17466. Mechanics Savings Bank (Fostoria, OH)

Bank Information

Episode Type: Run Only
Bank Type: savings bank
Start Date: May 27, 1893
Location: Fostoria, Ohio (41.157, -83.417)

Metadata

Model: gpt-5-mini
Short Digest: 05f2ebdf

Response Measures

Accommodated withdrawals, Public signal of financial health

Description

Multiple articles (dated May 27–28, 1893) report a run on the Mechanics Savings Bank in Fostoria triggered by the high‑profile failure/assignment of Charles Foster and the closing/attachments at Foster & Co. The bank met demands and continued operations (expected to reopen/operate as a general banking company), so this is classified as run_only. OCR variants in articles include Mechanic's Savings bank and Mechanics' Savings bank; corrected to Mechanics Savings Bank. Bank type inferred as state (savings bank, no 'National' or 'Trust' in name).

Events (1)

1. May 27, 1893 Run

Cause: Local Banks
Cause Details: News of Charles Foster's assignment/failure and closures/attachments at Foster & Co. prompted frightened depositors to withdraw from Mechanics Savings Bank.
Measures: Bank kept $80,000 in currency on the cashier's desk and promptly paid depositors; reported receiving more deposits than withdrawals afterward and expected to open as a general banking company.
Newspaper Excerpt: A run was made on the Mechanics Savings Bank this morning, but with $80,000 piled upon the cashier's desk, the demands of all depositors were promptly met.
Source: newspapers

Newspaper Articles (10)

1. May 27, 1893 Daily Kennebec Journal Augusta, ME

Article from Daily Kennebec Journal, May 27, 1893

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DETAILS OF THE DISASTER. Owes $600.000-Assets the Same-Other Concerns Fail-Hundreds Affected. FOSTORIA, Ohio, May -Ex-Secretary Foster, who has assigned, states that his liabilities are $600,000, and assets about the same. The bank of Foster & Co. and the wholesale grocery house of Davis & Foster were closed this morning by attachments. The assignment of ex-Secretary Foster was the signal for the assignment of a number of concerns, is which he was interested. The Brass and Iron Works was one of the concerns, and the liabilities and assets of this company are included with the personal statement of the ex-secretary. The Mambourge. Calcined and Crocker Window Glass Companies, three concerns that have been backed by Mr. Foster, will assign. Half a dozen prominent industries will go to the wall, and hundreds of persons be thrown out of emyloyment. Business men,depositors in Foster & Compan's bank, will be losers, but it is believed that none will suffer to an extent that will cause them to assign. A run was made on the Mechanics Savings Bank this morning, but with 880,000 piled npon the cashier's desk, the demands of all depositors were promptly met. It is generally conceded that Mr. Foster's unstinted generosity and phenomenal public spirit have been the indirect causes of his financial downfall. The assignment of Davis & Foster, wholesale grocers, will probably be the cause of a number of failures of concerns throughout the country. It is said the firm has $120,000 unpaid accounts and notes due it. The deposits of the bank at the time of its last statement were about 8175,000. Mr. Foster has issued a statement to the public. He says words cannot express the deep distress and humiliation he feels. He knows the failure has injured many people. He hopes none will be ruined. He refers to the futile efforts to avert financial disaster. and says he can see that in settling affairs through the courts, compelling the HSsets to be reduced to cash, large sacrifices must be made. He cannot give encouragement that his debts will be paid in full. Davis & Foster. he states, have a surplus of $80,000 and ought to pay in full. He believes the business concerns of the city are in a sound condition. and the two banks especially strong. He has given mortgages to two women who relied upon him to invest all their money. about $4000. He attributes his downfall to neglect of business. occasioned by devotion to politics and an over-zealous desire to build up Fosteria. He states he shall make it the one purpose of his life to repair his fortunes and pay his debts.

