First National Bank - Waukegan, IL

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: national
Bank ID: 945
Charter Number: 945
Start Date: March 8, 1933
Location: Waukegan, Illinois (42.364, -87.845)

Metadata

Model: gpt-5-mini
Short Digest: 06c45505

Response Measures

Accommodated withdrawals, Capital injected, Full suspension

Description

Multiple articles (Mar–May 1933) describe several runs on the First National Bank in March, interruption by the national/moratorium and ensuing negotiations (waivers, stock sales) in May that prevented liquidation and allowed reopening. Cause of initial runs appears linked to failures of nearby banks and general local contagion (Lake County State Bank, withdrawals), not a discrete misinformation event.

Events (4)

1. March 8, 1933 Run

Cause: Local Banks
Cause Details: Runs occurred in March 1933 amid failures/closing of other local banks (Lake County State Bank of North Chicago) and general withdrawal pressure.
Measures: Bank remained open through the runs; directors and community later organized waivers/stock sales to shore up the bank.
Newspaper Excerpt: Three severe runs, each of which would have closed ordinary institution, have served to re-emphasize the unassailable position of the First National bank.
Source: newspapers

2. March 10, 1933 Suspension

Cause: Macro News
Cause Details: Interruption tied to the national moratorium/bank relief legislation and severe withdrawal pressure following local bank failures; bank could not immediately reopen after moratorium and faced possible conservatorship/liquidation proceedings unless capital/waivers obtained.
Newspaper Excerpt: Owing to the fact that the ... the board deemed advisable ... under the bank relief legislation ... the bank reopen, the board deemed advisable ... conservatorship ...
Source: newspapers

3. May 3, 1933 Other

Newspaper Excerpt: Shares numbering yesterday surrendered stockholders the First National bank ... toward the reopening of the [bank]. Meeting of stockholders ... held the banking May 3rd ... shares placed with the Conservator ... pending approval of the Comptroller of the Currency . . . the meeting was then adjourned until some future [date]. (May 3, 1933). (Excerpt truncated due to OCR errors). , cause: other, cause_details: Stockholders surrendered shares and placed them with conservator pending Comptroller approval as part of reorganization/recapitalization efforts., random_run: false, random_run_snippet: null, measures: Stock surrendered, waivers signed, stock sale and waivers campaign to cover deposit liabilities and enable reopening.
Source: newspapers

4. May 19, 1933 Reopening

Newspaper Excerpt: Their confidence has returned at last, in time to keep the bank from liquidation. May it be more lasting than the previous brand. ... making it possible for the institution to reopen without the wasteful process of liquidation. Their confidence has returned at last, in time to keep the bank from being permanently closed. (May 19, 1933). (Excerpt truncated). , cause: other, cause_details: Reopening accomplished after community signed waivers and purchased stock to cover liabilities; avoided liquidation/conservatorship., random_run: false, random_run_snippet: null, measures: Waivers signed, stock sales, stock placed with conservator and pending Comptroller approval to restore capital and resume operations.
Source: newspapers

Newspaper Articles (6)

1. March 8, 1933 Waukegan News-Sun Waukegan, IL

Article from Waukegan News-Sun, March 8, 1933

Click image to open full size in new tab

Article Text

FIRM AS ROCK Whatever trials and tribulations this community has suffered in the past three years, may thank its stars for the fact that it has least one financial institution which has remained firm. is the First National bank, of which Charles Steele is president. Run run has failed to shake the financial foundations this institution. While other banks have closed their doors in the face of unremitting pressure, the First National bank has been open for business usual. Nothing less than national moratorium was necessary to interrupt ts daily grind. Never before has Waukegan appreciated the value of strong bank. the keystone of the community's financial structure. Without the business merchants, wage earners and thousands of others would be at loss to transact their daily business. They would have to revert to the days of trade and barter and suffer all the inconveniences attending that transition. Three severe runs, each of which would have closed ordinary institution, have served mereemphasize the unassailable position of the First National bank. Each day reveals that its strength that of Gibraltar. Waves may beat against time and again, but stands firm, source of confidence and medium of service.

2. March 10, 1933 Waukegan News-Sun Waukegan, IL

Article from Waukegan News-Sun, March 10, 1933

Click image to open full size in new tab

Article Text

VICTIM OF TWO CHECKS MAY BE BANDITS Merchants Propose That The Industries Issue Checks In Small Denominations. meeting merchants called the instance Chamber merce, brought whereby business may issued tomorrow and checks supplies bank The necessary local scrip forestall unusual pending opening bank, next Monday have asked the payroll checks and them goods viding the checks issued without giving back too amount they limited and for then change $20 check The heads definitely quested indications were that majority them would folplan. The checks would issued the First National bank Waukegan The meeting attended by practically all and large number Some because already Chicago and New York tions for cash enough to cover their payrolls Officials Abbott Laboratories announced that they obtained cash enough employes' payroll checks which did not clear the bank after the last pay day ago Monday. Available will also bi-monthly payroll due employes next Monday

