4459. Globe Savings (Chicago, IL)

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: June 5, 1893
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: 77b13fa4

Response Measures

Partial suspension

Other: Multiple articles describe a coordinated citywide panic after failure of Herman Schaffner & Co.; Globe Savings invoked the 30-day rule (partial suspension) but paid smaller claims and the run subsided within days.

Description

Multiple contemporaneous newspaper accounts (June 5–7, 1893) report a run on Chicago savings banks triggered by the failure of Herman Schaffner & Co. Globe Savings applied the statutory thirty-day notice (demanding lawful notice) but did not suspend or close; runs subsided within days. No specific false-communication incident is described (just groundless rumors), so classified as rumor_or_misinformation and as a run-only episode.

Events (1)

1. June 5, 1893 Run

Cause: Rumor Or Misinformation
Cause Details: Groundless rumors and excitement following the failure of Herman Schaffner & Co. precipitated withdrawals from Chicago savings banks, including Globe Savings.
Measures: Applied the thirty-day lawful notice rule (demanding notice for large withdrawals); paid smaller claims as presented.
Newspaper Excerpt: The Globe Savings applied the thirtyday rule.
Source: newspapers

Newspaper Articles (11)

1. June 6, 1893 Wheeling Register Wheeling, WV

Article from Wheeling Register, June 6, 1893

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CHICAGO, June 5.-The failure of Herman Shaffner & Co., which occurred last Friday. bore fruit to-day in well defined runs which were precipitated on almost If not every one of the savings banks of Chicago. The first to feel the effect of the exeitement was the Bank of Commerce, where a great many Jewish oltizens of the poorer class keep their accounts. These took alarm as the result of the Shaffner faflure and bore down upon the Ban- of Commerce in full force at the opening, hour. The tellers were doubled up and paid checks as fast as presented throughout the day. The excitement spread and soon involved the other savings institutions. The Illinois Trust Co. which has a larger line of this class of deposits than any other bank in the city, amounting at times to over $12,000,000, put on an extra force of tellers and paid every one as rapidly as possible, and at 3 o'clock posted notice on the front door that the bank would remain open until 9 o'clock to-night and as long as the present exeitement should continue. At twelve o'clock to-night the Illinois Trust & Savings Bank was still paying off and the crowd of depositors anxious to draw their money was still as large as ever. The bank officials said that they cared nothing whatever for the run, but were rather pleased than otherwise to pay out the money as it meant & big saving to the institution in interest, the quarterly instalment being due on July 1, and which all depositors who drew their money today have lost. The bank officers estimate that the run so far hasgiven them a net profit of $35,000. It was announced at midnight that the bank would not close as long as a single depositor cared to draw out a dollar. The Hibernian bank, which as the name implies, was the depository for a large number of Irish Americans of small means, was crowded all day. but found no difficulty in meeting the demand, and at 3 o'elock the excitement had perceptibly decreased. The Dime Savings paid & percentage only on each deposit. The Globe Savings applied the thirtyday rule. The Milwaukee Avenue Savings sustained & moderate run throughout the day. and they too kept open house until o'clock to-night. Equally spirited checking was noticeable upon the Prairie State Savings and Union Trust Company, as well as upon the Avenue Savings Bank, but in no case was any alarm felt by well-informed people. Thesituation was greatly aggravated by a number of board of trade brokers, who, for purposes of their own devoted themselves to the circulation of rumors which involved at one time or another nearly every bank in the city, and & large number of leading stock yard operators. Notwithstanding these malicious stories, there is every reason to believe that none of the leading banking institutions, whethor savings, State or national, of Chicago are in any danger of suspending. The failure of Meadowcroft Bros., & minor institution. occurred but aroused little or no interest in the minds of the general public. Their total deposits did not exceed $200,000.

