17751. Commerce Guardian Trust & Savings Bank (Toledo, OH)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
savings bank
Start Date
June 1, 1931*
Location
Toledo, Ohio (41.664, -83.555)

Metadata

Model
gpt-5-mini
Short Digest
bae68afa

Response Measures

Capital injected, Partial suspension, Full suspension, Books examined

Other: State Banking Department assumed control; reorganization into new bank and holding companies planned.

Description

Commerce-Guardian experienced heavy withdrawals after the Security-Home Trust closing (June 1931), posted a 60-day withdrawal notice, and then was closed/taken over by the Ohio State Banking Department on Aug 17, 1931. A reorganized successor was scheduled to reopen Dec 15, 1931, so the sequence is run → suspension/closure by state → reopening under new organization.

Events (3)
1. June 1, 1931* Run
Cause
Local Banks
Cause Details
Runs and heavy withdrawals followed the closing of the Security-Home Trust Co.; contagion from that bank's failure prompted withdrawals at Commerce-Guardian.
Measures
Announced that 60 days' written notice would be required for withdrawals of savings deposits.
Newspaper Excerpt
Heavy withdrawals from other banks followed, and as a result, the Commerce-Guardian Trust and Savings Bank ... announced that no one could get any money from them unless 60 days' written notice were given.
Source
newspapers
2. August 17, 1931 Suspension
Cause
Government Action
Cause Details
Closed/taken over by the Ohio State Banking Department at the request of directors to conserve assets after steady withdrawals; formal failure to open for business on Aug. 17, 1931.
Newspaper Excerpt
Four major Toledo banks and their 34 branches ... were closed today by orders of the State Banking Department. The institutions were ... the Commerce Guardian Trust & Savings Bank.
Source
newspapers
3. December 15, 1931 Reopening
Newspaper Excerpt
The Commerce-Guardian Trust & Savings Bank ... 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.
Source
newspapers

Newspaper Articles (11)
1. July 3, 1931 The Producers News Plentywood, MT
Article from The Producers News, July 3, 1931

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3RD LARGEST BANK IN TOLEDO CLOSES All Banks Now Ask for Sixty Days' Notice Before Money May Be Withdrawn. Toledo, Ohio.-The third largest bank in this city has closed its doors and three other banks have announced that 60 days' written notice would be required for withdrawals of savings deposits. The Security Home Trust Co., with resources alleged to exceed 36 million dollars, failed to open the doors of its main office and 11 branches, tying up abut $20,000,000 in deposits. Heavy withdrawals from other banks followed, and as a result, the Commerce-Guardian Trust and Savings Bank, the Ohio Savings and Trust Co. announced that no one could get any money from them unless 60 days' written notice were given. The Security Home Trust Co. issued a statement saying that it had closed its doors to conserve the assets and protect stockholders, creditors and depositors. WithS drawals amounting to $7,000,000 in the last few months was said to have been the chief cause for the closing order. The city of Toledo had about $1,500,000 in general revenue and tax funds on deposit in the bank when it closed; the Board of Education had over a million dollars and Lucas county $200,000 on de posit. All these are secured by bonds. Other depositors, mostly workers and small business men d are protected by nothing.

2. August 17, 1931 The Washington Daily News Washington, DC
Article from The Washington Daily News, August 17, 1931

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4 Banks in Toledo, 6 in NebraskaSuspend Ohio Banking Department Takes Action Against Institutions With $100,000,000 Resource By United Press TOLEDO, O.-Four major Toledo banks and their 34 branches, with combined resources of more than $100,000,000 and 150,000 acounts, were closed today by orders of the State Banking Department. The institutions were the Ohio Savings Bank & Trust Co., the Commerce Guardian Trust & Savings Bank, the Commercial Savings Bank & Trust Co., and the American Bank. Other banks remained ópen and announced they were prepared to withstand heavy withdrawals. The four closures were precipated (Turn to Page 4)

