Article Text
. ARMOUR & Co. did the square thing in preventing a run on the Chicago bank. It was wise.
4278. Chicago Bank (Chicago, IL)
Bank Information
- Episode Type
- Run Only
- Bank Type
- state
- Start Date
- June 9, 1893
- Location
- Chicago, Illinois (41.850, -87.650)
Metadata
- Model
- gpt-5-mini
- Short Digest
1fe2dc50
Response Measures
Accommodated withdrawals, Borrowed from banks or large institutions, Capital injected
Description
Multiple contemporary newspapers (June–July 1893) describe a heavy run on a Chicago bank caused by an alarmed depositor; the bank survived with help from Armour & Co. and large borrowers who paid in. No suspension, reopening, or receivership is mentioned.
Events (2)
1.
June 9, 1893
Run
- Cause
- Rumor Or Misinformation
- Cause Details
- An alarmed depositor withdrew several thousand dollars, triggering widespread withdrawals driven by depositor panic/nervousness rather than disclosed insolvency.
- Measures
- Armour & Co. and other wealthy depositors/borrowers provided large sums; bank sent circulars asking borrowers to repay part of loans; tellers kept doors open and paid out as possible.
- Newspaper Excerpt
- An alarmed depositor of a Chicago bank a few days ago drew out his deposit, amounting to several thousand dollars, and thereby caused a heavy run on the bank. The bank survived the run...
- Source
- newspapers
2.
July 19, 1893
Other
- Newspaper Excerpt
- When the run started ... we simply sent out circulars asking us send borrowers part to in of their loans, and many of the richest men in Chicago came promptly forward with large amounts Mr. Armour ... tendered the whole amount of his debt ... Mr. Lester $600,000 ... both offered us more money needed it ... the money is coming back to us again very fast, and stronger than ever, both in cash and in reputation. ... those who drew their money lost about five months' interest, while now the money is coming back to us again very fast, and stronger than ever, both in cash and in reputation.
- Source
- newspapers
Newspaper Articles (3)
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Article Text
AN ALARMED An alarmed depositor of a Chicago bank a few days ago drew out his deposit, amounting to several thousand dollars, and thereby caused a heavy run on the bank. The bank survived the run, but the man who caused it was robbed of every cent on the way home.
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Article Text
THE PASSING THRONG Among the Alaska tourists who cause the Queen esterday is w. He is viee of the Illinois Company. of which his is famous bank by never closing its doors for "Yes, in lieve the Grot heard of to day keeping depositors to draw their money ou:, said the Rainier last night "We 000,000 83,000 depositors, and of this number only 2,000 drew out their money. When the run started that the doors of the bank would not close until the last who wanted his money paying five and although paid, before tellers kept busy the the We lines kept open, however, for such others might our closed in. for three and night. in the morning and before noon had $500,000 tional cash, and when the began. when it than vaults more our money and did the strain. balk of our money loaned at call security Only very small fraction is loaned on real estate security. It takes too long time to convert such securities into cash to make them available for such institutions ours. While most of our loans are usually made payable on demand have never in the history of the call bank rower, not even while this great run on. We simply sent out circulars asking us send borrowers part to in of their loans, and many of the richest men in Chicago came promptly forward with large amounts Mr. Armour borrower extent of $400,000. although be tad $200,000 deposit the same time. He at once tendered the whole amount of his debt Mr. Lester $600,000, although he also had $200,000 de posit, and he did the same as Mr. Armour, and both offered us more money needed it Others did the same thing But the poor people werepaniestricken and when business men of fered them the amounts of their claims against the bank they thought there was some shenanegan about it and refused to take their money from anybody except the bank When people are in that state of mind it is less to reason with them. Many of them also had been bitten before during the panic of 1873, hen nearly all the banks in Chicago failed, some of them badly. Our bank just starting then and we the storm easily. Our bank gainer by the run made on because those who drew their money lost about five months' interest, while now the money is coming back to us again very fast, and stronger than ever, both in cash and in reputation. Yes, I have some stock in the World's fair aterprise, but of course we don't expect to get anything back on it, nor on the $5,000,000 bonds voted by the city. But the second issue of $5,000,000 bonds of which only $4,000,000 were issued. we hope get something We didn't like to take this issue, but the fair needed help and so the railroads and the banks got together and the banks agreed to subscribe for their part of the Issue in proportion to their deposits. Perhaps there is some chance of our getting some thing back on this loan, but it will not be very mucb. think your city here is wonderful and your country is grand. The fact that during a this financial depression you have not had single business failure of any kind is remark. able and speaks loudly for the solidity of your institutious think the present is good time to invest Stocks are away down and bonds cheap. and there is bound to be rise later on. But this applies only to good properties.' H. Martin, the manager of Robert Mantell's company is something of newspaper man as well theatrical man: in fact. as he has been railroad man. he may be considered a jack of all trades. He formerly wrote special article for the Indianapolis Journal and the Indianapo lis News, and was the author of an article the Sault Marie canal for the Chicago Record and of several other articles published in that paper. Last winter be began writing for the McClure syndicate, and was the author of article on-the Mormon temple published in the has POST-INTELLIGENCEE He written and forthcoming articles on the early life of James Whitcomb Riley, on the early freighting days across the plains, on the Indian soldier il lustrated by the troops recruited among the Sioux after the Wounded Knee battle. and on the journey of the Mormons across the plains from Nauvoo to Utah. While in New York he compiled guide to the city arranged in ten tours for visitors who have that length of time to spend. His handwriting has improved of late years, for when he was agent of the Big Four railroad at Indianapolis he reputed to have written a ticket for man who has been traveling on it ever since because the names of the stations written on it in Mr. Martin's cultar might be taken for those of any two stations in the United States. and every conductor gave the task of making out the puzzle. like Mr. Martin is treasure to deadhead, but expensive luxury to a rail road. An entertaining story of hard travel is told by Joseph H. Green and A. Gordon. who have just returned from Silverton and the Little Chief mine. Gordon is one of the owners of this mine, and to reach it they crossed the divide from accompanied by Miss Jesale McLellan and Miss Neille Field. hese are the first women who ever dared to make the attempt go over the divide. The party had to climb about 5,600 feet and then descend, the whole distance being about seven milea. The journey occupied an entire day. and the women proved to be good climbers and good sliders. They wore habits short and skirts. and riding were in the lead most of the time. Where the descent was made there slide for about 3,000 feet over the snow. which is 150 feet deep in places. The method is to get together small pile of brush, which serves as a tobag this person while taking the shoot downward. Each had a tobaggan of skind, and made the descent safely: The following tourists who came in from Alaska are stopping at the Rainier Langenour and family, Foodland, Cal B. Low enstein. New York: Illiam L West. Mrs Fanay West-Blodgett, St. Paul Mr and Mrs. o. Goddard, J. Goddard, Miss Emma Goddard. Mr and Mrs. W H. Mitchell. Miss Mitchell, Miss M Mitchell. Mrs. Stevens, Mrs. w H. Reid, Mrs. G. Fry. W. G. Kimball, Chicago: Mr. and Mrs. A. man, Miss Mary of Springfield, o. Mrs. Henry E Greene, Miss Greene, Henry E. Greene, Will iam Miss Miller, of Amsterdam Haligarten of London A. J. Vial, Vial, of Portland: Sherrill Babcock, of Gartner, of Portland, adjuster for the Insurance Companies, yesterday on home in Idaho, guest of the about in Elk the from that the cabins to water and stare men and horses. has declined an appointment by suxiliary of the World's