7095. Gloucester National Bank (Gloucester, MA)

View Charter #1162 on SPMC

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
national
Bank ID
1162
Charter Number
1162
Start Date
December 15, 1931
Location
Gloucester, Massachusetts (42.616, -70.662)

Metadata

Model
gpt-5-mini
Short Digest
ef14d79e92461cf2

Response Measures

Public signal of financial health, Full suspension, Books examined

Description

Articles (Dec 15–17, 1931) report heavy withdrawal demands on Gloucester National tied to the collapse/closing of the Federal National Bank of Boston group; directors voluntarily closed the Gloucester bank Dec 15, 1931 to protect depositors. Subsequent reports (Dec 16–17) describe examiners working to clear the bank and predictions of early reopening; later local reporting (Mar 1932) shows the bank organized/reopened by mid-March 1932. OCR errors corrected (e.g., dates and minor garbling). The run was triggered by distress among affiliated banks (Federal National Bank of Boston and affiliated group), not by an isolated false-telegram-type rumor, so classified as run caused by local_banks.

Events (5)
1. May 18, 1865 Chartered
Source
historical_nic
2. December 15, 1931 Run
Cause
Local Banks
Cause Details
Heavy withdrawal demands triggered by the closing/run on the affiliated Federal National Bank of Boston and its group of banks; depositor panic spread to Gloucester subsidiary.
Measures
Directors voluntarily closed the bank to protect depositors; arrangements with local banks to honor city/Christmas checks; examiners dispatched to examine affairs.
Newspaper Excerpt
voluntarily closed its doors today after heavy demands for withdrawals had been made by depositors
Source
newspapers
3. December 15, 1931 Suspension
Cause
Local Banks
Cause Details
Bank was voluntarily closed by its directors in response to heavy withdrawals and association with the Federal National Bank closings; closure intended to allow examiners to review affairs and protect depositors.
Newspaper Excerpt
The directors of this bank, therefore, voluntarily ... closed the bank ... we plan to reopen the bank and do business usual
Source
newspapers
4. March 1, 1932* Reopening
Newspaper Excerpt
Former local man director of reopened bank ... has been named director the Gloucester National Bank business on Dec. 15, 1931, and has been organized for opening probably this week (Mar 1932).
Source
newspapers
5. May 17, 1932 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (13)
1. December 15, 1931 St. Louis Post-Dispatch St. Louis, MO
Article from St. Louis Post-Dispatch, December 15, 1931

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Article Text

NATIONAL BOSTON AND AFFILIATES Aggregate Deposits of ConAffected cerns 000, According to Their Latest Statements. By the Associated Press.. BOSTON, Dec. Massachusetts banking houses with aggregate deposits of cording to their latest statements, were closed today. The list includes four National banks and five State banks. The central figure the Federal National Bank of which has five city branches and with which all the the other banks closed were affiliated. The Federal National Bank, whose directors voted to ask thhe Comptroller of Currency to take charge after runs at the bank and its branches yesterday, had deposits, Sept. 29, of $28,235,238. The other banks and their latest available statements of deposits follow: Middlesex National Bank, Lowell, State National Bank, Lynn, $2,013,565; Gloucester National Bank, Bancroft Trust Co., Worcester, $5,876,474; Lawrence Trust Co., Lawrence, Inman Trust Co., Cambridge, $3,Brockton Trust Co., Brockton, Salem Trust Co., Salem. $2,115,530. Gov. Ely, in statement, said that with proper measures, plan for the speedy reopening of the institutions could be arranged and further said had instructed Bank Commissioner Arthur Guy to proceed with that end in view. Three savings banks in East Boston and South Boston experienced small runs today. They are independent of the group affected by today's closings and officers sought to assure depositors that their funds were President Daniel Mulloney of the Federal National Bank expressed the opinion that with careful handling of resources. depositors in his bank would receive 100 cents the dollar. The Federal National member of the Boston Clearing House. It held State deposits of $729,889. National Bank at Marion, O., Closed: Ex-Cashier Missing. By the Associated Dec. B. Hane, president of the Marion National Bank, said apparent irregularities in the accounts of his son, H. W. Hane, former cashier, caused the closing of the bank today. The elder Hane issued statement that the directors had placed the bank in the hands of the Federal Comptroller of Currency and that national bank examiners were checking the records. nature and the amount of the apparent defalcations have not been determined.' the stateHane, cashier, in whose accounts the confusion in records has been found, resigned an officer of the bank last week. He left the city at that time and his not now known. The bank's deposits are listed

