8097. Gloucester National Bank (Gloucester, MA)

View Charter #1162 on SPMC

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
national
Bank ID
1162
Charter Number
1162
Start Date
December 15, 1931
Location
Gloucester, Massachusetts (42.616, -70.662)

Metadata

Model
gpt-5-mini
Short Digest
d16899fc

Response Measures

Full suspension, Books examined

Other: Directors voluntarily closed the bank and asked Comptroller to take charge; examiner conducted review; city banks agreed to honor Gloucester checks to ease pressure.

Description

The Gloucester National Bank voluntarily closed Dec 15, 1931 after heavy withdrawal demands tied to runs at the affiliated Federal National Bank of Boston. It later reopened (reported in March 1932). Cause identified as runs triggered by distress at an affiliated/central bank.

Events (5)
1. May 18, 1865 Chartered
Source
historical_nic
2. December 15, 1931 Run
Cause
Local Banks
Cause Details
Heavy demands for withdrawals driven by runs and trouble at the affiliated Federal National Bank of Boston
Measures
Directors voluntarily closed the bank to protect depositors; sought examination by National bank examiner
Newspaper Excerpt
voluntarily closed its doors today after heavy demands for withdrawals had been made by depositors
Source
newspapers
3. December 15, 1931 Suspension
Cause
Local Banks
Cause Details
Voluntary closure following heavy withdrawals associated with the failure/runs at the Federal National Bank of Boston
Newspaper Excerpt
Gloucester National Bank... voluntarily closed its doors today after heavy demands for withdrawals
Source
newspapers
4. March 14, 1932 Reopening
Newspaper Excerpt
has been organized for opening probably this week... the bank... has been reorganized for opening probably this week (reported Mar 14, 1932)
Source
newspapers
5. May 17, 1932 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (13)
1. December 15, 1931 Lansing State Journal Lansing, MI
Article from Lansing State Journal, December 15, 1931

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Article Text

BANKS CLOSED BOSTON Institutions with Aggregate Deposits of 58 Million Fail to Open ONE HAD FIVE BRANCHES Four Were National and Five Were State Banks; Runs Start on Three BOSTON, Dec. 15 (P)-Nine Massachusetts banking institutions with aggregate deposits, according to latest statements, of $58,700,000 were closed Tuesday. The list included four national banks and five state banks. The central figure in the closings was the Federal National Bank of Boston, which has five city branches and with which all the other institutions were affiliated The Federal National bank, whose directors voted to ask the comptroller of currency take charge after runs at the bank and its branches Monday, had deposits, on September 29, of $28,The other banks and their latest statements of deposit were: the National bank, Lowell, $4,000,000; the State National bank, Lynn, the Gloucester National bank, the Bancroft Trust company, Worcester, the Lawrence Trust company, Lawrence, $9,555,926: the Inman Trust company, Cambridge, the Brockton Trust company, Brockton, the Salem Trust company, Salem, Three savings banks in East Boston and South Boston were experiencing small runs Tuesday They were independent of the group affected in Tuesday's

