20858. Union & Planters Bank (Memphis, TN)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
September 25, 1873
Location
Memphis, Tennessee (35.150, -90.049)

Metadata

Model
gpt-5-mini
Short Digest
576ab0d7

Response Measures

Accommodated withdrawals

Description

A heavy depositor run occurred on Sept 25, 1873 (during the broader panic). The Union & Planters paid out large sums, was guarded by police, but did not suspend and remained open — receiving large deposits later the same day. Immediate trigger was news of other banks' suspensions and the New York financial panic (local contagion + macro panic); classified as 'local_banks' because the run followed suspensions of other Memphis banks.

Events (1)
1. September 25, 1873 Run
Cause
Local Banks
Cause Details
Run followed suspension/closing of other Memphis banks (First National, De Soto, Freedmen's) and spread panic from New York; depositors rushed to present checks and withdraw funds.
Measures
Paid out large sums promptly (reports of $160,000 paid out; later received about $70,000–$70,000+ deposits); stationed police to preserve order; officers had prepared currency (greenbacks) in advance.
Newspaper Excerpt
One gentleman ... for about half an hour the currency passed over the counter like a cascade, especially at the Union and Planters ... they seemed fortified behind breastworks of greenbacks, and the officers looked at the rush with imperturbable composure.
Source
newspapers

Newspaper Articles (6)
1. September 25, 1873 Public Ledger Memphis, TN
Article from Public Ledger, September 25, 1873

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Article Text

THE HEAVY RUNS. Some of the heaviest if not swiftest runs for banks were made by persons who had the lightest accounts. One gentleman broke down at the door of a bank and said he couldn't think of setting an example which might influence many depositors. He would rather take his chances than wantonly injure a bank which had furnished so many stamps to put on his checks. When pressed as to the amount of his balance, he admitted that at last accounts he had $3 17 to his credit, and had only drawn one check since. But some few large depositors thought it prudent and best to check out what they had, and for about half an hour the currency passed over the counter like a cascade, especi ally at the Union and Planters and the German National banks. But both these institutions were prepared. They seemed fortified %ehind breastworks of greenbacks, and the officers looked at the rush withimpurterbable composure. It soon became evident they were prepared for every emergency, and then the furore subsided as rapidly as it arose. Long before twelve o'clock the crowd began to disperse and disappeared in a marvel ously short space of time, leaving Madison street more dreary and listless, if possible, than ever before. Not even a group of loafers were to be seen discussing the National bank system or the resources of the Bank of England to meet such an unexpected run as this one had been.

2. September 26, 1873 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN
Article from Memphis Daily Appeal, September 26, 1873

