Bank of United States (New York, NY)

Episode Information

Episode UID
1027771572
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
102777 routing
Routing Number
1-0277
Start Date
December 10, 1930
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
9953902f50ad28d5

Response Measures

None

Description

Closed by the New York State Banking Department after runs and examiner reports; later liquidated and branches sold.

Events (3)
1. December 10, 1930 Run
Cause
Bank Specific Adverse Info
Cause Details
Depositor withdrawals triggered by revelations of gross mismanagement, large bad loans, and alleged fraud at the bank.
Measures
New York clearing house banks agreed to lend depositors up to 50% of their accounts at 5% interest to relieve depositors.
Newspaper Excerpt
flurry of withdrawals late yesterday
Source
newspapers
2. December 11, 1930 Suspension
Cause
Government Action
Cause Details
State Superintendent of Banks closed and took over the institution following the run and unfavorable examiner reports.
Newspaper Excerpt
Bank of United States Is Taken Over By State Banking Officers
Source
newspapers
3. July 31, 1931 Receivership
Newspaper Excerpt
branch of the Bank of United States was sold to Corn Exchange by the ... State Banking Department in liquidating the closed institution
Source
newspapers

Newspaper Articles (25)
1. December 11, 1930 Honolulu Star-Bulletin Honolulu, HI
Article from Honolulu Star-Bulletin, December 11, 1930

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YORK BANK CLOSES DOORS Bank of United States Is Taken Over By State Banking Officers (Associated Press by Wireless) limit. This contract is now NEW YORK, Dec. completed. that the institution was in the The low prices of fuel oil hands of the depart- the ment posted today the for this oil a very advantageous office the Bank of United States, The reserve fuel oll purchased uncity's new banking the provisions the appropriaThe followed tion may not issued without flurry of withdrawals late Wed- the approval of the president. The bank was not connected with the WILL On September 24, the bank's total were more than 000 and the deposits were nearly

2. December 11, 1930 The Times Record Brunswick, ME
Article from The Times Record, December 11, 1930

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YORK BANK HAVING TROUBLE Placed in the Hands of the State Banking Department New York, Dec. stating that the institution was in the hands of the state banking were posted at the main office and several of the branches of the Bank United the city's smalland newer banking before the regular opening time this morning. This action was taken after flurry of withdrawals late yesterday, and series of conferences of leading bankers lasting well into the morning the New York Federal Reserve bank The bank has no connection with the government, despite its name, but because of its name, bankers were anxious to take constructive action to prevent ill-advised nervousness. The bank obtained its state charter, giving it the title of Bank of United States when started with single branch on the lower East Side in 1913 Present would prevent the giving of such title to any new The bank, while specializing in small deposits, and the garment manufacturing trade, has expanded rapidly opening total of branches in various sections of the city. is not identified with Wall Street, maintaining only branch in the financial district (Continued on Page Three)

3. December 12, 1930 Ledger-Enquirer Columbus, GA
Article from Ledger-Enquirer, December 12, 1930

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STATE BANK SUPT. CLOSES BANK OF UNITED STATES New Dec. The Bank of United States, state having 59 bran. ches serving small depositors In New York City but with virtually out of town was closed today by the state superintendent of banks. Joseph A. Broderick after that official action. which followed run on bank's branches some of the terday, 23 powerful members the New York Clearing House as sociation took steps to help 400. 000 depositors gain prompt access to half the standing in their name on the books The bank was not member of the clearing house and was one of the smaller New York Institutions. With Christmas only a fortnight away, # was announced that the clearing house banks would lend depositors up to fifty per cent of their accounts charg Ing five per cent interest for SWIFTY such service The closing. made effective from the hour. of opening this morning, was attended by no disorders. Some of the city'e most promi- and worked day bankers night through Monday, Tuesday and Wednesday in an effort to the difficulties, and It was not until until an early hour towas day that the final action

4. December 15, 1930 The San Francisco Examiner San Francisco, CA
Article from The San Francisco Examiner, December 15, 1930

