15377. Commercial Savings Bank & Trust Company (Toledo, OH)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
trust
Start Date
August 15, 1931
Location
Toledo, Ohio (41.664, -83.555)

Metadata

Model
gpt-5-mini
Short Digest
a1440e1e1db4211b

Response Measures

None

Description

Multiple August 1931 articles report heavy withdrawals and directors closing the Commercial Savings Bank & Trust Co. and turning assets to the State Superintendent of Banks (state takeover) after the Security-Home Trust failure panic. The bank was among four Toledo banks suspended Aug 15–17, 1931. A reorganization/new-bank plan and scheduled partial dividends with reopening were planned for December 15, 1931, so the sequence is: run → suspension (state takeover) → reorganization/reopening. Random/misinformation trigger is not described; the proximate cause was contagion from other local bank failures (Security-Home Trust).

Events (3)
1. August 15, 1931 Run
Cause
Local Banks
Cause Details
Heavy withdrawals and 'hysteria' triggered by the earlier closing of the Security-Home Trust Company; contagion from other local bank failures.
Measures
Directors invoked 60-day notice earlier; then decided to close and turn assets over to the State Superintendent of Banks to conserve assets and protect depositors.
Newspaper Excerpt
The action means that the three banks and their down-town branches ... are considered solvent and would be able to take all normal demands. The wave hysteria which followed the closing of Home Trust Company June 17 ... has unabated.
Source
newspapers
2. August 17, 1931 Suspension
Cause
Government Action
Cause Details
Directors requested state banking department take over affairs; state examiners and department assumed control to conserve assets amid heavy withdrawals.
Newspaper Excerpt
Directors ... decided to close the three banks and turn their assets the State Superintendent of Banks. ... Four major Toledo banks and their fourteen branches ... were closed today by orders of the state banking department and directors.
Source
newspapers
3. December 15, 1931 Reopening
Newspaper Excerpt
A new bank and three holding companies are being organized to take over the Ohio, the Commercial and the Security-Home, December 15. ... The new bank ... successor also will open December 15, and will put 30 per cent of each old deposit in new accounts. Initial dividends of 15 to 30 per cent are scheduled to be paid December 15.
Source
newspapers

Newspaper Articles (16)
1. August 16, 1931 The Cincinnati Enquirer Cincinnati, OH
Article from The Cincinnati Enquirer, August 16, 1931

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Silver Bar silver continued un changed at the close of the week holding at 27% an ounce New York and 12% pence in London Washington, August 15the Farm Board finally will adopt to the Southern cot farmer his low dilemma tonight the close interest of toel-Operations of steel mills in Washington the Youngstown district next week Hope been virtually abandoned will average per cent of rated for its proposal that third of the an increase of one per cent current crop be destroyed and over the past week, Dow, Jones & ization supplies held off the market Co. estimates. for year At least five actual rejections been received the Governors TOLEDO BANKS CLOSED. who were asked to join in the program. Three Savings Institutions Turned There apparently is no immediate Over To State Department. prospect of action although many to that Toledo, Ohio, August end have out. The disposit Directors of the Ohio Savings Bank seems be to leave the actual for & Trust Co., the Guard plan squarely up to the board to be Trust & Savings Bank and the worked out the counter Commercial Savings Bank & Trust proposals put forward by Governors. Co., at special meetings tonight. de- Senators and cided to close the three board members continued banks and turn their assets their efforts to reach an agreement the State Superintendent of Banks with the directors the American This action means that the three Cotton Cooperative Association on down-town banks and their 34 the amount advances to be branches throughout the ed in handling this city not be opened Monday year's The bumper morning pective crop 15,584,000 In the of said the this action for protection of all de- tions have been in process for during an unparalleled several days. TRY OUT GROUP MARKETING Salem, Ohio, August Orchardists Mahoning and Columbiana Counties today began their first in group marketing. They completed deal whereby large of the apple and peach will be sold an agency 700 and 800 cars of fruit will be shipped with East Palestine New Coford and Canfield

2. August 16, 1931 The Cincinnati Enquirer Cincinnati, OH
Article from The Cincinnati Enquirer, August 16, 1931

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TOLEDO BANKS CLOSED. Three Savings Institutions Turned Toledo, Ohio, August 15-(AP)Directors the Ohio Savings Bank Co., the Guard& Trust lan Trust Savings Bank and the Commercial Savings Bank & Trust Co., special meetings tonight. decided to close the three banks and turn their assets the State Superintendent of Banks. that the three This action means banks their down-town branches scattered throughout the not be opened Monday In making the announcement of this action for "protection of all de positors during an pehysteria,' clearly was dicated that the are considered solvent and would be able to take all normal demands in The wave hysteria which followed the of Home Trust Company June 17, how. ever, has the banks and has unabated. The three banks total resources more $100,000,000 and deposits of $80,000,000. to the published stateaccording ments of June 30.

