First National Bank - Cincinnati, OH

Bank Information

Episode Type: Suspension → Reopening
Bank Type: national
Bank ID: 24
Charter Number: 24
Start Date: February 27, 1933
Location: Cincinnati, Ohio (39.103, -84.515)

Metadata

Model: gpt-5-mini
Short Digest: 4ce95dd0

Response Measures

None

Description

In late February/early March 1933 the Cincinnati Clearing House and member banks (including First National Bank) adopted emergency withdrawal restrictions (5% per month) and clearing-house scrip/certificates. The First National initially did not join restrictions but then participated in the scrip plan. This is a temporary suspension-style restriction (not a full failure) and subsequently banks worked toward resumption; classify as a suspension with reopening. Date taken from articles referencing action around Feb 27–28 and March 6, 1933.

Events (3)

1. July 13, 1863 Chartered

Source: historical_nic

2. February 27, 1933 Suspension

Cause: Local Banks
Cause Details: Clearing House members adopted withdrawal limits in response to unrest and heavy withdrawals affecting other Ohio banks and banking communities; action was concerted among local banks/county associations rather than a government seizure.
Newspaper Excerpt: limiting withdrawals on checking and savings accounts to five per cent per month
Source: newspapers

3. March 6, 1933 Other

Newspaper Excerpt: The adopted by the Clearing House Association placed in effect... issuance of clearing house certificates... $1, $5 and $10... fully negotiable... serve[ing] as currency or scrip plan
Source: newspapers

Newspaper Articles (5)

1. February 28, 1933 The Cincinnati Post Cincinnati, OH

Article from The Cincinnati Post, February 28, 1933

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DEPOSITS DECLARED SAFE AS WITHDRAWALS ARE CUT; TRADE GOES ON AS USUAL The Bankers Explain This statement was issued by the Clearing House Association after the decision to limit withdrawals: "Whereas banks the state of Ohio and in other states have established the policy of limiting withdrawal of their deposits and, Whereas this action by such banks and banking communities has led to unusual heavy by depositors Cincinnati banks for immediate and, seems to conserve the banking resources of our community for the best interests of all depositors, without crimination, now it resolved by the Cincinnati Clearing House Association clearing immediately effect the policy cent the the of the bank at the close business this 27th day further resolved that as practicable, suitable steps be taken the percentage deposits to be available and, further resolved that deposits hereafter made be separately credited, shall be in cash and shall be subject to withdrawal by depositors at The First National Bank made the following statement: "The First National Bank of Cincinnati did not join the action the other Cincinnati banks in placing a cent withdrawal reper striction deposits. First National Bank is practically purely commercial bank and has only small amount savings deposits. The First National Bank has therefore placed restriction on ordinary withdrawals the course of business. but exercise the right to its to large and provide the funds for the conduct of business and to take of payrolls and thereby save the public as much inconvenience as possible.

