gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
ccbb91703ff7c442
Response Measures
Accommodated withdrawals, Borrowed from banks or large institutions, Fed/other loan, Public signal of financial health, Capital injected, Partial suspension, Full suspension, Books examined
Clearinghouse involved: Yes
(loan, examination, or other measures)
Receivership Details
Depositor recovery rate
100.0%
Date receivership started
1933-05-11
Share of assets assessed as good
29.4%
Share of assets assessed as doubtful
50.4%
Share of assets assessed as worthless
20.2%
Description
Organized rumor campaign in 1932 preceded the statewide Feb 1933 holiday; the First National did not resume and was taken over.
Events (6)
1.May 1, 1914Chartered
Source
historical_nic
2.July 27, 1932Run
Cause
Rumor Or Misinformation
Cause Details
Organized communist-linked telephone and letter campaign circulating rumors aimed at undermining confidence and instigating runs on the First National in Detroit.
Newspaper Excerpt
breaking the First National here...is bearing fruit (letters describing runs and rumor campaigns)
Source
newspapers
3.February 14, 1933Suspension
Cause
Government Action
Cause Details
Statewide banking holiday ordered by Governor Comstock (Feb 14) closing all Michigan banks and restricting withdrawals.
Newspaper Excerpt
Every bank and financial institution in Michigan was closed today under a sweeping, eight-day suspension order issued ... by Governor William A. Comstock.
Source
newspapers
4.March 21, 1933Other
Newspaper Excerpt
New bank will take over part of the assets the First National bank ... and assume part of the deposits (announcements of reorganization with RFC, Ford, GM). }
Source
newspapers
5.May 11, 1933Receivership
Source
historical_nic
6.October 28, 1933Receivership
Newspaper Excerpt
Charges that the holding companies of two closed national banks... were filed by the federal receivers (suit by receivers re: First National).
Source
newspapers
Newspaper Articles (25)
1.July 27, 1932The Bismarck TribuneBismarck, Mandan, ND
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SOCIAL REVOLUTION IN COUNTRY OBJECT OF RUMOR CAMPAIGN Ramifications of Conspiracy Are Revealed by Police at Pontiac, Mich. SEEK REGIONAL DIRECTOR System Followed Was for Agents to Undermine Depositors' Faith in Banks Pontiac, Mich., July 27.-(P)-State police sent out orders Wednesday for the arrest of George Rowland on a charge he acted as Detroit agent of a radical group which planned a social revolution by circulation of rumors attacking a number of large banks in the country. The officers said that a raid on Rowland's hotel room here Tuesday revealed ramifications of the plot. Capt. Ira H. Marmon of the state police, who directed an investigation of Rowland's activities here and led the raid on his room, said letters and telegrams seized established that Rowland had directed circulation of rumors against banks in Illinois, Indiana, Ohio and Michigan and that he had been instrumental in attacks against the First National bank here. Marmon believes Rowland was warned by a confederate and fled. Marmon said the letters showed that Rowland was one of several regional directors of attacks against banks and that a number of subordinates were working under his direction in the middle west. particularly in Chicago and Cleveland. Called Big Depositors Telephone conversations from Rowland's hotel room, which were tapped by detectives, Marmon said, showed the method of operation of the ring. Agents going into a new city, secured the names of prominent business men from the city directory, called them by telephone and warned them that banks in which they had money were unsound. Letters written by Rowland but not yet mailed also were taken. These, Marmon said, asked for reports on the progress of campaigns and suggested means of procedure. Advertisements assuring depositors of the soundness of the First National bank here recently were placed in a Pontiac newspaper after oficials of the institution said they felt that pressure had been brought to bear against depositors. One letter, which had been written to Rowland by "Comrade HG" at Cleveland read: Tells of Campaign "Following your instructions to me, I am writing to give you as clear a picture as possible of our campaign against the banks in this district. "You know it is a slow proposition to get people steamed up for a run. However, your telephone program seems to be working out fine. There is considerable unrest here and we are informed by clerks in both the Union Trust and the Cleveland Trust that the depositors are very nervous. We have tried to keep up the good work. "We note here with great satisfaction that you are making considerable progress in Pontiac and that you are taking a good crack at the one jug (bank) which is there, the First National, and it seems to us if you can that over a good dent will be put made in the bank at Detroit and it won't be long before our combined efforts will make a lot of trouble there as well as here, Chicago and elsewhere. Object to Strip Faith "I did not have much trouble in convincing the agitation propaganda bureau that this was important work and the sooner we strip the petty bourgeois and the white collar stiff we of his faith in banks the sooner will bring about the unrest that will lead to the revolution. "All of the other activities: campaign, unemployed councils, workers' ex-service men's league, etc., are going forward satisfactorily. "We will all hope to see you in the hear future as we know you are in a not spot. Yours for the revolution." A letter written to "Dear Comrade GH" read in part: "I am very encouraged because we have had plenty of runs against the banks, particularly the big five in Chicago, big meaning the First National, Continental Illinois, etc., and the Union Trust and Cleveland Trust in Cleveland and others. My work here n breaking down the outpost of the banking structure in Detroit by breakfruit." ng the First National is bearing
2.July 27, 1932Delphos Daily HeraldDelphos, OH
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Article Text
AUTHORITIES SEEKING AGENT IN BANK PLOT
Communists Allegedly Conducting Rumor Campaign Intended to Wreck American Banks -Agent, George Rowland, Using Telephone to Instigate Wrecking Plot in Illinois, Indiana, Ohio and Michigan.
