First American Bank & Trust Company (Lima, OH)

Episode Information

Episode Type
Run Only
Start Date
February 27, 1933
Location
Lima, Ohio (40.741, -84.112)
Bank Type
trust
Routing Number
56-0099

Metadata

Episode ID
Bank ID
City ID
Model
gpt-5-mini
Short Digest

Events (1)
1. February 27, 1933 Run
Cause
Macro News
Cause Details
Spillover effects from the Michigan banking moratorium and statewide banking distress; banks across Ohio imposed withdrawal limits.
Measures
Limited withdrawals to 2% of deposits (restriction imposed by directors).
Newspaper Excerpt
The First American Trust Co. of Lima, Ohio, limited withdrawals to 2 per cent of deposits.
Source
newspapers

Newspaper Articles (7)
1. February 25, 1933 The Kokomo Tribune Kokomo, IN

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OPEN DEMAND OF MICHIGAN BANKS

Mich. Feb. and busimerchants Seventy-five Michiof southwestern ness men the capitol today came state gan Governor William demand Comstock newly ac. to force powers quired bankers open of the normal business governor group require banks, should afteight-day closing an commercial restrictions while continuing checking accounts with around savings safeguards

Church Pentecostal 2445 The Pentecostal street holding North Kennedy studies, conducted series of Bible on Sunday Elder Irvin Bradley, by subject bo "What Sin Unto The form an open take study Herman Basore, Mr. and sing the afterBeech noon and evening services.

Resigns as Ambassador Feb. Hoover today accepted President Reuben Clark, the resignation Mexico, effective ambassador immediately. The ambassador told days Presithe after he would submit his resignation.

Restrict Withdrawals the Lima First American Trust Company meeting night placed restriction withdrawals of effective today resolution, directors limit of two per cent on

