Bond Street Savings Bank (New York, NY)

Episode Information

Episode UID
6382391390921
Episode Type
Suspension → Closure
Bank Type
savings
Bank ID
638239139 hash
Start Date
September 20, 1876
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
39ab0288bf5e0b58

Response Measures

None

Description

Trustees resolved to wind up the bank amid heavy withdrawals but the suspension followed a court order to show cause and a receiver was appointed.

Events (2)
1. September 20, 1876 Suspension
Cause
Government Action
Cause Details
Order of Justice Landon to show cause following trustees' resolution to wind up after heavy withdrawals and loss of confidence.
Newspaper Excerpt
The closing of the Bond Street Savings Bank in New-York to-day was due to an order of Justice Landon ...
Source
newspapers
2. September 21, 1876 Receivership
Newspaper Excerpt
An injunction ... was served ... restraining them ... and ordering them to show cause why a receiver should not be appointed ... the trustees, who desired to liquidate its affairs.
Source
newspapers

Newspaper Articles (22)
1. September 21, 1876 New-York Tribune New York, NY
Article from New-York Tribune, September 21, 1876

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MISFORTUNES OF THE BANK. ITS LOSSES ON TOWN BONDS-WITHDRAWAL OF DEPOSITORS AND TRUSTEES. ALBANY, N. Y., Sept. 20.-The closing of the Bond Street Savings Bank in New-York to-day was due to an order of Justice Landon of the Supreme Court, to show cause on the 25th inst. why a receiver should not be appointed. The order was issued on the application of the Attorney-General, at the request of Superintendent Ellis of the Banking Department. in the January statement the bank had shown a deflcleney of income for 1875 amounting to $20,000, and this was greatly due to the suspension of interest on certain town bonds during litigation. Recently, however, a

2. September 21, 1876 Evening Star Washington, DC
Article from Evening Star, September 21, 1876

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Injunction on Bank Officers. NEW YORK, Sept. 21-Aniojunction issued by Justice Landon, of the Supreme Court, was served 3 esterday morning upon the officers of the Bond Street Savings Bank, at Bond street and the Bowery, restraining them, until further order of the court, from crrrying on any transactions as a corporate institution, and ordering them to show cause why a receiver should not be appointed to take steps toward closing up the affairs of the bank and liquidating all liabilities. The assets are 81,412,287, and the liabilities $1,286,688. A large part of the assets are in real estate. All injunction was issued at the instance of t the trustees, who desired to liquidate its affairs.

3. September 21, 1876 The Cincinnati Daily Star Cincinnati, OH
Article from The Cincinnati Daily Star, September 21, 1876

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unsatisfactory, and leaving the essential facts untouched. The Bond-street Savings Bank suspended yesterday. They will pay depositors in full. During the past year over one-third of the deposits have been withdrawn, owing to recent savings bank failures and general lack of confidence. Murdered by Her Husband. Mrs. Rose Chatterton, 58 North Second street, Williamsburg, was murdered by her idle drunken husband Samuel, last night in the presence of the children. He struck and kicked her until she expired. He was arrested.

4. September 21, 1876 New-York Tribune New York, NY
Article from New-York Tribune, September 21, 1876

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If the hopes are well founded that are entertained of eventually paying the depositors of the suspended Bond Street Savings Bank in full, there will be little reason to regret the closing of its doors. There has been an unhealthy growth in the number of these institutions in this city, and where a weak one can be weeded out without loss to depositors, the result can only be to strengthen those which are already strong. The testimony of the Bank Superintendent and that afforded by the statements of the President of the bank shows that the trustees deserve praise for their considerate action in bringing the bank to a stop before its resources became impaired. The cautious trustee is a good thing to have around in hard times.

