6460. German Security Bank (Louisville, KY)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
September 29, 1873
Location
Louisville, Kentucky (38.254, -85.759)

Metadata

Model
gpt-5-mini
Short Digest
ccf68abb68cb661d

Response Measures

None

Description

Articles (Sept 29 and Oct 4, 1873) describe a general financial crisis in Louisville with many banks adopting suspension-of-cash measures, and mention some little run on the banks. The German Security Bank was represented at the meeting but is explicitly stated (Oct 4) as NOT having suspended and as having promptly paid every demand. Thus the bank experienced withdrawal pressure during the crisis but remained open and paid demands. I therefore classify this as a run that did not lead to suspension or closure. Bank type not clearly indicated by the name or text.

Events (1)
1. September 29, 1873 Run
Cause
Macro News
Cause Details
Part of the wider financial crisis of late September 1873 in Louisville; city banks agreed to suspend specie payments and there was strain procuring currency, producing some withdrawals.
Measures
Promptly paid every demand; continued to pay out currency and cash checks despite city banking measures.
Newspaper Excerpt
there was some little run on the banks Saturday, but checks were promptly cashed and no panic occurred. ... The German Security Bank is not among those that suspended ... It has promptly paid every demand on it.
Source
newspapers

Newspaper Articles (2)
1. September 29, 1873 Public Ledger Memphis, TN
Article from Public Ledger, September 29, 1873

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Article Text

The Financial Situation. LOUISVILLE, September 29.- A largely attended meeting of bank presidents, cashiers and prominent financiers of the city was held in the gentlemen's parlor of the Galt House, yesterday afternoon and evening. The meeting was called to consider upon the present exigencies of the financial situation, and after long and earnest discussion, it was resolved to take the same action as that adopted by the association of banks in New York and the other great financial centers of the country, viz: to suspend payment for the present in currency, except in small checks and to adopt the plan of settlement through a clearing house by means of certified checks and certificates based upon pledges of securities deposited with the Clearing House Association. The following banks were represented: Western Financial Corporation, Bank of Louisville, Planters' Na tional Bank, Peoples' Bank, Farmers' and Drovers' Bank, Citizens' Bank, Louisville City National Bank, Second National Bank, Merchants' Bank, Falls City Tobacco Bank, Bank of America, German Security Bank. JEFFERSONVILLE, IND., September 29. The Ohio Falls Car Works has suspended operations in order to take a calm survey of the situation. James Howard & Co., boat builders, paid two thirds wages on Saturday, and will not suspend work. There was some little run on the banks Saturday, but checks were promptly cashed and no panic occurred.

2. October 4, 1873 Nashville Union and American Nashville, TN
Article from Nashville Union and American, October 4, 1873

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Article Text

LOUISVILLE, Oct. -The German Security Bank is not among those that suspended, as published in the dispatches to some distant papers. It has promptly paid every demand on it. CINCINNATI, Oct. 3.-The financial trouble is beginning to show itself in a desire on the part of a number of manufacturers to curtail their W orking force, or reduce the time of their employees. This is more due to the trouble of procuring currency than the affect they apprehend the stringency will have on the trade os the interior. A few manufacturers have already reduced their working force, and others will follow unless changes comes next week.