2. February 28, 1933 The Cincinnati Post Cincinnati, OH

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New Accounts, Opened From Now On, Will Not Be Subject to 5 Per Cent Limit, Banking Officials Explain FIRST NATIONAL IS NOT AFFECTED Action Taken by Clearing House Associa- tion After Situation in Other Parts of State Causes Uneasiness There was but one topic of conversation in Cincinnati today. All banks but one had put into effect a ruling made at midnight, limiting withdrawals on checking and savings accounts to five per cent per month on deposits. Thousands of citizens, unable to grasp the meaning of the epochal financial decision, thronged banks learn first hand what all to at it meant. Altho the ruling applied only to Clearing Association members, with the sole of the First Bank, other Hamilton-co banks, which clear thru belonging to the association, also are affected. The exception to the ruling, the First National, felt the inasmuch as it does an almost entirely commercial business, would not be necessary join the other banks in making withdrawal restrictions. Speedy Adjustment Seen Bankers believe business quickly will adjust itself to the new conditions as make apparent. The first need, the bankers agree, in keeping business running is provide facilities for full payroll payments. E. Edwards, president of the Fifth Third Union Trust Co., said Tuesday he did not anticipate many firms will be unable to pay their employes in full. He explained that new deposits will not be subject to the per cent limitation and that these, with the per cent withdrawals allowed on money now in the bank, will be sufficient to meet payrolls most It was learned that firms large on deposit, but with insufficient amounts to meet will be loans. Special allowances, as far practicable, will be made to give demands for payrolls preference, bankers indicated. Mr. Edwards said he anticipates no decrease in the amount of new deposits, emphasizing the fact that money now safer in the banks before. The the he requires that the banks hold the deposits in cash or in erty Bonds. Loan Associations Follow Lead Feeling the repercussion of the action of the banks. Hamilton-co building and their When Monday that the and loan associations be to heavy officials held conference by telephone and agreed to set per cent limit on withdrawals Tuesday. The Eagle Savings & Loan Co. one of the few building and loan associations in the county that holds daily banking the concerted action of the associations by setting a $100 limit on withdrawals Tuke, Eagle company president, said the building associations will be lenient interest payments on loans during the the limitation effect. Mr. Tuke made clear Hamilton-c building associations are in exceptionally good condition, them having made no loans from banks during the last year. Until the building associations this county paying full on demand, those the than year Mr. Edwards the Third Union Trust that the mediate effect the banking limitation local bond and stock market would be depressing Some owners, pressed for large amounts cash, explained. As the current need for cash, however, is met, the market ought to recover, Mr. Edwards Legislature Fails to Act The action of the Clearing House developed Monday within period. At opening of Monday bankers anticipated that the ruling Legislature to liquid position of Ohio banks against the pressure of the banking the day advanced and spreading unrest indicated that Cincinnati faced with heavy Tuesday, the action of the House Association was summarily adopted. By evening the unrest had reached serious demands for money upon building associations that meet Monday night were large. Night Meeting Is Held The statements of the Cincinnati Clearing House and the First National Bank made drawn blinds Clearing House Association offices in First National Bank None House would comment on the possible restricted withdrawals. Altho refusing venture prediction bankers satisfaction that the would "blow over' without injuring the stability of banks. Dupuis cheerful and said: in the least worried about pulling thru It is that the Clearing House Association members will late Tuesday in an effort to set tentative date for the end of the funds received Tuesday and thereafter, until, of lifted, separately Clearing said. deposits retained in cash and shall be to withdrawals by depositors will. Emergency Restriction Work Planned after adjournment bank heads with office Shortly their clerical appear early Tuesday to for the first day's work under the The Clearing House Association Acting ChairCharles D. Dupuis, president the Central Trust Co. man (Continued on Page Two)

3. March 6, 1933 The Cincinnati Enquirer Cincinnati, OH

Article from The Cincinnati Enquirer, March 6, 1933

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Dollar Devaluation Urged By Committee Of Leaders, Headed By F. A. Vanderlip New March valuation of the together with Government of bank deposits, urged today by committee industrialists, farm leaders which Frank Vanderlip Chairman announcing that had adopted the title of for the made public for the time recommendations for definite course of including suspension of specie pay. ments an embargo against foreign shipments of gold The committee is opposed to any atatempt the by inflation of the curprinting open the door dan ger of but. leaving standard through ments, believes study should be given price adjusting the content of the dollar price of the organization had telegraphed its members Congress and the new Administration saying its studies indicated suspension payments wolud followed an upturn prices and The Mr Vanderlip President the Bank of includes Chairman, Roebuck General Presi dent, Sears, President Bendix H. Rand Frederic ChairGeneral Banking Company Dairymen's League Cooperative As sociation, Hammond, Bangor Aroostook Railroad explained that the commithad been formed ago, made intensive study which most of the their time. Na Industrial engaged series While not at first approving Fed guarantee bank the committee that the last few days led March telegraph all Finance of the Senate Banking and Currency Committee House mending adequate Federal guarantee of all existing bank believed, that such action would put the credit unless accompanied Congress, by legislative monetary pro the general point that will keep and the of the under the by the of their The committee declares that bal ancing the budget should firm doubts the possibility declining price level. addition the Directing Com mittee, other the group include Samuel President, Fels Norton Freeport Texas Philip Wrigley William Wrigley D. Miller, National Cooperative Harry Hartke National Cooperative Milk Federation Howard E. Southeastern Cord Corporation President, Car pany: President Taber Master, National Grange every be effort resume soon possible ing the the decree under trust that normal banking business be carried short the benefit con Our banks Cincinnati the cooperation of our customers am the can be President of the Company President's will enable the nation large catch its and prepare plan to meet the on business have great faith in the integrity and statesmanship of Mr Roosevelt people should cooperation government's action The situation Cincinnati due pressure exerted by other We have feel assured banks good and nation tioning the will look for of banking an early on basis. The thing for one do is keep his feet on the ground.' Mayor Russell Wilson has justifiably sumed He has the the the States. the Adminis tration, understand there will issued the of House tificates enable currency will effect and deposits will liquified The emergency ask the citizens of Cincinnati good hope cooperate with the President in way City Manager city will carry usual We along the in any acThe First National Bank joined the other the scrip plan yesterday Under would issued per cent withdrawal by the association The other clearing house banks Second the Atlas Na National, the Central Trust the Fifth Third Un the Savings Bank and Trust Western and Trust Company. Bankers Covington, Ludlow and Ky meeting on the plan by the Clearing House represented the Central Bank and Trust Company Covington Trust Banking Company, First National Bank Trust Peoples Liberty Bank and Trust Company and the Security Savings Bank, the First National Bank Latonia and the First Na tional Bank of The adopted by the Clearing House Association placed in subject now approval disposition the Secretary the Treasury comclearing house effect checks, on the banks, in $5 and $10. These certificates, various colors for denomina tions, have been rated among the member banks, for which the banks have and Interal with the Clearing House The certificates are fully negotiable at stores, and in effect serve currency purchases. Depositors, going to their make withdrawals of the restriction, and to all ordinary purposes the same cash. Backing business ufacturing interests and stores the by the and with the ment predicted the banks here will be and the certificates placed in