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Cleared Removal of Menace, Declares B. C. Forbes By B. C. FORBES NEW YORK. Dec. 14.-The banking situation in New York has been greatly improved by the closing of the grossly mismanaged Bank of United States. was the known bad condition of this bank that was responsible for the unsettled feeling in New York financial circles. Now that this sore has been cut out, New York feel entirely confident. No other institution was or is in the same shape as was the Bank of United States. A political scandal of the first magnitude is predicted in Wall Street when the inside story of the bank's extraordinary activities is brought to light. that when they began to run out of names to give their 57 varieties, they got hold of Paris directory and used the names of Paris streets. Who was-who sible for lending these "dummy" companies, as Wall Street calls them, $20,000,000 of the bank's money? Who wereresponsible for lending nearly $100,000,000 of depositors' money to real estate interests? Were any of the borrowers, contractors, etc., affiliated or connected in any way with those with the bank? Here are questions the stockholders' protective committees will dig into and want answered: How came it that such title, Bank of United States, was granted by the State Superindent of Banks over the protest of the lawyer sent to Albany by the most influential bankers in New York, who pointed out that such title would mislead the ignorant into believing that the institution was run by the United States government? Who was responsible for the report, as finally prepared, covering the State Bank Examiner's investigation of the bank last June? By what unique coincidence were the bank's losses figured out as equaling. to penny, the institution's total surplus? Had the losses been given as one dollar more, the State banking law would have required that the capital stock be made good immediately or the stockholders be assessed. Who was-rather, who wereresponsible for the lodging of $2,500,000 official New York City deposits in the Bank of United States, of which only $1,000,000 was withdrawn before the bank closed? Whose judgment left $1,500,000 in that weak bank when such banks as the National City, the Guaranty Trust, the Bankers Trust and the Chemical Bank each had no more than $500,000? (The Chase Bank. carrying city checking account, was in dif ferent category.) What purpose underlay the or ganizing of no fewer than 57 subsidiary companies by the Bank of United States people? It is said What were the financial dealings between the Bank of United States and the Bankus Corporation, its adjunct, which, together with the bank, had hand in organizing company after company carry on various multifarious activities, including borrowing and lending to and fro? Just when did the State Superintendent of Banks first receive an unfavorable report on the Bank of United States from his own examiners? What did he do about such first unfavorable report? And how long did It take him to institute corrective measures? Who sible for opening a'new branchand taking money from innocent three weeks of the bank's suspension? New York bankers have long complained that the Bank of United States was favored above all others by the political powers that These wondered who befriended this "outlaw" bank. as they called this institution because kept itself outside the New York Clearing House and thus removed itself from the very strict discipline imposed upon Clearing House banks. Responsible bankers now won der whether it was not the political favor enjoyed by the bank which ultimately proved to have been earned and retained at too high price to the bank's depositors. Happily, no other New York bank is similarly circumstanced. The New York banking position today is the strongest it has ever been in all banking history. Now that the Bank of United States menace has been removed. the sky has cleared and bankers predict distinctly brighter days.

5. December 26, 1930 The Brooklyn Daily Times Brooklyn, NY
Article from The Brooklyn Daily Times, December 26, 1930

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STATE TO PROBE REDS' ACTIVITIES IN BANK CRASHES Fraud Bureau and Banking Dept. Keep Close Watch on Communists Here. Two State the Bank ing Departme Fraud reau of Attorney General's fice. are watch to. day activities of Communists officially held responsible measure for the of two the first of month. attempted attack on third which checked after had been started. Strong on the of the Department discovery the third plot revealed today by an official of the in ing the run after line of about 1,000 depositors had formed in front on of the branches this bank line the depositors fears Banking Department official learned last of Com munist campaign being discussed to launch the attack on this institution Run Checked Within hours this learned. the but it quickly nothing regarding learned by the general With this example them coupled the runs on the Bank of United and the naBk & Trust officials are convinced of strong to one bank with faiding the munist world revolution against capitalism and all its instiWatson Washburn assistant At. torney General charge bureau. questioned heads eight brokerage houses and their records. out for other and relating to deals in bank time in pressing charges against brokers whom find had slightest connection whispering and against he said He question 100 brokers about Chelsea Bank trading. learned today that District Attorney of New County also taking an interest in the To Probe Red Activities Assistant Attorney Charles Pilatsky has directed look into activities of Communist to foundation for that the Reds are plotting against the and he has quietly tracing calls depositors bank to withdraw their Broderick of the banking questioned garding reported run on the third Institution run there was that one being ed. by to thousands of depositors another two or three days, the said, he would be in position to make complete statement the conditions of the bank He 80 far he knew no tion was done the of the Bank of "nited States He denied he had issued that the Chelsea bank were assured of 100 on the dollar He had not discussed this phase he and would no on until his was to tonight Girls Commercial H. 883 Classon to discuss Max D. Steuer. chief counsel for the Depositors tion. is to make revelations startling made to broadcast his remarks

