Central Savings Bank & Trust Company (Denver, CO)

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Four Denver Banks Close in Two Days; Crowds Panicky

Depositors Start Run on Fifth Bank, But it Continues to Pay Off; No Fraud Found

By United Press

DENVER-Another bank - the fourth in two days-closed here today when the Metropolitan Bank failed to open its doors. Yesterday the Drovers National, Broadway National and the North Denver State Banks were placed in the hands of federal and state examiners.

Deposits Dwindle

James E. Adams, president of the Metropolitan Bank, said his institution had been turned over to the examiners at his request. The Metropolitan several weeks ago had deposits of $400,000, and since then they have dwindled to about $100,000 Adams said. "In view of the bad banking situation here, and to protect the interests of our depositors, we thought It advisable to turn the bank over to state officials," he said.

Crowds Panicky When the three banks closed yesterday, word spread rapidly thru the shopping district and throngs waited for hours in front of the banks, but no word came from examiners. Scores of panicky depositors started a run on the Central Savings & Trust Co., but this bank continued to pay off until closing time, when it was announced the institution was sound. No evidence of fraud has been found. A sudden shrinkage in cattle values is blamed.

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RUN ON DENVER BANKS FORCES 5 CLOSE DOORS

FROZEN LOANS BLAMED; BOOKS TURNED OVER TO STATE BANK EXAMINERS

[By United Press]

DENVER. Colo., Dec. 18.-Five banks have closed their doors in Denver within two days. The Metropolitan State Bank and Capitol Hill today failed to open its doors. Yesterday the Denver National, Broadway National, and the North Denver State Bank all were placed in the hands of federal and state examiners. James E. Adams, president of the Metropolitan bank said today that the bank had been turned over to state examiners at his request. The Metropolitan several weeks ago, according to Adams, had deposits of $400,000 and since that time they have been reduced. to about $100,000. "In view of the bad banking situation here and to protect the interests of our depositors," he said, "we deemed it advisable to turn the bank over to state officials." Heavy Run Develops A heavy run developed this morning when the Central Savings Bank and Trust company opened its doors. It was estimated that 500 persons were waiting in the street in front of the bank. Police were in charge of the crowd and only a few were let into the bank at time. Rumors were afloat all over town and a serious situation was developing with withdrawals increasing at many banks. The Capitol Hill state bank was put in the hands of state examiners shortly after opening this morning when a crowd was found waiting to withdraw their accounts. This makes five banks with closed doors.

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CLOSING OF FIVE BANKS HARD BLOW TO DENVER

All Sorts of Rumors Said to Be Afloat in Colorado City

CHRISTMAS BUSINESS IS STANDSTILL

Police Called to Preserve Order When Run Is Started on Bank

(United Press Leased Wire) Colo., Dec. local bankers and financiers were conference today to devise some means bring an end to the sitnation here that has caused the closing of five banks within two days, hundreds depositors exchanged rumors and discussed their Christmas outlook with their money tied in the closed up The series of bank closings startyesterday when the Drovers National bank. the National bank and the North Denver State closed their doors. Today the Metropolitan State and the Capitol Hill State banks failed to open. The Central Savings bank and Trust company took advantage of law making it give sixty days' notice before their savings accounts. The total amount of deposits tied in the five banks which have closed approximates The greatest excitement prevailed here today that has been seen for Business the Christmas shopping season felt sharply the financial condition. Many persons could not get their refused to spend. front of the Central Savings Trust company, where 500 perthere was much excitement and police were called to order believed that all the small banks in the city will before the day closes take advantage of the sixty day law. According the officials of all but the two national banks that closed yesterday, there is no cause alarm as the banks were placed the hands of examiners to protect depositors. many rumors were afloat throughout the morning that was impossible to check half of them. Employes offices and laborers (Continued Page Three)

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FIVE BANKS UNDER

CLOSING OF TWO BANKS TO RUN ON OTHERS WHICH RE. SULTS IN STATE AND

AL EXAMINERS TAKING CON-

TROL.

