4248. Central Republic Bank and Trust Company (Chicago, IL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
June 28, 1932
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
c62d23d0

Response Measures

Borrowed from banks or large institutions, Public signal of financial health, Full suspension

Other: Deposits/liabilities later assumed by City National; RFC sued stockholders in 1934 for unpaid balance.

Description

Newspaper articles describe heavy withdrawals/a run in June 1932 (Dawes returned to reassure depositors and obtained borrowing), and indicate a prolonged run forced the bank to close a few months after the 1932 loan. Deposit liabilities were assumed by City National; assets were placed in Central Republic Trust Company for liquidation. RFC later sued stockholders in Nov 1934 and sought appointment of a receiver. Dates for the initial run are taken from June 1932 articles; closure is described as occurring a few months after the 1932 loan (hence categorized as permanent closure). Some exact dates (closure) are not explicitly given in the snippets; I note this uncertainty here.

Events (3)
1. June 28, 1932 Run
Cause
Rumor Or Misinformation
Cause Details
Merger rumors and widespread rumors about the bank triggered heavy withdrawals during late June 1932; Dawes issued statements denying merger rumors.
Measures
Obtained loans from New York correspondents and the Reconstruction Finance Corporation; Dawes issued public statement denying merger rumors and declared the bank safe.
Newspaper Excerpt
After almost score of years ... The Central Republic for week had been subject to heavy withdrawals. Merger talk was in the Liquidation was discussed by air.
Source
newspapers
2. August 1, 1932* Suspension
Cause
Rumor Or Misinformation
Cause Details
Prolonged run (originating in the June 1932 withdrawals/rumors) forced the bank to close a few months after the emergency RFC loan in 1932; deposit liabilities were assumed by City National Bank and Trust Company.
Newspaper Excerpt
A prolonged run forced the bank to close two months after the loan was made.
Source
newspapers
3. November 20, 1934 Receivership
Newspaper Excerpt
The RFC filed suit ... asking appointment of receiver to collect the $14,000,000 ... The sum due ... is the unpaid balance of the famous $80,000,000 loan negotiated by General Dawes in 1932 ... A prolonged run forced the bank to close two months after the loan was made. (multiple Nov. 20, 1934 articles).
Source
newspapers

Newspaper Articles (14)
1. June 28, 1932 Kansas City Journal Kansas City, MO
Article from Kansas City Journal, June 28, 1932

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'DAWES SAFE Steamboat Toot of AFTER HEAVY RUN OF Former Vice President Returns to Helm at Chicago in Emergency. United June "Dawes the Central Republic Bank and Trust company, began business with enough cash in its Tuesday vaults to pay every depositor down to the last penny This "impregnability" was Gen. Charles Gates Dawes' way of obhis return to activity in the institution he founded thirty years ago. After almost score of years of allowing public demands first place his career. he leaped into the at directors' meeting Sunsaddle when he was restored to his day former position as chairman of the board. The Central Republic for week had been subject to heavy withdrawals. Merger talk was in the Liquidation was discussed by air. Spends Busy Day. In slightly more than hours of the dynamic action that made him famed. Dawes changed statement was issued. forcefully denying merger rumors. Loans of were made from four other big Chicago from New York correspondents of the Central Republic, from the Reconstruction Finance corporation. Then while rumors still flew, he stepped dramatically from his office Monday, statement in hand. It read: "The demands on the Central Republic Bank and Trust company during the last week made necessary recourse to borrowing to meet them. Declares Bank Safe. "These loans have been completed and place the bank in an impregnable position. Then "Hell 'n' Maria" Dawes jammed his upside down pipe into corner of his mouth and went home to rest. The Central Republic was formed of the Central through merger Trust company and the National Bank of the Republic in July, 1931 The Central Trust was organized in 1902. when Dawes retired as controller of the currency. While vice president, ambassador to Great Britain and head of the Finance corporation, he was tion honorary chairman. Dawes resigned as head of the finance corporation to return to vate life. but his friends boomed during the him for vice president Republican convention two and he was compelled to weeks ago issue statement making it clear that he was not candidate.

