3308. German Savings Bank (Davenport, IA)

Bank Information

Episode Type
Run Only
Bank Type
savings bank
Start Date
November 26, 1886
Location
Davenport, Iowa (41.524, -90.578)

Metadata

Model
gpt-5-mini
Short Digest
26ac04bb

Response Measures

Accommodated withdrawals, Public signal of financial health

Description

Multiple contemporaneous newspaper accounts (Nov 26–29, 1886) report a run on the German Savings Bank in Davenport triggered by widely circulated but unfounded rumors originating from discussions in Rock Island. The bank met withdrawals and received heavy counter-deposits/rescue subscriptions; it did not suspend or close in the coverage, so classified as run_only.

Events (1)
1. November 26, 1886 Run
Cause
Rumor Or Misinformation
Cause Details
Unfounded rumors and misconstrued remarks (traced to a Rock Island beneficiary society discussion) circulated that the bank was insolvent; reports say the rumors had no foundation.
Measures
Bank promptly met withdrawal demands; friends and merchants made heavy deposits and subscriptions to bolster confidence; bank issued public statements denying insolvency.
Newspaper Excerpt
Some excitement existed here to-day over the generally circulated rumor that the German Savings Bank was insolvent. At the opening of the bank ... their demands for money promptly met.
Source
newspapers

Newspaper Articles (10)
1. November 26, 1886 Rock Island Daily Argus Rock Island, IL
Article from Rock Island Daily Argus, November 26, 1886

Click image to open full size in new tab

Article Text

A SENSATIONAL REPORT. Rumors of a Bank Suspending in Davenport Said to have Originated in Rock Island. Manv wild and exciting rumors were afloat here, and in Davenport yesterday, concerning the alledged embarrassment and suspension of the well known Gers man savings bank at Davenport. Excitement became intense as the rumors spread, and much anxiety was expressed by those having deposits, in the institus tion, and business men generally. The reports were to the effect that for two weeks back there had been an unusual run on the bank, and that some of the heaviest depositors had withdrawn their funds, and placed them elsewhere. Others, it was stated, had de manded their money and the bank had been unable to meet them. On the day before Thanks giving $600 had been taken out by depositors on this side of the river alone. The Davenport daily Der Democrat. the German paper printed at Davenport, and the proprietor of which is president of the bank in question contained an extended article on the matter yesterday morning in which it was stated that the rumors were without the least foundation, and had their origin in the banks of Rock Island, the officers of which had used this method of preventing Rock Island people from depositing their money in the vaults of Davenport banks. Last evening President Lischer, of the German savings bank was interviewed. and he stated that, while the rumors had occasioned a little uneasiness among depositors and the withdrawing of some of the deposits, claimed that the bank had never been in in more prosperous condition than now, and was ready to meet any demands that might come upon it, no matter how urgent The German savings bank at Daven port has always been regarded as one of the soundest in the state of Iowa. Its directors are all successful business men, and careful financiers. and while these unfounded rumors will naturally prove in 8 measure detrimental to the bank, they will in no way cause it to shake. From the fact that the banks of Rock Island pay no interest on deposits, and the Davenport banks pay a rate of four and five per cent, it is not surprising that a great deal of the money of this city finds its way into the safekeeping of the banking houses across the river where a gain is realized by 80 doing.

2. November 27, 1886 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, November 27, 1886

Click image to open full size in new tab

Article Text

A Run on a Bank Promptly Met. DAVENPORT, Ia., Nov. 26.-Some excitement existed here to-day over the generally circulated rumor that the German Savings Bank was insolvent. At the opening of the bank, this morning. quite a crowd gathered at the doors. They entered the bank only to find their demands for money promptly met. The friends of the bank improved the occasion to make deposits freely. There is not a shadow of foundation for the rumor, which is believed to have been started by interested parties.

