National Broadway Bank (New York, NY)

View Charter #687 on SPMC View balance sheet

Episode Information

Episode UID
68700885
Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
6870 national
Charter Number
687
Start Date
September 24, 1873
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
73f307e27ceb362e

Response Measures

None

Events (4)
1. January 9, 1865 Chartered
Source
historical_nic
2. September 24, 1873 Suspension
Cause
Macro News
Cause Details
Collective suspension by New York banks following the financial panic after Jay Cooke & Co.'s collapse and severe currency scarcity; clearing-house measures to limit cash payments.
Newspaper Excerpt
the Banks of New York suspended payment, closed their doors
Source
newspapers
3. November 1, 1873 Reopening
Newspaper Excerpt
It is quite confidently asserted, however, that the New York banks generally will resume full currency payments by the 1st November.
Source
newspapers
4. April 21, 1903 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (18)
1. September 22, 1873 Evening Star Washington, DC
Article from Evening Star, September 22, 1873

Click image to open full size in new tab

Article Text

THE SITUATION IN WASHINGTON. THE STORM ADOUT OVER. A Better and More Hopeful Feeling The excitement in this city, occasioned by the compension of Jay Cooks a Co., and other firms in New York, Philadelphia and elsewhere, is subsiding. A bobier Sealing is beginning to prevail, and the senseless run on a few of our banks is about over. There 18 a marked calm and quiet on 15th street, and that thoroughfare shows even less bustle and activity than it did previous to the financial troubles. Our people have evidently come to the conclusion to calmly await events, hoping for the best, yet prepared for the worst. The general interest now center in the news received from Wall street and from Philadelphia, which to-day is of a very favorable character. EX-COVERNOR COOKE eft for Philadelphia last night to confer with the officers of the parent house in that city The firm of Jay Cooke & Co., in this city, still keep their deers closed, although a large eler ical force is employed in adjusting the account of the firm. It is probable that the exact con dition of the house here will be presented in the statement which is expected to be issued by the Philadelphia house to-day. PRESIDENT GRANT arrived in this city on the early morning train. Between 9 and 10 o'clock 2. m. he called at the Treasury department and had an interview with Hometary Richards of upwards of three quarters or an hour duestion. The situation a that time remained inchanged, although the Scoretary had been advised that the banks of New York city had suspended currency pay ments and were issuing certified checks. This he thought was a wise measure on their part. He also received information that bonds were being offered for sale quite freely at the As sistant Treasury in New York city. WHERE THE MONEY TO BUY BONDS IS COMING FROM. There will be a sufficient amount of currency in New York to-morrow belonging to the government to buy all the bonds that may be offered. The Secretary of the Treasury has all that is necessary, and will look out that there is enough in the hande of the Assistant Treasurer to buy everything in the shape of government bonds that are presented for sale. Judge Richardson says he will look out that the government does its duty within the law and he knows exactly where to get all the funds that are necessary, but does not intimate a word about the much talked of legal tender reserve furnishing a part of the money to go to the Assis tant Treasurer at New York. THE U.S NAVY FUND IN LONDON. The Secretary of the Treasury emphatically denies the statement that the navy account fund of the United States has been transferred from the banking house of Jay Cooke, McCulloch & Co., in London. There is no intention of making such a transfer. THE FREEDMEN'S BANK. Unusual quiet prevails at this bank to-day The reporter of Tax STAR was in the institution upwards of half an hour and not five depositors called for settlement, although several made deposits. No further run is anticipated. Mr. Wilson, the cashier, who has been out of the city for several days returned this morning. He assured our reporter that they were in a firm healthy, financial condition, and prepared for any contingency. THE GERMAN AMERICAN SAVINGS BANK on 7th street was in its normal condition of quiet prosperity during the day. There were no signs of a run and the officers of the bank were engaged in transacting their business as usual. President Hits states that on Friday and Saturday last the deposits exceeded the disbursements, and that the bank has gained number of now depositors since the panic commenoed. Business deposits can be withdrawn try check at - time, but according to a rule of the bank, entablished, which nasalways been observed, other depositors are required to give fourteen days' notice before drawing. As a rule the Germans who constitute a majority of the depositors here, are less affected by such excitements than the Americans, and in this particular instance, the depositors, being guaranteed from loss by a provision in the law which makes the directors personally responsible, feel comparatively secure. The deposits here generally range from $100 upward. AT THE WASHINGTON CITY SAVINGS BANK this morning a line of perhaps 100 was formed by the applicants for their money before 9 o'clock, but by noon nearly all had been waited

2. September 22, 1873 Wilmington Daily Commercial Wilmington, DE
Article from Wilmington Daily Commercial, September 22, 1873

Click image to open full size in new tab

Article Text

BANKS SUSPENDED -At 3 o'clock, on Saturday, the Banks of New York suspended payment, closed their doors and advised their customers to invest their funds in those beautiful lots on 9th, 10th, Clayton and Dupont Streets., on next Saturday Sept, 27th, 1873, at Reynolds & Co's sale.

3. September 22, 1873 Wilmington Daily Commercial Wilmington, DE
Article from Wilmington Daily Commercial, September 22, 1873

Click image to open full size in new tab

Article Text

THE UNION TRUST co. IN THE HANDS OF A RE" CEIVER - THE BANKS ABLE TO MEET ALL DE" MANDS. NEW YORK, Sept. 22. The Union Trust Company has gone into the hands of a Receiver. The Stock Exchange remains closed. A meeting of the Governing Committee will be held tomorrow. All the banks are said to be fully able to meet the demands likely to be made to-day. ONE MILLION IN BONDS PURCHASED. New York, Sept 22, 11 A. M. The Sub Treasury has bought one million in bonds. Large crowds are waiting to sell. SETTLEMENTS AT THE CLEARING HOUSE-RUN COMMENCED ON ALL SAVINGS BANKS. All the banks have settled their accounts at the Clearing House, except two, and those are now settling through a loan committee. A run has commenced on all the Savings Banks. One has paid out half & million. Much excitement prevails. The Government has purchased two millions in bonds, and the Clearing house has issued two millions in loan certificates. THE BANKS ALL RIGHT AND " CLEARED." New YORK, Sep. 22. The Clearing House statement is issued, and shows that all the banks made their clearing, satisfactorily, including the two heretofore reported in doubt. THE GOLD EXCHANGE CLOSED-U 6. BONDS IN GREAT DEMAND-RUN OPENED ON THE BEAMANS SAVINGS BANK. The Gold Exchange has been closed, and 12 has been established as a basis of settlement for gold. U.S. Bonds of all descriptions are being purchased at the Sub-Treasury at the rate of 101/3 with accrued interest in coin. Payments are being made in currency. A run has commenced on the Seamens' Saying Bank. The excitement in Wall St. is much less than on Saturday. THE RUN ON THE BANKS CEASED. There is no run on any of the Banks and a feeling of great relief prevails. All is quiet in Brooklyn, also.

