5344. Buseys State Bank (Urbana, IL)

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: state
Start Date: January 18, 1932
Location: Urbana, Illinois (40.111, -88.207)

Metadata

Model: gpt-5-mini
Short Digest: 3829b66b

Response Measures

Partial suspension

Description

Contemporary accounts describe a panic/run on Jan 18, 1932 driven by hysterical rumors after nearby Champaign bank closures. The Busey State Bank withstood withdrawals until about 10:30 a.m. then temporarily closed (state banks permitted to do so). A mayor-declared five-day moratorium, a pledge campaign, and solicitors secured depositor support; the bank reopened a few days later when pledges were obtained. Classified as run → suspension → reopening.

Events (3)

1. January 18, 1932 Run

Cause: Rumor Or Misinformation
Cause Details: Runs were sparked by hysterical rumors and the recent suspension/closing of banks in nearby Champaign, which generated panic and unfounded reports about Urbana banks.
Measures: Directors and civic leaders organized pledge campaign; solicitors canvassed depositors; mayor declared five-day moratorium closing city businesses to halt panic; armored car cash brought to First National.
Newspaper Excerpt: That Monday, Jan. 18-the First National Bank of Urbana and the Busey State Bank were overrun with long lines of depositors, drawing out their money.
Source: newspapers

2. January 18, 1932 Suspension

Cause: Rumor Or Misinformation
Cause Details: Temporary closure triggered by heavy withdrawals caused by the panic and rumors; used state law permitting temporary closing to stem outflows and await restoration of confidence.
Newspaper Excerpt: The Busey State Bank weathered the storm until 10:30 a. m., and then closed temporarily, as state banks are permitted to do.
Source: newspapers

3. January 21, 1932 Reopening

Newspaper Excerpt: Mayor Harmon terminated his five-day closing order immediately and that afternoon the stores reopened...When the banks reopened Thursday morning, depositors began flocking back with their money.
Source: newspapers

Newspaper Articles (18)

1. January 20, 1932 Evening Star Washington, DC

Article from Evening Star, January 20, 1932

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HOLIDAY DECLARED TO AID TOWN BANKS as Checked Withdrawals Mayor of Urbana, III., Hits Upon Unusual Plan. By the Associated Press. URBANA, Ill., January 20.-They're having a holiday in Urbana because it looked like the banks might get into financial trouble. Paradoxical as this may seem, Urbana's 31-year-old mayor, Reginald C. Harmon, just five years ago a graduate of the University of Illinois Law School, today was confident the holiday was a successful means of insuring financial stability to the city's two banks, the First National and the Busey State. He is working on the theory that "when you lose your head, stop and count 10." When hysteria caused heavy withdrawals, following suspension of two banks in the adjacent city of Champaign, he issued a proclamation yesterday closing all business establishments, including banks, but excepting food stores, drug stores, transportation and public utility agencies, and newspapers. Meanwhile, the newspapers printed editorials encouraging confidence in the banks, paving the wav for 100 citizens to make a house-to-house canvass to secure pledges from a majority of depositors in Urbana's two banks that they would not withdraw their money. The holiday will be over Monday, and business men lauded the young mayor's move. Airplanes and armored automobiles brought approximately $1,000,000 to the four banks in Urbana and Champaign Monday. The two banks remaining open in Champaign reported yesterday that the runs had subsided, and that deposits had exceeded withdrawals.

2. January 20, 1932 The Indianapolis Times Indianapolis, IN

Article from The Indianapolis Times, January 20, 1932

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BY REGINALD C. HARMON Mayor of Urbana (Copyright, 1932, by United Press) URBANA, Ill., Jan. 20.-Our community was caught unexpectedly in the worst calamity ever felt here. Sinister influences and malicious rumors had undermined the firm foundations of some Champaign and Urbana banks. When the First National bank, Champaign, and the Commercial State bank, Champaign, failed to open for business, not because of insolvency, but because of lack of cash caused by quiet runs extending over weeks, part of the local citizenry momentarily became alarmed. Runs were started on the remaining twin city banks, which, I believe, if allowed to continue would have brought greater grief and 2 greater catastrophe to our community. Faith in our fellowmen and in the future must not be shaken. Closed Business Although realizing that to close all business firms here would cost the community more than $75,000 daily, I believed that in the final reckoning two banks will continue to serve Urbana, and faith and confidence would be preserved by closing all business houses. Not until after considering the good of all citizens did I decide to invoke the police powers of the mayor to close business firms, including the banks. Only those firms which dispense food supplies, drugs, transportation businesses, public utility agencies and newspapers now are functioning. For the rest of this week business in Urbana will be at a standstill, while our leading citizens are restoring confidence. I have firm belief and faith in Urbana citizens, as they had in me for two terms, and evidences already show that the hysteria which gripped some, has subsided and turned into confidence. People More Confident Already more than 1,500 persons have pledged their entire deposits to the Busey State bank and the First National bank, Urbana, until some later date when normal deposits and normal withdrawals will be resumed. The Association of Commerce, the Rotary Club, the lawyer, the doctor, the merchant, the laborer, have all expressed themselves as confident for the future. While I have the power to use force to close any business as an emergency measure to preserve peace and order, I have not had to do so, nor do I expect such procedure will be necessary as the proclaiming order seems to be sufficient. Merchants and professional men have united to help Urbana through this crisis. I feel they practically have done so, and at such time as I deem necessary the proclamation closing business firms will be revoked.

3. January 20, 1932 Sapulpa Herald Sapulpa, OK

Article from Sapulpa Herald, January 20, 1932

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BANK CLOSINGS THROW ILLINOIS TOWNS IN PANIC BUSINESSES ORDERED CLOSED TEMPORARILY AS REMEDY MEASURES PEND (Copyright, 1932 by United Press) URBANA Ill., Jan 20. (LP)-Our seems to be sufficient Merchants and community was caught unexpectedly in the worst calamity ever felt here Einister influences and malicious rumcrs had undermined the firm foundstions of some Champaign and Urbana banks. be revoked When the First National Bank Champaign and the Commercial State Bank Champaign failed to open for business, not because of in- banks closed there solvency but of lack of cash caused by quiet runs extended over weeks, part of the local citizenty mom- pended. entarily became alarmed. Runs were started on the remaining twin city continue would have brought greater grief and a greater catastrophe to our community Faith in our fellow men and in the future must not be shaken Although realizing that to close all business firms here would cost the 10,000 resident students community more than $75,000 daily believed that in the final reckoning two banks would continue to serve Urbana, and faith and confidence would be preserved by closing all business houses Not until after considering the good of all citizens did I decide to invoke WALL PAPER the police powers of the mayor to close business firms including the SPECIAL banks Only these firms which disMany beautiful patterns to pense food supplies, drugs, transportaselect from tion buinesses, public utility agencies Some as low as and newspapers are now functioning per For the rest of this week business in 5c roll Urbana will be at a standstill while our leading citizens are restoring confidence Cowman's I have firm belief and faith in Urbana citizens. 25 they had in me Phone for two terms. and evidences already Across from Court House show that the hysteria which gripped some has subsided and turned into confidence Already more than 1,500 persons have pledged their entire deposits to the Busey State Bank and the First National Bank Urbana, until some later date when normal deposits and normal withdrawals will be resumed The Association of Commerce, the Rotary club, the lawyer. the doctor the merchant the laborer have all expressed themselves as confident for the future While have the power to use force to close any business as an emergency mea are to preserve peace and order, I have not had to do so nor do expect such procedure will be necessary as the proclaiming order professional men have united to help Urbana through this crisis. I feel they have practically done SO, and at such time as I deem necessary the proclamation closing business firms will Iowa City joined the growing list of bankless midwest cities today as two three banks in the Chicago area and one in Decatur county, Indiana, susBusiness was virtually at a standstill at Urbana where a five-day "emergency holiday" was ordered by the mayor to halt public hysteria brought on by bank suspensions in Champaign- Urbana, mid-state educational center of 30,000 population and site of the University of Illinois, with Hammond, Ind., where there had been seven banks, was without a depository. Only one bank did business

4. January 23, 1932 JG-TC: Journal Gazette and Times-Courier Mattoon, IL

Article from JG-TC: Journal Gazette and Times-Courier, January 23, 1932

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members the Association of Commerce cial today noon the Hotel Grant made definite plans promote feeling of confidence throughout community. mittee seven was appointed call the Central Illinois Trust and Savings Bank and express fidence its solvency and to visit the National Bank Mattoon and any way The committee appointed composed of Mayor Bills, Frank Milligan, Anthony Gorman, Sam Miller. Ben man and Louis Meyer. Preceding the appointing of the committee the tened made by Webber, president of the Urbana Commerce, and Gus Radebaugh, one of the Urbana association committee heads, explaining procedure of Urbana this week the Busey State Bank and preventing the closing the First National of Urbana. Ben Overman, in the absence of Fred president of the local AsGrant, sociation of Commerce, presided the meeting.

