to yell or rattle the bars in front of the windows. Quite a large proportion of

3. December 4, 1914 New-York Tribune New York, NY
Article from New-York Tribune, December 4, 1914

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Kobre, Ginsberg and Lawyer Accused by Grand Jury in Brooklyn. NEW BANK RUNS ON EAST SIDE Nervous Depositors Throng Institutions, Despite Their Readiness to Pay All. max Kobre, Moses Ginsberg, his partner and manager of the Brownsville branch of his private banking business, and David E. Singer, his lawyer son-in-law, were indicted again yesterday, and Singer spent last night in Raymond st. jail, Brooklyn. District Attorney Cropsey obtained the indictments. ess than a month ago the same trio were indicted on this side of the East River. At that time Charles Dushkind, Special Assistant District Attorney, asserted that one of the men dumped $60,000 and another $50,000 into Wall Street shortly before their banks closed, early in August. Of the third he said there was proof to show that a check for $25,000 was handed to his lawyer the night before the banks closed. It is believed that this $25,000 transaction figures in the Brooklyn indictments and that Singer was the man it is alleged the check was given to. Kobre is also concerned in this, according to the District Attorney's office, and indicted as well for receiving deposits after he knew his bank was insolvent. There is a. forgery charge against Ginsberg. Runs continued on the Public Bank, at Delancey and Ludlow sts., and the State Bank, at Grand and Orchard sts., yesterday. Lines of overanxious depositors began to form in front of the two institutions as early as 2 o'clock in the morning. Questions asked of the nervous people by reporters failed to reveal the source of rumors that the banks were in any way unsafe. Nevertheless, ever since the closing of the Kass banks the susceptible East Side has been in a flurry over banks in general, and this is said by bankers to be the reason for the runs. Before 9 a. m. there were about 500 persons in line at each bank, with police reserves keeping order. The line in front of the State Bank extended to Norfolk st., to Broome st., and east to Suffolk st. The line in front of the Public Bank extended west on Delancey st. to Orchard and south to Broome st. At the Public Bank depositors were paid off at the rate of five every thirty minutes, and at the State Bank at the rate of ten in the same period. Speculators appeared offering to buy from the depositors their accounts at 90 per cent of their value, but the police soon drove these men away, All day the banks kept on paying money out, and at closing hour, which was at the usual time, 3 o'clock, there were still about 2,000 persons in the vicinity of each

4. December 4, 1914 New-York Tribune New York, NY
Article from New-York Tribune, December 4, 1914

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bank. Many of them were curiosity seekers. The bank officials did not appear to be at all worried. They had posted signs in front of their places of business notifying depositors that the usual sixty days' notice before withdrawing money would be waived, and had also asked the State Banking Department for permission to keep open all day. President Edward S. Rothschild of the Public Bank said there was more than $2,447,543 in the vaults when it opened in the morning, and that not more than $100,000 could possibly be paid out in one day to the small depositors, who are the ones who make the runs. He added that the deposits aggregated about $12,000,000 and that the assets were far in excess of that amount. President Oscar L. Richard, of the State Bank, declared his cash on hand to be more than $4,000,000, and said the National City Bank had kindly offered to lend $1,000,000 at any time, but there would be no need for it. "This is our twelfth run." he said. "It may last a week and then we'll be stampeded by depositors wishing to put their money back. The trouble is that the East Side public does not know the difference between private banks and the incorporated institutions." Harlem branches of the two banks were similarly besieged by depositors yesterday, all of whom were promptly paid.

5. December 5, 1914 New-York Tribune New York, NY
Article from New-York Tribune, December 5, 1914

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EAST SIDE BANK HYSTERIA DYING Smaller Crowds Call for Money, and Confidence Is Being Restored. Dwindling crowds were the rule yesterday at the East Side banks which have been innocent victims of the hysteria. The feeling seemed to be prevalent that the worst was over and that the "stupid runs" would die a natural death. Max Kobre, head of the bankrupt chain of banks which bore his name, and Moses Ginsberg, his partner and manager of the Williamsburg branch, furnished $10,000 bail each yesterday when arraigned before County Judge Fawcett in Brooklyn. Both had been indicted the previous day. David E. Singer, son-in-law of Kobre, who spent Thursday night in Raymond st. jail, was released after giving a $5,000 bond. Although extra tellers worked all day yesterday paying depositors of the Public Bank, at Ludlow and Delancey sts and the State Bank, at 52 Norfolk st., and their branches in Harlem, only one case of extreme disorder was noted. William Geister, of 356 Hewes st., Brooklyn, tried to force his way into the Public Bank and started a fight when turned back to the end of the line. Several depositors joined the scuffle and were repulsed by police reinforcements. Geiser was locked up in the Clinton st. station, as was Meyer Fine, of 97 Monroe st., accused of trying to aid him to escape. At the banks and branches named all who applied for their money got it. There was no attempt to temporize, but rather to facilitate the withdrawal of deposits. The moral effect of this attitude was not lost on the men and women in line.

6. December 5, 1914 The Evening World New York, NY
Article from The Evening World, December 5, 1914

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FEW IN ALL NIGHT LINE BEFORE EAST SIDE BANKS Throngs Diminish Before Public and State Banks, Where Runs Are On. Lines of depositors, but smaller than for the last two days. stood through the early morning hours waiting for the Public Bank at Ludlow and Delancey Streets, and the State Bank, at No. 52 Norfolk Street, to open for business to-day. At the State Bank, where the line has numbered 300 by daylight, there were only sixty or seventy in line this morning. The first was a woman, who had been there since 3 o'clock. She said she was Sarah Reistock and that she lived in Brooklyn. The first person in line at the Pub. lic Bank, where the number was larger, was Hyman Gllshik of No. 176 Orchard Street, who wore a cap with eartabs, which he had turned down, and a heavy ulster to protect him from the cold wind that swept through Ludlow Street. It was not known whether the cold weather, a calmer feeling among the people or the fact that to-day is the Jewish Sabbath was responsible for the smaller numbers in line.