4. September 22, 1873 The Daily State Journal Richmond, Alexandria, VA
Article from The Daily State Journal, September 22, 1873

Click image to open full size in new tab

Article Text

[SUNDAY NIGHT'S DISPATCHES.] NEW YORK, September 21, 8:10 P. M.-President Grant and Secretary Richardson, have been in consultation with Vanderbilt and other leading capitalists, bankers and merchants since noon. No action reported yet. LATER-RESULT OF THE CONFERENCE, NEW YORK, September 21.-The following is the result of the conference at Avenue hotel, between the and others, as to of the remeans President the Fifth overcoming difficulties the best from the recent financial President positively sulting The declines disasters action to interfere in the matter, as any be of his in connection therewith would unconstitutional. committee of bankers and mercome down to to the government, chants proposition The had the to issue final $80,000,000 of the legal reserve. Reverdy Johnson is said to have given his opinion to the effect that to use the legal reserve is unconstitutional. Secretary Richardson opposes the placing at any considerable sum of the reserve To of the disposal of the New York banks. use his own words, quoted on the authority of one of the committee 'This, gentlemen, is not my funeral." VANDERBILT PAYS $2,000,000 INTO THE UNION TRUST COMPANY-GI ERAL CAUSE OF THE SUSPENSIONS CONDITION OF HEVARIOUSTRADES NEW YORK, September 21.-At a late hour last (Saturday) night, it was stated in one the clubs that Commodore Vanderbilt into the Union the day $2,000,000, the during had of paid Trust amount company due the by the Lake Shore road thus enabling Trust company to restime business Monday morning. The general cause of suspension on the of the banks and bankers yesterday part inability to convert securities into Even government not of except at be cash. was disposed the bonds immense officers could yester- loss. action of the bank difficulty is done away by depositing in the day, By Any the bank, this hands obtain with. of committee good securities, can amount of can an be in the clearing business the used equal certificates, which instead into of legal tenders. The certificates will go effect to-morrow (to-day). The dry goods men believe that Jay Cooke & Co. will pay the last cent of their liabilities. The tea trade is in a healthy cendition, nearly all of that branch of business being done through foreign bankers. The wholesale druggists fear nothing, in unless the stress continues. Sales other branches of trade run along in the same old channels. [TO-DAY'S DISPATCHES.] September 22.-It is offiannounced that Secretary continue to buy bonds at cially NEW will YORK, Richardson Richard- Saturson quotations. Secretary the last he did not see to do more than buy said day's power night bonds, he without had and offered, will be bought or " The government," the all delay 5-20s red tape." secretary says, trust company or loan is doubtful if congress and "is not it a would institution, power." sancsuch construction of my alludes to the using of 000 of the tion [The any above reserves.] $40,000, Thirty savings banks have resolved to rigidlv enforce the previous notice clause. The Union trust company is in the hands of The a receiver. New York stock exchange remains closed to-day. The manager of the clearing house says check passed through clearing will no every paid. He says the banks are in danger, be and that they were never stronger. is The suspension of Marvin & Brothers announced. All banks have pulled through except loan the two settling through the two committee. All the savings banks are having a run on them. The clearing house loan committee have issued $2,500,000 certified checks. The government has bought a million to in bonds. Large crowds are waiting sell. Montreal and Europe are buying stocks at the shrinkage. The gold exchange is closed, 112 has been established as the basis of settlement. The rate of interest is fixed at 7 for carry70-100. ing. The sub-treasury is buying 5-20s at Arun on the Seaman's bank has commenced. They pay all sums of $100 law's and under. Larger sums must wait the delay* WASHINGTON, September 22.-In President the of the morning, the called at the treasury department course Richardson. and had conference with Secretary a of it may be the fact The result that subsequently inferred secretary Associated from stated the of the New York to the President will do bethe law, but in no go within Press the that agent particular will anything main+ clear legal authority. He tain yond the safety of the treasury department, States protect the credit of the United financial and from the influences of the present London house. embarrassment. Jay Cooke reassures the solvency of the PHILADELPHIA, September 22. The the savings uks has subsided. run on September 22. The savings of the banks CHICAGO, give notice of the enforcement sixty days' notice.

5. September 22, 1873 Wilmington Daily Gazette Wilmington, DE
Article from Wilmington Daily Gazette, September 22, 1873

Click image to open full size in new tab

Article Text

BANKS SUSPENDED.-At 1 2 o'clock on Saturday, the Banks of New York suspended payment, closed their doors, and advised their customers to invest their funds in those beautiful lots on 9th, 10th, Clayton and du Pont streets, on next Saturday, f Sept. 27th, 1873, at Reynolds & Co.'s sale. I

6. September 24, 1873 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, September 24, 1873

Click image to open full size in new tab

Article Text

NEW YORK, Sept. 24.-Gold opened firm at 112g, but after frequent fluctuatiens fell to 111g. The rate paid for carrying was 7 per cent, to flat for borrowing. Foreign Exchange is demoralized and quotations are almost nominal. NEWYORK, Sept.24--At the meeting of Bank Presidents to-day it was resolved, in addition to the issuing of $10,000,000 of loan certificates and the suspension of currency payments in large amounts to stand by each other with all assets, and any member faiiing to do SO will be expelled. Each member was appointed a committee to ascertain where ten million government bonds or any part thereof can be purchased on account of each bank and sold to the Treasury, any loss accruing thereby to be sustained by the banks according to their deposits in the clearing house. The committee request the President and Secretary of the Treasury to anticipate the payment of bonds due January 1874. FROM PHILADELPHIA. PHILADELPHIA, Sept. 24.-No failures are reported at Allentown, Bethelem, Harrisburg, Pa.. and Trenton, New Jersey. WILKESBARRE PA., Sept. 24.-Brown & Gray, Bankers, have suspended giving the failure of Clews & Co. as the cause, but stating that they will resume in a few days. The mining clases are large depositors with this firm and much excitement exists. They were considered good and reliable men.

7. September 25, 1873 New-York Tribune New York, NY
Article from New-York Tribune, September 25, 1873

Click image to open full size in new tab

Article Text

a relief. Yet it served to excite and depress the less observing and logical. The sales on the street, which began immediately on the announcement that the Stock Exchange would not open during the day, were at fair rates compared with those that ruled at the close on Saturday last, so that altogether there appeared reasons to be encouraged rather than depressed by these sales. The next event to influence the street was the announcement of the resolutions passed by the Clearing-house Committee. The first resolution issuing an additional $10,000,000 of loan certificates had been anticipated, and the effect had been "discounted." The proposition to obtain $10,000,000 Government bonds to be sold to the Treasury by banks was also accepted as an indication that the Clearing-house banks understood the needs of the hour. But the last proposition, resolving that the banks should not cash heavy checks for currency, but should certify such checks as good only when passed through the Clearing-house, was at once translated to be a practical suspension of all the banks. The discussions which followed, however, convinced many that the resolution was a wise precaution. It prevents panic stricken depositors from drawing out their money and hoarding it, thus taking greenbacks out of the street and from business. It was stated and understood that the banks will liberally provide for all legitimate business and manufacturing firms who need money to pay employés and to continue their exports and imports. The action soon came to be looked upon as beneficial as the suspension of business on the Stock Exchange, since it helps to allay excitement and prevent individual transactions, which can benefit no one. By the time of the official close of business confidence had largely returned, and the depression was not so marked. There was less croaking heard of probable disasters on the morrow than has marked the close of other days of the panic. At night, too, at the Fifth Avenue and other hotels, the excitement was much abated; and the night closed with a better feeling and far less agitation than any for a week past.