6. December 27, 1930 The Brooklyn Daily Times Brooklyn, NY
Article from The Brooklyn Daily Times, December 27, 1930

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FRAUD Page) officers of the bank had enriched themselves through stock manipulation. He charged. as he had done previously, had Sept. and Dec. 11, when the State Banking Department closed the Institution. He declared either the bank did not have $7,000,000 in undivided profits reported on Sept. if it did the directors and officers must tell what became it. 'No institution with undivided profits can be bankhe He added they had money. must be somewhere had dis. appeared. they did not have he said. the "door the jails about to If they did and disappeared. he said, "then the doors to the jail are still open." Steuer Demands Explanation Mr. Steuer called for explanation of an item in the September 24 report to the State Banking partment listed discounts and totaling $123,000,000. He said his investigation had convinced him there were no such assets, and the merely the amount of worthless paper held by the bank form of notes from depositors who had bought units of Bank of United Corp., virtually forced on them by officers of bank. believe it may be possible the bank had paper to this amount," said Mr. Steuer. "Paper, paper, paper! You depositors did not put in paper. You put in money, hardearned money, real money. paper did they have for How much are you going collect for this Getting down the officers of the closed institution. he named Bernard Marcus, president: Paul Singer, vice president, and Stanley Mitchell. chairman of the board Charging "these men have enriched themselves to the extent of by manipulating the stock of the bank and its affiliates. Mr. added "they lied to the people they said they had $123,000,000 discounts when they knew they had nothing of the sort." The association's counsel told his hearers he had called on Superintendent, Broderick, of the banking department, to the report of his examiners of the conditions of the bank and the request had been denied. He would see them, he said, for he would apply to the courts to compel Mr. Broderick to disclose the information. Hits "Whispering Campaign" In closing address he begged those attending the meeting to lose faith in banks or the nation. There were laws, he said. which would protect them. He asked that they pay no attention to "the whispering campaign" and to take no part such campaign. Mr. Steuer disclosed he and others had conferred Bennett and had been assured Mr. Bennett would start an investigation he took over the office of the State Attorney General. Today's session with Mr. Bennett merely put the matter before him formally in the form

7. January 2, 1931 The Producers News Plentywood, MT
Article from The Producers News, January 2, 1931

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ANOTHER BANK (Continued from First Page) blame the closing of the bank On Monday night the officials the arrest two depositors for "spreading false rumors did prove false this morning when positors branch alone tried their money. order to try stop the run the bank Broderick issued which he said. plenty of money satisfy This proved lie. There was plenty money the depositors wait 400,00 Bank of are waiting. Examiner Peddles Lies The fact that the run the bank continued after Broderick's shows that the people are losing faith the of when come question of the money this $25,000,000 bank within weeks after the of the Bank the heart the financial center United States shows the of the crisis and effects the banking There already been 1100 bank failures 1930, with assets 700 million dolinvolved. This exceeds ords the history of the United States. Depositors Total The total number of depositors New bank fail and with families they represent more Run Started by Rum Seizure reliably that the closing the was by the recent capture officials several large cargoes of liquor, the which been financed by the bank officials. TEN MORE IN THE SOUTH Memphis, Tenn., Dec. banks eleven northeast Mississippi towns were closed today. All were within dius of about 30 miles the and uation described local president Peoples Bank Trust Company, Tupelo, the largest of the

8. January 16, 1931 Brooklyn Eagle Brooklyn, NY
Article from Brooklyn Eagle, January 16, 1931

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Lack of Aid by Other Banks Efforts of Officers to Obtain Accounts of Bank of United States Depositors Brought DiffiTheories Scouted The Eagle has retained Charles Recht, an attorney of the New York Bar, to act as its counsel and legal advisor in an investigation of banking conditions in New York City. Mr. Recht will give his services free and will also advise depositors in any failed bank. Inquiries should be addressed to The Brooklyn Eagle and not to Mr. Recht. What caused the run and the closing of the Chelsea Bank and Trust Company, which an outside financial group is negotiating to take over and reopen under another name after supplying new capital? for Banking Superintendent Broderick in midafternoon on Dec. to take over this "Great White Way" institution on whose ledgers appear such names MorGest, Roxy's, Texas Harry Richman latter place frequented dered gambler, Arnold Rothstein? Overshadowed by recordbreaking smash of the Bank the United States, there been little official unofficial taken answer although the funds involved the Chelsea closing are amount volved City Trust collapse. The Chelsea closing involved surplus and deposits the City Trust book without taking account the looting, did not reach $10,000,000. Chelsea Lacked Support Investigation by the Eagle indithat the for the run and closing the Chelsea the part the bank's officers obtain counts depositors the closed Bank the United States and the failure other banking institutions to give full support when the Chelsea got into acute difficulties. Charles special counsel Eagle in inquiry into banking analyzed the Chelsea run closing 'Reports published the day after Please Turn to Page

