2272. Wilmington Savings Fund Society (Wilmington, DE)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
December 13, 1890
Location
Wilmington, Delaware (39.746, -75.547)

Metadata

Model
gpt-5-mini
Short Digest
69e03b0d

Response Measures

Accommodated withdrawals

Description

Articles (Dec 13 and Dec 18, 1890) describe a false rumor spread by a depositor that triggered depositors to rush in and small withdrawals were paid. The bank denied the rumor, produced statements of strong assets, and remained open; no suspension or closure is reported.

Events (1)
1. December 13, 1890 Run
Cause
Rumor Or Misinformation
Cause Details
A Philadelphia depositor, upset at not receiving immediate cash for a large withdrawal, went about the city spreading that the bank was broken and its paper dishonored, prompting over 100 depositors to call that morning.
Random Run
Yes
Random Run Snippet
Dissatisfied depositor spread false rumor bank was broken; promptly denied
Measures
President and cashier publicly denied the rumor, presented financial statements; paid small withdrawals on demand.
Newspaper Excerpt
A rumor that the Wilmington Savings Fund Society's bank was broken started a run on the bank this morning ... A dissatisfied depositor circulates a false rumor, which is promptly denied by President William M. Canby
Source
newspapers

Newspaper Articles (2)
1. December 13, 1890 Evening Journal Wilmington, DE
Article from Evening Journal, December 13, 1890

Click image to open full size in new tab

Article Text

LAST EDITION NO BREAK IN THE BANK. Wilmington Savings Fand Society in a Sound Condition. STATEMENTS OF ITS CONDITION. A Dissatisfied Depositor Circulates a False Rumor, Which is Promptly Denied by President William M. Canby-GiltEdged Securies and $300,000 Surplus, A rumor that the Wilmington Savings Fund Society's bank was broken started a run on the bank this morning, and caused intense excitement among the depositors in the institution. The rumor was started yesterday afternoon by one of the bank's Philadelphia depositors. Hecame here from that city and presented a "sight" draft on the bank for $1,600. The rules of the institution demanded that a year's notice must be given to withdraw such a large sum and the de positor was told this However, he said that he must have the money immediately, whereupon the cashier told him the money would be givon him on short notice, but not at once When he heard this the man became dissatisfied and left the bank. He went about the city telling people that the bank was broken and that its paper was dishonored. The depositors in the bank soon heard of it and immediately hurried to the institution to ascertain the truth or falsity of the rumor Over one hundred depositors called at the bank this morning Most of them were women, and they all acted as if they were sure the bank was really broken, but would pay their claims. President William M. Canby of the society was at the bank himself all morn ing. and he assured all callers that the bank was in a fiast-class condition and could stand all claims upon it. Most of the depositors immediately went away feeling assured that the bank was safe. Several wished to draw their money out and it was given to them. President Canby was in his private office this morning when a reporter called and asked for a statement concerning the rumor. Mr. Canby showed that the affairs of the bank were absolutely solid, and said: "A large number of depositors called this morning to ascertain if the rumor concerning the bank's unstability was true. The rumor is supposed to have been started by a depositor, a Philadelphian. He came to the bank and wanted to draw $1,600 on sight. Of course as this is against the laws of the institution the money was not given to him and he went out. He then went about the city and spread the story that the bank was unsound. "Many people, of course, were excited by the rumor and immediately ruhesd here for information concerning it. I was present myself this morning and answered the queries of many of the people. Nearly all of them left again as soon as I stated that the bank was sound." Here Mr. Canby left the reporter for a few moments to assure another depositor that the bank was safe while at the other end of the room the cashier was busy telling people that the rumor was en tirely unfounded. The man left as soon as Mr. Canby told him that his deposit was safe and the bank president returned and continued: "Those who wanted their money were immediately paid their deposits where they were-small. Most of the inquirers were women who had small deposits in the bank, and several of them were in tears as they asked concerning its stability. The people all over the city seemed to have heard the rumor and many believed it without inquiring further The president of one of the most stable financial institutions in the state, came to me this morning and promised me that if we needed financial support Lis bank stood ready to help us out. I, of course, told him that his assistance was unnecessary, as we had ample assets on hand. We have not yet made up our annual statement, but I can show the one made at the beginning of this year." Here he produced the book ontaining the report of the bank 8 standing The annual report shows the fol lowing: ACCETTO

2. December 18, 1890 Delaware Gazette and State Journal Wilmington, DE
Article from Delaware Gazette and State Journal, December 18, 1890