8. September 25, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, September 25, 1873

Click image to open full size in new tab

Article Text

MONEY AND COMMERCE. MONETARY. WEDNESDAY EVENING, Sept. 24. The tolographic report of the suspension of the Baltimore banks, and the implied suspons ion of the Now York banks, la liable to bo misunce stood, and the gravity of the situation greatly exaggerated. The New York banks have not entir ly suspended payments, noither have those in Baltimore. In both citios, the banks have simply made n formal announcement of what Ins boon the caso for the last two or three days, viz: that currency is BO scarce that it is impos= sible to got it by the ordinary means of calling in loans. Therefore the banks in thoso citics simply say they cannot pay largo checks in curroncy for a few days, until the currency oxcitoment blows over, which it most unquestionably will. It should, howover, be distinctly undorstood that the banks in thoso cition do nct close their doors; on the contrary, they will oven pay all small checks in currency. It is, of oourso, understood that tho positivo refusal to pay a check for any sum drawn against funds cn doposit to the crodit of the drawer is an act of bankruptcy. But it is not probable that the banks in thoso citios would absolutely and PCEsitively refuse to pay even a check for A largo amount in currency, if the holder of the chock WAS dotormined to prolost it if not paid. With any depositor who was deaf to reason there would be no courso but to pay. It is well known that to pay all deposilors in currency would be utterly impossible, and if they were all HO unreasonable as to dcmaud payment in currency there would be DO sourse but for the banks to suspond entirely,that is, refuse the payment of all checks, This, of course, would be an unfortunate altornative, and the worst possiblo way for doporitors to get their monoy. But the depositors of the banks hold the issuo of this question iu their own hands. It rests entirely with them whether the Now York banks shall go on or not. The case between the Chicago banks and their dopositora is procisoly the same AB in New York, only that the Chicago banks are in a Bounder condition than thoso in Now York. It is the firm conviction of every one who has any intimato knowledge of the Chicago banks that there is nono of the Nationals that would not, if wound up, pay, not only overy dollar of deposits, but the full par valuo of the stock. The doniand for currency arises from the sudden desiro of overy man to convert not only his bank balance, but other marketable property into currency. Each man knowing that it will be impossible for all to this, ondenvors to bo ahead of his neighbors, and get currency out of his bank to the dieadvantage of other depositors. This is just what the savings banks prevent by the requirement of the thirty or sixty days' notico. The commercial banks, however, would have no recourse in such cases but suspension. It would be difficult to say positively whether the aggregato amount of currency in this city is inincreasing largely or not. Wo are clined to think it 18. Thore were undoubtedly somo liberal amounts received from New York. We also hear of a number of instances of currency being sent in from the country to buy wheat at the present ridiculously low prices. In theso cases, however, it is not sent to bauks but to merchauts, and by them paid to other merchants. Many persons, without thinking, are ready to censure the banks for having large balances in New York, and others equally thoughtless are ready to consuro tho New York banks for not remitting currency here more freely. It must be remembered that when the panic broke out the movement of Western products to the East was the largest ever known. All this made exchange on Now York, which it was the ,legitimate business of the banks to buy, and which it was necessary they should buy in order to keep the produce in motion. The banks here had ordered currency from Now York against this oxchange just as fast as they could get it, but it is well known that currency had been extromely scarce for several weeks before the panic and it was impossible for the New York banks to And currency for all the exchange from the West sovoral weeks ago. Thus, the very magnitude of the crops, and the abundance of our real wealth, was the cause of a great relative scarcity of currency before the panic. There is, of course, DO stated price for the loan of money in this market now, but the difference in the prices of whoat yesterday and and to-day for uoller the month soller October," showed that practically the prico of money to carry wheat into October is at the rate of about 20 per cont per month, or tico hundred and forty per cent per annum. Everything was quiet at the banks here today. The clearings were made without any trouble. The amount of checks sent in was smaller than for Home time past-in favorable feature, indicating a quietor condition. The balances also were lighter than usual, and were promptly paid in currency.

9. September 27, 1873 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, September 27, 1873

Click image to open full size in new tab

Article Text

Action of Banks Approved. CHICAGO, Sept. 26.-Despatch-s from the best informed sources received at the office of associated press in this city, from most of the principal cities in Illinois and Iowa, in reference to the present financial troubles in the east, concur in saying that the action of the Chicago banks in following the course of the New York banks in suspending payments of large sums of currency is almost universally sustained and commented by bankers and business men, as wise and timely, and calculated to arrest the panic and find tbe way to relief them from the present difficulties.

10. September 28, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, September 28, 1873

Click image to open full size in new tab

Article Text

BOSTON. Special Dispatch to The Chicago Tribune. BOSTON, Sept. 27.-At a meeting of the officere of the Boston banks this morning, the resolution was taken to follow the course of the New York banks and suspond currency payments. There was but little discussion. It was evident that when 80 many were suspending, to hold out longer would only subject them to an embarrassing and dangerous drain. The step was solely a measure of self-protection forced upon them by the action elsewhere. Checks for small amounts for the current uses of business will be paid as usual. THE SITUATION HERE differs from that in New York in one particular. There they have pooled their resources : here they have not. The resolution adopted at the meeting was as follows: WHEREAR, The banks in all the large cities in the United States have deemed it prudent and expedient to suspend currency payments for largo amounts; therefore, Révolved, That the Boaton banks, as a precautionary measure for themselves and the mercantilo community, and to prevent the consequent drain of the currency from them, do from this date and until further action adopt the same measure, Resolved, That a Committee of Five be appointed by the Chuir, who shall have the power to issue loan-certiticates to the aniount of $10,000,000, upon substantially the same basis as issued by the banks of Now York City. Until yesterday it was confidently hoped that we should ride over the panic without resort to such measures, but the increasing drain of ourrency to New York necessitated action, and the resolutions were adopted unanimously. The interference with business brings the difficulties of the situation more immediately home to large classes than like proceedings elsewhere, but, on the whole, there is as firm faith that we can hold ou and withstand a general crash 88 ever. The first suspension reported since the panic began is that of the New Eugland Iron Company at Hyde Park, a Boston suburb. It is said that the suspension was caused through disagreement of the Directors, which resulted in an attachment, and some notes were protested, though it is understood that the Company has been carrying heavy mortgages, and has lost through the stringency of the money market and the low price of iron. Several large contracts are on hand, some of which are well under way. Three hundred men are thrown out of employment. The selling agent in this city thinks that work will be resumed soon.

