First National Bank (Aurora, IL)

View Charter #38 on SPMC View balance sheet

Episode Information

Episode Type
Run → Suspension → Closure
Start Date
January 22, 1932
Location
Aurora, Illinois (41.761, -88.320)
Bank Type
national
Charter Number
38

Metadata

Episode ID
Bank ID
City ID
170403732
Model
gpt-5-mini
Short Digest

Response Measures

Accommodated withdrawals, Public signal of financial health, Full suspension

Other: Bank was closed by directors/mayoral proclamation for a five-day moratorium and subsequently placed in federal receivership by the Comptroller of the Currency.

Receivership Details

Depositor recovery rate
36.9%
Date receivership started
1932-08-12
Date receivership terminated
1938-05-28
Share of assets assessed as good
1.0%
Share of assets assessed as doubtful
19.0%
Share of assets assessed as worthless
79.9%

Notes

Official receivership date in records (1932-08-12) differs from contemporaneous press report of a July receiver appointment; used official date.

Events (8)
1. July 25, 1863 Chartered
Source
historical_nic
2. September 25, 1931 Voluntary Liquidation
Source
historical_nic
3. January 22, 1932 Suspension
Cause
Government Action
Cause Details
Five-day moratorium on business in Aurora ordered by the mayor; banks closed until Jan. 27.
Newspaper Excerpt
Aurora closed its doors to business by mayoral proclamation last Friday.
Source
newspapers
4. January 27, 1932 Run
Cause Details
Depositors returned funds and opened accounts when banks resumed after moratorium; not a panic.
Measures
Banks resumed regular business at 9 a.m.; normal operations encouraged by local authorities.
Newspaper Excerpt
there was a welcome run on Aurora's five banks ... depositors replacing their money in the banks
Source
newspapers
5. July 6, 1932 Run
Cause
Rumor Or Misinformation
Cause Details
False rumors started a run of withdrawals on the First National Bank, precipitating distress and steady withdrawals.
Random Run
Yes
Random Run Snippet
False rumors started a run on the bank; rumors were false
Measures
Directors voted to close the bank when it failed to open due to steady withdrawals.
Newspaper Excerpt
several weeks ago was declared defunct after false rumors had started a run,
Source
newspapers
6. July 6, 1932 Suspension
Cause
Rumor Or Misinformation
Cause Details
Directors closed the bank after steady withdrawals triggered by false rumors.
Newspaper Excerpt
The First National Bank of Aurora failed to open today. The closure was voted last night by the directors, who said it was necessary because of steady withdrawals.
Source
newspapers
7. August 12, 1932 Receivership
Newspaper Excerpt
The appointment of the receiver of the First National Bank of Aurora ... was made late last week by J. W. Pole, comptroller of the currency. A. L. Wilson, president ... was named to the post of receiver. (contemporary press account; official receivership date used below).
Source
newspapers
8. August 12, 1932 Receivership
Source
historical_nic

Newspaper Articles (3)
1. January 27, 1932 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, January 27, 1932

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Article Text

Aurora Resumes Regular Business Aurora, Ill., Jan. 27.-(AP)-A blast of whistles at 9 a. m. Wednesday gave the signal: "Play ball!" and business resumed in Aurora after a five-day moratorium. A band played in the downtown section where only groceries, drug stores, public utilities and newspapers had kept open since Friday morning. And there was a welcome run on Aurora's five banks-not the sort of run that becomes a panic, but a run of deposito:s replacing their money in the banks, opening new accounts, drawing their savings from unproductive hoarding in safety deposit boxes and returning the money to their regular bank accounts. Aurora closed its doors to business by mayoral proclamation last Friday.

2. July 6, 1932 Evening Star Washington, DC
Article from Evening Star, July 6, 1932

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Article Text

ILLINOIS BANK CLOSED

AURORA, Ill., July 6 (AP).-The - First National Bank of Aurora failed to open today. The closure was voted last night by the directors, who said it was necessary because of steady withdrawals. The bank was the largest in Kane County and the second of Aurora's five to close. Its deposits June 30 were $2,886,050.

3. July 13, 1932 The True Republican Sycamore, IL

Article Text

Bank President Is Appointed as Bank Receiver

The appointment of the receiver of the First National Bank of Aurora which several weeks ago was declared defunct after false rumors had started a "run," was made late last week by J. W. Pole, comptroller of the currency.

A. L. Wilson, president of the organization, was named to the post of receiver. He declared that every dollar would be paid back in due time. He does not possess any stock in the bank as the law will not permit a stockholder to become a receiver.

Like many other banks around the country, the First National was closed after someone started false rumors. In order to prevent closing, absolutely necessary if a "run"