Peoples Savings Bank (Detroit, MI)

Episode Information

Episode UID
8640984291122
Episode Type
Run Only
Bank Type
savings
Bank ID
864098429 hash
Start Date
June 13, 1893
Location
Detroit, Michigan (42.331, -83.046)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
bd3aa571cd09549d

Response Measures

None

Events (1)
1. June 13, 1893 Run
Cause
Macro News
Cause Details
Contagion from numerous failures of savings institutions elsewhere and general nationwide financial stringency triggered panic withdrawals.
Measures
Banks jointly invoked the statutory notice period (sixty/ ninety-day notice by-laws) to defer withdrawals and distributed circulars signed by 14 savings banks.
Newspaper Excerpt
When the doors of the People's Savings Bank, one of the largest in Detroit, opened at ten o'clock this morning an immense crowd of the people flocked in with the intention of withdrawing their deposits.
Source
newspapers

Newspaper Articles (11)
1. June 13, 1893 The Jersey City News Jersey City, NJ
Article from The Jersey City News, June 13, 1893

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DETROIT BANKS SCARED. The Sixty Day Rale Enforced To Stop Withdrawals Of Money. DETROIT, June 13, 1893. - For some time there has been an uneasy feeling in the banking atmosphere of this city occasioned by the numerous failures of savings institutions that have recently occurr ed throughout the country, especially in the West. Although until this morning there had not been a decided run on any of the savings banks of Detroit, considerable money has been withdrawn in a quiet way, and to forestal any movement that might resuit disastrously to them aua as an act of mutual protection, the officers of these iustitutions met last night and adopted the following notice to depositors that. in case ofruns, they would require the notice provided for in the by-laws of the several banks. When the doors of the People's Savings Bank, one of the largest in Detrole, opened at ten o'clock this morning an immense crowd of the people flocked in with the intention of withdrawing their deposits. They were handed copies of foregoing circular and told that their deposits would be paid in tullat the end of the specified time. sixty days. This seemed to allay the excitement somewhat. M. W. O'Brien, President of the People's Bank, was interviel wed by a reporter and had this to say of the situation:"There is really no occasion for this excitement. The contagion is spreading eastward and saving depositors here, feeling anxious about their money have been quietly withdrawing it for some time. To stop this needless withdrawal of deposits and locking up of currency in a time of financial striugency, we have taken this action to allay fear and protect ourselves."

2. June 14, 1893 Grand Rapids Herald Grand Rapids, MI
Article from Grand Rapids Herald, June 14, 1893

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Small Depositors Becomo Very Much Alarmed AND ATTEMPT TO DRAW FUNDS The Ninety-Day Law Is Used by the Bank and Bix Deposite Re. store Confidence. DETROIT, Mich., June The Peo bank stood a run today it well. The and ple's stood Savings financial about excite the ment which has been shifting country for the past few weeks struck Detroit yesterday afternoon and with out the faintest rhyme n reason fun tened itself on the People's In the course of the day's business over 865,000 out and 200 accounts closed. is usual in such cases the As paid informed frightened and depositors were the poorly whose small all was the bank. before ignorant, Long banking hours crowded in this Griswold street was excited. fearful, with morning an bent gesticulating with mob, most of whom were on their money at the pos sible Most of were drawing opportunity. earliest them reason women, who could give no for for the panic which had reized them. All the more incomprehensive was it because the run was on the oldest and the strongest savings institutions in city. In view of yesterday's experience, when the banks opened for business,the officials handed each depositor a notice of signed by the fourteen savings banks city that in view of the uneasiness the each bank would take advantage of ninety day law. Restoring Confidence. When the ela morous depositors at the teller's window were informed with paying that no savings deposits could be of drawn for ninety days, the majority them turned away ceemingly satisfied. Many of them were so ignorant that they but did not know what it all meant, turned away satisfied. At the receiving teller's window in a stream of depositors were paying These were the more intelligent did much money. business men. and their action savings restore confidence. Every to bank in town sent support to the people. thick Detectives and policemen were as crooks. flies to anticipate the work of different as depositors argued with and Heavy and told the excited men in groups that the bank had $13,000,000 women in the safe, $6,000,000 accounts more mortgages was needed to pay all effect than statements had the desired thinned Such and by afternoon the crowd had out. What Caused the Fright. subducd uneasiness has been "This for about five weeks past, W. O'Brien, said the same feeling of uneas prevalent M. "It is president of the the has been felt all over be and there is good The Detroit would escape with iness bank. country. that that reason it. to lieve tidal wave of fright began Chipresent Milwaukee bank, then it reached to feel a and we are now beginning adcago, Detroit. Our reason for taking is that it in of the ninety-d notice paying vantage satisfied that a reckless to the we are deposits would be ruinous It is business out of interests of Detroit. simply always ruinous to pay out This money uneasiness for hourding purposes. to the Atlantic from the the is on its way trouble originated in to rewest. The with the attempt last congress. the Sherman law. Nothing excitement was peal and then the in New York.' done was transferred there, to Wall street, Detroit Banks Are Solid. is no question but that there and is There in the money market. among a stringency has caused uneasiness banks of the that those it depositing Commissioner in the Sherwood and state," said reports of both state May "From the banks made to me conthe should be national banks of the state in no good uneasi for the have ness dition. find among and there depositors last year securities by the banks the in value, for as certainly taken not depreciated low or lower than they have they are been now for many years on past. confidence. Banking is built up of Detroit the banks of every de and certainly have the confidence conservatively and should positor. for they are I certainly would honestly managed. advantage of the ninety as advocate taking of excitement, just citiday rule advocate in times martial law wild when with zens, I would usually peaceable. are excitement. "No bank can sustain should itself it in allow a pro- un- for tracted of usual demands run. out neither to of be even made one quarter upon banks it. and the the deposits drawing of the the game Detroit from active eirturing the retiring would of paralyze every in manufac the city culation and business interest those who and cause distress these interests among for a liveli- citi depend hood. It is upon to the these interest times of to stand b every our and zenof support Detroit the in lifeblood banks. because of the to com- flow finances are the should be allowed chan unrestrained munity, and through the regular nels of business.

