National Savings Bank - Washington, DC

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: September 19, 1873
Location: Washington, District of Columbia (38.895, -77.036)

Metadata

Model: gpt-5-mini
Short Digest: 0e7b4ca1

Response Measures

Partial suspension

Other: Bank invoked charter provision requiring 30 days' notice for withdrawals (partial suspension).

Description

During the Sept. 1873 stringency there were runs on some Washington savings banks (Freedman's, Washington City). National Savings Bank invoked its charter provision requiring 30 days' notice of withdrawal; depositors gave notice but only a portion of amounts were actually called. The bank did not suspend and continued paying out, so this is classified as a managed run with no suspension (run_only).

Events (2)

1. September 19, 1873 Run

Cause: Macro News
Cause Details: General financial stringency and panic in September 1873 (nationwide money-market crisis and rumors), leading to heavy withdrawals and runs on local savings banks.
Measures: Invoked charter provision requiring depositors to give 30 days' notice of withdrawal; accepted notices and paid out only as notices expired (limiting immediate withdrawals).
Newspaper Excerpt: The National Savings Bank having taken advantage of the provision of their charter requiring depositors to give thirty days notice of their withdrawal, there is comparatively very little excitement in the neighborhood of the banking houses.
Source: newspapers

2. November 3, 1873 Other

Newspaper Excerpt: The notices given by depositors of the National Savings bank have expired, and up to Saturday but about one-quarter of the amount involved in the notices had been called for. This is considered an excellent indication, and a sure sign that public confidence has been to a great extent restored. The Freedmen's Savings bank required sixty days' notice, which does not expire until a month hence.
Source: newspapers

Newspaper Articles (3)

1. September 20, 1873 The Wheeling Daily Intelligencer Wheeling, WV

Article from The Wheeling Daily Intelligencer, September 20, 1873

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Article Text

Stocks advanced very decided on the rumor, originating in the Stock Exchange, that President Grant had ordered Secretary Richardson to place ten million in New York banks, and on this refusal was removed and Secretary Delano was made Secretary of the Treasury. At 2:30 stocks were falling off rapidly. RUN ON BANKS AT WASHINGTON. WASHINGTON, Sept. 19.-There was a run-on the Freedman's Savings Bank to. day. The officers say there is not the slightest danger, and all demands will be promptly met. The National Savings Bank having taken akvantage of the provision of their charter requiring depositors to give thirty days notice of their withdrawal, there is comparatively very little excitement in the neighborhood of the banking houses. Runs are only upon the Fredman's Sav. ings and the Washington City Savings Bank. RUMORS OF GOVERNMENT AID. NEW YORK, Sept. 19.-The latest rumor on the street is that the government will come to the rescue to morrow by buying $5,000,000 worth of: bonds. The government aid must comain a more decided shape to be of any effect. MEETING OF BANK PRESIDENTS. NEW YORK, Sept 19.-The Bank Pres. idents met at the clearing house to arrange measures to facilitate the clearing house operations in case there should be a run upon any bank. No trouble is anticipated at any of the banks, but a temporary use of the loan certificates at the clearing house, will prevent the forma. tion of any bank panic. A committee was

