Article Text
Run on a Bank. Philadelphia, Dec. 1.-[Special]Rumors about thecondition of Keystone National Bank, of this city, caused a run on the bank, and $350,000 was paid out to depositors. The bank is perfectly solvent.
Keystone National Bank (Philadelphia, PA)
Episode Information
- Episode UID
229101092- Episode Type
- Run → Suspension → Closure
- Bank Type
- national
- Bank ID
-
22910national - Charter Number
- 2291
- Start Date
- December 1, 1890
- Location
- Philadelphia, Pennsylvania (39.952, -75.164)
Metadata
- Model
- gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
343988b80fb560ff
Response Measures
Accommodated withdrawals, Borrowed from banks or large institutions, Clearinghouse loan, Capital injected, Partial suspension, Full suspension, Books examined
Clearinghouse involved: Yes (loan, examination, or other measures)
Receivership Details
- Depositor recovery rate
- 18.0%
- Date receivership started
- 1891-05-09
- Date receivership terminated
- 1902-01-31
- OCC cause of failure
- Fraud
- Share of assets assessed as good
- 33.3%
- Share of assets assessed as doubtful
- 57.7%
- Share of assets assessed as worthless
- 8.9%
Description
Initial December run blamed on rumors though later examination revealed internal defalcations that led to government closing and receivership.
Events (5)
1.
July 30, 1875
Chartered
- Source
- historical_nic
2.
December 1, 1890
Run
- Cause
- Rumor Or Misinformation
- Cause Details
- Unfounded or circulating rumors concerning the bank's condition prompted heavy withdrawals in early December 1890.
- Measures
- Paid out currency for small checks; larger demands given clearing house due bills; assistance from other banks and Clearing House advances.
- Newspaper Excerpt
- Rumors about the condition of Keystone National Bank... caused a run on the bank, and $350,000 was paid out to depositors.
- Source
- newspapers
3.
March 20, 1891
Suspension
- Cause
- Government Action
- Cause Details
- Closed by the Comptroller of the Currency/examiner because its reserve had fallen below the legal requirement.
- Newspaper Excerpt
- The Keystone National Bank of Philadelphia suspended business last week. It was closed up by order of the government bank examiner.
- Source
- newspapers
4.
May 9, 1891
Receivership
- Source
- historical_nic
5.
May 9, 1891
Receivership
- Newspaper Excerpt
- The Comptroller of Currency Lacey has appointed Hon. Robert M. Gardley of Doylestown, Pa., receiver of the Keystone national bank of Philadelphia.
- Source
- newspapers
Newspaper Articles (23)
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Recovering. PHILADELPHIA, Pa., Dec. 2.-The run on the Keystone National bank continues today with unabated vigor. All persons presenting checks for $100 or less were paid in currency, but any whose demands exceeded that amount are given clearing house due bills. By an arrangement with the clearing house banks, these due bills will be honored at any bank.
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Bank Officers Rejoice. PHILADELPHIA, Dec. 3.-The run on the Keystone National Bank has collapsed. and the officers of the institution, and those who have stood behind it in the hour of its peril, are rejoicing over their victory. Many depositors who drew out their funds have redeposited them.
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A run of depositors on the Keystone National Bank, Philadelphia, on Monday caused considerable excitement in financial circles. The deposits for the day, the cashier said, amounted to $117,000 and the withdrawals $409,000. City Treasurer Bardsley said he would make no demand for nearly $400,000 of city money deposited in the bank. The president said last night matters have been adjusted and payments would be resumed this morning.
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DURING the run on the Keystone Na. tional Bank of Philadelphia persons were observed to draw their money from the paying teller, walk around to the next desk and hand the same money to the receiving teller. They were small depositors who merely wanted to know whether their money was there. The heavy depositors kept on depositing, the other banks helped, and the Keystone weathered the storm.
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THE KEYSTONE BANK TROUBLES. It is Learned that Its Ex-President. Now Dead, Owed it Large Sums. PHILADELPHIA. March 22. - Facts were brought to light to-day which indicate that the trouble in the Keystone National Bank. which was closed by the Comptroller of the Currency on Friday last, dates far back of the run inaugurated during the financial stringency of last December. It was stated to-day that President John Lucas, who died in 1888. owed the bank large sums of money. and that this fact was concealed from several of the directors. although known to the others. President Lucus at the time or his death owned the Keystone Bank building. A handsome structure, the erection of which cost over $400,000. This he is said to have built with funds borrowed from the bank. Lucas's death resulted from cold contracted while superintending the erection a the building. At the time of the trouble in December the widow of Mr. Lucas turned the building. which had been mortgaged by her late husband for $200,000. over to the Board of Directors. It was announced then that she had generously come to the assistance of the distressed institution. The building was immediately sold for $175,000 above the mortgage. After the December trouble had tided over five of the directors. it is said, learned for the first time that Mr. Lucas had used the bank funds. These directors were reelected at the January meeting of the stockholders. but refused to serve and their places have not since been filled. Ona of the five is said to have advanced the bank $100,000 at the time of the run. and he also went security for $50.000 more borrowed from the Clearing House Association. The Association at the time advanced the bank $780,000, all but $300,000 of which has been paid back. It is now thought that a heavy assessment of the stockholders will be necessary for the bank to resume.
