8480. Chevy Chase Savings Bank (Chevy Chase, MD)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
March 6, 1933
Location
Chevy Chase, Maryland (38.971, -77.076)

Metadata

Model
gpt-5-mini
Short Digest
4f2492cd

Response Measures

None

Description

The Chevy Chase Savings Bank was closed in the March 1933 banking holiday, placed under conservator/receiver, and never reopened as an independent bank. Riggs National Bank purchased assets and opened a branch in the old building on 1933-06-15, while the closed bank was liquidated by a receiver who paid dividends over the next years (60% initial upon Riggs purchase, further dividends culminating in 100% by 1936). No contemporaneous run on this specific bank is described in the articles; the closure was part of the bank holiday and conservatorship/receivership process.

Events (7)
1. March 6, 1933 Suspension
Cause
Government Action
Cause Details
Closed during the March 1933 bank holiday; lacked government license to operate and was managed by a conservator/receiver.
Newspaper Excerpt
The bank was closed March 6, 1933, and the receiver was appointed March 15, 1933.
Source
newspapers
2. March 15, 1933 Receivership
Newspaper Excerpt
the receiver was appointed March 15, 1933. Cary A. Hardee, receiver. Checks will be available... the receiver said that since his appointment, November 15, 1933, the entire expense of the receivership... (articles refer to Cary A. Hardee as receiver).
Source
newspapers
3. June 15, 1933 Other
Newspaper Excerpt
The Chevy Chase Bank will be opened by Riggs on June 15 It will be the parent bank's seventh branch. ... Riggs National Bank purchased sufficient assets of the bank ... and on June 15, 1933 opened a branch of its institution in the former home of the bank.
Source
newspapers
4. June 19, 1933 Other
Newspaper Excerpt
Under terms of the contract between Riggs Bank and the former conservator of Chevy Chase Bank, as of June 19, 1933, no additional dividend could be paid until after two years. ... The 60 per cent dividend was later paid following the Riggs purchase of the old bank.
Source
newspapers
5. July 11, 1934 Other
Newspaper Excerpt
When the bank closed its doors had deposits aggregating $732,203 and has since paid out in dividends $468,668. Its prime assets ... were taken over by the Riggs National Bank. ... The bank owes about $700,000 to the RFC.
Source
newspapers
6. June 24, 1935 Other
Newspaper Excerpt
Another dividend of somewhere between 15 and 20 per cent probably will be paid shortly to more than 5,000 depositors in the old Chevy Chase Savings Bank ... This becomes possible because of the expiration of a contract on substitution of assets with Riggs National Bank, now operating the institution as a branch.
Source
newspapers
7. August 15, 1936 Other
Newspaper Excerpt
FINAL DIVIDEND BY SAVINGS BANK TO BEGIN MONDAY ... the final dividend of 20 per cent, which will in full of the closed Savings Bank, announced today by Cary A. Hardee, receiver. ... The present 20 per cent will bring present dividend payments to 100 per cent.
Source
newspapers

Newspaper Articles (8)
1. May 23, 1933 Evening Star Washington, DC
Article from Evening Star, May 23, 1933