2. September 29, 1873 Evening Star Washington, DC

Article from Evening Star, September 29, 1873

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Article Text

The President wrote and forwarded the fol lowing letter yesterday MANSION. WASHINGTON. D. C September 1873 H.B. GENTLEMEN In response to the views you have communicated to me touching the present stringency in the money market of the country. and the necessary steps to restore confidence and legitimate trade and commerce, I have the honor to communicate the following The government is desirous of doing all in its power to relieve the present unsettled condition of business affairs, which is holding back the immense resources of the country now awaiting transportation to the seaboard and a market Confidence on the part of the people is the first thing needed to relieve this condition and to avert the threatened destruction of business with its accompanying disasters to all classes or the people. reestablish this feeling the govat ernment is willi to take all legal isures its command; but evident that no government efforts will avail without the active coope. ration of the banks and moneyed corporations of the country With the fourteen millions already paid out in the purchase of the governn indebtedness and the withdr wal of their large deposits from the Treasury the banks are now strong enough a to adopt a liberal policy on their part, and by generous system of discounts to sustain the business interestso the country Should such a course be pursued the forty four millions reserve will be considered as money in the Treasury to meet the demands of the public necessity as the circumstances of the country may require. Close attention will be given to the course pursued by those who have the means at their command rendering all the aid necessary to restore trade to its proper channels and condition, with view of trengthening the hands of those who carry out the measures above indicated. Orders have already been is sued for the prepayment of the interest accru S. GRANT. ing in November The Condition of the Treasury. The following was the financial exhibit of the Treasury department at the close of business on Saturday Currency, (less amount paid for bonds purchased in New York and not report ed,) special deposit of legal ten ders for redemption of certificates of deposit including coin certificates, legal outstanding ders, $355,000,000. The above exhibits de crease from statement the in Friday special deposit of legal tenders for redemption of tificates of deposit of which was drawn from the sub-treasury in New York by holders of these certificates The above amount added to the legal tender paid out by the sub treasurer in the purchase bonde makes total of legal tenders put in circulation in New York ring the past five or six days which. to How in proper channels claimed, would have great measure relieved the present financial embarrassment ATING THE INTEREST The Secretary of the not for the present issue a for the sale gold and the pur chase of bonds nited States coupons maturing will be paid on and after to-day upon rebate of interest the rate of six per cent per annum The amount of interest is$14,600,000 coin. in NEW YORK VIEW OF THE MATTER A dispatch from New York says this action of the Secretary will bring into the market: but as most of these bonds are held in Europe, the relief from them will not be felt for some time. The amount which will result from the payment of interest on registered bonds will be about $4,000,000. The registered bonds are nearly all held in this country Action of the Washington Bankers. AN ASSOCIATION ORGANIZED At an adjourned meeting of the bank direc tors and bankers of the city of Washington, held yesterday at the National Metropolitan bank. the following resolutions were adopted, and the rules appended prescribed Resolved, That view of the present uncalled for and unnecessary demands upon the banks and bankers of this District for currency for other than business purposes and for shipment to other cities. a very large amount having al ready been drawn, and in view of the fact that without exception all the large cities of the United States have adopted similar precaution ary measures the representatives of the banks and business men of the District of Columbia having full confidence in the sound condition of their financial have united for indi vidual support and pledge themselv yes to the following line of policy ving be for the best inter est of the community and of the interest which they represent Resolve That the banks and bankers of the form District into association an which shall elect controlling committe of six into whose hands any bank or bankers of the Association shall have the right to deposit curities, collateral the value whereof is to be affixed by said committee, as follows viz Bonds at par; promissory notes at 50 per cent of their value; other securities at value to be determined by the committee; and against the said affixed value each bank or banker placing such collateral in the hands of said committee may issue certificates and certify checks which, upon being presented and stamped accepted by said committee, shall be received by all bank and bankers of the association for their ful value in payment of all maturing notes or other claims. Resolved, That this arrangement shall go into effect on the 29th of September, and continue until November 1, 1873. REGULATIONS ADOPTED The controling committee have adopted the following rules and regulations for the associ ated banks of the city of Washi ngton, D. C. The banks and bankers of the association may certify checks for their customers in lieu pay ing currency for all deposits held by them to this date, but will open special accounts of currency payable in currency The certified checks will be received by the different banks and bankers of the association on deposit and in payment of notes due them Which certified checks shall be redeemed by the parties certifying in loan certificates issued by the controling committee upon deposits of collateral security asagreed upon at their daily meetings. Each bank will regulate its own exchanges with other cities. The controling committee will meet at the office of the Safe Deposit company daily at one o'clock p. m for settlement with banks of the association The treasurer William Stickney will have custody of all securities deposited by the associated banks J W Thom pson. for National Metropolitan Bank: J.C. McKelden. for Second National Bank: William Stickney for National Savings Bank L J. Davis, for L Johnson & Co Geo W Stickney for Freedman's Savings Bank; Jno Hitz. for German American Savings Bank, Controling Committee HOW THIS ACTION IS RECEIVED TO-DAY The issuing of certified checks by the banks of the city, who formed a clearing house associa ation yesterday, is generally received by those transacting business as a wise precautionary measure. Mr Stickney was at his office during the day receiving collateral securities from the banks who have entered the association. There pretty lively demand for currency upon the banks and banking-houses outside of the association to-day, as the demand is necessarily concentrated upon them. A Better Feeling in Washington To. Day A much better feeling prevails in Washington than on Saturday last, and the general opinion among bankers and business men is that the excitement is virtually over, and that in a few days business will be transacted as usual The action of the associated banks of the city o Washington," relative to the suspension of cur rency payments and the substitution of certified checks. has had RO perceptible effect on the business of the banks Several of the banks

