The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1893-07-29
I !: X | R 4 !! /!
WORSE THAN BLUNDER.
The Panicky Action of the
New York Savings Banks
Almost a Crime.
GENERAL RUNS STARTED.
Stock Market in the Bears Hands
Trenton and Newark
Affected.
GENERAL RUNS STARTED.


banks and institutions to put into force
the law emitting them to Sixty
days notice from depositors OF
Intended Withdrawals of money
prec,pitated run this morn
ing. Some of the banks paid the
amounts in full and thus sought TO re-
store confidence. Others required notice,
tie times ranging from ten TO ninety
days, according to the period specified in
the bylaws.
The meeting of the presidents at the
Emigrant Industrial Savings Bank yes
serday afternoon was called, said Presi-
deut james McMahou, OF that bank,
today, to consider what action would
he advisable to relieve the heavy
drain that has been made since the pres
eut financial depression commenced. Each
president was invited TO give his expert
ence since the drain began and what, IN
his opinion, should be done TO stay 1t. ihey
Ail agree that the withdrawal OF
deposits was in much greater proportion
tnan the money coming 10. We can't
DO business" said one. with So0,O0O Do
Ing taken out daily aud only Sl0. .000 De-
lug deposited"
s.It was the conceusus of opinion that
the enforcement OF the sixty day clause
small deposits $500 or less-the bank de-
cided To accept 80 days notice. The exact
time, however, will be governed by
lie bylaws of the individual banks.
All the banks were not represented. and
some of them protessed not to know OF
the action taken uutil reading 1t in the
papers.
NOT BINDING.
"Our decision is not binding on any
one, and have no doubt many will avail
themselves of the action. But the
Stronger ones will, aud will do SO 10
Introduce tine uniform nolicy. My bank
Is in an excellent sound position. bat
ou Monday l shall lead the way. You
understand. of course. that each bank
scGs under the management Of its Presi-
dent aud Board OF Directors. They must
meet and decide before their instruction
can cooperate with US.
Il will say, furthermore, that we had
the broad interests of the whole financial
community in mind when we came to
our conclnsion. 1t Is said that the money
Withdrawn from the savings institutions
" ent to Wall street aad elsewhere in
iuyesl ment. No doubt II small portion
uId 20 thitheF, and in so far the drafts
were benefit TO all. But it is absurd To
suppose that the people VINO are depos-
tors In our DAnSs buy securities III Wall
street. They hoard aud the greater mass
of our cash losses, WAS put III hiding and
late been sending dowd to the down town
banks and trust companies every day or
two for $50, 600. S25, 900 and $4,000. This
made our drain eventually drag
on the whole money market. Our
action, or rather our advised course, Will
thus put a stop In y measure to one hole
in the conimunity's cash resources. If
our plan OF formal aud uniform au-
nouncement had been followed from the
first, it would have caused no alarm and
Lo confusion"
WHAT OTHER PRESIDENTS SAY.
President McMahon saidsit Was pub
Ilshed that the bank presidents had
agreed to put the law into effect. ''This
Is erroneous" he declared, s'and in these
grave times the public should
he correctly informed. The &C
lion was recommended aud was
not made compulsory. The rresi-
dents will cali meetings of the boards Of
directors of their respective banks today, ),
aud il they sanction the plan, their banks
VIII do as they please"
President William G. Sturges, of the
Seamen's Saving Bank, sRid:--"We shall
n1t put the law into effsct today" He
refused to say when such action would
bs taken by tue bank.
A large number of persons withdrew
their deposits from the bank. The bank
officials, however, attempted to make
light of the matter aud declined to state
the exact amount WltHQrHWD.
President ID. NJ. Demarest of the Irving
Savings Institution said;-'.I was not
present at the meeting. When we opened
our doors this morning so many
depositors demanded ltheir money
,naG we were obliged to put
the law into effect In the case of
large demands We met all the small
demands ] can not say how much was
Withdrawn. We shall call meeting of
the board of directors to CONSIDER
wheth her we shall continue to enforce the
law"
A BEAR RAID.
The action OF Tue savings banks In de-
c.ding 10 take advantage of the sixty
day clausen was naturally the Iesding
topic of discussion In Wall street to-
day. Even the remarkable gyrations in
General Electric yesterday anu again this
ming attracted little attention, so
Uncut were operators and others upon
arriving at correct conclusion as TO the
possible effect of the latest turn in saw
ings bank affairs.
The bears, of course, made the most of
the situation, and literally Jumped on the
market at the opening, using General
Electric and Cnicago Gas as special tar
gets.
lne initial trading was attended with
considerable excitement, and was great
strain upon brokers VINO had orders to
execute for customers.
Run on brooklyn Bank.
BROOKLYN, N. Y, July 30, 1873. ~ There
Is slight run on the Brooklyn SAVINGS
Bank. About one hundred people are in
line. The run is caused by the action of
The Savings Banks Presidents yesterday
requiring thirty days notice. Cashier
Fiandreau said the bank was in good con
ditlon and all depositors who demand
their money today will be paid 10 full.
The Dime Savings Bank of Brook lyn
aud the South Brooklyn Savings Bank
both put into operation today the thirty
aud sixty day rule, The Germania Saw
ings Bank Of Kings County announce
that tney will put the same lue into
oDef alton on Monday morning All Of
the Savings Banks of Kings County will
probably do tbe same.
Run in Trenton.
Special to The ,7ersepCftD Neos.
TRENTON. July 29. 1S93.-A run COM
m-nced this morning on The Trenton
Savings Bank, aud by noon about $4,000
was paid out. The bang is one of the
strongest in the State, having
ciean surplus of $685.. 900. The mousy
paid out this morning WAS in new silver