Security Trust & Savings Company (Shelbyville, IN)

Episode Information

Episode UID
71020571586
Episode Type
Suspension → Reopening
Bank Type
trust
Bank ID
7102057 routing
Routing Number
71-0205
Start Date
February 10, 1932
Location
Shelbyville, Indiana (39.521, -85.777)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
baa1660bdd561c69

Response Measures

None

Description

Trust company closed voluntarily to protect depositors amid alleged malicious rumors; authorities investigating source of rumors.

Events (1)
1. February 10, 1932 Suspension
Cause
Rumor Or Misinformation
Cause Details
Malicious/false reports and circulating rumors caused depositor panic leading the trust companies to close voluntarily.
Newspaper Excerpt
The Security Trust & Savings Company and the Shelby Trust Company at Shelbyville, closed their doors voluntarily this morning for protection of their depositors.
Source
newspapers

Newspaper Articles (3)
1. February 10, 1932 The Edinburg Daily Courier Edinburg, IN

Article Text

RUN ON TWO BANKS AT SHELBYVILLE—TWO TRUST COMPANIES CLOSE Trust Companies Close Voluntarily to Protect Depositors.—Depositors Make Run On Shelby National Bank and Farmers National Bank.—Police Keep Order. The Security Trust & Savings Company and the Shelby Trust Company at Shelbyville, closed their doors voluntarily this morning for protection of their depositors. Shortly after the two Trust Companies closed their doors, the depositors made a run on the Shelby National bank. Throngs of depositors swarmed around the bank entrance in a frantic effort to withdraw their money, and police were called to keep order. The depositors were forced to line up and await their turn. It is understood that the depositors demanding their money were paid, and the run which lasted for over an hour before being quieted, will not permanently injure the institutions. As an aftermath of the run on the Shelby National Bank, a small run was made on the Farmers National Bank with little damage being done. It is thought that the two banks will continue to operate, however, no definite plans are known at this time, as the extent of the damage done by the run can not be determined. It is thought that the action taken by the two Trust Companies and the runs on the two banks was partially caused by the uncertain feeling existing after the closing of the First National Bank of Shelbyville, a few days ago. As soon as the news regarding the closing of the two Trust Companies became known, depositors in the two banks were near the panic stage and the run resulted. If the two banks survive the damage done by today's runs, they will be the only banking institutions in Shelbyville. There were three banks and two Trust Companies.

2. February 11, 1932 Rushville Republican Rushville, IN

Article Text

Spreading False Reports of Banks Is Punishable by Prison Term. Calling attention to the fact that it is a prison offense to circulate false reports that might cause a run on a bank, the Shelby county grand jury went into session this morning, following the closing of two banks in Shelbyville Wednesday. Malicious reports concerning the two banks were cited as being responsible for the closing of the institutions. The two were the Security Trust and Savings Company and the Shelbyville Trust Company. Another bank closed last week in that city, and the remaining banks announced a supply of money on hands to meet any demand of the depositors. The call for the grand jury session was issued by Judge Emmert, on request of Emerson J. Brunner, prosecuting attorney, who gave out the following statement, according to the Shelbyville Democrat: "Every one of the local banks and trust companies is solvent and on a sound financial basis. These institutions are well managed by competent business men of sound judgment. But the floating of idle rumors against some of them has made it necessary for one Shelbyville bank and two trust companies to protect their depositors by closing their doors temporarily until the people can regain their sense and recover from the hysteria of recent weeks. "In all of these cases, the closing of banks has been the direct result of false rumors passed around from one person to another. Too many of our citizens are thoughtless about such matters and repeat everything they hear. If every man, woman and child in Shelby county will keep his or her head, and quit passing these rumors on to some one else, no other banks will close and the crisis will be at an end. "Judge Emmert, at my request, has called the Grand Jury to meet Thursday morning, February 11. The false statements that have been made and repeated will be sifted to the bottom. We know the rumors are

3. February 11, 1932 Rushville Republican Rushville, IN

Article Text

Prosecutor of Shelby County Working to Uncover the Source of Rumors. RUNS RESULTED IN TWO BANKS CLOSING Spreading False Reports of Banks Is Punishable by Prison Term. Calling attention to the fact that it is a prison offense to circulate false reports that might cause a run on a bank, the Shelby county grand jury went into session this morning, following the closing of two banks in Shelbyville Wednesday. Malicious reports concerning the two banks were cited as being responsible for the closing of the institutions. The two were the Security Trust and Savings Company and the Shelbyville Trust Company. Another bank closed last week in that city, and the remaining banks announced a supply of money on hands to meet any demand of the depositors. The call for the grand jury session was issued by Judge Emmert, on request of Emerson J. Brunner, prosecuting attorney, who gave out the following statement, according to the Shelbyville Democrat: "Every one of the local banks and trust companies is solvent and on a sound financial basis. These institutions are well managed by competent business men of sound judgment. But the floating of idle rumors against some of them has made it necessary for one Shelbyville bank and two trust companies to protect their depositors by closing their doors temporarily until the people can regain their sense and recover from the hysteria of recent weeks. "In all of these cases, the closing of banks has been the direct result of false rumors passed around from one person to another. Too many of our citizens are thoughtless about such matters and repeat everything they hear. If every man, woman and child in Shelby county will keep his or her head, and quit passing these rumors on to some one else, no other banks will close and the crisis will be at an end. "Judge Emmert, at my request, has called the Grand Jury to meet Thursday morning, February 11. The false statements that have been made and repeated will be sifted to the bottom. We know the rumors are