8472. National Bank (Chesapeake City, MD)

View Charter #6845 on SPMC

Bank Information

Episode Type
Run Only
Bank Type
national
Bank ID
6845
Charter Number
6845
Start Date
April 7, 1922
Location
Chesapeake City, Maryland (39.531, -75.807)

Metadata

Model
gpt-5-mini
Short Digest
b56b55c6

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health, Capital injected, Books examined

Other: Asset takeover: Elkton Banking and Trust Company took over assets and guaranteed deposits.

Description

Multiple articles (Apr 7–8, 1922) describe a run sparked by false rumors. The Elkton Banking & Trust Co. rushed cash, then agreed to take over assets and guarantee deposits; the bank did not suspend and the run died down. Cause attributed to false rumors (some articles mention a landowner's paper or difficulty cashing government paychecks as triggers).

Events (3)
1. June 19, 1903 Chartered
Source
historical_nic
2. April 7, 1922 Run
Cause
Rumor Or Misinformation
Cause Details
False rumor that the bank was carrying paper of a local landowner / about to close; reports also tied to difficulty cashing government payroll checks—rumors stirred depositors to demand cash.
Measures
Borrowed cash from a Wilmington bank and Elkton Banking & Trust Co.; Elkton took over assets and guaranteed payment of all deposits.
Newspaper Excerpt
Current rumor that the National Bank of Chesapeake City was in a condition ... culminated today in a run; An agreement ... Elkton ... has taken over the assets ... and guarantees all deposits.
Source
newspapers
3. May 12, 1922 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (7)
1. April 7, 1922 Evening Journal Wilmington, DE
Article from Evening Journal, April 7, 1922

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Article Text

CHESAPEAKE CITY'S BANK HIT BY "RUN' (Continued From First Page.) Banking and Trust Company and also to a Wilmington bank for ready cash to meet the demands of the depositors. The Wilmington bank rushed a messenger to Elkton by train with cash where he was met by another messenger from the Elkton bank and the two were rushed to Chesapeake by automobile. At 1 o'clock this afternoon an official of the Elkton Banking and Trust Company issued the following statement: "An agreement has been reached between the Elkton Banking and Trust Company and the National Bank of Chesapeake City whereby the Elkton Banking and Trust Company has taken over the assets of the National Bank of Chesapeake City and guarantees all deposite." Harvey H. Mackey, former Sheriff of Cecil county, is president of the Elkton Banking and Trust Company. James S. Hopper, for many years superintendent of the Chesapeake and Delaware Canal, is president of the Chesapeake City Bank The assets of the latter bank. it is said. amount to about $400,000. and of this amount It is said about $300.000 are deposits. The capital stock is $25,000 and the surplus and undivided profits about the same amount. The National Bank of Chesapeake City was established about 15 years ago.

2. April 7, 1922 Every Evening, Wilmington Daily Commercial Wilmington, DE
Article from Every Evening, Wilmington Daily Commercial, April 7, 1922

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Article Text

CHESAPEAKE CITY BANK EXPERIENCED RUN THIS MORNING Rumor Stirred Depositors Who Demanded Money and Received It. MADE REPORT ASSURING Special Dispatch to Every Evening Elkton, Md., April 7.-Current rumore that the National Bank of Chesa. peake City was in a condition similar to the Second National Bank of this place culminated today in A run on the former institution Excited depositors began calling at the bank and demanding their money at an early hour and a few hours afterward the street in front of the bank, which does a business of about $400,000 a year, was crowded with anxious persone. To meet the heavy demand that the run caused on the funds of the bank, the officials were obliged to borrow ash from other institutions. About $20,000 was borrowed from a bank in Wilmington, and another sum from the Filkton Banking and Trust Co. which has agreed to support the Cheespeake City institution Up to noon today the bank officials were etill paying out cash over the counters James F. Hopper. formerly supere Intendent of the Chesapeake & Delaware Canal, is president of the bank William P. Davis, former county commissioner. is vice-president and Ray 1 Bouley is cashier Mr. Hopper, the president, was formerly vice-president f the Second National Bank of Elk K ton. severing hie connection with this institution to found the bank at Chempeake City. The bank has a capital, it is said, of $26,000. with surplus and undivided profits amounting to about $23,000. It was established about 15 years ago. Officials of the bank gave out the following statement to Inquirera: "An agreement hae been reached between the Kikton Banking and Trust Co., and the National Bank of Chosapeake City whereby the Elkton Banking and Trust Co. has taken over the assets of the National Bank of Chesapeake City and guarantees pay ment of all deposits.

3. April 8, 1922 Evening Journal Wilmington, DE
Article from Evening Journal, April 8, 1922

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Article Text

BANK RUN STOPS AT CHESAPEAKE Elkton Trust Co. Buys Stock at $40 Plus Liquidating Value SOME DEPOSITORS RETURN MONEY Special to The Evening Journal. ELKTON, Md., April 8. - After the announcement was made at Chesapeake City yesterday afternoon that the Elkton Banking and Trust Company had by agreement taken over the assets and guaranteed all deposits of the National Bank of Chesapeake City, the run on that bank, which was started by a rumor in the morning, ceased. It was stated today that while many depositors withdrew their accounts yesterday, the actual amount of money taken out was not so large, as most of those who withdrew were small depositors. Irving T. Keppler, treasurer of the Elkton Banking and Trust Company, went to Chesapeake City yesterday afternoon and made the announcement relative to that company guaranteeing the deposits. The run started soon after that. The bank kept open more than an hour after the usual time for closing yes(Continued on Page Two.)

