gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
3540c82f98933925
Response Measures
None
Description
The bank was a depository of the Williamsburg Trust Co., and its closure was tied to runs on allied institutions.
Events (3)
1.October 25, 1907Run
Cause
Local Banks
Cause Details
Depositors withdrew funds amid runs on allied Brooklyn trust companies (Williamsburg Trust, Jenkins group) and general panic.
Measures
No special measures beyond reliance on clearing house/city-wide actions are described.
Newspaper Excerpt
He said that his bank would never have been compelled to close up had it not been for the run which used up all the available cash.
Source
newspapers
2.October 26, 1907Suspension
Cause
Local Banks
Cause Details
Unable to raise cash after allied institutions (Williamsburg Trust) suspended and heavy withdrawals; state examiner took charge temporarily.
Newspaper Excerpt
The Terminal bank of Brooklyn suspended today and the state examiner is in charge.
Source
newspapers
3.November 21, 1907Reopening
Newspaper Excerpt
The Terminal Bank of Brooklyn, one of those that suspended during the recent panic, reopened today. It was declared perfectly solvent by the State authorities.
Source
newspapers
Newspaper Articles (19)
1.October 26, 1907Evening JournalWilmington, DE
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PANIC DANGER IS PASSED NEW YORK, Oct. 26.-The great event in the financial situation today was the determination of the clearing house in full sessions to issue clearing house certificates. The vote was unanimously despite previous rumors it would be opposed by Morgan interests as unnecessary. George W. Perkins represented J. P. Morgan and practically every bank president in the city was present. It was the first full meeting for business purposes since 1S93 and some bankers had difficulty in finding the entrance to the building. Manager Sherer, of the clearing house gave out the following statement. The committee will arrange details and provide for the clearing house certificates as son as possible and it is hoped the issue will begin this afternoon. Certificates will be issued to 75 per cent. of the par value of the collateral presented. Secretary of the Treasury Cortelyou was visited by several leading financiers. ames Stillman, president of the National City bank today said: The situation has ben saved by the heroic action of the secretary of the treasury and the whole hearted cooperation of Mr. Morgan. The stock market closed active with a majority of fractional gains in the list. The lines at banks on which runs are being made were much smaller. The only suspension was the Terminal Bank of Brooklyn, a small institution.
2.October 26, 1907The Richmond Palladium and Sun-TelegramRichmond, IN
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ANOTHER BANK SUSPENDS. The Terminal of Brooklyn in Hands of State Examiner. New York, Oct. 26.-The Terminal bank of Brooklyn suspended today and the state examiner is in charge.
New YORK, Oct. 26.- The SLOCK exchange and banks closed at noon to day without any further failures of importance. With considerable improvement of the stock market and with several important remedial measures taken or agreed upon to strengthen the financial situation, a great feeling of relief is apparent every where. It is understood that the treasury department will as heretofore advance gold for immediate use so as to avoid delay in the time occupied in transit from Europe. Meanwhile clearing house loan certificates will be issued as a precautionary measure. The runs upon the Trust Company of America and the Lincoln Trust Company abated largely today. The demands of country banks on their New York resources were heavy, but not alarming. * * . New York, Oct. 26.-No apprehension was felt this morning as to the result of today's financial transactions. The principal difficulty throughout the week's excitement has been the lack of currency. There was not enough money in the city to stand the tremendous decline without cutting down loans. It is realized that the sudden lack of confidence is not wide spread through the country. Leading bankers said today that conditions were such they probably would be able to import gold from London Monday to the extent of ten million dollars. As an alternative means of relief clearing house loan certificates have been tentatively discussed. The sub-treasury received to day ten million dollars of small bills from Washington. There were small lines of people in front of the Trust Company of America and the Lincoln Trust Company today, but fewer than yesterday. The exchange pool which has been supporting the stock exchange housfurther assurance es gave today for that call money would be provided loans when needed. The Terminal Bank of Brooklyn, a small institution with capital stock of $100,000, and deposits of about $240,000, suspended payment today. LATER:- The Clearing House Association today authorized the issuance of clearing house certificates George F. Baker, president of the clearing house, said the amount had been specified by the same method as that in 1893, and will be followed. Announcement was made today that negotiations have been practical ly completed for the importation of a large amount of gold from