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Article Text

BUSINESS IN FIFTH DISTRICT Richmond Reserve Bank Reports Wholesale and Retail Trade Gains. BY EDWARD C. STONE. Business improvement continues in the Fifth Federal Reserve district with retail and wholesale trade. as well as industry, feeling more optimistic than has been the case for more than a year according to reports from the Federal Further Reserve Bank of Richmond reports from this territory state Excellent weather has benefited the retailers, and Summer goods are movtag satisfactorily Wholesale lines are feeling the effects of replacement orders and several lines report excellent gains over last month and over the same year. of last month Industrial activities have been expanced in tobacco. cotton rayon wood products. tin cans and paper and fiberboard containers While the number of workers has not jumped materially the hours of operation have been ex tended in numerous plants, resulting in larger pay checks In its weekly review of conditions in all the 12 Federal Reserve districts the New York Times observes that an increase employment and advancing wage scales in several districts were among the more important improvements noted in the week The likelihood of generally higher taxes was only moderately depressing Attention of investors was focused generally on the railroads and the utilities While the co-ordination plan has Government for the former which have some deadwood to clear away during the recovery the latter appear to be facing mounting burdens Especial importance, the review concludes attached to the administra tion's policy with regard to manufacturing industries and to the plan to modify application of the anti-trust laws in order to alter competitive conditions and eliminate waste. Chevy Chase Bank Congratulated. Depositors in the Chevy Chase Sav ings Bank extended many congratulaC tions today to President John Walker and his board of directors over the sale of the bank to the Riggs National Bank and the resulting announcement that the depositors and shareholders will soon have freed 60 per cent of their deposits. In fact 65 per cent of the deposits will be freed by the addition of per cent. which have been held in bailee account and which are available at any time Depositors so far heard from con sider the move the very best that the Chevy Chase Bank officials could make Attempts to reopen the bank an in dividual unit had failed After 10 weeks the bank still lacked a Govern ment license to operate It was also known that Treasury officials wished to see fewer banks in Washington, which clearly called for consolidations The Chevy Chase officials preferred to become branch of the largest bank in the city than to join any of several consolidation plans. The present deal is not merger but an outright pur chase by Riggs of the live assets of the bank the other assets to be sold by the conservator, John C Walker to the best advantage possible This means that in addition to the 60 per cent of deposits to be freed by Riggs. further payments will be made to depositors as other assets are 'thawed out. The Chevy Chase Bank will be pened by Riggs on June 15 It will be the parent bank's seventh branch President Robert V. Fleming and his associates are enthusiastic over the outlook. The important move is the first definite settling of the future of any of the 13 local closed banks, although most of the others are hard at WORK on merger or other plans. Bank Makes Additional Payment. Judge Eugene O'Dunne in Baltimore has signed an order in Circuit Court authorizing the receiver for the Chesa peake Bank of Baltimore. which closed December 9. 1930, to make 10 per cent distribution to depositors of the institution. The payment will be made around July 1. This will bring the total amount paid to depositors and creditors to 32.5 per cent as payment of 22.5 per cent was made December 1931 The Homewood Bank at Pittsburgh Pa. with capital of $100,000. has been admitted to Federal Reserve member ship. according to the Federal Reserve Board This brings to 45 the admissions to the system since the bank holidav. There have been 25 voluntary withdrawals Indicated building expenditures in April 21.2 per cent. as compared with March but dropped 51.3 per cent from April, 1932. the Bureau of Labor Statistics reports. Total opera tions were estimated at $29,756,038 against $24,560,176 in March The April increase was higher than the inshown when comparing these two months in any of the previous three years. Norfolk Southern Railroad has issued its pamphlet report for year ended De cember 1932 showing net loss of $1,103,406 after taxes and charges. comin paring with net loss of $498,043 1931 The statement covers entire fiscal year. corporate from January to July 1932 and receivership from July 28, to December 31, 1932 Merger Plan Advances Further. Definite entry of the Northeast Savings Bank into the proposed merger of six local banks into one institution was announced last night after special meeting of stockholders and depositors Such action had been expected, but at the same time adds strength to the present campaign. The bank now starts in earnest to raise its quota of new capital, the amount being much smaller than what would have been required for separate unit. Officials of with pleased much bank now are the the idea of going with five other banks as the Hamilton National preWashington Railway & Electric ferred opened trading on the Washington Stock Exchange today 30 shares changing hands at 861/4 Capital Traction was up full point, 20 shares moving at 8 1/2 a Georgetown Gas Light 6s figured in $10,000 turnover at 1021/2 and $1,000 Anacostia & Potomac Railroad 5s came out 37. Norfolk & Washington Steamboat stock sold at the change governors having ruled that all transactions in this stock shall on as the basis of ex-privilege redempt already stated to stockholders of record March 4, 1933 Bank Stocks Show Gains The New York City bank stock mar ke recovered during the past week the aggregate market value of the 16 lead ing issues. compiled by Hoi Rose & Troster ending the week 422 705.000. compared with $1 382 905 000 at the close of the previous week an in2.9