2. July 22, 1932 The Messenger Belleville, IL
Article from The Messenger, July 22, 1932

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Senate Votes to InvestiLoans Made by R.F.C. Washington, July Senate investigation of loans made by the Reconstruction Finance Corporation was authorized yesterday at the same time that administration spokesmen were turning their guns on the proposal of the Democratic House leadership to inquire into the treasury department, federal reserve board, and the office of the controller of the cur rency. Provision for a confifidential examination of loans made by the Reconstruction Finance Corporation was made by the Senate's passage of the resolution sponsored by Senator James Couzens (Rep., Mich,) setting up committee of inquiry composed of five senators. The resolution was adopted over the objections of Senator George W. Norris (Rep., Neb.) who demanded passage of his own resolution requiring the corporation to make full and public report of all loans. Fight Publication of Loans The Couzens resolution provides that the committee shall report only loans about which it deems the Senate should be informed. Its sponsors took the position that for the corporation to be forced to publish the details of all the loans would be to break faith with borrowers and also would act to make the law retroact- ive. In opposing this policy of secrecy Senator Norris cited the 80 million dollar loan recently obtained by Gen. Charles G. Dawes' Central Republic Bank and Trust company of Chicago. Gen. Dawes announced that he had obtained dollar for dollar of the deposits in his bank the run on the bank immediately stopped," said Senator Norris. No use warning us against $10 counterfeit bills. The last 10-er we had our hands on was back in 1929.

3. July 28, 1932 The Salt Lake Tribune Salt Lake City, UT
Article from The Salt Lake Tribune, July 28, 1932

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THE FORUM Our Readers By of Russian Told by Europe Traveler Editor Tribune: reader of your four asks the Russian women are compelled or forced to work in the dustries. Traveling in any nation Europe, becomes very familiar see and walking the streets working, not factories, but also in the fields, gathering crops, on beaches, cur and drying fish and many other labors that should And Russia the only difference that the ran short He several compel anyone work. plenty Hence the soviet officials had to out the get the help they so sorely needed. Considering seven years of war, Roosevelt, it must be added, knew to make the best use this pohis ceptance, which carried out vigor the novel atmosphere of the Howe, too, said to have furnished the Alfred Smith which rang the bell in the the 1928 Happy This Howe who knows how to use words and phrases catch the errant public fancy useful talent American Mayor Walker of New York has the same talent in much cheaper form, his there is worth policy be advanced by the phrases. type has proper in promoting the sound policies of his friend and (From the Portland Oregonian.) partisans because the Reconstruction Finance large loan Chicago bank that General Dawes heads. Dawes Republican. There fore sin shame lend his bank money, in the Democratic Runs were in progress on the three banks of Chicago, the If three banks had been forced, sound they and are basically, to close in the face of and by the tragedy involved have one unparalleled in American finance. would have the whole middle Dawes applied for and obtained loan from the Finance corporation. He issued brief statement publicly, notifying depositors and money was hand to every depositor full run on the bank ceased. The the two banks the the crisis was That precisely the kind of service that the Finance cor was set up to perform. was the most important and valuable that corporation has performed up to date. saved in three great from having indefinitely. saved the whole region of the middle west from financial and business and industrial prostration. There are Demthe government "gave 80 Dawes.' for the bill for loans that deonly through veto. The Finance corporation has justified its fully in the Chicago silly of Democriticise an action that plainly averted widespread dis The new taxes give gum chewing the has vulgarity master the

4. August 4, 1932 The Homer Star Homer, NE
Article from The Homer Star, August 4, 1932

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OFFICIAL PAPER DAKOTA CO. Tough Competitor Uncle print envelopes local printers, dental dentists, he can loan money, shiphandle railroads, buy wheat, groceries, mills, but there one thing that he cando, he cannot any money business. The taxpayer, who called meet all the found this out. Just the government going into businthousands of people are going In meantime, taxes have increased the Federal government 730 cent, those per have "going hard pay much Uncle his the TaxpayAmerica's greatness is built, not industry and the thrift rank file of the people. the government eventually finds back its propsphere, when quits competing with taxpayers, when commences again successfully with crime, with taxes, functions. that individreponsibility represents opportunity, again enjoy the fruits our our ive genius, get back Buffalo, Minnesota. Good Investment Only raise their definite far cents little energy solving ones financial who insists home gardens are not that cheaper than he can grow the things to his dinner table. has much learn. Along this line is interesting note that men convention Chicago gave out the land enough vegetables can raised single season 160 people This includes the celonions small such and potatoes food taken for grancountry many realize magnitude the work involved growing, canning, and preserving supplying table. One bad would place the nation near the starvation point that would be most such years would mean this ahead for food the people pressure other always exists potentially. why garden. That why the garden safeguarding yourself and family against then there nothing left worthy being called good vestment. Just As Expected To meet demand and against the Finance corporation, last minute before adjournment passed measure requiring publicity loans made by corporation. Now leaders of congress the statecomply the terms the that the the loans made by the corbe keen dissappointthe The people the funds the finance are forcibly from their pockets the form increased taxation, have know the disposition made those funds. not forgotten that General resigned the the poration its funds, with which to stave off run his bank. There are other bands which need did General Dawesthey nothing story of bunking the the money has and then struing the classes. Some day there will turn in this long political hooey buncombe. Hot air stand finement certain point, then goes the Do You Know? Can name stores, business know what they do, Do you know whether their prices high, or low, just about right? you anything in particular about perhaps isn't your fault dead adver-

