13899. Seacoast Trust Company (Asbury Park, NJ)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
trust company
Start Date
January 1, 1932*
Location
Asbury Park, New Jersey (40.220, -74.012)

Metadata

Model
gpt-5-mini
Short Digest
b150c3fc

Response Measures

Full suspension

Other: Depositor-led reopening campaign in 1933; State Banking Commissioner involved in approval

Description

Contemporary articles (Jan 1932) report heavy withdrawals and say Seacoast Trust Company was the first to close; Oct 1932 pieces discuss a silent run that depleted cash; late 1933 articles describe an organized reopening plan and appeals to depositors to sign. Sequence: run → suspension in Jan 1932 → reopening campaign and resumption effort in 1933.

Events (4)
1. January 1, 1932* Run
Cause
Rumor Or Misinformation
Cause Details
Articles attribute heavy withdrawals and general unrest after initial failure(s) in the county; some pieces refer to a silent run and seepage that depleted cash — panic/rumor-driven withdrawals.
Measures
Directors and community leaders attempted to stem withdrawals; later new directors were drafted to handle affairs (Oct 1932).
Newspaper Excerpt
All excitement has entirely subsided. Many deposits were made to express confidence in the institution... The Seacoast Trust Company of Asbury Park was the first to close on Tuesday afternoon last week.
Source
newspapers
2. January 1, 1932* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed after heavy withdrawals/run depleted cash and management chose to suspend to conserve assets; articles mention inability to realize on loans and general unrest as contributing factors (depression-related).
Newspaper Excerpt
The Seacoast Trust Company of Asbury Park was the first to close on Tuesday afternoon last week.
Source
newspapers
3. October 20, 1932 Other
Newspaper Excerpt
Silent Run ... steady seepage depleted the bank's cash point where business could [no] longer be transacted and banking department no alternative but the joined the board of directors effort the Seacoast bank (discussion of director actions and political controversy).
Source
newspapers
4. December 5, 1933 Reopening
Newspaper Excerpt
Endorsement of the plan of ... for the reopening the Trust company ... The endorsement ... 'heartily said plan and approve the efforts of those its adoption.' and Dec 5 & Dec 9 1933 editorials urging depositors to sign for reopening plan and promising dividends if they 'open the bank'.
Source
newspapers

Newspaper Articles (7)
1. January 1, 1932 The Keyport Weekly Keyport, NJ
Article from The Keyport Weekly, January 1, 1932

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STATE WOULD COMPEL PLANT (Continued from first page) Irom which a revenue could be derived and that the return would barely pay the interest on the cost of making the extension. He said that would be necessary to celve at least 10 per cent return on the principal invested. We are quite willing. said Mayor Wyckoff, "to water at a profit and if you can show us a guarantee that will warrant making the extension the proposition will be considered. It was suggested that the Matawan Township Committee submit to the Borough Council a statement of what would Councilman Smith chairman of the Water Committee, in reporting on the feasibility of rebuilding and extending water mains on a portion of Fulton and Eighth Streets sug. gested that the Council as whole look over the situation and It was decided that this would be done Councilman Van Pelt reported progress on the matter of introducing ordinances providing for merchantile licenses and prohibiting the distribution of circulars The introduction of such ordinances had been requested by the Keyport Chamber of Commerce Mayor Wye. koff suggested that the Council have a conference with the Cham ber of Commerce on the matter and that the merchants of Keyport be invited to attend a meeting of the Council and express their individual opinions of the needs of such ordinances The matter of a compromise of tax liens on the George Crawford property was presented by Borough Attorney Howard W. Roberts The property was bid in at tax sale by Attorney Ezra W. Karkus for the benefit of the heirs to the estate Allen Poling represented the heirs at the meeting Monday night. The matter was referred to a committee consisting of Councilmen Camp. Smith and Van Pelt The financial statement of Collector Charles R. Davison showed that there was a balance of $8,896.71 in the general fund. $437.03 in the water account and $834.14 in the capital and trust account Bills to the aggregate sum of $7.977 45 were approved for payment. By resolution, an emergency appropriation of $284.20 was made for the care of the poor A water anticipation note for $1,300 was authorized. This note, given for three months. is payable at the Peoples National Bank An unexpended balance of the street appropriation of $843.62 the sum of $446.02 was transferred to the police appropriation and $397.60 to the sewer appropriation. accounts All excitement has entirely subsided. Many deposits were made to express confidence in the institution and a cial confidence was manifest in large private deposit made the first the Hon, Henry E. Ackerson, president of The Peoples National Bank when interviewed said, "We are deeply appreciative of the splendid confidence manifested at this time by the people of the community in the integrity and stability of the Borough's financial institutions The Matawan Bank is the eighth Lanking institution to close Monmouth County in less than week. The Seacoast Trust Company of Asbury Park was the first to close on Tuesday afternoon last week. The following day the Merchants Trust Company of Red Bank the New Jersey Trust Company and the Citizens National Bank both of Long Branch, were closed The fifth bank to suspend business was the Asbury Park and Ocean Grove Bank of Asbury Park and the following notice signed by George Compton a bank examiner was posted on the The of Banking and Insurance has taken of the business and property of the Asbury Park and Ocean Grove Bank The bank is state institution and is the largest in Monmouth County in the matter of resources which total more than $12,000,000 The combined resources of the other four banks according to the financial statements filed with the State Department of Banking and and Insurance on September 29 last amounted to $11,361,326 Bank depositors continuing their heavy withdrawals from Monmouth County banks forced two more of the institutions in the Asbury Park district to close immediately after the Asbury Park and Ocean Grove bank suspened business These were the First National Bank of Bradley Beach and the Ocean Grove National Bank The officers and directors of these banks said the institutions were sound. that the closings were necessary to conserve assets and that the banks would be reorganized at once and pay all demands in full They attributed the heavy withdrawals to the failure of the Seacoast Trust Company and the withdrawals from other banks that resulted. The general unrest was probably largely responsible for the closing of all the banks. along with the inability to realize on loans due to the depression and that business was suspended in the interest of depositors

