7360. Western Bank (Louisville, KY)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
state
Start Date
September 27, 1873
Location
Louisville, Kentucky (38.254, -85.759)

Metadata

Model
gpt-5-mini
Short Digest
8cb23273

Response Measures

Full suspension

Description

Multiple contemporary papers (Sept 27–29, 1873) report a steadily increasing run on several Louisville savings institutions, including Western Bank, and that Western Bank suspended payment temporarily on Sept 27, 1873. Newspapers state suspensions are 'temporary' and some pieces say suspended banks 'will resume' early next week, but no definitive reopening of Western Bank is reported in these articles, so final outcome is uncertain. Cause attributed to the broader 1873 panic/contagion rather than a discrete misinformation event.

Events (2)
1. September 27, 1873 Run
Cause
Macro News
Cause Details
Part of the wider money panic of late September 1873; increasing withdrawals over three days pressured local savings banks including Western Bank.
Measures
None separately described for the run beyond banks limiting payments; banks later suspended payments temporarily.
Newspaper Excerpt
A run on these banks has been steadily increasing for the past three days.
Source
newspapers
2. September 27, 1873 Suspension
Cause
Macro News
Cause Details
Temporary suspension of payments by Western Bank and several other Louisville savings institutions as a precaution amid the broader money panic and heavy withdrawals; described as temporary and due to lack of coordinated action among banks and heavy drawing on reserves.
Newspaper Excerpt
The following banks suspended payment temporarily to-day ... Western Bank.
Source
newspapers

Newspaper Articles (10)
1. September 28, 1873 The New York Herald New York, NY
Article from The New York Herald, September 28, 1873

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Banks Suspended in Louisville. LOUISVILLE, Sept. 27, 1873. The following banks suspended payment temporarily to-day :-German Bank, Masonic Savings Bank, Western Bank, German Insurance Bank, Louisville Banking Company, German Savings Bank and Central Savings Bank. A run on these banks has been steadily increasing for the past three days. All of them have abundant resources, many being able to pay two dollars for every one on deposit out of tneir assets. The other banks in the city are neavily drawn on, but they are all right. The suspended banks are all savings institutions, conducted and owned chiefly by Germans. The lack of systematic action tended to suspend these institutions, every bank looking out for its own safety.

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

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LOUISVILLE, LOUISVILLE, Sept. 27.-Considerable exoitement prevailed to-day, caused by the suspension at an early hour of the following bauks: German Security, German Insurance, Masonio Savings, Western Bank, Central Savings, German Bank, and Louisvillo Banking Company. Business in general is quiet and prices nominal for all leading articles. No run at the close of banking hours upon any other banks.

3. September 29, 1873 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, September 29, 1873

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of intrinsic values is entirely forgotton, there. fore, Be it Resolved, That we heartily endorse the action of the Secretary of the Treasury in his efforts to stay the tide of ruin by affording temporary relief, and in his wise discrimination in the use of the resources at his command. RESOLVED, That we urge upon him the necessity of bringing before Congress a plan for a general banking law through which the benefits of our present system may be more generally extended, and serve more fully the growing interests of the country. RESOLVED, That the great sources of wealth of our crops and general productions are more promising than ever, and that therefore the enterprises of the country have a greater chance for profit and success; that the sudden and wild decline in the values is the result of the panic, and without reasonable cause. RESOLVED, That we deem it our duty to avert in every way the indiscriminate sacrifice of securities, and to express our hearty condemnation of those who by personal profit attempt to aggravate the evils and cause a still greater decline in value at the board. John Barker, George S. For, and Thomas A. Biddle were appointed a committee to confer with the hank officers on the situation of affairs. Baltimore, 27. The day closed without additional excitement or reports of any failures. The stringency in money continues, but all the banks paid out liberally on small checks to supply the business demand. Knoxville, Tenn., 27. The Exchange Deposit and Knoxville Banks have suspended payment of checks for currency this morning in consequence of the sudden demands of depositors. The commercial banks also suspended payment of all large amounts. Augusta, Ga., 27. There is a better feeling in this city to-day, but otherwise the situation is unchanged. Nothing is doing in cotton for want of currency; some few bales of middling were forced at 15 cents. It is believed the suspended banks will resume currency payments early next week. Allentown, Pa., 27. The bankers of this city resolved to follow the example of New York and other cities. New York, 27. A committee of the produce exchange have been appointed to confer with the loans committee and clearing house committee with a view of effecting an arrangment by which the moving of foreign exchange may be accomplished. Salt Lake, 27. There was considerable excitement here to-day. The first National bank did not open their doors. A notice states that the cause of suspension was owing to the failure of the eastern houses and their inability to obtain currency. Their liabilities are amply secured. Washington, 27. The Secretary of the Treasury, will not for the present, issue his programme for the sale of gold and the purchase of bonds next month. Louisville, Ky., 27. The following banks have supended payment temporarily to-day: German bank, Masonic savings bank, Western bank, German insurance bank, Louisville banking company, German savings bank, and the Central savings bank. A run on this bank has been steadily increasing for the past three days. All of them have abundant resources; many being able to pay two dollars for one on deposit. The other banks in the city are heavily drawn on, but are all right. The suspended banks are all savings institutions, conducted and owned principally by Germans. The lack of systematic action tended to the suspension of these banks. Every bank is looking out for its own safety. Dubuque, Ia., 27. The Commercial National Bank of Dubuque, in this city, is the only National bank that is meeting demands in full in currency, and to-day their deposits considerably decreased. The Merchants' National bank is paying in bills receivable, and small amounts in curren. cy. The run on the German savings bank and Peoples' savings bank seems to have entirely subsided. Chicago, 27. Business continues very quiet on the exchange, but there was more inquiry for cash grain, mainly by outsiders, who have brought in currency with which to buy at the present low rates, and prices were firm and generally higher.