3. August 17, 1931 Baker City Herald Baker City, OR
Article from Baker City Herald, August 17, 1931

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OHIO, NEBRASKA BANKS FAIL TO THIS M. Toledo Failures Total $100,000,000; Loan Ass'ns. Suspend Toledo banks with combined sources of more than failed to open for business this morning while 11 seving associations ceased payments of deposita during the present financial In accordance with the request of directors of the four institutions, the state banking department prepared to take over their iffairs conserve assets in the face of previous stendy withdrawals by des positors The action of directors Lies up for an indefinite period more than ity-Home Trust company. a fifth bank which closed about months ago had about $20,000,000 if deposits: the Ohio Savings Bank and Trust company almost the Commercial Savings Bank and Trust company 466,000. and the Six Nebraska state banks failed to open for business today. Governor Charles W Bryan and E. H. Lulkart. secretary of the state department of trade and commerce. said the closings were the result of Yecent bank suspensions in Omaha The six banks had total deposits of approximately $1,180,000 They were the First State bank of Pleasant Dale: the Dwight State bank of Dwight the Brainard State bank of Brainard the Bruno State bank of Bruno: the Butler County Bank of Davis City, and the Leigh State bank of Leigh building and associations of Akron and Cuyahoga Falls today served their depositors with notice of temporary suspensions of withdrawals. The companies involved carry bright. secretary of the largest, today said The step is taken for the purpose of protecting the de positors. There is no question of insolvency

4. August 17, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, August 17, 1931

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FOUR BANKS IN TOLEDO CLOSED 34 Branches Are Affected; $100,000,000 Resources. By United Press TOLEDO, O., Aug. 17.-Four major Toledo banks and their fourteen branches, with combined resources of more than $100,000,000 and 150,000 acounts, were closed today by orders of the state banking department and directors. The institutions were the Ohio Savings Bank and Trust Company, the Commerce Guardian Trust and Savings bank, the Commercial Savings Bank and Trust Company and the American bank. Other banks remained open and announced they were prepared to withstand heavy withdrawals. The four closures were precipitated by the closing several weeks ago of the Security Home Trust Company, it was said. As notices were posted on the windows of the institutions, every available policeman in the city was ordered on duty, but there was only one instance of disorder. An irate citizen tossed a bottle through the window. of a branch bank. Under a force of sixty men of the state banking department, augmented by six examiners of the federal reserve bank system from Cleveland, the task of liquidating the four suspended banks was immediately begun. As work of liquidation was started, crowds of anxious depositors thronged about the institutions, but there was no disorder. Traffic presented the greatest problem. Other local banks drew a steady stream of depositors, who withdrew their funds and dispersed. Withdrawals were being met promptly.

5. August 17, 1931 Des Moines Tribune Des Moines, IA
Article from Des Moines Tribune, August 17, 1931

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TOLEDO BANKS FAIL TO OPEN Had Resources of More Than 100 Million Dollars TOLEDO banks combined of more than 100 million dollars to open for business day while 11 saving sociations ceased payments of posits during the present cial The state banking department prepared the banks affairs to conserve in face of previous steady withdraw. Police and detectives patrolled the banking districts in preparation for any public emergency Late Saturday, directors announced closing of the Guardian Trust and Savings bank the Ohio Savings Bank and Trust CO. and the Commercial Savings Bank and Trust co. Directors of the fourth institution, the American bank state bank Sunday it would be forced to close its doors also because its reserves were tied up in two of the banks suspending

6. August 17, 1931 Tucson Citizen Tucson, AZ
Article from Tucson Citizen, August 17, 1931

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FOUR OHIO BANKS CLOSE THEIR DOORS TOLEDO, Ohio, Aug. 17. (AP). Four Toledo bank with combined resources of more than $100,000,000 failed open for business this mornwhile 11 saving associations payments of deposits during the present financial In accordance with the request of directors of the four institutions, the state department prepared to take over affairs to conserve assets in the face of previous steady withdrawals by depositors. City police and detectives, acting under orders of Police Chief Louis Haas, patroled the banking districts in preparation for any public emergency. More than 100 rural bankers of who met yesterday with Superintendent of Banks Ira Fulton and Charles Saf fin. attorney for the state department, had their assurance of co-operation by state authorities in meeting local The closing ties up for an indefinite period more than of deposits. The Trust company when it closed had about of the Ohio Savings Bank and Trust company almost Commercial Savings Bank and Trust company Guardian Trust and Savings Bank