2. January 1, 1932 Matawan Journal Matawan, NJ
Article from Matawan Journal, January 1, 1932

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RUMORS CAUSE OF BANK'S SUSPENSION (Continued from page one) phone calls from friends and strangers from all over the county expressing their confidence in his bank these times of stress and be was no small satisfaction to be able to look back upon the safe and conservative policy always followed with view of safeguarding the interests of the depositors happenings "The bank. established over 102 years ago, has for that long period been under the management of three generations of the same family and for over hundred years has had the same correspondto The First National Bank of New York; unquestionably the strongest bank in the world During the last 25 or 30 years its policy has been largely guided by James L. former president of The First National Bank of Red Bank, pronounced by the late George G. Baker. president of the First National Bank of New York. as the ablest financier in New Jersey, also by John Terhune, president of the Long Branch Trust unquestionably the strongest and most successful banking institution in the county and by its present president. The closing of The Matawan Bank caused small flurry at The Farmers and Merchants National Bank Saturday and Monday. largely by women, many of whom drew from their savings account and called for their safety deposit boxes This timidity did not take hold of the business men, of whom it was said the bank, every merchant from Bailey's store to the station made their customary Monday morning deposits There were not half the number demands that were expected, and for which large preparation had been made were registered. Instead of the anticipated many new accounts were opened by people throughout the county some of whom lived at considerable distance. Tuesday's payments were made in gold but there were few takers Keyport was not without some actions. but as in Matawan, these were not by the business men where was reported at both banks usual business deposits were made of very substantial nature. showing that the purchases must have had been largely made with the Keyport merchants No Keyport business man withdrew his account in either of their bankinstitutions Palmer Armstrong. president of the Keyport Banking Company. said the excitement in his bank was mainly among depositors who did not understand conditions and among some others who drew their savings accounts All excitement has entirely subsided. Many deposits were made to express confidence in the institution and sp # cial confidence was manifest in large private deposit made the first of the Hon Henry E. Ackerson. president of The Peoples National Bank. when interviewed We are deeply appreciative of the splendid confidence manifested at this time by the people of the community the integrity and stability of the Borough's financial institutions The Matawan Bank is the eighth banking institution to close Monmouth County in less than week. The Seacoast Trust Company of Asbury Park was the first close on Tuesday afternoon last week The following day the Merchants Trust Company of Red Bank, the New Jersey Trust Company and the Citizens National Bank both of Long were The fifth bank to suspend business was the Asbury Park and Ocean Grove Bank of Asbury Park and the following notice signed by George bank was posted on the bank Commissioner of Banking and Insurance has taken of the business and property of the Asbury Park and Ocean Grove Bank The bank is state institution and the largest in Monmouth County the matter of which total more than $12,000,000 The combined resources of the other four banks according to the financial statements filed with the Department of Banking and and Insurance September amounted to Bank depositors continuing their heavy withdrawals from Monmouth banks forced more institutions in the Asbury Park district to close immediately after the Asbury Park and Ocean Grove suspened These the First National Bank of Beach and the Ocean Grove Bank The officers and directors of these said the institutions were that the were necesassets and that and all demands full attributed with. the failure of the Trust Company and the from other banks that The general unrest was probably largely responsible for the closing banks with the

