19409. Mechanics' Savings Bank (Pittsburgh, PA)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
November 12, 1873
Location
Pittsburgh, Pennsylvania (40.441, -79.996)

Metadata

Model
gpt-5-mini
Short Digest
88cb72bb

Response Measures

Full suspension

Other: Officers later charged with embezzlement; bank appears insolvent and to be wound up.

Description

Newspapers report an unusual rush of depositors on Nov 12, 1873 (rumors) producing a run and suspension that same day. Subsequent investigations (Nov 30, 1873) revealed large officer loans/embezzlement (~$84,000) and criminal informations; trustees to wind up affairs — indicating the bank did not resume normal operations and effectively closed.

Events (3)
1. November 12, 1873 Run
Cause
Rumor Or Misinformation
Cause Details
Widespread rumors about the solidity of Pittsburgh banks led depositors to hastily withdraw funds from the Mechanics' Savings Bank on Nov 12, 1873.
Measures
Bank closed doors; could not continue business and suspended (see suspension event same day).
Newspaper Excerpt
There were rumors abroad yesterday affecting the solidity of a number of banking institutions in this city, and, as the result of such rumors, there was this morning an unusual rush of depositors
Source
newspapers
2. November 12, 1873 Suspension
Cause
Bank Specific Adverse Info
Cause Details
The immediate trigger was the run caused by rumors, but later investigations (Nov 30) showed officers had loaned most funds to themselves (~$84,000), making assets insufficient and confirming bank-specific malfeasance/insolvency.
Newspaper Excerpt
The Mechanics' Savings Bank, of this city, suspended to-day.
Source
newspapers
3. November 30, 1873 Other
Newspaper Excerpt
Informations were made last evening against the President, Vice President and Treasurer of the Mechanics' Savings Bank ... charging them with conspiracy to defraud the stockholders and depositors ... over $84,000 ... the bank is closed, and the trustees will wind up its affairs and prosecute the delinquent officers.
Source
newspapers

Newspaper Articles (10)
1. November 13, 1873 Nashville Union and American Nashville, TN
Article from Nashville Union and American, November 13, 1873

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FINANCIAL New York Views More Hopeful. A Scheme to Wipe out the Premium on Exchange and Depreciate American Gold near 3 Per Cent. Nov. 12.-The committee of the have adopted a LONDON, Stock Exchange resolu- dollar tion that four shillings British per American shall be the rate of exchange after the third of November. New York Sees Daylight. NEW YORK, Nov. 12.-The financial situation continues to improve and the money market has fairly settled down to seven with nothing doing above that and some trouble rate, per cent., found this in rate, many parquarters in placing money at when borrowers The States ticularly bonds as collateral. offer bankshave in United legal made a further gain of $1,200,000 tenders to-day, making the total now held by associated banks $26,200,000. The relief loan certificates banks the heaviest the or during panic issued pressure to the are liquidated so to bear too on upon as not them, being heavily merchants gradually, at present. Carleton etals. The work of reorganizing the Union Trust is progressing Company dollars slowly, stock and half of the one million has been subscribed. only required possible The Com- that mercial says it appears hardly have so many tricks in finance dashing Carleton could performed without confederate directors. The officers of the Security Bank, it is stated, know the whereabouts of their absconding cashier, and say the nearly completed thorough investigation fails to show that he took more than originally reported, $25,000. The Turn of Tide in the Tea Trade. in the tea The failures trade yesterday are attributed rather to the competition which is growing up in the West than to The great Western marts, it is are their teas way, of and many the panic. said, San Francisco, receiving mainly smaller by firms been wound up, of trade. The here withdrawal have decreasing owing to of trade this the is maintained as the cause of one heaviest importing firms advertising two vessels of their fleet for sale. An Item about the Spragues. Me., Nov. 12.-The Coburn Land AUGUSTA, Company, incorporated by to the exceed last with a capital not and in which of are has Rhode $2,500,000, Legislature, Island largely the interested, Spragues of been transferred to the management Ira D. Sturgess and H. A. DeWitt, of this city. More Pittsburg Failures. PITTSBURG, Nov. 12.-The banking house of Mellon & Sons and the Mechanics' Savings Bank, of this city, suspended to-day. Expansion of 8570,540 since Yesterday. WASHINGTON, Nov. 12.-Ourstanding legal tenders are $362,343,311. The receipts from customs at the following ports for the week ending Nov. 8, were: New York, $1,436, 843: Philadelphia, $118,964; Baltimore, $138,457. and Boston, $28,640. Ohio Falls Car Company--.-Settlement Effected. LOUISVILLE, Nov. 12-The creditors of the Ohio Falls Car Company met to-day, and received a statement of affairs of the company, showing assets $1,500,000, liabilities about $450,000, and appointed a comexamine the statement and visit of the the mittee works to company in Jeffersonville, reported This evening the committee a which was is extension Ind. itors. settlement The basis accepted of by indebted- cred30, 36, 42 was readily ness The agreement 12, 18. 24, and signed. 48 months. blast, In a few days the car works will be in full after a suspension of some weeks, and will furnish employment to 700 men. Louisville, New Albany and St. Louis Railroad. are now being New and St. Louisville, Papers Albany prepared Louis to put Rail the at the which have money to road banks into here, bankruptcy indebtedness loaned instance of of the the The the is small, about of company company. quite bonds $900,000 being the company's first mortgage out and sold to A of is $125,000. as collateral, meeting stockholders the amount of called for Nov. 25. Hon. Geo. S. Boutwell lectured here tonight on the Treasury Department, Civil Service Reform, and Finances, to a small but select audience of representative men.

