Dollar Savings Bank (Bronx, NY)

Episode Information

Episode UID
4920492591294
Episode Type
Run Only
Bank Type
savings
Bank ID
492049259 hash
Start Date
October 23, 1907
Location
Bronx, New York (40.850, -73.866)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
8029dd7fbab08f3f

Response Measures

None

Events (1)
1. October 23, 1907 Run
Cause
Rumor Or Misinformation
Cause Details
Depositors confused the Dollar Savings Bank with the nearby Knickerbocker Trust Company's Bronx branch and reacted to rumors/careless newspaper caption that misidentified the bank.
Random Run
Yes
Random Run Snippet
Careless newspaper caption misidentified bank; rumor spread and sparked withdrawals
Measures
Opened early, additional clerks/paying tellers on duty, paid deposits on demand and reassured depositors
Newspaper Excerpt
Italian depositors who yesterday started a run on the Dollar Savings bank in the Bronx were waiting at the doors of that institution to the number of 100 before the bank opened for business to-day.
Source
newspapers

Newspaper Articles (10)
1. October 23, 1907 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, October 23, 1907

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Waiting in Line. New York, Oct 23.-At the Colonial branch of the Trust Company of Amberica. in the St Paul building on Broadway. more than a hundred persons were in line shortly before 10 o'clock for the doors to open. Secretary of the Treasury Cortelyou arrived at the sub-treasury at 9:40 a. m. to-day and announced that he would make his headquarters there for the day. Italian depositors who yesterday started a run on the Dollar Savings bank in the Bronx. were waiting at the doors of that institution to the number of 100 before the bank opened for business to-day. The Dollar Savings bank is nearby the Bronx branch of the Knickerbocker Trust company and the Italians became alarmed by the run on the trust company's branch. The crowd in front of the main office of the Trust Company of America grew rapidly. At 9:30 it numbered more than 300 persons.

2. October 24, 1907 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, October 24, 1907

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the company as last reported were in excess of $70,000,000. Several millions withdrawn today but funds to satisfy every claim were said to be at hand. This was the only run of imporlance today, and this fact was an encouraging feature. The depositors in the Dollar Savings Bank in the Bronx, of which borough President John Hafien is the head, became uneasy over he general situation and many clamorfor their money. These depositors vere chiefly foreigners who had confused the Knickerbocker Trust Co's: Bronx branch with their own instituion. The run, for which there was absolutely no excuse, ended at once. when explanations were made This flurry over, things looked still better, as the minfor ned element among depositors was regarded as hard to control in times of excitement. The Clearing House report was also lawerable today. Apparently the national banks have passed the crisis and those which have required assistince gave evidence today of being able help themselves. James G. Cannon, rice president of the Fourth National Bank and a member of the Clearing House committee appointed to examthe national banks that have been under criticism. announced today that condition of the banks as shown at Clearing House was first-class. Almough a few of them might have to assisted further, he said that conlitions were tast becoming normal. The action of the Knickerbocke Trust Co., which suspended yesterday, re-open today did not exercise such adverse influence on the general situation as might have been expected and the early action of Acting Superintendent of Banks Skinner in taking possession of the institution on the adof the attorney general gave rise a feeling of relief. as it was felt that the state officials would make the most out of the situation. It is said to a question whether the institution will ever re-open, at least under the present management. Another favorable development tolay was a sort of tacit uderstanding between the banks and the members of the Stock Exchange to aid each othbanks by loaning money at somehing like normal rates, and the tradby preventing the bottom dropping of prices on the exchange. Though cail money ruled nominally at 70 per

