David Preston & Company (Detroit, MI)

Episode Information

Episode Type
Run → Suspension → Reopening
Start Date
September 25, 1873
Location
Detroit, Michigan (42.331, -83.046)
Bank Type
private

Metadata

Episode ID
Bank ID
City ID
261617959
Model
gpt-5-mini
Short Digest

Events (3)
1. September 25, 1873 Run
Cause
Macro News
Cause Details
Run of depositors triggered by the wider 1873 financial crisis and runs on savings banks after Jay Cooke & Co.'s failure.
Measures
Paid small checks; required thirty days' notice for large amounts; kept open two hours to pay out
Newspaper Excerpt
Early in the morning a run was commenced at the private banking-house of David Preston & Co.
Source
newspapers
2. September 25, 1873 Suspension
Cause
Macro News
Cause Details
Suspension occurred amid the regional/national panic following Jay Cooke & Co.'s failure and heavy withdrawals.
Newspaper Excerpt
David Preston & Co., and F. L. Seitz & Co., bankers, have suspended.
Source
newspapers
3. September 27, 1873 Reopening
Newspaper Excerpt
David Preston & Co., bankers, of this city, resumed business to-day, after a suspension of two days.
Source
newspapers

Newspaper Articles (15)
1. September 26, 1873 Wilmington Daily Commercial Wilmington, DE
Article from Wilmington Daily Commercial, September 26, 1873

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JENKINS & ATKINSON. WILMER ATKINSON, Publisher. For Terms, Etc., See Second Page. Latest General News. The financial situation is simply a calm-perhaps it might be termed a stagnation. The President and Secretary of the Treasury have come to the conclusion that all the necessary relief has been afforded by the Treasury for legitimate business, and consequently the Treasury will buy no more bonds ot present, nor any sterling exchange. Neither will the payment of the November interest be anticipated. Those opposed to the State Government of Louisiana propose to hold a Mass Convention in New Orleans, on November 24th. Its object is to "institute measures looking to the amelioration of the condition of the people, and to memorialize Congress." The discovery of an "immense" mine in Little Cottonwood, Utah, is reported. It is said to be 25 feet in depth, "exposing large deposite of mineral." It was the schooller Whiting that went ashore at Grand Haven. on Wednesday night. Two men were drowned, the others being rescued. The cholera is disappearing in Paris, the deaths being only twenty per day from that cause. The ceremony of turning the first rod for the first railway in Persia took place recently at Reshd. The meeting called by President Wateon. of the Erie Railway, of persons interested in that road, was held yesterday in London, and attended by about a thousand persons. The proceedings were stormy. Mr. W. stated that the road wanted $80,000.000, immediately, to complete improvements and lay a third rail. Worlen, Webb, & Co., Indianopolis: the Selma Saving Bank. Selma, Ga., the State Bank, New Brunswick. N. J., three banks and one banking house at Augusta, Ga., the first National and De Soto Banks, Memphis. the dollar Saving Bank, Atlanta, Ga., David Preston & Co., and F. & L. Seats & Co., Detroit; all suspended yesterday. The grand "Tournai" of the Knights Templar, at the Academy of Music, in Philadelphia, last evening, was a bandsome affair, and attended by a large number of persous.

2. September 26, 1873 The New York Herald New York, NY
Article from The New York Herald, September 26, 1873

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Excitement and Suspensions in Detroit, Mich. DETROIT, Mich, Sept. 25, 1873. The run on the savings banks was quite extensive to-day. They all insist upon thirty days' notice for large amounts. David Preston & Co. and F. L. Seitz & Co., bankers, have suspended.

3. September 26, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, September 26, 1873

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DETROIT. Special Dispatch to The Chicago Tribune. DETROIT, Mich., Sept. 25.-We have had quite & financial flaring here to-day. There has been a run on the Detroit Savings Bank all day. It has paid all small checks, aud required thirty daye' notico from all others. A large crowd has been in atteudance and the polico have also been present to preserve or. der. The People's Savings Bank was honored WITH A BLIGHT RUN, also, during the whole morning, but the crowd around and In it was not large at any one time. Small depositore were also paid here as fast as they presented their checks as at the other savings bank. On the Wayne County, Mechanica', German, and American there there was not enough of a run to deserve any special mention. Early in the morning a run was commenced at the private banking-house of David Preston & Co., which has for many years dono a largo savings business, and now has many depositors of this class. The bank was kept open for two hours, during which timo a large amount of money was paid out, in the hope that the run might cease and business resumo its regular channels. The ho use had, howover no such resource to full back upon as the notice whi h (Continued on the Eighth Page.)

