17854. Union National Bank (Youngstown, OH)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
13586
Charter Number
13586
Start Date
October 14, 1931
Location
Youngstown, Ohio (41.100, -80.650)

Metadata

Model
gpt-5-mini
Short Digest
e7634b7d

Response Measures

None

Description

The First National Bank (predecessor) suspended on Oct 14/15, 1931 amid runs/tightening caused by the closing of Dollar Savings & Trust and City Savings. The First and Commercial Nationals consolidated and reopened as the Union National Bank on 1932-01-04. There is no article describing a distinct run on the newly chartered Union National after reopening — sequence is a suspension (of the old First National) followed by reopening as Union National.

Events (4)

1. October 14, 1931 Other
Newspaper Excerpt
The First National closed October 15 - with an announcement that it would reopen after consolidation. Later it was explained that the bank was solvent, but had been closed to avert a run because of the closing of the Dollar Savings and Trust Company. The City Savings Bank closed the same day . . . The opening of the Union National to use ly third of the tied up by the closing of the three banks.
Source
newspapers
2. October 14, 1931 Suspension
Cause
Local Banks
Cause Details
Closure and failure of other local banks (Dollar Savings and Trust Company and City Savings Bank) prompted deposit withdrawals and prompted the First National to close to avert/after a run; general local banking failures led to suspension.
Newspaper Excerpt
On the morning of Oct. 14, 1931, Youngstown's three largest banks, with deposits of $60,000,000, failed to open.
Source
newspapers
3. December 31, 1931 Chartered
Source
historical_nic
4. January 4, 1932 Reopening
Newspaper Excerpt
YOUNGSTOWN, Ohio, Jan. 4 The new Union National Bank, formed by a consolidation of the First and Commercial National Banks, opened for business today with $8,000,000 cash on hand and more than $20,000,000 in deposits.
Source
newspapers

Newspaper Articles (5)

Article from The Miami Herald, January 5, 1932

Click image to open full size in new tab

Article Text

MERGED BANKS OPENED IN OHIO Institution Has Deposits and Cash of $20,000,000 YOUNGSTOWN, Ohio, Jan. 4 The new Union National Bank, formed by a consolidation of the First and Commercial National Banks, opened for business today with $8,000,000 cash on hand and more than $20,000,000 in deposits. The First National closed October 15-with an announcement that it would reopen after consolidation. Later it was explained that the bank was solvent, but had been closed to avert a run because of the closing of the Dollar Savings and Trust Company. The City Savings Bank closed the same day Efforts are being made to reopen both the Dollar and the City The opening of the Union National to use ly third of the tied up by the closing of the three banks.


Article from The Daily Illini, February 17, 1932

Click image to open full size in new tab

Article Text

(Continued from Previous Issue) Comparison Youngstown and Sioux City Plans In practically all such the whole the proprietary capital, surplus, and undivided set aside an offset for the losses and doubtful assets of the closed bank. In the of the First National bank of Youngstown, Ohio, which recently by with the Commercial National bank of that city, after the former bank had suspended, found necessary to set aside the whole capital structure the two banks, amounting $5,500,000 offset the losses and doubtful assets the two institutions. This made necessary the recapitalization of the new bank by the sale of stock for cash in the munity to the extent $2,500,000, which divided between capital and surplus for the institution. If possible to raise sufficient amount capital and surplus community by the sale of stock for cash, not always necessary to enter into agreements with the depositors for the control of part of their deposits for waiver portion of the deposits for the purpose of securing capital stock and for liquidating frozen assets the bank. Youngstown banks organized the Union National Bank of and the $2,500,000 of capital and surplus raised by the sale of stock, and with the cash and United States bonds of the two old banks, this bank able with about $8,000,000 in cash items against deposit liability of some In cases where the total capital structure is not sufficient, however, provide for adequate margin against losses doubtful assets through orderly liquidation, necessary for depositors to agree some form of waiver or reduction of their deposits under trustee agreement order to add to the proprietorship items for this purpose. In the form for state banks under the Minnesota state banking department, per cent reduction both current savings deposits may called for, order to provide funds for the liquidation of certain of the doubtful assets of the bank. For the remaining 50 per cent of such deposits the depositor accepts three certificates of deposit, bearing four per cent interest, but repayable one, two, and three years, after the date the re-opening the bank. All moneys collected through the liquidation of doubtful or slow assets of the old bank, distributed from time to time pro rata among the depositors whose funds trusteed in this manner, and only after the depositors have been paid in full do the stockholders of the old bank share in such distribution. In the plan used recently by the First National Bank Sioux City, (Continued on Page Five)


