4681. State Bank of Commerce (Chicago, IL)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
June 6, 1893
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
076f7abe

Response Measures

Accommodated withdrawals, Public signal of financial health

Description

Multiple contemporaneous newspaper accounts (June 5–6, 1893) report a heavy run on the State Bank of Commerce in Chicago triggered by panic/rumors following the failure of private bankers Meadowcroft Bros. Articles describe gold brought to the bank and large crowds but do not report a suspension or permanent closure of this bank.

Events (1)
1. June 6, 1893 Run
Cause
Rumor Or Misinformation
Cause Details
Panic and wild, unfounded rumors of impending financial disaster after the failure/receivership of private bankers Meadowcroft Brothers spread among depositors, prompting heavy withdrawals.
Measures
Bank brought several bags of gold in an iron-barred express wagon to the counters; officials paid depositors and attempted to reassure the crowd; extra paying tellers/staff to meet withdrawals (per related accounts).
Newspaper Excerpt
The State bank of commerce experienced a heavy run this afternoon. It started just before noon. ... an iron-barred express wagon containing several bags of gold was hurriedly driven up to the building and the money carried in by watchmen and placed upon the counters.
Source
newspapers

Newspaper Articles (10)
1. June 6, 1893 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, June 6, 1893

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Article Text

GOLD IN A CART. The Sight of It Only Hurried the Run on a Chicago Bank. BUSINESS TROUBLES REPORTED FROM MANY PLACES. News of a New York Bank's Troubles Followed by Tidings of a Failed Texas Bank-Business Concerns Go Under-Various Difficulties Combined with the Stringency of the Moncy Market Too Much for Them to Stand Up Against. CHICAGO, June -The State bank of commerce experienced a heavy run this afternoon. It started just before noon. The news spread like wildfire, and within half an hour the lobby was filled with an excited crowd of men and women, who tore and crushed in order to get within the glass doors. 12.30 an ironbarred express wagon containing several bags of gold was hurridly driven up to the building and the money carried in by watchmen and placed upon the counters. This, however, did not allay the apprehensions of those outside, and for a while the crush was intensified. The bank officials did not seem to be alarmed. The officials and directors are all wealthy Germans. Herman Felsenthen is president, and Joseph Gross vice president. The bank has a capital of $500,000. Its last report made to the state auditor on May 10 showed deposits of $1,200,000, surplus and undivided profits of $25,600 against which it had about $300,000 in cash, the balance being covered by loans and discounts, overdrafts and bonds.

2. June 6, 1893 The Madison Daily Leader Madison, SD
Article from The Madison Daily Leader, June 6, 1893

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AFRAID OF BANKS. Scared Depositors Beseiging the Doors of Several Chicago Savings Institutions. In One Case the Police Were Called Upon to Preserve Order. One Failure and a Fair Prospect of More, Unless Confidence Is Restored. CHICAGO, June 6.-The private bank of Meadowcraft Bros. did not open at the usual hour, a notice being posted on the door to the effect that the institution was in the hands of a receiver. This failure seems to have badly scared small depositors in other banks and many of them are in the midst of fullfledged runs. At noon a run was commenced on the State Bank of Commerce, having offices on the ground floor of the Woman's Temperance temple. The lobby was packed with depositors fighting with each other for admission to the bank. The police officers were called to preserve order. The bank has a capital of $500,000. Its last statement showed deposits of $1,250,000. Much Wealth But Little Cash. A run was also started on the Dime Savings bank. at 104 Washington street, during the afternoon. This institution has deposits aggregating $600,000, and among its directors are Colonel Clowry, vice president of the Western Union Telegraph company, and ex-Senator Charles B. Farwell. President Bailey of the bank sayshe has dollar and a half for every dollar deposited, but the greater part of the money is tied up in securities. He does not know how long the bank can stand the run, but expects to pull through. The bank has a capital stock of $100,000 and a surplus of $50,000. The Hibernian bank, one of the largest institutions in the country, is also experiencing a run and is paying off depositors at the rate of three a minute. The deposits amount to $3,500,000, and they believe they can stand the run. The Prairie State National. The Prairle State National bank at the corner of Washington and Desplaines street, experienced a run during the morning and large numbers of depositors, mainly in the savings department, withdrew their money. Henry J. Evans of the New York Biscuit company, one of the directors of the bank, said that there is absolutely no apprehension on the part of the directors of the bank and that all claims of depositors would be promptly met. "The bank," said Mr. Evans, "is perfectly solid and it is as sound as any in the city."