2. May 27, 1893 The Madison Daily Leader Madison, SD

Article from The Madison Daily Leader, May 27, 1893

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FOSTER FAILED. the Ex-Secretary of the Treasury Forced to Make an Assignment For His Creditors. His Suspension Carries With It Many Other Large Ohio Enterprises And Will Throw a Great Number Out of Employment-Too Public Spirited. FOSTORIA, O., May 27.-Ex-Secretary of the Treasury Charles W. Foster has startled the business world by making an assignment of his vast business interests for the benefit of his creditors. His assignee is J. B. Gormlee, a prominent banker of Bucyrus, and a warm friend of Mr. Foster. The liabilities are given out by Mr. Foster as being $600,000, and the assets about the same. He made the assignment during the were at night, and Mr. the Scott, papers his attorney. filed Tiffin by At an early hour the bank of Foster & Co. was closed on an attachment for $3,200 in favor of the Isaac Harter Milling company, and at the same time the wholesale grocery house of Davis & Foster was closed by an attachment for $1,200, in favor of O. T. Brown. The presence of the sheriff was the first inkling many people had that there was something wrong, and it soon leaked out that an assignment had been made. The news spread rapidly. and soon the streets were filled with people eager to learn the extent of the calamity that had befallen the city. Other Concerns Assign. The assignment of ex-Secretary Foster was the signal for the assignment of a number of concerns in which he was interested. The Brass and Iron works was one of the concerns to assign. Besides Mr. Foster, Mr. Portz was one of the owners of this concern. The liabilities and assets of this company are included with the personal statement of the secretary. The Mambourg, Calcined and Crocker Window Glass companies, three concerns that have been backed by Mr. Foster, will assign. The extent of the failure is so great that its significance can searcely be realized. A half dozen of the prominent industries will go to the wall and hundreds of people be thrown out of employment, The loss to business men who were depositors in Foster & Co.'s bank is one of the deplorable features of the crash, but it is confidently believed that none of them will suffer to an extent that will cause them to assign. A run was made on the Mechanic Savings bank as soon as its doors were opened, but with $8v,000 in currency piled upon the cashier's desk the demands of all frightened depositors were promptly met and none turned away. The loss to Fostoria is a great one and one that will require considerable time to recover from, but great as it is, the regret on its account in no way lessens the regret on Mr. Foster's account. Was Too Public Spirited. It is generally conceded that his unstinted generosity and phenomenal pub lic spirit have been the indirect causes of his financial downfall. as he was ever ready to lend a helping hand to the poor and worthy. The assignment of Davis & Foster, the wholesale grocers, will probably be the direct cause of the failure of a number of grocery concerns throughout the country. It is believed that the firm has $125,000 unpaid accounts and notes

3. May 27, 1893 Evening Star Washington, DC

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MR. FOSTER'S FINANCIAL AFFAIRS. Their Condition Much Worse Than Was Thought at First. FOSTORIA, OHIO, May 27.-J. B. Gormley, the assignee of ex-Secretary Foster, states that further investigation shows affairs to be in even worse shape than had been at first thought, and that the liabilities would reach 8800,000 and possibly $1,000,000. with assets much less. CLEVELAND, OHIO, May 27.-In response to a telegram sent him by an afternoon paper, exSecretary Foster answered as follows: "Thanks for your offer of space. My present mental distress precludes acceptance of your kind offer. "My failure simply illustrates the great folly of permitting one's self to be in debt beyond the reach of reasonably quick assets for relief when the hour of difficult borrowing comes. When people are in such condition and the stability of ezisting finaneial conditions is shaken, the principal reason is inability to borrow. suspension and failure. "Business is largely done with borrowed money. Confidence in the maintenance of sound financial conditions is essential to legitimate lending. That public confidence has for some time been sheken in the abilitv or capacity of the government to maintain gold payment is evident. The natural impulse of banks in such times is to strengthen themselves against some possible and unusual draft. Then comes inability to borrow, decline in prices, suspension and bankruptcy follow. "The country is possessed of enormous resources. which are at the command of the government. and it should say and act in terms and ways that will satisfy the country without ambiguity or uncertainty that gold payments will be maintained. CHARLES FOSTER." (Signed) FINDLAY. OHIO, May 27.-The People's Bank of North Baltimore, in which ex-Secretary Foster held $10,000 stock. stood a heavy run vesterday and it was feared would be comcelled to suspend. The bank opened for business as nsual this morning, however, and its directors announce their ability to pull through the financial storm safely. CLEVELAND. May 27.-A special to the Plain Dealer from Fostoria, Ohio, says: The situation here today so far as the Foster failare is concerned presents but little change from last evening. There is a general feeling of uneasiness in all branches of trade. but very little excitement is noticeable in the streets or elsewhere. Gov. Foster said this morning that he had no new statements to make. but would wait now for Assignee Germley to make his report. The banks have so far. with the exception of Foster & Company's, experienced no trouble. and the Mechanics' Savings Bank, upon which something of a run was made yesterday, report that they are receiving more deposits today than they have paid out and on Monday they expect to open up as a general banking company. Money is very tight here. however, and the greatest trouble is apprehended from the fact that loans are very difficult to obtain and business men who, by the means of a little assistance, might be able to pull through, may be embarrassed thereby.