11. October 3, 1873 The Daily Phoenix Columbia, SC
Article from The Daily Phoenix, October 3, 1873

Click image to open full size in new tab

Article Text

Telegraphiq APPLA CARLIST DISSENSIONS DEMORATIZATION OF INSURGENTS-MONRY OF October 1.-Diseensions in MADRID, ranks of the Corlists are increasing. and the leaders Derregarray, Roda and Lizzaraga The have left their commands arrived at Bayonne. Edward October 2-Sir LONDON, the celebrated painter, isdead. from Landleer, October 2. Dasortere and inMADRID, report emoralization the insubordination. Cartagena A majority of but are desire to surrender, more surgents overawed by liberated coavjole and desperate BERLIN, volunteers. October 2.4"Trade A (panic specila on tion is almost suspended the The bourse King is of apprehended Saxony is dangerously sick. LONDON, October Robert Bigby, the English October writer, 2. is dead. Despatches from MADRID, sections of the country represent The all much better feeling prevails. in the re-establishment that of discipline in the served to restore confidence all insurrections. ability army of the Government to suppress relegraphic-American Matters. CONVIOTED-DEZAULTING_CA CASH KU ER-COTTON KLUX DAMAGED IN TEXAS-JUS STATES "RAID" OF UNITED SOLDIERS TIFIABLE IN MEXICO-VELLOW FEVER DEATHS-AID TO SUFFERERS-SIOK AND PUOLLIST-RESUMPTION OF BANKS BROKERS-THE MODOO SUSPENSION- DEMO PLATFORM OF THE NEW YORK CRACY, &0., &0 BROWNSVILLE, TEXAS, October 1.heavy rains have damaged entire Continued cotton crop throughout the have the Rio Grande Valley. Worms lower appeared on a number of plantations The in vicinity, doing much damage. inches this are covered with several the lowlands of water, stopping the work of gathering crop. charge of the Vose Publico, that The United States soldiers When had again the armed invaded Mexico, is untrue. the steamboat Little Fleta stranded on Army Mexican bank of the Rio Grande, with Paymaster Nichols was a passenger, who of United States soldiers, a guard in saving the cargo and guarded landing it assisted and the paymaster's safe after it from the wreck N.O. October 1. The Courts first RALEIGH, Klux trial before, the State Johnson Ku off before Judge Watts, at and came Superior Court, this week, resulted County in the conviction of the parties white, the murder of two men-one of other colored. They went disguised whipped the the colored man's house and to to death on the 6th of September and senhim were convicted o-day. of No tenced They to be hanged on the 13th vember. 3,000 articles have been entered Over exhibition in the coming State instant Fair, for commences on the 13th of the which D. W, Voorhees, the orator the 15th. Hon. will reach here on society, The citizens are making preparations large the ccommodation of the crowd for of visitors that is expected. October Millard FillBUFFALO, the International Exposimore Redmond, of New opened D. Orleans, large. followed tion. The audience is very Ste ST. Louis, Odtobernia Cashier In of the St. Lbula Mutual Life with Company, is from the safe. His surance $6,500 ven#, missing, accounts do not ap- bepear correct, and his friends lieve he embezzled the funds. Nashyille, on Wednesday the In day of the Blood Horse ASHOCIA- heats, second the first race, two mile tion won races, by Arizona, beating Lampie, 3,4634 Carrington was and Duster-time heats, The second race. mile Sur3.441/4. won by Quartermaster, bearing and Lady vey, was Fiprence, Emer Florence Greenfield. YORK October,1--Mid-night- banks NEW visitits the different savings fears on A city, to dayshaw that all vauished, this of depositors haye their the part large numbers who drew out it. and last week have returned money are about $13,000,000 in green- all in the vaults, which, signs of any run are There backs passed, will when be distributed through other channels. NEW YORK, October -The Danforth half Locomotive Works is working on in They have plenty of cashed. money time. but can't get a check bank, John C. Heonan is fatally sick, with hemorrbage of the langs. 386 delegates to the Evangelical morrow, Convention, which assembles to have arrived. Grinnell & Co., brokers and bankers, Paton G. B. & have Co., suspended. one of the oldest dry

12. October 4, 1873 National Republican Washington, DC
Article from National Republican, October 4, 1873

Click image to open full size in new tab

Article Text

# SHALL THE BANK SUSPENSION CONTINUE It is very much to be feared that the banks will over-do the "financial business" in main-taining themselves in a state of slege against the demands of the business necessities of the country, and by a protracted suspension of business excite a feeling of uneasiness and alarm in the public mind. It may have been necessary immediately following the financial crash of September 26 and 27, and the con-sequent panic produced in the popular mind, to adopt such measures as were calculated to prevent a positive breaking up and ruin of legitimate commercial business; but the feel-ing is now rapidly gaining ground that no real necessity exists for the banks maintain-ing closed doors against the payment of the demands of those who have entrusted money deposits to their keeping. So long as the necessity for this embargo was patent the public acquiesced in it; but it is becoming a matter of doubt whether the time has not ar-rived when the banks should manifest a dis-position to return to the normal condition of affairs. In a case of this kind a mere doubt in the public mind becomes a positive and threaten-ing danger, a danger as pregnant with dire-ful results to the banks as to the industrial and commercial interests of the country. There is certainly nothing in the present situ-ation to warrant the banks in maintaining an almost absolute suspension of payment; and the fact that some of these monetary institu-tions, by a little business enterprise, have continued to pay all demands of their patrons furnishes some justification for this view. We believe there should be at least some re-laxation of the established embargo, if not a full resumption of payments; and it is to be hoped the banks will act in such a manner as not to permit the impression to get abroad that they are taking advantage of a mag-nanimous public indulgence to speculate upon the people. Every day this suspension is maintained adds to the danger of the situation. Mechan-ical and manufacturing establishments are being forced to stop operations and discharge their workmen because of the maintenance of the bank suspension, and the mechanics thus deprived of their sources of daily supply when applying to the banks and savings in-stitutions for their savings against an emer-gency of this character are turned away empty handed. Herein lies the great danger of the situation now. It will not do to per-mit this state of affairs to continue. If the banks fail to meet the emergency the emer-gency may overwhelm the banks in the com-mon disaster that is threatened. In connec-tion with this matter the following paragraph, from the St. Louis Democrat, is pertinent and timely: "Resumption is the sure refuge of the banks; it will save them from the disasters of the whole-sale depreciation of securities and products which a protracted suspension would almost cer-tainly precipitate; it will save the dry goods and grocery merchants from the reflex surge of the derangement, which, if not arrested, may over-whelm them; it will save the banks from the cold, settled distrust which will certainly creep into the public mind if the suspension continues; it will rescue trade from its present idleness, and it will save the country from the serious peril of a shinplasterinundation. We say nothing here about the bankruptcy act further than this: that any Congressional relief for violations of it will necessarily be impartial. If it extends to the banks, it will have to extend to the debtors of the banks also, and thus in the end it might do more harm to a solvent bank than good. The New York banks suspended on Thursday, the 24th inst., and their fourteen days' limit under the act will terminate on the 8th of October. In all seriousness, we do not believe it will be safe for them to delay their resumption beyond that day. It would be better if they begin it before, for there is no conjecturing what feeling the present suspense of the public mind may result in."

