Davenport Savings Bank - Davenport, IA

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: savings bank
Start Date: September 20, 1873
Location: Davenport, Iowa (41.524, -90.578)

Metadata

Model: gpt-5-mini
Short Digest: 11479afe

Response Measures

Partial suspension

Description

Article (dated Sept. 20, 1873 dateline) describes heavy withdrawals (a run) on savings banks and a coordinated temporary restriction: banks paid only $100 in currency and issued certified checks for larger amounts. Business was to continue the next day under the same plan, indicating a temporary suspension with continued operations (reopening/continuation). Cause is the wider financial derangement/panic in larger cities (macro_news).

Events (2)

1. September 20, 1873 Run

Cause: Macro News
Cause Details: Heavy withdrawals triggered by derangement of financial matters in the larger cities (wider panic), draining banks of cash.
Measures: Banks limited currency payments to $100 per depositor and issued certified checks for amounts above $100.
Newspaper Excerpt: There was considerable of a run on the savings banks to-day, but they declined, in most cases, to make immediate payments.
Source: newspapers

2. September 20, 1873 Suspension

Cause: Macro News
Cause Details: Banks adopted temporary payment restrictions due to difficulty obtaining currency and making exchanges caused by financial derangement in larger cities.
Newspaper Excerpt: It was RESOLVED TO TEMPORARILY SUSPEND, and on the opening of the banks this morning the following placard... To pay only $100 in currency to each of our depositors... To give certified checks for all amounts above $100
Source: newspapers

Newspaper Articles (1)

1. September 27, 1873 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, September 27, 1873

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Article Text

Special Dispatch to The Chicago Tribune. DAVENPORT, Ia., Sept. 20.-A meeting of bank officers and Directors of all the city banks was held last night. The session lasted until midnight. The result was that it was RESOLVED TO TEMPORABILITY SUSPEND, and on the opening of the banks this morning the following placard, signed by the officers and Directors, was posted on each National Bank: "The derangement of financial matters in the larger cities, with the consequent difficulty of obtaining currency on produce or other drafts, and of making exchanges between banks, has coinpelled this bank to adopt, for the preeent, the following course: 1. To pay only $100 in currency to each of our depositors who may have that amount due to them. 2. To give certified checks for all amounts above $100, which certified checks will be taken at par by any of the banks of this city on doposit or in payment of any debt due it, the same as cash. 4 This bank never was in a sounder or safer condition than now, and to any ono holding a certified check, who wishes it, either of us will give an individunl note. The above arrangement will not apply to currency deposited on and after this date, which currency will be paid on checks, in full, as usual," This arrangement was adhered to strictly. There were excited crowds gathered about the banks all day, and business has been suspended to a certain degree. The Rock Island and Molino banks adopted the same plan, paying no larger than $100 checks. All merchanta in the three cities FREELY TAKE CERTIFIED at par, thus preventing a total suspension of trade. There was considerable of a run on the savings banks to-day, but they declined, in most cases, to make immediate payments. At the close of business to-day the Davenport Savings Bank filed a statement of its condition, which showed resources amounting to $1,430,185 cash on hand, $52,055. The German Savings Bank also made a sworn state. ment, alowing resources amounting to $938,958; cash on hand, $35,281. SHIPMENTS OF GRAIN AND STOCK to the East have entirely ceased, and the markets are dead, buyers holding over all they have. The effects of the panic yesterday were to drain the banks of much-needed money, over $130,000 MORE THAN USUAL having been drawn out of the banks in Davenport and and Rock Island. The banks will continue business to-morrow, adhering to the same plan adopted to-day.