2. June 6, 1893 The Sun New York, NY

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a million dollars was taken out to-day. and the officials said they could stand the run if it lasted all the week. The Globe Savings. In the Monadnock building. is a New England institution. No run was noticed until : o' clock and then the legal notice taking advantage of thirty and sixty days' limit, WAS posted. The Globe Savings is going to take things easy. For the first time in many months the Government gold reserve in the Chicago SubTreasury has been drawn on to meet the gold shipments from the East to Europe. A first consignment of $1,000,000 has been despatched. This shipment WAS made up of $20 gold pices which were placed in canvas sacks and delivered to the United States Express Company for shipment to the East. There is yet a balance of more than $7,000,000 in the Sub-Treasury in Government funds. This is being added to daily by many of the Chicago banks. which are largely depositing gold for other currency. The very large stock of currency held for safe keeping at the SubTreasury for the convenience of local banks has been almost exhausted. To-day a single bank drew out $50,000. The A. Armstrong Company made A voluntary assignmentto-day to James P. Sherwin. The assets are $271,000 and the liabilities are $100,000. The Armstrong Company for twenty years has been manufacturing and dealing in uniforms. regalias. society and church goods in this city and Detroit. In the absence of the members of the firm on Saturday evening the Sheriff took possession of the store and held it until this morning. when the attachment suit was satisfied and a stipulation to that effect filed in the Superior Court. The news of the suit had coneabroad.ar attachments were threatened from all the creditors. To avoid that contingency and so save themselves and all their creditors. they made a volutary assignment. The Sheriff to-day seized the property of a A. Weissenbach. a clothing and shoo merchant at Eighteenth and Halsted streets and 228 and 230 Milwaukee avenue. Execution was made on judgments aggregating $26,000. Weissenbach made a voluntary assignment this morning. The liabilities are $75,000 and the assets $50,000. On the Board of Trade the bears had things all their own way. and a very panicky feeling existed. Wheat broke 2 to 3 cents A bushel. corn 14 to 1% cents. oats 1 to 1% cents. pork $1.20 to $1.30 per barrel. lard 30 cents per 100 pounds. and ribs 40 cents per 100 pounds. July wheat. the favorite option. sold as low as 60% cents, and cash wheat dropped to 64% conts, or 24 cents below the inside quotation established after the collapse of the Harper deal six years ago. The financial news was the main cause of the weakness. and there was a small panic among all classes of holders. The Nassau Bank. at Beekman and Nassau streets, is the New York correspondent of Meadowcroft Bros. President Francis M. Harris and Cashier W. H. Rogers of the Nassau Bank united in saying yesterday that the firm under its old management maintained a large balance with them. but yesterday the balance amounted to only $19. The Nassau. however. was likely to be out about $500 on collections. The two officials said that the Chicago firm had lately been under the management of younger members of the family. and they were not as conservative as Meadoweroft senior. The officials believed that the Meadowcroft estate was very valuable. and that everybody eventually would be paid.