7. August 17, 1931 The Evening Review East Liverpool, OH
Article from The Evening Review, August 17, 1931

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FOUR TOLEDO BANKS CLOSED State Takes Over Institutions in Move to Protect Assets For Depositors. TOLEDO, O., Aug. con assets for the protection of and expedite negotiations merger four major Toledo banks and their 34 banches were today the hands of state banking department for operation. Directors of Ohio Savings Bank Trust company, the Commerce Guardian & Savings bank, the Commericial Savings Bank Trust Co. and American Bank voted Saturday night to turn the institutions over Ira Fulton, state superintendent of banks. Re sources of the four total more than 60-day notice on withdrawals invoked by the Toledo banks after closing of the Security Home Trust Co. June 17. With the ex piration of that period heavy with drawals anticipated and the action today was taken avoid serious obstacles to orderly liquida tion. Negotiations for a merger among the four will be pressed with vigor is understood. and with the full co-operation of the state banking the department to restore Toledo's fin ancial structure to normal condi

8. August 17, 1931 St. Albans Daily Messenger St. Albans, VT
Article from St. Albans Daily Messenger, August 17, 1931

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FOUR BANKS IN TOLEDO CLOSED Eleven Savings Asscciations Cease Payments of Deposits During Financial Crisis TOLEDO, O. Aug. 17-(P)-Four Toledo banks with combined resources of more than $100,000,000 failed to open for business this morning and eleven saving associations ceased payments of deposits during the present financial situation. In accordance with the request of directors of the four institutions, the state banking department prepared to take over their affairs to conserve assets in the face of previous steady withdrawals of depositors City police and detectives, acting under orders of Police Chief Louis Haas, patrolled the banking districts in preparation for any public emergency. Late Saturday, directors announced closing of the Commerce Guardian Trust and Savings Bank, the Ohio Savings Bank and Trust Company and the Commercial Savings Bank and Trust company. Yesterday in the wake of these announcements came word from directors of the fourth institution, the American Bank, a state bank, that it would be forced to close its doors also because its reserves were tied up in two of the banks suspending operations.

9. August 17, 1931 The Modesto Bee Modesto, CA
Article from The Modesto Bee, August 17, 1931

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FOUR OHIO BANKS, SIX IN NEBRASKA HALT PAYMENTS Eleven Savings Associations Shut Down During Money Crisis Four Toledo banks combined of more than $100,000,000 failed to open for business this morning, while eleven savings sociations ceased payments of posits during the present financial In accordance with the request the four institutions, the state department pared to take over their affairs to conserve assets in the face of previous steady withdrawals by depositors. City police and detectives, acting orders Chief Louis Haas, patroled the banking districts in preparation for any public emergency Conference Pending Meanwhile there was pending meeting between Mayor W. Jackson and Adjutant General Frank Columbus. More than 100 rural bankers of who met terday with State yes. of Banks Ira Fulton and Charles Saffin, attorney for the state department, had their assurance co-operation by state authorities in meeting Late Saturday directors announced closing of the Guardian Trust and Savings Bank, the Ohio Savings Bank Trust Company and Commercial SavBank and Trust Company Yesterday, in the wake of these came word from directors of the fourth the American Bank, state bank, that it would be forced to close doors also because its reserves were tied up in two of the banks suspending operations. CLOSE IN NEBRASKA LINCOLN, Neb., Aug. Six Nebraska state banks failed to for business to-day. Gov Charles W. Bryan and E. H. Luisecretary of the state department of trade and said the closings were the result of rebank suspensions in Omaha. The six banks had total deposits of approximately $1,120,000

10. August 18, 1931 The Times Hammond, IN
Article from The Times, August 18, 1931

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$11,000,000 QUIETENS THE DEPOSITORS of from the Cleveland was credited today with confidence in stability of Toledo's four banks which were yesterby the closing of four brother Officials the four solvent banks advised depositors that anyone wanted his money could come and get The statement resulted in the of many withdrawn acexpression of the Federal bank sent 000,000 to the four banks late yesterday. Meanwhile staff of 60 state and federal examiners continued their task of liquidating the Ohio Savings Bank Trust company, the Commerce Guardian Trust and Savings company, the Commercial Savings Bank and Trust company and the American bank, which of approximately $100,000,000.

