3269. First National Bank (Council Bluffs, IA)

View Charter #1479 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
1479
Charter Number
1479
Start Date
March 1, 1933
Location
Council Bluffs, Iowa (41.262, -95.861)

Metadata

Model
gpt-5-mini
Short Digest
264a5585

Response Measures

Accommodated withdrawals, Full suspension, Books examined

Other: Conservatorship by federal authorities leading to suspension; later placed in receivership and liquidated with RFC loan aiding distributions.

Receivership Details

Depositor recovery rate
100.0%
Date receivership started
1934-04-20
Date receivership terminated
1940-07-01
Share of assets assessed as good
62.0%
Share of assets assessed as doubtful
36.6%
Share of assets assessed as worthless
1.4%

Description

A withdrawal 'run' touched First National around Mar 1, 1933 (panic after State Savings closure). Bank later suspended operations when Frank Everest was named federal conservator (Mar 17, 1933) under the emergency banking law and did not resume normal independent operation; by Dec 1934 a receiver (Maloney) is distributing dividends, indicating permanent closure/liquidation. Cause for the initial run tied to withdrawals linked to other local banks' closing; suspension was by federal action (conservator).

Events (5)
1. July 22, 1865 Chartered
Source
historical_nic
2. March 1, 1933 Run
Cause
Local Banks
Cause Details
Withdrawals and nervousness followed closing and reopening of the State Savings Bank in Council Bluffs; a citywide flurry of withdrawals affected other banks including First National.
Measures
Bank officials stated We are prepared to pay all those who want their money; paid withdrawals and encouraged redeposits.
Newspaper Excerpt
G. Turner ... announced that the run had touched the bank only The last day of February and the first day March are always heavy days in this bank, he said. Of course there were some withdrawals...
Source
newspapers
3. March 17, 1933 Suspension
Cause
Government Action
Cause Details
Frank F. Everest was named federal conservator under the Emergency Banking Law; bank operations suspended except access to safety deposit boxes while conservatorship/authorization for restricted operation was sought.
Newspaper Excerpt
Following his appointment, the bank suspended all operations except permitting customers access their safety deposit boxes. Application been made to federal authorities for operation the bank under the conservation of the emergency banking law.
Source
newspapers
4. April 20, 1934 Receivership
Source
historical_nic
5. December 9, 1934 Receivership
Newspaper Excerpt
RECEIVER MALONEY ANNOUNCES PCT. CHECKS MAY BE AVAILABLE TO DEPOSITORS IN THREE WEEKS. ... Creditors of the old First National bank receive dividend totaling $437,000 probably within next three ... Maloney, receiver, announced tonight. (Dec. 9, 1934). ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )
Source
newspapers

Newspaper Articles (6)
1. March 1, 1933 The Daily Nonpareil Council Bluffs, IA
Article from The Daily Nonpareil, March 1, 1933

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Article Text

DEPOSITORS RETURN TO STATE SAVINGS PLANS ARE BEING MADE FOR REORGANIZATION OF BANK. FLURRY HAS SUBSIDED While plans for reogranization under the state banking stabilization law were being perfected by officials of the State Savings bank under direction of the state bank. ing department, other banks of the city Wednesday were doing routine business, with little to remind them of the flurry of withdrawal which the closing and reopening of the State Savings bank Tuesday Patrons of the State Savings bank were redepositing their money there this morning under the reorganization, and at the other banks the usual banking business was being done, deposits were coming in about normal volume and the banks were cashing checks, issuing drafts, etc., in the regular course of business. Plans for the reorganization of the bank are still indefinite. No effort has been made as yet to secure according to W. S. Baird, vice president, and no trustees have been appointed yet to take over the old affairs of the bank. Probably it will be three or four days before action can be taken on these matters. City, county and school funds which deposited in the State Savings bank are protected under the bank guarantee law. No definite date can be given as to when the bank will begin to pay off depositors, Baird said, but it will be as soon as possible. Meanwhile at other banks the flurry of withdrawals had subsided. G. Turner, chairman of the board of directors of the City Na. tional bank, announced that the "run" had touched the bank only "The last day of February and the frst day March are always heavy days in this bank," he said. "Of course there were some withdrawals, but they were mostly of the smaller savings depositors and many of them have again deposited their funds in the bank." A small line of persons was waiting at the statement window at 11 a. m., but the other windows seemed no busier than usual. Roy Maxfield, vice president of First National bank, also said ceased. that withdrawals had practically "We are prepared to pay all those who want their money," he declared, "but reason to believe that the panic which always follows closing of a bank has sub sided. "The people of Council Bluffs have no reason to fear any bank in the city. "The big run of withdrawals was taken care of Tuesday without trouble, B. A. Gronstall, vice president of the Council Bluffs Savings banks, declared. Today everything is going along in the normal way.'

