7837. Boston Five Cent Savings Bank (Boston, MA)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
March 14, 1878
Location
Boston, Massachusetts (42.358, -71.060)

Metadata

Model
gpt-5-mini
Short Digest
96a51530

Response Measures

Partial suspension, Books examined

Other: Limited payments to $25 and required 60 days' notice for larger withdrawals; committee publicly examined securities and announced substantial surplus.

Description

Multiple articles (mid-March 1878) report a run beginning March 14–15 on the Boston Five Cent Savings Bank. Examiners found the bank solvent with a large surplus. The bank and other Boston savings institutions limited payments (e.g., requiring 60 days' notice for large withdrawals) to stem the panic. No article reports a formal suspension, receivership, permanent closure, or later reopening of this specific bank.

Events (1)

1. March 14, 1878 Run
Cause
Rumor Or Misinformation
Cause Details
General depositor uneasiness and panic among savings bank depositors (no specific insolvency alleged; examiners reported bank solvent with large surplus).
Measures
Limitations on withdrawals: requirement of sixty days' notice for sums over small amounts; Franklin Bank limited cash to $25 on demand; Boston Five Cent required sixty days' notice.
Newspaper Excerpt
The run on the Boston Five Cent Savings Bank, which commenced Tuesday, has developed into a general panic among savings bank depositors. School street... has been blockaded by a crowd to-day, and the excitement has been intense.
Source
newspapers

Newspaper Articles (6)

Article from Daily Globe, March 16, 1878

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Article Text

SAVINGS BANK PANIC. Wild Rush of: Reared Depositors on the Boston Institutions--A Cincinnasi Concern Closes its Doors. BOSTON, March 15.-The run on the Boston five cent savings bank, begun yesterday, has developed into a general panic. School street, where the bank is located, has been blockaded by a crowd to-day, and the excitecitement has been intense. The committee examining the securities state that after deducting all the depreciation which the assets, embracing stock, bonds, &c., have suffered, and allowing $157,000 with which to pay the interest falling due the first of April, the bank will still have a surplus of upward of $429,000. The uneasiness has spread to the Franklin bank in Boyleston street, one of the strongest savings institutions in the country. The managers of the Franklin have limited the amount paid to depositors on demand to twenty-flve dollars, and sixty days notice is required for all sums over that amount. This action reduces to three the number of banks in Boston paying in full on demand. An unusually large number of depositors in the Provident Institution for savings are partaking of the general scare, and applied for and obtained their money to-day, and the same is true of the Suffolk, although these banks are as far as known solvent to the last degree. SOUND BUT SUSPENDED. CINCINNATI, Ohio March 15.-The examiners appointed by Judge Burnett to investigate the affairs of the Cincinnati savings bank, which recently suspended, report to-day that the assets are $480,000 and the liabilities $437,000. The examiners declare that affairs in the bank have been prudently managed and that the security on hand for payment of obligations is more than ample.


