5912. Ritzinger's bank (Indianapolis, IN)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
September 25, 1873
Location
Indianapolis, Indiana (39.768, -86.158)

Metadata

Model
gpt-5-mini
Short Digest
52995490

Response Measures

Accommodated withdrawals

Description

Multiple contemporaneous newspaper accounts (Sept 25–27, 1873) describe a run by small depositors on Ritzinger's bank triggered by panic from suspensions and precautionary measures adopted by Chicago/Cincinnati banks and the failure/suspension of local private houses. The bank met demands promptly and did not suspend.

Events (1)
1. September 25, 1873 Run
Cause
Local Banks
Cause Details
Panic triggered by suspensions and precautionary measures adopted by major clearing-house banks and the recent suspension of local private houses (Woollen, Webb & Co.), leading small depositors to withdraw from Ritzinger's.
Measures
Demands by small depositors were promptly met in full; bank paid out claims as presented; First National kept open an extra hour to allow withdrawals.
Newspaper Excerpt
there was quite a heavy run on Ritzinger's bank,and on the Indianapolis savings bank, by a class of generally small depositors.
Source
newspapers

Newspaper Articles (5)
1. September 26, 1873 New Orleans Republican New Orleans, LA
Article from New Orleans Republican, September 26, 1873

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for checks upon banks e drawn. their to be optional on with but the they will certify hands sums. which they drawn are on balances Clearing in House only checks payable member through of the the Clearing such House A Each is required to deposit at all sociation accurities as will Government approved his clearings. value; rail the amount recei of at their bonds par and bills road bonds and are other received stocks and at eventy-five them by per the Certificates cent receivable of the are value fixed are on issued used by the the of balances committee, committee. which can between only be the bank$ render settlement are not negotiable. condition on Change quopanicky and Matters were in it that difficult to furnish feeling tations. to-day to There a was general no feeling cellers to stand of whatever on the but part of buyers and genea and are everything. still The action of the bank scussion here was of this rally consumed unexpected much time. ruinous. There The ecautionary prevailing believe the course that it was a obligation to banks the owe nity. measure, opinion is justified general by the banking commu Chicago Clearing House. The Chicago CHICAGO. September resolved until further condition Clearing House view of the disturbed other cities, and tion affairs and in in New York and balances into of difficulty of converting advice of the bank the and on the commended currency. that members! be currency paythem examiner. authorized to suspend demands made upon counters and ments from on any country large banks a over their New sav Haven savings 25.- Bank. The NEW HAVEN, September the legal delay se in rious run. paying ings banks depositors. are enforcing There has been no Excitement in Memphis. excite MEMPHIS, September account of the susment prevails of banks, here, caused on by the inability closed pension on securities. banks have to realize The following named Bank, De Soto Bank today: First National the Freedmen's Savings 13 and it is and reported Trust Company. There heavy Bank run on the others. all will reopen after It is expected that The excitement the panic subsides. On account this present intense. of the monetary city. panic two and a which run on have all the suspended. banks in business is almost at standstill. suspension in St. Louis. decided Sr LOUIS, September of bankers, 25.-It held was last drafts, night. at to the suspend meeting payment or on exchange, checks or until the either in currency in the East subsides restored. and a firmer excitement condition of the markets is Resolutions of the Associated Bank banks to-night At meeting of the associated the following at the Clearing House unanimous adopted: and resolution Resolved was That for the protection for the purpose of our commercial preventin interests, a drain of currency to adopt from sub- the banks, of we hereby plan agree adopted in New on stantially viz: the Not to pay out currency sums. the checks York. except for small the banks on to be optional with certify checks amount drawn, but we will payable drawn which on balances in our banks, the Clearing House. the through committee of management of The House were directed to issue of Clearing Clearing House the certificates aggregate immediate amounting in set between $500 to $2,000,000. each. for the the purpose banks: of each tling being balances entitled to a pro rata quarter. amount. bank the clearings for the last ample based certificates on to be secured by saided the the character and val of committee lateral lateral to be determined by This arrangement appointed to remain for that in force purpose. till November 1. Little Rock currency has LITTLE ROCK. September increased. The exeite ment over city The failure of the exeitement. banks in Financial Memphis caused are unusual the only topic of conversation. take matters all the merchants refused to the day Nearly to-day. and throughout by decity money a heavy run on the banks de positors. there was As vet they have met every mand promptly Savannah. AVANNAH, September 25.-The Company THE on Savannah Bank and Trust ceased the at noon. and continued on the South matters. ern The Bank Chamber of Georgia of Commerce to the close. is considering Atlanta. ATLANTA. September The Dalkon accure Savings Bank has suspended. The tics are ample. Augusta. ACGUSTA September The National Na Bank. Merchants and Planters tional change Bank Bank of Augusta and Planters and Savings Bank have suspended. The Loan run on the banks has been heavy, especially Cotton is this coming morning. in freely. but there is no money to move it. The cotton market has enspended opera no currency to buy it but there tions: The First National Bank to be paid no serious out as appears usual. on it. The president will pay as long as run there is dollar of currency in the vaults There is confidence that it will weather the storm. The suspended banks have ample 1:a assets. and will meet every dollar's bilities. No suspensions among the business men E and A large meeting of the merchants was held a exchange roome. appointed committ at the to wait upon the directors of the Georgia Railroad and Banking Company and other banks. to issue some medium of exchange to bridge over the present erisis. John J. Cohen & Sons have suspended assets are ample. Their Bonds and stocks can not be sold. There no market for the best securities even at sacrifice. Indianapolis INDIANAPOLIS Ind. September Con siderable excitement was caused here this morning by the announcement of the precautionary measures adopted by the Chi cago and Cincinnati bankers which were at first reported as having total Iv suspended. and the excitement was beightened at noon by the suspension of the private bank ing house of Woollen, Webb & Co., owing mainly to the return of their drafts on the suspended Trust Company of New York, and public confidence became so shaken there was run that on a quite Ritzinger's bank and on the Indianapolis savings banks, by a class of generally small depositors. and some few persons withdrew their money from other banks The First. National Bank. instead of closing at the usual hour. kept open an hour later to give any depositor all oppor tunity to withdraw his money if he wished, and when it closed it had received more There

