19198. State Bank (Philadelphia, PA)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
September 22, 1873
Location
Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model
gpt-5-mini
Short Digest
beb789b3

Response Measures

Accommodated withdrawals

Description

Contemporary dispatches (Sept 22, 1873) report a run on the State Bank in Philadelphia during the wider panic of 1873; the bank resumed payment the same day so no suspension or closure occurred. Cause attributed to the nationwide financial panic and rumors about New York banks suspending.

Events (1)
1. September 22, 1873 Run
Cause
Macro News
Cause Details
Run driven by the national panic of September 1873 and circulating rumors (reports of New York bank suspensions) that created intense excitement and withdrawals in Philadelphia.
Measures
Resumed payment; officers (Cashier Depue) indicated they could meet demands.
Newspaper Excerpt
The State Bank resumed payment about an hour since. Depue, Cashier, thinks they will now be able to meet the demand.
Source
newspapers

Newspaper Articles (5)
1. September 23, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, September 23, 1873

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PHILADELPHIA. Special Dispatch to The Chicago Tribune. PHILADELPHIA, Sept. 22.-1t is currently rumored here that President Grant refunes to allow the reserve in the Treasury to be drawn upon in aid of the banks. THE EXCITEMENT IS INTENSE. Fears are entertained of a general suspension. A majority of the banks still continue payments. The run on the Fidelity is continued. On the receipt of a New York telegram, stating that the banks there had all suspended, one would have supposed that the bankers and brokers here had gone mad. A later telegram, just arrived, states that the formeria A FABRICATION. The alarm is but slightly allayed. The Stock Exchange remains closed until further notice from the President of the Board. The Union Bank refused to give any statement this morning. They have pasted on their closed doors the following: A Card.-Payments of all notes, drafts, etc., Intely held here can be made at the Girard National Bank. I am almost certain they will never rank in banking circles again. THE EXCITEMENT SUBSIDES. The excitement is somewhat allayed. The State Bank resumed payment about an hour since. Depue, Cashier, thinks they will now be able to meet the demand. The Board has opened at the Exchange. ANOTHER DISPATCH. Special Dispatch to The Chicago Tribune. PHILADELPHIA, Sept. 22.-This evening the excitement is considerably toned down. The city is full of strangers, called hither probably to take part in the dedications of the Masonic Temple. I might almost say there was no extra unusual excitement TOWARDS THE CLOBE OF BANKING HOURS, except among brokers. The people, whose confidence in some institutions has been shaken to such an extent as to cause A desire to draw their funds, have become satisfied that matters are not so bad as might bave been expected, and the run has almost ceased. About 11 o'clock a rumor of the suspension of all the banks in Now York gained some circulation, and for a time created quite a commotion. Of course, such action would have caused a very considerable change in the state of affairs. The National Banks, which have not felt any unusual pressure thus far, would have been affected, and would probably have been compelled to suspend also. Inquiries addressed to authentic sources in New York wore at once made, and the rumor was found to be untrue. THE FAILURES IN THIS CITY were not nearly 80 many as was anticipated. This fact ehowed how strong were our different financial firms, to be able to withstand NO well such a panio as has burst upon us. To the Fidelity Trust Company, which stood the brunt of the battle, our banks and other similar institutions owe a world of gratitudo; for, had it auccumbed, a general run and crash must have inevitably followed. As it is, many weak and flashy concerns have been cleaned out. This will make A far more healthy condition of affairs. Things remain in statu quo with THE UNION BANKING COMPANY. The doors are closed, and the future course of tho firm has not yet been determined upon. A meeting of the Directors was hold at 8 p. m. for the purpose of considering the state of affairs, but no statement was issued save the card sent in a previous dispatch. There 18 TROUBLE AMONG THE STATE BANKS. These institutions are obliged to make their colloctions through the National Banks. They have considorable country custom, and the genoral habit has been to deposit the checks received from the country banks, and then draw against them. As the State Bauke are not banks of issue, they must necessarily get their greenbacks through National Banks. In an interview with the officers of one of the State banks, this morning, they stated that on Saturday the National Banks refused to receive on deposit the checks of the country banks, and this refusal left the State banks without cash to