5. September 21, 1876 The New York Herald New York, NY
Article from The New York Herald, September 21, 1876

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BOND STREET SAVINGS BANK. Yesterday morning the Bond Street Savings Bank closed, the trustees having detarmined 10 give over business and pay the depositors in full. Owing to the steady withdrawal of deposits they concluded that it was expedient to wind up their affairs and make a settlement while it was in their power to do so. On September 5 a meeting was called and the conditio: n of the institution was investigated. It was found that during the past year and since the failure of the Third Avenue Bank one-third of the deposits have been withdrawn, and that this withdrawui is steadily going on to such an extent as to indicate is lack of confidence on the part of depositors and the public generally. In view of these facts they deem it an act of prudence that a receiver be appointed to close up the affairs of the bank, and they have passed resolutions to that effect. Among the assets are items of real estate amounting to $355, in round numbers. To convert this property into money at fair prices will require time and thus prevent the bank from going into voluntary liquidation and paying off its depositors on demand. Resolutions explaining their reasons for closing were unammously adopted at the meeting of the trustees on September 5 and forwarded to the Superintendent of the Banking Department, who has given leave to the Attorney General to dissolve the corporation and wind up its attairs. The following IS a statement of the bank's condition at the time of closing:ASSETS.

6. September 22, 1876 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, September 22, 1876

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The Bond street, New York, savings bank has been closed by order of the bank commissioner and a receiver will be appointed.

7. September 22, 1876 The Rutland Daily Globe Rutland, VT
Article from The Rutland Daily Globe, September 22, 1876

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From New York. HELP FOR SAVANNAH. NEW YORK, Sept. 21. Two thousand dollars were yesterday sent to the Savannah relief association from the chamber of commerce and contributions amounting to $5,781 are acknowled by George Yonge, treasurer of the railroads agent's committee, Palmer & Deppish, and S. H. Eckman of No. 9, Thomas street SAVINGS BANK SUSPENDED. The Bond street savings bank, corner of Bond street and the Bowery, has suspended business in obedience to an order from Judge Landon of the supreme court, dated Schenectady, September 17, and returnable September 25. THE HELL GATE EXPLOSION. At nine minutes before three o'clock Sunday afternoon, being high tide, has been fixed upon as the time for exploding the mine under Hell Gate reef. DEAD. Wm. P. Ketchen, president of the Park bank, died suddenly this morning of paralysis of the lungs.

8. September 30, 1876 The Dallas Daily Herald Dallas, TX
Article from The Dallas Daily Herald, September 30, 1876

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SUSPENSIONS. 1100 Run on the New York Savings Banks. NEW YORK, September 29.-The suspension of the New Amsterdam and Bond street savings banks has produced quite an excitement among small depositors in different savings institutions, and at the time the banks were opened for business this morning, the counters were surrounded by people anxious to withdraw their deposits. Bank Suspension in San Francisco. SAN FRANCISCO, September 29-The Valley Savings and Commercial Bank suspended yesterday. It was caused by the financial embarrasement of the president, General J.B. Friable, who has been unfortunate in stock specu tions. The assets of the bank stated at upwards of $550,000, and debtedness at $325,000. The BUSPEL sion is expected to be temporary.

9. October 3, 1876 The Sun New York, NY
Article from The Sun, October 3, 1876

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The bank's liabilities are to the individual depositors $27,816,254.00. leaving to profit and loss, 09 218,274.03. At the Bond Street Savings Bank the trustees " ere in session considering the appointment of H receiver. It is probable that Mr. W. S. Paine will De selected. The assets of this bank conList of: Valuation or Cost. Par. a 1001 not

10. October 14, 1876 Shepherdstown Register Shepherdstown, WV
Article from Shepherdstown Register, October 14, 1876

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The New York Commercial Advertiser says: "An inturiated depositor in the suspended Bond street savings bank demanded last night that the president and officers of the bank should be seized and their heads chopped off and thrown into the safe. This plan prevails in China, and no bank has suspended there for a thousand years, but we are afraid it will not work in New York, though it is fair to say that the proposal was vehemently applauded, Meanwhile, president and cashiers may find it advantageous to note the drift of popular sentiment." The China plan may be put into operation if they are not careful.

