1.
September 27, 1920
Evening Times-Republican
Marshalltown, IA
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BOSTON DEPOSITORS GROW PANICKY Another Bank Closes Doors to Pro. tect Creditors After Runs Which Closed Another Institution Saturday-Banks Pile Up Money to Meet Demands. By Associated Press. Boston, Sept. 27.-Officials of the Tremont Trust Company, following steady payments of withdrawals for an hour after opening today, announced that the law permitting a bank to require ninety days notice for withdrawals from the savings department would be invoked forcnwith "for the protection of the depositors. The regulation would be withdrawn "as soon as the public calmed itself," it was announced. "We have plenty of money to pay everybody," officials said, and "we invoke the law for the protection of the depositors, not for our own protection." Similar action was taken by the Fidelity Trust Company. Several banks opened their doors with large amounts of ready cash piled high within the tellers' cages, as provision against a repetition of the runs which developed Saturday out of the closing of the Cosmopolitan Trust Company. Bank officials in several instances announced that there was no con nection between the Cosmopolitan, which was the fifth bank to be closed here within two months, and their institutions, and Bank Commissioner Allen declared that no other banking institution was involved in the Cosmopolitan troubles.
2.
September 27, 1920
Capital Journal
Salem, OR
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Hundreds Line Up for Run On Bank In Boston Boston, Mass., Sept. 27.-Several hundred persons gathered outside the offices of the Tremont Trust company here today when the doors were opened at 8:45 a. m., fifteen minutes before the usual hour, and lines quickly formed before several paying tellers windows. After steady withdrawals for nearly an hour with the crowds increasing, bank officials announced that the law permitting a bank to require ninety days notice for withdrawals from the saving departments would be invoked forthwith "for the protectiion of the depositors." The regulation would be withdarwn "as soon as the public calmed itself," it was announced. Opening for business today, the Fidelty Trust company served notice on depositors that its savings department would take advantage of the same law.
3.
September 27, 1920
The Barre Daily Times
Barre, VT
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TREMONT TRUST CO., DORCHESTER TRUST FIDELITY TRUST CO. Bank Commissioner Allen Advised Resort to the Law Which Requires 90Day Notice Before Withdrawal of Funds-All Them Are Believed to Be Able to Meet Calls. Boston, Sept. 27 Public unrest over conditions to-day caused a some institutions rerun banking on Trust with the sult that the Tremont company the Fidelity Trust company and the Dorchester Trust company invoked the law which makes it possible to require ninety days notice of withdrawals from the savings departments, in or der to stop the rush of frightened de positors. the Tremont Trust com was in by pany The run participated on crowd hundreds bethe of the so that were called upon to and and came afoot, proportions great police, mounted keep in order! The bank sought for hour to meet the officials announced was the it. and an crowd claims all, there but against the money on hand to pay Vice crush became so great that President Simon Swig announced that the ninety-day notice would be required. At the Fidelity Trust company, which also has offices in the downtown district, the run was in smaller volume, but the law was called upon, to it was stated. "to allow the public recover from the prevailing unrest. There has been a run on the Dorches ter Trust company for several days; and the invocation of the law there stopped the payments. Officials of the institutions in several instances announced by statement or advertisement that there was no connection between the Cosmopolitan, which was the fifth bank to be closed here within two months, and their in stitutions, and Bank Commissioner Joseph C. Allen declared that no other banking institution was involved in the Coemopolitan's troubles. Nevertheless, a recurrence of the runs was an ticipated in some degree. depositors having become alarmed and, in the case of the Tremont Trust company, having made constant hdrawals from morning Saturday almost to midnight, the management having ex a tended the closing hour from noon to accommodate them. The feeling of uncertainty over the banking situation was the subject of discussion by Governor Coolidge and bankers yesterday, but without an nouncement of any contemplated ac tion. One effect of the close scrutiny of the affairs of local banks, which Commissioner Allen has been making, was an order from him to the management of the Old South Trust company to drop M from its payroll former Governor Sam uel W. McCall and four other officials, As M including two ce-presidents chairman of the board of directors of the company, McCall, who was ap pointed recently, is drawing a salary el of $8,000 a year, and the other men involved are said to be receiving sev earal thousand dollars each. a The object of the order is to reduce f the bank's expenses. and it is the opinion of the bank commissioner that D the men whom he asked to have dropped are holding merely nominal positions for which the salaries might to well be saved. In each instance, they may continue to serve in their present capacities without salary, according to the order from the bank commissioner to the Old South management. The Old South Trust company was M closed a year ago and re-opened re to cently after having