4. May 28, 1893 The Helena Independent Helena, MT

Article from The Helena Independent, May 28, 1893

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Base Ball. LOUISVILLE, May 27.-No game; rain. NEW York, May 27.-Neither team had a decided advantage. New York 9, Philadelphia 5. PITTSBURG. May 27.-Mullane pitched A masterly game to-day. Pittsburg 1, Cincinnati 4. BALTIMORE, May 27.-The bridegrooms were defented again to-day. Baltimore 15, Brooklyn 9. BOSTON. May 27.-It took eleven innings to finish the game to-day. Boston 7, Washington 7. CLEVELAND, May 27.-The Browns played good ball with Breitenstein in the box. Cleveland 2. St. Louis 3. THE FOSTER FAILURE. Much Worse Than It Was Thought to Be -His Statement. FOSTORIA, Ohio, May 27.-The situation to-day, so far as the Foster failure is concerned, shows little change. There is a general feeling of uneasiness in all branches of trade. Gov. Foster said this morning that he had no further statement to make. The Mechanics' Savings bank, on which a run WAS started yester day, reports more deposits than withdrawals this morning. and on Monday it expects to open as a general banking company. Money is very tight, which may force to the wall firms which other wise might pull through. The diversified nature of Gov. Foster's failure makes the outlook exceedingly dubious and places the resuits far behind the range of prediction. The window glass companies and brass and iron works closed down to-night and sevoral hundred mechanics are thrown out of employment, he deposits in Foster bank are about $800,000. The governor boars up well under the calamity. and succeeded in sleeping six hours last night for the first time in weeks. He has been deluged with telegrams and letters of sympathy from prominent people in all parts of the country. Speaking of the failure to-day Foster said: "My failure simply illustrates the great folly of permitting oneself to be in debt beyond the reach of reasonably quick assets for relief when the hour of difficult borrrowing comes. Business is largely done with borrowed money and confidence in the maintenance of sound financial conditions is essential to legitimate lending. That that confidence for some time has been shaken in the ability or capacity of the government to maintain gold payment is evident. The country is possessed of enormous resources which are at the command of the government, and it should say and act in terms and ways that will antisfy the country without ambiguity or uncertainty that gold payments can be maintained.' TOLEDO, May 28.-The People's bank, of North Baltimore, closed its doors this morning. The closing was precipitated by the failure of Ex-Secretary Foste. who is a heavy stockholder. This bank holds many thousands of dollars of deposite of coal operators and producers. A run was started on the only other bank in North Baltimore, but it promptly met all demands. CHICAGO. May 27.-A special from Fostoria, Ohio, says: Assignee Gormley says Foster's affairs are in worse shape than supposed. His liabilities are from eight hundred thousand to a million dollars and the assets much less.

