gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
cc3e866b3652cd59
Response Measures
None
Description
The bank suspended due to a steady drain of deposits and currency stringency; while it caused runs on other local banks, the Exchange Bank itself suspended before a discrete run was reported on it.
Events (3)
1.August 5, 1893Suspension
Cause
Macro News
Cause Details
Inability to obtain currency to carry on business following a steady drain of deposits during the Panic of 1893.
Newspaper Excerpt
The directors of the Exchange bank of this city this evening decided to make an assignment and the bank will not open Monday.
Source
newspapers
2.August 7, 1893Other
Newspaper Excerpt
As a result of a scare created by the assignment of the Exchange Bank a run began on several other banks this morning
Source
newspapers
3.September 20, 1893Reopening
Newspaper Excerpt
This morning at the usual hour for opening banking business the Exchange bank will re-open its doors after being closed 45 days.
Source
newspapers
Newspaper Articles (22)
1.August 6, 1893The HeraldLos Angeles, CA
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Article Text
EMBARRASSED BANKS. The List of Suspended Institutions Keeps on Growing. WHEELING, W. Va., Aug. 5.-The directors of the Exchange bank of this city this evening decided to make an assignment and the bank will not open Monday. No statement has yet been made. The bank is said to be solvent. GREENCASTLE, Ind., Aug. 5.-The Central National bank of this city has suspended. No statement. LEON, Iowa, Aug. 5.-The Decatur County Banking association, the oldest concern in Southern Iowa, including branch banks at Davis City and Garden Grover, suspended this morning. Assets, $47,000; liabilities, $315,000. T.S. Arnold is the assignee. It is believed the embarrreement is only temporary. New BEDFORD, Mass., Aug. 5.-The New Bedford Safe Deposit and Trust company, capital $200,000, has failed; no statement of liabilities or aseets. It is claimed the depositors will be paid in full.
2.August 6, 1893The Salt Lake HeraldSalt Lake City, UT
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TELEGRAPHIC BREVITIES, The Central National bank of Greencastle, Ind., has suspended. No statement. The wheat crop of Kansas will not be more than 21,000,000 bushels as against 70,000,000 last year. Corn has been badly damaged. The Pioneer Poultry company of Wellsville, Ohio, has made an assignment. Assets exceed $75,000. Liabilities somewhat less. The directors of the Exchange bank of Wheeling, W. Va., have decided to make an assignmentand the bank will not open Monday. No statement is yet made. The bank is said to be solvent. J. K. Ooms of Holland, winner of the much-prized trophy of the Henley regatta, arrived in New York yesterday on his way to Chicago, where he will enter all the big races of the Chicago navy regatta next month.
3.August 7, 1893The Record-UnionSacramento, CA
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Article Text
Failure of a Wheeling Bank. WHEELING (W. Va.), Aug. 6.-The Exchange Bank, one of the oldest and most solid financial institutions in the city, will not open to-morrow, and as the natural result runs on other banks in the city are expected, but without a single exception they are solid, and no fears are entertained that they cannot weather the storm. There is more money in the vaults than at any time in the history of the city.
4.August 7, 1893The Anaconda StandardAnaconda, MT
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Article Text
WHEELING, W. Va., Aug. 6. - As announced last night. the Exchange bank. one of the oldest and most solid financial institutions in the city, will not open tomorrow. and as a natural result. runs on the other banks in the city are expected, but without a single exception they are solid and no fears are entertained that they cannot weather the storm. There is more money in the vaults than at any time in the history of the city.
5.August 7, 1893Morning Journal and CourierNew Haven, CT
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Article Text
Bank Suspensions Reported. NEW YORK, Aug. 6.-Bank suspensions are reported as follows: First National bank of White Sulphur Springs, Mont.; Central National, Greencastle, Ind.; Bank of Abingdon and Exchange and Deposit bank, Lynchburg, Va.; Exchange bank, Wheeling, W. Va; Marston, Larson and Davis, bankers at Lake Crystal, Minn.
THE BANK DOORS SHUT. The Exchange Bank Forced to Suspend Payment BY THE EACK OF READY CURRENCY. It Will Pay Every Dollar of its Liabilities, and all the Other Banks are Solid as the Rocks-A Declaration by Scores of Leading Business Men in Favor of Conservatism and Common Sense.
