8464. Bank of Bethesda (Bethesda, MD)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
February 25, 1933
Location
Bethesda, Maryland (38.981, -77.100)

Metadata

Model
gpt-5-mini
Short Digest
3a1a8a85

Response Measures

None

Description

Bank was closed as part of Maryland's gubernatorial bank holiday beginning Feb 25, 1933 (government action). It reopened on a 100% basis mid-March (articles dated March 15–16, 1933). No run on this specific bank is described.

Events (2)
1. February 25, 1933 Suspension
Cause
Government Action
Cause Details
Governor Albert C. Ritchie proclaimed a three-day state bank holiday closing banking institutions across Maryland.
Newspaper Excerpt
the temporary closing of banking institutions throughout the State of Maryland... the banks in Montgomery County closed by the Governor's order are the Citizens Bank of Takoma Park, Silver Spring National Bank, ...
Source
newspapers
2. March 15, 1933 Reopening
Newspaper Excerpt
The Silver Spring National Bank... opened this morning on a 100 per cent basis... Ira C. Whitacre, cashier, Silver Spring National Bank said, We opened this morning on a 100 per cent basis and deposits exceeded withdrawals.... (Evening Star, 1933-03-15/16).
Source
newspapers

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

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Article Text

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

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

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Article Text

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

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

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Article Text

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