Sherman National Bank (New York, NY)

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Episode Information

Episode UID
892201294
Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
89220 national
Charter Number
8922
Start Date
October 30, 1907
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
a911263dda7c8a0c

Response Measures

None

Description

Article text with the reopening line is truncated.

Events (4)
1. October 19, 1907 Chartered
Source
historical_nic
2. October 30, 1907 Suspension
Cause
Macro News
Cause Details
Systemic money panic in New York during the 1907 financial crisis led banks to suspend specie payments and issue clearing-house certificates.
Newspaper Excerpt
the stoppage of such payments by the banks in New York
Source
newspapers
3. November 6, 1907 Reopening
Newspaper Excerpt
The Sherman National bank opened in New York Wednesday with three
Source
newspapers
4. June 26, 1919 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (13)
1. October 30, 1907 The Madison Daily Leader Madison, SD
Article from The Madison Daily Leader, October 30, 1907

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SCARE IS SUBSIDING Runs Upon New York Banks Practically Cease. STOCK MARKET UNSTEADY Calling in of Loans Causes a Decline in Prices, Canadian Pacific Leading in the Slump-Worldwide Scramble for Gold. New York, Oct. 30.-The financial situation is without notable developments. and the abating interest indicates that the public has pretty well gotten over its scare. The stock markets is a little unsteady, but without extreme agitation. The announcement at the ImpeS rial bank of Germany a raised its discount rate from 5 1/2 to 6 1/2 per cent in order to protect its gold holdings was not unexpected by bankers here. It is thought quite likely that the Bank of England will follow suit by raising its rate at the regular meeting on Thursday. The scramble for gold is such at all the financial centersLondon, Paris, Berlin and New York -that the metel will go to the highest bidder and under present conditions New York is likely to appear for a time in this role. Her ability to get gold is due not only to the need for it, but to the large credits which are being established by the movement of the crops and other products-notably wheat, cotton, copper, tobacco and meats-and by the sale of American securities. These influences are usually more potent than artificial measures to obtain the yellow metal. It is believed this will be effective to place sufficient gold at the command of the New York market and to maintain credit and cause the resumption of banking operations in the usual manner within a few days. Runs upon the banks here have practically ceased since the banks adopted the policy of paying large depositors in checks. Some transfers of accounts are being made from the smaller to the larger banks, which resulted in adverse balances against the former, but strengthening the ability of the larger institutions to meet pressure and to support the market.

2. November 7, 1907 Burlington Weekly Free Press Burlington, VT
Article from Burlington Weekly Free Press, November 7, 1907

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VERMONT NOTES The schools of Rutland town have 165 pupils. Coal in Barre has been advanced 25 cents a ton. The annual district meeting of the Rebekah lodges of district No. 6, will be held Friday evening with Naomi Rebekah Lodge of Bradford. The Barre Merchants' association wants cleaner money in circulation there and a committee has been appointed to take the matter up with the banks. Miss Lena Britton of Springfield has won a $300-prize offered by the president of the American Humane society for the best essay on anti-vivisection. The eye and ear test in the public schools of Windsor shows that of the 293 examined 69, or nearly 23.5 per cent., were defective in one or both senses. The corn canning factory at Windsor. the largest in the country, has increased the price that will be paid farmers for next season's crop from $14 to $16 a ton. Senator W. P. Dillingham will address the Men's League of the Congregational Church in Rutland, Wednesday evening. November 13, on the immigration question. Frank S. Clark of Northfield, who has been commandant at Jordan hall. St. Albans, has been appointed by the court of chancery temporary receiver of the school. The women of the Methodist Church in Rutland cleared $85 from their rummage sale last week. The Epworth League conducted the sale of the final day and took in about $41. A jury of substantial weight will decide the fate of William Fairbanks, now on trial in Windham county court at Newfane. The 12 men tip the scales at 2,107 pounds, almost a long ton. Fifteen-year-old Lyle Baker of Barre has been sent to the industrial school for the remainder of his minority. It is alleged that he stole $30 from his father and several banks belonging to children. Arthur G. Hyland of Rutland may be lame for life as the result of being kicked by a horse. The accident happened in Shrewsbury and Hyland's leg was broken just below the hip. Rutland is to experience a revival of roller skating. a rink being opened there this week on the third floor of the new Hulett block on Merchants row. This is the largest hall in the city. The census of Catholics in the village of Brattle has been completed by *1 women of the Altar society of that church. The total number was found to be " which 000 were females. Two good cows and a two-year-old steer have mysteriously disappeared from pastures in Barnard. Search has revealed no trace of their wherabouts and no breaks in fences have been found. Dr. Millington of South Londonderry has a twin brother who lives in Harrisburgh, Pa. The latter has been visiting the doctor and together they have had a raft of fun fooling people as it is well night impossible to tell them apart. Acting under instructions from the State board of health, Health Officer C. G. Abell of Enosburgh Falls has inspected the slaughter houses and meat markets there and found them in good condition. The Rev. Charles T. Lewis, rector of the Episcopal Church at Poultney, is dead of heart failure, aged 38 years. He came to Vermont from Colorado three years ago. A wife and daughter survive. The funeral was held yesterday. The Sherman National bank opened in New York Wednesday with three

