16523. Fidelity Trust Company (Philadelphia, PA)

Bank Information

Episode Type
Run Only
Bank Type
trust
Start Date
September 19, 1873
Location
Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model
gpt-5-mini
Short Digest
cc48960c5bf16a4c

Response Measures

None

Description

Multiple contemporary dispatches (Sept 19–22, 1873) describe a heavy run on the Fidelity Trust Company following the collapse of Jay Cooke & Co. and related failures. The company stayed open, paid large sums (over $900,000 reported), waived notice requirements, and the run subsided within a couple of days; there is no mention of suspension, receivership, or permanent closure.

Events (1)
1. September 19, 1873 Run
Cause
Macro News
Cause Details
Panic triggered by the failure of Jay Cooke & Co. and related suspensions in New York, producing general withdrawal of deposits in Philadelphia.
Measures
Stayed open beyond usual hours; paid out large sums (reported over $900,000); waived the ten-day notice requirement for withdrawals to reassure depositors.
Newspaper Excerpt
The run on the Fidelity Trust Co. continues among small depositors... The Fidelity Trust Company did not close at three P. M., but continued to meet all demands, receiving checks as late as five o'clock, at which hour over $900,000 had been paid out.
Source
newspapers

Newspaper Articles (10)
1. September 19, 1873 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, September 19, 1873

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State securities are neglected. Government bonds are unsettled. Quotations are nominal. PHILADELPHIA, Sept. 19.-The run on the Fidelity Trust Co. continues among small depositors, but confidence is being restored. One depositor with five thousand dollars in the company applied for it, and the ten day notice was waived; after receiving the cash he deposited it again. This company has four thousand depositors and President Brown says is able to meet all demands. NEW YORK, Sept. 19.-E. D. Randolph & Co., bankers of the Penosylvania Central Railroad, and Wm. II. Connor have announced their suspension. WASHINGTON, Sept. 19.-There are no new developments in the failure of Jay Coooke & Co. this morning. No statement of the liabilities and assets can be obtained for several days yet. The failure caused a run on different banks of this city to-day. As early as six o'clock a line was formed in front of the Washington City Savings Bank waiting for that institution to open, the majority of those in line being women, who had small amounts on deposit. The President of the institution was on the ground and addressed the crowd, stating that the bank was perfectly able to pay all demands which is now being done. Later in the day several prominent depositors left the line, feeling perfect security in the institution. There was also a slight ruu on the Bank of Washington, immediately adjoining the Savings Bank, but it has entirely ceased. There is also a run on the Freedmens Bank. There is very little excitement. WASHINGTON, Sept. 19.--Elward L. Stanton, son of the late Secretary of War, has been appointed receiver of the First National Bank of this city.

2. September 20, 1873 The New York Herald New York, NY
Article from The New York Herald, September 20, 1873

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THE RUN ON PHILADELPHIA BANKS. PHILADELPHIA, Sept. 19, 1873. The Fidelity Trust Company did not close at three P. M., but continued to meet all demands, receiving checks as late as five o'clock, at which hour over $900,000 had been paid out. Mr. Browne, President, said he would keep open until midnight if it were necessary, to show depositors that that institution was in a sound condition and able to meet all claims. The Union Bauking Company was run upon up to the hour of closing, three o'clock, at which hour about $500,000 had been paid out. There was a run on the First National Bank, but it did not amount to much. TOUCHING BOTTOM. To-night there is a feeling prevailing that the worst has passed and that to-morrow will witness a decided change for the better. PUBLIC FUNDS SAFE. It is authoritatively stated that neither the State nor the city funds are disturbed, the State and city treasurers having no connection whatever with Jay Cooke & Co. nor any of the endangered houses. CALLING ON PRESIDENT GRANT. President Grant is in town to-night and was waited upon by prominent and influential gentlemen, who, it is said, urge the government to do something to strengthen the money market.