DETROIT, July 27 (UP) Federal agonts and state police are seeking a Communist agent allegely tended to wreck American banks, the Detroit Mirror said today in a copyrighted story.' The agent called George Rowland, is said to have instigated a telephone bank-wecking plot among bank depositors in Illinois, Indiana, Ohio and Michigan. He was working under orders, according to the state police, from Central Communist headquarters in New York. Among seized documents were found telegrams from a "W. B." in Chicago which told of "much progress here. Considerable run on Jugs bank nthe loop. Big accounts nervous and soon will be panicky.' Another from "H. S." in Cleveland told of similar campaigns. One of the letters addresesd to "Dead Comrade Gh" by the agent read:
"I am very much encouraged because we have had plenty of runs against the big banks, particularly the big five in Chicago, meaning The First National, Continental IIIinois, etc., and the Union Trust and Cleveland Trust in Cleveland and others. My work here in breaking down the outpost of the banking structure in Detroit by breaking the First National here, is bearing fruit. I have considered this program for a simultaneous run against all of these institutions and other key institutions through the country and can see that it would be almost the final blow against the banks, but I cannot see how we can get them all going at the same time. Believe me Comrade. Another letter from Comrade Gh" at Cleveland read: "Dear Comrade: You know it is a slow proposition to get people steamed up for a run. However, your telephone program scems to be working out here. I did not have much trouble in convincing the agitation propaganda bureau that this was important work and the sooner We strip the petty bourgeois and the white collar stiff of his faith in banks the sooner we will bring about the unrest that will lead to the revolution. Yours for the Revolution.
COLUMBUS Beverly Joan Richlak, 3-month-old daughter of Mr. and Mrs. Stanley Richlak, was dead today after a day's illness during which her parents had left her in the care of a neighbor to go on a brief vacation. The baby had been 111 prior to her parents departure.
3.February 14, 1933The Indianapolis TimesIndianapolis, IN
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Article Text
BY LESLIE D. HARROP
United Press Staff Correspondent
DETROIT, Feb. 14.—Every bank and financial institu-
tion in Michigan was closed today under a sweeping, eight-
day suspension order issued in the early hours of the morning
by Governor William A. Comstock.
The closing order brought to a standstill the financial
affairs of Detroit, the nation's automobile capital, and
halted similar activity in scores of farming and industrial
communities of the state, which has a population of more
than five million.
Immediate necessity for the unprecedented moratorium
was created, Governor Comstock declared, by a crisis in the
4.February 14, 1933The Indianapolis TimesIndianapolis, IN
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Article Text
Possibility that the eight-day banking holiday "might be modified in a day or so, after the banks get straightened out," was mentioned by Governor Comstock this morning, as he prepared to return to the capital.
Banking officials estimated the holiday paralyzed approximately $1,410,978,629 in banks and $144,407,139 in trust companies. These amounts virtually are "frozen" during the suspension period.
# Citizenes Are Bewildered
Approxmately 420 state banks and 120 national banks were closed by the Governor's proclamation.
Banks will retain skeleton staffs on duty, during the holiday period, to advise as to the credit of those wishing to check on funds on deposits.
Reichert, ill with influenza at Ann Arbor, left early today by motor for the state capital against the advice of his physician.
Stunned by the suddenness of the Governor's proclamation, citizens everywhere went about customary duties bewildered as to the outcome.
Stores generally opened as usual and most announced that they had available funds for today or longer. What will be the outcome toward the end of the week, when pay rolls fall due, was not known.
# Money Rushed by Truck
Banking department officials were positive in asserting that, despite the legal closing of the banks, arrangements must and would be made to allow small withdrawals for necessary current funds to operate fundamental businesses.
The actual plan that will be adopted was to be announced later in the day.
Western Union telegraph rushed orders to offices in nearby states to ship currency into Michigan by armored truck. A. A. Burr, Detroit superintendent, said they had available cash for today and would secure funds to cash any and all money orders of the company that might be presented.
5.February 15, 1933The Indianapolis StarIndianapolis, IN
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BANK RELIEF SEEN IN MICHIGAN CRISIS
CONCLUDED FROM PAGE ONE. branches of facilities for making reguhours of safe deposit departAmong the industrial concerns plans meeting pay rolls in cash were the General Motors Corporation, Ford Motor Company and the Chrysler Corporation.
Text of Statement. The text of the clearing house statement "The Detroit Clearing House Association today to reguladesigned the ience the bank holithe day by the Governor last night. The arrangements which of considerable benefit the Acting upon the supplemental the Detroit arranged Thursday morning excess depositors, both checking and savings, may withdraw for purposes not in excess per cent the net on the of Feb. Such withdrawals made counter which will be paid in
Safe Deposit Vaults Open. "2. All banks branches will maintain facilities for making change deposit departments will be open and will on the regular Arrangements are being made with many the large life insurance companies whereby for premiums will be order that the policies not
Not in Bad Shape, View. "Let assure you, the Governor said in statement to the public, "that the banks Michigan, generally speaking, are not in bad The late reterms earlier that are "not as bad they might appear do not think there will the holimuch day as generally the Governor merely an emerthe gency of the banking struc-
Period of Feb. 14 to Feb. 23. The closing, the banks was for the period Feb. 14 to Feb. 23. Although all banks in the lower peninsula the proclamation, stitutions in the upper peninsula, which the the Federal Minneapremained The Detroit Stock Exchange closed but were accepting selling orders made on exchanges outside Detroit Trading of any sort in Detroit bank stocks startled populace first order moved this morning when extras issued newspapers in the larger Immediately tion began afford relief to citizens.