5. May 28, 1893 The Seattle Post-Intelligencer Seattle, WA

Article from The Seattle Post-Intelligencer, May 28, 1893

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THE FOSTORIA FAILURE. Ex-Secretary Foster's Liabilities Nearly $1,000,000. FOSTORIA, O., May 27.-The situation here today, as far as the Foster failure is concerned, shows but little change. A general feeling of uneasiness prevails in all the branches of trade, Gov. Foster said this morning that he had no further statement to make. The Mechanic's Savings bank. on which a run was started yesterday, reports more deposits than withdrawals this morning, and on Monday expects to open as a general banking company. Money is tight, and this may force to the wall firms which otherwise might pull through. The diversified na. ture of Gov. Foster's failure makes the outlook exceedingly dubious and places the results far beyond the range of prediction. The three window glass companies and the brass and iron works will close down tonight and several hundred mechanics will be thrown out of employment. The deposits in Foster's bank are about $300,000. The ex-governor bears up well under the calamity, succeeding in sleeping six hours last night for the first time in weeks. He has been deluged with telegrams and letters of sympathy from prominent people from all parts of the country. CUEVELAND, May 27.-In the course of a telegram in response to an offer of space for a statement made by an afternoon paper, ex-Gov. Foster said: My failure simply illustrates the great folly of permitting one's self to be in debt beyond the reach of reasonably quick assets for relief when the hour of difficult borrowing comes. Business is largely done with borrowed money. and confideuce in the maintenance of sound financial conditions is essential to legitimate lendlug. That confidence for some time has been shaken in the ability or capacity of the government to maintain gold payments is evident. The country possesses enormous resources, which are at the command of the government, and it should say and act in terms and ways that will satisfy the country without ambiguity or uncertainty that gold payments will be maintained. CHICAGO, May 27.-A special from Fostoria, O., says that Assignee Gormley states that Foster's affairs are in worse shape than it was supposed. His liabilities are $800,000 to $1,000,000 and the assets much less. TOLEDO, O., May 27.-The People's bank of North Baltimore closed its doors this morning. The announcement has been made that the cashier has gone to raise money and that the bank would reopen. The closing was precipitated by the failure of ex-Secretary Foster: who is a heavy stockholder. This bank holds many thousands of dollars of deposits for coal operators and producers. A run has been started on the only other bank in North Baltimore, but it is promptly meeting all demands.

6. May 28, 1893 The Herald Los Angeles, CA

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GOVERNOR FOSTER'S FAILURE It Is Worse Than at First Reported. Financial Institutions of Fostoria in 5 a Shaky Condition. / ) The Ex-Secretary Moralizes on the Folly of Going in Debt Beyond One's Assets-Another Bank Dragged Down. By the Associated Press.] FOSTORIA, O., May 27.-The situation here today, 80 far as the Foster failure is concerned, showe little change. There is a general feeling of uneasiness in all branches of trade. Governor Foster said this morning he had no further statement to make. The Mechanics' savings bank, on which a run was started yesterday, reports more deposits than withdrawals this morning, and on Monday expects to open as a general banking company. Money is very tight, which may force to the wall firms which otherwise might pull through. The diversified nature of Governor Foster's failure makes the outlook exceedingly dubious and places the results far beyond the range of prediction. Three window glass companies and iron works will close down tonight and several hundred mechanics will be thrown out of employment. The deposits in the Foster bank are about $300,000. The governor bears up well under the calamity. He succeeded in sleeping six hours last night, for the first time in weeks. He has been deluged with telegrame and letters of sympathy from prominent people from all party of the country. FOSTER MORALIZES. CLEVELAND, O., May 27.-In the course of a telegram in response to an offer of space for a statement made by an afternoon paper Governor Foster said: "My failure simply illustrates the great folly of permitting one's self to be in debt beyond the reach of reasonably quick assets for relief when the hour of difficult borrowing comes. Businessis largely done with borrowed money. Confidence in the maintenance of sound financial conditions is essential to legitimate lending. That confidence for some time has been shaken in the ability or eapacity of the government to maintain payments, is evident. The country possesses enormous resources which are at the command of the government, and it should say and act in terms and ways that will satisfy the country, without ambiguity or uncertainty that gold payments will be maintained." DRAGGED DOWN. TOLEDO, O., May 27.-The People's bank of North Baltimore closed doors this morning. The announcement was made that the cashier had gone to raise money, and that the bank would reopen. The closing was precipitated by the failure of exSecretary Foster, who is a heavy stockholder. This bank holds many thousands of dollars of deposite of coal imstarted on the only other bank in North Baltimore, but it promptly met all demands. WORSE THAN SUPPOSSED. CHICAGO, May 27.-A special from Fostoria, O., says: Assignee Gormley says Foster's affairs are in worse shape than supposed. His liabilities are from $800,000 to $1,000,000 and his assets are