5. November 5, 1932 The Mercury Manhattan, KS
Article from The Mercury, November 5, 1932

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SATURDAY, PLATFORM street lighting. Efficient solution of the parking problem. sewer. and prosper. trouble should be encountered in marking next Tuesday, in spite of its nature. you are good after each candidate of that put cross Prince of Wales was born in Wales than years but doubtless with no ago premonition whatsoever that his descendant of the twentieth century would cause the whole to concerned about his prolonged Touching drama was introduced into President Hoover's Louis speech Friday night he recounted the valiant and successful off apparent disaster for the great Chicago bank which Gen Charles Dawes was interested and in the saving of which the Reconstruction Finance corporation important part.

6. September 8, 1934 The Houston Post Houston, TX
Article from The Houston Post, September 8, 1934

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Inside Notes on Hoover Regime By THEODORE JOSLIN the Redbook. (Editor's Joslin was President Hoover.) THE difficulties the Chicago which General Dawes bank the head, which returned retiring from 1932. Confidential advices start panic White weakened situation, House June Saturday the had the had bank might not open Monday The president, from the minute he the stayed the Monday morning, deposit $140 mercial whom engaged deposits included the necessary pay discharge incurred the course business. Jeopardy these thouworkers would thrown sands army Among the Chicago bank county should fall, these would They had fifteen States. Several thousand banks scattered the country the who were their through Hoover obtained foregoing information continuous telephone the business the assets. publican directors mended The agreed and demand positors. on Monday all the threatened banks that funds began return. was The loans granted the RFC time. president had his thorities good the RFC was about that Dawes big loan from the Hoover the political that come the telling early campaign. plained that not "play human misery. other single happening during the White House weeks the session, the rioting, and the from telling the shall produce heretofore ing new light on the attitude toward showing Mr. Hoover's the in seriousness Federal appreciated demonstration beginning Columbia. Likewise violence. The prob possibility the marchers presented squarely the start. jurisdiction. the authorities. consideration reply made important, the to let the veterans he flatly refused ask for permission committee that them. Make appointfor the House, the march Out considera their the president the that quietly suggested congress funds transport the their homes, existed their has made known before. veterans the get government transradical protracted stay time for government order proceed public relief the therefore, were issued needy. Orders, evacuate. to The morning Almost simuland several other the and elsewhere the camps stones, and the police order The attacked began their were Serious rioting followed. The not cope with the situation. House quickly the not act should The the president identically the same request made circumthe governor State city the State. the first government, directing troops put into the disturbed area He took this action the deepluctance. that troops moved trouble area without firearms. request by the command. That action taken, rested military officials and weigh their decision that diers use guns, sticks.

7. November 20, 1934 The Great Falls Leader Great Falls, MT
Article from The Great Falls Leader, November 20, 1934

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Government Sues to Collect Giant RFC Loan to Chicago Bank CHICAGO, Nov. holders of Republic Trust company, headed former Vice President Charles Dawes, today faced the prospect of having to from their pockto part due the Finance corporaThe RFC filed suit in federal district court yesterday, asking collect the $14,000,000, equal the trust total under the providing double liability for stockholders. The sum federal loan agency the unpaid balance the famous loan negotiated by General Dawes 1932 for the Central Republic Bank and Trust pany, of which shortly after he retired as head the RFC. run forced the bank to close two after the loan made. liabilities were sumed by the City National Bank and Trust the Central Republic paying over out the RFC loan an the Dawes now heads the City National.