11. August 18, 1931 Hartford Courant Hartford, CT
Article from Hartford Courant, August 18, 1931

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Four Banks Suspend In Toledo, Ohio Action Taken to Protect Depositors- Believed Solvent Business Men Plan Aid Toledo, Ohio, Aug. 17 ledo business leaders and officials tonight took steps to case the local f1nancial situation resulting from the closing four large banks today. Methods of making funds available immediately to small depositors were discussed at a number of conferences of business men. County commissioners decided to ask common pleas judges to suspend foreclosure for year providing interest on loans is met. The commissioners also asked Governor George White to help in any way possible. County Treasurer Grant A. Northrup appealed to the state tax commission to ease the burden of taxpayers by an extension of the tax paying The downtown section was crowded all day by depositors and the merely curious who read the closing notices posted on the doors of the Commerce Guardian Trust and Savings Bank the Ohio Savings Bank Trust Company, the Commercial Savings Bank and Trust Company and the Bank The four banks have combined resources of $100,000,000 and deposits of around $80,000.000. Their closing today came at the expiration of the 60-days withdrawal notice which they posted when the Security- Home Trust Company closed two months ago. The closing notices were accompanied by announcement that the banks were believed solvent, but the action was taken protect depositors Officials of the American Bank and it would have met normal conditions but its reserves were tied up with two of the closed The First National Bank. the Toledo Trust Company, the SpitzerRorick Trust and Savings Bank and the West Toledo National remained open as usual as were the Morris Plan and Industrial banks, two special plan Six Nebraska Banks Close. Lincoln, Neb. Aug. -Six small Nebraska banks failed to open for business today. Governor Charles W. Bryan and E. H. Luikart secretary of the State Department of Trade and Commerce said the closing was the result of recent bank suspensions Omaha. The six banks had total deposits of approximately $1,180,000. Suspension In Akron, Ohio. Akron, Ohio, Aug Twelve building and loan associations of Akron and Cuyahoga Falls today served their depositors with notice of temporary suspension of withdrawals. The companies Involved carry deposits of $26,000,000. A. E. Albright secretary of the largest, today said "the step is taken for

12. August 18, 1931 The San Francisco Examiner San Francisco, CA
Article from The San Francisco Examiner, August 18, 1931

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BOOST the on both old and crop raisins boosted and pound by Sun Maid Raisin today, while the California raisin pool scheduled offer rest its 1930 pack afternoon an increase cent The Sun Maid brings its raisin prices to their highest since 1928. The co-operative's entire list goods raised cent pound, making the new price carton seedless cents per pound and seeded muscats cents. Bulk goods were increased cent pound. Choice bulk Thompsons quoted 5% cents per pound, fancy and choice seeded muscats cents pound. Aug. Universal Federal Reserve Bank today shipped trucks Toledo, the request Toledo Banks, to money pay abnormal number of The shipment conducted with the utmost secrecy. but beknown when the trucks wrecked an auto crash driver two guards The money ferred another Four Toledo banks failed to open this morning Directors this action taken protect the banks and stockholders from unprecedented of hysteria.' The four Ohio Savings Bank Trust Commerce Guardian Savings Bank, the Commercial Savings Bank and Trust Company and the Bank. Eleven building and loan associations Akron, Barberton and Cuyahoga Falls temporarily pended cash payments on withtoday. One largest institutions taking the action was the Akron Savings Loan Association. Albright, its president, said: took action the obvipurpose of protecting positors. There no question of insolvency and the suspension cash payments merely temporary." LINCOLN Aug. Associated small state banks failed to open for business today. Charles W. Bryan and Luikart, Department Trade and the closings the result recent bank in

13. August 18, 1931 The News-Herald Franklin, PA
Article from The News-Herald, August 18, 1931

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RESTORED BANKS OF Arrival of $11,000,000 From Cleveland Federal Reserve Eases Situation After 4 Close. $11,000,000 from the Cleveland eral Reserve Bank was credited today with restoring confidence in the stability Toledo's four banks which were with heavy runs yesterday by the closing of four brother Officials of the four solvent banks advised they were in cure position meet any demands and that every depositor who wanted his money could come and get it. The statement resulted the return many withdrawn accounts. Horton Rorick president of the Rorick Trust and Savings Bank, reported ceipt many new accounts with withdrawals exceeding deposits by only slight margin. Meanwhile staff of 60 state and six Federal examiners continued their mammoth task of liquidating the Savings Band and Trust Company, the Commerce Guardian Trust and ings the Commercial Savings Bank and Trust Company, and the American Bank. which with combined of approximately $100,000,000. Banks in Toledo's trade area were reported in good condition today.

