3321. Union Savings Bank & Trust Co. (Davenport, IA)

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: September 30, 1931
Location: Davenport, Iowa (41.524, -90.578)

Metadata

Model: gpt-5-mini
Short Digest: 97828ac3

Response Measures

Accommodated withdrawals

Description

On Sept. 30, 1931 there was a run on the Union Savings Bank & Trust Co.; the bank stayed open, paid depositors in full, received large new deposits and returned to normal. No suspension or receivership is reported. Anecdotal measure (hiring a jazz band) is reported later (1938) as a crowd-calming step.

Events (1)

1. September 30, 1931 Run

Cause: Rumor Or Misinformation
Cause Details: Run appears driven by public fear/nervousness rather than bank insolvency; articles describe 'unwarranted fear' and 'someone started a run.'
Measures: Remained open past normal hours, paid depositors in full, organized staff to meet emergency; later accounts mention hiring a jazz band to calm depositors and restore confidence.
Newspaper Excerpt: No notice was required for the withdrawal of funds and payment was made to all depositors who requested it... In the face of run to withdraw money at the Union bank, depositors of the institution rose magnificently... New deposits made in the bank today totaled $438,583.15
Source: newspapers

Newspaper Articles (7)

1. September 30, 1931 Quad-City Times Davenport, IA

Article from Quad-City Times, September 30, 1931

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BETTENDORF MADE BANK BOARD HEAD Car Manufacturer to Aid In Reorganizing American Savings. UNION SHOWS STRENGTH Business Leaders Show Faith by Increasing Deposits. Davenport business interests rallied today to express their confidence in the strength of the local financial situation. The Union Savings Bank & Trust Co. took the lead by continuing a policy of "business as usual." No notice was required for the withdrawal of funds and payment was made to all depositors who requested it. J. W. Bettendorf, president of the Bettendorf Co., and one of the leading business men and financiers of the community, was this morning elected chairman of the board of the American Savings Bank & Trust Co. "We are working out plans for reorganization, and they are progressing nicely, Mr. Bettendorf stated after the meeting. "As chairman of the board of directors will do all that is pos. sible to help the committee headed by E. P. Adler. "While it will take some time to do so, we expect to put the bank back on its former strong financial basis. We hope the people of Davenport and its tributary area will bear patiently with us and retain their confidence, both in the bank and in the community. "If this is done, am confident that everything will work out satisfactorily." Other business leaders also expressed their confidence in the strength of the local situation, and urged rèsidents of the city to "stand by Davenport" thru the hour of temporary stringency. Officers of the Union Savings Bank & Trust Co., headed by William Heuer, the president, had their banking force well organized to meet any emergency. Union Stays Open. In order to show its confidence the Union bank remained open until o'clock this afternoon, the under the usual order of Wednesday procedure the institution would have closed at noon. In the face of run to withdraw money at the Union bank, depositors of the institution rose magnificently to the occasion today. New deposits made in the bank today totaled $438,583.15 at [Continued on Page Two.]

2. September 30, 1931 The Rock Island Argus Rock Island, IL

Article from The Rock Island Argus, September 30, 1931

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CLOSING OF CENTRAL TRUST FOLLOWS DEPOSITS IN TIEUP OF DAVENPORT BANK; ACT TO PROTECT CUSTOMERS AS FUNDS OF THREATENS; OTHERS APPLY RULE 60-DAY WITHDRAWAL Union Savings in Davenport Meets Demands of Depositors. Bettendorf Is Chairman in Move to Reorganize in The Union Savings Bank Trust Co. led Davenport business intertoday in expressing their confidence the strength of the finanby continuing "business No notice was required for the withdrawal of funds and payment was made all depositors who requested W. Bettendorf, president of the Bettendorf company, and one the leading business men and financiers Davenport community, was this morning elected chairman of the the American Savings Bank Trust Co. working out plans for reorganization, and they are progressing nicely," Mr. Bettendorf stated after the meeting. chairman of the board of rectors do that possible help the reorganization committee headed by E. Adler. "While will take some time do expect to the bank back on former strong financial basis. We hope the peoof and its tributary area will bear patiently with retain their confidence, both in the bank and in the community. this done, confident that everything work out satisfactorily." Other business leaders also pressed their confidence in the strength of the situation. the Union Savings Bank headed by William Heuer, the president, had their banking force organized to meet any emergency. Union Stays Open. In order to show its confidence the Union remained open o'clock this afternoon, though under the usual order of Wednesday would closed noon. At both the Home Savings bank and the Northwest Savings, Davenport's two outlying banks, conditions normal today. While there some withdrawals, came in with fresh deposits. measboth banks invoked the 60-day withdrawal requirement savings accounts. Both banks continued to receive deposits and to transact the ordinary business. their commercial Scott county rural banks, many which cleared some of their financial transactions through the American Commercial bank, ported this morning that their communities did not indiany part their depositors, whose confidence the banks these continue usual. Bettendorf Savings and Buffalo Savings banks that 60-day notice would be required against drawals of deposits. both bankers the action taken to forestall that might be engendered. Many Depositing Money. In all the banks patrons were offering money for deposit, final (Continued on Page Four.)

