Franklin National Bank (New York, NY)

View Charter #4855 on SPMC View balance sheet

Episode Information

Episode UID
485501123
Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
48550 national
Charter Number
4855
Start Date
July 29, 1893
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
da59216036e0c9a9

Response Measures

None

Description

Articles describe a city-wide savings-bank action (60-day notice) and local runs; Franklin National not named explicitly so linkage is by jurisdiction.

Events (5)
1. March 1, 1893 Chartered
Source
historical_nic
2. July 29, 1893 Run
Cause
Macro News
Cause Details
Panic and broad financial distress in July 1893 and publication that banks would invoke withdrawal-notice clauses precipitated heavy withdrawals and runs in New York/Brooklyn
Measures
Some banks paid amounts in full; others required notice (30-60 days or up to 90 days) to check withdrawals.
Newspaper Excerpt
publication of the intended action ... precipitated a run this morning
Source
newspapers
3. July 31, 1893 Suspension
Cause Details
Banks invoked by-law provisions requiring 30–60 (up to 90) days' notice for large withdrawals to stem heavy drains; a coordinated, voluntary use of notice clause rather than government closure.
Newspaper Excerpt
began to take advantage of the sixty-days'-time clause
Source
newspapers
4. August 1, 1893 Reopening
Newspaper Excerpt
The general impression seemed to be one of confidence ... there did not seem to be anything like a 'run' anywhere; about the usual amount of business was being done, perhaps a trifle more than the average number of depositors were waiting for their turns to draw money. At the same time many deposited funds again, offsetting withdrawals. (Excerpt shows resumed ordinary operations and confidence.)
Source
newspapers
5. August 1, 1899 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (7)
1. July 30, 1893 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, July 30, 1893

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Article Text

SAVINGS BANKS HURT. Serious Runs Started in New York, Brooklyn and Other Localities. NEW YORK, July 29.-The publication of the intended action of the savings banks and institutions to put into practice the law entitling them to sixty days' notice from depositors of intended withdrawals of money precipitated & run this morning. Some of the banks paid the amounts in full and thus sought to restore confidence. Others required notice, the time ranging from ten to ninety days, according to the period specified in the by-laws. The meeting of the presidents of the Emigrant Industrials Savings Bank yeaterday afternoon was called, said President James McMahon, of that bank, to-day. to consider what action would be advisable to relieve the heavy drain that has been made since the present financial depression commenced. "We can't do business." said he, "with $50,000 being taken out daily and only $10,000 being deposited. It was the concensus of opinion that the enforcement of the sixty-day clause would be the only relief. In the case of small depositors-$300 or less - the banks decided to accept a thirty-day notice. The exact time, however, would be governed by the by-laws of the individual banks. The execative committee of Associated Savings Banks has been. considering the situation of the savings banks for some time. The withdrawais of deposits have not been in large lumps, but it has been a steady drain throughout the month of July, and while there has not been anything like a run, the drain has been constant and heavy, and the cash holdings of some of the banks were getting low. They found that something had to be done, and deemed it better to have concerted rather than individual action. They had a choice between the sale of their better class of securities which, in the present state of the market, meant a sacrifice, or the taking advantage of their lawful right to require sixty days' notice of intended deposit withdrawals. They have sent out notice to banks throughout the State. Seventeen savings banks were represented in yesterday's meeting. representing $367,400,000. and a surplus of $57,868,000." Chairman of the committee, President Rhoades. of the old Greenwich Bank. said this afternoon: "Our decision is not binding on anyone, and I have DO doubt many will not avail themselves of the action. But the stronger ones will, and will do 80 to introduce the uniform policy. My bank is in excellent condition. but on MonYou day I shall lead the way. understand, of course, that each bank acts under the management of its president and board of directors. They must meet and decide before their institution say, can co-operate with us. I will furthermore, that we had the broad interests of the whole financial community in mind when we came to our conclusion. It 18 said that money withdrawn from the savings institutions went to Wall street and elsewhere in investment. No doubt a small portion did go thither, and in so far the drafts were a benefit to all. Butit is