2. December 15, 1931 The Evening Sun Baltimore, MD
Article from The Evening Sun, December 15, 1931

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NEW YORK BOND MARKET [By the Associated Press] Boston. Dec. 15 (AP)-Nine Massachusetts banking institutions, with aggregate deposits, according to the latest statements, of $58,700,000. were closed today. The list included four national banks and five State banks. The central figure in the closings was the Federal vational Bank of Boston. which has five city branches and with which all the other institutions were affiliated. The Federal National Bank, whose directors voted to ask the Comptroller of Currency to take charge after runs at the bank and its branches resterday, had deposits on September 29 of $28,235,238. The other banks and their latest available statements of deposit were: The Middlesex National Bank, Lowell, $4,000,000; the State National Bank, Lynn. $2,013,565; the Gloucester National Bank: the Bancroft Trust Company, Worcester, $5,876,474 the Lawrence Trust Company. Lawrence, $9.555,926: the Inman Trust Company, Cambridge, $3,808,412; the Brockton Trust Company, Brockton, $1,508,753; the Salem Trust Company, Salem, $2,115,530. Sales Gas Runs On Three Banks Three savings banks in East Boston and South Boston were experiencing small runs today. They were independent of the group affected in today's closings and officers sought to reassure depositors that their funds were safe. President Daniel C. Mulloney of the Federal National Bank expressed the opinion that with careful handling of resources depositors in his bank would receive 100 cents on the dollar. Clearing House Head Confident President Alfred L. Ripley, of the Boston Clearing House Association, announced that the association wished to assure the public that the banking situation in Boston was "in their best (Continued from Page 32) judgment" essentially sound and safe Sales in High Low Close Sales and that there was no just reason for apprehension or alarm on the part of depositors. The Federal National Bank had not been member of the Clearing House Association, he said, since May, 1930. The Boston Fish Exchange, which serves as clearing house between fishing boat captains and dealers, was closed today as result of the closing of the fish pier branch of the Federal National Bank. stp Gloucester National Shuts Gloucester National Bank. founded in 1796 and one of the oldest financial institutions in the United States. voluntarily closed its doors today after heavy demands for withdrawals had been made by depositors is associated with the Federal National Bank of Boston. Ohio Banker Blames Son For Closing Marion. Ohio, Dec. 15 /P)-Henry B. Hane, president of the Marion Na. tional Bank, said that apparent irregularities in the accounts of his son, H. W. Hane. former cashier, caused the closing of the bank today The elder Hane issued statement announcing that the directors had placed the bank in the hands of the Federal Comptroller of Currency and that national bank examiners were checking the records. "The nature and the amount of the apparent defalcations have not yet been determined, the statement said, Hane, cashier, in whose accounts the confusion in records has been found, resigned as an officer of the bank last week. He left the city at that time and his whereabouts are not now known. He was under surety bond. Until the examiners make a complete check of the records, it not possible to announce any details of the possible shortage Investment Trusts NEW YORK DE Insurance Companies New York Bank Stocks

3. December 15, 1931 The Iola Register Iola, KS
Article from The Iola Register, December 15, 1931

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MASSACHUSETTS Deposits of 58 Millions Jeopardized As Nine Houses Close Dec. Massachusetts banking institutions, aggregate deposits, according the latest statements, of 000 were closed today. The list cluded four national banks and five state banks. The central figure the closings the Federal tional bank of Boston, which has five city branches and with which all the other institutions were The Federal National whose directors voted to comptroller to take charge at bank and its branches had deposits, on other banks and their available statements of deposit Middlesex National Bank. well. the State National Lynn. the GlouNational Bank. Bancroft Lawrence Trust company, Inman Trust company. Cambridge, the Trust company, the Salem Trust company. Salem Governor Joseph Ely. from his home field. proper ures, plan for the speedy ening the institutions could accomplished that he had structed bank Arthur Guy proceed with that view. Motor Law Upheld Dec. the motor carrier taxation statute private upheld opinion livered federal The its application carriers been held in federal Constitutionality of the law had been challenged by Continental Baking company, the General the company wholesale company, operating Kansas, on various them that discrimination provisions exempting trucks within mile radius of city and trucks operated by farmers

4. December 15, 1931 The Chico Enterprise Chico, CA
Article from The Chico Enterprise, December 15, 1931

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Article Text

Institutions BOSTON, Dec. Nine Boston institutions with aggregate deposits, according to the last statements, of $58,700,000 were closed today. The list included four national banks and five state banks. The central figure in the closings was the Federal National Bank of Boston which has five city branches and with which all the other institutions were affiliated. The Federal National Bank, whose directors voted to ask the comptroller of currency to take charge after runs at the bank and its branches yesterday, had deposits, on September 29, of $28,235,238. The other banks and their latest available statements of deposits were: The Middlesex National Bank, tional Bank, Lynn, $2,013,565; the Lowell, $4,000,000; the State NaGlouchester National. $1,600,000, the Bancroft Trust company, Worcester, $5,876,474; The Lawence Trust company, Lawrence, $9,555,926; the Inman Trust company, Cambridge, $3,808,412; the Brockton Trust company, Brocton, $1,508,753; the Salem Trust company, Salem, $2,115,530. To Reopen Soon. Governor Joseph B. Ely. in statement from his home in Westfield, said that with proper measures, plan for the speedy re-opening of the institutions could be accomplished and further said he had instructed Bank Commissioner Arthur Guy to proceed with that end in view. President Daniel C. Mulloney on the Federal National Bank Expressed the opinion that with careful handling of resources, depositors in his bank would receive 100 cents on the dollar.