2. December 15, 1931 The Evening Sun Baltimore, MD
Article from The Evening Sun, December 15, 1931

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Article Text

NEW YORK BOND MARKET [By the Associated Press] Boston. Dec. 15 (AP)-Nine Massachusetts banking institutions, with aggregate deposits, according to the latest statements, of $58,700,000. were closed today. The list included four national banks and five State banks. The central figure in the closings was the Federal vational Bank of Boston. which has five city branches and with which all the other institutions were affiliated. The Federal National Bank, whose directors voted to ask the Comptroller of Currency to take charge after runs at the bank and its branches resterday, had deposits on September 29 of $28,235,238. The other banks and their latest available statements of deposit were: The Middlesex National Bank, Lowell, $4,000,000; the State National Bank, Lynn. $2,013,565; the Gloucester National Bank: the Bancroft Trust Company, Worcester, $5,876,474 the Lawrence Trust Company. Lawrence, $9.555,926: the Inman Trust Company, Cambridge, $3,808,412; the Brockton Trust Company, Brockton, $1,508,753; the Salem Trust Company, Salem, $2,115,530. Sales Gas Runs On Three Banks Three savings banks in East Boston and South Boston were experiencing small runs today. They were independent of the group affected in today's closings and officers sought to reassure depositors that their funds were safe. President Daniel C. Mulloney of the Federal National Bank expressed the opinion that with careful handling of resources depositors in his bank would receive 100 cents on the dollar. Clearing House Head Confident President Alfred L. Ripley, of the Boston Clearing House Association, announced that the association wished to assure the public that the banking situation in Boston was "in their best (Continued from Page 32) judgment" essentially sound and safe Sales in High Low Close Sales and that there was no just reason for apprehension or alarm on the part of depositors. The Federal National Bank had not been member of the Clearing House Association, he said, since May, 1930. The Boston Fish Exchange, which serves as clearing house between fishing boat captains and dealers, was closed today as result of the closing of the fish pier branch of the Federal National Bank. stp Gloucester National Shuts Gloucester National Bank. founded in 1796 and one of the oldest financial institutions in the United States. voluntarily closed its doors today after heavy demands for withdrawals had been made by depositors is associated with the Federal National Bank of Boston. Ohio Banker Blames Son For Closing Marion. Ohio, Dec. 15 /P)-Henry B. Hane, president of the Marion Na. tional Bank, said that apparent irregularities in the accounts of his son, H. W. Hane. former cashier, caused the closing of the bank today The elder Hane issued statement announcing that the directors had placed the bank in the hands of the Federal Comptroller of Currency and that national bank examiners were checking the records. "The nature and the amount of the apparent defalcations have not yet been determined, the statement said, Hane, cashier, in whose accounts the confusion in records has been found, resigned as an officer of the bank last week. He left the city at that time and his whereabouts are not now known. He was under surety bond. Until the examiners make a complete check of the records, it not possible to announce any details of the possible shortage Investment Trusts NEW YORK DE Insurance Companies New York Bank Stocks

3. December 16, 1931 The Cincinnati Enquirer Cincinnati, OH
Article from The Cincinnati Enquirer, December 16, 1931

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Article Text

NINE BANKS CLOSED. Institutions Affected By Heavy Run At Boston. Boston. December 15 group of nine Massachusetts banks, having aggregate deposits of approximately $58,700,000. and of which the Federal National Bank of Boston was the central figure, was closed today The Federal National Bank, with which the other eight were affillated. had deposits of $28,235,233. according to its most recent statement condition Three other national banks were in the group that closed today They include the Middlesex National Bank of Lowell with deposits of approximately $4,000,000 the State National Bank of Lynn, with about $2,013,565 in deposits and the Gloucester National Bank Gloucester. which has deposits of approximately $1,600,000. Five state banks trust companies. had their affairs taken over by the Bank Commissioner, who announced their deposits to be approximately as follows the Bancroft Trust Company, Worcester $6,000,000; the Lawrence Trust Company. Lawrence, $8,860,000; the Brockton Trust Company. Brockton, $1,500,000; the Inman Trust Company, Cambridge, $3,500,000 and the Salem Trust Company, Salem. $2,200,000. The Bank Commissioner estimated that 75,000 depositors were affected by the closing of the state banks Joseph B. Ely. of Massachusetts expressed the belief that If prompt action were taken by the Federal authorities. making use of the National Credit Corporation, with the aid of the state authorities, speedy plan reorganization could be accomplished for the reopening of all the institutions. He said he knew of no reason why any other banks in the state should be affected Bank Commissioner Arthur Guy, pointing out that the trust companies were "affiliated with and controlled by the Federal National Bank, no other remained but to take possession of the trust companies to conserve the assets and for the protection of depositors.' The closing of the Federal National Bank was the consequence of run that developed on the hank and its five branches in Boston yesterday, after which the Directors voted to have the Comptroller of Currency take charge of the bank's affairs.

