New Haven Savings Bank - New Haven, CT

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: savings bank
Start Date: July 31, 1893
Location: New Haven, Connecticut (41.308, -72.928)

Metadata

Model: gpt-5-mini
Short Digest: 6c0e1bcf

Response Measures

Partial suspension

Other: Banks posted notices invoking the statutory notice-on-withdrawal rule (four months) and received assurances of aid from other banks; continued to pay some small urgent withdrawals.

Description

July 31–Aug 1, 1893: depositors made withdrawals (runs) on New Haven Savings Bank; officials posted the statutory notice requiring four months' notice before paying deposits (time rule). Articles report operations continuing and calm thereafter (no receivership or permanent closure reported), so this appears to be a run that led to suspension under the notice rule and subsequent continued operation (reopening/continuation). No evidence of misinformation causing the run.

Events (2)

1. July 31, 1893 Run

Cause Details: General depositors' panic/nervousness related to wider financial contraction (money drawn from New York); not attributed to a discrete rumor or bank-specific scandal
Measures: Bank posted notice requiring four months' notice for withdrawals (invoked statutory time rule) to check withdrawals
Newspaper Excerpt: RUN ON NEW HAVEN BANKS. ... runs were made on all three of the local savings banks. ... At the Connecticut bank at noon forty-two depositors had given notice of withdrawal, the New Haven thirteen
Source: newspapers

2. July 31, 1893 Suspension

Cause: Macro News
Cause Details: Contraction of the money market and widespread withdrawals (funds drawn from New York) prompted banks to invoke the statutory notice rule to protect depositors and stabilize operations
Newspaper Excerpt: Depositors wishing to withdraw money will be required to give notice as required by law. ... the New Haven bank will require four months' notice of withdrawal
Source: newspapers

Newspaper Articles (3)

1. July 31, 1893 Waterbury Evening Democrat Waterbury, CT

Article from Waterbury Evening Democrat, July 31, 1893

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Article Text

RUN ON NEW HAVEN BANKS. They Take Refuge Under the Provisions of Law. NEW HAVEN, July 31.-What may lead to a financial panic was begun today, when runs were made on all three of the local savings banks. The banks are the New Haven Savings bank, President Ex-Lieutenant Governor Merwin, the Connecticut Savings bank. President Governor Morris, and the National Savings bank, President Maier Zunder. As soon as the fact that there would be a run became evident to the officials steps were taken to check it, and the following notice was posted on the bank doors: "Depositors wishing to withdraw money will be required to give notice as required by law." The bank officials have received assurances from other banks that they will receive aid if necessary. At the Connecticut bank at noon forty-two depositors had given notice of withdrawal, the New Haven thirteen and at the National six. The New Haven bank will require four months' notice of withdrawal and the other banks three months.