3. September 20, 1873 Wilmington Daily Commercial Wilmington, DE
Article from Wilmington Daily Commercial, September 20, 1873

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SECOND EDITION. THE FINANCIAL TROUBLES. Situation in Philadelphia. QUIET AGAIN RESTORED. More Suspensions in New York. PHILADEDPHIA, Sept. 20. Third street is comparatively quiet, this morn ing. The run on the Fidelity Trust Co. has almost entirely subsided. The Union Banking Company at Fourth and Chestnut, did not open, to-day, but placed a placard on the door which stated that, owing to heavy demands, a suspension of a few days had been It a run, yesout about terdsy, resolved on. paying suetained seven heavy hundred thousand dollars. It is a State Institution, issuing no notes, and the suspension only affects depositors At Jay Cooke & Oo.'s bank, (matters are progreasing quietly. The clerks are busy in preparing a statement which before a members but un of will the be firm, laid this cannot meeting take of place the til after the arrival of the steamer Russia on board of which two members of the firm are passengers. The Russia is expected to arrive on Monday. SECOND DISPATCH-MORE SUBPENSIONS IN NEW YORK. NEW YORK, Sept. 20. The Union Trust Company has suspended until Monday, on account of money out on call loans not having been paid in. White and Co., also suspended. Stocks opened a little better, but declined a gain on the announcement of above suspensions. THIRD DESPATCH. New York, Sept 20. Edward Haight & Co. have suspended. The extensive leather firm of Horace Carr & Son, of Woodbury, Mass.. has suspended with liabilities of $100,000, and assets $15,000. The senior partner has disappeared. FOURTH DISPATCH. New YORK. Sept 20. E. Moorhead and K atchu n and Balkaap have suspended, Nothing is doing in Government securities and stocks are feverish. Saxo and Rogers have suspended. The National Bank of the Commonwealth has suspended and there is a rumored dafalcation in the Union Trust Co. FIFTH DESPATCH-SALES OF STOCK FORBIDDEN. NEW YORK, Sept 20. The President of the Stock Exchange has forbidden outside sales by members of the Board on the penalty of expulsion. Proposals to sell bonds to the government aggreated two million, six hundred thousand dollars, at 109 to 112. It is impossible to give stock quotations. SIXTH DISPATUH-THE STOCK EXCHANGE CLOSEDMORE FAILURES. New YORK, Sept 20, The Stock Exchange, was closed at noon by order of the President of the Board to avoid any further panic. Six additional broker firms are announced as suspended. Stooks opened at an advance, but fell from 2 to 25 per cent, on bank failures baing announce ed, SEVENTH DISPATCH-PHILADELPHIA STOCKS EXCITED. PHILADELPHIA, Sept. 20. Philadelphia Stocks are excited. Penna. 6's are quoted at 105; Reading, 99; Penna. R. R. 97; gold, 111. EIGHTH DISPATCH-MORE BANKS AFFECTED. NEW YORK, Sept, 20. The National Trust Company is closed, and the clearing house have thrown out certified checks of the Continental Bank and,Merchants Banking Association. NINTH DISPATCH-THE UNION TRUST co.'s DEFALCATION. NEW YORK, Sept. 20. The run on the 4th National Bank continues, but the institution still holds out. Notice has been given that no general clearance can be exto to pected day, certified dealers in finding manner. it impossible get checks a proper The Bank of North America has suspended at Albany. The defalcation in the Union Trust Company amounts to half a million. At Albany, Squires & Sons' Banking house has failed. TENTH DISPATCH-NO MORE FAILURES IN PHILADELPHIA. PHILADELPHIA, Sept. 20. There have been LO futher failures here. ELEVENTH DISPATCH-OOCE'S LONDON HOUSE. LONDON, Sept. 20. Cook's banking house continues to meet all its demand. The Lutherans.