4. December 16, 1931 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, December 16, 1931

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Boston, Dec 16.-(UP)-A receiver appointed by the comptroller of the currency to-day took charge of the affairs of the Federal National Bank of Boston, the closing of which has tied up deposits totaling $57,740,238. Herbert Pearson, the receiver, arrived from Washington last night at the end of a day which witnessed the closing of eight affiliated banks in central and eastern Massachusetts, To-day he was to begin an appraisal of the Federal National's assets with a view to liquidatoin. There were several reassuring reports, including the statement of President Daniel C. Mulloney that Federal National depositors would be paid 100 cents on the dollar, and the prediction of Gov Joseph B. Ely of Massachusetts that with "proper action" it should be possible to reopen all the closed institutions. The closed banks and their deposits follow:Federal Natoinal $28,235,238. Lawrence Trust Co, $8,000,000. Bancroft Trust Co of Worcester, $6,000,000. Middlesex National Bank of Lowell, $4,505,000. Inman Trust Co of Cambridge, $3,500,000. Lynn State National, $2,200,000. Salem Trust Co, $2,200,000. Gloucester National Bank, $1,600,000. Brockton Trust Co, $1,500,000. It was estimated that more than 75,000 depositors were affected by the bank closings. A suggestion by Governor Ely that the newly-organized National

5. December 16, 1931 Daily News New York, NY
Article from Daily News, December 16, 1931

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9 BAY STATE BANKS CLOSE; HAD $58,700,000 Boston, Dec. 15 (AP).-Nine Massachusetts banking institutions, with aggregate deposits of $58,700,000, were closed today in the midst of the Christmas shopping season. The list included four National banks and five State banks. The central figure in the closings was the Federal National Bank of Boston, which has five city branches and with which all the other institutions were affiliated. The Federal National Bank, whose directors asked the Controller of Currency to take charge after runs at the bank and its branches yesterday, had deposits Sept. 29 of $28,235,238. The other banks and their latest available statements of deposit were: Middlesex National Bank, Lowell, $4,000,000; State National Bank, Lynn, $2,013,565; Gloucester National Bank, $1,600,000; Bancroft Trust Company, Worcester, $5,876,474; Lawrence Trust Company, Lawrence, $9,555,926; Inman Trust Company, Cambridge, $3,808,412; Brockton Trust Company, Brockton, $1,508,753; Salem Trust Company, Salem, $2,115,530. Three savings banks in East Boston and South Boston were experiencing small runs today.

6. December 16, 1931 Daily News New York, NY
Article from Daily News, December 16, 1931

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9 BAY STATE BANKS FAIL WITH $58,700,000 DEPOSITS sachusetts banking institutions, with aggregate deposits of $58,700,00, were closed today in the midst of the Christmas shopping season. The list included four National banks and five State banks. The central figure in the closings was the Federal National Bank of Boston, which has five city branches and with which all the other institutions were affiliated. The Federal National Bank, whose directors asked the Controller of Currency to take charge after runs at the bank and its branches yesterday, had deposits Sept. 29 of $28,235,238. Move for Reopenings. The other banks and their latest available statements of deposit were: Middlesex National Bank, Lowell, $4,000,000; State National Bank, Lynn, $2,013,565; Gloucester National Bank, $1,600,000; Bancroft Trust Company, Worcester, $5,876,474; Lawrence Trust Company, Lawrence, $9,555,926; Inman Trust Company, Cambridge, $3,808,412; Brockton Trust Company, Brockton, $1,508,753; Salem Trust Company, Salem, $2,115,530. Gov. Joseph B. Ely, in a statement from his home in Westfield, said that with proper measures a program for the speedy re-opening of the institutions could be worked out and that he had instructed Bank Commissioner Arthur Guy to proceed with that end in view. Run on Savings Banks. Three savings banks in East Boston and South Boston were experiencing small runs today. President Daniel C. Mulloney of the Federal National Bank expressed the opinion that, with careful handling of resources, depositors in his bank would receive 100 cents on the dollar. The city of Boston had $900,000 on deposit in the Federal National Bank while the State had $773,889. closed today. The bank commissioner's office estimated there were 75,000 depositors in the five State banks affected. Marion, O., Dec. 15 (/P).-The Marion National National Bank with resources of $1,911,422 failed to open today.

