Run on the Bank

This picture was taken in 1911, and shows a run on the Nineteenth Ward Bank in New York City. Rumors of liquidity concerns created a run, that then in fact, created a liquidity crisis, which led to the bank being closed.

It is interesting that we are seeing similar scenes play out again today, with a bank run occurring at a major California bank just this last Friday, leading to the FDIC closing the bank, and taking over operations. I saw pictures in the newspaper of a crowd at the closed bank, trying to get their money.

No bank can withstand all depositors wanting to withdraw their money at the same time. It looks like we are entering a period where bank runs are going to be common again.

Horse Drawn Fire Engine

This picture was taken in the early 1900's in New York. It shows a horse drawn fire engine, and a group of New York's finest fire fighters. It is hard to imagine how difficult it must have been to fight fires with old units like this. Given the amount of wood in many structures at this time, you wonder how they ever got big fires put out.

Brooklyn Bridge

Today we feature an early photograph of the Brooklyn Bridge, in New York. The bridge was opened on this day, May 24, in the year 1883. It took 14 years to construct the bridge.

Empire State Building

This picture was taken in 1930's and shows a nice night view of New York City, with the Empire State Building in the left of the picture. The Empire State Building was dedicated on this day, May 1, in the year 1931.

Woolworth Skyscraper

This picture shows the Woolworth Skyscraper, which was opened on this day, April 24, in the year 1913. The building is 57 stories tall, and still stands today.

Wall Street Stock Brokers

This picture was taken in 1920, and shows Curb Brokers on Wall Street in New York City. Up until 1929, the American Stock Exchange was known as the New York Curb Exchange. This is because brokers would meet outside, on the curb, with lists of stock for sale, or that were wanted. It became so crowded, popular, and loud, that hand signals had to be introduced as a means of communication between buyers and sellers. The exchange moved indoors in 1921.

Triangle Shirtwaist Factory Fire

This picture shows a scene in New York City, with a horse-drawn fire engine on its way to a fire. The fire was the Triangle Shirtwaist Factory fire. This fire turned out to be the worst work-place fire in New York City history, with over 148 people killed. The fire was at the Triangle Shirtwaist Factory, which still stands, and is known as the Brown Building. In the fire, the victims succumbed to the flames, smoke, and some jumped to their deaths from the upper floors of the building. The tragedy led to the implementation of improved factory safety standards in the United States, and the formation of the International Ladies' Garment Worker's Union.

The fire occurred on this day, March 25, in the Year 1911.

Run on Bank

This picture shows a Run on the Bank that occurred in New York City in February of 1912.

Did any of you follow the financial news yesterday? We had what looked like a full blown "Run on the Bank" at one of the countries largest brokerage houses. It was sort of scary, and you wondered if the institution was going to survive the day. The government did step in, and indicated that that they would step up and provide liquidity for the institution.

As this was going on, I called my dad up, to ask him for his thoughts. He was born in 1920, so he remembers the roaring 20's, and he vividly remembers living through the Great Depression. I asked him if he had any advise for me. He said, "Son, the thing you need to know about a Depression is that He Who Panics First, Panics Best. If there is going to be a run on the bank, you want to make sure you are first in line." You know, it is always hard for me to tell when my dad is joking, and when he is serious. This was one of those cases. So, I chuckled a little bit, and then asked him if he really had any advice for people when the country might be facing tough economic times. He said, "There are three things that are very important. None of them are easy, but all of them are necessary." Below I summarize what he told me.

1) Control Your Spending. Now he was a master at this. I'm talking real old school here. When I was growing up, I would get in trouble for pulling an entire paper towel off the roll. He would yell at me, "Don't tear it off at the perforation, that is what they want you to do. Just tear off only what you need for the job at hand." In the 18 years I lived in his home, there was never a job that he thought required more than 1/8 of a paper towel. He always had a nice car, but he always bought it used, and always paid cash. He says you should never borrow money to buy a car. If you were to tell him that you don't have enough cash to buy a car without borrowing, he would tell you that you are trying to buy too much car . . . buy an older and less fancy car. He also believed in taking a lunch rather than eating out, and he believed that if you had to eat out, then order water with the meal to save the price of a drink. It is funny, when I was growing up I thought of him as being cheap, now that I am older, I think of him as being wise.