rehabilitated its finances without loss to the depositors of Several hundred persons had gath ered outside the offices of the Tremont W Trust company when the doors were th opened at 8:45. fifteen minutes before as the usual hour and lines quickly formed tl before the several paying tellers' win dows. After withdrawals had been going on steadily for nearly an hour & with the crowds constantly increasing be the bank officials announced that the m law permitting a bank to require 90 days' notice for withdrawals from the savings department would be invoked forthwith "for the protection of the m depositors. The regulation would be m withdrawn "as soon as the public th calmed itself. it was announced M We have plenty of money to pay everybody. officials said. "and we're prepared to do so this morning, but at he crowd became so large that it was el impossible to handle them and we in is roked the law for the protection of the he depositors, not for our own protec iden. The Fidelity Trust company also served notice on depositors that it f would take advantage of the 90 days ke law. It was stated at the bank that ha this was done upon the direction of the bank commissioner At the office of
4.
September 27, 1920
The Caledonian-Record
Saint Johnsbury, VT
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Three Boston Banks Suspend Payments (Continued from page one) was said, the taking of this action was optional with the banks. The run on the Tremont Trust Co. was participated in by hundreds and the proportion of the crowd became so great that police mounted and afoot were called to keep the crowd in order. The bank tried for an hour to meet the claims against it and officials announced there was money on hand to pay all, but the crush became so great that vice president Simon Swig announced that the 90-day notice would be required. At the Fidelity Trust Co. which also had offices in the downtown district the run was of small volume but the law was called upon. It was stated "to allow the public to recover from the prevailing unrest." There has been a run on the Dorchester Trust Co., for several days and the invocation of the law there stopped the payments. The virtual suspension of payments of these three banks follows the closing of five banking institutions in this city within the past two months by Bank Commissioner Allen. In no case was the bank a member of the Federal Reserve system. State officials say that the Ponzi crash was clearly reflected in the trouble of the several banks which hda been under a run by depositors. In each case except that of the Hanover Trust and the small affiliated private banks it has been indicated that the banks were solvent but were lacking ready cash to meet the demands of depositors. At all three of the banks that suspended payments in its savings department is was announced that transactions in the commercial department would proceed as e usual. Gov. Coolidge conferred with State treasurer James Jackson and Bank Commissioner Allen regarding the banking situation. The only statement issued was made by the governor, who said: "Some time ago I advised all big banks in Boston that plans should be worked out through which there would be co-operation between all the banks. A clearing house committee is now working out details of such a plan."
5.
September 27, 1920
The Bridgeport Times and Evening Farmer
Bridgeport, CT
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PEOPLE DEMAND SAVINGS FROM BOSTON BANKS Boston, Sept. & 27.-The Tremont Trust company and the Dorchester Trust comapny today established moratoriums, by which depositors will be required to wait 90 days before withdrawing funds. Officials of both companies declared their institutions were sound and that the moratoriums were established to "protect the people from themselves.' Payment of funds was stopped at the Tremont Trust company branch on Warren street, Roxbury, shortly after the opening hour., Crowds of apprehensive depositors had gathered outside the Tremont company's Court street office and the State street headquarters of the Fidelity hours before the opening time. will be greeted by the flower The run on the Tremont Trust Co. started Saturday following the closing by State order of the Cosmopolitan company, the fourth bank to be closed since the bursting of Charles Ponzi's get-rich-quick bubble. A crowd of men and women was lined up outside the Tremont Trust company in Courts treet today. Thirty police were on duty keeping the people in order and protecting them from pickpockets. Mounted police kept a lane through Court St. clear for traffic. The line extended in twos from the bank down Court street and Franklin avenue to Cornhill and in the other direction up Court street to Tremont Row. Smaller and somewhat less demonstrative crowds were gathered outside the Tremont Trust branch in Roxbury and the Fidelity Trust company on Summer street. Thomas J. Boynton former United State's Attorney and an officer of the Tremont Trust addressed the gathering on Court street, assuring them that the 90 day close was invoked for their protection and that all would get their money. Applause greeted soynton's re. marks but the crowd did not move away. Several more "inactive" officials connected with Boston banks are likely to be dropped it was learned today following the order of Bank Commissioner Allen that the Old South Trust company dispense with the services of former Governor Samuel W. McCall recently named on the federal tariff commission. McCall was appointed chairman of the Old South's board of directors shortly before the bank reopened on July. receives a salary of $8,000 for his services.