Denver. Dec. Press) Five banks have closed their doors in Denver within two days. The Metropolitan State Bank today failed to open its doors. Yes. terday the Drovers National, Broadway National and the North Denver State Bank all were placed in the hands of federal and state examinors. James E. Adams, president of the Metropolitan bank. said today that the bank had been turned over the state examiners at his request. The Metropolitan several weeks ago according to Adams, had deposits of $400,000 and since that time they have been reduced to about $100,000. "In view of the banking situation here and to protect the interests fo our depositors. he said, deemed it advisable to turn the bank over to state officials.' A heavy run developed this morning when the Central Savings Bank and Trust company opened its doors. was estimated that 500 persons were waiting in the street in front of the bank. Police were in charge of the crowd and only few were let into the bank at time. Rumors afloat all over town and serious situation ing with withdrawals increasing at many banks The Capitol Hill State Bank was put in the hands of state examiners shortly after opening this morning when crowd waiting to withdraw their accounts. This makes five banks with closed doors. The Capitol Hill State Bank is small suburban bank.

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FIVE DENVER BANKS CLOSE THEIR DOORS

Last of Group Is Locked Today By State Examiner.

LOANS INVOLVED

Cattle Men Responsible For Drain Which Caused

Bad Situation.

DENVER, Dec ed reports late hour stated tetal nine banks had closed their doors here

DENVER, Dec. 18 Four banks have closed their doors in Denver within days. The Metropolitan State bank today failed to open the Drovers National; Broadway National and the North Denver State bank were all placed in the hands of federal and state examiners. James E. Adams, president of the Metropolitan bank. said today bank had been turned over to state examiners at request The Metropolitan several weeks ago according to Adams, had deposits of $400.00 and time they have been reduced to about "In view the bad banking situation here and to protect the interests of our depositors, he said, advisable to turn the bank over state heavy run developed this morning when the Central Savings Bank and Trust company opened its doors was estimated that 500 persons were waiting in the street in front of the bank. Police were in charge of the crowd and only few were let into the bank time. Rumors all over town and situation was developing with withdrawals many banks. The Capitol Hill state bank was put the hands of state examiners opening this morning when crowd was found waiting to their accounts. This makes five banks with closed doors. The Capitol Hill State bank small suburban bank.

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DENVER BANKS ARE TOPPLING RAPIDLY

Three Failures Yesterday Bring List To Five In Late Weeks

Denver, Dec. 18.—(U.P.)—While local bankers and financiers were in conference today to devise some means of bringing an end of the situation here that has caused the closing of five banks within two days, hundreds of depositors waded through slushy streets and exchanged rumors, discussing the Christmas outlook, with their money tied up in the closed institutions.

The series of bank closing started yesterday when the Drovers National, Broadway National and North Denver State closed. Today the Metropolitan State and Capitol Hill State banks failed to open their doors.

Central Savings Bank & Trust Company took advantage of a law making it necessary for depositors to give 60 days' notice before withdrawing accounts, and thus saved themselves temporarily from going down with the others.

Total amount of deposits tied up in the five institutions amount to about $5,000,000. According to officials of all but two of the national banks which closed yesterday there is no cause for alarm, and the banks were closed to protect depositors.

Denver, Dec. 18.—(U.P.)—Three Denver banks today were in the hands of examiners, from the crashes of yesterday, and two other large financial institutions of the city are closed, with settlement pending, following a double failing a few weeks ago.

The Drovers National bank and Broadway National closed at noon yesterday, when they found they could not meet their liabilities. The North Denver state bank closed last night at the request of its officers, after a heavy run in the afternoon, although no statement was issued by Gorden Hollis, president.

Frozen paper and cattle loans were credited with the failure of the two national banks yesterday.

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FOUR BANKS ARE CLOSED IN DENVER

DENVER, Colo., Dec. 18.—Four banks have closed their doors in Denver within two days.

The Metropolitan State bank today failed to open its doors. Yesterday the Drovers National, Broadway National and the North Denver State bank all were placed in the hands of federal and state examiners.

James R. Adams, president of the Metropolitan bank, said today that the bank had been turned over to state examiners at his request. The Metropolitan several weeks ago, according to Adams, had deposits of $400,000 and since that time they have been reduced to about $100,000.