13. October 9, 1873 Eaton Weekly Democrat Eaton, OH
Article from Eaton Weekly Democrat, October 9, 1873

Click image to open full size in new tab

Article Text

, OHIO, THURSDAY, OCTOBER 9, 1873. Cincinnati had followed the example of New r THE FINANCIAL CRASH. York. They at once yielded to the presSS sure. There is no apparent excitement on the to streets. The Situation in New York and the e, CHICAGO, Sept. 27.-Yesterday the financial is East. tidal wave caused the first real damage in this 1city. At 10 o.clock a. m. it was announced NEW YORK, Sept. 25.-The feeling in Wall from the Clearing-House that, an account of street was much quieter to-day. No more the extraordinary situation, no deposits would failures have been reported, and it is believed g, for the present be received and no checks confidence will soon be restored. There was n would be paid by the following banks Union less excitement on the street than for any day 7. National Bank, Cook County National Bank, for a week. The crowds which have assemk Second National Bank, Manufacturers' Nabled in Wall and Broad streets for some days tional Bank, National Bank of Commerce. y past were not visible. A feeling prevailed that These banks all claim that their suspension is a general suspension of the banks would be only temporary, that they have ample assets necessary. and a rumor was current that the to meet all demands, and that they will reSecretary of the Treasury had advised that d sume business so soon as they can convert course. This rumor, however, was authoritae those assets into curreney. There is a strong tively contradicted, the Secretary declining to d belief that the crisis of the panic has been advise the banks in any way. It transpired reached and passed, and that there will be no k that the Sub-Treasury in New York had dismore suspensions. bursed $25,000,000 in greenbacks in the purThe mercantile classes do not seem to have chase of bonds, and that a portion of this had d been thus far affected. and have been able to come out of the so-called reserve of $44,000,meet all their obligations as they matured. y 000. At this point the purchase of bonds was Deposits are still made in all the banks. That e, stopped. there has been a withdrawal of currency for The action of Secretary Richardson in stopa the purpose of hoarding it in private safes is ping the purchase of bonds, and in refusing to y obvious; but if the banks continue to meet anticipate the 5 per cent. bonds of 1874, due the requirements of their customers a few Jan. 1. was eagerly discussed, and, so far as 1, days longer, most of this hoarded currency could be ascertained, met with but moderate n will come forth. The receipts of currency approval. The Stock Exchange still remains here by express are large. The country must closed. The views of those prominent in the n have the breadstuffs and the provisions which dry goods trade are encouraging in the greatS are packed in our warehouses and stock-yards, est degree. Business is abont as good this n and to get them the money must be sent here. month as it was during the same period last A dispatch from Leavenworth, Kan., ang year, and shows hardly any more of a falling nounces the temporary suspension of the folo off than would properly accompany the end of lowing banks: Frst National, Second National, the season. The produce market remains in a Leavenworth Savings, Clark & Co., Newman & nominal state. Large amounts of grain have Havens. Good feeling prevails among merarrived here which were intended for shipg chants, all seeming to appreciate the situation. ment, and now remains in the warehouses in e consequence of the inability to negotiate CHICAGO, Sept. 29.-The two most important foreign exchange. developments of Saturday were the suspension of the Third National Bank, and the anNEW YORK, Sept. 26.-The general feeling in 1nouncement that the Cook County National, financial circles has decidedly improved. The which closed on Thursday, would resume on t day's record closes with some confidence in the Monday (to-day). The suspension of the belief that the bottom of the panic has been Il Third National, though not unlooked for in reached in this city, and thereis a fair prospect banking circles-the run on it having been that, when the Stock Exchange opens, there of heavy-created a feeling of depression in the will be little room left to arrange in the way of le community. The bank was the second largest settlements between brokers, so that there will be no new failures to announce. in the city, its deposits amounting to about $4,000,000. It is said the institution will soon The Loan Committee of the Clearing-House 11 resume, as its securities are all right. and can has issued about $1,500,000 in loan certificates be made available with little delay. to-day, making the entire amount issued about W All the banks, with the exception of those $18,000,000. that had suspended, passed the Clearings Mercantile paper falling due at the banks is House with flying colors. This fact, added to e being paid with remarkable promptness. the cheerful news received from abroad, There was an extraordinary excitement in served to re-establish confidence, and renew the gold markets to-day, which at one time and strengthen the spirit of moderation that threatened remarkable results. The price has been generally manifested since the panic moved up to 1141, against 1111 at the opening. began; and it came to be the accepted theory A private telegram from London says that the suspension of the Third National $4,500,000 has just been drawn from the Bank ff marked the turning-point of the crisis, that of England and shipped to New York. the storm had spent its fury, and the sunlight The total liabilities of the Union Trust Comwas about to break through the dark clouds. pany are $6,273,518; assets, $7,491,276. The An immense volume of currency is flowing institution will probably resume in a short time. into the city. Over $4,000,000 has been received by express in the past forty-eight NEW YORK, Sept.29.-Wal street is as quiet as h hours. usual, and matters are beginning to assume S The total assets of the Union National their normal condition. The crisis is over, (familiarly known as Coolbaugh's Bank, and although the scarcity of currency is seriously the largest in the city), which suspended last felt, and will be for some time to come. a week, are given at $5,600,000; liabilities, $4,The feasibility of resuming specie payment 300,000. n is exciting attention among our leading finanThere is little or nothing doing at the stockciers and business men, and especially those yards. There is over a million dollars' bankers who issue bills of foreign exchange. worth of stock in the yards, and the pens are a An argument heretofore set forth, that to reso full that no more stock can be received for sume specie payment would depreciate values, the present. can hardly be advanced, now that stocks and CINCINNATI, Sept. 29.--The financial situation securities are flat. here to-day appears to be improved. At the e The suspended firms are rapidly reorganizclose of business an improved feeling was ing, and promise a resumption of business plainly manifest. before the end of the week. Howes & Macy ST. LOUIS, Sept. 29.-Quietnessreigne among & have practically resumed already. Clews the banks here. All are paying checks under Co. and Fisk & Hatch will resume within a the rule, and everybody seems cheerfully to few days. acquiesce in the arrangement. The feeling on The following table shows the prices curChange was better, and prices for some arttrent for leading stocks on Wednesday, Sept. cles are stiffened materially. d 17, the day before Jay Cooke & Co. failed, and CHICAGO, Sept. .-About $4,000,000 in curthose current on the street to-day rency has been received in this city within the Sept. 17. Sept. 29. 1 last 48 hours, making about $11,000,000 for New York Central 86 10014 the last five days. Three of the suspended 91 Lake Shore 62 r banks have resumed. The Union National Northwestern 571/2 371/2 83 Rock Island 1031/2 (Coolbaugh's) has gone into voluntary liquiPacific Mail 29 431/4 dation. Produce markets active. Wheat and 27 St. Paul 451/4 corn are advancing. The storm is practically 89 Western Union 55 over, everything is serene, and people wonder Wabash 41 591/3 g why they allowed themselves to become so ex19 Union Pacific 24 1/8 a cited, 37 1/8 Ohio and Mississippi 241/2 OTHER POINTS S BOSTON, Sept. 29.-The bank presidents of Detroit, Cleveland, Toledo, Milwaukee, Duthis city have decided to make only emall curbuque, Keokuk, DesMoines, and in fact nearly t rency payments, and to issue $10,000,000 of every Western city and town heard from, reloan certificates. port an improved feeling in financial circles.

