Harlem Savings Bank (New York, NY)

Episode Information

Episode UID
1019071294
Episode Type
Run → Suspension → Reopening
Bank Type
savings
Bank ID
101907 routing
Routing Number
1-0190
Start Date
October 25, 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
8ac117f411ba2565

Response Measures

None

Description

Run was sparked in part by a newspaper caption mistake and proximity to other troubled banks; bank invoked notice clause then resumed payments.

Events (3)
1. October 25, 1907 Run
Cause
Rumor Or Misinformation
Cause Details
Run triggered by mistaken newspaper caption/propinquity with Dollar Savings Bank and general 1907 panic panic-driven withdrawals.
Measures
Paid depositors promptly; officers continued paying; later invoked legal notice clause to delay withdrawals.
Newspaper Excerpt
The run on the Harlem Savings bank while spectacular does not appear to amount to a great deal financially.
Source
newspapers
2. October 25, 1907 Suspension
Cause
Government Action
Cause Details
Bank and other savings banks required depositors to give legal notice before withdrawal (use of 30/60-day notice clause) as collective precaution.
Newspaper Excerpt
the officers announced yesterday that they would take advantage of a thirty days notice
Source
newspapers
3. October 30, 1907 Reopening
Newspaper Excerpt
The run on the Harlem Savings Bank was ended yesterday. Many patrons returned to deposit the money they drew out last week.
Source
newspapers

Newspaper Articles (12)
1. October 25, 1907 Evening Journal Wilmington, DE
Article from Evening Journal, October 25, 1907

Click image to open full size in new tab

Article Text

ANOTHER BIG TRUST BANK SUSPENDED But Financial Sky is Clearing and the Worst Thought to be Over CORTELYOU VERY HOPEFUL By THE JOURNAL'S Special Wire. NEW YORK, Oct. 25-Financial New York is convalescent, but still decidedly shaky on its pins despite the positive assurance of chief Physician, J .P. Morgan and Surgeon Cortelyou. It will be many days before the stock exchange and the many banking institutions are again on a normal basis, and in the meanwhile the suspension of many small concerns can hardly be averted. But still the sky is clearing and it can be consistently asserted the worst is over. The herdes blow of the day was the suspension of Providence Trust Company with individual deposits exceeding $25,000,000. This followed o.run started yesterday, and according to President Studley thea ction was necessary to protect depositors. C.C. Sweetland was appointed receiver and at once qualified. At nine o'clock there was posted on the doors of the United States Exchange Bank, a small institution, at 23 West 125th street, a notice that it would not open to-day. President John Gibbons stated its deposits aggregate $880,000, and it paid up capital is $100,000. He said all depositors would be paid in full. Run on Baltimore From Baltimore comes word that the run on the Eastern branch of the Home Bank continues, but all demands are being met. Here in New York the runs on the Trust Company of America, the Lincoln Trust Company, the Fifth Avenue Trust Company, the Harlem Savings Bank and the Dollar Savings Bank n continue, but are decreasing and deposits now exceed withdrawals and the end is in sight. Secretary of the Treasury Cortelyou said to the United Press at the subTreasury to-day: "I am very hopeful that an trouble is past and regard the situation as much improved. I will continue to render whatever assistance may be advisable during the day. The banks are still feeling the need of small bills and I have ordered more sent from Washington. "The suspension of small banks is not an unfavorable sign. It will permit the banking interests to concentrate their support on the central situation." The monetary situation kept the stock market feverish throughout the day. There was no visible attempt to corner the money market. s In the Stock Market. The improved feeling in the late trading yesterday was continued for a while e this morning. During the first hour's trad. ing there was gains on many stocks at the start ranging 1 to 2 points over yesterday's closing. following by selling and moderate net losses were recorded. The market was at no time demoralized and sentiment prevailed that the market had passed through its worst phase. Arbitrage brokers taking in all between 5,000 and r 10,000 shares. Government bonds unchanged: other bonds-lower

