Union Savings Bank & Trust Co.

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: September 29, 1931
Location: Davenport, Iowa (41.524, -90.578)

Metadata

Model: gpt-5-mini
Short Digest: 9768d3f2

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Capital injected, Full suspension

Description

Newspaper articles report a heavy run on Sept 29, 1931 when the American Bank closed, continued withdrawals and malicious rumors, and the bank's voluntary liquidation/closure announced 1932-12-27. Reconstruction Finance Corp. arranged funds so Davenport Bank & Trust Co. would assume 40% immediate payments. A receivership/receiver's report appears in May 1933. Classified as run → suspension (voluntary liquidation) → closure (receiver).

Events (3)

1. September 29, 1931 Run

Cause: Local Banks
Cause Details: Heavy withdrawals triggered when the American Bank closed on September 29, 1931; depositors withdrew several million dollars.
Measures: Borrowed money to pay depositors; paid out large sums during three days; advanced money to community firms for payrolls and needs.
Newspaper Excerpt: When the American Bank closed September 29, 1931, the Union Savings Bank valiantly stood a heavy run in which depositors took out several million dollars before it subsided.
Source: newspapers

2. December 27, 1932 Suspension

Cause: Voluntary Liquidation
Cause Details: Officers/directors chose voluntary liquidation and closing due to continual withdrawals caused by malicious rumors and deteriorated asset values (real estate and bonds) making realization of assets impractical; RFC arranged 40% payment via new Davenport Bank & Trust Co.
Newspaper Excerpt: announcement of the voluntary liquidation of the Union Savings Bank & Trust Co.
Source: newspapers

3. May 1, 1933 Receivership

Newspaper Excerpt: In the course of receivership proceedings ... the report for the Union Savings Bank & Trust Co for the period Jan. 21-April 4, as prepared by Bert McCulloch, examiner in charge ... lists receipts and disbursements ... including $986,256.76 advanced by the Reconstruction Finance Corp. to make possible the immediate payment of 40 per cent to depositors ... delivered to the Davenport Bank & Trust Co. for assumption of the 40 per cent deposit liability.
Source: newspapers

Newspaper Articles (5)

1. December 27, 1932 Quad-City Times Davenport, IA

Article from Quad-City Times, December 27, 1932

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Article Text

TO THE PEOPLE OF DAVENPORT Again the citizens of Davenport must rise to meet an emergency in its business and financial affairs with the announcement of the voluntary liquidation of the Union Savings Bank & Trust Co., and the closing of several outlying banks. We need not dwell on the reason for this. When the American Bank closed September 29, 1931, the Union Savings Bank valiantly stood a heavy run in which depositors took out several million dollars before it subsided. Obviously, this could not have been done without borrowing money to pay to depositors. Since that time malicious rumors have been continually circulated against the credit of the bank, causing continual steady withdrawals ever since. The officers and directors decided rather than continue this drain on their resources they would close the bank and liquidate. It was hoped that the Reconstruction Finance Corporation would consent to pay immediately to depositors of the Union Savings Bank 50 per cent of their deposits. The Reconstruction Finance Corp. has only agreed to allow 40 per cent payment on deposits. To accomplish this the Reconstruction Finance Corp. will place with the new Davenport Bank & Trust Co. $5,750,000 in cash to be used for that purpose. When you take into consideration that when the American Bank closed depositors were required to wait nine months before they had access to 40 per cent of their deposits, and that in this closing they can have access to the same amount of their deposits immediately, it will be seen that the government's facilities for taking care of distressed bank depositors are working much more efficiently. The cause of the closing of the Union Bank must be apparent to everyone. The terrific drop in values of real estate, both city and country, and in the price of bonds, made it impossible for the bank to realize anything like the true value of these assets. Under the receivership, these assets will be conserved, and not dumped on the market at once for what they will bring. We strongly urge the people of Davenport to remain calm in this emergency and consider the conditions of the situation, which not only affects this community, but every community in this country, and in fact, in the world. We are going through the most severe depression this country has probably ever seen, and we must all do our part to help right matters. This leaves the new Davenport Bank & Trust Co. as the only banking institution left in Davenport. We want you to know that this new bank sound and safe in every particular. There is no safer banking institution in the United States today. The new bank has no frozen assets, owes no money, and owns no real estate. Practically all of its assets are in cash and Government Bonds and other liquid securities. The fact that the Reconstruction Finance Corp. placed millions of dollars in the new Davenport Bank to pay the Union Bank depositors is concrete evidence of its soundness and liquidity. We also wish you to know we will continue to conduct this new bank in a safe and conservative manner with the interests of its depositors first and foremost. Probably within the next year or two a new bank will be organized and in operation, as Dayenport needs, and should have, at least two banks to transact its business. We will assist in such organization in every way possible. In the meantime, the new Davenport Bank & Trust Co. will endeavor to the fullest extent to take care of the banking business of Davenport in the most efficient manner possible. We ask your cooperation and ur support. We ask your earnest consideration of the seriousness of the situation. We fully believe that you will loyally support this new institution. and help us to bring Davenport back again to its old standing as a sound and progressive business community, after the excitement has cleared away. Depositors in the Union Savings Bank may call at the Union Bank any time during banking hours and have their accounts cleared and receive a bank book on the new Davenport Bank & Trust Co. for 40 per cent of their good deposits. This money will be available to them in the new Dayenport Bank at any time. E. P. Adler C. D. Waterman T.J. Walsh Harry Littig Karl P. Teske Dr. Fred H. Lamb Kuno Struck J. W. Bettendorf J. L. Hecht H. O. Seiffert Joseph Kimmel V. O. Figge Directors Davenport Bank & Trust Co.

