1.
October 18, 1929
Decatur Herald
Decatur, IL
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Plane Breaks on Taylorville Bank
Farmers' National Remains Open After Two Other Banks in City Close to Protect DepositorsPlans for Reorganization
Staff Representative) Oct. financial passed safely early afternoon. THEATERS SOLD An airplane dropped down near Taylorville with supply money for the Farmer's FOX Bank of Taylorville, ample meet demands of depositors. other banks in the town closed. Friday morning The Oct. National Bank of Taylorville and theaters the Frascini chain the Taylorville National Bank closed erating throughout Central Illinois, their doors in an attempt to check the Fox Film Co. was completed run which had developed following Friday morning. The purchase closing of Colegrove State said to have been $700,000. bank in Taylorville week ago. Either directly or indirectly The Turner State Bank of Edin- inick Frascini, burgh also failed to open Friday the following theaters which are morning making total of six banks cluded the sale: Mattoon, Christian county which have clos- leston, within the past Pana, Decision close the two Taylorville banks was reached special meeting the boards directors WATER HITS the two institutions Thursday The condition of the banks believed to be sound. One Bank Operating Friday only one bank in the Farmers' National, operating. Flagship for President HoovAdams, president of the Farmers' National, said that his bank Proposed Visit Is ample reserves of cash on hand would meet all withdrawals Stranded
Crisis Brought
Closing of the banks Friday brought the financial situation county to crisis. Since of the John B. Colegrove Taylorville week have to open. bank closed Thursday, Oct. The following Bulpitt State bank, the Colegrove bank closed. following day the Citizen's State in Edinburg closed. Friday morning three others closed. Coal Co. Helps turn in the panic which has swept the county evident Friday. Several prominent business in made deposits the offsetting by example the effects of steady withdrawals. The Peabody Coal Co. Friday morning deposited $90,000 the State bank to protect against run from depositors. Plan Reorganization Meanwhile plans for reorganizaand possible merger of the Taylorville banks were being discussed. Little progress can be made until national bank examiners arrive. Two of national banking department expected before night. The decision of the two Taylorville national banks to close taken in Interests of the positors officials said. Many small depositors became terrified at ruand rushed to the bank withdraw their funds. check the the directors decided close the bank. Roy Johnson president of the National bank and Troy Long. president the TaylorNational bank. Dorris Shumpresident of the Turner State bank Edinburg which of Friday.
Business Slow The situation attributed present slow conditions the Christian county community. Coal mining has unsteady for period of farming conditions have not the best. factors have (Continued on Page
2.
October 19, 1929
The Plain Dealer
Cleveland, OH
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PLANE BRINGS $500,000, ENDING RUN ON BANK
(Chicago Tribune Press Service) arrival of three Federal Reserve Bank officers in government airplane at 1:45 this afternoon with $500,000 in abruptly halted an all-day run on the Farmers National Bank here after five other Christian County banks closed their doors within week. this morning, when the Farmers National opened its doors, line gathered and withdrawals began. At noon 250 persons were in the line and hysterical men and women fought for positions near the cashier's window. Realizing that at the rapid rate of withdrawals. the available currency soon would be withdrawn. Adams, president of the bank, appealed to Federal Reserve officers. The airplane bringing the money landed here one hour and 50 minutes after the call for help was received in Chicago. squad of deputy sheriffs, and three automobiles escorted the money to the bank.
Depositors who were in the line were shoved aside with shotguns the guards entered the bank, the two gunnysacks containing the currency thrown over their shoulders. With the entry of the guards and money, the waiting line melted away. The First National Bank and Taylorville National Bank and the Turner State Bank Edinburg failed to open today. Colegrove State Bank Taylorville closed the State Bank Bulpitt the State Bank Edinburg closed
3.
October 19, 1929
Finger Lakes Times
Geneva, NY
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MONEY RUN on the which Oct. made out to member the sky money syndicate sent last month bags bring faith said he did not know panic stricken town and stave off from bank which almost cerwhere he serving tainly empty tence for carrying concealed vaults the only bank which repons mained open. One official asserted that The drone of an airplane motor though Capone check was signal that day slender link potential possisaved and that the line of 250 bilities revealing the ramificapositors the Farmers tions the syndicate's operations tional Bank need have no fears of were such that, getting their money Almost would things open. like magic the line faded away and Federal authorities professed another redepossible connection positing the money they earlier had gangsters and withdrawn. the syndicate Relief rushed by airplane to last June Willard the Farmers Bank by Chicago FedElliott, president the officials they bart Trust Company of Passale, learned that Taylorville's other when Elliott after three banks had been closed. days he could not explain Today bank were scanbut described his abduning the books of the three closed "Chicago gangsters banks banks in three others in of the Unitnearby Thus "frozen States office attorney's sets' have been unofficially blamed Trenon went to Passaic today for the shutdowns investigate possibility that The banks that have been closed liott had been held in connection John Colegrove Com- with efforts force financial aid bank; the Taylorville from his bank for the smuggling National Bank and First National Bank, all of the Citizens State Bank and the TurnFire Destroys State Banks, of Edinburg. the State Bank of Bulpitt.