2. February 27, 1933 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, February 27, 1933

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Banking Situation Looms Up Brighter All Over Country All Changes Made Were for the Good of the PublicIn Detroit Henry Ford Puts Up Over Eight Million Dollars for Bank Reorganization Detroit's biggest bankers to-day (By United Press) when he stepped into the city's Banking upheavals, all designed financial crisis and was accepted to strengthen public confidence in as the dictator of two of the Autothe nation's financial system. OCmobile capital's important banks. curred ove a widespread area last Ford will put $8,250,000 into the night and to-day. First National Bank and The Limitations/of withdrawals of Guardian National Bank to enable deposits were extended into Clevethem to re-organize and re-open land, other Ohio cities and Indianunder new names, according to apolis; Henry Ford, arch-enemy of plans worked out at a series of bankers, was welcomed in Detroit Sunday conferences. Federal. in a move to re-organize two great ing authorities were reliably refinancial institutions there; and ported to have approved the plans, Charles E. Mitchell, who built the and the new banks may open for world's first billion dollar bank, ofbusiness by Wednesday. fered his resignation as its chairUnder the re-organization plans, man and as a director and it was Ford and his son, Edsel, who was accepted. one of the powers in the Guardian Some New York financial observbank group, will have complete auers have ascribed the slump in thority over the new banks which stocks and bonds of recent trading will be prepared to pay 35 per cent to depositors including 5 per cent days in part to the revelation of National City operations, and Mitpreviously authorized. Eventually chell in his statement of resignait is planned to merge the two intion said that he was unwilling stitutions. Members of Ford's organization that what he called "public misunderstanding" of the testimony took pains to emphasize that the should "react on the institution" on reason the Fords had refused to his account. co-operate in group attempts to re-organize the banks was that An echo of many current disHenry Ford did not agree with the putes over whether banks should policies of the bankers who had go outside the field of direct bankbeen in control; that his ideas were ing operations came in Detroit "HO revolutionary that he saw litwhen Ford, putting up $8,250,000 tle hope of having them adopted cash to capitalize re-organization by a bank board of which he would of two important banks, let it be be but one member; that "he beknown why he had refused to go lieves the bank's first function is to into a Gool with other wealthy men provide a place for safe deposit," to provide money for the instituand that "bank loans should be tions. made for productive and not specHe believed that a bank's first ulative purposes." function was "to provide a place In these words Ford made clear for safe deposit," a spokesman said his triumph in the financial affairs and he thought that "bank loans of the city. should be made for productive and The re-organized First National not speculative purposes." Bank will be called The People's Under an agreement announced Nation. Ford will put $5,625,000 during th night, Ford will name cash into it as capital, and will all the directors for two new banks have complete control of its votto take over the First National and ing stock. The Reconstruction the Guardian National banks, since Finance Corporation will lend it he is providing all the capital for $54,000,000. The Guardian National will bere-organization. Though official federal approval of the re-organcome the Manufacturers National ization plans had not been anBank. Ford will provide $2,625,000 nounced, it was made evident that capital and the R. F. C. will lend both the comptroller of the curthe new bank $24,000,000, under rency and the Reconstruction the plans worked out. Finance Corporation had approved. The R. F. C. will lend $78,000,000 BY LESLIE D. HARROP to help the new banks pay 35 per (United Press Staff Correspondent) cent of deposits to depositors in the Cleveland, Feb 27 - (U.P.) old institutions if they require it. Bankers in Cleveland, Akron, DayEventually the two new banks ton and Lima imposed emergency will be merged. restrictions upon depositors to-day to prevent serious financial difficulThe arrangement in expected to ties resulting from the repercuslead to a lifting of the state-wide sions in Ohio of the banking moraMichigan bank moratorium. toria in Michigan and Maryland. In Ohio, the following banking In Dayton, banks were closed developments grew out of weekunder a three-day moratorium. end conferences, some of which did Cleveland depositors were unable not reach agreement until the to withdraw more than 5 per cent early hours of to-day: of their savings and commercial In Cleveland, all banks except deposits. the National City will restrict withIn Akron, Savings depositors drawals from commercial and savwere restricted to 1 per cent withings accounts to 5 per cent except drawals per month and commercial on sixty days' notice. depositors were warned that atIn Dayton, the mayor declared a tempts to withdraw more than custhree-day complete banking moratomary amounts needed for bustorium, with the approval of all iness-to be judged by the daily banks. average of the past several months In Akron, banks will permit -would be refused. withdrawals by depositors for Depositors in the First American "normal business 'needs as deterTrust Company at Lima were remined by average withdrawals over stricted to 2 per cent withdrawals. several months. Governor George White, at CoIn Lima, the first American Trust lumbus, maintained close watch Company continued a two per cent over the situation. He asserted that restriction initiated Saturday. the difficulties were local and that The Indianapolis Clearing House

