Jewett City Trust Company - Jewett City, CT

Bank Information

Episode Type: Run Only
Bank Type: trust company
Start Date: April 23, 1922
Location: Jewett City, Connecticut (41.607, -71.981)

Metadata

Model: gpt-5-mini
Short Digest: 2defb390

Response Measures

Accommodated withdrawals, Public signal of financial health

Description

Articles describe a brisk run on April 22–23, 1922 with large cash payments (~$100,000) after a management shakeup and New York control issues. The bank paid out funds and continued operating; there is no mention of a suspension or receivership and local investors later took control, averting liquidation.

Events (1)

1. April 23, 1922 Run

Cause: Bank Specific Adverse Info
Cause Details: Recent management change and concerns over New York control (resignations of president, vice presidents, secretary/treasurer) triggered depositor anxiety and withdrawals.
Measures: Bank paid out cash liberally (bushel baskets and buckets of coin) and honored withdrawals without questions; later local stockholders took control to stabilize the institution.
Newspaper Excerpt: Close to $100,000 has been paid out to depositors since the institution changed management Friday noon. The run was undoubtedly brisk at first.
Source: newspapers

Newspaper Articles (2)

1. April 24, 1922 Norwich Bulletin Norwich, CT

Article from Norwich Bulletin, April 24, 1922

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Article Text

BUSHEL BASKETS OF MONEY AT JEWETT CITY TRUST CO. (Special to The Bulletin.) Jewett City, April 23.-The Jewett City Trust Co. opened its doors for business promptly at 9 a. m. Saturday. A half dozen or more depositors had been sitting on the steps for an hour. Watches had been nervously consulted, while anxlous glances were directed up and down the state road. The first man at the head of the line was looking for $9.88. He got it as quickly as Paying Teller Dutkowski could write up his account. With an audible sigh of relief this one made way for a man who had $400 to his credIt. He was a bit nervous at first, but he got his coin right off the reel. At this point an automobile drove up, the curb watchers stood aghast, and fell back to a better viewpoint in the street, for behold two men stepped from the machine and carried into the bank two bushel baskets full of bandles of twenties. tens and fives, together with a big galvanized water bucket filled with coin. All day long until 9 n. m. everybody that showed up with a bank book. checks or any commercial paper on any bank, banker or trust company. got their money and no questions asked. The run was undoubtedly brisk at first. and there was surely a little ill concealed anxiety, but there was nothing to it when the real stuff showed up by the bushel. Close to $100,000 has been paid out to depositors since the institution changed management Friday noon. The new bank officials told the Bulletin correspondent that they believed the run was over, and that there would be no rush on the part of the depositors holding many remaining accounts, to withdraw the same. Nevertheless. the talk around the town cannot be overlooked. nor its trend discountenanced. It is believed that the Jewett City Trust Co. must depend for its business support, mainly on the home manufactories and merchants, together with the many local people who are desirous of receiving and enjoying the benefits of a small checking account. At present that support is at least unsteady, according to opinions freely expressed in the borough.

2. May 19, 1922 Norwich Bulletin Norwich, CT

Article from Norwich Bulletin, May 19, 1922

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Article Text

JEWETT CITY A meeting of the stockholders of the Jewett City Trust company was held at 10 a. m. Thursday in the banking rooms of the company in the Rioux block. It was the most important meeting, directly controlling local financial matters, that was ever held in Jewett City. April 22 the president, both vice presidents and the secretary and treasurer, together with the entire local membership of the board of directors, offered their resignations, which were accepted. The reasons given for these resignations was that the local management was not wholly satisfied with the procedure and policies of the New York control. This control exlisted only by the scant margin of two shares. The next day, after this not altogether unforecasted shakeup, the bank stemmed a run upon its deposit accounts to the tune of over $100,000. The deposits at that time would doubtless have been cleaned out but for the fact that there was apparently no end to the currency in sight. Since that time the business of the bank has been as nothing, the comparison appearing in sharper figures, because compared with the first three weeks, when deposits often ran as high as $40,000 in a single day. At the meeting held Thursday morning the New York-controlled stock was taken over by local people, so that now the Jewett City Trust company is home-owned and homecontrolled. In taking up the offer of Thursday the New York people virtually accepted conditions of transfer which they so decidedly turned down less than a month ago. The Bulletin correspondent learned that the meeting was not of the stormy order, also that in relinquishing the control of stock held by them the New York holders stand to suffer no appreciable loss. The meeting spelled the difference between existence and liquidation, and there were none present who were not possssed of a full realization of that current fact. Now it is the plan to hold a meeting next Monday, at which time it will be in order to accept the resignations of the passing officials that have been in charge of the bank since April 24. There will also be an election, and all-round reorganization, a president, two vice presidents and secretary and