8441. Union Trust Company (Baltimore, MD)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
trust company
Start Date
August 19, 1932
Location
Baltimore, Maryland (39.290, -76.612)

Metadata

Model
gpt-5-mini
Short Digest
57c8d733

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health, Full suspension

Other: Reconstruction Finance Corporation and Baltimore Clearing House mobilized $20,000,000 in cash and armored trucks to halt the run; later the bank participated in state/national bank holiday reorganization and reopened on a restricted basis.

Description

August 1932: a run on the Union Trust Co. triggered by rumors was halted after Clearing House and RFC made $20,000,000 available. The bank later participated in the March 1933 bank holiday/reorganization process and reopened on a restricted basis March 22, 1933. Thus sequence is run → suspension (banks closed during emergency/national holiday and state actions) → reopening on restricted basis.

Events (3)
1. August 19, 1932 Run
Cause
Rumor Or Misinformation
Cause Details
Articles repeatedly state that rumors caused the run; Secret Service sought source of false rumors that precipitated heavy withdrawals.
Measures
Clearing House and Reconstruction Finance Corporation pronounced the bank sound and made $20,000,000 in cash available; nine armored trucks delivered over $5,000,000; additional $15,000,000 was on hand at the Federal Reserve.
Newspaper Excerpt
Following mobilization of $20,000,000 in cash by the Union Trust company early today, the bank's business, agitated yesterday by heavy withdrawals, was returning to normal.
Source
newspapers
2. March 1, 1933* Suspension
Cause
Government Action
Cause Details
Banking restrictions and closures tied to the state emergency banking act and the national banking holiday; the institution was closed and reorganized under emergency banking measures before reopening on a restricted basis.
Newspaper Excerpt
Reorganization plans of the Union Trust Co. ... are to be replaced by national banks. Heavy deposits were made yesterday when the Union Trust Company ... reopened on a restricted withdrawal basis.
Source
newspapers
3. March 22, 1933 Reopening
Newspaper Excerpt
Heavy deposits were made yesterday when the Union Trust Company ... reopened on a restricted withdrawal basis. Officials ... said more than $1,000,000 in new accounts has been received ... Old depositors ... 5 per cent of their balances has been placed to their credit in a new account, pending reorganization.
Source
newspapers

Newspaper Articles (16)
1. August 19, 1932 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, August 19, 1932

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TWENTY MILLION DOLLARS SAVED ANOTHER BANK Run Started on Battimore Trust Co, But Money Flowed in By Truck Load and Stopped It All Baltimore, Aug 19-(UP)-Fol- lowing mobilization of $20,000,000 in cash by the Union Trust company early today, the bank's business, agitated yesterday by heavy withdrawals 9. was returning to normal, it was indicated today about an hour after the bank opened. For the first hour today, withdrawals from the central office of the bank and its 18 branches were heavy but slowed down later. Early today nine steel armored trucks backed up to the federal reserve bank and were loaded with crisp new bills. Escorted by motorcycle officers to the central officers and guarded by armed men, these trucks carried over $5,000,000 to the central office of the Union Trust company. And, in the federal reserve bank $15,000,000 more was on hand ready to be rushed to any of the branches as soon as a Union Trust company official asked for any part of it. The money was made available about 3 a. m. today by the reconstruction finance corporation after Baltimore banking officials had notified them of the withdrawal from the local bank. Bank officials said there was absolutely no reason for the alarm which caused hundreds of depositor to take their money out yesterday.

2. August 19, 1932 Middletown Times Herald Middletown, NY
Article from Middletown Times Herald, August 19, 1932

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4,947 BANKS GET A BILLION OF U. FUNDS Continued from Page One months has been partially checked. and since the end of March the volume of bank deposits has been "In some Federal Reserve districts there has been an actual increase in deposits. Mills said. adding that the "blind fear" finally lifted with the return flow of gold to America. $20,000,000 IN NEW CASH CHECKS RUN ON BANK mobilization of $20,000,000 in cash by the Union Trust Company early today. the bank's busines. agitated yesterday by heavy withdrawals. seemed to be returning to normal, it was today about an hour after the bnk opened. For the first hour today, withdrawals from the central office of the bank and its eighteen branches were heavy. but slowed down later. Early today nine steel armored trucks backed up to the Federal Reserve Bank and were loaded with crisp. new bills. Escorted by motorcycle officers and guarded by armed men. these trucks carried more than $5,000,000 the central office of the Union Trut Company. And, in the Federal Reserve Bank $15,000,000 more was on hand ready to be rushed to any of the branches soon Union Trust Company official asked for any part it. The money was made available about thre m. today by the ReFinance Corporatoin after Baltimore banking officials had notified them of the withdrawal from the local bank. BARREN LOTS NOW GARDENS HOQUIAM, Wash.-Scores of vacant lots, parking strips and plots adjoining industrial plants, heretofore barren. will produce record crops this welfare workers say. Scores of needy families with an eye to the future have planted in every available bit of land.