2. March 8, 1933 Des Moines Tribune Des Moines, IA
Article from Des Moines Tribune, March 8, 1933

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Article Text

State Firms Stay Closed, Andrew Says 2 National Houses in Council Bluffs Agree. Lieut. Gov. N. G. Kraschel Wednesday insisted that all Iowa banks, both state and national, abide by the Iowa banking holiday until federal reserve balances are released. All banks in Iowa Wednesday agreed to abide by the Iowa banking holiday, Kraschel said. The two national banks in Council Bluffs, the First National and the City National, discontinued acceptance of new deposits at 11 m. Wednesday, in compliance with Kraschel's demand. Dubuque Open. The First National bank at Dubuque open for business Wednesday despite orders from Lieutenant Governor Kraeschel that all Iowa banks, both state and national, should remain closed in conformity with the state banking holiday. Operating under the regulations of the federal government permitting national banks to accept new deposits, officials of the institution said they had no intention of closing until ordered by the United States treasury department, the Associated Press said. More Deposits. The bank officials said they accepted $50,000 in new deposits Tuesday and than that sum had been deposited Wednesday. Under the federal ruling, new deposits must be segregated from the old. Officers the Council Bluffs banks said patrons who deposited funds during Tuesday and early Wednesday will be permitted to withdraw deposits. Approximately $11,000 had been accepted under the federal treasury restrictions when acceptance was discontinued. State Banks Closed. All state banks, over which the state proclamation has full authority, remained closed Wednesday, L. A. Andrew, state banking superintendent, said. "We have not the authority to force national banks in the state to remain closed but we appeal to national bank officers to protect the interests of the state and abide by the state holiday until federal reserve balances are released," Kraschel said Wednesday. Conformity. Kraschel issued the following statement Wednesday afternoon: "All Iowa banks are closed in strict conformity with the state proclamation. The splendid cooperation that they have shown in upholding our hand gives us hope obtaining release of Iowa bank money in Chicago and New York. "It perfectly obvious that if of our banks were to disregard our and permit withdrawals of cash, our position would be lost forever. Position Strong. "It is unfortunate that American business should be so paralyzed, but Iowa's position is extremely strong in such crisis, We have food products that the remainder of the country must have and we would be weak indeed did not demand the creation of sound currency or release of our own funds now in city banks before normal business is resumed. "We do not seek an unfair advantage over our sister states but the present bank crisis is due to exploitation and unsound bankpractices in higher circles over which we had no control. Not to Blame. "We are not to blame for this situation. Therefore we would be weak if we failed to exercise our position at this time for the protection of our own people. 'President moving forward boldly and in constructive manner. Herring is in hourly contact with us advising to the progress. Within few days new and sounder banking structure will arise for the service of the nation. We need to be patient but few days more and commend the loyalty of our bankers and the patience of our people in the maintenance of our state program."

3. March 17, 1933 The Omaha Evening Bee-News Omaha, NE
Article from The Omaha Evening Bee-News, March 17, 1933

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Article Text

EVEREST NAMED BLUFFS BANK CONSERVER COUNCIL BLUFFS, March 17. -Frank Everest, president of the First National bank of Council Bluffs, Friday was named federal conservator of the institution, to protect the assets for the benefit of depositors. Following his appointment, the bank suspended all operations except permitting customers access their safety deposit boxes. Application been made to federal authorities for operation the bank under the conservation of the emergency banking law. for such operation is expected to be received in two or three days, according to Mr. Everest The directors and stockholders were to meet, probably Friday, to determine whether the bank operate under this plan or liquidate. the decision is to operate, the bank will be open under federal restrictions until the government willing to grant license for unrestricted operation. If the directors decide to liquidate, courses are open Outright liquidation and reorganization, or liquidation by turning the bank's assets over to some other bank. Appointment of Everest as conservator was made following his return from airplane trip to Chicago with Robert Turner, president of the City National bank of Council Bluffs. to confer with officials of the Chicago Federal Reserve bank. Mr. Turner announced Friday he had received notice from the Chicago Federal Reserve bank that license for reopening of the City National would reach him Friday from Washington. He was preparing to reopen the bank at the notification reached him by that the First National bank decides to operate under conservation of the banking law, deposits, make and perform such other banking functions as the law specifically permits. Its officers, in addition to Mr. Everest, are Roy Maxfield, vice president, and G. F. Spooner, cashier.

