23003. Bank of Benwood (Benwood, WV)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
October 7, 1916
Location
Benwood, West Virginia (40.018, -80.734)

Metadata

Model
gpt-5-mini
Short Digest
bb29c7ac

Response Measures

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

Other: State bank examiner filed a formal report on the run.

Description

A panic-driven run occurred on Oct 7, 1916 triggered by a groundless rumor. The bank borrowed funds from Wheeling banks, met all demands, and remained open; no suspension or receivership is reported.

Events (1)
1. October 7, 1916 Run
Cause
Rumor Or Misinformation
Cause Details
Started by a groundless rumor that a director had endorsed $27,000 in notes for a Wheeling firm alleged to be near bankruptcy; gossip over the telephone spread rapidly.
Random Run
Yes
Random Run Snippet
Groundless rumor director endorsed $27,000; report proved false
Measures
Borrowed $20,000 cash from Wheeling banks and displayed funds on tables to reassure depositors; many redeposited before close.
Newspaper Excerpt
Panic stricker foreigners of Benwood ... withdrawing approximately $30,000 in savings accounts in four hours. By borrowing $20,000 cash from Wheeling banks the bank met all demands for payment... The run was started by a groundless rumor that a director of the bank had endorsed notes to the amount of $27,000 for a Wheeling firm said to be on the verge of bankruptcy.
Source
newspapers

Newspaper Articles (2)
1. October 8, 1916 The Sunday Telegram Clarksburg, WV
Article from The Sunday Telegram, October 8, 1916

Click image to open full size in new tab

Article Text

BANK RUN Is Made by Panic Stricken Benwood Foreigners Who Fight in the Bank. (BY ASSOCIATED PRESS) WHEELING, Oct. 7.-Panic stricker foreigners of Benwood, mill town suburb of Wheeling, fought and crowded into the Bank of Benwood yesterday, withdrawing approximately $30,000 in savings accounts in four hours. Police used force in quelling the disorder. By borrowing $20,000 cash from Wheeling banks the bank met all demands for payment. The borrowed money was piled on tables in view of the foreigners and succeeded in quieting the turmoil. Many who had withdrawn deposits redeposited them before the bank closed. The run was started by a groundless rumor that a director of the bank had endorsed notes to the amount of $27,000 for a Wheeling firm said to be on the verge of bankruptcy.

2. October 21, 1916 The Wheeling Intelligencer Wheeling, WV
Article from The Wheeling Intelligencer, October 21, 1916

Click image to open full size in new tab

Article Text

REPORTS ON RUN ON BANK. CHARLESTON W. Va., Oct. 20.Edward F. Diehl, assistant to the State Bank Examiner, to-day made formal report about the recent run made on the Bank of Benwood. This report is that 11. Benwood eitizen Informed a friend over the telephone that the bank was in a bad condition financially, and the person to whom the conversation was directed further circulated the report. NO that within two hours more than half the depositors were demanding their money.