5. March 10, 1932 The Cleveland Press Cleveland, OH

Article from The Cleveland Press, March 10, 1932

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WHERE'S THE FIRE, CHIEF? Ever get a ticket for parking six inches too close to fire-, plug? Or have trouble finding a place to park? The photographer didn't have to measure the distance from the car in this picture to the fireplug. It's Fire Chief James E. Granger's car as it was photographed yesterday near City Hall. The chief was upstairs conferring with Safety Director Frank Merrick. And he didn't have to hunt space for his red auto. That's where the chief frequently parks when he calls at the Hall for a departmental conference. a population of 13,500. is the home of the University of Illinois realized, says Mayor Harmon, Urbana's 32 -year-old chief executive, "the risk was undertaking when issued the order that closed up the city, It was move unprecedented in the history of the country If it succeeded, might save the town's banks and save lot of our merchants from being dragged down ruin with them: if failed. would be the goat and it would mean the end of my political career. Banks Were Sound "But it worked. It has also worked in a dozen other cities that have since tried 'Urbana' banks," Mayor Harmon continued, "were as sound as dollar. There was nothing wrong except lot of hysterical rumors. A big bank in the neighboring town of Champaign had just closed. dragging smaller bank down with it. That started lot of wild "rumors about Urbana banks. People believed these hysterical stories, without pausing to investi- gate their truthfulness And the runs' followed. And no bank, no matter how sound, can withstand a major 'run' if it has been doing its duty by making loans to the business houses of the town." That Monday, Jan. 18-the First National Bank of Urbana and the Busey State Bank were overrun with long lines of depositors, drawing out their money The Busey State Bank weathered the storm until 10:30 a. m., and then closed temporarily, as state banks are permitted to do. The First National, however, could not close for moment without losing its federal charter, so it had $400,000 cash rushed from Chicago in an armored car. This money arrived about 3 p. m., the bank's closing hour." Pledge Depositors At 1:30 p. m. that day, the directors of the Urbana Association of Commerce and the merchants of the town, held hurried meeting. A special committee was appointed to take charge of the emergency and it drew up pledge to be circulated among the 6000 depositors who had total of $2,000,000 in the two banks. By 5 p. m., the pledges had been printed and solicitors were leaving to get the signatures of depositors Meanwhile the banks had supplied the Association of Commerce with list of their depositors having balances of $500 or more. At midnight, the solicitors and officials of the Association of Commerce held a meeting at a downAt m., Mayor Harmon was called into conference of bankers and their legal advisors. He signed the 'martial law" proclamation closing Urbana for five days, effective At m., President T. B. Webber of the Association of Commerce called Urbana's merchants together After the situation had been explained by Mayor Harmon they voted unanimously to back his 'martial law proclamation to the limit Reopen in Two Days And so, Tuesday morning Urbana closed up tight. The mayor's proclamation for five-day "holiday gave both banks legal reason for remaining closed Thus, the Tun was By m Wednesday the tireless solicitors had-obtained the signatures of practically every depositor This accomplished, Mayor Harmon terminated his five-day closing order immediately and that afternoon the stores reopened An amount of trade estimated at $75,000 had been lost In the 36 hours. but the merchants were happy. The banks whose failure would have dragged many of them down. had been saved When the banks reopened Thursday morning depositors began flocking back with their money That day. deposits received at the First National Bank amounted to 31 times the amount of withdrawais. and in the Busey Bank the deposits were 25 times greater than withdrawals But the plan had worked too well: people were putting all their money in the banks, instead of spending it at the stores. Business dropped So the Association of Commerce put out more placards and newspaper advertisement. urging the public to Get Back to Normal- Business as This movement was successful President Webber of the Association of Commerce looks back over the battle and says The newspapers saved our city They were with us thruout Their support was wonderful.

6. March 11, 1932 Marshfield News-Herald Marshfield, WI

Article from Marshfield News-Herald, March 11, 1932

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Banks, Business Confidence Restored by Complete Closing of Town During Hysteria ROBERT TALLEY Service Writer Urbana, March the story town that has whipped the depression, brought about business improvement, restored economic stability communand now the midst of $100,000 home improvement camresult of an hysterical "run" the town's two banks, which threatened to break both of them. Mayor Reginald Harmon's drastic five-day closing all business houses in the except drug stores and grotown enforced period which and started the chain of events toward improvement. Public confidence, which the Urbana Association of Commerce worked feverishly to restore midnight during this hectic period, did the rest. Today, 60 days after that fateful Jan. 18 which long lines frantic frightened depositors withdrawing their money Urbana's two banks, visitor finds Urbana confident, busy and headed for bigger things. Took Risk The same committees that stopped bank "run" are now canvass the city effort bring about $100,000 home improvements remodeland this campaign meeting with success. The with population of the home of the University of Mayor HarUrbana's chief mon, executive, risk was undertaking when issued order that closed city. was move the history country. ceeded, might save the town's banks and save lot of merchants being down ruin with them; failed. would goat would mean the end my political worked. It has also worked dozen other cities that have since tried Banks Sound "Urbana's Mayor Harmon continued, sound dollar. There wrong except of rumors. bank in neighboring town Champaign had just closed dragging smaller bank down lot of ruabout Urbana's "People believed these stories, pausing to vestigate their the And no bank, matter how withstand has doing duty by the of the Bank and the Busey Bank with long of depositors, Busey State Bank weathered the until and then closed banks are permitted to The First however, could not close for losing its federal charter, had $400,000 cash Chicago an This money about the bank's closing Pledged At that day, the the the merchants the town, held meeting. take charge the pointed drew up pledge the who total of 000,000 banks. This read: in the soundness of Urbana and its banks, we the people Urbana will not from State Bank the First National Bank any part of account period has fully and the the likewise the and property values will By the pledges had been get the the banks supplied the Urbana Commerce with list of their of $500 the business By m., John Wilcox turned about 150 signed the district single turn had been During night, worked

