Keyport Banking Company

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: January 1, 1932
Location: Keyport, New Jersey (40.433, -74.200)

Metadata

Model: gpt-5-mini
Short Digest: 91cd2618

Response Measures

None

Description

Newspaper reports headlined Rumors Cause of Bank's Suspension. Articles describe some withdrawals and customer excitement but emphasize the cause as rumors/misinformation and that All excitement has entirely subsided with new deposits and expressions of confidence. No clear, large discrete run is described and the coverage implies the suspension was temporary and confidence returned.

Events (1)

1. January 1, 1932 Suspension

Cause: Rumor Or Misinformation
Cause Details: Suspension attributed to countywide rumors and public nervousness following other banks' closures; depositors withdrew savings due to misunderstanding and outside phone calls, not bank insolvency.
Newspaper Excerpt: RUMORS CAUSE OF BANK'S SUSPENSION ... 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.
Source: newspapers

Newspaper Articles (2)

1. January 1, 1932 The Keyport Weekly Keyport, NJ

Article from The Keyport Weekly, January 1, 1932

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Article Text

RUMORS CAUSE OF BANK'S SUSPENSION (Continued from page one) upon the safe and conservative policy always followed with a view of safeguarding the interests of the depositors against any unforseen 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 a hundred years has had the same correspondent, to wit: 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. Terhune, 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 Jer. sey. also by John Terhune, president of the Long Branch Trust Company unquestionably the strongest and most successful bank. ing 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 at the bank, every merchant from Balley's store to the station made their customary Monday morning deposits There were not half the number of demands that were expected, and for which large preparation had been made, were registered Instead of the anticipated withdrawals, 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 Keyport was not without some reactions. but as in Matawan, these were not expressed by the business men where it was reported at both banks usual business deposits were made of a very substantial nature, showing that the Christmas purchases must have had been largely made with the Keyport merchants No Keyport business man withdrew his account in either of their bankF. 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 OLIVE who drew their

2. January 1, 1932 Matawan Journal Matawan, NJ

Article from Matawan Journal, January 1, 1932

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Article Text

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