21819. Mechanics Savings Bank (Richmond, VA)

Bank Information

Episode Type
Run Only
Bank Type
savings bank
Start Date
October 28, 1912
Location
Richmond, Virginia (37.554, -77.460)

Metadata

Model
gpt-5-mini
Short Digest
a31586e7

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health, Books examined

Description

A short, malicious rumor started after a carpenter was refused a check-cashing after hours (Oct 28, 1912). The run drained about $15–16k over Oct 30–31 but was quelled quickly; funds were redeposited and the bank remained open with backing from American National and First National and affirmation by State Bank Examiner C.C. Barksdale.

Events (1)

1. October 28, 1912 Run
Cause
Rumor Or Misinformation
Cause Details
A carpenter (J. S. Stewart) attempted to cash a $10.85 check after banking hours, was refused or delayed, then spread the false report that the bank was closed/broke, triggering withdrawals.
Random Run
Yes
Random Run Snippet
Man circulated false rumor bank had failed after refused check
Measures
State Bank Examiner C.C. Barksdale examined books and publicly affirmed solvency; American National and First National Banks sent/pledged funds; officers paid depositors and reassured customers; many deposits later returned.
Newspaper Excerpt
An ignorant negro... started a run on the Mechanics Savings bank Wednesday by circulating the rumor that the institution had failed.
Source
newspapers

Newspaper Articles (10)

Article from The Richmond Virginian, November 1, 1912

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took a generous supply of funds to aid the negro bank if the run assumed serious proportions. Mr. Parker explained that while the bank could not become a member of the clearing house association it operates under its rules, clearing through the American National bank, in which it has securities at all times sufficient to cover all possible transactions. In other words, the big national institution is virtually the sponsor of the Mechanics bank, and this fact is ample assurance of its soundness. At noon yesterday all signs of the run were over. Nervous depositors were met by Messrs. Barksdale and Parker and assured that their money was safe and could be paid with interest at any time. With few exceptions, the only checks drawn yesterday were used for business purposes and not caused by a panic. Mr. Barksdale declared yesterday afternoon that the bank is entirely solvent and in fine shape. There is $150,000 available in ready cash in its vaults, everything is in perfect order, and the story which caused the run, which seems to have been through malice, is utterly without foundation. He took occasion to compliment the officers and directors of the bank on their handsome building and vault and the safe and conservative banking methods, which, he declared, would put to shame some of the larger banks of the State.


Article from The Richmond Virginian, November 1, 1912

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NERVOUS NEGROES HEED WILD RUMOR MALICIOUS REPORT CAUSES SMALL RUN ON THE MECHANICS SAVINGS BANK. An ignorant negro, either nettled by the refusal of the cashier to cash a check for him after banking hours, or mistaking the announcement of the official to mean that the bank had closed for good, started a run on the Mechanics Savings bank Wednesday by circulating the rumor that the institution had failed. Panic-stricken negroes rushed to the bank one by one and drew out their savings, the sum of $11,000 having been withdrawn during the day and $3,000 being deposited by the cooler-headed of the race in the course of the day's business. State Bank Examiner C. C. Barksdale, hearing the rumor, went to the morning and made an examination of its books. Later he declared the institution to be safe and sound and authorized President John Mitchell to refer any doubters to him. With Examiner Barksdale at the bank yesterday to quiet the rumors and restore confidence was Auditor Stafford H. Parker, of the American National bank, and with him he


Article from The Times Dispatch, November 1, 1912

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BANK DEPOSITORS AGAIN CONFIDENT Two Days' Run on Mechanics' Savings Bank Stopped Yesterday. After a run, which continued from Tuesday afternoon until yesterday, and during which more than $16,000 were withdrawn from the vaults of the Mechanics' Savings Bank, at 214 East Clay Street, John Mitchell, Jr., president of the colored institution, said last night that confidence had been restored, and that the bank would be able to meet any demands that might be made. The drain was occasioned by the refusal of W. T. Davis, paying teller of the bank, to cash a check amounting to $10.85 for J. S. Stewart, a carpenter, who applied for his money after banking hours on Monday afternoon. When Stewart returned Tuesday morning with his check, it was promptly cashed, but in the mean time he had spread the tidings around that the Mechanies' Savings Bank was closed and that he could not get his money. The news gathered headway as it spread, and 123 persons withdrew their deposits on Tuesday, followed by an almost equal number yesterday. The officials of the American National Bank, through which the Mechanics' Savings Bank clears, came to the rescue with funds yesterday. and the sum of $26,000 was sent up to 214 East Clay Street to meet the demands of the fearful depositors. With this amount on hand, and with the assurances of Stafford H. Parker, auditor of the American National Bank, that more would be furnished if needed, the excitement began to subside. frhe First National Bank, which is also a correspondent of the Mechanics' Savings Bank, also sent W. M. Addison up with promises of support. State Bank Examiner C. C. Barksdale, who had recently been over the books of the establishment, gave out a statement affirming the soundness of its finances. Mr. Barksdale again inspected the accounts of the bank and pronounced them accurate. About $3,000 were deposited Tuesday despite the lack of confidence, and yesterday numerous creditors, who came to remove their money. left without doing so, when told of the backing and support the bank had. No further trouble is anticipated.


