6126. Peoples Trust Company (Muncie, IN)

Bank Information

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

Metadata

Model
gpt-5-mini
Short Digest
193effd9

Response Measures

Capital injected

Description

Heavy withdrawals and renewed rumors precipitated action. The bank entered voluntary liquidation and assets/liabilities were taken over by other local banks; payment in full to depositors guaranteed. Publication dates: articles dated 1930-04-18; assets taken over Thursday night (April 17, 1930).

Events (3)
1. April 17, 1930 Run
Cause
Rumor Or Misinformation
Cause Details
Renewed local rumors (after forced closing of Lincoln Trust & past defalcations of former VP George Haymond) led to heavy withdrawals that threatened to become a run.
Measures
City's remaining three banks took over assets and liabilities; bank remained open a few days to close business but took no new deposits; state banking commission approved liquidation and payment in full to depositors guaranteed.
Newspaper Excerpt
Assets and liabilities of the bank were taken over Thursday night ... following heavy withdrawals from the Peoples bank. ... The forced closing of the Lincoln Trust and Savings Company caused a renewal of the rumors resulting in heavy withdrawals that threatened to become a run on the bank.
Source
newspapers
2. April 18, 1930 Suspension
Cause
Voluntary Liquidation
Cause Details
Bank entered voluntary liquidation with assets/liabilities taken over by other local banks; state banking commission approved plan.
Newspaper Excerpt
Voluntary liquidation of the People's Trust Company, Muncie's fourth largest bank, is under way here today. ... Assets and liabilities of the bank were taken over Thursday night by the Delaware County National bank, the Merchants National and the Merchants Trust Company ... The bank will remain open for a few days, to close up its business, but no deposits will be taken. The state banking commission gave full approval to the liquidation plan.
Source
newspapers
3. April 21, 1930 Other
Newspaper Excerpt
Prosecutor Davis his intention filing charges against Muncie residents spreading false rumors connection with closing of the People's Trust Company ... Mayor opposed action ... considered such violation rights free speech free press.
Source
newspapers

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

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Article Text

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

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

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Article Text

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

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

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Article Text

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