4. September 27, 1873 Evening Star Washington, DC
Article from Evening Star, September 27, 1873

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Resumption in Detroit, DETROIT, Sept. 27.-David Preston & Co., bankers, of this city, resumed business to-day, after a suspension of two days. The Situation in Ohio ONLY ONE SESPENSION IN TOT one

5. September 29, 1873 The Rutland Daily Globe Rutland, VT
Article from The Rutland Daily Globe, September 29, 1873

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two hundred dollars is a mistake. No such action has been taken. The banks are doing business as usual, except that they have stopped advances on the produce until the eastern banks shall be ready to respond. ### THE CLEVELAND BANKS. CLEVELAND, Sept. 27. There is but little excitement among business men in financial circles in this city over the monetary troubles. A feeling of confidence prevails, and there is scarcely a doubt but what the Cleveland banks will get through all right. The savings banks have adopted the sixty days' notice plan, merely as a precautionary measure. A RESUMPTION. DETROIT, Sept. 27. David Preston & Co, bankers of this city, resumed business to-day after a suspension of two days. ### THE TOLEDO BANKS. TOLEDO, Sept. 27. The banks of this city passed over yesterday in good condition. Several of them are stronger than at any time since the beginning of the run. The single failure of a banking house, Kraus & Smith, has had less effect than was apprehended. IN PHILADELPHIA. PHILADELPHIA, Sept. 27. Matters are quiet on Third street, the scarcity of currency being the only trouble experienced from the panic. Many large manufacturing concerns have, with great exertions, raised a sufficient amount of currency to pay full wages to their employes, while other firms have been able to pay only fifty per cent. of the wages due. CLEARING HOUSE OPERATIONS, CHICAGO, Sept. 27. At a meeting of the clearing house association a committee was appointed to draft a plan for the issue of loan certificates to be used in the clearing house in settlement of balances. ### THE STOCK EXCHANGE TO BE OPENED TUESDAY. NEW YORK, Sept. 27, 2.45 p. m. The stock exchange will open for business at the usual hour on Tuesday morning. This announcement indicates improved feeling on the street this afternoon, which has been brought about by a generally believed report that Com. Vanderbilt's brokers have to-day effected a general settlement in their heavy stock transactions. Very few transactions this afternoon. The following are the latest street cash quotations: New York Central 86; Lake Shore 64; Western Union 54; Pacific Mail 29; Rock Island 83; C. C. and I. C. 20; Union Pacific 18; Wabash 41. The details of business for opening the stock exchange will be arranged at the meeting of the governing committee Monday morning BANK COMMITTEE REPORT. At a meeting of the bank committee to-day a report was received from the committee to whom was referred the proposition of the committee of the stock exchange. The first suggestion of the latter had been anticipated by the action of the banks and the suggestion that the associate bank should guarantee payment of certified checks to the extent of their associated capital appears to the bank committee impracticable. In answer to another suggestion of the stock exchange committee the banking committee say the proposed modes of relief seem to look exclusively to the convenience and safety of the stock exchange, without comprehending danger and inconvenience involved to the bank. The clearing house committee have decided hereafter not to make public the amount of loan certificates issued. A special from Louisville says the German Insurance, Masonic savings, German Central savings, and Western banks have temporarily suspended. There is no run on other banks. The Louisville banking company has also suspended. AFFAIRS IN CHICAGO. A Chicago special says the Third National bank is reported closed and nothing doing on change. RECEIVER'S REPORT. WASHINGTON, Sept. 27. The report of the receiver of the first national bank shows that one hundred thousand dollars—the amount of surplus—will cover its losses from realizing on its loans and discounts. If the indebtedness of Jay Cooke & Co. is paid in full its capital stock will be unimpaired. MORE HARD CASH. LONDON, Sept. 27. The steamship Java, which sailed from this port for New York to-day, took £500,000 in bullion.

6. September 29, 1873 The Rutland Daily Globe Rutland, VT
Article from The Rutland Daily Globe, September 29, 1873

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DETROIT. Sept. 27. David Preston & Co, bankers of this city, resumed business to-day after a suspension of two days.

