2414. Bank Bay Biscayne (Miami, FL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
June 11, 1930
Location
Miami, Florida (25.774, -80.194)

Metadata

Model
gpt-5-mini
Short Digest
55d4231c

Response Measures

Borrowed from banks or large institutions, Public signal of financial health, Full suspension

Other: State comptroller took custody / liquidator appointed; federal reserve sent cash by airplane and train

Description

Articles (June 11-13, 1930) report heavy withdrawals and 'unfavorable talk' leading directors to suspend the Bank Bay Biscayne and place it in the state's hands. Federal and local cash shipments helped stabilize other banks, but Bay Biscayne remained closed and entered liquidation (state liquidator, later litigation and criminal charges against officials). Thus a run triggered suspension and permanent closure/liquidation.

Events (7)
1. June 11, 1930 Run
Cause
Rumor Or Misinformation
Cause Details
Heavy withdrawals triggered by 'unfavorable talk' and public uneasiness (lines of depositors); reported as caused by rumor/unnamed talk rather than an immediate disclosed insolvency.
Measures
Directors ordered suspension for protection of depositors; state placed the bank in its hands; large cash shipments to Miami to steady the banking situation.
Newspaper Excerpt
recent substantial withdrawals ... Pursuant authority from the comptroller, this bank has suspended and the hands the state bank and reports of lines of depositors withdrawing accounts
Source
newspapers
2. June 11, 1930 Suspension
Cause
Rumor Or Misinformation
Cause Details
Suspension ordered by directors after substantial withdrawals and public uneasiness ('unfavorable talk') to protect depositors; state subsequently took control/placed bank in hands of state officials.
Newspaper Excerpt
Bay Biscayne and Subsidiaries Placed in State's Hands ... notice posted the door read: Pursuant authority from the comptroller, this bank has suspended and the hands the state
Source
newspapers
3. June 13, 1930 Other
Newspaper Excerpt
$8,000,000 in Cash Stems Heavy Runs on Banks in Miami - Arrival ... was believed to have stemmed the tide of anxious depositors who formed in line at the city's larger banks yesterday to withdraw their accounts; only the First National reported continued withdrawals today
Source
newspapers
4. August 8, 1930 Other
Newspaper Excerpt
Warrant Issued For Florida State Comptroller's Arrest ... charging State Comptroller Ernest Amos with malfeasance connection the liquidation of the suspended Bank Bay Biscayne issued today application depositor.
Source
newspapers
5. August 13, 1930 Other
Newspaper Excerpt
Prosecutor Asks Dade County Fund For Bank Inquiry ... special prosecutor named to conduct an investigation the bank's affairs ... millions dollars appears assets demand notes owed the bank by corporations ... proceeds of the organized the bank take over proceeds
Source
newspapers
6. August 14, 1930 Receivership
Newspaper Excerpt
Charles Ball of Scranton, federal receiver to displace the liquidator of the closed Bank Bay Biscayne dismissed by Judge ... Ball's was to aid in the collection judgment had obtained County Circuit court against the bank and asked federal receiver grounds that the state liquidation would not conserve assets for the benefit creditors. ... Therrell, liquidator of the bank, paid the judgment
Source
newspapers
7. May 30, 1931 Other
Newspaper Excerpt
LAWYERS REVIEW GILMAN EVIDENCE ... Preparing To Resume Taking of Testimony ... officials of the closed Bank Bay Biscayne ... charged with making false entries ... interborough rapid transit bonds were shown to have cost ... when they had actually cost ...
Source
newspapers

Newspaper Articles (7)
1. June 11, 1930 The Miami News Miami, FL
Article from The Miami News, June 11, 1930