3. June 14, 1893 New-York Tribune New York, NY
Article from New-York Tribune, June 14, 1893

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When the doors of the People's Savings Bank, one of the largest in Detroit, opened at 10 o'clock this morning, an immense crowd of people flocked in with the intention of withdrawing their deposits. They were handed copies of the foregoing circular and told that their deposits would be paid in full at the end of the specified timeninety days. This seemed to allay the excitém nt somewhat. M. W. O'Brien, president of the People's Bank, was interviewed by a reporter and had this to say of the situation: "There is really no occasion for this excitement. The contagion is spreading eastward, and savings depositors here, feeling anxious about their money, have been quietly withdrawing it for some time. To stop this needless withdrawal of deposits and locking up of currency in a time of financial stringency, we have taken this action to allay fear and protect ourselves. " It was not for the want of money that we took this action, for we could have secured enough to have paid every depositor, but we did not think this the wisest plan." At the People's Bank things began to quiet down when it was seen there was no occasion for alarm. A long line of business men making heavy deposits had much to do toward quelling the excitement, and everything is comparatively

4. June 14, 1893 Asheville Daily Citizen Asheville, NC
Article from Asheville Daily Citizen, June 14, 1893

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HAS A MILLION DOLLARS on a New York City Saving Bank. NEW YORK, June 14.-Arun started on Irving's bank this morning almost as soon as the doors of the place, No. 96 Warren street, were opened. The line kept constantly increasing and in a very short time the little room in which the savings bank does its business was completely filled with depositors whose faces showed their great anxiety over their savings. In twenty minutes the paying teller had paid out $7,500. Treasurer G. B. Latimer said the bank had in hand a million dollars and could get that much more if necessary at a moment's notice. PAINESVILLE, O. June 14.-This morning the Lake county bank of Aaron Wilcox & Co., posted a notice on its doors as follows: "This bank has suspended temporarily, being unable to meet the run on it at present, owing to the stringency in the money market. All depositors will be paid in full." NASHVILLE, June 14.-The Nashville Savings company filed an assignment last night. Liabilities $282,876; assets about $125,000. DETROIT, Mich., Juue 14.-The 1 State bank, of Crystal Falls, Mich., has suspended. A run was started this morning upon the People's Savings bank, one of the strongest in Detroit, but a sixty-day notice checked it.

5. June 14, 1893 The Madison Daily Leader Madison, SD
Article from The Madison Daily Leader, June 14, 1893

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Three Cities Forcibly Feel the Results of Depression In Financial Circles. A Scare Among Small Depositors at Detroit, Omaha and Kansas City. One National Bank at Omaha Gives Notice of Suspension-Failure at Crystal Falls. DETROIT, Mich., June 14. -The financial excitement, which for several weeks has made things lively for banks all over the country, has at last reached Detroit. It comes in the form of lack or confidence among the more ignorant depositors of the savings banks. The excitement began Monday afternoon, but has been greatly increased. The People's Savings bank-among the very strongest in the city - is the center of the throng. It was packed with a clamoring crowd all the morning, and throngs were drawn up in line on both sides of Griswold street in front of it. A long line of excited people were drawn up in front of the bank waiting for the doors to open, and the officials decided to take advantage of the 30 day notice by law. and distributed circulars signed by 14 savings banks of the city, announcing that in the event of unusual demands upon them, and to insure equal protection to all depositors to require the notice provided for in the by-laws of the several banks. All the officers of the savings banks in the city have flocked to the support of the People's and everything possible has been done to quiet the uneasiness. The People's Savings bank has a capital stock of $500,000. It last report showed a surplus of $125,000, and undivided profits of $73,258. It has $6, 283, 775 in savings deposits, and $609,054 of commercial deposits.

