2602. Farmers Bank and Trust (West Palm Beach, FL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
March 1, 1927
Location
West Palm Beach, Florida (26.715, -80.053)

Metadata

Model
gpt-5-mini
Short Digest
fb33798f

Response Measures

Accommodated withdrawals, Public signal of financial health, Capital injected, Full suspension, Books examined

Other: Armored car delivered currency; wealthy winter residents deposited funds to shore up banks; receiver later appointed by court in May.

Description

A run began in early March 1927 after three other local banks failed/closed, prompting heavy withdrawals (Mar 1–10). The Farmers Bank and Trust initially stayed open with outside cash and deposits but announced it would not open (suspend) around Mar 14, 1927 with plans to reopen within 30–60 days. A receiver was later appointed May 26, 1927, indicating permanent closure/receivership. Cause of run and suspension traced to failures/closures of other local banks.

Events (3)

1. March 1, 1927 Run
Cause
Local Banks
Cause Details
Runs were triggered by the failure/closing of three other local banks (First Bank and Trust and others) in Palm Beach, which sparked heavy withdrawals from Farmers Bank and Trust.
Measures
Armored car dispatched from Miami carrying $2,000,000 in currency; wealthy winter residents and businessmen made deposits and offered funds; organized parade and public demonstrations to restore confidence.
Newspaper Excerpt
Depression and Other Reasons Given As Causes... West Palm Beach, Fla., March First...closed their...the failure of the First Bank and Trust company...large withdrawals by depositors
Source
newspapers
2. March 14, 1927 Suspension
Cause
Local Banks
Cause Details
Management said the closing of three other city banks on the previous Tuesday had forced the bank to remain closed; heavy withdrawals and liquidity pressure cited as reasons for not opening immediately and invoking a temporary suspension (30-60 day plan).
Newspaper Excerpt
The Farmers Bank and Trust West Palm...announced tonight the bank would not open its... 'We plan reopen surely within sixty days, and perhaps within days,' Mr. Reese
Source
newspapers
3. May 26, 1927 Receivership
Newspaper Excerpt
RECEIVER APPOINTED FOR FARMER'S BANK... An order appointing F. A. Gutelius... receiver of the Farmers Bank and Trust issued... on petition asking that (he be) appointed... The petition alleged that the (bank) was unable (to) market its assets... to meet the demands of (depositors).
Source
newspapers

Newspaper Articles (11)

Article from The Barre Daily Times, March 8, 1927

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Article Text

DEPOSITORS COOLIDGE'S SUMMER Who Are Making Runs On President Plans to Go BeTwo West Palm Beach, yond the AlleBanks ghenys ONE IN PALM Depression and Other Reasons Given As Causes West Palm Beach, Fla., March First Bank and Trust Palm Beach and the Northpany Bank and Trust West Palm closed their the First Bank Trust here failed to this on other West Palm Beach banks. Police the crowds charge that gathered in front the instituOfficials the Citizens bank nounced armored car Miami for Palm bearing the large currency bank and the Farmers Bank and Trust Directors the First American and Trust company stated that the bank solvent would opened The stated more legal reserve first American was capitalized $300,000 issued showed: discounts, $3,416,503.52; in bills deposits, The First bank's officers said had closed general three Beach banks last June, the estate, the upheaval the city the failure of the First Bank and Trust company few weeks Lake Worth, contin large withdrawals by depositors the More $10,500,000 has been bank from deposits few months rectors The First Bank and Trust company Palm Beach $50. as surplus and undivided nounced for the closing but lieved that the bank closed in order The bank, which served the part West Palm Beach, believed to closed for the Closing the reorganized First Bank and Trust company Lake Worth weeks ago had appar draw accounts in large sums. FOR AND COOL CLIMATE Has Many Tempting Offers to Utah Washington, March President intends to spend the He has offered states, but has made mind to establish his White House somewhere beyond the AlleOffers that he tempting from the stretch from Michigan He not want spend the sumtoo far away from feels the provide, than the country, any and climate which intends prerequisite of any selection may make.