4.
October 19, 1929
Evening Star
Washington, DC
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FUNDS DROP FROM SKY TO STOP BANK RUN AS 3 OTHERS CLOSE Plane Motor's Drone Saves Day and Customers Redeposit Withdrawn Money. By the Associated Press. tomers redepositing the money they earlier had withdrawn. TAYLORVILLE, Ill., October 19.Relief was rushed by airplane to the Out of the sky yesterday dropped money Farmers' Bank by Chicago Federal Rebags to bring renewed faith to a panicserve officials as soon as they learned stricken town and stave off a bank run that Taylorville's other three banks had been closed. which would almost certainly have reToday bank examiners were scanning sulted in empty, vaults at the only bank the books of the closed banks. Thus which remained open. far, "frozen assets" have been unofficially blamed for the shutdown. The drone of an airplane motor was The banks that have been closed are: the signal that the day was saved and John B. Colegrove & Co., State Bank, that the line of 250 depositors in front the Taylorville National Bank and the of the Farmers' National Bank need First National Bank, all of Taylorville; the Citizens' State Bank and the Turhave no fears of not getting their money. Almost like magic the line ner State Bank, both of Edinburg; the faded away and another formed-cusState Bank of Bulpitt.
5.
October 19, 1929
The St. Louis Star and Times
St. Louis, MO
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TAYLORVILLE MERGERS MAY BAR LOSSES IN CLOSING
Depositors Heartened by RuHalted by Airplane Remittance.
By Staff question minds this today what their prospective losses be of the closing three of the town's four banks. Miners, chants and others stood in front of the banks gazing the typed notices pasted and talking about of regaining their deposits. general opinion seems to be would be some loss depositors, but report that the Taylorville National Bank and the First National Bank merge and reopen heartened most of depositors. was pointed that similar year ago Shelby County, which adjoins Christian County, seven banks and that the banks reopened that reduced the loss of depositors to virtually Chief State Bank Examiner Nicholson, on the scene staff told reporter for The Star his investigation had not far the status of the closed Tried "Ride Out Deflation." Inability the banks collect examiner the loans were made the said that lands 1926 when land farm high that the bankers preferred out the deflation period" that followed rather than foreclose on their mortgages. just business judghe asserted. all. six Christian County banks closed They First all pany Turner Bank Edinburg. Farmers' State State The the first to This was last Friday. run started the after was rumored the wealthiest citizens of Illinois loan John Colgrove, head of the stitution. This and many other rumors were heard today wherever the reporter went. In barber hotels, the chief question much did have Deposits Total $2,900,000. The three Taylorville banks closed deposits Under Illinois, are liable for an amount twice stock. banks section of Christian County The of when Farmers' National here had died down today. $600,000, the bank open here When opened yesterday morning crowd 400 depositors rushed the doors. cried their bank books they pushed shoved line that passed the tellers' cages. Bank employes and shoutfor quiet they dealt out sheafs bank notes to the frantic deposThe was stopped in spectacular Adams, telephoned Springbank in an automobile The money rushed through and heaped in tellers' view of crowd. This, quiet them, Adams telephoned Federal officials Chicago rushed here airplane guarded by federal agents. The plane arrived hour and minutes after money was transferred guarded by deputy sheriffs policemen. the swept front the bank, guards, crowd. and their walked the building and the cages. The quiet two hours dispersed. withdrawn funds them. The Bank and this saved the The bank amount of bonds hand and borrow them. Colegrove attributed the condition bank to frozen assets. He that farm declined that the four of the Peabody Coal only one day during the because of in demand, throwing many men out work.
6.
