3053. Southern Bank (Savannah, GA)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
July 20, 1893
Location
Savannah, Georgia (32.084, -81.100)

Metadata

Model
gpt-5-mini
Short Digest
5434fa35

Response Measures

Accommodated withdrawals

Description

Multiple articles (July 20–22, 1893) describe a small, short-lived run on the savings department caused by a rumor (especially among Black depositors) that the bank had closed. All withdrawals were paid promptly, many deposits were redeposited, and the bank suffered no suspension or closure.

Events (1)

1. July 20, 1893 Run
Cause
Rumor Or Misinformation
Cause Details
A circulating rumor among many Black depositors that the bank had been closed (origin unclear; possibly a resolution by a colored society or a careless remark).
Measures
All requested withdrawals were promptly paid; officers reassured public and paid deposits; many depositors later redeposited funds.
Newspaper Excerpt
The So-Called Run on the Southern Bank a Farce. There was a slight run on the savings department of the Southern Bank yesterday... a rumor became current among some of the negroes of the city yesterday morning that the big red bank ... had been closed.
Source
newspapers

Newspaper Articles (7)

Article from Richmond Dispatch, January 21, 1893

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CENTRAL RAILROAD AND BANKING COMPANY OF GEORGIA. The undersigned committee, appointed for the purpose of readjusting the affairs of, the CENTRAL RAILROAD AND BANKING COMPANY OF GEORGIA and of its allied properties, have, under advice of counsel, formed a plan of reorganization which has received the approval of the RECEIVER, of the BOARD OF DIRECTORS, and of many of the important creditors and security-holders of the company. THE MERCANTILE TRUST COMPANY OF NEW YORK has been appointed the depositary of the securities under the proposed plan, and will shortly give notice of its readiness to receive the securities embraced in the reorganization. THE SOUTHERN BANK OF THE STATE OF GEORGIA. AT SAVANNAH, GA., will like. wise be prepared to receive deposit of said securities, and to Issue certificates for the account of the Mercantile Trust Company. Copies of the plan may be had at the office of the Trust Company, 120 Broadway, New York City, or at the office of the Southern Bank. at Savannah, Ga., or from the Chairman of the committee, 15 Wall street. Dated NEW YORK, January 10, 1893. H. B. HOLLINS (Chairman), LOUIS FITZGERALD, EMANUEL LEHMAN, JAMES T. WOODWARD, JAMES STILLMAN, New York: E. E. DENNISTON, Philadelphia; E. ROLLINS MORSE, Boston; F. M. COLSTON, Baltimore; CHARLES H. PHINIZY, Augusta, Ga., Committee. JACOB H. SCHIFF, New York, Advisory Member. WILLIAM F. WHARTON. Secretary. Counsel to the CommitteeLOWREY, STONE & AUERBACH, New York. GARRARD, MELDRIM & NEWMAN, Savannah, Ga. ja 21-2t


Article from The Morning News, July 20, 1893

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ALL GOT THEIR MONEY. The So-Called Run on the Southern Bank a Farce. There was a slight run on the savings department of the Southern Bank yesterday, quite a number of negroes and a few anxious white people withdrawing their small deposits. Somehow or other, a rumor became current among some of the negroes of the city yesterday morning that the "big red bank," as it is known among them, had been closed. How this rumor started is unknown, but it was said on the street that a colored society had passed a resolution deciding to withdraw its small deposit, and when this became known some of the negroes who had small deposits there became somewhat excited over the matter. An intelligent colored man, well known to the officials. was in the bank yesterday morning, shortly before the bank opened for business, and in talking to Mr.-Copps, the bookkeeper, said he had just been in the market. where there was considerable excitement among the negroes who had small deposits in the savings department, and he thought that they would all be over as soon as the bank opened to withdraw their money. This was the first intimation that the officers of the bank had that any such step was contemplated on the part of the savings depositors. It was also suggested that the rumor might have been started from the fact that during the summer months the bank does not open for business until 10 o'clock instead of 9, so as to give the employes who live out of the city a little more time. On this account there is a sign on the door saying; "This bank will open at 10 o'clock." Another sign hung inside over Mr. Munford's window which is always posted after 2 o'clock reads, "Bank closed." At any rate the rumor became current among.the negroes, and when the bank opened quite a crowd of them had gathered at the St. Julian street entrance, on which side the Savings' department is located. They filed in and presented their deposit certificates, or their little account books and demanded their deposits. A number of white people were also foolish enough to take some stock in the rumor and also asked for their money. Others hearing of the rumor made inquiries and finding that the institution was as solid as a rock, let their money stay where it was. Every dollar that was asked for was quickly paid, but as a matter of fact the entire amount withdrawn caused no annoyance to the bank whatever. How such a report could have started it is hard to say. As a matter of fact, the Southern Bank is regarded as, and is, one of the strongest institutions in the south. Eugene Kelly of New York owns a majority of the stock in the Southern Bank, and he is known to be worth in the neighborhood of $20,000,000. It has correspondents at New York, San Francisco, Paris, London, Brussels, Antwerp and Mexico, and is good for almost any amount for which a demand could be made in this section. No further trouble is anticipated today, though if any of the depositors wish to withdraw their savings they will promptly paid. When the closing time came yesterday Mr. Sullivan, the cashier, went out to see if there were any more who wanted to come in. Almost all of the crowd had departed, and the doors of the bank closed at 2 o'clock. with scarce a dozen of the anxious depositors inside. A well-known business man, on going to the bank yesterday, found his cook there, and learning her mission told her to go home, that her money was safe and if she didn't get it he would stand for it. She went off satisfied, remarking that whatever he said was all right. A prominent Savannah man was walking down Drayton street yesterday when hemet a bulky colored woman all out of breath. She stopped him long enough to