Plight for Farmers. Milk distributors planned extend credit temporarily but said they didn't know how farmers would get paid "when they can't checks Retail stores main. to cash during the day Groceries held determine and many reported they policy, would extend credit to regular tomers. Many gasoline did likewise Mayor Frank Murphy Detroit citizens to "be calm." and said resources the city government would be thrown into relief work, needed. At first, dazed by suddenness the action, the citizens adopted the main an apathetic Many, dollars' cash their planned message friends outside the funds to be sent in by for until the closing order lifted. companies said Telegraph cash money were orders for any "reasonable amount. Millions in Gold Received. $15,000,000 and Between shipped into the city gold today from the Federal Reserve bank Chicago, consigned to the Detroit Federal reserve bank branch the Accompanied by detail fifteen was transported to the detectives, vaults of Detroit any part the state Banks kept small staff on hand for and officials reported work depositors at any of the financial At resolution praising "courageous statesmanship in proclamation.
Prevented Crash, Assertion. State Representative Vernon Brown, Republican, in supporting the resolution, said he convinced that the Governor had not declared there crashes in the history of the coun-
The resolution had no legal stand bills were introduced but two the House which would force banks and trust One the during declare banking holidays and that banks and 'shall not trust The other during designates Feb and 21 as legal holidays and in Michigan
May Shorten Holiday introduced The measures after some of the messages received by the during the day challenged his authority order holiday said there was The Governor holiday might possibility full cancelled United that Moran agents had eviobtain the spreading relating information arrest therefor responsible Chapin Goes Back to Capital. people of The urged the local the state report secret any fice of the the spreading false Chapin of the Secretary Commerce Department Ballentine Saturday confer on ington returned to the banking being straighten this out possible moment In these the steps the Federal the secretary of the treasury are
6.February 23, 1933Belleville Daily AdvocateBelleville, IL
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MICHIGAN'S BANKS OPENED TODAY FOR LIMITED BUSINESS gan's banks opened for restricted business today. some of them for the first time since Governor William A. Comstock's emergency closing order ten days ago. Rudolph E. Reichert state banking said that most banks were "doing business in the best possible way," and congratulated the state's bankers on their cooperation during the emergency. He said that most banks were cashing checks that had not already been cleared, on the depository percentage basis laid down in the governor's second proclamation issued Tuesday. Generally, the banks were following the plan under operation for the past week in Detroit, allowing depositors to withdraw 5 per cent of their deposits. In Detroit at the opening hour there were no lineups outside the banks and few instances of unusual numbers of customers inside.
7.February 24, 1933Star TribuneMinneapolis, MN
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NEWS
Page. Movie Reel Editorial Movies Markets Winchell Ads Folly Island. Weather Radio Sports 16 Plans started for early pres. the west farm relief proposal. Page The United States general ruling on the proper of assembling to vote repeal. Page The senate banking heard charge the City control the mar ket for its stock. Page Senator assailed he clared control by New York Page The senate did some expense paring and then wiped added Page
Mrs. Theodore Roosevelt belated apology from health officer. Page Senator Thomas Walsh sailed for Cuba to marry sugar grower's Page President Roosevelt appointed Representative Douglas of Arizona as budget director. Page Michigan banks reopened. Page 2.
Dr. Charles urged cational guidance for employed adults. Page The repeal proposal was put Page The city council committee recommended the department personnel cut Page The park board had natural goldfish bowl Birch at Page Presidents of state teachers' col. united against the proposed curtailment of the state sys. tem. Page Northwest Feed Dealers told unregulated trucks affected their business. Knowledge of school subjects was called not the essential of education of girls by Dr. Malcome Mc. Lean. Page Miss Helen Wilson, former resident of Minneapolis, died Tre mezzio, Page 6. Patrick 79. deputy sheriff, fell dead. Page Two suspended Paul policemen were sentenced for larceny. Page
SINCE prohibition went effect several states which were dry have shown wet sentiment. map and story indicate the Page President-elect Roosevelt has decided he'll rely on service agents guard him the inanguration. He told Arlayne Brown, world champion revolver shot. offered that she won't be needed. Page The intelligence that gets marks not the only from educator. Dr. Malcolm college rector the University of urged education that will fit life. Page
The big Japanese drive in Jehol started. Page The Mount Everest plane party from Sicily after five Page WOMEN'S NEWS. Evon Nollette describes garments designed for double duty. Page 13. for Swedish meat balls by Kate Smith. Page 13. Restlessness is Elsie Page 13. Jessie DeBoth presents Sunday dinner menu. Page 13. SPORTS. Mickey shaded Frankie Knauer the six-round of the boxing Page 16. The city high school basketball will wind up today. Page 16 Page 17. Alexandria's quintet was elimi nated by the St. Paul Flyers in the feature of the amateur basketball the Ascen sions, Holy Cross and Belle Plaine also won. Page 17.
MARKETE
Bullish vanished in the Minneapolis pit; Chicago tumbled. Page 18. Stock values slumped to new low averages on large turnover. Page 19. Bonds suffered the worst relapse since the first the 19. Page 19. Dog and lamb trade advanced in South St. Paul: cattle prices mained unchanged. Page
8.February 25, 1933The Atlanta ConstitutionAtlanta, GA
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MICHIGAN STUDIES NEW BANK PLANS
Organization of State Reserve Bank Proposed by Senator Orr.