2. September 26, 1873 The True Northerner Paw Paw, MI
Article from The True Northerner, September 26, 1873

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Subsidence of the Panic in New York. NEW YORK, Sept. 22.-Wall street to-day presented a most extraordinary spectacle. It would be difficult, in the necessarily brief limits of a newspaper report, to give a correct idea of the excitement which prevailed. But the excitement to-day was. apparently, of an entirely different kind to the intense anxiety observable on Friday and on Saturday, which had its origin in a condition's universal panic. The streets, that is to say, Wall street and Broad street, were crowded. It was difficult for a pedestrian to thread his way through the different groups which OCcupied the streets and sidewalks alike. Confidence increased as the day advanced, and about 2 o'clock, there was a sudden shrinkage of the lines at paying tellers' windows at the banks and banking houses. The heavy business done all day had been dispatched with all possible speed, and as soon as it was known among the merchants that the purchase of bonds was uninterrupted, and that the rule adopted by the savings banks, of requiring thirty days' notice for the withdrawal of all large sums, was accepted without any disturbanceat the savinkags banks, the certification of money checks was not pressed, and it was evident at the banks that the depositors were beginning to believe that the storm had passed. No embarrassments are expected in any of the private banking firms who have sustained themselves through the late crisis. The suspension of the Union Trust Company is gener, ally attributed to the defaulting Secretary's neglect to call in the $3,000,000 loans ordered on Thursday. According to general report he completely lost his mental balance. and showed no disposition to submit the affairs of the company to inspection. His whereabouts are still unknown. It is currently reported that the company will be ready to resume business in a few days. It is a little remarkable that only one of the Trustees of the Union Company had any money on deposit in the institution, and that, with the exception of two or three, owned but very little stock. This may account for the bad management of the concern. Messrs. Jay Cooke & Co. are out with a card giving names of banks and banking houses who will pay drafts of their correspondents. All drafts against deposits made since the suspension will be paid on presentation. The National Trust Company, which suspended payment on Saturday, state that their liabilities do not exceed $4,000,000, and that the capital and assets of the company exceed their liabilities. The day closes with confidence greatly improved. with a general opinion that the crisis is entirely over. There seems to be no reason why all the banks should not now go along in a quiet and regular manner. A dispatch from Philadelphia announces a subsidence of the excitement in that city. The State Bank resumed payment. WASHINGTON, Sept. 22.-Judge Richardson said this evening that he believed the storm was over, and that quiet and good order would soon be restored in financial and business circles. The President decided to-day to send $20.000,000 from the National Treasury here to Assistant Treasurer Hillhouse in New York to-night, to enable that officer to buy all bonds that may be offered. A dispatch from Pittsburgh announces the failure of James T. Brady & Co., and the Se. curity Trust Company. It is stated that the Canada Southern Railway Company is seriously crippled by the panic.

3. October 2, 1873 Marshall County Republican Plymouth, IN
Article from Marshall County Republican, October 2, 1873

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the capital and assets of the company exceed their liabilities. The day closes with confidence greatly improved, with a general opinion that the crisis is entirely over. There seems to be no reason why all the banks should not now go along in a quiet and regular manner. A dispatch from Philadelphia announces a subsidence of the excitement in that city. The State Bank has resumed payment. WASHINGTON, Sept. Judge Richardson said this evening that he believed the storm was over, and that quiet and good order would soon be restored in financial and business circles. The President decided to-day to send $20,000,000 from the National Treasury here to Assistant Treasurer Hillhouse in New York to-night, to enable that officer to buy all bonds that may be offered. A dispatch from Pittsburgh announces the failure of James T. Brady & Co. and the Security Trust Company. It is stated that the Canada Southern Railway Company is seriously crippled by the panic.