Article from The Times Dispatch, November 2, 1912

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MONEY COMING BACK Frightened Depositors of the Mechantes' Savings Bank Regain Confidence. A number of depositors who withdrew their funds from the Mechanics' Savings Bank during the three days when the recent run was in progress came back to the bank's place of bustness at 214 East Clay Street yesterday and redeposited their money. Officials of the bank reckoned last night that about $6,000, or three-eights of the total amount withdrawn during the stringency, was returned to its vaults. In the end the bank expects the entire amount to be returned to their custody. No effort was made to continue the drain on its resources yesterday, as the assurances of the American National Bank and of the First National Bank had a quieting effect on the fears of the depositors. Business in the banking room of the institution went on much as usual throughout the day yesterday. The run on the Mechanics' Savings Bank had no effect on the St. Luke's Penny Savings Bank, another colored institution. located at First and Marshall Streets. Maggie L Walker, president of the St. Luke's Bank, felt gratified last night that the institution of which she is head was not affected by the alarm. Business with the St. Luke's Bank was even better during the past week than ordinarily might be expected. The run on the Mechanics' Savings Bank was occasioned by the refusal to cash a check after banking hours.


Article from The Richmond Virginian, November 3, 1912

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The Run Over Now. Practically all of the money W thdrawn from the Mechanics' Savings bank during the "run" hv scared denos tors the ather days found Its way back to the vaults of the institution, and the "run" is now a matter of history. It was started it W " be recalled by the either the iznorant 0" maHelous tale of a negro who tried to have a check cashed after banking hours.


Article from Pioneer Press, November 30, 1912

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JOHN MITCHELL'S BANK EASILY WITHSTANDS FOOL. ISH "RUN." Richmond, Va.-The "run" on the Mechanics' Savings Bank, recently, fully tested the financial sounduess of that institution, J.S. Stewart appeared st the bank to draw out $10.85, Oct. 28. As it was after banking sours, W. T. Davis, the paying teller, told our to come back the next day, which he did. In the meantime it appears that the bank could not meet its demande, and a "run" began. President John Michell, jr., directed Cashier Wynst to pay all persons who demanded their money, and piles of money greeted the caze of thoms who came after their deposits. The American National and the First National Banks offered President Mitchell aid that he might need, aud pretty soon a truck filled with all kinds of money drew up before the door. The aid was not needed, however, as the bank's reserve was sufficient for all needs. On Oct. 30 and 31, $15.407 was withdrawn, but on Nov. 1 confidence seemed to have been restored " over $5.000 was redeposited. while $2,000 more came in on Nov. 2. and it was only a short time thereafter antil business was moving along in iss usual way at John Mitchell, Jr's. palatial banking house. When State Banking Commissioner Bark-dale heard there was a run on the bank be stationed himself In the bank in order to assure all depositors that the institution W&S perfecily rolvent. Tbe Mechanics Bank is a member of the local Clearing House Association and observed the rules lsid down by the association. It is run on the most up-to-date lines, and is caplsalized at $100,000. It owne the new $50,000 four story store and office building, It built, and occupies part of, renting the remainder. The Bank's fixtures 0081 $15,000. There are 2,000 depositors and 350 stockbolders.


