16589. State Bank (New York, NY)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
December 4, 1914
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
144ee0ec

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health

Description

Multiple articles (Dec 4–8, 1914) describe runs on the State Bank on the East Side triggered by the failure of A.L. Kass (a private banker) and general East Side hysteria. The bank continued paying depositors, waived the usual sixty days' notice, and the run abated by Dec 8; there is no mention of a suspension or receivership.

Events (2)
1. December 4, 1914 Run
Cause
Local Banks
Cause Details
Run sparked by the failure/closing of A. L. Kass, a private banker on the East Side, producing general East Side bank hysteria and nervous withdrawals.
Measures
Posted signs waiving the usual sixty days' notice; asked State Banking Department permission to keep open all day; paid depositors promptly (extra tellers), National City Bank offered a $1,000,000 loan.
Newspaper Excerpt
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 ...
Source
newspapers
2. December 8, 1914 Other
Newspaper Excerpt
State Bank Run at an End. The run on the State Bank, on Grand street, caused by the failure of A. L. Kass ... has come to an end. Many depositors who withdrew their money during the run are redepositing in the bank, according to a statement made yesterday by O. L. Richard, the president.
Source
newspapers

Newspaper Articles (5)
1. December 4, 1914 New-York Tribune New York, NY
Article from New-York Tribune, December 4, 1914

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Article Text

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

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

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Article Text

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.

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

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Article Text

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.

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

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Article Text

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.

5. December 8, 1914 The Sun New York, NY
Article from The Sun, December 8, 1914

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Article Text

State Bank Run at an End. The run on the State Bank, on Grand street, caused by the failure of A. L. Kass, a private banker on the East Side of the city, has come to an end. Many depositors who withdrew their money during the run are redepositing in the bank, according to a statement made yesterday by O, L. Richard. the president.