Europe: James Stillman, president of the National City Bank, said today that the situation had been saved by the ac tion of the Secretary of the Treasur er, who 'has been SO ably assisted by the whole-hearted co-operation of Mr Morgan. Secretary Cortelyou had a conference today with George W. Perkins of the firm J. P. Morgan & Co., after which Perkins said: "I think this will be the last day of the financial difficulty." The drain on the national banks was considerably relieved today by the decision of the savings banks to stop heavy disbursements by requiring advance notice for large with drawals. Money on call loaned on the stock exchange today at fifty per cent. The statement of the clearing house banks the week shows that the banks for hold $1,233,300 less than the legal reserve requirements. Arthur P. Heinze, for several years president of the Aetna Indemnity Co. has resigned. Beekman Hunt, formerly vice president and general manager, has been elected to succeed him. Speculative Financing the Trouble. Oct. Chicago, 26.-"Speculative factor Financing" as a controlling in was as to of the railroading the prosperity denounced railroads fatal and the country, by B. A. Clark, a member of the Interstate Commerce Commis-
4.October 26, 1907Lewiston Evening TellerLewiston, ID
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MONEY PANIC LARGELY LOCAL NEW YORK ADMITS SITUATION IS NOT WIDESPREAD AND HAS PLANS TO AID HOME BANKS BY PRESSING GOLD IMPORTS. NEW YORK, Oct. 26.-It is admitted today that the financial difficulties are largely local and not widespread throughout the country. The situation at Pittsburg and Providence is expected to right itself under circumstances suggested, and an effort will be made to relieve the tension in New York by gold imports, and something in this line is being done. It is felt, however, that any effort to press gold imports is likely to meet with obstructive measures in London, and as an alternative relief clearing house loan certificates will be issued. The Trust Company of America opened today as usual, with about 100 people in line. The company officials declare the run is over. The bankers' pool gave further assurance today that it would provide for call loans when needed. The Terminal bank of Brooklyn, a small institution, suspended payment today.
5.October 26, 1907The Barre Daily TimesBarre, VT
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Throughthe Heroic Action of Secretary Cortelyou WITH AID OF J.P. MORGAN Although One Brooklyn Bank Closed This Morning, Things Were Generally More Quiet in Financial Districts Today. New York, Oct. 26.-The Terminal Bank of Brooklyn closed this morning. It was a depository of the Williamsburg Trust company. Although there is a moderate run at the Nassau Trust company, things are generally quiet in the Brooklyn financial district. After leaving the clearing house committee, James Stillman, president of the National City bank, said there was nothing new yet about issuing clearing house certificates and it may be that the association will deem it unnecessary. The general situation is much improved. It has been saved by the heroic action of the secretary of the treasury, George B. Cortelyou, and the whole-hearted co-operation of J. P. Morgan. The institutions which closed their doors yesterday, with the sums due the depositors were: The United States Exchange bank, Harlem, $600,000. International Trust company, about $100,000. The Borough bank of Brooklyn, $4,000.000. The Brooklyn Bank, $2,300,000. Williamsburg Trust company, Brooklyn, $7,500,000. The First National bank of Brooklyn, $3,500,000. The First National bank of Brooklyn, the Williamsburg Trust company and the International Trust company were allied institutions. None of these companies had any important business connections with the larger banks which are representative of the city's financial affairs.
6.October 26, 1907Rock Island ArgusRock Island, IL
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Started Monday. ITEMENT IS LESS ing Financiers Give Praise Corteita and Morgan For Their Activity. New York, Oct. 26.-The Clearing House association today authorized the issuance of clearing house certificates, The National City bank today announced an engagement of $3,500,000 of gold in London. This engagement was made on the bank's own resources and without government aid Say Scare is Over. New York, Oct. 26.-Captains have finance who with Secretary Cortelyon of been battling night and day to preserve order in the banking world held no conference last night. but tired early confident in the resituation had the cessfully threatened belief been that succombated, and that from on the restoration of public confidence now and complished tranquility would be speedily acSecurities are Good. The principal difficulty throughout the week's excitement has been of There was not money in the city to actual tremendous currency stand enough a lack the drain without cutting down loans. The small banking this week have that plies closed institutions good gilt edged securities they could neither sell vaults. nor borrow of but in 1 them their supmoney on them. simply because and of the scarcity of actual paper gold and silver money. Loans Carry Over. No apprehension is felt