Corn Exchange Bank - Chicago, IL

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: September 26, 1873
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: ff1b89a4

Response Measures

Accommodated withdrawals

Description

Multiple contemporaneous newspaper reports (Sept 26–27, 1873) describe a short run of about an hour on the Corn Exchange Bank in Chicago; everything was paid and depositors redeposited, with the bank considered very strong. No suspension, receivership, or reopening is reported for this bank in these articles.

Events (1)

1. September 26, 1873 Run

Cause: Rumor Or Misinformation
Cause Details: Short, precautionary/needless run likely prompted by panic and efforts of knowing ones to create alarm; no adverse bank-specific insolvency reported and payments were met.
Measures: Paid all demands during the run; depositors who withdrew redeposited funds; no suspension invoked.
Newspaper Excerpt: There was a run for an hour on the Corn Exchange Bank, but as everything was paid the run was soon stopped. Some who drew have redeposited. The bank is considered very strong.
Source: newspapers

Newspaper Articles (4)

1. September 27, 1873 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN

Article from Memphis Daily Appeal, September 27, 1873

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Article Text

PANIC PARAGRAPHS. The New York stock exchange remained closed yesterday. I IThe Vicksburg banks have suspended for thirty days as a precautionary measure. A Washington telegram yesterday announced the suspension of the banking firm of Faut, Washington & Co. Cincinnati financial matters have resolved into a state of delightful quietude beautiful to contemplate. The governing committee of the New York stock exchange have resolved to give twenty-four hours notice of its opening. Fort Wayne, Indiana, boasts that quiet reigns in financial circles, and that banks are and will continue business as usual. The Peoples' bank of South Carolina, the Peoples' savings bank, and the South Carolina loan and trust company, at Charleston, have suspended. Currency payments at the National bank and other State banks pay as usual. At Little Rock, yesterday, the excitement continued over the city money. The reported suspension of banks in St. Louis and other places continues. Everything is at a standstill. Very few parties take city money, and no greenbacks are in circulation. At Baltimore yesterday, William Fisher & Sons, who are among the leading stock and gold brokers of that city, closed their doors, and say they have been forced by the delinquencies of their customers to suspend business until they can collect what is due them. They expect to pay every obligation in full, and only ask a short indulgence. In New York, yesterday, Senator Morton, being asked to give his opinion as to the present financial panic, said that his conviction was that the worst was over. "I do not expect the affair to subside all at once," he added, "but my feeling is entirely hopeful." Referring to the suggestion that the government ought to come to the reseue, he said the government will do all It can, but it must not evade the law. In New York yesterday the police were called upon to disperse all groups which threatened to interfere with sidewalk traffic. The brokers were by this means driven into the road, but they fared no better there. The police ordered trucks to be driven through the crowd, and so compelled the brokers to scatter in all directions. Driven from the road, some of the most inveterate speculators and curb-stone brokers adjourned to the gold exchange court, and held high carnival there for about rifteen minutes when the sergeant of the police, with half a dozen men, drove them helter-skelter from their refuge. A Chicago telegram yesterday announced that the Union national, Second national and Manufacturers' national banks have suspended. A notice on the door of the former says that the bank has abundant securities, but is compelled to suspend payment on account of the lack of currency until able to realize. Nothing has been lost from the failures, and depositors will be made safe. The Cook county City national and National Bank of Commerce have followed the example of the Union national and closed their doors. There was a run for an hour on the Corn Exchange bank, but as everything was paid the run was soon stopped. Some who drew have redeposited. The bank is considered very strong. Other national banks are paying regularly. There is considerable excitement among business men, and the grain trade shows some effect. Coolbaugh, president of the Union national, is severely censured by other bankers and the whole community, As his extreme course was wholly unnecessary, it is suggested that there must be something rotten in his bank, though it has been regarded very strong.