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trade and capital that we could not but share her troubles, yet it by our bankens, who a month ago prepared for the dreaded emergency, were 80 well "fixed" as to be to they puil through, and be ready for colonseason, only postponed OD account the of the prevalence of the fever. But fever itself proved their stumbling-block When fifteen or twenty thousand people rush panie-stricken from home, pell-meil, helter-skelter, they are usually possessed of but two ideas, "money" and "safety." The first, being necessary to the continuance of the ter. becomes the essential. Our frighteaed thousands conscious of this, and with a view to fortifying themselves against any contingency, lined before their departure their pockets, and it is calculated tock with them not less than one million dollars. So large a sum as this could not be taken from Memphis without, especially at 80 critical a juncture, dangering not only the stability of our banks,but with them many of largest concerns. The knowledge of the withdrawal of so large an amount had its effect, and as the news from New York spread from day to day, feeling of in security grew, which, fed by the panicky state of the public mind in regard to the fever, at last culminated in run on Wednesday upon the First national bank, one of the best conducted and most liberal institutions in the Union. This was sustained to the extent of paying cut sixty thousand dollare, but, on opening the doors yesterday and finding the run .still likely to continue, they were closed again and suspension announce by bulletin. This was the signal for an excitement without parallel bein the history of Memphis. Men came frantie, and flew, first to the Defoto, which soon followed the example of the First national, then to the German, and next to the Planters and Union bank The latter two passed the or deal of fire triumphantly, and stand stronger than ever in the esteem of the public. With the German nation- short the run was of but duration. al The depositors SOOL returned to reason, and the result was restorawithtion of nearly all the accounts drawn. Not 80 with the Union and Planters. Her depositors were determined to know by practical test how thing" worked, and clamored for their money until one hundred and sixty thousand dollars was paid out. This was done as promptly as the nimble fingers of Mr. Omberg, the payingteller, could count the money, and was accomplished by one o'clock, when there remained but one anxious deposi- Men tor. Confidence was restored. had recovered their reason, and the result was that before the close of day seventy thousand dolla. of deposits of were entered to the credit of panicky depositors of the morning. Reid, in the trying emergency, had sustaining helpo Mr. Greenlaw (a host in himself and other directors, the presence of whom no doubt contributed much cur's the panic. And thus ended the most exciting day in our commercial annals. While we deeply lament, as what right-thinking man will not, the suspension of two banks hitherto regarded among our staunchest, we are thankful that the storm has swept over and done no more damage. To-day expect to see the money pouring into the vaults of our banks again, and Unbusiness essame its proper course. der no circumstances can we suffer long from the terrible disaster which is racking the strength of the north. Poor, we have but few debts, and staple products being in demand ever the globe, we will not be troubled about realizing on it; and since calculate our harvest has already begun we can an abundance of money within very short time. Therefore, continuance of the panie here is wholly with- trust ground, and we out our good people will not paralize business by temporarily withdrawing and hoarding money needed for the purposes of commerce meand trade. "Without the circulating dium and without confidence, business must cease, and with it go the bread It of thousands dependent on work alone. is, therefore, manifestly the part of wisdom for the people to stand by the banks and sus tain them by their deposits rather eripple them by their withdrawal. sides, the banks fully prepared for worst, and will pay, if necessary, every cent due their depositors. There is, therefore, no use, indeed, it would amount most to criminality to attempt to continue panie which can only result direst disasters every branch of trade. We have suffered and are suffering enough, God knows. Do not let to our burdens causeless and fruit inless run upon the banking stitutions that remain to us, and which have proven their title to our highest confidence by the promptnets with which they responded to all mands upon them yesterday. To the stockholders and depositors of officers, First national and the Dethe banks we extend again Soto The first has been indeed "first" regrets. ever since its establishment in every good work. It has done an unamount of good in Memphis, told officers have, as they deserve, its and heartfelt sympathy of deep community. To Mr. Elder and-his brothers of the DeSoto there will come, too, large measure of regret, such deserves after a long and useful be life, most of it spent in the city which from he has known in all its stages hamlet up. Both the suspended banks, instructions from the together with the Freedmen's Savings

3. September 26, 1873 Public Ledger Memphis, TN
Article from Public Ledger, September 26, 1873

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PANIC. THE The scenes of yesterday will long be remembered by all who were on Madison street in the forenoon. The closing of two leading banks was succeeded by an indiscriminate rush upon some of the others. The crowd was so great about the Union and Planters that a strong squad of police was sent to preserve order; and while the mounted members satlike videttes in frout of the curb-stone, two policemen kept order at the door. This only lasted an hour, when quiet and confidence were somewhat restored. The DeSoto Bank had made ample arrangements for all expected contingencies with a correspondent in New York, which of course were not available within the last few days. The assets of the bank are abundant, but not convertible at once into currency. The bills receivable OR hand amount to twice as much as the accounts of depositors, yet these resources amounted to nothing when sight exchange in New York was worth no more practically than 80 much brown paper. The bank is an old institution, with a charter giving extraordinary exemptions and privileges, which were extended for a term of years by the last Legislature. It seems to have been conducted within the rules of safe and legitimate banking at all times. The suspension resulted from a want of currency to weather the storm, which is sweeping all over the country. It originated in New York, and the closing of the doors was deemed more prudent while some funds yet remained in hand than to wait until every dollar was exhausted and then be compelled to suspend. We can say of this bank, as of others, that if the country does not go to ruin and everybody fail, it can resume at no distant day on a secure basis. If, however, everything goes to pieces and "bills receivable should still go a begging, there is no hope. No one can see far into the future, nor could the most clear-headed financier anticipate the present erisis three weeks ago. The unfortunate depositors of closed banks will have to await developments as best they can. The country seems to be going to the bad as fast as the most vindictive John Bull could desire. But we have a faint glinting of hope that after this disaster will follow reform and prudence, and that we will have less credit and more economy in private as well 8R public affairs, when people will learn to live within their incomes and be satisfied with safe, regular business rather than rush into all manner of reckless speculations. The productions of the country are the real basis of all values, and not fictitious issues of paper money, to be redeemed, if ever, by the sweat of toiling millions who pay all the taxes at last The banks in this city which survived yesterday's shock will probably stand any test that may be made of their stability. The Union and Planters' Bank proved itseli to be a solid institution, and has the confidence of moneyed men, for at the bight of the excitement yesterday they received large deposits voluntarily made. The total amount checked out was about $1,50,000, but $70,000 was deposited before the bank closed. Ample arrangements, which began many days ago, have been made for any contingency that may arise. There is not likely to be such a run again, but should it recur, the bank is believed to be able to pay every dollar that can be demanded, and