today as to the result of the day's financial The stock exchange and actions. will be banks transopen for business for only and the exchange will the money hours, loans troubled made by situation. not as two all be yesterday carry over under the the Monday exchange. ordinary rules until of The Trust Company of America opened its doors as usual to day. There were less than a hundred depositors in line. Officials declared the run over. Little Activity in Stocks. The stock market opened firm and higher, but very little activity bankers declared they will probably be Leading import sues that conditions showed. able to gold from London extent of $10,000,000. The has been the pool, which supporting Monday bankers the to stock exchange houses, gave assur ances today that money would be pro vided for call loans when needed. The Terminal bank of Brooklyn, small institution with capital of $100 000 and deposits of about half a mi lion. suspended payment today. Cortelyou Sees Morgan. New York, Oct. 26.-The closing the Terminal bank was due to E fact that its depository. the Williams tle burg Trust company, suspended payment yesterday. Soon after his r riving at the subtreasury this morning Cortelyou had a George W. Perkins of J. P. Secretary gan with & confereice Mor Co. Perkins subsequenty sad. "The atmosphere is fast clearinghip as any one can see. I think this vii be the last day of financial difficuly. Tillman Gives Cortelyon Credit. James Stillman said this morning after a conference at the clearing house: "The situation has been save by the heroic action of the secreary of the treasury who has been sombly assisted by the whole hearted coojera tion of Morgan." . Still Closed at Pittsburg. Pittsburg, Oct. 26 -There wa session of the stock exchange today no If the situation continues to imjrov Monday. the exchange will probably rope Posts 90-Day Notice. Providence, R. I., Oct. 26.-The trial Trust company posted a 90-day indus no tice this morning. Only a few person 1 were in line when the doors opened. was generally believed the At Pawtucket the and the Providence passed. ty for savings institution panic Cour ha Savings bank continued to pay or to depositors, but officials expresse demands confidence in their ability to meet a
7.October 26, 1907The Topeka State JournalTopeka, KS
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BREATHING TIME. New York Banks Get a Rest Until Monday. Financial Institutions Close Under Improved Conditions. ONLY ONE FAILURE And That Was Not Regarded as of Importance. Trust Companies Met All Demands of Depositors. New York, Oct. 26.-The stock exchange and the banks closed at noon today without any further failures of importance, with considerable improvement in the stock market and with several important remedial measures taken or agreed upon to strengthen the financial situation. The only reverse of the day was the suspension of the Terminal bank, Brooklyn, a new and small institution without any importance in the general financial world. There is now a breathing spell until Monday morning and a distinct sense of relief is apparent everywhere. Already arrangements for the importation of gold are well underway, and it is hoped these will furnish the relief needed. It is understood that the treasury department will, as heretofore advance the gold for immediate use so as to save the time occupied in transit from Europe. Meanwhile as a precautionary measure, although not regarded vitally essential the clearing house today authorized the issuance of loan certificates. This means that the clearing house banks are to present a united front in this emergency and that the aggregate resources of all of them are to be pledged for the maintenance of each. The runs upon the Trust Company of America and the Lincoln Trust company continued in very much abated form, but both institutions met all demands. The drafts of country banks on their New York reserves were heavy but not alarming, since at this period of the year such drafts are to be expected for the purpose of moving the crops. The imposition of the 90 days rule in Rhode Island stopped runs there and matters assumed a normal phase. The stock market opened at an advance on yesterday and showed little symptoms of serious agitation. London and other foreign points also gave reassuring advances. The rate of exchange was such as to facilitate the gold imports, and confidence abroad was evidenced by the improved tone of all foreign bourses, the only weakness apparent being the result of a failure in Constantinople and the financial crisis in Chile. On the whole the power of resistance of the banks in New York and the stability reported from all outside points brought the week to a close with a feeling that the general position was greatly improved. South Is Prosperous. St. Louis, Oct. 26.-Governor N. B. Broward, of Florida, who with Governor Dineen, of Illinois, will be a guest at the regular monthly dinner of the commercial club to be held at the St. Louis club tonight, arrived today. Referring to the financial flurry in New York, Governor Broward said: "The south is more prosperous today than it ever has been in its history. We have not felt nor do we expect to feel the effects of the present New York financial troubles."