2. August 1, 1893 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, August 1, 1893

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Article Text

Action of Massachusetts Savings Banks. BOSTON, July 31.-At a meeting in the Parker House Monday of representatives of 83 savings banks of the state it was voted to recommend that the banks take action at once in applying restrictions provided by their by-laws against withdrawal of large deposits without required notice. , New York Bank Situation. NEW YORK, July 31.-With this morning the savings banks of this city, as a rule, began to take advantage of the sixty-days'-time clause. That is, the bank officials made use of the prerogative in cases where large amounts were concerned, or where such action was deemed necessary to check the withdrawal of money for hoarding or in senseless fright. A visit to the principal savings banks of this city this morning disclosed the fact that about the usual amount of business was being done. Perhaps a trifle more than the average number of depositors were waiting for their turns to draw money, but on the other hand in most of the banks there was a corresponding line of persons anxious to deposit money. The general impression seemed to be one of confidence in the banks. There did not seem to be anything like a "run" anywhere. The Situation at New Haven. NEW HAVEN, Conn., July 31.-Early this morning a startling rumor became current to the effect that there was to be a run on the local savings banks. For an hour before the opening of the New Haven Bank a crowd waited, but the people were quiet and undemonstrative. About 9 o'clock it became known that the directors of the three banks, the New Haven, the Connecticut and the National, had held meetings and had decided to avail themselves of the provision in their charters. which provides that notice varying from three to four months shall be given by depositors wishing to withdraw. This fact increased the excitement, and soon the corridors of the Connecticut and New Haven Banks were packed with anxious depositors. They were instructed regarding the action and were allowed to draw interest, and most of them availed themselves of this. That the banks are perfectly sound there is no doubt in the minds of all the prominent local business men, and their actionin protecting the less panic stricken patrons is generally regarded as a very wise movement. Fall River Savings Banks. FALL RIVER, Mass., July 31.-This morning, in accordance with an agreement at the local clearing house Saturday, the savings banks of the city took advantage of their by-laws to prevent any further withdrawals of deposits. Hereafter, until further notice is given, depositors will not be allowed to withdraw large sums except after having given 30 or 60 days' notice. In some banks the amount is $60, and in others the amount is $100. An Army of Unemployed. CHICAGO, July 31.-One thousand unemployed meu reached Chicago yesterday on {freight trains over the various Western roads running into the city. The number of men now out of work in Chicago is larger probably than ever before Lawrence Mills Shut Down. LAWRENCE, Mass., July 31.-This afternoon notices were posted in the Atlantic cotton mills stating that the mills will close next Saturday for a month or The "until the market brightens." mills employ 1200 people. They have a weekly pay roll of $2000. and manufac-

3. August 2, 1893 The Indiana State Sentinel Indianapolis, IN
Article from The Indiana State Sentinel, August 2, 1893

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Article Text

NEW YORK, July 31.-With 1 this morning the savings banks of this city, as a rule, began to take advantage of the sixty-day time clause, that Is the bank officials made use of the prerogative in cases where large amounts were concerned or where such action was deemed necessary to check the withdrawal of money. But while nearly all the banks claimed the privilege of using the time clause, still, in comparatively few instances was it used. A visit to the principal savings banks of this city this morning disclosed the fact that about the usual amount of business was being done, perhaps a trifle more than the average number of deposItors were waiting their turns to draw' money. But on the other hand in most of the banks there were corresponding lines of persons anxious to deposit money. The general impression seemed to be one of confidence in the banks. There did not seem to be anything like a run anywhere in this city. In Brooklyn the effect was somewhat different and the notice caused several runs. The greatest was on the Brooklyn savings bank. When the doors of the bank opened at 10 this morning an enormous crowd was waiting to draw its money. Threats were made, but as these were of no avail the crowd went away in an ugly mood. Slight runs were also made on the South Brooklyn savings institution and on the Dime savings. Call money was offered at 1/3 per cent. per diem and legal interest, but there was very little to be had at that rate until today, when a decline to 6 per cent. per annum took place. There is no time money nor is there anything doing in mercantile paper to speak of. There was a big demand at the subtreasury for transfer of silver dollars

4. August 3, 1893 Connecticut Western News North Canaan, Salisbury, Canaan, CT
Article from Connecticut Western News, August 3, 1893