October 19, 1929
News-Press
Fort Myers, FL
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Plane Drops Money Bags To Stop Run On Illinois Bank
(By The Associated Press) Out of the sky yesterday dropped money bags to bring renewed faith to a panic stricken town and stave off a bank run which would almost certainly have resulted in empty vaults at the only bank which remained open. The drone of an airplane motor was the signal that the day was saved and that the line of 250 depositors in front of the Farmers National bank need have no fears of not getting their money. Almost like magic the line faded away and another formed customers redepositing their money they earlier had withdrawn. Relief was rushed by airplane to the Farmers bank by Chicago Federal Reserve officials as soon as they learned that Taylorville's other three banks had been closed. Today bank examiners were scanning the books of the three closed banks and banks in three other nearby towns Thus far. "frozen assets" have been unofficially blamed for the shutdowns. The banks that have been clos ed are: John B. Colegrove and Company, state bank, the Taylor ville National bank, and the First National bank, all of Taylorville the Citizens State bank and the Turner State bank both of Edinburg. and the State Bank of Bulpitt.
7.
October 19, 1929
The Rock Island Argus
Rock Island, IL
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AIRPLANE USED TO PREVENT BANK RUN
Money Is Rushed by Air to Institution in Taylorville,
Taylorville, III., Oct. the Associated of the sky yesterday dropped bags to bring faith to panicstricken town stave off bank run which would almost certainly have resulted in empty vaults at the only bank which remained open. The drone an airplane motor the signal that the day was saved, and that the line of 250 depositors front of the Farmers National bank need have no fears not getting their money. Almost like magic the line faded away and another redepositing the money they earlier Relief rushed by airplane to the farmers bank by Chicago federal reserve officials soon as they learned that Taylorville's other three banks had been closed and that dangerous run had started. Today bank examiners were scanning the books the three closed banks and three others nearby towns. Thus far, "frozen assets" have been unofficially blamed for shut downs. The banks that have been closed John Colegrove Co., State bank, the Taylorville National bank the First National bank, all of Taylorville; the Citizens State bank and the Turner State banks, both Edinburg, and the State bank of Bulpitt. Taylorville merchants, confident that the banks' conditions were sound. basically advertised today that they would checks payable on any of the banks for merchandise. Crops were both blamed for the difficulty and looked to for relief. Failure per cent of corn crop was believed have caused the frozen assets, while the bean now being harvested, is expected ease the situation.
8.
October 19, 1929
Elizabethton Star
Elizabethton, TN
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PLANE SAVES RUN ON BANK
Money Bags Dropped From Sky For The Depositors the sky yesterday dropped money bags bring renewed faith to panie stricken town and stave off bank run which woud almost certainly resulted in empty vaults at the only bank which remained open.
The drone of an airplane motor was the signal that the day was saved and that the line of 250 depositors in front of the Farmer's National bank need have no fears of not getting the'r Almost like magic the line faded away and another redepositing the money they had Relief was rushed by airplane to the Farmer's bank by Chicago Federal Reserve officials as soon they learned that Taylorsville's other three banks had been closed. Today bank examiners were scanning the books of the three closed banks three other nearby towns. Thus "frozen assets" have been unofficially blamed for the shutdowns. The banks that have been closed are: John B. Colegrove and State bank. The Taylorsville National bank. and the First National bank, all Taylorville; The Citizen's State bank and the Turner State banks both of Edinburg the State Bank of Bulpitt.
9.
October 19, 1929
Evansville Press
Evansville, IN
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PLANE RUSHES GOLD CARGO SAVE BANK
Worst Run in History of Central Illinois Is Stemmed
United Press TAYLORVILLE, III., Oct. The rcar of an arriving airplane from Chicago with cargo of money, $500,000. halted an all-day run on the Farmers' National bank and is believed to have broken the back of the worst money scare in history of central Illinois. Friday morning the First National, Taylorville National and the Turner State banks posted notices that they were voluntarily closing doors to protect depositors. Immediately the run started on the Farmers' bank, the only maining bank open in Taylorville. Officials worked desperately allay the fears to stem the tide of depositors demanding their Finally in desperation. after appeared sure the bank would have to close under the pressure. Adams, phoned Chicago banks for help. Rush Order His plea was granted and the money placed special plane with orders rush the money to Taylorville bank. Fifty minutes after its departure from Chicago the big roared down the landing field and the pilot with his rich cargo was escorted to the bank by squad deputy sheriffs As word carried thru the city that money been asked for and that plane had arrived with the long line waiting to draw their savings melted away and the bank run over. All during the day business was standstill and in most establishments large signs announced checks cashed here Today the First National and the Taylorville National were considering merger. Failure the banks was blamed on decline farm values and slump in business.
10.
