1258. Capitol Hill State Bank (Denver, CO)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
state
Start Date
December 17, 1925
Location
Denver, Colorado (39.739, -104.985)

Metadata

Model
gpt-5-mini
Short Digest
13cef2f4

Response Measures

Full suspension, Books examined

Other: Placed in hands of state examiners and, in at least one report, receivers; frozen livestock loans cited as underlying impairment.

Description

Contemporary reports state a run occurred on the Capitol Hill State Bank (rumors/withdrawals) and the bank was put in the hands of state examiners/receivers on Dec. 18, 1925. Some dispatches express hope of reopening, while others note it was placed with receivers — outcome is ambiguous in these articles, so I classify as run_suspension_unsure. OCR errors corrected (e.g., 'Capitoi' -> 'Capitol').

Events (2)
1. December 17, 1925 Run
Cause
Rumor Or Misinformation
Cause Details
Large withdrawals fueled by circulating rumors and general nervousness about Denver banks (reports repeatedly mention 'rumors were afloat' and crowds waiting to withdraw).
Measures
Depositors surged; bank officers and police controlled crowds; bank was turned over to state examiners/receivers following run.
Newspaper Excerpt
Steady withdrawals ... and a run on the Capitol Hill yesterday was instrumental in the closing
Source
newspapers
2. December 18, 1925 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank was taken into custody by state examiners/receivers after heavy withdrawals and reported 'frozen assets' in the local banking crisis; examiners/receivers placed in charge.
Newspaper Excerpt
The Capitol Hill State Bank was put in the hands of state examiners shortly after opening this morning
Source
newspapers

Newspaper Articles (11)
1. December 18, 1925 Alameda Times Star Alameda, CA
Article from Alameda Times Star, December 18, 1925

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Article Text

FACE CRITICAL Five Institutions Closed and Depositors Besiege Other Financial Concerns United Press DENVER Dec. banks closed their doors in Denver days. Metropolitan State Bank today failed open its doors. Yesterday the Drovers' National, Broadway National and the North Denver State Bank all were placed the hands of federal and state examiners. James E. Adams. president of the Bank, said day that the bank had been turnto state examiners at his request. Metropolitan several weeks ago, to Adams, had posits of and since that they have been reduced to about view of the bad banking situation here and to protect interests our depositors, he said, deemed advisable turn the bank over to state offiheavy run developed this morning when the Central SavBank and Trust Company opened doors. was estimated that 500 persons waiting in the street in front of the bank Police were in charge of the crowd and only few were let into the bank at time. Rumors were afloat all over town and serious situation was developing with withdrawals creasing many banks. The Capitoi Hill State Bank put in the hands of state examiners shortly after opening this morning when crowd found waiting withdraw their accounts. This banks with closed doors. The Capitol Hill State Bank small suburWhen the 500 persons milling about front the Central Savings Bank and Trust Company this morning. Bishop Frank Rice of the Liberal Church made his way the teller's window and deposited $100 church. Proceeding to the street. Bishop Rice made speech telling the crowd to be calm and that there need of fear. Fifty people with the bishop. People's Bank here failto open its doors today The closing of the Bank of Iowa, few days ago, believed to have heavy withdrawals from local bank. Deposits totalled

2. December 18, 1925 Evening Star Washington, DC
Article from Evening Star, December 18, 1925

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Article Text

TWO MORE BANKS CLOSED IN DENVER Five Forced to Suspend in Two Days Due to "Frozen Assets." By the Associated Press. DENVER, Colo., December 18.Two additional Denver banks-the Capitol Hill State Bank and the Metropolitan State Bank-failed to open today. Grant McFerson, State bank commissioner, announced that examiners had taken charge of the Metropolitan and Capitol Hill Banks. Both are small institutions. Steady withdrawals from the Metropolitan during the week and a run on the Capitol Hill yesterday was instrumental in the closing, officials said. Three others-the Drovers' National Bank, the Broadway National Bank and the North Denver Bank, the latter a State institution-closed their doors yesterday. The deposits of the three banks aggregated approximately $4,400,000-the Broadway with $3,088,683, the Drovers' National, $1,100,100 and the North Denver Bank, $258,000 Blame Frozen Assets. Frozen assets in live stock loans and an impairment of capital were the reasons indicated by national bank examiners for the closing of the two national banks, while State bank examiners, who took charge of the North Denver Bank, would not make public any reason for its closing. Gordon F. Hollis is president of the two closed national banks while Mrs. Marguerite Hollis, his wife, was named president of the North Denver Bank last year, succeeding her husband, who previously had been the institution's head. Declines Any Statement. L. K. Roberts, chief national bank examiner for the tenth Federal reserve district, took the two national banks under charge and Grant R. McFerson, State bank commissioner, was in charge of the North Denver institution last night. Hopes of an early reopening of the two national banks were asserted by Mr. Hollis in a statement last night. He said that the depression in the live stock industry caused the main depreciation of the national banks' assets. Mr. Roberts declared that he was "not in a position to say what things had happened at the banks."