3. June 6, 1893 St. Paul Daily Globe Saint Paul, MN

Article from St. Paul Daily Globe, June 6, 1893

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EXCITED DEPOSITORS. Groundless Rumors Start Runs on Chicago Savings Banks CHICAGO, June 5.-The failure of Herman Shaffner, which occurred last Friday, bore fruit today in well-defined almost runs which were precipitated on if not every one of the savings banks of of Chicago. The first to feel the effect the excitement was the Bank of Com- citiwhere a great many Jewish merce, of the poorer class keep their aczens These took the alarm,naturally, and counts. the result of the Shaffner failure, as bore down upon the Bank of Commerce full force at the openin hour. The tellers were doubled ing and paid checks as fast as presented throughout up the day. The excitement other and soon involved the institutions. The which has a larger savings company, spread Illinois share other Trust of class of deposits than any to this bank in the city, amounting at times force of put on an extra and paid every one as and at 11 o'clock over tellers possible, $12,000,000. posted rapidly the a bank no- as tice the front door that towould upon remain open until 10 o'clock excite= and so long as the present Hibernight, should continue. The imment bank. which, as its name for nian was the depository of a plies, number of rish-Americans day, large was crowded all no difficulty in and at 4 o'clock the demand, small but found means. meeting excitement Dime the had perceptibly decreased. The its rule bank took advantage of each Savings paid a percentage only upon the and The Globe Savings applied Avethirty-day deposit. rule. The Milwaukee run Savings sustained a moderate until throughout nue the day, and kept open checking o'clock. Equally spirited State 9 noticeable upon the Prairie as was and Union Trust company, bank, Savings well upon the Avenue Savings felt by but as in no case was any alarm well informed people. The situation was greatly aggravated number of board of trade brokers, devoted by a for purposes of their own, sensathemselves who, to the circulation of involved tional rumors, in which they time or another, nearly every of at one the and a large number stock yards operators. bank leading in city, there Not- is withstanding these efforts, reason to believe that none whether of the every banking institutions, leading state or national, of Chicago, savings, in any danger of suspending. a are failure of Meadowcroft Bros., The institution, occurred. but aroused of the minor no interest in the minds little or public. Their total deposits general not exceed $200,000. Meadowcroft did Co. did a commercial paper similar to that of & Co., the banking Schaffner business Bros. & firm Herman which The an assignment Saturday. the made was one of the oldest in concern Eddy & Walker, attorneys, assets place city. the liabilities at $250,000 and the at $460,000. o'clock tonight the Illinois Trust At 12 Savings bank was still paying off. to and the crowd of depositors anxious and their money was as large as ever. draw bank officials said that they cared The whatever for the run, but were nothing rather pleased than otherwise to pay the money. as it meant a big saving out the institution in interest. The quar- and to installment being due July 1. toall terly depositors who drew their money estihave lost. The bank officers day that the run SO far has given them an-superscript(4) mate net profit of $35,000. It was a nounced at midnight that the as would not be closed bank as a single depositor detail cared long draw out a dollar. A special to was sent for, the force of pay of police which had been constantly for several hours was on took their places. and others ing duty tellers the relieved, paying wint of money was continued at seven frighty The depositors were not dows. or worried, many of them seemed ened regard the matter as a joke, and some to them said they were only drawing of their money because others were doing the "We same will thing. stay right here for three months," said President Mitchell to not close our doors night on such a proceeding should It will take day necessary. night."and if these become seven pay at least that length of time to men the money out of our vaults. Even if out get no more deposits' we are good for we run no matter how long it keep$ any We have no intention of taking up. advantage of the time clause. Any he wants it. depositor can get his money at any time

4. June 7, 1893 The Indianapolis Journal Indianapolis, IN

Article from The Indianapolis Journal, June 7, 1893

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THE PANIC SUBSIDING. Confidence Partly Restored Among Chicago's Saving Banks Depositors. Special to the Indianapolis Journal. CHICAGO, June. 6.-To-day's developments in the financial situation showed an increased steadiness among the monetary instructions of Chicago. True, the people continued to walk up to the wickets of the paying tellers to demand their deposits, but the numbers were reduced and a more widespread feeling of confidence assumed the place of the panicky outburst of yesterday. Those banks upon which the run was continued to-day were the Illinois Trust and Savings. the Hibernian, the Union Trust and Savings, the Globe Savings, the Dime Savings and the Bank of Commerce. Those that demanded the lawful notice of withdrawal of deposits were the Union Trust and Savings, the Dime Savings and the Globe Saving. At the Illinois Trust and Savings Bank last night the last depositor in the line got his money at 3 A. M. then the bank closed until 10 o'clock this morning. The assets of the bank are placed at $28,114,000. The stockholders are estimated as being worth $150,000,000. The bank has not called in a loan in nine years. L. Z. Leiter, who is one of the beaviest stockholders in the bank, says: "I have real estate enough to pay all these claims, and it 18 at the service of the bank. Every person who has a dollar here may have it on demand. I am able alone to make that assert a good, and two other men are willing 10 do the same thing. Before going to Europe I personally examined the collateral for loans made; it could not be better. I will guarantee every loan the bank has made for a very trifling percentage." " This afternoon it was easy to see the excitement was dying out. Philip Armour was responsible for the allaying of the fears of many of the depositors of the Illinois Trust and Savings, by walking up to the people and saying that he would guarantee their savings. About one hundred took advantage of the millionaire's offer, and some accepted a written guaranty. One woman received $1,800 in gold. The banks closed their day's business at the usual hour, and the directors make the statement that they are prepared to stand the run for an indefinite period, and are satisfied with the condition of affairs as sho wn by to-day's signs of returning confidence. Little more than the usual daily demand for currency in exchange for coin was made at the subtreasury to-day by the local banks. The Clearing House Association discussed the general situation. and gratifying reports were received, indicating that the savings banks were in good shape to meet all requisitions.