5. December 15, 1931 The Record Stockton, CA
Article from The Record, December 15, 1931

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Article Text

NINE BANKS EAST FORCED BOSTON Dec. (Associated Boston banking institutions, aggregate deposits, cording to the statements of $58,700,000 closed today The list included four national banks and five banks The central figure the closings the FedNational Bank Boston which has five city branches and with which all the other institutions The Federal National Bank whose directors voted to ask the Comptroller Currency take charge after runs the bank and its branches had deposits on September OTHER ASSETS The other banks their latest available statements of deposit were The Middlesex National Bank Lowell State National Bank Lynn. $2,013,565 Gloucester National Bank. The Bancroft Trust Company. The Trust Lawrence $9,555,926 The Inman Trust Cambridge The Brock Company Brockton, The Salem Trust ComJoseph Ely in statement. said that with proper measplan for the speedy reopening of the institutions could be complished MAY REOPEN SOON President Daniel Mulloney of the National Bank exthe with careful handling depositors in his bank would receive 100 cents on the dollar GLOUCESTER Mass. Dec. (Associated The Gloucester National Bank. founded in 1796 and one of the oldest financial institutions the United States voluntarily closed doors today after heavy demands for withdrawals is associated with Federal Reserve Bank Boston

6. December 15, 1931 The World-News Roanoke, VA
Article from The World-News, December 15, 1931

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FEDERAL NATIONAL OF BOSTON VOTES CLOSE DOORS Seven of Eight Subsidiary Banks Also Fail to Open. Boston Dec 15 Nine chusetts banking with the latest statements of closed today The four five The central the which five the other affiliated The Federal National Bank whose the comptroller currency take charge after runs the its branches yesterday on September 29, of banks and their latest The Middlesex Bank Lowell State National Bank. Lynn. The Gloucester tional Bank The Bancroft Trust Company Worcester. The Lawrence Trust ComLawrence The Inman The Trust ton. The Salem Trust ComSpeedy Plan Governor Joseph In from his home in Westfield said plan for speedy the and furhad Bank Commissioner Arthur Guy to proceed with that Three savings banks in East ton and South Boston experiencsmall today They were independent the group affected in toand assure depositors that their funds were President Daniel Mulloney of the Federal National Bank expressed the opinion handling of resources depositors in his would receive 100 dollar. Daniel Milloney. president of the Federal said the directors of the Federal National Bank of in order conserve the interests of voted currency to take charge of the bank". (Continued on Page Eighteen Column Five

7. December 16, 1931 Daily News New York, NY
Article from Daily News, December 16, 1931

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9 BAY STATE BANKS FAIL WITH $58,700,000 DEPOSITS sachusetts banking institutions, with aggregate deposits of $58,700,00, were closed today in the midst of the Christmas shopping season. The list included four National banks and five State banks. The central figure in the closings was the Federal National Bank of Boston, which has five city branches and with which all the other institutions were affiliated. The Federal National Bank, whose directors asked the Controller of Currency to take charge after runs at the bank and its branches yesterday, had deposits Sept. 29 of $28,235,238. Move for Reopenings. The other banks and their latest available statements of deposit were: Middlesex National Bank, Lowell, $4,000,000; State National Bank, Lynn, $2,013,565; Gloucester National Bank, $1,600,000; Bancroft Trust Company, Worcester, $5,876,474; Lawrence Trust Company, Lawrence, $9,555,926; Inman Trust Company, Cambridge, $3,808,412; Brockton Trust Company, Brockton, $1,508,753; Salem Trust Company, Salem, $2,115,530. Gov. Joseph B. Ely, in a statement from his home in Westfield, said that with proper measures a program for the speedy re-opening of the institutions could be worked out and that he had instructed Bank Commissioner Arthur Guy to proceed with that end in view. Run on Savings Banks. Three savings banks in East Boston and South Boston were experiencing small runs today. President Daniel C. Mulloney of the Federal National Bank expressed the opinion that, with careful handling of resources, depositors in his bank would receive 100 cents on the dollar. The city of Boston had $900,000 on deposit in the Federal National Bank while the State had $773,889. closed today. The bank commissioner's office estimated there were 75,000 depositors in the five State banks affected. Marion, O., Dec. 15 (/P).-The Marion National National Bank with resources of $1,911,422 failed to open today.