2. September 26, 1873 The Cairo Bulletin Cairo, IL
Article from The Cairo Bulletin, September 26, 1873

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ceiver of taxes at Verdan this morning paid the sure claimed. HENRY NLEWS & Co. state that the liabilities which their London house describe as "incurred account for New York house, are largely acceptances under commercial conditions for the account of various merchants in thiscity and elsewhere, to whom the drafts will be returned and who will meet them. being prepared so to do by having goods placed in their possession against which the acceptances were given. The apparent liabilities therefore of the London house will be reduced to the extent to which the acceptances under these conditions are provided for by parties OR whose account they were issued. AT INDIANAPOLIS INDIANAPOLIS, September 25.-Consid erable excitement was caused here this forenoon by the announcement of the precautionary measures adopted by the Chicago and Cincinnati banks, which were at first reported as having totally suspended. This excitement was heightened at noon by the suspension of the private banking house of Woolen. Webb & Co., owing mainly to the return of their drafts on the suspended Trust company of New York, and public confidence became so shaken that there was quite a heavy run on Ritzinger's bank,and on the Indianapolis sayings bank, by a class of generally small depositors. Some few persons have withdrawn their money from other banks. The First National bank, instead of closing at the usual hour. kept open an hour, to give any depositors an opportunity to withdraw their money if they wished, and when it closed, it received more money than it had paid out. The unquestionable solvency of all our banks, together with the fearless way in which they met the excitement, seems to haye sent home the crowds who thronged the streets. AT NEW ORLEANS. New ORLEANS, September 25.-There was a meeting this forenoon of all the bank presidents in the city, except two It was resolved to pay ao checks for more than one hundred dollors, all the larger checks to be certified. This arrangement is to continue for thirty days. This ac. tion they consider precautionary to preventa drain. AT SAVANNAH, GA. SAVANNAH, September 25.-A run commenced early this morning on the savings department of the Savannah Bank, and the Trust company and the Southern Bank of Georgia. Large crowds are congregated. Banks are paying dollar for dollar, and business is at a complete standstill for want of currency. AT WASHINGTON WASHINGTON, September 25.-The navy department is paying all employes to-day in anticipation of usual pay day,in order to lessen the stringency of the money market caused by the scarcity of currency. AT MEMPHIS. MEMPHIS, September 25.-There is great excitement in this city on account of the suspension of the banks, caused by inability to realize on securities in New York. The following named banks have closed to-day First National bank. DeSoto bank, and it is reported the Freed. man's savings bank and the Trust company. There are heavy runs on other banks. I: is expected that all will re. open after the panic subsides. The exeitement at present is intense.

