19459. Bushong & Bro. (Reading, PA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
private
Start Date
November 16, 1877
Location
Reading, Pennsylvania (40.336, -75.927)

Metadata

Model
gpt-5-mini
Short Digest
6fb8340d

Response Measures

None

Description

Bushong & Bro., a private banking house in Reading, PA, closed/ suspended payments immediately after the Reading Savings Bank suspended (reported Nov 16, 1877). There is no explicit description of a depositor run on Bushong & Bro.; the trigger is the failure/suspension of another local bank, so cause is classified as 'local_banks'. Subsequent reporting (Nov 29, 1877) shows the firm submitted a proposal to creditors to extend payment over five years, indicating a negotiated settlement rather than an immediate receivership — I therefore classify this as a suspension with eventual reopening/rehabilitation rather than a permanent failure. Dates are taken from the newspaper reports (Nov. 16, 1877 and Nov. 29, 1877).

Events (2)

1. November 16, 1877 Suspension
Cause
Local Banks
Cause Details
Closed immediately after the suspension of the Reading Savings Bank; panic/contagion from another local bank's suspension led to Bushong & Bro. closing their doors and suspending payments.
Newspaper Excerpt
Immediately upon the announcement that the Reading Savings Bank had suspended, the banking house of Bushong & Bro., having deposits between three and four hundred thousand dollars, closed their doors
Source
newspapers
2. November 29, 1877 Other
Newspaper Excerpt
Messrs. Bushong & Bro., bankers, who suspended payment recently, have submitted a proposition to their creditors asking an extention of five years from January 1, 1878, within which time they promise to pay every dollar, with interest ... The aggregate claims against the firm amount to $350,000. (New-York Tribune, Nov. 29, 1877)
Source
newspapers

Newspaper Articles (6)

Article from The Cheyenne Daily Leader, November 17, 1877

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Article Text

GONE UNDER. Three Banking Houses in Reading Close Their Doors. Reading, Pa., Nov. 16.-The Reading Savings Bank, the leading banking institution of the county, suspended this afternoon, The deposits are nearly one million dollars; liabilities not stated, although the officers have announced that the assets will be sufficient to pay all claims. Shrinkage of values, depreciation of property, depressed condition of business, general distrust and want of confidence are given as the causes which led to the suspension. The deposits have fallen off seven hundred thousand dollars in the last year. Immediately upon the announcement that the Reading Savings Bank had suspended, the banking house of Bushong & Bro., having deposits between three and four hundred thousand dollars, closed their doors, and also the Dime Savings Bank, Boyer & Sellers, proprietors.


Article from Clearfield Republican, November 21, 1877

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A CRASH. Three banks closed their doors in Reading on Friday last: Bushong & Bro, the Reading Savings Bank, and the Dime Savings Bank. The deposits of the Reading Savings Bank, though they had fallen off $700,000 during the past two years, amounted to nearly $1,000,000. No statement is given of the total liabilities; but the officers say the assets will be sufficient to pay all claims. For their payment the individual property of the stockholders is liable, as well as the assets of the bank The bank was incorporated in 1855. with an authorized capitol of $100.000. A. F. Boas is President, and E. P. Boas Cashier. The failure is attributed to the shrinkage of values, depression of business, and general distrust. As soon as the suspension was announced, the banking house of Bushong & Bro., and the Dime Savings Bank of Boyer & Sellers closed their doors. Bushong & Brother had deposits amounting, it is said, to $350,000. They have been in business a very long time, and have always enjoyed the fullest confidence of the community. The house suspended temporarily in the panic of 1873, but opened its doors again after a very short time, its assets being then largely in excess of liabilities. The depositors want about two millions out of the three concerns. What the stockbolders will realize is not known. The excitement is very great in Reading. The Sheriff of the county had $25,000 deposited in the Reading Savings Bank.