2. June 1, 1933 The Washington Times Washington, DC
Article from The Washington Times, June 1, 1933

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SALES OF STOCK BY BANK GROW (Continued from Local Page) have been considering for the future of the bank. Little can be learned about the future prospects of the Mount Vernon Savings Bank but it has not been regarded as a prospective merger member. The Chevy Chase Savings Bank has been taken over by the Riggs National Bank and thus removed as a prospective member. The Park Savings Bank, which is said to have been drained of about $1,600,000 before the banking holiday, it is predicted will be placed eventually in receivership. To date it has been managed by a conservator, as have the other "non-liquid" banks. More than $700,000 worth of the required $1,250,000 stock in the new Hamilton National has been subscribed to date, it was reported at a meeting of more than 200 stockholders of the Federal-American National Bank and Trust Company last night. Each of the participating banks has been assigned its quota of the stock of the new institution. Efforts are being pushed to close the subscription campaign by Saturday. The stock selling campaign, however, is to be continued until the needed amount is obtained, Capt. Chester Wells, chairman of the general subscription committee, stated today "Offset" Applies Depositors may purchase stock through money they have on deposit by assigning desired amounts of the money to be "freed" for that purpose. The "offset" principle used in cases of receivership also will apply to deposits in the unlicensed banks. This means that in cases of loans made to depositors the entire amount to their credit in the banks may be applied toward paying off the loan. The average depositor. however, will receive only 50 per cent of his savings immdeiately.

3. July 11, 1934 Times Herald Washington, DC
Article from Times Herald, July 11, 1934

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NEAR PROBABLE Remaining Assets Unlikely to Provide Full Settlement For Depositors That severe blow in the form assessments will soon be dealt stockholders of the defunct Chevy Chase Savings Bank appeared most certainty today. When the bank closed its doors had deposits aggregating $732.203 and has since paid out in divi$468,668. Its prime assets dends were taken over by the Riggs Na tional Bank. and attempts being made to quickly liquidate maining assets, and notes. Officials Are Silent appeared unlikely today that liquidation of these notes would bring in enough pay off positors in full, which leads observers to believe that the Comptroller of the Currency will levy against stockholders assessments make up the difference. The possibility of assessments would not be discussed by either officials of the Treasury Department the bank's receiver, Hardee. It was learned. Cary A. however, that early substantial to depositors probpayment bank has in able. The off its debt to the Reconpaying struction Finance outlook for the FederalThe National Bank and American Trust Company is not so good, and any nearby payment of diviunlikely. It was learned dends high authority that depositors the which also comes under the jurisdiction of Mr. Hardee. will ultimately suffer substantial loss. Owes RFC $2,000,000 The bank owes about to the RFC, and although possible to borrow more money that institution on assets from the already put up future borrowings, any, would scant. When the bank collapsed had deposits totaling and has since paid off according to figures given out today the office the Comptroller the Currency. Letters stockholders of the bank were being sent out today pursuant the recent order the Comptroller of the Currency that assessments 000,000 must be paid by the 642 stockholders. considered unlikely that like this amount would forthcoming from the stock holders, many of whom in financial straits. Observers bereceiver be fortulieve he gets one-third of the nate amount.

4. July 18, 1934 The Washington Times Washington, DC
Article from The Washington Times, July 18, 1934

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Bank and Trust Company. The figure is $295,830.42. The lowest amount spent by any conservator or receiver is $2,964.04, which represents the money expended by Cary A. Hardee in winding up the affairs of the defunct Chevy Chase Savings Bank since he took charge of the institution in November, 1933. The exact amount spent by the receivers will be made public before the end of the month, Treasury officials said today. In all fairness to the receivers and their superiors in the Treasury Department it must be stated that while the $707,564.24 may seem an exorbitant charge for receiverships, this figure is below the average for the country and far less than the usual cost in liquidating a bankrupt firm. ### Depositors Benefit It must also be said that while this amount has been spent the depositors as a result have received millions of dollars in dividends which could not have been paid if a staff had not been set up to liquidate the frozen assets. The Comptroller of the Currency recently estimated that receiverships costs the depositors about six and one half per cent of the money collected by the receiver for the payment of dividends. Treasury officials today claimed that this is a fair figure and suggested that if there is a better

