3181. First Iowa State Trust & Savings Bank (Burlington, IA)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: savings bank
Start Date: February 1, 1932
Location: Burlington, Iowa (40.808, -91.113)

Metadata

Model: gpt-5-mini
Short Digest: 60cad02c

Response Measures

Full suspension

Other: Directors suspended operations to 'protect depositors'; receiver later appointed.

Description

The bank suspended operations Feb 1/2, 1932 after heavy withdrawals ('withdrawals had been made faster than notes and mortgages could be liquidated'). Citizens organized a business holiday to avoid runs. A receiver was in place by March 2, 1932, indicating the suspension led to closure/receivership.

Events (4)

1. February 1, 1932 Run

Cause: Macro News
Cause Details: Heavy withdrawals driven by widespread economic distress (Great Depression era panic and unrest from neighboring cities) exhausting available cash.
Measures: Community canvass to secure pledges from depositors; bank directors announced suspension to protect depositors.
Newspaper Excerpt: withdrawals had been made faster than notes and mortgages could be liquidated
Source: newspapers

2. February 1, 1932 Suspension

Cause Details: Directors voluntarily suspended business to protect depositors after rapid withdrawals and general economic distress; city declared business holiday to prevent further runs.
Newspaper Excerpt: directors of the First Iowa State Trust and Savings bank had decided to suspend operation for the protection of its depositors
Source: newspapers

3. March 2, 1932 Receivership

Newspaper Excerpt: KUHLEMEIER IS COUNSEL FOR RECEIVER ... for the receiver in charge the First Iowa State Trust and Savings bank. by Judge James Smyth in district ... The appointment was on the judge's own motion.
Source: newspapers

4. December 15, 1932 Other

Newspaper Excerpt: James Gordon, ancillary receiver for Illinois of the First Iowa State Trust and Savings Bank of Burlington, Iowa, corporation ... Judgment have and recover of the defendant $3,122.85 and costs.
Source: newspapers

Newspaper Articles (7)

1. February 2, 1932 The Courier Waterloo, IA

Article from The Courier, February 2, 1932

Click image to open full size in new tab

Article Text

BURLINGTON, IA., GOES ON BUSINESS HOLIDAY TO CONTINUE A WEEK business with the exception of that deemed strictly necessary began holiday in Burlington and Mediapolis Tuesday while officials began reorganization activities for the First Iowa State Trust & Savings bank which closed Monday afternoon. Danville. Sperry and Middleton, other nearby towns, are expected to join the movement avoid any stringency and possible runs banks which had been partially dependent on the Burlington institution. Only grocery and drug stores, fill. ing stations, schools and postoffices will continue as usual during the week's holiday proclaimed by Mayor E. G. Marquardt Monday. Mean- while employes of closed business houses will help community chest workers canvass citizens asking that they pledge not to withmore than 10 per cent of their deposits when banking institutions next week and that they reopen make their normal deposits. The First Trust & Savings bank was combination of the National State and the First National banks which were organized before 1850 and became national in 1864 der government charter E. S. Phelps. president, in statement explaining the closing declared it was done to protect depositors since withdrawals had been made faster than notes and mortgages could be liquidated. Holiday Also at Danville Brandemeyer Tuesday issued proclamation closing all business places except those absolutely essential The move was taken to prevent run on the Danville bank which was feared because of the situation in Burlington. IOWAN COUNTERFEITER GIVEN 30 YEARS IN PRISON Winona, Minn Spencer of Logan, Ia., charged with counterfeiting. was convicted on three counts in federal court here Monday night and received totaling 30 years and $2,000 fine.

2. February 2, 1932 Globe-Gazette Mason City, IA

Article from Globe-Gazette, February 2, 1932

Click image to open full size in new tab

Article Text

BURLINGTON HAS WEEK'S HOLIDAY Nearby Towns Expected to Join Movement; Plan to Reorganize Bank. BURLINGTON Feb. 2. business with the exception of that deemed strictly began a holiday in Burlington and Mediapolis today while officials began reorganization activities for the First Iowa State Trust and Savings bank which closed Monday afternoon. Danville Sperry and Middletown. other nearby towns are expected to join the movement to avoid any stringency and possible runs on banks which had been partially dependent on the Burlington institution. Only grocery and drug stores. filling stations, schools and postoffices will continue as usual during the week's holiday proclaimed by Mayor E. G. Marquardt Monday Meanwhile employes of closed business houses will help community chest workers canvass citizens asking that they pleage Chemselves not to withdraw than 10 per cent of their deposits when banking institutions reopen next week and