11. November 3, 1876 The New York Herald New York, NY
Article from The New York Herald, November 3, 1876

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BOND STREET SAVINGS BANK. As a result of the notice published in the HERALD a few days ago twenty-two of the depositors who made deposits in the above named bank on and after Sep. tember 6, the day on which the directors resolved to suspend payment, presented their claims for such amounts yesterday and were paid in full. The total amount paid was $1,995, which leaves over $2,000 to be yet called for. The receiver is still anxious for all dépositors who have not done NO to hand in their passbooks, to be written up and verified.

12. January 6, 1877 The New York Herald New York, NY
Article from The New York Herald, January 6, 1877

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BOND STREET SAVINGS BANK. The Receiver of the Bond Street Savings Bank, Mr. Willis S. Paine, has paid to date, from and including December 30 last. all depositors who have presented themselves a dividend of fifty-five per cent. Five hundred thousand dollars of this dividend IS still in the hands of the receiver.

13. January 17, 1877 New-York Tribune New York, NY
Article from New-York Tribune, January 17, 1877

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LETTERS FROM THE PEOPLE. A BANK RECEIVER'S ECONOMY. CARD OF EXPLANATION FROM THE TELLER OF THE BOND STREET SAVINGS BANK. To the Editor of The Tribune: SIR: A short communication in a recent number of your journal criticising "a bank receiver's extravagance," concludes with a proper appeal provided the premises were true. "The six able-bodied men" were composed of four men and two boys, and two of the men were dismissed last Saturday evening. Depositors were exceedingly anxious to withdraw the dividend during the first ten days of January, in order to deposit in other savings banks and obtain the benefit of the six months' interest accruing from Jan. 1. Previous to last Friday the number of depositors was 80 great each day that despite our most strennous efforts we did not conclude the payments until after 5 o'clock in the afternoon. Upon two occasions we remained in the bank till 10 o'clock in the evening. Furthermore, the " crew were not peid even the lowest sum mentioned in "Depositor's" communication. OSCAR EVERITT, Teller. New-York, Jan. 16, 1877.

14. September 27, 1877 The New York Herald New York, NY
Article from The New York Herald, September 27, 1877

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BOND STREET SAVINGS BANK. Mr. Willis S. Paine, in a letter to the HERALD, states that as the receiver of the Bond Street Savings Bank, he has commenced to pay the creditors of this bank a dividend of ten per cent, and that the first dividend of fifty live per cent bas' been paid to all creditors, with the exception of 718 depositors.

15. March 24, 1878 The New York Herald New York, NY
Article from The New York Herald, March 24, 1878

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THE BOND STREET SAVINGS BANK. To THE EDITOR OF THE HERALD:11 is high time we should hear something from Mr. W. J. Paine, receiver of the defunct Bond Street Savings Bank. Why is not the building sold and the depositors paid according to law? It took me ten minutes to make my deposit and nearly eighteen months to obtain part of the money I deposited. MONEY.

16. August 24, 1878 The New York Herald New York, NY
Article from The New York Herald, August 24, 1878

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THE BOND STREET SAVINGS BANK. To THE EDITOR OF THE HERALD:The receiver of the Boud Street Savings Bank announced in an interview about four weeks ago III the HERALD that no would pay a further dividend to depositors 10 is lew days. Will be please inform the sufferers when they are likely 10 receive any of their ONE WHO IS IN WANT. haru earnings?