2. October 25, 1907 The Lake County Times Hammond, IN
Article from The Lake County Times, October 25, 1907

Click image to open full size in new tab

Article Text

IS FINANCIAL CRISIS OVER (Special to Lake County Times.) Providence, R. I., Oct 25.-There is a run on the Industrial Trust company New York, Oct. 25.-The run on the of this city. The bank has deposits of Harlem Savings bank while spectacular $41,000,000 does not appear to amount to a great deal financially. There are between New York, Oct. 5.-After a week of 400 and 500 people in line. Depositors sensational declines, the stock market do not average more than $50 apiece. finally showed signs of having reached Officers of the bank say they have more the bottom. while there were no great than a million in cash on hand, and rallies, still it showed firmness, and no new low records were made. A are paying as fast as they can and will continue to do so until the run is over. feeling of optimism prevails in financial A number of depositors have been to circles, and it is believed the worst is the bank to make deposits aggregating over, the prompt action of Messrs. Morover $12,000,000 gan & Co. yesterday, in placing $25,000,000 in the loan crowd at a critical Although no official statement has been made word has been passed in the moment, has been the principal factor loan crowd that the Morgan loans made in creating confidence, and the street yesterday will be renewed at 20 per talk today is, that this great country cent. There are a large number of is not going to pot, no matter what the politicians would have us believe. brokers in the loan crowd now. There was one small bank failure First National bank of Brooklyn sutoday, and the run on the others, is spended payment. gradually subsiding. Several banks The Williamsburg Trust company, claim they are now receiving back a Broadway and Kent avenue, Williamslarge amount of the money drawn out burg, has closed its doors. The bank in the past few days. The market has a capital of $700,000; liabilities esclosed firm. and at best prices of day. timated at $9,676,464.

3. October 25, 1907 The Lake County Times Hammond, IN
Article from The Lake County Times, October 25, 1907

Click image to open full size in new tab

Article Text

(Special to Lake County Times.) New York, Oct. 25.-The run on the Harlem Savings bank while spectacular does not appear to amount to a great deal financially. There are between 400 and 500 people in line. Depositors do not average more than $50 apiece. Officers of the bank say they have more than a million in cash on hand, and are paying as fast as they can and will continue to do so until the run is over. A number of depositors have been to the bank to make deposits aggregating over $12,000,000 Although no official statement has been made word has been passed in the loan crowd that the Morgan loans made yesterday will be renewed at 20 per cent. There are a large number of brokers in the loan crowd now. First National bank of Brooklyn suspended payment. The Williamsburg Trust company, Broadway and Kent avenue, Williamsburg, has closed its doors. The bank has a capital of $700,000; liabilities estimated at $9,676,464.

4. October 25, 1907 The Fairmont West Virginian Fairmont, WV
Article from The Fairmont West Virginian, October 25, 1907

Click image to open full size in new tab

Article Text

NEW YORK, Oct. 25. - Financial New York is convalescent, but still shaky on its pins. It will be many days before the stock exchange and business are normal. It is confidently asserted that the worst is over. Advices from Baltimore say the run on the Eastern Branch House bank continues, but all demands are being met. Here rans continue on the Trust Company of America, Lincoln Trust Company, Fifth Avenue Trust Com pany, Harlem Savings Bank and Dollar Savings Bank, but deposits now exceed withdrawals, so the end is in sight. Cortelyou said to the United Press to-day: "Am very hopeful that the trouble is past and regard the situation much improved. I will in the meantime render any possible service during the day. Suspension of small banks is not an unfavorable sign."