5. June 7, 1893 Rock Island Daily Argus Rock Island, IL

Article from Rock Island Daily Argus, June 7, 1893

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THE RUN BEGINS TO ABATE. Everybody Paid Who Wanted Money and Millions in Sight. The day's developments showed an increased steadiness among the money institutions of Chicago. True the people continued to walk up to the wickets of the paying tellers to demand their deposits, but the numbers were reduced, and a more widespread feeling of confidence assumed the place of the panicky outburst of Monday. Those banks upon which the run was continued were the Illinois Trust and Savings, the Hibernian, the Union Trust and Savings, the Dime Savings, and the Bank of Commerce. Those that demanded the lawful notice of withdrawal of deposits were the Union Trust and Savings and the Globe Savings. In the afternoon it was easy to see that the excitement was dying ont. Philip D. Armour was responsible for the allaying of the fears of many of the depositors of the Illinois Trust and Savings by walking up to the line of people and announcing that he would guarantee the payment of their accounts or pay the same. About 100 of the frightened depositors took advantage of the millionaire packer's offer; some accepted a written guarantee, some were given checks, and in one case, that of an old woman with a deposit of $100, the amount was paid in cash. The banks closed their day's business at the usual hour and the directors make the statement that they are prepared to stand the run for an indefinite period and are satisfied with the condition of affairs as shown by the signs of returning confidence. Little more than the usual daily demand for currency in exchange for coin was made at the sub-treasury by the local banks. The Clearing House association discussed the general situation and gratifying reports were received indicating that the savings banks were in good shape to meet all requirements. Every bank attacked had ample backing besides the cash on hand. When business opened there were great piles of greenbacks. gold and silver. piled up behind

6. June 7, 1893 St. Paul Daily Globe Saint Paul, MN

Article from St. Paul Daily Globe, June 7, 1893

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MORE CONFIDENT. Run on the Chicago Savings Banks About Over. CHICAGO, June 6.-Today's developments in the financial situation showed an increased steadiness among the mon etary institutions of Chicago. True, the people continued to walk up tothe wickets of the paying tellers to demand their deposits. but the num bers were reduced and a more widespread feeling of confidence assumed the place of the panicky outburst of yesterday. Those banks upon which the run was continued today were the Illinois Trust and Savings, the Hibernian, the Union Trust and Savings, the Globe Savings. the Dime Savings and the Bank of Commerce. Those that demanded the lawful notice of withdrawal of deposits were the Union Trust and Savings, the Dime Savings and the Globe Savings. This afternoon it was easy to see that the exeitement was dying out. The banks closed their day's business at the usual hour, and the directors make the statement that they are prepared to stand the run for an indefinite period, and are satisfied with the condition of affairs as shown by today's signs of returning confidence.

