19288. Duquesne Savings Bank (Pittsburg, PA)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
savings bank
Start Date
November 11, 1873
Location
Pittsburg, Pennsylvania (40.441, -79.996)

Metadata

Model
gpt-5-mini
Short Digest
1a9ca2ef

Response Measures

Partial suspension

Other: Bank suspended payments and proposed to pay depositors in five 20% installments (installment plan).

Description

Multiple contemporaneous newspaper reports (Nov 11, 1873) state the Duquesne Savings Bank suspended after a steady drain of deposits and inability to realize mortgage/security assets. Papers report heavy withdrawals preceding the suspension and the directors proposing installment payments; no clear report of a full reopening is given in these articles, so final disposition is unresolved here.

Events (2)
1. November 11, 1873 Run
Cause
Bank Specific Adverse Info
Cause Details
Steady withdrawals by depositors driven by inability to realize on mortgage and similar securities (assets illiquid despite being described as good).
Measures
Bank officers announced intention to pay indebtedness in installments (proposed five installments of 20% each) and to prepare full statement for creditors.
Newspaper Excerpt
they were enduring a steady drain by depositors, and hence their suspension.
Source
newspapers
2. November 11, 1873 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension caused by inability to make collections on mortgages/notes falling due and heavy, continuous withdrawals; assets described as tied up in mortgages and temporarily unavailable for conversion to cash.
Newspaper Excerpt
The Du Quesne Savings Bank of this city ... suspended to-day.
Source
newspapers

Newspaper Articles (11)
1. November 12, 1873 New-York Tribune New York, NY
Article from New-York Tribune, November 12, 1873

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BUSINESS PROSPECTS. LOWELL MILLS RUNNING ON THREE-QUARTERS TIME. LOWELL, Nov. 11.-All the Lowell mills, with the exception of the Hamilton, and that of the Lawrence Manufacturing Company, are now running on three-quarters time, the Boott, Massachusetts, and Merrimack beginning vesterday. The number of working hours each day is reduced, and the operatives will not go in on Saturday afternoon. The Lowell I Carpet Mills are running part of the machinery at full time, and the probability is that the present arrangement can be kept up all Winter. There has been 110 combination entered into by the various companies, nor any plan agreed upon between any of them, but the officers of each act independently. The meetings of the treasurers which have been held recently have been merely for consultation, and the general opinions expressed have been in favor of the plan now adopted; the principal reasons being that the op. eratives would thus be enabled to earn enough to keep them from want and the demoralization which would result from a suspension in every or any department would be avoided. There is probably not the least doubt that there will be work sufficient to keep up the present arrangement through the Winter, and just as soon as the signs of increasing business will warrant it, work on the old basis will be resumed. TWO SAVINGS BANKS SUSPENDED. PITTSBURGH, Nov. 11.-The Du Quesne Savings Bank of this city and the Savings Deposit Bank of East Liberty suspended to-day. LATER.-The savings bank suspensions to-day have caused considerable excitement, and rumors have been current respecting the condition of other banks, but they could be traced to no trustworthy source. The officers of the suspended banks say they found it impossible to make collections on paper falling due, all of which is amply secured. They also state that they were enduring a steady drain by depositors, and hence their suspension. They feel certain that their creditors will lose nothing. BUSINESS NOTES. Gov. Shepherd says the payment of the amounts due to laborers under the Board of Public Works, involving the disbursement of a quarter of a million dollars, will begin at Washington to-day. The steamship Atlas, which sailed from Boston, yesterday. for Liverpool, had 230 steerage passengers, a large proportion of them mill operatives and artisans, who are returning to the Old World for lack of employment here. About 40 factory operatives came on from Fall River to embark iu the Atlas.1 A committee appointed at a mass meeting of workingmen had an interview with Mayor Stokley of Philadelpbta yesterday, for the purpose of ascertaining what could be done to provide employment for the thousands of persons out of work. The Mayor recommended that a petition be addressed to the City Council Boards, when a committee would be appointed to take some action. Much out-door work, he thought, could be provided.