Article from Birmingham Post-Herald, March 10, 1927

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FLORIDA'S BANK DANGERS ENDED Municipal Rally And Wealthy Depositors Aid Institutions (By Associated Press.) WEST BEACH, March 9. the Farmers Bank and Trust with the closing three banks West Beach Beach, ended an organized parade began keep step as into the bank funds. led municipal band and ended front Farmers Bank Banners declaring have faith in our and Men carried Citizens suffered yesterday opened usual but did run. the did The the two banks failed to open their doors business. About an car carrying $2,000,000 in currency was dispatched from and keep remaining banks closing because Wealthy Palm Beach winter said deposits to help the two withstand the large by leading front of the Farmers Bank and Trust and the inscribed company "Men were prominently the long line withdraw


Article from The Winchester Sun, March 10, 1927

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Article Text

TOURISTS COME TO BANKS' AID Rich Men Offer Support at Palm R. Bradley Lexington One in List. West Palm Beach, March Ready money. incident heretofore this resort for the wealthy. of prime concern in the street regarded apprehensively an abrupt suspension three banks. Millionaire winter visitors, attracted momentarily from their and dances, paused offer financial assistance banks that had the burden of keeping the dollar circulation. Citizens Bank and the Farmers Bank and Trust Gibralter" officials additional funds from which augment consignment $2,000,000 that Tuesday abled them meet withdrawals and remain until o'clock, the regular closing time. The three closed banks, with eapital awaited in by state bank examiners. The First Bank and Trust and the First Bank and Trust Company of Palm Beach failed open Tuesday The Northwood Bank and Trust pended the interest hour after opening. Offers of made several prominent whom had passed through long lines of anxious clients bent withdraw ing accounts, make deposits. Reese. president of the Farmbank. that among who support were John Philadelphia Clark, and Butler. Chicago. Mr. the failures to said there emergency. Whether the volunteer millionaires put their under the financial burden was not made known.


Article from Asheville Citizen-Times, March 10, 1927

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RUN ON BANK AT PALM BEACH ENDS Band Heads Line Of Depositors In Florida City WEST PALM run Bank Company began the West Palm end the street band keep to the bank to The by the through the the the Farmers Bank and Trust claring have faith and by business The Citizens which fered yesterday opened as but not of the bank they a normal The runs on the two banks when three tanks failed to open their doors About noon yesterday armored in currency dispatched from Miami and was time to the two remaining banks from closing be of the heavy run. Wealthy of the Palm Beach ter were said to have made deposits to help the two withstand the large with stitutions organized by Today leading traffic in in front of the Farmers street and Trust and Bank banners men sheep which played in front of the long waiting withdraw deposits. Bank officials tonight said felt crisis had passed and that both banks would have withstanding a run of Wall Street Briefs NEW YORK Initial quar New York stock cents April holders record and on the to stock of record March April Universal Leaf Company = quarterly dividend share stock annual to holders last the per volume the Heavy which Island last five number of owing new Seminole Oklabeen for Revenues from road's said running at the monthly rate of Intercontinental Rubber Company idend March 31 Net profit for declared an five the tra mon stock and the regular of Directors Stanley Company of America today mors huge with the Orpheum and other and motion circuits that was being to further expansion plans, been taken toward


Article from Clarion-Ledger, March 10, 1927

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FLORIDA RUNS THOUGHT OVER AS CASH COMES Wealthy Residents Make Deposits in Financial Insti- tutions TWO MILLIONS COME IN AUTOS FROM MIAMI Busness Men Parade With Signs "Men or Sheep" In Attempts to Stop Crowds WEST PALM BEACH, Fla., Mar run the Farmers Bank and Trust which began yesterday with the closing three banks West Palm Beach and Palm Beach, ended here today when organized parade marched down the street and band began playing march for positors keep step to they went into the to withdraw their funds. parade, led the municipal band, marched through the principal streets of the city ended in front the Farmers Bank and Trust Banners "we faith in banks" and "men ried by business men. Citizens Bank, which suffered prolonged opened usual but did not the said they did usual day's business. The runs on the two banks beyesterday when three banks failed open their doors for business. About noon yesterday an armored car carrying $2,000,000 currency was despatched from Miami and time to keep of closthe ing Palm Beach colony were said made large deposits to help have withstand the the withdrawals. Today's parade, organized by lead. blocked traffic the ing citizens, street in front of and the banners Trust inscribed were displayed in front line waiting to withlong draw its deposits. tonight said Banking officials crisis had passed felt the banks would have that both withstanding run of any trouble if it were to start. size


Article from The Owensboro Messenger, March 10, 1927

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Article Text

Run On Bank Ends When Band Plays March Music West Palm Beach, Fla., Mar. steady on the Farmers Bank and Trust which began with the closing of three banks in West Palm Beach Palm Beach, ended here today when organized parade marched down street band began march for to keep step to they went into the bank to withdraw their funds. The Citizens bank suffered prolonged run yesterday, opened as usual today, but did not witness run. Officials of the bank said they did the usual day's business.