3. November 22, 1907 Lewiston Evening Teller Lewiston, ID
Article from Lewiston Evening Teller, November 22, 1907

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Chicago banks are ready to resume cash business and will do so whenever New York banks consent and co-operate. The magnates who have been asking the people to have confidence can now reciprocate and loosen up the wheels of trade bot' east and west. It was the east that locked the doors on western reserves and started the flurry among western institutions. but in spite of that the west has had no run on its. banks and has only used due precaution In guarding its cash waiting for the east to get over its scare and resume normal business relations. New York can very properly be instructed that the only proper way to resume is to resume.

4. November 22, 1907 The Stark County Democrat Canton, OH
Article from The Stark County Democrat, November 22, 1907

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CANNON Arrives in Washington With Cheerful View of Financial Situation SAYS NATION IS SOLID Washington, Nov. 21.-Joseph G. Cannon, of Illinois, speaker of the house, arrived here to day looking in fine health and very optimistic as to the financial and business outlook. "A great many plans have been proposed to relieve the money stringency," said Speaker Cannon. "In fact there are as many plans as there are people advocating them. In other words, there is a confusion of ideas as to what emergency legislation might be necessary. Before making up my mind as to what should be done, I prefer to await the recommendations of the president and the secretary of the treasury and the appropriate committee that has jurisdiction over the subject." Discussing the situation generally the speaker said: "The masses of the people in the United States never were so rich as they are today. The cotton, the corn, the wheat and the meat produced this year and now waiting to be marketed are of the value of at least ten billion dollars, and the people who produced them are substantially out of debt. There is a demand for the great bulk of these products in the United States and there is a demand for all we have to spare in the markets of the world at extraordinary high prices. These products cannot start to market because of the currency panic or currency famine. They will begin to go to market the moment the banks resume payment of their obligations. New York, the great clearing house of the new United States, was the first to suspend the payment of currency. It must be the first to resume the payment of currency and the moment New York resumes that will unlock the three thousand millions of currency and

5. December 3, 1907 The Roswell Daily Record Roswell, NM
Article from The Roswell Daily Record, December 3, 1907

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"The current number of Harper's Weekly contains an editorial 'roast' of the clearing house certificates issued in Las Vegas, New Mexico. In view of the fact that the financial difficulties of the West were wholly due to the suspension of payment by the New York banks, and the issue by these banks of clearing house certificates and other forms of 'Johnsmith' currency—as it is now called—it would seem that the Weekly might have found a target for its ammunition nearer home.—Socorro Chieftain.

6. December 3, 1907 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, December 3, 1907

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# RESUMPTION. Horace Greely was wont to say that "the way to resume is to resume." The New York banks have been announcing for some time that specie payments are about to be resumed. It appears that the bankers elsewhere are ready to pay cash as soon as New York decides to keep its promises. It is noted as one peculiar feature of the present panic that some of the New York bankers will become rich because of it. And we doubt not that the most immediate cause of the suspension of cash payment by the banks all over the country was the stoppage of such payments by the banks in New York. As long as the banks of that city continue to withhold payment of their obligations, there seems to be no reason why they might not be purchasing the government bonds and so making a profit out of withholding cash payments to the rest of the country. Such a suggestion is made in many quarters, and the way to negative any such suspicion is for the New York banks to pay their obligations inland in the current money of the realm.