2. November 12, 1873 Evening Star Washington, DC
Article from Evening Star, November 12, 1873

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Article Text

The Financial and Industrial Pres peet. THE SKY BRIGHTENING ALL AROUND. The skies continue to grow brighter. slowly but surely. The non-fulfilment or Saturday's prediction, that the Bank of England would further advance the rate of discount this week. together with authoritative assurances from Boston that the industrial depression in that quarter has been greatly exaggerated, is a good opening; and when to this is added a further material gain in legal tenders by the New York banks, and a less stringent feeling in the money market, there is room for the expectation that things from this time henceforward will be on the mend. NEW BANKING RULES. The governing committee of the New York clearing house association have submitted the following rules to govern the associated banks First, no bank shall pay, or procure to be paid. interest upon deposits; second, no check shall be certified until the full amount is first deposited; third, checks upon associated banks only received on deposit; fourth, checks upon places out of New York city received at rates of dis. count fixed by the clearing house committee: fifth, checks will be taken at depositor's risk, and collected through the clearing house: sixth. checks not good will be returned to the depositor on the day following. Banks not strictly observing these rules will be excluded from the clearing house association. The foregoing rules have been submitted, and will be discussed at their meeting this day week, and, if accepted. will go into effect in January, 1874. The Du Quesne savings bank of Pittsburg. and the savings deposit bank of East Liberty, suspended yesterday. THE DROP IN DRY GOODS PRICES. Following the example of Clafin & Co. in throwing their six millions worth of dry goods goods on the market, (commencing yesterday,) Peake, Opdyke & Co. also announce a similar disposition of their stock, at such cash prices as it may bring: 80, that before the end of the week, all sorts of dry goods will probably be down to low water mark. Other houses will have to follow. END OF A RAILROAD STRIKE. The late strikers on the East Tennessee, Virginia, and Georgia railroad, including the en gineers, machinists and blacksmiths. have withdrawn from their unions. The engineers, in a published card. acknowledge their error, and say they have determined to immediately withdraw from the organization known as the Brotherhood of Locomotive Engineers. The machinists and blacksmiths have also signed and pub. lished a card to the same effect, withdrawing from the machinists and blacksmiths' union. Trains are all running regularly and everything is perfectly quiet. EUROPEAN WORKMEN GOING HOME. The steamship Atlas, which sailed yesterday sengers, a from Boston large for proportion Liverpool, had of them 230 steerage mill opera- pastives and artizans, who are returning to the Old World for lack of employment. Some forty factory operatives came from Fall River to embark on the Atlas.

3. November 12, 1873 Eureka Daily Sentinel Eureka, NV
Article from Eureka Daily Sentinel, November 12, 1873

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Article Text

PENNSYLVANIA. PITTSBURG, Nov. 11. The Duquesne Savings Bank in this city, and the savings and depositing bank of East Liberty, suspended today.

4. November 12, 1873 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, November 12, 1873

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Article Text

PITTSBURGH. VITIZA Suspension of the Duquesne Saving Bank and Deposit Bank of East Liberty--Attempt to Rob a Bank at Blairsville. PITTSBURGH, Nov. 11.-The Duquesne Savings Bank of this city and the Savings Deposit Bank of East Liberty suspended today. An attempt was made to rob the First National Bank at Blairsville, Pa., on Saturday morning about 2 o'clock. The burglars were discovered by two ladies who were sleeping in a room above the bank, and the robbery prevented.

5. November 12, 1873 The Rock Island Daily Argus Rock Island, IL
Article from The Rock Island Daily Argus, November 12, 1873

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Article Text

PITTSBURG, Nov. 11.-The - Duquence Savings Bank in this city and the Savings Deposit Bank, East Liberty, suspended today.

