7514. Savings Institution (Sandy Spring, MD)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
savings bank
Start Date
February 25, 1933
Location
Sandy Spring, Maryland (39.150, -77.027)

Metadata

Model
gpt-5-mini
Short Digest
e7c9350f053864e9

Response Measures

None

Description

The articles describe the Maryland gubernatorial three-day bank holiday beginning Feb 25, 1933, which closed the Savings Institution of Sandy Spring; the bank is listed among those reopening on March 15, 1933. No run is reported in these items.

Events (2)
1. February 25, 1933 Suspension
Cause
Government Action
Cause Details
Closed under Maryland Governor Albert C. Ritchie's three-day statewide bank holiday to permit enactment of protective legislation.
Newspaper Excerpt
the First National Bank of Sandy Spring, Sandy Spring Savings Institution, ... closed by the Governor's order
Source
newspapers
2. March 15, 1933 Reopening
Newspaper Excerpt
The eight banks that resumed business on a normal basis are ... First National Bank of Sandy Spring, Sandy Spring Savings Institution ... resumed business on a normal basis today.
Source
newspapers

Newspaper Articles (3)
1. February 25, 1933 Evening Star Washington, DC
Article from Evening Star, February 25, 1933

Click image to open full size in new tab

Article Text

MONTGOMERYCALM IN BANK SITUATION Officials of 11 Institutions in County Say Depositors Are Not Worried. Citizens of Montgomery County calmly accepted today the situation which has led to the temporary closing of banking institutions throughout the State of Maryland. Officials of the 11 banks located in that community declared at noon that the act of Gov. Albert c. Ritchie in proclaiming a three-day "bank holiday" to permit the enactment of protective legislation for both depositors and banking interests has occasioned no alarm among their depositors. Without exception the officials declared their own institutions to be in a sound financial condition, and said that no heavy withdrawals had been made on their banks. They indicated that the "unusually heavy w drawals" osing which led to the State-w. order had been made on the banks in Baltimore City. Numerous telephone calls were received the banks of the throughout by morning, but the the county of calls obwere made for the sole purpose taining information additional to that carried in the newspapers, they said. A few persons who had not learned of the three-day holiday in banking circles appeared at the institutions this morning, read the notice which had been on the closed doors to the the susuntil unpended effect posted that business institutions Wednesday had der the Governor's order and turned quietly away. Not Excitement Whatever. "There has been no excitement whatsoever," one banking official declared. "The people have read of situations similar to that in Maryland which led to the recent closing of the banks of Louisiana and Michigan and have gracefully accepted the announcement of the three-day holiday in this State." The principal embarrassment. it was learned, has been in the meeting of pay rolls. A number of firms were said to have been unable to pay their employes in cash and were forced to issue checks on their county banks, which cannot be cashed, of course, until after the holiday is suspended. Included in this group were county officials and county employes. who received their wages in check form this morning, but were unable to cash them at the county banks on which they were drawn. State Senator Robert G. Hilton. who is president of the Farmers Bank & Trust Co. of Rockville, said this morning: "I feel satisfied that the State Legislature will take up the matter when it reconvenes on and I have no promptly day evening, which doubt Mon- that will plan will be devised serious to prevent some any embarrassment State." any of the banks of the Business to Be Supplied. of the banks made arthis morning to rangements A number supply with business houses in their community change needed in their business. They also announced that business houses would be permitted to leave their money at the banks over the week-end for safekeeping. but that the money would not be accepted as regular deposits. The banks in Montgomery County closed by the Governor's order are the Citizens Bank of Takoma Park, Silver Spring National Bank, Farmers' Bank & Trust Co. of Rockville and its Kensington branch, Montgomery County National Bank of Rockville, First National Bank of Gaithersburg, First National Bank of Sandy Spring, Sandy Spring Savings Institution, Germantown Bank, Bank of Bethesda and the Damascus Bank. UVATTSVILE