4. October 3, 1873 The Andrew County Republican Savannah, MO
Article from The Andrew County Republican, October 3, 1873

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A BULL IN THE PANIC. YORK, Sept. 22 Wall street to-day It NEW most extraordinary spectacle. brief limsented be a difficult, in the necessarily correct would newspaper report. to give a But its of of a the excitement which prevailed. of idea excitement to-day was, apparently, anxiety an the different kind to the intense which entirely observable on Friday and on Saturday, panic. its origin in a condition of Wall universal street and had The streets, that is to say, Broad street, difficult were for crowded. a pedestrian to which thread ocen- his It through was the different sidewalks groups alike. pied way the streets increased and as the day advanced, shrinkand Confidence about of the lines clock at paying there houses. was tellers a sudden The windows heavy at the age banks and all banking day lind been dispatched it was business possible done speed. and as BOOH the purchase as with all the merchants that that the rule uninterrupted, and of bonds was the savings banks, of of all known among by withdrawal requiring sums. large the thirty adopted day's was notice accepted for the without certification any disturb- of ance at the savings not banks. pressed. and it was evi- bemoney dent at checks the banks was that the the depositors storm had were passed. ginning to believe that are expected in sustained any of the No private embarrasement banking the firms late who crisis. have The gen- easthemselves the Union Trust Company Secretary's pension to the loans erally attributed of through the $3,000,000 defaulting is report. orderneglect ed on Thursday. to call in According his mental to general balance. and he completely disposition lost to submit the whereabouts alfairs of showed the company no to inspection. It is currently His reported busiare that still the company unknown. will It be is ready a little to resume remarkable ness in a few days. of the trustees of the in the Union inthat only had one any money on deposit of two Company and that, with the little exception stock. This may stitution. or three, account owned for the but bad very management of the stateconcern. MOHARM. giving Jay the Cooke names & Co. drafts of are banks out of and with their banking a correhouses ment who will drafts Day against deposits made sincè spondents. the effepension All will be paid on presentation. The National Trust Saturday, Company, state which that their suspended payment on exceed 84,000,000, and that the liabilities capital do and not assets of the company exceed imtheir liabilities. closes with confidence greatly the crisis The day with a general opinion to that be no reason proved. There seems along in is entirely all the over. banks should not now go why and regular manner. a quiet A dispatch of from the excitement Philadelphia in that announces city. The State subsidence Bank has resumed Sept. 22. payment. Judge Richardson the storm WASHINGTON, that he believed good order would ness said was this over, soon evening and be restored that quiet in financial and and busicircles. President decided to-day Treasury to send here 820,- to 000,000 The from the National Hillhouse in New bonds York I f to-night. Assistant to Treasurer enable that officer to buy all the that may be offered. Pittsburgh announces and the SeA dispatch of James from T. Brady & Co. curity failure Trust Company. the Canada Southern Rail- the way , It is Company stated that is seriously crippled by WALL a 0 panic. A STREET RENEWAL FAILURE THE PANIC OF IN HENBY CLEWS & CO. Sept. 23. Wall street that was invaria- quiet NEW YORK, but it was thecalm crowde t this morning, storm. There were no confusion k ble precedes a noise, none of the days n the street, has served, no in the two or the three panic: but, v which accelerate and increase there was past, underneath to this appareut security, yet precipii lurking a great danger, which Men went may to bed last e tate universal confident disaster. that the worst was their over; security. they night confident in increase rose this norning foreign advices helped to failures, 8 The confidence, latest for they spoke an of easy no market. this though some distrust. and the London market t All rejoiced to American know that securities the undamaged, Paris and I and was Frankfort that, firmer. while bourses dealing were limited, on rates wereen- in better ₽ couraging. Stock quotations in they the had street been were on the cloee than the Exchange. t every of Saturday's instance operations officials were on in good spirits, Savings banks reported. t 1 and few runs Gold were Room the price lower for than gold was was exbe placed In the at 112, established, a rate much and settlements were in 8 pected easy. to brokers were much relieved his brokers. by Jay of t Gould's Stock settlement. of stock at through reasonable relieved everybody. rates, which 3 a while there which had 5.000 bankrupted sharen nobody, was and all this cheerful seemed outside to f the that appearance he impending. But, panic of was the and erisis over, encouraged there were people events to hope cc-

