Article Text
FARMERS START A RUN ON A BANK Middletown, N. Y., Dec. 12.-The First National Bank of this city successfully encountered a run this morning. By noon everything was quiet, and when the hour for closing arrived the deposits exceeded the
First National Bank (Middletown, NY)
Episode Information
- Episode UID
52301092- Episode Type
- Run Only
- Bank Type
- national
- Bank ID
-
5230national - Charter Number
- 523
- Start Date
- December 12, 1890
- Location
- Middletown, New York (41.445, -74.424)
Metadata
- Model
- gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
d9a01d0351992b75
Response Measures
Accommodated withdrawals, Public signal of financial health, Capital injected, Books examined
Events (3)
1.
September 29, 1864
Chartered
- Source
- historical_nic
2.
December 12, 1890
Run
- Cause
- Macro News
- Cause Details
- Scare over the general tightness of money and circulating rumors about the bank's solvency prompted farmers and depositors to withdraw funds.
- Measures
- Called together prominent local men to examine finances and issued a public statement/pledge of solvency signed by county leaders, restoring confidence.
- Newspaper Excerpt
- The First National Bank of this city successfully encountered a run this morning.
- Source
- newspapers
3.
June 4, 1931
Voluntary Liquidation
- Source
- historical_nic
Newspaper Articles (4)
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Article Text
Run on a Bank at Middietown, N. Y MIDDLETOWN, Dec. 12-There - was a run on the First National bank today on account of the scare over the present tightness of money and about $10,000 was drawn out. The bank is said to be solvent with $28,000 surplus, and confidence is believed to have been restored.
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Article Text
How to Avert a Panic. Brooklyn Eagle. When the officers of the First National bank of Middletown discovered that rumors affecting their solvency were in circulation and that the farmers and dairymen of Orange county were likely to withdraw their deposits in a hurry, they did a very sensible thing. They called together the solid men of Middletown and asked these to appoint a committee to examine the financial condition of the bank. The result was a specific announcement of the solvency of the bank and a pledge signed by the wealthiest men in the county that the depositorwould be paid in full. The announces ment did not altogether prevent a run on the bank, but it reduced it to very small proportions. If similar action was taken whenever a bank is threatened with a run the number and amount of financial disasters due to causeless panic would be largely reduced. There are hundreds of country banks, normally solvent and holding gilt-edged securities far in excess of their liabilities that could be easily. embarrassed and forced into temporary suspension by the spread of a panio among their depositors resulting in the immediate withdrawal of deposits. When such a panic is threatened the plan adopted by the First National bank of Middletown might be profitably copied. Get the local magnates whose names are synonyms for wealth and probity to guarantee the solvency of the bank, and there will seldom be any danger of a disastrous run.
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Article Text
FINANCIAL BILL HOTLY DENOUNCED Senator Clarke of Arkansas Hits Several Fierce Blows ALDRICH ATTEMPTS REPLY Investigation of Causes of the Panic Is Demanded by Senator Clarke, Who Also Denounces New York Stock Exchange. Washington, March 11.-Senator Clarke of Arkansas denounced the pending currency bill in a speech in the Senate today, declaring that no currency legislation should be enacted until an investigation is held as to the causes of the panic. "No such legislation is necessary now, said Mr. Clarke. "It is not only not necesI sary, but it may become dangerous. am not disposed to tolerate the idea of giving any support to the committee bill, nor the substitute proposed by the minority members of the Senate." If emergency currency is to be provided, Mr. Clarke said, the benefits should be extended all persons whose legitimate business demands cause them to need it. Mr. Clarke denounced the operations of stock exchanges and said the American people would not be satisfied with the proposed currency legislation without a complete knowledge of causes of the panic. "The time has arrived," he said, "when the affairs of the New .York stock exchange and other stock exchanges must be looked into." Mr. Clarke's reference to the stoppage of the payments by the New York banks called Mr. Aldrich to his feet with the remark that he did not believe the people would permit that course again to be pursued. "I trust the senator from Rhode Island as a historian," retorted Mr. Clarke, "but I do not trust him as a prophet." Mr. Clarke expressed the opinion that the majority would not pass the bill allowing the emergency circulation to be retired without limitation. Mr. Clarke said he would not only require a restriction of reserves, but he would deny to a national bank the right to pay interest on checking accounts. Senator Nelson suggested that the national banks should pay interest on the $250,000,000 of government deposits. Mr. Aldrich said that five years ago he had introduced a bill providing for the payment of interest on such deposits at the rate of 1 1/2 per cent, but, he added, senators had opposed that bill on the ground that it changed the nature of the loan. Former Senator Spooner and the late Senator Morgan, he said, opposed the bill. If that objection could be overcome he declared his willingness to again bring in such a measure. He did not know any reason unless it should be a legal one, of the kind suggested, why interest should not be charged on these deposits. Mr. Culberson, he said, had introduced a bill to require payment of interest on government deposits and it was now before the committee on finance. Mr. Bailey spoke at some length suggesting that the main purpose of his substitute was to favor the principle of government money instead of bank money He explained that he had provided for a distribution of the emergency currency in accordance with population, although he realized that business necessity was a greater measure of the amount they should have. But it was not possible to make sure of the business needs of the several sections and it was a simple matter to ascertain the population. An extended argument was made by Mr. Newlands of Nevada in favor of his view that the sending of a check from one state to another makes the business of banking interstate commerce.