8038. banks of Boston (Boston, MA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
September 1, 1893*
Location
Boston, Massachusetts (42.358, -71.060)

Metadata

Model
gpt-5-mini
Short Digest
001ec45c

Response Measures

None

Description

Articles are discussing the nationwide panic of 1893 and state that the great banks of New York, Boston and Philadelphia have practically suspended. This is a general statement about the Boston banking community rather than a single named institution. No individual bank run or permanent closure is described; the cause is the national financial panic (macro_news).

Events (1)
1. September 1, 1893* Suspension
Cause
Macro News
Cause Details
Part of the nationwide financial panic of 1893 leading to widespread distrust and hoarding of currency; banks 'practically suspended' operations according to the articles published in early September 1893.
Newspaper Excerpt
The great banks of New York, Boston and Philadelphia have practically suspended.
Source
newspapers

Newspaper Articles (3)
1. September 2, 1893 The Ketchum Keystone Ketchum, ID
Article from The Ketchum Keystone, September 2, 1893

Click image to open full size in new tab

Article Text

ity that the panic spread all over the country. WALL STREET CHEATED THE PANIC. A general distrust of bank and financial institutions seized the whole people and an unexampled hoarding of currency began in all parts of the country. The result is that the nation is now undergoing a financial stringency such as was never seen here before, and like retributive justice, the severest sufferers of all are the financiers of the Atlantic cities who inaugurated and created the panic. The great banks of New York, Boston and Philadelphia have practically suspended. and the work of furnishing currency to those who have workmen to pay is relegated to brokers, who sell at premium. NEW YORK BANKS SOLVENT. The New York City banks have now some $37,000,000 of Clearing House certificates, which is a species of currency that is good between the banks themselves. Checks and drafts on Boston, New York and Philadelphia are selling in Chicago at from $15 to $30 per $1,000 discount, and go begging at that. Over $25,000,000 of gold has been imported since July 1st, but still these great banks are not able to resume their old relations with the banks of the country. They undertook to teach the West a lesson and require them to pay up, but they found that the West is the great source of the wealth of the country, and that from the West come the exports of foreign countries, and that the money of foreign countries must come West in order to secure those exports. They have found, too, that the West is full of able and independent business men, S who do not find it necessary to 1 simply imitate their brothers of the East. EASTERN BANKERS' CRIMINALITY. These great financiers of the East undertook to teach the nation a lesson, showing the folly of bimetallism+ and have simply demonstrated their own inefficiency as business men and worked irrepara ble injury to the whole country The gold that they aided to get away to Europe is returning, but it f comes to pay for the exports of the West. The same men and their allies undertook to make things easy for Mr. Cleveland, but have only succeeded in rousing animosities that will make the success of his administration more difficult and 7 S make monometallism more hated h than ever. Whatever the actual result of present contentions, there is a lesson in the present situation to all those who would have the whole t country pay them tribute.-Chicago Inter-Ocean, August 20th.

2. September 8, 1893 The Great West Saint Paul, MN
Article from The Great West, September 8, 1893

Click image to open full size in new tab

Article Text

of the nation, their influence was so depressing to enterprise and prosperity that the panic spread all over the country. A general distrust of banks and financial institutions seized the whole people, and an unexampled hoarding of currency of all kinds began in all parts of the country. The result is that the nation is now undergoing a financial stringency such as was never seen here before, and, as if ordered by retributive justice, the severest sufferers of all are the financiers of the Atlantic cities who inaugurated and created the panic. The great banks of New York, Boston and Philadelphia have practically suspended, and the work of furnishing currency to those who have workmen to pay relegated to brokers who sell it at a premium. Chicago is the only great city of the nation where the banks honor all checks, and pay every depositor currency as asked for. The New York city banks have now some $38,000,000 of clearing house certificates, which are a species of currency, unknown to the law, that is good between the banks themselves. Checks and drafts on Boston, New York, and Philadelphia are selling in Chicago at from $15 to $30 per $1,000 discount, and go begging at that. Over $25,000,000 of gold has been imported since the first of July, but still these great banks are not able to resume their old relation with the banks of the country. They undertook to teach the west à lesson and require them to pay up, but they have found that the west is the great source of wealth of the country, and that from the west come the exports to foreign countries and that the money of the foreign countries must come west in order to secure these exports. They have found, too, that the west is full of able and independent business men, who do not find it necessary simply to imitate their brothers of the east. These great financiers of the east undertook to teach the nation a lesson, showing the folly of bimetallism, and have simply demonstrated their own inefficiency as business men, and worked irreparable injury to the whole country. The gold that they aided, to get away to Europe is returning, but it comes to pay for the exports of the west. The same men and their allies undertook to make things easy for Mr. Cleveland, but have only succeeded in rousing animosities that will make the success of his administration more difficult and make mono-metalism more hated than ever. Whatever the actual result of present contentions, there is a lesson in the present situation to all those who would have the whole country pay them tribute."