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The Keystone Bank May Resume. PHILADELPHIA, March 24-An effort is being made to establish the Keystone National Bank with new capital. The bank was placed in the hands of a receiver last week.
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THE run on the Keystone National Bank, at Philadelphia, last fall, which was supposed to have been successfully met culminated in the bank being closed by the national examiner Friday, for allowing its reserve to fall below that required by law.
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The Keystone National Bank of Philadelphia suspended business last week. It was closed up by order of the government bank examiner.
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THE Keystone National Bank in Philadelphia, closed its door on Friday by order of the Comptroller of the Curreney. Its reserve was below the limit. It issupposed to be solvent. Over $400,000 of Philadelphia and $150,000 of the State funds are locked by its suspension.
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SINCE last week two prominent National Banks have suspended. The first to go under was the Keystone of Philadelphia. Later, the Washington National Bank of New York went under. Its affairs are said to be bad. The Keystone bank will make an effort to resume.
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The Keystone Bank Will Resume. PHILADELPHIA, April 2.-The affairs of the Keystone National bank are gradually issuing from a state of chaos, and the officers are confident that within a few days the doors of the institution will be again opened for business, which will be conducted on a firmer basis than has existed since the panic of last winter.
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Bank Officers Arrested. PHILADELPHIA, May 4.-Gideon W. Marsh, president of the Keystone National bank at the time of its suspension in March last, and Charles Lawrence, ex-cashier of the bank, were arrested today, charged by Bank Examiner Drew with conspiring together to make false reports of the condition of the bank.
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Appointed Receiver. WASHINGTON, May 9.-The Comptroller of Currency Lacey has appointed Hon. Robert M. Gardley of Doylestown, Pa., receiver of the Keystone national bank of Philadelphia.
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Receiver of the Keystone Bank. WASHINGTON, May 9. -The controller of the currency has appointed ex-Congressman Robert M. Yardley of Doylestown, Pa., receiver of the Keystone National Bank of Philadelphia.
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Receiver for Kevstone National Bank WASHINGTON, May 9-Hon. Robert M. Yardley has been appointed by the comptroller receiver of the Keystone National bank of Philadelphia.
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TO BENEFIT CREDITORS. Mr. Lacey Explains the Delay in Closing the Keystone Bank. W ASHINGTON, June 4.-Mr. Lacey, the comptroller of the currency, replying to criticisms of his bureau for having allowed the Keystone National bank of Philadelphia to remain open for business after the discovery of the Lucas defalcation, said: "As a matter of fact both the closing of the bank and the appointment of a receiver were ordered by the comptroller against the unanimous protest of all who had sufficient interest to express an opinion. There were many reasons why it was especially desirable to avoid a receivership, notably on account of its assets being so largely in real estate, which could only be sold by a receiver under order of the court, and hence at great disadvantage. Hence to were the yield the comptroller made to several to reopen hopeful deemed the attempts it bank his duty by which contribution of new capital under new and competent management. "A a matter of fact it was officially reported to the comptroller that $300,000 of new capital had been subscribed and that the Lucas estate was expected to make good all amounts which a complete examination should show to be due from them. Recent developments have shown that these plans could never have been carried out, but they were sufficiently promising at the time to warrant the delay asked for. In short, whatever was done was with the sole purpose of best serving the interests of creditors of the unfortunate bank."
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At the Opera. No special attempt at decoration was made last night at Albert hall. The audience numbered about 6,000 and the artists included Albani, Nordia Belle, Edward Lloyd and the choral society. The kaiser wore the uniform of a British admiral. The kaiserin had a dress of cardinal silk with a dazzling tiara of diamonds. At the conclusion of the "Kaiser's March" the audience arose and cheered the imperial visitors and the kaiser and kaiserin bowed repeatedly. The queen's box, enlarged for the occasion, was occupied by the imperial royal personages. To Make an Exhaustive Examination WASHINGTON, July 10. - Secretary Foster has instructed Messrs. Brown and Faunce, the experts appointed to examir e the Keystone and Spring Garden banks in Philadelphia, to make a complete and exhaustive examination of those banks, exercising their own discretion as to whether they would work singly or together. They are instructed to submit partial reports every Saturday, showing the progress made and results attained, and at the conclusion of their work they are directed to make a complete report. The comptroller has directed Receivers Yardley and Fisher to furnish Messrs. Brown and Faunce all possible facilities to render their work effective.
