1308. Metropolitan State Bank (Denver, CO)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
December 18, 1925
Location
Denver, Colorado (39.739, -104.985)

Metadata

Model
gpt-5-mini
Short Digest
99fd0e2c

Response Measures

Full suspension, Books examined

Other: Multiple articles note frozen cattle loans and livestock price declines as underlying cause affecting several Denver banks.

Description

Multiple articles report steady withdrawals and a run during the week culminating in the Metropolitan State Bank 'failing to open its doors' and being turned over to state examiners at the request of its president. Officials and newspapers state the institution was considered solvent and officers expected to reopen once securities could be converted to cash.

Events (2)

1. December 18, 1925 Run
Cause
Local Shock
Cause Details
Steady withdrawals culminating in a run; newspapers also blame frozen cattle paper and shrinkage in cattle values affecting local banks' assets.
Measures
Depositors withdrew funds; bank officers requested examiners and limited operations (failed to open).
Newspaper Excerpt
Steady withdrawals from the Metropolitan during the week, and a run on the Capitol Hill yesterday, were factors in the closing, officials said.
Source
newspapers
2. December 18, 1925 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Impairment of capital and frozen paper on livestock loans (depressed cattle values) reduced liquidity; combined with heavy withdrawals led officers to turn bank over to state examiners.
Newspaper Excerpt
The Metropolitan State bank today failed to open its doors...examiners had taken charge of the Metropolitan and Capitol Hill banks.
Source
newspapers

Newspaper Articles (10)

Article from The Washington Daily News, December 18, 1925

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Article Text

Four Denver Banks Close in Two Days; Crowds Panicky Depositors Start Run on Fifth Bank, But it Continues to Pay Off; No Fraud Found By United Press DENVER-Another bank - the fourth in two days-closed here today when the Metropolitan Bank failed to open its doors. Yesterday the Drovers National, Broadway National and the North Denver State Banks were placed in the hands of federal and state examiners. Deposits Dwindle James E. Adams, president of the Metropolitan Bank, said his institution had been turned over to the examiners at his request. The Metropolitan several weeks ago had deposits of $400,000, and since then they have dwindled to about $100,000 Adams said. "In view of the bad banking situation here, and to protect the interests of our depositors, we thought It advisable to turn the bank over to state officials," he said. Crowds Panicky When the three banks closed yesterday, word spread rapidly thru the shopping district and throngs waited for hours in front of the banks, but no word came from examiners. Scores of panicky depositors started a run on the Central Savings & Trust Co., but this bank continued to pay off until closing time, when it was announced the institution was sound. No evidence of fraud has been found. A sudden shrinkage in cattle values is blamed.


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


Article from The Daily Report, December 18, 1925

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Article Text

3RD DENVER BANK Rough Dip ORDERED CLOSED Bishop's 1-1b. Box Christmas Special Frozen Cattle Paper is Cause for 2 Closings Says Bank President DENVER, Colo.-Four banks have closed their doors in Denver within two days. The Metropolitan State bank today failed to open its doors. Yesterday the Drovers National, Broadway National and the North Denver State bank all were placed in the hands of federal and state examiners. DENVED. Colo. With Christmas shopping at its height, three Dates-Bulk Denver banks were today in the 2 pounds 25c hands of bank examiners. The Drovers National bank and Plums-Preserves the Broadway National bank were closed at noon yesterday when It was found they could not meet their liabilities. The North Denver State bank Nutola was, closed last night at the request of the officers of the instiFirst Grade Oleo tution after a heavy run during the afternoon. Made by Armour & Co. Although no statement has been SPECIAL SATURDAY issued by Gordon Hollis, president of two of the closed banks, he replied affirmatively to questions 25c that frozen paper on cattle loans was a cause of his two banks closing.


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.


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.


Article from The Bismarck Tribune, December 18, 1925

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Article Text

McFerson announced that his department's 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 factors in the>closing, officials said. The banks closed yesterday were the Broadway National, the Drover's National, and the North Denver bank, the latter a state institution. These three banks had deposits of approximately $3,500,000. The Broadway National was the largest, with deposits totaling about $2,500,000. - Impairment of capital and frozen paper in livestock loans were ascribed as the reasons for the closing of the two national banks.


Article from Petaluma Argus-Courier, December 18, 1925

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Article Text

FOUR DENVER BANKS CLOSE THEIR DOORS Frozen Paper On Cattle Given As Cause; Bank Examiners Have Been Investigating For Several Days. Recent Depositors Protected. (By United Press) DENVER, Colo., Dec. 18.With Christmas shopping at its height three Denver banks were today in the hands of bank examiners. The Drovers' 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 both the closed banks, he replied affirmatively to questions that frozen paper on cattle loans was the cause of the two banks 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. It was learned that L. K. Roberts, chief national bank examiner of this district, had been here for a week making an inspection of all Denver banks. J. V. Cockins, elected president of the Central Savings Bank & Trust Co. with the resignation of Hollis yesterday morning, issued a statement that this bank was not affected by the resignation of its president and that it had 40 per cent of its assets available to pay depositors. DENVER, Colo., Dec. 18.The fourth bank to close here within two days closed this morning when the Metropolitan State bank failed to open its doors. Yesterday the Drovers' National, the Broadway National and the North Denver state bank closed.


Article from Visalia Daily Times, December 18, 1925

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


Article from The Kentucky Post, December 18, 1925

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FIVE BANKS IN DENVER CLOSE Frozen Paper on Cattle Loans Is Blamed By United Press. DENVER, COL., Dec. 18.-With five local banks closed and in the hands of bank examiners, all Denver nervously next move financial circles today The Capital Hill State Bank was put in the hands of receivers today the Metropolitan State Bank failed to open its doors. Yesterday the Drovers National the Broadway National and North Denver State Banks were taken over by federal and state ex James E. Adams, president of Metropolitan, the bank had been turned over to state examiners his request. The Metropolitan several weeks ago had deposits $400,000, Adams Since that time they have dwindled to "In view of the bad banking situ ation here and to protect our depositors," he said, "we deemed it ad state visable turn the bank over to Drovens National Bank and the Broadway National Bank closed at noon They could not meet last North night Denver State Bank closed heavy Cockins, elected president run, of Central Savings Bank Trust Co., with resignation of Gordon HoMis, president issued of the two national banks, that his bank was not affected by Hollis' resignation.


Article from Star-Herald, December 19, 1925

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MORE BANKS CLOSE DOORS YESTERDAY Sixth Bank Remains Open Because of Quick Wit of Preacher. Denver, Dec. 18. would have been the sixth bank failure in days in Denver, was averted dramatic fashion Friday by Bishop Frank Rice of the Liberal Church, Inc., who forced his way through an excited mob of depositors clamoring the door of the Central Savings bank, made deposit $100 his account, and therehalted run on the institution. have faith. have placed my money in the hands of these men. would be foolish thing to make on this institution: would bring ruin yourselves. beg of you to have No sermon ever had more telling effect and he walked away with the crowd following him. The bank will reopen in days, having taken advantage of the depositors to notice fore withdrawing their funds. In the banks closed Thursday, two more were closed Friday the request of their officers, the Capital State bank and the Metropolitan State bank. both known neighborhood banks and operating in the residence districts. Both declare dthemiselves to be solvent and strong and expect to reopen scon enough securities can be turned into cash to withstand run develops. small run the Metropolitan bank Friday morning, hastening the decision of the officers take precautionary measures. Both institution's will be able to liquidate and depositors will be paid full, according to The total deposits in the five banks now closed amount to nearly five million dollars.