3. August 19, 1932 The News Frederick, MD
Article from The News, August 19, 1932

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Union Trust Co., Baltimore, To Meet Every Demand. DANGER TO Baltimore, Aug. statement of confidence in the ability of the Union Trust Company of Baltimore meet every demand was made by W. Graham Boyce. executive dent, about hour after the bank an had opened for business today. The bank was subjected heavy withdrawals yesterday and early today. The statement: Union Trust Company is meeting every demand made upon The announcement of bank's position made early today well received. The bank stands ready to pay any positor cash had made available over through the co-operation of the Reconstruction Finance Corporation Washington and officials the Baltimore Clearing House. In statement following conference last the offices of the Baltimore branch the Federal Reserve Bank John M. Dennis. president of the Union Trust Company. "The Union Trust Company will have least in cash availfor its needs in position pay off all depositors who desire withdraw their Finance Corporation co-operating to solve the probcaused by the and withdrawals. The bank solvent and the depositors are and have been any danger whatsoever."

4. August 20, 1932 The Washington Daily News Washington, DC
Article from The Washington Daily News, August 20, 1932

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U.S. Agents Trace Rumor That Caused Run on Bank Withdrawals From Baltimore Trust Company Halted by Declaration of Officials By United Press BALTIMORE Secret Service agents sought today to trace the source of rumors which caused a run on the Union Trust Co. The institution is one of the city's largest banks and has 85,000 depositors. The run was stopped yesterday after clearing house and Reconstruction Finance Corporation officials had pronounced the bank sound and made $20,000,000 of cash available to it.

5. August 20, 1932 Times Union Brooklyn, NY
Article from Times Union, August 20, 1932

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RUN ON BANK PROBED Secret Service Agents Trace Baltimore Rumors. Service agents sought today trace the source of rumors which caused run on the Union Trust Company. The one city's largest banks and has $5,000 depositors. The stopped yesterday after Clearing House and Reconstruction Corporation officials prouounced the bank sound made of available to

6. August 20, 1932 Times Union Brooklyn, NY
Article from Times Union, August 20, 1932

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RUN ON BANK PROBED Secret Service Agents Trace Balti- more Rumors. Baltimore, Aug. Service agents sought today trace source rumors which caused run the Union Trust Company. The of city's largest banks and has depositors. The stopped yesterday after Clearing House Reconstruction Finance Corporation of ficials prouounced the bank sound made of cash available to it.

7. August 20, 1932 Times Union Brooklyn, NY
Article from Times Union, August 20, 1932

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RUN ON BANK PROBED Secret Service Agents Trace Balti more Service agents sought today trace the source of rumors which caused run the Union Trust Company. The the largest banks and The run was stopped yesterday after Clearing House Recon struction Corporation ficials prouounced the bank sound and made $20,000,000 of cash available to

8. August 20, 1932 Times Union Brooklyn, NY
Article from Times Union, August 20, 1932

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RUN ON BANK PROBED Secret Service Agents Trace Baltimore Rumors. Service agents sought today to trace source of rumors which caused run on the Union Trust Company. The institution is one of the city's largest banks and has depositors. run stopped yesterday after Clearing House Reconstruction Corporation ficials had the bank sound and made of cash available to

9. August 21, 1932 Honolulu Star-Advertiser Honolulu, HI
Article from Honolulu Star-Advertiser, August 21, 1932

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RUSHES AID BANK Secret Service Agents Seeking Source of False Rumors (United Press Radio) BALTIMORE, Aug. source rumors which caused run on the Union Trust Company, one of this city's largest banks, was being sought by secret agents today. The run was stopped after the clearing house and Finance officials nounced the bank sound and made cash available. NEW YORK, Aug. 16 bank suspensions were recorded ir. the United States during the past new record for the year, the "American Banker" reported toWASHINGTON, Aug. The Reconstruction Finance Corporation today loaned the state Wisconsin $3,000,000 to meet current emergency relief.