2. August 1, 1893 Morning Journal and Courier New Haven, CT

Article from Morning Journal and Courier, August 1, 1893

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Article Text

I der, bookkeeper at the National, "with their deposits of $325,000,000 and a total surplus of $50,000,000, decided to avail themselves of the law allowing due notice to be filed before paying deposits, and the provision has been put into force. One of those banks has deposits of $43,000,000 and a surplus of $6,000,000. When New York decided on such a measure, the New Haven banks had to follow suit. TREASURER BROWN. Treasurer R. A. Brown of the New Haven bank said: "Our investments are the best there are in the land, and we have money enough on hand to pay depositors for some time to come. Last week we sold some of our securities to pay depositors, and it is not right to do that any longer. If this contraction of the money market was not universal all over the country, we could obtain what money we desired. We could get plenty of currency from New York. But all are now in the same boat. There has been drawn from the New York city banks $149,000,000 and sent all over the country where there is a pressing demand for money. Under the circumstances we decided to avail ourselves of a four months' notice before paying out any more money, as our charter provides that we may. This money is not ours; it is the deposit. ors', and we have done this thing for their protection. If we could dispose of $2,000,000 of our gilt edge securities in New York to-day we could not get the currency for them. For several days past the depositors have been drawing out their money and placing it in the drawers of the safe deposit vaults. The result is that much money is being taken from circulation and it is very harmful. As a matter of fairness to the other depositors, it is no more than right that we should require a notice before we pay out any more money. After the four months' notice the depositors who apply can get their money. This will allow us to get in our money from interest and deposits and meet all demands. It would not do for us to put our securities on the market and force a sale. That would bankrupt the city. WHAT HENRY D. WHITE SAYS. Henry D. White, one of the trustees of the New Haven Savings bank, said: "The deposits in our bank for June were more than for the same month last year. There is no run on the bank to-day, as most of the people who have called this morning came to deposit funds, pay their interest or receive their interest. Up to noon 178 depositors asked for their money. They were told the situation of affairs and seemed satisfied. The action of the banks in demanding a notice before paying depositors is all right. It is good sound business policy, for the itors." protection of the banks and of the deposGENERAL MERWIN'S OPINION-THE BANKS ALL RIGHT-THE SCARE NONSENSICAL. General S. E. Merwin, who is president of the Yale National and New Haven Savings banks, said when asked for his opinion about the depositors' scare at the New banks: Haven, Connecticut and National Savings "This scare among a few of the depositors is the height of nonsense. In my opinion these three banks are three of the most solvent banking houses in the United e States. There is no ground whatever for n any fears and all this talk and uneasiness is uncalled for." 8 THE ACTION OF THE SAVINGS BANKS. Last evening's Bridgeport Standard remarks as follows regarding such action as has been taken by the New York banks and by the New Haven banks: There are no firmer or more reliable institutions in the world than the savings banks of New York state, and the same may be said of those of New England. They are 80 guarded and 80 regulated by law that failure is practically impossible 80 long as B they are not robbed, or their depositors, y the people most interested in their prose perity, do not precipitate ruin by their own action. To guard against this possibility the time rule on deposits has been e established and the savings banks of New 8 York city have recently adopted it. This rule is to protect the public from the red sult of needless panic by protecting the n banks. Through the operation of the rule t time is given for the calling in of loans and d the converting of securities, which could e not be done were depositors allowed to call for their money all at once. The money is e practically safe, and no one need fear to lose a dollar, if the demand is not made rashly, through panic and in such a way as -1 to be a source of trouble which without it might not exist. The movement of the it New York savings banks, therefore, is in the best interests of the depositors and also in the best interests of the public, and is not a sign of weakness, but of strength, and ought to help out the financial situation materially. y 10 Should the rule be adopted by New England banks it would be for the same reason and to the same effect, and if the people could properly understand and appreciate it they would

