The Democrat. (Scotland Neck, Halifax Co., N.C.) 1884-1896, 1891-10-15
SAWYER'S BANK RUN.
How the Senator Stopped It 10 the
Great Panic Of 1873.
An Ingenious scheme which Helped
the Banks Of Wisconsin Town
-. Through Very Tight So,
--s-1 Squeeze.

~-s-a squeeze.
h
The panic o. 1878 happened to be
mentioned in the presence OF Senator
Sawyer while in Detroit lately. saws tie
Free Press remember very well when
| first heard Of it." he sad u was
president Of national bank at Oshkosh,
Wis.,with a capital Of fifty thousand dol
lars and four hundred thousand dollars
of deposits. | felt assured that If the
prediction was correct there was
trouble ahead. ] arrived home in the
evening and at once called the directors
together, told them the news and adj
vised that our bonds be at once convert
ed into currency in order TO be prepared
for run upon the bank. They agreed
to 1t. | offered to loan them several
thousanc of my own bonds, and 80 we
managed to get together between three
hundred thousand dollars and four hun
dred thousand dollars of bonds. /
packed them INTO my grip and the same
night left for Chicago.
''As soon as the banks opened in the
morning ! went the rounds, trying to
exchange the bonds for currency. No
body would touch them. They were
afraid. They were in our fix exactly
They wanted all the currency they
could lay their hands on. SO without
waiting any longer | took the train for
New York
4 went to the bank with which we
did business. and somewhat to my sur
prise they agreed to take all the bonds
in exchange for currency. They thought
there was money enough in New York
to help the country out. The bankers
were even then sending currency to
Chicago. AS it turned ont, they were
not as well off as they thought they
were, and | was very lucky in my early
deal
"Well, in less than an hour my grip
was emptied of the bonds and filed with
currency. l went up to my hotel and
paid my bill While waiting | bought
an afternoon paper. The first news |
struck was a dispatch saying that every
bank in Chicago had suspended pay
ment. l knew what the effect would
be on the country banks and l made q
rush for the telegraph office.
ut had been agreed before | left home
that if l could not sell the bonds |
should wire them that / was very sick.
If | sold only part, that ! was sick but
should start for home. If | was sue
cessful, that I was quite well. l tele
graphed: Never SO well in my life and
left for home.
81 reached home about o'clock in
the morning. The day previous there
had been some pressure on the bank,
but depositors had been assured that |
was on my way back from New York,
and that as soon as | arrived depOsitors
would be paid without delay. On re-
ceipt of my telegram they were told
that | would be in on the morning train,
and that as soon as the bank opened de-
positors would be welcome.
We'll. went TO the bank and made
ready. There was narrow table in the
space behind the counter which stood
up against the wall On this we piled
the ledgers and other big bank books,
making pile about two feet high and
as many in length. We covered these
books with the currency, and on top of
that what coin we had SO as to make it
look like a solid pile of money. We
had enough, anyway, to meet all claims,
but we wanted, if possible, to prevent a
run.
I'm the meantime we sent out some
of the bank men and friends of the
bank, who went blowing and talking
all over town that Sawyer had got
back with CARLOAD of money
'Well, when the bank opened thirty
or forty people came running in with
checks in their hands. When they saw
that pile of money it staggered them.
Some stood their ground notwithstand
ing and got their money, but most OF
them looked sheepish, chucl1ed their
checks in their pockets, pretended that
they had come in on some other bust
ness, or snealxed out without word
The news soon spread, and although
fifty thousand dollars was checked out,
the whole of it and more was rede-
posted before night. The deDositors
at the other banks began drawing out
and putting in with us and threatened to
run them out.
$50 we determined to put stop
to that and not have panic in the
town at all. We conferred with the
other banks. and it was agreed that it
should be announced that Sawyer had
brought money enough home to let the
other banks have all they needed This
did the business, and no run was
on any of us