Article from Essex County Herald, November 24, 1877

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SUMMARY OF NEWS. Eastern and Middle States. New Henry Hausmann, residing in Chrystie customary York, came home from work, and after street, a wife, scene of domestic violence with his with whom he had been in the habit several quarreling, he went down stairs and drank of he sent glasses out for of wine. Returning to his home altereation with his some beer and renewed the tractive the bedroom, where wife. his three Suddenly bright he and entered killing children were, and fired shot at ating Martha, aged six years, mortally wound- each, ing his Adam, a boy of four, and seriously woundfather oldest boy, John, nine years old. then shot himself twice in the The inflicting In his wounds from which he cannot recover. breast, said that statements to the coroner Hausmann that he had been married eleven wife, the first fiveyears he lived happily with years, his existence but that during the past six her excessive had drinking. been made miserable to him years by Mrs. Eveline Stuart, who was married about in six a months ago, and resided with her husband York, fashionable hotel on Fifth avenue, husband's became despondent on account of New by dissipation, and committed suicide her taking laudanum. An agent of the Russian government peared local in Philadelphia and negotiated with apcompany to build a bridge across the & Danube, costing over $3,000,000. rifle Charles range Clapper, while acting as scorer at & shot in Albany, N. Y., was accidentally through the heart by Dr. J. V. Lansing. inside Miss Bertha Von Hillern walked 100 miles the feat or twenty-eight hours at Philadelphia, female pedestrian. being considered & great one for & Bank W. H. Howell, cashier of the First National on a of Highstown, N. J., went to New York showed spree, and an examination of his books not a deficiency of over $2,000. He liable. arrested, but his bondsmen will be held was Security Robert L. Case, president of the bankrupt York, Life and Annuity Company of falsely was found guilty of perjury in swearing New The to report of the defunct company. delphia schooner Alexander Young, from Philacoal, bound for New York with a was run into off Sandy Hook by the cargo of steamship sunk City of Brussels. The schooner ocean was and two of her crew were drowned. of An the explosion of fire damp occurred in ton, Pa., chambers of the Jermyn mine at Scran- one thrown in and the miners in the vicinity of & mile every off were direction, while carts a quarter were were njured. hurled over thirty overturned. feet and were Six terribly miners John Mrs. Eliza Millar, of New York, claims land in Young estate, consisting of 119, 000 the as well Virginia, West Virginia, and Kentucky, acresof and Alexandria, as valuable property in Philadelphia 000,000, Va., altogether valued at to and has signed documents $30,bringing suit for the recovery of preparatory the estate. Eliza Preliminary Millar, of steps New have York, been taken by Mrs. ning of a suit for the looking to the beginof consising valued at $30,000,000. and John Young estate, 000 acres Kentucky, of besides land in Virginia, West Virginia 119,- and delphia and Alexandria, valuable Va. property in Philaremoving While number fire of men were engaged in the Jermyn mine damp at in one of the chambers of explosion in every direction. took place Six and Scranton, the men Pa., were a sudden hurled a the distance of thirty feet by miners the terrible were force thrown injured. explosion and were more or less severely of Pa., Intense by the excitement was caused in banks-the suspension of its three Reading, house of Bushong Reading & Savings Bank, the banking savings Bank. All Bro., and the Dime Savings to the three institutions closed their James public within a few hours of one another. doors his wife while Savage, intoxicated. of Belgrade Depot, Me., killed opposed Two parties to each in Trenton, N. J., are fiercely or not the other on the question and the matter street cars shail be run "on Sundays, whether mitted will probably have subThe to the people at special election. to be Meriden, works of the Meriden Screw Company Loss, $25,000 Conn., insurance, were entirely $12,350. destroyed by fire. at York A number have of striking cigar makers of were been ejected from their homes, which New owned by their employers. Western Ex-United and Southern States. who has been States Marshal Schaffenberger, the past eight months in the Kansas penitentiary for government for robbing the national the President. of $40,000 has been pardoned by exploded The boiler of the steamer Tom Morgan gineer and near Greenville, Mass., and the enThe owner of the boat were killed. sippia State opened fairs of South Carolina and Missiswere largely attended. at Columbia and Jackson, and Berlin, During of gale on Lake Michigan the schooner wrecked. Buffalo, The N. Y., struck reef and was but the four captain and cook were diowned. pieces survivors managed to P M. next of the day, vessel over night and until cling four to a lifeboat, although when two they were reached by son posure. and a sailor-died of from them the the terrible captain ex. goods Field. Leiter & Co.'s mammoth retail store in Chicago-one of the dry caught establishments of its kind in the largest Hames fire in the upper story and before countrying down were got under control the whole the While the to the two lower stories was builddenly fell, firemen were at work a stairway gutted others and one man was killed and sudbe probably fatally injur d. The four surance. about $1,000,000, but there is a large loss will in one Chicago of its has been startled by the suicide most prominent business Coolbaugh, Bank. He president of the Union men- National W. trance to was found lying dead at the en the Douglas monument. partially supposed emptied revolver at his side. with period of to mental have aberration. committed the deed during He damage A fire in the business part of St. Louis Steinberg, a amounting to over $100,000. the sufferers. hatter and furrier, and others M. wer having A company has been formed in San Francisco between for its object the laying of that city and China and a cabl capital stock is $10,000,000. Japan. It the An Western earthquake States, occurred in different parts Bluffs. Ia., Omaha, shocks being felt at Counc elsewhere. Neb., Columbus, office In North Platte, Neb., Ohio, printin an material was overturned. Proctor In Warren county, Ia., a man named tempting fatally shot Miss Codigan while Renbe house. While to commit burglary in her father at la officers amination Proctor undergoing was taken a preliminary from the The by a number of men and hanged. cable Trans-Pacific Cable Company, for Japan, a between San Francisco, and layin the has been organized in San China Francisco an capital stock being $10,000,000. lary Reuben at Proctor attempted to commit discovered a house by in Warren county, Ia., and a burg W: a daughter of the Miss Cadigan whereupon proprietor her, inflicting mortal he fired two shots took and while him being examined wounds. a body He of was arreste him. away from the examiners and forty hange me all Quite over a the severe shock of earthquake West, particularly in was fe in Nebraska, printing In North Platte, Neb., the Iowa at