4. September 20, 1873 Wilmington Daily Commercial Wilmington, DE
Article from Wilmington Daily Commercial, September 20, 1873

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JENKINS & ATKINSON. Publisher. WILMER ATKINSON, w For Terms, Etc., See Second Page. Latest General News. Very little remains to be added to the telegrams in last evening's COMMERCIAL, in reference to yesterday's development, in the finanwere no in or cial either flurry. Philadelphia There New further York, suspensions, of any important houses, except that of E. D. Randolph & Co., in the latter city. Quite a number of brokers, and small "operators," squeezed in the stock decline. The run on the Fidelity Trust Company, in Philadelphia, was fairly met, and the bank remained open an hour after time, to meet it. In New York, the Union Trust Co,, and the 4th National Bank were now open. but both declared their soundness and met all demand. At a meeting of Na tional Bank Presidents in New York last night, it was decided to units in support of each other, and disregard the reserved restrictions into-day's dealings. This is expected to relieve the financial community and assist in restoring confidence. A despatch from Washington, received after midnight. announces that the Secretary of the Treasury has directed the Assistant Treasurer at New York to buy $10,000,000 of bonds to day. A dinner in honor of the Army of the Cumberland was at on given Pittsburg, Thursday night. General Sheridan presided, and among those present were President Grant, Generals Sherman, McDowell, Hooker, and other distinguished persons. The President on entering the room Was received with great enthusiasm. President Grant and family will return to Washington in the latter part of next week, to remain for the season. Prof. King's Buffalo bailoon landed. on Thursday evening. near Oxford, in Chenango county, N.Y. The Grand Treasurer of the Grand Lodge of O d Fellows yesterday transferred, through the Western Union Telegraph, a gift of $400 from the Grand Lodge for the suffering of Odd Fellows of Shreveport. The engineers are at length at work, surveying the proposed route of the Breakwater & Frankford R. R. Mr. Jno. B. Wingate and assistant are to run three separate lines and submit estimates of cost of construction before either line is decided upon. The yellow fever continues its ravages in Memphis. and all the trains leaving that city are filled with fugitives. New CASES of fever are reported in all parts of the city, and the Life Associations have forty to fifty persons engaged in attending the sick. The house of William Crouch, near Williamstown. Ky., was burned, on Tuesday night, and hie wife, two children and an orphan, named Dann, were burned to death. At Saxonville, Mass., on Thursday evening, Josiah Bigelow plunged a knife into his wife's throat. inflicting a wound that will probably prove fatal. He then gave himself up to the police. Pierrepont Thayer, a well-known actor. committed suicide at Pioche, Cal., on Thursday, by taking poison. The Terre Haute Iron and Nail Works, at Terre Haute, Ind. was burned yesterday morning. Loss. $175,000. Insurance. $73,000. including $5000 in the Franklin, of Philadelphia.

5. September 20, 1873 Gold Hill Daily News Gold Hill, NV
Article from Gold Hill Daily News, September 20, 1873

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EASTERN DISPATCHES. [SPECIAL TO THE GOLD HILL DAILY NEWS.] DOMESTIC.INTELLICENCE Purchase of Bonds by the Government Announced. NEW YORK. Sept. 20.--The Union Trust Company suspended at half past ten o'clock this morning. The Sub-Treasurer has posted a notice up. stating that he has been instructed by the Secretary of the Treasury to purchase $10,000,000 In bonds to-day This prompt response of the Government to the request made for relief parently, by banks additional yesterday, strength gives the to weak. ap- the strong and encouragement to A better feeling now prevails, and it looks as If the worst is over. Defalcation and Probable Suspension. NEW YORK, Sept. 20.-The suspension of Fisk & Hatch is said to make probable the embarrassment of the Hoboken Bank for Savings. A defalcation of nearly $70,000 was discovered in the bank lately and the directors disposed of securities to make up the deficiency, depositing with Fisk & Hatch for safe keeping $94,000 of the amount realized. The suspension of the firm makes this sum unavailable at present. Numerous Additional Failures. The failures of Ketchum & Belknap and E.C. Moorhead are the latest reported. The National Bank of the Commonwealth has suspended, and Saxe & Rogers have suspended. A meeting of the creditors of Jay Cooke & Co., will be held next Monday. PHILADELPHIA, Sept. 20. - Third street is comparatively quiet. The run on the Fidelity Trust Company has almost entirely subsided. The Union Banking Company did not open to-day. A notice was placed on the door, which states that owing to heavy demands a suspension of a few days was resolved upon. It sustained a heavy run yesterday. paying out $700,000. It is a State institution. no notes, and the supension only effects depositors. At Jay Cooke's clerks are preparing a statement to be laid before the members of the firm on the arrival of the steamship Russia, on board which are two of the pardners. Still Further Suspensions. NEW YORK. Sept. 20.-New suspension are Toussig & Fisher, M. Meyrs, Miller & Wolsch, Laurens. Joseph Fearing & Dellinger, Williams & Bostwick.