9. January 22, 1931 Chicago Tribune Chicago, IL
Article from Chicago Tribune, January 22, 1931

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CHARGE BANK'S RECORDS FALSE CALIFORNIA BEFORE CLOSING AND PACIFIC Directors Are Witnesses FARES TO FIT at Investigation. New York, Jan. cers of the closed Bank of United States concealed the condition of the bank when was near collapse, it brought out at the opening of an One way fare Chicago today. joint state to California or Pacific and county into inquiry the bank's Northwest. Good in suspension is being directed by Attorcomfortable coaches ney Max D. Steuer, who will present chair cars only. his evidence to the grand jury. pointed also to the facts that the bank's books had been falsi$6500 loans had been made without the or approval of the board of and that the One way fare Chicago to minutes of California or Pacific board had since Dec. 12, 1929, Northwest. Good in 33 Witnesses Called. witnesses were Julius Blauner, director of the bank, and Robert director and vice president. They were first the of 33 witnesses, to include other officers and directors of the bank, subpoenaed. Mr. Steuer's Mr. of Blauner Mr. Adamson revealed that on Sept. ten weeks before the bank was closed and taken over by the state banking department, the bank reported in its regular quarterly statement to the epartment that it had surplus of $10,000,000 $7.and in profits, contrary to the findings of examiners of the state banking department, who found not penny in the bank's treasury under these items. Loan Made to Kresel. It was also brought out by Mr. Steuer that $16,000,000 in loans were granted to the bank's affiliates with- out knowledge or approval of the directors and that a total of $4,510,217 in loans and accumulation indorsements granted to directors of the bank without official knowledge of the board. these loans one was of to Isidor J. Kresel, ney and director of the bank and cial counsel in the appellate division's inquiry into magistrates' courts. Mr. Kresel put up collateral of $190,111. Bernard M. Marcus, president, and Mr. Kresel, it was brought out, virtually ran the bank, with the majority of the directors kept in ignorance for the most part of matters with which they are required to be familiar under the One of the outstanding revelations before Steuer was that while Mr. Marcus had reported to the board of directors that the total of what might be termed weak loans was not above $600 or reports of state examiners, produced by Steuer to the surprise of both Mr. Blauner and Mr. Adamson, showed that of loans amounting to $37,498,290. the bank. ing department had criticized as quiring watching and had characterized $14,065,366 as "slow and $9,321,088 as doubtful.

10. February 2, 1931 Des Moines Tribune Des Moines, IA
Article from Des Moines Tribune, February 2, 1931

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DIRECTOR ARRESTED NEW YORK Brownstone director and ber of the executive of the closed Bank of United Monday when he to at an tion affairs wheth he had personal brokerage on margin declared that "a personal question he owed $650 to the bank and 00 to two of its bankrupt

11. February 12, 1931 The Springfield Daily Republican Springfield, MA
Article from The Springfield Daily Republican, February 12, 1931

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Milton, lawyer and of John D. Rockefeller, Jr., and H. Satteranother planned to sent to the state banking plan for reopening the bank The plan conceived by Samuel Rosoff, millionaire subway The closed bank has no connection with the government.

12. February 12, 1931 The Boston Daily Globe Boston, MA
Article from The Boston Daily Globe, February 12, 1931

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KRESEL ANSWERS FELONY INDICTMENT Expresses Belief He Will Be Vindicated Reorganization Plan of Bank of United States Submitted NEW YORK, Feb 11 (A. P.)-Isidor Kresel, scourge of corruption in New York answered an indictment charging felony in General Sessions Court. The small, quiet man, who resigned last night as investigator of the magistrates bench, arose from sick with seven other in the closed Bank of United States, pleaded not guilty to charges resulting from the bank's suspension. Pale but unruffled Kresel faced the ordeal of printing and "mugwith the same equanimity he displayed in penetrating the of magistra vice squad men, stool pigeons and Only when Judge Allen, shattering all precedents of the court, reached down to shake his hand and ask him how he felt, did Kresel betray feelings. feel very badly," was the lowvoiced reply. Kresel and five of his associates were held for trial in bail. In the cases of Bernard K. Marcus, president, and Saul vice president, the bond was set at $100,000. Through his attorney, John W. Davis, Kresel issued statement asking for the confidence of the public and his "brethren at the bar." He declared his innocence and his belief he would be vindicated. demand that directors of the Bankus affiliate the bank, pay back losses of the corporation, estimated at "upwards of $50,000,000, was in suit for an accounting filed today by the Irving Trust Company. The latter concern is trustee in bankruptcy for the Bankus Corporation. Kresel, Marcus and Singer were among the directors named. Samuel Rosoff, millionaire subway contractor, submitted to Banking Supt Broderick plan for the closed bank. Under this plan it would reopen under new name with $10,000,000 new capital. He declined to discuss its details, but declared had "high-class backers and would yield depositors 100 cents on the dollar.