3. September 27, 1873 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN
Article from Memphis Daily Appeal, September 27, 1873

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delivery of property in the future made between the passage of this resolution and the further order of the association. The following banks continue to transact business as usual: Commercial national, Third national, Montreal Central, State Corn Exchange, Fifth national, First national, Fourth national, Germania international, Merchants national, Bank of Illinois, Northwestern, Traders bank of Chicago, Union Stock-Yards, Merchants Loan and Trust company, German national, Mechanics and Marine company. There has been no run upon any of these institutions, although some of them have paid out considerable amounts of currency. To the above list should be added the City national bank, which the officers say have paid all demands on presentation. There appears to be very little excitement among the people on the streets, beyond an intense feeling of indignation against Mr. Coolbaugh, president of the Union national bank, who is bitterly denounced by many as having unnecessarily precipitated the suspension of the City national bank. It is authoritatively stated that Mr. Coolbaugh this morning received a telegram from his New York correspondent authorizing him to draw for the entire amount of his balance there and wehundred thousand dollars additional, which offer he refused. CHICAGO PARALYZED. CHICAGO, September 26.-The failure of several of the national banks here today had the effect of bringing operations on 'change to nearly a stand-still, and the action of the board in passing resolutions suspending the rules in reference to option sales so as to prohibit any further deals of that sort until the panic has subsided brought everything to a full stop, except an occasional settlement of a trade or a still rarer cash operation. The following are, as near as can be arrived at, the closing cash quotations for grain: Wheat-No. 2 spring, 94c; No. 3,85c; rejected, 75c. Corn-No. 2 mixed, 341@35c. Oats-No. 261c. Rye-No. 2. 63c. Barley-N 2, $1 18; No. 3, Whisky, 90c. Nothing done in provisions or flour. Freights to Buffalo, 8c. Receipts-Flour, 7000 bbls.; wheat, 168,000 bu.; corn, 175,000 bu.; oats, 50,000 bu.; rye, 5000 bu.; barley, 29,000 bu. AT INDIANAPOLIS, IND. INDIANAPOLIS, September 26.-The panic of yesterday has entirely disappeared. At the opening this morning there was a slight run on Ritzinger's and Sharpe & Fletcher's banks by small depositors, but all demands were promptly met without resort to the rule adopted by the clearing-house last night. Almost all the banks report that their deposits have been larger to-day than the amounts drawn out. The savings banks have met all demands on them promptly, and, like the other banks, their deposits have been in excess of the amount called for. There is a general impression that Wooten, Webb & Co. will resume business in a few days. Merchants are advertising to take their certified checks for goods. At a meeting of the board of trade, held this afternoon, the following resolution relative to eastern freights was adopted: Resolved, That this board of trade request the trunk railroad lines to the east to reduce their rates on fourth-class freight to forty-five and fifty cents to New York and Boston, and to other cities of New England in the same proportion; and that the secretary be requested to notify the railroads of this section.

4. September 27, 1873 Nashville Union and American Nashville, TN
Article from Nashville Union and American, September 27, 1873