7. October 5, 1873 Nashville Union and American Nashville, TN
Article from Nashville Union and American, October 5, 1873

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A CURIOUS CARD. "The suspension and subsequent resumption of business by David Preston & Co., Detroit, have been announced. The card in which Mr. Preston declared his purpose to resume is peculiar, but said to be characteristic. He starts out in this way : It's good. There's light ahead; there's help in God; there's wealth in Jesus; there's power in prayer, I landed in Detroit Nov. 4, 1848. I borrowed $12 to bring me here. I got a situation at $12 per month, and in less than two months I had paid this $12 from my wages. On the 4th of May, 1852, I married a good wife, and in less than one week thereafter I embarked in business under the style of David Preston & Co., bankers and brokers. My entire capital at that time, out of which I had to furnish my home and start my bank, was less than $506. In May, 1854, I had amassed a fortune of near $5,000, and with this increased capital I opened bank in Chicago. In the month of August following, Mr. A. Klemm, our banker at No. 50 Wall stree:, New York, failed with $6,000 of cur money in his possession, which was all we were worth, and a little more. We never realized but $15 out of this $,6000, and yet I did not commit suicide, run away, ccmpromise, nor resign. I prayed, and worked, and paid, and have been doing the same kind of business ever since, and I expect to fight it out this line to the end of my journey.

8. October 15, 1873 The Morristown Gazette Morristown, TN
Article from The Morristown Gazette, October 15, 1873

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A CURIOUS CARD.-The suspension and subsequent resumption of business by David Preston & Co., Detroit, have been announced. The card in which Mr. Preston declared his purpose to resume is peculiar. but said to be characteristic. He starts out this way : It's good. There's light ahead : there's help in God; there's wealth in Jesus; there's power in prayer. I landed in Detroit Nov. 4, 1848. I borrowed $12 to bring me here. I got a situation at $12 per month, and in less than two months I had paid this $12 from my wages. On the 4th of May, 1852, I married a good wife, and in less than one week thereafter I embarked in business under t e style of David Preston & Co., bankers and brokers. My entire capital at that time, out of which I had to furnish my home and start my bank, was less than $506. In May 1854, I had amassed a fortune of near $5,000, and with this increased capital I opened bank in Chicago. In the month of August following, Mr. A. Klemm, our banker at No. 50 Wall street, New York, failed $6,000 of our money in his possession, which were all we were worth, and a little more, We never realized but $15 out of this $6,000, and yet I did not commit suicide, run away, compromise, nor resign. I prayed, and worked and paid, and have been doing the same kind of business ever since, and I expect to fight it out this line to the end of my journey.

9. October 15, 1873 The Fairfield Herald Winnsboro, SC
Article from The Fairfield Herald, October 15, 1873

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A Cprious Card. The suspension and subsequent resumption of business by David Preson & Co., Detroit, have been announced. The card in which Mr. Preston declared his purpose to re. sume is peculiar, but said to be characteristic. He starts 'out in this way : It's good. There's light ahead there help in God ; there's wealth in Jesus; there's power in prayer. landed in Detroit Nov. 4, 1848. 1 borrowed $12 to bring me here. got a situation at $12 per month, and in less than two months I had paid this $12 from my wages. On the 4th of May, 1852, I maaried a good wife, and in less than one week thereafter I embarked in business under the style of David Preston & Co., bankers and brokers. My entire capital at that time, out of which I had to furnish my home and start my bank, was less than $300. In May, 1854, I had amassed a fortuno of uearly $5,000, and with this increased c pital 1 opened tank in Chicago. In the mouth of August following, Mr. A Klemm, our banker at 50 Wall street, New York, faited, with $6,000 of our money in his possession, which was all we were worth, and a little more. We never realized but $15 out of this $6,000 and yet I did uot comusit suicide, run away, compromise, or resign. I prayed and worked, and paid, and have been doing the san:e kind of business ever since, and I expect to fight it out on this line to the end of my journey. Sept. 25, 1873, we closed our doors at 11 o'clock A. M., not because we had sustained any loss, not because of any fraud or darkness behind the scene, but simply because we could not pay in currency or otherwise, on demand, all that we owed. Previous to this, the banks in New York, Baltimore, Chicago, and many other other places had virtually suspended currency payments, only in such small sun's as they saw fit to pay out.-Cincinnati Gazette.