5. October 25, 1907 New-York Tribune New York, NY
Article from New-York Tribune, October 25, 1907

Click image to open full size in new tab

Article Text

Near the usual closing time a depositor appeared with a check for $1,000, which he wanted to deposit. When it was refused he expressed considerable indignation. A recent report shows the status of the bank as follows: Paid up capital, $200,000; surplus and profits, $221,680; due to banks, $165,590; individual deposits, $3,007,350. Assets shown are: Loans and discounts, $2,384,870; bonds, stocks, etc., $94,570; due from banks, $235,220; cash and exchanges, $480,600. The New Amsterdam National Bank clears for the Twelfth Ward Bank, The officers and directors of the bank are: President, Thomas Simpson; cashier. Frank B. French. Additional directors: George B. Brown, Thomas Crawford, Joseph B. Kaiser, William T. Purdy, Theodore Dieterlin, Louis H. Perlman, John H. Duffy, Richard Webber, Henry H. Barnard, Frederick W. Dressell, James H. Purdy, Enoch C. Bell. John H. Shipway and Carl D. Jackson. Through a mistake, or rather the ill-advised use of the words "Harlem Savings Bank" as a caption over a newspaper picture of the Dollar Savings Bank, a run was caused on the Harlem institution that lasted until 3 o'clock When the doors opened an eager crowd of three hundred, mostly women, was waiting. But the bank was ready for any emergency, and paid as quickly as the tellers could work. As time passed the crowd grew finally to such proportions that the services of twenty policement were needed to maintain a semblance of order and to keep traffic open. All demands were promptly paid up to the closing time, when there was a line of perhaps one hundred disappointed depositors. Of course, those who drew their money sacrificed their interest. William E. Trotter, president of the bank, said that it was in good condition, with cash enough on hand to meet all demands. A Harlem merchant displayed his confidence in the bank by depositing $50,000 in cash. There were in line about eight hundred depositors when the Dollar Savings Bank opened yesterday. The scene was a repetition of that on the day before. Mr. MacKellar, counsel of the bank, said that the officials had absolutely no fear. They were going right on paying as fast as possible, and were not going to take advantage of the laws to suspend even for thirty days. He said they have over $600,000 in cash. Manager Kearn said that not more than $50,000 had been taken out. all in small amounts.

6. October 25, 1907 The Evening World New York, NY
Article from The Evening World, October 25, 1907

Click image to open full size in new tab

Article Text

FIRST NATIONAL OF BROOKLYN AND SIX OTHER BANKS CLOSE SITUATION AT A GLANCE. Secretary Cortelyou said after the close of banking hours: "The situation is good. This is the third day, and I see no setback of serious import. I shall probably remain in the city all day tomorrow, and if there is no critical development—which I see no sign of at this time and do not expect by any means—I shall return to Washington." The First National Bank of Brooklyn, a Clearing-House institution; the Williamsburg Trust Company and the Jenkins Trust Company of Brooklyn, with numerous branches, suspended temporarily. The solvency of the institution has not been questioned. President William A. Nash, of the Corn Exchange Bank, said: "The outlook is decidedly better, and I think the crucial point has been passed. The failure of the smaller banks is not disturbing. They did not have much cash on hand and it was better for them to suspend than to stand a run. They are perfectly solvent and will be able to resume business when the present hysteria subsides." The International Trust Company, of No. 206 Broadway; the Brooklyn Bank and the Borough Bank of Brooklyn failed to open their doors for business. The Union Dime Savings Bank, Thirty-second street and Broadway, with deposits of over $27,000,000, has given notice that it will require thirty days' notice in writing of intent to withdraw. Other savings banks have adopted this course. J. Pierpont Morgan and half a dozen bankers raised a pool of $10,000,000 late this afternoon which was loaned on call on the Stock Exchange to protect the market. International banking houses have arranged to import between $10,000,000 and $15,000,000 in gold from Europe. The Lincoln Trust Company, the Trust Company of America, the Colonial Trust Company and the Harlem Savings Bank safely weathered runs. The trust companies received substantial aid and the Harlem Savings Bank took advantage of the sixty-day clause. Secretary of the Treasury Cortelyou placed about $8,000,000 in New York banks during the day, a total of $30,000,000 since last Friday. Superintendent of Banks Clark Williams said that conditions have improved and will continue to improve if bank depositors are reasonable. The stock market passed through a precarious, feverish day, closing in a skyrocket finish that sent the general range of prices away above yesterday's final quotations. State Bank Examiner Leonard stated that the Lincoln Trust Company is in a solvent condition. An officer of the Hanover National Bank suggested that Gov. Hughes proclaim special holidays enabling the banks to close next week to allow the arrival of gold from abroad. Gov. Hughes, over the long-distance telephone, said he had no power to order such holidays. A shipment of $2,500,000 in small bills was received from the United States Treasury in Washington. Ernst Thalman, Otto T. Bannard and Gen. Henry C. Ide were appointed temporary receivers of the Knickerbocker Trust Company. Before the close of the stock market Halstead & Hodges and Van Emburgh & Atterbury, brokers, loaned on the floor of the Stock Exchange $10,000,000 of the syndicate money at 50 per cent. The amount pledged by the Clearing House banks to the aid of the Stock Exchange will be between $12,000,000 and $15,000,000.