Article from The Morning News, July 21, 1893

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THE RUN PETERED OUT. Savings Depositors Convinced Their Money is in no Danger. A Good Manv of Them Didn't Know What They Drew it out for Anyhow and Redeposit it-Only a Few at the Bank Yesterday-Incidents of the So-Called Run and Theories as to How it Started. The so-called run on the savings department of the Southern Bank had quieted down yesterday and not more than half the number who came the day before were on hand when the bank opened at 10 o'clock. The crowd, however, was a right respectable one in size, consisting mostly of negroes, many of whom knew neither what they were doing nor what they were there for. There were some few whites. but most of them felt ashamed of themselves for taking part in such an action and went away without drawing out a dollar. The anxious depositors came in slowly and presented their checks one by one. some of them only going around to satisfy themselves that the bank was still there, and going away without worrying over their deposits. When the doors closed at 20'clock there were none of them left on the sidewalk, and there were only nine inside the bank. They were given what they asked for, and at 2:15 there was not another depositor waiting to draw out his savings. Some well known people in the city gave slight credence to the rumor when it was first started, but theadvice of well posted business men, made them determined to adopt the really safest method, which was to leave their money where it was. IT IS ALL OVER. There is no doubt now that the run has petered out, and the probability is that few, if any, of the savings depositors will turn up this morning to ask for their money. The fact that there were no more on hand waiting when the bank closed yesterday, is a sign that the little tempest in a tea-pot has settled, and that no more anxiety among the penny depositors will be felt. PUT THEIR MONEY BACK. Very good indications of the subsidence of all excitement were seen yesterday, from the fact that a large number of the depositors who had withdrawn on the day before returned and asked to be allowed to put their money* back. Their deposits were all received, and many others brought new deposits to the savings department during the day. A dago who had quite a snug little sum drew it out yesterday morning, but later, on realizing his folly, he returned and put it back in the bank. And so it went on all day, a large number of the deposits being returned. The origin of the rumor which started this foolish little run has not yet been definitely determined. Anothers story was given yesterday that a young lady had said something about the condition of the bank to the famly cook, and that it had spread in this way. The truth is however, nobody konws definitely when or how or where it started, was but the probability is it caused by some careless remark. INCIDENTS OF YESTERDAY. Instances of depositors withdrawing their money and re-depositing it almost immediately were numerous enough yesterday. One negro of the rather intelligent class, who had a small amount in the bank. felt almost ashamed to go and ask for his money. He assured himself that the bank was as solid as a rock, but with some little doubt still left, he approached the teller's window and put a few questions on the same line. On every side he met with assurance that his money was all right. "Well," said he, as he was about to withdraw. "Treckon you'd betterigive me half of it anyhow." He stuck the few bills in his pocket and went out, apparently satisfied. The truth is, very few of the negroes knew why they had come to the bank. One of them was asked the cause for all the excitement yesterday afternoon. "I don't know," she replied. "I jes' came along 'cause the res' come," and so it was with the majority of the crowd. Two negro women from somewhere out in the not wind of the excite-


Article from The Morning News, July 22, 1893

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THE RUN RUN OUT. Only a Dozen Depositors Withdraw Their Savings Yesterday. The last of the so-called run on the savings department of the Southern Bank was seen yesterday. During the day about a dozen depositors came straggling in one at a time, withdrawing their little deposits. They were mostly country people who, had just heard what was going on and they came in after their money. Many of those who had withdrawn money returned and redeposited it yesterday.