October 19, 1929
The Call-Leader
Elwood, IN
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THREE INSTITUTIONS CLOSE
The melodramatic arrival of federal reserve bank officers by airplane from Chicago at 1:45 p. m. today with $500,000 in cash halted an all day run on the only one of four Taylorville banks remaining and was believed to have broken the back of a money scare that has caused the closing of six Christian county banks in the last week. The money was dispatched from Chicago in response to a phone call for help from J. J. Adams, president of the Farmers' National bank here, after an alladay run had threatened to eat up all the bank's available cash. The run on the Farmers' National was precipitated when the First National, the Taylorville National, and the Turner State bank at Edinburg, near here, posted notices this morning that they had voluntarily decided to. close their doors to "protect depositors." Three Other Banks Closed. The closing of these three banks was a. direct result of the closing of the J. B. Colegrove State bank in Taylorville Thursday of "last week, followed by that of the Farmers' State bank at Bulpitt on the following day, and the closing of the Farm- ers' State bank at Edinburg yester+ day. The resulting scare caused the most serious bank run in the history of central Illinois. From 9 o'clock this morning, when the Farmers' National opened its doors, a line gathered and withdrawals began. The run continued unabated and at noon today $80,000 had been withdrawn. A large supply of currency had been secured by Mr. Adams, president of the bank, in anticipation of heavy withdrawals, but at noon, with over 50~persons lined up before the paying teller's window, fighting for positions, Adams realized that the avail. able currency would not be sufficient and appealed to Chicago federal reserve officials. Help Arrives Quickly. The airplane bearing the money are rived at the local airport in 1 hour and 50 minutes after the call for help was received in Chicago. A squad of. deputy sheriffs and police escorted the money to the local bank. Depositors who were in the line were shoved aside with shotguns as the guards entered the bank with the two sacks containing the currency. With the entry of the guards and money the waiting line, that extended into the street, melted away and the crisis was over.
11.
October 25, 1929
The Ripon Record
Ripon, CA
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Money From Sky Halts Run Bank on
Out of the sky Friday dropped money bags to bring rénewed faith stricken town off bank run which would almost certainly have resulted in empty vaults at the only bank which mained open. The drone of airplane motor was the signal that the day saved and that the line of 250 front of the Farmers' positors National Bank need have no fears of not getting their money. Almost like magic the line faded another redethe money they earlier positing withdrawn. Relief was rushed by airplane the Farmers' Bank by Chicago eral Reserve officials they learned that three banks had been closed. Today bank examiners the books of the three scanning banks and three others closed nearby towns also closed. Thus far, assets" have been unoffi"frozen cially blamed for the shutdowns. banks that have been closed The John Colegrove are: the Taylorville NationState bank; the First National al Bank and of the CitiBank, all State Bank and the Turner zens' State Bank, both of Edinburg. and the State Bank of Bulpitt.
12.
November 4, 1929
Decatur Herald
Decatur, IL
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NEBRASKA MAN BANK RECEIVER
M. E. Jensen Checked in, Assumes Duties in Taylorville
Nov. Jensen, Plainview, Neb., Monday was appointed receiver for the First tional Bank of Taylorville and the Taylorville National bank. He checked in Monday afternoon and preparing to assume duties in connection with the two banks closed two weeks ago. Mrs. Jensen declined to make any statement regarding the financial condition of the two banks. Mr. Jenhas had five years' experience National bank receiver.
13.
November 5, 1929
Herald and Review
Decatur, IL
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RECEIVERS OF THREE BANKS
Two Nationals and One State in Taylorville Are Taken Over
Nov. Jensen, Plainview, Neb., Monday was appointed receiver for the First tional Bank of Taylorville and the Taylorville National bank. He was checked in Monday afternoon and preparing to assume duties connection the two banks closed two weeks ago. Mr. Jensen declined to make any statement regarding the financial condition the two banks. Mr. Jenhas had five years' experience as National bank receiver. Colgrove Bank Receiver Late Monday was announced that Robert G. Early, prominent torney of Geneva, has been appointed receiver the John B. Colgrove state bank here. The Colgrove bank was closed about three weeks ago because of frozen assets. was the first of six banks in Christian county to be closed. Mr. Early is expected here Tuesday to take over management and reorganization of the bank. He has been the state banking department under State Auditor Oscar Nelson for some time.
14.