2. December 27, 1932 Quad-City Times Davenport, IA

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UNION WAGED HEROIC FIGHT FOR THE CITY Efforts of Wm. Heuer and Associates Saved Banking Structure Here. With liquidation of the Union Savings Bank & Trust Co., business leaders of Davenport asserted that lack of confidence and malicious gossip had brought about the feat of the patriotic and courageous efforts of William Heuer to the community in time of stress. They commented that the bank had stood by Davenport, but Davenport had stood by the bank." Thus the Union bank, which was the last the city's old banks, must liquidate who should have in time difficulty did not do their part. Union Savings Bank Trust Co. made valiant and its position impregnable when run at the time of the closing of former AmeriSavings Bank Trust Co. in September, 1931. The bank adopted policy Usual," and in so doing Heuer and his associates performed community service. was to their efforts that Davenport business was not crippled by the complete crippling banking facilities. was realized time by many versed finance that Union bank might have acted within its legal rights in denying withdraw Instead, during three days when thousands their money deposit. the bank paid out lions with other millions vaults in readiness should public persist. When calmer thought prevailed, officials of the Union even further its assistance the community. Money was advanced for payrolls and other business needs firms and institutions whose funds were "tied up" in the American bank's receivership. This was done with careful gard for ability of the beneficiaries repay, and never was safety the people's deposits jeopardized. During 15 months which have financial September October of 1931, people of the community have not kept as good faith with the Union bank. Periodically, malicious gossip been spread against the safety of the institution, and withdrawals been Bringing to bear all of the ity they possessed, Mr. Heuer, officers the bank and directors have endeavored stem disastrous tide. The plans to liquidate the Union mark their defeat an effort to stave off the inevitable of bad Irresistible forces ended more than years of illustrious service Davenport and the surrounding

3. December 27, 1932 The Daily Times Davenport, IA

Article from The Daily Times, December 27, 1932

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Article Text

TO THE PEOPLE OF DAVENPORT Again the citizens of Davenport must rise to meet an emergency in its business and financial affairs with the announcement of the voluntary liquidation of the Union Savings Bank & Trust Co., and the closing of several outlying banks. We need not dwell on the reason for this. When the American Bank closed September 29, 1931, the Union Savings Bank valiantly stood a heavy run in which depositors took out several million dollars before it subsided. Obviously, this could not have been done without borrowing money to pay to depositors. Since that time malicious rumors have been continually circulated against the credit of the bank, causing continual steady withdrawals ever since. The officers and directors decided rather than continue this drain on their resources they would close the bank and liquidate. It was hoped that the Reconstruction Finance Corporation would consent to pay immediateto depositors of the Union Savings Bank 50 per cent of their The Reconstruction Fideposits. nance Corp. has only agreed to allow 40 per cent payment on deposits. To accomplish this the Reconstruction Finance Corp. will place with the new Davenport Bank & Trust Co. $5,750,000 in cash to be used for that purpose. When you take into consideration that when the American Bank closed depositors were required to wait nine months before they had access to 40 per cent of their deposits, and that in this closing they can have access to the same amount of their deposits immediately, it will be seen that the government's facilities for taking care of distressed bank depositors are working much more efficiently. The cause of the closing of the Union Bank must be apparent to everyone. The terrific drop in values of real estate, both city and country, and in the price of bonds, made it impossible for the bank to realize anything like the true value of these assets. Under the receivership, these assets will be conserved, and not dumped on the market at once for what they will bring. We strongly urge the people of Davenport to remain calm in this emergency and consider the conditions of the situation, which not only affects this community, but every community in this country, and in fact, in the world. We are going through the most severe depression this country has probably ever seen, and we must all do our part to help right matters. This leaves the new Davenport Bank & Trust Co. as the only banking institution left in Davenport. We want you to know that this new bank sound and safe in every particular. There is no safer banking institution in the United States today. The new bank has no frozen assets, owes no money, and owns no real estate. Practically all of its assets are in cash and Government Bonds and other liquid securities. The fact that the Reconstruction Finance Corp. placed millions of dollars in the new Davenport Bank to pay the Union Bank depositors is concrete evidence of its soundness and liquidity. We also wish you to know we will continue to conduct this new bank in a safe and conservative manner with the interests of its depositors first and foremost. Probably within the next year or two a new bank will be organized and in operation, as Davenport needs, and should have, at least two banks to transact its business. We will assist in such organization in every way possible. In the meantime, the new Davenport Bank & Trust Co. will endeavor to the fullest extent to take care of the banking business of Davenport in the most efficient manner possible. We ask your cooperation and your support. We ask your earnest consideration of the seriousness of the situation. We fully believe that you will loyally support this new institution, and help us to bring Davenport back again to its old standing as sound and progressive business community, after the excitement has cleared away. Depositors in the Union Savings Bank may call at the Union Bank any time during banking hours and have their accounts cleared and receive bank book on the new Davenport Bank & Trust Co. for 40 per cent of their good deposits. This money will be available to them in the new Davenport Bank at any time. Adler Waterman Walsh Harry Littig Karl Teske Dr. Fred H. Lamb Davenport Bank Trust Co. Kuno Struck J. Bettendorf Hecht Seiffert Joseph Kimmel Figge Directors

