Article Text
Correspondent of Italian Bank Closes Associated Press NEW YORK, Dec. 29. - The Italian Discount and Trust Company here, the correspondent of the Banca Italiaani Disconte of Rome, closed its doors today following a run,
14062. Italian Discount & Trust Company (New York, NY)
Bank Information
- Episode Type
- Run → Suspension → Reopening
- Bank Type
- trust
- Start Date
- December 29, 1921
- Location
- New York, New York (40.714, -74.006)
Metadata
- Model
- gpt-5-mini
- Short Digest
8ad4f4cf28a1e30f
Response Measures
None
Description
Contemporary reports indicate a short run on Dec 29, 1921 after the closing/suspension of its correspondent Banca Italiana di Sconto in Rome. Payments were suspended and the State Superintendent took charge; the institution later reopened in mid-February 1922 after examination and provision of funds. Cause of the run is attributable to distress of its correspondent in Rome (correspondent failure), not to a rumor or internal scandal. OCR variations in some articles (address listed as 319/399/899 Broadway) were noted; 399 Broadway is consistently reported in major New York papers.
Events (3)
1.
December 29, 1921
Run
- Cause
- Correspondent
- Cause Details
- Run occurred after news that the Banca Italiana di Sconto in Rome had closed/suspended, causing depositors to withdraw from the New York correspondent.
- Measures
- Board conferred with State Superintendent; payments temporarily suspended; funds received from downtown institutions; state examiners took charge.
- Newspaper Excerpt
- The Italian Discount and Trust Company ... closed its doors today following a run.
- Source
- newspapers
2.
December 29, 1921
Suspension
- Cause
- Correspondent
- Cause Details
- Suspension followed the run triggered by the suspension/closure of the bank's correspondent in Rome; state Superintendent George V. McLaughlin took charge for examination.
- Newspaper Excerpt
- Company officials said that payment had been suspended 'for the day' and that a statement would be made later.
- Source
- newspapers
3.
February 15, 1922
Reopening
- Newspaper Excerpt
- The Italian Discount and Trust Company ... will reopen its offices Wednesday morning, February 15, at 10 o'clock; released from supervision with a clean state.
- Source
- newspapers
Newspaper Articles (18)
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Article Text
NEW YORK BANK CLOSES, New York, Dec. 29A-The Italian Discount and Trust Co. at 399 Broadway, N. Y., correspondent for the Banca Italiana di Scionto of Rome which has been closed also closed its doors today following a run.
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New York Bank Closes Doors After Short Run NEW YORK, Dec. 29.-The Italian Discount & Trust Company, of New York, correspondent of the Banca Italiana si Sconto, of Rome, which has been suspended, also closed its doors this forenoon following a run.
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ITALIAN DISCOUNT AND TRUST CO. IN NEW YORK IS CLOSED New York. Dec. 29.-(By the Associated Press.)-The Italian Discount and Trust company at 399 Broadway, New York, correspondent of the Banca Italiana di Sconto of Rome, which has been closed. also closed its doors today following the run. The local institution is capitalized at $1,000,000. has surplus and profits of $750,000 and deposits of about $1,000,000,000. Company officials said that payment had been suspended "for the day" and that a statement would be made later.
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LIRE DROPS IN VALUE ON NEWS Closing of Big Bank in Rome Results in Slump of Italian Exchange. NEW YORK, Dec. 29.-(By The Associated Press)-Italian exchange, already the weakest of the allied remittances in the local market. dropped 10 points to 4.23 today upon receipt of news of the closing at Rome of the Banca Italiana di Sconto, and the declaration by the Italian government of, a modified moratorium. Gugliemo Marconi, the wireless inventor, is president of the board of directors of the bank which was formed in 1915 by consolidation of several older financial institutions. The bank has more than 150 branches in Italy, France, Spain, Turkey, Brazil and in the French colonies. Latest reports available here showed the institution had a paid-up capital of 315,000,000 lire, a reserve fund of 68,000,000 lire and current deposits of about 3,540,000,000 lire. NEW YORK, Dec. 29.-The Italian Discount and Trust company at 899 Broadway, New York, correspondent of the Banca Italiani di Sconto of Rome which has been closed, also closed its doors today following a run.