8.October 27, 1907The Richmond Palladium and Sun-TelegramRichmond, IN
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VERY ENCOURAGING REPORT IS GIVEN No Further Failures of Importance Are Reported at New York City. BANKS COME TO RESCUE. CLEARING HOUSE HAS AUTHORIZED THE ISSUANCE OF LOAN CERTIFICATES-ADVICES FROM ABROAD REASSURING. New York, Oct. 26.-The Stock Exchange and the banks closed at noon today without any further failures of importance, with considerable improvement in the stock market and with several important remedial measures taken or agreed upon to strengthen the financial situation. The only reverse of the day was the suspension of the Terminal Bank, Brooklyn, a new and small institution without any importance in the general financial world. There is now a breathing spell until Monday morning, and there is distinct sense of relief apparent everywhere. Already arrangements for the importation of gold are well under way and it is hoped these will furnish the relief needed. It is understood that the treasury department will, as heretofore, advance the gold for immediate use so as to save the time occupied in transit from Europe. Meanwhile as a precautionary measure, although not regarded vitally essential, the clearing house today authorized the issuance of loan sertificates. This means that the clearing house banks are to present a united front in this emergency and that the aggregate resources of all of them are to be pledged for the maintenance of each. The runs upon the Trust Company of America and the Lincoln Trust company continued in much abated form and both institutions met all demands. The drafts of country banks on their New York reserves were heavy, but at this period of the year such drafts are to be expected for the purpose of moving the crops. The imposition of the ninety-day rule in Rhode Island stopped runs there and matters assumed a normal phase. Confidence Abroad. The stock market opened at an advance on yesterday and showed little symptoms of serious agitation. London and other foreign points also gave reassuring advices. The rate of exchange was such as to facilitate gold imports and confidence abroad was evidenced by the improved tone of all foreign bourses, the only weakness apparent being the result of a failure in Constantinople and the financial crisis in Chile. On the whole the power of resistance of the banks in New York and the stability reported from all outside points brought the week to a close with a feeling that the general position was greatly improved. The event in the financial situation today was the determination of the clearing house in full session to issue clearing house certificates.
Another Brooklyn Failure. New York, Oct. 28.-The Terminal bank of Brooklyn, a small state institution with a capital of $100,000 and deposits of about $240,000, has suspended payment.
10.October 28, 1907New-York TribuneNew York, NY
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any other institution for the time," he said. "All of the other members of the Clearing House received the same instruction regarding the banks for whom they were clearing That order left us without means of getting cash. We have as good securities as any other bank in the country, but when we were unable to get money upon them we had no alternative but to close our doors. The Clearing House is doing everything that it can to improve the present situation, and as soon as this flurry is over I suppose it will rescind its order regarding clearing. Of course only a certain number of banks can be members of the Clearing House, and the other banks have to clear through them. "The state accountants are still going over our books, and they will not report probably until Tuesday or later. Our bank is entirely sound. The rumor that politicians have had preferences shown them by us is entirely unfounded. As for the International Trust Company, we had never gone into that concern. The action was only proposed, but was not carried out, and now will not be." The Jenkins Trust Company, the First National Bank. the Terminal Bank, the Williamsburg Trust Company and its branches, generally known as the "Jenkins banks," it was generally understood yesterday would reopen on Tuesday. The federal and state examiners, according to the directors, have found the institutions solvent and in a position to continue doing business as soon as the ready cash was obtained. President John G. Jenkins, jr., said yesterday he did not propose to open the Williamsburg Trust Company's offices until he was satisfied he could do SO without closing his doors again. He said that his bank would never have been compelled to close up had it not been for the run which used up all the available cash. A movement is on foot, according to Jullan D. Fairchild, president of the Kings County Trust Company, to bring the banks and the trust companies closer together. "We do not need a clearing house in Brooklyn, as has been suggested," he said yesterday. "We want only one such institution. What we do want is a closer connection between the banks and the trust companies. The trust companies should go into the clearing house, either as regular or as associate members. The trust companies, like the banks, should make weekly reports concerning themselves. That would give people a reliable understanding of the banking situation of the city's institutions. The trust companies have as much. if not more, money on deposit than the banks have, and yet at present they do not take steps to keep the public informed concerning themselves. This crisis may result in bringing them into closer relation with the banks. I do not think that they should be compelled to keep on hand such large reserves as the banks. The banks must have 25 per cent of their deposits, but the trust companies are not required to keep more than about 12 per cent on hand. Their deposits are slower. not so liable to be paid out and their securities are better. The Clearing House and the trust companies should be able to determine upon some equitable arrangement whereby the trust companies could become members or associate members of the former."
11.November 21, 1907The Washington TimesWashington, DC
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BROOKLYN BANK REOPENS. NEW YORK, Nov. 21.-The Terminal Bank of Brooklyn, one of those that suspended during the recent panic, reopened today. It was declared perfecily solvent by the State authorities.
12.November 21, 1907The Topeka State JournalTopeka, KS
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SCRIP IS RETIRED. Banks at Billings, Mont., Return to Cash Basis. Butte, Mont., Nov. 21.-A Miner special from Billings, Mont., states that the banks in that city have retired the clearing house certificates, ample cash being available for the conduct of all business. Settlement for stock shipments have increased the reserves of the banks to a very healthy extent and the condition of the banks is the best in years. Billings is the large shipping point for Montana. It was the only city in Montana where recourse was had to clearing house scrip. The banks throughout the state are pronounced by the bank examiner to be in the best of condition. Terminal Bank to Reopen. New York, Nov. 21.-Announcement is made that the Terminal Bank of Brooklyn, which suspended during the recent banking flurry, will reopen its doors. The largest depositors in the bank have agreed not to withdraw any of their funds for an indefinite period.
