7895. Five Cents 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
f24abdf3

Response Measures

Accommodated withdrawals, Books examined

Other: Bank is a savings bank (state-chartered). Run lasted several days and then ended; depositors returned.

Description

Multiple articles Nov 4–8, 1891 report a multi-day run on the Five Cents Savings Bank in Boston; examiners declared it sound, the bank paid out and continued operations, depositors later returned. No suspension or receivership mentioned. Cause attributed to panic/rumors (articles note ignorant Russian-Jew depositors and general excitement).

Events (1)
1. November 4, 1891 Run
Cause
Rumor Or Misinformation
Cause Details
Panic/rumors and public alarm (articles cite frightened depositors, 'Russian Jews' causing excitement), despite examiners declaring the bank sound; influenced by local bank failures in Boston context.
Measures
Bank paid out deposits as requested; trustees/board decided to pay all depositors who wanted their money; president said would continue paying until invoking the sixty-day law.
Newspaper Excerpt
The run on the Five Cents Savings Bank continues ... President Evans ... says he will continue to pay until it is deemed advisable to take advantage of the sixty-day law.
Source
newspapers

Newspaper Articles (10)
1. November 5, 1891 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, November 5, 1891

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Run on a Five Cents Navings Bank. BOSTON, Nov. 4. - The run on the Five Cents Savings Bank continues thisnfternoon. Thesevings bank commissioners, when they examined the bank declared It sound. President Evans, of the Five Cents Savings Bank says he will continue to pay until it is deemed advisable to take advantage of the sixty-day law. He received offers of large amounts from other institutions. The bank paid out six millions in 1875 in a run which lasted a month. The present withdrawals are mostly of small act counts.

2. November 5, 1891 New-York Tribune New York, NY
Article from New-York Tribune, November 5, 1891

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CALL MONEY RATES STIFFEN. A DEMAND FROM BOSTON EXPECTED BY BANKS IN THIS CITY. The most important effect yet caused in New-York by the suspension of the Maverick National Bank of Boston was the decided stiffening in call-money rates yesterday. There were no heavy shipments of money to Boston. but the New.York banks are expecting a demand from that city for part of the funds on deposit here. In order to prepare for the demand there was a liberal calling in of loans which led to an advance in rates to 6@10 per cent, with exceptions as high as 15 per cent. Bankers do not expect that these figures will be maintained, especially as large sums of foreign gold are about due. The European steamers which arrived over the election holiday brought $1,462,900, and there is known to be in transit for this port about $1,800,000. There was no uneasiness felt here respecting the reported run upon the Five Cents Savings Bank of Boston. The institution is strong and its conservatism is proverbial. Houses with Boston connections had reassuring telegraphic advices as to the situation in that city. Bankers concede, however, that as regards the Maverick National Bank much depends upon the way in which the assets are handled. It is believed that there are many securities behind the loans to President Potter and his friends, which if pressed on the market now would have to be sold at a sacrifice, while if they are nursed along may yield satisfactory results. Some surprise is expressed that the receiver appointed for the failed bank should be the president of a rival institution and a man who is said to have been inimical to Mr. Potter for a long time before the failure. Men who are somewhat familiar with the situation in Boston regret that the appointment had not gone to a person unconnected with the associated banks and free from the possibility of criticism on the point of personal jealousy or business self-interest. The National Banking Department has at times earned a deserved reputation for the skill with which its agents have extracted excellent results from assets that seemed most unpromising when the receivership began. It is believed by some bankers that the Maverick's position can be materially improved if there shall be a considerate and conservative handling of the loans and a stern resistance to any policy of hasty liquidation that would smack of a vulture feast.

