5688. National Bank of America (Gary, IN)

View Charter #11094 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
11094
Charter Number
11094
Start Date
January 2, 1932
Location
Gary, Indiana (41.593, -87.346)

Metadata

Model
gpt-5-mini
Short Digest
51b13c37

Response Measures

Full suspension, Books examined

Receivership Details

Depositor recovery rate
89.0%
Date receivership started
1932-02-10
Share of assets assessed as good
35.9%
Share of assets assessed as doubtful
55.2%
Share of assets assessed as worthless
8.9%

Description

Contemporary articles state the National Bank of America at Gary closed in early January 1932 after runs that spread from the Calumet district and neighboring Hammond. A national bank examiner/receiver took charge and the institution remained closed and in liquidation through 1932–1933 (receiver reports and court case in 1933). Date of closing commonly reported as Jan 2, 1932; articles from Jan 4–6 refer to the recent closing. Cause attributed to runs prompted by failures/closures of nearby banks (local bank distress/panic).

Events (5)
1. October 26, 1917 Chartered
Source
historical_nic
2. January 2, 1932 Receivership
Newspaper Excerpt
Federal Bank Examiner Robinson took charge / affairs were turned over to national bank receiver; later receiver reports for 1932 show collections and dividends paid to depositors and secured claimants in 1932-1933.
Source
newspapers
3. January 2, 1932 Run
Cause
Local Banks
Cause Details
Runs spread from the Calumet district and the recent closing of Hammond banks provoked heavy withdrawals at the Gary bank.
Measures
Federal bank examiner/assistant national bank examiner took charge; affairs turned over to a national bank receiver.
Newspaper Excerpt
GARY BANK CLOSES. National Bank of America today succumbed to run of frightened depositors and closed its doors.
Source
newspapers
4. January 2, 1932 Suspension
Cause
Local Banks
Cause Details
Directors closed the bank after sustained heavy withdrawals tied to regional runs and the recent closure of neighboring Hammond banks; examiner/receiver asked to take charge.
Newspaper Excerpt
The National Bank of America closed Monday and the run on the First National followed.
Source
newspapers
5. February 10, 1932 Receivership
Source
historical_nic

Newspaper Articles (15)
1. January 4, 1932 Waukegan News-Sun Waukegan, IL
Article from Waukegan News-Sun, January 4, 1932

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STOCKS LOWER the Chicago stock exchange tended generally downward today Profit taking wiped out the vances registered during year end window dressing Acme against the trend and advanced Demand for stock based on expectation enlarged by the Gypsum dipped LOUIS BANK CLOSED ST Bank St. Louis with $250,000 and closed by its board directors today and an assistant National Bank examiner asked take charge There had been run on the bank for several weeks, the directors said. GRAIN SUPPLY NEW YORK Jan. ible supply of American grain shows the following changes in bushels wheat 604,000 increased 8,000; decreased 41,000; barley decreased 54,000. PEORIA GRAIN PEORIA Cash low mixed mixed white 24 while CLOSE GARY BANK was left with two banks today the National Bank America closed H. Hay chairman of the board of directors said the bank closed to had protect depositors' assets deposits $800,000 Federal Bank Examiner Robinson took charge

2. January 5, 1932 The Indianapolis Star Indianapolis, IN
Article from The Indianapolis Star, January 5, 1932

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GARY BANK CLOSES. tional Bank of America today succumbed to run of frightened depositors and closed its doors. The closing Saturday of last last two banks in the neighboring city of Hammond caused an uneasiness that spread to this city. Confronted with heavy withdrawals National Bank of America closed doors and its affairs were turned over to national bank The tank capitalized at $150,000 and assets of deposits had been reduced by with drawals weeks to approxmately $245,000. TRUST COMPANY FAILS. Ind., Jan. Peoples Loan and Trust Company of this city was closed today for liquidation. Directors met yesterday and decided to liquidate the bank's affairs. The bank capitalized at $25,000 and its last report total of $269,282.64 and deposits of $217,510.27 ONE AT ST. LOUIS. ST. LOUIS, Mo., Jan. The Vandeventer National bank of St. Louis, with capital stock of $250, 000 and deposits of approximately was ordered closed by its board of directors early today and an assistant national bank examiner was asked to take charge. There had been slow run on the bank for several weeks, the directors said. W. C. Johnson is president of the institution.