Article from The Indianapolis Times, July 12, 1932

Click image to open full size in new tab

Article Text

BANKS REOPEN THROUGH HELP OF DEPOSITORS Three Closed Institutions in Youngstown Saved by Co-Operation. By Scripps-Howard Newspaper Alliance YOUNGSTOWN, O., July 12.-On Oct. 14, 1931, Youngstown's three largest banks, with deposits of $60,000,000, failed to open. By Thursday of this week all these banks will have been reopened. Back of these facts, believed to constitute something of a record in bank recovery, is a story of community effort and co-operation. On the morning of Oct. 14, 1931, Youngstown awakened to find that only two of its five large banks were doing business. Both together were about the size of any one of the three closed institutions. The larger of the two remaining banks, the Mahoning National, was in good condition. Persons acquainted with the banking situation knew that the other, the Commercial National, was tottering and that its failure probably would be only a matter of days or weeks. Strain Too Great It was the same story that had been told in many other communities. Building and loan associations had ceased paying money to depositors. Bank depositors rapidly were withdrawing their funds. The banks could not stand the strain. before the day was over, plans were under way for bank reopenings. Depositors' meetings were held in various sections of the community. Work was started first on the First National bank, third oldest national bank in America. Stockholders and depositors got together. Federal bank examiners added their co-operation. Stockholders took big losses. New stock was sold. Some large deposits were promised. The Commercial National was absorbed and depositors in that institution saved. A new bank known as the Union National was chartered and opened in the banking rooms of the old First National. A federal bank examiner was made president. Depositors did not lose a penny. Depositors Give Help The problem of the other two banks was more difficult. It was necessary there to tie up some deposits over a period of time. To do this, it was necessary to obtain consent of the depositors. These two banks, the Dollar and the City, were state banks with thousands of small depositors. The task of obtaining depositors' consents for the reopening of the Dollar and the City was conducted like a Community Chest drive. Teams were appointed. Depositors were called on by volunteer solicitors, through the mails and newspapers. This task consumed months, but it went ahead steadily and successfully. In each instance, ap-


Article from Daily Mountain Eagle, August 31, 1932

Click image to open full size in new tab

Article Text

MEMORY In memory of our darling daddy departed this life August 1932. He leaves mourn his death his wife, five sons, three daughters, one sister, six brothers host of relatives and friends. He laid to rest at Sulphur Springs with Bro. Mullinax and Bro. Jim Kimbreli charge of and Professor Flether Gurganus in charge of We want to thank for their sympathy and kindness during the sickness and death of especially Scrivner and Dr. Stephenfor their faithful also thank our friends for the beautiful floral offerings. Daddy, dear, has passed away, He has gone from earth to stay, He with the angles And forever freed from care. His eyes are closed, his voice is His place at home cannot be filied, But he has crown, also harp, And doesn't suffer pain sharp. Dad was always true and kind, A better friend we'll never find, But God's must be done, Dad's pleasures are now begun. Dad loved his children, his companions Dear, But his home come not be here; He loved his blessed Saviour more; He's resting on the shining shore. was hard to say "goodbye" to Dad, It makes all very But when we die surely go, To our Dad that we loved so. Written by his daughter, MARY ANN BARRENTINE POWER OF COMMUNITY EFFORT Youngstown, record in bank recovery wherein community effort was the greatest single factor is believed to have been made in this city recently. Three of the largest banks with deposits of failed to open October 14, 1931. The two other banks, both together about the size of one of the three that failed, open. The larger of the two the Hahoning was in good condition, Act. said acquainted with the local persons banking situation that the smaller bank, Commercial National, was in tottering condition. The same conditions were prevalent Youngstown that were experienced in other places. Building and loan sociations were obliged to stop paying money to depositors. Bank positors acquainted with the serve banking began pulling down upon themselves the structure which held their savings and credit privileges by withdrawing their personal funds. being able stand the strain, the banks closed Immediately on the very day that they closed, cooperative plans were put to work in various parts of city and community to reopen the banks. Because of the character and size of the deposits in the First National Bank, which the third oldest America, the community effort was concentrated on its recovery. Finally, with the aid the depositors, operation of the federal bank examinthe sale new stock and old stockholders sustaining big losses, the promise of deposits the absorption of the Commercial National Bank by new bank known as the Union National, resumed in the rooms of the old First National without penny's loss to the depositors. The problem of opening the other two banks, the Dollar the City, which are state was much more difficult. The collective princiof banking was unknown to their thousands of small depositors, so in order get their consent reopen these banks concerted educational was made. Months were devoted to the task by teams, committees, the use of the mails and newspapers. Ninety per cent of the depositors in these banks finally signed agreement allow their funds to be tied up over period of time. Some help was from the Reconstruction Finance Corporation without the persistent and intelligent community cooperation neither of these banks could have reopened. The Dollar Bank resumed about two months ago, freeing all checking counts part the savings counts. City Bank opened on July 1932, freeing part of the accounts and part of the ings, the remainders being held porarily inactive. Though in each stance stockholders sustained heavy losses, there be no loss to any depositors. It is the opinion of many sound business men that there would be but few permanent bank failures the cash depositors would become and, by withdrawing their funds, destroy the structure of their erstwhile confidence. run on bank by its supporters like munity home dwellers setting fire their just about rational. By the very community by which bank made strong, be destroyed. In principle, not always in bank is munity the community, by the and for the communiOf there are exceptions, in principle. ELDRIDGE GUTTERY IS CALLED BY DEATH On Thursday, July at James Eldridge Guttery passed away from this earthly to ward. The deceased, known throughthis section of Uncle Eldridge, had been in failing health many months and his family and friends had felt that with his advanced age would be difficult him regain his health. He had been confined to the house but was able to sit and talk with friends and neighbors up to the day of his death. It has been the fortune of but few men to have rich leave behind more worthy memory that the good fortune Uncle Eldridge. He had lived in this community for nearly 40 years, being of that sturdy pioneer stock that is SO fast passing among us. Few men more universally loved than this good man Sincerely religious, honest with his fellowman, congenial with all people, industrious and frugal, public spirited without hypocricy sham, he set an example of upright living which was in every way exemplary and noble. James Eldridge Guttery was born November 1852 in Walker County, Alabama. first marriage was to Miss Callie Brazwell in the year 1873. To this union was born six children, three and three girls. On December 11. 1888 his companion passed away and he subsequently married to Miss Raycroft, September 1889. To this union six children were born. In deceased moved to Texas settling near DeLeon at which place he lived for five years and then moved to Jakehamon where he has since resided. Here he been useful worthwhile citizen, alpromoting best interest of his community. He has seen this community grow from small and thinly settied place to well developed community. He served many years as member of the school board in which capacity he was instrumental in curing the location and splendid school building which this community now has. He survived by his good wife, Mrs. Guttery and nine children as follows: Mrs. Maloy, Blair, Okla.; Mrs. Davenport, California; Mrs. Fort, Worth. Texas; Guttery, Giard, Mrs. Effie Kimbrough, Phoenix, Ariz.; Mrs. Mary Gregory, George West, Mrs. Sallie Browning, Desdemona; Roy Guttery, Desdemona. Two children died in infancy oldest son, Guttery died at Quitaque this year. He survived by twenty grand children and three great grandchildren. In this early manhood he professed hope Christ and joined Primitive Baptist Church of which he mained faithful member until death, serving for many years and until called away as deacon. The funeral was conducted at his home under the canopy of the massive oak trees his beautiful country home. Elder Short conducted the funeral where the great concourse of people gathered to show their last respects and the banks of beautiful flowers upon his casket did attest the esteem in which our departed friend held The burial Desdemona cemetery. His family, and his church miss him but memory will ever be blessing and benediction to all will the grief assuage of those who left to mourn his Free Press.