3. October 20, 1932 Asbury Park Press Asbury Park, NJ
Article from Asbury Park Press, October 20, 1932

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ATTACK (Continued from Page closed banks their the He went source The obtained grand jurors favored certain board rectors Asbury Ocean Grove and the deposits time closed month print the letter. which full recent vicious attack upon me cannot be permitted to pass by noticed "On Monday evening Oct 10. Republican meeting Branch called attention those that you the program the Republican particularly regard banking this state for the depositors. that my opinon the Park had unfair the given political that also that my the the legislative and those people Monmouth much greatextent Asbury Park your official with dent from the date and which the was first in county. doors Take Megill "On you took the liberty denying the accusations which laid against publish your paper malicious and editorial personally you this been very policies the United States you cising and but mighty You attack my courage and indulging which would intelligence than probably flattered that chosen piece remarks that carried my the Mr deny the truthfulness the stateyou made informed your readers that merciful editors many occasions given publicity which have failed offer anything more than paragraph interest the admit that many editors very generous with space their papers: the interest public prefer leave that their judgment rather than yours Asbury Park Press that been recall vividly within the past few that least two first page and not due any of one the and the other the you paper carefully the recent which judgment justifies which Mr Kinmonth, you been space the first page your paper you had opportunity that space in detrimental few you possible give me any favorable publicity the first other page Kinmonth my talk facts accumulated over long period time Mr Kinmonth in speaking mouthpieces, really think undisclosed principal? whom? Do you answer that The remarks made were based facts. readily provable assure Mr not been prompted primed cocked anyone. very Mr. Kinfor that the sympathy your paper cratic trines, your editorial express the partisan suspected that the Mr his my inability digest ments not quite thank that lacked the courage and ability fight. Mr. Kinmonth wouldn't low you neither charge you with ability Let that pubdoubt are ligent enough to form their own Refers To Congressional Candidacy should taken seriously Did you make seriously did the people of Middlesex take Mr. few ago. Mr Stewart Appleby was elected. "These few questions would like Mr Kinmonth intellectual genius who wrote the editorial peared columns Oct which viclously that did not express intelligence sense fair did in your editorial Oct. answer the letter written Mr Raabe your the record the two presidential didates instead the ments these gentlemen? Raabe did dare conception the record challenged publish accomplishthat lenge. Are you afraid publish the of the presidential candidates that fair comparison can The public would like have that formation that they make their Please accomplishknow what the word many times your editorial comments How much stock of the Sea. Trust purchased value money, when you became president the Trust and how stock purchased for own you How did you deposit the when you became money deposit the Seacoast Trust company when What have you contributed. energy toward reopening the closed banks what tributed any manner whatsoever toward the unfortunate depositors these banks? Asks Facts About publish the condiaffairs Seacoast Trust which you complete detail you did the condition affairs the Asbury Park and Ocean Grove giving complete information activities of board direcSeacoast Trust comamount respecborrowings. the amount the closing of the bank? when? what from did the the grand jury the county the certain board directors Asbury Park and Ocean Grove what from whom. did you the amount deposit the credit board directors Asbury Ocean question please not hide behind the newspapers seldom informabecause answer this question marked effect upon justice in the county Monmouth "The people the county of Monmouth the depositors the Asbury Park and Ocean Groye bank the Seacoast Trust company are deeply interested having questions my campaign talks Asbury Park and elsewhere thruout the requested answer number these you have not seen and now you attack me apto lay smoke the that the fairs the Trust company like you publish truthful all of the questions falsehood the just words. Mr month. editorial Seacoast the Asbury Park Evening Press of Aug would you think the that vote the power your daily toward the side toward the building Asbury Park Monmouth county toward extolling virtues of Asbury Park Monmouth county people been generous where have come thru the graciousness generosity of your trust you are possessed of that essential attribute known charge you and will display that you, endowed that may published in the columns per. Yours very truly JOSEPH should be added to the board of directors the and the James Marformer Seacoast bank had severed their disagreement with its policies: Walter Clayton and Harvey Jones representing Asbury Ocean Lyle Kinmonth William Winans, representing Asbury Park National and Six incumbent rectors the Seacoast bank resigned the board for directors Arthur Steinbach former president the bank. transferred each six rectors shares the order might qualify board was and Lyle named the board directors Fought Against "Silent Run" "These directors about the the bank's and the took office until the closed doors December they worked dilligently the stitution realizing its closing would severe the financial fabric Monmouth county steady seepage silvent run depleted the bank's cash point where business could longer transacted and banking department no alternative but the joined the board of directors effort the Sea. bank did not receive one cent for did anticipate remuneration for their efforts volunteered their matter duty realizing the treimportance making every effort the bank Since the these men charge the affairs two Republican Democratadministered the New banking neither has offered word the manner which the directors managed the view of the that the had and. further the fact that had from their to the and they dollar for their labors for the good feel that the public entitled this statement order rumors and which being directthe management the closed affairs may Ridiculous." Says Quinn Mr to Mr. Frankel's Mr sought gain the leadership of the Democratic too the fact month turned the Asbury Park for the of Oct after the Friends Franklin Roosevelt for that night