8. November 20, 1934 Ames Tribune Ames, IA
Article from Ames Tribune, November 20, 1934

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IN BANK Sued For 14 Millions of 60 Millions Still Due CHICAGO, of the Central Republic Trust com pany, headed by former Vice Pres ident Charles G. Dawes, Tuesday faced the prospect of having to dig $14,000,000 from their own pockets pay part of due the Reconstruction Finance The RFC filed suit in federal district court late Monday, asking of receiver to lect the $14,000,000 equal to the trust total capitaliza tion, under the law providing double liability for bank The sum due the federal loan agency the unpaid balance the $80,000,000 loan nego by General Dawes 1932 for the Central Republic Bank Trust company, of which he was shortly after he retired as head of the prolonged run forced the bank close months after the loan was made. Deposit liabilities were assumed by the City National Bank and Trust ompany, the Central Republic paying over out of the RFC loan an amount equal to the deposits. Dawes now heads the City National. Paying Debts Other liabilities and assets of the railed bank were transferred to the Central Republic Trust com pany, which for twc years has been liquidating the bank's assets paying debts. The RFC suit stated that State Auditor Berrett planned take over the trust company for liquidation under state Other liabilities have for the most part been paid off, the suit said. while the RFC debt was left to the last. The loan has been in default since 1932. was made temporary basis purposely to guard its the time the loan was made Dawes declined small loan to meet the emergency of deposit ors' run and said close the bank the RFC refused cash to cover deposits fully. Other Chicago banks, fearing the effect major bank failure, interceded carry his point.

9. November 20, 1934 Marysville Journal-Tribune Marysville, OH
Article from Marysville Journal-Tribune, November 20, 1934

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SUES LOAN TO BANK DAWES AND OTHER STOCKHOLDERS FACE PROSPECT OF HUGE SUM FROM OWN POCKETS. CHICAGO, Nov. of the Central Republic Trust Company, headed by former Vice President Charles Dawes, today faced the prospect of having to dig up $14,000,000 from their own pockets to pay part of due the Reconstruction Finance Corporation. The RFC filed suit in federal trict court late yesterday, asking appointment of receiver to lect the equal the trust company's total capitalization, under the law providing double liability for bank stockholders. The sum due the federal loan agency is the unpaid balance of the famous $80,000,000 loan negotiated General Dawes in 1932 for the Central Republic Bank Trust Company, of which he was chairman, shortly after he retired head of the RFC. forced the bank to close two months after the loan made. Deposit liabilities were assumed by the City National Bank and Trust Company. The Central Republic paying over out of the RFC loan an amount equal to the doposits. Dawes now heads the city National. Other liabilities and assets of the failed bank were transferred the Central Republic Trust Company. which for two years has been uidating the bank's assets and paying debts.

10. November 20, 1934 The Belleville News-Democrat Belleville, IL
Article from The Belleville News-Democrat, November 20, 1934

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CHARLES G. DAWES' BANK SUED BY RFC (Continued from page chairman, shortly after he retired head of the RFC. A prolonged run forced the bank to close two months loan was made. Deposit liabilities assumed by the City National Bank and Trust Company, the Central Republic paying out of the RFC loan an amount equal to the deposits. Dawes heads the City National. Other liabilities and assets the failed bank were transferred the Central Republic Trust Company, which for two years has been liquidating the bank's frozen assets and paying debts. State to Name Receiver. The RFC stated that State Auditor Barrett planned take over the trust company liquidation under state Other liabilities have the been paid the suit said, the RFC debt was left last. The loan has been in default December on basis posely give the RFC power guard its funds. the time the loan was Dawes declined small loan the emergency of depositand said would the bank RFC refused cash cover deposits fully. Chicago banks, fearing the fect of major bank failure, terceded to carry his point.