3. June 6, 1893 Morning Journal and Courier New Haven, CT
Article from Morning Journal and Courier, June 6, 1893

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Article Text

LONG LIST OF FAILURES. I A Big Chicago Banking Concern Closes Its Doors-Runs on Other Banks. CHICAGO, June 5.-Meadowcraft Brothers & Co., private bankers, doing a commercial paper business, closed their doors this morning. The concern was one of the oldest in the city. Their assets and liabilities are not known. Lyman F. Crandall has been appointed receiver. PANIC AT CHICAGO. CHICAGO, June 5.-The State Bank of Commerce is experiencing a heavy run this afternoon. It started just before noon. Its annual report made to the state auditor on May 10, showed deposits of $1,200,000, surplus and undivided profits of $25,600, against which it had about $300,000 in cash, the balance being covered by loans and discounts, overdrafts and bonds. SANDUSKY BANK CLOSES. CLEVELAND, June 5.-The doors of the Sandusky Savings bank, which closed Saturday night upon what was generally supposed to be one of the soundest and safest institutions of the city, were not opened this morning, but displayed the following announcement: "Owing to inability to realize upon assets at this time, this bank has been compelled to assign. All depositors will be paid in full." Some heavy demands upon it during the closing days of last week, however, precipitated the crisis this time. KANSAS GRAIN COMPANY HAS FAILED. KANSAS CITY, Mo., June 5.-The Kansas Grain company, a big commission house with branches all over Kansas, has failed. RUN ON TWO MILWAUKEE BANKS. MILWAUKEE, June 5.-A run is now_in progress on the South Side Savings bank. There is a slight run on the Second Ward bank, but the demand on the Commercial bank seems to have subsided. Affairs at other banks are about in their normal condition. RUN ON A CHICAGO BANK. CHICAGO, June 5.-A run on the Prairie State Savings bank, which started Saturday, was resumed this morning. WILL NOT CLEAR. NEW YORK, June 5.-The Shoe and Leather National bank gave notice that it will not clear for the Canal street bank after to-morrow. This will make it necessary for the Canal Street bank to go into liquidation. Its deposits are about $450,000. The notice was only sent out late this afternoon. Ii was not the regular notice, but merely a warning to other banks not to take any checks on the Canal Street bank, and the regular notice that the Shoe and Leather bank would cease to act as the redemption agent for the Canal Street bank would be sent out later in the day.