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A BANK WRECKER SENTENCED. THE LATE CASHIER OF THE KEYSTONE BANK GETS SEVEN YEARS-OTHER SENTENCES POSTPONED. Philadelphia, Aug. 18.-Charles Lawrence, ex-cashier of the broken Keystone National Bank, who yesterday pleaded guilty in the United States District Court to two indictments charging him with making false entries in the bank's books and with conspiracy with Gideon W. Marsh. president of the bank, to make false entries, was this morning sentenced by Judge Butler to eight years' Imprisonment in the Eastern Penitentiary at labor and to pay a fine of $100 and costs. The Judge subsequently reconsidered Lawrence's sentence, and reduced it to seven years' imprisonment. Francis W. Kennedy. president, and Henry H. Kennedy, cashier, of the suspended Spring Garden National Bank, were also brought before Judge Butler this morning. The two Kennedys also pleaded guilty yesterday to making alse returns to the Controller of the Currency, to misapplying the funds of the bank, and to making false entries in the books. After the two men had pleaded guilty, Judge Butler was petitioned by their counsel to suspend sentence to allow them to get their affairs into order. and also on the ground that they could be of great assistance to the receiver of the bank in disentangling Its affairs. Judge Butler reserved his decision on the matter until to-day. This morning he decided to grant the petition, and postponed sentence until September 8.
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PHILADELPHIA'S ROTTEN BANKS. The Keystone's Cashier Gets Beven Years at Hard Labor. PHILADELPHIA, PA., Aug. 18.-Charles Lawrence, ex-assistant cashier of the broken Keystone National Bank, who yesterday pleaded guilty in the United States district court, to-day pleaded guilty to two indictments charging him with making false entries in the bank books and with conspiracy with Gideon W. Marsh, president of the bank, to make false entries, was this morning sentenced by Judge Biddle to seven years' imprisonment in the eastern penitentiary at hard labor and to pay a flue of $100 and costs. Franois W. Kennedy, president, and Henry H. Kennedy, cashier of the suspended Spring Garden National Bank, were brought before JudgeButler this morning. The two Kennedys also pleaded guilty yesterday to making false returns to the controller of the currency, misapplying the funds of the bank and making false entries in the books. A SUSPENSION OF SENTENCE GRANTED. After the two men had pleaded guilty Judge Butler was petitioned by their coun. sel to suspend sentence to allow them to get their affairs in order, and also on the ground that they could be of great assistance to the receiver of the bank in disentangling its affairs. Judge Butler reserved his decision on the matter until today. This morning he decided to grant the petition and postponed sentence until Sept. 8.
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LAWRENCE GETS SEVEN YEARS. The Sentence of the Two Kennedy's Postponed Until September. Philadelphia, Aug. 18.-[Special.]- |Charles Lawrence, ex-assistant cashier of the broken Keystone National Bank, who yesterday plead guilty in United States District court to two indictments charging him with making false entries in the bank's books and with conspiracy with Gideon E. Marsh, president of the bank, to make falso entries, was this morning sentenced by Judge Beade to seven year's imprisonment in the eas. tern penitentiary at hard labor and to pay a fine of $100 and costs. Francis W. Kennedy, president, and Henry H. Kennedy, cashier of the suspended Spring Garden National Bank, were brought before Judge Butler this morning. The two Kennedy's also plead guilty yesterday to making false entries to the comptroller of the currency, misplacing the funds of the bank and making false entries in the books. After the two men had pleaded guilty Judge Butler was petitioned by their counsel to suspend sentence to allow them to get their affairs into order. and also on the ground that they could be of great assistance to the receiver of the bank in disentangling its affairs. Judge Butler reserved his decision on this matter until to-day. This morning he decided to grant the petition and postponed sentence until September S.
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EXPERTS STOP WORK. The Appropriation to Examine the Key. stone Bank Runs Out. PHILADELPHIA, Sep. 11.-Experts Lawrence E. Brown and Taylor Faunce have stopped work as government agents in examining the books of the defunct Keystone National Bank, made necessary by the exhaustion of the special appropriation to pay experts on defunct banks. The suspension was unexpected, as no one dreamed that such a paltry sum as $5,000 was the total applopriation for work that might include hundreds of the 5,000 national banks in the country. This state of affairs is particularly unfortunate in the Keystone Bank's case, as it will necessarily greatly impede the investigation, although Secret Service Agent Albert Barrett. who is employed on a salary, will continue the work. Mr. Faunce to-day said that he and Mr. Brown had just reached a place where they saw daylight in the darkness, which has surrounded the mysterious disappearances of the money from the bank. Had they continued on the books they had expected to shortly clear up the mystery. Messrs. Brown and Faunce will continue, however, to work on Bardsley's accounts for the city.
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Ex-Congressman Robert M. Yardley, receiver of the Keystone National Bank of Philadelphia, has been rotified that he had also been made receiver of the Spring Garden National Bank of Philadelphia.