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Financial Situation Is Climax of Crisis in Rumors and Series of Untimely Incidents Affecting Banking Structure. PAYMENTS ON SAVINGS ACCOUNTS STOPPED Appeal to Public to Be Calm in Emergency; Closed Bank Regarded as Solvent and Capable of Covering All Money on Deposit. Unfortunate circumstances developing during the past week in banking, resulted this morning in the closing of the Central Trust Savings bank of Rock Island by order of its board of directors, and the imposition during the morning of the restriction requiring 60-day notice for withdrawal of savings accounts by the Rock Island Savings bank, the State bank of Rock Island and the Manufacturers Trust & Savings bank. At o'clock this afternoon officers of the ManufacturTrust bank announced its board would meet later in the afternoon to discuss its future policy and to determine whether or not it is advisable to attempt to continue the operation of its commercial department under present circumstances. Immediately upon the opening of the banks this morning, runs developed, and within minutes after the opening, the officials of the Central Trust Savings bank ordered business suspended. It was stated by officers of the Central Trust bank that action in closing the bank was taken for protection of depositors, and that the bank will liquidate in full its obligations to depositors. This statement was supported by the view of representatives of the office of Oscar Nelson, state auditor of public accounts, who immediately assumed charge of the bank for an audit and examination. The other three Rock Island banks enforced the 60-day rule during the height of the run this morning. Merchants to Honor Checks. Following the orders restricting this mornof representative Rock Island merchants ing, a group made public announcement of their willingness to accept checks against savings accounts in Rock Island banks in for merchandise purchases. These merchants payment unqualified terms declared their confidence in the security and stability of Rock Island's financial houses, and urged the public not to become disturbed by the developments of the day. In Moline and East Moline the banking situation today ported be comparatively calm. Officials Peoples Savings Bank Trust the Moline company, State Trust Savings bank and the Bank of East Moline anState nounced that they had imposed restrictions withdrawal Davenport the Union posits. bank continued meet Savings withdrawals, while steps for the the American Savings Bank Trust company, which yesterday adopted 60-day notice rule on savings and commercial deposits, were under way with of Bettenthe naming dorf chairman of the board. Incidents Disturb Public. The climax of the disturbance the banking situation in Rock land today came after succession developments that unsettled the public mind many instances. Last the Savings bank Moline hill district voluntarily closed and placed its affairs control the audioffice. The suicide two days later of Walter Hanson, assistcashier the bank revelation that the audit disclosed of about in On the heels of this came the closing the State bank East Moline. imposition 60-day notice requirements by the bank about deposits, was one the final the background and depositors of Rock Island banks. the rectors the Rock Island banks had all to large cash supplies meet the situation day. brunt the run the beginning of the Central Trust and bank, and its had placed for its the hands of the board's tive Bankers the and city the imposthe 60-day notice ings been agreement reached for concerted action. Close After 10 Minutes. Five minutes before this morning there were half dozpeople the sidewalks near the entrances the Central Trust bank. o'clock there were 150 and 200 depositors the lobby of the bank. with withdrawal of funds, chiefly savings accounts. The committee of the directors five minutes after minutes later had ordered business suspended. Patrolmen Charles Miller and Thomas the Rock police department were hand the bank, and the quest of the bank officials took over the task of clearing ately banking house all except the doors employes. were closed. Groups of people gathered the sidewalk. No turbance developed, and many waiting the bank windows withdraw money declared loudly that they approved of the bank, and were not worried their deposit. Checks money on torn up. Crowd Attracted. Instantly word flashed over thousands of telephone lines through city, and within half an hour the streets near the Central Trust were jammed with people and automobiles, and run large was other banks, the Rock Island Savings bank which occupies quarters directly across the street from the closed Central Trust. 150 and 200 tomers and banking room of the Rock Island bank. Many departed withdrawing funds after discussing the situation with officers the bank. At Manufacturers Trust bank there unusual crowd any time, but there steady of savings, and the directors less than an hour determined that situation quired imposition of the restriction withdrawals savings. Typewritten notices
