18806. Lititz National Bank (Lititz, PA)

View Charter #2452 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
2452
Charter Number
2452
Start Date
April 17, 1909
Location
Lititz, Pennsylvania (40.157, -76.307)

Metadata

Model
gpt-5-mini
Short Digest
cb501fc8

Response Measures

Full suspension

Receivership Details

Depositor recovery rate
100.0%
Date receivership started
1909-04-19
Date receivership terminated
1909-12-07
OCC cause of failure
Fraud
Share of assets assessed as good
59.0%
Share of assets assessed as doubtful
6.1%
Share of assets assessed as worthless
34.9%

Description

Multiple articles (Apr 19-20, 1909) report a run the prior week that became heavy and the bank failed to open/closed its doors due to heavy losses from bad investments (local industrial ventures). No reopening is reported; closure appears permanent in these dispatches.

Events (4)
1. February 2, 1880 Chartered
Source
historical_nic
2. April 17, 1909 Run
Cause
Bank Specific Adverse Info
Cause Details
Rumors about the bank's condition triggered heavy withdrawals; underlying cause was bad investments in local industrial ventures (including a starch company) that impaired capital.
Newspaper Excerpt
Rumors have been afloat for some time about the condition of the bank, as the result of a run on the institution last week...there was a run on the institution last week, which became very heavy on Saturday
Source
newspapers
3. April 19, 1909 Receivership
Source
historical_nic
4. April 19, 1909 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank suffered heavy losses from bad investments in local industrial enterprises; impaired surplus and capital, prompting closure/failure to open doors.
Newspaper Excerpt
Lititz National Bank...failed to open its doors today. ...The Lititz National bank of Lititz, Pa., has closed its doors.
Source
newspapers

Newspaper Articles (8)
1. April 19, 1909 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, April 19, 1909

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Article Text

Lititz, Pa., Bank Fails. Lancaster, Pa., April 19.-Lititz National Bank, of Lititz, Pa., failed to open its doors today. It had a paid up capital of $105,000. Rumors have been afloat for some time, about the condition of the bank, as the result of a run on the institution last week. One of the ventures in which the bank was heavily interested, was a starch company. Some time ago, it advanced money to this concern to build a factory in Decatur, Ill. The president of the: bank, Israel G. Erb, and one or more other directors, are directors in the starch company. In banking circles, It is believed the depositors will be paid in full.

2. April 20, 1909 The Bemidji Daily Pioneer Bemidji, MN
Article from The Bemidji Daily Pioneer, April 20, 1909

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Article Text

Pennsylvania Bank Suspends. Lancaster, Pa., April 20.-The Lititz National bank of Lititz, Pa., has closed its doors. It had a paid up capital of $105,000. No statement of the bank's condition has been prepared and the only information so far vouchsafed is that the institution had made some bad investments. These investments are understood to be connected with certain local industrial enterprises which the bank backed.

3. April 22, 1909 The Hope Pioneer Hope, ND
Article from The Hope Pioneer, April 22, 1909

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Article Text

Pennsylvania Bank Suspends. Lancaster, Pa., April 19.-The Lititz National bank of Lititz, Pa., has closed its doors. It had a paid up capital of $105,000. No statement of the bank's condition has been prepared and the only information so far vouchsafed is that the institution had made some bad investments. These Investments are understood to be connected with certain local industrial enterprises which the bank backed.

4. April 22, 1909 Courier Democrat Langdon, ND
Article from Courier Democrat, April 22, 1909

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Article Text

Pennsylvania Bank Suspends. Lancaster, Pa., April 19.-The Lititz National bank of Lititz, Pa., has closed its doors. It had a paid up capital of $105,000. No statement of the bank's condition has been prepared and the only information so far vouchsafed is that the institution had made some bad investments. These investments are understood to be connected with certain local industrial enterprises which the bank backed.

5. April 22, 1909 The Free Lance Fredericksburg, VA
Article from The Free Lance, April 22, 1909

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Article Text

BANK AT LITITZ CLOSES National Institution In Trouble Because of "Bad Investments." Lancaster, Pa., April 20.-The Lititz National bank. of Lititz, failed to open its doors. It had a paid up capital of $105,000. No statement has been prepared, and the only information so far vouchsafed is that the bank had made some bad investments. These investments are understood to be certain:local industrial enterprises which the bank backed. While none of the enterprises which the bank financed have failed, the securities given for the loans were of such a character that the bank could not realize on them. Rumors have been afloat for some time about the condition of the bank. and as a result there was a run on the institution last week. which became very heavy on Saturday, when it was determined to close. In banking circles It is believed the depositors will be paid in full.

6. April 23, 1909 Twice-A-Week Plain Dealer Cresco, IA
Article from Twice-A-Week Plain Dealer, April 23, 1909

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Article Text

HEAVY LOSSES FORCE BANK TO CLOSE DOORS National Institution at Lititz, Pa., Suffers from Alleged Bad Investments-Capital is $105,000. Lancaster, Pa., Apr. 20.-The Lititz National bank of Lititz, Pa., failed to open its doors yesterday. It had a paid-up capital of $105,000. No statement of the bank's condition was prepared and the only information vouchsafed is that the institution made some bad investments. These investments were understood to be connected with certain local industrial enterprises which the bank backed. Rumors have been afloat for some time about the condition of the bank and as a result there was a run on the institution which became very heavy. One of the ventures in which the bank was heavily interested was a starch company, and some time ago it advanced money to this concern. Washington, Apr. 20.-It is stated at the office of the comptroller of the currency that the Lititz National bank recently met with heavy losses which greatly impaired its surplus and capital. At the date of its last report the bank had a capital of $105,000, a surplus of $21,000, undivided profits of $8,776, and deposits of $234,090.

7. April 23, 1909 Little Falls Herald Little Falls, MN
Article from Little Falls Herald, April 23, 1909

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Article Text

Pennsylvania Bank Suspends. Lancaster, Pa., April 19.-The Lititz National bank of Lititz, Pa., has closed its doors. It had a paid up capital of $105,000. No statement of the bank's condition has been prepared and the only information so far vouchsafed is that the institution had made some bad investments. These investments are understood to be connected with certain local industrial enterprises which the bank backed.

8. April 24, 1909 Martinsburg Herald Martinsburg, WV
Article from Martinsburg Herald, April 24, 1909

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Article Text

BANK AT LITITZ CLOSES National Institution In Trouble Be. cause of "Bad Investments." Lancaster, Pa., April 20.-The Lititz National bank, of Lititz, failed to open its doors. It had a paid up capital of $105,000. No statement has been prepared. and the only information so far vouchsafed is that the bank had made some bad investments. These investments are understood to be certain local industrial enterprises which the bank backed. While none of the enterprises which the bank financed have failed, the securities given for the loans were of such a character that the bank could not realize on them. Rumors have been afloat for some time about the condition of the bank, and as a result there was a run on the institution last week, which became very heavy on Saturday, when it was determined to close. In banking circles it is believed the depositors will be paid in full.