19463. Dime Savings Bank (Reading, PA)

Bank Information

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

Metadata

Model
gpt-5-mini
Short Digest
4e69c22f

Response Measures

None

Description

The Dime Savings Bank (Reading, PA) suspended/closed its doors on Nov 16, 1877 per contemporaneous reports. No article describes a run on the Dime specifically; it is reported as having 'closed' or 'suspended' and later its officers were arrested (Mar 1878) on charges of fraud. There is no evidence in the provided articles that the Dime Savings Bank reopened, and legal actions against officers suggest permanent closure, so classified as suspension_closure. Bank type taken as state (savings bank).

Events (2)
1. November 16, 1877 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed due to inability to realize on investments, heavy discounts, involvement in brokerage/commission business and obligations to local firms; assets/liabilities unclear and officers later charged with fraud; closure appears driven by bank-specific insolvency and mismanagement.
Newspaper Excerpt
Dime Savings Bank is closed. Will make a statement as soon as possible.
Source
newspapers
2. March 1, 1878 Other
Newspaper Excerpt
Ammon L. Boyer and Cyrenis Sellers, proprietors of the suspended Dime Savings Bank, were to-day arrested on a charge of fraud, brought by the depositors, to the extent of $4,000. They entered bail in the sum of $8,000. (also reported March 18 hearings held and bail set at $5,000 each.)
Source
newspapers

Newspaper Articles (12)
1. November 17, 1877 New-York Tribune New York, NY
Article from New-York Tribune, November 17, 1877

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Article Text

DOORS. [BY TELEGRAPH TO THE TRIBUNE.] READING, Penn., Nov. 16.-This city is excited over the closing of the Reading Savings Bank, which institution closed its doors at 2:30 this afternoon. The following notice is posted on the door: The Reading Savings Bank is closed. A statement will be made as soon as it can be prepared. The assets, it is believed, will Day all liabilities. The assets will be immediately turned over to responsible parties in trust for its creditors. The bank was incorporated in 1855, with an authorized capital of $100,000. The deposits are said to be over $1,000,000. The officers are, President, A. F. Boas; Cashier, E. P. Boas. An assignment of all the Boas's estate will be made this evening, when a suitable person will be chosen as assignee. The entire clerical force of the bank are engaged in preparing a full statement for publication to-morrow. On the announcement of the failure of the Reading Savings Bank becoming known, there was considerable excitement among the people, and great crowds gathered around discussing the matter, but there were no violent demonstrations. This bank was one of the oldest in this region and was a general favorite among the poorer classes, and they will suffer heavily by the suspension. The deposits range in sums from $50 to $25,500, Sheriff Gougey being a depositor to the extent of the Intter amount. The Dime Savings Bank also closed its doors this morning, the following notice being posted on the door at 6 p. m. Dime Savings Bank is closed. Will make a statement as soon as possible. Nothing is known of their assets or liabilities. The banking house of Bushing & Brothers also closed its doors this afternoon. The following notice being posted on the doors at 7 o'clock this evening: This bank is closed. All our property will be securely used to meet our liabilities. We believe we can pay every cent if we are given a reasonable time to handie our property. This institution suffered severely at the commencement of the panie, having been compelled to close its doors in October, 1873, but eventually paid all their depositors, The deposits are supposed to be $100,000, assets not known. It is feared that there will be a run on the other banks to-morrow. The First National Bank is not affected by the closing of the Savings Banks, but will be opened to-morrow as usual.

2. November 17, 1877 The Daily Gazette Wilmington, DE
Article from The Daily Gazette, November 17, 1877

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SECOND EDITION ! I A BURSTED BANK IN READING. A Savings Bank Closed-Other Institutions Shutting up. The Reading Savings Bank, the leading banking institution of Berks county, suspended yesterday morning. The deposits are nearly $1,000,000. The liabilities, although the officers have anounced that the assets will be sufficient to pay claims. Shrinkage of values, depreciation of property, and depressed condition of business, and the general distrust and want of confidence, are given as the causes which led to the suspension. The deposits have fallen off $700,000 during the past two years. The bank was incerporated May 11. 1855, with an authorized capital of $100,000. All the assets of the bank and the individual property of the stockholders are liable for the payment of deposits. A. F. Boas is President and and E. P. Boas cashier of the institution. Immediately upon the announcement that the Reading Savings Bank had suspended the banking house of the Bushsong & Bro., having deposits of between $300,000 and $400,000, closed their doors, and also the Dime Savings Bank, Boyer & Sellers, proprietors.