7. May 28, 1893 The Indianapolis Journal Indianapolis, IN

Article from The Indianapolis Journal, May 28, 1893

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MAY REACH ONE MILLION. Ex-Secretary Foster's Liabilities Probably Greater than First Stated. FOSTORIA, O.. May 27.-J. B. Gormley, the assignee of ex-Secretary Charles Foster. stated to-day that further investigatione show affairs to be in even worse shape than had been at first thought. and that the liabilities would reach $800,000, and possibly $1,000,000, with the assets much less. The announcement was made this morning that the North Baltimore (O.) Banking Company. of which Governor Foster is a director. closed its doors. The banks here have 80 far. with the exception of Foster & Co.'s. experienced no trouble, and the Mechanics' Savings Bank. upon which something of a run was made yesterday. reports that it received more deposits to-day than it paid out. Money is very tight here, however, and the greatest trouble is apprehended from the fact that loans are very difficult to obtain. The diversified nature of Governor Foster's failare makes the outlook exceedingly dubious and places the result far beyond the range of prediction. Thethree window glass companies and the brass and iron works closed down to-night and several hundred mechanics are thrown out of employment. Nothing new can be learned of the condition of the Foster Bank, but its deposite will reach $809,000 divided among a large number of depositors. Another Statement from Mr. Foster. CLEVELAND, May 27.-In response to a telegram sent him by an afternoon paper, Governor Foster answered as follo ws: Thanks for your offer of space. My present mental distress precludes acceptance of your kind offer to any extent. My failure stimply illustrates the great folly of permitting one's self to be in debt beyond the reach of reasonably quick assets for relief when the hour of difficult borrowing comes. When people are in such condition, and the stability of existing financial conditions is shaken, the result is inability to borrow. suspension and failure. Business is largely done with borrowed money. Contidence in the insintenance of sound fluancial conditions is essential to legitimate lending. That public confidence has for some time been shaken in the ability or capacity in the gold payments is evident. The natural impulse of banks in such times is to strengthen themselves against some possible and unusual draft. Then comes inability to borrow; decline in prices. suspension and bankrupteies follow. The country is possessed of enormous resources which are at the command of the government. and it should say and act in terms and ways that will satisfy the country without ambiguity or uncertainty that gold payments will be maintained. CHARLES FOSTER.

8. May 28, 1893 The Salt Lake Herald Salt Lake City, UT

Article from The Salt Lake Herald, May 28, 1893

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A VERY DUBIOUS OUTLOOK. Results of the Foster Failure Will Be Far Reaching. FACTORIES CLOSE DOWN. Several Hundred Mechanics Are Thrown Out of Employment. Assiguee Gormley Says the Ex-Secretary's Liabilities Will Probably Reach $1,000,000 with Assets Very Much Less Than That Sum. FOSTORIA, 0., May 27.-The situation here today as far as the Foster failure is concerned shows little change. There is a general feeling of uneasiness in all the branches of trade and Governor Foster said this morning he had no further statement to make. The Mechanics' Savings bank, on which the run started yesterday reports more deposits than withdrawals this morning, and on Monday expects to open as a general banking company. Money is very tight, which may force to the wall, firms which might otherwise pull through. The diversified nature of Governor Foster's failure makes the outlook exceedingly dubious and places the results far beyond the range of prediction. Three window glass companies and the brass and iron works will close down tonight, and several hundred mechanics will be thrown out of employment. The deposits of. the Foster bank are about $300,000. The governor bears up well under the calamity. He succeeded in sleeping six hours last night, the first time in the week. He has been deluged with telegrams and letters of sympathy from prominent people from all parts of the country. Assignee Gormley says that Foster's affairs are in a worse shape than supposed. His liabilities are from $800,000 to $1,000,000; the assets are much less.

