17712. Sandusky Savings Bank Company (Sandusky, OH)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: March 26, 1893
Location: Sandusky, Ohio (41.449, -82.708)

Metadata

Model: gpt-5-mini
Short Digest: d6978fd6

Response Measures

Accommodated withdrawals, Full suspension

Other: Bank entered voluntary assignment (assigned) rather than receivership; depositors to be paid in full.

Description

Contemporary articles (June 5–6, 1893) report a 'heavy, though groundless, run' about ten weeks earlier which drained liquid resources. The bank displayed an announcement on June 5, 1893 that it had 'been compelled to assign' (voluntary assignment), i.e., closed and will pay depositors; this indicates permanent closure following the earlier run. 'Groundless' indicates rumor-driven panic, but no discrete misinformation event (false telegram, etc.) is described.

Events (2)

1. March 26, 1893 Run

Cause: Rumor Or Misinformation
Cause Details: A heavy but 'groundless' run about ten weeks before June 5, 1893 drained the bank's available funds (paid out over $60,000 in two days).
Measures: Bank paid out upward of $60,000 within two days to meet withdrawals; withstood the run at the time.
Newspaper Excerpt: the heavy, though groundless, run that was made on the bank about ten weeks ago
Source: newspapers

2. June 5, 1893 Suspension

Cause: Rumor Or Misinformation
Cause Details: Assignment/closure on June 5, 1893 attributed directly to earlier groundless run which had depleted immediate available resources; heavy demands in closing days precipitated the crisis.
Newspaper Excerpt: Owing to inability to realize upon assets at this time, this bank has been compelled to assign. All depositors will be paid in full.
Source: newspapers

Newspaper Articles (7)

1. June 6, 1893 The Indianapolis Journal Indianapolis, IN

Article from The Indianapolis Journal, June 6, 1893

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Article Text

Sandusky Savings Bank Closed. SANDUSKY, O., June 5.-The Sandusky Savings Bank Company, supposed to be one of the soundest and safest institutions of the city, was not opened this morning, but displayed the following announcement: "Owing to inability to realize upon assets at this time, this bank has been compelled to assign. All depositors will be paid in full." The trouble is ascribable directly to the heavy, though groundless, run that was made on the bank about ten weeks ago and which it withstood successfully at that time, paying out upward of 860,000 within two days, when the run ceased as suddenly as it had begun. This drain upon its immediate available resources handicapped the bank seriously. The available assets of the bank will aggregate fully $300,000. while the liabilities at an outside estimate are only about $205.000, and it was for that reason that an assignment was decided upon rather than a receivership.

2. June 6, 1893 The Portland Daily Press Portland, ME

Article from The Portland Daily Press, June 6, 1893

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HANDICAPPED BY A RUN. How a Groundless Scare Ended in a Real Difficulty. SANDUSKY, June 5.-The doors of the Sandusky savings bank company which closed Saturday night upon what was generally supposed to be one of the soundest and safest institutions of the city, were not opened this morning but displayed the following announcement: "Owing to inability to realize upon assets at this time this bank has been compelled to assign. All depositors will be paid in full.' Intelligence of the assignment rapidly spread throughout the city and quickly a large crowd assembled in front of the banking house. The present trouble is ascribable directly to the heavy, though groundless run that was made on the bank about ten weeks ago and which it withstood successfully at that time, paying out upward of $60,000 within two days, when the run ceased as suddenly as it had begun. This drain upon its immediately available resources handicapped the bank seriously, although it has been doing as much or more business since the flurry than before such confidence did the "people, especially the business community, have in its stability. Some heavy demands upon it during the closing days of last week, however, precipitated the crisis this time.

