5244. State Bank (Rock Island, IL)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
September 30, 1931
Location
Rock Island, Illinois (41.509, -90.579)

Metadata

Model
gpt-5-mini
Short Digest
222722c6

Response Measures

None

Description

The articles describe a run on the Central Trust & Savings Bank and that the State Bank of Rock Island (along with other Rock Island banks) imposed a 60-day notice rule to restrict savings withdrawals. The State Bank did not close permanently; restrictions were imposed to protect depositors and normal activity resumed, so this is a suspension (withdrawal restriction) with reopening. Cause attributed to runs and contagion from other local banks and disturbing incidents in the area.

Events (1)
1. September 30, 1931 Suspension
Cause
Local Banks
Cause Details
Runs and contagion from the voluntary closing of Central Trust & Savings bank and general local banking panic/rumors in Rock Island area prompted 60-day withdrawal restriction on savings accounts at the State Bank of Rock Island.
Newspaper Excerpt
the imposition during the morning of the restriction requiring 60-day notice for withdrawal of savings accounts by the Rock Island Savings bank, the State bank of Rock Island and the Manufacturers Trust & Savings bank.
Source
newspapers

Newspaper Articles (3)
1. September 30, 1931 The Rock Island Argus Rock Island, IL
Article from The Rock Island Argus, September 30, 1931

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Article Text

Developments In Bank Situation Central Trust Savings bank Rock Island closed by action board of directors to conserve interests depositors; representatives of state auditing partment in charge. Manufacturers Trust Savbank, Rock Island Saving and State Bank of Rock Island impose 60-day notice rule stop runs and protect Board of directors of Manufacturers Trust bank to meet this to determine the future policy of institution. group of Rock Island merchants page advertisement expressing confidence in and declaring they will accept payment for purchases savings checks the banks that 60-day notice of withdrawals. Officials and campaign workof membership campaign in expression fidence checks will be accepted on any bank tricities. Bettendorf, industrial leader, named chairman of board American Savings Bank Trust company, Davenport, reorganize during day restriction of savings and commercial deposits. Union Savings bank, Davenport, places despite heavy run during day, and remains open extra hours to meet requests of depositors. Home Savings bank and Northwest Davenport Savings bank announce 60-day deposit withdrawal rule. Same rule adopted Bettendorf bank and Buffalo Savings bank. Peoples Savings Bank Trust Moline. Moline State Trust Savings bank, announce no restrictions withdrawals, does State Bank of East Moline.

2. September 30, 1931 The Rock Island Argus Rock Island, IL
Article from The Rock Island Argus, September 30, 1931

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Article Text

Financial Situation Is Climax of Crisis in Rumors and Series of Untimely Incidents Affecting Banking Structure. PAYMENTS ON SAVINGS ACCOUNTS STOPPED Appeal to Public to Be Calm in Emergency; Closed Bank Regarded as Solvent and Capable of Covering All Money on Deposit. Unfortunate circumstances developing during the past week in banking, resulted this morning in the closing of the Central Trust Savings bank of Rock Island by order of its board of directors, and the imposition during the morning of the restriction requiring 60-day notice for withdrawal of savings accounts by the Rock Island Savings bank, the State bank of Rock Island and the Manufacturers Trust & Savings bank. At o'clock this afternoon officers of the ManufacturTrust bank announced its board would meet later in the afternoon to discuss its future policy and to determine whether or not it is advisable to attempt to continue the operation of its commercial department under present circumstances. Immediately upon the opening of the banks this morning, runs developed, and within minutes after the opening, the officials of the Central Trust Savings bank ordered business suspended. It was stated by officers of the Central Trust bank that action in closing the bank was taken for protection of depositors, and that the bank will liquidate in full its obligations to depositors. This statement was supported by the view of representatives of the office of Oscar Nelson, state auditor of public accounts, who immediately assumed charge of the bank for an audit and examination. The other three Rock Island banks enforced the 60-day rule during the height of the run this morning. Merchants to Honor Checks. Following the orders restricting this mornof representative Rock Island merchants ing, a group made public announcement of their willingness to accept checks against savings accounts in Rock Island banks in for merchandise purchases. These merchants payment unqualified terms declared their confidence in the security and stability of Rock Island's financial houses, and urged the public not to become disturbed by the developments of the day. In Moline and East Moline the banking situation today ported be comparatively calm. Officials Peoples Savings Bank Trust the Moline company, State Trust Savings bank and the Bank of East Moline anState nounced that they had imposed restrictions withdrawal Davenport the Union posits. bank continued meet Savings withdrawals, while steps for the the American Savings Bank Trust company, which yesterday adopted 60-day notice rule on savings and commercial deposits, were under way with of Bettenthe naming dorf chairman of the board. Incidents Disturb Public. The climax of the disturbance the banking situation in Rock land today came after succession developments that unsettled the public mind many instances. Last the Savings bank Moline hill district voluntarily closed and placed its affairs control the audioffice. The suicide two days later of Walter Hanson, assistcashier the bank revelation that the audit disclosed of about in On the heels of this came the closing the State bank East Moline. imposition 60-day notice requirements by the bank about deposits, was one the final the background and depositors of Rock Island banks. the rectors the Rock Island banks had all to large cash supplies meet the situation day. brunt the run the beginning of the Central Trust and bank, and its had placed for its the hands of the board's tive Bankers the and city the imposthe 60-day notice ings been agreement reached for concerted action. Close After 10 Minutes. Five minutes before this morning there were half dozpeople the sidewalks near the entrances the Central Trust bank. o'clock there were 150 and 200 depositors the lobby of the bank. with withdrawal of funds, chiefly savings accounts. The committee of the directors five minutes after minutes later had ordered business suspended. Patrolmen Charles Miller and Thomas the Rock police department were hand the bank, and the quest of the bank officials took over the task of clearing ately banking house all except the doors employes. were closed. Groups of people gathered the sidewalk. No turbance developed, and many waiting the bank windows withdraw money declared loudly that they approved of the bank, and were not worried their deposit. Checks money on torn up. Crowd Attracted. Instantly word flashed over thousands of telephone lines through city, and within half an hour the streets near the Central Trust were jammed with people and automobiles, and run large was other banks, the Rock Island Savings bank which occupies quarters directly across the street from the closed Central Trust. 150 and 200 tomers and banking room of the Rock Island bank. Many departed withdrawing funds after discussing the situation with officers the bank. At Manufacturers Trust bank there unusual crowd any time, but there steady of savings, and the directors less than an hour determined that situation quired imposition of the restriction withdrawals savings. Typewritten notices

