False and unfounded rumors (a waggish remark by a telegraph lineman is cited as the origin) prompted depositors to withdraw funds.
Random Run
Yes
Random Run Snippet
Waggish remark by telegraph lineman started a false, unfounded rumor
Measures
Paid withdrawals promptly (every check cashed); kept open later to accommodate withdrawers.
Newspaper Excerpt
False and unfounded rumors caused a run on the German National bank, of Allegheny, yesterday, during which $180,000 was paid out to certain frightened depositors.
Source
newspapers
+34 years
3.November 19, 1934Voluntary Liquidation
Source
historical_nic
Newspaper Articles (10)
1.February 20, 1901Evening JournalWilmington, DE
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Article Text
Causeless Rumors Caused Bank Run. Pittsburg, Feb. 20.-False and unfounded rumors caused a run on the German National bank, of Allegheny, yesterday, during which $180,000 was paid out to certain frightened depositors. The excitement at one time during the afternoon was intense, causing almost a panic and giving the police all they could do to prevent an outbreak. One lady, Mrs. Mary Fogal, was seriously bruised and injured internally. The bank is one of the most reliable in the city.
2.February 20, 1901The TimesWashington, DC
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A RUN ON A BANK STARTED. Officials Declare They Have Cash to Meet Deposits. PITTSBURG, Feb. 19.-Somebody started a wild rumor today that the German National Bank of Allegheny was in financial difficulties, and a run was started. Depositors crowded the sidewalks and policemen were sent to keep order. All depositors who wanted their money received it. A continuation of the run is expected temorrow. The officers of the bank say they have enough money to pay out the deposits four times over.
3.February 20, 1901Daily New DominionMorgantown, WV
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Article Text
Run on a Bank. Pittsburg, Feb. 20.-A number of depositors made a run on the German Natonal bank, Allegheny City, Pa. About $180,000 was paid out. The reason was not absolutely known, but it was believed that the $5,000,000 bond issue by the Pressed Steel Car company caused apprehension. Frank H. Hoffstot is president of both concerns, and W. H. Schoen, vice president of the car company, is a director of the bank.
4.February 21, 1901Americus Times-RecorderAmericus, GA
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ARE MEETING ALL DEMANDS Bank Officials Declare the Run Is Unwarranted. PITTSBURG, Feb. 20.-The run on the German National bank at Allegheny was continued toda When the bank opened at 9 O'clock this morning there was a line of depositors waiting to get their money. There was no especial excitement, and the depositors wishing to withdraw their funds were paid as promptly as the tellers could wait upon them. The bank officials expressed confidence in their ability to meet all demands. Those withdrawing their money were mostly interest depositors. The men generally believe the institution has ample funds to pay dollar for dollar, and deprecate the unwarranted run.
5.February 21, 1901Bryan Morning EagleBryan, TX
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Run on B Bank. Pittsbarg, Feb. 20. -False and unofficial rumors caused a run on the German National bank of Allegheny Tuesday during which $680,000 was paid out to frightened depositors. The excitement at one time was intense causing almost a panic and giving the police all they could do to prevent an outbreak. Every check was cashed.
6.February 22, 1901Wheeling RegisterWheeling, WV
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PITTSBURG, Pa., February 21.-The run on the German National Bank, of Allegheny. is practically over. That all may have an opportunity to withdraw the institution will remain open to-morrow, Washington's birthday.
7.February 26, 1901The Stark County DemocratCanton, OH
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Run on German Bank Ends. News-Democrat Leased Wire Service. Pittsburg, Feb. 22.-The run on the German National bank, of Allegheny, is apparently over, and today there are
8.February 28, 1901Eagle River ReviewEagle River, WI
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WAG STARTS RUN ON BANK. I Timid Depositors Draw $180,000 Out of an Allegheny, Pa., Concern. Depositors in the German National Bank, Allegheny, Pa., made a run on that institution. Police were called to keep the people in line. A steady stream poured into the bank and drew out savings of years. Over $180,000 was paid them. The bank kept open an hour later than the usual time to pay off timid depositors. Rumors that the bank was shaky came from a waggish remark about a run on the bank roof by a telegraph lineman who was fixing wires. TO FIGHT SAN LOSE SCALE.
9.March 21, 1901The Bamberg HeraldBamberg, SC
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THOUSANDS DRAWN OUT. False Rumors Cause Heavy Run On a Staunch Pennsylvania Bank. False and unfounded rumors caused a run on the German National bank of Allegheny, Pa., Tuesday, during which $180,000 was paid out to frightened depositors. The excitement at one time was intense, causing almost a panic and giving the police all they could do to prevent an outbreak. The bank is a state and national bank, and one of the most reliable in the city. It is thoroughly trusted by the business men of Allegheny, and Cashier Helm said that every demand would be met promptly.
10.March 28, 1901The Bamberg HeraldBamberg, SC
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Article Text
THOUSANDS DRAWN OUT. Falso Rumors Cause Heavy Run On a Staunch Pennsylvania Bank. False and unfounded rumors caused & run on the German National bank of Allegheny, Pa., Tuesday, during which $180,000 was paid out to frightened depositors. The excitement at one time was intense, causing almost a panic and giving the police all they could do to prevent an outbreak. The bank is a state and national bank, and one of the most reliable in the city. It is thoroughly trusted by the business men of Allegheny, and Cashier Helm said that every demand would be met promptly.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