DETROIT, Feb. plans designed aid in releasing billion and half dollars in bank deposits were under scrutiny in Michigan tonight, while bankers awaited and national legislation for the 530 banks operating restrictions. One plan, calling for the issuance of transferra certificates against the frozen deposits of banks, brought forward by Rudolph E. Reichert, state banking commissioner, who under legislation pending before the state legislature would come the virtual banking dictator Michigan. The other, favoring the organization of state reserve was proposed by State Senator HerOrr, Caro, (Mich.) banker. plans make available at once 50 per cent of all deposits by organizing two take over the liquid assets of the First NationDetroit and the Guardian National Bank of Detroit, the two largest in city, were under cussion. Further it appeared, action tomorrow by the house in Washington on the Couzens giving powers over national banks to the comptroller of the currency. The olution was approve imously day by the house committee. Reichert's plan drew state-wide today. He proposed, in effect, the issuance of ferable which would be acceptable in virtually all purposes the same as currency. They would be issued the total volume of deposits that the banks are unable to pay cash. The only limitation circulation, Reichert said, would be the willingness of creditors to accept certificates on their face value. The certificates, Reichert said, aftbeing employed to pay rent, buy food, and other essentials, could be turned into the banks at full face value in payment of obligations owed to the banks. State Senator Orr, declaring he is proceeding with plan for organization of a state reserve bank, said reof many outstate banks now are held in Detroit institutions. which are withdrawals on the same basis as that of other itors- per cent of the total deposited. Under his reserve funds would be carried in outside In most parts of the state today, banks continued to pay out five per cent to depositors.
9.February 25, 1933The Kokomo TribuneKokomo, IN
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OPEN DEMAND OF MICHIGAN BANKS
Mich. Feb. and busimerchants Seventy-five Michiof southwestern ness men the capitol today came state gan Governor William demand Comstock newly ac. to force powers quired bankers open of the normal business governor group require banks, should afteight-day closing an commercial restrictions while continuing checking accounts with around savings safeguards
Church Pentecostal 2445 The Pentecostal street holding North Kennedy studies, conducted series of Bible on Sunday Elder Irvin Bradley, by subject bo "What Sin Unto The form an open take study Herman Basore, Mr. and sing the afterBeech noon and evening services.
Resigns as Ambassador Feb. Hoover today accepted President Reuben Clark, the resignation Mexico, effective ambassador immediately. The ambassador told days Presithe after he would submit his resignation.
Restrict Withdrawals the Lima First American Trust Company meeting night placed restriction withdrawals of effective today resolution, directors limit of two per cent on
10.February 26, 1933The Philadelphia InquirerPhiladelphia, PA
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Michigan Bankers Hail Passage of Couzens Bill
DETROIT Feb 25 (A. Michigan's bankers, eager for legislation which would lift. at least in part, continued limitations on banking business, tonight saw in passage of the Couzens bill Washington the first definite step toward the State's jam The bill signed by the President late today will give the comptroller of the the same emergency power over national banks as may be enacted by State Legislatures. In Michigan, legislation is now pending enable the segregation frozen assets in banks, and to make to depositors funds up to the percentage of liquid After eight days of almost commactivity banking in Lower Michigan and three more days of operation under rigid limitations laid down by Governor William A. Comstock group of merchants today made the first demands for of the restrictions proclaimed on 14. Seventyfive business demanded of the Governor in Lansing that he use his newly acquired extraordinary powers to force the banks to open for more business. The group told the Governor they were unable to with their funds tied up in banks, and demanded that he require financial institutions remove restrictions in commercial checking accounts while continuing to safeguard savings withdrawals. The Governor ex. plained that reserves of many outState banks are tied up in Detroit are releasing only per cent. He said that only Federal legislation could compel the Detroit banks to release more. In Detroit, meanwhile conferences continued between large depositors officials of the First National- the Guardian National of Commerce on the proposed formation two new banks, was expected. will release between 40 and 50 per cent. of deThe Detroit Clearing House Association plans scrip as medium of exchange in the city pending termination of the holiday The method was adopted as the most effective device for keeping up business and industrial activity Details of plan remained to be worked out.
11.February 26, 1933Evening StarWashington, DC
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BANKS OF DETROIT PLAN SCRIP ISSUE Clearing House Announces Step Pending End of State's Holiday. By the Associated Press. DETROIT, February 25.-The Detroit Clearing House Association tonight announced plans to issue scrip as a medium of exchange in the city pending termination of Michigan's banking holiday. Announcement of the scrip plan came shortly after it became known that further complications in the national bank situation have developed at Washington. threatening to delay resumption of normal business The scrip method was adopted as the most effective device for keeping up business and industrial activity. Details of the plan remained to be worked out. Merchants Seek Loosening. After eight days of almost complete inactivity in banking in Lower Michigan and three more days of operation under rigid limitations laid down by Gov. William A. Comstock, a group of merchants today made the first demands for 2 loosening of the restrictions proclaimed on February 14. Seventy-five Southeastern Michigan business men demanded of the Governor in Lansing that he use his newly acquired extraordinary powers to force the banks to open for more normal business. The group told the Governor they were unable to continue with their funds tied up in banks, and demanded that he require financial institutions to remove restrictions in commercial checking accounts while continuing to safeguard savings withdrawals. The Governor explained that reserves of many out-State banks are tied up in Detroit institutions, which are releasing only 5 per cent. He said that only Federal legislation could compel the Detroit banks to release more. detroit Parleys Continue. In Detroit, meanwhile, conferences continued between large depositors and officials of the First National-Detroit and the Guardian National Bank of Commerce on the proposed formation of two new banks. which. it was expected, will release between 40 and 50 per cent of deposits. Disfavor of the proposal came from one source. In Grand Rapids, Gilbert H. Daane, president of the Grand Rapids Savings Bank and a former president of the State Bankers' Association and two other bankers termed the reorganization plan "discriminatory" and said it "must ultimately work against the interests of out-State banking institutions."