3. September 14, 1893 Iuka Reporter Iuka, MS
Article from Iuka Reporter, September 14, 1893

Click image to open full size in new tab

Article Text

AT THE CAPITOL. A Full Synopsis of What Has Been Done at Washington the Past Week. SENATE TWENTY-FIFTH Day.-The House joint resolution making the 18th of September, 1893 a holiday within the District of Columbia was, passed. The corner stone of the capitol of the United States was laid on that day one hundred years ago. Mr. Gallinger of New Hampshire introduced a bill supplemental to the pension act of June 27, 1890. The most important provision contains these words: "except in cases of established fraud no pension shall be suspended or withheld until after notice of ninety days given to the pensioner, and after a full and impartial in. vestigation." Mr. Butler of South Carolina, offered an amendment to the bill repealing the Sherman It provides for the repeal of the 10 per cent. tax on State bank circulation, provided that such circulation be secured by currency or approved State or municipal bonds. A resolution was offered proposing that the Senate adjourn as a mark of respect to Labor Day. but it was voted down by a large majority. Mr. Kyle of South Dakota, offered a free coinage amendment to the repeal bill. Mr. McCullom of Illinois addressed the Senate in favor of a bill to repeal the purchasing clause of the Sherman act. Mr. Coke of Texas. was the next speaker. He was in favor of free silver. After the close of Mr. Coke'sthe Senate went into executive session. At 4 o'clock they proceeded with the consideration of the House bill to repeal the Sherman act. Mr. Peffer addressed the Senate until the hour of adjournment. TWENTY-SIXTH.-Mr. Morgan introduced a concurrence resolution for the appointment of a joint committee of the two houses consisting of seven Senators and members. These together are to constitue a joint Senate committee on financial affairs. It is to hold its sessions in the capitol or anywhere the majority may select, with power to hear witnesses and employ stenographers. The committee is to examine into the financial and monetary condition of the government and the people of the United States. The committee is to examine into these subjects and report upon them: The full or partial demonetization of legal tender silver coins and the ratio which should be established between the silver and gold coins; the revision of laws relating to the legal tender, 80 as to prevent unjustdiscrimination in the several kinds of money; the repeal of the 10 per cent tax on on the issue of state banks; the actual causes of the present stringency. The resolution was laid on the table to be called up later. Mr. Peffer finished his speech of yesterday and was followed by Mr. Stew in a speech opposing the repeal bill. He spoke for three and one-half hours and the silver men in order to give him a breathing spell moved the Senate go into executive session The motion prevailed. During the executive session a motion was made to adjourn which was opposed by the repeal forces but the motion prevailed, and the silver men claimed two victories within one hour. TWENTY-SEVENTH Day.-Among the bills introduced and referred was one by Mr. Collum to repeal all ac S providing for the creation or the maint nance of the sinking fund. Mr. Morgan addressed the senate at considerable length in favor of special committee resolution. The repeal bill was brought before the senate again and Mr. Stewart resumed his speech of yesterday. He continued his speech until 5 o'clook, when, after a short executive session, the senate adjourned. TWENTY-EIGHTH Day.-Among the numerous resolutions presented and referred was one by Mr. Wolcott (Rep.) of Colorado for the immediate repeal of the McKinley tariff bill. At 12:45, after several unimportant resolutions had been read and referred, the repeal bill was called up, and Mr Stewart yielded the floor to Mr Walthall of Missiseippi, who had previously signified his intention to address the house today. He was In favor of bimetalism. At the conclusion of Mr Walthall's speech Mr Stewart again took the floor and proceeded with the third instalment of his speech. He held the floor notil 4:15, when Mr Daniel of Virginia went over, and whispered a word in his ear, when, to the astonishment of all, he announced that he would now close his speech. The senate at once went into executive session, and at 5 o'clock adjourned, TWENTY-NINTH DAY-Speeches from democratic senators in the senate today on the repeal bill were made by Mr Faulkner of West Virginia, Mr Turpie of Indiana, Mr Jones of Arkansas. All of them were in favor of the repeal of the Sherman act, but coupled with the condition that silver should be restored to the position which it occupied prior io the demonetization act of 1873. After which the senate proceeded to executive business and at 4:50 o'clock adjourned. THIRTIETH DAY-The first two hours of today's session in the senate were consumed in discussing a resolution offered by Mr Peffer, to inquire into the refusal of the banks or New York. Boston and Philadelphia to pay the checks of their depositors in currency. The remainder of the day was occupied by Mr Teller in a speech, most which was devoted to a denunciation of the newspaper press of the country. especially the metropolitan part or, for its impudance and mendacity. He had not concluded his speech when the senate at 4:50 p. m adjourned. HOUSE. TWENTY-SEVENTH Day.-After three days of rest the house again assembled today, but there was only a small attendance when call ed to order. The new code of rules was brought before the body after the formal opening and occupied the better part of the day. After a few more amendments they were adopted as a whole. Mr. Harderson of Iowa, who was standing beside the petition box, dropped in the first petition. After the adoption of the rules, Speaker Crisp announced that it would be in order for the members to send in their bills and resolutions to the Speaker's desk for printing and refer. ence. Immediately every page on the floor was converted into a me-senger, and many members themselves bore their bills to the Seturday front. At 3:50 the house adjourned until THIRTIETH DAY.-The Speaker called a very slim house to order today, and it was a very languid one, with no marked desire to transact business. The only action worthy of mention was a report from the committee on elections by Mr. Pavnier, of a resolution granting the right to Mr. Belknap, claiming a seat from the Fifth Michigan District, to file notice of contest against Mr. Richardson the sitting member. Mr. Paynter said that this was the unanimous report of the committee. and the resolution was adopied with. out objection. The spa ker then called the committees for reports but the call was unpropuctive; and on motion at 12:30 the house adjourned until Mondav.