6. September 20, 1873 The New York Herald New York, NY
Article from The New York Herald, September 20, 1873

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THE CRASH IN PHILADELPHIA. General Withdrawal of Deposits-A Serious "Run" on the Fidelity Trust Company-Fallures of Several Houses. PHILADELPHIA, Sept. 19, 1873. In my telegram to the HERALD last evening I said that a rumor was afloat announcing the failare of the banking house of De Haven & Co., and in stating it I had every assurance of its truth from more than one party. They announce their temporary suspension in the following card:We regret to be compelled to announce to-day that, in consequence of a great run upon us for money, we are obliged to suspend payment temporarily. We are abundantly aple to pay all we owe. DE HAVEN & BRO., No. 40 South Third street. They were the Philadelphia agents for placing the bonds of the Union Pacific Railroad Company, and have also been engaged in other large enterprises. If the canard about their suspension had not been given currency, they would undoubtedly have been able to weather the storm, and there is now every assurance that they will be able to make good their promise to meet all their liabilities-dollar for dollar. THE FRIGHTENED CROWDS. It is impossible for me to give you any idea of the intense excitement which is every where apparent in all business thoroughfures to-day. Yesterday, though the doors of the house of Jay Cooke & Co. were barred at noon, the news of the great disaster failed to reach the ear of many persons until towards evening, when it was entirely too late for them to follow their inclination in reference to withdrawing their deposits. This morning, and even up to a late hour of the day, Third street was a sea of excited men, and every banking house in town has been subjected to a constant and constantly increasing "run." WITHDRAWING DEPOSITS. About the Fidelity Trust Company's buildings the crowd was immense, and a steady line of men passed in and out the broad and lofty entrances. They besleged the cashier's desk in great numbers; but as each check was rapidly passed in it was with equal rapidity cashed. Although it was perfectly evident that the Fidelity was all right, a large percentage of the deposits being from the middle and poorer classes, the great excitement of the depositors could not be subdued, and hence the "run" has been kept up all day long. THE COMPANY SOUND. Mr. Browne, the President of the Fidelity Company, says that the "run" cannot possibly affect the concern, for they have on hand sufficient sums to meet any demand that could possibly be made. He says that the failure of Jay Cooke & Co., E. W. Clark and De Haven & Co. has no bearing whatever upon the Trust Company, because every dollar that has ever been placed in their hands was amply secured by good collaterals. The Fidelity, in order to prove to the public the groundlessness of their fears, departed from their regular rules concerning deposits which receive four per cent interest, and have returned them to the depositors upon their immediate application instead of subjecting them to give a notice of ten days before they could be drawn, as the rule requires. EXCITEMENT ON THE STREET. on Third street, which to a very saint extent cor

7. September 22, 1873 The Wheeling Daily Register Wheeling, WV
Article from The Wheeling Daily Register, September 22, 1873

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PHILADELPHIA. The Financial Position. PHILADELPHIA, September 20. .-The Fidelity Trust Company, did not close at three o'clock yesterday afternoon. but continued to meet all demands, re= ceiving ohecks as late as five, at which time over nine hundred thousand had been paid out. Mr. Brown, the President, said be would keep open until midnight if it was necessary to show depositors that that institution was in a sound condition, and able to meet all claims. The Union Banking Company was run upon up to the hour of closing, at which time about five hundred thousand dollars had been paid out. There was a run on the First National Bauk, but it did not amount to much. It is said that neither the State nor the city funds are disturbed, the State and City Treasurers having no connection weatever with Jay Cooke & Co., or any of the endangered houses Thurd street is comparatively quiet this morning. The run on the Fidelity Trust Co, has almost entirely subsided. The Union Banking Company did not open to-day. A placard on the door states that owing to the heavy demand a suspension of a few days had been resolved upon. It sustained a heavy run yesterday, paying out about seven hundred thousand dollars. It is stated that the institution is issuing no notes, and the suspension only affects depositors. At Jay Cooke & Co's the clerks are preparing a statement to be laid before the meeting of the members of the firm on the arrival of the steamship Russia, on board of which are two of the partners.