12.February 27, 1933Stevens Point JournalStevens Point, WI
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MITCHELL OUT HEAD THE NATIONAL CITY
At Detroit Ford Takes Over Two Great Banks and Provides Entire Needed
Capital
DELOS SMITH New of the National City bank affiliates, today, accepted the resignation of Charles Mitchell, its and genius who made second largest bank in the world. By accepting the resignation, the Mitchell sever all the National City The was direct the senate baking committee hearings which Mitchell made sensational Strengthening Confidence
Other banking changes, all designed strengthen public confidence the nation's financial tem, occurred widespread night today. Limitations withdrawals of deposits extended Ohio cities, Indianapolis; Henry Ford offered reorganize great financial institutions in Detroit. Mitchell's resignation was submitted as left for Washington resume before the sencommittee banking and rency which has from him and other officers of National City affiliated companies story of bank operations outside the strict limitations of banking field aroused widespread Some New York financial observers the slump in stocks and bonds of recent trading days part the revelation National City operations, Mitchell statement resignation that unwilling what he called "public understanding" testimony should "react on the institution" his account.
Ford Lays Down Rule
An echo current disputes banks should outside the field of direct banking came in Detroit when Ford, up $8,250,000 cash let be why he had refused to go into other wealthy provide money for the instituHe believed that bank's first provide place for safe deposit, said, and thought that "bank loans should be made for and not purposes.' Under announced last night, Ford name all dibanks to take the First and the Guardian banks, since he providing all the capital for organization. Though official federal approval of the reorganization plans had been announced, was made that both the comptroller currency and the Reconstruction corporation approved. The R.F.C. will lend $78,000,000 help new banks pay 35 per deposits depositors the old institutions if require Eventually the two new banks be merged. The arrangement is expected lead lifting state-wide bank moratorium. Developments Elsewhere In Ohio, following banking developments grew out week-end conferences, which did not reach agreement until this mornCleveland, all banks except the National City restrict withdrawals from commercial and accounts five per cent exdays' notice. mayor declared three-day banking atorium, with the approval of all banks. In Akron, banks will permit withdrawals by depositors for "normal business" needs, determined by average withdrawals over several In Lima, the First American Trust company continued two per cent restriction initiated SaturThe Indianapolis Clearing House limit five per from all bank accounts, effective with the start business today, but Governor Paul McNutt reiterated that statewide moratorium was Maryland, where moratorium declared Saturday effective for three banking days, looked to legislators relief through bill limiting withdrawals by depositors, expected to be offered tonight.
OHIO BANKS LEAD
Lorain, Elyria, Youngstown, Massilon and Akron business today with degrees In Dayton and Montgomery counpurely localized three-day moratorium effect. Lima two the three banks Practically the banks joining the restrictions today were affected the CleveDayton banks. Cleveland stock exchange and voted No limit placed on the closing order.
All banks Lorain followed the lead of nearby Cleveland allowonly five withdrawals. Twelve banks villages and in Montgomery county joined Dayton banks in three-day Elyria banks, in the Cleveland limited savings account withdrawals approximately cent per month. No placed on commercial counts. Youngstown banks joined the limiting withdrawals one bank and $25 plus five
13.February 27, 1933The Macon NewsMacon, GA
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U. S. Moves to Strengthen Banks
NEW TREASURY HEAD TALKS TO MILLS
Woodin Called Into Conference as Federal Aid Is Extended Institutions
MONEY TO BE ADVANCED MICHIGAN ORGANIZATION
Feb. 27. The federal government Monday prepared to exert all available to strengthen weakened links in the country' banking system. William H. Woodin, secretary of the was here conference the outgoing are to act, not the said. With those words he turned aside all queries regarding the banking situations caused Michigan and Maryland to close their banks temporarily and led banks in number of Ohio cities limit withMills Sunday conferChairman Eugene Meyer of the federal reserve board assistance the treasury the banks could Directors the Reconstruction Finance corporation continued their study the They met in two protracted secret sessions Sun- m unusually authoritative sources was reported the R. F. has agreed to the two big Detroit banks reorganized new capital supplied by Henry Ford. said in the same quarter that an additional $40.would advanced by other financial institutions
FORD FINANCES two BANKS Detroit buttressed the lions Henry Monday came the of plans lead Michigan out of the difficulties which in the of statewide banking holiday two The banks whose capital will consist 250,000 furnished by Mr. and his are expected to open for business They be built from the of the First National Bank and the Guardian National Bank of whose depositors be able receive immediately about cent of their Disbursement remaining 70 per cent must await the Continued on Page
14.March 21, 1933Hickory Daily RecordHickory, NC
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New Detroit Bank Formed With Capital; Aid
WASHINGTON, March formation bank, the National Bank Detroit, capital of twenty-five lions dollars was day by the Corporand Alfred Sloan, dent of the General Motors corSecretarv Woodin approved the The announcement was made treasury, where been for days solution Detroit banking problems. bank will take over part of the assets the First National bank and the Guardian National Bank Commerce Detroit and sume part the deposits. Half of the capital. will be form of subscription the common stock and has paid by General Motors Corporation. The balance has been supplied the United States government through the Reconstruction nance form subscription to the preferred
15.March 21, 1933The Niles Daily StarNiles, MI
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Reconstruction Finance Corporation to Supply
March tional bank of Detroit, with capital millions dollars nounced today. by the Reconstruction corporation and Alfred Sloan, president of the General Motors corpora- approved the
The announcement made the toward solution of De the new bank the assets First National bank and the Guardian National Bank of of Detroit and assume part of the deposits, Half of the capital. will be in form of subscription the
The balance has been supplied by the United States through the Reconstruction Finance corporation in the and the joint statement make available bank with ample The statement issued by Jesse Jones, of the Finance that and old and out of legal per cent of their net deposits will be immediately made the the two old This, statement said, will be made quisition the more liquid assets and the GuardNational Bank of Commerce.