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Article Text

FINANCIAL AFFAIRS. Nervous Depositors Crowd New York Savingo Banks. NEW YORK, Aug. 1.-At all of the banks here an unusual number of nervous depositors want their money. More than three-quarters of these are women. At the east side banks, where the depositors are mostly foreigners, the run is heaviest. There is no alarm among the savings banks officials over the situation. They all declare that they are more than able to meet with their cash balances the demands that will now be made upon them. They expect that the excitement among the ignorant depositors will subside by the end of the week at least. This confidence on their part is warranted by the actions of depositors at the banks. At many of the banks the amount of money paid in did much to offset what was drawn out. At one of the largest banks the amount deposited was almost one-half as large as the amount drawn out. About all of the Brooklyn savings banks insisted on the rule requiring notice of the withdrawal of deposits, but only in case of demands for over $100, and smaller sums were paid out freely. There were crowds before the windows of nearly all the banks when they opened for business, but there was no evidence of panic. There were complaints heard of the enforcement of the 30 day notice rule, but there was very little excitement, and the special policemen who were detailed at the banks had nothing to do but to keep people in line.

5. August 4, 1893 The State Herald Holyoke, CO
Article from The State Herald, August 4, 1893

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Article Text

THE FINANCIAL SITUATION. On the 25th the Mitchell bank at Milwaukee closed its doors. Its deposits amount to nearly $8,000,000, assets $9,000,000. At Indianapolis the Indianapolis National bank and the Bank of Commerce closed their doors. Joint liabilities $2,500,000. Three banks at Louisville, Kentucky, also failed on the 25th. They are the Merchants' National, the Fourth National and the Louisville Deposit bank. None of the failures are considered bad ones. Depositors in the two national banks will be paid in full, and the loss to stockholders will not be more than 60 per cent. in either case. The situation on the New York stock exchange on the 28th was critical and a panic was narrowly averted. The news that the Erle railroad had gone into the hands of a receiver was largely responsible for the break in stocks which fell from 1 to 4 points. H. I. Nicholas & Co., brokers, assigned. The First National and Montana National banks of Helena, failed to open Thursday morning. A run followed on theother banks of the city. The run was confined principally to the Merchants' National bank, which paid everybody. They are confident that they will be able to stand the run. The two closed banks have ample assets, but cannot realize on them. The Oregon National bank and the Northwest Loan and Trust company of Portland failed to open their doors on the 27th. A notice on the door says: "Owing to withdrawal of deposits and the Inability to realize on securities this bank is forced to suspend." The First National of Middleboro, Kentucky, closed on the 27th. Two banks at Sparta, Wisconsin, closed, also a bank at Portage. The Ellensburg, Washington, National bank suspended payment. In consequence of a run upon It the Traders' Deposit bank of Mount Sterling, Indiana, suspended. The following banks failed on the 28th: First National at Great Falls, Montana; German National at Washington, Wisconsin; Seymour's Bank at Chippewa Falls, Wisconsin; Chamberlain National at Chamberlain, South Dakota. The publication of the intended action of the New York and Brooklyn savings banks and institutions to put into practice the law entitling them to sixty days' notice from depositors of intended withdrawals of money precipitated a run Saturday. Some of the banks paid the amount In full, and thus sought to restore confidence. Others required notice, the time ranging from ten to ninety days, according to the period specified in the by-laws. The Commercial National, Ainsworth National and Portland Savings bank of Portland, Oregon, closed their doors on the 29th. The following banks also closed on that date: Citizens Savings, Akron, Ohio; First National, Kankakee, Illinois; Commercial, Eau Claire, Wisconsin; Barron Brothers, Lusk, Wyoming. The McNeal & Urban Safe and Lock Company, one of the oldest safe firms in the country, have assigned to Howard Douglass of Cincinnati. Assets, $160,000; liabilities unknown. The firm has been unfortunate in several large contracts, but it Is claimed that it is solvent. The New York clearing-house committee on the 31st authorized the Issue of $2,500,000 more in loan certificates, which brings the total issue outstanding up to $27,975,000. It may be noted that $26,565,000 was the maximum Issue of 1873, but this comparison is really less impressive than it seems, for a very considerable part of this year's New York issues has In practical effect, been provision for Chicago. No banks applied, so the dispatches stated, for loan certificates in the city. A secondary result of the local money scarcity was an absolute want of bids for sterling bills, exchange rates going on some transactions below the year's previous lowest record. The following banks suspended on the 31st: Springfield Savings, at Springfield, Misssouri; First National, Ashland, Wisconsin: First National, Dalles, Oregon: Bellingham Bay National Whatcom lequiring Notice of When drawal of deposits.