4. October 20, 1932 Asbury Park Press Asbury Park, NJ
Article from Asbury Park Press, October 20, 1932

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DEFENDS OF SEACOAST (Continued from Page One indicated that they the charges the year Hetrick the effort division in the party Defends Board Mr. replyFrankel named Dr Harvey Walter William Kinmonth and himself the citizens drafted the Federal Reserve, other Asbury Park banks last August handle the affairs the Trust company effort the avert closing other financial stitutions Bamman his reply signed end the rumors and which are being directmanagement the closed bank's affairs' from August Decem- Mr. Bamman's statement follows misstatements circulated concerning the administraclosed Bank and company that the undersigned should public may just what part these men played effort year prevent the closing this Drafted Directors the latter August the affairs the Seacoast Bank and had reached company was held by the the Bank Trust deputy of banking tive Reserve system. the Asbury tional Bank and Trust and representatives the Asbury and Ocean Crove this decided public had brought about critical state the affairs the Bank and Trust company change of that stitution was gested and agreed that new names

5. October 28, 1933 Asbury Park Press Asbury Park, NJ
Article from Asbury Park Press, October 28, 1933

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Kiwanis Endorses Plan For Seacoast Endorsement of the plan of Banking William Kelly for the reopening the Trust company has been given the Kiwanis of The endorsement, signed by Dr. MacKenzie Arthur Carr, Isalah Matlack and Fetter. "The public of the Kiwanis investigation of the plan now profor the the Seacoast Trust heartily said plan and approve the efforts of those its adoption. that nothing but good for Asbury can result the to usefulness of this long institution that members the Kiwanis club, who can possibly do lend efforts the commitwhich has undertaken the task of securing deposits according to the reopening plan."

6. December 5, 1933 Asbury Park Press Asbury Park, NJ
Article from Asbury Park Press, December 5, 1933

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Dividends for Seacoast Depositors depend on the Depositors themselves. It is for them to say when Dividends shall be declared, what percentage shall be paid To Open the and how often. But only in the event THEY open the bank. Otherwise Depositors will have nothing to say SEACOAST about it. They will take what they get-and like it. TRUST CO. Dilatory Depositors, only delay Dividends. They not only "bite off their nose to spite their face" but they do harm to others. A great majority of the Seacoast Depositors, includof the Bank's ing practically all of those with larger accounts, want the bank open, in order that they may be saved the constant expense of liquidation by the State Banking DeDeposit partment. They want an operating bank, with opportunity to make profits, to do its own liquidating, quickly Liability or cautiously, as it chooses. They want the bank to be "in on the ground floor" when the Government starts of guaranteeing deposits, for they see in this new departure from established custom a boon to banking. A few want to await further developments in the reopening campaign before definitely aligning themMust selves with the reorganization group. Some have been advised not to sign, for various reasons-many of them Be Signed savoring of selfishness. Some have been told the powers of attorney are too broad in scope-give the comto the mittee too much power. Col. Kelly, State Banking Commissioner, will attend to that. He isn't delegating auReopening thority to anyone until he knows "what it's all about." Depend on it, he will know what's what before he will give his official approval to the reopening. Plan. A small minority opposes the reopening for reasons best known to themselves. Whether they are misguided or not, there is no quarrel with them. They are entitled to their opinion. But to them and to others who have not signed for the reopening, let it be said that there is absolutely no valid excuse for remaining outside the fold. Be fair with yourself. Ask yourself this question: "Why have I not signed?" And in giving yourself the Has Been answer, let your conscience be your guide. If you and your conscience can't agree, give the committee a break. Signed. Come down to the bank and argue it out with us in friendly fashion. Maybe your conscience is right. Who The knows? Perhaps you lack confidence because the bank failed you once. That's only human. But shouldn't the guaranteeing of deposits by the Government overcome such timidity? Your bank will be as good as your Government. Perhaps you fear the wrong men may get control. Only the Depositors themselves will be to blame if that happens. They will have full say as to who will run the bank-and how. They will be the absolute owners of the bank. They may select just the right officials. It's possible, except to a doubting Thomas. Perhaps you would like the bank's assets liquidatDec. 22, ed as quickly as possible, without regard to values, and take what you could get and call it quits. Some take that selfish attitude. To secure a meagre dividend now, they 1933, would wreck the future chances of those who are willing to wait for far greater returns. With such an attiIf You tude there is scant sympathy. Should not the motto "the greatest good for the greatest number" prevail? Perhaps you would want the assurance of "somebody higher up" that absolutely no assessment can be Your Part." made on the stock you would receive for your deposit. Commissioner Kelly himself gave that assurance in his recent radio talk on the Seacoast plan. "The stock can May We not be assessed under any circumstances," he said. Isn't that assurance enough? It has been rather tough traveling since the start back in September, but the goal is in sight. Just one on more power drive-the dash down the home stretchand victory will have been achieved. You? Won't you help make the final spurt just a little less difficult by signing NOW? Your ready response to this earnest appeal will be sincerely appreciated. We thank you.