7.August 8, 1893The Record-UnionSacramento, CA
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Run on a Wheeling Bank. WHEELING (W. Va.), Aug. 7.-As a result of a scare created by the assignment of the Exchange Bank a run began on several other banks this morning, but it did not last long. Large deposits were made, which counteracted the withdrawals by small depositors, and the run immediately ceased.
THE BANKS ALL RIGHT. The Run that was Feared does not Amount to Much. A RARE STATE OF AFFAIRS SHOWN, When More Money is Deposited in the Different Institutions than is Withdrawn-Moro Cold Cash "in Sight" Probaby than Ever Before in the City's History-The Exchange Bank's Deed of Assignment,
9.August 8, 1893The Salt Lake HeraldSalt Lake City, UT
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Article Text
Run on Wheeling Banks. WHEELING, W. Va., Aug. 7.-As the result of a scare created by the assignment of the Exchange bank, a run began on several other banks this morning, but it did not last long. Large deposits were made which counteracted the withdrawals by small depositors and the run immediately ceased.
WHEELING, Aug. 7.-As a result of the scare created by the assignment of the Exchange Bank & run began on several other banks in the city as soon as they opened their doors this morning. It did not last long. The run was made by small depositors, and when they saw the business men depositing as usual they recovered their senses, and the panic was soon over. In the afternoon many deposited the money they had drawn in the morning.
Exchange Bank Suspends. On Saturday evening the Exchange Bank, of Wheeling, one of the oldest, and supposed to be one of the solidest institutions in the city, closed its doors and went into the hands of an assignee. The failure was due to the bank's inability to obtain currency to carry on business, it having sustained a steady drain of deposits for some time. The bank is solvent, having assets of a half million in excess of its liabilities. The failure naturally created some excitement, and it was feared a run might be started on other banks on Monday. but having had Sunday in which to study the situation, the people came to their sober senses, and there was no run to amount to anything on any bank on Monday. Some timid people drew out their money, but the deposits are said to have vastly exceeded the withdrawals. It is a matter of congratulation that all the banks in Belmont county are unaffected by the panic, and that the faith of the people in these institutions remains unshaken. There is absolutely no danger as long as the people keep their heads, but a good way to create a panic is to rush on the banks and demand deposits. The worst of the flurry now seems to be over, and everything will soon settle into its usual channel.
As a result of the suspension of the Exchange Bank at Wheeling some small depositors attempted to inaugurate a run on the other banks MonS day morning. Business men came to the rescue of the banks and the alleged panic ceased.
Bank Failure in Wheeling-The Duty of the Hour. The first bank failure in the history of Wheeling occurred last Saturday evening when the Exchange Bank, the oldest and largest banking institution in West Virginia, closed its doors. Hon. John J. Jones, cashier, was appointed receiver. The bank has a capital stock of $500,000 and deposits of nearly $2,000,000. A steady drain on its ready money has been in progress three months, and, being unable to go further, suspended. All claims will be paid in full. The affair created a tremendous sensation, and fully aroused the citizens of Wheeling, causing them to band together for mutual protection. An address was issued to business men and depositors to refrain from withdrawing deposits and to continue to transact business as usual. It is hoped the address will be heeded and that Wheeling banks and business houses may retain their reputation as solid institutions.
Wheeling Banks all Right. Keyser Echo. Wheeling certainly has a good many level headed people. The manner in which the business men of that city are standing by their banks is certainly worthy of all credit. The business men of Wheeling not only intend to keep themselves from being panic struck, but they do not mean that anybody else shall wreck their sound banks by getting up a scare. There is no danger that anybody will lose a cent by the suspension of the Exchange Bank, and the bank will probably resume in a short time. We haven't any money in it, more's the pity. If we had we would not lose a wink of sleep for fear of losing it.
15.August 16, 1893Ceredo AdvanceCeredo, WV
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The Exchange Bank of Wheeling, was the first (and the only one so far) to suspend in this State. It is thought the bank will pay its ereditors in full. Crazy or frightened depositors were the cause of the suspension. N. B.-Since the above was put in type the Bank at Wellsburg has closed its doors.
