Accommodated withdrawals, Public signal of financial health
Description
Multiple contemporaneous newspaper dispatches (Nov 6–9, 1905) report a three-day run on the Indiana Harbor State Bank that was checked and nearly all withdrawn funds redeposited after officials displayed piles of currency and gold. Cause attributed to alarm among wage earners when a major employer paid wages in cash instead of checks (misunderstanding/rumor). No suspension, receivership, or permanent closure is reported.
Events (1)
1.November 6, 1905Run
Cause
Rumor Or Misinformation
Cause Details
Workers were frightened after Inland Steel paid wages in cash rather than checks drawn on the bank, leading them to conclude something was wrong and precipitate withdrawals.
Measures
Bank officials displayed large piles of currency and gold in view of depositors to reassure them; this quelled the withdrawals and most funds were redeposited.
Newspaper Excerpt
The financial storm raged for three days and the tempest was quieted solely by the sight of piles of currency and gold which the bank officials placed in view... The run at last was checked, and nearly all the money that was drawn out has been re-deposited.
Source
newspapers
Newspaper Articles (7)
1.November 6, 1905The Topeka State JournalTopeka, KS
Click image to open full size in new tab
Article Text
SIGHT OF MONEY. Starts Run on a Bank and Also Stops It. Chicago, Nov. 6.-Cash payments of wages in Indiana Harbor frightened the employes of the big factories there so greatly last week that they started a run on the Indiana Harbor State bank. The financial storm raged for three days and the tempest was quieted solely by the sight of piles of currency and gold which the bank officials placed in view of the ignorant foreigners who were clamoring for their money. The run at last was checked and nearly all the money that was drawn out has been re-deposited. The ánomalous fright resulted from the fact that the Inland Steel company at the end of the previous week, on the regular payday paid in cash instead of following its old custom of giving the employes checks drawn on the bank. This led to the conclusion that something was wrong with the bank. and the run ensued.
2.November 6, 1905Evening StarWashington, DC
Click image to open full size in new tab
Article Text
Three Days' Run on Bank Checked. CHICAGO, November 6.-Cash payments of wages in Indiana harbor frightened the employes of the big factories there so greatly last week that they started a run on the Indiana Harbor State Bank. The financial storm raged for three days, and the tempest was quieted solely by the sight of piles of currency and gold which the bank officials placed in view of the ignorant foreigners who were clamoring for their money. The run at last was checked, and nearly all the money that was drawn out has been redeposited. The anomalous fright resulted from the fact that the International and Steel Company at the end of the previous week, on the regular pay day, paid in cash instead of following its old custom of giving the employes checks drawn on the bank. This led to the conclusion that something was wrong with the bank and the run ensued.
RUN ON THE BANK Continued for Three Days But Money is Deposited Again. Chicago, Nov 6.-Cash payments of wages in Indiana Harbor frightened the employes of the big factories there so greatly last week that they started a run on the Indiana Harbor State bank. The financial storm raged for three days, The run at last was checked. and nearly all the money that was drawn out has been re-deposited. The anoamlous fright resulted from the fact that the Inland Steel Co at the end of the previous week. on the regular pay day, paid in cash instead of following its old custom of giving the employes checks drawn on the bank.
4.November 6, 1905The Providence NewsProvidence, RI
Click image to open full size in new tab
Article Text
CASH PAYMENT OF WAGES CAUSED RUN ON BANK Chicago, Nov. 6.-Cash payments of wages in Indiana Harbor frightened the employes of the big factories there so greatly last week that they started a run on the Indiana Harbor State bank. The financial storm raged for three days. The run then was checked and nearly all the money that was drawn out has been re-deposited. The anomalous fright resulted from the fact that the Inland Steel at the end of the previous week. on the regular pay. day paid in cash instead of following its old custom of giving the employes checks on the bank.
5.November 7, 1905Los Angeles HeraldLos Angeles, CA
Click image to open full size in new tab
Article Text
CASH CAUSES FRIGHT Payment of Wages to Laborers in Currency Starts Run on Indiana Harbor Bank By Associated Press. CHICAGO, Nov. 6.-Cash payments of wages in Indiana harbor frightened the employes of the big factories there so geatly last week that they started a run on the Indiana Harbor State bank. The financial storm raged for three days and the tempest was quieted solely by the sight of piles of currency and gold which the bank officials placed in view of the ignorant foreigners, who were clamoring for their money. The run was at last checked and nearly all the money that was drawn out has been re-deposited. The anomalous fright resulted from the fact that the Inland Steel company at the end of the previous week on the regular pay day paid in cash instead of following its old custom of giving the employes checks drawn on the bank. This led to the conclusion that something was wrong with the bank and the run ensued.
6.November 7, 1905Daily Kennebec JournalAugusta, ME
Click image to open full size in new tab
Article Text
CASH PAYMENT OF WAGES Starts Run on Indian Harbor, III., Bank -Lasts Three Days. Chicago, Nov. 6.-Cash payments of wages in Indiana Harbor frightened the employes of the big factories there so greatly last week that they started a run on the Indiana Harbor State Bank. The financial storm raged for three days. The run at last was checked and nearly all the money that was drawn out has been re-deposited. The anomalous fright resulted from the fact that the Inland Steel Co., at the end of the previous week, on the regular payday, paid in cash instead of following its old' custom of giving the employes checks on the bank.
7.November 10, 1905Fergus County ArgusLewistown, MT
Click image to open full size in new tab
Article Text
Run on Bank Ends. Chicago, Nov. 9.-Cash payments of wages in Indiana harbor frigtened the employes of the big factories there so greatly last week that they started a run on the Indiana Harbor State bank. The financial storm ragea for three days and the tempest was quieted solely by the sight of piles of currency and gold which the bank officials placed in view of the ignorant foreigners who were clamoring for their money. The run was at last checked and nearly all the money that was drawn out has been redeposited. The anomalous fright resulted from the fact that the Inland Steel company at the end of the previous week on the regular pay day paid in cash instead of following its old custom of giving the employes checks drawn on the bank. This led to the conclusion that something was wrong with the bank, and the run ensued.