3. January 6, 1932 The Capital Journal Salem, OR
Article from The Capital Journal, January 6, 1932

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Article Text

Two Day Run Closes Second Bank In Gary Gary, Ind., Jan. 6 (LP)-The First National Bank, a $4,500,000 institution, closed at 1:30 p. m. Tuesday after two day run on deposits. Gary was left with only one bank, the Gary State, the National Bank of America closed Monday and the run on the First National followed. Closing of the last bank in Hammond to weather the financial pressure in the Calumet district on Saturday was believed partly responsible..

4. January 8, 1932 The Producers News Plentywood, MT
Article from The Producers News, January 8, 1932

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ALL BANKS BUT ONE HAVE FAILED IN CITY OF GARY, INDIANA Gary, Ind., Jan. 6.-The city of Gary found itself tonight with only one bank still doing business. The next to last bank in the city closed today because of a run. It was the First National, a $4,500,000 institution. President F. R. Schaaf predicted it would be reopened within a week. Bank runs started in the Calumet district of Indiana last week. On Saturday, the last bank in nearby Hammond, a city of 64,000 persons, was closed, making Hammond probably the only city in America of that size without a single banking institution. Monday the National Bank of America closed here. That left only the First National and Gary State. When the First National closed at 1:30 p. m. today, only the Gary State was left.

5. May 17, 1932 Vidette-Messenger of Porter County Valparaiso, IN
Article from Vidette-Messenger of Porter County, May 17, 1932

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LAKE COUNTY GETS $25,000 SURETY FEES CROWN POINT, May county treasurer was richer $25.000 Monday when two bonding companies paid in that amount monon surety bonds which they had underwritten for couny deposits in defunct banks. The Fidelity Deposit company, of Maryland, forwarded check $10,000 cover the surety bond which had underwritten county deposits in the closed Naon tional Bank of America at Gary. The other check of $15,000 came the United States Fidelity and from Guaranty of Maryland, for its surety bond payment county deposits in the defunct Commercial Trust company, of Gary. companies paid their surety Both in full. The county strivbonds obtain additional ing to sureties underwritten by these companies in other closed banks Lake county. MUST SHOW FLAG REDS munists and other radicals the American flag at display cannot use Detroit their schools for their gatherings public resolution under the board of education. adopted

6. November 28, 1932 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, November 28, 1932

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OCTOBER LOANS FROM R. F. c. IN SHARP GAIN Grand Total of Nearly 195 Millions Is Reached by Borrowers. By United Press WASHINGTON, Nov. 28.-The Reconstruction Finance Corporation today reported to the clerk of the house that its loans during October had increased approximately $55,000,000 over September, reaching a grand October total of $194,923,447. Loans showed large increases in every classification except those to banks, trust companies, railroads and similar enterprises. The increase included a $24,000,000 subscription to the stock of the regional agricultural credit banks. Loans to banks, railroads and similar organizations totaled $59,023,185, as compared with $64,217,500 during September. Emergency relief advances to states showed an increase from $18,523,502 to $22,634,562; while loans for self-liquidating construction projects increased from $53,105,000 to $81,514,500. Relief through the agricultural department was $7,500,000 as against $2,500,000 during the previous month. Advances for financing sale of American agricultural products abroad totaled $251,000 for October. Get 601 Applications Of the $59,023,185 authorized for banks and other financial institutions, $21,448,494 was advanced to banks and trust companies, including $1,940,250 to aid in liquidating closed banks. Building and loan associations received $3,701,907; insurance, $1,209,000; mortgage loan companies, $4,392,500; joint stock land banks, $594,930; agricultural credit corporation, $1,272,978; live stock credit corporations, $477,105, and railroads, $25,926,269. Applications for loans totaled 601, including 484 from banks and trust companies, 62 from building and loan associations, 6 from insurance companies, 10 from mortgage loan companies, 2 from credit unions, 3 from joint stock land banks, 14 from agricultural credit corporations, and 10 each from live stock credit corporations and railroads. The bank applications included 21 from the receivers or liquidating agents of closed banks. State Banks Get Loans The corporation reported that since organization of the corporation a total of $4,765,448 in loans had been withdrawn or canceled by the organizations originally seeking them. Only three state relief loans during the month totaled more than $1,000,000; Illinois receiving the largest advance, $6,303,150. Loans to banks included: Indiana, Elwood, Elwood State bank, $20,000; Gary, the First National bank of Gary (receiver) $247,000 (5 per cent); the National Bank of America at Gary (receiver), $105,000 (5 per cent); Noblesville, Citizens State bank, $20,000; South Bend, the St. Joseph Loan and Trust Company, $42,500.