3. October 24, 1907 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, October 24, 1907

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feature. The depositors in the Dollar Savings bank in the Bronx, of which Borough President John Haffen is the head, became uneasy over the general and many under situation money today clamored impression for their that their deposits were in jeopardy. These depositors were chiefly foreigners who had confused the situation yesterday of the run on the Knickerbocker Trust company's Bronx branch with their own institution. Officials of the latter institution explained matters and the run, for which there was absolutely no excuse, ended at once. This flurry over things looked still better as the uninformed element among depositors was regarded as hard to control in times of general excitment. The clearing house report was also favorable today. Apparently the national banks have passed the crisis and those which have required assistance gave evidence today of being able to take care of themselves. Another favorable development today was a sort of tacit understanding between the banks and the members of the stock exchange to aid each other's banks by loaning money at something like normal rates, and the traders by preventing the bottom dropping out of prices on the exchange. Though call money ruled nominally at 70 per cent today, and the fnal/accommodation was se90 cent, of the recured day several at per biggest throughout banks the newed loans at 6 per cent, and millions out at half have been that were might let the squeezed interest from rate desperate borrowers. Then, too, minor influences, making for confidence, were at work. Taken as a whole therefore, the day passed much better than had been expected and the promise for tomorrow is for a quiet and better day all around. Review of Accounts. The conferences at the office of J. P. Morgan and Company made a thorough review of the accounts of the Trust Company of America. The company's securities were brought over in wagon loads. carefully scrutinized and it is understood found so satisfactory that the Trust com-, pany will receive assistance should it be needed tomorrow. At the conference, or rather a series of conferences, were present not only all the presidents of the Trust companies concerned, particularly the Trust Company of America. but many other financiers who are interested in the situation in general. Among them were J. P. Morgan. E. H. Harriman, Thomas F. Ryan, H. C. Frick, Paul Morton. George F. Baker, Hamilton Fish. Assistant United States Treasurer, Judge E. Gary (CONTINUED ON PAGE 2.)

4. October 24, 1907 The News-Democrat Providence, RI
Article from The News-Democrat, October 24, 1907

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a recent statement, the institution owed depositors about $3,000,000. EMPIRE CITY BANK. The Empire City Savings bank, located at 231, West 125th street, posted a notice this morning announcing their suspension for 30 days under the banking laws. The officials of the bank declare that the institution is entirely solvent, but that they decided to avail themselves of the 30-day notice of withdrawal under the state law, because they feared a run owing to the suspension of payment by the Hamilton and Twelfth Ward banks in the same neighborhood. The Empire City Savings bank, according to a recent statement, owed its depositors about $3,300,000. The Empire City Savings bank is one of the city's comparatively minor organizations. Its suspension is without bearing on the general financial situation in New York. The run on the Dollar Savings bank in the Bronx, which began Tuesday, continued today. Nearly 300 depositors were lined up outside the building when daylight came. Many of them, a majority of whom were women, had stood all night in the line. A large percentage of the Dollar bank's depositors are foreigners. The sub-treasury received $10,000,000 in cash from Washington this morning. The shipment consisted of bills of all denominations, largely lower denominations, in order to meet every demand for small bills. This permitted Secretary Cortelyou to deny reports that the supply of small bills was not sufficient to meet current needs. He says the amount received today amply meets present requirements. PERKINS IS PLEASED. After a conference with Secretary Cortelyou this morning. George W. Perkins, of J. P. Morgan & Co., said: "The situation is working itself out satisfactorily. Confidence is being restored. and I can say that the financial institutions of the city are perfectly solvent. Today is better than yesterday, and tomorrow will be better than today." At the office of the state bank examiners it was stated today that up to 10:45 a. m., they had received the report of the suspension of only three suburban banks, and It was believed by the examiners that other than these three minor institutions. no suspensions would be recorded today. One of the examiners said that the Hamilton, Twelfth Ward and Empire City bank are perfectly solvent. Call money opened at 50 per cent. Weakness in the stock market apparently was due to forced liquidation, and represented to a considerable extent the closing out of stocks carried to speculative account on margins. The decline in prices after 11 o'clock became more precipitate, Union Pacific selling down to 1061/2. St. Paul, to 102½. Northern Pacific to 106, Reading to 75½. and Atchison, to 73. OTHER BANKERS TALK. The situation of the Trust Company of America at noon was appreciably better. Oakleigh Thorne said to The Associated Press that they were getting on very well: that a good many depositors were returning their money and withdrawals were by no means so heavy as they had reason to expect from yesterday's experience; that the applicants at the paying teller's window had fallen off, both at the parent bank and at the Colonial, and he had no solicitude as to the future. George R. Sheldon, one of the leading bankers, said at noon: "There is absolutely no cause for alarm. The situation may be regarded as clear, and there is a decided improvement today. The banks and trust companies are perfectly solvent and will meet any demands made upon them." Mr. Sheldon made the above statement at the close of the conference with J. P. Morgan and other bankers. (Continued on Page Two.)