3. February 27, 1933 Evening Star Washington, DC
Article from Evening Star, February 27, 1933

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Article Text

WITHDRAWALS CUT BY 20 OHIO BANKS Institutions With $815,000,000 in Deposits Await Legislative Action. By the Associated Press. COLUMBUS, Ohio, February 27.Twenty Ohio Banks, all but two in Cleveland, Akron, Dayton and Ycungstown, today placed restrictions on heavy withdrawals in anticipation of emergency banking laws Gov. George White promised to offer to the current Legislature. On the basis of December 31, 1932, statements. the institutions had more than $815,000,000 in deposits and more than $1,025,000,000 in rescurces. Both in Akron and Cleveland, the banks announced future deposits would be set aside and not be placed under the restrictions. All Dayton banks closed for a three-day holiday. One Refuses to Participate. All eight of Cleveland's banks opened as usual, but six of them limited withto 5 per and a seventh, a Trust, drawals deposits, placed temporarily restriction the of Guardian cent 1 per of cent. The eighth, the National City Bank, declined to participate and announced it would conduct business on a normal basis. The six which limited withdrawals cent of deposits were the Bank, National Cleveland to American 5 per Savings Bank, Central Trust United Co., Lorain Street Savings & Trust Co., Society for Savings and Union Trust Co. While they placed no specified limit, the Union National and the Mahoning National Banks at Ycungstown announced they would restrict large and unusual withdrawals. Sufficient funds will be paid cut on demand, they said, to prevent inconvenience to customers. One Per Cent Per Month. Akron's five banks - First Central Trust Co., Firestone Park Trust & Savings Bank, the Commercial Bank & Trust Co., the Dime Savings Bank Co., and the Standard Savings Bank-restricted savings deposit withdrawals. to 1 per cent per month. "Abnormal" checking account withdrawals will not be honored under a complicated system. The four banks of Dayton-the Winters National, the Third National, the Merchants National and the Morris Plan-declared a three-day holiday under a declaration by the city commission and mayor. The Clinton Savings Bank Co., near Akron, announced it would follow the lead of Akron banks. The First American Trust Co. of Lima, Ohio, limited withdrawals to 2 per cent of deposits. There was no announced action to interrupt normal banking elsewhere in the State. Gov. White declined to divulge the nature of the proposed legislation. Manager G. A. Stephenson of the Cleveland Clearing House Association, however, said the suggested laws would "enable the superintendent of banks, with the approval of the Governor and attorney general, to stop or limit withdrawals from Ohio banks."

4. February 27, 1933 Stevens Point Journal Stevens Point, WI

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MITCHELL OUT HEAD THE NATIONAL CITY

At Detroit Ford Takes Over Two Great Banks and Provides Entire Needed

Capital

DELOS SMITH New of the National City bank affiliates, today, accepted the resignation of Charles Mitchell, its and genius who made second largest bank in the world. By accepting the resignation, the Mitchell sever all the National City The was direct the senate baking committee hearings which Mitchell made sensational Strengthening Confidence

Other banking changes, all designed strengthen public confidence the nation's financial tem, occurred widespread night today. Limitations withdrawals of deposits extended Ohio cities, Indianapolis; Henry Ford offered reorganize great financial institutions in Detroit. Mitchell's resignation was submitted as left for Washington resume before the sencommittee banking and rency which has from him and other officers of National City affiliated companies story of bank operations outside the strict limitations of banking field aroused widespread Some New York financial observers the slump in stocks and bonds of recent trading days part the revelation National City operations, Mitchell statement resignation that unwilling what he called "public understanding" testimony should "react on the institution" his account.

Ford Lays Down Rule

An echo current disputes banks should outside the field of direct banking came in Detroit when Ford, up $8,250,000 cash let be why he had refused to go into other wealthy provide money for the instituHe believed that bank's first provide place for safe deposit, said, and thought that "bank loans should be made for and not purposes.' Under announced last night, Ford name all dibanks to take the First and the Guardian banks, since he providing all the capital for organization. Though official federal approval of the reorganization plans had been announced, was made that both the comptroller currency and the Reconstruction corporation approved. The R.F.C. will lend $78,000,000 help new banks pay 35 per deposits depositors the old institutions if require Eventually the two new banks be merged. The arrangement is expected lead lifting state-wide bank moratorium. Developments Elsewhere In Ohio, following banking developments grew out week-end conferences, which did not reach agreement until this mornCleveland, all banks except the National City restrict withdrawals from commercial and accounts five per cent exdays' notice. mayor declared three-day banking atorium, with the approval of all banks. In Akron, banks will permit withdrawals by depositors for "normal business" needs, determined by average withdrawals over several In Lima, the First American Trust company continued two per cent restriction initiated SaturThe Indianapolis Clearing House limit five per from all bank accounts, effective with the start business today, but Governor Paul McNutt reiterated that statewide moratorium was Maryland, where moratorium declared Saturday effective for three banking days, looked to legislators relief through bill limiting withdrawals by depositors, expected to be offered tonight.