10. August 21, 1932 The Register Santa Ana, CA
Article from The Register, August 21, 1932

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Halt "Whisper Run" On Baltimore Bank BALTIMORE, Md., Aug. 20. ents sought today to trace the source of rumors which caused run on the Union Trust company, of the city's largest banks. It has 85,000 depositors. The run was stopped yes. terday after clearing house and reconstruction finance corporation officials nounced the bank sound and made $20,000,000 of cash available to it.

11. March 16, 1933 Evening Star Washington, DC
Article from Evening Star, March 16, 1933

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CONFIDENCE SHOWN IN NEARBY BANKS Virtually Every Institution in Metropolitan Area Gains in Deposits. Reassured by the display of confidence on the part of depositors yesterday. bank officials in nearby States eased the restrictions under which some of the institutions were operating and licensed several new ones to open today. Meanwhile the bankers themselves in institutions that have not been permitted to resume operations on an unrestricted schedule devoted their full time to plans that would permit them to get back on a 100 per cent basis. In many instances these included recrganization The Bank of Bowie was the only one in the vicinity of Washington which demonstrated its strength to such an extent in a single day that the 2 per cent withdrawal restriction on it was promptly lifted. Receiving Tellers Busy. Without exception the banks in the metropolitan area surrounding the Capital City reported business to be brisk at the receiving teller's window on the first day they have been permitted to open since the national banking holiday while the paying tellers found themselves for the most part with time hanging heavy on their hands. In addition to lifting the ban at Bowie, State Bank Commissioner John J Ghingher of Maryland permitted the Bank of Hampstead, Carroll County. to allow 10 per cent withdrawals today instead of 2 per cent He also licensed the Mercantile Savings Bank of Baltimore and the St Michaels Bank Talbot County, to reopen on a 2 per cent basis. These institutions were closed yesterday Another Maryland bank which will open for the first time today is the Forest Hill State Bank, Harford County. which will function on a 100 per cent basis. Reorganization plans of the Union Trust Co. of Baltimore and the Baltimore Trust Co were reported progressing satisfactorily These two large institutions. fami iar to most Maryland ers, are to be replaced by national banks. Record in Deposits. Officials of the 10 banks that have resumed operatic in Montgomery County reported today that deposits at the end of business yesterday aggregated nearly twice those of any previous day in their history The deposits made in one bank located in the metropolitan area totaled nearly $3,000,000, while those of another institution in the same district threatened the $2,000.000 mark R. Weir Waters, president of the Takoma Park Bank. said this morning that more than $2,700,000 was placed on deposit by patrons of that institution and that that figure far surpassed the total of withdrawals. The Silver Spring National Bank received $66,725.36 for deposit during the day, according to Ira C. Whitacre. cashier, who declared that the amount of deposits exceeded the total withdrawals by $45,725.36. Both Waters and Whitacre asserted that withdrawals were mainly on checks which were issued before or during the Maryland banking holiday and President Roosevelt's proclamation and had accumulated at the bank during the two periods. Some Gold Received. Regular depositors, they declared, showed no inclination to make withdrawals except for groceries. light, heat and other household necessities. Two other banks in the metropolitan district handled exceptionally large amounts of deposits. S. Walter Bogley, vice president of the Bank of Bethesda, and A. L. Votaw. cashier of the Citizen's Bank of Takoma Park, both said that deposits at their respective institutions were twice as much yesterday as they are normally. All four banks in the area immediately adjacent to the District of Columbia took in some gold in small amounts from their depositors. Bogley said that between $10,000 and $15,000 in gold was turned in at the Bank of Bethesda during the day. No heavy gold deposits were made by any one person, however. he declared. The Farmers Banking & Trust Co. of Rockville and the Bank of Damascus. the only members of the group of 10 county banks open for business that are operating on a restricted withdrawal basis, continued to grant its depositors 2 per cent withdrawals today. Awaits U. S. License. The Montgomery County National Bank at Rockville, the only bank in the county which is not open, was still awaiting today its license from the Federal Reserve Bank at Richmond to resume business. The bank had applied for a license to reopen on a 100 per cent withdrawal basis, according to the cashier. The banks of Prince Georges County were still taking deposits rapidly today, although business was much nearer normal than yesterday which witnessed a rush of depositors who threatened to swamp employes of several financial institutions in their eagerness to bank their money Another Prince Georges bank was opened to do business on a 100 per cent basis this morning- the Bank of Bowie was so to as it said brisk cashier, -and handle that according business it the office in arrived. to force deposits William was Luers unable Luers, he believed the restriction placed on