13. February 12, 1931 Bristol Herald Courier Bristol, TN
Article from Bristol Herald Courier, February 12, 1931

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Felony Charged To Graft Prober Former Investigator Denies Guilty Accusations NEW YORK, Feb. Isidor Kresel, scourge of corruption in New York courts, answered an indictment charging felony general court today. The small, quiet man, who signed night investigator the magistrates' bench, arose from and, with seven other associates closed bank United States, pleaded not guilty charges resulting from the bank's suspension. Pale unruffled, Kresel faced the ordeal finger printing with the same equanimity displayed in penetrating the defenses magistrates, squad men, stool pigeons Only when Judge Allen, shattering precedents of the court, reached down shake his hand and ask how he felt, did Kresel betray his feelings. feel badly," was his voiced reply.

14. February 12, 1931 Buffalo Courier Express Buffalo, NY
Article from Buffalo Courier Express, February 12, 1931

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KRESEL, STEUER, OF OLD, AGAIN Both immigrants, brilliant, able, now to play role of prosecutor and defendant New York, Feb. of them were in Austria. One America seven, other twelve. struggled the up among side tenements, school honors learned law in Columbia both went high the One Steuer; the other Isidor Kresel. Both are lights of the New York Steuer famous his success cases hard to defend, in suits hard Admired, Feared Kresel and investigator. He opened facts the by helped impeach former Governor Sulzer, the probing for the lative graft committee out illegal packing for the ambulance by New York lawyers. was still turning graft magistrates' Steuer stepped from his career defender to investigate the closing the Bank of United States for the general and district attorney. Kresel, for the bank and director. eight officers the bank indicted yesterday immediately resigned from magenquiry. Kresel's trial Steuer face prosecutor. little sixteen years Kresel prosecuting Steuer, attempting have The grew for which Steuer brought Clair, actress, against the late tion atrical Kresel, representing tained affidavits from the actress She later the affidavits was flashed through many court scenes which Kresel Steuer opposite They are day Erlanger litigation, Steuer opponents represents "second Mrs. Erlanger' involving producer's $75.estate, Kresel represents the estate. they did not admit always the they antagonists Kresel for state

15. February 12, 1931 The Cincinnati Enquirer Cincinnati, OH
Article from The Cincinnati Enquirer, February 12, 1931

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INVESTIGATOR Of Judges Arraigned At New York With Seven Bank Of United States OfficialsKresel's Bond $10,000. New York, February 11-(AP)Isidor J. Kresel. scourge of corruption in New York Courts. answered an indictment charging felony in General Sessions Court today The small, quiet man, who resigned last night as investigator of the Magistrates' bench, arose from sick bed and with seven other assoclates in the closed Bank of United States, pleaded not guilty to charges resulting from the bank's suspension. Pale, but unruffled, Kresel faced the ordeal of finger-printing and "mugging" with the same equanimity he displayed in penetrating the defenses of Magistrates, vice squad men, stool pigeons and "fixers." Only when Judge Allen, shattering all precedents of the Court, reached down to shake his hand and ask him how he felt, did Kresel betray his feelings. feel very badly," was his lowvoiced reply. Kresel and five of his associates were held for trial in $10,000 bond. In the cases of Bernard K. Marcus, President, and Saul Singer, Vice President, the bond was set at $100,000. Through his attorney, John W. Davis, Kresel issued statement asking for the confidence of the public and his "brethren at the bar." He declared his innocence and his belief he would be vindicated. Samuel Rosoff, millionaire subway contractor, submitted to Banking Superintendent Broderick plan for reorganizing the closed bank. Under this plan it would reopen under a new name with $10,000,000 new capital. The closed bank has no connection with the Government.

16. March 3, 1931 The News Journal Wilmington, DE
Article from The News Journal, March 3, 1931

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ASSERT BANK MADE NOVENA OF GRACE DEPOSITORS DRIVE BEGINS TOMORROW AWARE OF FAILURE AT CHRIST OUR KING Steuer Says Bank of Signed 60,000 Patrons in February. REOPENING IS SOUGHT (By The Associated NEW Mar. that the Bank United marshaled than 60,000 depositors shortly the State Banking Department issued unfavorable report condition stirred the Steuer investigation today. Morris testified yesterday that high officials had instituted drive more depositors in 1930. and that he himself recruited 1,400 from among his in another "This the most startling testimony yet Deputy Attorney General Max Steuer who delving into the reasons for the Attorney General John H Bennett announced that several directors had started independent movement to recompense depositors 100 cents dollar. either by tive liquidation by reorganization and reopening of the bank.