3. March 16, 1933 Waukegan News-Sun Waukegan, IL

Article from Waukegan News-Sun, March 16, 1933

Click image to open full size in new tab

Article Text

CHAMBER AND BANK DIRECTORS MEET The Chamber of today the and the Chamber at o'clock this the Karcher which Charles Steele the First National bank and the be present. The bank officials are asked to explain the present situation. William D. Jones, cashier the and its directors, stated that Steele in Chicabut was expected back Waukegan o'clock this afternoon, and he returned would be present the meeting. Even though Steele does not back Jones assured Theodore the Chamber the directors the would attend the o'clock meeting. and withdrawals only on the new It amounts, substantially to ing line through the the bank and starting top old business. The old business then will be the deposit liability met as the bank The deposit Hability of the First National $2,500,000 about $1,000,000 less than when the Lake County State bank of North Chicago failed, which started quiet withdrawal funds that culminated an $500,000 run March the the National moratorium effective. Steele and the directors agreed. Steele that the request conservator the best action for the city whole. It would provide facilities, and allow the resumption of bus- The text of the brief statement issued by directorate and signed "Board of the First tional bank of was as follows: "Owing to the fact that the retary the treasury has license First National bank Waukegan reopen, the board deemed advisable and that under the bank relief legislation sible, bank service the munity under the act and to help plan and bring about such adjustments as may be neces- The only Information available to the officials the bank that the government has failed to on the certificate permit conservatorship is constru- (Continued on Page 2. Column "

4. May 4, 1933 Waukegan News-Sun Waukegan, IL

Article from Waukegan News-Sun, May 4, 1933

Click image to open full size in new tab

Article Text

STOCKHOLDERS TURN SHARES Shares numbering yesterday surrendered stockholders the First National bank the first toward the reopening of the There are outstanding report available Charles president of the issued the following statement meeting of stockholders of the First National Bank of Waukegan held the banking May 3rd plan the Federal Departof tentatively subject the approval the shares placed with the ConservaWilliam Jones pending approval the the Comptroller Currency The meeting was then adjourned until some future

5. May 18, 1933 Waukegan News-Sun Waukegan, IL

Article from Waukegan News-Sun, May 18, 1933

Click image to open full size in new tab

Article Text

HOPE TO END STOCK SALE IN FEW DAYS Bank Employes Busy Checking Waivers; Enough Are In Cover Per Cent Of Deposit Liability. With more shares stock sold First National the remaining block sold consisted shares. Charles Steele, president. stated today. Waivers signed the bank and crew seven employes were midway checking the waivers determine the percent deposit liability of the were reached. The stock purchasers today included Johnson Motor Frederic Mrs Ethel Edwin Carroll Hazel Howard With the Chamber of Commerce completing part its toward opening the bank. headquarters today were moved the First National bank where waivers can be signed stock purchases pledged. Persons located by the committee selling stock waivers asked the bank part the transaction be completed. Hazel William Harry Rossiter, Dr. Percival Pearce. Attorney Miller Hopes Are High the special committee the WaukeganNorth Chicago Chamber of Comfeels certain that waivers the next hours definitely the this phase the bank He hopes that stock sale will the Steele certain all requirements are that the actually can open. There are details. he believes. with the comptroller currency may call delay several days all These, however. expects be minor little consequence in the consumption of During the day numerous persons bank signing waivers. them coming villages and farms the western part the county.

6. May 19, 1933 Waukegan News-Sun Waukegan, IL

Article from Waukegan News-Sun, May 19, 1933

Click image to open full size in new tab

Article Text

OUT OF THE MORATORIUM Much of the financial gloom that been hovering over the city of Zion has been removed its banks. The Zion with the reopening of two bank reopened several weeks ago, while the First the shackles of the State bank of Zion removed moratorium early this week. With both of its financial institutions functioning again, Zion the first communities in takes its place among to confidence and the to find the road county better business. Both of the Zion banks reopened under auspicious circumstances. Their reports show strong financial sufficient protect the money backing, of the depositors and to prevent ruinous tions. In announcing the reopening of the First State bank of Zion, William Finn, the president of the institution, uttered few words that heart in Lake should be taken to by everyone county, for they express the sentiment that has pulled many banks out of the moratorium rut. was the loyalty of our people in having never made run on the bank," Mr. Finn said, "that prompted our outside directors, that is, the men who do not live in our community, to contribute the cash which helped to reopen our Continual were what put the First National bank of Waukegan such condition that could not reopen directly after the moratorium. Had the people of Waukegan shown more confidence in their one surviving bank, it would not have been forced to through all the red tape that has featured the negotiations of the past two months. It is to be hoped that they have learned their lesson. During the past week the people of Waukegan and North Chicago have responded generously to the call to save the bank from liquidation. They have signed waivers and bought stock, making it possible for the institution to reopen without the wasteful process of liquidation. Their confidence has returned at last, in time to keep the bank from being permanently closed. May it be more lasting than the previous brand.