7. March 11, 1932 The Central New Jersey Home News New Brunswick, NJ

Article from The Central New Jersey Home News, March 11, 1932

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URBANA, CLOSED UP BY MAYOR TO FIGHT OFF PANIC, NOW BOOMING AGAIN AFTER LEARNING ITS LESSON (Continued From Page One) executive, "that risk was underwhen issued the order taking that closed up the city. It was move unprecedented in the history of the country. If I might save the town's two banks and save lot of our merchants from being dragged down to ruin if would with and it would mean be the goat the end of my political career. it worked It has also worked in dozen other cities that have since tried Banks Sound "Urbana's banks,' Mayor Harmon continued, "were as sound as n. dollar. There was nothing wrong except a lot of hysterical rumors. A big bank in the neighboring town of Champaign had just closed, dragging smaller bank down with That started a lot of wild rumors about Urbana's banks. People believed these hysterical without pausing to instories, vestigate their truthfulness. And the "runs" followed. And no bank, no matter how sound, can withstand major has been doing its duty by making loans to the business houses of the That -Monday, January 18 the First National Bank of Urbana and the Busey State Bank were overrun with long lines of depositors, drawing out their money. The Busey State Bank weathered the storm until 10:30 A. M., and then closed temporarily, state banks are permitted to do The First National, however could not close for moment without losing its federal charter, 80 it had $400,000 cash rushed from Chicago in an armored car. This money arrived about P. M., the bank's closing Depositors Pledged At 1:30 P. M. that day the directors of the Urbana Association Commerce and the merchants of the town, held hurried meeting. special committee was pointed to take charge of the emergency and drew up pledge to be circulated among the 6000 depositors who had total of $2,000,000 in the two banks. This pledge read: Having confidence in the soundness Urbana and its banks, we pledge to the people of Urbana that will not withdraw from either Busey's State Bank or the First National Bank any part of our account therein until this present period of hysteria has fulsubsided, and if all the depositors of the community will do likewise the banks will be saved and property values will be By M. the pledges had been printed and solicitors were leaving to get the signatures of depositors. the banks had supplied the Urbana Assoclation of Commerce with list of their depositors having balances of $500 or more. The testout campaign was in the business section. By M. Postmaster John Wilcox had turned in about 150 signed pledges from the business district and reported that not single turndown had been received. During the night, stenographers worked feverishly, listing the rest of the depositors Mayor Gets Busy At midnight, the solicitors and officials of the Association Commerce held a meeting at downtown where dutch luncheon was served. dramatic incident of this midnight meeting was the introduction of M. Busey, the 75-year-old president of the Busey State Bank. "The Busey State Bank is solvent, the veteran banker assured the solicitors. His voice choked as he described the institution which he had spent lifetime in building. now threatened with ruin by the The veteran banker was followby Douglas R. Fay. 32. president of the First National Bank of Urbana, said to be the youngest national bank president in the country. Fay declared that there was also no question about the solvency of the First National Bank. A. M., Mayor Harmon was called into conference of bankers and their legal advisors. He signed the "martial law" proclaclosing Urbana for five days, effective immediately. At M., President B. Webber of the Association of Commerce called Urbana's merchants together After the situation had been explained by Mayor Harmon they voted unanimously to back his "martial proclamation to the limit. And so, Tuesday morning, Urbana closed up tight. The mayor's proclamation for five-day "holi- day" gave both banks legal for remaining closed. Thus, the "run" was halted. By M., Wednesday, the tireless solicitors had obtained the signatures of practically every depositor. This Mayor Harmon terminated his fiveday closing order immediately and that afternoon the stores reopened. An amount of trade estimated at $75,000 had been lost in the thirty-six but the merchants were happy. The banks, whose failure would have dragged of them down, had been many saved. When the banks reopened Thursday depositors began flocking back with their money. That day, deposits received at the First National Bank amounted to thirty-one times the amount of and in the Busey Bank the were twenty times greater than withdrawals. Placards advertising the conappeared in store over town. These were followed by somewhat similar placards declaring "The Gossip Mongers Must Go!" and calling upon good citizens to report destructive and doubtful gossip the Association of Commerce. Both also appeared newspaper while local newspaper editorial support and complete. of the move was hearty Money in Banks But the plan had worked too well: people were putting all their money in the banks, instead of spending it at the stores. Business dropped. So the Association of Commerce put out more placards and newspaper urging the public to "Get Back to Normal Business as Usual! This movement was successful. too, city-wide as evidenced by the fact that Dollar sale few days later brought one of the best business days in Urbana's history Ever since business has progressed nicely. then, Following up the work, the Association of Commerce converted its committees of solicitors and ran committees of solicitors and the city's banks, to prevent any repetition of hysteria. Gossiping Ended Gossips so reported were visitby committee, which usually included lawyer. and warned about the criminality of circuiting false rumors regarding banks. The gossiping ended very quickly. This machinery having been beneficial in two the Association of Commerce then turned it into an agency for promoting a $100,000 home improve-

8. March 12, 1932 Belleville Daily Advocate Belleville, IL

Article from Belleville Daily Advocate, March 12, 1932

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Mayor Raps Mob Hysteria R. HARMON Mayor Urbana, Ill. venture the that fully half bank "runs" this today are due hysteria on the part people who heard lot of false and baseless That was certainly the case in Urbana. Few banks close as the dishonesty behind the counter. Sometimes, unwise vestments cause fail. But in most cases "run' caused by sheer hysteria. do UrAny city bana done, the loyal and community spirited. citizens are not loyal and willing operate, there much mayor can do. mayor can't enforce "martial he tried to he might have to put hundreds of persons into and would cause riot. That's where loyalty and public spirit comes in. Urbana had the loyalty and co-operation of its citizens in this crisis. the 6000 depositors banks, those refused join could be counted on the fingers of one hand. duty by making loans to the busithe National Bank of Urbana and the Busey Bank with long lines of depositors drawtheir money Busey State the until then banks to do. The First National, close for without losing its federal (Continued to Page Two)

9. March 13, 1932 Messenger-Inquirer Owensboro, KY

Article from Messenger-Inquirer, March 13, 1932

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URBANA, WAS CLOSED UP BY MAYOR TO FIGHT OFF PANIC CITY IS AFTER LEARNING Gossips Gagged As Town Gets Banks Saved And Shops Are Now Busy. BY ROBERT TALLEY (NEA Service Writer) Urbana, the that has the depression, brought about restored onomic community the midst of of hysterical town's banks, threatened to break both of C. Harmon's the and enforced and started the chain of events toward this confidence, which the Urbana of Commerce worked feverishly during this hecthe Today, approximately sixty days after that fateful January long Lines of frant.e and drightened depositors withdrawing their money from Urbana's two banks visitor finds Urbana norconfident, busy and headed for bigger things. The same committees that stopped the bank are now being the city about $100,000 of home ing and this campaign meeting with The the home of the of says Mayor Harmon, Urbana's chief executive, risk undertaking when issued the order that closed up the city, It move in the history country. If succeeded, might save the town's banks and our merchants from being dragged to ruin with them: if failed, would be the goat and would mean the end of political career. "But it worked has worked dozen other cities that have since tried Banks Sound "Urbana's Mayor Harmon cont "were as sound as There was nothing wrong except hysterical rumors A bank in the neighboring town of Champaign had just closed, dragging bank down with it. That started of wild rumors about Urbana's People believed these hysterical stories, pausing to investigate their And the followed And no bank. no matter sound, can withstand major has been doing duty by making loans to the houses of the town. January 18 First National bank of Urbana and the Busey State bank with long lines of deout their money The Busey bank weathered the storm until and a.m., they closed temporarily as state banks are permitted The to do. First however, could not close for moment without losing its federal charter, had 000 cash rushed from Chicago in an car. This money arrived the closing hour. Depositors Pledged At that the tors of the Urbana Association of Commerce and the merchants of the town, hurried meeting A committee was appointed to of the emergency and it drew pledge to be

