Potomac Savings Bank - Washington, DC

Bank Information

Episode Type: Suspension → Closure
Bank Type: savings bank
Start Date: March 1, 1933*
Location: Washington, District of Columbia (38.895, -77.036)

Metadata

Model: gpt-5-mini
Short Digest: c63f9c83

Response Measures

None

Description

Potomac Savings Bank closed its doors in March 1933 and was placed in receivership; articles (1941) describe final dividend payments as receiver winds up the receivership. No run is described in the provided articles. Classified as suspension_closure (suspension leading to permanent closure/receivership).

Events (3)

1. March 1, 1933* Suspension

Cause: Government Action
Cause Details: Closed during the March 1933 bank closures/bank holiday and placed in receivership; remained closed and in receivership thereafter.
Newspaper Excerpt: closed its doors at Wisconsin avenue and M street N.W. in March, 1933.
Source: newspapers

2. November 11, 1941 Receivership

Newspaper Excerpt: Potomac Savings Bank To Pay Depositors Last Dividend... will be disbursed by Receiver Justus S. Wardell to 8,318 depositors, beginning Thursday. ... the bank closed its doors at Wisconsin avenue and M street N.W. in March, 1933. Depositors previously had received a total of 75.5 per cent of their money, so that with this last dividend the total received by them will amount to 81.77 per cent.
Source: newspapers

3. November 13, 1941 Other

Newspaper Excerpt: Receiver Justus S. Wardell started payment today of a final dividend of $126,660 to 8,318 former depositors in the closed Potomac Savings Bank. ... The present dividend amounts to 6.27 per cent of the amount the depositors had in the savings bank when the doors closed in March, 1933. This payment brings the total amount paid to 81.77 per cent. ... The receivership is to be closed out before the end of the year.
Source: newspapers

Newspaper Articles (4)

1. May 18, 1941 Evening Star Washington, DC

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Article Text

Drive Is Launched To Wind Up Last D. Bank Receiverships Final Sales of Assets By Auction Scheduled Before End of Summer By HAROLD B. ROGERS. A concerted drive has been reof launched ceiverships to close Washington all remaining banks under supervision of the controller of the currency, and pay final dividends to depositors before the end of this year. Details of how much more money in the thousands banks may of expect depositors during these the rest were Nor it to of is this possible year not predict available. just final may be various made when in the the payments receiverships. a of "intensive But, it was liquidation" learned, has carried policy been decided upon, and will be out by the receivers in charge. Final sales of assets by auction will of the rest propdispose and held of in the the erty securities receiverships. Proceeds from these sales will be added to assets already on hand, and a determination will be reached as to how much can be paid out to depositors. Among these sales will be that of the remaining assets of the Commercial National Bank, which closed February 28, 1933, on the eve of the bank holiday. Valuable Building Sold. of this bank, Frederick J. will rest Receiver Young, dispose of all the of of the auction at p.m. public the assets 2:30 institution New Monday, York at June at his office, The to avenue 9, N.W. sale 1336 will Court. have One be by District of approved the biggest pieces of property owned by the receivership was rethe bank at cently sold, streets building N.W., and Fourteenth and G the sale approved by court. Final settlement is being made of this deal. Another closed bank whose reassets probably will be disof about the same maining posed time will the Seventh Street Savings S. be Bank, whose receiver is Justus for this Wardell. No definite date sale has been announced. One of the next in line will be the Federal - American National Bank and Trust Co., the largest of all the closed institutions in WashNo date has but ington. been fixed, 15 and it may be between July August 15. Other banks in the hands of Moran Receiver James F. Wardell probably and will Receiver follow suit with final sales during the year, and plans will be made to terminate all receiverships here before January 1, 1942. Commercial Paid 70 Per Cent. Since the Commercial National closed it has paid to depositors cent on of Bank closing, 70 per totaling of deposits $3,938,171. date The of remaining assets on 15, in estimated this receivership value since March sold, including the building, was listed at $681,521. Since the Federal-American Bank 75 closed, depositors funds, have received amounting per cent of their to $6,307,040. estimated Remaining to assets have in March were a value of $187,012. Among the other closed banks in the whose not been are city, yet terminated, receiverships have the District National Bank, which has paid 85 per cent to depositors; the Potomac Savings Bank, which has paid 75 1/2 per cent; the Seventh Street Savings Bank, which has paid 95 per cent; the Park Savings Bank and North Capitol Savings Bank.