3. November 17, 1877 The New York Herald New York, NY
Article from The New York Herald, November 17, 1877

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RFADING BANKS CLOSED. Sudden Suspension of Three Banking Institutions. TWO SAVINGS BANKS Fears that Manufacturing Firms Will Be Crippled. [BY TELEGRAPH TO THE HERALD. ] READING, Pa., Nov. 16 1877. Shortly before the closing hour 10-day the Reading Savings Bank, one of the oldest. and heretolore considered one of the most reliable, institutions in the Schuylkill Valley, posted a notice on its doors an. nouncing its suspension, and that it expected its assets would cover its liabilities. This was a most unexpected turn of affairs, and the entire business community was startied. The deposits amount to nearly $1,000,000. CLOSING OF BUSHINGS' AND THE DIME BANK. Shortly after the above was made known the banking house of Bushing & Brother posted a. similar notice. Closely following this the Dime Savings Bank followed the example, making three for the alternoon. The two last named were smaller institutions, carrying deposits of about $200,000. It is believed that their notices were more for the purpose of evading ruus on them 10-morrow than any want of funds for the transaction of their ordinary business. A HEAVY DRAIN. Four years ago the Reading Savings Bank had a deposit of about $2,000,000. The cashier, E. P. Boas, states that within the past two years they have paid out to depositors $800,000. Their investments were such that they could not realize on them, and as they have been carrying collaterals for heavy amounts for at least two large manufacturing firms, and not being able to secure money to tide over their business needs, the bank determined to close and make an assignment, which will be done some time to-night. The confidence of the community in the integrity of the Measrs. Boas and the directors of the bank has allayed all excitement, notwithstanding the fact that a large amount of the deposits belong to the poorer classes. The First National Bank, having its office in the same building and nearly under the same management, will continue its business to-morrow in another building. THE PRINCIPAL LOSERS. Among the heavy depositors in the savings bank is the Sheriff of the county, who has a deposit of $21,000. A very large amount deposited belongs to the farmers of the county. There is a report to-night that the large Iron firm of Setfert, McManus & Co. will be severely crippled by the above suspensions. At this writing large crowds are congregating in front of the banks and special squads of officers are preserving order.

4. November 18, 1877 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, November 18, 1877

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FINANCIAL. READING, PA. Special Disputch to The Chicago Tribune. PRILADELPHIA, Nov. 17.-The suspension of the Reading Savings Bank, followed by the stoppage of every banking institution in the city except the national institutions, was mainly owing to a disposition to go to the utmost limit in assisting its debtors of the manufacturing class, rather than precipitate a cessation of business that their failure would make inevitablc. Large manufacturing and mining interests, involving the employment of a large number of operatives in the coal and iron districts, were dependent upon the advances made. A year ago the deposits were $1,400,000, and in two years they have shrunk $700,000, but despite that the bank has discounted good paper freely, and helped out everybody that seemed deserving. Last night the Ilon. George P. Stirsel and Henry A. Muhlenberg were appointed Assignees, and will furmish a statement as soon as possible, clerks being at work might and day upon the books. President Boas says all his private property will be sacrificed if need be to pay the claims of depositors. but it was believed that sufficient would be realized from the assets to pay all liabilities. Nothing would be withheld from the creditors of the bank. The Cashier, another member of the Boas family. talks in the same way. An assignment of all the Boas estate would be made. There had been a large withdrawal of deposits during the summer, and since the Jav Cooke failure the bank has paid out over $700,000 to their depositors. He stated that the First National Bank, the business of which has been conducted in the same building. would be in no wise effected by the business of the Reading Savings Bank. Even more serious than the suspension of this bank is that of Bushong & Brother. This firm has been the custodian of accounts of many large mining and manufacturing concerns, and has had unlimited confidence. They suspended in 1873, but only to avoid a rull, and resumed without impairment of credit. At that time their deposits amounted to $1,900,000. At present their deposits amount to between $300,000 and $400,000. They say their depositors are amply secured, and will be paid dollar for dollar. They have devoted themselves for four years in paving off the claims against them, and this should be an assurance that no loss would be incurred by the present suspension. Messrs. Loyer & Sellers. proprietors of the Dime Savings Bank, which suspended yesterday, were engaged in discounting notes, buying and selling stocks, and doing a general brokerage and commission business. The deposits are not believed to have been large at the time of the suspension. and that they do not exceed $12,000 to $15,000. The excitement over the closing of the Reading and Dime Savings Banks, and the bankinghouse of Bushong & Bro., is still very intense. Crowds of people from the country districts who have money on deposit in these banks came into town this morning to find out how matters stand, which helps to increase the excitement. To the Western Associated Press. PHILADELPHIA, Pa., Nov. 17.-A dispatch from Reading says: " There is now a run being made on the First National Bank of this city. A large crowd is surrounding the door. Several wealthy citizens, in order to show confidence in the institution, are making deposits." READING, Pa., Nov. 17.-A representative of the Associated Press visited the three National Banks doing business here, in view of the Philadelphia dispatch reporting a run. and fhis is the result: Henry S. Eckert, President of the Farmers' National Bank, said: "We are doing less than the usual business, and receiving more than we pay out." W. H. Clymer, President of the First National. said: There is no run on our bank, and we are receiving nearly as much as we pay out. We are ready to meet any demand, and will continue to cash checks as fast as they are presented." Charles B. McKnight, Cashier of the National Union Bank, said: .. More money was coming in than going out. There is no excitement worth mentioning. and the reports concerning runs are without foundation."