3. August 17, 1931 Quad-City Times Davenport, IA
Article from Quad-City Times, August 17, 1931

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Four Banks Are Closed Toledo $110,000,000; Police Prepare for Emergency. Toledo, Aug. Toledo banks with combined resources of more than failed to open for business this morning, while 11 savings associations ceased payments of deposits during the present financial situation. In accordance with the request of directors the four institutions, the state banking department prepared to take over their affairs conserve assets in the face of previous steady withdrawals by positors. City police and detectives troled the banking districts in preparation for any public emergency Meanwhile, there was pending meeting between Mayor W. son and Adjutant General Frank Henderson, Columbus, commanding the Ohio National guard. Late Saturday, directors an nounced closing of the Commerce Guardian Trust and Savings bank, the Ohio Savings Bank and Trust company and the Commercial Sav ings Bank Trust company. Expect to Yesterday, in the wake of these came word from directors of the fourth institution, the American bank, state bank, that it would be forced to close its doors also because its reserves were tied up in two of the banks sus pending operations. It was indicated that conferences relative to reorganization may be started within ten days. Six Close in Nebraska. Lincoln, Neb., Aug. Six Nebraska state banks today failed open their doors for business and both Gov. Charles Bryan and E. H. Luikart, secretary of the state department of trade and commerce, said the closings the result of recent bank sus. pensions in Omaha. Killed by Lightning. H. Broman, 35, of Corydon, was killed afternoon by lightning as he got out of his car to examine damage done in minor accident on highway south Roggan. His wife and small child were uninjured.

4. August 17, 1931 The Evening Sun Baltimore, MD
Article from The Evening Sun, August 17, 1931

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6 SMALL NEBRASKA First Family Of China BANKS FAIL TO OPEN Meets At Mother's Bier Closings Are Called Result Of Suspensions In Omaha Nebraska State banks failed to open for business today. Gov. Charles W. Bryan and E. H. Luikart, Secretary of the State Department of Trade and Commerce. said the closings were the result of recent 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. Four Ohio Banks Remain Closed Toledo banks with combined resources of more than failed to open for business this morning. while eleven saving associations ceased payments of deposits during the present financial 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 by depositors. City police and detectives, acting under orders of Police Chief Haas, patroled the banking districts in preparation for any public emergency. Meanwhile there was pending meeting between Mayor W. T. Jackson and Adj-Gen. Frank D. Henderson. Columbus, commanding the Ohio National Guard. 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, State bank. that it would be forced to close its doors also because its reserves were tied up in two of the banks suspending operaIt was indicated that conferences relative to reorganization may be started within week or ten days. Three Famous Daughters, Two Distinguished SonsIn-Law And Three Sons Gather To Mourn Death Of Mother-In-Law Of Revolution Family' one of their rare reunions in Shanghai tonight This time they gathered around the bier of their mother. Mme. K. T Soong. sometimes referred to as the mother-in-law of the Chinese revoluMme. Soong died in Tsingtao July 23 shortly after receiving word of the attempted here of her son, T. V. Soong. vice-chairman Finance Minister of the Chinese Nationalist Government. The gathering was completed late today with the arrival of Chiang Kaishek, head of the Nationalist Government, from Nanchang to attend the two-day funeral. Chiang Kai-shek is son-in-law of Mme. Soong. Mme. Soong numbered in her family three famous daughters, two distinguished sons and three sons all of whom. gathered at the bier. emphasized how the object of their mourning had wielded an influence on modern China such as few women have exercised in any nation in his- Besides President Chiang Kai-shek ter of Mme. Soong and widow of the founder of the Chinese Republic: Mme H. H. Kung. another daughter and wife of the Nationalist Minister of third daughter: T. V. Soong. Minister of Finance and vice-chairman of the Nationalist and younger sons, T. L. Soong and T. N. Soong. who hold minor Government positions. Daughter Returns From Exile Mme. Sun Yat-sen returned from voluntary exile in Europe to attend the funeral and thus temporarily rejoined the kinsmen from whom she had been politically and spiritually estranged since Today's rites at the Soong home included Christian service. Mme. Soong was a Christian. and reared six children in that faith. It was in her home and largely under her influence that Chiang Kai-shek last year was baptized in the Methodist Episcopal Church South. Mine Soong had been widow since 1928. She will be buried tomorrow. Banking and Insurance. Mr. Bristow said the closing was ordered to protect the depositors of the bank. which capitalized at $250,000. In separate announcement today it was stated that the Richmond Trust Company here had been acquired by the American Bank and Trust Company of Richmond. Officers of the Richmond Trust Company were interented in the Hopewell bank. but the ansaction did not involve the latter institution. it was stated.