7. October 26, 1907 Evening Star Washington, DC
Article from Evening Star, October 26, 1907

Click image to open full size in new tab

Article Text

NOW UNLI Worst of the New York Bank Run Has Subsided. , WITHDRAWALS DECREASE Some Belated But Timid Ones Still Stand in Line. SAVINGS BANK *PRECAUTIONS Criticism of the Managers Is Tempered With Commendation-Restoring Confidence. Special Dispatch to The Star. NEW YORK October 26 With the marked abatement yesterday in the runs on the trust companies, which have been paying out money to timid depositors since Wednesday morning. the officers of the concerns looked today for a continued diminution that would bring the request for withdrawals down to the normal Of course there were the usual though smaller. crowds awaiting the opening of the doors this morning and the same crowds assurance was given that all demands would be paid. At the offices of the Trust Company of America. where only $2,000,000 wa paid out yesterday, as compared with $12,000,000 on Wed esday and $9,000.000 on Thursday, the officers were confident that the flurry, so far as the run was concerned, was about over. The reformation of the line at the company's offices at 37 Wall street began less than two hours after the close of business yesterday. The first man took his stand in front 0° the door at 4:45 and at 6 o'clock he had nineteen to keep him company. Two young women, numb rs 22 and 24 in the line, went on picket duty at 10 o'clock last night. At the Colonial branch of the trust company. as on Thursday night, the number of all-night vigilants was much smaller than at the company's headquarters. Five stuck it out from last evening and two of these spent the night in the corridor within the revolving doors. Both were said to be bankers' representatives. At 6:20 o'clock this morning there were only fifteen in line. At the Lincoln Trust Company's 5th avenue entrance there were several of those who failed to get admitted when the doors swung shut yesterday afternoon who remained in their places all through the afternoon. being joined late in the evening by a few more, while this mornIng at sunrise the line was considerably lengthened "Deposit Brokers." At the Dollar Savings Bank, 147th street and 3d avenue, where a run started several days ago. a line of some length formed early this morning Several men who called themselves "brokers" went down the line offering to take over the accounts of any anxious ones at 90 cents on the dollar, spot cash. but they found few takers At the Harlem Savings Bank, where the officers announced yesterday that they would take advantage of a thirty days notice, "as a protection to the depositors, there were only a few persons collected Following the suspension of some small Brooklyn banks because of the lack of ready cash in the present financial situation. there were depositors at the doors of some of the trust companies and banks there this morning prepared to withdraw their accounts One line formed outside the Union branch of the Mechanics' and Traders' Pank in the Temple Bar building. This bank has ten branches distributed throughout the borough. The line began to form outside the bank at 8:30 o'clock. when between thirty and thirty-five persons took their places before the doors. Another line formed outside the Nassau Trust Company's building at Fulton street and Red Hook lane As early as 7:45 o'clock there were a few persons in front of the doors. The depositors also gathered outside the Brooklyn Savings Bank, at Pierepont and Clinton streets the second largest bank in Brooklyn, There was a rush of depositors to that bank yesterday afternoon. and this morning at o'clock ther were between fifteen and twenty persons outside its door. The executive committee of the clearing house association this morning issued a call for meeting of the full association to be held at 12 o'clock to decide whether or not to issue clearing house certificates James T. Woodward. chairman of the clearing house committee, said that the situation today depended largely upon developments among the Brooklvn banks. Soon after arriving at the subtreasury this morning Secretary Cortelyou had a conference with George W. Perkins of J. P. Morgan & Co. Mr. Perkins subsequently said "The atmosphere is fast clearing up. as any one can see. Mr. Perkins was asked if he thought this would be the last day of the financial difficulty He replied: "I think it is. James Stillman this morning after the conference at the clearing house. said: "The situation has been saved by the of the heroie Treasury action Secretary of the who has been so ab.y assisted by the whole-hearted co-operation of Mr. Morgan.