3. November 6, 1891 The Roanoke Times Roanoke, VA
Article from The Roanoke Times, November 6, 1891

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TELEGRAPH FLASHES. The firm of Thomas Dana & Co., of Boston, wholesale grocers, have disolved, owing to Maverick Bank failure. Edward Y. Townsend, president of the Cambria Iron Company, died yesterday at his residence near Philadelphir, aged sixty-eight years. The run on the Five Cents Savings Bank in Boston street continues. At % meeting of the directors it was decided to pay all depositors who want their money as fast as possible. W. R. Strong & Co., of San Francisco, one of the heaviest uitshipping houses on the Pacific coast, coast, has made an assignment. Eight hundred and fifty boxes of choice cigars were seized on board the steamer City of Alexandria by New York custom officers yesterday. Two cars on the Mount Penn gravity railroad at Reading, Pa., were wreeked yesterday afternoon, killing Irwin Houck and injuring several people. Severe snow storms are raging in Bulgaria, in some cases the snow being ten feet deep. Many people have died from the effects of the cold, and thou sands of sheep and cattle have be en lost.

4. November 6, 1891 Telegram-Herald Grand Rapids, MI
Article from Telegram-Herald, November 6, 1891

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BOSTON'S BANK TROUBLES. Continued Kun on the Five Cente Savings Bank. BOSTON, Nov. 5.-The run on the Five Cents savings bank continues. People were standing in line at the door at 7 a. in. The doors are guarded to keep the bank from being overcrowded, and every hour they are opened to allow all the bank will accommodate to enter. No action has been taken by the trustees on the sixty day clause. Examiner Ewer reports that there is now $2,500,000 in cash in the Maverick bank vaults, and collections still coming in. Much of the paper in the assets will prove available and marketable. The firm of Thomas Dana & Co., wholesale grocers. has dissolved, owing to the Maverick bank's complications. The younger members hope to continue the business, backed by outside capital. It is stated that of the $400,000 borrowings of Dana & Co. from the Maverick bank Mr. Dana received only $100,000. The rest was received by the company. which will pay in full

5. November 7, 1891 The Providence News Providence, RI
Article from The Providence News, November 7, 1891

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Cannot Deposit Again. BOSTON, Nov- 7.-Now that the run on the Five Cents Savings bank is over, the frightened depositors are coming back one by one. The Russian Jews, that class which through ignorance have caused all the excitement, will not be permitted, it is said, to leave a nickel, for they are liable at any time to repeat the operation.

6. November 8, 1891 The Morning Call San Francisco, CA
Article from The Morning Call, November 8, 1891

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BOSTON, Nov. 7.-The run at the Five : Cents Savings Bank has ended.

7. November 8, 1891 Pittsburg Dispatch Pittsburgh, PA
Article from Pittsburg Dispatch, November 8, 1891

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CURRENT OPINIONETTES. NEW ORLEANS is said to be continually losing ground-by the slipping of the land into the Mississippi.-Boston Traveller. ONE effect of the Australian system will be to largely increase the number of people who write Christmas "Xmas."-Chicago Times. JERRY SIMPSON is a plagiarist but a truth teller when he says "we are the people. You are, Jerry: you are all there is left of them.-New York Commercial Advertiser. IN reply to the popular inquiry as to why the comptroller of the currency didn't look after the affairs of the broken bank more sharpiy, it may not seem out of place to observe that he was too Lacey.-Boston Heraid, IF Emperor William succeeds in his crusade against vice he will set the pattern of every ruler being his own Anthony Comstock. This will just suit William's uncle of Wales when he mounts the throne.Kansas City Times. DISPATCHES say that the run on the Five Cents Savings Bank in Boston continues. Such an undignified thing as a run on a bank in Boston is utterly unthinkable. It may be a rather quicker walk than usual, but that is all.-Chicago Tribune. BRAZIL, a Portuguese-American republic, may yet see the point of ex-Emperor Dom Pedro's joke about the revolutions of the Corliss engine fly-wheel at the Centennial Exposition, "that beats some of our SpanishAmerican republics."-Detruit Journal. GOVERNOR CAMPLELL, of Ohio, in acknowledging defeat, has a very funny consolation. He says the sentiment of the people was with him, and he seems to think the Republicans had money. Well, why did he not have free coinage of silver.-Brooklyn Union.

