7893. Five Cent Savings Bank (Boston, MA)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
November 4, 1891
Location
Boston, Massachusetts (42.358, -71.060)

Metadata

Model
gpt-5-mini
Short Digest
c2fb33f5

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health, Books examined

Description

Multiple contemporaneous newspaper reports (Nov 4–10, 1891) describe a brief run on the Five Cent Savings Bank in Boston triggered by the failure/speculation at the Maverick National Bank. The savings bank remained open, paid out deposits, declined to invoke the 60-day suspension, and the run ended within days. Bank classified as state-chartered because the state savings bank commissioners inspected it.

Events (1)
1. November 4, 1891 Run
Cause
Local Banks
Cause Details
Run followed failure/speculations at the Maverick National Bank (news of the Maverick's ruin/failed bank operations prompted withdrawals).
Measures
Bank continued to pay out cash to depositors; trustees said they would not invoke the sixty-day suspension; offers of loans (one national bank offered $500,000) and inspections by state savings commissioners.
Newspaper Excerpt
There was a run to-day on the Five Cent Savings Bank... The state savings bank commissioners say they have carefully examined the affairs of the institution and find it is perfectly sound.
Source
newspapers

Newspaper Articles (10)
1. November 4, 1891 The Providence News Providence, RI
Article from The Providence News, November 4, 1891

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Article Text

IT IS SOLID. [SPECIAL TO THE NEWS.] BOSTON, Nov. 4.-President Evans says that the Five Cent Savings Bank is solid, and he will continue to pay out money until it is deemed advisable to take advantage of the sixty-day limit. One national bank has offered him $500,000, and he has received offers of large amounts from other institutions. The bank had $1,027,000 cash at the date of last statement, October 13. Since then it has been strengthening its position. In 1875 there was a run on it, which lasted a month, and $6,000,000 was paid out. The directors have decided to keep the bank open to-day until 5 o'clock, and pay as fast as possible. The present withd.awals are of small amounts, and mostly by foreigners

2. November 5, 1891 Wheeling Register Wheeling, WV
Article from Wheeling Register, November 5, 1891

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THE MAVERICK May Show Up Worse Than Was Even Ex pected-Examiner Ewer's Views. BOSTON. Nov. 4.-Examiner Ewer, of the National Bank, says he hopes to get out within three or four days some sort of a statement that will enable the other banks to gauge the advances that shall be made to depositors. They can say nothing at present as to what this will snow, but intimate that it will be a good deal worse than has been anticipated. Experienced banking men think there should be a first dividend, say in two or three months and allowing for possible litigation, that a final settlement ought to be made three years from now. President Evans, of the Five Cent Savings Bank, says he will continue to pay out money till it is deemed advisable to take advantage of the sixty day law. One National Bank has offered him $500,000, and he has received offers of large amounts from other institutions. The bank had $1,027,600 cash at the date of its last statement, October 13, but has been strengthening itself of late. The bank paid out $6,000,000 in the 1875 run, which lasted for a month. The present withdrawals are mostly small accounts. The Journal says: There is nothing in the affairs of the Maverick National Bank of which the clearing house of the Boston Association Banks has not been fully advised. The committee has guarded every point. It arranged was that Mr. T. P. Beale should be the receiver for well considered reasons. The facts regarding the loans of the bank have been in possession of the Comptroller of the Currency since last and it is now intimated that is apJanuary, another comptroller likely to be pointed before long. The general loan account outside of the $2,400,000, due from directors and the Evans loss, is good, and shows good judment and careful banking. Although the Maverick Bank has been known as a speculative bank, no one outside of Mr. Evans and the Bank Directors could have imagined the extent of the speculations. It is now not to be wondered at that when the death of Evans was announced that Presi dent Potter in the Directors room, should have physically collapsed; but it is a wonder. in the light of present revelations that he should for so many days have patched up affairs and stemmed the current. The Boston banks brought over Monday night many millions of their reserve held in New York and are in a stronger financial position than has been for a long time. Money will rule very easy on apporved collateral.