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Trust Co. Closes NEW YORK, Dec. 29.-The Italian Discount and Trust Company at 319 Broadway, New York correspondent of the Banca Italiana Di Sconto, of Rome, which has been closed. also closed its doors today following a run. The local institution is capitalized at $1,000,000. has surplus and profits of $750,000, and deposits of $13,000,000. Company officials said payments had been suspended "for the day" and that a statement would be made later.
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ITALIAN BANK CLOSES DOORS Banca di Italiana Sconto in Rome Quits Following Moratorium Announcement. Rome, Dec. 29.-(By the Associated Press.)-The - Banca Italiana di Sconto closed its doors this morning following the announcement by the government of a modified moratorium permitting the suspension of payments of the obligations of certain corporations through court decree. The bank, profiting by the announcement, suspended payments pending court proceedings. The branches of the bank have been closed throughout Italy. Its premises here were under police protection today, with numbers of its customers gathered outside. New York, Dec. 29.-(By, the Associated Press.)-The Italian Discount & Trust company, New York correspondent of the Banca Italiana di Sconto, of Rome. which has been closed, also closed its doors today following a run. The local institution is capitalized at $1,000.000, has surplus and profits of $750,000 and deposits of about $13,000,000. Company officials said that payment had been suspended "for the day" and that a statement would be made later.
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RUN CLOSES TRUST CO. N. Y. Correspondent of Italian Bank Forced to Suspend Business. By Associated Press to Every Evening New York, Dec. 29.-The Italian Discount and Trust Company at 399 Broadway, New York, correspondent of the Banca Italiana di Sconto " Rome, which has been closed. also closed its doors today following 3 run.
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ITALIAN BANK CLOSES NEW YORK, Dec. 29.--(A. - P.) The Italian Discount and Trust Company, correspondent of the Banca of Italiana Di Sconto of Rome, also closed its doors today following a run.
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RUN ON ITALIAN BANKS IN NEW YORK CLOSED DOORS (By Associated Press.) New York, Dec. 29.-The Italian Discount & Trust Co., at 399 Broadway, New York, correspondent of the Banca Italiana di Sconto of Rome, which has been closed, also closed its doors today. following a run. The local institution is capitalized at $1,000,000 and deposits of about $13,000,000. Company officials said that payment had been suspended "for the day and that a statement would be made later.
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Scattered Bulletins of Interest to Those Who Follow Markets By Associated Press New York December 29.Prices for refined sugar declined to another new low record today when a local refiner reduced the list quotation 10 points to the basis of 4.80c for fine granulated. Butte, Mont., December 29.Mines and reduction plants in the Butte, Great Falls and Anaconda districts will resume January 16, it was announced today by all the local mining companies. Starting January 16 a horizontal wage decrease of 50 cents a shift will go into effect. Washington, December 29.-Additional federal indictments against persons engaged in the building material industry in different parts of the country are expected by the justice department, Attorney General Daugherty said today. The department's investigation of the activities in the building trades is being continued, Mr. Dangherty said. Washington, December 29.-An import duty of 81 a barrel on erude oil was urged before the Sénate finance committee today by Harry H. Smith of Tulsa, Okla., for the Midcontinental Oil and Gas association and the National Association of Independent Oil Producers. . Nashville, Tenn., December 29. A general reduction in wages of the 6,000 employes of the Nashville, Chattanooga and St. Louis railway is proposed in a letter addressed by President W. B. Cole to the employes, which was made public Wednesday afternoon. It is understood that the proposed wage cut will average 10 per cent. President Cole's letter says that no reductions will be made until after full hearings and compliance with the transportation action. Rome, December 29.-The Banco di Sconto closed its doors this morning following the announcement by the government of a modified moratorium permitting the suspension of payments of the obligations of certain corporations through court decree. The bank, profiting by the announcement, suspended payments pending court proceedings. New York, December 29.-The Italian Discount and Trust company at 399 Broadway, New York, correspondent of the Banco Italiani di Sconto of Rome, which has been closed, also closed its doors today following a run. Washington, December 29.-The Carolina, Clinchfield and Ohio railroad was granted a loan of $6,000,000 today by the interstate commerce commission. The period of the loan will be five years, and $5,000,000 of the amount will be used to pay off mortgage indebtedness of the railroad, while the balance of $1,000,000 will be used to pay off a one-year loan already made to the railroad by the government. The railroad will deposit bonds with the government to secure payment of the loan.