3. June 6, 1893 Pawtucket Tribune Pawtucket, RI

Article from Pawtucket Tribune, June 6, 1893

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COMPELLED TO ASSIGN. Several Western Banks and Business Firms is Financial Difficulties. SANDUSKY, O., June 6.-The doors of the Sandusky Savings Bank company, which closed Saturday night upon what was generally supplosed to be one of the soundest and safest institutions of the city, were not opened yesterday. Great excitement resulted Liabilities are about $300,000; assests, $300,000. KANSAS CITY, June 6.-The Kansas Grain company, a big commission house with branches all over Kansas, has failed. CHICAGO, June 6.-E. A. Armstrong & Co., dealers in uniforms, made a voluntary assignment. Assets, $275,000; liabilities, $105,000. CHICAGO, June 6.-The property of A. Weisenbach, a clothing and shoe merchant, was seized by the sheriff. The liabilities are about 875,000; assets, $50,000. CHICAGO, June 6. -A run on the Prairie State Savings bank which began Saturday was resumed yesterday. MILWAUKEE, June 6.-A run is in progress on the South Side Savings bank. There is a slight run on the Second Ward bank, but the demand on the Commercial bank seems to have subsided. CHICAGO, June 3.-Mendoweroft Bros. & Co., private bankers doing a commercial paper business, closed their doors. The concern was one of the oldest in the city. Their assets and liabilities are not known. CHICAGO, June 6.-A run started on the Dime Savings bank yesterday afternoon. This institution has deposits aggregating $600,000. The greater part of the money is tied up in securities, but is perfectly safe. NEW YORK, June 6.-The Shoe and Leather National bank has given notice that it will not clear for the Canal Street bank after today. This will make it necessary for the Canal Street bank to go into liquidation. The deposits are about $450,000. WASHINGTON, June 6. -Comptroller Eckels was informed that the Merchants' National bank of Fort Worth, Tex., capital $250,000, failed. The bank was closed on an order of the directors, and Bank Examiner Stone was placed in charge.

4. June 6, 1893 New-York Tribune New York, NY

Article from New-York Tribune, June 6, 1893

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Article Text

AN OHIO SAVINGS BANK CLOSES ITS DOORS. Sandusky, Ohio, June 5.-The doors of the Sandusky Savings Bank Company. which closed Saturday night upon what was generally supposed to be one of the soundest and safest institutions of the city, were not opened this morning, but displayed the following announcement: "Owing to Inability to realize upon assets at this time this bank Tias been compelled to assign. All depositors will be paid in full." The present trouble is ascritable directly to the heavy, though groundless, run that was made on the bank about ten weeks ago, and which it withstood suecessfully at that time, paying out upward of $60, 000 within two days, when the run ceased as suddenly as It had begun. This drain upon its Immediately available resources bandicapped the bank seriously, although it has been doing as much, or more, business since the flurry, than before, such confidence did the people, especially the business community, have in its stability. Some heavy demands upon it during the closing days of last week, however, precipitated the crisis this time. The available assets of the bank will aggregate fully $300,000 while the liabilities at an outside estimate are only about $205,000, and It was for that reason that an assignment was decided upon rather than a receivership.

5. June 6, 1893 The Sun New York, NY

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OTHER FAILURES. 1 1 Troubles in Kansas City, Milwankee, and ( Other Parts of the Country. KANSAS CITY. June 5.-The Kansas Grain Company. which was said to be the greatest / buyer of grain from producers in the world. 1 has failed. H. M. Kirkpatrick. Secretary and ) : Treasurer of the company. notified the Secretary of the Board at 101/2 this morning that the company was unable to meet its contracts. 7 When the announcement of the suspension was made on the Board it caused great ex: citement. , The main offices of the company are in this city and at Hutchinson. Kan.. and the Presi3 dent of the concern. T.J. Templer. is in charge . of the Hutchinson offices. and the officers here decline to make any statement of the financial condition of the company until authorized to do so by Mr. Templer. It is presumed, however. that the assets and liabilities will each be large. The company has elevators in 106 towns and cities in Kansas. representing an investment of $150,000. All of these elevators contain more or less grain. The company was incorporated five years ago with a capital stock of $50,000. The cause of the failure. as announced by the officers here. is the tight money market. Mr. Kirkpatrick says the stringency in money prevented the company from realizing on its warehouse receipts, which were depended upon to meet maturing obligations. MILWAUKEE June 5.-A run is now in progress on the South Side Savings Banks. Some 200 or 300 people block the sidewalk in front of the bank. but everything is quiet and orderly. There is a slight run on the Second Ward Bank. but the demand on the Commercial Bank seems to have subsided. Affairs at other banks are about in their normal condition. The failure of F. T. Day on Saturday last seems to have increased the nervous fears of small depositors. Business men are not in the least alarmed at the situation. and predict that the flurry will end in a day or two unless it is aggravated by more failures. The failures of Frank A. Lappen and the Plankinton Bank will be investigated by the Grand Jury. The Grand Jury called to investigate the matter convened late this afternoon and Judge Wallber delivered his charge. He spoke about the failures and read sections of the statutes referring to the obtaining of credit by false statements and to the acceptance of deposits when bank officials know that the bank 18 not in a sound condition. The first section. the Court intimated. referred to the Lappen matter. and the other to the Plankinton Bank. The action of Judge Wallber has created a sensation. A despatch from Hutchinson. Kan., says the suspension was due to the inability of the comiany to extend its paper in Kansas City. President Templer of the company says the assets are fully sufficient to meet the liabilities. and that they will pay out dollar for dollar. The assets of the company are placed at $150,000. with liabilities as follows: To Hutchinson creditors. $20,000; to Hazard. of Kansas City, $25,000; to sellers of grain. $12.000: to American National Bank of Kansas City. $45,000. All the indebtedness is well secured. MADISON. Wis.. June 5.-There was a small run on the First National Bank to-day. but not enough to cause any great excitement. The bank's balance at the close of business on Saturday showed $259.000 on hand to meet demands. and the officers of the bank are not at all alarmed. PHILADELPHIA, June 5.-Washington ButchF er's Sons. provision dealers, to day filed an assignment. with George W. Lex as the assignee. No statement of assets or liabilities can be obtained. Tightness of the money o market is the announced cause of the embarI rassment. a SANDUSKY. O., June 5.-The doors of the Sandusky Savings Bank Company. which b closed on Saturday night upon what WAS genM erally supposed to be one of the soundest and h safest institutions of the city, were not opened this morning. but displayed the following anD nouncement: t Owing to inability to realize upon assets at M this time. this bank has been compelled to assign. All depositors will be paid in full. fl SPOKANE. Wash.. June 5.-The Bank of Spo11 kane Falls temporarily closed its doors this o morning. The suspension caused no excite5 ment. The bank is the oldest in the city, and has paid capital of $150,000 and a purplus of a $125,000. n The embarrassment is due to the tightness 1 of the money market. The bank has always been considered the strongest in Eastern fa Washington. A. M. Cannon. President of the bank. has many large interests in this city, and is reputed to be a millionaire several B times over. $