14. October 16, 1873 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, October 16, 1873

Click image to open full size in new tab

Article Text

# GENERAL NEWS. Frederick Chase Hutchinson, one of the family of singers, is dead. Pere Hyacinthe has been elected one of the three cures in Geneva by the Old Catholics. It is expected that the New York banks will resume currency payments next week. Newton has decided to cast off its swaddling clothes and become a city, the 17th in Massachusetts. The King of Italy has presented to the Empress of Austria a costly set of jewelry made in Rome. Christian Unity was practically illustrated in New York last Sunday. An Episcopal Bishop administered the Sacrament in a Presbyterian Church. T. Parkin Scott, Judge of the Supreme Bench of Maryland, died at Baltimore Monday morning, aged 70. The Chicago Post says that "if a son of Henry H. Wise is making speeches against his father, he must find himself compelled to change his politics several times a day." Many delegates to the Evangelical Alliance visited Philadelphia Monday and were entertained with a public reception and a banquet at the Continental Hotel, by the Philadelphia branch of the Alliance. The Cincinnati banks resumed payment of currency Monday. There were no runs and no excitement, and business men are very cheerful over the result. Most of the banks received more on deposits than they paid out. The republicans of the French Assembly paid M. Thiers a congratulatory visit Monday. The meetings of the several factions for the designation of members of the general committee of management will be held at various times next week. They have a calf out in Oregon who sports a nice little pair of wings. These ornamental appendages are about the size of turkey wings and crop out just behind the shoulders. Thomas A. Ridgely, formerly Medical Director on General Grant's Staff, was on Monday sentenced to three years' imprisonment in State Prison for breaking into a dwelling house in the daytime and stealing books, which he sold for liquor. "You ought to let me pass here free of charge, considering the benevolent nature of my profession," said a physician to a toll-gate keeper. "Not so," was the reply, "you send too many dead heads through here now." The doctor did not stop to argue the point, but paid his toll and passed on. In the naval battle off Cartagena thirteen men were killed and forty-seven wounded on the rebel fleet. Senor Mayer, a member of the Junta, was killed on board the Numancia. The Richmond Enquirer is attempting, at this late day, to fire the Virginia heart by printing, day after day, in capitals, such par-

15. October 17, 1873 The Cairo Bulletin Cairo, IL
Article from The Cairo Bulletin, October 17, 1873

Click image to open full size in new tab

Article Text

TELEGRAPHIC. Reported Expressly for the Bulletin. FROM NEW YORK. WOMAN'S CONGRESS, NEW YORK, October 16.—The first congress of the association to promote the moral, intellectual and physical well-being of women was begun yesterday at League hall, and was numerously attended, Letters were read from Emily Faithfu and others, last evening. Mrs. Mary Ol-ivemore was chosen president, and among the secretaries were Mrs. M. Loomis, Thos. Piumer, P. M. Sherwood, Rev. Elva T. Wilkes, Colorado; Mr. E. S. Tupper, Iowa; Mrs. F. Emlard, 1lle.; Mr. L. Woods, Mrs. Frances Miner, Missouri. The executive committee includes Mrs. Augusta Chapin, Iowa; and Professor Maria Mitchell, of Vasser college. STOKES' TRIAL. In the Stokes trial to-day, Thomas Hart, doorman at the ladies' entrance of the Grand Central hotel, and the principal witness against the prisoner, admitted on cross-examination that after the last trial, being sick and out of employment he called on Chapin & Co., Fisk's brokers, and from them he went to Mr. Coner, Fisk's former managing agent and was by him sent to the private secretary of Mrs. Fisk, from whom he received fifty dollars. The rest of the witness' evidence was as on former trials. Judge Friedman and jury, in the supe-rior court to-day, tried the suit of Charlotta Gilbert against the New York and Charleston Steamship company, claiming $10,000 damages for being excluded from the state-room of the steamer Manhattan in 1870. The plaintiff obtained a verdict in her fayor for $75. Phillip, Spier & Co., Scott, Strong & Co., and Alcott & Co., had their stock sold out under rule for thew ccount of Grinnel & Co., as follows: 3,000 shares in the Union Pacific at 18@19, 3,700 Lake Shore at 66@67; 300 New York Central at 83½; 100 Pacific Mail. STOKE'S TRIAL. Phillip Farley, hotel porter, contradict-ed the testimony of Thos. Hart, as to Stokes saying he knew nothing of the shooting. Farley was the man who seized Stokes, and he heard everything said. Witness also stated that he searched for the pistol in room number 207 about half-past four and found none. MONEY. Money closed at 1 1-16@1 3-16, but just before this when the bank accounts were made up, offers went down rapidly on small amourtesaamarcantverki that it was regarded by some as having connection with current speculation in stock exchange, as prices were bid up rapidly. At the very close of the market, greenbacks were less active at ½@¾. At the final close quotations were ½@¾. The premmum demand for foreign exchange for 6 months at 5½ to 6 for long and 6½ to 7 for short. Commercial bilis in good supply and dull at 4½@5. Custom house receipts $171,000. Gold heavey and lower, declining from ½ to 7/8, which price has not been before reached since June, 1865. When the closing rate was 8c. The assistant treasurer disbursed $76,000. Government's firm early in the day but closed lower in sympathy with gold. The quietest decline was in 67 and 68's. Railroad and miscellaneous speculations irregular, but prices in main higher. Adding, the 'Express' says: "The question of the banks resuming greenback payments now being actively discussed in financial circles, especially as it has an important bearing upon the general situation, while the New York banks are in a state of suspension the people in the interior have a good excuse for not paying the debts to the Atlantic cities, and consequently collections are much lower than they would otherwise be. In different parts of the country the national banks are gradually resuming currency payment, and these banks could make still greater headway if the banks of New York, and Philadelphia, should resume. The Philadelphia banks have about $300,000 of their reserve in this city, and they cannot remit until our own banks do. It does not follow that this money would be withdrawn from New York in case of resumption, but, on the contrary, it would probably remain, as the Philadelphia banks would not draw it as soon as it became apparent that they could get it. Resumption by New York banks is an important step in the restoration of confidence, and this can only be accomplished by giving up the present system of pooling greenbacks, which has always been an injustice to strong banks, able to take care of themselves. These banks have carried safely through the recent panic about a dozen weak banks, and its but right that they should deserve resumption. These weak banks would no doubt be called upon to liquidate largely in consequence of the withdrawal of deposits and cancellation of accounts, and possibly some might have to to be wound up, but our banking business would be placed, on a strange basis, and moral effect and resumption would be felt here though not in the country. The deposits of our city banks now range from a hundred and forty-four to a hundred and fifty million dollars, and greenbacks on hand are from fifty-five to six million dollars. By this it will be seen that the per cent, of greenbacks on deposit is only apout four per cent, and adding the city bank circulation of twenty-eight million dollars, the per cent of greenbuck