3. November 5, 1891 The Morning News Savannah, GA
Article from The Morning News, November 5, 1891

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Article Text

BOSTON'S BROKEN BANK. A RUN ON A SAVINGS INSTITUTION FOLLOWS. The Savings Bank Solid and Able to Meet All Demands-The Maverick Ruined by the Speculations of Its President and Directors-Its Deals on an Immense Scale. BOSTON, MASS., Nov. 4.-There was a run to-day on the Five Cent Savings Bank, which has immense deposits. The banking room was crowded, mostly with women. The state savings bank commissioners say they have carefully examined the affairs of the institution and find it is perfectly sound. President Potter, of the failed Maverick Bank, was a simply a director of the institution, and had no other official p sition and absolutely no voice in the management of its affairs other than as a member of the board. President Evans of the bank says be will continue to pay out money until it is deemed advisable to take advantage of the sixty-day law. OFFERED A LOAN OF $500,000. One national bank has offered him $500,000, and he has received offers of large amounts from other institutions. The bank had $1,077,000 in cash at the date of the last statement, Oct. 13, but has been strengthening itself of late. The bank paid out $6,000,000 in the 1875 run, which lasted for a month. The present withdrawals are mostly small accounts. RUIN OF THE MAVERICK. The Journal says: "There is nothing in the affairs of the Maverick National Bank in which the clearing house committee of the Boston associated banks has not been fully advised. The committee has guarded every point. It arranged that Mr. Beale should be a receiver for well-considered reasons. The facts regarding the loans of the bank have been in the possession of the controller of the currency since last January. The general loan account, outside of the $2,400,000 due from the directors and the Evans losses, is good, and shows judgment and careful banking. The directors' loans have still considerable collateral behind them. Speculation is the one word that explains all-speculation in stocks and grain, with the Maverick bank funds backing the deals. THE FIRST PLUNGE. "The first great speculation of the Maverick Bank was by Messrs. French and Potter in the New York and New England railroad. It was successful from a pecuniary point of view, but in that success lay concealed the ultimate ruin of the bank. In the New York and New England mystery deal the bank funds were used to a startling degree and the system of operations then begun culminated in the ruin of the bank and all its directors. Although the Maverick has been known as a speculative bank, no one outside of Mr. Evans and the bank directors could have imagined the extent of its speculations. THE ONLY WONDER. "It is now not to be wondered at that when the death of Irving A. Evans was announced that President Potter, in the directors' room, should have physically collap ed; but it is & wonder, in the light of pres. ent reveletions, that he should for 80 many days have patched up affairs and stemmed the current. The Boston banks brought over Monday night many illions of their reserve held in New York, and are in a stronger financial position than they have been in a long time. Money will rule very easy on approved collateral."

4. November 5, 1891 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, November 5, 1891

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Article Text

Run on a Bank. BOSTON, Nov. 4.-The run on the Five Cent Savings bank continues this afternoon. The savings bank commissioners when they examined the bank declared it sound.

5. November 6, 1891 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, November 6, 1891

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TELEGRAPHIC BREVITIES. The large dry goods firm of Welss Brothers, of Galvesten. Tex., made an assignment yesterday, liabilities $450 000. The indications are there will be ethousand carloads of oranges to haul out of Callforoia during the com ng season. Mrs. Julia Taylor aged 75 years, the widow of the late Wm. Taylor, committed suicide at ber residence in Brooklyn early this morning by hanging herself to the bed post. A house at Lyon Mountain, Olinton coun ty, N. Y., occupied by a widow named Roleare, was yesterday destroyed by fire. Mrs. Rolsare's three-year old child perished in the flames. As B result of the democratic victory in I.wa, and the hope that the prohibition law will be soon repeated, & company will soon begin the construction of a large brewery at Sioux City. Glen Gardner's Law and Order Society, of Washington, N.J, on Tuesday night last treated an alleged disorderly woman to a coat of tar and feathers, and then warned her to be more careful of her conduct in the future. She has made complaint of her treatment to the authorit/es, and it is probablo that the arrest and punishment of those implicated In the aff:ir will follow. The matter has created great excitement all through that 860 ion of the State While hunting near Birmingham, Conn., yesterday Samuel French discovered 8 cow stuck in the mud, having been in that position three weeks, living on leaves that floated down the stream. Two yokes of oxen were necessary to drag her out. The Baker wire mil! at Lockport, Ill., closed last night. The fifty employees were locked out because they refused to leave the un ou. Official returns from 63 counties in Nebraska, out of 90 counties in the State, show a plurality for Post of about 5,500. The affairs of the Maverick Bank, of Boston, are being strsightened out as fast 88 possible under the circumstances. Senator Hiscock, of New York, denies that he has been tendered the portfolio of Secretary of War The run on the Five Cent Savings Benk, in Boston, is about over