4. September 26, 1873 New-York Tribune New York, NY
Article from New-York Tribune, September 26, 1873

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BRIGHTER PROSPECTS AT PITTABURGH PITTSBURGH, Sept. 25.-It is learned from authentic sources that $350,000 in greenbacks arrived here to-day from New-York and Washington, and other large sums are on the way, which are expected to arrive to-morrow, and there is a hope that the greenback stringency will be over by Saturday morning, if not sooner. The entire outlook is brighter, and there is reason for saying that the temporary derangement of financial houses here wild be of brief duration. The run on the savings banks has stopped, and no new move ment of the banks is threatened. The Security Trust Company is making arrangements to resume. The of ficers say that they expect to open by Monday next. The Lawrence Savings Bank, which suspended yesterday, will resume in a few days. IN TENNESSEE. SUSPENSION OF THREE MEMPHIS BANKS. MEMPHIS, Sept. 25.-There is great excitement in this city on account of the suspension of banks, which is due to inability to realize on their securities in New-York. The First National and the Do Sote banks have closed to-day. and it is rumored that the Freedmen's Savings and Trust Company has also suspended. There is a heavy run on the other banks. Itisexpected, however, that all the suspended banks will reopen after the panic subsides. 6. p.m.-The excitement this morning over the suspension of the First National Bank was intense. Crowds gathered in front of the bank building in Madison-st. and attempted to break in the iron doors and shutters but they were scattered by the police. The liabilities of this bank are about $400,000, of which $350,000 is due depositors. Among its assets are overdrafts of solvent firms amounting to nearly $100,000. It is believed the bank can resume if able to realize on its assets. An effort is making to have W. W. Thatcher, its own cashier, appointed receiver. The excitement over the suspension of the First National caused a heavy run on the De Soto Bank, and at 101 its doors were closed. Its liabilities are about $150,000, and its officers claim that their assets are ample to meet all demands if they can realize on them. The State National Bank had an abundance of currency, and weathered the storm to-day. The Union and Planters' also endured a heavy run without flinching, as did also the German National, the Bank of Commerce, and the Fourth National. The Freedmen's Bank was compelled to suspend. The check on business is complete, and the planters will necessarily be greatly inconvenienced, as a failure to sell cotton and receive currency and capital will render laborers dissatisfied and unruly. Financial affairs are the all-engrossing subjects of conversation, and little attention is paid to the yellow fever, which is surely abating. PARTIAL SUSPENSION OF THE NASHVILLE BANKS. NASHVILLE, Sept. 25.-The National Banks of this city, four in number, in view of the present state of financial affairs have agreed to suspend currency payments on all balances exceeding $200. The Board of Trade, at a large and full meeting [to-day unanimously approved of the course of the banks and adopted a resolution that merchants and business men would continue to deposit with and aid the banks by every means in their power. A general good feeling prevails among business men, and there are no symptoms of a panic.

5. September 26, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, September 26, 1873

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MEMPHIS. TENN. Special Dispatch to The Chicago Tribune. MEMPHIS, Sept. 25.-The yellow jack panio was forced to give way to-day, to & certain extent, by the almost instantaneous collapse or suspension of the prominent banks. When the first bank-the Freedmen's Savings and Trust Company-bung out their suspending card, the report about the street was that every National Bank in the city had failed, and this report spread over the city. A most alarming DEPRESSION WAS FELT IN COTTON CIRCLES, and since the bulk of Eastern exchange Was most interested, middlings, which only a few days ago had brought 18 centa, lapeed to 14 cents. More than one of our enterprising merchants wore long faces as the report of bank failures continued spreading, casting a gloom over the feelings of the largest cotton, grocery, and commission merchants, and also over the humbler homes of the mechanic and the cottage of the laborer. At this time A GREAT RUSH to Madison street was made; and by half-past 10 o'clock over 1,500 persons were collected along the sidewalks, in front of the bank buildings on the thoroughfare. The corner of Main and Madison streets was thronged by an anxious crowd, every one talking about drafts, deposits, assets, exchange, liabilities, honesty, etc. The true cause of all this excitement was apparent, over half a million dollars owned by parties in Memphis was now locked in the safes of these banks. By looking to the door front of THE FIRST NATIONAL BANK, was to be seen a placard stating that this bank had auspended. The eager looks of the excited crowd also observed a similar placard stating that THE DE SOTO BANK had suspended. This necessarily increased the excitement, the fascinating intensity of which charged every casual pedestrain and enchained hundreds of loafers to the spot. The crowd was wild with excitement. From the four quarters of the city, hundreds of gentlemon were soon rushing to the Wall street of Memphis, each bearing a check of from $2,000 to $20,000. Seeing the condition of affairs, and giving credence to the wild rumor, the depositors in other banks lost no time in ponning drafts and presenting them in person for liquidation. THE EXCITEMENT WAS INDESCRIBABLE, and was worthy of the great financial convulsion in New York. The morcurial temperament of rash speculators overcame the discretion of sensible men and honest tradasmon who have never known defeat or met with embarrassment in financial relations. A mob of excited depositors made a rush upon the Union and Planters' Bank, and the most AWFUL CONFUSION over witnessed in Memphis ensued. Many persons who had never deposited & cent in any bank joined the crowd, and lent their tongues and wild looks to the excitement of the occasion. So fast, indeed, did the crowd assomble and press upon the bank, that two POLICEMEN HAD TO GUARD THE DOOR, and the persecutions to which the policemen were subjocted cannot be told in this connection. By this time tho bank officers had prepared their office for a successful fight. One by one the deposi. tora were allowed to enter. Each draft was duly honored and every check was paid. Bo the run continued until 3 o'clock in the afternoon, when the door closed as usual, the public being given to understand they would OPEN AGAIN IN THE MOUNING. They may, but when their country depositors learn of the other suspensions, the run will be even greator than that of to-day. The Gorman National was another that withstood the pressure, paying out thirty or forty thousand dollars during the day. The assets of this bank largely exceeded its liabilities from every conceivable source, and no interruptions will rosuit to its regular business or commercial relations. When we remember THE CUTTON INTERESTS or AEMPHIS amount to $37,500,000, out of the city's latest transnotions, and a trade of $100,000,000, we may all readily