4. September 29, 1873 The Rutland Daily Globe Rutland, VT
Article from The Rutland Daily Globe, September 29, 1873

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two hundred dollars is a mistake. No such action has been taken. The banks are doing business as usual, except that they have stopped advances on the produce until the eastern banks shall be ready to respond. ### THE CLEVELAND BANKS. CLEVELAND, Sept. 27. There is but little excitement among business men in financial circles in this city over the monetary troubles. A feeling of confidence prevails, and there is scarcely a doubt but what the Cleveland banks will get through all right. The savings banks have adopted the sixty days' notice plan, merely as a precautionary measure. A RESUMPTION. DETROIT, Sept. 27. David Preston & Co, bankers of this city, resumed business to-day after a suspension of two days. ### THE TOLEDO BANKS. TOLEDO, Sept. 27. The banks of this city passed over yesterday in good condition. Several of them are stronger than at any time since the beginning of the run. The single failure of a banking house, Kraus & Smith, has had less effect than was apprehended. IN PHILADELPHIA. PHILADELPHIA, Sept. 27. Matters are quiet on Third street, the scarcity of currency being the only trouble experienced from the panic. Many large manufacturing concerns have, with great exertions, raised a sufficient amount of currency to pay full wages to their employes, while other firms have been able to pay only fifty per cent. of the wages due. CLEARING HOUSE OPERATIONS, CHICAGO, Sept. 27. At a meeting of the clearing house association a committee was appointed to draft a plan for the issue of loan certificates to be used in the clearing house in settlement of balances. ### THE STOCK EXCHANGE TO BE OPENED TUESDAY. NEW YORK, Sept. 27, 2.45 p. m. The stock exchange will open for business at the usual hour on Tuesday morning. This announcement indicates improved feeling on the street this afternoon, which has been brought about by a generally believed report that Com. Vanderbilt's brokers have to-day effected a general settlement in their heavy stock transactions. Very few transactions this afternoon. The following are the latest street cash quotations: New York Central 86; Lake Shore 64; Western Union 54; Pacific Mail 29; Rock Island 83; C. C. and I. C. 20; Union Pacific 18; Wabash 41. The details of business for opening the stock exchange will be arranged at the meeting of the governing committee Monday morning BANK COMMITTEE REPORT. At a meeting of the bank committee to-day a report was received from the committee to whom was referred the proposition of the committee of the stock exchange. The first suggestion of the latter had been anticipated by the action of the banks and the suggestion that the associate bank should guarantee payment of certified checks to the extent of their associated capital appears to the bank committee impracticable. In answer to another suggestion of the stock exchange committee the banking committee say the proposed modes of relief seem to look exclusively to the convenience and safety of the stock exchange, without comprehending danger and inconvenience involved to the bank. The clearing house committee have decided hereafter not to make public the amount of loan certificates issued. A special from Louisville says the German Insurance, Masonic savings, German Central savings, and Western banks have temporarily suspended. There is no run on other banks. The Louisville banking company has also suspended. AFFAIRS IN CHICAGO. A Chicago special says the Third National bank is reported closed and nothing doing on change. RECEIVER'S REPORT. WASHINGTON, Sept. 27. The report of the receiver of the first national bank shows that one hundred thousand dollars—the amount of surplus—will cover its losses from realizing on its loans and discounts. If the indebtedness of Jay Cooke & Co. is paid in full its capital stock will be unimpaired. MORE HARD CASH. LONDON, Sept. 27. The steamship Java, which sailed from this port for New York to-day, took £500,000 in bullion.