17. March 25, 1931 Seward Daily Gateway Seward, AK
Article from Seward Daily Gateway, March 25, 1931

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CASE SET FOR TRIAL NEW YORK, Mar. 24. (AP)-Trial of Issidor Kresal, Bernard Marcus. Saul Singer, Herbert Singer and Henry Pollock, directors of the defunct Bank of United States, was ordered to start March 30.

18. April 11, 1931 The Brooklyn Daily Times Brooklyn, NY
Article from The Brooklyn Daily Times, April 11, 1931

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SATTERLEE GETS REPORT ON PLAN REOPEN BANK Sponsors of Rosoff Proposal Refer All Questions to State Renewal of negotiations the reorganization reopening the suspended Bank of United States forecast today result of the of the completion of report of the private bank's books undertaken by group directors of closed institution. tentative report, which liably stated encouraging and to indicate that final report would show the to be solvent, has placed in the hands of Herbert drafter of the Rosoff plan rehabilitating defunct bank. Mr. Satterlee and the committee directors financed the audit have refused to divulge contents, referring all Banking Superintendent Joseph Broderick The Superintendent is pected resume Mr. Satteriee the group of directors aiding the reorganizaplans, early next week. The audit begun three weeks ago by accountants the firm of Price, Waterhouse The bank suspended by the State Banking Department four months ago today. General Sessions Judge George expected day the motion defunct bank have quashed "vague four Bernard Singer, Singer, president Pollock, general and director

19. July 11, 1931 Evening Star Washington, DC
Article from Evening Star, July 11, 1931

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# STATUS OF BANKER BILL IS DEFINED New York Court Rules on Acceptance Matter Involving Contract. BY C. B. UPHAM. One of the few court decisions dealing with the problem which arises with the failure of a bank which has acceptnaces outstanding vas handed down this week by the appellate division of the Supreme Court in New York. Because of the scarcity of such decisions, it is of unusual interest. The business of creating bankers' acceptances, or bankers' bills, as they are commonly called in the New York market, has been largely concentrated in the larger banks of the country in the 17½ years which have elapsed since the Federal reserve act gave to American banks the power to accept time drafts. Consequently the problem has not been an acute one, since few failures have occurred among the larger banks. # Origin of Case. The present case grew out of the failure of the Bank of United States in New York City. A New York silk house had bought silk from a Japanese seller and had arranged with the Bank of United States to accept the seller's 90-day draft. Between the time of acceptance and maturity of the draft the bank failed. It sought to collect the amount of the draft from the New York silk merchant under the acceptance agreement, but refused to use such funds for the specific purpose of retiring the acceptance, which it had dishonored, desiring rather to increase its general assets by that amount. The silk merchant paid the Japanese seller for the merchandise, receiving the dishonored acceptance in exchange. The attempt of the bank, in the hands of the State Banking Department, to compel the silk merchant to pay it the amount of the draft, as agreed upon in the acceptance agreement, failed. The court held that the refusal of the bank to honor the acceptance at maturity constituted a failure of consideration under the agreement. The suit involved only the rights of the bank and its customer under the letter of the credit agreement. There was no third party bona fide holder of the draft in the case. There was no right of set-off involved, there being no indication in the court opinion that the silk merchant was even a depositor of the Bank of United States, although it is not good banking practice to establish letters of credit for account of non-depositors. Upon whom should the less fall in a situation of this kind? In discussing this matter before the recent convention of the American Institute of Banking, Wilbur Ward, an officer of the National City Bank of New York, declared that merchants and bankers would probably be of the opinion that the buyer should bear, and not pass along to the depositors, the loss attendant upon the inability of the bank to retire an outstanding bill accepted for his account. He should be penalized for choosing an unsound bank, Mr. Ward said. # Result of Decision. The court in the Bank of United States case apparently considered that a contract was involved to which there were only two parties. The bank, it apparently reasoned, agreed to do a certain thing for its customer and failed to do it. Therefore, such reasoning concludes, the customer is excused from performance of his part of the contract. What the court failed to take into account, evidently is that now, since the bank is not actively in operation, its depositors and other creditors have an interest in the matter. The practical result of the decision is that one creditor of the failed institution, the holder of the acceptance, recovers in full, while other creditors take pot luck. (Copyright, 1931).