5. October 3, 1873 Perrysburg Journal Perrysburg, OH
Article from Perrysburg Journal, October 3, 1873

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Monday was carried through with a ritsh Government had purchased $10,000,000 in bonds, but this had not relieved the street. Everybody had bonds, and everybody wanted the cash for them. A run had been made on the First National Bank of Hoboken, but up to the hour of closing it had paid all demands. One reason for therun was the fact that it had $207,0 of its funds locked up in the Bank of the Commonwealth, which had suspended. The President had reached New York and had arranged for conference with the Secretary of the Treasury and leading New York financiers on the following day. The President had expressed full determination to use the power of the Treasury to the etc. tent of $16,000,000 balance and $44,000,000 reserves. Among others the following addid tional firms had failed Ketchum & Belknap E. C. Brodhead; Saxe & Rogers; Taussig & Fisher; P. M. Meyers; Miller & Walsh Lorenz Josephs; Fearing & Dillinger; Wil liams & Bostwick. The extent of the shrinkage in stock values for the week ending the 20th had been, on some of the leading lines, as follows: Harlem, 393 per cent.; Western Union, 35; Panama, 32: Wa bash, 23; Northwestern 19: Rock Island, 191/2 total shrinkage, according to the best authorities, of over $100,000,000. Telegrams from Philadelphia, of the 20th, state that since the preceding day a better feeling had prevailed in financial circles. It was thought that the crisis had been passed. The run upon the Fidelity Deposit had continued up to the time of closing the institution on the 20th, and every claim had been met. Dur ing the day over $950,000 had been paid out over the paying teller's desk. The Union Banking Company had suspended. The failure was said to have been bad one, and that it would not be able to settle up at over 50 cents on the dollar. San Francisco dispatches of the 20th say that, so far, the Pacific coast interests had not been compromised by the embarrassments in the East. No trouble was apprehenped to general business, except the increased degree of caution Incident to such state of things. A St. Louis dispatch of the 20th announced that the banking firm of Taussig, Gemp & Co. had suspended, in consequence of the suspension of Taussig, Fisher & Co. of New York, of which house it was branch. According to a dispatch from San Francisco of the 20th, fire had broken out in the Yellow Jacket Mine, In Nevada, In the 1,300 foot level. Six lives had been lost. At last accounts the fire had been got under control. A Memphis dispateh of the 20th says the ravages of the yellow fever in that city had been stayed somewhat. The disease had ap peared in New Orleans, and the dengue or break bone fever raged also as an epidemic, In Shreveport the fever exhibited no abate ment. New cases were not so numerous, but the ratio of deaths had been fully as great as at any time since the appearance of the scourge. A telegram from Burlington, Iowa, dated September 20, says that a destructive fire had broken out in the heart of the city at one o'clock in the morning of that day, which swept over two squares before it could be checked. The estimated loss reached $200,000. The Grand Lodge of the I. O. of O.F., in session at Baltimore, Md., adjourned on the 20th, having first voted to hold the next annual Communication at Atlanta, Ga. to News from Washington on the 21st was the effect that the Comptroller of the Currency had directed the collection paper of the First National Bank of Washington to be deposited with the National Metropolitan Bank for collection. The result of the conference held in New York on the 21st, between the President and Secretary of the Treasury and leading financiers, had been the issuance of an order directing the purchase of all five-twenties offered at private sale. It was thought that this measure would release $20,000,000 to $25,000,000 greenbacks, without touching the reserves. The bank statement for New York appeared on the evening of the 20th. From that it appeared that they had sustained loss of $1,579,700 specie and $2,409,300 legal tenders, contraction of $6,114,500 in loans and $9,277, 400 in deposits, during the week ending on that date. In anticipation of a run upon their institutions, the Inter-Occan of the 22d says that the Presidents of the fourteen savings banks of Chicago had conference on the 21st, and mutually agreed to hereafter insist upon requiring thirty days' notice for the with drawal of deposits, according to their respective rules. An Augusta, Ga., dispatch of the 22d says that on the 19th a terrific storm passed over Florida in the vicinity of Tallahassee. A large number of dwellings had been blown down, and the crops in all that section ruined. Three or four lives had been lost, several persons persons injured and large number of cattle killed. The town of St. Marks had been completely washed away, only two houses being left standing, and twenty families had been made homeless. The town of Newport had also been swept out of existence. A telegram from Philadelphia, of the the 22d, says that the financial horizon had better and clearer outlook, and that by the following day matters would resume their normal condition. The Citizens', the Iron, the State and the Keystone banks had temporarily suspended, but arrangements had been made to enable them to resume immediately. A New York dispatch of the 22d says that the financial atmosphere had become much clearer. The business of the day had developed remarkable strength in the banks, only two of them finding it necessary to call for loan certificates at the Clearing House. The Stock Exchange had not been opened, though set tlements were making on generally satisfacin tory terms. It was thought that business the stock line would speedily be resumed. A Washington dispatch of the 22d says that the President and Secretary of the Treasury had reached that city. The President felt confident that the right method had been hit upon to afford help from the Treasury, and the general conclusion reached by the informal interchange of views was, that if further help appeared to be needed it should be given 80 far as it was possible for the Treasury to act. It had been decided to send $20,000,000 to New York, to enable the Assistant Treasurer in that city to buy all the bonds that may be offered. In Chicago, on the 22d, the impression prevailed that the worst had been reached. Money was very tight, but no further failures had been announced. For the first time in the commercial history of that city the usual order of things was reversed in prices. There was scarcely any dealing in "options' in the Board of Trade. Cash wheat sold at $1.05, while seller October ran as high as $1.07 to $1.071/4. "Had it not been for the panie, remarked a leading dealer to reporter, "before the month closed the difference would have been greater the other way.' Ou the 22d, the President appointed Oscar