2. November 13, 1873 Los Angeles Daily Herald Los Angeles, CA
Article from Los Angeles Daily Herald, November 13, 1873

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PENNSYLVANIA. PHILADELPHIA, Nov. 12.--Orders have been received at the Navy Yard here to fit out the monitor Manhattan for sea by Friday next. A large force of men have been employed. It is understood that the other monitors at League Island are to be made ready for sea at once. PITTSBURG, Nov. 12.-The banking house of Mellon & Sons and the Mechanics' Savings Bank, of this city, suspended to-day.

3. November 13, 1873 The Daily Phoenix Columbia, SC
Article from The Daily Phoenix, November 13, 1873

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Post, at St. Louis, died at nearly the same hour. Commander R. E Owen will command It is stated that of the Virginius was Commander the Manbattan. Confederate Capt. the commanded the in the Arkansas River. the Manhattan navy Fry, and who ordered The Maho- to be and to assigned, are are pac put in already commission, which fourth five officers hum- class screw iron olads, of and tons burden, dred vessels, fifty vessels and will carrying join each two gaus. These The the North Atlantic Squadron. vessels of the navy have been 80 much reduced in number, that it has been found somewhat difficult to our squadrons in cases reinforce promptly few of but in the course a all that can be made emergency, days, in available of accordsent to Cuban waters, the yesterday. ance Cabinet will be with meeting, determination The of Sec. the retary of the Navy was to-day in consultation with the different bureau officers, ou the subject of preparing the vessels be for sea. The Government seems to more earnest than heretofore in protectwaters between the and Cuba-the great States ing the highway molesta- United of nations-from Spanish Madrid tion. all The Government in Cuba, being unable to enforce its authority United States comto assert its power in cases that pelled of the will all be of this the interest of the and its own honor, where country, citizens require and de- all cisive action. The President the members of his Cabinet in accord in this subject. It is not believed on that the contest in Cuba time, assumed the official has, at quarters any the conditions sense of which amount to a war, in law, or which of a de facto the international existence would political sufficient show or- to ganization of the insurgents, a recognition of belligerency; the justify President Grant said, in one of is that the nation but, his maintained annual as messages, principle is its own judge when to accord the right of belligerency, either to a people struggling to free themselves from a government they believe to be oppressive, or to independent nations at war with each other. November 12.-Cal. the celebrated Brown, who Cregan, PHILADELPHIA, counterfeiler, outraged sentenced to in for long terms, and Penitentiary lady, Charles both the fought Eastern head their cell. Brown butted Cregan's against the wail; probably fatal. CHICAGO, November 12.-The SuCouncil of the Sovereign Con- of Bistory preme of Masons of the 33d Degree, United the North jurisdiction of the States, met today. A number of nota- are bles from all parts of the country present. WASHINGTON, November 12.-General fall of snow North. James W. Knowlton, correspondent the Chicago Tribune and other of is dead. He was much esteemed marpapers, his newspaper associates. He this ried by a daughter of Jadge Riddle, of city, only six months ago. Orders have been received at the the Navy Yard to prepare sloops Brooklyn of war Kearsage and Juniata with for immediately. At noon to-day, sea equally pressing orders, the torpedo and Admiral Porter was launched, boat will be made ready for active operations in a few days. The State Department has despatebes Cuba, confirming the press reports defrom from Sautiago de Cuba, in all their tails. Probabilities--For the Southern North-westerly winds, fulling temperature States, and increasing cloudiness, followed by frequent frosts. PHILADELPHIA, November 12.-Orders to been received at the DAVY yard have out the monitor Manhattan for work- sea, fit Friday next. A large force of by have been employed. It is understood men that the other mouiters at League service Island are to be made ready for at once. The associated banks have gained $1,200,000 since yesterday. They DOW have $26,200,000 on band. The Rassia, sailing for Europe, b4rs. today, takes out $457,816 in silver 12 WESTCHESTER, PA., November motion for is new trial in the Udder- second zook A case will be argued OD the Monday in December. CALIFORNIA, Mo., November 12. and Rae killed Mollie Walline himself. Henry The parents of Mollie refused left is consent to their marriage. Rao withsaying that he could not live kill her note, the girl, and resolved to be to. and out himself, so that they might gether PITTSBURG, in the next November world. 12. -The bank the house of Mellon & Sons and city, ing Mechanics' Savings Bank of this suspended 10-day.