5. November 19, 1877 The Daily Gazette Wilmington, DE
Article from The Daily Gazette, November 19, 1877

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READING'S SENSATION. Excitement Occasioned by the Bursted Banks. The terrible financial crash caused by the failure of the Reading Savings Bank, the Dime Savings Bank and Bushong & Bro. is still the topic of absorbing interest in Reading. The entire business community is startled and knows not what to do. Four years ago the Reading Savings Bank had a deposit of about $2,000,000. The cashier, E. P. Boas, states that within the past two years they have paid out to depositors $800,000. Their investments were such that they could not realize on them, and as they have been carrying collaterals for heavy amounts for at leasttw large manufacturing firms, and, not being able to secure money to tide over their business needs, the bank determined to close and make an assignment. The confidence of the community in the integrity of she Messrs. Boas and the directors of the bank has allayed the excitement somewhat, notwithstanding the fact that a large amount of the deposits belong to the poorer classes. The First National Bank, having its office in the same building and nearly under the same management, continues its business to-day in another building. Among the heavy depositors in the savings bank is the Sheriff of the county, who has a deposit of $21,000. A very large amount deposited belongs to the farmers of the county. The combined liabilities of Bushong & Brother and the Dime Savings Bank will, it is believed, amount to nearly $1,000,000. There is a report that the large iron firm of Seifert, M cManus & Co., will be severely crippled by the above suspension.

6. November 24, 1877 New-York Tribune New York, NY
Article from New-York Tribune, November 24, 1877

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THE READING BANK FAILURES. READING, Penn., Nov. 23.-Bushong & Brothers, bankers. who recently suspended, have presented a proposition to their creditors. They propose to give a general mortgage on all their property, both partnership and individual, to three trustees. to be elected by the creditors, in trust for the creditors, to be, with interest, payable in five years, or on January 1, 1883, certificates upon this mortgage to be issued to the ereditors, bearing interest payable in live years, with interest, or a part thereof, within that time, at the option of the Messys. Bushong. It is expected this proposition will be very agreeable to the creditors. The assignees of the Reading Savings Bank will present a statement to the creditors and depositors to-morrow night. There is no information as to when a statement will be made by the assignee of the Dime Savings Bank.

7. November 29, 1877 New-York Tribune New York, NY
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,

8. March 2, 1878 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, March 2, 1878

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Arrested for Fraud. ) READING, PA., March 1.-Ammon L. Boyer and Cyrenis Sellers, proprietors of the suspended Dime Savings Bank, were I to-day arrested on a charge of fraud, I brought by the depositors, to the extent of $4,000. They entered bail in the sum of $8,000.