16. October 23, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, October 23, 1873

Click image to open full size in new tab

Article Text

MONEY AND COMMERCE. MONETARY. WEDNESDAY EVENING, Oct. 22. Money matters are very quiet in this market, and we find no considerable change to note in the aspect of affairs since the beginning of the week. New York exchange continues scarce, and sold between banks to-day at 500 per $1,000 premium. Shippers' bills drawn against grain in transit are taken at ¼ and also at ¾ of 1 per cent discount. The amount of this class of bills is, however, very small, compared to what it would be under ordinary circumstances at this season of the year. One obstacle to the free movement of grain is, that shippers of cargoes cannot get the usual advances from their New York consignees, because the latter cannot get the usual accommodations at the New York banks. The movement of Western crops to market is therefore being done mainly on Western capital. The scarcity of money in the Eastern markets also has its effect upon the prices of products, as well as of the foreign exchange made against the shipment of the products to Europe. There is a very moderate but steady flow of currency from this city to New York, but the stock of currency in the banks here is very large, and some of it can very well be spared. The main cause of the great accumulation of currency here is that the banks of this city are still acting on the policy of keeping their whole reserve here in greenbacks, instead of keeping half of it in New York exchange, -as the Nationals are permitted to do by law, and as has heretofore been their custom. The recent panic gave the Western banks such a scare that, even after New York banks resume currency payments, it will be a long time, perhaps a year or two, before the New York balances of Western banks will increase to anything like the proportions they had attained just before the panic. The accumulations of money caused by the increase of banking facilities, are, however, bound to accumulate somewhere at certain seasons of the year. No amount of currency-tinkering to make the volume of currency "elastic," will prevent this accumulation of bank credits, even if the much-denounced system of paying interest on deposits were entirely discontinued. These accumulations once made, there is no question that inducements of one kind or another will be offered to draw this temporarily unused money out into the prosecution of enterprises and speculations that could not command the money under any other condition of the money market. In the foregoing connection, we print the following ably-written communication from a banker at Eau Clairo, Wis., in DEFENSE OF INTEREST ON DEPOSITS: To the Editor of The Chicago Tribune: DEAR SIR: By common agreement the "system of paying interest on deposits subject to call," seems to have been chosen as the goat over which to confess all the iniquities of the children of Mammon, and, putting their transgressions in all their sins upon his head, they are going to send him away by the hand of a fit man into the wilderness. The fit man in this case may prove to be President Grant, who proposes to recommend a law absolutely prohibiting the practice, which he, as well as all those whose views on the subject find expression in print, calls by very hard names. It must be agreeable to those who have been tinkering at our finances in a legislative and administrative way, to be assured that the real cause of all the recent trouble is a natural outgrowth of competition in the banking business, and nothing for which they are in any way responsible. They will thereby be cheered and encouraged to proceed. It is encouraging, also, for those who may have taken desponding views of human nature to observe the zeal and the high moral tone with which metropolitan bankers are advocating a return to sound and legitimate banking principles, especially in this direction. There is something quite touching in the circulars with which they favor country bankers now-a-days, -the old matter-of-fact inducement style of that literature having given place to something very like gush. So also their opinions, given as the results of interviewing, and reflected in financial columns. No doubt the enthusiasm of good resolve, which always comes to men in times of adversity, has much to do with this feeling-but the idea will suggest itself whether the leaven of selfishness is not in some degree responsible for this particular uprising of the spirit of reform? However, manner and motives are beside the question which I beg permission to put, which is: Will so radical a reform as is proposed in the matter of paying interest on deposits be productive of good? Will it result in making the banks keep a larger reserve, and so become safer depositories, -better able to withstand the shock of panics, -while at the same time affording legitimate accommodations to the business community? In short, will it make them fitter to fulfill all the functions which pertain to banks? This is, in effect, asking-and perhaps this is a more pertinent way of putting the question-will it endow bank-managers with a greater degree of sagacity, judgment, and honesty? Will it make them brave without recklessness; prudent without timidity; firm without obstinacy; amenable to counsel, yet not vacillating? All this, and more, will it do if we are to take literally the somewhat extravagant talk on the subject; yet, when thus put, no one would probably answer the question affirmatively. We must reduce it, then, still further, and ask: Will the contemplated reform remove any of the allurements that lead men away from the paths of correct banking? Will it free the business from any of the dangerous vicissitudes we are so familiar with? Has the much-abused practice no element which dissuades from undue expansion in some directions as much as, if not more than, it encourages it in others? It is the object of this article to assert-no matter how indifferently the assertion be maintained-that these are at least open questions. It is indeed much too extended a subject to be satisfactorily discussed within the limits of your space, or the time and patience of the reader of a daily paper. The best argument to be urged against loose talk on any subject is the logic of facts. Statistics have come to be regarded with a good deal of respect, but, unfortunately, not very much statistical information bearing on this subject has thus far been collected, and, such as there may be, is not accessible to the writer. It is a matter of general knowledge, however, which of the leading banks of the country have the largest number of country correspondents, and, therefore, pay interest most largely, and if the practice is necessarily fraught with so much danger, it is evident that we shall see these banks betraying the greatest weakness in times of panic. Take, for example, the two banks which have confessedly the largest deposits of this kind in New York and Chicago, respectively. The Associated Press dispatch of the 17th, from New York, says: "The present system of pooling was gotten up for the benefit of weak banks, especially those paying 4 per cent on balances." Would the writer include the National Park Bank in that category? and yet that bank probably pays more interest in that way, both absolutely and relatively, than any bank in New York, while all advices, public and private, agree that the Park Bank is sound, if any of them are (I say probably because at this distance one can only make a qualified statement of this kind, and I therefore write under correction). The Chicago bank referred to is, of course, the