OHIO BANKS LEAD

Lorain, Elyria, Youngstown, Massilon and Akron business today with degrees In Dayton and Montgomery counpurely localized three-day moratorium effect. Lima two the three banks Practically the banks joining the restrictions today were affected the CleveDayton banks. Cleveland stock exchange and voted No limit placed on the closing order.

All banks Lorain followed the lead of nearby Cleveland allowonly five withdrawals. Twelve banks villages and in Montgomery county joined Dayton banks in three-day Elyria banks, in the Cleveland limited savings account withdrawals approximately cent per month. No placed on commercial counts. Youngstown banks joined the limiting withdrawals one bank and $25 plus five

5. February 27, 1933 The Buffalo News Buffalo, NY

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LIMITED WITHDRAWALS ORDERED IN OHIO CITIES

Feb. 26 Banks in two will be open Monday under limited financial emergencies which George White declared localized that he pledged himself not declare any statewide banking Akron Clearing house early Sunday indefinitely restrict withdrawals normal determined months' allowing savings depositors withdraw at the cent. monthly The First American Trust company Lima Saturday voted restrict per cent. for an definite period.

6. February 27, 1933 The Galion Inquirer Galion, OH

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Cleveland, Dayton, Akron, and Lima Institutions

Banking interests in the state well nearly one else have every keenly watching the trend conditions that have been brought climax through the banking moratorium affecting Michigan week, The purpose of the morato rium been misunderstood large proportions and the effect from would of necessity carry over into Ohio increasing wonder the public mind to what about. First, there will be effective probably today successful in through his plans that the banking industry 60 bank may not suffer from the reasonable hysteria of tomers in creating on the bank. the element the Ohio situation today has caused by the action the banks except one, the tional City, in putting into effect through clearing house regulation percent restriction on drawals in checking and accounts. This action also tered into Akron, and Lorain. Dayton, three-day invoked until state and federal laws may become operative. In Lima, the First American Trust Company continued percent restriction. Elyria banks, in the Cleveland limited savings account drawals to approximately 10 cent month. limitations placed commercial accounts. Fancher the Reserve Bank, that this move one of unquestioned prudence and constructive operation. has the great treating all classes of alike and depositors under these extraordinary conditions. The ordinary layman with bank. connections may sit background quietly and feel that development will tect his interests better than other policy possible. Further this condition and procedure will guarantee against further morato rium closing banks for other reason. The control of withdrawals allow the orderly carrying business and trade, and curb the hysteria of those who may derstand the safety resulting from the plan. Notwithstanding. may go forward as before and the Buckeye citizenry may feel that its financial safety much strengthened by the limiting withdrawals and other that have been instituted for protection. This condition has not been caus. from lack of money but shifting of funds because other Any community may suffer heavy loss un warranted demands made its financial institutions, the fact they may be perfectly edged and adequate to carry on all the community's needs. Many depositors gathered some the banks of Cleveland this morning, but content take their restricted withdrawals gracefully, the atmosphere chang Ing to one that might holiday throng of laughter erings. No disturbance of nature has developed in Ohio today.

7. January 4, 1934 Troy Daily News Troy, OH

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GIVEN JUDGMENT AGAINST

Receiver Named By Court For Trust Estate of Defunct Lima Instituof $100,791 Allowed

LIMA, O., Jan. (United Press) Reconstruction Finance corporation today held judgment against H. Cook, trustee the defunct First American bank Lima. The verdict was returned in Allen county common pleas court. In awarding the judgment, Judge Everett appointed Fred Becker. former city manager, in charge of the trust estate ceiver of the bank. The estate was said to of securities with face consist value of $212,000. Appraisers were named and ordered to file report in First American was consoliThe dated with the Lima Trust company 1931. The merged instituin June, known the Lima First tion, as Trust company, borrowed American $1,200,000 the closed during the bank holiday.