6. June 14, 1893 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, June 14, 1893

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Savings-Bank Runs. [By telegraph to the Dispatch.) OMAHA, NEB., June 13.-There was P. run on every savings bank in the city this morning, precipitated by the failure of the McCague savings Bank yesterday. followed by the downfall this morning of the American National Bank in which the McCagues are largely interested. it was unofficially stated yesterday that the Clearlog-House Association would stand by its members, of which the American National 18 one, but when the assets of the American National Bank came to be examined they were pronounced not good enough. and the aid of the associated banks was withheld. At the Omaha Savings Bank, the German Savings Bank. the American Savings Bank, the Globe Loan and Trust Company, and other institutions there was a steady drain of deposits all day. Cash was paid out 498000 as called for, and there was no apparent limit to 11. Senator Manderson and Vice-President Kimball, of the Intoa Pacine, directors of some of the banks, made speeches to the excited depositors. guarentering them their money, but the runs continued. The Dinne Savings Bank compelled 118 depositors to give sixty days' notice of withdrawal. This action. together with the promptness with which the other banks met all demands, 13 believed to have stopped what almost promised to be a panic. KANSAS CTTY, Mo., June 13.-As a result of the suspension yesterday of the People's Savings Bank. an insignificant institution with deposits of only $25,000. a run was started this morning on the Kapeas City Safe-Deposit and Savings Bank. The bank took advantage of the clause of its by-laws requiring depositors to give thirty days notice of the withdrawal of deposits. That checked the run. and at BOOD it was practically over. None of the other tanks experienced a run. Just why the Kansas City Sate-Deposit and Savings Bank should have been selected for run is a mystery. It 18 the largest and one of the soundest institutions of the kind iu the State, and has the confidence of banks and merchants generally. DETROIT. June The officers of all the savings banks in this city agreed to enforce the time limit upon withdrawals of deposits A run was started this morning upon the People's Savings Bank one of the strongest in Detroit, but the sixty-day notice requirement checked it. The bank officers concur 111 the statement that "It was not for the want of money that are took this action. for we could have secured enough to have paid every depositor, but we did not think this the wisest plan."

7. June 14, 1893 Grand Rapids Herald Grand Rapids, MI
Article from Grand Rapids Herald, June 14, 1893

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BANKS ARE SOLID Yesterday the tail-end of the money scare struck Detroit, and a "run" was made on the People's Savings bank Every depositor was promptly paid, and before night public confidence was so completely restored that no apprehensions of further uneasiness were entertained. During the day, however, act. ing upon the suggestion of Bank Commissioner Sherwood, all the banks united in a notice, which was published in the newspapers, stating that they would require the ninety day notice provided by law of the intended withdrawal of deposits. This action will prevent an unexpected rush and enable the banks to allay needless fears of loss. The more intelligent depositors understand the situation and feel perfectly secure. The savings bank business is so conducted that a heavy loss is impossibie. The banks receive money in small suns, on which they pay a fixed rate of interest, and loan the same money in large amounts, on which they receive a higher rate of interest. The difference in the interest rates is the banks' profit. The small depositor is first secured by the gross capital stock of the bank: secead, by the individual liability of the stockholders to the value of their stock; and third, by the gilt edge mortgages on real estate, which are exacted as security for the leans made by the bank. The security of the depositors, therefore. is three-fold. The banks are required by law to keep on hand at least 15 per cent of their deposits. The other 85 per cent may be loaned on approved securities. It is easy to see that a bank having only 15 per cent of its deposite in hand, the remaining 85 per cent being tied up in mortgages, could be forced to surrender on a spirited run, although it could pay dollar for dollar out of its real assets. Our own banks are so well prepared to meet all demands, and their resources are so abundant, and the public is so well. satisfied that no danger of loss threatens. that no excitement of any kind is visible or likely to arise.