January 11, 1930
Decatur Evening Herald
Decatur, IL
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Receiver's 0. Expected Soon to Reopen Taylorville National Bank
(Special to The Herald)
TAYLORVILLE, Jan. Recommendation that the Taylorville National bank, closed voluntarily by its officers Oct. 18, be re-opened has been made to the state comptroller of currency by the bank's receiver, it was learned through reliable sources Open by End of Month It is believed that the bank will be open for business again the end of the month. period of ten days probably would have to elapse before the institution could be opened. should eopening be the det of the state comptroller A. when asked were true the had made such recommendation, declined to make definite statement. "Insofai as the matter is of confidential nature at present, am unable to confirm the report," he said, "but hope to be able make definite announcement to the people of Taylorville within two or three days.' Officers
Reopening of the National bank will bring joy to thousands of Taylorville people. It will put back Into circulation some $700,000 on deposit at the time the bank was closed. It also will help materially in the liquidation of the First National bank which was closed the same date. It is understood that new officers for the bank virtually have been agreed upon but their names have yet been made public,
15.
January 12, 1930
Decatur Herald
Decatur, IL
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Receiver's 0. K. Expected Soon to Reopen Taylorville National Bank
(Special to The Herald) TAYLORVILLE, Jan. Recommendation that the Taylorville National bank, closed voluntarily by its officers on Oct. 18, be re-opened has been made to the state comptroller of currency by che bank's receiver, it was learned through reliable sources Saturday. Open by End of Month It is believed that the bank will be open for business again by the end of the month. A period of ten days probably would have to elapse before the institution could be reopened, should reopening be the or der of the state comptroller. W. A. Cutler, receiver, when asked If It were true he had made such recommendation, declined to make a definite statement. "Insofar as the matter is of a confidential nature at present, I am unable to confirm the report," he said, "but I hope to be able to make a definite announcement to the people of Taylorville within two or three days' It is understood that new officers for the bank virtually have been rates are ralsed. More than 9,000 agreed upon but their names have residential phones escape increases. not yet been made public.
16.
January 12, 1930
Herald and Review
Decatur, IL
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Receiver's 0. K. Expected Soon to Reopen Taylorville National Bank
(Special to The Herald)
TAYLORVILLE, Jan. 11 Recommendation that the Taylorville National bank, closed voluntarily by its officers on Oct. 18, be re-opened has been made to the state comptroller of currency by the bank's receiver, it was learned through reliable sources Saturday. Open by End of Month It is believed that the bank will be open for business again by the rates are raised. More than 9,000 residential phones escape Increases. end of the month. A period of ten days probably would have to elapse before the institution could be reopened, should reopening be the order of the state comptroller. W. A. Cutler, receiver, when asked if it were true he had made such recommendation, declined to make a definite statement. "Insofar as the matter is of a confidential nature at present, I am unable to confirm the report," he said, "but I hope to be able to make a definite announcement to the people of Taylorville within two or three days." It is understood that new officers for the bank virtually have been agreed upon but their names have not yet been made public.
17.
January 13, 1930
JG-TC: Journal Gazette and Times-Courier
Mattoon, IL
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BANK TO BE REOPENED
Taylorville, Jan. dation that Taylorville National Bank, closed voluntarily by its officers October 18, be has been on made to the state comptroller of currency the bank's receiver, learned through reliable sources Saturday. believed that the bank will for business again by the end open the month.
18.
January 13, 1930
The Taylorville Daily Breeze Courier
Taylorville, IL
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ANOTHER BANK FOR TAYLORVILLE
The definite announcement that the Taylorville National bank is soon to reopen its doors comes as great news to the people of this community. It has been known from the time this bank closed last October that the directors' motive in closing the bank was to protect the depositors from a possible run on the bank that was inevitable because of the failure of other banks to withstand the runs upon them. This bank could not have withstood a run because it carried at that time a large number of loans that it could not immediately turn into cash and there would not have been enough available cash to pay all the depositors that would probably have withdrawn their funds. Few people in the community realize the task the stockholders have had in reorganizing the affairs of this bank in a manner that will be agreeable to the national department of banking.. Before the comptroller of currency will allow an institution of this kind to reopen be must know beyond ail reasonable doubt that it is financially sound enough to operate with absolute safety to all depositors and any notes that the department considers doubtful are removed from the bank's and the loss absorbed by the stockholders through an assess-
19.
February 1, 1930
Herald and Review
Decatur, IL
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Taylorville to Reopen
(Special The Herald) Feb. October 18 in the Christian county bank the Taylorville National panic, bank with officers Monday, Cutler, bank exampresident, will Troy Long, of the bank but holds be Shrout formerly president county will head list of urer, Aull, former the Kincaid Trust and Savings Other company Den. Senator bach, Hay, District Walter Provine. ney announced bank's his from Washingopening on submitted the bank's ton, where he bank officials. books to national of the bank The junior personnel will remain the