4. June 6, 1893 Rock Island Daily Argus Rock Island, IL
Article from Rock Island Daily Argus, June 6, 1893

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WINDY CITY BANKS Gen. Lack-of-Confidence Gives Them Annoyance. RUNS ON HALF A DOZEN CONCERNS, One Bank Pays Out Money All Night, and All Declare the Scare to Have No Basis -The Hiberrian, Prairie State National, Dime Savings, Union Trust, and Illinois Trust the Institutions Attacked-A Wild Day Among Savings Depositors. CHICAGO, June 6.-The "lack of confidence" which has been cavorting around the country for some time and has already bowled over a couple of Chicago banks with numerous concerns in other lines of business seems to have settled down over the city to test the endurance of the banking institutions in earnest. Depositors began to be uneasy. rumors were sent flying about and General Lack-of-Confidence touk charge for a day. The rumors grew thicker and wiider asthey passed about and the result was runs on several institutions which were they to fail would cause widespread suffering in this city and vicinity. The Banks That Met the Run. The banks which had the storm to stand were the Prairie State National bank, the State Bank of Commerce, Hibernian Savings bank. the Dime Savings bank. the Union Trust Company's bank. and the Illinois Trust and Savings bank Under the circumstances it is no small tribute to the soundness of Chicago banks to say that they all withstood the strain. Where the rumors sprang from is a mystery. It is no mystery how they spread, for wildfire is no quicker in its flight than rumor when she takes a fling at the banks. The Hibernian Bank. The bank whose fallure would have caused the MORE trouble is the Hibernian Banking association. The officers were not at all alarmed over the run made there. It is regarded as one of the strongest savings banks in the country. The depositors are mostly Irish and it is the depository of large amounts of the funds of the various Roman Catholic parishes. Its last report showed deposits of $2,730,000 individual deposits of $750,060, undivided profits of $383,000. The capital stock is $220,000. Vice President Charles F. Ciark, who is manager of the savings department. said at 1 o'clock: "We have been paying depositors all the morning at the rate of three a minute. They are poor people who have every dollar in the world they possess with us, and naturally with the existing conditions they have gotten nervous. We do not biame them." Run ona Dime Savings Bank. Another bank that had to suffer for General Lack-of-Confidence was the Dime Savings bank. There was a big crowd outside and inside, but President Samuel G. Bailey expressed no uneasiness, no1 would he say whether the bank would enforce its thirty day rule. "We have funds sufficient on hand," he said, "for all regular purposes, and even for an emergency. No occasion exists for this alarin, except the general uneasiness in the air." The bank does solely a savings business, its last report shewing deposits of half a million, and a surplus of $51,000. The loans at the time of the same report amounted to $457,000, while United States bonds and cash on hand aggregated $2.5,000. All its loans are secured on real estate. Union Trust Has a Time. Depositors by the hundreds crowded into the Union Trust Company's bank to get their money, but soon after seeing President Rawson's coolness and even amusement, many went out again without drawing their deposits. But the crowd of witndrawers was immense, just the same. "We saw this coming," said Mr. Rawson, "and were ready for it. We'll pay 'em all." The Union Trust is a member of the Chicago clearing house. It has over $1,000.000 to draw upon above its liabilities. Still people went up and drew out their deposits as if it was the last chance, and as each received his money he drew a long breath of relief. An Ex-State Bank Examiner's View. William M. Roberts, late state bank examiner, visited the different savings banks several times during the day and assisted in allaying the fears of depositors. Speaking of the general situation he said: "I do not believe there is a state bank in Chicago that is not fully able to pay $1.10 for every $1 it owes. People have been needlessly alarmed by the collapse of private institutions." WILD PANIC ALL DAY, But Only One Failure. Private Bankers.

5. June 7, 1893 New Ulm Review New Ulm, MN
Article from New Ulm Review, June 7, 1893

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Scared Depositors Beseiging the Doors of Several Chicago Savings Institutions. In One Case the Police Were Called Upon to Preserve Order. One Failure and a Fair Prospect of More, Unless Confidence Is Restored. CHICAGO, June 6.-The private bank of Meadowcraft Bros. did not open at the usual hour, a notice being posted on the door to the effect that the institution was in the hands of a receiver. This failure seems to have badly scared small depositors in other banks and many of them are in the midst of fullfledged runs. At noon a run was commenced on the State Bank of Commerce, having offices on the ground floor of the Woman's Temperance temple. The lobby was packed with depositors fighting with each other for admission to the bank. The police officers were called to preserve order. The bank has a capital of $500,000. Its last statement showed deposits of $1.259,000. Much Wealth But Little Cash. A run was also started on the Dime Savings bank. at 104 Washington street. during the afternoon. This institution has deposits aggregating $600.000. and among its directors are Colonel Clowry, vice president of the Western Union Telegraph company, and ex-Senator Charles B. Farwell. President Bailey of the bank sayshe has dollar and a half for every dollar deposited. but the greater part of the money is tied up in securities. He does not know how long the bank can stand the run. but expects io pull through. The bank has a capital stock of $100,000 and a surplus of $50,000. The Hibernian bank, one of the largest institutions in the country, is also experiencing a run and is paying off depositors at the rate of three a minute. The deposits amount to $3,500,000. and they believe they can stand the run. The Prairie State National. The Prairle State National bank at the corner of Washington and Desplaines street, experienced a run during the morning and large numbers of depositors. mainly in the savings department, withdrew their money. Henry J. Evans of the New York Biscuit one of the directors of the said that there is company, bank, absolutely of the direct- no apprehension on the part ors of the bank and that all claims of depositors would be prouptly met. "The bank." said Mr. Evans, "is perfectly solid and it is as sound as any in the city."

