21329. Bank of American Fork (American Fork, UT)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
January 16, 1932
Location
American Fork, Utah (40.377, -111.796)

Metadata

Model
gpt-5-mini
Short Digest
5ba7bb7f

Response Measures

Borrowed from banks or large institutions, Full suspension, Books examined

Other: Reopening contingent on RFC loan approval by Salt Lake committee; state banking department to release bank when RFC approves securities.

Description

Newspapers indicate the Bank of American Fork closed with other local banks on January 16, 1932 (closure described as due to rumors and runs) and by May–June 1932 was preparing to reopen contingent on an RFC loan. Cause attributed in local coverage to malicious rumors/nervousness rather than disclosed insolvency. Dates derived from article text and publication dates.

Events (4)

1. January 16, 1932 Run
Cause
Rumor Or Misinformation
Cause Details
Local malicious rumors and falsehoods circulating in the state prompted nervousness and runs on banks in the region, including American Fork.
Measures
Bank closed (suspended payments) along with other local banks; public appeals for confidence published.
Newspaper Excerpt
When the banks at American Fork, Lehi and Provo closed their doors.
Source
newspapers
2. January 16, 1932 Suspension
Cause
Rumor Or Misinformation
Cause Details
Closure occurred amid statewide rumors and damaging untruths that led to runs and forced the bank to close its doors.
Newspaper Excerpt
Which closed simultaneously January 16
Source
newspapers
3. May 7, 1932 Reopening
Newspaper Excerpt
The affairs of the Bank of American Fork are now in such a condition that the institution will be released by the state banking department as soon as the Reconstruction Finance corporation approves the securities submitted for the loan.
Source
newspapers
4. June 3, 1932 Other
Newspaper Excerpt
Reopening of Banks Await U.S. Funds - opening of the State Bank of Lehi the Bank American Fork will be effected as soon received from Reconstruction Finance ... waiting for loan approval
Source
newspapers

Newspaper Articles (3)

Article from The Wasatch Wave, January 29, 1932

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Article Text

FRIDAY 1932 Rumors And White Lies Almost every day the business men of Wasatch County are called upon to trace down some malicious, damaging, untruthful rumor. One day it will the effect that some one of our leading business men is taking out bankruptcy, while the next day the rumor will spread like wild-fire to the effect that one of our stores is about to go into the hands of the receiver or that the Bank is "busted.". The one good think about this is that few any of these rumors have originated in Wasatch County. In each instance the falsehood starts in some remote part of the state and travels swiftly to us. Our busines institutions are in good financial standing and will pull through this terrible depression if the people will support them and have faith and confidence in their officers Certainly it is great handicap to the officials of our institutions to have to finance the same and then fight these perplexing rumors and lies. is fact that most of th Banks in this state which have had to close their doors would have been open and doing business today if some malicious scandel monger had not started false rumors about the banks. thus causing run on them The undersigned are interested the business welfare of Wasatch Coun ty. We do not want our schools to close, our county become bankrupt. pur businedd institutions closed and good name the state completely ruined. We want to pull through this depression in as good shape as possible that we may be in position to take advantage of the up-turn of things when it comes. These rumors hurt us. some instances believe they have been started with the intention of hurting us, and we now call upon all good citizens to have faith and confidence in our own institutions and business neighbors, and promise you if you will do that, you will be benefited financially and will live to be proud of your own ac tions. Any one can be quitter and lie down and say he is licked and give up. Now the time to show your colors and to come to the assistance of your own business interests. Pat ronixe your local stores, your local bank and all other local business in No doubt, they will get along. but they need your dollar NOW Instead of drawing dollar out of the bank. dig down in your old sock and find new dollar to put into the bank Your money is as safe here as would be in any other place in the country The eyes of the entire state are turned on Pleasant Grove today When the banks at American Fork. Lehi and Provo closed their doors. the patriotic people Pleasant Grove got together and unanimously said their bank would stay open, and stayed open and has passed the crisis and the good people of that town have written proud page in the his tory of the State of Utah. and are position now to reap fat harvest for their good work. What they have done. we can do, but we must keep cool, have faith in ourselves and in our fellowmen and refuse to believe and pass these lies and rumors which hear Heber has always been referred to good. live town. We have been called rich community of good sports Let us now prove ourselves Our institutions need us and we need them. Up to date we have stood the test. and our honest belief that will continue to do so. After we have passed through this business depression we will be proud to say the State that while other communities have suffered the loss of store two. ora bankor two, we have emerged with heads up and are in good position to take advantage of the times Step all prosperous rumors and patronize local business institutions loyally, as you would like to be patronized if you were in business. and we will come out all right. Wasatch County Commissioners Wasatch Chamber of Commerce. Heber Lions Club. Heber City, Midway Town. Charleston Town.


Article from The Salt Lake Tribune, May 7, 1932

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Article Text

BANK PREPARES FOR REOPENING AMERICAN FORK-The affairs of the Bank of American Fork are now in such a condition that the institution will be released by the state banking department as soon as the Reconstruction Finance corporation approves the securities submitted for the loan, according to an announcement made Friday by Parker Robinson, deputy bank commissioner in charge of the bank. This paper was submitted to the Salt Lake committee of the Reconstruction Finance corporation on Wednesday and Thursday and expected that their announcement will be made Saturday. The same arrangement is under way for the People's State bank of American Fork and its opening is contingent on the action of the Salt Lake committee for the Reconstruction Finance corporation. With action on these securities and the securing of this government loan, all three banks in the north end of Utah county, the Bank of American Fork, the People's State bank of American Fork and the State bank of Lehi, which closed simultaneously January 16, will open again under regulations set up by the state banking department.


Article from Deseret News, June 3, 1932

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Article Text

Reopening of Banks Await U.S. Funds LEHI, June opening of the State Bank of Lehi the Bank American Fork will be effected as soon received from Reconstruction Finance the Washington, according to reports given Thursday by the banking officials The for the loan being applied for by the American Fork bank was forwarded from Ogden by days unexpected delay following in Salt Lake few and fore should be in Washington bethis Bank officials have every ance that the committee the will without lay the and have ranged for them to wire the results their action as soon as It taken.