3. December 18, 1925 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, December 18, 1925

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Article Text

FROZEN CREDITS CLOSE 5 BANKS Denver Nervous After Series of Failures. Bu United Press DENVER. Colo., Dec. 18.--With five local banks closed and in the hands of bank examiners, all Denver nervously awaited the next move in financial circles today. The Capitol Hill State Bank was put in the hands of receivers this morning after the Metropolitan State Bank failed to open its doors. Yesterday the Drovers National, the Broadwey National and the North Denver State Bank were placed in the hands of Federal and State examiners. Frozen credits and the depression in the livestock industry were jointly blamed for the failure of the institutions whose deposits total several million dollars.

4. December 18, 1925 New Britain Herald New Britain, CT
Article from New Britain Herald, December 18, 1925

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Article Text

TWO MORE BANKS CLOSE Epidemic of Financial Disaster In Denver - Four Institutions Now Have Closed Doors. Denver. Colo., Dec. 18 (AP) -Two additional Denver banks-the Capitol Hill State bank and the Metropolitan State bank-failed to open today. Two National banks and one state bank were closed yesterday. Grant McFerson, state bank commissioner announced that examiners had taken charge of the Metropolitan and Capitol Hill banks. Both are small institutions. Steady withdrawals from the Metropolitan during the week and a run on the Capitol Hill yesterday were instrumental in the closing, officials said. The banks closed yesterday were the Broadway National, the Drovers National and the North Denver bank, the latter a state institution. These banks had deposits of about $3,500,000. The Broadway National was the largest with deposits of about $2,500,000. Impairment of capital and frozen paper in livestock loans were ascribed as the reason for the closing of the two National banks. Gordon Hollis was president of the two National banks and his wife, Mrs. M. E. Hollis, was president of the North River bank.

5. December 18, 1925 Visalia Daily Times Visalia, CA
Article from Visalia Daily Times, December 18, 1925

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Article Text

CHRISTMAS BUSINESS A STANDSTILL Police Called to Preserve Order When Run Is Started on Bank (United Press Leased Wire) Dec. local bankers and financiers were today to devise some means to bring an end to the sitnation here that has caused the closing of five banks within two days. hundreds of depositors exchanged rumors and discussed their Christmas outlook with their money tied up the closed institutions. The series of bank closings startyesterday when the Drovers National bank, the Broadway National bank and the North Denver State bank closed their doors. Today the Metropolitan State and the Capitol Hill State banks failed open. The Central Savings bank and Trust company took advantage of law making give sixty days' notice before their The total amount of deposits tied in the five banks which have closed approximates The greatest prevailed here today that has been seen for years. Business height the shopping season felt sharply the financial condition. Many persons could not get their money refused to spend. In front of the Central Savings Trust company, where 500 pergathered. there was much excitement and police were called to believed that the small banks in the city will before the day closes take advantage of the sixty day law. According to the officials of all but two national banks that closed yesterday, there is no cause for alarm as the banks were placed the hands of examiners to prodepositors. So many rumors were afloat throughout the morning that was impossible to check half of them. Employes in and laborers (Continued on Page Three)

6. December 18, 1925 The Hanford Sentinel Hanford, CA
Article from The Hanford Sentinel, December 18, 1925

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Article Text

FIVE BANKS UNDER CLOSING OF TWO BANKS TO RUN ON OTHERS WHICH RE. SULTS IN STATE AND AL EXAMINERS TAKING CON- TROL. Denver. Dec. Press) Five banks have closed their doors in Denver within two days. The Metropolitan State Bank today failed to open its doors. Yes. terday the Drovers National, Broadway National and the North Denver State Bank all were placed in the hands of federal and state examinors. James E. Adams, president of the Metropolitan bank. said today that the bank had been turned over the state examiners at his request. The Metropolitan several weeks ago according to Adams, had deposits of $400,000 and since that time they have been reduced to about $100,000. "In view of the banking situation here and to protect the interests fo our depositors. he said, deemed it advisable to turn the bank over to state officials.' A heavy run developed this morning when the Central Savings Bank and Trust company opened its doors. was estimated that 500 persons were waiting in the street in front of the bank. Police were in charge of the crowd and only few were let into the bank at time. Rumors afloat all over town and serious situation ing with withdrawals increasing at many banks The Capitol Hill State Bank was put in the hands of state examiners shortly after opening this morning when crowd waiting to withdraw their accounts. This makes five banks with closed doors. The Capitol Hill State Bank is small suburban bank.