8. November 10, 1891 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, November 10, 1891

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THE MAVERICK BANK. A Gratifying Statement by Receiver Beal. BOSTON. Nov. 9.-Receiver Beal furnished the following as the state of the Maverick National bank as shown by its books at the close of business, Oct. 31, 1891: Resources - Time loans, $2,749,981; demands loan, $3,416,617; United States bonds at Washington, $50,000; United States bonds on hand, $33,650: sundry bond accounts, $722,947; sundry bond account No. 2. $108,504; called bonds for redemption, $100; real estate, $47,028; New York reserve agents, $288,842.05: furniture and fixtures account $42,637; sundry banks, $795,582; expense account, $12,263; interest account, $7,937; premium, $4,475; sovereign account, $114: exchange for clearing house, $331,452: specie, $337,838; legal tender, $597; reserve at Washington, 5 per cent fund, $2,250; other bills and charges, $137,972. Total, $9,687,846. Liabilities-Capital, $400,000; surplus fund, $800,000; profit and loss, $110,708; discount, $20,463; commission account, $4.55: profit telegraphic transfers, $212: dividends, $100; deposits, $2,951,992; certified checks, $48.029; certificates of deposit. $110,576: banks and bankers, $5,200,756; circulation, $45,000. Total, $9,687,846. As compared with Sept. 25, loans,had decreased in the month before the failure by $330,000. The bond account was reduced by $117,000. The cash with reserve agents had been reduced from $963,000 to $289,0000. and the loans to banks had come down from $1,041,000 to $796,000. Exchanges for clearing house were only $331,000 against $635,000 upon the previous date. Specie has been reduced from $647,000 to $337,000, but legal tenders had increased from $490,000 to $597,650. The deposits at the date of the bank's suspension, including certificates of deposit and deposits of banks and bankers, aggregated $8,260,000 as against $9,910,000 five weeks before, which shows a loss of $1,650,000 in deposits. of which $734,000 was a falling off in individual deposits and $500,000 a falling off in bank deposits. The Maverick had a very large business, its outward mail averaging from 600 to 800 letters per day, and the posting of 1,000 letters was not an unusual occurrence; but everything is found thus far to have been systematically conducted and all accounts balance up on the books. The only difference thus far announced is the inadequate collateral behind loans to the directors. There was no blanket endorsement on file, as has been stated. All the notes and endorsements were properly and regularly made within the letter of the law. Receiver Beal does not contemplate resigning the presidency of the Second National bank. To-day's statement is gratifying, in that it shows less than $2,000,000 of individual deposits outside of deposits of banks and bankers at the time of the failure. There was deposited with the assistant United States treasurer to-day a little upwards of $10,000 to the credit of the examiner. for the benefit of the creditors of the Maverick National bank. The comptroller says he did not say the Maverick bank depositors would receive 85 per cent. He said that the average dividend of all the banks he had settled was 85 per cent. At the Five Cents Savings bank everything is quiet to-day. Money is being deposited by those who withdrew their accounts during the run, and the drafts up to noon were no larger than usual. During the SIX days of the run there was withdrawn above deposits $791,176. On Saturday there was very