4. March 6, 1933 The Cincinnati Enquirer Cincinnati, OH

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give assurance to every one. effort resume bankpossible under the decree, trust that normal banking business be carried short the benefit all Our banks Cincinnati fine and cooperation of our am that the whole can be satisfacEdwards, President of the "In opinion, President's enable the and the nation large catch its breath prepare plan meet the situation on business. have great faith the integrity Mr. Roosevelt. The people should full cooperation ment's action. The situation Cincinnati due the pressure exerted by other We reason feel assured that the banks in shape, and with the nation functioning national plan, the crisis will look for early banking normal basis. The necessary thing for every to is keep his feet on the ground." Mayor Russell Wilson: "President has sumed powers. He become the Commander Chief of the banks the United States. Under the plan of the Administration, understand there will sufficient currency issued the form of Clearing House enable business ceed. Thus currency will effect circulation deposits liquified. The emergency ask the citizens of Cincinnati hope and cooperate the President Dykstra, City "The city will usual with the in any tion." First National Bank joined other scrip plan Under plan the would issued against per cent withdrawal limit by the association. The other clearing house banks are the Second National, the Atlas National, Lincoln the Central Trust, the Fifth Third Trust, the Savings Bank and Trust and the Western Bank Trust Company. Bankers Ludlow and Latonia, Ky., meeting yesterproceed the plan adopted by the Cincinnati Clearing House Banks represented were the Central Bank Trust Company Covington Trust Banking Company, First National Bank and Trust Peoples Liberty Bank and Trust Company and Savings Bank, all Covington, the First National Bank and First Na tional Bank The adopted by the CincinHouse and placed effect, subject approval by the Secretary Treasury, comprises issuance of clearing house certificates, effect cashier's checks, the banks, $1, $5 and $10. These certificates, various colors for the denominations, been among the member banks, for which the banks collateral the House. are fully negoat stores, and effect currency going to banks, make of according the restriction, and scrip, to all ordinary the same cash. Backing business houses, manufacturing interests and stores the obtained the Clearing House, and with the expected Government predicted the banks here be scrip certificates placed circulation.

5. March 6, 1933 The Cincinnati Enquirer Cincinnati, OH

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assurance to every be resume banksoon possible under the the decree, trust that normal banking business can be short the benefit cerned. Our banks Cincinnati very fine condition, and with the cooperation of depositors am the whole situation can be satisfaccleared Edwards, President of the Trust Company: "In my opinion, President's will enable the and the nation large catch and prepare plan on business. great faith in the integrity of Mr. people should full cooperation ment's The Cincinnati due the exerted feel assured that the banks here good shape, and with functioning well-ordered national plan, for an early resumption banking normal basis. The necessary thing for every one do is keep his feet the ground." Mayor Russell Wilson: "President sumed has become the Chief the banks of the United States. Under the plan of the Administration, understand it, will sufficient currency issued the form of Clearing House certificates enable business proceed. Thus currency in effect circulation deposits The emergency been ask the citizens of Cincinnati to with the President Dykstra, City city on usual We the in any tion.' The First National Bank joined the scrip plan Under the plan would issued against the per withdrawal adopted association. The other clearing house banks the Second National, the Atlas National, the Lincoln National, Central Trust, Fifth Third ion Trust, the Provident Savings Bank and Trust the Western Trust Company Bankers Covington, Ludlow and Latonia, Ky. meeting yesteragreed proceed on the plan adopted by the Clearing House represented National, Central Bank and Trust Covington Trust Banking Company, First National Bank Trust Peoples Liberty Bank and Trust Company and the Security Savings Bank, First National Bank Latonia the First Na. tional Bank of The by the CincinHouse Association placed effect, subject now disposition the Secretary of the Treasury, comprises issuance of house certificates, effect cashier's checks, the individual banks, in $5 and $10. These certificates, various colors for the different denominations, have been pro-rated among the member banks, for which the banks collateral with Clearing House. The certificates are fully negostores, and effect currency going banks, make of per the and scrip, all ordinary the same cash. Backing business houses, manufacturing and stores the obtained the Clearing House, and with the expected Government the banks here will quickly and scrip certificates placed in circulation.