May 21 — The elements necessary to meet a bank run were told to the Mutual Savings Banks Convention on Friday by Judge E. S. Richards, president of the East New York Savings Bank, Brooklyn, whose bank was subjected to a major run last January.
"No matter how long one's experience in the banking fraternity may be," Judge Richards said, "until he has had a run 'he don't know nothing.' The things that are needed at a time like that are cash, courage and good friends. For the first day it does not make so much difference about courage and good friends, so long as the bank has the cash. After that, if you keep up your courage, you will find your good friends coming to your rescue, and your frightened depositors will begin to lose their fear and leave their money. We estimate that not more than 5% of our depositors ran the bank and perhaps 50% of our depositors helped us, without our knowing it, in stopping the run. Of course, one of the chief sources of our strength was the wonderful co-operation of a courageous superintendent of banks. The president of the State association, our own Brooklynite, Harry Kinsey, and the secretary of the association, Paul Albright, were on the job at once, and over night we had the backing of every savings bank in Group V. The next day, when word went out to the savings banks in New York that help might be needed, they, too, came forward with their offer of assistance. Our commercial bank depositories were prompt and efficient. Perhaps the most effective thing that was done was the issuance of a statement signed by all savings banks in the city indicating their faith and confidence and willingness to back this institution.
"The storm of depositors seemed to come up almost over night. The run lasted but two days and subsided almost as abruptly as it started. We were fortunate in having the cash. The great help which we received from every source gave us the courage. The credit for the winning of the battle goes to a multitude of good friends. Today, in the estimate of our depositors and the community, we are stronger than ever."