Article from The Morning News, August 7, 1893

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THE DIFFERENCE. The run that was recently made on the Southern Bank proved to be a great fizzle: it began big but ended small. Now compare this with the run on LE PANTO Cigars, and see the difference. The run that started on LE PANTOS last February began very small; it grew daily, until now it is unprecedented. Why is this? The answer is very simple: Because it is an article of merit and well worth its price, five cents straight, at GEORGE DERST'S. Corner West Broad and Gwinnett streets. SAVANNAH, GA., May 23, 1893. The Hagey Institute, city: DEAR SIR-It affords me a great deal of pleasure to add my testimonial to those already published relating to benefits derived from treatment at the Hagey Institute. On May 1st I was almost a wreck from the use of liquor. For the past three weeks I have been undergoing your treatment. which has developed a most decided improvement in my health and most effectually destroyed the craving for liquor. In fact, just now, the very smell of liquor is repulsive to me. You have accomplished all, if not more, than you promised. and I do most earnestly urge all who are afflicted as I have been to place themselves at once under your treatment. Respectfully, T. W. HENDERSON.


Article from The Morning News, September 15, 1893

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The Southern Bank. No financial institution in the history of this city has been more intimately connected with the interests of this community or has had a more successful and prosperous career than the Southern Bank of the State of Georgia. It was organized in 1870, and though it has paid regular dividends, it has accumulated a surplus of $533,000, which is equal to its capital stock. It is by far the largest and most elegantly filled up institution in the city. The excellent management of this institution, together with the superior facilities and ample capital and surplus, has enabled it to pass successfully through the financial crisis without the least inconvenience. A foolish run on the savings department of this bank about a month ago had no effect of destroying the confidence of those who deposit in this strong institution, but ratner increased their faith in its superior management. Among the officers and directors will be found names closely indentified with the history of Savannah and the advancement of her business interests and commercial resources. The present officers of the Southern Bank are the following wellknown gentlemen: Capt. John Flannery, president; Mr. Horace A. Crane, vicepresidentand Mr. James Sullivan, cashier. The directors are Messrs. Eugene Kelly, Horace A. Crane, E. A. Weil, H. P. Smart, Lee Roy Myers, S. B. Palmer, John Flannery and J. B. Duckworth.


Article from The Morning News, September 15, 1893

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ber trades is looked for as soon as the tight times are over, and this, of course, promises an addition to the volume of the banking business. Even now, as the stringency is abating, and while it was at its hight, the re- ceipts of produce in Savannah have been larger than at any other port on account of the fact that the Savannah banks have at all times furnished the currency to pay for and to move products of all kinds. On this account products are coming here from all sections that form- erly went to New Orleans. Norfolk, Charleston and other points. Nearly all the Florida trade is passing through Sa- vannah for this same reason, and this port is drawing largely, also, from South Carolina and Alabama. This state of af- fairs is simply due to the fact that the Savannah banks have the money to han- dle the business. # EXCHANGE AND SAFETY DEPOSIT BOXES. So far as exchange is concerned the banks here have handled an enormous amount of it during the year. In rates it has gone back now practically to where it was last year, but during the time that money was selling at a premium, the banks took it only at a discount of one- half of 1 per cent. The banks are taking it now, however, at a discount of one- eighth of 1 per cent. and are selling at par. The banks were ever ready to ex- tend all the accomodation possible to their customers, and they accepted all the exchange offered by them, paying cur- rency for it. Another evidence of the fact so often repeated that Savannah has suffered as little as any city in the country from the depression is that very few people em- ployed safety deposit boxes in which to keep their money during tight times. A considerable money was withdrawn and deposited in these boxes at the time of the slight run on the Southern Bank, which was scarcely felt by that institution. But both before and after that time the money was in circulation, and the boxes are used, when used at all, mostly for the purpose of securing jewelry and valuables.