New-York tribune., 1911-01-10
MORCAN'S NAME SERVES
TO STEADY SHAKY NERVES
Embryo Runs on East Side BANKS
Scarcely Begun Before RuSh
of Money Ends Them.
FOREIGNERS MOST ALARMED
No Trouble at All at Fifth ave-
nue. Branch of Madison-Cash
in Taxicabs to Threat
ened Branches.

Morgan was the magic name which
ayerted serious runs Yesterday on the two
banks and the trust company threatened
by the closing OF the Carnegie Trust COM
pany. a notice that J. r. Morgan co.
had guaranteed to pay all depositiors IN
full was posted conspicuously on the doors
at the main offices and branches or the
Twelfth Ward and Nineteenth Ward banks.
A notice that the Equitable Trust Com
pany. known az a Morgan institution, had
assumed a similar responsibility in regard
TO the Madison Trust Company was posted
inside the Madison companys building at
| Fifth avenue and eoth street.
These placards had a reassuring effect on
a large number Of apprehensiye depositors
who appeared at the various institutions
early with an idea Of drawing out their
| money, and many of them dropped out OF
! the lines which had formed an hour or TWO
! before the banks opened.
| There Is a large element of foreign de-
! positors I'm both of the East Side banks
and at the branch of the Madison Trust
| Company. at Grand street and the Bowery.
! Among them the situation was less readily
comprehcnded, and they insisted on getting
their money. They were paid As fast as
their passbooks could he balanced and the
money handed over the counter, but their
anxiety resulted In spectacular run on
some of the institutions during the early
banking hours
4 hundred or more OF such depositors
were still waiting In line In the basement
OF the Nineteenth Ward Bank. at Third
avenue and 9th street, where the interest
department OF the institution is conducted
when the bank closed yesterday afternoon
Signatures were unfamiliar and had TO be
verified on these small savings accounts,
and consequently It was slow work. Conn
paratively few accounts, however, were
actually closed among the thousands Of de-
posltors in the interest department Of that
particular bank.
The run at the main office of the Nine
teenth Ward Bank was larger than at any
OF the other institutions. Bradley Martin,
ir., president Of the bank, said It had ST.
10000 in cash on hand when the doors
opened for business. Shortly after 10
O'Clock $4,000 was brought TO the bank In
a taxicab from the Fifth Avenue Bank,
basement and dumped on the counter where
the timld depositors could see II, Mr.. Mar
tin said. The line of waiting depositors
then extended east nearly to Second ave-
nue. The sight Of so much real money had
a desirable effect on some OF the foreign
depositors. and they went away without
drawing on their accounts.
Many Anxious to Make Deposits
President Martin said that a large num-
Der of persons came 10 the bank and want
ed to deposit money in the interest depart
ment but were discouraged when they
saw the crowd in line and went away.
Most OF these would-be deposltors called
UP afteFwaid on the telephone and asked
the banking people to send some one
around TO get the money. There were no
heavy Withdrawals from the commercial
department and some good deposits.
The reports from the three branches OF
the bank, at No. l52 East 34th street, No.
$50 East 72d street and No 242 East 18th
street. showed that they had Jared better
than the main Office, having suffered no
real runs. Mr.. Martin said He estimated
that the total Withdrawals from the main
bank and its branches had been between
10000 and s., Odn. II was impossible 10
give more accurate figures last night, hs
said.
Asked what the normal Withdrawals for
one day would be, Mr.. Martin said u
would be difficult 10 take any one day as
a criterion; but on one day last week, when
conditions were perfectly normal, he said,
900 was Withdrawn from the bank and
it's branches.
President Martin said he had heard OF
no proposition TO reorganlze or merge the
rank with any other institution, and that
il would continue 10 do business on the
firm, and substantial basis which II en-
joyed
There was no serious run at the main
office q, the Twelfth Ward Bank, at No.
1f7 Fast 18th street About ifty dspos-
TORS wers in line waiting for the bank 10
onon. Frank r. French. president Of the
bank. met each depositor personally as ne
came IN and assured him that there was
absolutely a no danger that the bank would
close. in view OF the fact that ample funds
TO meet ali demands we're on hand.
Plainly for Early Demands
I'VE had PLENTY of money of our own on
hand n meet all the early calle.' said Mr..
Freneh. and about 10 O'Clock several hum
drod thousand dollars more was at our
dlenosal. which vas brought In n tsKieab,
' ,hirr from tho Fourth National Bank.
We hardly needed H. as the run was not
o,,..ssi,..> and We had the lire cleared by
oc,ock Many depositors came In and
others telephoned offering assistance II II
20, reeded. Many substantial deposits
were made during the day. can't give
actual figures before tomorrow. but l
should think from appearances that de-
posi,s to-day would nearly balance tho
Withdrawals"
Mr.. French said that 4. :. Nichols. presl-
dent of the Harlem Board OF trade came
into the bank soon after II opened ana an
dressed the depositors In a Teassurlns
speech. lie told the customers there was
NO reason for fear, as the institution vas
in q sound condition. He referred 10 the
official statements published In tho news
naners. and said that ]. p Morgan & co.
were behind the bank. and there vas no
doub, that every one would get his money
4, he wanted 1t. He urged TIE deposltors
n leave tho money In the bank
President French addressed the deposi-
tors I'm li,e encouragingly after Mr..
.-,obors had finished. and as a result about
half Of them left the bank treasured.
President French said he was greatly
pleased with the way matters had turned
ou, Yesterday was one Of the happiest
says Of his life. no said lie had been with
t,e TweIfth Ward Bank ever since II was
organized in 1886 and had held about every
;ob q offered. from messenger boy TO Presi-
dent during that time. ho said. He had
made many friends in Harlem during that