9. November 13, 1891 The State Herald Holyoke, CO
Article from The State Herald, November 13, 1891

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THE WORLD AT LARGE. the Itala, Rodmond, Chilian The case steam the against er, Parnellite has been the Cork, dismissed. candidate was de Parliament from large majority. y feated is He for by Flavin by making a satisfactory drives tite. the largest and progress Mr. walks Spurgeon toward daily and recovery. has a good ac appe- reage The state. of late Kansas wheat rains ever reports have known put it in in the fine condition are having for winter. Minnesota plowing immense indicates an that North the copious Dakota rains, and and wheat fall sowing in dispatch the region. Brazilian from Rio government of de 50 Janiero percent on says proEuropean poses that to impose products. a tax is A governmental o spiracy been discovered. all troubled The new to by overthrow Chilian revolutionls the government steamhas was ship The time hours. The just records Fulda from beat all of New her previous York passage to Gibeight days ralter. and California, eight has shipped londed a Vacaville, train of fifteen Chicago cars The ship at over is valued special with dried ment fruit to on wheat $30,000. from Chicannot find eago to and the demand in Hartford, Seats, Freight rates yet shippers meet been deal- ConTainter, liquor Judge has decided mnst that take out they ers license necticut, rs outside in each the State county in which $2. sell goods. Examiner Ewer Maverick reports bank Bank cash in the still coming in. Much of the 500,000 vaults and collections paper in assets will prove this marketable. Orange exports be 5,000 from carloads. California shipped. Last This year year fall 3,500 will 3,700 carloads carloads were of fruits have the been sent East. letter affecting Bank of credit Anonymous of has the excited First National some bank indignation is proChicago bankers, The Duluth of grain. among nounced At sound. nearly 6,000,000 100 vessels. bushels, Rates with are have increased capacity chartered to carry from out 4 to cents a bushel to Maverick Buffalo. National Bank ben as- deof the of $1,039,810 States has treasin urer sets posited the with sum Boston the United to the credit of the an bank's In Boston, depositors. Margaret herself Coghlan, to relieve at her her bedside night invalid, husband poisoned after from night watching and so deA runaway at the stroying his health. cattle train rate ran of into a mile New Albany, minute. and Indiana. It a wrecked train of care three and locomo- serbox motives lously injured two men. mail robbers notorious Charles in named Three Charles Thomas Diamond. Bacon have been robberies June Stratton captured in various and cities Atlanta. which exceed has Their $100,000. been prevailThe drouth Illinois since last rain. ing in been Central broken compelled by heavy to begin has Farmers have been earlier than usual. feeding During two Bank the months run in on Boston the Five The last Cents week bank Savings drawn out. again $791,176 was money back now receivir the itcan be received on is deposit Memphis as fast as Bar Association Criminal is greatly Dubois ordered into The exercised because Colonel George the of Judge Gautt. ..sweat a box" prominent for alleged attorney, contempt Somcourt father and his son named committed inA bankersat Berlin. same inmerfield, other day at the become been dishonest. solvent suicide stant. the and Their it bank is thought had that they had the men in Chicago ignore for violaThey summons Railroad of interstate the grand commerce jury appeal laws. their Supreme cases to the tion of will the be fined and Court and so evade the Wheat law. shipments from ever known Baltimore bein one season. will exceed anything Seventy vessels and January February to have fore been chartered carry 3,500,000 for bushels of grain to Europe. well known obtained Board of Lindbloom, Trade injunction man of the restraining Chicago, him has the stopping Board of an Trade from censuring sending out market telegrams him from from the board. in & Jones Five hundred in men Pittsburgh have their Laughlin's mills, wages reduced nine and to ten had day's their work increased is from now $1.35 for have quit wor work. hours. ten hours. Their Three pay hundred of themen who Colonel for the John October Mines. L. North E. L. Kooley's L. American D., biwrote extolling Dr. drunkenness. on Blackwell's chloride is Review dead. of He gold Island died cure in from the for the workhouse effects of Indiana, prolonged drunken spree. a young lady of Shelbyville of dog flesh A living on a cure diet for consumpThursday fair tion. began She last is as making a she ratherlikes progress she lamb. the diet. with her tastes task It is and something white says meat. a day. like and Hon. She says takes it three times by the Walter corn Since the dinner Phelps given the United meal and States William American minister, park at which to

10. December 15, 1891 Wood River Times Hailey, ID
Article from Wood River Times, December 15, 1891

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in the Back Bay, who had $100 deposited in the Five Cents Savings Bank. When the run on the bank began she asked for permission to go and draw out her money, and was informed by her employer that her deposit was perfectly safe where it was. In order to allay her anxiety, her employer told her that he would be responsible for the safety of her money, so that she would not lose anything, whatever happened. Nevertheless, the women persisted in her purpose, and after standing three days in the line, she drew out her savings, and they are now deposited in her bosom, which a great many women regard as the safest bank in the world.