Bowery Savings Bank (New York, NY)

Episode Information

Episode UID
1017570448
Episode Type
Run Only
Bank Type
savings
Bank ID
101757 routing
Routing Number
1-0175
Start Date
April 26, 1837
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
5c12e0d27481de0f

Response Measures

None

Events (1)

1. April 26, 1837 Run
Cause
Macro News
Cause Details
Panic of 1837 and Specie Circular-induced fear of paper money leading to widespread specie withdrawals.
Measures
Realized mortgage securities and obtained funds from the Butchers and Drovers Bank to pay depositors.
Newspaper Excerpt
Nearly the whole amount of the deposites have been withdrawn in specie by the depositors from the Bowery Savings Bank.
Source
newspapers

Newspaper Articles (2)

Article from The Herald, April 26, 1837

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Article Text

SPECIE-SMALL BILLS-LARGE BILLS.Nearly the whole amount of the deposites have been withdrawn in specie by the depositors from the Bowery Savings Bank. The fund had been loaned out on good mortgages on real estate, bringing 7 per cent. interest. The institution, however, had to realise their value from the Butchers and Drovers Bank, and pay the depositors their demands. A large amount has also been drawn from the Savings Bank. A short time ago, a gentleman had to receive about $150 interest on a mortgage on real estate. The mortgagee was a confectioner who did a retail business. The whole of the amount was paid in speciegold and silver. "How came you," asked the gentleman, "to have so much specie?" "Why," replied the lady, for it was a lady, "when I get a five dollar bill, I get the silver or gold for it as fast as I can." "Don't you think our banks safe?" "Very probably they are," said she with a smile, (a pretty woman always smiles when she speaks on money matters, just by way of small change,) "but they say the President has stopped all paper money, so I get the silver and gold when I can." On Wednesday last week, a countryman from Long Island sold out his marketing. "Won't you go across the river?" said his neighbor. "Yes, when I get my money." "Why, I thought you had sold out." " So have-but I want my money for the paper I have got. I'll get it at the Fulton Bank, and ge directly." He went there, got $15 in silver for his notes, and returned to put his silver into an old stocking. "Neighbor," said he, "the legislatur' has stopped all paper money under $5-1 don't know but all above is just as bad as all below, so I gets the solid gold and silver. I can sleep safe on that." These are veritable facts taking place every day. They indicate the state of public feeling. The present revulsion in banking affairs, and the panic among the safety fund banks, have been produced by the very bank managers themselves. For party purposes, and to gratify the feelings of General Jackson and his kitchen cabinet, they raised a hue and cry against small bank bills, and passed laws imposing penalties on their circulation. The people take them at their word, but carry out the principle to their largest bills and most solvent banks. There was a time when the most perfect confidence existed between the public and the safety fund banks. That time is gone. The blockhead managers of these institutions set the spirit of doubt and discredit afloat in relation to small bills-it has widened its own operations, and see now where they are. When men of sense and sagacity permit ignorance, folly, and presumption, under the name of democracy, to regulate their conduct, they deserve the severest retribution, and they are receiving it. Thanks be to God!


Article Text

Books Authors Although the the published Bowery Savings New York bears the title Miracle Mutual Savings," narhistory. Not the sort that find in textbooks nor that recorded historians, wars for the highlights and the progress people but peaceful paragraphs tween chapters devoted to the noply of bannered armies and giorivictories. records the growth of which grow along the may inferred story proceeds through century One these the success follows sound policy, administration the confiadministered and carried out this course. success Bowery Savings might called symbol accomplished when the affairs the people are conducted with ability to meet emergencies. For, despite the fact that the Bowery Bank three periods panied financial first twenty-five and never lost dollar. quarter century Bowery Savings Bank covered the between 1834 and the Between the States. 1837 there was panic and ensuing depression. there other in 1857 third. which might to continuation might said that the period years when the Bowery Savings into existence closely parallelled the present period. the panic stance and the prior 1837 the prosperity United the wonder admiration other tions. William Dana Orcutt. author book discussed "Within period fifty brunt two the assumed State and wiped out national debt which had reached the barely six people; the treasury was arranging distribute the States 1836 were thirty millions merchandise our canals were everywhere projected actually constructed. such miracle prosperity had been witnessed the world's history. Land values boomed., foreign capital flowed speculation the order the people had forgotten the State banks back 1834, after Jackson put foot the Bank the United "Unsound those remember loans Europe. South America far from home within the decade. You the situation then was the same the period from 1925 present You will find others. Here other from Author Orcutt: first came from the failure the grain for pay for foreign The England, noting the fact changes higher and higher England. sharply contracted warned business the habit tending and liberal credits Almost the same time the Treasurer the United issued Specie Circular (July, which directed collectors revenue accept nothing but scrip. panic During 1837 every the United specie pay. ments. The failures the first three April York than hundred million That important money There run every bank. including the Savings its had along lines and demands. The bank survived. You will notice. too, that the nation survived. Just another paragraph from Orcutt's nation-wide hysteria subsided distrust lingered. Van had relieve the tion was not until York York that bank should be until resumption practical (resumption and later specie the Bank withdraw from the had taken that the city relief from its overwhelming That teria distrust street brings Not mention other mind. localities. crisis the That period the for had Bowery Savings taken sound lines and that meet officers had large cash have gone that despite real point hysteria States this the United and another since. crisis many famous Friday cluding the the panic the period Each the despair rose new more than So the the history the 100th