Officials of the Grand Rapids Savings bank today attempting to fulfill details of financing program out(Continued
16.March 27, 1933Detroit Free PressDetroit, MI
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on Bank Issue
Letter to Roosevelt Urges Reopening of
Calls Policy Favored by Coughlin Ruinous
In an open letter to President which he read from pulpit in St. Joseph's Episcopal Church, the William Kinder, rector, Sunday attacked statements the Father Charles Coughlin. pastor of the Shrine the Little nection the latter's about bank officials. Anent the banking situation, Mr. Kinder demanded that the President once to reopen the two banks Mr. Kinder read the letter from his pulpit instead of his customary Sunday morning sermon. His ances the Woodward gregation by they left that the President by radio the Episcopal blamed the Federal Government for "failing the Detroit banks for the "mistakes advised Secretary of the Treasury. found fault with Secretary Woodin for using Royal Oak priest mouthpiece, blamed Father Coughlin for alleged against officials praised the Father Coughlin's superior, the Most Rev. Michael Gallagher, Catholic bishop of Detroit. Text of Rector's Letter Mr. Kinder's letter follows: "Dear Mr. President: neither banker business man nor simply simple tomed though either 'old fool. spite of know about people and thing conditions my city. You your now that which ought, by some be said with courage and the most difficult times You and you have earned the confidence an entire nation. with respect to the Detroit banking situation grievous mistake been made which paralyze this state period. visors have been bamboozled by radio priest. Many people They been anesthetized hot by their own fears. Their minds numb but they will one day waken. When they the mistake which been here will come home vengeance. banks closed radio have made public that previously officers and members the directors of these banks, and that would give names those had done His charge has not been substantiated by Government No list has made action the after weeks of
Cash Supply Reduced
"Is not possible that twentyfive millions dollars taken from the First National Bank Detroit in what the beginning that bank? brought the cash the bank down above cent legal requirement for reserve bank. What happening perhaps happening the Guardian National Bank of Commerce Then the Governor's lamation made closing perhaps forced by the clash interests between the Ford Motor Co. the General Motors Corp. Perhaps? this very different ture that by the radio priest. that amount actual dishonesty these banks in Detroit small comparison the total business: small the pressure Please Turn to Page
17.March 30, 1933The Plain DealerCleveland, OH
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U. S. Union Trust Gets $25,000,000 Aid;
CHARGES FRAUD IN 2 DETROIT BANKS
Receiver of Mt. Clemens Bank in Suit Accuses Holding Companies.
March Detroit's largest banking ing companies for inoperative First and the Guardian National Bank of Commerce. tonight faced new difficulties as charges of deceit and trickery" were made against them the receiver for outstate bank The Detroit Bankers Co. the Group. facing ship with the Detroit banks and banking officials were charged Macy Watkins receiver the Citizens Savings Bank of Clemens, attempting to their ship majority of stock in the The charge was made in state ment filed Circuit Court petitioning for authorty levy 100 assessment on all stockholders of the Mount Clemens Bank, because bank's have preciated The asked for authority collect from the bring suit against of the two operative national banks Hearing the petition set for April Action for the appointment of holding was group of stockholders each group today petition for the Detroit Bankers Co filed by Thomas G. Long. attor for Hearing on petition mornThe included denial of all charges the suit filed by receivership for the company Aaron Kurland chairman of the Michigan Depositors Co-Operative League, oppose voluntary would permit the company to which name its The filed denies the First Bank of unable pay depositors that saying could banking by comptroller of
It denies there an but admits against that the Detroit Bankers panies the receiver for the by Mount and dition the following banks and Fred executive mercial Bank Harry former vice Bank president the First National First National the Guardian National the Common Bank State and the Detroit Bank banking and personal He charged the Detroit obtained in the and for payment the Bank Clemens the that of the earning Federal Reserve this procedure He the Detroit tually shares of Mount through ownership part through teller in the National The receiver the holding
18.June 27, 1933Richmond Times-DispatchRichmond, VA
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Banker Alleges Wall St. "Plot" Against Ford
Heavy Withdrawals Were Made Before Holiday to Tie Up Deposits, Charge
DETROIT June 26-(P)-A witness' charge that long-standing Wall Street plot to "strangle" Henry Ford financially lay directly behind the closing of two national banks in Detroit tonight rested in the records of one-man grand jury investigating the city's involved banking afThe charge, the most sensational in two weeks of open testimony, was made by Herbert R. Wilkin. Detroit banker, in detailing his knowledge of affairs leading up to the closing of the Guardian National Bank of Commerce which, with the First National Bank-Detroit, did not reopen after the Michigan banking holiday "Wall Street believed it had chance, by tying up Ford's deposits in the Michigan banks declared Wilkin to so deplete his working capital that he must deal with them
19.July 6, 1933The Times HeraldPort Huron, MI
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KEIDAN REFUSES TO HALT BANK INQUIRY