5. September 29, 1873 The Rutland Daily Globe Rutland, VT
Article from The Rutland Daily Globe, September 29, 1873

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Latest Financial LOUIVVILLE, Sept. 27. SUSPENSIONS The following banks suspended payment temporarily to-day German Bank. Ma. onic savings bank, Western bank. German Insurance bank. Louisville Banking Co., German savings bank, and Central savings bank. The run on these banks has been steadily increasing for three days. All have abundant resources. Other banks have heavily drawn on the suspended banks All the savings institutions are owned chiefly by Germans. PANIC CONTINUES. LITTLE Rock, Sept. 27. The money panic continued to-day. Never in the history of the city has money been so stringent. It is impossible collaterals. to get any money with any sort of CONFIDENCE. CHICAGO, Sept. 25. People generally are taking matters very quietly and there seems to be considerable confidence among bankers that with prudent management and no further trouble East they will be able to pull through. AT CINCINNATI. CINCINNATI, Ohio, Sept. 27. The day has passed quietly in financial and commercial circles. There was positively an improved feeling among all classes. Prices on change stiffened materially, and some articles brought higher figures than since the panic. A number of banks have announced that they would pay all currency checks against new deposits, and certify checks in checks. A currency against deposits fair mechanics amount of currency has been paid to and manufacturers for wages, and no great dissatisfaction was expressed by any one. A much healthier tone has prevailed, and greatly increased hopefulness has been manifested on all sides. AT DUBUQUE. DUBUQUE. I., Sept. 27. The Commercial National Bank is the national bank in this city that is meetdemands in full in currency. only ing all The Merchants' National Bank has suspended. The First National Bank is paying in bills receivable and small amounts of currency. The run on the German Sayings Bank and the Peoples' Sayings Bank has subsided. AT PHILADELPHIA. PHILADELPHIA. Sept. 27. A committee of the stock board had a this afternoon bank at which the latter it presidents, conference with stated the that was not the intentions of banks to force any securities upon the market and they would not do anything that would tend to cause a decline of securities of the stock board. AT CHICAGO. CHICAGO, Sept. 27. The clearing house association held adjourned meeting last night. The committee on Friday night to a plan, submitted appointed report two consider reports and which were essentially the same, the only difference being that one recommended the of the New York adoption recommended plan in all the its details: while the other adoption of something similar to it. After e a prolonged discussion both reports were 1 tabled by a majority vote. The situation 1 here is therefore essentially unchanged. currency a of which went has been no serious e or savings S either and large Considerable there portion national arrived into yesterday, institutions. drain the banks upon e Some suspended banks promise early resumption, and only one, the Manufacturers' National admits it will go into a liquidation and this will pay dollar for dollar.

6. September 29, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, September 29, 1873

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LOUISVILLE, LOUISVILLE, Sept. 27.-Considerable excitemont prevailed to-day, caused by the suspension at an early hour of the following banks: German Security, German Insurance, Masonio Savings, Western Bank, Central Savings, Gorman Bank, and Louieville Banking Company. Business in general is quiet and prices nominal for all leading articles. No run at the close of banking hours upon any other banks.