10. March 13, 1932 Messenger-Inquirer Owensboro, KY

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ulated among the 6000 depositors who had total of $2,000,000 in the two banks. This pledge read: "Having confidence in the Urbana and its banks, we pledge to the people of Urbana that will not withdraw from either Busey's State bank the First National bank any part of our account therein until this present period of hysteria has fully subsided. and if all depositors of the community will do likewise the banks will be saved and property values will be preserved." By p.m., the pleages had been printed and sollcitors leaving to the signatures of depositors Meanwhile, the banks had supplied the Urbana Associaton of Commerce with list their depositors having balances $500 or more. The test-out campaign was in the business section By p.m., Postmaster Gray and Undertaker John T. Wilcox had turned in about 150 signed pledges from the business district and reported that not single turn down had been received. During the night, stenographers worked feverishly, listing the rest of the depos- Mayor Gets Busy At midnight, the solicitors and officials of the Association Commerce held meeting downtown hotel where dutch lun- cheon served. A dramatic cident of this midnight meeting the introduction of M. W Busey, the 75-year-old president of the Busey State bank. "The Busey State bank is the veteran banker assured the solicitors. His voice choked described the institution which he had spent lifetime in now threatened with ruin by the BY R. C. HARMON Mayor of Urbana, III. venture the assertion that fully half of bank "runs" in this country today are due hysteria on the part of people who heard lot of wild false and baseless rumors. That was certainly the case in Urbana. Few banks close as the result of dishonesty behind the countSometimes, investments cause them to fail. But in most cases "run" is caused by sheer hysteria. Any city can what Urbana has done, if the said city loyal and community spirited. But if the citizens are not loyal and willing to co-operate there is not much mavor can do. mayor can enforce martial tial If he tried to do might have put hundreds persons into jail and that would cause riot. That's where lovalty and public spirlt comes in Urbana had the loyalty and co-operation of citizens in this Of the 6,000 depositors our two banks those who refused to join us could be counted on the fingers of one hand. The veteran banker was followed by Douglas Fay, 32. president of the First National Bank of Urbana, said to be the youngest national bank president in the country. Fay declared that there was also question about the vency of the First National bank. At a.m., Mayor Harmon was called into conference of hankera and their legal advisors. He signed the "martial law" proclamation, Urbana for five closing days, effective immediately. At President Webber of the Association of Commerce, called Urbana's merchants together. After the situation had been explained by Mayor Harmon they voted unanimously to back his "martial law" proclamation to the limit. And 80, Tuesday morning. Urbana closed up tight. The mayor's proclamation for "hollday' gave both banks legal reafor remaining closed. Thus the "run" was halted. By p.m. Wednesday, the tireless solicitors had obtained the signatures of practically every depositor. This Mayor Harmon terminated his five-day closing order and that afternoon the stores reopened. An amount of trade estimated at $75,000 had been lost in the 36 hours, but the merchants were happy. The banks, whose failure would have dragged many of them down, had been saved. When the banks reopened Thursday morning, depositors began flocking back with their money. That received the First National bank amounted to times the amount withdrawals and the Busey bank the deposits twenty-five times greater than withdrawals. Placards advertising the confidence Urbana had in these banks appeared in store windows all over town. These were followed by somewhat similar placards declaring "The Gossip Mongers Must Go!" and calling upon good citizens to report destructive and doubtful gossip to the Association of Commerce. Both also appeared newspaper while local newspaper editorial support of the move was hearty and complete. "THE Money in Banks But the plan worked too well; people putting all their money in the banks, of spending the stores. Business dropped. So the of put out more placards man's and newspaper of urging the public to "Get Back to instrument as Usual!' millions This movement was successful, makes too, evidenced by the fact that city-w "Dollar Day" sale days later brought one of the best business days in Urbana's history. Ever since then, business has progressed nicely Following up the work, the As- LORETTA sociation of Commerce converted its committees of solicitors into committees to investigate and run down destructive gossip about the city's banks, to prevent any repeti tion of hysteria. Gossips reported were visited committee, which usually included lawyer, and warned about the criminality of circulating false rumors regarding banks. The gossiping ended quickly This machinery having been 80 beneficial in two instances, the Association of Commerce then turned into an agency for promoting home campaign in Urbana. Home owners "WHO'S WHO were listed and prom- IN THE ises of remodeling and repair Mack Sennett work obtained. Brevity "Now," says George Chapin, managing secretary of the Assoclation Commerce, "we have as much work pledged we can finance. We are working now to finance this by promoting investments in our three building and loan associations which have never lost cent of investors' money their years of existence. "They offer certificates of $100 denomination, paying per cent interest coming in nicely." President Webber, of the Assoclation of Commerce, looks back over the battle and says: "The newspapers saved our city. They were with us throughout. Their support wonderful."

11. March 14, 1932 The Capital Times Madison, WI

Article from The Capital Times, March 14, 1932

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Shut Up Town to Quiet Bank Panic goat and it would mean the end of my political career "But it worked. It has also worked in dozen other cities that have since tried "Urbana's banks." Mayor Harmon continued, "were as sound as a dollar. There was nothing wrong except lot of hysterical rumors. big bank in the neighboring town of Champaign had just closed, dragging a smaller bank down with it. That started a lot of wild rumors about Urbana's banks. "People believed these hysterical stories, without to investigate their truthfulness. And the runs followed And no bank no matter how sound, withstand major 'run' if it has been doing its duty by making loans to the business houses of the town. That day-Monday, Jan. 18-the First National bank of Urbana and the Busey State bank were overrun with long lines of depositors. draw- ing out their money. The Busey State bank weathered the storm until m., and then closed temporarily, state banks are permitted to do. The First National. however. could not close for moment without losing its federal charter, so had $400,000 cash rushed from Chicago in an armored car. This money arrived about 3 p. m., the bank's closing hour. At 1:30 p. m that day, the direc(Continued on page 13)

