4675. First National Bank (Waukegan, IL)

Bank Information

Episode Type
Run โ†’ Suspension โ†’ Reopening
Bank Type
national
Bank ID
945
Charter Number
945
Start Date
June 19, 1931
Location
Waukegan, Illinois (42.364, -87.845)

Metadata

Model
gpt-5-mini
Short Digest
48cc7087298943d8

Response Measures

Accommodated withdrawals, Public signal of financial health, Full suspension, Books examined

Description

Articles (both dated 1931-06-19) describe a heavy run on the First National Bank of Waukegan after the closing of the Waukegan State Bank; the board of the First National then decided not to open (a temporary protective shutdown) and examiners were called. The paper reports indications the bank would reopen within a few days. No permanent closure or receivership is mentioned.

Events (4)

1. March 28, 1865 Chartered
Source
historical_nic
2. June 19, 1931 Run
Cause
Local Banks
Cause Details
Heavy withdrawals triggered by word of the closing of the Waukegan State Bank; depositors rushed First National to withdraw funds.
Measures
President assisted depositors with withdrawal slips; bank received large deposits from others bringing money into the First National; directors later chose not to open to avoid further danger.
Newspaper Excerpt
terrific ... was started on the lone remaining banking institution, the First National bank. ... Charles Nelson Steele ... helping the people make out their withdrawal slips
Source
newspapers
3. June 19, 1931 Suspension
Cause Details
Board-ordered temporary closing (protective shutdown) in the face of a vast horde of depositors and a heavy run; bank examiners were called in.
Newspaper Excerpt
the board of directors of the Waukegan National bank decided against opening the institution this morning ... Indications are that the bank will be reopened within few days
Source
newspapers
4. * Reopening
Newspaper Excerpt
Indications are that the bank will be reopened within few days; the institution's examiner intimated it would be reopened within few days.
Source
newspapers

Newspaper Articles (2)

Article from Waukegan News-Sun, June 19, 1931

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Article Text

FEAR THEFTS AFTER LARGE WITHDRAWALS Hysterical People Who Drew Money From Banks Should Have Left It There; Many Sure To Be Theft Victims. Special police were called out and available deputy sheriff Lake county pressed into service for tonight to protect hysterical loresidents who drew their savings from the First National bank opened themselves to the serious risk being robbed. Policemen now on vacation were recalled to active duty. and number of officers regularly on the day shift were transferred to night duty. Special squads will patrol the city tonight and detectives will keep close watch on business centers down town to prevent raids or attempted lootings. Professional burglars are now working in the city, is believed 'spotting" homes for robbery, knowing that residents have withdrawn their money from theftproof bank vaults place their savings in bureaus, desks, and in precarious hiding places in their homes. Arrest Suspicious on the streets permitted after dark. and all cers have been to and hold all suspicious characters. merely preparing ourselves for any emergency that might arise from city's present financial Chief of Police Ed Ahlstrom who came from hospital take command of the city's peace officers, declared today. are hoping that no violence will be reported. that our display of lice strength will instill fear in hearts of hoodlums now in the city Although the police force is usually undermanned this season the due many officers being away on Ahlstrom declared that the addition of special officers and impressing emergency of sheriff deputies would enable department men to fully patrol the entire city. Chief Ahlstrom has asked citizens to report to the police any suspicious characters found in the city tonight.


Article from Waukegan News-Sun, June 19, 1931

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Article Text

SHUT-DOWN ORDERED BY BD. OF DIRECTORS MAY BE TEMPORARY, REPORT Move Is Taken To Protect terests Of Depositors Who Did Not Withdraw Funds, And Indications Are That The Bank Will Reopen Within Ten Days; First National Takes Care Of Heavy Run Of Withdrawals And Is Safe. To protect the interests of depositors who declined to withdraw their funds following the closing of the Waukegan State bank yesterday, the board of directors of the Waukegan National bank decided against opening the institution this morning in the face of vast horde of depositors who were waiting to get their money. Indications are that the bank will be reopened within few days. As word of the closing of the Waukegan National was circulated around town, vast crowds gathered at the city's busiest corner, Washington and Genesee streets, and terrific was started on the lone maining banking institution. the First National bank. Charles Nelson Steele, greatgrandson of the founder of the First National and at present the institution's president, radiated confidence he moved in and out among the crowds in the foyer, helping the people make out their withdrawal slips and smilingly promising that all would get their money. Contact with Steele caused many those who came to to throw their glips. step attempt to reason with neighbors in the who were. caught in the general financial hysteria. Money Brought In Huge amounts of breaking the record brought into the city yesterday when the Waukegan State bank closed, delivered to the First National today and with the exception of depositors seeking to withdraw. the situation calm and confident. Faced with heavy run that threatened the safety of the institution this morning. the Waukegan National directors decided against opening and called in H. Reimnational bank examiner out of the Chicago office the chief national bank examiner. Mr. Reimers was temporarily charge of the bank but was to relieved today by Harry W. Walker. national bank examiner. Mr. Reimers failed to any very serious consequences in the situation and intimated that in his opinion the would be reopened within few days. To Reopen Safety Vaults To avoid confusion the safe deposit vault in the Waukegan Safe Deposit company, subsidiary the Waukegan National bank, was closed the but will reopened as soon the hysteria subsides. There comparatively few people gathered about the Waukegan National during the H. Burnett, president of the Waukegan National, his home after the meeting and was reported to be considerably upset by the turn events. He was unable to make statement. The capital stock of the Waukegan National $250,000 and the surplus $150,000 according the bank statement of March 25. The undivided profits, net, that time were $26,845 and the bank carries serve The deposits amounted to with total assets $4,076,071.34. The bank building. furnishings and equipment are valued $248,915.10. List Stockholders Stockholders of the Waukegan National Bank and the number of shares credited to each for tax (Continued on Page 2, Column