7. October 2, 1873 The Stark County Democrat Canton, OH
Article from The Stark County Democrat, October 2, 1873

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BOSTON. BOSTON, Sept. 27.-Bank presidents this city have decided to make only small currency payments, and to issue ten millions of loan certificates. The Farmers' National Bank of Newcastle, Del., suspended on Saturday. The steamer Java, which sailed from Liverpool on Saturday, took £500,000 in gold for New York. David Preston & Co., bankers, of Detroit Mich., resumed business yesterday, after suspension of two days. The Secretary of the Treasury will not for the present issue a programme for the sale of gold and the purchase bonds next month. The Allentown, Pa., banks have decided to the of checks Enstead of out currency in adopt system paying of certification large amounts. United States coupons maturing Nov. will be paid on and after Monday, Sept. 29, upon a rebate of interest at the rate of six per cent per annum. The Milwaukee banks are doing businest as usual, except that they have stop. ped advances on produce until the Eastern banks are ready to respond. The panic continued in Little Rock on in of this so city money Saturday. has money Never been the stringent. history It is impossible to get any with any sort collaterals. A feeling of confidence provails in Cleveland, and there is searcely a that the banks will get through coubt all right. but The savings banks have adopted the sixty days' notice plan, The Exchange, Deposit, and Knoxville banks of Knoxville, Tenn., have suspended the pay- of checks for currency. The Commercial Bank has suspended on all large amounts. At: meeting of the bank presidents of Boston on Saturday it was decided to adopt the New York plan, that is, to make only small currency payments, and to issue $10,000 000 of loan certificates. The Commercial National Bank of Dubuque is the only national bank of that city that is meeting all demands in full in currency. The Merchants' National Bank has suspended payment entirely. The National People's Bank and Home Bank of Clinton, III., have suspended payment until the financial crisis 18 over. The reason given 18 the regent action of the banks in Chicago, Cincinnati, and elsewhere. In Toledo the banks passed over Saturday in good condition. Several are stronger than at any time since the beginning of the run. The failure of Kraus & Smith has had less effect than was apprehended. An arrangement has been made by which the London house of Jay Cooke, McCulloch & Co., will honor all Government drafts on the London house of Clews, Habicht & Co. Beyond this there has been no change in the agency. A better feeling prevailed in Charleston S.C. at the close of business on Saturday, the national banks having received a larger amount of greenback on deposit than they paid out in checks. No suspensions have occurred beyond those announced on Friday. Bushing & Brothers, brokers, of Reading, Pa., who are carrying over $2,000,000 in a on The counSaturday. deposits, were paid sustained $50 depositors and heavy from the drain The try no more. city merchants received certified checks on this firm for produce. The banks of Atchison, Kansas, are doing business as usual and declare they do ot intend to suspend currency payments. Three of the banks kept open until five o'clock yesterday. Business men heartily sustain the banks in their determination not to suspend. The Cincinnati Chamber of Commerce passed resolutions on Saturday praising the for to sums in banks in currency, refusing expressing for all possible pay confidence out banking large them, and asking accommodation for merchants and manu facturers. There is little prospect of an end to the stagnation in forwarding until exchanges can be effected. The following Louisyille savings banks suspended payment temporarilly on Saturday. German Bank, Masonic Savings Bank, Western Bank, German Insurance Bank, Louisville Banking Company, German Savings Bank, and Central Savings Bank. A run on these banks has been speedily increasing for the pagi three days All of them have abundant resources. The committee to examine the condition ot the First National Bank Memphis re port its demand liabilities at $374,000. against unquestioned and available assets of $555,000. The doubtful and unavailable assets are $101,00C. After paying all the liabilities the stockholders can Iealize par on their shares. After the reading of the report $200,000 was subscribed

8. October 3, 1873 The True Northerner Paw Paw, MI
Article from The True Northerner, October 3, 1873

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In the South. MEMPHIS, Sept. 25.-Nearly every bank in the city has been forced to suspend. The utmost excitement and confusion prevailed in the vicinity of the banks, as the eager depositors gathered about the institutions, and in some instances the police had to guard the doors. Advices from Atlanta, Ga., state that cotton is arriving freely, but there is no money to move it. Every bank in Augusta, Ga., has suspended. The Dollar Savings Bank, of Atlanta, has suspended. The Selma (Ala.) Savings Bank has also collapsed. SAVANNAH, Ga., Sept. 25.--There is quite a run on the banks, which are paying dollar for dollar. Business is at a complete stand-still for want of currency. LITTLE ROCK, Sept. 26.-The excitement continues. Everything is at a stand-still. Very few parties take city money, and no greenbacks are in circulation. VICKSBURG, Sept. 26.-The banks have suspended for thirty days as a precautionary measure. COLUMBIA, S.C., Sept. 26. There is no run on the banks here, notwithstanding the excitement elsewhere. Cotton is being disposed of rapidly. MONTGOMERY, Ala., Sept. 26.-Cotton has been coming in rapidly, but not a bale has been sold for want of currency. LOUISVILLE, Sept. 29.-In order to prevent an anticipated "run" on their institutions, the following banks have temporarily closed their doors: German Bank, Masonic Savings Bank, Western Bank, German Insurance Bank, Louisville Banking Company, Western German Savings Bank, Central Savings Bank. The suspended banks are all savings banks, conducted and owned chiefly by Germans, with long lines of small German depositors. All of them have abundant resources, many of them being able to pay $2 for every $1 on deposit out of the a: sets. The banks in the city were heavily drawn on, but are all right, and will not be affected. NEW ORLEANS, Sept. 29.-Except symptoms of a general slight asphyxia caused by a scarcity of currency, there is little change in our financial affairs. The banks continue to pay $25 per day to each depositor that demands it. LITTLE ROCK, Sept. The money panic continues. Never in the history of the city has money been so stringent. It is impossible to get any with any sort of collateral.