5. October 24, 1907 The Laramie Republican Laramie, WY
Article from The Laramie Republican, October 24, 1907

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Deposits Exceed Withdrawals. New York, Oct. 24.-In the first half hour of the business of the Trust Company of America, more money was deposited than was withdrawn. The deposits to 10:30 amounted to more than $900,000. At 10:45 J. P. Morgan, in reply to a question as to the situation, said: "It is all right." Stillman Concurs. James Stillman, president of the National City bank, the largest bank in the United States, who was with Morgan, concurred, saying that the situation was satisfactory. Cortelyou Satisfied. Secretary Cortelyou at 11 o'clock said: "Things look pretty good now. I will remain here some time longer, how long I cannot say. I would have had to be in New York tonight, any way. The rumor that we are short of small bills is unfounded; we have $10,000,000 in small denominations." Suspensions Without Effect. The suspension of payment of three relatively small banking institutions in the outlaying Harlem districts were without any effect whatever on the general financial situation down town. The Empire City Savings bank is a comparatively small organization. State Examiner in Charge. The Twelfth Ward bank is a state institution, and the state bank examiner will have charge of its affairs. Its last statement showed that it owed depositors $3,000,000. Run Continues on Dollar Bank. The run on the Dollar Savings bank in Bronx, which began Tuesday, continued. A large percentage of its depositors are foreigners. Stock Market Stronger. The stock market opened strong and higher. Active buying orders were in the market, but the opening pace proved too rapid. There was a reaction and activity was diminished. Call Money at Fifty. The general level of prices fell below last night. Call money opened at 50 per cent.

6. October 24, 1907 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, October 24, 1907

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this morning that if this report bore out statements made by officers of the institution Tuesday night verbally as to its condition, aid would be extended in whatever situation may be required to pay off the depositors who demand their money Every preparation was made by the Trust Co. of America to meet any unusual rush, and it was announced that three paying tellers would be on duty at 10 o'clock. The crowd in front of the Wall street office of the Trust Co. of America grew steadily and at 9.30 it was estimated to number about 150 persons. The Knickerbocker Trust Co. also was surrounded by a constantly increasing number of persons who were waiting in the hope that the institution would open Wednesday At the Colonial branch of the Trust Co. of America in the St. Paul building on Broadway more than 100 persons were in line shortly before 10 o'clock waiting for the doors to open. Secretary of the Treasury Cortelyou arrived at the sub-treasury at 9.40 A. M. Wednesday, and announced that he would make his headquarters there for the day. Italian depositors who started a run on the Dollar Savings Bank in the Bronx were waiting at the doors of that institution to the number of 100. before the bank opened for business. Wedn Sday. The Dollar Savings Bank is nearby the Bronx branch of the Knickkerbocker Trust Co. and the Italians became alarmed by the run on the Trust Co.'s branch The crowd in front of the Trust Co. of America grew rapidly and before opening numbered 300. Secretary Cortelyou said Wedesday morning: "I have nothing to add to my statement of Tuesday night. I will be here throughout the dav and as long as the situation seems to need my presence." Supt. of Banks Skinner took possession of the 66 Broadway branch office of the Knickerbocker Trust Co Wednesday morning. Mr. Skinner said there would be no further resumption of business by the Knickerbocker Trust Co. until he has thoroughly investigated its condition. Announcement was made Wednesday that Oakleigh Thorne, president of the Trust Co. of America. has sold control of the Central Georgia which he purchased jointly with Marsden J. Perry last July. Mr. Thorne declined to say to whom the railroad had been sold. He denied that the road had been sold to the Rock Island interests. Westinghouse Electric sold own to 60 at the New York Stock Exchange a decline if 197 from Tuesday night. The corridors of the office of the Trust Co. of America were crowded by a throng of 60 persons when the hour for beginning business arrived. Pres. Thorne then said he hoped to meet all demands unles sthe di positors came in too large numbers He said the company had not asked for assistance. The scenes about the offices of the Knickerbocker Trust Co. Wednesday indicated the alarm felt by the public. \ line of 350 persons extended for almost a block from the main office along 3:th street when 2 police captain announeed in the corridor that the officials had decided to make no payments Wednesday. About 100 of the depositors departed. but at least 200 still waited in line. There were 190 depositors waiting at the Harlem branch of the Knickerbocker and 1000 spectators watching them when the news came that there would be no payments. A state bank examiner had difficulty in getting into the office. The Clearing House committee was in conference with several bankers at 10.30. After taking charge of the Knickerbocker Trust Co., Acting Superintendent of Banks Skinner said: "Under advices of the attorney general I have take possession of the Knickerbocker Trust Co. and its branch offices. The support to the institution which was expected Tuesday has not been furnished A bank examiner is in charge of each office. Payments will be received on obligations due to the Trust Co. but no payment will be made by the examiner in charge. Payments should be in cash. Collateral will not be surrendered until it is shown that it is not pledged for other indebtedness to the institution. A report was started that there was a run upon the Morton Trust Co., but an investigation showed it to be und true. An Associated Press representative who has just come from there reports that three depositors were there in the Trust Co. at the moment. A thorough examination of the Trust Co's. finances made in the last 24 hours shows that it has over 70 per cent. a cash. James G. Cannon. vice president of the Fourth National Bank, and a memh Cleanine Ho" appointed to examine the national It DRIVES vaten have it Ulive announced today that the condition of