8. December 16, 1931 Daily News New York, NY
Article from Daily News, December 16, 1931

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9 BAY STATE BANKS FAIL WITH $58,700,000 DEPOSITS Boston, Dec. 15 (A).-Nine Massachusetts banking Institutions, with aggregate deposits of $58,700,000, were closed today in the midst of the Christmas shopping season. The list included four National banks and five State banks. The central figure in the closings was the Federal National Bank of Boston, which has five city branches and with which all the other institutions were affiliated. The Federal National Bank, whose directors asked the Controller of Currency to take charge after runs at the bank and its branches yesterday, had deposits Sept. 29 of $28,235,238. Move for Reopenings. The other banks and their latest available statements of deposit were: Middlesex National Bank, Lowell, $4,000,000; State National Bank, Lynn, $2,013,565; Gloucester National Bank, $1,600,000; Bancroft Trust Company, Worcester, $5,876,474; Lawrence Trust Company, Lawrence, $9,555,926; Inman Trust Company, Cambridge, $3,808,412; Brockton Trust Company, Brockton, $1,508,753; Salem Trust Company, Salem, $2,115,530. Gov. Joseph B. Ely, in a statement from his home in Westfield, said that with proper measures a program for the speedy re-opening of the institutions could be worked out and that he had instructed Bank Commissioner Arthur Guy to proceed with that end in view. Run on Savings Banks, Three savings banks in East Boston and South Boston were experiencing small runs today. President Daniel C. Mulloney of the Federal National Bank expressed the opinion that, with careful handling of resources, depositors in his bank would receive 100 cents on the dollar. The city of Boston had $900,000 on deposit in the Federal National Bank while the State had $773,889. besides $287,000 in other banks closed today. The bank commissioner's office estimated there were 75,000 depositors in the five State banks affected.

9. December 16, 1931 The Boston Daily Globe Boston, MA
Article from The Boston Daily Globe, December 16, 1931

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STATE'S FUNDS IN CLOSED BANKS TOTAL $1,060,889 The State of Massachusetts has slightly more than $1,000,000 tied up in six of the banks that closed their doors given out yesterday by State Treas Charles Hurley Treas Hurley said that the State had no funds in the Brockton Trust pany, the Lawrenche Trust Company the Trust closed banks, all affiliated with the Federal National Bank of Boston, in which the State has funds, and the amount in each follows: Bancroft Trust Company Worcester. $45,000 Inman Trust Company, $72,000; National Bank, Low $76,000 State National Bank, Lynn, Federal National Bank, $773,889 Gloucester National in the closed banks totaled $1,060,889.

10. December 16, 1931 The Boston Daily Globe Boston, MA
Article from The Boston Daily Globe, December 16, 1931

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Federal Bank and therefore sustain In fact, Gloucester National Bank has deposit with the Federal National Bank only $2100. On account of this rumor demands for by this the bank cannot safely honor for few at least, until has opportunity to liquidate its "The directors of this bank, therefore, voluntarily to the bank and the National bank make of this bank and make public statement of its conthis we plan to reopen the bank and do business usual There is an impression that the Gloucester subsidiary of the Federal Nothing the fact, the bank offisay Mr and States Attorney Fred H. Tarr that the Boston bank the local and that the only interest that the comes from of of in open The Gloucester, City Treas had 000 on deposit the bank Every financial in the city Mr Reed gave him assurances that be cashed on that the city would suffer In fact these institutions of the but Mr of the says there need it as the institution is bank capitalized for $100,000 and undivided profits and deposits of specialized in the Colonial foreign by which interests it in the fisheries as that has the Gloucester National as follows: president: John rence Trust caused much the minds of the depositors that the directors deemed it advisable the Banks to take charge of this bank in order to protect its depositors and conits assets. The recent statement, dated Oct showed the bank to have deposits totaling Last Tuesday Christmas members and said today that many of these checks had not Among the the City of which has there, according to City Treasurer William A. Kelleher Trust Company was established in Last May the stockholders with the Federal Bank of Boston. ing that an indictment him with the quashed The against Reed him with conspiracy to loan funds the bank on inadequate His motion to quash is based on two cause the not any specific offense contrary to the second, because the vague, indefinite, and does set ly, and formally, quired by When the indictments several defendants period in which file such pleas, and Judge blanket covering all defendants allowing of the period.