7. December 9, 1933 Asbury Park Press Asbury Park, NJ
Article from Asbury Park Press, December 9, 1933

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SEACOAST DIVIDENDS Dividends for Seacoast Depositors depend on the Depositors themselves. It is for them to say when Dividends shall be declared, what percentage shall be paid To Open the and how often. But only in the event THEY open the bank. Otherwise Depositors will have nothing to say SEACOAST about it. They will take what they get-and like it. TRUST CO. Dilatory Depositors only delay Dividends. They not only "bite off their nose to spite their face" but they do harm to others. A great majority of the Seacoast Depositors, including practically all of those with larger accounts, want the bank open, in order that they may be saved the constant expense of liquidation by the State Banking Department. They want an operating bank, with opportunity to make profits, to do its own liquidating, quickly or cautiously, as it chooses. They want the bank to be "in on the ground floor" when the Government starts guaranteeing deposits, for they see in this new departure from established custom a boon to banking. A few want to await further developments in the reopening campaign before definitely aligning themMust selves with the reorganization group. Some have been advised not to sign, for various reasons-many of them Be Signed savoring of selfishness. Some have been told the powers of attorney are too broad in scope-give the comto the mittee too much power. Col. Kelly, State Banking Commissioner, will attend to that. He isn't delegating authority to anyone until he knows "what it's all about." Reopening Depend on it, he will know what's what before he will give his official approval to the reopening. Plan. A small minority opposes the reopening for reasons best known to themselves. Whether they are misguided or not, there is no quarrel with them. They are entitled to their opinion. But to them and to others who have not signed for the reopening, let it be said that there is absolutely no valid excuse for remaining outside the fold. Be fair with yourself. Ask yourself this question: "Why have I not signed?" And in giving yourself the answer, let your conscience be your guide. If you and your conscience can't agree, give the committee a break. Come down to the bank and argue it out with us in friendly fashion. Maybe your conscience is right. Who knows? Perhaps you lack confidence because the bank failed you once. That's only human. But shouldn't the guaranteeing of deposits by the Government overcome such timidity? Your bank will be as good as your Government. Perhaps you fear the wrong men may get control. Only the Depositors themselves will be to blame if that happens. They will have full say as to who will run the bank-and how. They will be the absolute owners of the bank. They may select just the right officials. It's possible, except to a doubting Thomas. Perhaps you would like the bank's assets liquidated as quickly as possible, without regard to values, and take what you could get and call it quits. Some take that selfish attitude. To secure a meagre dividend now, they would wreck the future chances of those who are willing to wait for far greater returns. With such an attitude there is scant sympathy. Should not the motto "the greatest good for the greatest number" prevail? Perhaps you would want the assurance of "somebody higher up" that absolutely no assessment can be made on the stock you would receive for your deposit. Commissioner Kelly himself gave that assurance in his recent radio talk on the Seacoast plan. "The stock can not be assessed under any circumstances," he said. Isn't that assurance enough? It has been rather tough traveling since the start back in September, but the goal is in sight. Just one more power drive-the dash down the home stretchand victory will have been achieved. Won't you help make the final spurt just a little less difficult by signing NOW? Your ready response to this earnest appeal will be sincerely appreciated. We thank you.