3. November 27, 1886 Rock Island Daily Argus Rock Island, IL
Article from Rock Island Daily Argus, November 27, 1886

Click image to open full size in new tab

Article Text

THE DAVENPORT BANK. The Run Subsides-Prompt Action of the Merchants. The run on the German Savings Bank at Davenport has subsided somewhat tos are still demandpeo day, though the ing their deposits, and these demands are all promptly met. There is a crowd about the bank. and as much money seems to be going in as there is called for. Numerous business houses in Davenport informed their employes who had money deposited in the bank that it they were afraid to leave their money where it was they would pay them dollar for dollar and take charge of it themselves, and this had much to do with stopping the run. The amount paid out during the day was a great deal smaller than was supposed, amounting altogether to between $20,000 and $30,000. The following card was issued yesterday: Rumors have been circulated by ignorant and mischievous persons that the German Savings bank IS not in a safe condition. These rumors, if believed, will cause many depositors to withdraw their savings and lose the interest on their money, and will also discourage economy among people who, without the aid of savings banks, would squander their earnings. Not only this, but the belief in such rumors will cause a feeling of distrust which will be injurious to the city, and remove from circulation money needed for business purposes. The Ger man Savings bank is perfectly solvent, has a large surplus and can and will pay every depositor who wants his money. In view of the threatened injury to the depositors and to the business of the city, but not because the bank needs any as sistance. we advise all persons to leave their money on deposit as heretofore, and to show that we have confidence in the bank and mean what we say we will take deposi: books or checks on said bank for any debts due us. or any purch uses peo ple may wish to make of us.

4. November 28, 1886 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, November 28, 1886

Click image to open full size in new tab

Article Text

Stood the Run. Special to the Globe. Davenport, Ia., Nov. 27.-The run which was started on the German Savings bank yesterday was confined to about 200 depositors. There is no excitement, and more money has been deposited than drawn.

5. November 29, 1886 Rock Island Daily Argus Rock Island, IL
Article from Rock Island Daily Argus, November 29, 1886

Click image to open full size in new tab

Article Text

THE FINANCIAL FLURRY. The Davenport Bank-run Over-Alleged Origin of the Trouble The Davenport Democrat of yesterday morning has the following to say of the recent run on the German Savings bank across the river, and the alleged origin thereof: Tue old admonition "behold how great a matter N little fire kindleth," uttered eighteen hundred years ago, never had a better exemplification than that in this city during the past few days in the run on the German Savings bank. The origin of the flurry has been traced to & meeting of a beneficiary society in Rock Island two weeks ago. The society had some funds to take care of, and the question arose as to the custody of the money. There are no savings banks in Rock Island city, and members of the society who deposited earnings in savings banks in Davenport advocated the placing of the money where it could draw interest. Discussion ensued as to the safety of banks, anyway; and the meeting. instead of taking action. adjourned. leaving the fund in the possess sion of the treasurer, holding him responsible. The members of the society went about making inquiry as to the cons dition of the savings banks in Davenport. The inquiries were transformed into reports and as early as Monday last. unexpected calls for déposits were made at one of the savings banks in this city. And the depositors who came to secure their money called upon friends in Davenport and related their fears. The result was the run on the German Savings bank which commenced on Wednesday last, although another bank experienced the first effects of the rumor. Such was the origin of the flurry at the German Savings bank. which set in. really. on Wednesday last, and terminated yesterday. The excitement ended as suddenly as it begun. On Friday the amount taken out by depositors was about $40,000. On Saturday it was $15,000, and the amount of the day's deposits exceeded the sum of withdrawals. At 5 o'clock last evening the writer passed the bank Three women were on the sidewalk looking in and three men were inside at the cashier's desk, and the men were depositing their usual Satur day evening amounts. The reporter watched the proceedings. The three men came out, and walked away with the three women. their wives. From that time for two hours, workingmen entered the bank, and did business with the cashier: Only four asked to have their books balanced and received their money. The others made deposits. had the amounts credited on their books and came out for home. The Der Demokrat, of Davenport, in its yesterday morning's issue, makes the following manly retraction relative to the reflections cast upon the banks of Rock Island: At first it was supposed that the ru mors had originated in Rock Island and that persons connected with Rock Island banks were to blame for it, but we are glad to say, that this proves to be untrue. It seems to have been caused by remarks made inadvertently during a discussion relative to the securing investment of funds of a charitable association, remarks which probably were misunderstood and gave rise to undue apprehensions AS to the security of the bank.