5. August 3, 1934 Evening Star Washington, DC
Article from Evening Star, August 3, 1934

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CHANGES MARKED N FIFTH DISTRICT Richmond Reserve Report Outlines Comparisons With Last Year. BY EDWARD c. STONE Comparison of the Federal Reserve Bank of Richmond's July 15 1934 fig ures with those of July 15. 1933. shows some most marked changes during the year The figures are included in the bank's latest review of credit business and agricultural conditions Rediscounts for member banks which were low year ago. declined by $13,158,000 during the period un $833. only review der 000 at the middle of July this year Open market paper decreased $83,000 On the other hand. the bank increased its holdings of Government securities by $45,455,000 between the middle of July last year and this a change which resulted in net rise in total earning assets of $32,214,000 during the year. Circulation of Federal Reserve notes showed rise of $2,332,000 between July 15. 1933, and the corresponding date this year Member banks with funds on hand which they were un able to invest profitably and safely increased their reserve deposits at the Federal Reserve bank by $46, 666,000 during the past year Re Federal the Cash of serve Bank of Richmond dropped by $3,937,000 between the middle of July last year and the same time this year and the ratio of cash reserves to note and deposit liabilities combined de clined by 10.54 points Member Banks Reduce Loans Between July 12. 1933, and July 11 1934, the 28 member banks reduced their loans on securities by $2,715,000. and all other loans, which are largely agricultural or commercial. dropped by $5,867,000, total decrease in loans and discounts amounting to $8,582,000 Investment in bonds and stocks rose by $26,631,000 during the year under review. chiefly in short-time Government obligations on which the yield is low. The aggregate reserve bal. ance of the reporting banks at the Federal Reserve bank rose by $17.835,000 during the past year, and on July 11, 1934 cash vaults totaled $1,297,000 more than on July 12 1933. Deposits showed marked increase between July last year and this, de mand deposits rising by $33.943,000 and time deposits gaining $2,732,000 Two of the 28 reporting banks were borrowing $321,000 from the Federal Reserve Bank of Richmond year ago, but none of them were borrowing on the corresponding 1934 date The latest report from Richmond also states that time deposits in 28 regularly reporting member banks and aggregate deposits in 11 mutual savings banks in Baltimore totaled $327,654 854 at the end of June, 1934 a higher figure than either $326.6 808 in time and savings deposits at the end of May this year or $325, 617,214 at the end of June last year Reporting member banks showed in creases in time deposits during both the past month and the past year Business Gains Reflected Agent William W Hoxton adds that total debits in the first half of 1934 amounted to $5,246,984,000 in the reporting cities in the fifth district with debits aggregating $4. 286.004.000 in the first half of 1933 an increase this year of $960,980,000 or 22.4 per cent. Every city reported higher figures for 1934. Part of the increase this year was due to the bank holiday last year, but most of it reflects both an increased volume of business this year and higher commodity prices in many line. Mr Hoxton makes some equally in teresting comments on building permits. He says building permits issued in June in 31 leading cities of the fifth reserve district numbered 1,976 compared with 2,409 permits issued in June, 1933, decrease of 18 per cent, but estimated valuation fig. ures for last month totaled $2,657. 648. an increase of 8.6 per cent over valuation of $2,446,494 in June 1933 Sixteen of the thirty-one reporting cities showed higher valuation figures for June, 1934 Among the five largest cities, in creased valuation figures were re ported for Washington and Charlotte but Baltimore. Richmond and Nor folk fell below their June. 1933, totals Lynchburg, Charlotte Greensboro and Raleigh made the most favorable records month. last Contracts awarded for construction work in the fifth reserve district in June this year totaled $18,627,345 including both urban and rural construction. compared with $10,425,409 in contracts awarded in June, 1933. Bank Claims Should Be Filed. The office of the controller of the currency has again called to the fact that all persons having claims against the Chevy Chase Sav ings Bank should file them by August 24, adding that otherwis such All claims might be disallowed. claims should be presented to Cary A. Hardee, receiver The Chevy Chase now bank operated is being branch of the Riggs National Bank with Harold W. Burnside as branch manager Announcement is made by Clark Childs & Keech, at the Washington office. that Arthur S. Kittle will man age new bond department at the head offices 60 Broadway New York He will keep in especially close touch with the bond units in the offices here and in various other cities. The best moving picture report in a long time was being on in the financial district today Loew's Inc reported for 40 weeks $3.45 per share on the common stock, against ago. year $1.11 Washington brokers have received word from Wall Street that the New York Stock Exchange is not at present planning any changes in com missions or in salaries paid executive officers. Traction Stock Sells Higher. Capital Traction stock stronger today. two small sales being recorded at 22 1/2, up half point from yester day and full point from sales earlier in the week. The continued favorable earnings reports assigned as the reason for the higher bids Washington Railway & Electric 4s were again in demand two .000 transfers taking place at 971/2. off 1/4 from vesterday's sales On the New York Stock Exchange vesterday Peoples Drug common sold