16.August 25, 1893Evening StarWashington, DC
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DISTRICT GOVERNMENT. Orders Issued. The Commissioners have approved the following orders of the engineer department: That order be issued to the Rock Creek Railway Company to plank crossings of said road with Grant Chapel and Pierce's Mill roads, the planks to be flushed with the top of rails, for full width of roadway and to be placed both between tracks and rails. That Fred Fritz be employed to rejoint curb upon 2d street northeast between C and F streets, at 5 cents per lineal foot. That P. A. Tobin be authorized to rejoin the curb upon Brightwood avenue at 5 cents per lineal foot and redress front of said curb, when ordered, at 8 cents per lineal foot. That sewer be constructed on south side of E street northwest to serve the north frontage of lot 3, square south 104, under the permit system at an estimated cost of $104. That the sewer in block 3, Trinidad, from the alley to the center of M street northeast be constructed under the appropriation for suburban sewers, 1894, instead of under the compulsory permit system as heretofore ordered. Estimated cost 8520. That about 709 new lamp posts be painted, and that all the lamps in the District of Columbia be numbered. Estimated cost, $450. That licenses as plumbers and gas fitters be issued to Wm. R. Bonis, Brill and Hayden and John Carmody upon signing of proper bonds. Brightwood Avenue. The widening of Brightwood avenue has finally been determined upon by the Commissioners. In a letter today to Mr. John A. Prescott, whose name headed a protest from property owners along the avenue against the proposed widening, the Commissioners state that their action is in accordance with an opinion of the attorney for the district and based upon lines laid down by surveyor Forsyth. They state also That in their opinion it will increase the value of all the property upon that highway. Notes. John E. Fears has been appointed a private of class one of the police force. Private Q. B. Lyga, a private of class one, has been promoted to class two, and E. R. Coon has been appointed a irivate of class one. The appointments will take effect on the first proximo. The chairman of the committee on lighting the park, of the Public Welfare Association of Takoma Park, has whitten to the Commissioners inquiring the cost of street lighting by oil. At a crossing between Lexington and West Alexandria, Ohio, on the Cincinnati, Jackson and Mackinac railroad, Mrs. William Hapner and her daughter, aged seventeen, were struck by a train and instantly killed. Rev. Dr. Howard, who was arrested in Chicago August 4 on the charge of using the mails for fraudulent purposes and immediately afterward escaped from an officer, is again in custody, having been arrested at Jackson, Tenn. Arthur Watson is under arrest at Asheville, N. C., and will be held until the Covington (Ky.) authorities can get him. Wat. son murdered his sweetheart, Amanda Caine, near Independence, Ky., September 1892. because she refused to elope with him The Exchange Bank of Wheeling, W. Va. which suspended three weeks ago owing to the stringency in the money market, will resume operations about the 15th of September.
17.August 26, 1893Daily Kennebec JournalAugusta, ME
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On Its Feet Again. WHEELING, Aug. 25. - The Exchange bank of this city. which suspended three weeks ago, will resume operations Sept. 15
Two committees have been at work this week, one representing the directors and the other the stockholders of the Exchange Bank, who carefully went over every detail of the assets of the bank and of its liabilities. They found affairs in much better shape than those not already familiar with the bank had supposed, and it was decided to recommend that the bank resume business as soon as practicable. To-day a canvas will be commenced for additional subscriptions to the capital stock, the desire being to increase the capital by $100,000, but the resumption of business does not depend in any degree upon the success of this canvass. In going over the assets all doubtful securities were rigidly scaled to the low. est notch, and yet it was found that the assets far exceeded all liabilities, including the capital stock. The committee found that the bank was in condition to open its doors at once, and could probably pay all demands on it, but in order to make sure depositors had confidence in the institution it was wise to submit to them a proposition, and a paper for their signature, agreeing to accept for their deposits three certificates of deposit, each for one-third of the amount, these to run four, eight and twelve months, respectively, and to bear interest at 3 per cent per annum. This would secure the bank from the results of any possible scare, and enable it to go on with its new business without embarrassment. It would also doubtless be an advantage to the creditors in the long run, as'it would enable them to draw out one-third of their deposits in four months if they desired, while it is scarcely probable that so much can be paid in dividends in that time if the bank remains in the hands of the assignee. Already Wheeling depositors representing about $200,000 of the claims against the bank have signed the agreement referred to, and if the rest do 80 Assignee Jones will re-transier the bank assets to the Exchange Bank corporation and the business will go on as if it had not been interrupted. It can be seen readily that the general acceptance would be to the advantage of the depositors, of the bank and especially of the community at large, which really needs an increase of its present banking facilities.