6.
September 27, 1920
Evening Star
Washington, DC
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RUN BEGINS AGAIN ON BOSTON BANK Tremont Trust Company Invokes Ninety-Day Notice to Protect Deposits. BOSTON, September 27 (by the Associated Press).-Several hundred persons gathered outside the offices of the Tremont Trust Company here today when the doors were opened at 8:45 a.m., fifteen minutes before the usual hour, and lines quickly formed before the several paying tellers' windows. After withdrawals had been going on steadily for nearly an hour. with the crowds constantly increasing. the bank officials announced that the law permitting a bank to require ninety days' notice for withdrawals from the savings departments would be invoked forthwith "for the protection of the depositors." The regulation would be withdrawn "as soon as the public calmed itself." it was announced. "We have plenty of money to pay everybody." officials said, "and we're prepared to do SO this morning. but the crowd became so large that it was impossible to handle them. and we invoked the law for the protection of the depositors, not for our own protection." Notice Served on Depositors. Upon opening for business today the Fidelity Trust Company served notice on depositors that it would take advantage of the law permitting it to require ninety days' notice of withdrawals from the savings department. It was stated at the bank that this was done upon the direction of Joseph C. Allen, state bank commistioneer. At his office it was said that the taking of this action was optional with the banks. Several banks opened their doors with large amounts of ready cash piled high within the tellers' cages as provision against a repetition of the runs which developed Saturday out of the closing of the Cosmopolitan Trust Company. No Other Banks Involved. Bank officials in several instances announced by statement or advertisement that there was no connection between the Cosmopolitan, which was the fifth bank to be closed here within two months, and their banks, and Bank Commissioner Allen declared that no other banking institution was involved in the Cosmopolitan's troubles. Nevertheless, a recurrence of the runs in some degree was anticipated, depositors having become alarmed. and. in the case of the Tremont Trust Company having made constant withdrawal from early morning to nearly midnight Saturday, the management extending the closing hour from noon to accommodate them. The feeling of uncertainty over the banking situation was the schedule of discussion by Gov. Coolidge and bankers yesterday, but without announced decision of any contemplated action. McCall Ordered Dropped. As result of the close scrutiny of affairs of local banks which Commissioner Allen has been making, was an order from him to the management of the Old South Trust Company to drop from its pay roll former Gov. Samuel W. McCall and four other officials, including two vice presidents. As chairman of the board of directors of the company, Mr. McCall. who was appointed recently, is drawing a salary of $8,000 a year. The object of the order is to reduce the bank's expenses. it being the opinion of the bank commissioner that the men he asked to have dropped are holding merely nominal positions. In each instance. they may continue to strye in their present capacity without salary, according to the order from the bank commis-
7.
