Bank of Cleveland - Cleveland, OH

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: January 10, 1902
Location: Cleveland, Ohio (41.499, -81.695)

Metadata

Model: gpt-5-mini
Short Digest: 9d59e79a

Response Measures

None

Description

Article (The Times, 1902-01-12) states the trouble growing out of the failure of the bank at Cleveland on Friday. It reports a failure/closure of the Cleveland bank but gives no details on a prior run or specific cause. I classify as suspension_closure (suspension/closure with no run reported).

Events (1)

1. January 10, 1902 Suspension

Cause Details: Article merely reports a failure of the Cleveland bank; no specific cause (rumor, insolvency, correspondent distress, etc.) is given.
Newspaper Excerpt: the trouble growing out of the failure of the bank at Cleveland on Friday.
Source: newspapers

Newspaper Articles (1)

1. January 12, 1902 The Times Richmond, VA

Article from The Times, January 12, 1902

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Article Text

BANK STATEMENT WAS VERY GOOD But it Did Not Seem to Please the Stock Traders AND THE MARKET SOLD OFF Opening Prices Were Higher and the Market Was Strong Until the Appearance of the Bank Statement. The stock market opened strong yesterday, with prices generally above Friday's closing, and the market remained strong, with an upward tendency, until the bank statement appeared about 11:30 o'clock, when a selling movement set in and prices were generally lower at the close. What there was in the bank statement to cause stocks to sell off, it is hard to say. There was an increase in cash of $5,637,500, but deposits increased $778,500, making a net increase in the reserves of $5,442,875. Loans decreased $5,309,800. This was a good statement, but it seemed to be disappointing to some of the traders, and they sold their stocks. ANOTHER FAILURE. The announcement of the failure of the People's Bank, at Paynesville, Ohio, was made, the trouble growing out of the failure of the bank at Cleveland on Friday. Every failure of this sort adds to the feeling of uneasiness in the market, and some of the shrewdest traders in Richmond are selling out their holdings and will wait for further developments. The general business of the country, however, seems to be as good as ever, if one may judge from the trade reports of Dun and Bradstreet and from the earnings of the railroads. For the first week in January the Missouri Pacific showed an increase of $20,000; Norfolk and Western. $28,796; Chesapeake and Ohio, $27,873. The coal traffic of the Chesapeake and Ohio increased $24,345, and the passenger traffic $9,371, but there was a decrease of $4,885 in merchandise traffic and of $1,341 in coke traffic. The sensational rise of thirty points in American Tobacco is explained by the fact that the interests identified in the property are endeavoring to buy up all the non-assenting stock now outstanding. these stocks not having been turned in at the time of the formation of the Consolidated Tobacco Company. The large surplus in the United States Treasury, which is being rapidly increased by the excess of government receipts over expenditures, coupled with the fact that government bonds are very scarce, inclines us to believe there will be a considerable contraction in the medium of exchange. However, looking to a prevention of such a condition, a bill has been introduced in Congress to allow the government surplus to. be deposited in the banks that have capital of $500,000 and surplus of $500,000, at 2 per cent. per annum interest, these deposits to be a first lien upon the assets of the banks. Many New York banks are insisting that these deposits should be made in the banks in the "financial centers." stating that the country banks will not be able to meet the demands of the government when withdrawals of the money are desired. This is a reflection upon the country banks which they hardly supposed their larger friends would make. and the latter have evidently lost sight of the fact that at least one-third of their deposits are made by the country banks, and many are comparatively stronger than the banks in the "financial centers." For instance, the report of the Merchants National Bank, of this city. Is just out. showing deposits of $3,334,000: cash and due from other banks. $1,291,000: United States bonds. $961.000: miscellaneous stocks and bonds. $420.000-equal to over S0 per cent. of their deposits. to sav nothing of the premium on their government bonds and their time and demand loans of over $1,600,000. It is doubtful if any bank in the "financial centers" can make a better comparative showing. and there are many more country banks just as good.