17. October 22, 1878 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, October 22, 1878

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MINOR TELEGRAMS. Ballion gone into the bank of France today, 275,000 pounds. Snow fell at North Troy, Vt., Sunday for two hours. Subscriptions to the 4 per cent loan yesterddy were $111,500. National bank notes received at the Treasury yesterday for redemption $450,000. The Connt de Paris has contributed 1000 francs for the ycllow fever sufferers. The receipts of internal revenue vesterday were $646,174 and from customs $706,877. Brig America from Sligo is ashore on Orleans island, St. Lawrence river. Allan mail steamer Sardinian from Quebec arrived out yesterday morning. The whole story of an Afghan envoy to the Porte is untrue. The villa of Samuel George at Jamaica, L. I, was burned yesterday. Loss $10,000. The Ameer's reply to England is unconciliatory and unsatisfactory. The Sultan has authorized Baker Pasha to employ 21,000 men to complete the defensive lines of Constantinople. Seven illicit distilleries were captured in Yankton and Davie counties, North Carolina, last week. The executor of the will of Miss Danser of New York has paid $320,000 to benevolent and religious societies. John Miller, a baker of Providence, R I., was badly burned yesterday by the explosition of a kerosene lamp. Henry Arlington of New York was accidentally and probably fatally shot while gunning near Portsmouth, N. H, yesterday. Nothing has been heard of Hoxie, the defaulting Brooklyn. asssitant district attorney of The Orangemen have sued the mayor of last. Montreal for false arrest on the 12th of July The Democrats of the sixth Tennesse DisCongress. trict have nominated John T. House for The stock markets are steadier upon the contradiction of rumors afloat regarding the suspension of a large Liverpool firm. The headless skeleton of Aaron Symes, an English emigrant, was found Sunday in the woods near Yonkers. A large illicit distillery with 25,000 gallons of mash whiskey was captured in Cherry street, New York, Sunday. A brick building owned by General Brady and occupied by the Muncie Times and the postoffice, at Muncie, Indiana, has been burned. Loss $10,000. All the collieries in a working condition throughout the Schuylkill region began work Monday morning. to fill the additional quota for October and the full quota for November. In Bostou yesterday Fred Collamore fell from a hotel on the corner of Cclumbia killed. avenue and Berkely street and was instantly At Philadelphia yesterday John O'Neil was sentenced to death for the murder of Coroner Hesser in December, 1874. Peter McManus. his accomplice, was also sentenced to death. Senor Pi Y. Mangall has been arrested by the Spanish government and sent to Leville spiracy. for complicity in the recent Republican conThe London Times Bucharest correspondent telegraphs: "Dr. Smith, the American consul at Galatz, told me that he was the bearer of a letter from President Hayes recognizing the independence of Roumania. Mayor Howell of Brooklyn has vetoed a resolution of the aldermen appropriating $20,000 for street repairs on the ground that it was a shallow and hyprocritical dodge to aid politicians in the forth coming elections. The receiver of the Bond street savings bank, New York, which suspended two years ago, yesterday began the payment of five per cent to depositors, which will aggregate upwards of $6,500. Carthagena, New Granada, has an epidemic in the form of malarial fever, the character of which has not been satisfactorily determined by medical men. Some fatal cases have occurred and many are prostrated. Ship Edith Troop of St. John, from New York for Antwerp, with wheat and rice, arrived at Halifax in distress from the effects of the hurricane on the 12th. The vessel is owned by Troop & Son of St. John. A. C. Larose, the murderer of his father and mother and of Moses Schurz, who has been confined in the lunatic asylum at Harrisburg, escaped therefrom Saturday. The physicians had recently pronounced him sane, and fearing that the sentence of death would be carried into effect, he escaped.

18. October 22, 1878 The New York Herald New York, NY
Article from The New York Herald, October 22, 1878

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BOND STREET SAVINGS BANK. During the widespread financial panic of the fall of 1876, which resulted so disastrously to savings institutions all over the country, and which spread like wildfire along Third avenue in this city, the Bond Street Savings Bank was compelled 10 succumb to the pressure of popular distrust. The bank had the con. fidence of the German residents of the east side of the city, 3,800 of whom deposited their savings there, the total amount of deposits being as the time of the failure $1,286,688 02. Mr. Willis S. Paine was an.