2) Get Out of Debt. My dad viewed debt as a terrible thing. Almost a form of slavery, or at least indentured servitude. When a person goes in debt, they no longer control their finances, their finances control them. First step is to tear up the credit cards, and not dig the hole any deeper. Then you should first pay off your credit cards. After that, pay off your car loan, and then finally pay off your house. This is not an easy thing to do, but if you really do a good job on rule 1, rule 2 becomes manageable.

3) Save and Invest. My dad says that after you get out of debt, you should concentrate on saving and investing. He says most people do not have the temperament to play the stock market. Human nature motivates people to usually do exactly the wrong thing in the market. He says the only thing that always works is to: 1) Stay widely diversified between cash, property, stocks, bonds, and hard assets, and 2) time cost average into investments, putting a fixed amount each month into the market.

I should point out that my Dad did not go to college, and has no formal financial expertise. I will say though, that his family made it through the Great Depression, and never missed a meal. In fact, they were able to be generous throughout the depression with both friends and strangers. I can honestly say that I never saw my dad turn any one away empty handed. He was always generous with anyone in need.

New York City Street Scene

This photograph was taken in 1920, and shows a busy street scene on 5th Avenue in New York City. I got to go to New York City one time on a business trip. It was a really neat place. I grew up in a little town of about 1,500 people. When I grew up, I moved to a city of about 750,000. I have decided that cities are wonderful places to visit, but I prefer to live in small towns. I enjoy the sense of community that exists in small places . . . neighbors watching out for each other, and that sort of thing. I guess most people would prefer to live in the city, and that is why they are so big.

Well Dressed Chimp

This photograph was taken in about1910. Not much info available on the picture. It was taken in New York City near the Napoleon Hippodrome. The Chimp appears to be living the good life!

Enrico Caruso

This is a portrait of Enrico Caruso, the sensational opera tenor of the early 1900's. It was on this day, January 13, in the year 1910 that opera was broadcast live on the radio for the first time. The performance was by Enrico Caruso, singing on the stage of the Metropolitan Opera House in New York City. I wonder if he really needed a cane, or if it was simply a fashion accessory?

Horse Drawn Street Car

This picture was taken in 1908 in New York City. It shows a horse drawn street car. The conductor is feeding the horses. I wonder how they kept the streets clean back then.

New York City Fireman

This picture was taken in 1908 in New York City. It shows a city fireman at a fire hydrant.

New York Crowd

Today we feature a photograph of a crowd in New York's Union Square in the 1910's. I find all the hats interesting. Have you noticed that people don't wear hats much anymore? Only a few people wear hats these days, and usually it is only a baseball cap. Even the real cowboys that I know don't wear cowboy hats . . . they wear baseball caps. I think it would be neat if hats came back as a fashion item, what do you think?

Bat Masterson

Today we feature a photograph of William Barclay "Bat" Masterson. Bat was a notorious figure in the old west. He was a buffalo hunter, army scout, and frontier lawman. He is perhaps most famous for serving with Wyat Earp as a Deputy in Dodge City Kansas. This picture of Bat was taken later in life, as he was working as a sports editor for a New York City newspaper. I am always sort of amazed to see pictures like this of people who were famous in one era, but lived on into another. It is hard to picture Bat Masterson getting into a car and driving to work at a newspaper office.

New York City Skyline

Today we feature a photograph of the New York City skyline, circa 1908. The skyline of New York City has always been majestic, and on this anniversary of the bombing of the World Trade Center we pay tribute to this great city.

New York Fire Department

This is a picture of the New York City Fire Department taken in 1908. It shows one of the City's first motorized fire engines. Earlier fire trucks were pulled by teams of horses.

New York City Fire Department

This is a fabulous old photograph of the New York City fire department . . . men that were heroes then and now. The photograph shows the firemen with a horse drawn fire engine, racing to a fire. This is part of the collection of Old Photographs from 1900 to 1909.