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,
16029. Italian Discount & Trust Company (New York, NY)
Bank Information
- Episode Type
- Run → Suspension → Reopening
- Bank Type
- trust company
- Start Date
- December 29, 1921
- Location
- New York, New York (40.714, -74.006)
Metadata
- Model
- gpt-5-mini
- Short Digest
4a3e5bcb
Response Measures
Full suspension, Books examined
Description
Multiple contemporaneous reports state the Italian Discount & Trust Co. closed its doors after a short run on Dec 29, 1921, prompted by the suspension/failure of its correspondent parent bank in Rome (Banca Italiana di Sconto). The New York State Superintendent of Banks took charge and payments were suspended for the day. The company was released and reopened Feb 15, 1922. Cause classified as correspondent (failure/suspension of parent bank in Rome).
Events (3)
1.
December 29, 1921
Run
- Cause
- Correspondent
- Cause Details
- Run triggered by news of the suspension/closing of its correspondent parent bank in Rome (Banca Italiana di Sconto).
- Measures
- Payments suspended for the day; state Superintendent of Banks requested to assume control; police reserves posted at branch.
- Newspaper Excerpt
- the Italian Discount and Trust Co. ... also closed its doors today following a run.
- Source
- newspapers
2.
December 29, 1921
Suspension
- Cause
- Correspondent
- Cause Details
- Suspension followed the run and the related failure/suspension of the Banca Italiana di Sconto in Rome, with which the New York company had large credits.
- Newspaper Excerpt
- Company officials said that payment had been suspended for the day and that a statement would be made later. George V. McLaughlin, state superintendent of banks, took charge of the institution.
- 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. The company has cash on hand and in approved depositories ... to pay all dollar deposits ... the Superintendent of Banks has released the company from supervision with a clean state.
- Source
- newspapers
Newspaper Articles (19)
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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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(BULLETIN) !INTERNATIONAL NEWS SERVICE NEW YORK, Dec. 29. - The Italian Discount & Trust Company at 399 Broadway, was closed this afternoon by the state banking department following a "run" on it by depositors. The institution was the New York agent of the Banco Discor ) of Rome, which suspended today. The Italian Discount and Trust Company has a capital of $1,000,000 and deposits of more than $12,000,000.
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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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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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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.
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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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Causes Stir in Italy ROME, Dec. 29 (By The Associated Banca closing of the di Sconto to-day a stir in Italian siderable Italiana Press).- created financial con- cirbank includes in its holdings in the Ansaldo the great shares cles. The are among and Ilva Italian groups, inconcerns. The on of did not cause any which payment dustrial suspension runs other institutions. agency says Italian has taken to The Stefani government the that steps bank the guarantee the creditors of against losses and eventually to place the bank in a more favorable position. No efforts were made until the eleventh hour to save the institution from closing its doors by 8 consortium of banks. The sum was lire, but not all met for aid 200,000,000 other the appeal and required the the Banca banks Italiana di Sconto closed its doors. LONDON, Dec. 29.--A dispatch to the Central News from Rome says a syndicate of banks there has collected 180,000,000 lire to restore the Banca Italiana di Sconto. The dispatch adds that "El Epoca" announces that an agreement has been reached with the current creditors of the bank. WASHINGTON, Dec. 29 (By The Associated Press). The failure of the Banca Italiana di Sconto has a political connection, it was stated in Italian official circles here, since it was started and controlled by ex-Premier Signor Nitti and his friends, especially Senator Marconi, the wireless expert, and Marquis Medici, a former Deputy of Rome. The affairs of the bank may the existence of several subsidized by but will not newspapers also tIalians affect said, it, have prominent serious consequences on the standing of the other Italian banks. News of a financial crisis in Rome and the closing of the Banca Italiana di excitement in Italian when it reached A large crowd quarters yesterday. Sconto caused of New Italians Italian York about offices of and Trust and 2242 First Discount gathered Broadway Company, Avenue. the at No- 299 tices on windows of of Italiana di the posted Banca Sconto each York notified branch State depositors that the New Superintendent of Banks had taken charge. later announuced that George V. State of had been It Banks, McLoughlin, was requested Superintendent by the branch managers to assume control. It WAS said the doors would remain closed pending investigation of the situation involving the parent institution. Police Reserves Called Police reserves were sent to the corner of Broadway and Walker Street, where several thousands of the bank's customers congregated, demanding to know the meaning of its suspension. The crowd was constantly augmented on inrumors that other financial stitutions were involved and difficulty was experienced in dispersing the gathering. Announcement was made later by patrolmen from the Beach Street station, who were posted at the doors of the Broadway branch, that it would reopen to-day. branch is a district as the The heart Harlem of known situated "Lit- in tle Italy." Here practically the entire dispopulation gathered in excited cussion of the situation. The effect in the money market was immediate. Italian exchange, already weakest of Allied remittances for the docal field, dropped 10 points, to 4.23, when the news was received. Other European exchanges reacted in sympathy. Guglielmo Marconi, wireless inventor, president of the board of directors which is of the Banca Italiana di Sconto, of formed in 1915 by consolidation was several older financial institutions. that It was said by officials last night the bank had more than 150 branches in Italy, as well as many in France, French Spain, Turkey, Brazil and the paidcolonies. The institution had a capital of 315,000,000 lire, a reserve about of up 68,000,000 and cash deposits of giving 3,540,000,000 lire. Pamphlets in this and other information were circulation in the Harlem Italian quarter yesterday. The Harlem Branch of the Banca di Sconto does a heavy remittances to accounts. Savings Italiana ness savings in Italy depositors and for busi- ex- in in shouted of closed doors planation thousands demands 104th and Street police from the East station under hands full in police reserves had their Captain secretary maintaining Loonan and order. H. J. Connolly, treasurer of the bank, issued this statement: "Owing to reported closing of the Banca Italiana di Sconto in Rome, with which the Italian Discount / Trust Company has large deposits, the diboard of directors of the latter rected suspension of the trust company's operations and requested the State Superintendent of Banks to take
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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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ROME BANK CLOSED Modified Moratorium Granted the Banco Di Sconto By Government. [Associated Press Disratch. I Rome. December 29.-The Banco 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. There had been reports for several days that the bank's affairs were in a rather serious way. Therefore, the government decided to introduce the partial moratorium as a means of helping the bank to deal with the pressing demands for payment. The branches of the bank have been closed throughout Italy. New York, December 29.-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 $75,000 and deposits of about $1.000,000,000. Company officials said that payment had been suspended "for the day" and that a state ment would be made Pater.
