7878. Exchange Trust Company (Boston, MA)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
trust company
Start Date
December 17, 1931
Location
Boston, Massachusetts (42.358, -71.060)

Metadata

Model
gpt-5-mini
Short Digest
1b76aa80

Response Measures

Capital injected, Partial suspension, Books examined

Other: State commissioner/receiver took charge when bank failed to open in April 1932.

Description

December 17, 1931: heavy withdrawals/groundless fears led to intervention (National Credit Corporation, Boston clearing house, state and city deposited $2,600,000) and invocation of the 90-day (limited withdrawals) provision. Later, on April 25, 1932 the Exchange Trust failed to open and was taken by the state (closure). Cause for the run/suspension is described as groundless fears/rumors in the press.

Events (4)

1. December 17, 1931 Run
Cause
Rumor Or Misinformation
Cause Details
Depositors driven by groundless fears/rumors that threatened otherwise solvent banks; article describes 'groundless fears' and runs 'sapping the available cash'.
Measures
National Credit Corporation, a group of Boston banks, the state, and the city deposited $2,600,000; bank invoked the 90-day withdrawal limitation (limit withdrawals to $100).
Newspaper Excerpt
depositing a total of $2,600,000 in the Exchange Trust company of Boston ... to curb a run in progress at that bank
Source
newspapers
2. December 17, 1931 Suspension
Cause
Rumor Or Misinformation
Cause Details
Bank invoked the 90-day privilege limiting withdrawals following heavy withdrawals prompted by apparently groundless fears; action taken to curb run and limit outflows.
Newspaper Excerpt
The Exchange Trust company of Boston ... availed themselves the 90-day provision permits them ... to require days ... withdrawals will be limited to $100.
Source
newspapers
3. April 25, 1932 Other
Newspaper Excerpt
Exchange Trust Closes in Boston ... failed to open its doors; notice posted on the doors of the institution said the bank's affairs had taken the state commissioner banks. The bank invoked the 90-day clause regarding the savings deposits Dec. 17, 1931.
Source
newspapers
4. April 25, 1932 Receivership
Newspaper Excerpt
failed to open its doors; notice posted on the doors of the institution said the bank's affairs had taken the state commissioner banks.
Source
newspapers

Newspaper Articles (3)

