First National Bank - Freeport, IL

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 13695
Charter Number: 13695
Start Date: October 6, 1934
Location: Freeport, Illinois (42.297, -89.621)

Metadata

Model: gpt-5-mini
Short Digest: 508da40ba733da15

Response Measures

None

Description

Article discusses the old First National bank of Freeport in process of liquidation with a receiver in charge and an assessment on stock of a new First National Bank. There is no description of a run; the bank is being liquidated and has a receiver, so this matches a suspension/closure (permanent closure with receiver). Date of article is 1934-10-06; liquidation and receivership are discussed as ongoing at that time. Possible OCR errors in text corrected (e.g., receiver and references to liquidation).

Events (2)

1. May 29, 1933 Chartered

Source: historical_nic

2. October 6, 1934 Receivership

Newspaper Excerpt: Today marks the commencement of the assessment on the stock of the old First National bank of Freeport, which is in process of liquidation...the temptation to place political receiver in charge of the old bank was too great to resist, and so one was brought here.
Source: newspapers

Newspaper Articles (1)

1. October 6, 1934 Freeport Journal-Standard Freeport, IL

Article from Freeport Journal-Standard, October 6, 1934

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Article Text

NOW FOR THE LIQUIDATION Today marks the commencement of the assessment on the stock of the old First National bank of Freeport, which in process of liquidation. This assessment been levied in contravention of an derstanding between the national bank authorities and the Freeport men who organized the new First National bank. The new bank would never have been organized except for the assurance given its stockholders that the old bank would liquidated in an orderly and inexpensive way, and with the co-operation of the new bank. the temptation to place political receiver in charge of the old bank was too great to resist, and SO one was brought here. The general public may not feel much interest in the breach of this understanding. The public however, interested the payment of the remaining of posits still in the hands of the receiver. therefore, matter of common concern to know whether the assets of the old bank are being liquidated in an orderly and inexpensive way, and to what extent the cess of collection has already gone. Some months ago depositor in the old First National bank called this office and said: have just called the receiver of the old First National bank, to ask whether there is any prospect of paying out any the remaining of the deposits soon. He said it was very unlikely that there would be any further payments. The the ceiver to verify that statement. He said he had not made in that positive form. He said people sometimes asked questions and you had to them something. We then asked to furnish statement showthe assets and liabilities of the old bank and indicating to what extent had already taken place. We also asked him number of other questions. He fused to answer all of these questions, saythat he was not authorized to give information to anyone. concerning any the bank's However, we know that such information in fact, given out by bank receivers elsewhere. On principle, ought to available intervals, for both and stockholders have an interest in knowing what progress is being made. Among the questions asked was one concerning the costs of liquidation. We denied any information, but is not hard estimate these costs. The salaries the liquidating force, exclusive of attorneys, guessed approximately The work attorneys on basis. likely that the total routine of the liquidation may to year. that be added the interest which accumulating on the unpaid absurd charge, to what can be paid interest may not be paid in principal. That charge something like per year. the total the liquidation hardly less than year. on for five will years, at the least. When the the stock announced, receiver was reported as that had no illusions about to collect all of said he realized that much of could not reached. That appeared, at the time, to make. The situation at present that the depositors know absolutely about liquidation. Yet they and the general 10 know precisely the receiver doing, how rapidly he is liquidating the assets the old First National bank, how much all costing. They should know whether RFC an loan to asked for and, not, why not. good many shake their heads and do against such Perhaps But, even though seem think bona fide should be made get the facts. $7.00