A practical joke/canard circulated and magnified, causing depositors to panic and withdraw funds.
Random Run
Yes
Random Run Snippet
A joke started a run; panic caused by a silly joke (false rumor)
Measures
Bank paid depositors promptly from cash on hand and drew on other banks if needed; reported ample cash reserves.
Newspaper Excerpt
A run was started on the People's Saving bank today and at the closing hour about $240,000 had been paid to frightened depositors. The panic was caused by a joke that magnified as it went the rounds
Source
newspapers
Newspaper Articles (10)
1.July 23, 1892Grand Rapids HeraldGrand Rapids, MI
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RUN ON A BANK
A Joke Costs a Savings Bank a Large Reduction in Deposits. EVANSVILLE, July 22.-A run was started on the People's Saving bank today and at the closing hour about $240,000 had been paid to frightened depositors. The panic was caused by a joke that magnified as it went the rounds and tinally became serious. Many people were at the bank at daylight this morning so anxious were they. All depositors were paid promptly without a question. The bank 18 solvent and has a surplus over moneys deposited. They have in cash over $500,000 to meet claims, and can raise $250,000 if needed from other banks.
2.July 24, 1892New-York TribuneNew York, NY
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RUN ON A BANK CAUSED BY A JOKE. Evansville, Ind., July 23.-A silly joke caused a small run on the People's Savings Bank. About $3,800 was withdrawn, mostly small savings of poor people. The bank Is said to be in sound condition, and has $500,000 in its vaults, and can pay out every dollar of its liabilities and have a big surplus left.
3.July 26, 1892Evening StarWashington, DC
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The strike of Wabash railroad men in Indiana has ended in a complete victory for the men. A joke started a run on the People's Savings Bank at Evansville, Ind., which weathered the gale safely.
4.July 27, 1892The True NorthernerPaw Paw, MI
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THE BANK STOOD THE RUN
A Panic Caused by a Joke Makes Depositors Draw Their Money. At Evansville, Ind., a run was started on the People's Savings Bank. and at the closing hour about $40,000 had been paid to frightened depositors. The panic was started by a joke that magnifed as it went the rounds and finally became serious. Many poor people were at the bank at daylight, SO anxious were they. All depositors were paid promptly without a question. The bank is solid and has a surplus over moneys deposited They have in cash over $500,000 to meet claims and can raise $250,000, if needed, from other banks.
5.July 28, 1892The Russellville DemocratRussellville, AR
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A Silly Joke
EVANSVILLE, IND., July 23. - A silly joke caused a small-sized run on the People's Savings Bank to lose about $380, withdrawn mostly from small saving poor people. The bank, however, is said to be in a sound condition, and has $50,000 in the vaults and can pay out every dollar of its liabilities and have a big surplus left.
6.July 28, 1892Crawford AvalancheGrayling, MI
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THE BANK STOOD THE RUN
A Panic Caused by a Joke Makes Depositors Draw Their Money. At Evansville, Ind., a run was started on the People's Savings Bank. and at the closing hour about $40,000 had been paid to frightened depositors. The panic was started by a joke that magnified as it went the rounds and finally became serious. Many poor people were at the bank at daylight, SO anxious were they. All depositors were paid promptly without a question. The bank is solid and has a surplus over moneys deposited They have in cash over $500,000 to meet claims and can raise $250,000, if needed, from other banks.
7.July 29, 1892The Bolivar BulletinBolivar, TN
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Run on a Bank
to EVANSVILLE, Ind. July 24.s run was started yesterday on the People's Savings bank and at the closing hour about $40,000 had r een paid to frightened depositor The panic was caused by a joke that magnified as it went the rounds, and finally became serious Many poor people were at the bar at daylight yesterday morning, 60 anxious were they. All depositors were paid promptly withouta question. The bank is solid, and has a surpl us over moneys deposited. They have in cash over $500,000 to meet claims and can raise $250,000 more, if needed. T
8.August 4, 1892The Princeton UnionPrinceton, MN
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A CANARD started by a practical joker started a run which came near swamping the People's Savings Bank of Evansville, Ind. A joke like that would seem to call for about five mirthful years in a well regulated penitentiary.
9.August 11, 1892Courier DemocratLangdon, ND
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A CANARD started by a practical joker started a run which came near swamping the People's Savings Bank of Evansville, Ind. A joke like that would seem to call for about five mirthful years in a well regulated penitentiary.
A CANARD started by a practical joker started a run which came near swamping the People's Savings Bank of Evansville, Ind. A joke like that would seem to call for about five nirthful years in a well regulated peniten' "y.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.