19. December 25, 1878 The Sun New York, NY
Article from The Sun, December 25, 1878

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Bond Street Savings Bank. The referee's report of his examination of the accounts of Willis 8. Paine, receiver of the Bond Street savings Bank, which has been confirmed by Jus uce Langdon at Albany, shows that Mr. Paine received since Feb. 1. 1877, $293,055.43. and paid out $245,240.37. leaving a balance of $47,815.36 in his hands.

20. July 11, 1879 New-York Tribune New York, NY
Article from New-York Tribune, July 11, 1879

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Savings Banks. BOND STREETAB SAVINGS BANK of the City additional dividend of FIVE (5) PER CENT, declared June 21, 1879, is payable to depositors and other creditors. WILLIS S. PÁINE. Receiver, etc. 211 Broadway, National Park Bank Building.

21. October 9, 1879 The New York Herald New York, NY
Article from The New York Herald, October 9, 1879

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THAT BANK JOLLIFICATION. THE BOND STREET BANK HOUSE WARMING DECLARED NOT TO HAVE BEEN PAID FOR OUT OF THE SURPLUS. In the statement published in yesterday's HERALD from Superintendent Lamb, of the Banking Department, concerning his investigations into the alleged mismanagement of some of the savings banks in the State, Mr. Lamb makes the following criticism upon the officers of a bank for savings in this city:A newspaper reporter has told me recently that he attended a "jollification" at the opening of the now Bond Street bank Building in 1873 or 1874, and that a whole floor was there laid with tables containing lunch and wine, and one of the officers especially requested him to say in his report that not a cent of the depositors' money was expended in the outlay-it was all sarplus. Novertheless, surplus surply is, to is certain extent, depositors' money: from is the dividends to depositors must be made. This same bank failed a few years afterward and has not paid over seventy-one per cent of its indebtedness. When this paragraph was shown to Mr. Charles D. Bailey, late treasurer of the Bond Street Bank, he shook his head and emphatically declared that he did not think that a strict interpretation of the law allowed the directors of a bank to spend its depositors' money in this way. "I regarded the giving of an entertainment at the opening of our new building as a benefit to us in the way of advertising us and making friends, and thereby increasing the business of the bank and giving us an opportunity to rent part of the building. I took a business view of the matter and believe that the affair was a benefit to the bank, and that, therefore, the spending of the money was of advantage. But I agree with Mr. Lamb. The officers have no right to spond any of the surplus of a savings bank for such purposes." HOW IT WAS PAID FOR. "Then why was it permitted?" asked the reporter. "Well," replied Mr. Bailey, hesitating as though he were about to make a very damaging admission, "between you and me, the entertainment was not paid for from the surplus. In fact, I may as well tell you that I paid for it myself." "Oh!" said the reporter. After further questioning Mr. Bailey admitted that the "jollification" cost $980, that he gave his personal check to the secretary of the bank for $1,000 to pay for it, and that that was all there was of the matter. He did not know that the other directors were all of his way of thinking on this question. Mr. Bailey desired to correct another mistake of Mr. Lamb's. The.assertion that the bank has only paid seventy-one per cent of its indebtedness 18 not true, he says. It has paid seventy-five per cont and will pay ninety per cent, in the opinion of Mr. Bailey. The bank was not mismanaged and failed only as eleven other savings institutions in this city did and from the same causes-viz., the financial panic, the great fire and the sudden depression in business. Moreover, when it suspended Mr. Bailey thought the bank was able to pay every cent of its liabilities, and this would have been the case but for the continued depression of real estate. At all events, said the gentleman, the Bond Street Bank dopositors are better off than any of the others.

22. April 26, 1883 New-York Tribune New York, NY
Article from New-York Tribune, April 26, 1883

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# SUPERINTENDENT HEPBURN'S SUCCESSOR. ALBANY, April 25.-It is reported that the Governor to-morrow will send in the name of Willis S. Payne for Bank Superintendent in place of A. B. Hepburn. Mr. Payne is a lawyer, and has been receiver of the Bond-st. Savings Bank.