Malvern Trust & Savings Bank (Malvern, IA)

Episode Information

Episode UID
72057871596
Episode Type
Run → Suspension → Reopening
Bank Type
state
Bank ID
7205787 routing
Routing Number
72-0578
Start Date
December 24, 1932
Location
Malvern, Iowa (41.003, -95.585)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
d39be86e0225f6c5

Response Measures

None

Description

The bank experienced heavy withdrawals (run) and used a mayor-proclaimed holiday to suspend operations while securing deposit waivers to reopen.

Events (3)
1. December 24, 1932 Run
Cause
Macro News
Cause Details
Shrinkage of deposits following Christmas buying and general financial crisis in the community.
Measures
The bank and a citizens' committee developed a deposit waiver plan to halt withdrawals.
Newspaper Excerpt
shrinkage of deposits had reached a critical stage... Faced with the probability of forced closing within short time, should withdrawals continue
Source
newspapers
2. December 26, 1932 Suspension
Cause
Government Action
Cause Details
A 10-day local holiday was declared by the mayor to facilitate the bank's deposit waiver plan and prevent forced closing.
Newspaper Excerpt
Mayor D. E. Whitheld, Mayor of the Town of Maivern, towa, hereby declare a legal holiday in the town of Maivern the next ten days beginning Dec. 26, 1932
Source
newspapers
3. January 1, 1933* Reopening
Newspaper Excerpt
This action indicates that the bank can reopen under the new plan within a very few days, very probably before the end of the ten-day holiday proclaimed by Mayor D. E. Whitfield. ... The bank will be able to reopen much sooner than at first expected, possibly by the end of the week. Q: Will the banks reopen if the are signed? A: Yes. They open for business as usual as soon as the waivers are signed and the holiday is over. It is expected that this will be within a few days at the most. (Note: The article is dated Dec 29, 1932, and expects reopening within days).
Source
newspapers

Newspaper Articles (3)
1. December 29, 1932 The Malvern Leader Malvern, IA
Article from The Malvern Leader, December 29, 1932

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Article Text

New Bank Plan Provides Dramatic End for Christmas Community Shows Wonderful Spirit in Financial Crisis Monday Late Sunday evening, while most Maivernians folled by firesides bemoaning their over-eating of Christmas dinners, directors of the Maivern Trust and Savings bank and few citizens of the community sat around table discussing and planning methods of handling financial crisis which had come upon the town. The Maivern Trust and Savings bank, long considered one of the strongest and most conservative financial institutions of this section of the state, critically examined its books after the withdrawals subsequent Christmas buying ended Saturday evening. The books showed cash on hand to be safely above the required legal reserve. But the margin was decidedly narrow and shrinkage of deposits had reached a critical stage. Deposit Walver Plan Faced with the probability of forced closing within short time, should withdrawals continue, the bankers and citizens developed and arranged deposit waiver plan which, If approved by all depositors, will enable the bank to stay open and serve the community and will do away entirely with the possibility of forced closing, enable depositors to get their money, and cent of It, much more quickly than would be possible If the bank closed. The deposit waiver plan which they adopted has been tried by more than 160 banks throughout the state and almost in every instance has been highly successful advantageous both to depos- what its to assistant cashier National bank, dethe plan banks there and news, depositattending the meeting were Realising, the explained, that would more satisfaccontinued possibility and realizing hardship banking difficult times the depositors rose patriotically to occasion and roted almost to assist with the Confidence in Bankers the and the meeting strong vote of officers and bank and for the community. was named waiver depositors bank and Bruce KUand Mansfield to work and committees started the obtaining the needed the banking with activity morning the quite and they

2. December 29, 1932 The Malvern Leader Malvern, IA
Article from The Malvern Leader, December 29, 1932

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Article Text

HOLIDAY In order to facilitate the action of the Malvern Trust and Savings bank in obtaining deposit waiters Mayor D. E. Whitheld issued the following proclamation Monday. It was understood that the holiday would automatically end as soon as the waiver plan had been carried through. It read: "For reasons deem of bene fit to the entire community D. E. Whitheld, Mayor of the Town of Maivern, towa, hereby declare a legal holiday in the town of Maivern the next ten days beginning Dec. 26, 1932, and request that in as far as practical, all business be suspended during the above days."

3. December 29, 1932 The Malvern Leader Malvern, IA
Article from The Malvern Leader, December 29, 1932

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Article Text

Prompt Cooperation of Depositors Assures Action Per Cent of Depositors Sign Waivers First Day; Drive for Signers Continues Prompt action and splendid cooperation on the part of depositors in the Malvern Trust and Savings bank are rapidly overcoming the crisis which was reached Monday morning. On the first day of the drive by the citizen's committee to obtain signatures on deposit waivers, sixtyfive per cent of the depositors signed the document. This action indicates that the bank can reopen under the new plan within a very few days, very probably before the end of the ten-day holiday proclaimed by Mayor D. E. Whitfield. Under the chairmanship of Fred E. Mulholland, the citizen's committee went to work Monday and a number of sub committees were in the field early Tuesday morning obtaining the signatures of depositors on the deposit waivers. The drive was far more successful than any had predicted on the first day and continued at an equal rate of progress Wednesday. Workers were optimistic cooperation and reshowing splendid that depositors were ported deposit waiver plan, Under the with the plan. depositors agree to leave their deposits in the bank for period of not more than three years. This action halts the stream of with. drawals which was endangering About the Bank the institution and does away enAnswer Yours This May tirely with the danger of a run on the bank. It does away with have any questions If you the necessity of obtaining & about the banking situation here, celver or of cloaing the bank. In you to answer the depositor this may help every way nearly benefits by this plan as opposed them. Here are the questions most frequently asked of the NO- to closing the bank outright. The bank will be able to reopen much sooner than at first expectQ: Will the banks reopen if the ed, possibly by the end of the are signed? committee urges week. The will for Yes. They open A: have to be Do chances of 100 cent? signed per