6. November 6, 1891 The Sun New York, NY
Article from The Sun, November 6, 1891

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The Run on the Five Cent Bank Over. BOSTON, Nov. 5.-The run on the Five Cent Savings Bank is over. At 2 o'clock the five paying tellers stood smilingly at their desks and waited for more depositors to come in and draw out their money. but they did not come. Two or three straggled in and left deposits, a few curious people on the outside looked at the bank and were told to move on by the policemen, and the fears of the depositors were satisfied. The bank people had plenty of money. The crowd had appeared at the doors of the bank as early as o'clock this morning.

7. November 7, 1891 Fort Worth Gazette Fort Worth, TX
Article from Fort Worth Gazette, November 7, 1891

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OVER THEIR SCARE. The Five Cent Savings Bank Will Not Have to Close Its Doors. BOSTON, MASS., Nov. 6.-The run on the Five Cent savings bank continues this morning but in a smaller degree. President Evans says: The trustees have no intention now of taking any action under the sixty day clause, and the bank will pay cash to depositors when they desire it. The run is about over. Looking over our books we find that many people who have withdrawn their accounts are the ignorant class, mostly German Jews, and some could not write their own names. Less than 1 per cent of deposits were withdrawn the day the run was largest, and some who withdrew have to-day returned to deposit again.

8. November 7, 1891 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, November 7, 1891

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The Run on the Five Cent Bank. BOSTON, Nov. 6.-The run on the Five Cent Savings bank continues this morning but it is in a lessened degree. President Evans says the run is about over. Some who withdrew have to-day returned to deposit again. Less than 1 per cent. of the deposits was withdrawn on the heaviest day of the run.

9. November 9, 1891 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, November 9, 1891

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Bank Trouble. BOSTON, Nov. 7.-Comptroller] Lacey said this morning, concerning the published report from Washington, purporting to be information obtained at the comptroller's office, that he knows nothing whatever concerning any national bank in Boston being in any trquble. The run at the five cent savings bank has ended. Thomas Dana's bail has been reduesd to $40,000, and bondsmen secured. Lacey, Examiner Ewer and A majority of the clearing-house committee say that they know of no financial trouble in Boston outside the Maverick bank, and there is no examination in progress of any institution other than the Maverick by the comptroller, examiner and committee. SKIPPED WITH THE FUNDS. KANSAS CITY, Nov. 7.-The Maine Banking company did not open its doors for business this morning. The president of the bank is A. F. Blanchard, who is also manager practically of the whole bank. Blanchard quit the law business here a year ago, went east and secured $50,000 capital with which to start the bank, and organized a company with the following directtors: A. F. Blanchard, Horatio Blark of Maine; B. A. Harding of Blackstope, III., Captain F. B. Watts and W. C. Barry. Blanchard left for the east some days ago, and is now supposed to be in Canada. His continued ab. sence caused uneasiness among the bank's officers, and, at a meeting of the directors today, BLANCHARD'S ABREST WAS ORDERED by telegraph. He is charged with forgery and embezzidment. The directors charge that the whole capital of the bank is missing. Horatio Clark charges that Blanchard sold him 14 plece of property here which he (Blanchard) did not own, delivering to him a forged warranty deed. B. A. Harcing charges that he sent a large sum of money to Blanchard to be loaned, and Blanchard sent him forged securities, appropriating the money to his own use. Lawyer Luccock and an attorney for Bates College charges that $10,000 was recently sent to Blanchard by the college for investment and no trace of the money can be found.

10. November 10, 1891 The Evening Herald Shenandoah, PA
Article from The Evening Herald, November 10, 1891

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The Run Practically Over. BOSTON, Nov. 10.-It is stated that during the six days of the run on the Five Cent Savings Bank $791, 176 of the deposits were withdrawn. Everything is quiet at the institution to-day, and the amount of the withdrawals is not more than the average. Some of those who withdrew their deposits during the excitement have again deposited their funds with the bank. The run is now practically over.