September 28, 1920
The Washington Herald
Washington, DC
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Coolidge Blames Banks' Failure On Distressing Influences The Tremont Trust Company, of Reserve Board's Opinion. Federal Reserve Board officials Boston, yesterday invoked the ninety-day clause of the banking laws, here, although acknowledging that the condition of various State banks which requires depositors to give that much notice before withdraw in Boston was reported to be bad, they declared they had no interest ing funds, following a run on the in the general financial situation bank in which police were called in the Massachusetts city. The out to restore order among excited trouble was a State matter. they said, and as such was in the hands depositors. of the State authorities. Some dozOfficials of the trust company en banks and trust companies are said that while no money would be affected, it is understood, but so far paid ont from the savings departas known no national banks OF Federal reserve system institutions are ments, the bank would be open for suffering. receiving deposits. I Reassuring statements were made Simon Swig, vice president. adby Comptroller of the Currency dressed the crowd in front of the Williams concerning the national building, saying the trust company bank situation in Boston, as well as in the New England district. is well able to pay all depositors Williams sent out reassuring stateand urging them to cease withments pointing out that the Federal drawals. reserve system was checking the Gov. Coolidge intimated in an incourse of events and was ready to terview that he believed interests lend assistance in any way that which seek to break down conwould protect member banks. fidences in established institutions might be responsible for the cirPREDICTS REDUCTION IN FOOD cumstances causing the closing of PRICES. the banks. Chicago, Sept. 27.-A general reWhen asked what he believed duction in retail food costs was forebrought about this financial condicast here by Sol Westerfeld, prestion, Coolidge replied: "It is hard ident of the Retail Grocers' Assoto determine, but We all know that ciation. He declared all food prices influences are at work in the comwith the exception of eggs and butmunity to break down confidence ter are scheduled for continued dein established institutions." Coolclines. It is due, he said, to the idge pointed out that the foreign refusal of banks to loan money. population is most susceptible to This has caused producers to unradical influences. He drew attenload stocks at cheaper prices. The tion to the fact that most of the reduction has already begun. depositors in the banks which are in trouble are foreigners. When PERSONAL. asked if he believed the banks affected by the runs are solvent. George B. Chapman, manager of Coolidge said: "I know of nothing Harriman and Company, stock to the contrary. The trouble bebrokers, returned to his office yesgan when the people began to deterday morning after an enforced mand their money over the countvacation of a week owing to IIIer." ness.
8.
September 28, 1920
Arizona Republican
Phoenix, AZ
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DEPT GOV. CAMPBELL FLAYS STATE LAND Three Banks in Mining Engineer THOUSANDS GREET GIVEI IS EXECUTIVE CHIEF COX DISAPPROVES Boston Suspend Reports Mexican REPUBLICAN CHIEF Bandits Active Saving Payments A SPLENDID RECEPTION A' [Republican A. P. Leased Wire] [Republican A. P. Leased Wire] ON, MARYLAND TOUR BURLESON-KNOXBOSTON, Sept. 27-Three Bos. BISBEE, Ariz., Sept. 27ton banks were forced today to enFranklin B. Harding, chief convoke the law requiring 90 days' notice of withdrawals from the sulting engineer for the Chicago ROUSING REPUBLICAN RALLY Senator Harding Outlines Policy for Sound Business savings departments as a measure Exploration and Development corPALMER RULE IN of protection from the depositors Administration and Reconstruction Plan poration, who returned from the who had become alarmed over local company's property at Tonichi, banking conditions as a result of (Republican Associated Press Leased Wire) Ralph H. Cameron and Other Candidates Speak-E Sonora, Mexico, today stated to the the closing of five banks in the last BALTIMORE, Sept. 27-Before a throng which two months and the Ponzi finanthusiastic Crowd That Fills Every Inch of Stadiu Associated Press correspondent cial fiasco. Officers of all three, CABINET AFFAIRS taxed the capacity of the Baltimore armory and voiced that during his stay at that place With Hundreds Standing Wait Until Late Hour the Tremont Trust company, the a band of outlaws attacked the Fidelity Trust company, and the its approbation in repeated crashes of applause, Senator I Hear the Governor Give Accounting to People town, which is located south of the Dorchester Trust company, assertCox Tells Omaha Audience Warren G. Harding outlined tonight his policy for sound ed that their institutions were Past Two