3. October 1, 1931 The Rock Island Argus Rock Island, IL
Article from The Rock Island Argus, October 1, 1931

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Article Text

CONFIDENCE BANKING SITUATION REFLECTED AS EXCITEMENT PASSES Hysteria of Yesterday Gives Way Quickly in Rock Island as Public Shows Desire to Preserve Business Structure of Community. RUN ON DAVENPORT BANK BEGINS TO EBB Deere Co. Issues Statement of Confidence in Peoples Savings Bank Trust Company; Moline State Bank Applies Notice Rule. Hysteria and excitement which created turbulent day in quad-city banking history yesterday had disappeared in Rock Island today and was dwindling in Davenport. In Moline the 60-day rule was imposed by the Moline State Trust & Savings bank. Those persons in Davenport who could not be dissuaded from withdráwing their deposits at the Union Savings bank, Davenport, transacted their business to strains of lively music by an orchestra stationed in the bank. Business men, churchmen and civic leaders talked to the crowds and urged a calm view of the situation, and assured skeptical depositors that there was no occasion for alarm. In Rock Island the examination of the Central Trust & Savings bank, occasioned by the voluntary closing yesterday to protect all depositors, was begun under the direction of Jaeger, examiner in charge representing Oscar Nelson, state auditor public accounts. Normal activities in progress at the three other Rock Island banks which yesterday imposed the 60-day notice rule for withdrawal of savings deposits, the Rock Island Savings bank, the State Bank of Rock Island and the Manufacturers Trust & Savings bank. None of the excitement of yesterday was in evidence. Deere Co. Statement. At Peoples Savings Bank Trust company, Moline, persons who entered the banking house handed copy of statement signed President Wiman Deere Co. The statement presses the confídence of Deere Co. the soundness the Peoples Savings Bank Trust announces that Deere the extent of its power and ability, with the cooperation othdepositors, will aid and support the bank." Nearby Iowa communities felt the effect of banking velopments of the last week, when the Peoples Trust Savings bank Clinton, DeWitt Savings bank DeWitt, and the Union Savings bank of Wilton, Iowa, closed, and the bank nounced would require 60-day notice deposit withdrawThe First National bank of business usual. The City bank of Clinton revoked the requirement for 60-day notice of it ready to pay all depositors. Statement by Hallgren. the Trust and bank held ference late after the close of for the day, lowing which Carl issued formal statement follows: Manufacturers Trust and bank in for the purpose of taking over the deposit liabilities bank that had been closed, and for the tection the that Every depositor paid in full. sound carried on its business servative and businesslike "Unusual which vailed yesterday the height of the the closone Rock Island bank quired careful analysis and sideration. directors agement the Trust Savings bank felt that necessary carefully measeffect the developments of the day, in order determine whether further restrictions were necessary full protection of depositors and best interthe community. happy to announce that after the careful and thorough analysis situation, judgment that there no reaany further measure than the requirement the 60-day tice as provided by the state banking for withdrawal savings Manufacturers Trust and Savings bank in position to tinue normal activities, and will continue to serve its customers usual. are gratified by the general expressions confidence and believe that that the public has given calm thought to the will realize that there occasion fear alarm, that measures which have taken for the protection best interests of the depositors the community. "No depositor has ever lost penny of in Rock Island bank in the entire history of the Rock Island depositors who called to sign the notices were shunted from the main banking rooms to private established the They were greeted of the bank talked the situation calmly with them. Very notice of of the amount of deposits. Most of those signed did arrange meeting current and limited the notice to sums estimated actually needed for such purposes. deposits were to the volume greater. Officials reported number of new accounts opened with substantial deposits. Explain Banking Process. handling this situation the best judgment have the welfare of depositors and bank officials told savings account depositors. shall endeavor to impose no hardships there any way avoid them. The banks sound depositors need have no alarm, but bank immediately cash the full amount of its posits. All money deposited us not kept in the vaults. has been loaned perfectly sound security the ordinary course business. The people who borrowed from the banks agreed pay and but they have not many cases tracted to back they rowed in days in six months. Ordinary cash requirements always met, but every depositor be paid full amount deposit 60 because loans made sound can not be collected that In almost all instances the planation the fundamental proof banking the assurance bank officers that depositors need worry ness the banks. resulted in limitation notices normal needs. Those who withdrawal few number. houses accepting savings account checks in Rock (Continued on Page Nine.)