6. June 24, 1935 Evening Star Washington, DC
Article from Evening Star, June 24, 1935

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BOOTLEGGING QUIZ CHEVY CHASE BANK ASKED IN 80 CITIES WILL PAY $130,000 Dividend Reported Possible Capital Included in Places Due to Expiration of Treasury Would Probe With Relief Funds. Agreement With Riggs. Another dividend of somewhere beBy the Associated Press. tween 15 and 20 per cent probably will Extent of bootlegging in Washingbe paid shortly to more than 5,000 ton and in four score other eities with depositors in the old Chevy Chase populations of 100,000 or more would Savings Bank, it was reliably learned be investgated with a fund of $1,086,today. 941 requested by the Treasury-DepartThis becomes possible because of the ment from work-relief -money. expiration of a contract on substituThe investigation would be made tion of assets with Riggs National by the Treasury alcohol tax unit, the Bank, now operating the institution department explained today in a statement. as a branch, and because of the condition of the receivership. "A test program of making a houseto-house canvass in certain collection Agreement Has Expired. districts, it was said, "has furnished Under terms of the contract beevidence that certain dealers are between Riggs Bank and the former ing used as outlets for the untax-paid conservator of Chevy Chase Bank, as products of bootleggers, and that the of June 19, 1933. no additional illicit operations of the post-prohibidividend could be paid to depositors tion period due to the activities of of this bank until after two years. The organized bootleggers, are totally difRiggs Bank had the right of substituferent from those encountered by coltion of assets, which now has expired. lectors of internal revenue prior to During the period since Riggs bought prohibition. the old bank building and enough of Keg Liquor Supported. the assets of the old bank to pay an Meantime it appeared on Capitol original dividend of 60 per cent, the Hill that whether President RooseRiggs substituted a few of these assets velt likes it or not a House Ways and for others held by the receiver. Means subcommittee is insistent on Collections by the receivership on the assets of the bank have now permitting the sale of liquor in kegs and barrels as well as in bottles. amounted to enough, it was learned The differences with the administoday, so that it may be possible tration were caused by attempts to shortly to pay to the depositors draft a bill replacing the, Federal Alanother dividend of between 15 and cohol Control Administration, doomed 20 per cent. This would be in the to death with the Supreme Court rulneighborhood of $130,000. ing on N. R. A. Liability Is $700,000. Under Treasury regulations, sale of The deposit liability of the Chevy liquor in anything but bottles was Chase Savings Bank at the time it barred. Secretary Morgenthau and was closed during the bank holiday in Joseph H. Choate, jr., chairman of the March, 1933, was about $700,000. Prior old F. A. C. A., sought to let those to its closing the bank, on February regulations stay in effect as well as 28, had gone on a 5 per cent withto create a new, independent agency drawal basis, restricting depositors to known as the Federal alcohol control a withdrawal of only 5 per cent of commission their deposits. The 60 per cent Democrats on the House Ways and dividend was later paid following the Means Committee demurred. They Riggs purchase of the old bank on the rewrote the proposed bill to permit remainder of the deposits after subbarrel sales and put alcohol control traction of the 5 per cent. Those deunder the Treasury. positors who failed to call for their Then Secretary Morgenthau-who original 5 per cent were allowed to had an opportunity but did not apget it later. The total amount of pear before the committee during its dividends thus paid out of the bank hearings on the new bill-told newsso far is more than 60, but not quite men that it would take an "army" to 65 per cent. enforce liquor laws if barrel sales were