4. November 13, 1873 The New York Herald New York, NY
Article from The New York Herald, November 13, 1873

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MORE SUSPENSIONS IN PITTSBURG. The Banking House of T. Mellon & Sons. and the Mechanics' Savings Bank Close Their Doors-The Causes of the Failures. PITTSBURG, Pa., Nov. 12, 1873. There were rumors abroad yesterday affecting the solidity of a number of banking institutions in this city, and, as the result of such rumors, there was this morning an unusual rush of depositors, necessitating in a very short time the closing of doors. The first closed was the banking house of T. Mellon & Sons, on Smithfield street. Judge Mellon, Sr., a member of the firm, was a heavy stockholder in the East Liberty Savings and Deposit Bank, which closed up yesterday. This failure naturally had a tendency to frighten the depositors of T. Mellon & Sons. The consequence was an unusually heavy demand from depositors yesterday. This morning the drain continued, and it soon became evident that the process could not be continued for any great length of time: 80 the suspension took place. Depositors in this institution are not likely to lose a single farthing, as the private fortune of Judge Mellon is ample to cover all demands. The second failure to-day was that of the Mechanics' Savings Bank. There were many rumors about this institution yesterday, and during the afternoon a large number of depositors gave notice of their intention to withdraw their deposits, and last evening it was found that the bank could not under the present stringency continue business. To-day it suspended, like the others in the same predicament, and finds itself with a lot of promissory notes and mortgages on hand upon which money is due; but no payments are being made, and under the circumstances nothing remains but to have the paper renewed and wait for an opportunity to convert their collaterals into money. At a meeting of the stockholders of the East Liberty Savings and Deposit Bank the assets and liabilities, as presented by the cashier, were as follows:-Assets, $236,047 09; liabilities, $197,647.40; surplus, $38,399 69. It was agreed to levy an assessment of twenty-five per cent on the stock and distribute this with the cash on hand at present among the depositors. The failures of the past few days were in the most part caused by the suspension of the branches through Western Pennsylvania of Lloyd, Hamilton & Co. The country people got frightened and drew out of the institutions in this city their entire deposits. Those banks that suspended were not classed in the first rank of sound money depositories.

5. November 14, 1873 The Wheeling Daily Register Wheeling, WV
Article from The Wheeling Daily Register, November 14, 1873

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Wheeling Register. Two more Pittsburgh banks have suspended, vis: The well-known bank ing house of T. Mellon & Sons and the That Mechanics' Savings Bank. makes four suspensions this week.