11. December 16, 1931 Omaha World-Herald Omaha, NE
Article from Omaha World-Herald, December 16, 1931

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Call Money Complete Range of Prices on the New York Stock Exchange 21/2 Per Cent official on Eastmn 8.00 or when STOCK MARKET AVERAGES day to restrict and Dividends Boston Bank tors Crash Carries Others Down for fine trading limited to nearby said statement issued by the Nine banking insti- New York, Money and Exchange. tutions, with aggregate deposits of 000, were closed today. Omaha bank clearings Tuesday regular The list included four national the both corresp day last banks and five state banks. The 30 holders central figure in the closing was New York Money stock New money the Federal tional bank Bos- that year. per cent which has five city branches with which all the other insti- to cent. tutions were affiliated. Bankers The Federal National bank, whose directors voted to ask the New York Bar Silver comptroller of currency to take higher charge after runs at the bank and Foreign Exchange its branches yesterday, had deposits, on September 29, of $28, Great Britain in others The other banks and their latest available statements of deposits were: cables, The Middlesex National bank, Demands. Any good fixed trust provides Lowell, $4,000,000; the State National bank Lynn, $2,013,565; the for the investor the essential Gloucester National bank, $1,600, element of diversification for 000: the Bancroft Trust company Worcester, $5,876,474; the Law- his funds, plus the convenrence Trust company, Lawrence, ience and protection of the $9,555,926; the Inman Trust comtrust form of holding. pany, Cambridge, $3,808, 412; the Trust company, BrockIn addition to the above, the ton. 508 the Salem Trust company Salem, $2, 115,530. important factor of recogGovernor Joseph B. Ely, in nized and experienced sponstatement from his home in Westfield, said that with proper meas- sorship is provided in ures, a plan for the speedy reCity opening of the institutions could be accomplished and further said he had instructed Bank Commissioner Arthur Guy to proceed with CORPORATE that end in view. Three savings banks in East Boston and South Boston were ex- TRUST SHARES periencing small runs today. They were independent of the group Are Sold by fected in today's closing and officers sought to reassure deposiT. H. Crane & Co. tors that their funds were safe. Sugar. Investment Trust Specialists York, Dec P.)-Raw sugar Local Handling All Types of Investment Trusts Chicago Detroit 717-718 City Nat'l Bank Bldg. there AT 0658 Reports that was further

12. December 17, 1931 The Boston Daily Globe Boston, MA
Article from The Boston Daily Globe, December 17, 1931

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PREDICTS EARLY REOPENING OF BANK Head of Gloucester National So Informs Directors Special Dispatch to the Globe GLOUCESTER, Dec 6-Following a meeting of the board of directors this evening, Pres Thomas J. Carroll of the Gloucester National Bank expressed confidence that the bank will reopen within few Mr Carroll said that National Bank Examiner W. P. McCall had explained to the meeting that, because of the demand for examiners, he would have to conduct the examination of the Gloucester bank's affairs without assistance. Mr McCall said that probably 10 days required for him complete the His then go the Comptroller of the Currency at The reopening of the bank, Pres Carroll said is, in his opinion only matter the time that will be required for the bank examiner to complete his work. In addition to the fact that the city of Gloucester amounting about $46,000 will be honored by all checking institutions in this city came the news shortly before noon that the Cape Ann National and the Gloucester Safe Deposit Companies will henor all Christmas checks of the Gloucester National, amounting to $100,000. These had been mailed few days ago. The of two Gloucester banks to cash the checks extends only to the city's account and Christmas checks and to no other accounts. This, of course, is big help to depositors and local retail dealers. The yesterday that the city of Gloucester checks would be honored is due to the prompt action an Associate Justice the District Court, Lincoln who also chairman the Board Aldermen and one of the trustees the Cape Ann Savings Bank, solidly entrenched He immediately came into the and made arrangements the other commercial banks that all checks of the city should be paid on presentation. CLOSED BANK'S DEPOSITORS WARNED OF LOAN "SHARKS" warning to the of the Highland Trust Company and the members of the Christmas Savings Club of the Somerville Institution for Savings to beware of getting into the hands of small-loan 'sharks' was issued by Mayor John J. Murphy of Mayor Murphy said there is determined effort being made by money lenders to acquire hold on the money of depositors by offering small loans to them and requiring them to pledge their equity in the as security. Mayor Murphy said that plans are being considered for the benefit of depositors and urges them to retain their

13. March 14, 1932 The Berkshire Eagle Pittsfield, MA
Article from The Berkshire Eagle, March 14, 1932

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FORMER LOCAL MAN DIRECTOR OF REOPENED BANK O'Connell, the late John O'Connell Elizabeth Street, this city has been named director the Gloucester National Bank business on Dec. 15, 1931, and has been ganized for opening probably this week Mr. manager of the LobBay The bank the oldest the country been established Gloucester.