Globe Exchange Bank - Brooklyn, NY

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: *
Location: Brooklyn, New York (40.660, -73.951)

Metadata

Model: gpt-5-mini
Short Digest: 56cbdf22

Response Measures

None

Description

Article (Times Union, 1932-12-08) states the Globe Exchange Bank closed before the Queensboro National and that the Globe's closing directly caused a run on the Queens bank. The article does not describe a run on Globe itself, nor any reopening; it discusses subsequent litigation. Date of Globe's closing is not specified in the excerpt. Bank type inferred as state (no 'National' or 'Trust' in name).

Events (1)

1. * Suspension

Cause Details: Article does not specify the immediate cause of Globe Exchange Bank's closing; only states it closed prior to the Queensboro National, precipitating a run on that bank.
Newspaper Excerpt: the Globe Exchange closed before Queensboro bank did; that direct result of the closing of the Globe was the run on the Queens bank
Source: newspapers

Newspaper Articles (1)

1. December 8, 1932 Times Union Brooklyn, NY

Article from Times Union, December 8, 1932

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Article Text

FORMER BANKS INVOLVED IN SUIT 13 Queens Directors Say Five Brooklyn Officials Owe $55,000 Under Agreement. Trial of a suit for $55,000 brought by 13 directors of the now defunct Queensboro National Bank, of Corona, against five directors of the Globe Exchange Bank of Brooklyn, is being continued today before Justice Adel and jury in Queens Supreme Court. Long Island City. The suit is the result of an alleged contract under which the Brooklyn bankers agreed to buy stock held in the Queens bank by the Queens bankers. The Queens bankers allege that in 1929 the Brooklyn bankers purchased a controlling interest in the Queens bank, but induced the local men to remain as directors. The Queens bankers claim they agreed to do this on condition the Brooklyn group promised to purchase the required ten shares each director was required to hold to qualify director on or before Dec. 4, 1931. Say Agreement Was Signed They claim an agreement in writing to this effect was drawn up and signed by all those interested. They also claim that payments totaling 17,000 were made on the the total amount of which called for the payment of $70,000, and they seek payment of the balance plus interest. In defense, the Brooklyn group claims the Queens bankers, acting as directors of the Queensboro National, requested the United States Controller of Currency, August, 1931, take possession the bank and that this brought about the closing of the institution. As result, the value of the stock question depreciated heavily. They claim that such action was not and the for the depreciation of the stock lies with the Queens directors. The latter, however, claim the Globe Exchange closed before Queensboro bank did; that direct result of the closing of the Globe was the run on the Queens bank that precipitated the necessity of calling in the Controller of Currency. One Witness Examined Only one witness, director and counsel for the bank, Samuel Perlo, was examined yesterday, and indications are the case will continue three or four days. Directors of the Queensboro National, who are plaintiffs in the action, are John M. Cragen, Elmo, Inc., John Hart, John LaDuke, Joseph Linhart, Alphonse Martinez, Walter Morris, Samuel Perlo, Paul Roth, Edward H, Ruhl, Charles Scarfule, Lonzio Scileppi and Frank Yager. The Globe Exchange directors named as defendants are Morris Walzer, Max Blumberg, Michael Weinsier, Jacob Davis and Harry Ginsberg.