6. November 12, 1873 The New York Herald New York, NY
Article from The New York Herald, November 12, 1873

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Article Text

SUSPENSIONS IN PITTSBURG. The Duquesne Savings Bank and East Liberty Savings and Deposit Bank Close Their Doors-The Depositors Sesured. PITTSBURG. Pa., Nov. 11, 1873. The Duquesne Savings Bank, John McMaster, President, on Fourth avenue, suspended this morning. The closing of its doors was rendered necessary from the fact that the institution dealt very heavily in mortgages and similar securities. Their securities, though perfectly good, could not be realized upon at a time convenient to the purposes of the bank, consequently suspension was determined on and carried into effect to-day. The cashier said this afternoon that the assets were fifty per cent in excess of the liabilities, and that the suspension was due to the gradual contraction, which had been drawing closer and tighter since the 17th of September. He says all they want is time to convert the securities into cash to pay the depositors. On the heels of the announcement of this suspension came that of the closing of the doors of the East Liberty Savings and Deposit Bank, and then there were rumors of the suspension of half-adozen other institutions of the same kind, which happily proved incorrect. The causes of the suspension of the East Liberty Savings Bank were the utter impossibility of collecting currency for notes and mortgages which had already fallen due, and the constant drain on their deposits. The bank has sustained no losses, unless the temporary lockup 01 some of its securities in Philadelphia be regarded a loss. An officer of the institution said to-day that the securities are all regarded as first class and are in excess of its liabilities $40,000; and beside this the stockholders, about thirty in number, are individually liable. So depositors can sustain no loss. What hastened this step on the part of the bank was the failure of Lloyd, Hamilton & Co.'s concerns in Westmoreland county and the suspension of Ira B. McVey & Co., of this city. A rumor was also on the streets today that the extensive firm of Carragie, Kloman & Co., manufacturers or steel springs, had suspended, but it is denied. The rumor arose from the fact that a few days ago the Cascade Iron Company and Escanaba Furnace, of Michigan, suspended, and will possibly go into bankruptcy. Mr. Kloman is a member of that concern, and as it is not an incorporated company stockholders are individually liable. Mr. Kloman is individually responsible for the debts of that concern, but he is the only member of the firm of Carragie, Kloman & Co., who is at all interested in it.

7. November 12, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, November 12, 1873

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PITTSBURCH. Special Dispatch to The Chicago Tribune, FAILURES AND BUMORS OF FAILURES. PITTSBURGH, Nov. 11.-This has been a day full of mumors of suspensions of prominent banks and merchante; but, 80 far as known, only two reports of fallarea are found to have any foundation in fact, and these were of banks which will undoubtedly again While it may be truthfully sald that rome others are spniowhat shaky, and that soveral loading iron frina are reported to have paper overdue, it can also be said that, while nearly all the leadIng firms share in the present embarransment, not because they are not amply responsible, but because the banks refuse to discount, and consequently the largo manufacturers are pushed. The difficulty is not to meet the obligations falling due, but to provure money from time to time to pay hands, It is well known that FITTSBURGH MERCHANTS enjoy unlimited credit abroad, and the forbo of circumatances has compolled some of them to nele for extensions, which have not failed to be granted. While such is the case, our leading merchants are much chagrined that, through some rejaunderstanding, the Associated Press 468 telegraphed over the entire country that 10,000 mem haye boon thrown out of employment by the shutting down of blast.furnaces, when in fact only 1,100 are employed altogether in that branch of industry, only 100 of whom are out of work, and that through their own fault, because they refused to accept a 10 per cent reduction of wages. SAVINGS BANK FAILURES. This morning the East Liberty Havings and Deposit Bank failed to open its doore. The reason they healight for their suspension is P failure of their creditors to meet their obligations, and espocially their Philidelphia correspondents, They are simply able to meet All Mabilities, The stockholders nold H meeting want. when Some decided action will be taken, and a full statement made. The Duquesue Savings Bank, on Fourth street, also stopped payment to day. This lan regular discount and Rephail, as well aa paying banit. it hold dopoalte Whilbh were drawable by check, without notice. While they carried on this business, they invested all their eurplus in first mortgages, which for the present are unavailable. This institution kept its doors open, and made n clear and concise statement to all depositorn, saying that a full and clear exhiLit of their resources and liabilities would La made in A few days, THIS MEASHN, M'VAY are busily engaged preparing their statement to be prosented to a mueting of their creditors on Friday. Mr.