2. September 27, 1873 Nashville Union and American Nashville, TN

Article from Nashville Union and American, September 27, 1873

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OTHER CITIES. Scattering Failures at Various Points The Chicago Grain Trade Stalled. New Orleans Discounts Certificates 5 per cent. Chicago Six or Seven Banks SusBoard of pend-The Trade Suspend Their Rules-No Grain Market. CHICAGO, Sept. 26-It is announced that the Union National, Second National, and Manufacturers' National banks have A notice on the door of the that bank former, suspended. says has abundant payment secubut is compelled to suspend of lack of currency to has teen lost realize. on rities, account Nothing from safe. until failures able and depositor will be made & Co., the National, LATER-Cook the Commerce City National Bank of have the of the and followed the example Union National and closed their door% There was a run for an hour on the Corn Exchange Bank, but everything was paid and the run soon Some who bank is very ed. stopped. The considered drew have redeposit- strong. Other National banks are paying regularly. There is considerable excitement among business men and the grain trade shows the effect. Coolbaugh, President consured of the by Union other National, is severely the whole as course was extreme bankers and wholly community, be unnecessary. something his It is suggested there must rotten in his bank, though it has been regarded as very strong. [It was Mr. Coolthat on Thursday resobaugh certificate offered the system.] lution adopting the loan The Board of Directors of the Board of Trade at a full meeting this morning unanthe following of which was greeted reading limously passed resolution, with applause the and universally approved. That all rules Resolved, directors of the to board authorizing the board of consider act on complaints of and far for violation such comcontract be suspended so as plaints are based on contracts for delivery of property in the future, made between the of this resolution of the association; ther passage order and and the further furthat the board shall not entertain complaints for the violation of contracts claimed to have been closed during the time indicated reason of the non deposit a that this resolution no case by provided shall of made in margin, in the be held to apply to any trades settlement of existing contracts. The bank failures brought operations on to astend 'Change nearly still rules and the brought action of the board suspending the to a full stop everything except still on rarer occasional settlement of a trade or a cash operation. The following banks continue to transact business as usual: The Commercial National, the Third National Bank, the Montreal Central National. the Corn Exchange, the Fifth, First, Fourth, Germania, International, the Merchants' National Bank, the Illinois, the Northwestern Traders' Bank of Chicago, the Union Stock Yards, Merchants' and Trust Company, the German Mechanics' National, Loan and Marine any ComThere has been no run upon of these although some pany. institutions, amounts of of them curhave paid out considerable To the above list the National Bank, lency. City which should the be officers added have all demands on to be very say There appears paid little presentation. excitement the the on the streets, beyond intense of among feeling people indiguation Union against Coolbaugh, President of the National, who is bitterly denounced by many as having unnecessarily precipitated this suspension to-day. it is authoritatively stated that Coolbaugh this morning received telegran S from his New York correspondents authorizing him to draw for the entire amount of bis balance there and $500,000 additional, which offer he refused. St. Losis Sympathetic--some Banks Paying Currency and Others Issuing Loan Certificates. ST. LOUIS, Sept. 26.-The action of the banks in this city last night seems to be by and an comparamunity, generally approved improved the mercantile manifested and com. this tively buoyant feeling was but when news came banks had forenoon, Chicago closed their that doors, several deep and and business on sprung anxiety up, apprehension became 'Change immed entirely almost lately stopped. Prices and for entirely nominal, except for settlements for grain and an occasional sale futures,

3. September 27, 1873 The New York Herald New York, NY

Article from The New York Herald, September 27, 1873

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REPORTS FROM THE COUNTRY. Additional Suspensions in Chicago. CHICAGO, Sept. 26, 1873. The Board of Directors of the Board of Trade, at a full meeting this morning, unanimously passed the following resolution, the reading of which to the Board of Trade was greeted with applause and universally approved:Resolved, That all the rules of the Board anthorizing the Board of Directors to consider and act or complaints for violation of contract be suspended so far as such complaints are based on contracts for the delivery of property in future made between the passage of this resolution and the further order of the association: and, lurther, that the Board shall not entertain complaints for the violation of contracts claimed to have been closed during the time indicated by reason of the non-deposit of a margin, provided that this resolution shall in NO case be held to apply to any trades made in the settlement of existing contracts. The following banks continue to transact business as usual:-The Commercial National, Third National, Montreal, Central National, Corn Exchange, Fifth National, First National, Fourth National, Germania. International, Merchants' National, Illinois, Northwestern, Traders', Chicago, Union Stock Yards, Merchants' Loan and Trust Company, German National, Mechanics' and Marine. There has been no run upon any of these institutions, although some of them have paid out considerable amounts of currency. To the above list should be added the City National Bank, the officers of which say that they have paid all demands on presentation. There appears to be very little excitement among the people or the street beyond the intense feeling of indignation against Mr. Coolbaugh, President of the Union National Bank, who is bitterly denounced by many as having unnecessarily precipitated this suspension of to-day. It is authoritatively stated that Mr. Coolbaugh this morning received a telegram from his New York correspondent authorizing him to draw for the entire amount of his balance there and $500,000 additional, which offer he refused. The Cook County, the City National and the National Bank of Commerce have closed their doors. There was a run of an hour on the Corn Exchange Bank. but as everything was paid the run soon stopped. Some who drew have returned and deposited their money again. The bank is considered very strong. The other National banks are paying regularly. There is considerable excitement among the business men, and the grain trade shows the effect. Suspension of sh Washington Firm. WASHINGTON, Sept. 26, 1873. Fant, Washington & Co. posted a notice on the closed door of their banking house to-day, saying:'We are compelled to suspend payment for the present." The Savannah Banks. SAVANNAH, Ga., Sept. 26, 1873. The Chamber of Commerce had an adjourned meeting at ten o'clock last night to receive the report of its committee, who reported the following:Resolved, That the banks and banking houses of Savannah be recommended to meet the demands of depositors by certifications, to be used as the necessities of holders may require_unti the temporary difficulties be removed, and until exchange can be regulated and currency be received to move the crops. The report was received and adopted, and the committee was instructed to communicate the action of the Chamber to the banks and bankers. The committee reported that they had waited on the banks and bankers, had submitted the resolution of the Chamber to them, and that it met with their acquiescence, and read the following preamble and resolution, which were received as information in compliance with the request of the Chamber:In view of the unprecedented panic prevailing in New York and affecting all parts of the country, paralyzing legitimate business: and for the purpose of protecting the commercial interests of our community and enabling the banking institutions of the city to turnish the tacilities essential to forwarding the crops of the country with safety to all parts: Resolved, That the banks and banking houses of Sa. vannah will only meet demands of depositors by certification of checks, to be used as the necessities of the holders may require, until the temporary difficulties are removed and until exchange can be negotiated or currency be received to move the crops. The banks to-day are acting according to this resolution. Suspension of Banks in Charleston, s.c. CHARLESTON, S. C., Sept. 26, 1873. The People's Bank of South Carolina, the People's Savings Bank and the South Carolina Loan and Trust Company have suspended currency payments. The national banks and the other State banks pay as usual. A Correction. PETERSBURG, Va., Sept. 26, 1873. To THE EDITOR OF THE HERALD:The telegram in your paper of the 25th inst. from Richmond, of the intended suspension of the Bank of Petersburg, is entirely without foundation, as we have not and will not fail to meet any demands that may be made upon us. Will you please, therefore, make the correction. Yours, very re neatfully LONIO