6. August 5, 1893 The Meeker Herald Meeker, CO
Article from The Meeker Herald, August 5, 1893

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THE FINANCIAL SITUATION, On the 25th the Mitchell bank at Milwaukee closed Its doors. Its deposits amount to nearly $8,000,000, assets $9,000,000. At Indianapolis the Indianapolis National bank and the Bank of Commerce closed their doors. Joint liabilities $2,500,000. Three banks at Louisville, Kentucky, also failed on the 25th. They are the Merchants' National, the Fourth National and the Louisville Deposit bank. None of the failures are considered bad ones. Depositors in the two national banks will be paid in full, and the loss to stockholders will not be more than 60 per cent. in either case. The situation on the New York stock exchange on the 26th was critical and a. panic was narrowly averted. The news that the Erie railroad had gone into the hands of & receiver was largely responsible for the break In stocks which fell from 1 to 4 points. H. I. Nicholas & Co., brokers, assigned. The First National and Montana National banks of Helena, failed to open Thursday morning. A run followed on theother banks of the city. The run was confined principally to the Merchants' National bank, which paid everybody. They are confident that they will be able to stand the run. The two closed banks have ample assets, but cannot realize on them. The Oregon National bank and the Northwest Loan and Trust company of Portland failed to open their doors on the 27th. A notice on the door says: "Owing to withdrawal of deposits and the inability to realize on securities this bank is forced to suspend." The First National of Middleboro, Kentucky, closed on the 27th. Two banks at Sparta, Wisconsin, closed, also a bank at Portage. The Ellensburg, Washington, National bank suspended payment. In consequence of A run upon It the Traders' Deposit bank of Mount Sterling, Indiana, suspended. The following banks failed on the 28th: First National at Great Falls, Montana; German National at Washington, Wisconsin Seymour's Bank at Chippewa Falls, Wisconsin; Chamberlain National at Chamberlain, South Dakota. The publication of the intended action of the New York and Brooklyn savings banks and institutions to put Into practice the law entitling them to sixty days' notice from deithdrawals of money positors of Intended precipitated a run Saturday. Some of the banks paid the amount in full, and thus sought to restore confidence. Others required notice, the time ranging from ten to ninety days, according to the period specified in the by-laws. The Commercial National, Ainsworth National and Portland Savings bank of Portland, Oregon, closed their doors on the 29th. The following banks also closed on that date: Citizens Savings, Akron, Ohio; First National. Kankakee, Illinois; Commercial, Eau Claire, Wisconsin: Barron Brothers, Lusk, Wyoming. The McNeal & Urban Safe and Lock Company, one of the oldest safe firms in the country, have assigned to Howard Douglass of Cincinnati. Assets. $160,000; liabilities unknown. The firm has been unfortunate in several large contracts, but It is claimed that It is solvent. The New York clearing-house committee on the 31st authorized the issue of $2,500,000 more In loan certificates, which brings the total issue outstanding up to $27,975,000. It may be noted that $26,565,000 was the maximum issue of 1878, but this comparison is really less impressive than It seems, for a very considerable part of this year's New York Issues has in practical effect, been provision for Chicago. No banks applied, 50 the dispatches stated, for loan certificates in the city. A secondary result of the local money scareity was an absolute want of bids for sterling bills, exchange rates going on some transactions below the year's previous lowest record. The following banks suspended on the 31st: Springfield Savings, at Springfield, Misssouri; First National, Ashland, Wisconsin: First National, Dalles, Oregon: Bellingham Bay National, Whatcom, Washington. Savings