20. July 31, 1931 Brooklyn Eagle Brooklyn, NY
Article from Brooklyn Eagle, July 31, 1931

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Corn Exchange Bank To Open New Branch The Corn Exchange Bank Trust Company today announced will open its Colonial branch Columbus Ave. 81st St., Manhattan next Monday George 8. Carr will be in charge of the office This was formerly branch of the Bank of United States was sold to Corn Exchange by the Raw Silk Futures State Banking Department in liquidating the closed institution Prices York Exchange Before merged by the Bank High Last of United States it was the Colonial 2.25 2.25 2.25 2.27 Mr Carr was vice president of the Colonial and 2.24 vice president of the Bank of United 2.24 2.24 2.24 2.25 States

21. August 6, 1931 The Times-Tribune Scranton, PA
Article from The Times-Tribune, August 6, 1931

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PLAN OF BANK OF UNITED STATES New York, Aug. for the of the closed Bank of United States will be announced within ten days or two weeks, the Associated Press learned from reliable sources yesterday. While details of the plan could not be learned, was understood that Arthur W. Little, former director of the Bank of United States, would be chairman of the board of the new The Bank of United States was closed by the state banking department on Dec. 11. 1930. It has no connection with the federal government.

22. August 19, 1931 The Evening Sun Baltimore, MD
Article from The Evening Sun, August 19, 1931

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ANK FAILURE TOTAL GIVEN OUT BY BOARD irst Seven Months Of Current Year Put Number At 778 VER 1928, 1929 TOTALS Criticism Increasing Against U. S. Loans To Foreign Countries By C. B. Upham deposits less than half million. Special Dispatch to The Evening Sun] The record of 7,800 bank suspensions Washington, Aug. 19-The failure of since the first of 1921, with apparently an acceleration in the number of curfour banks with thirty-four branches rent failures, is causing more and more and resources of more than $100,000,000 demand that active measures be taken in an Ohio city gives added signifito put stop to it. More and more the cance to bank suspension figures recountry districts are inclined to blame leased by the Federal Reserve Board the laws or the Federal Administratoday. The reserve board compilation tion for conditions. There are increasshows that suspensions for the first ing criticisms of large Federal Reserve seven months of 1931 numbered 778. loans to foreign countries and to for which is not only more than for the first ten months of 1930, but more than for the entire year of either 1928 or 1929, or any other prior year with the exception of 1926. Similarly the deposits, nearly half Domino billion dollars. involved in the failures during the first seven months of this year are greater than those for any Largest selling entire year, with the exception of 1930 Only eight States and the District of Cane Sugar Columbia have escaped bank failures so far this year. Five of the States are On the air Saturday in New England, and the other New nights at 8.30 England State, Massachusetts, has had but one. Illinois leads with 105 and "Sweeten it with Domino" Iowa comes second with 65. The Toledo suspensions leave that city, of some 300,000 population, with two National banks, a trust company small State bank and two industrial banks, one of which operates on the Morris plan. Out of total bank deposits in the city of $184,000,000 last June there are now only some $50.000,000 in open banks. per cent. of the deposits in the city have been tied up by these four bank failures and that of large trust company in June. Simultaneously with the announcement of the Toledo suspensions word was received of the failure of the only two remaining State banks in Omaha, Neb. The situation there is not serious, however, as in Toledo because Omaha what is known National bank town. There are still six substantial National banks in Omaha Toledo, on the other hand. has been State bank town. It has only two National banks and one of them has eign banks, while no help seems to be forthcoming for the banks in distress at home. Regardless of the validity of these comments and criticisms, they are being made, and there is no easy answer to them that the ordinary run of bank depositor, and, incidentally, voter, can understand. Millions To Save Germany Millions, they say, have been sent to save the banks of Germany, hundreds of millions are being made available to other foreign banks, but the banks in one Ohio town cannot get help to save hundred million of the deposits belonging to its citizens. Theoretical economics and the hard facts of practical finance are not satisfactory answer to these people. Heretofore the demand for action has been scattered. for, while many banks have failed. there has been nothing quite comparable to the Toledo situation. Most of the failures have been of small banks, and in scattered rural areas. True, whole counties have lost their entire banking facilities, but they have been relatively unimportant counties financially. The Bank of United States failure was drop in the bucket of New York city's total banking resources. So, too, were the failures of numerous outlying banks of Chicago in comparison to "loop" bank resources. But now we have the elimination of seventy-five per cent. of the banking resources of an important city, in State which has both financial and political importance. It may bring action.

