Accommodated withdrawals, Public signal of financial health, Full suspension
Receivership Details
Depositor recovery rate
72.7%
Date receivership started
1931-07-09
Date receivership terminated
1937-08-24
Share of assets assessed as good
35.8%
Share of assets assessed as doubtful
62.8%
Share of assets assessed as worthless
1.3%
Description
Multiple contemporary articles (Feb 26, 1931) report a freak run in which ~200 depositors withdrew funds after misinterpreting a foreclosure notice displayed near the bank. Reports characterize the withdrawals as a panic caused by a mistaken reading of the notice and state the bank was sound. No article in this set clearly states the bank suspended or closed; a later garbled Aug 1931 item mentions a closed National Bank but is ambiguous and likely refers to a different institution or a separate event and does not contradict that the Feb run did not cause suspension. Classified as run_only. OCR errors in articles corrected (e.g., wou'd -> would, seramble -> scramble).
Events (3)
1.May 1, 1884Chartered
Source
historical_nic
2.February 26, 1931Run
Cause
Rumor Or Misinformation
Cause Details
Depositors misinterpreted a foreclosure announcement displayed on a lot near the bank as meaning the bank would close; the misinterpretation spread among depositors.
Random Run
Yes
Random Run Snippet
Depositors mistook foreclosure notice for bank closing; false rumor
Measures
Bank officials publicly characterized the withdrawals as a freak run and assured the public the bank was sound.
Newspaper Excerpt
Nearly 200 depositors, mistaking a foreclosure announcement for a statement that the First National Bank of Mechanicville would close, withdrew their savings in wild scramble yesterday.
Source
newspapers
3.July 9, 1931Receivership
Source
historical_nic
Newspaper Articles (6)
1.February 26, 1931The Washington Daily NewsWashington, DC
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Article Text
(Turn to Page 2)
SIGN IN FIELD IS THE CAUSE OF FREAK RUN ON BANK
By United Press MECHANICVILLE, N. Y.-Nearly 200 depositors, mistaking a foreclosure announcement for a statement that the First National Bank of Mechanicville wou'd close, withdrew their savings in wild seramble yesterday. The announcement, displayed on a lot near the bank, said that the bank was foreclosing on the property of Gilbert de Luccia. Apparently a depositor misinterpreted it and spread the news to others, bank officials said.
2.February 26, 1931Press and Sun-BulletinBinghamton, NY
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Article Text
Misinterpreted Notice Starts "Freak" Run on Bank in Mechanicville
Mechanicville, Feb. (United 200 depositors, mis taking foreclosure for statement that the First tional Bank of withdrew their savings in scramble yesterday displayed on lot the said that the on the property Gilbert positor and spread news to others, bank officials Robert Moore, characterized withdrawal He said the bank is in condition
3.February 26, 1931The Daily TimesMamaroneck, NY
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Article Text
False Rumor Causes Run On Mechanicville Bank
200 mistaking foreclosure ment that the First National Bank would close, withdrew their savings wild yesterday The displayed lot near the bank. said that the bank the property Gilbert De Luccia Apparently depositor misinterpreted and spread the news to bank ficials Robert cashier, terized the withdrawal as He said the bank is sound dition.
4.February 26, 1931The Buffalo NewsBuffalo, NY
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Article Text
RUN ON MECHANICSVILLE BANK IS CALLED "FREAK"
MECHANICSVILLE N Y., Feb. 26 200 mistaking for statement that the First National Bank Mechanicsville withdrew their in wild scramble yesterday The announcement. on near the bank. said that the bank on the propof Gilbert De Luccia. Apparently it spread the to others, bank officials Robert C. Moore cashier. characterized the withdrawal as "freak. He said the bank in sound dition.
5.February 27, 1931The Buffalo NewsBuffalo, NY
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Article Text
RUN ON MECHANICSVILLE BANK IS CALLED "FREAK"
MECHANICSVILLE N. Y., Feb. 26 200 mistaking announcement for statement that the First National Bank Mechanicsville would close. withdrew their savings in scramble yesterday The announcement displayed on a lot near the bank. said that the bank was the property of Gilbert De Luccia Apparently and spread the news to others, bank officials said Robert Moore cashier, characterized the withdrawal as "freak He said the bank is in sound condition.
RUN ON BANK IN MECHANICVILLE
Second Demand by Depositors Keeps Hot Foot the in front The up 12 custom Most interest withdres from a as as and $6000 frequent violated own in The money night from the thought the of the them that and The when The earlier began morning and lasted 45 in the hour Bank to reveal persons had how had been withdrawn believed to have been The by persons recognized A M started Douglas federal rived the bank Friday periodic of the books Douglas face become residents of with the ing of the National Bank on June
That institution remains closed and its affairs of Ref Pardon C Rickey from depositors of deposit the First National Bank with figures on the There that bank may be and ready to reopen within three
