16591. Pennsylvania Bank & Trust Company (Philadelphia, PA)

Bank Information

Episode Type
Run Only
Bank Type
trust
Start Date
November 1, 1920
Location
Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model
gpt-5-mini
Short Digest
f6a0f064f41e60fb

Response Measures

None

Description

A large run occurred after a malicious/false rumor about a borrower; banking examiners found the bank solvent, it paid depositors (with minor payout limits recommended) and remained open, with later deposits restoring confidence.

Events (1)
1. November 1, 1920 Run
Cause
Rumor Or Misinformation
Cause Details
False/malicious rumor that a downtown firm had borrowed $100,000 from the bank and was about to go into bankruptcy; also rumor that a former director left owing large loans.
Measures
Paid out withdrawals in an orderly fashion; bank examiner reviewed books; recommendation to limit savings payouts to $50 and require two-weeks' notice for remainder; honored demand withdrawals until 1.5 hours after normal closing.
Newspaper Excerpt
Five thousand excited persons, most of them foreigners, jammed the street in front of the Pennsylvania Bank and Trust Company yesterday, struggling to get to the paying teller's window.
Source
newspapers

Newspaper Articles (4)
1. November 2, 1920 The Washington Times Washington, DC
Article from The Washington Times, November 2, 1920

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Article Text

5,000 DEPOSITORS STORM BANK FOR THEIR FUNDS Police Reserve Called to Stop Run Caused by Rumors. PHILADELPHIA, Nov. 2. - Five thousand excited persons, most of them foreigners, jammed the street in front of the Pennsylvania Bank and Trust Company yesterday, struggling to get to the paying teller's window. The bank's foreign-born depositors took fright at a rumor, which banking officials believe was malicious, to the effect that a downtown firm had borrowed $100,000 from the bank and was on the point of going into bankruptey. Police reserves had to charge the 'crowd to clear a way in front of the bank and then drive the clamorous depositors who had made their way into the building out into the street again, so that the bank could pay off depositors in an orderly manner.

2. November 2, 1920 Evening Public Ledger Philadelphia, PA
Article from Evening Public Ledger, November 2, 1920

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Article Text

BANK THAT HAD RUN OPENS TOMORROW Examiners Go Over Records Following False Rumor of Shaky Condition WOULD STAY OPEN TODAY Although closed today because of the legal holiday, the Pennsylvania Bank and Trust Co., Seventh street and Moyamensing avenue, will be open as usual tomorrow. Officials of the bank, upon which a "run" was made yesterday. made this announcement today. A bank examiner was said to have gone over the institution's accounts and found it solvent. The run yesterday was caused by rumors that a former director of the institution had le.\ the city owing $100,000 in loans made to his firm by the bank on poor security. Hundreds of small investors stood in line for hours. and drew out an estimated total of nearly $250,000. So great was the rush, many failed to reach the doors before they were closed. Banking examiners stated late yesterday afternoon as far as they could learn from a hasty inrs were inspection of the books, the groundless. All demand ACT withdrawals were honored until one and one-half hours after the usual closing time. The former director named in the reports is known to the bankers as member of a nearby firm., It was stated ne had a disagreement with his partner last week and the firm members decided to dissolve partnership. He severed his connection with the bank some time ago. He left town Friday on a business trip it was stated. Banking examiners could find trace of only one loan to the firm. That was for $12,000 and was on excellent collateral. The institution was examined last month, it was stated, and was found in sound financial condition. Throughout the day, three motorcars hurried to and fro between the bank and the business section, laden with coin on their return journeys, Only small depositors appeared to have placed credence in the rumor. Large depositors and checking account owners caused little trouble. At the close of the day, it was reported deposits were nearly up to the average, despite the crowds through which potential depositors had to push. Rabbi P. L. Levinthal, after questioning the bank officials, walked among the line telling persons the situation and assuring them. Many who had withdrawn deposits later opened e new accounts with the bank. Julius Dombro, president, was called from a sick bed yesterday and worked B throughout the day, though suffering with. a high fever. He addressed the frightened depositors from a portico in front of the bank, assuring them the institution was solvent. At the close of business the crowd dispersed without disorder, apparently well satisfied.

3. November 3, 1920 Evening Public Ledger Philadelphia, PA
Article from Evening Public Ledger, November 3, 1920

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Article Text

PUT CASH IN BANK, UNALARMED BY RUN Depositors Prove Faith in Institution Which Was Subject of False Rumor BOOKS FOUND CORRECT A large number of persons made deposits today at the Pennsylvania Bank and Trust Co., Seventh and Wolf streets, and this action appears to have restored full confidence in the institution on which a "run" was started last Monday. The run was caused by circulation of a false rumor. Officials of the bank today announced that the institution was solvent and prepared to meet all requests for money. Although there were two lines of people at the bank this morning. it was found that while many were withdrawing funds, a large number were depositing. Bank's Books in Shape Bank Examiner Riley. who is investigating the affairs of the bank. said that he found everything all right. Banking Commissioner Fisher. it is said, recommended that the officials pay out only $50 on all saving accounts and require depositors to give the legal two-weeks' notice to obtain the remainder. This recommendation is being followed, although it is specified in the books of depositors that two weeks' notice is required to withdraw any amount of money.

4. November 3, 1920 Every Evening, Wilmington Daily Commercial Wilmington, DE
Article from Every Evening, Wilmington Daily Commercial, November 3, 1920

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Article Text

RIOT AT BANK DOOR. Foreign Depositors at Philadelphia Alarmed by Rumors, Bring Police Out. Philadelphia, Nov. 3.-Five thousand persons, most of them foreigners, jammed the street in front of the Pennsylvania Bank and Trust Company, Monday struggling to get to the paying teller's window. The bank's foreign-born depositors took fright at a rumor, which banking officials believe was malicious, to the effect that a downtown firm had borrowed $100,000 from the bank and was on the point of going into bankruptcy. Police reserves charged the crowd to clear a way in front of the bank, and then threw depositors who had won their way into the building out into the street, 80 that the bank could pay off depositors in an orderly manner. J. S. Riley, State Bank Examiner, explained that the bank was solvent, but this had little effect on the crowd. Julian Dombra, President, was called from a sick-bed by news of the "run" and worked all day at the bank in spite of a high fever. There were thirty people waiting shortly after 8o'clock for the bank to open. The line grew rapidly and by 9 o'clock the streets were SO jammed that cars could not run. The police could not handle the crowds and an emergency call was sent to the Traffic Squad. The mounted men formed in line and pushed their horses into the crowd. When the patrolmen of foot had ejected the hundreds who swarmed into the bank as soon as the doors were opened, a line was formed and the bank began to pay off in orderly fashion.