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nothing was done. Many of the regular banks have so far done their usual business, paying all checks presented. while others have conformed to the rule adopted last night and paid only small amounts. Most of the saving institutions have been run upon by the smaller class of depositora, whose demands have been met in most cases, but some banks have paid only twenty -five to thirty per cent. cf deposits. There has been no excitement, however, and when the situation has been explained to dep ositors, the majority of them have been satis. fied. and many left their deposits untouched It is the general belief that the storm will be successfully weathered, and that the banks and business men will come out whole. The Mayor sent a message to the City Council, recommending, in view of the fact that the temporary suspe sions have locked up the finds of the city, that treasury warrants or tax certificates to the amount of $300,000 be issued to pay the expenses of the city. An ordinance for such issue was introduced by the Committee on Ways Means, and will pass without opposition. Atchison, Kas ATCHISON, Kas., Sept. 26.- The banks of this city are doing business as usual, and declare they have no intention of suspend ing;jare all well supplied with currency, and ready for any emergency. Several of them kept open till M. to-day. There was no general run on any of them, and only few depositors withdrew their money. The universal feeling is that the banks are sound. The Savings Bank had greater demands on it than any, but met them all remptly. Louisville LOUISVILLE, Sept. -The CourierJournal, to-morrow, will contain interviews of its reporters with leading tobacco, cotton and flour operators. The feeling is one of security generally among tobacco men. European buyers here look for a diminuation of foreign orders, owing to the difficulty of negotiating foreign exchange, and the bringing down of business to cash basis. Money gives banks and sixty day paper men some trouble with lower rates on stock. Speculators in tobacco are driven off. and the most experienced in trade look only for temporary ructure. Prominent cotton men are of opinion that planters will experience delay in getting (ff their cotton for lack of cash purchasers, and cotton is used as currency declines. The situation is as follows: A temporary rise in cotton is expected on account of planters holding it back, but a close money market will ensura closely picked crop. Indianspolis Adopts Loan Certificates for Two Days Only. INDIANAPOLIS, Sept. 26.-The financial excitement still continues. but in a much milder form. The Indianapolis Clearing House, at meeting this morning, resolved to adopt for two days substantially the same plan adopted in New York, Chicago and Cincinnsti. It is hoped by that time confidence will be fully restored. The run still continues on Ritzinger's bank by class of small depositors, mostly Germans, and their claims are being paid in full as fast as presented. Some few deposits are being withdrawn from other banks, but business is going forward in the usual manner. Later.Merchants Taking Certified Checks for Goods. The panic of this city has entirely disappeared. At the opening this forenoon there was Blight run on Ritzinger's and Sharpe & Fletcher's banks by small depositors, but all demands were promptly met ithout sort to the rule adopted by the Clearing House last night. Nearly all the banks re port that the deposits have been larger than the amounts withdrawn to-day. savings banks met all demands on them promptly and, like the other banks, their deposits have been in excess of the amount called for. There is general impression that Woolen, Webb & Co. ill resume business in few days. Merchants are adver tising to take their certified -checks for goods. Hailroad Aid Invoked. At a meeting of the Board of Trade this ternoon the following resolution relative to eastern bound freights was adopted Resolved, That the Board of Trade request the trunk railroad lines to the East to reduce their rates on first-class freight to 45 and 50 cents to New York and Boston, and to other cities of New England in the same proportion. Council Bluffs, Iowo COUNCIL, BLUFFS, IOWA, Sept. 26 Financial matters remain quiet here,though considerable interest is manifested concerning the progress result of the panie eisewhere. A few depositors withdrew their money from banks to-day, but nothing like run was made, or is anticipated. One bank at the close of business this evening had on band nearly $4,000 more than when it ovened its doors in the morning, and several other banks had a similar experience. Savannah Co-operation of Merchants and Bankers. SAVANNAH, Sept. 26.- The Ch mber of Commerce held an djourned meeting late last night to receive a report from their committee that the banks and bankers had adopted the following pream le and resolation: In view of the unprecedented panic prevailing in New Yors, and affecting all parts of the country, paralyzing legitimate bus! Less: and for the purpose of protecting the commercial interests of our community and enabling the banking institutions of the city to furnish the facilities essential to forwarding the crops of the country with safety to all parties, Resolved, That the banks and banking houses of Savannah will only meet the demande of depositors by certifications and checks to be used as the necessities of the holders may require until the temporary difficulties are removed and until exchange can be negotiated or currency be received to move out crops. The banks to day are acting according to this resolution. Baltimore- A Lending Stock Broker Fails. BALTIMORE, Sept 26. Wm. Fisher and Son's, who are among the leading stock brokers of this city have closed their door. de and say they have been forced by the linquencies of customers to suspend business untilthey can collect what is due. They expect to pay every ob igation in full, and only ask a short Indulgence. Washington The Force of Circumstances WASHINGTON, D. C. Sept. 26.-Font, Washington & Co., have posted % notice on the closed door of their banking house today saying; "we are compelled to suspend payment for the present. Charleston- Banks Suspend