12. March 17, 1932 The Huntsville Times Huntsville, AL

Article from The Huntsville Times, March 17, 1932

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Illinois Town Whips Panic Routs Threat Of Depression Banks Saved, Shops Now Busy After 5-Day Moratorium By ROBERT TALLEY NEA Service Writer URBANA, Ill., March 17-This is the story of a town that has whipped the depression, brought about business improvement, restored economic stability to the community and is now in the midst of $100,000 home improvement campaignall as the result of an hysterical "run" on the town's two banks, which threatened to break both of them. Mayor Reginald C. Harmon's drastic five-day "moratorium," closing all business houses in the city except drug stores and groceries, gave the town an enforced period in which to "cool off" and started the chain of events toward this improvement. Public confidence, which the Urbana Association of Commerce worked feverishly to restore at midnight meetings during his hestic period, did the rest. Today, approximately 60 days after that fateful Jan. 18 which saw long lines of frantic and frightened depositors withdrawing their money from Urbana's two banks, visitor finds Urbana normal, confident, busy and headed for bigger things. Home Campaign Succeeds The same committees that stopped the bank "run" are now being used to canvass the city in an effort to bring about $100,000 of home improvements-remodeling and repairs -and this campaign is meeting with remarkable success. The city, with population of 13,500. is the home of the University of Illinois. "I realized," says Mayor Harmon, Urbana's 32-year-old chief executive, "the risk was undertaking when issued the order that closed up the city. It was a move unprecedented in the history of the country. If succeeded, might save the town's banks and save lot of our merchants from being dragged down to ruin with them; if it failed. I would be the goat and it would mean the end of my political career "But it worked. It has also worked in dozen other cities that have since tried it. Banks Were Sound. "Urbana's banks", Mayor Harmon continued, "were as sound as dollar. There was nothing wrong except lot of hysterical rumors. A big bank in the neighboring town of Champaign had just closed, dragging smaller bank down with it. That started lot of wild rumors about Urbana's banks. "People believed these hysterical stories, without pausing investigate their truthfulness. And the 'runs' followed. And no bank, no matter how sound, can withstand a major 'run' if it has been doing its duty by making loans to the business houses of the town. That day-Monday, Jan. 18-the First National Bank of Urbana and the Busey States Bank were overrun with long lines of depositors, drawing out their money The Busey State Bank weathered the storm until 10:30 m. and then closed temporarily, as state banks are permitted to do The First National, however, could not close for moment without losing its federal charter, so it had $400,000 cash rushed from Chicago in an armored car. This money arrived about 3 p. m. the bank's closing hour Depositors Pledged At 1:30 m. that day, the directors of the Urbana Association of Commerce an the merchants of the town, held a hurried meeting. A special committee was appointed to take charge of the emergency and it drew up pledge to be circulated among the 6000 depositors who had a total of $2,000,000 in the two banks. This pledge read: "Having confidence in the soundness of Urbana and its banks, we pledge to the people of Urbana that we will not withdraw from either Busey's State Bank or the First Na. tional Bank any part of our account therein until this present period of hysteria has fully subsided, and if all the depositors of the community will do likewise the banks will be saved and property values will be preBy 5 m. the pledges had been printed and solicitors were leaving to get the signatures of depositors. Meanwhile, the banks had supplied the Urbana Association of Commerce with list of their depositors having balances of $500 or more. The testout campaign was in the business section. By 7 p. m. Postmaster Gray and Undertaker John T. Wilcox had turned in about 150 signed pledges from the business district and reported that not a single turn down had been received. During the night, stenographers worked feverishly, listing the rest of the depositors. Mayor Gets Busy At midnight, the solicitors and of ficials of the Association of Commerce held meeting at a downtown hotel, where dutch luncheon was served A dramatic incident of this midnight meeting was the introduction of M. W. Busey, the 75-year-old president of the Busey State Bank. "The Busey State Bank is solvent,' the veteran banker assured the solicitors. His voice choked as he described the institution which he had spent a lifetime in building. now threatened with ruin by the "run." The veteran banker was followed by Douglas R. Fay, 32, president of the First National Bank of Urbana, said to be the youngest national bank president in the country. Fay declared that there also no question about the solvency of the First National Bank.. At m., Mayor Harmon was called into conference of bankers and their legal advisors He signed the "martial law" proclamation, closing Urbana for five days, effective immediately. At 7 m., President T. B. Webber of the Association of Commerce, called Urbana's merchants together. After the situation had been explained by Mayor Harmon they voted unanimously to back his "martial law" proclamation to the limit And so, Tuesday morning, Urbana closed up tight The mayor's proclamation for five-day "holiday" gave both banks a legal reason for 3-17-24-31 remaining closed. Thus, the "run" was halted. Stores Again Open By p. m. Wednesday, the tireless solicitors had obtained the signatures of practically every depositor. This accomplished, Mayor Harmon terminated his five-day closing order immediately and that afternoon the stores reopened. An amount of trade estimated at $75,000 had been lost in the 36 hours, but the merchants were happy. The banks, whose failure would have dragged many of them down, had been saved. When the banks reoponed Thursday morning, depositors began flocking back with their money. That day, deposits received at the First National Bank amounted to 31 times the amount of withdrawals, and in the Busey Bank the deposits were 25 times greater than withdrawals. Placards advertising the confidence Urbana had in these banks appeared in store windows all over town. These were followed by somewhat similar placards declaring "The Gossip Mongers Must Go!" and calling upon good citizens to report destructive and doubtful gossip to the Association of Commerce. Both also appeared in newspaper advertisements, while local newspaper editorial support of the move was hearty and complete. Money Put In Banks But the plan had worked too well; people were putting all their money in the banks, instead of spending it at the stores. Business dropped. So the Association of Commerce put out more placards and newspaper advertisements, urging the public to "Get Back to Normal- Business as Usual!" This was too, as evidenced by the fact that a citywide "Dollar Day" sale few days later brought one of the best business days in Urbana's history. Ever since then, business has progressed nicely. Following up the work, the Association Commerce converted its committees of solicitors into committees to investigate and run down destructive gossip about the city's banks, to prevent any repetition of hysteria. Gossips so reported were visited by committee, which usually included lawyer, and warned about the criminality of circulating false rumors regarding banks. The gossiping ended very quickly. This machinery having been so so beneficial in two instances, the of then turned it into an agency for promoting $100,000 home improvement campaign in Urbana Home owners were canvassed, listed and promises of remodeling and repair work obtained. "Now," says George Chapin, managing secretary of the Association of Commerce, "we have as much work pledged as we can finance. We are working now to finance this by promoting investments in our three building and loan associations which have never lost cent of investors' money in their 45 years of existence "They offer certificates of $100 denomination. paying 6 per cent interest annually. Subscriptions are coming in nicely President Webber, of the Association of Commerce. looks back over the battle and says: "The newspapers saved our city They were with us throughout Their support was wonderful."

13. March 17, 1932 Okmulgee Daily Times Okmulgee, OK

Article from Okmulgee Daily Times, March 17, 1932

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HOW URBANA BROUGHT BACK GOOD TIMES MAYOR CLOSED UP TOWN TO FIGHT PANIC By TALLEY URBANA, March is the story of a town that has whipped the depression, brought about business improvement, restored economic stability to the community and is now in the midst of a $100,000 home improvement campaign-all as the result of an hysterical "run" on the town's two banks, which threatened to break both of them. Mayor Reginald C. Harmon's drastic 5-day "moratorium," closing all business houses in the city except drug stores and groceries, gave the town an enforced period in which to "cool off" and started the chain of events toward this improvement. Public confidence, which the Urbana Association of Commerce worked feverishly to restore midnight meetings during this hectic period, did the Today, 60 days after that fateful Jan. 18 which saw long lines of frantic and frightened depositors withdrawing their money from Urbana's two banks, visitor finds Urbana normal, confident, busy and headed for bigger things. The same committees that stopped the bank "run" now being used bring about home and repairs-and this campaign is meeting with remarkable success. The city, with population of 13,500. the home of the University of realized." says Mayor Harmon, Urbana's 32-year-old chief executive, "the risk was undertaking when issued the order that closed up the city. It was in the history of the country. If succeeded, might save town's banks and save lot of our merchants from being dragged down to ruin with them; failed, would be the goat and would mean the end of my political career. Banks Sound "Urbana's banks," Mayor Harmon continued, "were as sound dollar. There was nothing wrong except lot of hysterical rumors. big bank in the neighboring town of Champaign had just closed. dragging smaller bank down with it. That started lot wild rumors about Urbana's banks. "People believed these hysterical stories, without pausing to investigate their truthfulness. And the "runs' followed. And no bank, no how sound, can withstand major 'run' if has been doing its duty by making loans to the business houses of the town." That Jan. First National bank of Urbana and the Busey State were overrun with long lines of depositors, drawing out their money The Busey State bank weathered the storm until 10:30 m., and then closed temporarily, as state banks are permitted to do. The First National, however, could not close for moment without losing its federal charter, had $400.000 cash rushed from Chicago in an armored car. This money arrived about p. m., the bank's ing hour. Depositors Pledged At 1:30 that day. the directors of the Urbana Association of Commerce and the merchants the town, held hurried meeting. special committee was appointed By R. HARMON Mayor of Urbana, III. venture the assertion that fully half our bank "runs" this country today are due to hysteria on the part of people who have heard lot of wild, false and baseless rumors. That was certainly the case in Urbana. Few banks close as the result of dishonesty behind the counter. Sometimes, unwise investments cause them to fail. But in most is caused by sheer Any city can do what Urbana has done, the said city is loyal and community spirited. But the citizens not loyal and willing to cooperate, there not much mayor can do. mayor can't enforce "martial law." If he tried to do so, be might have to put hundreds of persons into jail and that would cause riot. That's where loyalty and public spirit comes Urbana had the loyalty and of citizens in this crisis. of the 6,000 depositors of our two banks, those who fused join counted on the fingers of one hand. to take charge of the emergency and it drew up pledge to be circulated among the 6,000 depositors who had total of in the two banks. This pledge read: "Having confidence in the sound- ness of Urbana and its banks, we pledge to the people of Urbana that will not withdraw from either Busey's State bank or the First National bank any part of our account therein until this presperiod of hysteria has fully subsided. and all the depositors of the community will do likewise the banks will saved and propvalues will be preserved. By the pledges had been printed and solicitors were leaving to get the signatures of depositors. the banks had supplied the Urbana Association of Commerce with list of their depositors having balances of $500 or more. The test-out campaign was in the business section. By m., Postmaster Gray and Undertaker John T. Wilcox had turned in about 150 signed pledges from the business district and reported that not single turn down had been received. During the night, stenographers worked fever- ishly, listing the rest of the depositors. Mayor Gets Busy At midnight, the solicitors and officials of the Association of Commerce held meeting at downtown hotel, dutch luncheon was served. dramatic incident of this midnight meeting was the introduction of W. Busey, the 75-year-old president of the Busey State bank. "The Busey State bank is solvent,' the banker assured the solicitors. His voice choked he described the institution which he had spent lifetime in building, now threatened with ruin by the "run." The veteran banker was followed by Douglas R. Fay. 32, president of the First National bank of Urbana, said to be the youngest national bank president in the country. Fay declared that there was also no question about the solvency of the First National bank. At m., Mayor Harmon was called into conference of bankers and their legal advisor. He signed the "martial law" proclamation. closing Urbana for five days, effective immediately. At President B. Webber of the Association of Commerce, called Urbana's merchants together. After the situation had been explained by Mayor Harmon they voted unanimously to back his "martial law" proclamation the limit. And 80, Tuesday morning, Ur. bana closed up tight. The mayor's proclamation for five-day "holiday" gave both banks legal reason for remaining closed. Thus, the "run" was halted. By Wednesday, the tiresolicitors had obtained the signatures practically every depositor. accomplished, Mayor Harmon terminated his five-day closing order immediately and that afternoon the stores An of trade estimated at $75,000 had been lost in the 36 hours, but the merchants were happy. The banks, whose failure would have dragged many of them down, had been saved. When the banks reopened Thursday morning, depositors began flocking with their money. That deposits received the First National bank amounted 31 times the amount of withdrawals, and in the Busey bank the deposits 25 times greater than withdrawals. Placards advertising the confi-