Years Administration of State Affairsmin,e and murdered four Mexican solvent, but lacked ready cash to He Would Support Bryan miners and carried eight women business and rehabilitated American territory. meet the heavy demands made Challenges Mit Simms to Debate Land Board Affai into the hills. If Nebraska Man Was In upon' them by thousands of deEvery place in the armory was taken and many were Or Any Other State Issues Federal soldiers from a nearby positors who desired to withdraw Campaign Today their accounts at once, standing when Senator Harding arrived. At his appeargarrison immediately took pursuit, I challenge Mit Simms to appear on any platform with me in this rescuedthe kidnaped women, and The bank officers were joined by ance the audience rose and cheered for two minutes and state and debate the land issue. I will state my case against the land returned four of the bandits to ToGovernor Coolidge, Bank Commis BIGGEST CROWD OF board and the land grabbers. Let him justify, if he can, his position sioner Allen and city officials in nichi, where they were hanged in then renewed the ovation after the band had played the statements assuring the public and let the people judge which one of us they wish to trust the next the public square as a lesson to TOUR GREETS COX that the Boston banks were in Star Spangled Banner. The nominee many times was infuture raiders. two years. sound condition and that funds According to Mr. Harding, the terrupted with cheering and when he concluded he was entrusted to them were safe. outlaws came from the state of More than 2,000 persons heard Governor Thomas I Overflow Crowd Waits For At all three banks which susSinaloa, where several "lynching" sent away with a great roar of applause. pended payments in their savings parties have recently been held by Campbell, Ralph Cameron and James R. Dunseath, co Chance to Hear DemoThe address was the fourth to be made today by Senaauthorities in an effort to rid the departments it was announced that business in the commercial state of outlawry. gressional candidates, and a half dozen candidates f cratic Nominee - South tor Harding. In Baltimore he was received by a cheering departments would continue as Mr. Harding declares that the state offices, fire the opening guns of the 1920 Republica usual. Dakota on Today's ProMexican officials are of the opinthrong at the railway station, was tumultously acclaimed Action suspending payments in ion that hte latest bandit gangs campaign in Maricopa county at the Y. M. C. A. stadiu gram the savings departments was taken are composed of soldiers, recently along a ride through the city and was personally welcomed this forenoon after hundreds had discharged from the federal army last night. [Republican A.P Leased Wire] by hundreds who filed by to shake his hands at a public crowded the banking offices to through its reorganization. OMAHA, Neb. Sept. -Governor Campaign issues were clearly defined by the respe withdraw their accounts. Cox of Ohio. Democratic presidential reception. Saural Republic
9.
September 28, 1920
The Brattleboro Daily Reformer
Brattleboro, VT
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FIDELITY TRUST STOPS BUSINESS Bank Commissioner Allen Takes Charge of Institution DECLINING DEPOSITS AND SLOW LOANS They Are Responsible for Commissioner's Action - Its Officials Affiliated With Other Financial and Industrial Concerns. BOSTON, Sept. 28.-Bank Commissioner Joseph Allen took over the affairs of the Fidelity Trust Co. here today. His action marked the closing of the sixth banking institution in this city= within two months. The others were the Hanover Trust Co., of which Charles Ponzi was a director and largest individual depositor, the Prudential and Cosmopolitan Trust companies and two private banks. The canital of the Fidelity was $3,000,000 and according to the latest available statement the company had a surplus of $700,000. Its deposits totalled about $18,000,000. James G. Ferguson, its president, is affiliated with several other financial and industrial institutions, as is Edwin T. McKnight, the vice president. The Fidelity Trust Co. was one of three banks which yesterday invoked the 90-day law for withdrawal of deposits. The reasons for the closing of the bank, Commissioner Allen said, are the steady withdrawal of deposits and slow and doubtful loans. 'Only a few persons were on hand when the formal notice announcing the closing was posted on the door of the Fidelity Trust Co. at 9 a. m. A squad of policement were on duty and extra officers patrolled the financial district but there was no excitement. At the offices of the Tremont Trust Co. a small crowd gathered before the opening hour but police had nothing to do. The bank continued to do business as usual in its commercial department but depositors in the savings department were required to file 90 days' notice of intention to withdraw. The same sitnation existed at. the Dorchester Trust Co.