7. August 15, 1936 Evening Star Washington, DC
Article from Evening Star, August 15, 1936

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FINAL DIVIDEND BY SAVINGS BANK TO BEGIN MONDAY Chevy Chase Institution's Receiver Announces 20 o Payment. GROUP OF DEPOSITORS NOTIFIED BY CARD $678,000 Total of 4,970 Claims, With Present Disbursements Amounting to $135,204. of the final dividend of 20 cent, which pay Distribution per will in full of the closed will Savings depositors Bank, announced begin Chevy today Monday Chase by morning, it was Cary A. Hardee, receiver. Checks will be available at 1336 the office of the but not at the now operated as a the receiver, New bank, York avenue, old office branch of of Riggs National Bank. First payments will be made Monday to depositors notified to call in Cards were and were last person. night received mailed out by to be called. Receiver asks depositors to Hardee the first group word before wait until they they have received apply for payment. The checks are available for 4.970 depositors who have filed their claims, and total to The present 20 $678,000. will bring $135,204.95. dividend payments of per cent amounts to Co-operation of Stockholders. dividend was made possible the of the stockholders through "The co-operation former bank, the of funds sup- the plying the remainder of necessary for such payment," said Hardee in a statement. The receiver said he wished to thank the Stockholders' Committee for their co-operation during his office. The been willing at said, tenure has of committee, all times he to assist him in anything he has called upon them to do. Paul Sleman, trustee representing of the of the per ment was due to the the completion stockholders 100 "splendid bank, cent pay- said cobetween Treasury the Receiver operation Hardee, depositors officials, and stockholders of the bank." "Shortly after the bank closed In March, 1933," said Sleman, "the Riggs National Bank purchased sufficient assets of the bank, including the bank building, to enable the payment of a dividend of 60 per cent to depositors at that time, and on June 15, 1933. opened a branch of its institution in the former home of the bank, thereby restoring banking facilities to the populous Chevy Chase section. Committee Appointed. "The directors of the Chevy Chase Bank then appointed a committee of John C. Walker, Paul Claude D. Ben to consisting T. Sleman, Webster co-operate Garrett with and the the the further of This the ceiver Treasury bank. in Department committee liquidation and has been rein touch and the period of the Department constant the liquidation, with receiver the Treasury during assistto to sucspeed ing in payment every way depositors. within its power The cessful culmination of these efforts is very gratifying to the committee and to the directors of the bank." Hardee said that since his appointment, November 15, 1933, the entire expense of the receivership to June 30 was approximately $12,000. The receiver said he had collected approximately $43,000 as interest on the obligations held by him, making a net profit from the receivership of approximately $31,000. Hardee said he hoped the affairs of may "an is few the closed done receivership at the early date." remaining be When finally assets this would be turned over to the stockholders' agent, who will then have full charge of further liquidation. diviFollowing of payment per of the of first June dend 60 cent as 15. the former conservator, anof per was the receiver other paid 1933, by by dividend 20 in September, cent These two together 1935. present dividends, of 20 with the one per cent, brings the total to 100 per cent.

8. August 19, 1936 The Washington Times Washington, DC
Article from The Washington Times, August 19, 1936

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SAVERS SLOW TO COLLECT Despite the fact that more than 3,000 notices have been sent to depositors of the Chevy Chase Savings Bank, beginning last Friday, stating that the receiver, Cary T. Hardee, is prepared to make a dividend disbursement at his office, 1336 New York Ave., less than 200 who have claims for payment had called for checks up to closing time yesterday. This is the final dividend payment to depositors in closing the affairs of the bank, and, when completed, will bring repayments to 100 per cent. The bank was closed March 6, 1933, and the receiver was appointed March 15, 1933. At the office of the receiver yesterday it was stated that depositors to whom payment is due are urged to call for their checks at once. It was also said that considerable difficulty will be experienced by depositors in collecting amounts due them after closing of the receivership. -VOTE AMERICAN-