7. December 16, 1931 Daily News New York, NY
Article from Daily News, December 16, 1931

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9 BAY STATE BANKS FAIL WITH $58,700,000 DEPOSITS Boston, Dec. 15 (A).-Nine Massachusetts banking Institutions, with aggregate deposits of $58,700,000, were closed today in the midst of the Christmas shopping season. The list included four National banks and five State banks. The central figure in the closings was the Federal National Bank of Boston, which has five city branches and with which all the other institutions were affiliated. The Federal National Bank, whose directors asked the Controller of Currency to take charge after runs at the bank and its branches yesterday, had deposits Sept. 29 of $28,235,238. Move for Reopenings. The other banks and their latest available statements of deposit were: Middlesex National Bank, Lowell, $4,000,000; State National Bank, Lynn, $2,013,565; Gloucester National Bank, $1,600,000; Bancroft Trust Company, Worcester, $5,876,474; Lawrence Trust Company, Lawrence, $9,555,926; Inman Trust Company, Cambridge, $3,808,412; Brockton Trust Company, Brockton, $1,508,753; Salem Trust Company, Salem, $2,115,530. Gov. Joseph B. Ely, in a statement from his home in Westfield, said that with proper measures a program for the speedy re-opening of the institutions could be worked out and that he had instructed Bank Commissioner Arthur Guy to proceed with that end in view. Run on Savings Banks, Three savings banks in East Boston and South Boston were experiencing small runs today. President Daniel C. Mulloney of the Federal National Bank expressed the opinion that, with careful handling of resources, depositors in his bank would receive 100 cents on the dollar. The city of Boston had $900,000 on deposit in the Federal National Bank while the State had $773,889. besides $287,000 in other banks closed today. The bank commissioner's office estimated there were 75,000 depositors in the five State banks affected.

8. December 16, 1931 Daily News New York, NY
Article from Daily News, December 16, 1931

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9 BAY STATE BANKS CLOSE; HAD $58,700,000 Boston, Dec. 15 (P).-Nine Massachusetts banking Institutions, with aggregate deposits of $58,700,000, were closed today in the midst of the Christmas shopping season. The list included four National banks and five State banks. The central figure in the closings was the Federal National Bank of Boston, which has five city branches and with which all the other institutions were affiliated. The Federal National Bank, whose directors asked the Controller of Currency to take charge after runs at the bank and its branches yesterday, had deposits Sept. 29 of $28,235,238. The other banks and their latest available statements of deposit were: Middlesex National Bank, Lowell, $4,000,000; State National Bank, Lynn, $2,013,565; Gloucester National Bank, $1,600,000; Bancroft Trust Company, Worcester, $5,876,474; Lawrence Trust Company, Lawrence, $9,555,926; Inman Trust Company, Cambridge, $3,808,412; Brockton Trust Company, Brockton, $1,508,753; Salem Trust Company, Salem, $2,115,530. Three savings banks in East Boston and South Boston were experiencing small runs today.

9. December 16, 1931 The Boston Daily Globe Boston, MA
Article from The Boston Daily Globe, December 16, 1931

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STATE'S FUNDS IN CLOSED BANKS TOTAL $1,060,889 The State of Massachusetts has slightly more than $1,000,000 tied up in six of the banks that closed their doors given out yesterday by State Treas Charles Hurley Treas Hurley said that the State had no funds in the Brockton Trust pany, the Lawrenche Trust Company the Trust closed banks, all affiliated with the Federal National Bank of Boston, in which the State has funds, and the amount in each follows: Bancroft Trust Company Worcester. $45,000 Inman Trust Company, $72,000; National Bank, Low $76,000 State National Bank, Lynn, Federal National Bank, $773,889 Gloucester National in the closed banks totaled $1,060,889.

10. December 16, 1931 The Boston Daily Globe Boston, MA
Article from The Boston Daily Globe, December 16, 1931

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Federal Bank and therefore sustain In fact, Gloucester National Bank has deposit with the Federal National Bank only $2100. On account of this rumor demands for by this the bank cannot safely honor for few at least, until has opportunity to liquidate its "The directors of this bank, therefore, voluntarily to the bank and the National bank make of this bank and make public statement of its conthis we plan to reopen the bank and do business usual There is an impression that the Gloucester subsidiary of the Federal Nothing the fact, the bank offisay Mr and States Attorney Fred H. Tarr that the Boston bank the local and that the only interest that the comes from of of in open The Gloucester, City Treas had 000 on deposit the bank Every financial in the city Mr Reed gave him assurances that be cashed on that the city would suffer In fact these institutions of the but Mr of the says there need it as the institution is bank capitalized for $100,000 and undivided profits and deposits of specialized in the Colonial foreign by which interests it in the fisheries as that has the Gloucester National as follows: president: John rence Trust caused much the minds of the depositors that the directors deemed it advisable the Banks to take charge of this bank in order to protect its depositors and conits assets. The recent statement, dated Oct showed the bank to have deposits totaling Last Tuesday Christmas members and said today that many of these checks had not Among the the City of which has there, according to City Treasurer William A. Kelleher Trust Company was established in Last May the stockholders with the Federal Bank of Boston. ing that an indictment him with the quashed The against Reed him with conspiracy to loan funds the bank on inadequate His motion to quash is based on two cause the not any specific offense contrary to the second, because the vague, indefinite, and does set ly, and formally, quired by When the indictments several defendants period in which file such pleas, and Judge blanket covering all defendants allowing of the period.