Article from Springfield Leader and Press, March 14, 1927

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THREE BANKS CLOSED PALM BEACH COUNTY WEST PALM March Palm Beach counfailed open their doors today financial sought stave off Farmers Bank and Trust comWest Palm today midnight nouncement that closing local banks Beach bank last Tuesday had precipitated the action. the First National of Ocean Delray did not open this separate actions were made public,


Article from The Kansas City Times, March 14, 1927

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PALM BEACH BANK TO Seventh Ten Financial to Shut Within WEST PALM BEACH FLA. The Farmers Bank and Trust West Palm one of the financial institutions in this of the state, announced tonight the bank would not open Its The statement was made officially President Reese, who declared that the closing of three other banks city last Tuesday had forced this In "We plan reopen surely within sixty days, and perhaps within days," Mr. Reese no whatsoever to forestall our clos had ing and while we safely weathered strenuous made our bank the Tuesday of deposits, we have been time. Three four pressed bank might pulled through this The bank was organized here 1914 an place financial affairs of this more year the bank erected Little million dollars at a principal approximately down closing of this bank leaves three financial tional Bank of West Palm Beach Central Trust Citizens Bank of West Palm of ten which were in operation year


Article from The Tampa Tribune, March 15, 1927

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LOANS ON REALTY BLAMED BY AMOS Comptroller's Reassuring Statement Calls for Co-operation WASHINGTON, March sociated offi. cials tional situation ida, but characterized the condition the national banks there as "generally The closed National Bank, Lake Worth, first institution the state to pend Lee H. Northcott national bank for Florida, charge of bank situation in the state. WEST PALM BEACH, March (Associated Palm Beach county closed Citizens here o'clock requests for drawals. banks in the city did not experience The return normal aided largely by noon from Miami bearing sacks of currency for the Citizens Bank. banks which did not open for The today included the Farmers Bank and Trust the largest institutions here, which announced, interest the positors whom the bank's cent result closing. Plans for the within 30 60 days The First Bank of Lake Worth and the Bank, of banks did today statewas issued regarding closing. Co-Operation Urged here and calling the patrons banks "proper and assuring depositors that the remained will be able to meet every Officials the Citizens Bank pressed to close "The bank will be even stronger than we open again,' officers and directors the Bank Trust an meeting was decided the of estate market that much of the receivables are based on that kind of security State the cause for closings. great withdrawals which are faster than the banks liquidate receivables resulted in the breaking institutions pend, said the comptroller, adding that follow because bank closed that it is evidence of the latter statement, the the opening suspended banks in Florida the last that the of most of the banks has been gravated by the agitation looking any greater financial depression, the will (Continued on Page 10)


Article from The News-Star, March 16, 1927

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NEGROES HEAR IS 'BROKE'; STAGE BIG RUN By Associated WEST PALM BEACH, Fla., March long line of staged steady on the United States postoffice here for withdrawals from the postal savings department today following reports circulated widely through the negro sections during the that "the governgoing broke." More than 100 negroes awaited the opening of the government building and the number increased rapidly for several hours with mild prevailing. half dozen negro with backward and forward their funds intact, but their vain. The run followed closely the closing of the Farmers Bank and Trust here Monday, together with the run the Citizens Bank of West Palm Beach the same day. Negroes reported to have made heavy withdrawals from other banks here at the peak of the recent placing their funds the postal savings. rumor that postoffice dire financial straits brought the run, which continued until shortly before noon. About o'clock, the crowd dwindled quickly. At height of the run white haired preacher, after of his congregation to keep his funds with the sufficiently convinced by the latter that "Uncle Sam losing all his money. The aged minister abruptly ended his futile pleadings and took his place line to withdraw his savings. Police steps curb possibile banditry the negro section, and officers posted to maintain order.


Article from The Palm Beach Post, May 26, 1927

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RECEIVER APPOINTED FOR FARMER'S BANK F. A. Gutelius, Officer of Institution, Is Named By Judge E. Thomas An order appointing F. A. Gutelius. vice president and cashier of the bank. receiver of the Farmers Bank and Trust issued terday by Judge Elwyn Thomas the on petition asking that pointed. which filed my for four depositors of the closed bank. The before Judg Thomas Fort Judge E. of the judicial had order disqualifying himself on the ground that he was bank and interested in the dis its funds. The petition alleged that the was unable the market its and that because of the alleged the doors George George M and Samuel named as complainants in the The to the its on March the its ceeded of sets and date its order to meet the demands of The that bank felt that the positors be better and protected by the appoir of The posting. by Mr Gutelius of bond of $10,000 clerk of the court here required under the order issued by Judge Thomas. The bond, with the American York as was posted yesterday the Harris and Richard Rob bins for the defendant bank