3. October 1, 1931 The Des Moines Register Des Moines, IA

Article from The Des Moines Register, October 1, 1931

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of the board of the bank. He will work with Mr. Adler's committee. The only bank in Davenport which has not put the 60-day rule into effect even on savings accounts is the Union Savings Bank & Trust co. Paid in Full. All depositors who came to this bank to withdraw their deposits were paid in full and the bank. instead of closing at noon as is the custom on Wednesday, remained open until 3 m. The of ficers stated that the Union Savings Bank & Trust CO., which has deposits of about 25 million dollars, according to its latest statement, had ample cash on hand to meet all requirements. In view of the bank situation the Davenport city council authorizing 30-day extension for the payment of regular taxes, but not for special assessments. No Embarrassment. Approximately $1,200,000 of funds of the state of Iowa are temporarily tied up through the 60-day suspension on the part of the American Savings Bank and Trust CO. State officials said Wednesday that this would in no way embarrass the state as funds are on deposit in more than 25 other banks and claims would continue to be paid without delay. Rock Island Central Trust Closes. ROCK ISLAND. ILL-The Central Trust and Savings bank. with deposits of $5 500,000 as of June 30, closed Wednesday This action was taken. officers said, to protect all depositors equally. Following the posting of the notice by the American Savings Bank and Trust co. of Davenport Tuesday, requiring 60-day notice on withdrawals, heavy runs started on all Rock Island banks and after the closing of the Central Trust and Savings bank, the remaining three banks posted 60-

4. October 2, 1931 The Daily Times Davenport, IA

Article from The Daily Times, October 2, 1931

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EXCHANGITES LAUD PUBLIC ON RETURN TO SANE BANK VIEW Commending the Union Savings Bank & Trust Co. and rejoicing in the return of public faith, the Dayenport Exchange club expressed confidence in the soundness of this community's finances today at luncheon meeting at Hotel Blackhawk. The officers of the club issued the following after unanimous vote by the members: "The Davenport Exchange club expresses confidence in the fundamental solidarity of this community's finances and commends the Union Savings Bank & Trust Co. for its courageous survival of the test imposed by some depositors in their unwarranted fear for the safety of their deposits. "We are glad to note the return today of a sane and conservative frame of public mind. The program today included a brief report by James L. Oakes, president of the club, on the international convention at Memphis, which was attended by himself and by Dr. Kuno Struck, president of the Davenport Chamber of Commerce and Iowa district governor Exchange. Frank Johnson of Voss Bros. Manufacturing Co. spoke on sales promotion, emphasizing that both retailers and wholesalers are liable to loss if they sacrifice their natural markets in their efforts to extend the scope of their sales too far afield.

5. October 2, 1931 The Daily Times Davenport, IA

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BANK $71,000 OF FAMILY BONDS AS EVIDENCE OF FAITH An unusual expression of confidence in the Union Savings Bank & Trust Co. was revealed by officers of the institution today Wednesday morning, when the run on the bank was at its height, Mr and Mrs Arno L. Petersen and Dr. and Mrs George Decker, the latter a sister Mr Petersen, held a family conference. As a result they telephoned their mother, Mrs Clara Petersen, who is visiting in Denver, Colo. Mrs Petersen at once communicated. with hey son-in-law and daughter, Mr and Mrs William L. peers, who were at Rock Springs, Wyo. They boarded an airplane and flew to Davenport Wednesday evening, arriving here at 9 a. m. yesterday. A family conference was held, after which $71,000 worth of gilt edged securities, belonging to a family trust, was taken to the bank.

6. May 26, 1933 The Daily Times Davenport, IA

Article from The Daily Times, May 26, 1933

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Woman Files Suit Asking For $1,440 On Bank Accounts Mrs Lida C. Lancaster has filed suit in Scott county district court asking $1,440.87 of Joseph Deutsch, in which she claims that while he was director of the Union Savings Bank & Trust Co., he guaranteed two savings accounts which she had in the bank. Mr Deutsch stated today that he temporarily guaranteed Mrs Lancaster's accounts when she appeared at the "run" on the Union bank Sept. 30, 1931, and was unable to reach the windows to withdraw her money. She was told her money was safe and that she could return after the run had subsided. Mr Deutsch further states that he was given an opportunity to settle by Mrs Lancaster's attorney, but refused to do so.

7. July 23, 1938 Evening Star Washington, DC

Article from Evening Star, July 23, 1938

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THE Union Savings Bank & Trust Co. of Davenport, Iowa, faced a crisis on September 30, 1931. Some one started a run on the bank. Then Fred Zabel, vice president of the institution, got an idea. A jazz band was hired to play popular selections from the balcony. Many actually redeposited their money which they had just taken out! Next morning found the Union Savings Bank back on a normal operating basis. Aged Automobile. Seventeen years ago Gus Gainey, Dunn, N. C., Negro, bought an automobile for $800 cash. The dealer, to close the bargain, threw in 5 gallons of gasoline. Happily, Gainey drove and droveuntil he ran out of gas. The speedometer showed 100 miles. Disgustedly, Gainey pushed the car under a shed and decided it was too much of a financial strain to keep it in gas. Last spring Gainey died and among his effects was found the car of 1921 vintage. The speedometer still showed 100 miles.