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New York Branch Suspends. New York, Dec. 30.-Following a run lasting two hours, the Italian Discount and Trust company, 399 Broadway, closed its doors. The company is the New York agent of the Banca Italiania di Sconto of Italy. George V. McLaughlin, state superintendent of banks, took charge of the institution. which was capitalized at $1,000,000 and had gross deposits of $12,000,000. It has a large credit with the Guaranty Trust company.
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I en OF ITALIAN BANK FAILURE Banca Italiana Disconto Closes Doors Because of Bad Investments. GENERAL MOTORS HEAVY One Block of 13,500 Shares Changes Hands at 10. With 20,500,000 Outstanding. and Bank Loans of *20.000,000. By 11. 1. Barnum. NEW YORK, Dec. 29.-Lower prices came on the ticker at the opening this morning on the news that the Banca Italiana Disconto had failed. This institution. which was one of the largest in Italy, became involved in steel. shipbuilding and war munitions companies There was a rally in the stock market after the early decline. But another decline came on the announcement around 12:45. that the Italian DIS. count and Trust Company. of 399 Broadway, New York. had closed its doors Where was a run on this institution which has a capital of $1. 000,000. and deposits of $13,000,000 on the news of the bank failure in Italy. A number of larxe bank came to the rescue with funds. but it was finally decided to close the doors. 1: was agent of the Italian bank. General Motorm Heavy. General Motors was heavily sold during the late decline one Mock of 13,500 shares changing hands at 10. The directors of the company will meet within a few days to act 25 on the quarterly dividend of cents a share. There are 20,500,000 shares of General Motors outstand ing. and the company has bank loans said to be bout $20,000,000 If the dividend is out in half. $10,000,000 will be saved annually; If 11 is pass ed. the annual saving will be $20. 000.000. Today's selling in the stock market was largely due to the pools which have recently been active in getting prices UD Money is easy and In there is no trouble for the pools that direction. the one which usually causes distress The trouble this time was that the pools bought and accumulated large holdings without attracting a public following Planning Foreign Loans. While bankers here are not doing much talking about the conference rejust held with Secretary Hoover garding foreign loans, it is under stood that some ten foreign loans in volving $200,000,000 are beink ne gotiated, and Hoover told the bank that the government would not stand ers as sponsor. It is also under its stood that the government with large refunding of noating debt and Victory bonds just ahead is not keen on having the banks use up buying power by floating foreign loans Returns of ninety-one large railroads for the month of November now at hand enable the Bureau of Railway Economics to estimate the full net returns for the month at 4 per cent on property account. This compares with the final returns of the carriers as a whole for October, which were equal to 5.4 per cent on property account. the largest for the year. For the ten months up to the close of October, 3.2 per cent was earned on property account. not considering "other income." The returns at hind for the ninety-one large companies separated as to the territory served show decreases compared with last year of 23.7 in gross for in the Eastern lines. 15.1 for those the South. and 21.7 in the West. In not operating income, the Eastern roads show R gain of 45.9 per cent: those in the South an increase of 11.5 and in the West. 27 per cent. These gains In net operating Income in the face of the falling off in grose were due to drastic cuts in operate ing expenses. For the ninety-one roads as a whole gross was down 22.2. and net operating income up 35 per cent.
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BANK HERE CLOSES; DEPOSITORS PROTECTED After a two hour run by excited depositora on the Italian Discount and Trust Company at 399 Broadway and its Harlem branch at 2242 First avenue yesterday forenoon both places were closed by order of George V. McLaughlin, Superintendent of Banks for the State of New York. Most of the depositors of Italian extraction became alarmed early in the day when word was received that the Banca Italiana di Sconto had closed its doors after the Government announced a modified moratorium permitting the suspension of payments pending court proceedings. The local institution has large deposits in the Banca Italiana di Sconto. Emanuel Gerli, president of the Italian Discount and Trust Company, cabled from Milan yesterday that the Italian Government would protect the foreign interests of the closed institution, which has about 300 branches in Italy and correspondents in almost every foreign country. Giovanni Girardon, vice-president of the local trust company, said he had reason to believe that everything would be straightened out here, but the outcome would depend largely upon the settlement of the affairs in Italy. He would not state the amount of the trust company's funds involved in Italy except to say that it was large. The Italian Discount and Trust Company has about 8,000 depositors, including 1,000 of the poorer class in the Harlem branch. The institution has a capital of $1,000,000 and deposits of $12,000,000. So severe was the run on the company after its doors had been open for an hour a hurried meeting of the board of directors was called. For a time it looked as if the bank would not have to suspend