11. November 20, 1934 The Bellingham Herald Bellingham, WA
Article from The Bellingham Herald, November 20, 1934

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FILES SUIT $14,000,000 Sought From Dawes Stockholders Central Republic Trust Company. headed former Vice President Charles Dawes, today faced prospect of having dig up pay part of $60.due the Finance Corporation The RFC filed suit in federal district court late yesterday. asking collect the $14,000,000. equal to the total der the law providing double bility for bank stockholders. sum due the federal loan agency famous negotiated Dawes 1932 for Central Republic Bank and Trust Company, of which he was chairafter retired as head the RFC. run forced the bank close two months was made Deposit liabilities assumed by the City National the Central paying of RFC an equal Dawes now heads the City Other liabilities and assets the failed were Central Trust Company which has been the sets and debts. stated that State Auditor Barrett planned take the trust company liquidation under state receiver Other liabilities have the most been the part while the RFC debt was left to the The loan has been in default since December 24, 1932.

12. November 20, 1934 The Record Stockton, CA
Article from The Record, November 20, 1934

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Port Peace Body Named COMPANY FACES SUIT FOR $14,000,000 Stockholders May Forced to Dig Into Own Pockets Nov. (United of the Central Republic Trust Company, headed former Charles Dawes, today faced the prospect of having to dig up from their own pockets to pay part $60,476,437 due Reconstruction Finance Corporation. SUIT FILED The RFC in Federal trict Court late yesterday pointment of receiver collect the $14,000,000. equal to the trust company's total law providing double ability for bank stockholders The sum due the federal loan agency unpaid balance of the famous $80,000,000 loan negotiated General Dawes 1932 for Central Republic Bank and Trust Company, of which was chairman, shortly after retired head RFC. CLOSE A prolonged run forced the bank to close months after the loan made Deposit liabilities were assumed by the City National Bank Trust Company, the Central Republic paying RFC loan an amount equal the deposits. Dawes heads the National Other liabilities and assets the failed were transferred Central Republic Trust Company which for years has been dating the bank's paying The RFC suit that State Auditor Barrett planned take over the trust company for liquidation under state receiver Other liabilities have for the most part been paid off the suit while the RFC debt was left the last.

13. November 21, 1934 The Daily Advocate Greenville, OH
Article from The Daily Advocate, November 21, 1934

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Chicago, Nov. Stockholders Central Republic Trust Company, headed by Forrzer Vice President Charles Dawes today faced the prospect of having to dig from their own pockets to pay part of $60.476,437 due the Reconstruction Finance Corporation The RFC filed suit in federal district court late yesterday, asking appointing receiver collect the equal to the Trust Company's total capitalization, under the providing double liability for bank stockholders The sum due the federal loan agency the of the famous loan negotiated by General Dawes 1932 for the Central Republic Bank and Trust Company of which he chairman. shortly after he retired as head of the RFC prolonged run forced the bank close two months after the loan was made. Deposit liabilities were assumed by the City National Bank and Trust company. Central Republic paying over out of the RFC loan an amount equal to the deposits. The RFC suit stated that State Auditor Barrett planned to take over the Trust Company for liquidation under state receiver. Other liabilities have for the most part been paid off. the suit said While the RFC debt was left the last.

14. November 27, 1934 Norfolk Daily News Norfolk, NE
Article from Norfolk Daily News, November 27, 1934

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The Dawes Loan Case (Sioux City Tribune) Suit brought the stockholders Republic Trust the Central Bank Trust better known the bank, bank under double clause about the which the bank still government. The Dawes bank loan has sumed significance the public mind which probably out portion its importance ranted the facts. has symbol in the public mind of that represented. typified Hoover philosophy turned the spotlight that contributed greatly to his political downfall. Yet the facts the case ranted the action This writer Chicago the time the great the bank progress, observed the ing thousands enter bank withdraw their deposits exciting and impressive demonstration. Had the federal government acted the emergency. the bank closed and the depositors would have lost At bank kept afloat, the people got their money depositors other banks undoubtedly were spared. welfare of the whole Chicago community stake Hoover's acted for the welfare of the com munity. But the prominence former Vice President the political financial picture that period served dramatize the whole proceeding. The loan made shortly after Dawes resign head RFC and the whole thing looked like collusion. credence the charge that ernment could find millions sist busted bankers nothing for the relief of starving humans. The loan became political football, choice morsel for campaign orators and flaunt to masses, though reality the masses. The Tribune long has been convinced that did the only sensible thing he could have done going the Dawes bank. The people, the will the Most the put for loan good, but time will be required to convert cash. bank was the ture the victim of circumthe same which banks and eventually to suspension banks. just happened among first suffer. the transaction personalities involved which gave such significance.