6. June 7, 1893 The Advocate and Topeka Tribune Topeka, KS
Article from The Advocate and Topeka Tribune, June 7, 1893

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gency, and there was nothing left for the companies to do but to assign. PANIC IN CHICAGO. CHICAGO, June 5.-Meadowcoft Brothers, private bankers, closed their doors this morning. The property of C. A. Weisenbach, a clothing and shoe merchant, was closed by the sheriff this morning. Execution was made on judgments aggregating $26,000. Early to day the record breaking commenced. Never in the history of modern trading has the price of wheat on the month succeeding the date of the market slumped below 68 cents. To-day, before the market was ten minutes old, July wheat had touched 671/2 cents, while September wheat was down to 711/2 cents. July wheat opened at 685/8 cents, and on every minute went off 1/8 cent, until the low point 671/2 cents was reached. September steadily slumped through every quotation to 711/2 cents. July corn opened at 3934 cents and September at 41 cents, the former breaking to 391/2 cents, while the latter sold 3/4 cents higher, ranging between 403/3 41 and 415 cents. The hog products were lower. July lard opened at $10.171/2, a decline of 121/2 cents. The State Bank of Commerce is experiencing a heavy run this afternoon. The news spread like wildfire. At 12:30 o'clock an express wagon containing several bags of gold arrived. This, however, failed to satisfy the apprehensions of the depositors. Cashier Frederick Miller said: "We are not alarmed, and we will meet this run." Then he added, as a kind of second thought: "That is, as long as we are able." A run was also starsed on the Savings bank on Washington street this afternoon. The institution has deposits aggregating $600,000. There is 8 run on the Hibernian bank. The Berlin bank is paying off its depositors at the rate of three a minute. The Union Trust Company, opposite the Tribune office, at 2 o'clock was besieged by a big crowd, and extra paying tellers were assigned to duty. The Prairie Street National bank experienced 8 run this morning, and a large number of depositors withdrew their money. THE BEGINNING IN TOPEKA. W.1 R. Evans, the grocer, at the north west corner of Tenth street and Kansas avenue, made an assignment for the benefit of creditors at eleven o'clock this morning. Byron Roberts is made temporary assignee. His creditors are scheduled as follows: $ 700.00 Parkhurst, Davis & Co., account. Ridenour-Baker Grocery Co., of Kansas 150.00 City, account 100.00 Bank of Topeka, note 200.00 C. B. Whitson, Topeka, account Franklin McVeigh & Co., Chicago, Ill., account 34.00 Dozier Bakery Co., of Kansas City, ac16.25 count. 10.00 J. B. Billard, Topeka, account 60.00 Charles Eagle, Topeka, account 15.00 Syms Grocery Co., Atchison, account 15.00 Cope & Anderson. Topeka, account 40.00 Topeka Mill and Elevator Co., account 15.00 Crosby Mill Co., account 27.00 Jacob Dold Packing Co., account 50.00 John Ritchie, account Total $1,432.25 Mr. Evans closed un his store about 11

7. June 8, 1893 The Princeton Union Princeton, MN
Article from The Princeton Union, June 8, 1893

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WANT THEIR MONEY. Chicago, June 6.-The State Bank of Commerce, having offices on the ground floor of the Woman's Christian Temperance temple, experienced a heavy run yesterday. It started just before noon with the appearance of some thirty or forty depositors. The news spread like wild fire and within half an hour the lobby was filled with an excited crowd of men and women who crushed and pushed in order to get within the glass doors. A run also started on the Dime Savings bank. This institution has deposits aggregating $600,000.

