Multiple contemporaneous newspaper reports (late July–early August 1921) describe a depositor run on the Boston Five Cents Savings Bank caused by malicious propaganda/false rumors (blamed on radicals). The bank paid out large withdrawals, kept extra cash/securities on hand, refused outside aid, and remained open; reports indicate the run abated by Aug 1–2. No suspension or receivership is mentioned.
Events (1)
1.July 29, 1921Run
Cause
Rumor Or Misinformation
Cause Details
Malicious propaganda/false rumors (reports blamed on radicals) spread among depositors, prompting mass withdrawals.
Measures
Bank kept extra hours, maintained large cash on hand ($1–2 million reported) and large securities holdings; officials refused offered financial aid and paid withdrawals as presented.
Newspaper Excerpt
Several hundred persons, influenced, the police say, by malicious propaganda, were in line to withdraw their deposits from the Boston Five Cents Savings bank
Source
newspapers
Newspaper Articles (10)
1.July 30, 1921Capital JournalSalem, OR
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False Rumor Blamed For Run On Bank Boston, July 30.-Several hundred persons influenced, the police say, by malicious propaganda, were in line to withdraw their deposits from the Boston Five Cents Savings bank when the doors of that institution opened today, continuing a run which began in a mild form yesterday. Some of the depositors had been in front of the bank since 1 a. m. waiting to take out their money notwithstanding reassuring statements issued by the bank commissioner declaring the bank absolutely sound. The Northwestern Trust company, an uptown institution, today weathered a run that began yesterday. A false rumor of the trust company's condition started a line of timid depositors yesterday and caused many to withdraw funds today. When the bank opened this morning $1,000,000 in cash was on hand to pay all demands.
2.July 30, 1921The Ocala Evening StarOcala, FL
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BEANTOWN BANK HAD PLENTY OF BONES Boston, July 30.-Several hundred persons, influenced by malicious propaganda, the police said, were in line to withdraw their deposits from the Boston Five Cents. Savings Bank when the doors opened today, continuing the run which began in mild form yesterday. Bank officials said they were not disturbed by the prospect of a run as there was two million dollars in cash in the vaults and over $22,000,000 in securities which could be converted into cash immediately.
Run on Boston Bank. BOSTON, July 30. .-Several - hundred persons influenced, the police say, by malicious propoganda, were in line to withdraw deposits from the Boston five cents savings bank. Continuing a run which began in mild form yesterday some depositors had been in front of the bank since 1 a. m. A statement by bank officials declared the bank absolutely sound.
4.July 30, 1921Grand Forks HeraldGrand Forks, ND
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FALSE STATEMENTS START RUN ON BANKS Boston, July 30.-Several hundred persons influenced, the police say, by malicious propaganda, were in line to withdraw their deposits from the Boston Five Cents Savings Bank when the doors of that institution opened today, continuing a run which began in a mild form yesterday, notwithstanding reassuring statements, issued by the bank commissioner declaring the bank absolutely sound.
5.July 31, 1921New-York TribuneNew York, NY
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Bank Declines 5 Million Aid In Frenzied Run Boston Five Cents Savings Institution Keeps Extra Hours to Pay Throngs of Excited Depositors Crowds Clash With Police Rush Blamed on Radical Plot; Offers Made to Buy Accounts at Discount Special Dispatch to The Tribune BOSTON, July 30.-Financial assistance amounting to $5,000,000 was refused to-day by the Boston Five Cent Savings Bank, while a second run was in progress and a large detachment of police was having difficulty restraining thousands of panicstricken depositors. Statements issued by officials of the Five Cent Savings Bank, by officials of other banks, and by Bank Commissioner Joseph C. Allen, testified to the strength of the Five Cent Bank, but these statements failed to reassure the depositors who stormed the bank to withdrawals. Police officials were working throughout the day to trace rumors, declared to have been circulated by radicals, which were responsible for the big run. Policeman Trampled by Crowd Women became hysterical as the disorderly crowd struggled before the bank doors, a policeman was swept off his feet by the rush, and another was punched on the nose by an excited woman depositor. Early to-day other banks in Boston offered support to the savings bank, volunteering to supply large sums to assist in paying depositors. Officials of the bank on which there has been a run for two days, refused the offer, declaring the bank was well able to pay all depositors as fast as bankbooks were presented. Furthermore,
6.August 2, 1921Richmond Times-DispatchRichmond, VA
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Believe Run on Bank III End. BOSTON. Aug. 1.-Bellef that the run on the Boston Five Cents Savings Bank, which began Friday, was nearing an end. was expressed 10night by officials of the company When the bank closed at the regular hour only 250 persons were in line waiting to make withdrawals. Jos. eph Holmes, treasurer of the bank. said the total withdrawals today were less than those of Saturday, when nearly $700,000 was paid out. and that deposits were approximately $25,000. a considerable increase over Saturday.
7.August 2, 1921Bisbee Daily ReviewBisbee, AZ
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BELIEVE RUN ENDED Belief that the BOSTON, Aug. 1. run on the Boston Five Cents Savings Bank which began Friday, was nearing an end was expressed tonight by officials of the company. When the bank closed at the regular hour only 250 persons were in line waiting to make withdrawals.
8.August 2, 1921Daily Kennebec JournalAugusta, ME
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Run Lessening on Boston Five Cents Savings Bank Boston, Aug. 1.-Belief that the run on the Boston Five Cents Saving Bank which began Friday and continued through today would be less severe tomorrow was expressed tonight by officials of the company. When the bank closed at the regular hour only 250 persons were in line to make withdrawals. Joseph Holmes. treasurer, of the bank, said tonight that the total withdrawals today were less than those of Saturday, when nearly $700,000 was paid out. and the deposits, were approximately $25,000. although less than the normal amount. $50,000. they were much greater than those of Saturday. There was no excitement among the waiting crowd today, and traffic was not interfered with. Special arrangements to expedite the payment of depositors were made by the bank. It was learned from postal authorities tonight that since the bank run started postal saving deposits in this city had amounted to nearly $500,000 breaking all records for SO short a period. Nearly $80,000 was deposited at the central post office. where the daily average for some time is said to have been about $1.500. The increase has been especially noticeable at the North postal station and the Hanover street station. The deposits of more than $85,000 at the North postal station on Saturday were the heaviest in the history of that office. These two stations are in districts in which live most of the foreign speaking depositors who have withdrawn their money from the Five Cent Savings Bank.
9.August 3, 1921Daily Kennebec JournalAugusta, ME
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RUN ON BOSTON BANK NEAR END Boston, Aug. 2.-More than $2,000,000 was withdrawn by depositors from the Boston Five Cents Savings Bank during a run which began last Friday and which appeared to have ended today according to Joseph C. Holmes, treasurer of the institution. A line of five hundred persons who were on hand earlier in the day had been paid and there were no depositors waiting when the bank closed at the usual hour today. Mr. Holmes said he anticipated some depositors from out-of-town might call for their money during the next few days but he looked for virtually normal conditions from now. Deposits had shown an increase each day, he said. An investigation to determine responsibility for the run during which thousands of people withdrew their savings, was announced by Gov. Cox, who said evidence produced at a conference at the state house clearly indicated that it was the result of a well laid plan. The investigation will be made jointly by state, city and banking authorities.
Meanwhile the enemies of labor in Massachusetts are doing their best to discredit the defense of the two men. Friends of Sacco and Vanzetti were blamed in the newspapers here "by a high state official" for starting a run on the Boston Five Cents Savings Bank, the theory being that the rush was inspired for revenge. This has, of course, been shown to be false and preposterous.
