Saturday, July 26, 2008

Jarmulowsky's Bank

NY TIMES: Sender Jarmulowsky arrived in the United States from Russia in the early 1870's and by 1878 had established a bank in an existing building at the southwest corner of Canal and Orchard, already an immigrant district. In 1886, 1890, 1893 and 1901, he experienced various bank runs but proudly paid 100 cents on the dollar to each panicky depositor. In 1912, with the architects Rouse & Goldstone, Jarmulowsky put up a reserved, 12-story loft building with a bank on the ground floor at the same corner where he had established himself 30 years earlier.

It was, with its rusticated limestone lower section and a terra-cotta upper part, no barebones loft building. The entrance to the ground-floor bank at the curved corner is surmounted by two reclining figures in classical style flanking a clock. Period photographs of the banking floor show a conventional work of marble and bronze; it could have been any well-known uptown bank.

Sender Jarmulowsky died in 1912 as his building neared completion; The Times noted he left "only $501,053" as an estate, apparently expecting much more. His sons Harry and Louis continued the business. In 1917, as depositors withdrew nearly $3 million to send to overseas relatives caught in the war, the State Banking Department took over Sender Jarmulowsky's bank. It had liabilities of $1.25 million and assets of only $600,000. Over 5,000 depositors crowded around the branch and Harry and Louis Jarmulowsky were indicted for banking fraud later in the year. The bank never reopened and the building was sold at a bankruptcy auction in 1920.


Hilda said...

Whoops, sounds like he cared too much about what other people thought of him — in a superficial sense. Very familiar story...

Harry Makertia said...

I enhanched the picture, and I like the detail of its door. Great building. I saw some Asian restaurants doing business on the ground floor!

Ken Mac said...

Thanks for the thoughts Hilda and Harry! This is the old lower East Side so you see lots of former synagogues and the like, but it is primarily an extension of the ever growing Chinatown today.

Dave said...

i realize the comment is 3 yrs old, but I feel I should respond to Hilda's comment. Sender Jarmulowsky was not a vain banker like the institutions today - he was well known for his philanthropy, and his bank was well known for his help to immigrants through his own roots in europe in the process of bringing the rest of their families to America.

Viagra said...

I can't believe that a building with that years can stand like the time was just a gust, and the structure is so artistical, the perfect place to start a good historical tour.

Anonymous said...

The negative comments about the bank failure reflect lack of information and short sightedness. Banks pay interest by loaning money. Traditional banks did not give mortgages for private homes - and not to Jewish immigrants. Today it is considered ok to offer home mortgages but in 1914 it offended "goyish" traditional banks & the NY State Banking commission. No bank can withstand a run on deposits if they do what they are supposed to - loan money on safe real estate to earn money for depositors. Within a few years after the closing the real estate, which was worth much more than the unpaid deposits, or the mortgages were sold and depositors eventually got 100 cents on the dollar. There was no Federal Reserve Bank to "hock" the mortgages and no market in mortgage backed securities to turn mortgages into cash.
Take a good look at today's FDIC and other bank rules -- they only require a bank to keep cash on hand worth pennies on the dollar.
The goyish banks refused to buy the mortgages because they resented the competition - Jewish banks opened Saturday night which was when sweatshop workers got paid; traditional banks opened Monday to Friday.

Buy cialis said...

Jarmulowsky died in 1912 shortly after the bank was completed, and his sons took over the business. unfortunately, they lacked their father’s business acumen and mismanaged the business. In 1914, at the start of WWI, the bank closed as many depositors made “runs” on the bank to get money to help their families in Europe. According to the NY Times, 2,000 people demonstrated in front of the bank. 500 people stormed the house where son Meyer Jarmulowsky lived, forcing him to escape across tenement rooftops. Jarmulowsky sons were indicted for banking fraud and the bank closed.

Anonymous said...

The article notes that two sons of Sender were indicted, but please note that they were NEVER even tried or convicted. Ergo, the charges must have been dropped. No crime though much scapegoating.

Also be aware that the New York Times reports that all depositors were paid in full after Forced bankruptcy liquidation of bank assets. Undoubtedly the assets of the bank were worth more than received in forced sales.

Also note that Meyer was not one of the sons charged, per the article above.

ninest123 said...

ninest123 08.25
nike air max, true religion jeans, oakley sunglasses, coach purses, gucci outlet, louboutin, jordan shoes, ray ban sunglasses, polo ralph lauren outlet, michael kors outlet, michael kors outlet, longchamp outlet, michael kors, louboutin outlet, nike free, replica watches, kate spade handbags, oakley sunglasses, longchamp outlet, replica watches, ray ban sunglasses, chanel handbags, michael kors outlet, burberry, true religion jeans, oakley sunglasses, true religion jeans, louboutin shoes, tiffany jewelry, polo ralph lauren outlet, michael kors outlet, tory burch outlet, coach factory outlet, michael kors outlet, coach outlet, coach outlet, burberry outlet online, prada outlet, prada handbags, longchamp, nike air max, kate spade outlet, christian louboutin outlet, nike outlet, tiffany and co

ninest123 said...

nike free run uk, hollister, hogan, air force, nike air max, hollister pas cher, tn pas cher, air max, lacoste pas cher, air jordan pas cher, longchamp pas cher, nike roshe run, lululemon, nike free, vanessa bruno, louboutin pas cher, north face, nike air max, oakley pas cher, vans pas cher, sac longchamp, mulberry, ralph lauren pas cher, michael kors, true religion outlet, timberland, michael kors, michael kors, ray ban uk, ralph lauren uk, converse pas cher, hollister, sac guess, nike trainers, north face, nike roshe, longchamp, nike huarache, abercrombie and fitch, nike air max, hermes, nike blazer, ray ban pas cher, burberry, new balance pas cher

ninest123 said...

insanity workout, herve leger, nike air max, mcm handbags, oakley, ghd, babyliss, birkin bag, converse, iphone 6 cases, beats by dre, ray ban, ferragamo shoes, timberland boots, vans, instyler, baseball bats, soccer shoes, asics running shoes, ralph lauren, reebok shoes, abercrombie and fitch, p90x workout, celine handbags, lululemon, jimmy choo shoes, soccer jerseys, nike air max, mac cosmetics, wedding dresses, louboutin, valentino shoes, nike roshe, giuseppe zanotti, gucci, north face outlet, north face outlet, new balance, chi flat iron, mont blanc, nfl jerseys, vans shoes, hollister, bottega veneta, hollister

ninest123 said...

marc jacobs, ugg,ugg australia,ugg italia, louis vuitton, louis vuitton outlet, swarovski, pandora charms, lancel, louis vuitton, ugg boots, juicy couture outlet, ugg pas cher, toms shoes, karen millen, doke gabbana outlet, louis vuitton outlet, converse outlet, bottes ugg, pandora jewelry, michael kors outlet online, louis vuitton, swarovski crystal, louis vuitton, links of london, ugg,uggs,uggs canada, ugg boots uk, michael kors handbags, sac louis vuitton pas cher, michael kors outlet, juicy couture outlet, ugg boots, louis vuitton, ugg boots, uggs on sale, supra shoes, hollister, wedding dresses, louis vuitton, ugg boots, replica watches, thomas sabo, montre pas cher, pandora charms, louis vuitton, coach outlet
ninest123 08.25

yanmaneee said...

louboutin shoes
balenciaga speed
air jordan
golden goose
air jordan
reebok outlet
mlb jerseys
nike air max 95
valentino shoes