Article from Evening Star, February 27, 1933

Click image to open full size in new tab

Article Text

WITHDRAWALS CUT BY 20 OHIO BANKS Institutions With $815,000,000 in Deposits Await Legislative Action. By the Associated Press. COLUMBUS, Ohio, February 27.Twenty Ohio Banks, all but two in Cleveland, Akron, Dayton and Ycungstown, today placed restrictions on heavy withdrawals in anticipation of emergency banking laws Gov. George White promised to offer to the current Legislature. On the basis of December 31, 1932, statements. the institutions had more than $815,000,000 in deposits and more than $1,025,000,000 in rescurces. Both in Akron and Cleveland, the banks announced future deposits would be set aside and not be placed under the restrictions. All Dayton banks closed for a three-day holiday. One Refuses to Participate. All eight of Cleveland's banks opened as usual, but six of them limited withto 5 per and a seventh, a Trust, drawals deposits, placed temporarily restriction the of Guardian cent 1 per of cent. The eighth, the National City Bank, declined to participate and announced it would conduct business on a normal basis. The six which limited withdrawals cent of deposits were the Bank, National Cleveland to American 5 per Savings Bank, Central Trust United Co., Lorain Street Savings & Trust Co., Society for Savings and Union Trust Co. While they placed no specified limit, the Union National and the Mahoning National Banks at Ycungstown announced they would restrict large and unusual withdrawals. Sufficient funds will be paid cut on demand, they said, to prevent inconvenience to customers. One Per Cent Per Month. Akron's five banks - First Central Trust Co., Firestone Park Trust & Savings Bank, the Commercial Bank & Trust Co., the Dime Savings Bank Co., and the Standard Savings Bank-restricted savings deposit withdrawals. to 1 per cent per month. "Abnormal" checking account withdrawals will not be honored under a complicated system. The four banks of Dayton-the Winters National, the Third National, the Merchants National and the Morris Plan-declared a three-day holiday under a declaration by the city commission and mayor. The Clinton Savings Bank Co., near Akron, announced it would follow the lead of Akron banks. The First American Trust Co. of Lima, Ohio, limited withdrawals to 2 per cent of deposits. There was no announced action to interrupt normal banking elsewhere in the State. Gov. White declined to divulge the nature of the proposed legislation. Manager G. A. Stephenson of the Cleveland Clearing House Association, however, said the suggested laws would "enable the superintendent of banks, with the approval of the Governor and attorney general, to stop or limit withdrawals from Ohio banks."