5339. Peoples Trust Company (Muncie, IN)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
trust
Start Date
April 17, 1930
Location
Muncie, Indiana (40.193, -85.386)

Metadata

Model
gpt-5-mini
Short Digest
36e6eab06231a9e1

Response Measures

None

Description

Articles report heavy withdrawals/rumors (threatening a run) following renewed rumors after the forced closing of Lincoln Trust & past defalcations; assets and liabilities were taken over and voluntary liquidation commenced (payments guaranteed). Thus a run led to voluntary suspension/liquidation and permanent closure/takeover by other banks.

Events (2)
1. April 17, 1930 Run
Cause
Local Banks
Cause Details
Forced closing of the Lincoln Trust and Savings Company renewed rumors and prompted heavy withdrawals; earlier defalcations of a VP had also fueled rumors.
Measures
Bank remained open for a few days to close up business; no deposits taken.
Newspaper Excerpt
following heavy withdrawals from the Peoples bank... resulting in heavy withdrawals that threatened to become a run on the bank
Source
newspapers
2. April 18, 1930 Suspension
Cause
Voluntary Liquidation
Cause Details
Following heavy withdrawals and renewed rumors the bank entered voluntary liquidation with remaining local banks taking over assets and liabilities; state banking commission approved the plan.
Newspaper Excerpt
Voluntary liquidation of the People's Trust Company, Muncie's fourth largest bank, is under way here today... Assets and liabilities of the bank were taken over Thursday night by the Delaware County National bank, the Merchants National and the Merchants Trust Company
Source
newspapers

Newspaper Articles (3)
1. April 18, 1930 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, April 18, 1930

Click image to open full size in new tab

Article Text

CLOSED MUNCIE BANK PROMISES NO LOSSES Liquidation Being Carried Out With State Department Approval. By Times Special MUNCIE, Ind., April 18.-Voluntary liquidation of the People's Trust Company, Muncie's fourth largest bank, is under way here today, with the city's remaining three banking institutions in charge. Assets and liabilities of the bank were taken over Thursday night by the Delaware County National bank, the Merchants National and the Merchants Trust Company following heavy withdrawals from the Peoples bank. Payment in full to all depositors is guaranteed. Rumors have been freely circulated here concerning the bank's condition since the defalcations of George Haymond, former vice-president, were made known, almost two years ago. The forced closing of the Lincoln Trust and Savings Company caused a renewal of the rumors resulting in heavy withdrawals that threatened to become a run on the bank. The bank will remain open for a few days, to close up its business, but no deposits will be taken. The state banking commission gave full approval to the liquidation plan.

2. April 18, 1930 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, April 18, 1930

Click image to open full size in new tab

Article Text

CLOSED MUNCIE BANK PROMISES NO LOSSES Liquidation Being Carried Out With State Department Approval. By Times Special MUNCIE, Ind., April 18.-Voluntary liquidation of the People's Trust Company, Muncie's fourth largest bank, is under way here today. with the city's remaining three banking institutions in charge Assets and liabilities of the bank were taken over Thursday night by the Delaware County National bank. the Merchants National and the Merchants Trust Company following heavy withdrawals from the Peoples bank. Payment in full to all depositors guaranteed. Rumors have been freely circulated here concerning the bank's condition since the defalcations of George Haymond, former vice-president. were made known. almost two years ago. The forced closing of the Lincoln Trust and Savings Company caused a renewal of the rumors resulting in heavy withdrawals that threatened to become run on the bank The back will remain open for a few days. to close up its business, but no deposits will be taken The state banking commission gave full approval to the liquidation plan.

3. April 21, 1930 The Times-Mail Bedford, IN
Article from The Times-Mail, April 21, 1930

Click image to open full size in new tab

Article Text

THREAT OF FALSE RUMOR CHARGES Brings Reply From Muncie Mayor Who Opposes Action By Prosecutor MUNCIE, Ind., April Prosecutor Davis his intention filing charges against Muncie residents spreading false rumors connection with closing of the People's Trust Company here Saturday, will without the aid Mayor George Dale and the Muncie police Mayor made ment Sunday, stating that he sidered such violation rights free speech free press, and that long Mayor police department will with the the people."