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

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In the South. MEMPHIS, Sept. 25.-Nearly every bank in the city has been forced to suspend. The utmost excitement and confusion prevailed in the vicinity of the banks as the eager depositors gathered about the institutions, and in some instances the police had to guard the doors. Advices from Atlanta, Ga., state that cottonis arriving freely, but there is no money to move it. Every bank in Augusta, Ga., has suspended. The Dollar Savings Bank, of Atlanta. has suspended. The Selma (Ala.) Savings Bank has also collapsed. SAVANNAH, Ga., Sept. 25. -There quite a run on the banks, which are paying dollar for dollar. Business is at a complete stand-still for want of currency. LITTLE ROCK, Sept. 26.-The excitement continues. Everything is at a stand-still. Very few parties take city money, and no greenbacks are in circulation. VICKSBURG, Sept. -The banks have suspended for thirty days as a precautionary measure. COLUMBIA, S. C., Sept. 26.-There is no run on the banks here, notwithstanding the excitement elsewhere. Cotton is being disposed of rapidly. MONTGOMERY, Ala., Sept. 26. -Cotton has been coming in freely, but not a bale has been sold for want of currency. LOUISVILLE, Sept. 29.-In order to prevent an anticipated "run" on their institutions, the following banks have temporarily closed their doors: German Bank, Masonic Savings Bank, Western Bank. German Insurance Bank, Louisville Banking Company, Western German Savings Bank, Central Savings Bank. The suspended banks are all savings banks, conducted and owned chiefly by Germans, with long lines of German depositors. All of them have abundant resources, many being able to pay $2 for every $1 on deposit out of the assets. The banks in the city were heavily drawn on, but are all right, and will not be affected. NEW ORLEANS, Sept 29. -Except symptoms of a slight asphyxia caused by a scarcity of currency, there is little change in our financial affairs. The banks continue to pay $25 per day to each depositor that demands it. LITTLE Rock, Sept. 29.-The money panic continues. Never in the history of this city has money been so stringent. It simpossible to get any with any sort of collateral.

10. October 10, 1873 The Andrew County Republican Savannah, MO
Article from The Andrew County Republican, October 10, 1873

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IN THE SOUTH. MEMPHIS, Sept. 25.-Nearly every bank in the city has been forced to suspend. The utmost excitement and confusion prevailed in the vicinity of the banks as the eager depositors gathered about the institutions, and in some instances the police had to guard the doors. Advices from Atlanta, Ga., state that cotton is arriving freely, but there is no money to move it. Every bank in Augusta, Ga., has suspended. The Dollar Savings Bank, of Atlanta. has suspended. The Selma (Ala.) Savings Bank has also collapsed SAVANNAH, Ga.. Sept. 25.-There is quite a run on the banks, which are paying dollar for dollar. Business is at a complete stand-still for want of currency. LITTLE Rock, Sept. 26.-The excitement continues. Everything is at a stand-still. Very few parties take city money, and no greenbacks are in circulation. VICKSBURG, Sept. 26.-The banks have suspeuded for thirty days as a precautienary measure. COLUMBIA, S. C., Sept. 26.-There is no run on the banks here, notwithstanding the excitement elsewhere. Cotton is being disposed of rapidly. MONTGOMERY, Ala., Sept. 26.-Cotton has been coming in freely, but not a bale has been sold ror want of currency. LOUISVILLE, Sept. 29.-In order to prevent an anticipated "run" on their institutions, the following banks have temporarily closed their doors: German Bank, Masonic Savings Bank, Western Bank, German Insurance Bank, Louisville Banking Company, Western German Savings Bank, Central Savings Bank. The suspended banks are all savings banks, conducted and owned chiefly by Germans, with long lines of small German depositors. All of them have abundant resources, many being able to pay 82 for every 81 on deposit out of the assets. The banks in the city were heavily drawn on, but are all right, and will not be affected. NEW ORLEANS, Sept. 29.-Except symptoms of a general slight asphyxia caused by a scarcity of currency, there is little change in our financial affairs. The banks continue to pay $23 per day to each depositor that demands it. LITTLE Rock, Sept. 29. - The money panic continues. Never in the history of this city hais money been 80 stringent. It is impossible to get any with any sort of collateral.