12. March 21, 1933 The Baltimore Sun Baltimore, MD
Article from The Baltimore Sun, March 21, 1933

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Distribution Ordered thought the act was going to be merely restriction on withdrawals stop run," he said, "and scribbled down section which would have exempted only those receivers' deposits which distribution ready had been ordered by the court." Distribution of the $400,000 among Chesapeake Bank depositors was ordered the day Governor Ritchie "If and when the plan becomes efissued his first proclamation, fective, the sound book value of the gurating the following day the stock acquired will be about first Maryland's bank holidays. per share, without regard to its earnApproximately $85,000 out of the $400.- potentialities, which, in view 000 was in the Union Trust Company the proposed readjustments, should be and like amount in the Baltimore such as to justify valuation subTrust Company, Judge O'Dunne said. stantially in excess of its book value. Mr. Barroll, following Mr. Machen. questioned the constitutionality of the More Reserve Banks bill as whole. It was, he said, an exercise of the State's Authorized To Reopen police power. there not Richmond, Va., March 20 (P)-The state war, but just small panic Federal Reserve Bank of Richmond among few people.' Rawis Upholds Act Mr. Rawls, following Mr. Barroll, at length into legal precedents for the act and upheld its constitutionality. He dwelt especially on those sections pertaining to city, county and deposits, bank county reserve deposits and receivers' funds, sections being the ones on which the plaintiffs' attack has been focused date. Holding that if they be regarded preferential they unconstitutional, Mr. Rawls argued that they should be as priorities not in which event they would be He reasoned that the bank act emergency gives the city, counties and state and other parties the only right withdraw their deposits in advance of other depostors. does not give them the right withdraw their deposits full doing the chances other depositors getting out their posits in full would be lessened, he said. The priorities sections are inoperative. Mr. Rawls continued, with spect banks that have not been permitted to reopen. As the determination of which banks public moneys so forth can be drawn from without endangering payment of other depositors in full, Mr. Rawls said that involved risk but one that would have be taken. Judge Eli Frank. of the Superior Court. and Judge Charles F. Stein, of the City are sitting in the case with Judge O'Dunne the latter's invitation.

13. March 22, 1933 The Washington Times Washington, DC
Article from The Washington Times, March 22, 1933

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DEPOSITS HEAVY IN REOPENED TRUST FIRMS 2 Big. Baltimore Institutions on Limited Basis Except For New Accounts BALTIMORE, March 22.Heavy deposits were made yesterday when the Union Trust Company and the Baltimore Trust Company reopened on a restricted withdrawal basis. Officials of the Union Trust Company said more than $1,000,000 in new accounts has been received, the money being placed in bailee accounts which are subject to 1.00 per cent withdrawal at any time. New For Old Old depositors of the institutions were informed that 5 per cent of their balances has been placed to their credit in a new account, pending reorganization. Both trust companies announced they will continue their efforts to gain permission to reorganize as national banks. The Eastern Shore Trust Company, largest institution in the Stat: .outside of Baltimore, sent its plan for reorganization into a member of the Federal Reserve System to State Banking Commissioner John J. Ghingher for approval. Test Suit on File A test suit on the validity of the State emergency banking bill, passed by the legislature shortly before the national bank holiday was ordered, continued in circuit court today. The suit was filed on behalf of certain depositors of the Baltimore Trust.

