First National Bank (Elmore, OH)

Article Text

FIRST NATIONAL BANK IN RECEIVER'S HANDS

On Thursday of last week E. P. Carsten received a telegram from the U. S. Government stating that he had been appointed receiver of The First National Bank of Elmore. He at once took charge, relieving Ernst H Meyer, cashier formany years and finally conservator since the bank holiday in March. The bank was closed so far as new business was concerned but the segregated accounts formed since March 1 are free and can be drawn upon in the usual way What will be the final disposition of the bank is not yet fully determined or officially made known; but it is generally believed it will be liquidated. Ralph Slates, assistant cashier, is assisting Mr. Carsten.

Article Text

BANK REFUSES U. S. AID.

ors Decline RFC Funds to Liquidate the Institution.

From the Wall Street Journal. Intensive research has uncovered a group of bank creditors who don't want their deposits repaid at once, who don't want a loan from the government and who three times have refused Washington's monetary assistance.

These rare, if not unique, individuals have been found in Elmore, O. Their bank, the First National of Elmore, was placed in receivership in September, 1933, and the government has been trying ever since to lend the bank's receiver some money.

After the third refusal, banking officials don't know what to do. They can compel the bank to accept a loan, but bank creditors who don't want their money are something new under the new deal's sun. So for the time being, final determination as to whether the government will insist on a loan has been held in abeyance.

When the bank went into receivership, the usual blanks were forwarded to the receiver for the purpose of preparing an RFC loan application. No application was forthcoming. Then, in June, 1934, the chairman of the depositors' committee came to Washington to explain that the depositors did not want a loan, that, in fact, they did not even want to use the money tied up in the bank and were quite satisfied to leave it there undisturbed.

When the depositors' representative was told that the administration wanted to put as much money as possible in the hands of depositors through RFC loans, he wrote to Washington saying that "the depositors committee on behalf of the depositors earnestly recommends that the receiver should not borrow money at this time with which to pay dividends."

In August, 1934, a dividend of 20 per cent was