Click image to open full size in new tab

Article Text

SENSELESS FINANCIAL SCARE. Absurd Reports Affecting the Integrity of the Savings Fund. How They Originated--A Splendid Financial Showing--Could Quit Business Today With Over a Quarter of a Million Surplus. The senseless rumors in regard to the stability of the Wilmington Savings Fund Society, which have gained currency upon the streets for the past week or so, have at length culminated in what appeared on Saturday to be a demand of small depositors for their savings and the withdrawal of limited sums of money from the bank. It is undeniably true that a feverish, panicky feeling in regard to pecuniary matters has developed in the city and only awaited some incident to prick the bubble. This was afforded yesterday week when a thoughtless, irate depositor walked into the bank and demanded the instant cashing of his receipts amounting to between $2,000 and $3,000. Unfortunately the bank manager, with whom the customer had the interview somehow got the idea that what the man wanted was a loan, the official not at the momentunderstanding his status as a depositor who simply wanted his own money. Whatever the upshot of the transaction was the man left the bank office full of indignation, and it is supposed his experience gained currency, its publicity at length affording the "leven which levened the whole lump' of idle imaginings. In the markets on Saturday the ridiculous rumors reached their height when it was stated that the bank had closed its doors. Continuous telephone messages were received at the GAZETTE office inquiring as to the statements that are flying about. An immediate denial was given in regard to any basis for such preposterous reports. But in view of the continued inquiries andiincessant questions along the street a representative of the GAZETTE called upon President William M. Canby at the bank office Saturday morning. There were not more than two or three customers in the bank at the time. The president received the reporter immediately. Mr Canby was as quiet and unperturbed as if he were presiding at a meeting of the park commission, or at any other of his multifarious public duties. In conversation, however, he regretted that any of the bank depositors should SO readily lend their ears to what is only too palpably the idlest of sensations. He readily acceded to his interviewer's request for a statement of the bank's assets. The treasurer's ledger was brought from the safe, and Mr. Ellison showed the following figures: SAVINGS FUND ASSETS. First mortgages $2,414,000 Wilmington City Loan 62,000 Wilmington bonds City Passenger Railway 43.000 P., W. & B. rairoad 4 per cent bonds. 25,000 Bonds guaranteed by the Lehigh Val30.000 ley Railroad Company New Castle county bonds 85,000 P., W. & B. railroad trust certificates. 50.000 Delaware Railroad Company stock. 20,000 United Railroad Company stock of New Jersey 25,000 Papers secured by collaterals 16,000 All the above which form the main securities are identical with cash and are known as"quick securities" that is equivalent to being negotiable at sight. In addition to the above the bank holds the following realizable property Real estate, Eighth and Market streets. (offered price) $ 25,000 Bank building, lot and fixtures, Ninth and Market. 100.000 Real estate by foreclosure 59,000 The above are the main assets of last June. The integrity of the securities, the mortgages, &c., has not depreciated an iota since then. The mortgages are all first mortgages and the soundest and best in Wilmington. Hardly 1 per cent is laid outside the city. The railroad and other securities are the best obtainable this moment, and several of them would realize an increment of several thousands to the bank, werethey placed on themarket. The assets of the Savings Fund Society total $2,992,668 according to the last annual report. "Our next report," Mr. Canby continued. "will show a large increase on the surplus balance. The Savings Fund is in the healthiest financial condition this moment of any time in its existence. Several prominent gentlemen of the city called while the reporter was standing in front of the treasurer's books. Mr. Canby freely invited them around to examine the accounts. He has not the slighest hesitation in affording all intelligent personsany information they ask for. THE LIABILITIES OF THE BANK. "Now, as to the liabilities, Mr. Canby ?" the reporter continued. The president immediately pointed to the following figures in the treasurer's books Total liabilities $2,723,007. This with the assets of $2,992,668.32 affords over a quarter of a million available assets if the banks choose to give up business to-day. No better showing could be made by any bank in the country. "I would not be surprised, added Mr. Canby, "if there was a run on the bank following these foolish rumors. When the reporter was at the office this morning the tellers were making no scruple about paying the depositors on demand although they are entitled to require notice of 10. 20 or 30 days. &c., according to the amount of the deposit. In regard to the more recent status of the bank accounts the following statement appears upon the managers ledger: We have examined the cash. receipts. loans recovered in whole or in part, amount paid, and daily amount received from depositors, all of which have been verified by comparison with the deposits as examined by the bank pass book. We have also examined the amounts disbursed by the treasurer and have compa ed them with the cash balance as shown by his books for the three months ending ninth month, 30th, 1890, and have found them corrrect. ELWOOD GARRETT. THOMAS DARLINGTON, WILMER PALMER. The present managers of the Wilmington Savings Fund comprise 24 of the most substantial citizens of Wilmington, who give their services to the institution entirely gratuitously. An Illness That Paid Big.