5. 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.

6. August 17, 1931 The Evansville Journal Evansville, IN
Article from The Evansville Journal, August 17, 1931

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4 TOLEDO BANKS AIL TO OPEN TOLEDO, O., Aug. Toledo banks combined of more than $100,000,000 failed to open for business this morning, while eleven saving associations ceased payments of deposits during the present financial situation In the request of four the state department prepared to take over their affairs to conserve assets the face of previous steady withdrawals by depositors. City police and detectives. acting under orders of Police Chief Louis Haas, patroled the in preparation for any public emer Meanwhile there was pending meeting between Mayor W. son and Adjutant General Frank D Henderson, Columbus, commanding the Ohio national guard. Last night, Mayor conferred with Safety Director A. Black and Col. Golson D. Light commanding 148th infantry. Ohio national More than 100 rural bankers of Ohio who yesterday with State Superintendent of Banks Ira J. Fulton and Charles Saffin, torney for the department, had their assurance of cooperation by state authorities in meeting local Late Saturday, directors announced closing of the Commerce Guardian Trust and Savings Bank, The Ohio Savings Bank Trust company and the Commercial Savings Bank and Trust company. Yesterday, in the wake of these ancame from directors of the fourth institution, the Bank bank, that it would be forced to close also because its tied in two of the banks suspending operations.

7. August 17, 1931 The Urbana Daily Citizen Urbana, OH
Article from The Urbana Daily Citizen, August 17, 1931

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LIQUIDATIONS BANKS BEGIN National Banks in No List Are Affected. United Press TOLEDO. Aug. maToledo banks and their 34 branches failed to open for busiMonday morning. Every available policeman in the city on duty. but there had been no disorders reported at Groups of people surrounded the doors the banks where formal notices of closing were posted. The banks closed the Ohio Savings and Trust Co., the Commerce Guardian Trust and Savings bank, the Commercial Savings Bank and Trust Co., and the Amerbank The resources of the four institutions given today folThe Ohio Savings Bank Trust Co., according to their last statement June The Commercial Bank. Commerce Guardian Trust Savings Bank, and The American Bank, None the banks closed was national bank Halt Withdrawals The eleven building loan cieties here announced, simultaneously with the closing of the banking institutions, that they would permit no withdrawals until the present situation has cleared. At one of the branch banks threw milk bottle through the window after he had hurriedly scanned the formal closing notice. the only evidence of violence. The Morris Plan Bank and the Industrial bank unaffected by the situation. Planned Merger The Ohio. Commerce Guardian and Commercial banks were closed by their directors special meetings Saturday night, which followed weeks of negotiations the banks in an attempt merge the three institutions. When came apparent these negotiations could not be completed fore the expiration of the 60-day no tification period, placed upon with drawals following closing of the Security Home Trust June decided to close the three banks. The American Bank closed its doors because clears through the Ohio bank and its reserve was the Commercial bank. Closing banks, is believed. will negotiations between the Ohio, Commerce Guardian and Commercial for merger and these negotiations will be pressed with all possible vigor, was said. Conserve Assets Closing the three larger banks ordered, was explained by officers, to conserve assets well permit reorganization plans to continue uninterrupted by heavy run that was pected Tuesday when the 60-day period for deposits pired. Ira Fulton. state superintendent of banks, in charge of all four institutions. He recruited staff of about 100 men over the This corps met Sunday Fulton and assigned duty in the various banks and branches. The men will work connection with the regular staffs of all the closed banks until assets been checked and liquida tion routine has been established. Fulton said that although the banks now in process of liquidation, he not only would approve any feasible plan for merger reorganization, would assist in every consistent with the pol icy of his department to alleviate the situation and restore Toledo's financial structure to normal basis. Directors were emphatic in their declaration that, under normal con ditions. all the banks were solvent and could have continued payment as long depositors demanded their money Hysteria, which fol lowed the closing of the Security bank, precipitated run that has not abated. Neb., Aug. state banks having deposits esti mated an aggregae of $1,120,000 voluntarily closed their doors to The closures according to Governor Charles W Bryan spoke for the state banking department result "of the closing of the Union State Bank of Omaha

