Grand Rapids herald. [volume] (Grand Rapids, Mich.) 1892-1959, 1893-06-14
Small Deposition Become vsy
Much Alarmed
AND ATTEMPT TO DRAW FUNDS
The Ninety Day Lac u Usoa ~ he
bank aad Bi9 Iszps,sias Re-
secre Confldencs.

Pie Savtpgo uuuk etnpu run Uht4y
and stood 1t we'll. The financial excite
ment which has been shifting about the
country for the past few xeoks struck
Detroit yesterday afternoon and with
out the faintest rhyme - reason fas
tened itself On the PedPle'k In the
course of the days business over $4,000
Was paid out and 20 accounts clo~ed.
AS Is usual in such eases the frightened
depositoss were the poorly informed and
ignorant. whose suaii all Vas in the
hank. Long before banking hours this
morning Griswold street Was crowded
with an excited. fearful. eesticulating
mob. most Of whom were bent on with
drawing their money at the earliest pos
sibIe opportunity Most Of them we're
women. who could give no reason Tor
FOR the panic which had seized them.
Ali the more incomprehensiy was il be-
CAUSE the run was ON the oldest and
strongest savings institutions Ia the
city.
In view Ok yesterdays experience.
when the hanks opened for business the
officials handed each deposition "a notice
signed 10y the fourteen savings banks VI
the city that In view OF the uneaslncss
Zach bank would take advantages OF the
ninety day law.
Restoring Confidence.
When the c.amorous depositors at the
paving tellers window were informed
that no savings deposits could be with
drawn for ninety days, the majority of
them turned away scemingly satisfied.
Many of them were so ignorant that they
did not know what il all meant. but
turned away satisfied.
At the receiving tcller's window a
stream Of depositors were paying in
money. These were the more intelligent
business men. and their action did much
10 restore confidence. Every savings
bank in town sent support TO the people.
Detectives and policemen were as thick
as flies TO anticipate the work OF crooks.
Heavy depositors argued with different
groups and told the excited men and
women that the bank had $l3Oc0000 in
mortgages in the safe. &6,00O.000 more
than was needed to pay all accounts.
Such statements bad the desired effect
and by afternoon the crowd had thinned
out.
What Caused the Fright
This subducd uneasiness has been
prevalent for about five weeks past.
said NJ. W. OBrien. president OF the
bank 1T is the same feeling Of uneas-
mess that has been felt all over the
country. and there is cood reason to be
lieye that Detroit would escape 1t. The
present tidal wave of fright began with
a Milwaukee bank. then it reached Chi
cago. and we are nov beginning 10 feel
il In Detroit. Our reason for taking ad
vantage Of the ninety day notice is that
we are satisfied that a reckless paying
out os deposits would be ruinous IL the
business interests Ut Detroit IL Is
always ruinous to pay out money simply
for boarding purposes. This uneasiness
is on its way To the Atlantic from the
west. The trouble originated in the
last congress, With the attempt To re-
peal the Sherman law. Nothing was
done there. and then the excitement
was transferred to Wall street. in New
York"
Detroit Banks Are Solid.
There is no question hut that there is
a stringency in the money market and
that il has caused uneasiness among
those depositing in the banks of the
state" said Commissioner Sherwood.
Prom the reports OK both state aud
national hanks made 10 me May 4.
find the banks Of the state In good con
dition, and there should be no uneasi.
ness among depos;.ors. for the securities
taken by the banks the last year have
certainly not deprecated in value. for
they are now ar low or lower than they
have been for many years past.
banking is built up or confidence.
and certainly the banks 81 Detroit
should have the confidence of every de
positor. for they are conservatively and
honestly managed. j certainly would
advocate taking advantage of the ninety
day rule in times of excitement. just a.
I would advocate martial law when citi-
zens. usually peaceablc. are wild with
excitement.
"No bank can sustain itself in a pro
.racted run. neither should II allow un-
usual demands 10 bc made upon IL. for
the drawing out of even one quarter ~
the deposits of the Detroit banks and
the retiring ~ the game from active cir.
cula;ion would paralyze every manufac-
turing and business interest IN the city
and cause distress among those who
depend upon these interests FOR liyeli-
hood II Is to the interest of every ciii
zen ~ Detroit IN these times to stand hy
and support the hanks. because our
finances are the hfcllooi a the com.
munity. and should he allowed la How
uprrssrained through the tugular chan.
pcls of lttsis,eca