14. November 23, 1931 Evening Star Washington, DC
Article from Evening Star, November 23, 1931

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PROSPERITY PLAN WORKS IN TOLEDO Set-up Devised to Make Good All Deposits in Four Big Banks Which Closed. By the Associated Press. TOLEDO, Ohio, November 23.-Without waiting for a return of Nation-wide prosperity to give it a helping boost, this city, hard hit by a series of large bank failures, is pulling itself out of the mire "by its boot-straps." Although approximately $100,000,000 was tied up in the four big banks which closed several months ago, Toledo has kept the wheels of commerce running steadily, and 'now at last things are getting better. Factories are working faster and longer, retail trade is picking up, people on the streets are smiling again, and best of all-the closed banks are expecting to pay a hundred cents on the dollar. The initial dividends of 15 to 30 per cent are scheduled to be paid December 15. Ingenious Scheme Devised. The four large banks which closed, and their approximate deposits, were: Ohio Savings & Trust Co., $36,000,000; Commercial Savings Bank & Trust Co., $17,000,000; Security-Home Trust Co., $20,000,000, and the Commerce-Guardian Trust & Savings Bank, $18,000,000. An ingenious scheme was devised to cope with the problems of these closed institutions. Instead of selling their assets at "distress-sale" prices, special financial machinery is being set up to give the depositors all the ready cash possible, yet save them from the losses of a hasty liquidation. Under the salvaging plan, approved by the State banking department, a new bank and three holding companies are being organized to take over the Ohio, the Commercial and the Security-Home, December 15. Fourth to Be Reorganized. All available cash and prime securities are to be transferred that day to the new bank and credited pro-rata to the old despositors. The initial credit from the old banks will average 20 per cent. The rest of the assets will be deposited separately with the holding companies. The new bank is to be capitalized at not less than $2,500,000, of which half is to come voluntarily from the depositors themselves. The fourth bank, the Commerce-Guardian, will be reorganized under a new name, independently of the others. Its successor also will open December 15, and will put 30 per cent of each old deposit in new accounts.

15. December 18, 1931 The News-Messenger Fremont, OH
Article from The News-Messenger, December 18, 1931

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PAY DIVIDENDS FOR CHRISTMAS TOLEDO, Dec. the way for the distribution of $6,500,000 depositors of three closed Toledo banks before Christmas, Common Pleas Judge Martin today approved the plans for dividend payments arranged by banking officials, per cent dividend payment be made the Commercial Savings Bank Trust Company, and cent dividends paid by the Ohio Savings Bank Trust Company, the Home Trust Company, it anPayment of the dividends by the three closed banks, which recently abandoned plans for consolidating single institution because support from begin next

16. August 11, 1933 Woodville News Woodville, OH
Article from Woodville News, August 11, 1933

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Plant Proceeds Are Distributed The $35,000 proceeds of the sale recently of the W. H. Bruns Hydrated Lime Co. of Woodville to a firm of Toledo attorneys, following receivership proceedings begun in common pleas court in July, 1929, by the F. Bissell Co. of Toledo, a creditor concern, were ordered to be placed in escrow with Clerk of Courts Miss Lois G. Felsted as agent last Saturday by Judge Overmyer. At the same time Prosecutor Frazier B. Reams of Toledo, receiver, was allowed additional fees of $4,750 for his services and his counsel, Attorneys Cotter and McFellin were given additional fees of $3,750 and expenses of $38.50 for their services. Attorneys for the bondholders also were allowed fees of $500. Court costs, together with taxes, both real and personal, and penalties also are to be paid immediately out of the funds in Miss Felsted's hands. Likewise are $5,000 worth of receiver's certflicates, plus $600 interest, which the receiver said Saturday that he could settle by paying to I. J. Fulton, state superintendent of banks in charge of liquidating the closed Commercial Savings Bank & Trust Co., Toledo, both cash claims covering deposits in the bank. The receiver also said he believed he could negotiate with Treasurer Herman A. Kowalk for a reduction in the total due for delinquent taxes by paying them and the penalties at once. Holders of the $150,000 worth of bonds issued by the company in 1926 are to receive the remainder on a prorata basis when they surrender their bonds to the clerk. Labor claims for the period of one year prior to the receivership were found to be subsequent to the mortgage of bondholders and disallowed. Reams and his attorneys each hitherto received $750 for their services. These orders Saturday followed hearings on Reams' application for instructions. He reported the deal with the Toledo buyers as entirely closed, the deed delivered and the money paid in.