4. December 27, 1932 The Daily Times Davenport, IA

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THE Money Available at the Davenport as Soon as Possible IS FINALLY Action Is Disappointing But Only Wait In Line at Union Bank Reduction of the amount which depositors of the Union Savings Bank & Trust Co. will receive through loan arrangements with the Reconstruction Finance Corp. from 50 to 40 per cent was announced this afternoon. This reduction regarded as highly disappointing by local bank officials, was finally accepted here after valiant efforts to persuade the Reconstruction Finance Corp. to adhere to its original promise to allow loan that would permit disbursement of 50 per cent of deposits. At today officials here finally informed by the Reconstruction Finance that the best figure the governmental body could recommend was per cent of the good deposits. Arrangements to close this agreement were being made this afternoon. Accordingly the sum of $5,750,000 will be deposited in the new Davenport Bank & Trust Co., and the money made available the earliest possible moment. Speed Clerical Employes of the Union Savings bank work steadily in order that all detailed and clerical work may be cleared away as soon possible, that depositors may call the Union with their books, have them checked, new pass books on the Davenport Bank Trust for their 40 per cent. The latter bank will have the money on hand promptly take care of all demands of Union depositors. It explained today that when Davenport bank officials conference in last Thursday with was arrived at for loan that would permit of 55 per cent of deposits in the Union bank. Later, on last Saturday, this figure changed to cent, and the Chicago officials left Dav. enport, after having given that that figure would hold. Agree to Terms Clearance the loan, the money for which delivered this early, was expected by today. did not come, the front of the bank were kept waitTelephone calls were put Chicago, was learned the attempts to down the Although the local banking officials this attempt they finally forced to agree. Depositors of the Union bank are advised that there need crush the bank tomorrow Evdepositor will be treated alike, and the bank will remain open long may be necessary to take The Davenport Bank Trust was again emphasized, meeting all demands of depositors. The bank is in liquid condition, and sound respect. has imposed no any kind, and continue the banking needs community Money on deposit available any time. arrange for opening account the new Bank Trust Co. asked after regular banking hours, and they be taken Although the lobby enport Bank Trust filled during the morning, there was only the business transacted. time were there more than three four front any and employes were difficulty to take needs of patrons. Crowd Union A crowd began gathering the Union bank about morning and from that time until noon the sidewalk the street. Although bank remained closed and this afternoon, the crowd

5. May 1, 1933 The Daily Times Davenport, IA

Article from The Daily Times, May 1, 1933

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BANK RECEIVER H CLAIM OF $401,114 AGAINST TRUST CO. A claim for $401,114.30, representing the unpaid balance on a loan of $1,150,000 advanced on June 9, 1925, has been filed in Scott county district court against the American Trust Co. receivership by the receiver of the American Savings Bank & Trust Co. This was the largest of 23 additional claims filed late Saturday against trust firm as the term for filing such claims ended. In number of individual cases, however the court has allowed additional time for filing In the course of receivership proceedings of six Davenport financial in district court the report for the Union Savings Bank & Trust Co for the period Jan. 21 April 4, as prepared by Bert McCulloch, examiner in charge for L. A. Anand filed by Cook & Balluff, attorneys, lists receipts of and disbursements of $7,963,019.46 leaving cash balance on hand of $176,011.81 Among the cash receipts was $99.756.34 collected on assessments against stockholders The totals of receipts and disalso include 986,256.76 advanced by the Reconstruction Finance Corp. to make possible the immediate payment of 40 per cent to depositors and the cash which was in turn delivered to the Davenport Bank & Trust Co. for assumption of the 40 per cent deposit liability. and for secured deposit liability. These amounts were $5,030,082.07 and Expenditures for salaries amounted to $20,914 and for receivership expenses, $9,745.29.