Article from The New York Herald, March 16, 1878

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Article Text

MASSACHUSETTS SAVINGS BANKS. BOSTON, March 15, 1878. The Savings Bank bill, rushed through the State House so rapidly that the members had no time to study its provisions or weigh 118 possible consequences, 18 a fair sample of the effect of popular excitement on sober lawmakers. It gives the control of at deposits in the savings institutions of the State practically to two men-the Bank Commissioners. It does away with the original contract between the bank and the people who deposit their savings, and the only excuse for its passage 18 that, in this great public excitement and general distrust, the people are apt to rush in and destroy a bank by starting a run on its treasury. The text of the bill 18 as follows:SECTION 1.-Whenever in the judgment of the Board of Commissioners of Savings Banks the security and welfare or the depositors in any savings bank in this Commonwealth shall require a limitation or regulation of payments to its depositors said Board may, by an order in writing directed to such bank, limit and regulate such payments in time and amount as the benefit of all depositors may require. Such order shall fully express the terms of said innitation or regulation, and it may be changed or wholly revokedswhenever in the judgment of said Commissioners the welfare of the depositors in such banks shall so require. SEC. 2.-Any person aggrieved by such order may within thirty days after service thereof appeal therefrom to the Supreme Judicial Court; the Court shall hear and determine the rights or the parties under such order, and may alter. affirm or annul the same, as equity may require. Upon the entry of such appeal the Court may order such notice to all other persons interested as they may deem sufficient, and all persons so interested may appear and become parties to the appeal. and the decree thereon shall be final and binding upon all persons who appear or might have appeared and become parties to the proceeding SEC. 3.--This act shall take effect upon its passage, and shall continue in force three years. This has been hurried through the various stages of legisistion to a final passage, while a run 18 in operation on the Boston Five Cent Savings Bank, almost in view of the legislative hall. The very best lawyers declare that 11 18 unconstitutional But it 18 for the good of the savings banks, as can be seen by the fact that 116 banks responded favorably to its provisions, ten only opposed 11 and the balance were neutral. It is regarded, however, as another "stay law," such as were passed soon after the Revolution. It takes away from the Supreme Court powers which that body aione is entitled to exercise, and gives them to men who are not qualified by the constitution to exercise them. It is intended to protect the savings banks and let the depositors protect themselves. The bill has bassed both houses.


Article from The New York Herald, March 16, 1878

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Article Text

RUN ON SAVINGS BANKS. BOSTON, Mass., March 15, 1878. The run on the Boston Five Cent Savings Bank, which commenced yesterday, has developed to a general panic among savings bank depositors. School street, where the Five Cent Bank is located, bas been blockaded by a crowd to-day, and the excitement has been intense. The committee, which have been engaged in examining the securities of this bank for the past two weeks, state that the bank, after making all proper deductions, will still have a surplus of $429,000. The uneasiness has spread to the Franklin Bank in Boylston street, one of the strongest savings institutions in the country, the managers of which have applied the brakes in season to prevent the calamity which has overtaken some other banks. The amount paid to depositors on demand has been limited to $25, and sixty days' notice is required for all sums over that amount. An unusually large number of depositors in the Provident Institution for Savings, partaking of the general scare, applied for and obtained their money to-day, and the same is true of the Suffolk Bank, although these banks are, as tar as known, solvent to the last degree.


Article from Vicksburg Weekly Herald, March 22, 1878

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Article Text

BOSTON SAVINGS BANKS. A Run on One of these Institutions, and Uneasiness in Regard to Another. BORTON, March 15 -The ren on the Boston Five Cent Savings Bank, which commenced Tuesday, has developed into a general panic among savings bank depositors. School street, where the Five Cent Bank is located, hus been blockaded by a crowd to day, and the excitement has been intense. A committee which has been engaged in examiuing the securities of this bank the past two weeks, state that after deducting all depreciation assets, embracing stocks, bonds, etc., have suffered since the last statement of the bank was made, and allowing $167,000 with which to pay interest falling due on the 1st of April, the bank will still have a surplue of $429,000. The uneasiness spread to the Franklin bank, one of the strongest savings institutions in the country, the Managers of which have"applied the brakes in season to prevent the calamity which has overtaken other banks. The amount paid depositors on demand has been limited to $25, and sixty days notice is required for all sums over that amount.