9. March 19, 1878 Daily Globe Saint Paul, MN
Article from Daily Globe, March 19, 1878

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FINANCIAL TROUBLES. John Sherman's Victims Yield to the InInevitable--Failures in Chicago and Elsewhere. FAILURES IN CHICAGO. CHICAGO, March 18.-Stearns, Dana & Co., wholesale grocers, 42 Lake street, who have been in financial difficulty for some time, filed a petition in bankruptcy to-day. Secured debts $14,000;unsecured $60,000 other liabilities, making a total of $81,000. Assets, open accounts, stock, real estate, etc., $70,000. George F. Work, picture frame manufacturer, filed a petition in bankruptcy. Secured debts $56,000; unsecured $110,000. All assets exempt. NOVA SCOTIA, TOO. HALIFAX, N. S., March 18.-McIntosh, & Co., bankers and brokers, suspended payments today. It is feared it will lead to more failures. Liabilities not known, but will exceed $100,000. The bank of Nova Scotia is a large creditor. Assets nominally exceed liabilities. DOMINION FAILURES. MONTREAL, March 18.-C. L. Baker, of Lindsay, wholesale grocer, has failed. Liabilities $300,000; assets large. The Beaver Stamping company is attached. Liabilities $70,000; assets unknown. A LITTLE RELIEF. WILKESBARRE, Pa., March 18.-The Lehigh & Wilkesbarre coal company resumed work this morning in eleven collieries on threequarter time, giving work to 2,000 men and boys. BOSTON SAVINGS BANK RUN. BOSTON, March 18.-The run on the savings banks to day continues, but the excitement is greatly diminished and the crowd in e the Five Cents savings bank did not number Is over one hundred. At the Provident and e Suffolk savings banks there were few, if any, Zdepositors calling for their money. STRIKE OF ENGLISH WEAVERS. LONDON, March 18.-Between five and six -1 thousand Oldham weavers are engaged in the strike and lock-out. Numbers of operatives in other departments are kept idle in c, consequence of the stoppage of work by the weavers, and great distress prevails. SWINDLING BANK OFFICERS HELD. READING, Pa., March 18.-The habeas corpus hearing of A. L. Boyer and Col. Sellers, officers of the suspended Dime savings bank, charged with conspiracy to defraud, was concluded to day and the prisoners held in $5,000 each to appear at the April term. Id

10. March 19, 1878 New-York Tribune New York, NY
Article from New-York Tribune, March 19, 1878

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BANK OFFICERS HELD FOR TRIAL. READING, Penn., March 18.-The habeas corpus hearing of A. L. Boyer and C. Sellers, officers of the suspended Dime Savings Bank, charged with conspiracy to defraud, was concluded to-day. The decision of the court was against the prisoners, and they were held in $5,000 bail each to appear at the April term of the court.

11. March 19, 1878 The Daily Gazette Wilmington, DE
Article from The Daily Gazette, March 19, 1878

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General News. , It is stated that navigation of the Chesspeake and Ohio canal will be resumed on the 10th of April. The republicans of Hagerstown, Md., have nominated for Mayor Wm. 8. Swartz, the present incumbent. The democrate have not yet agreed upon a nominee. The liabilities of Sheppers Brothers, proprieters of several large woolen mills at Philadelphia, are $997,373. They are endeavoring to effect u settlement with their creditors. In the New Jersey M.E. Conference, at Burlington, yesterday, Rev. Dr. Kvne delivered an address on church x tension, and urged the taking up of a collections for that purpose. The habeas corpus case of A. L. Boyer and C. Sellers, officers of the suspended Dime Savings Bank at Reading, Pa., has been decided against them, and they are held in $5,000 bail for trial inA pril The miners of the Georges Creek Coal and Iron Company have agreed to resame work at 40 cents per ton. Offers by miners of other companies to resume al 45 cents per ton have been rejected. Ricaard Seymour and Jas. E. Wright, convicted in Now York of passing $5 counterfeits on the Tamaqua (Pa.) Bank have been sentenced each to the poni tentiary for thirteen months and $1 fine Work was resumed by the Lehigh and Wilkesbarre Coal Company yesterday leven collieries employing two thougand men and boys. They will run on three-quarters time during the remainder of March at least. The Philadelphia M. E. Conference at Reading, Pa., yesterday passed a resolution urging the Legislature to pass the pending oill for closing all places of amusements on Sunday. The next conference will meet at Germantown. Iu reply to an inquiry from Secretary Sherman, Treasurer Gilfillan states that there is now in the United States treasury $3,367,713 26 in gold pars, which is exclusive of the amounts held by the mints and assay offices; also that gold certificates have never been issued for gold bullion deposited, although authority for such issue 18 given in section 254 Revised Statutes.

12. March 19, 1878 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, March 19, 1878

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Pennsylvania. SAVINGS BANK OFFICERS IN JAIL. READING, March 18.-The habeas corpus in favor of the officers of the Dime Savings Bank, which has suspended was to-day refused, and the culprits held in $5,000 bail for trial.