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Article Text

$2,000,000 in Cash Aids Miami People After Bank Closes SLAIN REPORTER. victim of unknown gangster, whose murder has aroused Chicago. Bay Biscayne and Subsidiaries Placed in State's Hands OTHER HOUSES ARE SAID IN GOOD SHAPE Penney Interests Assert City National Ready to Pay Customers Full resources of the federal reserve system being brought into play today to steady the banking situation in Miami and to counteract any by the closing of the Bank Bay Biscayne. With $2,000,000 arriving by airplane from Jacksonville and several million dollars scheduled train tomorrow. according E. Romfh. president the First National. officials their belief that the further closings will be avoided. Between 8,000 and 10,000 persons, according unofficial be affected in Greater Miami the closing of the Bank Bay Biscayne, ordered by the directors "for protection depositors. Three subsidiaries the bank, the Miami Beach Bank Trust Co., the Bank Coral Gables the Trust also were included in the closing order. "As for the First National and its subsidiaries, Mr. Romfh continued, "they will We have the money meet the last depositor, if necesand are in condition to meet all At the same time. James Cash the Hugh City National president, as folhave just learned with regret of the faces of our friendly competitors, an which the of Miami, Should their any the minds the the City National which am chairthe board directors. you are hereby authorized reaffirm in my previous published statement that am squarely back of the City National bank and suggest that impress depositors the fact that ample funds are available meet demands that may be made upon Mr. Gordon added of regret very much that our friends. the Bank Bay Biscayne. have had close their doors. The City National bank is prepared meet any demands that may be made upon cash position entirely satisfactory. and trust our althe trouble the Bank of Bay Biscayne any uneasitheir money is for them if they Hill. president of the Third National bank said made withdrawals at this time making serious take. his to pay with the funds by of being able every full. Mr. Gilman's follows: of the directors this after with the state bank and its affiliated the Biscayne Trust Miami Beach Bank Trust and the Bank Coral Gables. order protect all of our depositors to the fullest "This decision made after due consideration was due recent substantial withdrawals The notice posted the door read: "Pursuant authority from the comptroller. this bank has suspended and the hands the state bankON PAGE ELEVEN)

2. June 12, 1930 The Herald Statesman Yonkers, NY
Article from The Herald Statesman, June 12, 1930

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Article Text

CASH BY AIRPLANE TO STRENGTHEN BANK Miami. Fla. June 12 (UP).-The arrival of $2,000,000 in cash by airplane and several reassuring statements by State banking officers helped today to allay the uneasiness of depositors who had funds in five banks which closed here yesterday. One of the banking officials insisted the not acute, and declared the conditions which led to the closures would have adjusted themselves if there had not been unfavorable "talk," some of it by bankers The banks which closed were the bank Bay Biscayne with of $17,182,292 the Biscayne Trust Company $1,962,148; the Miami Beach Bank and Trust Company. with $2,593,281 the Bank of Coral Gables, with $743,759. and the Bank of Homestead Local bankers said they were confident normalcy would be restored promptly when the public understood the cause of the heavy run made on the institutions. They had the assurance of aid from the Federal Reserve if it were needthey said. ESKIMO DENTIST DEAD Ottawa, Ont., June 12 "Siberian Mike. Eskimo dentist, is dead. Mike. celebrated throughout the Far North for pulling molars. died recently in the Perry River region. according to word here In 1922 the Bay Company sent dentist to Herschel Island to look after the toothaches of its employes. Mike was employed as dental mechanic. When the dentist left the Eskimo kept much of the dental equipment Since that time he has carried on an itinerant practice in the Arctic. Mike spoke several languages, including Russian and English. COSTLY LESSON Buffalo, N. Y., June 12 Fred Denz. 69. met two in park seeking an honest man to help them distribute $23,000 to the poor Denz agreed to undertake the responsibility and produced $1,100 of his own money to prove his capacity for project of this magnitude One of the philanthropic strangers took his $1,100. slipped into wallet with the $23,000. patted Denz on the back and wished him luck. Upon opening the pocketbook Denz found two one dollar bills. He said he had never heard of the game

3. June 13, 1930 The Morning Press Santa Barbara, CA
Article from The Morning Press, June 13, 1930

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Article Text

$8,000,000 in Cash Stems Heavy Runs on Banks in Miami Miami area bankers tonight believed they seen the end of the financial flurry caused yesterday by the closing of the Bank Bay Biscayne and its three subsidiaries. The subsidlaries are the Biscayne Trust company, the Miami Beach Bank and Trust company and the Bank of Coral Gables. Arrival here yesterday and this morning of $8,000,000 in cash from Jacksonville and Atlanta was believed to have stemmed the tide of anxious depositors who formed in line at the city's larger banks yesterday to withdraw their accounts. Only the First National bank reported continued withdrawals today.