7. December 18, 1925 The Whittier News Whittier, CA
Article from The Whittier News, December 18, 1925

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FIVE DENVER BANKS ARE FORCED TO CLOSE Serious Situation Is Developing as Runs Are Started DENVER, Colo., Dec. 18. (United Press)-Four banks have closed their doors in Denver within two days. The Metropolitan State Bank today failed to open its doors. ter the Drovers' National, Broadway National and the North Denver State bank were placed in the hands of Federal and State examiners. James R. Adams, president of the Metropolitan bank, said today that the bank had been turned over to State Examiners at his request. The Metropolitan several weeks ago, according to Adams, had deposits of $400,000 and since that time they have been reduced to about In view of the bad banking situation here and to protect the interests our depositors,' he said. "We deemed advisable to turn the bank over to State officials. A heavy run developed this morning when the Central Savings Bank and Trust Company opened its doors. It was estimated that 500 persons were waiting in the street in front of the bank. Police were in charge of the crowd and only a few were let into the bank at time. Rumors were afloat all over town and serious situation was developing with withdrawals increasing at many banks. The Capitol Hill State bank was put in the hands of state examiners shortly after opening this morning when crowd was found waiting to withdraw their accounts. This makes five banks with closed doors. The Capitol Hill State bank is a small suburban bank. By United Press Leased Wire. DENVER, Colo., Dec. 18.-With (Continued on Page Two)

8. December 18, 1925 Daily American Republic Poplar Bluff, MO
Article from Daily American Republic, December 18, 1925

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FIVE DENVER BANKS CLOSED Ey United Press DENVER. Colo., Dec. five local banks closed and in the hands of bank examiners. all Denver nervously awaited the next move in firencial circles today. The Capitol Hill State Bank was put into the kinds of receivers this afternoon after the Metropolitan State Bank failed to open its doors. Yesterday. the Drovers' National. The Broadway National and the North Denver State Banks were placed in the hands of federal and state examiners. Frozen credits and the depression in the live stock industry were jointly blamed for the closing of the Institutions whose deposits total seven millions of dollars. While the belief was expressed by officials that the banks would open for business as soon as their affairs were straightened out, the depositors about notices of closing and speculated on their chances. Police were in charge of a crowd estimated at more than 500 persons who started on the Central Savings Bank today. Only few depesitors were admitted at'a time. With Christmas shopping at its peak, depositors found themselves unable to do much buying and recalling two previous bank failures in the past two years. By United Press DENVER. Colo., Dec. 18.-With Christmas shopping at its height, *hree Denver banks today were in the hands of bank examiners. The National Bank and the Broadway National Bank were closed at noon yesterday when it was found they could not meet their liabilities. The North Denver State Bank was closed last night at the request of the officers of the institution after a heavy run during the afternoon. Although no statement has been issued by Gordon Hollis, president of the two closed National banks, he replied affirmatively to questions that frozen paper cattle loans were the cause of their closing. It was announced today that all business done during the forenoon yesterday was kept separate and that deposits made will be returned in full

9. December 19, 1925 The McCook Daily Gazette McCook, NE
Article from The McCook Daily Gazette, December 19, 1925

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BANK PANIC DENVER SUBSIDES Populace Quiets Down While Bankers Say Will Within Few Days Denver, Dec. officials of five banks that closed in Denver Thursday and Friday were making efforts to reopen their closed institutions, excitement that prevailed here yesterday had moderated today. Gordon Hollis, president of ers National bank, and the Broadway National bank, the first two to close their doors, said work was der way to reopen the Broadway bank. Officials of the Metropolitan and Capitol Hill State banks placed their affairs in the hands of examiners yesterday and said they believed both would reopen in short time. No statement was forthcoming from the North Denver State bank, but was said to have been solvwhen Roberts, chief national bank examiner, remained in charge of the two banks, and will make statement within few days as to their condition.

10. December 20, 1925 Star Tribune Minneapolis, MN
Article from Star Tribune, December 20, 1925

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Two Additional Banks Close Doors in Denver Denver, Dec. 19. (By Associated Press.) small state failing to their dors yesterday, left Den pen ver with five closed banks. The banks, with total deposits of ap proximately $4,250,000. are the Broadway National bank, the Drovers' tional bank and the North Denver bank, which closed yesterday, and the Capitol Hill State bank and the Metropolitan State bank, which did not open today.

11. December 20, 1925 The Daily Worker New York, Chicago, NY
Article from The Daily Worker, December 20, 1925

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FIVE BANKS CLOSE IN DENVER WITHIN TWENTY-FOUR HOURS DENVER, Colo., Dec: 18.-The Metropolitan State Bank and the Capitol Hill State Bank closed their doors here today, bringing the number of banks to close up within 24 hours to five. The North Denver State Bank closed after examiners had taken charge of the Broadway National & Drovers' National Banks. Total deposits of $4,000,000 are involved. "Frozen" assets are given as the reasons for the closing of the banks. Depositors fearing loss of their savings have started runs on the other banks in the city.