7. January 12, 1933 The Times Hammond, IN
Article from The Times, January 12, 1933

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JENNINGS IS POINTING THE WAY Report Shows He Collected Near $2,500,000 From Two Closed Banks David Jennings, receiver of Gary's suspended banks, pointing the for other bank of the Calumet district in point of rapid liquidation. According his report for 1932, he collected nearly $2,500,000 assessments of the The banks the First National and the National Bank of America. Total from the two for 1932 849,518. this sum, $762,039 paid general depositors two dividends declared by each bank. The remainder, $2,087,479. was paid to secured or preferred claimof the institutions. The totals cash on shown of 1933, First National, $36,614, and Bank of America, $12,684. REPAY $42,000 ON LOAN. the First wiped $42,000 its to the tion which vided the funds for payment of the bank's The Bank America paid its $85,300 for the purpose. the reports, Jennings pointed out will able cash of third dividends both banks' the federal agency has been paid off. which the government repaid, will depend upon his success in remaining assets, he pointed out. PROFIT OF $14,207. Liquidation each institution has Continued Page Five

8. January 12, 1933 The Times Hammond, IN
Article from The Times, January 12, 1933

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Report Shows He Collected Near $2,500,000 From Two Closed Banks David Jennings, receiver of Gary's suspended National banks, pointing way other bank receivers of the Calumet district in point of rapid liquidation. According his report for 1932, he collected nearly $2,500,000 from assets and stock assessments of the The banks the First National and the National Bank of America. Total collections from the two institutions for 1932 amounted $2.849,518. this sum, $762,039 was paid to general depositors two dividends declared each bank. The remainder, $2,087,479, paid secured or preferred claimants totals hand January First National, $36,614, and Bank of America, $12,684. REPAY $42,000 ON LOAN. The reports First $42,000 of its debt the tion which provided the funds for payment of the bank's second dividend. The Bank America has paid $9,000 its $85,300 R. loan, for accompanying the reports, Jennings pointed will able start cash toward payment third dividends soon both banks' indebtedness the federal agency has been paid off. The which the government loans are repaid, pend upon his success in liquidating remaining assets, he pointed out. PROFIT OF Liquidation each institution has Continued Page Five

9. September 15, 1933 The Indianapolis Star Indianapolis, IN
Article from The Indianapolis Star, September 15, 1933

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Latest News From Indiana U. S. JUDGE RULES ON TRUST FUNDS National Bank Receivers May Not Appropriate Such Accounts, Decision. to Indianapolis SOUTH BEND Ind. Sept. decision denying the of receivers of closed national banks to appropriate as part of bank assets funds held in trust or as an agent for another was handed Federal Judge Thomas Slick an in the suit of the United States Fidelity and Guaranty Company to recover from the National Bank of America of Gary suit was based on the retention the Gary bank of the amount sought after closed its doors Jan. 2. 1932 The amount in question according the original complaint. represented check paid to the Guaranty company by the Commercial Company of Gary delivered to the plaintiff and deposited with the Securities Trust Company of Indianapolis for Sent Check Day Bank Closed. The in deposited it with the Fletcher American National of Indianapolis for collection. The Fletcher bank sent the to the National Bank in Gary for on Jan. 1932 the same day the Gary its Attorneys for the bank argued that the Indiana banking statutes were in conflict with Federal laws governing the question of agency. Judge Slick, in his opinion, ruled that there was no and that banks are amenable to the laws of the state in which they operate except in such when the state law contravenes the Federal In that event. the judge ruled, the Federal