11. December 16, 1931 The Miami Herald Miami, FL
Article from The Miami Herald, December 16, 1931

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IN MASSACHUSETTS Four National and Five State Institutions Fail To Open Doors [BY THE ASSOCIATED PRESS.] BOSTON, Dec. 15.-Nine Massachusetts banking institutions, with aggregate deposits, according to the latest statements, closed The list included four national banks and five state banks. The central figure the closings the Federal National Bank of Boston, which has five city branches with which the other institutions were affilThe Federal National Bank, whose rectors voted to the comptroller of currency take charge after runs at the bank and its branches had deposits. on September 29, of $28,The other banks and their latest available statements of deposit were: The Middlesex National Bank, Lowell, $4,000,000; State National Bank, Lynn, $2,013,565 Gloucester National Bank, Gloucester. $6,600,000; the Bancroft Trust Company, WorcesLawrence Trust Company, Lawrence, $9,555,926; the Inman Company, Cambridge, the Brockton Trust Company, Brockton, $1,508,753 the Salem Trust Company, Salem, 115,530 Three savings banks in East Boston and experiencing small independent of the affected in today's closings and sought to reassure depositors that their funds were PROJECT ASSURED WASHINGTON, Dec. (/P)-An allotment of $22,750 rivers and harbors surveys in vicinity Jacksonville, made today by the war

12. December 17, 1931 The Boston Daily Globe Boston, MA
Article from The Boston Daily Globe, December 17, 1931

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PREDICTS EARLY REOPENING OF BANK Head of Gloucester National So Informs Directors Special Dispatch to the Globe GLOUCESTER, Dec 6-Following a meeting of the board of directors this evening, Pres Thomas J. Carroll of the Gloucester National Bank expressed confidence that the bank will reopen within few Mr Carroll said that National Bank Examiner W. P. McCall had explained to the meeting that, because of the demand for examiners, he would have to conduct the examination of the Gloucester bank's affairs without assistance. Mr McCall said that probably 10 days required for him complete the His then go the Comptroller of the Currency at The reopening of the bank, Pres Carroll said is, in his opinion only matter the time that will be required for the bank examiner to complete his work. In addition to the fact that the city of Gloucester amounting about $46,000 will be honored by all checking institutions in this city came the news shortly before noon that the Cape Ann National and the Gloucester Safe Deposit Companies will henor all Christmas checks of the Gloucester National, amounting to $100,000. These had been mailed few days ago. The of two Gloucester banks to cash the checks extends only to the city's account and Christmas checks and to no other accounts. This, of course, is big help to depositors and local retail dealers. The yesterday that the city of Gloucester checks would be honored is due to the prompt action an Associate Justice the District Court, Lincoln who also chairman the Board Aldermen and one of the trustees the Cape Ann Savings Bank, solidly entrenched He immediately came into the and made arrangements the other commercial banks that all checks of the city should be paid on presentation. CLOSED BANK'S DEPOSITORS WARNED OF LOAN "SHARKS" warning to the of the Highland Trust Company and the members of the Christmas Savings Club of the Somerville Institution for Savings to beware of getting into the hands of small-loan 'sharks' was issued by Mayor John J. Murphy of Mayor Murphy said there is determined effort being made by money lenders to acquire hold on the money of depositors by offering small loans to them and requiring them to pledge their equity in the as security. Mayor Murphy said that plans are being considered for the benefit of depositors and urges them to retain their

13. March 14, 1932 The Berkshire Eagle Pittsfield, MA
Article from The Berkshire Eagle, March 14, 1932

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FORMER LOCAL MAN DIRECTOR OF REOPENED BANK O'Connell, the late John O'Connell Elizabeth Street, this city has been named director the Gloucester National Bank business on Dec. 15, 1931, and has been ganized for opening probably this week Mr. manager of the LobBay The bank the oldest the country been established Gloucester.