13.November 21, 1907Evening StarWashington, DC
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TERMINAL BANK RESUMES. Brooklyn Institution Reopens for Business Today. Special Dispatch to The Star. NEW YORK, November 21.-Another of the suspended banks resumed business today, when the Terminal Bank, a state institution in Brooklyn, followed the example of the Twelfth Ward Bank of Manhattan, and reopened its doors. The Terminal Bank was generally classed in the public mind as one of the Jenkins banks, as Frank Jenkins of the Williamsburg Trust Company was one of its directors. Now that he has resigned, Supt. Williams of the state banking department, finding the institution solvent, has given permission to continue business where it was interrupted October 25.
14.November 21, 1907Arizona RepublicanPhoenix, AZ
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BROOKLYN BANK TO REOPEN New York. Nov. 20.-Announcement is made that the Terminal Bank of Brooklyn which suspended on the morning of the recent banking flurry, will reopen tomorrow. The largest depositors have agreed not to withdraw any funds for an indefinite period.
BROOKLYN BANK NOW READY TO RESUME New York, Nov. 20.-Announcement is made that the Terminal Bank of Brooklyn, which suspended during the recent banking flurry, will reopen its doors tomorrow. The largest. depositors in the bank have agreed not to withdraw any of their funds for an indefinite period.
16.November 21, 1907The Marion Daily MirrorMarion, OH
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Bank Will Resume. New York, Nov. 21.-The Terminal bank, of Brooklyn, which suspended during the recent banking flurry, will reopen its doors to-day. The Terminal bank closed its doors because of its inability to raise currency on short notice to meet the demands of its depositors. The largest depositors in the bank have agreed not to withdraw any of their funds for an indefinite time.
17.November 23, 1907The Labor WorldDuluth, MN
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BANK IN BROOKLYN WILL REOPEN TODAY NEW YORK, Nov. 20.-Announcement is made that the Terminal bank of Brooklyn, which suspended during the recent banking flurry, will re-open its doors tomorrow. The Terminal bank closed its doors because of its inability to raise currency on short notice to meet the demands of its depositors. The largest depositors in the bank have agreed not to withdraw any of their funds for an indefinite time.
18.November 23, 1907The Free LanceFredericksburg, VA
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Bank Officers Indicted. New York, Nov. 21.-Three indictments are said to have been ordered by the Kings county grand jury which has been investigating the affairs of the suspended Borough Bank of Brook. lyn. The grand jury has not completed its labors, and there were intimations that there might be other indictments. While no official statement was forth. coming of the action of the jury, It is understood that more than one indict may be returned against individuals. The Terminal Bank of Brooklyn, which suspended during the recent banking flurry, reopened its doors and resumed business. The Terminal bank closed its doors because of its inability to raise currency on short notice to meet the demands of its depositors. The largest depositors in the bank have agreed not to withdraw any of their funds for an indefinite time.
19.November 26, 1907Evening JournalWilmington, DE
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BROKER GIVES CHEERFUL VIEW Recovery From the Effects of the Flurry Will be Slow But Sure By THE JOURNAL'S Special Wire. NEW YORK, Nov. 26.-One of the leading traders on the stock exchange today showed a paste board slip on which he had written a list of "bull points" which he said ought to cheer everybody up. Theye were: 1-Currency premium fallen from 4 to 3-4 per cent. and banks expected to cash all checks freely by the end of the week. 2.-United States Exchange Bank which shut in the panic reopened yesterday and like to reopened Twelfth Ward and Terminal banks had more deposits than withdrawals. 3.-Union Pacific has put back 6,000 men recently discharged, an example of re-employment which will be largely followed as soon as currency "loosens up." "New England," he said. "never had a panic in cities like Syracuse and Toledo never felt it either. The present black belts are at present between Pittsburg and the Mississippi and west of the Rockies, but conditions in these belts are a belated echo of New York affairs of two weeks ago. As soon as New York sets a good example of resumption the west will follow suit. Recovery will be sure but slow. There won't be a stock boom until loans are easy again. Speculation is still at a discount, but chances for sound investments were never better." Commission houses report very little real stock in circulation. They say some people must have been following Tom Lawson's advice, buying it outright and locking it up in boxes.
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.
