Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1899-12-23
A SENSELESS RUN
Started on Portland Savings
Bank, During Friday.
The Bank Perfectly Sound But Excited
People Demand Their Money.
10 Gain lime for Securing Currency Bank Re-
quires the Legal Notice.

Ni'hii'NH ollSlu concerning tne SOlNcn-
cy Of the Portland Savings Bank. one
Of the soundest institutions Of the
kind in the country, started run on
the bank, today. Depositors began to
call for their money in the morning
and there was steady demand until
the hour of closing AS the deposits
were turned over as fast as the books
We're presented, most of the payments
being in gold, there was no great ex-
element ana not few returned and
re-deposited their money. The crowd
had reached such proportions. early in
the afternoon. however, that officials
of the bank concluded to guard against
running short of ready cash by taking
refuge behind the means provided by
law ana issued the following state
mcnt:
Portland Dec. %. 1899
'To the Depositors of the Portland
Savings Bank:
THE directors Of the Portland Saw
;ngs Bank have decided it to be for the
interest Of the depositors to demand
legal notice on all sums over 800.
The bank was never SO strong rs
today. 1t has a surplus Of 81. $50 900 in
vested in government securities.
(SigneD
Franklin r. Barrett, president:
Charles S. Fobes; Edward A. Noyes.
treasurer: James p. Baxter: VIM. H.
Moulton: Sidney W. Thaxter.'
About S125, 900 was paid out during
the day and the bank will reopen, in
the morning. prepared to meet any and
every demand.
State Bank Examiner Undertake.
who happened to be in the city. today.
did much toward allaying the unwar-
ranted alarm of depositors and gave
the following statement for publica-
tior:
"A great deal of this disturbance
grows OUT Of the failure Of Woodbury.
x Moulton and the alleged connection
Of the bank with that firm. While the
bank had loaned money to Woodbury.
x Moulton. it had collateral nearly
sufficient to secure it from any loss.
This collateral has been appraised and
whatever loss the bank is likely to suf-
fer was charged out Of the profits be
fore the last dividend was paid. There
is no doubt but what this excitement
was occasioned entirely by the failure
of Woodbury. x MoultOn and is entire
~ without cause. My last examination
showed a surplus Of about 81 100000
and the condition of the bank has not
materially changed since that time"
The Express says: There has been
what appears to be one Of the most
scnseless and unreasonable runs on
Portland bank, this morning. and
through the day that ii has fallen to
jhc lot of Portland bank to meet for
many day. The rumors started, yes
terday or the dly before. to the effect
hat one of the Portland savings banks
had suspended payment. In some
quarters the rumor related to the
Maine Savings Bank, in others to the
Portland. Some deluded individuals
thought it was one of the national
banks. and the scare became quite gen
eral
This morning. it had taken such
shape that symptoms of a run began
70 develop in both savings banks. All
demands for money We're promptly met,
the depnsitors growing more and more
excited as the day wore away. and
recklessly drawing out their money
regardless Of the fact that by 50 do
ing they We're turning the interest
which it had drawn over to the ac-
count Of the bank. f0rfeting it them
selves.
The forenoon Wore away and with it
tie Maine Bank depositOrs came to
their senses and stopped their sacrifice
" interest. 10y refusing longer to with |
draw. but there was harder run for
the Portland than before. Men and |
women came anxiously and with the |
greatest nervousness and demanded |
their money. And all the forenoon this |
Kept up. Some of the people expressed |
the greatest delight when their money |
was handed over to them. acting as if |
they made up their minds to lose their
money and We're greatly surprised |
when it was paid over to them.
Things grew worse and worse toward |
noon. Clerks We're paying money at
both windows as rapidly as they could |
work. leaving their interest where it |
would do the bank the most good.
Toward noon, the currency question |
began To be a difficult one u solve. |
Money grew scarce. There We're more |
Than 81 900 600 in securities in the |
vaults. but bills We're scarce, and the |
bank began to pay out gold. This was
just as satisfactory to some of the |
crazy depositors, but it did not suit |
some others. One woman was heard |
to reject the idea that she be paid in
gold. demanding her own money. evil
IDENTIFY thinking that the bank could |
pay to her the same bills that she had
deposited there at various times.
The other banks of the city came up
To the aid Of the Portland 50 far as
they had currency with which to meet
the demand. but the fact that money
in itself was scarce kept troubling the /
officials all day. The telegraph was /
called into requisition. and Boston was i
At last wired for currency.
In the meantime, fortunately for |
those who needed his advice. Bank EN-
aminer Fremont f. Timberlake came |
in town. today. and hearing about the
trouble went down to the bank He
has made frequent and exhaustive eX-
aminations into the affairs Of the in
stitution and he knew better perhaps
Continued on page 60 !