3. February 2, 1932 The Burlington Hawk-Eye Burlington, IA

Article from The Burlington Hawk-Eye, February 2, 1932

Click image to open full size in new tab

Article Text

THE BANKS AND YOU Committees of citizens will start out today calling upon depositors in the banks of Burlington to secure from these depositors pledges of loyalty and to explain to those who do not fully appreciate the fact, that the banks of this or any other community are in the hands of their customers for banks 'can render service to the individual and the community as a whole only to the extent that their customers, the people of the community, have faith and confidence in them. This action was decided upon last evening at a hastily called meeting of citizens, representing every walk of life in the city and as result of the announcement at 3 o'clock yesterday afternoon that the First Iowa State Trust and Savings Bank had suspended business. This leaves three good, sound, solvent banks in the city of American Savings Bank and Trust Company, the Burlington Savings Bank and the Farmers & Merchants Bank. All of these banks have sufficient funds on hand to meet all ordinary and reasonable calls upon the public become panic-stricken, them but, should irreparable damage would undoubtedly be done, not merely to the banks, but to the entire community, which it would take Burlington years from to damage recover. Consequently Mayor Marquardt has issued a proclamation declaring the rest of this week an official holiday in Burlington and business men and their employes will use a part of the time thus given them to call upon the depositors, explain the soundness of the city's financial structure and the importance of making no unusual demands upon the banks at this time. The public should understand the simple operation of the banking business. Unfortunately too many do not and those who do not frequently shake the confidence of others. Money deposited in banks is loaned out to the man who is buying a home, to business houses and industries for expansions, to meet pay rolls and seasonal demands. Much of it is Only inand other sound securities. vested in bonds enough actual cash is carried in the bank vaults to meet the ordinary demands of business from day to day. Now, if. any considerable proportion of bank's depositors demand cash simultaneously, exhausting the cash hand, the bank has but one thing to do, it must demand payment of its loans and this would mean the foreclosing of mortgages and working financial hardships, if not ruin, to the many who have depended upon the banks to carry their loans. Depositors who withdraw money except as actually needed for the transaction of ordinary business at such a time as this are actually working interests and, for selfish interests, their own against if for no other, every citizen should feel an obligation upon him not merely to maintain his balance in the banks of Burlington but to increase that balance if possible. No depositor in a bank of Burlington in the entire financial history of our city has ever lost cent and there is no reason to believe that depositors will lose anything now but in all frankness should be said that much depends upon the attitude taken by the depositors themselves. If they keep their feet on the ground, use sound, common sense, with a realization of the need for a real display of their faith and loyalty, all will come out well. The banks belong to the community. Each citizen of the community has a very personal stake in their welfare.

4. February 2, 1932 The Burlington Hawk-Eye Burlington, IA

Click image to open full size in new tab

Article Text

A By the Mayor. The economic distress of the world and nation has struck with violence in neighboring cities, and has been felt with increasing force day by day in Burlington. This has caused the suspension of business of the First Iowa State Trust and Savings Bank, and it has come to attention that there is consequent unrest among our citizens, which has its effect upon our business, and even threatens the wetfare of our people and the safety of Burlington's business. Burlington business and society rests upon firm foundations, and do not propose to stand idly by and permit anything to create a condition that might seriously affect the social and economic structure of the city and its people. Therefore, G. Marquardt, by the authority in me vested as Mayor of the City of Burlington hereby declare that February 2, and 1932, be legal holidays, and on such days all business conducted within the city be suspended, excepting such as are necessary to our community life and well being. Signed at Burlington, Iowa, this 1st day of February, 1932. Attest: FRANK N. LA POINT. Supt. of Finance. E. MARQUARDT, Mayor.

5. February 2, 1932 The Burlington Hawk-Eye Burlington, IA

Click image to open full size in new tab

Article Text

CITIZENS MEET, PLAN CANVASS OF DEPOSITORS Business Temporarily Halted By Closing Iowa State Bank As the result of the announcement made shortly before o'clock Monday afternoon that the directors of the First Iowa State Trust and Savings bank had decided to suspend operation for the protecion of its depositors. of citizens held last evening at Hotel Burlington and ocmplete confidence was the three remaining banks of the American Savings Bank and Trust Burlington Savings company. bank and the Farmers and Merchants bank. Declare Business Holiday It was also decided by the retail inat the meeting terests present following the proclamation of Mayor Marquardt declaring week holiday, that all retail houses, except those business ally needed to supply necessities community, will of the people closed. It was pointed out that with facilities for days. no banking business would be transacted with best and that greatest difficulty well utilized by the the time could be assistand their employes merchants committee plan in the citizens' ing of bank make thorough canvass from them pledges securing of positors loyalty and confidence the three that banks and assurances named will be no unnecessary there when the withdrawal of funds usual banks reopen for at Work Citizens Committee named last evening The committee committee to take consists of of this work charge