7. December 28, 1902 The Wichita Daily Eagle Wichita, KS
Article from The Wichita Daily Eagle, December 28, 1902

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BIG PANICS OF THE PAST Financial Shocks That Shook Two Continents Recalled. BARRING BROTHERS CRASH Plans of Financiers to Meet a Money Crisis. New York, Dec. 27.-Formation this week, of a bank pool" to protect the money market aaginst a possible serious crisis, is not a new expedient in American finance. The only novel element in last Monday's announcement lies in the fact that it was made before the crisis had arisen. A classic instance of such a bank movement occurred in London, on Friday, November 1, 1890. It became known that day at the Bank of England, that the firm of Baring Brothers, as a result of its Argentine operations, was on the verge of failure for twenty-one millions sterling. The Bank of England, after consulting the Chancellor of the Exchequer, called all the leading banks and banking houses into consultation, with a view to a joint guarantee of the Baring assets. The private banking institutions signed guarantees in the total sum of £15,000,000; the Bank of England then guaranteed the whole. When panic struck Lombard street on the following day, the private banks virtually stopped loaning. This had so bad an influence, that the governor of the Bank of England, Mr. Littledale, warned them that such a policy would not do. Thenceforward all banks discounted for their own customers at 6 per cent and 7 and 8 to outsiders these being panic rates. These moves, with the bank's import of £4,500,000 gold borrowed from the Continental banks, allayed the panic During twenty years, management of New York's "bank pools' in a crisis was intrusted regularly to a very remarkable man. Frederick D. Tappan. Mr. Tappan took charge of the bank situation in the Wall street panic of 1884. On May 6, the Marine Bank failed, followed by the failure of Grant & Ward. The Second National Bank nearly went over, after its president's $3,000,000 defalcation. On the 14th the Metropolitan Bank went down, end eleven banking houses followed. Money at one time rose to 4 per cent a day Mr. Tappen then bound the assoclated banks into an agreement. As the surplus reserves were soon exhausted, issue of clearing-house loan certificates began-a scheme, as is well known whereby banks short of cash turned into the committee's hands their collateral on which certificates were issued, receivable on balance by creditor banks at the clearing-house, in Heu of cash, and bearing 6 per cent interest. The total issue in 1884 was $24,915,000. On this basis. loans were freely made, at a rate which fell gradually, by the end of May to 6 per cent. This was the end of the panic The "Baring panic' of 1890 hit New York. It began on Saturday November 15. and on Monday Stock Evchange loans rose to 186 per cent. Surplus reserves of the New York banks were already below the legal limit, and on Monday the banks were again summoned to meet the emergency. In all, Mr. Tappen's committee issued $15,205,000 of the Clearing-house lean certificates. The banks loaned at high rates. not letting call loans go below eight per cent until after two days. There were several failures, and new lean certificates were taken out by banks as late as December 4. They were not wholly retired until 1891, surplus reserves not being restored until late in December. 1890. The panic in 1893 called for organized bank management; which was not begun, however, until a full month after the sitnation had become acute. On June 15 the management of the bank loans was placed in the hands of F. D. Tappen and a committee of five. The banks then held a surplus reserve of $14,000,000. but call money commanded 25 per cent. and the market for time loans and commercial paper was virtually closed Before the panic ended. $32,280,000 Clearing house certificates had been issued at New York, and $25,000,000 more at Boston. Philadelphia, Baltimore and Pittsburgh. A strikIng fact of that year's experience was the long life of the Clearing house certificates The last was not cancelled in New York until November 1, although on that Associated Banks held a surplus reserve of $48,000,000. It is probably true that in 1893 the worst side of the loan certificate plan betrayed itself At this distance of time there is little doubt that the suspension of cash payments to depositors, by numerous New York banks, was due to the fact that all their balances were paid in loan certificates, so that they really had no cash to use. On the other hand the buying of gold in London, on July 26. was mode possible through issue of $5,000,000 loan certificates in New York. The resultant credits were used by three powerful banks and by Lazard Freres to obtain the gold from London, where it was bought between 4.84 S4 and 4.85 for de mand bills. It was this gold importation which really ended the panic No loan certificate has been issued since 1898. In the Venezuelan panic of December. 1895, plans were made for their is. sue and on Monday December 23. (five days after President Cleveland's message) a committee was appointed to issue them if needed But no bank asked for them. Again. in the third week of August, 1896. during the silver fright the Bank of Commerce applied to the Clearing-house for loan certificates. stating that it did not need them. but merely acted so as to give other banks courage to do so. No bank followed the example, however, and no certificates were issued At present, the well known opposition of Washington authorities to the plan makes their use in future emergencies rather doubtful.