14. March 18, 1932 The Piqua Daily Call Piqua, OH

Article from The Piqua Daily Call, March 18, 1932

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the story of a town that has whipped the depression, brought about business improvement, restored economic stability to the community and is now in the midst of a $100,000 home improvement campaign-all as the result of an hysterical "run" on the town's two banks, which threatened to break both of them. Mayor Reginald C. Harmon's drastic five-day 'moratorium,' closing all business houses in the city except drug stores and groceries, gave the town an enforced period in which to "cool off" and started the chain of events toward this improvement. Public confidence, which the Urbana Association of Commerce worked fever!shly to restore at midnight meetings during this hectic period. did the rest. Today, approximately 60 days after that fateful Jan. 18 which saw long lines of frantic and frightened depositors withdrawing their money from Urbana's two banks, a visitor finds Urbana normal, confident, busy and headed for bigger things. The same committee that stopped the bank "run" are now being used to canvass the city in an effort to provements, remodeling and repairs -andthis campaign is meeting with success., The city, with a popuIntion of 13,500, is the home of the University of Illinois. "I realized," says Mayor Harmon, Urbana's 32-year-old chief execu*ive, "the risk I was undertaking when issued the order that closed up the city. It was a move unprecedented in the history of the country. If it succeeded, might save the town's banks and save a lot of our merchants from being dragged down to ruin with them: if it failed, would be the goat and it would mean the end of my political career. "But It worked. It has also worked in dozen other cities that have since tried it. Banks Sound "Urbana's banks," Mayor Harmon continued. "were as sound as a dollar. There was nothing wrong except a lot of hysterial rumors. A big bank in the neighboring town of Champaign had just closed, dragging a smaller bank down with It. That started a lot of wild rumors about Urbana's banks. "People believe these hysterical stories, without pausing to investigate their truthfulness. And the 'runs' followed. And no bank, no matter how sound, can withstand a major run if it has been doing its duty by making loans to the business houses of the town." That day-Monday, Jan. 18-the First National Bank of Urbana and the Busey State Bank were overrun with long lines of depositors, drawing out their money. The Busey State Bank weathered the storm until 10:30 a. m., and then closed temporarily, as state banks MAYOR RAPS MOB HYSTERIA By R. C. Harmon Mayor of Urbana, III. I venture the assertion that fully half of our bank "runs" in this country today are due to hysteria on the part of people who have heard a lot of wild, false and baseless rumors. That was certainly the case in Urbana. Few banks close at, the result of dishonesty behind the counter. Sometimes, unwise investments cause them to fail. But in most cases a "run" is caused by sheer hysteria. Any city can do what Urbana hos done, if the said city is loyal and community spirited. But if the citizens are not loyal and willing to co-operate, there is not much mayor can do. A mayor can't enforce "martial law." If he tried to do so, he might have to put hundreds of persons into jall and that would cause a riot. That's where loyalty and public spirit comes in. Urbana had the loyalty and co-operation of its citizens in this crisis. Of the 6000 depositors of our two banks, those who refused to join us could be counted on the fingers of one hand. are permitted to do The First National. however. could not close for moment without losing its federal charter. SO it had $400,000 cash rushed from Chicago in an armored car. This money arrived about 3 p. m., the bank's closing hour. Depositors Pledged At 1:30 p. m., that day, the directors of the Urbana Association of Commerce and the merchants of the town, held a hurried meeting. A special committee was appointed to take charge of the emergency and It drew up pledge to be circulated among the 6000 depositors who had R total of $2,000,000 in the two banks. This pledge read: "Having confidence in the soundness of Urbana and its banks, we pledge to the people of Urbana that we will not withdraw from either Busey's State Bank or the First National Bank any part of our account therein until this present perlod of hysteria has fully subsided, and if all the depositors of the community will do likewise the banks will be saved and property values will be preserved.' By 5 p. m., the pledges had been printed and solicitors were leaving to get the signatures of depositors. Meanwhile, the banks had supplied the Urbana Association of Commerce with a list of their depositors having balances of $500 or more. The test-out campaign was in the business section. By 7 p. m., Postmaster Gray and Undertaker John T. Wilcox had turned in about 150 signed pledges from the business district and reported that not a single turn down had been received. During the night, stenographers worked feverishly, listing the rest of the depositors. Mayor Gets Busy At midnight, the solicitors and officials of the Association of Commerce held meeting at a downtown hotel, where dutch luncheon was served A dramatic incident of this midnight meeting was the introduction of M: W. Busey, the 75-year-old president of the Busey State Bank. "The Busey State Bank is solvent," the veteran banker assured the solicitors. His voice choked as he described the institution which he had spent a lifetime in building,