Article from The Ottawa Free Trader, November 24, 1877

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A melancholy dispatch went over the wires last Saturday announcing a panic and failure of three savings banks at Reading, Pa. The first-the Reading Savings Bank-leaves unsatisfied deposits to the amount of $700,000; the second-the bank of Bushong & Bro., -owes its depositors $400,000; and the third -Boyer & Sellers,-is behind $12,000 to $15,000. The "Reading," which started the ball, had really crippled itself in a vigorous attempt to help others who were being pushed to the wall, and is confident of being able, in a little while, to pay dollar for dollar. Fortunately it numbers many of the wealthiest men in Reading among its stockholders, all of whom are individually liable for the debts of the bank. In regard to all of them, however, the familiar item is given that the "loss falls heaviest upon the poorer classes, who have from $50 to $1,000 on deposit." This IS a dismal sentence, heavy with lost years, blasted hopes, and wrecked lives.


Article from New-York Tribune, November 29, 1877

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THE READING BANK FAILURES. READING, Penn., Nov. 28.-Messrs. Bushong & Bro., bankers, who suspended payment recently, have submitted a proposition to their creditors asking an extention of five years from January 1, 1878, within which time they promise to pay every dollar, with interest, to all depositors who are creditors to the amount of $100 and over, and those under that amount to receive their money immediately. More than 150 creditors, who have more than $100 in deposit, have signed the agreement, there being about 450 depositors altogether. The aggregate claims against the firm amount to $350,000. No statement has yet been made by the Dime Savings Bank, which also suspended. There was a meeting to-night of the committee appointed last night to obtain signatures to a petition to have the Reading Savings Bank with Messrs. A. F. & E. P. Boas adjudged in bankruptcy. About fifteen persons, representing only about $2,500, signed the petition,


Article from The Anti-Monopolist, November 29, 1877

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A month or twongo the Republican party of Minnesota, in convention assembled. solemnly resolved that the "revival of business had commenced." We expected of course that that would settle it. But evidently, from the following, they have not yet heard of that resolution of the Republicans of Minnesota in some parts of the country: READING, Pa., Nov. 16.-The Reading Savings bank,the leading banking institution o the county, suspended this afternoon. Deposits nearly one million dollars. Liabilities are not stated. The officers announce that the assets will be sufficlent to pay all claims. The shrinkage of values, depreciation of property, depressed condition of business and general distrust and want of confidence are given as the causes which led to the suspension. Deposits have fallen off $700,000 during the last years. Immediately upon the announcement that the Reading Savings bank had suspended, the banking house of Bushong & Bro., having deposits between $300,000 and $400,000, closed its doors, and also the Dime Savings bank, Bever & Sellers, proprietors. Wouldn't it be well for the PioneerPress to send a circular letter all over the United States, giving notice that the "revival of business" had com-