6. September 27, 1873 The Rutland Daily Globe Rutland, VT
Article from The Rutland Daily Globe, September 27, 1873

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SUSPENSIONS IN MEMPHIS. MEMPHIS, Tenn., Sept. 26. It was rumored last night that one or two of the smaller banks were involved, and other failures will occur to-morrow. Suspensions are simply from want of currency, and both the suspended banks claim assets largely in excess of liabilities. The collections and general business of two banks were turned over to the State Na. tional bank, which suffered no run, and is believed to be solyent. The run on the Union and Planters' bank closed at 1 o'clock, after which it received deposits amounting to nearly two-thirds of the sum drawn out. IN SAVANNAH SAVANSAH. Sept. 26. The chamber of commerce held an adjourned meeting at 10 o'clock last night to receive the report of its committee, who re. ported the following: Resolved. That the banks and banking Savannah be recommended to demands of be as the of houses cations meet the of to used, depositors necessities by certifiholders may require, until temporary difficulties be removed. and until exchange can be received to move the crops. THE FAILURE OF CHICAGO BANKA. CHICAGO, Sept. 26. The failure of several national banks here to-day had the effect of bringing operations on 'Change to nearly a standstill, and the action of the board in passing resolutions and suspending rules in refcrence to option of sales so as to prohibit any further dealings of that sort until the panic has subsided, brought everything to a full stop, except an occasional settlement of trade or a still rarer case of operation. CABINET CONSULTATION ON THE FINANCIAL TEOUBLES. WASHINGTON, Sept. 26. There was no regular meeting of the Cabinet to-day, only three members being in town-Sceretaries Delano Richardson, and Attorney General Williams. The two in latter called about noon, and were conwith the President an to the financial now sultation in regard troubles nearly hour disturbing the country. After a full discussion. it was determined that the policy of the government could not be changed, and will therefore remain as announced last evening. LONDON, Sept. 26. LONDON STOCK EXCHANGE. General opinion of the stock exchange is that the rate of discount of the bank of England will be advanced at the meeting of the directors on Thursday next or before that day. The immense withdrawals of bullion from the Bank of England in consequence of unfavorable rumors from New York is apparently the cause of the depression in the market for American securities Eric railway shares 410. Paris rentes 56 franes. 20 centimes. ACTION OF THE CHICAGO BOARD OF TRADE. CHICAGO, III., Aug. 26. The directors of the Board of Trade, at a full meeting this morning, passed the following resolution, the reading of which, to the Board of Trade, was greeted with applause and unanimously approved board Resolved-That authorizing the all Board the rules of Directors of the to consider and act on complaints, are brsed on contracts for the delivery of property, in future, made between passage of this resolution and further order association : and further, that the board shall not entertain complaints for violation of contracts claimed to have been closed darthe time indicated. by reason of nonof provided deposit ing Morgin, that this reso- to lution shall is no case be held to apply any trades made in the settlement of exist. ing contracts. IN GOOD CONEITION. MILWAUKEE, Sept. 26. The financial situation is unchanged