6. December 2, 1886 The Brookhaven Leader Brookhaven, MS
Article from The Brookhaven Leader, December 2, 1886

Click image to open full size in new tab

Article Text

A RUN on the German Savings Bank at Davenport, Ia., on the 26th caused some excitement in that city, but it was counteracted by heavy deposits by its friends. LAWRENCE BETHUNE, of Amargo, N. M., has been sent to the penitentiary for robbing the mails. INVESTIGATION shows that the Continental Hotel fire at Chicago, on the 25th, was the work of incendiaries. The building was fired in six places. JOHN MALLORY, a Missouri Pacific section foreman, was killed at Leavenworth, Kas., on the 25th, by walking off a trestlework. AN agreement has been entered into between German and English steamship companies whereby emigrants' rates will be advanced. ST. LOUIS ranks seventh among the cities of the country in special letter delivery business for the past year. A WEALTHY citizen of Birmingham, Mich., was lately the recipient of a letter from the Cuban sharpers who swindled the Philadelphians. THE inside history of the packers' strike, as published at Chicago, places Master Workman Butler in the unenviable position of having worked the strike for political advancement. A NUMBER of German Socialists who took part in a public demonstration have been sentenced at Berlin to various terms of imprisonment at hard labor. A SYSTEM of weather service similar to that of the Government is to be estabfished by the Union Pacific Railroad Company all along its lines. EXTENSIVE preparations are being made for the celebration of the sixty-fi(th anniversary of the independence of the Isthmus of Panama. HERMAN BLICKENDORFER, whose home was at Lebanon, Mo., while out with a surveying party in Oregon, on the 25th, was killed by the accidental discharge of a pistol. PROCEEDINGS have been commenced against John Dillon, M. P., for his utterances on the rent question in a speech delivered at Woodford, Ireland, on October 18. THE Winn Parrish (La.) court-house burned on the 26th with all the records. ABOUT one-half of the damage claims growing out of the Rio disaster have been settled by the Chicago, Milwaukee and St. Paul Railroad Company. IT is reported that the Poe family, who were thought to have been burned to death in Knox County, Ky., a month ago, were in reality murdered by a neighbor and his wife. The crime was witnessed by their young son, who has told all about it. IT is intimated that Secretary Manning, in his report, will recommend a two per cent. refunding bond for the benefit of National banks wishing to continue their circulation. ALICE GRIDLEY, aged four years, fell upon a stove during the absence of her mother at Akron, O., on the 26th, and was SO severely burned that death ensued shortly. ROBERT HILL shot and killed his brother, Tony, at Atlanta, Ga., on the 26th, and then, placing the pistol to his own temple, killed himself. The trouble was caused by whiskey.

7. December 2, 1886 Iron County Register Ironton, MO
Article from Iron County Register, December 2, 1886

Click image to open full size in new tab

Article Text

THE sugar experiments conducted by the Department of Agriculture at Fort Scott, Kas, have resulted in a great disappointment to the advocates of the carbonatation theory. COLONEL HUSTON, cha rman o: the InJana Republican State central commitfee, in an interview at Dallas, claimed the Legislature of his State for his party, and said that Harrison would be the Senator. THERE were 189 failures in the United States during the seven days ended the 26th. JOHN CAVANAUGH, of Jersey City, N. J., has been held for trial for the murder of Patrick Hayden. A RUN on the German Savings Bank at Davenport, Ia., on the 26th caused some excitement in that city, but it was counteracted by heavy deposits by its friends. DUBLIN is agitated with the wildest rumors relating to the Government's intentions. LAWRENCE BETHUNE, of Amargo, N. M., has been sent to the penitentiary for robbing the mails. INVESTIGATION shows that the Continental Hotel fire at Chicago, on the 25th, was the work of incendiaries. The building was fired in six places. JOHN MALLORY, a Missouri Pacific section foreman, was killed at Leavenworth, Kas,, on the 25th, by walking off a trestlework. AN agreement has been entered into between German and English steamship companies whereby emigrants' rates will be advanced. ST. LOUIS ranks seventh among the cities of the country in special letter delivery business for the past year. A WEALTHY citizen of Birmingham, Mich., was lately the recipient of a letter from the Tuban sharpers who swindled the Philadelphians. THE inside history of the packers' strike, as published at Chicago, places Master Workman Butler in the unenviable position of having worked the strike for political advancement. A NUMBER of German Socialists who took part in a public demonstration have been sentenced at Berlin to various terms of imprisonment at hard labor. A SYSTEM of weather service similar to that of the Government is to be established by the Union Pacific Railroad Company all along its lines. EXTENSIVE preparations are being made for the celebration of the sixty-fifth anniversary of the independence of the IsthM'S of Panama. HERMAN BLICKENDORFER, whose home was at Lebanon, Mo., while out with a surveying party in Oregon, on the 25th, was killed by the accidental discharge of a pistol. PROCEEDINGS have been commenced against John Dillon, M. P., for his utterances on the rent question in a speech delivered at Woodford, Ireland, on October 18. THE Winn Parrish (La.) court-house burned on the 26th with all the records. ABOUT one-half of the damage claims growing out of the Rio disaster have been settle by the Chicago, Milwaukee and St. Paul Railroad Company. IT is reported that the Poe family, who were thought to have been burned to death in Knox County, Ky., a month ago, were in reality murdered by a neighbor and his wife. The crime was witnessed by their young son, who has toll all about it. IT is intimated that Secretary Manning, in his report, will recommend a two per cent. refunding bond for the benefit of National banks wishing to continue their circulation. ALICE GRIDLEY, aged four years, fell upon a stove during the absence of her mother at Akron, o., on the 26th, and was so severely burned that death ensued shortly. ROBERT HILL shot and killed his brother, Tony, at Atlanta, Ga., on the 26th, and then, placing the pistol to his own temple, killed himself. The trouble was caused by whiskey. MRS. CHARLES SMITH met with a horrible death at Charlotte, Mich., on the 26th. While working about the house her clothing caught fire and she was burned to a crisp. A MOST remarkable haul of fish was made at Peoria, III., on the 26th by Walters the

