RUN ON A SAVINGS BANK.

Star (Christchurch), Issue 4738, 1 September 1893, Page 3

RUN ON A SAVINGS BANK.

A Groundless Rumour. An Extraordinary Scene[Pee Press Association.] AUCKLAND, Sept. 1. A most extraordinary run on the Auckland Savings Bank set in this morning. A thousand people congregated in front of the Queen street premises, many withdrawing money. The Bank is stated to be thoroughly sound, and there is not a shadow of reason for such a remarkable proceeding, but the story is widespread, and it will take a little time fur people to realise their foolishness. One statement is that the run is the result of a practical joke. The run on the Savings Bank continues, but is not likely to be serious now it is understood that the panic was caused by a report that the institution was heavily involved by the Loan and Mercantile Agency Company's suspension. The Trus- j tees state that there is no truth in this j report. They meet at noon to prepare a \ manifesto to the public. \ At 11 o'clock, the Manager, Mr Cameron, ! addressed a crowd in the Bank, and showed ; the cash book with a working capital of j £57,000 to-day. He said it was absolutely \ untrue that the Bank was connected with j the Loan and Mercantile Agency Company. | This allayed the fears of many, who went | out laughing. Ladies are still th onging ' the Bank for small deposits, but the panic I is practically over. The Manager went . amongst the crowd.showing the Bank book ■ to individuals, and Mr John Edaon, one of I' the Directors, reassured others. { The unusual occurrence of a run on a j Bank created universal excitement in j Auckland to-day. Last evening the ' rumour was set afloat in some way or i other that the Auckland Savings Bank '■ was shaky, and was involved in the sus- j pension of the Loan and Mercantile Com- \ pany. A slight run on the Bank took place yesterday, and a number of depositors • withdrew their money in great hast?. Thia morning, however, a great rush on ■ the Bank started soon after the Bank doors opened. As time went on the rush on the institution increased. The news spread 1 like wildfire over the city ; and , people thronged by hundreds to the Queen street door of the Bank in order to with- . draw their deposits. Most depositors had small sums in the Bank. At least half of them were women who had lodged their : savings in the Bank. By eleven o'clock some thousands of people had rushed the Bank to withdraw their money. Several thoueand pounds 'in money, including a lot of gold, were paid away by the staff during the morning. The Bank was quite equal to the rush on it. The Manager and Directors did all possible to reassure the depositors, and to stop the run. During the morning the Board < of Directors decided not to pay away any ; amounts over £5, informing depositors if over that amount that the balance could be obtained on several days' notice. At eleven o'clock Mr Cameron, Manager of the Bank, addressed the crowd in the vestibule of the Bank. He said that the Bank's working capital this morning was .£57,000; that there was absolutely no ground for fear on the part of depositors ; that the Bank had £125,000 in Government securities, and £150,000 distributed to various Banks, doing business in Auckland, on deposit. He also stated that the Bank had nothing whatever to do with the Loan and Mercantile Agency Company. This announcement, with the assurances of the Directors and others, had the effect of somewhat lessening the rush. Just then great excitement was shown by some of the depositors; and men sent home cabs to briDg down their wives and children to draw out their money. 1 MANIFESTO BT THE TRUSTEES. I A special meeting of the trustees of the Auckland Savings Bank was held at noon, and issued the following manifesto, which was printed on large placards and posted at the Bank and throughout the city and suburbs :— • "Auckland Savings Bdnk. — Statement by '.the Trustees. The Trustees of the Auckland Savings Bank assure depositors that the alarm manifested by depositors is entirely groundleas. The position of the Bank is absolute and unassailable. The rumour that the Bank sustained losßea through the suspension of the Loan and Mercantile Agency Company is absolutely false. The Bank has nob, however, had any shares in or deposits with that Company, or shares in any other institution or Company whatsoever. The whole of the liabilities of the Bank are represented by unimpeachable securities. There is immediately available for the payment of depositors the large amount of £274,000 in Government securities and caeh deposits. Besides these there is invested in firßt-clas3 mortgages £254,641. The Bank has resources amounting to £509,420, including a reserve fund in exceaa of its liabilities of £30,000. By resolution of the Trustees, depositors who desire to withdaw will be paid in cash on demand. J. Edson, Vice-President, William C. Daldy, Thomas Peacock, Henry Brett, John Reid, C. C. M'Millan, L. D. Nathan, J. L. Wileon, J. M. Lennox, Thomaß Ohing, D. B. Cruickahank, E. Withy, J. H. Upton, Thomas Patton, J. T. Boylan, W. S. Laurie, and John Batger." , At 1 p.m. depositors were still crowding ; into the Bank, but the feeing is much, j easier. The run is expected to subside very soon. Later. At half-past two o'clock the Bank was still crowded with a struggling mass of humanity, eager to withdraw money. Many desisted after a personal interview with the trustees, who kept a prominent position in the doorway. The run has been confined to small depositors, busineES people generally not being influenced by the panic. Money is being paid out faßt and freely. Latest. At three o'clock many who had withdrawn money early in the day were paying in again. The run continues, but it is expected to abate. The hour of closing is four o'clock.