14099. Merchantville Trust Company (Merchantville, NJ)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust company
Start Date
October 10, 1931
Location
Merchantville, New Jersey (39.947, -75.067)

Metadata

Model
gpt-5-mini
Short Digest
311e6275

Response Measures

None

Description

Merchantville Trust Company was taken over by the State and closed on Oct 10, 1931 because assets were impaired by shrinkage in market value of securities. Neighboring banks suspended to avoid runs. The closed Merchantville Trust was later consolidated into a new National Bank and Trust Company that opened May 16, 1932, but the original trust company remained closed and was taken over by the state.

Events (3)
1. October 10, 1931 Other
Newspaper Excerpt
A few minutes before its scheduled hour for opening, the Maple Shade National Bank posted this 'Owing to the closing of our neighbor banks, the board of directors voted not to open this bank today.' ... said the move had been taken to preclude a possible run on the bank, for which it was not prepared.
Source
newspapers
2. October 10, 1931 Suspension
Cause
Government Action
Cause Details
Taken over by the State Department of Banking and Insurance after assets were impaired by decline in market value of securities.
Newspaper Excerpt
The Merchantville Trust Company, the first to announce its closing, was taken over by the State because its assets had been impaired by the market value shrinkage of its securities.
Source
newspapers
3. May 16, 1932 Reopening
Newspaper Excerpt
the new National Bank and Trust Company, a consolidation of the closed Merchantville Trust Company and the First National Bank and Trust Company, which opened its doors Saturday. Deposits doubled withdrawals during the first day's business of the new... consolidated the closed Merchantville Trust Company and the First National Bank and Trust Company, which opened its doors Saturday.
Source
newspapers

Newspaper Articles (7)
1. October 11, 1931 Daily News New York, NY
Article from Daily News, October 11, 1931

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Article Text

CLOSING OF JERSEY BANK SHUTS DOORS OF 2 OTHERS Merchantville, N. J., Oct. 10.Three neighboring banks, two here and one in Maple Shade, closed their doors this morning within a half hour of each other. The Merchantville Trust Company, the first to announce its closing, was taken over by the State because its assets had been impaired by the market value shrinkage of its securities. Closing of this bank was given as the reason for a similar action by its rival, the National Bank and Trust Company, of Merchantville. A few minutes before its scheduled hour for opening, the Maple Shade National Bank posted this "Owing to "the closing of our neighbor banks, the board of directors voted not to open this bank today." John J. Parker, president of the last named institution, said the move had been taken to preclude a possible run on the bank, for which it was not prepared.

2. October 11, 1931 Daily News New York, NY
Article from Daily News, October 11, 1931

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Article Text

CLOSING OF JERSEY BANK SHUTS DOORS OF 2 OTHERS Merchantville, N. J., Oct. 10.Three neighboring banks, two here and one in Maple Shade, closed their doors this morning within a half hour of each other. The Merchantville Trust Company, the first to announce its closing, was taken over by the State because its assets had been impaired by the market value shrinkage of its securities. Closing of this bank was given as the reason for a similar action by its rival, the National Bank and Trust Company, of Merchantville. A few minutes before its scheduled hour for opening, the Maple Shade National Bank posted this notice-"Owing to the closing of our neighbor banks, the board of directors voted not to open this bank today." John J. Parker, president of the last named institution, said the move had been taken to preclude a possible run on the bank, for which it was not prepared.

3. October 11, 1931 Daily News New York, NY
Article from Daily News, October 11, 1931

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Article Text

CLOSING OF JERSEY BANK SHUTS DOORS OF 2 OTHERS Merchantville, N. J., Oct. 10.Three neighboring banks, two here and one in Maple Shade, closed their doors this morning within a half hour of each other. The Merchantville Trust Company, the first to announce its closing, was taken over by the State because its assets had been impaired by the market value shrinkage of its securities. Closing of this bank was given as the reason for a similar action by its rival, the National Bank and Trust Company, of Merchantville. A few minutes before its scheduled hour for opening, the Maple Shade National Bank posted this notice-"Owing to the closing of our neighbor banks, the board of directors voted not to open this bank today." John J. Parker, president of the last named institution, said the move had been taken to preclude a possible run on the bank, for which it was not prepared.

