The private Bank of the United States, in New York City, closes its doors after a “run” on one its branches the day before spread to the entire bank and left it insolvent.  This is the largest bank failure in the nation’s history, breaking the previous record set by Knickerbocker Trust a quarter of a century earlier.  Because of BUS’ officially sounding name, its large size, and its New York City location, public confidence in the commercial banking system begins to rapidly deteriorate, as U.s. subject-citizens begin to withdrawing their deposits for the safety of the mattress.

       NOTES:

• In contrast to the Panic of 1907, when, the large Wall Street banks intervened to circumvent the crisis, the existence of the unlawful, privately owned Federal Reserve System of (central) Banks made it impossible to intervene without appearing to challenge the FRSB’s authority.
• The remains the largest bank failure in the nation’s history.

       [restored 7/1/2022]