8. December 3, 1886 The Mitchell Capital Mitchell, SD
Article from The Mitchell Capital, December 3, 1886

Click image to open full size in new tab

Article Text

A False Rumor Causes a Run on a Bank. DAVENPORT, Iowa, Nov. 27.-Some excitement existed here among the nervous today, over the generally circulated rumor that the German Savings bank is insolvent. At the opening of the bank this morning, a crowd gathered at the doors, mostly women. They entered the bank to find every demand for their money promptly met, and friends of the bank improving the OCcasion to make deposits freely. There is no shadow of a foundation for the rumor, which is believed to have been started by interested parties, as the bank is the largest in the state and is the most prosperous. It was never more successful than it is now, and has sustained no losses whatever.

9. December 3, 1886 The Bolivar Bulletin Bolivar, TN
Article from The Bolivar Bulletin, December 3, 1886

Click image to open full size in new tab

Article Text

Court of Oyer and Terminer in New York on the 25th discharged the jury in the case of John Lohman, who is charged with having killed his wife by throwing her out of a window, the jurors being unable to agree. At the last ballot they stood 11 to 1 in favor of acquittal. A RUN on the German Savings Bank at Davenport, Ia., on the 26th caused some excitement in that city, but it was counteracted by heavy deposits of its friends. DUBLIN is agitated with the wildest rumors relating to the Government's intentions. THE Canadian Government has ordered that no vessels be allowed to pass through the Welland canal on Sundays. AN agreement has been entered into be= tween German and English steamship companies whereby emigrants' rates will advanced. ST. LOUIS ranks seventh among the cit= ies of the country in special letter delivery business for the past year. A SYSTEM of weather service similar to that of the Government is to be established by the Union Pacific Railroad Company all along its lines. EXTENSIVE preparations are being made for the celebration of the sixty-fifth anniversary of the independence of the Isth= mus of Panama. A WEALTHY citizen of Birmingham, Mich., was lately the recipient of a letter from the Cuban sharpers who swindled the Philadelphians. THE inside history of the packers' strike, as published at Chicago, places Master Workman Butler in the unenviable posi. tion of having worked the strike for political advancement. ABOUT one-half of the damage claims growing out of the Rio disaster have been settled by the Chicago, Milwaukee & St. Paul Railroad Company. A Amostremarkable haul of fish was made at Peoria, III., on the 26th by Walters & Co. At one haul of the seine they brought in 35,000 pounds of fish. The largest three were cat-fish, weighing together sixty= five pounds, the largest weighing forty pounds. The entire catch was shipped to Kansas City. THE Comptroller of the Currency argues strongly for a continuance of the National banks. AT Superior City, Wis., litigation has been begun over the ownership of onehundred and sixty acres of land within the limits of the city. ON the 27th severe earthquake shocks were felt in various parts of Asia Minor THE firm of Bullock & Co., New York, have concluded the purchase of the Memphis (Tenn.) water-works, the consideration being $500,000. THE new two-dollar silver certificates will be ready for issue by December 10. THE acting Surgeon-General reports that the health of the United States army was never so good before or the death rais so low yAs the result of the season of 1886 the St. Louis Exposition made a net profit of $59,939.99, a marked increase over former years, notwithstanding increased expenses. FOR the five thousand guineas stake to be run in England in 1889, 614 horses, all yet unborn, have been entered. This is the largest entry ever recorded. THE latest sensation in Scotland is the seizure, among other chattels, of a baby for rent on Lord MacDonald's estate in Pennless. The child was listed at the value of sixpence, while a dog was valued I at a shilling. ADVICES from Buenos Ayres indicate o that cholera is spreading with marked e rapidity in South America. i THE report of General Superintendent e Kimball shows great improvement in the Government Life-Saving service. S THE gates to the White House yard at Washington have been closed mornings , recently on account of ungentlemanly be e havior of treasury clerks. h A SLIGHT shock of eartbquake was felt 1 throughout Columbia, S. €., OM the 28th, f shaking loose windows, crockery, etc. The S tremor lasted six seconds and was accom. panied by slight detonations. e ON the 28th the cables at the northwest corner of the Niagara suspension bridge were successfully transferred from the d old stone tower to the new iron one by the use of powerful hydraulic jacks e Traffic was suspended during the operation. Other transfers will follow at week1, ly intervals. The old towers are to be 11 taken down.