7. June 8, 1893 The Sun New York, NY

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THE CHICAGO FLURRY OVER. MANY OF THE SCARED ARE PUTTING THEIR MONEY BACK IN BANK. Work WIII Not Be Stopped nt the Grant Locomotive Works-A Number or Country Banks Have to Close Their Doors. CHICAGO. June 7.-Many of the timid savings bank depositors who rushed to withdraw their cash from the banks are replacing their money. and the result of their scare is the loss of whatever interest might have accrued on their deposits. At the Bank of Commerce. Globe Savings. and Dime Savings the "run" has censed entirely. It continued to-day in a mild way nt the Illinois Trust, the Union Trust. and the Hibernian Banks. At the Illinois most all depositors were paid in cash in full of all claims. great or little. President Mitchell said: "We have something more than $3,000,000 in cash in the vault. 80 we'll take care of all claims and pay every one promptly. I think there will be no trace of a run to-morrow." At the Union Trust the crowd was much smaller than on yesterday. All claims of $50 or less were being paid in cash. and for larger sums the statutory notice was demanded. At the Hibernian Bank printed card 8 were posted notifying depositors that the usual thirty or sixty days' notice would be insisted on in case of all deposits exceeding $50. Joseph Rathborne & Co., lumber dealors. made a voluntary assignment to-day. The assets are scheduled at $500,000. and liabilities at $250,000. Robert F. Shenklen. assignee. has taken possession of the company's property. The firm is composed of Joseph Rathborne and Norton Butler. Inability to realize on commercial paper is given as the cause of assignment. Work in the plant of the Grant Locomotive Works will not be interfered with by the assignment. The total liabilities of the company are $410,950. The aggregate assets. as conservatively presented. are $1,151,464. The cause of the failure is said to be that the company had recently invested too heavily in material. The recent strike of the workmen and the stringency of the money market added to the embarrassment

8. June 10, 1893 Perrysburg Journal Perrysburg, OH

Article from Perrysburg Journal, June 10, 1893

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CONFIDENCE RESTORED In the Stability of the Chicago Savings Banks-They are Provided with Plenty of Money to Withstand the Runs. CHICAGO, June 7.-Yesterday's developments in the financial situation showed an increased steadiness among the monetary institutions of Chicago. True, the people continued to walk up to the wickets of the paying tellers to demand their deposits, but the numbers were reduced and a more widespread feeling of confidence assumed the place of panicky outburst of Monday. Those banks upon which the run was continued yesterday, were the Illinois Trust and Savings, the Hibernian, the Union Trust and Savings, the Globe Savings. the Dime Savings and the Bank of Commerce. Those that demanded the lawful notice of withdrawal of deposits were the Union Trust and Savings, the Dime Savings and the Globe Savings. Tuesday afternoon it was easy to see that the excitement was dying out. Philip A. Armour was responsible for the allaying of the fears of many of the depositors of the Illinois Trust and Savings by walking up to the line of people and announcing that he would guarantee the payment of their accounts or pay the same. About 100 depositors took advantage of the millionaire packer's offer and some accepted a written guarantee, some given checks and in one case, that of an old woman with a deposit of $100, the amount was paid down in cash. The banks closed their day's business at the usual hour and the directors make the statement that they are prepared to stand the run for an indefinite period and are satisfied with the condition of affairs as shown by the scenes of returning confidence. Little more than the usual daily demand for currency in exchange for coin was made at the sub-treasury by the local banks. The clearing house association discussed the general situation and gratifying reports were received indicating that the savings banks were in good shape to meet all requirements.