6. November 20, 1873 Mineral Point Tribune Mineral Point, WI
Article from Mineral Point Tribune, November 20, 1873

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the 10th, and presented the same appearance they did before the fever broke out. Nearly all the absentees had returned. In the twentyfour hours ending at ten p. m., there were but two deaths and five new cases. Joseph Arch left this country a few days ago for England; also, Mark Twain, who only arrived from there two days before. The Inter-State Industrial Exposition held in Chicago, and which was recently brought to a close, was a success in every respect. The net receipts over expenses, exclusive of the building, were $62,000. The structure cost $267,000. The Duquesne and the Mechanics' Savings Banks, and the banking house of Millar & Sons, of Pittsburgh, and the Savings Deposit Bank, of East Liberty, Pa., have suspended. The assets are said to be ample to secure creditors. Hon. S. S. Mailory, formerly United States Senator from Florida, and Secretary of the Navy in the Cabinet of the Confederacy, died at Pensacola on the 9th. There were no new yellow fever cases nor deaths in Memphis on the 12th. Ex-Acting Mayor Cicalla, charged with appropriating to his own use supplies that he drew ostensibly for a widow and her children, was expelled from the Board of Alderman by a unanimous vote. Granges of the Patrons of Husbandry have been recently formed at Harvard and Danvers Mass., and a State Grange is to be formed on the 1st of December. On the 12th there were thirteen Granges in Massachusetts, including the Boston Grange, whose charter is in dispute, and the Order is rapidly extending throughout the State. The annual meeting of the Illinois State Grange of the Patrons of Husbandry is to be held at Bloomington on Tuesday, December 9, commencing at ten o'clock a. m. The mother and sister of General Ryan. one of the victims of the recent butchery in Cuba, are residents of Chicago.

7. November 22, 1873 The Superior Times Superior, WI
Article from The Superior Times, November 22, 1873

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NEWS OF THE WEEK. The East. A MAN named John Boyle was stabbed by George Russell, at Philadelphia, from the effects of which he died in a few hours. Russell was arrested. ORDERS have been received at the navy yard at Philadelphia to fit out the monitor Manhattan for sea immediately. A large force of workmen have been employed. It is understood that other monitors at League Island are to be made ready for sea at once. Orders have also been received at the Brooklyn navy yard, to get the sloops of war Kearsarge and Juniata ready for sea at once. Under equally pressing orders the Torpedo, Admiral Porter was launched, and will be made reacy for active operations in a few days. THE tea trade failures at New York are attributed rather more to the competition which i- growing up in the West than to the panic. The great western markets, it is said, are receiving their teas mainly by way of San Francisco, and many smaller firms here have been wound up owing to this withdrawal of trade. The decreasing trade is mentioned as the cause of one of the heaviest importing firms advertising two vessels of their fleet for sale. THERE are at present 485 suits against the city of New York pending in the Supreme Court, and involving $5,406,444 68 cases in the Superior Court, involving $681,106; and 210 in the Common Pleas Court, involving $545,694. together with 31 actions to set aside assessments. During the past three months 317 cases against the city have been decided, and judgments entered against the city for $276,055. A MRS. DOLAN, of Cedar Falls, Iowa, who has been missing for the last six weeks, has been found in Dubuque in a crazed condition, and unable to give any account of herself. Her friends decided to send her to the Insane Asvium. THE banking house of Matlones & Sons and the Mechanics' Savings Bank, of Pittsburg, have suspended. IN response to appeals from laborers of Brooklyn, the Board of City Works have set 450 men to work on public improvements.

8. December 1, 1873 The New York Herald New York, NY
Article from The New York Herald, December 1, 1873

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ALLEGED EMBEZZLEMENT BY BANK OFFICIALS. The Officers of the Pittsburg (Pa.) Mcchanics' Savings Bank Charged With Misappropriating Over $84,000. PITTSBURG, Pa., Nov. 30, 1873. Informations were made last evening against the President, Vice President and Treasurer of the Mechanics' Savings Bank of this city, which suspended some days ago, charging them with conspiracy to deiraud the stockholders and depositors of the bank and with embezzlement and misappropriation of funds. Statements show that the assets of the bank will probably not pay its liabilities, although the loss to the depositors will not be heavy. It appears the officers loaned nearly all its money to themselves and Immediate friends, as over $84,000, or. four-fiths of the entire amount loaned, is due from the President, Vice President and others with whom they were associated in business enterprises, without sufficient security being given.