8. June 16, 1893 Shenandoah Herald Woodstock, VA
Article from Shenandoah Herald, June 16, 1893

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South and West. JOHN C. MINING, Town Treasurer of Fort Jennings, Ohio, has disappeared with $5000 cash, and an additional shortage of $10,000 has been discovered. WILD and unfounded rumors of impending financial disaster seaused a senseless run on many of the banks in Chicago. Those chiefly affected were the Prairie State National Bank, the State Bank of Commerce, the Hibernian Savings Bank, the Dime Savings Bank, the Union Trust Company's Bank and the Illinois Trust and Savings Bank. Meadoweroft Brothers, private bankers of Chicago, failed with liabilities estimated at $450000. THE Bank of Spokane, Washington, has failed. It is a private institution, owned by A. M. Cannon, who is reported to be worth $3,000,000. The Sandusky (Ohio) Savings Bank assigned, The Merchants' National Bank, of Fort Worth, Texas, capital $250,000, has failed. THE Infanta Eulalia reached Chicago from New York: much enthusiasm was shown by the crowds that lined the route from the railroad station to the hotel. A SKIFF containing Alexander McCloud and Robert Anderson was upset in a whirlpool at Boundary City, Wyoming. The men were drowned. SERGEANT O'LEARY, of the United States Army, was shot and mortally wounded by Private Roberts, in Fort Sherman, Idaho. Jealousy over promotion was the cause. THE New Albany (Ind.) Banking Company has suspended payment. MAYOR HARRISON. of Chicago, gave a breakfast and reception for the Infanta she was the guest of President Higinbotham, of the World's Fair Directory, in the evening. THE business portion of Fargo, North Da. kota, was destroyed by fire: 2200 people were rendered homeless. Loss, $2,000,000. FIRE broke out on Page street between Baker and Lyon streets. San Francisco, Cal., and in less than an hour a whole block had been totally consumed. Three firemen were instantly killed by falling walls. THE Princess Eulalia paid her first visit to the World's Fair, going to the grounds in the afternoon and again in the evening.

9. June 16, 1893 Fisherman & Farmer Elizabeth City, Edenton, NC
Article from Fisherman & Farmer, June 16, 1893

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South and West. THE Old Kentucky Home at the Chicago Fair Grounds was dedicated. It is the Blue Grass State Building and one of the most attractive in the grounds. Miss Enid Yandel's statue of Daniel Boone was unveiled. AT the Sisseton Agency, South Dakota, Miss Cynthia Rockwell, an Illinois teacher at Coodwill Mission. has married Richard King, an Indian, studying for the Presbyterian ministry. THE Plankinton Bank in Milwaukee, Wis., closed its doors. The bank had loaned $200,000 to F. A. Lappen & Co. and the Lappen Furniture Company, and this was the principal cause of its suspension. THE Victoria Cordage Company, Cincinnati, Ohio, members of the Cordage Trust, has assigned. Assets, $500,000 liabilities, $400,000. TORNADOES did great damage to property in Mississippi, Tennessee, Arkarcas and Kentucky. At Rosedale, Miss., W. L. Bawdre and wife were killed. IOWA Prohibitionists nominated a full State ticket. THE members of the graduating class at Annapolis (Md.) Naval Academy, forty-four in number, received their diplomas at the hands of Secretary Herbert. W. V. N. Powelson, of New York, received the honors of his class graduating No. 1. A RECEIVER was appointed at Charleston, W. Va., for the Norfolk and Western Railroad. DURING a heavy rain storm fire was discovered in a block on Farnumstreet, Omaha, Neb. The entire city Fire Department was called to the scene. A high wind was blowing. One of the walls fell on seven firemen. Five of them were instantly killed. WHILE a primary election was held in Bell County, Kentucky, by the Democratic party, excitement ran high, and in a fight at Pineville, the county seat, John Jones and Levi Hoskins were killed and two others were fatally injured. OWING to a storm less than 60,000 persons visited the World's Fair on the second Sunday opening. TWENTY-FIVE men walked into Decatur, Ill., a city of 22,000 people, and lynched Samuel Bush on the principal street without opposition. Bush was a colored man accused of assaulting two white women. AT Chicago, Ill., Herman Schaffner & Co., private bankers, made an assignment. Schaffner & Co. have been the largest private bankers in the Northwest, dealing exclusively in commercial paper. JOHN C. MINING, Town Treasurer of Fort Jennings, Ohio, has disappeared with $5000 cash. and an additional shortage of $10,000 has been discovered. WILD and unfounded rumors of impending financial disaster caused a senseless run on many of the banks in Chicago. Those chiefly affected were the Prairie State National Bank, the State Bank of Commerce, the Hibernian Savings Bank, the Dime Savings Bank, the Union Trust Company's Bank and the Illinois Trust and Savings Bank. Meadowcroft Brothers, private bankers of Chicago, failed with liabilities estimated at $450000. THE Bank of Spokane, Washington, has failed. It is a private institution, owned by A. M. Cannon, who is reported to be worth $3,000,000. The Sandusky (Ohio) Savings Bank assigned, The Merchants' National Bank, of Fort Worth, Texas, capital $250,000, has failed.