5. March 7, 1932 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, March 7, 1932

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# DEPRESSION WEEPERS, READ OF OLD 'HARD TIMES'—AND ENJOY A REAL CRY BY ARCH STEINEL PESSIMISTS of 1932, hard-time howlers and merchants of spectacles, might take an noon off some day and visit files of the Indianapolis pub- library if they want to revel hearse-like newspapers and periodicals. They might even get a grin in ing over the national depres- of 1837, 1873 and 1893. st just to start them off, sup- ing we throw it back to the last uary, 1823. that year a book on an ex- ion to find the source of St. er's river says conditions in were so bad that "The of grain has fallen so low the only means of disposing consists of distilling it into sky, of which the price is 12½ per gallon, and when re- d it sells at the rate of 25 a gallon. Such prices, of se, must be a check upon all stry . . . ." FIRST major depression of the nation, 1837, drew out the comment from the Indiana Jour- nal, Nov. 11, 1837, of "Money is astonishingly scarce, and hardly worth having, when obtained." Blackwood's magazine of the same year details the "vile cus- tom," as it calls it, of hard times -that of "selling wives on the market place, by leading them with a rope on some fair day and the bargain completed for five shillings." Now let's get along to 1873 and the Tweed ring, the Jay Cook Banking Company crash, and when bill collectors in Indianap- olis wrote their demands on postal cards. Those were the days, according to the Indiana Journal of 1873, when "cholera invaded Indianap- olis . . . dead horses floated by the hundreds in the canal . . . sparrows skimmed in the faces of pedestrians, they were so plenti- ful." And, accompanying those lines, were ads that puffed the merits of "Old Mexican Mustang Lini- ment. . . . It is beneficial to man and beast." THE wisecracking maids of to- day don't know how lucky they are, for even though 1873 was a panicky year it didn't stop this, "It appeared in the evidence yes- terday before the mayor that what was supposed to be an ab- duction of the young daughter of Con Collins of South West street was only an endeavor to put a safe distance between her and her father's horsewhip," This was taken from the Indiana Jour- nal of July, 1873. After cholera had taken its toll in city and nation, along came yellow fever to add its distress to financial as well as physical ail- ments. Clothes-line thieves, the long faces of drivers of street car teams, duels, horses running away because of steam whistles, Rit- zinger's bank resisting a run, a vicious dog at Marion county courthouse's peanut stand, were just a few of the trials and tribu- lations of 1873's "blue" days. Amusement's highlight of the year was when P. T. Barnum came to town with his $20,000 talking machine which was advertised as "singing, talking, and laughing." "Oh! but those were the good old days," might be the explana- tion of an oldster without re- membering that on July 2, 1873, the Lafayette Courier called at- tention to the "good old days" with, "Complaints that a number of women are in the habit of go- ing into the Wabash, between the Main and Brown bridges, to bathe in broad daylight, unincumbered with any clothing whatever." And still Betty Co-ed thinks her 1932 hoarding of swimming suit material is the last word in doffing. If you think railroad rates are high when you can get 1932 Chicago excursions for $4.50, just travel back to the Indiana Jour- nal for 1893, and you'll find the same rate quoted to the Windy City on the Monon. In '93, muslin underwear and alpaca coats were the misfortunes that women had to conquer. "Roving armies of vagabonds . . . lynchings . . . anarchists . . . train passengers side-tracked by rail strikes and near starvation from want of food . . . board $8 to $10 weekly . . . Western Union at 45 . . . Indiana bonds selling at New York market at 20 to 80 per cent discount . . . were a few more of the easy times they had in 1893's slump. Of course, the year had its ad- vantages like "square-toed shoes, gas street lamps and city editors getting "$25 to $50 a week," reported in the Forum magazine of the year. The Forum even admitted that a stationary engineer on a wage of $6 a week was able to "pin out $100 savings" for his wife and family. BUT the year was tough on babies, according to the maga- zine, for "if the family is eating corn beef and cabbage, and the baby cries for it then the baby as a rule gets the corn beef and—" But nowdays he may be kid- naped, have his diet broadcast by radio and airplanes hunting him. Say! who said, "It's a tough year?"