10. October 16, 1873 The Leavenworth Weekly Times Leavenworth, KS
Article from The Leavenworth Weekly Times, October 16, 1873

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A Curious Card. The suspension and subsequent resumption of bu iness by David Preston & Co., Detroit, have been announced. The card in which Mr. Preston declared his purpose to resume is peculiar, but said to be characteristic. He starts out in this way: It's good. There's light ahead; there's help in God; there's wealth in Jesus: there's power in prayer. I landed in Detroit, Nov. 4, 1848. I borrowed $12 to bring me here. I got a situation at $12 per month, and in less than two months I had paid this $12 from my wages. On the 4th of May, 1852, I married a good wife. and in less than one week thereafter I embarked in business under the style of David Preston & Co., bankers and brokers. My entire capital at that time, out of which I had to furnish my home and start my bank, was less than $500. In May, 1854, I had"amaseed a fortune of nearly $5,000,and with this increased capital I opened a bank in Chicago. In the month of August following, Mr. A. Klemm, our banker at No 50 Wall street, New York, failed, with $6,000 of our money in his possession, which was all we were worth, and a little more. We never realized but $15 out of this $6,000, and yet I did not commit suicide, run away. compromise, nor resign. I prayed, and worked, and paid, and have been doing the same kind of business ever since, and I ex. pect to fight it out on this line to the end of my journey. Sept. 25, 1873, we closed our doors at 11 o'clock a. m., not because we had sustained any loss, not because of any fraud or dark. ness behind the scene, but simply because we could not pay in currency or otherwise, on demand, all that weowed. Previous to this, the banks in New York, Baltimore, Chicago, and many other places, had virtually BUSpended currency payments, only in such email some as they saw fit to pay out.

11. October 16, 1873 Eaton Weekly Democrat Eaton, OH
Article from Eaton Weekly Democrat, October 16, 1873

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A Curious Card. The suspension and subsequent resumption of business by David Preston & Co., Detroit, have been announced. The card in which Mr. Preston declared his purpose to resume is peculiar, but said to be characteristic. He starts out in this way : "It's good. There's light ahead; there's help in God; there's wealth in Jesus; there's power in prayer. I landed in Detroit Nov. 4, 1848. I borrowed $12 to bring me here. I got a situation at $12 per month, and in less than two months I had paid this $12 from my wages. On the 4th of May, 1852, I married a good wife, and in less than one week thereafter I embarked in business under the style of David Preston & Co., bankers and brokers. My entire capital at that time, out of which I had to furnish a home and start my bank, was less than $500. In May, 1854, I had amassed a fortune of near $5,000, and with this increased capital I opened a bank in Chicago. In the month of August following, Mr. A. Klemm, our banker at No. 50 Wall street, New York, failed, with $6,000 of our money in his possession, which was all we were worth and a little more. We never realized but $15 out of this $6,000, and yet I did not commit suicide, run away, compromise, or resign. Iprayed and worked and paid, and have been doing the same kind of business ever since, and I expect to fight it out on this line to the end of my journey."

12. October 16, 1873 Marshall County Republican Plymouth, IN
Article from Marshall County Republican, October 16, 1873

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A Curious Card. The suspension and subsequent resumption of business by David Preston & Co., Detroit, have been announced. The card in which Mr. Preston declared his purpose to resume is peculiar, but said to be characteristic. He starts out in this way : "It's good. There's light ahead; there's help in God; there's wealth in Jesus; there's power in prayer. I landed in Detroit Nov. 4, 1848. I borrowed $12 to bring me here. I got a situation at $12 per month, and in less than two months I had paid this $12 from my wages. On the 4th of May, 1852, I married a good wife, and in less than one week thereafter I embarked in business under the style of David Preston & Co., bankers and brokers. My entire capital at that time, out of which I had to furnish a home and start my bank, was less than $500. In May, 1854, I had amassed a fortune of near $5,000, and with this increased capital I opened a bank in Chicago. In the month of August following, Mr. A. Klemm, our banker at No. 50 Wall street, New York, failed, with $6,000 of our money in his possession, which was all we were worth and a little more. We never realized but $15 out of this $6,000, and yet I did not commit suicide, run away, compromise, or resign. Iprayed and worked and paid, and have been doing the same kind of business ever since, and I expect to fight it out on this line to the end of my journey."