10. September 15, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, September 15, 1933

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RULING HITS RECEIVERS Agents Held Without Authority to Class Trust Funds as Assets. By United Press SOUTH BEND, Ind., Sept. 15.National bank receivers have no authority to class as assets funds held in trust or an agent agreement, Federal Judge Thomas W. Slick ruled Thursday. His ruling was in a case in which the United States Fidelity and Guaranty Company sought to recover a $2,196 check held by the National Bank of America, Gary. The check was to the bonding company from the Commercial Trust Company, Gary.

11. September 15, 1933 The Tipton Daily Tribune Tipton, IN
Article from The Tipton Daily Tribune, September 15, 1933

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BANK RULING. Judge Slick Makes Ruling Regarding Trust Funds. (ny United Press). Souht Bend. Sept. 15. National bank receivers have no authority to class as assets funds held In trust or an agent agreement, federal Judge Thomas W. Slick held late yesterday. His ruling came in the case in which the United States Fidelity and Guaranty Co. sought to recover $2,196 check held by the National Bank of America, Gary. The check was to the bonding company from the Commercial Trust Company, Gary.

12. September 15, 1933 Muncie Evening Press Muncie, IN
Article from Muncie Evening Press, September 15, 1933

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COURT RULES TRUST FUNDS NOT ASSETS SOUTH BEND. Ind., Sept. 15.(U.P)-National bank receivers have no authority to class as assets funds held in trust or an agent agreement, Federal Judge Thomas W. Slick held late yesterday. His ruling came in the case in which the United States Fidelity and Guaranty Co. sought to recover $2,196 check held by the National Bank of America, Gary. The check was to the bonding company from the Commercial Trust Company,

13. September 15, 1933 The Times Hammond, IN
Article from The Times, September 15, 1933

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GARY BANK National Bank Receivers May Not Appropriate Trust Fund Accounts SOUTH BEND, Ind., Sept. decision denying the authority of receivers of closed national banks to appropriate as part of bank's assets funds held in trust or as an agent for another handed person down by Federal Judge Thomas W. Slick in an opinion in the suit of the United States Fidelity and Guaranty company to recover from the National Bank of America of Gary. The the retention by the Gary bank the amount sought after closed its doors January 1932. amount according to the original represented check paid the Guaranty the Trust pany pany Gary. livered plaintiff deposited the Trust The bank turn dethe AmerNational for collection. The Fletcher bank sent the check the National Bank of America Gary collection January the day Gary institution closed its doors. Attorneys for the bank argued that the Indiana banking statutes in with federal governing the question of agency. Judge Slick in opinion, ruled that there was no conflict that the banks are amenable the laws of the state which they operate, except such instances when the Federal law. In the judge the federal

14. September 15, 1933 The Tipton Daily Tribune Tipton, IN
Article from The Tipton Daily Tribune, September 15, 1933

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BANK RULING. Judge Slick Makes Ruling Regarding Trust Funds. (By United Press). Souht Bend, Sept. 15. National bank receivers have no authority to class as assets funds held in trust or an agent agreement, federal Judge Thomas W. Slick held late yesterday. His ruling came in the case in which the United States Fidelity and Guaranty Co. sought to recover $2,196 check held by the National Bank of America, Gary. The check was to the bonding company from the Commercial Trust Company, Gary.

15. September 15, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, September 15, 1933

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RULING HITS RECEIVERS Agents Held Without Authority to Class Trust Funds as Assets. By United Press SOUTH BEND. Ind., Sept. 15.National bank receivers have no authority to class as assets funds held in trust or an agent agreement, Federal Judge Thomas W. Slick ruled Thursday. His ruling was in case in which the United States Fidelity and Guaranty Company sought to recover $2,196 check held by the National Bank of America, Gary. The check was to the bonding company from the Commercial Trust Company, Gary.