Black Hawk National Bank

Bank Information

Episode Type: Run → Suspension → Unsure
Bank Type: national
Bank ID: 6854
Charter Number: 6854
Start Date: January 9, 1925
Location: Waterloo, Iowa (42.493, -92.343)

Metadata

Model: gpt-5-mini
Short Digest: 3bda6dd6

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health, Full suspension, Books examined

Other: Police posted outside banks; shipments of currency from Federal Reserve and other banks; directors voted to close Black Hawk National temporarily for reorganization assistance from Chicago examiners.

Receivership Details

Depositor recovery rate: 75.6%
Date receivership started: 1925-02-13
Date receivership terminated: 1929-09-30
OCC cause of failure: Economic conditions
Share of assets assessed as good: 100.0%

Description

Newspaper (1925-01-09) describes wild rumors and heavy withdrawals affecting Waterloo Bank Trust and Black Hawk National Bank. It reports large shipments of currency and Federal Reserve support easing panic, but also states board directors voting to close the latter, implying Black Hawk's directors voted to close the bank. Later paragraphs describe examiners arriving and Black Hawk officers optimistic about reopening/reorganization, but no definite reopening date is given. Therefore I classify as a run that led to suspension with reopening uncertain. OCR in the article is noisy; I corrected obvious errors in transcription (e.g., 'Black Hawk bank. stills' etc.).

Events (4)

1. June 25, 1903 Chartered

Source: historical_nic

2. January 9, 1925 Run

Cause: Rumor Or Misinformation
Cause Details: Wild rumors and gossip sparked heavy withdrawals; article repeatedly attributes panic to unfounded rumors.
Measures: Large shipments of currency received; Federal Reserve offered to send unlimited currency; plainclothes policemen stationed outside banks.
Newspaper Excerpt: Excitement which runs on Waterloo Bank Trust and Black Hawk National bank...Reports of immense withdrawals here, which grow with every telling.
Source: newspapers

3. January 9, 1925 Suspension

Cause: Rumor Or Misinformation
Cause Details: Directors voted to close (suspend) after heavy withdrawals driven by rumors; examiners also closed the Trust bank — closure is tied to the panic/withdrawals rather than explicit regulatory receivership language.
Newspaper Excerpt: which led state examiners closing the former and board directors voting to close the latter.
Source: newspapers

4. February 13, 1925 Receivership

Source: historical_nic

Newspaper Articles (1)

1. January 9, 1925 The Courier Waterloo, IA

Article from The Courier, January 9, 1925

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Article Text

FOUR BANKS NOW OVERSTOCKED GOLD AND NOTES, OFFERED RESOURCES OF FEDERAL RESERVE Money Shipments Cram Banks With Currency and Uneasiness of Depositors Vanishes During DayBusiness Concerns Guarantee Employes Leaving Deposits Intact Against Sentiment Subsides as Strength of Local Financial Institutions is Deposits Being Returned. Uneasiness of bank depositors vanished today. Wild rumors and gossip, which threatened to bring about financial catastrophe for Waterloo thru intimidating depositors, have been averted because of sound business judgment of the public. Large shipments of money received here yesterday and today, together with the proffer of the Federal Reserve bank, Chicago, to send currency here in unlimited amounts without have the impulse make withdrawals. The offer telegram received late yesterday aftand reproduced in on this Excitement which runs on Waterloo Bank Trust and Black Hawk National bank. which led state examiners closing the former and board directors voting to close the latter. was experienced more subdued manner Waterloo's other Commercial National, First National, Leavitt Johnson National and Waterloo Savings yesterday. While appreciative the of Federal Reserve bank. officers financial were confident this morning they need other than those which had been called into use and were available on an instant's notice Today was quiet in all banks operating, showing the Deak of the near panic had been reached The only dread today of bank robbers. which is remote danger. plainclothes man was added the in each guns were within reach of all Policemen were stationed outside of bank buildings, with always hand. Never before has SO much money crammed the banks operating. Reports of immense withdrawals here, which grow with every telling. also are likely to attract thieves from other cities to enter private order that nothing be undone that would in any degree restore confidence among those to make siderable number firms. cantile and today their that their Dry Agents Seize ings would be guaranteed by the employing firm, such savings 3,000 Stills in Raid left intact in the depository on Chicago Market The Courier among the firms such Chicago, Jan. than the height excitement yesstills were confiscated by terday, flames of unfounded federal prohibition agents yes- gossip had made panicky, terday in series raids COV- scores depositors made withering the Maxwell street mar- drawals, altho the demand at the four was means hundred hy. heavy that the drometers were also taken and closing the Bank four persons arrested. The Trust and Black Hawk bank. stills and other devices were on open sale in six shops bor- Women Apprehensive. dering the market. Women who held savings acmost eager draw out their amounts and risk its safety under mattresses and old sugar Tokio Shaken by pantry corner, where burglars look first. Secretaries numerous lodges, clubs socieSeries of Quakes ties, fearing criticism for not every precaution protectthe Associated ing their organization's funds. Tokio. Jan. was dis- were also included in those withturbed by drawing sums, with today series of earthhigh first reassuring message from the Fedquakes of severity, the rocked Reserve bank, and the clearcity brain solidmorning. last temblor this ness their banks, afternoon many of these returned their many persons to leave their posits banks again today abodes Mount Aso, Deposits checking volcano, located 600 miles each of the of has been eruption stantial increase rather than last and emitting crease. causing Farmers Not Fearful. Heavy deposits were made yesterday and today farmers, who have receipts from hog and milk Farmers take little stock in wild rumors weird warnings comlargely from those people who have mors spread like wildfire yesterday about bank closattendant The fact that Waterloo banks take care every drawal with the exception of the closed. with now hand most encouraging for the own welfare. Black Hawk Optimistic, Officers of the Black Hawk bank optimistic opening and re-organization the near future. National bank examiners Chicayesterday, to arrive this afternoon assist the Black Hawk in the adjustment of No definite time this bank's condi tion being made public, altho be no loss to any depositor. relief experienced by those first that the Waterloo banks now operating never had cash hand as that there million dollars more on hand in cash than year ago greater amount available from the own resources. Motion picture theatres flashed the screen the Federal Reserve bank's Papers Print Facts. For several the days Courier has been deluged quiries financial with reference the of that bank Wild and rumors circulated the effect that there progress, dangerous continuous bank in city wholly foundation The public that the Waterloo print the facts and nothing but the