Article from The Durham Sun, December 17, 1931

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Article Text

MARKETS TODAY Wall Street New York Stocks New York Cotton NEW Dec. Air Red NEW Dec. were still the majority the Jun opened steady today, markets four points higher covering proSeveral prominent stocks were de- Dye moted by reports rains points lower Demand was Januthe Am Pwr tom ary selling was deliberate Am Rf but The demand realizing rather than Am There may also Tob been local selling on contrast the Coppers ports the did some high Taf tendency but offerings fairly well ACL 6.07 and Steel broke about Auburn In shares, the ruled about net under going points the end no account the first hour. the capitalization Bendix cables the declined sterling but reported nine The Borden low for the past cloths Egypt and East- Briggs American Tobacco South who freand shares off Byers points, quently for Japanese included American Can Pac esta were said among the buy. Chemical, Cannon ers here this morning. Liverpool was and Standard dated Gas credited with sold some was the unsettled rulNew York Central held Chrysier of the stock cotton steady Extreme gains Coca tinued and its acion Col the face condiAmerican Smelting were Coml Solv to be attracting reduced later Comwith So This Congol flected any particular increase CHICAGO LIVESTOCK 58 demand but market held around Text for January and May opening Can midday or about net unchanged to than yesterday point lower. bulk early sales to lbs 4.00 Curt Wr New Orleans Cotton butchers under De pigs Eastman Kodak NEW Dec. packing around Elc cables lower than light cotton steady but quiet open200 250 today First trades showed 250 to 350 lbs. 100 to 130 three points gain Mtr close Gillet the start, the market eased Cattle Gold Dust Janucleanup steers Goodrich and May little ary trading down getting Int Harv two five under but light kinds and less choice points Int Nick yesterday's slow most sales 7.00 very Int Near the end the first the 8.00 to hour sprinkling Johns Many market despite the less extreme top she slow Kelvin favorable opening of the stock steady cattle and vealers Kennec ket Steers 600 900 to Kresge market very dull all 1100 Kreug Toll brief trading to Traders Kroger showed disposition bargain 550 Lig My to 4.75 to Lowes the market. Prices fluctuated (beef) Lorillard January dropping 6.06 (milk fed) Mo Pacific March 6.25 and May and feeder Steers 500 ML Ward frmo early highs to 1050 lbs. Nash 75 and two three most points under Sheep few and Nat Bisc terday's close. choice Cash Reg 5-8 Near the market and was quiet Jambs 5.00 packers Nat Dairy Prod but steady two. kinds one points small packers: closely sorted New York Central 3-4 above the lows. held fat NY NH HT lbs. Am LIVERPOOL COTTON lbs. to 1.25 No Am LIVERPOOL feeding lambs to No fair demand: prices three 5.00 and oats in later trading held Provisions declined with hog Packard points higher: pence: Penn American strict good GRAIN Pet Corp good strict Dec. Grain Phillips Pet middling 5.09 prices lower early today Pub Ser low strict fluenced by fresh Pure curities Argentine wheat crop Radio Futures vices were also bearish closed barely Jan to 3-4 lower, Opening Tob 33 March May general Oct. Corn off 1-8 and subsequently gains SPOT COTTON Sears Roebuck around, responsive CHARLOTTE Servel official estimates bushels -Spot Middling inch 6.25 Shell of the crop. middling short 5.75. of Simmons Adding to handicaps Rus- Sinclair Frozen Assets this the 7-8 last On St Brands Force Raleigh other hand, primary continued St wheat the United Bank To Close bush- Oil Cal shrink, totaling only today. with and 773,000 this (Continued from Page One) ago Something of an Gul officials Burlington's last were other banks that they had winter wheat terri during the night Un Chd condition might totory Unt the closing. Un The state North Carolina had Unt Gas Tmp approximately deposit Ind which was Util secured by in the Vanad Nathan state Dec. Warner afternoon. West Un Tel Business total 490: dull being Mig 1-2 sacked other banks/in the trading Woolworth day exception the Morris sional higher unclassified which experiencing few heavy withdrawing deRELIEF COMMITTEE TO Idaho usets No. to positors being paid. No. MEET SATURDAY MORNING POULTRY alive easy: fowls springs 10: young turkeys old toms heavy white ducks 15, small 14: heavy colored EGGS Dec. Butter steady. unchanged. Eggs steady, unchanged. NEW Dec. seconds 24-25 OMIT DIVIDEND NEW Iron. Coal and Coke company today omitted the dend of on the preferred stock SILVER NEW Dev. Bar steady and unchanged at 31 with offices Devonshire street, downtown Boston. four branches. closed today. opening time. was that the had conserve owing to heavy demands by depositors. At the time of the consolidation the bank with the Continental National about year ago the merged given approximately the combined were set 000,000. originally was the its was changed the Brotherhood Engineers Urelinquished control of its affairs. The the 13th New England bank close four days. The action was taken by resolution the board of federal bank examiner placed charge, the currency decides what further action will be taken. BOSTON, Dec. Traveler says that the the Exchange Trust company of Boston, the MillMass. and every in Lawrence and Lowell today availed themselves the 90-day provision permits them require days tice from seeking to with- HAMDEN Dec. Hamden Bank and Trust company remained closed today. Assets the the statement published in March, were


Article from The Waterbury Democrat, December 18, 1931

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Article Text

SEEK TO HALT RUNS ON CLOSED BANKS IN MASS. Individuals and Groups Unite for EmergencyCredit Corporation De= posits Millions in Cash Boston, Dec 18.-(UP)-Many agencies and individuals cooperated to-day to halt runs that were sapping the available cash of several banks described as entirely solvent. Emergency measures had to be adopted in the face of 19 bank closings in New England since October 1. A national bank and three trust companies which closed yesterday increased to $93,463,262 the total deposits tied up at the height of the Christmas shopping season. Outstanding among the stabilizing steps was the depositing of a total of $2,600,000 in the Exchange Trust company of Boston by the National Credit Corporation, a group of Boston banks, the state, and the city. This was calculated to curb a run in progress at that bank Several Massachusetts banks whose solvency was threatened by apparently groundless fears of depositors invoked the 90-day privilege, under which, for the specified period, withdrawals will be limited to $100. Announcements by some, banks that many new accounts were being started were expected to have a strengthening influence. President Wilmot R. Evans said the Boston Five Cent Savings Bank, scene of n run yesterday, would stay open and permit unlimited withdrawals, without invoking the 90-day rule. After the Plymouth County Trust company of Brockton closed, Edgar B. Davis, the Texas oil millionaire who became famous as the sponsor of the profitless Broadway play, "The Ladder," guaranteed depositors 100 cents on the dollar. He is connected with the bank.


Article from The Minneapolis Journal, April 25, 1932

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Article Text

Exchange Trust Closes in Boston Boston The ExCompany failed to open its doors notice posted on the doors of the institution said the bank's affairs had taken the state commissioner banks. The bank invoked the 90-day clause regarding the savings deposits Dec. 17. 1931. At the tional Credit Corporation, the Boston clearing house, the wealth of Massachusetts and city Boston together had deposited $2,600,000 in the bank to stabilize the The bank was of the and the ton clearing house