13. November 1, 1873 The New North-West Deer Lodge, MT
Article from The New North-West, November 1, 1873

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'A Curious Card. The suspension and subsequent resump tion of business by David Preston & Co., Detroit, have been announced. The card in which Mr. Preston declared his purpose to resume is poculiar. but said to be character istic. He starts out in this way: "It's good. There's light ahend; there's help in God; there's wealth in Jesus; there's power in prayer I landed in Detroit No vember 4. 1848. I borrowed $12.10 bring me here. I gotasituation at $13 per month, and in less than two months I had paid this $12 from my wages. On the 4th of May. 1852, 1 married n good wife, and in less than one week therenfter I embarked in business under the style of David Preston & Co., bankers and brokers. My entire capital at that time. out of which I and to furnish my home and STRIPS my bank. was less than $500. In May. 1854. I has remassed n fortune of nearly $3,000. and with this increased capital I opened bank in Chicago. In the month of August. following. Mr. A. Klemm. our banker at 50 Wall street, New York, failed. with $6.000 of our money in his possession, which all we were worth and n little more. We never realized but 815 out of this $6,000. and yet I did not commit suicide. run away. compromise. or resign. I prayed. and worked and paid, and have been doing the asme kind of husi. ness ever since, and I expect to fight it out on this line to the end of my journey. "September 25. 1873, we closed our donts at 11 a. m. not because we lond sustained any loss, not because cof any fraud or dark, ness behind the scene, bust simply because we could 89608 pay iso currency or otherwise. on demand. all that we owed. Previous w this. the banks in New York, Baltimore, Chicago and many other pinexa had virtually surpended currency payments. only in such amail sums as they saw fit 10 pay out"

14. November 6, 1873 Grant County Herald Lancaster, WI
Article from Grant County Herald, November 6, 1873

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A Curious Card. / The suspension and subsequent resumption of business by David Preston & Co Detroit, have been announced. The card in whieh Mr. Preston declared his purpose to re.. some is peculiar, but said to be craracteristic. He starts out in this way. It's good. There's light ahead, There's help in God, There's wealth in Jesus; There's power in prayer. I landed in Detroit, November 4, 1848. I borrowed $12 to bring me here. I got a situation at $12 per month, and in less than two months I had paid this $12 from my wages. On the 4th of May, 1852, I married a good wife, and in less than one week thereafter I embarked in business under the style of David Preston & Co., bankersand brokers. My entire capital at that time, out of which I had to furuish my home and start my bank, was less than $500. In May, 1854 I had amassed a fortune of near $5.000 and with this increased capitol Liopened abank in Chicago. In the mouth of August fol lowing, our banker of No. 90, Wall street, New York, failed with 6 000 of our money in his posession, which was all we were worth and a little more. We never realized but $15 out of the $6.000; and yet I did not commit suicide, run away, comprom ise or resign. I prayed, and worked, and paid, and have done the same kind of business ever since, and 1 expect to fight it out on this line to the end of my journey. September, 25, 1873, we closed out our doors ot 11 o'clock, a. m, not be. cause we had sustained any loss, not because of any fraud or darkness behind the scene, but simply because we could not pay in currency, or otherwise, on demand, all that we owed. Previous to this the banks in New York, Baltimore, Chicago, and many other places, had virtually suspended currency payments, only in such small sums as they saw fit to pay out.

15. November 12, 1873 The New York Herald New York, NY
Article from The New York Herald, November 12, 1873

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MICHIGAN. Effects of the Eastern Financial Disasters on the State-The Volume of Business a Trifle Less than Uusual-The Lumber Interest-Cheerless News from the Mines. DETROIT, Nov. 8, 1873. When Jay Cooke & Co. failed the people of Michigan looked upon it as a far off disaster in which they could not be greatly concerned. In two days, however, the tidal wave came swelling in and there was a rush of depositors to the savings banks which, foreseeing the evil, took to hiding themselves behind the provision which granted them thirty days' notice and this subdued the excitement measurably. Private banking houses who had been keeping a line of savings account on their own hook were also assailed and the community was startled at the suspension of David Preston & Co., and surprised, perhaps, at the suddenness of it. David Preston was our Jav Cooke. our reli-