10.
September 28, 1920
The Barre Daily Times
Barre, VT
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Was One of Three Boston is Banks to Invoke the 90a N I Day Law , d e "SLOW AND DOUBTFUL e LOANS" ONE CAUSE 8 i. State of Massachusetts Has Over $50,000 Deposited h in the Bank f t I Boston, Sept. 28. When Bank Com missioner Joseph C. Allen took over 1 the affairs of the Fidelity Trust comf ) pany here to-day his action marked the closing of the sixth banking institution in this city within two I months. The others were the Hanover Trust company, of which Charles i Ponzi, the "financial wizard," was a e director and largest individual depositor ; the Prudential and Cosmopolitan Trust companies and two private banks. The capital of the Fidelity was $3,000,000 and, according to the latest available statement from the company, had a surplus of $700,000. Its deposits totalled about $18,000,000. James G. Ferguson, its president, is affiliated with several other financial and in dustrial institutions. as is Edwin T. MeKnight, the vice president. The Fidelity was one of three banks which yesterday invoked the law requiring 90 days notice for withdrawal of savings deposits. The reasons for the closing of the bank. Commissioner Allen said, are "the steady withdrawals of deposits and slow and doubtful loans. Only a few persons were on hand when the notice announcing it closing was posted at 9 clock on the door A of the Fidelity Trust company squad of policemen was on duty and extra policemen patroiled the financial district, but there was no excitement. At the offices of the Tremont Trust company a small crowd gathered before the opening hour, but the police had no difficulty in keeping order. The bank continued to do business as usual in its commercial department, but depositors in the savings depart ment were required to file 90 days notice of intention to withdraw. The same situation existed at the Dorches ter Trust company. The closing of the Fidelity tied up between $50,000 and $52,000 of state funds. State Treasurer Jackson an I nounced. On August 1 the bank held $633,023 of state money. Treasurer Jackson expressed him self as "confident that the money of i the state on deposit in the Fidelity Trust company is safe." "I believe, also," he added, "that the I money of all depositors is as safe. a This is a time for the public to remain 1 calm and to have confidence in our T banking institutions. They deserve it." t The city of Boston had no money i on deposit with the Fidelity, Treasurer a Thomas W. Murray said. Half a million in city funds was in the custody 2 of the Fidelity last December. but F since that time all has been gradually h withdrawn. In none of the recent r closings of banks here has the city had 8 funds tied up. P
11.
September 28, 1920
Daily Kennebec Journal
Augusta, ME
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BANKS HALT RUSH (Continued from Page One) control. The action was taken entirely upon the initiative of the bank officials and at no suggestion from Commissioner Allen, it was announced. The situation was considered at conferences later in the day between Commissioner Allen, the Clearing House Commission and other officials but no statements were issued at the close of the several meetings. Vice-President Simon Swig of the Tremont Trust Company, who had announced that he would conduct a mass meeting in Faneuil hall late toda yto explain the situation to his depositors, abandoned the plan after suspension of payments had been decided upon. Former Governor Samuel W. McCall issued a statement tonight commenting upon the action of Bank Commissioner Allen, announced today. in ordering the Old South Trust Company ot discontinue paying salaries tô Mr. McCall and four other officials. As chairman of the board of directors of the bank since its recent re-organization, he has drawn a salary of $8,000 a year. The commissioner took the position that the duties of the five officials were nominal and that the bank ought not to spend its money in salaries to them, although he did not object to their continuing in office without pay. Mr. McCall said that it was only "at the present solicitation of friends of the bank" that he entered its service and that his salary has been "much more than earned." He pointed to the fact that twice in former years he had served as receiver of a trust company and each time received payment in full for depositors. adding: "In neither case did the supreme court. which appointed me declare that I should work for nothing, as the commissioner decides." He asserted that it was unnecessary for the commissioner to take this action, "which can do the bank 1:0 good and which the contrivers of the situation were obviously aiming at me." Officials of the Tremont Trust Company announced tonight that in today's run, before the 90-day restriction was imposed. the bank paid out $531,699. and that during the day it received deposits amounting to $1,048,066. In a statement tonight the executive board of the bank said that things "would be normal again in a few days 'and that the 90-day restriction on savings withdrawais would be lifted" as soon as the excitement is over." Vice President Edward T. McKnight of the Fidelity Trust Company, said that deposits today far exceeded the amount withdrawn.