payments, as funds were recelved from downtown institutions. After a conference with Superintendent of Banks McLaughlin, the board of Directors asked that the trust company's affairs be taken over by his department. Later the doors were closed. At the time there were between 100 and 200 depositors waiting in line in the Broadway office demanding that they be given their money. The run on the Hariem branch was not so heavy. and it was not until the doors were closed that word was spread throughout Little Italy that payments had been suspended. Then came Italians of all ages, including men, women and children. W. C. Potter, president of the Guaranty Trust Company, last night said the closing of the doors of the Italian Discount and Trust Company was due to the failure of the Banca Italiana di Sconto to pay its lire claims. In other worde, the Italian concern had been investing heavily in exchange. Italian exchange, already the weakest of the Allied remittances in the local market. closed at 4.21 1/2 yesterday, just 11 1/2 points lower than before the receipt of the news of the closing of the Banca Italiana dt Sconto. Mr. Potter said: "Due to the fact that the Guaranty Trust Company had a former interest in the stock of the Italian Discount and Trust Company. purchased at the time of its organization, two officers of the Guaranty Trust Company have occupied positions on its board of directors. In April last the Guaranty Trust Company sold its entire holdings in the stock to the Banca Italiana di Sconto at a premium above cost and since then has had no interest in its business. The Italian Discount and Trust Company has no indebtedness to the Guaranty Trust Company.- On the contrary. the Guaranty Trust Company carries a credit balance from that institution."
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Italian Bank Is Held Sound, but Opening Delayed Big Depositors Agree Not to Withdraw Funds When Business Is Resumed; Few Clamor for Their Money After working all day yesterday to establish the financial status of the Italian Discount and Trust Company, at 399 Broadway, the state banking examiners doubted that the institution would open its doors on Tuesday, as it had been unofficially reported it would do. At the same time, however, it was learned from reliable sources that the bank was basically sound. The examiners' doubts as to the immediate opening of the bank do not necessarily suggest any weakness on the part of the bank, it was said. They are based rather on conjectures as to the length of time it will take to complete their examination and on the results of the examination of the affilliated Banca Italiana di Sconto in Rome. Giovanni Girardon, vice-president of the trust company, Faid that application had been made to the Banca Italiana di Sconto for the release of the trust company's lire. In the event that such a release is possible it was said that the bank, with its deposits and securities here, could satisfy depositors to whom it is indebted to the extent of about $11,000,000. The confidence which the Italian colony has in the bank was especially marked yesterday when depositors had half a holiday in which to clamor for their money and there were not more than half a dozen persons gathered for that purpose. All the large depositors whose accounts amount to several millions of dollars have given assurance that they will not withdraw their deposits when the bank resumes business. The direc. tors of the bank have, it is understood an unofficial agreement that they will not lift their deposits either. One of the directors alone has $500,000 in the bank. George V. McLaughlin, State Superintendent of Banks, spent the afternoon looking over the situation. The examiners, under the direction of George W. Egbert, Special Deputy State Superintendent of Banks, are not expected to finish their task for several days.
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ITALIAN BANK CLOSES NEW YORK, Jan. 3-The Italian Discount & Trust Company, New York correspondent of the Banka Italiana Si Sconto, of Rome, has closed its doors, following a run. The run was occasioned by the recent suspension of the Rome institution.
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Italian Discount Plans To Reopen Wednesday Bank Superintendent Gives In. stitution Clean Bill of Health After Closing The Italian Discount and Trust Company, 399 Broadway, which temporarily suspended its activities on December 29 last, will reopen its offices Wednesday morning, February 15, at 10 o'clock. for the transaction of customary bust ness. The company has cash on hand and in approved depositaries in this country to pay all dollar deposits, as well 83 sufficient foreign currencies to meet all claims in those currencies. accord. ing to the statement of its condition just issued. In addition, the statement shows that the company's capital is intact and that the company is not only sound and liquid, but also in a very strong position. After carefully going over the books the Superintendent of Banks, State as New York, has released the company from supervision with a clean state.
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ITALIAN BANK REOPENS TO-DAY The Italian Discount and Trust Company, which temporarily suspended activities at 399 Broadway in December, will reopen for business to-morrow. The company has cash on hand and in approved depositories in this country, according to announcement yesterday, to pay all deposits, and sufficient foreign currencies to meet all claims in such currencies. The statement said that the company's capital was intact and its assets sound and liquid.