7. December 17, 1907 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, December 17, 1907

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That government officials feel that the backbone of the panic is broken is evidenced from the fact that postal authorities at Wasnington have sent letters to all postmasters whose offices are depositories either for registry and money order accounts, to prepare to receive checks from the smaller offices. In the letter it is stated that the authorities feel that it will not be many days until he New York banks will resume the payment of currency and when this is done the panic will be over. While this circular letter was sent to all postoffices that are depositories for government accounts, there are but few of them effected by the order. The Montgomery office is not a depository but the instructions are particularly significant throughout the country from the fact that it gives the views to a certain extent of officials in Washington on the money situation. According to these instructions conditions are rapidly becoming better as the postal officials would not say this unless they knew and they are in a position to know the facts if anyone is. The instructions will be welcomed by a great many offices in different parts of the country as the arrangement since October 30 has been very inconvenient. By the action of the banks handling United States accounts it has been necessary in many cases for the smaller offices to send all of their money to the depositories in currency. The government requires that all of its checks be paid in currency and when money became tight the banks refused to take government checks for

8. January 15, 1908 The Morning Journal-Courier New Haven, CT
Article from The Morning Journal-Courier, January 15, 1908

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POOR NEW YORK. New York thrives on the money which the 6,000 banks throughout the United States keep in that city. Compared with Philadelphia and some other leading towns, New York produces of itself relatively very little wealth. But it uses the money of 80,000,000 people. When recently the crookedness of some New York banks caused first a series of failures and then a financial panic there, the banks all over the country began to withdraw their deposits from New York. This cash did not belong to Wall street, but it was merely kept on deposit there. The owners had a right to take it away at any time they saw fit. One might suppose from the cries that come from Wall street that the 6,000 banks not in that town were committing a crime by demanding their own money. As a matter of fact, the New York banks locked their doors and refused to permit outside banks to get their own money except by paying a large bonus for something that already belonged to them. The cash which New York sends South and West to move crops every autumn is cash which the banks from those sections have loaned in Wall street. It is not New York's money although, judging by that town's comments, anyone not familiar with the true facts might suppose otherwise. Now we witness the spectacle of America's so-called financial center being the only spot where a premium is paid for currency. The reason is because that city suffers a money famine, since the rest of the country has withdrawn only a part of the cash which it had been lending there. What would happen If the rightful owners should take all that belongs to them may only be imagined.-Philadelphia Press.

9. February 7, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, February 7, 1908

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City were increased on the security of stock and bond loans from $281,000,000 to $302,000,000. Three hundred and twelve millions loaned on collateral of Wall Street, and yet they suspended payments to their individual depositors and to their banking correspondents throughout the country. And they did it when they had money in their treasury with which to meet their obliga-tions." ### Kept Cash; Got Premium. Mr. Culberson declared that while New York had so much cash in its banks Southern banks were paying a premium for cash. The Aldrich bill, he declared, would give the banks more power and would foster stock and bond speculation by the banks and still further discriminate against the general public, and in the interest of the bondholding classes. "Against this policy," he added, "I want to enter my earnest and emphatic protest." Senator Hopkins replied briefly to Mr. Culberson. "Every statement made by the Senator," he said, "has been answered by the Secretary of the Treasury in his report." Mr. Culberson said the secretary refused to give the Texas banks deposits they asked for, and Mr. Hopkins replied that he had done the same thing in respect to Chicago banks, as he put the money where he believed the greatest emergency existed. The consideration of Mr. Culberson's resolution was postponed, and it was allowed to lie on the table.

