 F. Augustus Heinze 's association with the corner and the insolvent State Savings Bank proved too much for the board of the Mercantile to accept . Although they forced him to resign before lunch time , by then it was too late . As news of the collapse spread , depositors rushed en masse to withdraw money from the Mercantile National Bank . The Mercantile had enough capital to withstand a few days of withdrawals , but depositors began to pull cash from the banks of the Heinzes ' associate Charles W. Morse . Runs occurred at Morse 's National Bank of North America and the New Amsterdam National . Afraid of the impact the tainted reputations of Augustus Heinze and Morse could have on the banking system , the New York Clearing House ( a consortium of the city 's banks ) forced Morse and Heinze to resign all banking interests . By the weekend after the failed corner , there was not yet systemic panic . Funds were withdrawn from Heinze @-@ associated banks , only to be deposited with other banks in the city . 