8. August 17, 1931 Troy Daily News Troy, OH
Article from Troy Daily News, August 17, 1931

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BRANCHES CLOSE POLICE FORCE NO REPORTED WAS PLANNED Expedite Negotiations Union of Three Institutions, Belief TOLEDO, O., Aug. 17 (United major Toledo banks and their branches failed to open for business Monday morning. Every available policeman in the duty. but there had been disorders reported at Groups people surrounded the doors of the banks where formal tices closing posted. The banks closed The Ohio Savings and Trust the Commerce Guardian Trust and Savings bank, the Commercial Savings Bank and Trust Co., and The American bank. The building and loan societies here simultaneously with the closing the banking stitutions, that they would permit withdrawals until the present situation has cleared. of the branch banks man threw milk bottle through the window after had hurriedly scanned the formal closing the violence The Norris Plan bank and the dustrial bank were unaffected by the situation. The Commerce Guardian and Commercial banks were closed their directorates special meetings which followed weeks of negotiations between the banks in an attempt to merge three institutions. When came apparent these negotiations could be completed before the 60-day notification expiration placed upon following the closing of the Security Home Trust June was to close the three banks. The American bank closed doors because clears through the was the Commercial bank. the believed Closing negotiations between the Ohio. Guardian, and Commercial for merger and these negotiations will be pressed with possible Closing of the three larger bank ordered. was explained by ficers, assets well permit reorganization plans by heavy continue that Tuesday run the 60-day period for withwhen drawing deposits expired. closing of the Security Following Home Trust Co., heavy runs were made all other banks the city and the only wav financial disaster avoided that time was in the ban on withdrawvoking Ira state superintencharge of all dent institutions. recruited four of about 100 men over the staff This corps met Fulton and was assigned the various banks The men will work connection with the regular staffs the closed banks until assets (Continued on Page

9. 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

10. August 18, 1931 The Spokesman-Review Spokane, WA
Article from The Spokesman-Review, August 18, 1931

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FIVE BANKS FAIL, TOLEDO IS A-BOIL Merchants Abandon Any Attempt to Succor Ruined Institutions. WILL LEND TO NEEDY Six Nebraska Banks Close Doors -Ohio Loan Groups Clamp On TOLEDO. Ohio, Aug. 17. dustrial and leaders rapidly to aid depositors after four large banks and one small had closed the last 24 hours. The last bank to close was the Point Place State, which opened December 1929, with capital, $5000 surplus and about $80,000 To minimize hardship among an depositors affected by the the five institutions, members of the and Manufacturers' association decided that would aid their unemployed workers with small loans whenever The decided it was imto to raise funds from the to aid concerns It was this would require at least $5,000,000. pension of industry here was not anticipated. Several truckloads of money were rushed from the federal bank at Cleveland to aid the banks The section was crowded all day with depositors and the merewho read the closing notices posted on the doors of the Commerce Guardian Trust and Savings bank, the Ohio Savings Bank and Trust the ings Bank and Trust company and the The four banks combined sources of $100,000,000 and deposits of around $80 Loans Groups Lower Bars. Aug. 17. Twelve and loan of Akron and Cuyahoga Falls today served their depositors with notice of temporary suspensions of withdrawals. The companies involved carry deposits of A. E. Albright secretary of the largest, today said "the step is taken for the purpose is protecting the depositors. There no question of insolvency Six Banks Fail. Neb., Aug. 17. Nebraska state banks failed to open business today. Governor Charles W. Bryan and E. H. Luikart. secretary of the state of trade and said the closings were the result of recent bank suspensions in Omaha. The six banks had total deposits of They were the First State bank of Pleasant the Dwight State bank Dwight, the Brainard State bank Brainard, the Bruno State bank the Butler County bank of Davis City and the Leigh State bank of Leigh. One-third the population of the United States. persons, are transported on street cars every year.

11. 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.