8. September 22, 1873 New-York Tribune New York, NY
Article from New-York Tribune, September 22, 1873

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THE PANIC ELSEWHERE. ITS EFFECTS IN EUROPE. LONDON, Sept. 30.-Dispatches from Frankfort, Hamburg, Bremen, and Vienna, say DO failures have occurred in those cities on account of the NewYork panie, but that much anxiety exists in financial circles. THE SYNDICATE ACCOUNT-QUIET RESTORED IN WASHINGTON. WASHINGTON, Sept. 20.-The following was received from London to-day: Hon. WITHLIAM A. RICHARDSON, Secretary of the Treasury, Washington, D. C.: The Syndicate account is in perfect order. There is universal kind feeling toward Jay Cooke, McCulloch & A. G. CATTEL. Co., who continue business as usual. The members of the firm of Jay Cooke & Co. in this city have prepared a statement of the situation of the Washington branch of the house, and are awaiting a similar statement from the other branches of the firm. The Receiver of the First National Bank took formal possession to-day, and will at once proceed to liquidate its affairs. The run on the savings banks bas spent its force. The Freedman's met everything with great promptness, and by 2:30 they had not a depositor left at the desk. Manv who had came for their money left without taking it. At the Washington Savings Bank the run was over by noon, and the bank sound. SUSPENSION OF THE UNION BANKING COMPANY OF PHILADELPHIA. PHILADELPHIA, Sept. 20.-Third-st. is comparatively quiet this morning. The run on the Fidelity Trust Company has almost entirely subsided. The Union Banking Company, corner of Fourth and Chestnut-sts., did not open to-day. A placard on the door states that owing to the heavy demande a suspension of a few days had been resolved upon. It sustained a hea vy run yesterday, paying out about $700,000. It is a State institution, issuing DO notes, and the suspension only affects depositors. At Jay Cooke's matters are going on quietly. The clerks are busy preparing a statement to be laid before the meeting of the members of the form, which cannot take place until after the arrival of the steamer

9. September 23, 1873 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, September 23, 1873

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NO GENERAL PANIC- CA NUT PENSIONS-WASHINGTON LOSSES-A LEATHER HOUSE GONE UNDER-THE LATEST ADVICES. ST.LOUIS. ST. Louis, September 20.-The feeling here to-day regarding monetary affairs in York has been more anxious and an. than it was prehensive New yesterday, but still The there suspension has been no of alarm Taussy, or Gemk excitement. & Co. no owe produced perceptible effect. They little or nothing here, and therefore nobody will be hurt. The banks have curtailed their discounts but slightly. A majority of all good paper is passed promptly, and there seems to be little or no distrust. The markets on "Change to-day were a good deal unsettled. Corn and oats have declined a cent or two, and it was difficult to self any article; but this was the result of an uneasy feeling and a desire to hold of until steadiness is again restored rather than alarm. There has been no panicky feeling whatever. CINCINNATI. CINCINNATI, September 20.-The feeling in financial affairs here continues to be one of confidence. Third street to-day has been free from excitement, though inteiligence from New York has been watched with great interest and has been freely discussed. No paper has gone to protest, and the banks generally have been carrying for their customers. PHILADELPHIA. The Philadelphia Telegraph o. Saturday evening says: .. There is no such thing as borrowing money. lenders holding tenaciously to what they possess, or exacting impracticable terms from borrowers. The suspension of the Union Banking Company, it State corporation, has had an injurious effect upon the market, and caused a renewal of the 'run' at the Fidelity Trust Company, The teeling in all circles is very unsettled. In the stock market this morning prices were lower, as a rule, though it opened stronger. PHILADELPHIA, September 22.-A much better feeling prevails on the street to-day. The Stock Board is firm. Pennsylvania railroad is holding ground at 49 to 50. The bank starement will be out as 11 ual to-day, and will show a gratifying exhibit. PHILADELPHIA, September 22.-.-The normal condition of finances is rapidly improving in this city. Concerning the several banks that have suspended, it is said that all are solvent, but experienced some annoyance from the scarcity of currency. They ascribe their tumble to the refusal of the national banks to accept their checks, thus throwing them upon their own resources. Several are expected to resume to-morrow. BOSTON. BOSTON, September 20 -The firm of Horace Conu & to., of Woburn, Mass. exten. -ive leather manufacturers, suspended payment. Their liabilities amount to $100,000, and it is estimated that their assets are $150,000. s , Since the suspension, Horace Cene, the