IT WILL RESUME. THE EXCHANGE BANK TO BE PLACED ON ITS FEET. A Meeting of Stockholders, at Which a Resolution to Increase the Capital Stock Passed Unanimously-Will Reopen in a Few Days. The efforts which have been made ever since the assignment of the Exchange Bank, to rehabilitate that institution, culminated in a meeting of the stockholders which was held yesterday afternoon. The result of the meeting will be the reopening of the doors of the bank. This will be gratifying news to the people of Wheeling generally, and the mercantile and manufacturing interests in particular. The lack of sufficient banking facilities has been given as one of the reasons for the temporary suspension of work in many of the industrial plants, and has also been felt in the business houses. This, however, is not the only good result of the reorganization of the Exchange Bank. It means that the depositors will receive their money much sooner than they otherwise would, if the affairs of the institution were settled up by the assignee. It also means that the credit of the city, which has been of the very best, heretofore, will be maintained. The meeting yesterday afternoon was very well attended. The roll call showed 1,800 of the 2,000 shares of stock represented. Some time was spent in an informal discussion of the affairs of the bank, before the bustness for which the meeting was called was taken up for consideration. The condition of the bank was revealed to all the stockholders, in order that they might vote intelligently upon the resolution which was offered by Mr. John Frew. A large majority of the depositors have accepted the proposition of the bank relative to the settlement of their claims. The resolution offered by Mr. Frew was as follows: "Resolved, That the capital stock of the Exchange Bank of Wheeling be increased to the amount in all of three hundred thousand dollars, by the issue and sale at par of one thousand additional shares of capital stock of the par value of one hundred dollars per share. and the aggregate value of one hundred thousand dollars." This resolution was read at the meeting and was unanimously adopted by the stockholders. The old stockholders at once subscribed to $54,000 of the proposed increase in the capital stock. Of the remainder the stockholders will purchase the greater portion, and it is thought that there will be no difficulty in disposing of the remainder. The institution will reopen its doors with an increased capital stock, and with as good facilities as before. The date for resumption of business has not been established, nor is it possible to do more than approximate the time. The bank is now in the hands of the assignee. Mr. J. J. Jones. It will be necessary to straighten up its affairs, to attend to legal matters in connection with the assignment, and then to formally transfer the assets and liabilities back to the stockholders. This will require some time, but it is expected that the bank will reopen its doors inabout three weeks.
The Exchange Bank Opens To-day. This morning at the usual hour for opening banking business the Exchange bank will re-open its doors after being closed 45 days. It suspended business August 5. and now re-opens with $100 000 additional stock and the brightest prospects for the future. It bids fair to again assume at once that leading position among local financial institutions which it al ways held.
21.September 21, 1893New-York TribuneNew York, NY
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SUSPENDED BANKS RESUMING BUSINESS. Wheeling, W. Va., Sept. 20.-The Exchange Bank, the suspension of which early in August almost caused a panic in the city., reopened its doors today. The bank is on a sounder basis than ever, having $100,000 additional stock. Denver, Col., Sept. 20.-The Rocky Mountain Dime and Dollar Savings Bank opened for business yesterday. This is the first of the four failed savings banks to resume. Deposits amounted to fully five times the withdrawals.
22.September 27, 1893The StarReynoldsville, PA
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Financial and Commercial. The National bank of Ashland, at Ashland, Neb., resumed business in an excellent condition. The Exchange Bank at Wheeting, W.Va., which suspended last month, has reopened under a new organization and largely increased capital. This resumption will release about $900,000 which has been tied up. The Rocky Mountain Dime and Dollar Savings Bank, of Denver, opened for business. This is the first of the four failed savings banks to resume. Deposits amounted to fully five times the withdrawals. The daily statement of the United States treasurer shows for the first time in two weeks t he receipts of the government to be in excess of the expenditures, the figures for the month thus far standing as fotlows: Receipts, $17,272,851; expenditures, $17,062,000, Of the latter amount $8,518,500 was on account of pensions. The gold reserve to. day was $95,684,317. The net balance is now $11,819,278.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