2. June 8, 1941 Evening Star Washington, DC

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Article Text

Remaining Property Of 2 Closed Banks On Block Tomorrow Seventh Street Savings And Commercial National Assets to Be Auctioned Proceeding with a program designed to close out the affairs of all remaining banks in receivership in Washington, two receivers will conduct auction sales tomorrow of all assets in two banks. the Seventh Street Savings Bank and the Commercial National Bank. Similar sales for other receiverships will come later. Under plans of the Controller of the Currency, it is intended that a policy of "intensive liquidation" will be pursued and all receiverships closed up here by the end of the year, with final payment to thousands of depositors of institutions closed in 1932 and 1933. The first auction sale tomorrow will be conducted by Justus S. Wardell. receiver for the Seventh Street Savings Bank. He will dispose of the assets at his office, 1429 I street N.W.. at 10 a.m. This receivership already has made available to about 2,500 depositors dividends of 95 per cent for a total of $1,004,517. With proceeds from the sale tomorrow, together with cash already in hand, Mr. Wardell said he expects the institution will be able to pay at least 100 per cent. Final Dividend Near. Final sale of the assets of the Commercial National Bank will be conducted by Receiver Frederick J. Young, at his office. 1336 New York avenue N.W., at 2:30 p.m. tomorrow. Proceeds from this will be added to the cash in hand to result in a final dividend to depositors some time before December 1. Since this bank closed in February. 1933, dividends of 70 per cent have been paid, amounting to $3,938,171. Receiver Young also announced that he plans to sell at auction the remaining assets of the FederalAmerican National Bank and Trust Co. at 2:30 p.m. July 14. This institution. the largest closed bank in Washington. has paid to its depositors dividends of 75 per cent, amounting to $6,307,040. No definite estimate is available as to how much more will be realized by depositors. Final sale of assets in the closed Park Savings Bank will be conducted July 15 by Receiver John F Moran at his office at Fourteenth street and Park road N.W. General depositors in this institution have realized 36½ per cent in dividends. Besides this. a particular group of depositors who had money in the bank when its charter expired in 1929 received about $350,000, which was 26.206 per cent of the "low balance" which these people had in the bank between 1929 and 1933 when the bank closed. Three Others Wind Up. Other banks receiverships which are to be closed out during the year include the District National Bank. the Potomac Savings Bank and the North Capitol Savings Bank. In the case of the United States Savings Bank a Stockholders' Committee is proceeding with a plan for closing out the affairs of this institution and terminating pending litigation. The committee has received signed agreements from depositors who had about $900,000 in the bank when it closed. These agreements waive claims to all interest in excess of 3 per cent. Depositors in this bank have already been paid 100 cents on the dollar on their deposits and by their agreement would get 3 cents more on each dollar. The 17,000 depositors of the closed Franklin National Bank have received 100 per cent on their deposits and it is hoped that interest also due them may be paid later. Those who have not yet received their dividends may call at room 22, 945 Pennsylvania avenue N.W., where the final dividend was first made available late last month.

3. November 11, 1941 Evening Star Washington, DC

Article from Evening Star, November 11, 1941

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Article Text

Potomac Savings Bank To Pay Depositors Last Dividend Payment of $126,660 To Bring Total to 81.77 Per Cent Final dividend in the closed Potomac Savings Bank, amounting to about $126,660. will be disbursed by Receiver Justus S. Wardell to 8,318 depositors, beginning Thursday. Mr. Wardell explained that depositors are expected to come only when thev have received the postal cards notifying them of the exact date their checks will be available. Postal cards now are being mailed out to depositors in groups, several each day. Checks will be available at the receiver's office. 1429 I street N.W. To obtain these checks it will be necessary for each depositor to bring his receiver's certificate. and to relinquish it upon receipt of the final dividend. This last dividend amounts to 6.27 per cent of the amount the depositor had in the bank when it closed its doors at Wisconsin avenue and M street N.W. in March, 1933. Depositors previously had received a total of 75.5 per cent of their money, so that with this last dividend the total received by them will amount to 81.77 per cent. The total amount finally received by depositors in dividends is to be $1,676,623.31. Depositors were asked by Mr. Wardell to come for their checks as soon as possible after notification. The receivership is to be closed out before the end of the year.

4. November 13, 1941 Evening Star Washington, DC

Article from Evening Star, November 13, 1941

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Article Text

Total Based upon reports from individual Christmas Club members and applying these reports to the entire distribution for 1941. Mr. Rawll says the estimated fund of $400.000.000 will be used by the recipients approximately as follows: Christmas purchases. 33.8 per cent: permanent savings, 24.5 per cent: year-end bills, 12.8 per cent: insurance premiums, 11.5 per cent: taxes. 11.1 per cent: education. travel and charity, 3.5 per cent: mortgage interest. 1.7 per cent; unclassified, 1.1 per cent. Potomac Bank Payments Start. Receiver Justus S. Wardell started payment today of a final dividend of $126.660 to 8.318 former depositors in the closed Potomac Savings Bank. Depositors are collecting their money at the receiver's office. 1429 I street N.W., as rapidly as they receive postal-card notice that the payments are ready. The checks will be delivered over a period of several days. The present dividend amounts to 6.27 per cent of the amount the depositors had in the savings bank when the doors closed in March, 1933. This payment brings the total amount paid to 81.77 per cent. the dividends amounting to $1.676.623.31. Patrons should obtain their money as soon as possible. as Mr. Wardell plans to wind up the receivership before the end of the present year. Bayly to Examine Accounts. James Parker Nolan, chairman of District No. 11. National Association of Securities Dealers. Inc., has announced appointment of Martin J. Bayly as field secretary. Mr. Bayly. a native of Baltimore, has spent 20 years in investment accounting work both for over-the-counter dealers and stock exchange members. Mr. Bayly will be the administrative employe in District 11. and his duties will include educational and examination work among members. The territory includes the District of Columbia. Maryland. North Carolina. Virginia and West Virginia. It is the first time the district has had a field secretary. Bankers Choose Detroit. The 1942 convention of the American Bankers Association will be held in Detroit October 4 to 8 President Henry W. Koeneke announced today. More than 100 members of Washington Chapter. American Institute of Banking. will attend the annual oyster supper tomorrow evening at the Hay-Adams House. John Warner, entertainment chairman, said today. Edward L. Hillyer, vice president and assistant trust officer of the Union Trust Co., was given a big surprise today when three Western Union messengers entered his office and sang with great vigor "Happy Birthday to You!" State and municipal financing for October aggregated $67.347.936. as compared with $182,492,835 in October. 1940. according to the Daily Bond Buyer. Busy Trading on Exchange. Trading was heavy on the Washington Stock Exchange today, opening with $1,000 and $1,500 transfers 1/4. in Capital Traction 5s at 105, off Washington Gas Light 5s appeared full in a $6,500 sale at 128 1/2, up a point. Washington Gas common opened with 30 shares selling at 183 and closed with 10 more moving at 1812 Capital Transit was very active 375 shares selling at 16, off half a point.