10. September 23, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, September 23, 1873

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PHILADELPHIA. Special Dispatch to The Chicago Tribune. PHILADELPHIA, Sept. 22.-1t is currently rumored here that President Grant refunes to allow the reserve in the Treasury to be drawn upon in aid of the banks. THE EXCITEMENT IS INTENSE. Fears are entertained of a general suspension. A majority of the banks still continue payments. The run on the Fidelity is continued. On the receipt of a New York telegram, stating that the banks there had all suspended, one would have supposed that the bankers and brokers here had gone mad. A later telegram, just arrived, states that the formeria A FABRICATION. The alarm is but slightly allayed. The Stock Exchange remains closed until further notice from the President of the Board. The Union Bank refused to give any statement this morning. They have pasted on their closed doors the following: A Card.-Payments of all notes, drafts, etc., Intely held here can be made at the Girard National Bank. I am almost certain they will never rank in banking circles again. THE EXCITEMENT SUBSIDES. The excitement is somewhat allayed. The State Bank resumed payment about an hour since. Depue, Cashier, thinks they will now be able to meet the demand. The Board has opened at the Exchange. ANOTHER DISPATCH. Special Dispatch to The Chicago Tribune. PHILADELPHIA, Sept. 22.-This evening the excitement is considerably toned down. The city is full of strangers, called hither probably to take part in the dedications of the Masonic Temple. I might almost say there was no extra unusual excitement TOWARDS THE CLOBE OF BANKING HOURS, except among brokers. The people, whose confidence in some institutions has been shaken to such an extent as to cause A desire to draw their funds, have become satisfied that matters are not so bad as might bave been expected, and the run has almost ceased. About 11 o'clock a rumor of the suspension of all the banks in Now York gained some circulation, and for a time created quite a commotion. Of course, such action would have caused a very considerable change in the state of affairs. The National Banks, which have not felt any unusual pressure thus far, would have been affected, and would probably have been compelled to suspend also. Inquiries addressed to authentic sources in New York wore at once made, and the rumor was found to be untrue. THE FAILURES IN THIS CITY were not nearly 80 many as was anticipated. This fact ehowed how strong were our different financial firms, to be able to withstand NO well such a panio as has burst upon us. To the Fidelity Trust Company, which stood the brunt of the battle, our banks and other similar institutions owe a world of gratitudo; for, had it auccumbed, a general run and crash must have inevitably followed. As it is, many weak and flashy concerns have been cleaned out. This will make A far more healthy condition of affairs. Things remain in statu quo with THE UNION BANKING COMPANY. The doors are closed, and the future course of tho firm has not yet been determined upon. A meeting of the Directors was hold at 8 p. m. for the purpose of considering the state of affairs, but no statement was issued save the card sent in a previous dispatch. There 18 TROUBLE AMONG THE STATE BANKS. These institutions are obliged to make their colloctions through the National Banks. They have considorable country custom, and the genoral habit has been to deposit the checks received from the country banks, and then draw against them. As the State Bauke are not banks of issue, they must necessarily get their greenbacks through National Banks. In an interview with the officers of one of the State banks, this morning, they stated that on Saturday the National Banks refused to receive on deposit the checks of the country banks, and this refusal left the State banks without cash to