12.
September 28, 1920
The Washington Herald
Washington, DC
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(By Universal Service.) Boston, Sept. 27.-Following the action of three Boston trust companies in halting withdrawal of savings deposits today, Gov. Coolidge hurriedly summoned State officials to a conférence to consider the threatening banking situation. The institutions which under the ninety-day clause halted payments on savings accounts were the Tremont Trust Company, the Fidelity Trust Company, and the Dorchester Trust Company. They had been subjected to unusually heavy withdrawals by depositors, made apprehensive by the recent closing of the Hanover. Prudential and Cosmopolitan Trust companies. Suggests Co-operating. Gov. Coolidge said: "I understand the larger banks are considering what they can do to save the situation by concerted action. I have suggested that the
13.
September 29, 1920
The Brattleboro Daily Reformer
Brattleboro, VT
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CHARGES PLOT TO CLOSE BANKS Simon Swig of Tremont Trust Co., Claims Rivals Are Responsible PROMISES GREAT EXPOSURE SOON One of Greatest Plots Known In Banking History of United States - Other Bankers Calm and No More Closures In Sight. BOSTON, Sept. 29.-The runs on local banks within the past few days as a result of which two have been closed and two others have suspended payment in their savings deposits were due to a plot, Simon Swig, vice president of Tremont Trust Co., charged in a statement given out today after an interview with Bank Commissioner Joseph Allen. "It is a case of business rivalry-of lion eat lion," he asserted, and announced his intention in a day or two to expose publicly "one of the greatest plots known in the banking history of the United States." In this exposure he said a director of the Fidelity Trust Co. would join with him. The banking situation in this city appeared to have returned to conditions approaching calm today. A committee of the Boston clearing house association which went into session to draw un an agreement by which it was proposed to have the association go to the rescue of any solvent bank that might undergo a run, suspended its duties for the time being with the statement by Thomas P. Beals, president of the association, that the "conditions under which the agreement was to become operative did not materialize, and so nothing will be done until we think it advisable to act." Gov. Coolidge took notice of the calmer conditions of yesterday with a statement saying that "the second thought of the people is coming to the rescue. The disquieting rumors have ceased and the ordinary confidence of the people has returned. All that is necessary to provide any adequate remedy is a continuance of public confidence which seems to exist."
14.
September 30, 1920
The Telegraph-Courier
Kenosha, WI
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RUSH ON BOSTON BANK, Boston, Mass.-The Tremont Trust company today invoked the ninety-day clause of the banking laws, which requires depositors to give that much notice before withdrawing funds, following a run on the bank in which police were called out to restore order among excited depositors.
15.
September 30, 1920
Burlington Weekly Free Press
Burlington, VT
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FIDELITY TRUST CO. OF BOSTON IS CLOSED Boston, Sept. 28.-Bank Commissigner Joseph C. Allen took over the affairs of the Fidelity Trust company here to-day. his action marked the closing of the sixth banking institution in this city within two months. The others were the Hanover Trust company, of which Charles Ponzi. the "financial wizard." was a director and largest individual depositor: the Prudential and Cosmopolitan Trust companies. and two private banks. The capital of the Fidelity was 82,000,000 and, according to the latest available statement from the company. had a surplus of $700.000. Its deposits totalled about $18,000,000. James G. Ferguson. Its president, is affiliated with several other financial and industrial institutions. ns is Edwin T. McKnight. the vice-president. The Fidelity was one of the three banks which yesterday invoked the law requiring DO days' notice before withdrawal of savings deposits. The reasons for the closing of the bank, Commissioner Allen said are "the steady withdrawals of deposits. and slow and doubtful loane." Only a. few persons were on hand when the notice announcing the closing was posted nt nine o'elock on the door of the Fidelity Trust company. A squad of policemen was on duty and extra officers patrolled the financial district. but there was no excitement. At the offices of the Tremont Trust company a small crowd gathered before the opening hour. but the police had no difficulty in keeping order The bank continued to do business as usual in its commercial department. but depositors in the savings department were required to file DC days' notice of intention to withdraw The same situation extated nt the Dorahester Trust company.