10. November 29, 1909 The Roswell Daily Record Roswell, NM
Article from The Roswell Daily Record, November 29, 1909

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U. S. BANK A FAILURE Washington, Nov. 29.-That the United States has had two unsuccessful experiences at running banks, and should, therefore, act slowly in considering Wall Street's central government bank idea, is being urged by the small bankers of the country, who are avowedly antagonistic to the program of Senator Aldrich. The country bankers are directing attention to the fact that the greatest obstacle in Canada's struggle to develop has been her antiquated systerm of big central banks with branches in every country town, through which all surplus deposits are centralized in the large citires. The Canadian merchant or manufacturer in the outlying town has been unable to secure bank accomodations needed in his business, while idle money from his own town, which a locally owned bank would gladly have loaned him, has been sent to the head offices of the big city bank with a local branch, perhaps to be invested in a far distant place to earn dividends for the stockholders. The year 1791 marked the first bank of the United States. In that year Congress chartered a bank for 20 years. Its methods brought about, 18 years later, the first bank panic in this country. Bribery and corruption in political affairs were the domi nant features of the government's first experience in banking. In 1817 a second United States bank came into existence. Within a short time it had 18 branches. In No. vember, 1818, it was insolvent. Forty Congressmen who held stock in the institution, however, enabled it to continue business. For the following five years there was keen financial distress throughout the country. In 1832 President Jackson vetoed a renewal of the bank's charter, the bank retaliating with coercive measures. I: contracted the money markets and caused great distress. Other banks sprung up. The United States bank continued operations under a charter obtained by bribery from the state of Pennsylvania, reissuing all of its old notes. The crash came in 1837, when 100 New York firms went to the wall in one month. Every bank in the city suspended. Congress was forced to pass an act forbidding the Pennsylvania Bank of the United States from using the notes of the old United States bank. Then the New York banks resumed business. But the reckless operations of the financiers who owned the United States bank brought on disaster. Oct. 19, 1839. it failed, carrying to ruin 343 of the 850 banks in the Union and causing sixty-two to suspend for a time. Its debt to the bank of England alone was $23,000,000, and the failure, coupled with the consequent ren pudiation of indebtedness by several states, destroyed American credit abroad. In spite of the assurance given by Senator Aldrich in his speeches in the west, that politics will play no 1 part in a central government bank, the small bankers are apprehensive [ lest the contrary prevail. They can hardly conceive that it would be in I keeping with the game of politics for any party to set up an institution such as a great government bank without manning it with politicians, as only by taking advantage of such opportunities are great political machines built up. :

11. December 9, 1913 New-York Tribune New York, NY
Article from New-York Tribune, December 9, 1913

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# Senator Weeks Enters Lists. Senator O'Gorman said that the New York banks had lent to the country banks more than $410,000,000. Mr. Swanson insisted that the condition was exactly the reverse. Senator Weeks then called attention to the law which required that the New York banks keep 25 per cent of their reserves in their vaults, asserting that they had fallen below this limit when they suspended payments. Senator Root then took a hand in the discussion and elicited from Senator Swanson the admission that the country banks deposited their money with New York reserve agents with the understanding that it was to be loaned on call. "They knew," he said, "when the money was loaned that if there came a sudden demand from all parts of the country they would be subject to the difficulties and embarrassments arising from a defective system." For this reason, Senator Root intimated, there was no occasion whatever to blame the New York bankers for lending the money as they did. Senator O'Gorman quoted from the testimony given by country bankers before the Banking and Currency Committee to show that they had received more aid

12. August 6, 1914 The Citizen-Republican Scotland, Parkston, SD
Article from The Citizen-Republican, August 6, 1914

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MEASURES TAKEN TO CONSERFE READY CASH This Action Believed Best In Order to Assure Stability of Business. In order to conserve the American supply of gold and to maintain the credit of the national banks of New York, Chicago and Boston Monday decided to suspend the payment of specie and issue clearing house certificates instead. Other cities throughout the country are expected to follow the lead of these big financial centers. Depositors also will be required to give 60 days notice to banks before withdrawing funds on time deposit. The situation is not regarded as grave by any means and reassuring statements have been issued in every quarter. The measures being taken are purely of a precautionary nature.

13. August 6, 1914 The Tabor Independent Tabor, SD
Article from The Tabor Independent, August 6, 1914

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MEASURES TAKEN TO CONSERFE READY CASH This Action Believed Best In Order to Assure Stability of Business. In order to conserve the American supply of gold and to maintain the credit of the national banks of New York, Chicago and Boston Monday decided to suspend the payment of specie and issue clearing house certificates instead. Other cities throughout the country are expected to follow the lead of these big financial centers. DeposItors also will be required to give 60 days notice to banks before withdrawing funds on time deposit. The situation is not regarded as grave by any means and reassuring statements have been issued in every quarter. The measures being taken are purely of a precautionary nature.