6. March 2, 1932 The Burlington Hawk-Eye Burlington, IA

Article from The Burlington Hawk-Eye, March 2, 1932

Click image to open full size in new tab

Article Text

KUHLEMEIER IS COUNSEL FOR RECEIVER was appointed general and advisory counsel for the receiver and the charge the First Iowa State Trust and Savings bank. by Judge James Smyth in district The appointment was on the judge's own motion. state for the bank Miller is the Mr. member of the firm of Mohland, Fischer and Cray city. of Mr. Andrew, On Judge Smyth also appointed Topping Burlington member the board of appraisers for of the bank sucpersonal property Fowler. Other ceed the late board Beckmembers the and Carspecken.

7. December 15, 1932 Henderson County Graphic-Reporter Stronghurst, IL

Article from Henderson County Graphic-Reporter, December 15, 1932

Click image to open full size in new tab

Article Text

Entered On Circuit By Judge Judge Stevens of Galesburg at adjourned session of the tober term of circuit court at the court house in Oquawka Monday and after which he adjourned Tuesday, court until December 23rd. The following entries were made on the docket on those days: Common Law James Gordon, aucillary receivfor Illinois of the First Iowa State Trust and Savings Bank of Burlington, Iowa, corporation Defendant called Peasley, assumpsit. plaintiff for and by of claim. Moon affidavit judgment allowed. that plaintiff tion Judgment have and recover of the defendant $3,122.85 and costs. Exethe sum of cution awarded. Village of Charity Eckhardt Lomax, trespass. Defendant ruled to plead by December 20, 1932. People of the State of Illinois, on of Mohr vs. Archie Farquhar, information in the nature of quo warranto. Demurrer to plea filed. Parties present by their respective attorneys. Hearing on demurrer. Arguments head. Demurrer sustainMotion by respondent for leave amend plea. Motion overruled for reason that present plea alleges that the board of appointonly part ment took action in the appointment. Judgment of Respondent excepts. ouster on pleadings. Chancery Baldwin Harold BaldBernice vs. divorce. Hearing on petition win, continued to December 23, 1932 at 10 for service. m., Life Insurance ComMetropolitan pany Albert L. Brouse, al, foreclosure. Master's report of deed on file. Decree approving same signed. The Northwestern Mutual life surance Company, corporation, vs. Frank Gustafson, et foreclosure. Petition by receiver for leave to bore money to husk corn filed and for approval of receiver's action in levying and selling corn filed. Hearing. Petition allowed. Order signed. Louis Dannenberg, et al, vs. Continental Illinois Bank and Trust Co., corporation, injunction. Replication to answers filed. Cross motion by the complainants to strike motion dissolve filed. Parties present by their respective solicitors. Hearing on motion to dissolve injunction. Evidence heard in onpen court. Evidence on behalf of defendant closed. Evidence on behalf of complainants closed. Leave given defendants withdraw original exhibits upon substituting correct copied advisement. Leave given defendant banks to file amended answers. The People, ex rel, Oscar Nelson, Auditor of Public Accounts vs. Media State Bank, corporation, bill. Petition number nine being petition approval of report of receipts and disbursements filed. Hearing. Petisigned. Petition number ten being for allowance of certain claims for reference of certain claims filed. Part of claims allowed. Order allowing same signed. Other claims referrto master in chancery. Order being incuded in one. Chicago Joint Stock Land Bank, corporation vs. Mabel E. Negley, al, foreclosure. Final report ceiver filed. Hearing on report for allowance of receiver's fees. Evidence heard in open court. Report ed. Receiver allowed sum of $75.00. Decree approving report awarding said for receiver and discharging receiver and releasing bond signed. John T. Vaughn, al, Mary Haney, et al, bill. Cross bill dismissed by cross complainants. Original bill dismissed by original complainants. The Connecticut Mutual Life Insurance Company, corporation, vs. James Marshall, al, foreclosure. Receiver's bond filed and approved. Oreder signed. The Burlington Joint Stock Land Bank of Burlington, Iowa Riley Talbott, et foreclosure. Receivfinal repot filed and approved. Decree approving report, ing receiver and releasing bond Bessie Pendarvis vs. James Pendarvis, et al, partition. Petition leave to bill to Galesburg Serena