Page One) because Bank the conduct of criminal in Detroit Bankers company the for the holding the Could Void Leases Discussing at which Alvan Packard Motor president of and James Long said were present, about the asked the senator they the of the attitude Couzens such good not know its was said that old would to all their banking organized out Long related. explained that both and had branches rented quarters declared he new has leased First from Harry "Would that hamper the First National would absolute said Long Accuses Interests former president or former chairman to take the stand later During session reiterated terests determined of old He the Trust carry out plans to permit Edsel He said point to me be of no Long to mulate General were new bank to Henry believed the old banks should Long members of General Motors the for of resumption Called It Insolvent been under the Mr (B. E. the and going Long said. noted that of five the connected with and General and the directors other overlook the Judge Keidan asked replied that he described meeting March he chief saying and told them not and even of to Fourth of the city council to him to the opening of banks on grounds that Detroit resents being ground the of federal bureau-
20.October 28, 1933Grand Haven TribuneGrand Haven, MI
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CHARGES
Say Holding Companies of Closed Detroit Banks Acted Unlawfully
Oct. Charges that the holding companof two closed national banks here formed "furtherance an illegal and fraudulent and that both unlawfully used assets of the banks they controlled speculation, were contermed today court answers to stockholders suit filed by the federal receivers. The Acting for the closed First National troit, and the Guardian National Bank Commerce filed in federal court answer and bill the suit of the stockholders.
21.December 17, 1933Detroit Free PressDetroit, MI
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Stockholders' Motion Heard
Want to Show Cause of Insolvency
By Jack Weeks
Dec. National banks prove their contention that banks were wrecked within 30 days followappointment Government asserted FedJudge Knight argument attorneys for holders seeking injunction prevent double and counsel bank's the court reserved decision until the fer the case to master in chanhearing was held here through the inability Judge Knight present in Detroit today. Judge Knight assigned this to assist the Fedhas hearing cases in their jurisdiction.
Mass of Evidence Pointed To The asked that the matter referred the great to be presented. examination condition holding companies units of the latter during the finding of order and the fact judge may be available try the when comes up Protesting against referring the case master chancery taking great amount counsel for wouldn't enough to the the would require some 200,000 items assets in the First National matter how the bank became insolvent, that's no defense against Want Insolvency Cause Shown James Murfin, counsel for stockholders, vehemently asserted they did not expect controfinding but did allege the Comptroller admitted the solvent holiday March appointed. In April the our choicest assets. This bank wrecked within facts When Wood suits stockholders tried within Judge Knight asked him to prove his legations fraud the holding companies that Wood answered that introduce minutes the holding bank to bank within the Attorney Frank Robson who led argument for effect the ceiverships, by which assets have been had the and ability of its members meet obligations.
Blames Agents "Here First entirely solvent had abundance assets The condition which about the receivership acts Government agents the tion those facts cannot be made moment He asserted that the statute viding stock the holding companies regulations that did contemplate apply by the officers. Appearing the hearing for Judge Murfin and Mr. Charles Louis George Klein and James Turner Attorneys and Lawrence Levy represented the receivers.
22.February 2, 1934Detroit Free PressDetroit, MI
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Borrowing Judges' Names Kept Secret dinand Pecora, counsel for the Senate Banking considering tonight whether he would make the names of Michigan owed the First National Bank when closed. Pecora besieged by newspapermen veal names, but their publication serve useful He consider the matter night While the indicated that the judges from Detroit, Pecora said that some from outstate. was ported office judges the State Court also the beinjustice done the judges, jurist not desires write him he would make part the committee record. voted for dividend that he did not was On question that the bank always insisted collateral the borrower's condition Bank Demanded Mortgage
He drew attention case director in which bank demanded mortgage on the home. Directors loans were discussed than directors' unwieldly the numbered members, Mr Stair testified. board size through institutions and the consequent of board finally was duced half asserted that he garded "splendid the remark about the efficient methods loaning officers, to be lenient the directors know," Mr. Stair meticulous condition of their Stair's National loans which owed himself to any units the Detroit Bankers Company but had indorsed some ligations of business associates and relatives
Demand Note Paid Up
He listed $75,000 demand note Realty Feb. dorsement $125,999 borrowing Keim, which $78,000 balance against Mr. Inc., for which reduced balance $8,000. Against this offset the firm's of In addition, the DeTransfer totaling $50,000, which Pecora developed that the witness director the Buhl Stamping which had $130,000 why that had not included the didn't Mr overlooked any dorsed by Lawrence D.