4. October 4, 1873 The Workingman's Advocate Chicago, Philadelphia, Detroit, Cincinnati, IL

Article from The Workingman's Advocate, October 4, 1873

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The Bank Suspension. The past has been a week of absorbing in terest to the citizens of Chicago most especially so to those who were interested in financial affairs. The failures of Jay Cooke and Henry Clewes were not at first regarded as menacing financial matters in this city, but as the time sped on, and the real effect of these failures began to develop itself, it became apparent that some precautionary measures would have to be taken in order to prevent a panie in this city. Hence, the ini tiatory steps were taken by the SAVINGS BANKS determining to pay only small sums. and requiring the legal notice sixty days for larger amounts. Such an announcement ap pearing in the daily press of Monday last, was taken advantage of by some of the know ing ones, who endeavored to create a run on the banks, and thereby bring about a panic, but the steps taken by the banks spoiled this little game, and the depositors displayed AN UNUSUAL DEGREE OF CONFIDENCE A large number called at the several banks to make inquiries in regard to their deposits, and being assured that they were perfectly safe, retraced their steps with joyful hearts. Some Doubting Thomases gave notice of withdrawal. This happened more or less in all the savings banks, but not in a degree to create any alarm. The Merchants', Farmers and Mechanics', whose list is as large, if not larger, than any similar institution in the city, from Monday to Saturday received a little over two hundred notices, which abundantly bespeaks the confidence of the depositors in the management and conduct of affairs of the bank. While there has been no run on the savings institutions of the city, the National banks suffered considerably, on account of needless runs being made upon them. Many of them were obliged to suspend payment entirely. This forms a striking contrast to the condition and standing of our savings banks. They have confined themselves to legitimate business, out of the profit of which they will be enabled to pay their depositors the interest, as they contracted to pay. In times of high financial excitement like the present, it is not & little amusing to listen to the logic or rather ill-logie of some would-be wiseacres, who are generally to be found on the corners of streets, or other spots adjacent to the scene of excitement. One of these occurred during the excitement which followed the closing of the Union National, on Friday last, and while the run was being made on the Corn Exchange Bank, an individual was demonstrating to a crowd who, perhaps, didn't have a dime in any bank in the United States, how the banks should always keep on hand enough currency to pay their depositors. This is one of the most foolish ideas any man can be possessed of. Money can't lay idle, like labor. It must be earning. If it don't it cannot pay. A may have a dollar to loan; but who is going to hunt up A in in his solitary garret, and hunt up a hundred other A's to borrow a dollar each from them. The thing in itself is preposterous, and here is where the necessity and convenience of our savings banks comes in. While as an individual with a dollar we cannot loan it to make interest on it, yet by depositing it in some reliable institution we swell the aggregate, the business emlabor. This is the nature banks. The which have ploy course accommodate they prudence taken and public, wisdom in the of and present savings of the crisis has been fully demonstrated. While it is a certain fact that PO one knows the standing of the National banks, it is well understood that our savings banks are sound to the core, and when the time of their legal notice expires they will be prepared to pay every depositor that has a cent in their keeping. GOOD FOR PLUMBERS. Plumbers are now