16.
October 8, 1920
The Mellette County Pioneer
White River, Wood, SD
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Run on Boston Bank. Boston.-The Tremont Trust company invoked the 90-day clause of the banking laws, which requires depositors to give that much notice before withdrawing funds, following a run on the bank in which police were called out to restore order among excited depositors.
17.
February 18, 1921
Grand Forks Herald
Grand Forks, ND
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TRUST COMPANY CLOSED. Boston, Mass., Feb. 18.-The Tremont Trust company, which has aggregate deposits of $17,000,000 in savings and commercial accounts from many parts of New England. was closed today as a result of the action of Bank Commissioner Joseph C. Allen in taking over its affairs. Although it was the fifth institution of its kind here to be closed in five months. the suspension had no noticeable effect among other banks by which it was regarded as an independent. Bank Commissioner Allen said he had nothing to add to his supplemental statement of yesterday that violations of the banking laws and impairment of the capital had made his action necessary.
18.
February 18, 1921
The Barre Daily Times
Barre, VT
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SWIG BLAMES CONSPIRACY Leading Spirit of Tremont Trust Co. Says That Was Reason for Closing OTHER BOSTON BANKS ARE NOT AFFECTED State Bank Commissioner Says Bank Violated Laws -Capital Unimpaired Boston, Feb. 18.-The Tremont Trust company which has aggregate deposits of $17,000,000 in savings and commercial accounts from many partà of New England, kept its doors closed to-day as a result of the action of Bank Commissioner Joseph C. Allen in taking over its affairs. Although it was the fifth institution of its kind in this city to be closed by the commissioner in the past five months the suspension had no noticeable effect among the banks of the city by which it was regarded as an independent. The posting of a notice after bank ing hours yesterday had discounted the closed doors of to-day and only a few depositors and others passed through the police lines in front of the bank offices in Scollay square to scan the brief statement. Bank Commissioner Allen said he had nothing to add to his supplemental statement of yesterday that violation of the banking laws and impairment of the capital had made his action necessary. Simon Swig, vice-president of the bank and its most active spirit, announced that depositors in both the savings and commercial departments were certain to get 100 cents on the dollar. He asserted the capital was not impaired and that the closing was due to a conspiracy. The closing of the Tremont followed that of the Cosmopolitan Fidelity, Prudential and Hanover Trust companies which went to the wall last fall in a period of rigid inquiry and public exeitement growing out of the collapse of the Ponzi quick-rich bubble. The Tremont was under a heavy run at the time and with other banks was forced to déclare a ninety-day moratorium on savings withdrawals so that in ef feet the closing of to-day merely marks a prolongation of the period of suspension to savings depositors.
19.
February 19, 1921
Pueblo Chieftain
Pueblo, CO
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BOSTON INSTITUTION CLOSED Boston, Feb. 18.-The Tremont Trust company remained closed today and Simon Swig, vice president of the bank. declared the closing was the result of a conspiracy and that the depositors of the $17,000,000 in the vaults would be paid in full. The suspension caused no flurry in banking circles today.
20.
February 19, 1921
Every Evening, Wilmington Daily Commercial
Wilmington, DE
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BOSTON BANK CLOSED. Tremont Trust Company's Affairs Taken Over by Commissioner. Boston, Feb. 19.-The Tremone Trust Company which has aggregate deposits of $17,000,000 in savings and commercial accounts from many parts of New England kept its doors closed yesterday as a result of the action of the bank commissioner Joseph C. Allen in taking over its affairs. The suspension had no noticeable effect among other banks of the city, by which It was regarded as an independent.