8. October 26, 1907 New-York Tribune New York, NY
Article from New-York Tribune, October 26, 1907

Click image to open full size in new tab

Article Text

CRANE REASSURES UNRULY DEPOSITOR. Gustave Oman, a brawny Finlander, appeared before Magistrate Crane in the Harlem Court yesterday afternoon, on a charge of disorderly conduct while waiting to draw his deposit of $500 from the Harlem Savings Bank. The magistrate let him go on condition that he should leave his money at the bank and make no attempt to draw it during the run. "Why, I have much more than you on deposit," said the magistrate, "but I am leaving It in. The money is much safer in the bank than it would be in your pocket, my man."

9. October 26, 1907 New-York Tribune New York, NY
Article from New-York Tribune, October 26, 1907

Click image to open full size in new tab

Article Text

SAVINGS BANKS 'ACT. Depositors Must Give Legal Notice Before Withdrawal. Following a run on several savings banks, the presidents of sixteen of the thirty-two savings institutions in this city met yesterday at the office of Andrew Mills, president of the Dry Dock Savings Institution, and decided to require all depositors to give the usual legal notice before withdrawing their deposits. This action was taken, it was explained, to prevent the withdrawal of large amounts from the savings banks in this time of acute money stringency. After the meeting Mr. Mills gave out the following statement: "At a meeting of savings bank officers, held to consider the present existing financial conditions, it was deemed wise to require the usual legal notice for the withdrawal of deposits. This action was taken in the conviction that it will best conserve the interests of all depositors." Mr. Mills added that all the savings banks in the city would be governed by the action of the meeting and that the rule would go into effect this morning. The banks represented at the meeting were the Bank for Savings, the Bowery, the Bronx, the Dry Dock, the East River, the Emigrant Industrial, the Excelsior, the German, the Irving, the Manhattan, Metropolitan, the New York, the North River, the Seamen's, the Union Dime and the Union Square. Among the savings banks which took advantage of this law yesterday were the Harlem Savings Bank, 124th street and Third avenue; the Union Dime Savings Bank, at 33d street and Broadway, and the Guardian Savings Bank, of Brooklyn. Runs had been started on these institutions, and although they had ample funds to meet all demands the officers decided that under present conditions it would be best to delay payment. Notice was given, however, that the time clause would be waived in the case of depositors requiring amounts up to $100 for current expenses. The run on the Bank for Savings, at 22d street and Fourth avenue, which began on Thursday, continued yesterday, and about $250,000 was withdrawn during the day. On Thursday $345,000 was withdrawn and $86,000 deposited. There were said to have been heavy deposits yesterday, but the amount was not made public. Walter Trimble, president of the bank, said: "This bank is absolutely sound. The run is the result of local conditions. We are paying off depositors as rapidly as possible, and will continue to do so until Christmas, or beyond, if necessary." Later in the day. after the meeting of the bank presidents already noted, Mr. Trimble stated that the bank might decide to enforce the notice required by law. William B. Aitken, president of the Bronx Savings Bank, said his institution would take