2. March 15, 1933 Evening Star Washington, DC
Article from Evening Star, March 15, 1933

Click image to open full size in new tab

Article Text

BANKS IN NEARBY COUNTIES REOPEN Most Neighboring Virginia and Maryland Institutions on Normal Basis. With a majority of the banks functioning on a normal basis, "business as usual" was the slogan in the Maryland and Virginia counties around Washington today. Shortly after their doors opened, bankers of the various counties reported deposits were "heavier than usual. while withdrawals were described as "normal," indicating the experience which Washington's banks had yesterday was being repeated on a smaller scale today in Maryland and Virginia. As President Roosevelt's progressive program for reopening the Nation's financial institutions reached its third stage, the restored confidence which has been so evident in the financial centers and big towns of the country during the past two days, reached the rural areas and small towns this morning. Others to Open Later. Marylanders were particularly happy to have their banks functioning again, as they have been closed by gubernatorial holiday proclamations since February 25. Virginia banks had only suspended operations during the national holiday, which began March 6. State Bank Commissioner John J. Ghingher of Maryland emphasized, in announcing the list of banks licensed to reopen, that those not included were not necessarily unsound and probably would be permitted to resume functioning in the near future. The commissioner issued licenses for 96 State banks and expects to have more time to examine the unlicensed ones with a view to reopening them in the next few days. Ten of the 11 banks in Montgomery County whose doors have been closed during the holiday reopened for business this morning, with the other institution awaiting action by the Federal Reserve Bank in Richmond on its application to resume normal operation. With the exception of the Farmers' Banking & Trust Co. of Rockville and the Bank of Damascus the 10 institutions open for business were operating with no restrictions on withdrawals. A 2 per cent limit has been placed on withdrawals from the Farmers' Banking & Trust Co. and the Bank of Damascus. Eight on Normal Basis. The eight banks that resumed business on a normal basis are the First National Bank of Gaithersburg, Citizens' Bank of Takoma Park, Takoma Park Bank. Germantown Bank, Bank of Bethesda. First National Bank of Sandy Spring, Sandy Spring Savings Institution and the Silver Spring National Bank. Officials of the First National Bank of Gaithersburg said this morning that they have not yet received their license from the Federal Reserve Bank of Richmond, but opened for business when given the assurance that the license would be granted today. The Montgomery County National Bank of Rockville was not open this morning, but the cashier of the institution declared that application had been made with the Federal Reserve Bank for a license to operate on a normal basis with no restrictions on withdrawals. Ira C. Whitacre, cashier, Silver Spring National Bank said, "We opened this morning on a 100 per cent basis and (Continued on Page 5, Column 3.)

3. September 29, 1955 Montgomery County Sentinel Rockville, Gaithersburg, MD
Article from Montgomery County Sentinel, September 29, 1955

Click image to open full size in new tab

Article Text

M. Stabler, Henry Stabler, Wil liam M. Moore, Charles Stabler Charles G. Porter, Robert M. Stabler, Edward Lee, Samuel P Thomas, James S. Hallowell, Asa M. Stabler, Charles H. Brooke, and B. H. Miller. They had no capital assets; the bank merely opened its doors to depositors. At the end of 1868, 183 depositors had entrusted $9545 to the vault of the fledgling bank. The accrued interest was $240. Knowing that the new institution could ill afford to pay salaries from such meager funds, the first four officers took 1/4c each the first year. And they really cut up a penny! The statement of the bank's condition issued early this year graphically illustrates its growth. Assets total $5,193,448.73, of which two million dollars is in first mortgage loans, two and a half million in government bonds, and $360,000 in cash at Sandy Spring and in other banks. Opposite the item "corporate stocks" is the tiny figure $145.92. This token holding is a policy formulated after the depression of the '30s. President Thomas explains, "We held such diversified and such secure assets that if we hadn't read it in the paper we wouldn't have known there was a depression. Of course we held stock in corporations whose value dropped tremendously. But instead of selling out when they were at the bottom we held them through the depression and sold in the early '40s, at a profit in most cases. Since then, though, we've bought government securities instead of corporation stock." The Savings Institution of Sandy Spring was unaffected by the depressions of 1897 and 1912 also. The bank was forced to make very few foreclosures due to unpaid loans. And contrary to the "runs" on other banks, only three depositors withdrew their accounts during the depression. Mr. Thomas chuckles when he remembers the night the telegraph office called him at 4 a. m. with a message from the state banking board not to open the next day. It was the Maryland bank holiday. Later the bank remained closed during the national bank holiday. Though as a non-member of the Federal Reserve System the Savings Institution is not required to keep a cash reserve against total deposits, in reality bank policy is to keep about TWICE as much reserve as is required of member banks. Presently 20 per cent cash reserves are maintained against the $4 406,184.28 time deposits. This is but one of the bank's conservative policies. Extremely large accounts are frowned on. The largest is about $35,000 while the average is $15,000. Mortgage loans are made to only 60 per cent of conservative appraisals; other banks loan 65 per cent. In judging the worth of property the Sandy Spring bank takes the 1940 value plus 33 1/3 per cent; other institutions base worth on the higher 1947 value. Two per cent interest "plus extras" are paid semi-annually. Pass book No. 1 was issued to Joseph T. Moore and is still an open account owned by the Moore family. The youngest depositor Helen Thomas Nesbit, was only eight minutes old when her fath er opened an account by phone. When the Savings Institution of Sandy Spring opened its doors in 1868 it was renting a room in the Mutual Fire Insurance Com pany building. In 1896 the bank built its first structure which has been increased four times to form the present building. In 1900 the First National Bank of Sandy Spring was formed and