10. June 21, 1893 The Abbeville Press and Banner Abbeville, SC
Article from The Abbeville Press and Banner, June 21, 1893

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South and West. THE Old Kentucky Home at the Chicago Fair Grounds was dedicated. It is the Blue Grass State Building and one of the most attractive in the grounds. Miss Enid Yandel's statue of Daniel Boone was unveiled. AT the Sisseton Agency, South Dakota, Miss Cynthia Rockwell, an Illinois teacher at Coodwill Mission, has married Richard King, an Indian, studying for the Presbyterian ministry. THE Plankinton Bank in Milwaukee, Wis., closed its doors. The bank had loaned $200,000 to F. A. Lappen & Co. and the Lappen Furniture Company, and this was the principal cause of its suspension. THE Victoria Cordage Company, Cincinnati, Ohio, members of the Cordage Trust, has assigned. Assets, $500,000; liabilities, $400,000. TORNADOES did great damage to property in Mississippi, Tennessee, Arkansas and Kentucky. At Rosedale, Miss., W. L. Bawdre and wife were killed. IOWA Prohibitionists nominated a full State ticket. THE members of the graduating class at Annapolis (Md.) Naval Academy, forty-four in number, received their diplomas at the hands of Secretary Herbert. W. V. N. Powelson, of New York, received the honors of his class graduating No. 1. A RECEIVER was appointed at Charleston. W. Va., for the Norfolk and Western Railroad. DURING a heavy rain storm fire was discovered in a block on Farnum street, Omaha, Neb. The entire city Firs Department was called to the scene. A high wind was blowing. One of the walls fell on seven firemen. Five of them were instantly killed. WHILE a primary election was held in Bell County, Kentucky, by the Democratic party, excitement ran high, and in a fight at Pineville, the county seat, John Jones and Levi Hoskins were killed and two others were fatally injured. OVING to a storm less than 60,000 persons visited the World's Fair on the second Sunday opening. TWENTY-FIVE men walked into Decatur, Ill., 8 city of 22,000 people, and lynched Samuel Bush on the principal street without opposition. Bush was a colored man accused of assaulting two white women. AT Chicago, Ill., Herman Schaffner & Co., private bankers. made an assignment. Schaffner & Co. have been the largest private bankers in the Northwest, dealing exclusively in commercial paper. JOHN C. MINING, Town Treasurer of Fort Jennings, Ohio, has disappeared with $5000 cash, and an additional shortage of $10,000 has been discovered. WILD and unfounded rumors of impending financial disaster caused a senseless run on many of the banks in Chicago. Those chiefly affected were the Prairie State National Bank, the State Bank of Commerce, the Hibernian Savings Bank, the Dime Savings Bank, the Union Trust Company's Bank and the Illinois Trust and Savings Bank. Meadoweroft Brothers, private bankers of Chicago, failed with liabilities estimated at $450000. THE Bank of Spokane, Washington, has failed. It is a private institution, owned by A. M. Cannon, who is reported to be worth $3,000,000. The Sandusky (Ohio) Savings Bank assigned, The Merchants' National Bank, of Fort Worth, Texas, capital $250,000, has failed.