3. November 3, 1873 Evening Star Washington, DC

Article from Evening Star, November 3, 1873

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Article Text

SPEAKING OF SILVER COIN, he says:-It is quite certain that the depreciation of silver and appreciation of United States currency will before long enable the government to purchase silver bullion with gold, coin it on its own account, and pay out the resulting silver coins at their nominal value. At the present rate for silver and premium on gold the operation would net the Treasury about 10 per cent. This plan could not, it is believed. do injury to any interest, but would be productive of much benefit to the precious metal mining interests and business of the country at large. and should be adhered to until specie payments have been resumed on a substa ntial basis. From the most reliable data obtainable, the AMOUNT OF GOLD AND SILVER COIN IN THE COUNTRY is estimated at $135,000,000, and subsidiary silver $5,000,000. The silver coin is principally in circulation in California, Oregon, Nevada, Idaho, Arizona and Texas. The increase to the stock of coin in the country has been at a very fair rate since the 1st of April last, and the indications are that, although there may be occa. sional exportations, it will gradually go on until an amount sufficient to enable the country to safely resume specie payment is reached. This much desired result, however, will depend upon conditions that cannot here be discussed. THE TRADE DOLLAR OF SILVER authorized by the coinage act, is designed expressly for export, and has no fixed value as compared with gold. It may eventually, if the price of silver relative to gold falls sufficiently, to some extent enter into home circulation, but its export value will always be in excess of that of the subsidiary silver coin. The issue of the trade dollar was not comme nced until nearly a month after the close of the fiscal year. It has been shipped to some extent to China and Japan, but we have not as yet received any account of its reception in those empires. The report discusses at length the subject of international standards and the condition of COINAGE IN ALL EUROPEAN COUNTRIES. Interesting data has been received through our ministers abroad, and a more comprehensive exhibit made of the gold and silver market than ever before. This is the first annual report of the director. One important fact is brought to light, viz: that the gold coinage of the world is less by three hundred and fifty million dollars than the tables accepted as reliable set forth. Heretofore the value of gold bars has been counted twice-once as gold actually turned out, and once as the actual gold value. The Financial Situation in This City. The clearing-hou association meets only semi-weekly now. and its business has become very small, the amount at the last meeting being but $800. It has been agreed to continue the arrangement until the present panicky feeling dies out, in order that the banks of the association may avail themselves of the privilege of issuing certified checks in case they should deem it necessary. It is a precautionary movement, and is taken to protect the depositors of banks in the association. All of the banks are paying out greenbacks again. but none of them deem it advisable, under present circumstances, to do anything in the way of discounting. On Saturday week the debtor banks of the as. sociation paid the creditor banks one-fourth of their indebtedness, and will pay another fourth on Wednesday of the present week. The notices given by depositors of the National Savings bank have expired, and up to Saturday but about one-quarter of the amount involved in the notices had been called for. This is consid ered an excellent indication, and a sure sign that public confidence has been to a great extent restored. The Freedmen's Savings bank required sixty days' notice, which does not expire until a month hence.