North Penn Bank - Philadelphia, PA

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: August 16, 1916
Location: Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model: gpt-5-mini
Short Digest: bfd6c950

Response Measures

None

Description

Two distinct episodes appear in the articles: a 1916 depositor run triggered by a false rumor, and a 1919 suspension when checks were returned and examiners arrived. The 1919 event appears to be a suspension tied to unwise loans/large withdrawals (bank-specific adverse information). There is no evidence in the provided texts that the 1919 suspension led to a reopening, so classification is suspension_closure, though the 1919 article indicates uncertainty at the time about permanence.

Events (2)

1. August 16, 1916 Run

Cause: Rumor Or Misinformation
Cause Details: Rumor circulated that a director had gone West with the bank's money; director actually went West on personal mining business and bank officials denied the charge and offered a reward.
Random Run: Yes
Random Run Snippet: Rumor that a director had gone West with the bank's money; denied by officials.
Measures: Offered $1,000 reward for conviction of person who started the rumor; paid depositors promptly (later reports note payments and receipt of reserve funds).
Newspaper Excerpt: Small depositors in the savings department of the North Penn Bank started a run on the bank when it was rumored that one of the directors had gone West with the bank's money.
Source: newspapers

2. July 17, 1919 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank suspended after checks were returned; a leading banker cited unwise loans and the drawing of several large accounts as causes of the suspension.
Newspaper Excerpt: It was stated at the Federal Reserve Bank that the checks of the North Penn Bank were returned yesterday. Deputy commissioners were in the bank yesterday, and in the afternoon a meeting of the directors was held.
Source: newspapers

Newspaper Articles (3)

1. August 17, 1916 The Washington Herald Washington, DC

Article from The Washington Herald, August 17, 1916

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Article Text

START RUN ON BANK. Philadelphia Depositors Besiege Savings Institution for Funds. Philadelphia, Pa., Aug. 16.-Small depositors in the savings department of the North Penn Bank started a run on the bank when it was rumored that one of the directors had gone West with the bank's money. According to an official of the institution, one of the directors did go West but it was to look after his personal mining interests. A sign was placed over the doorway of the bank offering $1,000 reward for the conviction of the person who started the rumor.

2. August 17, 1916 Evening Public Ledger Philadelphia, PA

Article from Evening Public Ledger, August 17, 1916

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Article Text

NORTH PENN BANK RUN ABATES Only 200 Patrons Withdraw Money, and Many Make New Deposits All is orderly and quiet in and around the North Penn Bank at Twenty-ninth and Dauphin streets today. Although Acting Captain Hearn had a detail of police on duty, there was no repetition of yesterday's run on the bank. When the bank opened for business today there were not more than 75 persons in line, the number gradually increasing to 200 during the forenoon. Ten were allowed in at a time. All depositors were paid promptly. Joseph Schlenz, vice president of the bank, said today that conditions at the institution were normal and not more than $100,000 had been withdrawn since Monday, including the run of yesterday. Mr. Schlenz said $400,000 had been received from reserve banks for the run of depositors today, and many who withdrew their deposits yesterday had returned to deposit them today. Owing to the large crowd of yesterday, be said, many depositors were unable to make their usual dèposits. No clue as yet has been received to the person who circulated the rumor which started the run on the bank.

3. July 18, 1919 Evening Public Ledger Philadelphia, PA

Article from Evening Public Ledger, July 18, 1919

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Article Text

whose place of business is located at Thirty-first and Diamond streets. He could not be found by reporters and it is understood that he is working over the books with the bank examiners. Directors in Conference It was stated at the Federal Reserve Bank that the checks of the North Penn Bank were returned yesterday. Deputy commissioners were in the bank yester day. and in the afternoon a meeting of the directors was held. The directors and officials were in conference this morning Wehther the bank has failed or is only temporarily embarrassed cannot be ascertained. No official statement would be made by Banking Commissioner Fisher. at Harrisburg He stated that his deputy was in Philadelphia and that he had not as yet received a report from him. Asked whether. from the present out look. depositors in the bank stood to lose any of their savings. Mr. Fisher said that he could not tell at the pres. ent time. and probably would have little information on that subject for two or three days. One of the leading bankers in the city, who is familar with the institution. said that he believed unwise loans coupled wi the drawing of several large accounts was the cause of the suspension of business This is the second time the North Penn Bank has been in difficulty The first was in August. 1916. when the depositors made a run on the bank after a rumor had spread that the doors would be closed. The bank. however, met all obligations and many persons increased deposits. Officers of the bank offered $1000 reward for information regarding the persons who started the rumors. Last Bank Statement Its latest statement. as of June 2. 1919. showed total resources of $2. 695.282 capital paid in. $150,000 : surplus, $50,000: undivided profits. $42.099: demand deposits. $853.727 savings deposits. $1,195,345. and time certificates of deposits. $16,250. Dividends of 6 per cent per annum have been paid for some time. and in March. 1919. the stock sold at $125. The par is $100. A recent list of officers and directors is as follows: President. Louis H. Mi chel: vice president. William Spratt: vice president. John J. Grelis, and cash ier. Ralph T. Moyer. Directors: Christian Pfeiffer. William Spratt. S. J. Rieben. Louis H. Michel. William T. Shaffer. William T. Gabell. John J. Grelis, /Jacob Schwartz. William Sachsenmaier, Jr., and E. E. Hiestand. Mr. Skilton said that he had resigned as director last December. Mr. Spratt also is reported to have resigned at that time.