Article from Iowa State Bystander, December 13, 1912

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AFRO-AMERICAN CULLINGS The negro in business has b Most men are, by nature, knaves: making unusual progress. In 1 and left to their own devices, will the American negro. engaged in fa exhibit the characters within them. ing. merchandising. real estate. ma Paths of crookedness are the most facturing. lumbering. insurance, pr often trodden, because the task seems ing and publishing. engineering easier, and greater benefits to be debanking, contributed over $700,000. rived from its acceptance. The acts to the wealth of the nation. It may be the result of human frailties: been aptly said that "the race but they often arise from a studied effort on the part of many to evade ates admirably: It gets left in the the obligations which should rectify tribution." The problem of the gro in business is this: How to ma conduct and control individual lives. tome of the greatest evils, by which the raw material produced by him society is afflicted. spring up from the the end of his effort, but the basis : his individual activity. Through source of base chicanery nursing its beginning in sordid hearts. In busisistence. Initiative and cooperati thousands of negro men and won ness as well as professional careers, It is the duty of every one to protect in all parts of the United States h developed small business ventu his reputation; but, in order to accominto substantial business enterpris plish it, he must, necessarily be They have saved and invested mot particular as to the choice of individuals with whom he has to dcal. Very carefully they have put into th everyday business life the wise 8 often. confidence, implicity placed. is fearfully abused; and he, by whom It gestion given them by Dr. Washi ton and other men who are vitally is given, suffers for his folly through terested in the race's welfare. To the injury he receives. At all times. in all place and in every walk of life, the outlook for the negro in busin there are schemers of every ilk, whose is not only bright. but actually ins ing. Negro men and women inclinations prompt to the commission of unholy deeds; nor are they quietly getting a firm hold on the sentials of success in businessashamed to face their neighbors and buying of homes. the extension pose in the garb of honesty. Some O1 the draw-backs which hamper usebusiness, the opening of factories. establishment of banks and the fulness and warp efforts in attempts at progress, arise from perverted juster appreciation of commercial 1 tice. which finds itself powerless of suits. Dr. Washington has emphasi exertion where unrighteous force prethe importance of the 10.000,000 vails. Hollow professionalism. void groes in America becoming the 0 ers and users o ftheir share of of the mantle of sincerity. greatly 270,000,000 acres of unused and un damages our material welfare. places cupied land in the south and west. the stamp of infamy upon all whom declares that if white men can est It touches and tramples upon the blessings which, otherwise utilized. lish and operate saw mills, coal mir would create a great reward. Life. brick yards. lime kilns. and other character and reputation are often terprises so as to secure wealth happiness. he can see no reason . dependent upon the manner in which the negro should not engage in sim we improve our opportunities. whether it serves us well or 111. Path-ways work and reap some of the bene which come to those who own. de of life lead through grave entanglements and are replete with errors: op. manufacture. and trade in the ural resources of the country. yet. they sometimes prove beneficial declares that in at least 25 places to those who are caught therein. If the south and west negroes may bu they serve as correctives to future towns and cities similar to Mo aims. In search of necessities for sustenance, our wants multiply in a Bayou in Mississippi and Boley in lahoma. To carry on this consti ratio greater than our needs: and tive work negro men and women fr covetousness steps in to take posses. sion whenever chance presents. Even the colleges and universities are ne ed. To increase the business stren in the advanced stage of civilization. and influence of negroes. men m there lingers a tinge of savagery. organize. locally. in the state. and which that man, unchecked by the the nation. By the side of the tea hand of authority. would revert to his er and the minister, there must sta primitive justice. and trust his fortune to the survival of the fittest. Pretenin helpful relation the independ farmer. the real estate owner. sions. wielding deceptive influences, mislead the unwary: and. sometimes. manufacturer. the merchant and banker. wisdom itself is misled by the glare. Falsehood is often mistaken for truth: There are places in the south tod and demons don the garb of angels according to Dr. Washington. for 5 additional negro dry goods sto when they study to deceive. These are 8.000 grocery stores. 3,500 d channels through which many struggle stores. 2,000 shoe stores. 1,550 for renown; but distinction, thus oblinery stores. and 2,000 negro bar tained. is a lasting curse. It is sel"Develonmen and activity in all th fishness but selfdenial that prompts lines," according to Dr. Washingt the activity of noble men in behalf of "does not mean that we are to their fellows: for true greatness is commercialized as a race -to be m accorded in proportion to the good ly breadwinners. hewers of we performed in the interest of humanity and drawers of water. It means t Get while you can, is the motto of we shall be producers of bread. 0 greed. no matter whom it destroys: ers of bread. manufacturers of bre judgment as well as common sense dealers in bread. and that we sl is questioned when the immoderate gather wealth from the bread b Just for gain is permitted to usurp the ness. which can be turned into position of honest deal. These are highest and best things of life. lessons which should be considered by are to be owners and users of WOOD the negro race particularly: because a way that will bring to us happing at the very outset of its career. shortusefulnes and prosperity." comings of any description are more injurious to its prestige than to that There are 80 many people willing of the opposite race whose advantages do things, but few actually set are greater. Let the Negro deal as work. he would be dealt with; apply to self the Golden Rule as he would do to The man who gets lonesome m others, and the steeps which now conhave mighty little imagination. front him would be easier to scale. There was a "run" on the MechanThe gamb'ers of New York app ic's Saving bank of Richmond. Val. to be convinced that dead men recently, but instead of going into the no tales on them or other police all air. President John Mitchell. Jr.. went to the district attorney. SO the S down to friendly white banks and got posed tattlers are murdered at a cartload of money and piled it upon psychological moment. as Rosent his cashier's counter. with order to was. Big Jack Zelig went out t pay every depositor that demanded way not long ago shot down in br his money. The "run" did not get day light as a beast would be. far after the depositors were conwas a bad sort. and the city is the 1 vinced that their money was safe in ter for his taking off. New York the bank. The officers of two white serves and pays enough for the b banks stood near Mr. Mitchell and and cleanest notice service. but the cartload of money as the deposiseems impossible to get what It n tors lined up. to the window. The for. The average negro in New Y "run" was started by a man who has no reason whatever to think V wanted a check cashed after bank of the police. as he is generally hours: the "run" was stopped by the garded 38 a suspicious person. W president of the bank who was ready out regard to his character or to pay dollar for dollar on demand. pearance. We congratulate Mr. Mitchell. When negro bankers and business men genThat the percentage of negro no erally stand up to their obligations. lation of the national capital as they are learning to do it. they will creased during the decade betwe gain more and more the confidence of 1900 and 1910 is shown in a bulle their own people and have plenty of which has just been published bv white people to back them up in times census bureau. In 1900. 31.1 per c of trouble.-New York Age. of the population of Washington a colored. while two vears ago this n Procrastination sometimes saves centage had been reduced to 28.5. man from making a fool of himself. Bridge whist is not the safest briThere are five cities in the United upon which to trust the housekeep