4. March 18, 1933 The Omaha Evening Bee-News Omaha, NE
Article from The Omaha Evening Bee-News, March 18, 1933

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Article Text

COUNCIL BLUFFS, March City National bank of Council Bluffs opened for regular business Saturday morning for the first time since declaration of the nation-wide banking holiday, under authority received Friday afternoon from Secretary of Treasury Business heavy during the morning. but most of posits, according to bank officials. Reopening of the City National placed two Council Bluffs banks normal basis. The Council Bluffs Savings bank has reopened without restrictions by authority of the state. The State Savings bank operating under the state same status which occupied prior to the bank holiday All business of the First Na tional bank suspended Friday except giving customers access safety deposit vaults, following the appointment Frank Everest. president, as federal conservator protect the assets for depositors Application has been made to federal authorities for operation of the bank under the conservation the emergency banking law Permission for such operation expected be ceived in three days, cording Mr The directors and stockholders Friday afternoon determine whether the bank is operunder this plan to liquidate, but reached decision the decision operate the bank be open under fed eral restrictions until the governwilling grant license for unrestricted operation. the directors decide to liquidate. courses open right liquidation and reorganization, liquidation by turning the assets over to some the First National bank deoperate under tion the and perform such other banking the law specifically Its officers, in addition to Mr. Everest are Maxfield. vice president, and cashier.

5. March 18, 1933 The Omaha Morning Bee-News Omaha, NE
Article from The Omaha Morning Bee-News, March 18, 1933

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Article Text

EVEREST NAMED BLUFFS BANK CONSERVER COUNCIL BLUFFS, March 17. -Frank F. Everest, president of the First National bank of Council Bluffs, Friday was named federal conservator of the institution, to protect the assets for the benefit of depositors. Following his appointment, the bank suspended all operations except permitting customers access to their safety deposit boxes. Application has been made to federal authorities for operation the bank under the conservation of the emergency banking law. Permission for such expected celved in two or three days, according Mr. Everest. The directors and stockholders were to meet, probably Friday, to determine whether the bank operate under this plan or to liquidate. the decision is to operate, the bank will be open under federal restrictions until the government is willing to grant license for unrestricted operation. If the directors decide to liquidate, two courses are open: Outright liquidation reorganisation, liquidation by turning the bank's assets over to some other bank. Appointment of Everest as conservator was made his return from airplane trip to Chicago with Robert Turner, president of City National bank Council Bluffs, confer with officials of the Chicago Federal Reserve bank. If the First National bank decides to operate under conservation provisions of the banking law, deposits, make change and perform such other banking functions as the law specifically permits. Its officers, in addition to Mr. Everest, are Roy Maxfield, president, and G. F. Spooner, cashier. CHICAGO, March 17, (/P)-The Federal Reserve Bank of Chicago Friday announced the three member banks in the Seventh Reserve They are the City National of Council Bluffs, Ia.; the Badger State Milwaukee, Wis., and the State bank of Kewaunee, Wis.

6. December 9, 1934 The Daily Nonpareil Council Bluffs, IA
Article from The Daily Nonpareil, December 9, 1934

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Article Text

RECEIVER MALONEY ANNOUNCES PCT. CHECKS MAY BE AVAILABLE TO DEPOSITORS IN THREE WEEKS. MAKES TOTAL OF 85 PCT. RFC Loan and Collections Assets Make Cash Distribution to Be Through New Bank. Creditors of the old First National bank receive dividend totaling $437,000 probably within next three Thom. Molaney, receiver, announced night. This payment will increase to cent the total received by creditors of the bank. The receiver's announcement follows: The comptroller of the currency authorized payment cent dividend creditors First National bank council Bluffs who have proven their claims. This action followed made several will be made loan be obtained from the Finance corporation. augmented by recent collections made assets of the old bank. Old Loan Approved. initial 55 cent made available by former March 1934: only 50 per cent was paid, those accounts which had previously in the cent made during 1933. The source considerable portion that March tribution having been loan the conservator obtained from RFC, of course necessary repay that obligation before further dividends be paid as receiver. This repayment early October this year, and cruing that time included in the sum now to be distributed. "Granting this loan by the RFC obviates hasty, forced selling of the bonds, at the resultant sacrifice such would market were On the contrary, bonds owned being gradually through special liquidator securities, under direction of the comptroller the currency, splendid results being obtained Sales made only favorable marIn nearly every instance, thus better price has been cured than would have been any period bank closed, in March, 1933. Naturally bank will benefit to the full extent