8. June 14, 1893 The World Martinsburg, WV
Article from The World, June 14, 1893

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A GREAT BANK COMBINE. / Precautionary Measures Taken at Detroit, Mich. Fourteen Savings Depositories Sign an Agreement to Insure Equal Protection to All, and the Sixty Days' Notice That They Are Entitled to will Be Taken Advantage Of -This Movement Stops a Ran on a Bank. DETROIT, Mich. June 12-For some time there has been an uneasy feeling in the banking atmosphere of this city, occasioned by the numerous failures in savings institutions that have recently occurred throughout the country, es+ specially in the west. Although until Tuesday morning there had not been a decided run on any of the savings banks of Detroit, considerable money has been withdrawn in a quiet way, and to forestall any movement that might result disastrously to them, and as an act of mutual protection. the of ficers of these institutions met Tuesday night, and adopted the following notice to depositors: "There has recently been developed in our city an uneasiness among savings depositors which has been (without cause) directed against some of our strongest banks. To stop the needless withdrawal of deposits and the locking up of currency in a time of financial stringency, the undersigned banks respectively decide, in the event of nnusual demands upon them, and to insure equal protection to all their depositors, to require the notice provided for in the by-laws of the several banks. We would therefore ask our depositors to review the situatien calmly and accept with patience our action, which is taken in our mutual interest and for the benefit of the community at large. "People's Savings bank. "Michigan Savings bank. "Detroit Savings bank. "Citizens' Savings bank. "Home Savings bank. "City Savings bank. "Wayne County Savings bank "Central Savings bank. "Detroit River Savings bank. "Peninsular Savings bank. "Dime Savings bank. "German American bank. "American Banking and Savings Association. "State Savings bank. When the doors of the People's Saving bank, one of the largest in Detroit. opened at 10 o'clock Tuesday morning an immense crowd of people flocked in with the intention of withdrawing their deposits. They were handed copies of the foregoing circular and told that their deposits-would be "paid in full at the end of the specified time sixteen days. This seemed to allay the excitement somewhat. M. W. O'Brien, president of the People's bank, was Interviewed by an associated press representative and had

9. June 14, 1893 Fort Worth Gazette Fort Worth, TX
Article from Fort Worth Gazette, June 14, 1893

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IN GOOD CONDITION. Detroit. Mich., June 13.-For some time there has been an uneasy feeling in the bank atmosphere of this city, oceasioned by the numerous failures in sityinga institutions throughout the country, especially in the West. As an net of mutual protection the officers of both savings institutions met last night and adopted a notice to depositors that to insure protection to all they would require notice of withdrawal. When the doors of the Peoples Savings bank opened today a crowd flocked in. They were handed copies of the resolution. This seemed to allay the excitement somewhat. A large line of business men making heavy deposits did much toward quieting the excitement The deposits in the Peoples Savings bank are over $6.000,000. State Banking Commissioner Sherwood pronounces it and the other savings banks in the city in first class condition.

10. June 15, 1893 New-York Tribune New York, NY
Article from New-York Tribune, June 15, 1893

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RUNS ON SAVINGS BANKS SUBSIDE. Detroit, June 14.-A better feeling prevails on Griswold-st. to day. but there was still a large crowd waiting for admission to the People's Savings Bank when the doors were thrown open for business. It was composed almost entirely of worrel, interspersed with a few laborers. Many Detrolt business men aided in the work of restoring configence, by personally talking with depositors in the bank corridors and advising them to go quietly home and allow matters to assume their normal condition. By noon the fever of excitement had noticeably diminished. Omaha, June 14.-The runs on the Omaha Savings bank subsided this morning almost as quickly as th y began yesterday. Early there were a few depositors at the Omaha Savings Bank demanding their money, but as SOOD as it became apparent that the rusb was over, anxious ones left without taking their cash.

11. June 15, 1893 The Sauk Centre Herald Sauk Centre, MN
Article from The Sauk Centre Herald, June 15, 1893

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RUNS ON BANKS. Three Cities Forcibly Feel the Results Depression In Financial Circles. Scare Among Small Depositors at Detroit, Omaha and Kansas City. One National Bank at Omaha Gives Notice of Suspension-Failure at Crystal Falls. DETROIT, Mich., June 14. - The financial excitement, which for several weeks has made things lively for banks all over the country, has at last reached Detroit. It comes in the form of lack or confidence among the more ignorant depositors of the savings banks. The excitement began Monday afternoon, but has been greatly increased. The People's Savings bank-among the very strongest in the city - is the center of the throng. It was packed with a clamoring crowd all the morning, and throngs were drawn up in line on both sides of Griswold street in front of it. A long line of excited people were drawn up in front of the bank waiting for the doors to open, and the officials decided to take advantage of the 30 day notice by law, and distributed circulars signed by 14 savings banks of the city, announcing that in the event of unusual demands upon them, and to insure equal protection to all depositors to require the notice provided for in the by-laws of the several banks. All the officers of the savings banks in the city have flocked to the support of the People's and everything possible has been done to quiet the uneasiness. The People's Savings bank has a capital stock of $500,000. It last. report showed a surplus of $125,000, and undivided profits of $73,258. It has $6,283,775 in savings deposits, and $609,054 of commercial deposits.