10. December 3, 1886 The United Opinion Bradford, VT
Article from The United Opinion, December 3, 1886

Click image to open full size in new tab

Article Text

Saturday, Nov. 27. A fire on Beverly stre t, Boston, dil considerable damage in wood-working es tablishments. Blind Tom, the famous colored pianist, has been adjudged insane at the instance of his mother. Charl S M. Wentworth, of West Roxbury, Mass., was struck by an engine and hurt so that he died. Most of the employes in the civil estab lishments of the Washington navy yard have been discharged. It is believed that a ring of jobbers was behind the Washington police officials who were allow d to resign. The depositors made a run on the German Savings bank. of Davenport, Iown The merchants support the bank Subscriptions m unting to $85,000 have been made toward a new building for the Providence Young Men's Christian association. The British parliament will meet on Jan. 13. The government will ask for the whole time of the house to deal with the procedure rules. There is no e idenc against Mate Henry P Frank connecting him with the murder of Capt. Carpenter of the schooner Long Island. A letter from Oklahoma, In ian territory, says that the ex sitement following the report of the discov. ry of goll in that country is increasing. Some of the people of Cambridg+ and Eonerville, Mass., are talking of petitioning th legistature to change the boundary line between the two cities. It is ramored that Secretary Whitn y will ask congress for authority to build the cruiser Newark (for which th bil were all in excess of the limit) at the Brooklyn yard. A family of eight persons living in K 10X county, Ky., who it was thought were burn d to d ath, are now believed to have been murd red by a n phew, assist d by his wife, and the building was then set on fire. Mexico has proclaimed the abolition of th int rstate tax system, and expects to increas her domestic and foreign trade this action is to most economic move ever by thereby; important said b made the Mexico. The Union Pacific railway proposes to its line a similar to that under system establish along complete control weather of of the government. It is for the purpose enabling the company to more safely ship live stock and perishable goods. Sunday, Nov. 28. Cholera is spreading to an alarming extent in South America. Sailors on a United States training ship were eating poisoned by canned ham The Cap Cod mackerel season is closed, and seven vessels out of a fle.t of thirteen have paid expenses. Bubu Mohini Mohun Chatteryi, the Hindoo theosophist, is in Boston as the guest of Edwin F. Waters. Henry M. Stanley, the African explorer, is to spend some time in this country lectur ing on the "Dark Continent." The cr WS of two "bug eye boats, oyster catchers, have been lost in southern streams, the captain of one of the boats alone excepted. Reports are being received of disasters along the coast. The barkentine Eschal, from Newfoundland for Sydney, was dashed on the rocks at Point Michaux, near Louisburg, and totally wrecked. No word has been received of the fate of the crew. but they were probably saved A schooner reported as the L. D. Washington, with coal from New York for Bangor, was driven ashore on Folly island, Cape Porpoise, a total loss. The crew escaped. Monday. Nov. 29. Teemer and Hamm offer to row Hosmer and McKay at any time. The new $2 silver certificates are to be ready for distribution this week. Mayor O'Brien has accepted the Demo cratic nomination for mayor of Boston. muel F. Forbes' saw mill at Duxbury Co acr, Vt., has been burned: los: $3500. and, "the human cannon ball," has