4. April 8, 1922 Every Evening, Wilmington Daily Commercial Wilmington, DE
Article from Every Evening, Wilmington Daily Commercial, April 8, 1922

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Article Text

BANK FLURRY ENDS, SAFETY IS ASSURED TO ALL DEPOSITORS Chesapeake City Concern is Taken in Charge by Elkton Banking and Trust Co. CAUSE OF THE BIG SCARE Special Correspondence Every Evening Elkton, Md., April 8.-After an excited time yesterday, when hundreds of depositors of the National Bank of Chemapeake City made a wild seramble to get to the Institution and withdraw their funds, following A false rumor that the bank would close Its doors. all la quiet and peaceable In the little town at the west end of the Chemapeake & Delaware Canal, today With the Elkton Banking and Trust Co. taking over the Chesapeake City Pank's auneta the depositors felt con fident their money was safe again The managers of the Elkton Bank Ing and Truet Co. made a masterful stroke when they jumped in to help the canal bank In Its troubles, which came without a minute's warning. the bank not having sufficient cash In the vaults to meet the excited run that was made on the Institution. The Elicton Trust Co. hurried to the paststance, and on finding more ready cash was needed, made a call on one of Willington's strong Institutions, which supplied cash money enough for all demands Thursday, a national bank examiner visited the Chesspeake City Bank and found it in good condition Yesterday the government paid off its large force of employes by checks and It was some holding up in cashing those checks that is reported to have started the run. The Chemapeake City Bank did not have enough ready cash on hand to pay the government's checks and they quietly requested the holders of such checks to wait until Later in the day, when they could get the ready cash from another institution. This caused some of the workmen to get angry and the false report was started that the bank was about to fail A meeting of the Chesspeake City bank's officials and the Elkton Banking and Trust Co., is being held today, when the latter Institution will take over the Chesapeake City bank and operate it as one of its several branch banks The acquiring of the Chempeake City bank will make the Elkton Trust Co., nearly a two-million dollar concorn. d It is reported the Elkton Trust Co. has had its eye on the Chesapeake City bank for some time and the opene ing of yesterday gave the chance to take it over W The Elkton Trust Co. will now have K. branches at Cecilton, Chesapeake City e Elkton and Rising Sun. It is a grow ing Institution, having been organize! about ten years ago.

5. April 8, 1922 The Wheeling Intelligencer Wheeling, WV
Article from The Wheeling Intelligencer, April 8, 1922

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Article Text

GET MONEY ON DEMAND Wilmington Del. April F--Frightened to positors, excited by rumors or troilble made a run on the aNtional Bank of Chesapeake City, Md. today. Bank officials met the run by payment on demand Later an agreement was made with the Eikton Banking a Trust company to take over the assets of the Chesapeake City bank and guarantee payment of all deposits

6. April 8, 1922 The Daily Banner Cambridge, MD
Article from The Daily Banner, April 8, 1922

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Article Text

FALSE RUMOR PERILS BANK Depositors Soon Satisfied When Funds Are Guaranteed. Chesapeake City, Md., April 8.-Unfounded rumors that the National Bank of Chesapeake City had been carrying the paper of a land owner who had been caught in stock market speculation caused a run on the bank. Several hundred depositors took part. The bank officials sent a call to the Elkton Banking and Trust company, which sent representatives and a guarantee arrangement was reach ed for the depositors. The Chesapeake bank has a capital of $25,000 and undivided profits of $23,000. It has been doing business fifteen years

7. April 12, 1922 Newark Post Newark, DE
Article from Newark Post, April 12, 1922

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Article Text

Exciting Time In Chesapeake City Run on Bank There Started by False Rumor-Elkton Concern Interested Chesapeake City had more excitement last Friday morning than it has had in the past few years all put together. There was a run on the National Bank of Chesapeake City. This run is said to have been due to a report circulated that a land owner in the vicinity of the town was heavily involved to the bank and the doors of the institution were about to be closed. The bank was not prepared to meet the heavy demand for cash and an to Elkton appeal the Banking made and Trust Co., who hurried all available cash to the assistance of the Chesapeake City bank. A bank in Wilmington was also appealed to and forwarded cash to help meet the demand of depositors. Officials of the Elkton Banking Trust Company then went into conference with the board of directors of the Chesapeake City National Bank and by noon a notice was issued reading as follows: "An agreement has been reached between the Elkton Banking and Trust Company and the National Bank of Chesapeake City whereby the Elkton Banking and Trust Company has taken over the assets of the National Bank of Chesapeake City and guarantees all deposits." This notice quited the excited depositors and the run soon died down. A large number of those who had drawn out their money in the morning returned durng the afternoon and redeposited when they were assured that the bank was perfectly solvent and that they had the backing of the Elkton Trust Company. Thursday a National Bank Examiner paid his annual visit to the Chesapeake City Bank and found its condition in good shape and an effort will be made to ferret out the party that started the false report which caused the run. The bank was organized fifteen years ago with James S. Hopper, its president, former County Commissioner William B. Davis, of Cecilton, vice-president, and Raymond J. Goulay, cashier. It has a capital of $25,000 with nearly $23,000 undivided profits and surplus. The statement shows that they have been doing over $300,000 worth of business and were gaining each year. The taking over of the Chesapeake City Bank by the Elkton Trust Company will give this corporation, banks at Ceciltown, Chesapeake City, Rising Sun and Elkton.