4. October 12, 1931 The Courier-News Bridgewater, NJ
Article from The Courier-News, October 12, 1931

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Article Text

Three N. Jersey Banks Suspended banks here and in the town of Maple Shade suspended Saturday The Merchantville Trust Company was the first pension, notice stating that been taken over the State of and Insurance. from Trenton, that the bank had been taken over because its assets had been paired the shrinking of the marvalue of its securities followed. Half an hour before the usual opening of the First National Bank and Trust Company of Merchantville, notice was placed on its stated that the rectors had not open, cause of the closing of the trust company. minutes before opening time of the Maple Shade National Bank, notice appeared doors stating that "owing to the closing of our neighbor banks board voted not to open this bank John president, stated that the bank sound that its assets had not been but that he prepared to withstand heavy run which regarded certain since the closing of the neighboring town's banks.

5. October 12, 1931 The Courier-News Bridgewater, NJ
Article from The Courier-News, October 12, 1931

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Article Text

Three N. Jersey Banks Suspended banks here and in the neighboring town of Maple Shade suspended The Merchantville Trust Company the first pension, notice stating that had been over by the State of Banking and Insurance. from Trenton, that the bank had been taken over because its assets had been Impaired by the shrinking of the market value of its securities followed. Half an hour before the usual opening of the First National Bank and Trust Company Merchantville, notice was placed on its doors. The notice stated that the rectors decided not to open, because the closing of the trust company. few minutes before opening of the Maple Shade Bank, appeared on its doors "owing the closing of our banks the board not this bank today." John Parker, president, stated that the bank sound and that its assets had not been but that he not prepared to heavy run which he regarded certain since the closing of the neighboring town's banks.

6. May 16, 1932 Courier-Post Camden, NJ
Article from Courier-Post, May 16, 1932

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Article Text

DEPOSITS RUN HIGH BANK Receipts More Than Double Withdrawals: Officers Sense Optimism CHURCH BELLS TOLL Deposits doubled withdrawals during the first day's business of the new National Bank and Trust Company, a. consolidation of the closed Merchantville Trust Company and the First National Bank and Trust Company, which opened its doors Saturday. first business exceeded our former Mayor erick Holman, former president the old trust company, said yesterday. of the depositors, who withdrew percent their money in the other two institutions redeposited them in the bank. There seems to be general spirit of optimism the town. Shumaker, president of the bank. was optimistic confirmed the fact that the posits twice large as withdrawals. He said figures not available clerks worked hours after the closing record the in the doors of the ed the bells Trinity Church and Niagara Fire Company were tolled. When the doors were opened there were about 50 persons in About and the tradesmen, all with in hand. Girl First to Enter The first person the bank Savage, of Grant avenue, Merchantville. Justine appeared, accompanied by her uncle, Fred Homer, baritone. She carried small child's which was With this amount opened insisting on making out the slip herself. Shumaker patrons. He also was the first and pass book No. in the checking Kurkian Brothers were second and Harry Palfreyman, Victoria street, Merchantville, third. The first depositor was Mrs. Helen M. Gillan, Book No. in deposits. Merger Final approval the bank's amalgamation obtained from Vice Chancellor Robert H. Ingersoll Atlantic City last Tuesday. Prior that, the State Department of Banking and had approved the tions $315,000, all of which has Under the consolidation plan, percent the deposits are now able, with the remainder made every six months over period of years. The members of the two boards was up to the following memthe consolidation tee: Holman. H. gan Hatch, the national bank: Harold Bottomley, Grover Staats, Mayor Perry Smith, Benjamin M. BeideTemporary officers besides Shumaker, Bottomley, president, Cubellis, cashier; and Richman, solicitor. Permanent directors be elected meeting of stockholders June 15, Holman The directors will choose officers. Shumaker of the the and former president of RCA Victor Company, The capital structure of the new bank, according to Shumaker shows assets.

7. September 8, 1932 The Record Hackensack, NJ
Article from The Record, September 8, 1932

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Article Text

REVIVED BANKS TO YIELD STATE CASH Jersey Income Jumps As They're ReOrganized. Press) Trenton. and re-openings banks closed in New Jersey the past year releasing state the now need adequate revenues for Records the Treasurer's office has been repaid and added to the state's curtailed income largest deposit affected by held the Peoples' National Bank and Trust Company, consolidated the Elizabeth Company Re$330,000 made the balance available. $10,000 of deposits totaling six banks been repaid and The ed banks the Freehold Trust Company, the First National Trust Merchantville, the Merchantville Trust Company, the First National Bank of Ocean City, and the Port Newark National Bank In fifteen closed banks. however which been released. Jersey Na. these banks tional Bank and Trust Newark. recently, with deposit