23. August 20, 1931 Columbia Daily Tribune Columbia, MO
Article from Columbia Daily Tribune, August 20, 1931

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Depositors Are Beginning to Ask Why Federal serve Should Go to Germany's Aid, but Permit Banks at Home to Go by the Board. By UPHAM Special Leased Wire to Tribune Copyright WASHINGTON, D. Aug. failure of four banks with branches and resources than $100,000,000 in an Ohio city gives added significance bank suspension figures released by the federal reserve board today The reserve board compilation shows that suspensions for the first seven months of 1931 numbered 778, which is not only more than for the first months of 1930, but more than for the entire year either 1928 or 1929. or any other prior with the exception of Similarly the deposits involved the failures during the first months of this year. nearly half billion dollars, are greater than for any entire year with TOLEDO BANK FAILURES MAY BRING SOME ACTION TO HALT MOUNTING FINANCIAL TOLL exception of 1930 Only eight states and the trict Columbia have escaped failures far this the states are in New Engand the other New England state, Massachusetts has had but one. Illinois leads with 105 and Iowa comes second with 65. The Toledo suspensions leave that city of some population with two national banks, trust company. small state bank and two industrial banks, one which on the Morris plan Out of total deposits in the city of $184,000.000 last there are now only some $50,000 per cent the deposits in the city have been tied up by these four bank failures and that of large trust company in June. Simultaneously with the nouncement the Toledo suspensions, word was received of the failure of the only two remaining state banks in Omaha, Neb The situation there not so as Toledo, because Omaha what known national bank town There are substantial national banks Toledo the other hand. has been state bank town has only two national banks and one of them has deposits than half million The record of bank sussince the first of an acceleration in the number of current failures. causing more and more demand that be taken put stop More and more the country districts are inclined to blame the laws of the federal administration for conditions There are increasing criticisms large federal reserve loans to eign countries and to banks. while no help seems forthcoming for the banks tress at home. Regardless the validity of comments and criticisms, they are being made, and there easy answer them that the ordinary run bank depositor and voter. understand. they have been sent to save the banks of Germany. hundreds of millions being made available to other foreign but the banks Ohio town cannot get help hundred million the deposits belonging to its citizens. Theoretical economics and the hard facts practical finance are not satisfactory answer these people. Heretofore the demand action has been scattered. while many banks have failed. there has been nothing quite parable the Toledo situation. Most of the failures have small banks. and rural areas. whole have their entire banking facilities, but they have been atively unimportant counties, nancially The bank of United States failure was drop bucket of New York city's total banking So were the failures of outlying banks of Chicago in comparison to bank But now have the elimination of per cent of the banking an state which has both financial and political importance may bring action.

24. December 26, 1931 Green Bay Press-Gazette Green Bay, WI
Article from Green Bay Press-Gazette, December 26, 1931

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Outlook for 1932 There been six stages of the process stocks, during which depreciaand directly influenced the per decline the associated the cent fall was the the end the spring 1930, when real intimation of prolonged was in the minds the banker and business occurred December, 1930. when confidence was shattered banking failures the and culminating episode the Bank United States New appeared slump this which recognition seriousness of Germany's credit The at the end of Augthe banks, the susBritain threat American withdrawnls gold United States nations. and was checked the early part October the formation the National Credit corporation. Basis of New Fortunes The which Dehas been due to tion of fear and of the Amerrailroad structure and alarm Germany's outlook During last phase depreciation for and bonds and for institutional hibited less resistance any the periods and disbe the of the thirty sixty that securities and commodities No healthy can fail appreciate the and foreign nations what would crisis in credit. reality of crisis those who must suffer from this son the that the Trend of Industry Charts the recording the of dustrial output the tribution kinds Most gains normal average. the finds industrial smaller percentage that which stood for some the low point the depression These been temporary and slight upward curves during the twelve in the second quarter when production averaged per its low level the last year fallMay per This was due to such influ-

25. May 20, 1932 Press and Sun-Bulletin Binghamton, NY
Article from Press and Sun-Bulletin, May 20, 1932

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Defense Rests in Trial of Banks Superintendent New York, May (Associated Press) defense rested its today in the trial of Joseph on trial for alleged neglect duty connection the closing Bank of United States. Judge George and jury General The last defense witness today George Harrison, of the Federal Reserve of New York. who addition character witness, told his activities trying to bring about merger the bank Public National Bank and Manufacturers Trust after the defense had rested, Max Stuer. special prosestarting began reading excerpts the annual of Broderick December 1929. to the and the Legislature.