10. October 29, 1907 New-York Tribune New York, NY
Article from New-York Tribune, October 29, 1907

Click image to open full size in new tab

Article Text

UPTOWN BANKS QUIET. Runs Practically Over - Closed Places to Open Soon. Everywhere, uptown and in Harlem. yesterday the bank situation was so decidedly improved that the lines outside some of the institutions attracted little attention. The banks opened and closed at the usual hours and paid all waiting depositors. The lines were longer than ordinarily, but they hardlly constituted "a run." There was an absolute absence of excitement. At the Lincoln Trust Company, in Fifth avenue, around which has centred most of the interest uptown in the last week, there were waiting about sixty persons at the opening hour, most of whom had been there through the wet night before. Most of them were messengers, holding places. Each bore a number, and when the company opened its doors took his place in line accordingly. No. 1 was A. Y. Cornell, who would not say whom he represented. He drew out $75,000. it was said. Payments were made more rapidly than heretofore. Mr. Phillips said at the close of the day that he was much encouraged by the improvement in the conditions. He believed the excitement about over. At a late hour last night fifty-flve persons were in line at the Lincoln Trust Company, where they were holding an all night vigil waiting for the opening this morning. Most of them were equipped with raincoats or blankets and all were doing their best to keep out of the way of the rain that was pelting down. As many as were able grouped under the big portico in front while those who were crowded out of this shelter held an "overflow" meeting under the entrance to the Cafe Martin, which is next door. There were only thirty-five in line at the branch of the Lincoln Trust Company at Broadway and Lispenard street. The crowd at the Broadway Trust Company was much emailer than on Saturday, there being not more than seventy-five in line yesterday morning. The depositors obtained their money at once on presentation of their checks. At the end of the day there were only six left In the line. Charles H. Hyde, one of the directors of the company, said that it would continue to meet all demands. The excitement that prevailed at the Northern Bank on Saturday was entirely lacking yesterday. There were about sixty depositors there at the pening. and all were promptly paid. The Harlem Savings Bank, which has been the crux of the Harlem situation, presented an encouraging improvement. About one hundred depositors were there to draw small amounts yesterday morning. None drew more than $100. while among the forty who came to deposit money was one who put in $800. All appearances of a run were gone by noon. The officials of the Hamilton Bank. United States Exchange Bank and Twelfth Ward Bank, all in 125th street and which are in the hands of bank examiners, hope to resume business in a few days. The run on the Dollar Savings Bank, in The Bronx. had spent its force last week, and yesterday the line never numbered over sixty persons.

11. October 30, 1907 New-York Tribune New York, NY
Article from New-York Tribune, October 30, 1907

Click image to open full size in new tab

Article Text

HARLEM BANKS MAY SOON REOPEN. The announcement was made yesterday that the Harlem banks that suspended last week would open in a few days. Attorney General Jackson said that he would give them every opportunity to resume business and would take no steps against them If their condition justifled their resumption. William Montgomery, president of the Hamilton Bank, in 125th street, speaking for that institution, said that it would reopen not later than next Monday, The same was said of the Twelfth Ward Bank. The run on the Harlem Savings Bank was ended yesterday. Many patrons returned to deposit the money they drew out last week. The conditions at the Empire City Savings Bank also were normal. There was none of the unusual activity of the last few days at the Dollar Savings Bank, in The Bronx. The run on the Broadway Trust Company had also abated.

12. November 10, 1907 The Washington Herald Washington, DC
Article from The Washington Herald, November 10, 1907

Click image to open full size in new tab

Article Text

PROPINQUITY STARTS A RUN. Mistake of Caption Writer Also Gives Harlem Bank Trouble. One of the runs of the period that has just gone into history. that on the Dollar Savings Bank, in The Bronx, had a haphazard start. Its banking house was next to the Bronx branch of the Knickerbocker Trust. When that closed its doors the rum spread that the savings bank was in trouble. Propinquity, in this case, says the New York Tribune, caused the Dollar Bank people no end of trouble for five days, but they weathered the storm nobly. This run, with the aid of a careless caption writer on a morning newspaper, caused a vigorous run on the Harlem Savings Bank, one of the oldest and stanchest institutions above One Hundredth street. The newspaper, in describing a photograph of a run on the Dollar Bank, in The Bronx, said that depositors were raiding a Harlem savings bank. That was enough for the foreign born element among the depositors, and they swooped down for their savings. Foreign-born depositors predominate at both these banks, and the runs became lines of all nations. They were more picturesque than those of the trust company depositors. They jabbered their troubles to the housetops. The women cried or laughed altérnately in a money fear hysteria. One and all besought policemen and reporters to slip them into the bank ahead of the rest. Many of this foreign crowd were so excited that they would accept nothing but gold in return for their much fingered passbooks. Some even went SO far as to test each piece by biting it. The sad part of it is that all who withdrew lost four months' interest, and for no reason in the world, for at no time were the savings banks in danger. The overnight runners who kept a long vigil in front of the Lincoln, the Colonial, and the Trust Company of America several nights had various ways of passing the time. Some brought campstools, and all laid in a supply of provisions. A drenching ran came down on them to add to their woe. But almost simultáneous with the storm there drifted into view of the line a vender of second-hand umbrellas. The bank runnérs bought him out,