8. November 13, 1873 Wilmington Daily Gazette Wilmington, DE
Article from Wilmington Daily Gazette, November 13, 1873

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FAILURES OF PITTSBURG BANKS.-The failure on Tuesday, of the Duquesne Savings Bank and the Deposit Bank of East Liberty, both at Pitta burg. caused quitean excitement as the Iron City. and considerable apprehension was felt of a run upon the banks there. The suspension of the Daquesne, ii is said, was brought about by the inability of the directors to malize upon the securities held, consequently rendering them unable to meet the demand of the depositors, which has been constart and unremitting since the setting in of the panic.

9. November 13, 1873 The Vinton Record McArthur, OH
Article from The Vinton Record, November 13, 1873

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THE Duquesne Savings Bank, of Pittsburg, and the Savings Deposit Bank, of East Liberty, suspended Nov. 11.

10. November 14, 1873 Evening Star Washington, DC
Article from Evening Star, November 14, 1873

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Money and Business THE PROSPECT OF HARD TIMES Some of the features in the condition of trade are encouraging. Stocks have advanced from five to eight per cent. since the close of last week. Exchange is firmer. Apprehensions of panic in London are well-night dissipated. Bat, says the New York Times, "while facts like these indicate a diminution in the intensity of the disturbance, and a tendency to recover in certain branches, the evidence continues to accumulate that the embarrassment of trade 18 slowly including new branches. and steadily increasing the number of people thrown out of work. While, therefore, the worst of what may be called the panic is over, the prospect for 'hard times' during the winter is, we think, more than ever established. AID FOR LABORING MEN. The board of assistant aldermen of New York city yesterday passed a resolution requesting the board of estimate and appropriation to appropriate a sufficient sum to continue public improvements begun but suspended for want of funds. Five hundred laborers were set to work yesterday by the Brooklyn board of city works. The officers of German steamers have received a large number of applications from emigrants who came to this country to work their passage back, having no employment and no money to pay for their passage. PARTIAL PAYMENTS. The officers of the Duquesne Savings bank of Pittsburg made a statement yesterday giving the assets at $236,782, and the liabilities at $153,013. They propose to pay the indebtedness in instalments of 20 per cent. each. A RAILROAD DEFAULTER. A rumor was circulated in Wall street yesterday afternoon to the effect that a deficiency to the extent of $600,009 had been discovered in the accounts of an officer of a western railroad. The New York Times will publish a report to the effect that the defaulter is David Crawford, of the Missouri, Kansas and Texas road. PAYING INTEREST PROMPTLY. The Richmond and Petersburg and the Petersburg and Weldon railroads, Reuben Rog. land president, met promptly the November interest on their bonds yesterday. The Richmond and Danville and Piedmont air-line railroad, Col. A. S. Buford, president, extending from Richmond to Atlanta, Ga., paid up the Novem ber interest on their bonds Wednesday.

11. November 14, 1873 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, November 14, 1873

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PITTSBURGH. PITTSBURGH, Nov. 18.-The case of Dudley & Wales, indicted for conspiracy against the Government, robbing the mails of drafts, &c., and forging signatures thereto, which has been on trial in the United States Circuit Court, was concluded to-day. They were found guilty as indicted. The officers of the Duquesue Savings Bank, which suspended day before yesterday, submitted a statement of the condition of the institution to-day. Assets, consisting principally of bonds, mortgages and real estate, $226,782.90; liabilities, $153,013 86. They propose to pay their entire indebtedness in five installments of 20 per cent each, in 4,7, 10. 13 and 10 months from the 17th of November, with interest on the whole amount of indebtedness until fully paid. This proposition has been submitted to the creditors; the direc. tors feeling confi dent that every dollar of the indebtedness can be paid if accepted. At a meeting of coal miners in this city to-day a resolution was adopted accepting a reduction of 10 per cent of $3 60 per hundred bushels. Martin M. Bratt, a passenger conductor on the Allegheny Valley Railroad, met with a terrible accident at Reynoldsville to-day. He was coupling the locomotive to the train when he was thrown under the wheels of the locomotive, which rolled over both legs, almost completely severing them, causing his death.