4. August 8, 1930 Record-Journal Meriden, CT
Article from Record-Journal, August 8, 1930

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Article Text

Warrant Issued For Florida State Comptroller's Arrest Miami, Fla., Aug. charging State Comptroller Ernest Amos with malfeasance connection the liquidation of the suspended Bank Bay Biscayne issued today application depositor. Amos charged specifically violation of statues by ploying and employes the bank to make the liquidators' Although the federal and courts litigation is the criminal action taken.

5. August 13, 1930 The Tampa Tribune Tampa, FL
Article from The Tampa Tribune, August 13, 1930

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Article Text

Prosecutor Asks Dade County Fund For Bank Inquiry Aug ing there are separate items on which desire further determining whether law violathe suspension the Bank Bay Biscayne, Fred Botts, named special prosecutor the governor conduct an investigation the bank's affairs peared the county commission tomake available promptly $6000 appropriation independaudit bank's books. "From preliminary investigation that millions dollars appears assets demand notes owed the bank by corporations apparently ganized the bank take over proceeds of the Botts said. The county commission delayed tion on decision whether not appeal recent court ruling holding appropriation for the audit illegal.

6. August 14, 1930 The Miami Herald Miami, FL
Article from The Miami Herald, August 14, 1930

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Article Text

Holds Ball's Judgment Been Paid and There Is No Controversy. COURT "Courts Will Not Waste Time Under Such Ruling. Charles Ball of Scranton, federal receiver to displace the liquidator of the closed Bank Bay Biscayne dismissed by Judge Halsted Ritter United States Dis- court yesterday. Ball's was to aid in the collection judgment had obtained County Circuit court against the bank and asked federal receiver grounds that the state liquidation would not conserve assets for the benefit creditors. After Ball's Federal court suit was filed Therrell, liquidator of the bank, paid the judgment and interest totaling into the Circuit court this, the defense contended, removed and cause action. thereby killing suit. Judge Ritter sustaining this contention pointed out that Ball has the law of Federal court which he alleges due $urther expenses and cannot seek edy the equity of court. complainant has plain, adequate complete remedy law; judgment been paid there justifiable controversy Judge Ritter ruled. The intervenors, Fred Rossner and the Ethridge Hotel Company, the in support Ball after Dr. paid judgment, are simple contract of the class Ball judgment creditor and cannot maintain the suit alone, Judge Ritter decided. decision followed arguments Monday motion the defendants, the Bank Bay Biscayne and Ernest Amos, to dismiss Ball's petition contained general charges alleged misfeasance and against the state comptroller and alleged knew that the months before the bank officials closed Referring this, Judge Ritter, in his opinion, bill of complaint forth very serious charges against Ernest Amos, comptroller, which equity proper would justified considering, but think proper equitable action was required to the complainant securing his money, careful consideration would be given, clearly appears that the complainant has action law upon surety which ousts equity jurisdiction under provisions limiting equitable jurisdiction. Further, the judgment has paid the money hand the registry state court for what relief could be granted action should proceed conclusion. this court to possession the bank's assets and decree prayed for the order enable the obtain The courts will waste time under such circumstances. case does really and substantially involve dispute troversy properly within the jurisdicthis

7. May 30, 1931 The Miami Herald Miami, FL
Article from The Miami Herald, May 30, 1931

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Article Text

LAWYERS REVIEW GILMAN EVIDENCE Preparing To Resume Taking of Testimony State and defense in the trial James Gilman and W. Gilman, officials of the closed Bank Bay Biscayne, reviewed the results the first four days of the trial and began preparing for the taking of next week. Judge E. Collins of Criminal court the case Thursday afternoon until Monday. are charged with making false entries in statement of the bank's sent to the state December 1929, in which Interborough Rapid Transit bonds were shown to have cost 095.23 when they had actually cost