6. June 6, 1893 Evening Star Washington, DC

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COULDN'T STAND THE "RUN." Groundless Demand for Money Caused the Sandusky Savings Bank to Close. The doors of the Sandusky Savings Bank Company. which closed Saturday night upon what was generally supposed to be one of the soundest and safest institutions of the city, were not opened yesterday morning, but displayed the following announcement: "Owing to inability to realize on assets at this time this bank has been compelled to assign. All depositors will be paid in full." The present trouble is ascribed directly to the heavy, though groundless run that was made on the bank about ten weekk ago and which it withstood successfully at that time, paying out over $60,000 in two days, when the run stopped as suddenly as it came. Some heavy demands upon it during the closing days of last week, however, precipitated the crisis this time.

7. June 8, 1893 Echo De L'ouest Minneapolis, MN

Article from Echo De L'ouest, June 8, 1893

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FAILLITES DE BANQUES L "Exchange Bank" de Glad stone, Mich., a fait faillite. C'est une conséquence de la faillite d6 la "Plankinton BaLk" de Mi'waukee. MM, SAuger, Moody et Steel de Jolliet, Ill., ont fait faillite. La "Patt r's Bak" one des plus vieilles banques du comté de Paulding, Ohio, viont de fermer ses portes. Elle avait été établie en 1874 et faisait des affairea considérables. MM Ch-vraton, Martin et Cie banquiers avenue Ogden à Chra go viennent de déposer leur bilan Passif 100.000 dollare. Lq "Merchants National Bank," la plus vieille de Tacoma, Wash., a suspendu BEB paremente. Son capital était de $250,000. La Plankin'on Bai k" de Mil waukee, a fait failli'e. MM. Hermann, Schaffner et Cie banquiers de Chicago ont déposé leur bilan On dit que Schaffner B'est suicidé. La "Bank of Beresford," S. D vient de fermer ses portes. A sa tête se trouvait A. A. Amee. La "Sandusky Savings Bank Company" de S ndueky O. a suspendu 803 paiements. La "M rchants National Bank" de Fort Wo th Texas, à fermé ses portes. La "Canyon Bank" de Spokane à fait faillite. -MM. Madowaraft frères, banquiers de Chicago, ont déposé leur bilan. A Milwaukee la "South Side Savinga Bauk" et la "Second Ward Bank" sont sur le point de suivre l'exemple d - 8 banques BUB nommée3. Il en est de meme de la "Illinois Trust & Savings Bank of Chica go."