"In view of the bad banking situation here and to protect the interests of our depositors," he said, "we deemed it advisable to turn the bank over to the examiners.

A heavy run developed this morning when the Central Savings Bank and Trust company opened its doors. It was estimated that 500 persons were in waiting in the street in front of the bank.

Police were in charge of the

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Preacher Stops Run on Denver Bank by Depositing $100

Bishop Rice Then Preaches Sermon to Mob of Panicky Depositors; Bank Is Saved

By United News

DENVER, Colo. What would have been Denver's sixth bank failure in two days was averted dramatically yesterday by Bishop Frank Rice, of the Liberal Church, Inc. Bishop Rice ploughed thru an excited mob of depositors clamoring at the Central Savings Bank, and deposited a $100 note to his account. His action halted a run on the institution. Frenzied depositors looked on the churchman with amazement as he turned from the cashier's window with a smile. He raised his hand and quiet fell.

"See," began the bishop. "I have faith. I have placed my money in the hands of these men. It would be foolish to make a run on this institution. It would be bringing ruin on yourselves. I,beg you to have faith."

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BISHOP HALTS RUN ON BANK BY STRATEGIC $100 DEPOSIT

(By United News Service) DENVER, Dec. 18.-What would have been the sixth bank failure two days in Denver was averted in dramatic fashion here today by Bishop Frank Rice, of the Liberal church, who, plowing his way through an excited mob of depositors, at the Central Savings Bank, deposited $100 note to his account and thereby halted run on the Institution. The agonized depositors looked upon the churchman with amazement as he turned from the cashier's window with smile upon his face. He raised his hand as if to speak, and quiet fell upon the depositors who, moment before, had been fighting back the spectre of a black Christmas Day. "See," began the bishop. "I have faith. have placed my money in the hands of these men. It would be foolish to make run on institution. It would be bringIng ruin upon yourselves. I beg you to have faith.'

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MORE BANKS CLOSE DOORS YESTERDAY

Sixth Bank Remains Open Because of Quick Wit of Preacher.

Denver, Dec. 18. would have been the sixth bank failure in days in Denver, was averted dramatic fashion Friday by Bishop Frank Rice of the Liberal Church, Inc., who forced his way through an excited mob of depositors clamoring the door of the Central Savings bank, made deposit $100 his account, and therehalted run on the institution. have faith. have placed my money in the hands of these men. would be foolish thing to make on this institution: would bring ruin yourselves. beg of you to have No sermon ever had more telling effect and he walked away with the crowd following him. The bank will reopen in days, having taken advantage of the depositors to notice fore withdrawing their funds. In the banks closed Thursday, two more were closed Friday the request of their officers, the Capital State bank and the Metropolitan State bank. both known neighborhood banks and operating in the residence districts. Both declare dthemiselves to be solvent and strong and expect to reopen scon enough securities can be turned into cash to withstand run develops. small run the Metropolitan bank Friday morning, hastening the decision of the officers take precautionary measures. Both institution's will be able to liquidate and depositors will be paid full, according to The total deposits in the five banks now closed amount to nearly five million dollars.

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BISHOP STOPS RUN ON BANK BY DEPOSIT

DENVER. Colo., Dec 19. What would have been the sixth bank fallure in two days in Denver. was erted in dramatic fashion here by Bishep Frank Rice, of the Liberal through in excited may of depositors, clamoring at the Central Savings bank, deposited a $10 Onote to his account and thereby halted run on the The agonized depositors looked upon the churchman with amazement nw he turned from the cashier's win dow with smile upon his face

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BISHOP STOPS RUN ON DENVER BANK IN TIME

(United Dec. Depositors with funds five Denver closed in the past three more Sunday following of bank of ficials that three of the institutions probably would reopen within short However, there was little hope of doing any payment by check. so far the deaffected were concerned. The excitement and panic that prevailed Friday have disappeared as bank examiners continued their inNo was man fest patrons of other banks. brisk run on the Central Bank and Trust company stopped by Bishop Frank Rice the Liberal the bank after he had $100 the Most of the persed Rice's which he assured hearers there was cause for alarm.