9. June 2, 1893 Butler Citizen Butler, PA

Article from Butler Citizen, June 2, 1893

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Ex-Secretary Foster Fails. Ex-Secretary of the Treasury Charles Foster made an assignment Thursday of his large and diversified business interests for the benefit of his creditors. This action is a shock that more than two score of business enterprises, in which Mr. Forter is interested, outside the concerns assigned, will severely feel. Mr. Foster places the liabilities at $600,000, and scarcely expects that the sale of his holdings will realize sufficient to pay dollar for dollar. The assignee is J. B. Gormlev, a banker of Bucyrus and a close friend of Mr. Foster. The assignment was made before daybreak that morning, when Attorney A. W. Scott, of Toledo, filed the deed of assignment in the Probate Court at Tiffin. Shortly after the deed was filed the bank of Foster & Co. was closed on an attachment for $3,200 in favor of the Isaac Harter Milling Co., and at the Hame time the wholesale grocery house of Davis & Foster was closed by an attachment for $1,200 in favor of O. T Brown. The presence of the sheriff was the first inkling many people had that there was something wrong, and it BOOD leaked out that an assignment had been made. The news spread rapidly, and soon the streets were filled with people eager to learn the extent of the calamity that had befallen the city. The assignment of Secretary Foster was the signal for the assignment of a number of concerns in which he was interested. The brass and iron works was one of the concerns to assign. Besides Mr. Foster, Mr. Portz was one of the concorn. The liabilities and assets of this company are included with the personal statement of the Secretary, as well as those of the three window glass concerns that have been backed by Mr. Foster. A half dozen prominent industries will go to the wall and hundreds of people be thrown out of employment. The loss to business men, who were depositors in Foster & Co.'s bank. is one of the deplorable features of the crash, but it is confidently believed that none of them will suffer to an extent that will cause them to assign. A run was made on the Mechanics' Savings Bank this morning, as soon as its doors were opened, bat with $80,000 in currency piled upon the cashier's desk, the demands of all frightened depositors were promptly met and none turned away. The loss to Fostoria is a great one, and one that will require considerable time to re cover from, but great as it is, the regret on this account in no way lessens the regret and sympathy expressed for the Sec. retary. It is generally conceded that his unstinted generosity and phenominal pub lic spirit have been the indirect causes of his financial downfall, as he was over ready to lend a helping hand to the poor and worthy.

10. June 2, 1893 Weekly Expositor Yale, MI

Article from Weekly Expositor, June 2, 1893

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EX-SECRETARY FOSTER FAILS. Hon. Charles Foster, of Ohio, Goes Down Under Heavy Financial Pressure. Ex-Secretary of the Treasury Charles Foster, and the Foster Banking Co., of Fostoria, O., have failed. The assignee IS J. B. Gormlee, a prominent banker of Bucyrus. The liabilities are given out by Mr. Foster as being $600,000, and the assets as about the same. Several other prominent firms in which Mr. Foster was interested were also forced to assign, among them: Davis & Foster, wholesale grocers; the Brass and Iron works; the Mambourg, the Calcined and Crocker window glass companies. A run was made on the Mechanics bank, but all claims were promptly met. Foster began business at Fostoria as a dry goods dealer. Soon after the war closed he helped to organize the Fostoria National bank. By shrewd speculation in real estate he became wealthy, and in 1879, when elected governor of Ohio for the first time, was said to be worth $1,000,000. He was elected governor for three terms and served four terms as representative in Congress. He was a firm friend of Garfield and Hayes. Of late years Mr. Foster has lost very heavily in copper mines, real estate and natural gas speculation and was almost to the bottom when appointed secretary of the treasury by President Harrison at the death of Secretary Windom.