15. March 19, 1932 The Times Streator, IL

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Closed Off Mayor to Panic, Urbana, Up by Fight After Lesson Now Booming Learning BANKS SAVED, SHOPS NOW BUSY. GOSSIPS GAGGED AS TOWN GETS BY ROBERT TALLEY. URBANA, Mar. the story of town that has whipthe depression, brought about business improvement, restored economic stability to the and now in the midst of home improvement campaignall the result hysterical two banks, which threatened to break both of them. Mayor Reginald Harmon's drastic five-day closing all business houses the city drug stores and groceries, town enforced period which to "cool and started the chain of events toward this Public confidence, which the bana Association of Commerce feverishly midnight meetings during this hectle period, did not Today, sixty days after fateful January which long lines frantic and frightened depositors withdrawing their money from Urbana's two banks, visitor finds Urbana normal, confident, busy and headed for things. The same committees that stopped the bank "run" now being used canvass the city in an effort to bring about $100,000 of home imand this campaign is meeting remarkable The city, population of the home of the University of mirealized," says Mayor Harmon, Urbana's chief executive, "the risk was undertaking when issued the order that closed the city. was unprecedented in the history of the country. succeeded, might town's banks and lot merchants from being ruin with failed, would be the goat and would mean the end of my political career. worked. has also workin dozen other cities that have since tried Banks Sound. "Urbana's Mayor Harmon continued, sound dollar. There nothing wrong lot of hysterical rumors. big bank in the town had just closed. dragging smaller bank down with it. That started lot of wild rumors about Urbana's banks. "People believed these hysterical stories, without pausing to investitheir truthfulness. And the 'runs' followed. And no bank, no how sound, withstand major 'run' has been doing its duty by making loans to the business houses of the town." That January the First National Bank Urbana and the Busey were overrun with long lines of depositors, out their The Busey State Bank weathered the storm until 10:30 and then closed temporarily, state banks permitted to do. The First National, however, could close for moment without losing its federal charter, had 000 cash rushed from Chicago in armored car. This money arrived about the bank's closing hour. At that day, the directors of the Urbana Association of Commerce and the merchants of the town, held hurried meeting. special committee appointed to take the emergency and drew pledge to be circulated up among the 6,000 who had total of $2,000,000 in the two banks. This pledge read: "Having confidence in the soundness of Urbana and banks, pledge to the people of Urbana that not withdraw from either Busey's State Bank the First National Bank any part of our account therein until this teria has fully subsided, and all the depositors the community will do likewise the banks will be and property values will be By m. the pledges had been printed and were depositors. Meanwhile, banks had supplied the Urbana Association of Comlist of their depositors merce having balances of $500 or more. The campaign was the business section. By Postmaster Gray and Undertaker John Wilcox turned in about 150 signed pledges from the business district and reported that not sinturn-down has been received. During the night, stenographers worked feverishly, listing the rest of the depositors. Mayor Gets Busy. At midnight, the solicitors and officials of the Association of Commerce held meeting at downtown hotel, where a dutch luncheon served. dramatic incident this midnight meeting was the introduction M. W. Busey, tht 75year old president of the Busey State Bank. Busey State Bank is solvent," the veteran banker assured the solicitors. His voice choked he described the institution which he had spent lifetime building now threatened with ruin by the The veteran banker followed by Douglas R. Fay, 32, president of the First National Bank of Urbana, said youngest national bank president the country. Fay declared that there was also no question about the solvency of the First National Bank. At Mayor Harmon called conference of bankers and legal advisors. He signed the "martial proclamation, closing Urbana for five days, effective immediately. At President B. Webber of the Association of Commerce, called together. After the had been plained by Mayor Harmon they voted to back his "martial proclamation to the limit. And Tuesday morning, Urbana closed up tight. The proclamation five-day "holiday" gave both banks legal reason for remaining closed. Thus the halted. By m. the tiresolicitors had obtained the signatures of practically every depositor. This accomplished, May Harmon terminated his five-day closing order immediately and that afternoon the stores re-opened. An of trade estimated at had been lost in the 36 hours but the merchants happy The banks, whose failure would have dragged many of them down. had been When the banks re-opened Thursday depositors began flocking back with their money. That day, deposits received at the First Bank amounted to times the amount of and the Busey bank the deposits times greater than withdrawals. Placards advertising the confidence Urbana had these banks appeared in store windows town. These were followed somewhat similar placards declaring. Gossip Mongers Must and calling upon good citizens report destructive doubtful gosthe Association of Commerce. Both appeared in newspaper while local newspaper editorial support of the move hearty and complete. Money in Banks. But the plan had worked too well; people were all their money the banks, spending at the stores. Business dropped. So the Association Commerce put more placards and newspaper urgthe public "Get Back to Usual!" This movement was successful, too, evidenced by the fact that "Dollar Day" sale the best three days in Urbana's history. Ever since then, business has progressed nicely. up the work, the Association of its of solicitors into committees to and run down destructive gossip about the city's banks, to prevent any of hysteria. Gossips so reported were visited by committee, which usually included lawyer, and warned about criminality of circulating false rumors regarding banks. The gossiping ended very quickly. This machinery having been beneficial in two instances, the Association of Commerce then turned into agency for promoting $100,000 home improvement campaign Urbana. Home owners canvassed, listed and promises of remodeling and repair work obtained. says George Chapin, managing secretary of the of have much work pledged can finance. We working now to finance this by promoting investments in our three building and loan which never lost cent of investors' money in their 45 years of existence. "They offer certificates of $100 denomination, paying cent interest annually. Subscriptions coming in nicely." President Webber. of the Association of Commerce, looks back over the battle and says: newspapers our city. They with us throughout. Their support was wonderful.'

16. March 20, 1932 The Tulsa Tribune Tulsa, OK

Article from The Tulsa Tribune, March 20, 1932

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Urbana, Closed Up By Mayor to Fight Off Panic; Booming After Learning Lesson MAYOR GETS BUSY also no question about the solvency of Gossips Gagged as Town solicitors had obtained the signatures At midnight the solicitors and of- the First National bank. of practically every depositor This ficials of the Association of Commerce At 3 a. m. Mayor Harmon was called Banks Are Saved, accomplished. Mayor Harmon terminheld a meeting at downtown hotel Into conference of bankers and their ated his five-day closing order immer Gets Prosperity-Minded where a dutch luncheon was served legal advisers. He signed the martial diately and that afternoon the stores A dramatic incident of the midnight law proclamation. closing Urbana for reopened By ROBERT TALLEY NEA Service Writer RBANA, III., March 19.-This is the story of a town that has whipped the depression, brought about business improvement, restored economic stability to the community and is now in the midst of a $100,000 home improvement campaign-all as the result of an hysterical "run" on the town's two banks, which threatened to break both of them. Mayor Reginald C. Harmon's drastic five-day "moratorium," closing all business houses In the city except drug stores and groceries. gave the town an enforced period in which to "cool off and started the chain of events toward this Public confidence, which the Urbana Association of Commerce worked feverishly to restore at midnight meetings during this hectic period. did the rest. Today. approximately 60 days after that fateful January 18 which saw long lines of frantic and frightened depositors withdrawing their money from Urbana's two banks. visitor finds Urbana normal. confident. busy and headed for bigger things. The same committees that stopped the bank "run" are now being used to canvass the city in an effort to bring about $100,000 of home improvements -remodeling and repairs- this campaign is meeting with remarkable success The city, with population of 13,500 is the home of the University of realized says Mayor Harmon, Urbana 32-year-old chief executive "the was undertaking when issued that closed up the city It was move in the history of the country If It succeeded. might the town's banks and save a lot of our merchants from being dragged down ruin with them If It failed. would be the goat and It would mean the end of my political career "But It worked It has also worked in dozen other cities that have since tried BANKS SOUND "Urbana's banks Mayor Harmon continued. "were as sound as dollar There was nothing wrong except a lot of hysterical rumors big bank in the neighboring town of Champaign had just closed. dragging smaller bank down with it. That started lot wild rumors about Urbana's People believed these hysterical stories. without pausing to investigate their truthfulness And the 'runs' followed. And no bank. no matter how sound. can withstand a major 'run' If has been doing its duty by making loans to the business houses of the That day Monday January the First National Bank of Urbana and the Busey State Bank were overrun with long lines of depositors, drawing out their money The Busey State Bank weathered the storm until and then closed temporarily as state banks are permitted to do The First National. however could not close for moment without losing its federal charter so It had cash rushed from Chicago in an armored car This money arrived about p. m., the bank's closing hour DEPOSITORS PLEDGED At p. m that day the directors of the Urbana Association of Commerce and the merchants of the town, held hurried meeting A special committee was appointed to take charge of the emergency and it drew up pledge to be circulated among the 6,000 depositors who had a total of in the two banks This piedge read "Having confidence in soundness of Urbana and its banks we pledge to the people of Urbana that we will not withdraw from either Busey's State bank or the First National bank any part of our account therein until this present period of hysteria has fully subsided and If all the depositors of the community will do likewise the banks be will be saved and property values preserved By m. the pledges had been printed and solicitors were leaving to get the signatures of depositors Meanwhile the banks had supplied the Urbana Association of.Commerce with a list of their depositors having balances of $500 or more The test-out campaign was in the business section. By m. Postmaster Gray and Undertaker John T. Wilcox had turned in about 150 signed pledges from the busthess district and reported that not single turn-down had been received During the night stenogr worked feverishly, listing the rest of the de- meeting was the introduction of M W Busey, the year-old president of the Busey State bank "The Busey State bank is solvent." the veteran banker assured the solicitors. His voice choked as he described the institution which he had spent lifetime in building. now threatened with ruin by the "run. The veteran banker was followed by Douglas R. Fay 32. president of the First National bank of Urbana. said to be the youngest bank president in the country. Fay declared that there was five days, effective immediately At m., President T. B. Webber of the Association of Commerce. called Urbana's merchants together After the situation had been explained by Mayor Harmon they voted unanimously to back his martial law proclamation to the limit And so, Tuesday morning Urbana closed up tight The mayor's procla mation for a five-day holiday gave both banks a legal reason for remaining closed. Thus, the "run" was halted By 3 p. m. Wednesday, the tireless An amount of trade estimated at $75,000 had been lost in the 36 hours. but the were happy The banks. whose failure would have dragged many of them down, had been saved When the banks reopened Thursday morning began flocking back with their money That day deposits received at the First National bank amounted to 31 times the amount of withdrawals and in the Busey bank the deposits were 25 times greater than withdrawals. Shops Now Busy