9. December 1, 1873 New-York Tribune New York, NY
Article from New-York Tribune, December 1, 1873

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THE AFFAIRS OF THE NATIONAL TRUST COMPANY OF PITTSBURGH-FORGERIES TO A LARGE AMOUNT DISCOVERED. [BY TELEGRAPH TO THE TRIBUNE.] PITTSBURGH, Nov. 30.-On a further investigation of the affairs of the suspended National Trust Company, it appears that Greer, the defaulting cashier, forged 3 large number of notes and indorsements, which he presented at the last meeting of the Board of Directors for comparison with the discount book. They were examined hastily and of course found to tally with the book, no suspicion of the forgery arising. At the time he absconded the notes disappeared, and advertisements warning people against negotiating them brought forth disclaimers from the purported drawers of a number of them, and led to the discovery that they were forgeries. The amount of forged paper thus far discovered 18 $78,000, and the amount still in doubt is $47,500. Yesterday, Judge F. H. Collier of the Court of Common Pleas appointed a receiver of the Trust Company on an application made by a stockholler The responsibility for the loss of the Water Commission bonds and the money of the city arising from the sale of them. and deposited with this Company, has not been fixed on any person implicated in the transactions. It is believed that an effort 18 being made to clear the members of the Water Commission and the City Controller from blame, charging it all on the Clerk of the Commission. [GENERAL PRESS DISPATCH.] PITTSBURGH, Nov. 29.-An application was filed in the Court of Common Pleas this morning on behalf of the city, asking that a receiver be appointed to take charge of the affairs of the National Trust Company of this city. The application was granted and a receiver appointed. Promissory notes amounting to $114,030 are missing from the institution, and are supposed to be lost or stolen. A number of these notes are said by the indorsers to be forgeries. MAYOR BLACKMORE OF PITTSBURGH ARRESTED FOR MISAPPROPRIATING THE FUNDS OF A SAVINGS BANK. [BY TELEGRAPH TO THE TRIBUNE.] PITTSBURGH, Nov. 30.-On Saturday aftermoon, Jas. Blackmore, Mayor of the city and President of the Mechanics' Savings Bank, and Geo. D. Tindle, cashier, were arrested on an information charging them with embezzlement and misappropriation of the deposits of the bank, and conspiracy to defraud the stockholders and depositors. They have taken, and loaned to others associated with them in private enterprises, about $84,000, or four-fifths of the total loans of the bank, providing for several of the loans inadequate security, and for others no security hatever. The bank is closed, and the trustees will wind up its affairs and prosecute the delinquent officers. A warrant 48 out for Alex. Tindle, Vice-President of the bank, and father of the |cashier, charging him with the same offenses. BUSINESS NOTES. Wm. E. Fisher & Sons of Baltimore, stock brokers, who suspended during the late panic, will resume business to-day, having settled with their creditore in full. The trustees named in the Sprague trust deed have notified to the Committee appointed at the creditors' meeting that under advice of counsel they feel inclined to decline the appointment unless they can have some guaranty to protect them from personal liability. The trustees are to have another conference with the Committee this afternoon, the result of which will doubtless be promptly announced.

10. December 1, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, December 1, 1873

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PITTSBURGH. THE MECHANICS' SAVINGS BANK. Prrrsnuugh, Nov. 80.-Informations wore made last evening against the President, VicePresident, and Treasurer of the Mechanios' Savings Bank of this, city, which suspended soine days ago, charging them with conspiracy to defraud the stockholders and depositors of the bank, and with embazzlement and misappropriation of the funds. The statements show that the assets of the bank will probably not pay its liabilities, although the loss to depositors will not be heavy. It appears that the officers loaned nearly all its money to themselves and immediate friends, as over $84,000, or four-fifths of the entire amount loaned, is due from the President, Vice-President, and others with whom they associated in business enterprises, insuflicient BOcurity being given.