Article from The Colorado Statesman, December 14, 1912

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them. exhibit the crookedness characters are within task the seems most often Paths trodden, of greater because benefits the to The be acts deeasier, and acceptance. frailties: rived from its result of human from a studied be the evade may but they the often part arise of many should to rectify effort on which individual lives. the obligations and control evils. by which the conduct greatest from of Some afflicted, nursing society base In source of is the sordid chicanery spring hearts. up careers, busi- its beginning well in as professional one to protect ness as duty of every to accom- be his it is reputation; the but, in necessarily, order individplish it, he as to must, the choice to deal. of Very particular with whom he implicity has placed, is it often, uals fearfully confidence, abused: for and his he, folly by whom through times. given, suffers receives. At all of life, is injury he every walk whose in all place of every are prompt to are inclinations the there schemers and in nor the ilk, commis- they and unholy deeds; neighbors sion of to face their of honesty. Some useashamed pose the in draw-backs the garb efforts which hamper in attempts jusor and warp from perverted at progress, itself where fulness arise powerless pre- of which force exertion tice, Hollow finds unrighteous sincerity, void vails. of places of the mantle material welfare, all whom damages our infamy upon the the it touches stamp of and tramples otherwise upon utilized, Life, blessings which, a great reward. are often would create reputation in which upon the our dependent character and opportunities.th.ways manner ill. whether it we serves improve lead us through well or grave with entangle- errors: ments yet, of life they and who sometimes are are replete caught prove therein, to beneficial future if to those serve as correctives of necessities in for aims. they In search our wants multiply needs; and a sustenance. greater than our to take possession whenever stage of covetousness ratio steps chance in presents. civilization. Even sion advanced of savagery, in there the lingers man, a tinge unchecked revert by to the his which of that authority, would trust his fortune hand primitive justice, and the fittest. influences, Pretento the survival wielding of deceptive and, sometimes. sions, unwary; the glare. mislead wisdom the itself often is misled mistaken by for angels truth: demons don the deceive. These they many and Falsehood when study is to which garb of struggle are obchannels renown; through but distinction, curse. It thus is selfor lasting prompts fishness tained, is but a selfdenial noble men that in behalf of is of greatness their the activity fellows; proportion for true to humanity. the good performed accorded in in the interest is the of motto of while you can, it destroys; no as common judgment as when the greed, Get matter well whom immoderate sense the lust is questioned for gain is permitted deal. to These usurp are position of honest should be considered because by lessons which race particularly; career, shortat the comings the negro very of outset any description of its than are to more that injurious opposite to its race prestige whose Negro advantages deal as of the greater. Let the apply to self are he would be Rule dealt as with; he would now do con- to the Golden the steeps which scale. front others, him and would be easier to was a "run" on Richmond, the Mechan- Va., ic's There Saving but bank instead of of going Jr., into went the recently, President John Mitchell. banks and got air. friendly white it upon down to of money and piled order to a cashier's that demanded his cartload depositor counter, with not get pay every The "run" did were his money. depositors in after the was safe white confar that their money of two vinced The officers Mitchell and the bank. near Mr. deposibanks stood of money as window. the The the cartload lined up to the man who tors was started by a after bank wanted the a "run" was stopped by "run" check cashed the hours:


Article from Iowa State Bystander, January 31, 1913

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There was a run on the Mechanics Saving bank, colored, in Richmond, Va., caused by a carpenter who tried to cash a check after the closing hour and because he was refused, spread the report that the bank was broke. The run was handled by the officials in a masterful manner.


Article from The Colorado Statesman, February 1, 1913

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There was a run on the Mechanics Saving bank, colored. in Richmond, Va., caused by a carpenter who tried to cash a check after the closing hour. and because he was refused, spread the report that the bank was broke. The run was handled by the officials in a masterful manner.