17. March 25, 1932 Seminole Producer Seminole, OK

Article from Seminole Producer, March 25, 1932

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Urbana, Closed Up by Mayor to Fight Off Panic, Now Booming After Learning Lesson Gossips Gagged as Town Gets Prosperity-Minded BY ROBERT TALLEY NEA Service Writer URBANA, Ill., March 23.-This is the story of a town that has whipped the depression, brought about business improvement, restored economic stability to the community and is now in the midst of a $100.00 home improvement campaign-all as the result of an hysterical "run" on the town's two banks, which threatened to break both of them. Mayor Reginald C. Harmon's dras tic five-day "moratorium," closing all business houses in the city except drug stores and groceries, gave the town an enforced period in which to "cool off" and started the chain of events toward this improvement. Public confidence, which the Urbana Association of Commerce worked feverishly to restore at midnight meet ings during this hectic period, did the rest. Today, approximately 60 days after that /ateful Jan. 18 which say long lines of rfantic and frightened depositors withdrawing their money from Urbana's two banks, a visitor finds Urbana normal, confident, busy and headed for bigger things. The same committees that stopped the bank "run" are now being used to canvass the city in an effort to bring about $100,000 of home improvements -remodeling and repairs-and this campaign is meeting with remarkable success. The city, with a population of 13,500, is the home of the University of Illinois. "I realized," says Mayor Harmon, Urbana's 32-year-old chief executive, "the risk I was undertaking when I issued the order that closed up the city. It was a move unprecedented in the history of the country. If it suc ceeded, I might save the town's banks and save a lot of our merchants from being dragged down to ruin with them; if it failed, I would be the goat and it would mean the end of my political career. "But it worked. It has also worked in a dozen other cities that have since tried it. Banks Sound Urbana's banks," Mayor Harmon continued, "were as sound as a dollar. There was nothing wrong except a lot of hysterical rumors. A big bank in the neighboring town of Champaign had just closed, dragging a smaller bank down with it. That started a lot of wild rumors about Urbana's banks. "People believed these hysterical stories, without pausing to investigate their truthfulness. And the 'runs' followed. And no bank, no matter how sound, can withstand a major 'run' if it has been doing its duty by making loans to the business houses of the town." That day-Monday, Jan. 18-the First National Bank of Urbana and the Busey State Bank were overrun with long lines of depositors, drawing out their money. The Busey State Bank weathered the storm until 10:30 a. m., and then closed temporarily, as state banks are permitted to do. The First National, however, could not close for a moment without losing its federal charter, so it had $400,000 cash rushed from Chicago in an armored car. This money arrived about 3 p. m., the bank's closing hour. Depositors Pledged At 1:30 D. m. that day. the directors of the Urbana Association of Commerce and the merchants of the town held a hurried meeting. A special committee was appointed to take charge of the emergency and it drew un a pledge to be circulated among the 6000 depositors who had a total of $2,000,000 in the two banks. This pledge read: "Having confidence in the soundness of Urbana and its banks. we pledge to the people of Urbana that we will not withdraw from either Busev's State Bank or the First National Bank any part of our account therein until this present period of hysteria has fully subsided. and if all the depositors of the community will do likewise the banks will be saved and property values will be preserved." By 5 n. m.. the pledges had been printed and solicitors were leaving to get the signatures of depositors. Meanwhile the hanks had supplied the Urbana Association of Commerce with a list of their depositors having balances of $500 or more. The testout campaign was in the business section. By m.. Postmaster Grav and Undertaker John T. Wilcox had turned in about 150 signed pledges from the business district and reported that had been turn down a single ceived. During the night, stenograph ers worked feverishly, listing the rest of the depositors. Mayor Gets Busy At midnight, the solicitors and officials of the Association of Commerce held a meeting at a downtown hotel, where a dutch luncheon was served. A dramatic incident of this midnight meeting was the introduction of M. W. Busey, the 75-year-old president of the Busey State Bank. The Busey State Bank is solvent." the veteran banker assured the solicitors. His voice choked as he described the institution which he had spent a lifetime in building. now threatened with ruin by the "run." The veteran banker was followed by Douglas R. Fay, 32. president of the First National Bank of Urbana, said to be the youngest national bank president in the country Fay declared that there was also no question about the solvency of the First National Bank. At 3 a. m., Mayor Harmon was called into a conference of bankers and their legal advisors. He signed the "martial law" proclamation, closing Urbana for five days, effective immediately. At a. m., President T. B. Webber of the Association of Commerce, called Urbana's merchants together. After the situation had been explained by Mayor Harmon they voted unanimously to back his "martial law" proclamation to the limit. And so, Tuesdav morning. Urbana closed un tight. The mayor's proclamation for R five-day "holiday" gave both banks a legal reason for remaining closed. Thus, the "run" was halted.

18. March 25, 1932 Seminole Producer Seminole, OK

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MAYOR RAPS MOB HYSTERIA BY R. C. HARMON Maydr of Urbana, III I venture the assertion that fully half of our bank "runs" in this country today are due to hysteria on the part of people who have heard a lot of wild, false and baseless rumors. That was certainly the case in Urbana. Few banks close as the result of dishonesty behind the counter. Sometimes, unwise investments cause them to fail. But in most cases a "run" is caused by sheer hysteria. Any city can do what Urbana has done, if the said city is loyal and community spirited. But if the citizens are not loyal and willing to co-operate, there is not much a mayor can do. A mayor can't enforce "martial law." If he tried to do so, he might have to put hundreds of persons into jail and that would cause a riot. That's where loyalty and public spirit comes in. Urbana had the loyalty and co-operation of its citizens in this crisis. Of the 6000 depositors of our two banks, those who refused to join us could be counted on the fingers of one hand. By 3 m. Wednesday, the tireless solicitors had obtained the signatures of practically every depositor. This accomplished, Mayor Harmon to minated his five-day closing order immediately and that afternoon the stores reopened. An amount of trade estimated at $75,000 had been lost in the 36 hours, but the merchants were happy. The banks, whose failure would have dragged many of them down, had been saved. When the banks reopened Thursday morning, depositors began flock ing back with their money. That day, deposits received at the First National Bank amounted to 31 times the amount of withdrawals, and in the Busey Bank the deposits were 25 times greater than withdrawals. Placards advertising the confidence Urbana had in these banks appeared in store windows all over the town. similar placards declaring "The Gossip Mongers Must Go!" and calling upon good citizens to report destructive and doubtful gossip to the Association of Commerce. Both also appeared in newspaper advertisements, while local newspaper editorial supcomplete. Money in Banks But the plan had worked too well; people were putting all their money in the banks, instead of spending it at the stores. Business dropped. So the Association of Commerce put out placards and newspaper advertisements, urging the public to "Get Back to Normal-Business as Usual!" This movement was successful, too, as evidenced by the fact that a citywide "Dollar Day" sale a few days later brought one of the best business days in Urbana's history. Ever since then, business has progressed nicely. Following up the work, the Association of Commerce converted its committees to investigate and run down destructive gossip about the city's banks, to prevent any repetition of hysteria. Gossips SO reported were visited by a committee, which usually included a lawyer, and warned about the criminality of circulating false rumors re very quickly. This machinery having been SO beneficial in two instances, the Association then turned it into an agency for promoting a $100,000 home improvement campaign in Urbana. Home owners were canvassed, listed pair work obtained. "Now," says George Chapin, man-