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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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The detachment of the United States from the economic involvements of Europe is shown by the fact that the suspension of the Banca Italiana di Sconto had hardly any effeet here except as it compelled the Italian Discount and Trust company of New York to close its doors. pending definite news from the Banca di Séonto, with which in the course of a its business it .had accumulated large credit. The deposits of the New York concern are about $12,000,000, and those of the Italian bank stood at 3,58,745,227 lire, according to its statement of May last. Its paid-up capital was 315,000,000 lire, and it had reserve of $8,000,000 lire. Marconi a "wireless" fame was its president and of it had 150 Italian branches and in Paris, Marseilles, Barceoffices Constantinople, Tiflis, Tunis, Sao lona, Massowah, Rio de Janeiro, Santos, cities. Paulo and many other foreign Italian government has declared the The moratorium applicable only to It is debts a of the Banca di Sconto. as was at first reported, a mora- due not, which applies to all debts to torium, Italy, and its purpose appears bank's in been to camouflage the susembarrassment have by legalizing its pension. The affair would seem to resolve it. a highly speculative episode, at if into (calculating the lire even of but presently as depreciated value exits cents) the liabilities involved lightceed 4.30 $160,000,000, it is not to be ly regarded. one realizes that at some Every not far distant the fool's Europe paratime paper money in which and dise of living, will be wiped out is now shall be fortunate indeed if no in we of its collapse is national felt repercussion country. The French this now about 328,000,000.000 francs, and has debt, is before stood the at about war, 28,000,000,000 francs been increased francs by 146,000,000,000 German the armistice. The shows since statement of December 22 bank further increase of about 6.000,000.a the paper marks outstanding. the in being now 109,000,000,000. has trillions of paper Austria that are almost the circulation total crowns worth- is in and in Russia the situation less. worse, for the soviet governeven admits having issued 11.152.000.- four ment 000.000 paper rubles in the last years. Paper Obligations hope that this mass of paper at To can ever be redeemed obligations theoretical value in gold is later fattheir and foolish. Sooner or formally nous must be soaled down or seen repudiated. they and it remains to be counthe result will be in this since what The best opinion is that many try. generally realized here that it is governments are practically insolvency Curopean a confession of will be lankrupt is discounted and the effect negligible. it is just as well that we should But be over confident. for it deflation. is quite not that European sporadic possible it comes, will develop simwhen of financial weakness here Italian eases the suspension of the New Discount 21 to and Trust company in York. being prepared for such ourselves. occurBy we shall protect written rences, this word of caution is in reand the attitude of France proposals because to accede to the the fusing at Washington for limiting and auxmade of submarines somewhat construction vessels is creating a in coniliary situation when taken announcedifficult with Germany's will not function that she cannot and payment further reparation ments 15. She make any after meeting the installment claims to due on the equivalent of ave marks. equal the year paid gold January to 200.000,- 47,000.600.000 gold dollars. during all she can 00.000 and insists that this total of the 1921, the present. The American Co for chronicled in the less payments however, much newspapers is. than the sum of mentioned. Ghandl's "non-co-opThe spread movement in India. a serious that erative" uprising of the natives to suppress in Egypt by the the English had an anarchistic outbreak that use of arms, and Lenine's boast 1,500,000 in Portugal "Red" army of next the Russian be largely increased with by the HTEN will that it may contest the domisummer imperialistic entente for complete eastern world, has of the picture which the background the nation transatlantic gruesome the of story for its the starving peasants and are that become cannibals rating Volga have the flesh of their companions as they die. Holiday Sales Large portrayTurning from this is gloomy exhibited only al, in a which spirit I of repeat caution, it is pleasant
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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.