Article from The Red Cloud Chief, March 28, 1878

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Article Text

LATE NEWS! General. The Farmers' and Traders' Bank, at Lexington, Ky., has suspended. The loss by a fire on Fulton street, New York, March 12th was $33,000. At Marlboro, Mass., March 12th, the Acton powder mill blew up, killing two men. P. J. S. Trumble, a banker and a large dealer in grain at Mt. Gilead, Ohio, has failed. Charles L. Wilson, proprietor of the Evening Journal, Chicago, died in that city a few days ago. The Fall River manufacturers have voted a fifteen per cent reduction of wages, beginning April 1-t. The main building of the county poor at Roscowen, N. H., burned March 19th. $18,000. No lives lost. Two men were killed at King's Mountain, Ky., March 14th by the explosion of the boiler of a portable engine. Joseph H. Marks, St. Louis, a south commission merchant, has suspended, with liabilities amounting to $110,000. Hiatt, Reed & Co., wholesale dealers in hats and straw goods, New York, have suspended. Liabilities, $90,000. A collision of coal trains near Pottsville, Pa., March 13th, resulted in the wrecking of 30 cars, and killing John A. Commisky. The American Brush Company's factory at New Haven, Conn., was burned by an incendiary, March 13th. Loss, $25,000. A fire at Jersey City, March 11th, made about 100 persons houseless. The breaking of a ladder fatally injured two persons. Another fire visited Hot Springs, Ark., on the morning of March 15th. Four buildings were destroyed. Loss from $10,000 to $15,000. On the 14th of March, at Yonkers, N. Y., Theron Marrit shot and killed Mrs. Samuel Leggett, and then shot and killed himself. Rev. Rrown Coble (colored), was hanged at Winchester, Tenu., March 14th, for the murder of Felix Gardiner (colored), June 23, 1876. The new silver dollar appeared in Wall street, N. Y., on the morning of March 14th. Buyers paid a fraction above par in gold for them. Miller, the associate of Richard Green in the murder of Hughes, for which Green was hung at Kansas City, a few days ago, has been found guilty. A. N. Robinson, who was treasurer at the time of the robbery of the Clermont county treasury, at Batavia, Ohio, has been arrested for the crime. George Johnson, the murderer of the negro ferryman, Alfred, was hung at Rome, Ga., March 15th. He confessed having committed four murders. At Harrisburg, Pa., March, 11th, two children named Wood were fatally, and two others seriously, burned by the explosion of coal-oil, with which the oldest was lighting a fire. The medical department of the University of Pennsylvania, March 15th, graduated 187 students, and conferred the honorary degree of Doctor of Laws on John Welsh, U. S. Minister to England. Miss Mary, Hampton, a prominent teacher in the public schools of Memphis, Tennessee, has been charged with forging the names of the superintendent and other prominent persons to notes, on which she obtained from the banks and private parties $3,500. The Mason & Hamlin Organ Co., have received an official appointment as organ makers to King Oscar of Sweden. The King is quite a musician, and having obtained one of these American organs for his own use was so much pleased with it that he conferred this honor on its makers. A bill has been introduced into the Pennsylvania House of Representatives which makes cremation of the human body a misdemeanor, and provides a fine of not less than $500 nor more than $1,000, with imprisonment, and makes it the duty of constables, sheriffs, and other officers, to enforce the act under penalty of prosecution. A run on the Boston Five Cent Savings Bank began March 14th, and developed into a general panic. The commissioners examining the securities, after deducting all depreciation which the assets had suffered, and allowing $167,000 to pay the interest falling due April 1st, reported that the bank would still have a surplus of $420,000. The Pennsylvania Colonization Society has authorised the American Society to send, at its expense, fifteen emigrants to Liberia. They will leave on the first of May, and will locate at the flourishing settlement of Brewerville, ten miles from Monrovia. It was named in honor of the late Charles Brewer, of Pittsburg, by whose generosity many emigrants have been enabled to make their way to Liberia. The Cincinnati Gazette has published dispatches from fifty-seven points in southern Indiana and Ohio, and northern Kentucky, from which it appears that the prospect for a large crop of wheat is exceedingly good. The average area last fall is larger than ever before known. Not one report is unfavorable, though from a few points there are apprehensions of a rank growth. A heavy robbery was committed in the Leichmere National Bank, Cambridge, Mass., about 3 o'clock, March 16th. A small trunk containing $8,000 was taken, and two other trunks, containing $47,000 in government bonds, the property of different individuals, left in the bank. It is supposed from certain facts, ascertained, that the robbery was committed.


Article from The Daily Gazette, April 25, 1878

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Article Text

e Boston Five Cent Savings Bank ecided to require sixty days' notice withdrawals of deposits. This has done to prevent a run. The bank 10,000,000 deposits and over 70,000 liters, and its statement claims HH) surplus assets.