Railway Note Explained
Pecora that the Wabash Railway Mr. Stair to the extent $125,000. plained that the York Bank through other banks. He said that not known banks that had taken part the Pecora that the witness and Mr. Stair did not those "Did you "that direct liabilities the First National directors totaled their indirect obligations $2,634,283?' didn't know that," Mr. Stair replied remember, however, 90 rectors the loans were cent Pecora sought to take Mr. Stair over other statements the Detroit Bankers witness said he nothing the detail that they had approved by the commit-
Signed 1932 Statement Mr. Stair one the He the tained Joseph Dodge, then ecutive having faith Mr. Dodge, signed. has faith in Mr Dodge, the told the Committee that he considered his position president of the Company less honorary He did any time office his received the honorary officer, all the others seem to been on the payroll," Chairman don't know," replied Mr Stair. "Possibly only nontestified that had no knowledge of the indebtthe First Co., affiliate the Detroit Bankers this debt had been incurred before became director. He said he the of filed Michigan Securities Com-
Letter Quoted
Pecora copy letNewberry Dodge, good plan include the report First National the annual statement. Stair he did not know what Mr. Newberry had in or mind. Judge Murfin obviously belbrief examination before adjournPecora challenged Murfin on the progress the double liability provisions the Federal much interested in that I'm am going it," Judge Murfin going "And when will deprive depositors efits might accrue to them," shot "When for stockholders will be for per cent the depositors," Judge Murfin replied. Enlarging upon this answer after Murfin said the and their per all deposits the bank. Both Sorry
Judge Murfin had requested that his today could return to Detroit, but taken the debate Pecora, the Committee counsel turned witness have to ask you to return tomorrow. sorry," Murfin said. sorry, Pecora said "because told me you wanted hope that both of won't after Murfin only you have to return Pecora retorted.
23.August 16, 1934The Indiana GazetteIndiana, PA
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BANK RECEIVER
C. Thomas, the first receiver closed Clymer later first receiver of the Pittsburgh, and more recently. ceiver of the First National Detroit, has to become vice president First Wisconsin Bank of waukee,
24.August 31, 1934The Unionville CrescentUnionville, MI
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naba attorney, recently observed the fiftieth anniversary of his admission to the bar.
Sturgis-Leonard Green. 15-year-old son of William Green of Niles, was killed by lightning while fishing from a rowboat in the St. Joseph River. Ann Arbor-The summer session of the University of Michigan has closed with an enrollmes of 3,727. a gain of 310 over the enrollment of last summer.
Monroe-Eighty-five leases for oil and gas covering farm lands in Sum merfield. Whitford and Dundee Town ships, were filed here recently with FT Reimer. Monroe County, register of deeds
Grand Rapids-Mrs. Ida Coughan owr. of Brazil, Ind. here for the September convention of the Tin Can Tourists Association. is dead from heart attack at th Tin Can Tourists camping grounds near Soldier's Home Lansing-In spite of the usual sum mer slump. employment in the auto mobile industry in July showed an increase of 43 per cent over totals for July, 1933, according to announce ment by the Department of Labor and Industry
Niles-A permanent injunction re straining the Michigan Gas & Electric Co. from charging a rate in Niles in excess of the figure set in its 1913 franchise has been granted by Judge Charles B. Collingwood, of Lansing in suit by the city Detroit-James Gleco. of Sarasota menagerie man with Ringling Brothers and Barnum & Bailey circus which recently played Detroit, is dead here, the sixth of the group of 47 circus employees and performers re ceiving treatment for typhoid to suc cumb.
Owosso-The City Commission has ordered that the proposal to bond for $130,000 for the construction of sewage disposal plant be submitted to the voters for the second time at the primary election in September It was voted down recently at special election.
Detroit-Action of friends and alumni of Hillsdale College has provided funds with which the college may pay off an $11,000 debt to the First National Bank-Detroit and thus avert a levy on campus property granted to the bank receivers by the Federal Court
25.February 3, 1935Evening StarWashington, DC
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Debt Cited in Affidavit. In the affidavit, Bard had declared "Elizabeth Dee O'Brien is indebted to the First National Bank, Detroit, on various and numerous mortgages and notes exceeding the sum of $27,000, all of which are past due and unpaid; that the receiver on numerous occasions has attempted to enforce collection of these obligations from the said Elizabeth Dee O'Brien and has been informed by Ernest A. O'Brien, acting on behalf of his wife, that she is unable to liquidate these obligations." The affidavit further said that when a receiver for the banks was appointed "a joint collateral note in the amount of $3,045.50 in the name of Ernest A. O'Brien and Elizabeth Dee O'Brien was among the assets of the First National Bank, Detroit; that this note was secured by $11,000 worth of various securities." Opinion Allegedly Expressed. In concluding his affidavit Bard said that he had "been informed and verily believed that District Judge O'Brien manifested an unusual interest in the banking investigation in Michigan conducted by the United States Government," and that the judge had "expressed an opinion regarding the above-entitled case on several occasions." Summing up, Bard said he believed O'Brien "is undoubtedly personally biased and prejudiced against the Government and biased and prejudiced in favor of the defendants and is, therefore, not a suitable judge to try this case fairly and impartially and that he should be disqualified and another judge designated to try the said case." In a copy of his opinion, made public yesterday by the department, Judge O'Brien said that the affidavit had not complied with the judicial code and explained: Reasons for Decision. "I am satisfied and so find that the affidavit, neither in substance nor form, complies with the requirements of section 21 of the judicial code; that it is not an affidavit of a party to the proceedings as required by that section, is not accompanied by a certificate of counsel of record as required, it appearing from the records of this court that the certifying counsel has not been admitted to practice in this court, that it is legally insufficient to establish the claimed bias and prejudice, that it fails to identify the names of informants of affiant as to the opinions claimed to * or the have been expressed * time and place of such expression, that no proper application for deter-
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