7. October 24, 1907 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, October 24, 1907

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Cortelyou received many callers and all who conferred with him subsequently appeared to have been reassured. Another potent factor in bringing a better feeling and the undoubted return of saner sentiment and improved confidence, was the ability of the Trust Company of America to withstand an all day run as it successfully of enormous withthe officials of the prodrawals, did." In the face bank claimed their readiness to settle with all depositors on demand. Even for a few minutes after the regular hour of closing the company continued to pay out money at its main office in Wall street and the Broadway branch and certify all checks presented. Then it was announced that the institution would be open as usual at 10:30 o'clock tomorrow morning prepared for all eventualities. So marked was the strength of the bank that many who withdrew deposits early in the day again deposited them before the doors were closed. The total resources of the company as last reported were in excess of $70 000,000. Several million were withdrawn, but funds to satisfy every claim were said to be at hand. This was the only run of importance today and this fact was an encouraging feature. The depositors in the Dollar Savings Bank in the Bronx, of President became uneasy over is which the borough head, John Heffen the general situation and many clamored for their money today under impression that their deposits were in jeopardy. These depositors were chiefly foreigners who had confused the run of yesterday on the Knickerbocker Trust Company's Bronx branch with their own institution. Officials of the latter institutions explained matters, and the run for which there was absolutely no excuse, ended at once. This flurry over, things looked still better as the uninformed element among depositors was regarded as hard to >control in times of general excitement. Crisis is Passed. The Clearing House report was also favorable today. Apparently the national banks have passed the crisis which have required assistevidence today and anse, those gave of being able to take/care of themselves. Another favorable development toa sort of tacit understanding the banks and the day between was members other's of the Stock Exchange to aid each banks by loaning money at something like normal rates, and the traders by preventing the bottom dropping out of prices on the Exchange. Though call money ruled nominally at 70 per cent, today and the final accommodation was secured at 90 per cent. throughout the day several of the banks renewed loans at 6 per and millions were let cent, biggest out have at been half the interest rate that might squeezed from despera te borrowers. Then, too. minor influences, making for confidence, were at work, Taken as a whole, therefore, the day passed-much better than had been expected and the promise for tomorrow all is for a quiet and better day around. The conferences at the office of J. P. & Co. made a the affairs of the Morgan view of thorough Trust Com- repany of America. The company's sewere brought over in wagon carefully scrutinized, loads, curities satisfactory and it that is understood found so the Trust Company will receive assist-

