Erie Trust Company

Bank Information

Episode Type: Suspension → Closure
Bank Type: trust company
Start Date: September 1, 1933*
Location: Erie, Pennsylvania (42.129, -80.085)

Metadata

Model: gpt-5-mini
Short Digest: a8887e51

Response Measures

None

Description

Article (The Philadelphia Inquirer, 1933-10-12) lists the American State Bank of Erie among 14 'shut banks' for which '100 per cent checks have been mailed for the new deposits.' The piece discusses closed/restricted banks and Department of Banking actions; no run is described. The bank appears to have been closed (restricted) and is having distributions arranged by the banking authorities, indicating a suspension with closure/receivership rather than a temporary run or reopening.

Events (1)

1. September 1, 1933* Suspension

Cause: Government Action
Cause Details: Bank was restricted/closed by banking authorities; Department of Banking arranging distribution of 'new deposits' following closure under Sordoni act and state law provisions about waiting 120 days after closing before distributions are made; payments authorized by state banking department/attorney general opinion and Secretary of Banking actions following closures in September 1933. No run described in the article.
Newspaper Excerpt: the 14 institutions from which the 100 per cent. checks have been mailed ... Erie Trust Company and the American State Bank, both Erie
Source: newspapers

Newspaper Articles (1)

1. October 12, 1933 The Philadelphia Inquirer Philadelphia, PA

Article from The Philadelphia Inquirer, October 12, 1933

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Article Text

14 of Shut Banks Pay New Deposits Continued From First Page partment to wait 120 days before returning any of the new funds to the depositors. Schnader also stressed that the Sordoni act, under which the banks restricted withdrawals, did not guarantee full repayment of new deposits. Checks Go Into Mails A total of approximately $1,045,000 is being paid from the "new deposit" accounts in the 14 banks at once, Dr. Gordon said. Checks were placed in the mails for depositors from these institutions yesterday and today. The 14 institutions from which the 100 per cent. checks have been mailed for the new deposits are: North City Trust Company, Philadelphia; Media-69th St. Trust Company; Conshohocken Trust Company: Miners State Bank, Minersville; Victory Banking Trust Company, Girardville; State Bank of Bank Citizens' Bank of St. Clair; Indiana County Deposit Bank, Indiana; Erie Trust Company and the American State Bank. both Erie: Coraopolis State Bank; Fifth Ave. Bank, Pittsburgh, and the State Bank of Beaver Opinion Is Clarified The statement of Attorney General Schnader follows wish to clarify the opinion of this department regarding new deposits in restricted banks. seems have been misunderstood in certain quarters. opinion relates only to the distribution deposits after restricted bank has closed has nothing whatever to do with the handling new deposits in restricted bank which still open. "The outstanding feature of our opinion of October was to permit the Secretary of Banking to make immediate payment to new depositors the amounts due them. 'When restricted banks closed on September the Department of Banking felt that could not make immediate distribution to new depositors unless this department rendered an opinion authorizing to do The banking laws provide that the Secretary of Banking must weit 120 days after bank closes before making any tribution. The Serdoni act did not expressly contradict this provision Our opinion construes the Sordoni as permitting distribution That is the vital point of the opinion. "The Department of Banking also asked number questions concerning the the amount due to new after a bank has closed its doors. Our opinion answered these questions. Couldn't Run Bank "The Secretary of Banking could not honor checks outstanding when a bank closed. He is allowed by law