14. July 8, 1933 The Washington Times Washington, DC
Article from The Washington Times, July 8, 1933

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OTHERS DENIED PRIORITY ON DEPOSITS Baltimore City Loses Out When Tribunal's Decision Fixes Closed Banks' Status ANNAPOLIS, July 8.-No funds in closed banks of Maryland, with the possible exception of State moneys, can be given preferred claim over other deposits, the Court of Appeals has decided in a series of opinions resulting from attacks on the emergency banking act. Restriction of all deposits is within the power of the State, the court decided. No Priority Granted In the opinions written by Chief Judge Carroll T. Bond, it was held that under the new banking act no priority for deposits could be granted Baltimore city, the bank commissioner as receiver for the defunct Chesapeake Bank of Baltimore, individuals having money held in trust, or taxpayers who paid their levy bills to one of the closed banks prior to February 28. The question of priority of State funds, raised in the appeal of the State Roads Commission that its funds in the Union Trust Company be given preference as they are State funds, was not decided. An order for reargument of that point was issued with no date set by the court. City Loses Out Granting of priority to the city over deposits in the Baltimore Trust Company would be "a partial, unequal appropriation of rights and interests of deferred depositors and cannot be supported under the police power of the State or any emergency power and must therefore be held invalid," the court ruled.

15. July 18, 1933 The Washington Times Washington, DC
Article from The Washington Times, July 18, 1933

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BONDING FIRMS AGREE TO PAY ANNAPOLIS. July 18.-An agreement has been reached with 10 of the 12 surety companies bonding Maryland deposits in the Union Trust Company, Baltimore, under the terms of which a cash payment of $994,000 will be due on the $2,000,000 deposits as soon as the institution begins to operate on its reorganized basis. The bonding company will guarantee to the State another $594,000 on the $2,000,000 for a period of five years. The State also will hold claims of $412,000 against two surety companies in the hands of receivers. Governor Ritchie revealed that similar agreements have been made concerning $574,873 of State funds on deposit in the Baltimore Trust Company.

16. December 6, 1933 The Evening Sun Baltimore, MD
Article from The Evening Sun, December 6, 1933

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MULLER TO APPEAR UNION TRUST FREEING LOTTERY HEARING CHRISTMAS Heads Group To Visit Annapolis In Interest Of Legalization Supported by least four other Baltimoreans interested in repealing constitutional provisions prohibiting lotteries in Maryland, E. Lester Muller, President of the City Council, will Annapolis tomorrow to appear fore the House Committee on Constitutional Amendments. Muller said he would take with him committee including Richard Cleveland, attorney; Barton, Jr., attorney; Frederick Stieff and Gideon N. Stieff. Dr. Alan Chesney, dean of the Johns Hopkins Medical School, may accompany them. Hearing Tomorrow hearing on proposed amendment the State Constitution, which would legal, has for Muller and his party will leave Baltimore by The hearing was ranged at Muller's Delegate Douglas H. Gordon, chairof the committee. The repealer, introduced by Delegate Philip Wallace (Dem., Sixth Baltimore district), is now before the committee. Cites Other Countries Asked what argument he would Muller said: "There only one argument, that that in time like this the and city should lottery for their own benefit new source of revenue and thereby relieve the taxpayers Other countries, France and Ireland, for instance, are already using Plans To Make $6,000,000 Available On First Day Of Reopening Officials of the Union Trust Company of Maryland, who last night nounced the capital issue of $500,000. today were moving to complete final details for an early reopening of the The reopening will before Christmas, they said, but the definite day cannot be fixed until the capital scriptions have been paid in cash, the Federal Reserve authorities have given their final approval on the plication for admission into the serve System. $6,000,000 Available Approximately $6,000,000 of deposits will be made available without restriction for the use of depositors on the day of reopening, according to estimates which previously have been nounced by Benjamin H. Brewster, president of the trust company. Mr. Brewster absent from the day and could not be reached for Notices were mailed last night the subscribers the $500,000 tal notes asking for by Friday. This will enable the trust to give notice to the Federal pany Reserve Bank at Richmond this week that the additional capital has actually The capital was specified by the Federal Reserve Board Washington, following several hearings on the application, condition membership. Plans For Depositors Simultaneoulsy with the reopening the institution will send depositors, in addition credits for twenty per cent. cash allowance on their deposits of the time of the closing of bank spring, certificates deposit for forty per cent. of the total, and certificates of beneficial interest for forty per cent. Mr. Brewster several times has stated his belief that the certificates of deposits will be made available for unrestricted use within relatively short period after the opening. of the trust company Federal will automatically insure its deposits der the deposit insurance of the Federal Deposit Insurance Corporation, which effective January Under the temporary plan all up to $2,500 will be insured in