17. October 27, 1873 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, October 27, 1873

Click image to open full size in new tab

Article Text

# FINANCIAL. SATURDAY, October 25, 1873. There is a continued improvement in good feeling in financial circles in all the principal cities of the country, but stocks are yet unsettled in almost every locality. On Thursday the New York stock market was weak and lower during the day, but closed with a slight recovery from the extreme depression. On Friday the general list was more steady, with a slight decline. At a meeting of the New York Clearing-house on Thursday a resolution was offered proposing to use national bank notes in settlement of differences at the clearing-house. The resolution was voted down by a large majority; but in view of the improved condition of the banks it was resolved to abandon the "pooling" process on the 1st proximo. In reference to this action the Baltimore Sun (money article) of to-day says: "It is indicative of preparation for a speedy re-sumption of full currency payments. Some of the banks are said to be already paying on all demands when preferred to the certification of checks, and the difference against the checks of other banks that decline to pay out large sums of currency is only ¼@½ per cent. Some of the first class of banks are not only helping their neighbors to greenbacks and sending currency to their country corre-spondents, but they are paying out their debtor balances at the Clearing-House, as a matter of choice, in greenbacks, in place of relief certificates. No bank that hopes to retain their old accounts of value, or expects to acquire new accounts of a desirable character, city or country, as the smoke of the panic clears up, will deem it prudent to have it known that it is behind its neighbors. It is quite confidently asserted, however, that the New York banks generally will resume full currency payments by the 1st November. It is hardly thought the Philadelphia banks can follow the example. A large amount of dividends have to be paid in Philadelphia at that time." Papers supposed to be in the confidence of the Administration say that so far as the Government can do so it is already assisting towards the equalization of currency with specie. Secretary Richardson states that the Government will pay out silver as soon as it can be profitably and conveniently coined for that purpose, and the treasury is following, as far as possible, the policy of specie payments.

18. July 29, 1893 The Sun New York, NY
Article from The Sun, July 29, 1893

Click image to open full size in new tab

Article Text

PRICE TWO CENTS. # SAVINGS BANKS CONFER. APPLICATION OF THE 30-DAY AND 60-DAY RULES ADVISED, It is Referred to the Trustees of Each Bank In New York and Kings, and May Not Be Approved-The Clearing House Banks Advised Against It-Great Picking Up of Bargains in Wall Street Yesterday-A Tremendous Bear Raid on General Elec- trie Followed by Recovery-The Company to Pay Its Dividend and Its Floating Debt in Cash-$2,150,000 More of Loan Certifi- cates Taken Out for the Benefit of the Mercantile Community by Strong Banks. During the last few days the withdrawal of deposits from the savings banks of this city and Brooklyn has been so large that the of- ficers of those institutions have been dis- turbed. Evidence is not wanting that a large part of the money withdrawn from the savings banks has been attracted to Wall street by the extraordinarily low prices for securities. It is possible, of course, that some of the money has been taken out because of the gen- eral reduction in wages and shutting down of mills, factories, and other industral establish- ments on account of the widespread contrac- tion of business. Laborers whose incomes have been reduced have doubtless been com- pelled to some extent to fall back on their savings. Whatever the causes may be the withdrawal of deposits has been upon a scale that brought the active managers of the savings banks to- gether yesterday afternoon to discuss the situation. Before the meeting was held sufficient infor- mal discussion had taken place between the Presidents of certain savings banks and the officers of some of the Clearing House banks to bring out the fact that the first named were in favor of taking advantage of the provisions in their charters authorizing them to require depositors to give thirty and sixty days' notice of the withdrawal of their deposits. It is to the credit of the Presidents of the Clearing House banks who were consulted that they unanimously advised the savings bank Presidents against taking such a step. They argued that the financial situation is gradually improving, and that one of the evi- dences was the appearance of a large number of small investment orders on the Stock Ex- change. It appears, however, that this advice was disregarded, and that at a meeting of the ma- jority of representatives of the various sav- ings banks held yesterday afternoon it was de- cided to recommend to the various Boards of Trustees that they should take advantage of the time limit regarding the withdrawal of de- posits. This was the most important financial news of the day, and it is evident from the manner In which officers of savings banks responded to inquiries about the matter last evening that they had intended to keep their action secret until each institution could act upon the recommendation of the meeting. The meeting was held in the Emigrant Sav- ings Bank building at 2 o'clock yesterday afternoon. It was a meeting of the Presi- dents of the savings banks of this county and of Kings. President J. Har- sen Rhoades of the Greenwich Savings Bank presided. The officials present after a long and full discussion of the financial situ- ation, decided unanimously to recommend to the trustees of the several banks that the banks should avail themselves of the pro- vision in their by-laws which allows them to require notice from depositors of an intention to withdraw their deposits. It was recommended, so it is understood, that thirty days' notice should be required on sums of $300 and under, and sixty days on sums over that amount. This applies to ap- plications to withdraw the total amount on deposit, and it is understood that the bank of- flicials will exercise their discretion in mak- ing payments on account in individual in- stances. The recommendation goes to the savings banks of New York city, Williams- burgh, and Brooklyn, which are represented In the association. None of the savings bank officials who were seen in this city last night was willing to dis- cuss the subject or to give any information about the meeting at which this decision was reached. For two or three weeks past there have been steady withdrawals of deposits from the various savings banks, though there has been at no time anything like a run. It was suggested that if this was continued it would result in calls on national banks, trust companies, and other depositories for the sav- ings bank funds on deposit with them and so bring about a further locking up of currency. President F. D. Tappen of the Gallatin Na- tional Bank said last night: "I think that the savings banks have taken a very wise step, and it should cause no alarm. It is only placing all deposi- tors on the same footing, and providing against a calling in of money now in use in the trades, manufactures, and commerce of the country. This would bring about evil far in access of the inconvenience to small de- positors arising from groundless alarm." President Edward Wood of the Bowery Sav- ings Bank declined to say what the action of the meeting had been, as did President Stur- giss of the Seamen's Savings Bank. The lat- ter said that President John Harsen Rhodes of the Greenwich Savings Bank, who had pre- sided at the meeting, must be its mouthpiece. He had gone out of the city for the night. Ap- plication in other quarters was unsuccessful. Although the Presidents have recommended that the banks avail themselves of the right to require notice it does not necessarily follow that the trustees of the individual banks will follow their advice. The same action was taken by the savings bank Presidents at a meeting held on Sunday afternoon, Sept. 22, 1873, but only three of the thirty-six savings institu- tions then in existence took advantage of the rule on Monday, and one of these continued payments on demand until 5 o'clock in the afternoon of Monday. On Tuesday, however, nearly all of the banks posted the ruler equiring notice, though in some it was applied only to sums of over $100. The savings banks of New York and Kings counties carry more than $400,000,000 of de- posits. Freeman A. Smith, President of the Provi- dent Institution for Savings, which is the largest of the Jersey City savings banks, said last night: Jersey City savings banks, so far as he knew, had not been consulted or invited to join in the movement. He said that he had taken some pains to find out the condition of all the banks, both in Jersey City and Newark, and none of them had been having any trouble, His own bank, he said, had been paying out