9. June 10, 1893 Baxter Springs News Baxter Springs, KS

Article from Baxter Springs News, June 10, 1893

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FINANCIAL FLURRY. Run on Chicago Banks Which the Institu. tions Bravely Stand - All Demands Promptly Met. CHICAGO, June 6.-The failure of Herman Schaffner, which occurred last Friday, bore fruit yesterday in well defined runs which were precipitated on almost if not every one of the savings banks of Chicago. The first to feel the effect of the excitement was the Bank of Commerce, where a great many Jewish citizens of the poorer class keep their accounts. These took alarm naturally as the result of the Schaffner failure and bore down upon the Commerce bank in full force at the opening hour. The tellers were doubled up and paid checks as fast as presented throughout the day. The excitement spread and soon involved the other saving institutions. The Illinois Trust Co., which has a larger line of this class of deposits than any bank in the city, amounting at times to over $12,000,000,put on an extra force of tellers and paid every one as rapidly as possible, and at 3 o'clock posted a notice upon the front door that the bank would remain open till 10 o'clock at night and so long as the present excitement should continue. The Hibernian bank. which, as its name implies, is the depository for a large number of Irish-Americans of small means, was crowded all day, but found no difficulty in meeting the demand, and at 8 o'clock the excitement had decreased. The Dime Savings bank took advantage of its rule and paid a percentage only upon each deposit. The Globe Savings applied the thirty day rule. The Milwaukee Avenue Savings sus tained a moderate run throughout the day and they, too, kept open house until 9 o'clock last night. Equally spir. ited checking was noticeable upon the Prairie State Savings bank, but in no case was any alarm felt by well informed people. The situation was greatly aggravated by a number of board of trade brokers, who, for purposes of their own, devoted themselves to the circulation of sensational rumors in which they involved at one time or other nearly every bank in the city and a large number of leading stock yard operators. Notwithstanding these malicious efforts, there is every reason to believe that none of the leading banks, whether savings, state or national, of Chicago, are in any danger of suspending. Meadoweroft Bros. & Co., private bankers, doing a commercial paper business similar to that of Herman Schaffner & Co., closed their doors yesterday morning. The concern was one of the oldest in the city. Their assets and liabilities were not stated.

10. June 14, 1893 The Enterprise Wellington, OH

Article from The Enterprise, June 14, 1893

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CONFIDENCE RESTORED In the Stability of the Chicago Savings Banks-They are Provided with Plenty of Money to Withstand the Runs. CHICAGO, June 7.-Yesterday's devel. opments in the financial situation showed an increased steadiness among the monetary institutions of Chicago. True, the people continued to walk up to the wickets of the paying tellers to demand their deposits, but the num. bers were reduced and a more widespread feeling of confidence assumed the place of panicky outburst of Monday. Those banks upon which the run was continued yesterday, were the Illinois Trust and Savings, the Hibernian, the Union Trust Savings, the Globe Savings. the Dime Savings and the Bank of Commerce. Those that demanded the lawful notice of withdrawal of deposits were the Union Trust and Savings, the Dime Savings and the Globe Savings. Tuesday afternoon it was easy to see that the excitement was dying out. Philip A. Armour was responsible for the allaying of the fears of many of the depositors of the Illinois Trust and Savings by walking up to the line of people and announcing that he would guarantee the payment of their accounts or pay the same. About 100 depositors took advantage of the millionaire packer's offer and some accepted a written guarantee, some given checks and in one case, that of an old woman with a deposit of $100, the amount was paid down in cash. The banks closed their day's business at the usual hour and the directors make the statement that they are prepared to stand the run for an indefinite period and are satisfied with the condition of affairs as shown by the scenes of returning confidence. Little more than the usual daily demand for currency in exchange for coin was made at the sub-treasury by the local banks. The clearing house association discussed the general situation and gratifying reports were received indicating that the savings banks were in good shape to meet all requirements.

11. June 15, 1893 The Redwood Gazette Redwood Falls, MN

Article from The Redwood Gazette, June 15, 1893

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RUNS ARE ENDED. The Chicago Banks Passed Through the Trying Ordeal Safely. CHICAGO, June S.--Quiet has been fully restored to the small arc of the monetary circle that was disturbed Monday, Tuesday and Wednesday. A great many of the timid savings depositors who rushed to withdraw their cash from the banks under a false impression that a sort of financial 'day 'of judgment had come are now replacing their money in the banks and the only result of their scare is the loss of whatever interest might have accrued on their deposits. At the Pink of Commerce, Globe savings and Dime savings the "run" has ceased entirely. At 10:30 o'clock a m., at the receiving teller's window in the Bank of Commerce, were some twenty persons waiting to deposit money and at the pay. ing teller's desk were two men having checks cashed. At the, Dime savings, depositors are revoking the notices they gave Monday of their intention to withdraw their cash. The "run" continued in a mild way at the Illinois trust, the Union trust and the Hibernian banks. At the Illinois trust all depositors were naid in cash in full of all claims.