3. August 2, 1893 Morning Journal and Courier New Haven, CT

Article from Morning Journal and Courier, August 2, 1893

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Article Text

very Consequent LITTLE EXCITEMENT Number Requiring Upon Legal the Savings Times Given Small -Quiet of Notices Notice-A Banks Alarmed. and People but Yesterday There was banks terday over no the excitement in town Little of case of requiring notice action of the yes- savings The matter intended from withdrawal depositors in topic, sation, in addition furnished a topic for deposits. the weather, to the usual converstreets or as unfailing evinced elsewhere. people met on the runs to know if Some curiosity was or attempts there had been vealed the at runs. any treasurer of following facts: Inquiries remet on the New Mr. Brown, was at about was as he the street Haven bank, Mr. Biown returning 3 o'clock two and unruffied. was as usual to the bank. Brown more hundred than was Nothing had urbane, courteous the plied at people, Mr. anticipated. About happened they writ when the wished to bank draw and given said, had ap had ten time out notice application limit their that excitebank part received. The of the expired kind A few deposits ment at about one there had been During the had busiest had no also been The bank time had waiting turn to forty people of the there day as small where sums in paid cases out that a little give the notice. for coal persons were urgent, money in pressing or rent needed money such which necessities. or groceries to pay and was thus The or other the sums paid out total amount needed. apparent that were the paid only was not large that a From other money where it was not vast majority sources was much evidently troubled themselv of the it was depositors learned that having everything feeling perfectly about the matter. had the least the most was all well satisfied One Italian worried money in the right. bank Those in ing her the premises woman at the were hands had a small bank on panion who which she roll leavAs the stood showed to of bills he latter a com. it. at outside. of immediately glanced waiting scorn the With a solicited the the roll into her woman rushed look of loan thing in pocket Italian, bitterly the money ineffable gone, who of the was same quickly which, after the exclaiming some- back she sorry the race, interpreted pair had it as the bank woman was who stood by, by another no and now she was all right took it said At all to keep it. would have there after out of of as at 3 the o'clock Connecticut bank end of all, trouble 200. shower. their all told, had Mr. Morse May was morning as quiet signified said that about after a and the OR mately books. The their names were intention of seem $80,000 Proxi scare amount to deposits will placed The National did not about approxi number yesterday of Savings notices bank. to effect The the weeks at Zunder said it was but filed twelve. at this total to of the loan the bank for was one of and bank Cashier told and tleman cam3 several the quietest $3,000 was if use that his from $3,000 the bank. bank who has One gen. days in paid a $1,000 desired. A lady already came for the Mr. bank Ives might advance of instalime on yesterday to want it. time, her and mortgage Various of thinking the were small pressing the depositors bank sums. were whose accommodated cases ment, Altogether though with on nothing there it the yesterday bank. The like clerks when there was no excitequestions in answering had a busy were runs the business, asked of them the day of had counted and no and in numerous tory payments on the doubt to transacting None of with the money to make some who have the New delay obligaasked the Haven is trying. drawals legal still well since 1873 notice Savings banks recall there are remembered The 1873 regarding with and of vividly the plenty of old in New Haven, panic is 80mg give can '37. Perhaps panfes of 57, citizens who and was that 80 far how than much the more people some who recall the some that said New be. It the is said present has serious an affair allustrations of latter months Haven was that hardly panned out to the in the 1837 running for a factory in ban] mmunity is panic. The weeks and a step wise and that and taken have done a wisdelifiedly verdiet depositors and which was proper the said Treasurer Morse their money best for thing the less worst of the yesterday of that the in Connecticut new scare his bank not reason conditions ditions was over. opinion the be why withdraw the should arise and that unpaid day Morse, is interest in about "notice two rule" should he saw saw no more "and seldom day with weeks "To we promptly esterday has us,' interest been said Mr and will or amount that do 80 again increased our is we can soon, reserve ago. much larger now and 80 Then than it pay was each deposit. the and we are again deposits a day or two therefore of good in in securities, 80 also disposing are coming in two meet think our about position to I some of banks discount The weeks. all we obligations will be of deal way. great help us, great money did have not need kindly their feeling have toward shown a will and I say deal of in any but We than money to in pay off our want no better We ceumulating us Ever our vaults debts. We investment inced convinced moment I drawing interest don't want Wise both one-and depositor that the only yesterday's became more firmly from When and fair thing to meve was every asked if the borrower. do for sight Mr. demand Morse for money banks will "Of discretion. course we said: shall to depositors on refuse this trouble, demand We for might have have to exercise our our and yet it deposits gone through should depositors enforce and was our for the without any to keep we do Wedo not the four borrowers interest any want months that of We do depositor who back the tors draw not really money of need it, out money want to let needs it, but in are doing and when when they deposi shall mands use our the bank we harm know that have no small for money discretion, and 80 in doing. they We We really in need deposits, and persons who case of dethem waiting of money, whom we only know have the probability that We do not think shall not are their depositors shall have there is keep are money paying who waiting for have to asked any keep 80. money hen now due all and demands four for months. for money have these shall interest gin to pay ceased we demands for continue to do percentage of those who want shall interest way gradually their their gradually be who has only meet all deposits and money have been the demands in this than should two think been that demanding small their depositors yesterday hundred the deposits deposits. would that people who of less their notice average they wanted gave less SAVINGS BANKS than $300 money DANBURY, DO So each. the Union Aug. 1-The IN DANBURY.