8. October 24, 1907 The Times Dispatch Richmond, VA
Article from The Times Dispatch, October 24, 1907

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Another potent factor in bringh about a bette feeling and the retu of saner sentiment and improved có fidence was the ability of the Tru Company of America to withstand all-day run, as it successfully did. the face of enormous withdrawals t officials of the bank proclaimed the readiness to settle with all deposito on demand. Even for a few minut after the regular hour of closing t. company continued to pay out mon nt its main office In Wall Street a at the Broadway branch, and to ce tify all checks presented. Then it w announced that the institution wou be open as usual at 10:30 o'clock t morrow morning prepared for : eventualities. So marked was ti strength of the bank that many WI withdrew deposits early in the di again deposited them before the doo closed. The total resources of 1.) company as last reported were in e: cess of $70,000,000. Several million were withdrawn to-day, but funds satisfy every claim were said to I at hand. This was the only run of importan to-day, and this fact was an encoura ing feature. The depositors in ti Dollar Savings Bank, in the Bronx, which Borough President John Havfre is the head, became uneasy over ti demoralization. many clainoring I their depositors their the had confused Knickerbocker money, deposits were under the were chiefly run the in Trust jeopardy. of foreigners. impression yesterday Company The wl th o explained Bronx tion. Officials branch matters. of with the and their latter the own institutio run, institu f which there was absolutely no excus ended at once, This flurry over, thing looked still better, as the uninforme element among depositors was regarde as hard to control in times of genera excitement. Clearing House Report Favorable. The clearing house report was als favorable to-day. Apparently the na tional banks have passed the crisis, an those which have required assistano gave evidence to-day of being able 1 take care of themselves. Another favorable development to day was A sort-of tacit understandin among the banks and the members ( the Stock Exchange to aid each other banks by loaning money at somethin like normal rates. and the traders b preventing the bottom dropping out o prices on the exchange. Though call money ruled nominall at TO per cent. throughout the da: several of the biggest banks renewe loans at 6 per cent., and millions wer let out at half the interest rate thu might have been squeezed from des perate borrowers. Then, too, minor in fluences, making for confidence wer at work. Taken as a whole, therefore the day passed much better than ha been expected, and the promise to to-morrow is for a quiet and bette day all round. Fifteen bank examiners were bus here to-day, and their frequent re ports were said to be favorable. Th announcement from Albany to-nigh of the appointment by Governo Hughes of Clarke Williams, of thi city, as State Superintendent of Bank was received with favor, and is view ed as a timely act by the Governo Acting Superintendent Sinner had bee filling in since the resignation of Su perintendent Mott. Hold Midnight Conference. At 12:20 o'clock Mr. J. Pierpont Mo gan and James Stillman, president . the National City Bank, made 3. hu ried call upon Secretary of the Trea ury Cortelyou at the Manhattan Hote Mr. Morgan declined to say anythir regarding his visit to Mr. Cortely discuss the tinancial situation

9. October 24, 1907 New-York Tribune New York, NY
Article from New-York Tribune, October 24, 1907

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RUN ON HAFFEN'S BANK. Savings Withdrawn-Stood Next to Knickerbocker's Bronx Branch. A run, caused solely, according to its trustees, by its position next to The Bronx branch of the Knickerbocker Trust Company, began early yesterday morning on the Dollar Savings Bank of New York, at Third avenue and 148th street. It is said a rumor that "the bank at 148th street and Third avenue" had failed spread through the Little Italy section of The Bronx on Tuesday night. and long before banking hours yesterday morning a mob of Italians, Poles, Scandinavians and Germans had gathered in front of the Dollar Savings Bank. To relieve the fears of the small depositors the bank's doors were opened fifteen minutes before the regular time. and the paying off began at once. John Haffen, the president, declared to all inquirers: "The Dollar Savings Bank is perfectly sound and we are prepared to meet all demands. We have ample capital, and entertain no fear at all." President Haffen had ordered all clerks to be on hand at 7 o'clock, evidently to anticipate a run. As

10. November 10, 1907 The Washington Herald Washington, DC
Article from The Washington Herald, November 10, 1907

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PROPINQUITY STARTS A RUN. Mistake of Caption Writer Also Gives Harlem Bank Trouble. One of the runs of the period that has just gone into history. that on the Dollar Savings Bank, in The Bronx, had a haphazard start. Its banking house was next to the Bronx branch of the Knickerbocker Trust. When that closed its doors the rum spread that the savings bank was in trouble. Propinquity, in this case, says the New York Tribune, caused the Dollar Bank people no end of trouble for five days, but they weathered the storm nobly. This run, with the aid of a careless caption writer on a morning newspaper, caused a vigorous run on the Harlem Savings Bank, one of the oldest and stanchest institutions above One Hundredth street. The newspaper, in describing a photograph of a run on the Dollar Bank, in The Bronx, said that depositors were raiding a Harlem savings bank. That was enough for the foreign born element among the depositors, and they swooped down for their savings. Foreign-born depositors predominate at both these banks, and the runs became lines of all nations. They were more picturesque than those of the trust company depositors. They jabbered their troubles to the housetops. The women cried or laughed altérnately in a money fear hysteria. One and all besought policemen and reporters to slip them into the bank ahead of the rest. Many of this foreign crowd were so excited that they would accept nothing but gold in return for their much fingered passbooks. Some even went SO far as to test each piece by biting it. The sad part of it is that all who withdrew lost four months' interest, and for no reason in the world, for at no time were the savings banks in danger. The overnight runners who kept a long vigil in front of the Lincoln, the Colonial, and the Trust Company of America several nights had various ways of passing the time. Some brought campstools, and all laid in a supply of provisions. A drenching ran came down on them to add to their woe. But almost simultáneous with the storm there drifted into view of the line a vender of second-hand umbrellas. The bank runnérs bought him out,