8512. Commercial Bank (Frederick, MD)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
September 3, 1931
Location
Frederick, Maryland (39.414, -77.411)

Metadata

Model
gpt-5-mini
Short Digest
3ad33153

Response Measures

Full suspension, Books examined

Description

Commercial Bank (Frederick, MD) experienced withdrawals after the Sept. 3 Central Trust Company closing; the bank was placed in charge of the Maryland bank commissioner and closed Sept. 28, 1931. A November 16, 1931 article indicates plans to reopen under a proposed plan, so classified as run -> suspension -> reopening. Bank type inferred as state (no 'National' or 'Trust' in name; had state branches).

Events (4)
1. September 3, 1931 Run
Cause
Local Banks
Cause Details
Withdrawals and steady run began after closing of the Central Trust Company (Sept. 3) and rumors that Central had deposited large sums with the Commercial Bank.
Measures
Bank board requested the State bank commissioner to take charge to protect depositors and stockholders; branches closed and placed under state bank commissioner.
Newspaper Excerpt
rumors saying the Central concern had $250,000 deposited with the Commercial Bank caused a steady run for withdrawals since the day of the closing of the Central Company.
Source
newspapers
2. September 28, 1931 Suspension
Cause
Local Banks
Cause Details
Directors voted to request the state bank commissioner take charge after prolonged withdrawals following the Central Trust Company's failure and circulating damaging rumors; bank closed and placed under the commissioner on Sept. 28, 1931.
Newspaper Excerpt
Two of the leading banks in Western Maryland closed their doors today and were placed immediately in charge of the bank commission of Maryland. ... The institutions are the Commercial Bank, the second largest financial institution in Frederick...
Source
newspapers
3. September 30, 1931 Other
Newspaper Excerpt
Frederick, Md., Banks Crash ... The Daily Mail here reports the closing of the Commercial Bank of Maryland and three branches in the county, at Frederick, Md. Demand deposits of $315,869.92 and savings and special deposits of $2,340,475.84 were listed in the bank statement of June 30, 1931.
Source
newspapers
4. November 16, 1931 Reopening
Newspaper Excerpt
Frederick Bank To Reopen The Commercial Bank of Frederick, believed to be preparing re-open under the plan within few ... The plan also provides ... The Ocean City Bank has already accepted the plan re-opened its doors Saturday. Frederick Bank To Reopen The Commercial Bank of Frederick, believed to be preparing re-open under the plan within few ...
Source
newspapers

Newspaper Articles (4)
1. September 28, 1931 The Washington Times Washington, DC
Article from The Washington Times, September 28, 1931

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Article Text

TWO MARYLAND BANKS CLOSE Two of the leading banks in Western Maryland closed their doors today and were placed immediately in charge of the bank commission of Maryland. Both served notices by pasting cards on the front door stating simply that the institutions had closed. In both cases, the closing was made without any advance notices or hints of distress to the depositors. The institutions are the Commercial Bank, the second largest financial institution in Frederick, and the Mechanics Loan and Savings Bank, of Hagerstown. The latter was known throughout Washington county as a "good substantial bank" and was one of six banks in Hagerstown. Blame Central Trust Officials of both institutions place the blame for their closing on runs resulting from the closing of the Central Trust Company of Maryland, with headquarters in Frederick. on September 3, last. Caspar E. Cline, president of the Commercial Bank, said that rumors saying the Central concern had $250,000 deposited with the Commercial Bank caused a steady (Continued on Page 2, Col. 4.)

2. September 28, 1931 The Washington Times Washington, DC
Article from The Washington Times, September 28, 1931

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Article Text

TWO MARYLAND BANKS CLOSE (Continued From Page 1) run for withdrawals since the day of the closing of the Central Company. Cline's Statement Mr. Cline, in a statement to The Washington Times, said: "Following the closing of the Central Company of Maryland and its 11 branches on September 3, various rumors and gossip of a damaging nature have been circulated about this institution causing large withdrawals and the giving of notices for a very considerable amount of time deposit money soon due for payment. "It was voted by the board of directors at a special meeting at 8:30 o'clock this morning that we request the bank commissioner of Maryland to take charge of the bank immediately. This action was felt necessary to protect the interest of all. depositors and stockholders. Only Course Left "Notwithstanding the present deflation and unusual depression through which we are passing, we believe depositors should receive the amounts due them. ident of the Central Company. that this action has been found necessary, but every possible effort has been made to prevent it, and no other pruduent course remained open in fairness to the depositors and stockholders. "Consideration may be given to a plan of reorganization, but nothing definite can be stated at this time." The Commercial Bank had branches in Maryland at Mt. Airy, Adamstown, and Jefferson. Deposits $2,500,000 Mr. Cline said the deposits at the bank amounted to $2,500,000 and the capital and surplus was $400,000. All the branches were closed today and also placed under the State bank commissioner. Leading business men and politicians of Frederick said today that they feel certain that, despite its closing, the Commercial Bank will give a higher return to the depositors than the Central Trust Company. H. E. Meeks, assistant State bank commissioner of Maryland, who took charge of the Commercial Bank, said he has not been able to study conditions there sufficiently to make a state ment as to its assets and liabilities. Back to Pitts Case The Central Trust Company had deposits amounting to $14,000,000. Emory L. Coblentz, State senator f: Frederick, was president of the Centray Company. Mr. Coblentz was recently indicted by the local Federal Grand Jury on charges of perjury in connection with testimony he gave in the defense of G. Bryan Pitts, president of the Smith Company, at his trial last fall.

3. September 30, 1931 The Daily Worker New York, Chicago, NY
Article from The Daily Worker, September 30, 1931

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Article Text

# BANK FAILURES IN U. S. MOUNT DAILY AS CRISIS GROWS Depositors Stand to Lose Savings of a Lifetime Bank failures continue at an un- precedented pace thruout the coun- try. Small depositors especially are hard hit, with their life savings wiped out in many instances, despite the promises of bankers and state banking departments that percent- ages will be paid. Below are some of the banks that were listed as insolvent the last few days. Philadelphia Bank Fails PHILADELPHIA, Pa. -The North- ern Central Trust Co., with five branches with deposits $2,309,959.95, closed its doors after a meeting of the board of directors. A steady run on deposits was declared the cause of the ban's insolvency. The banks covered the northern residential and business section of the city. Frederick, Md., Banks Crash HAGERSTOWN, Md. - The Daily Mail here reports the closing of the Commercial Bank of Maryland and three branches in the county, at Frederick, Md. Demand deposits of $315,869.92 and savings and special deposits of $2,- 340,475.84 were listed in the bank statement of June 30, 1931. The Central Trust Co. of Maryland and eleven branches in four counties closed last week. $11,000,000 Lost in San Antonio SAN ANTONIO, Tex. -The state commissioner of banking took over the affairs of the City Central Bank and Trust Co. with deposits of $11,- 000,000 as of July 1. Glass Town Bank Fails GLASSBORO, N. J.-The Glass- boro Title and Trust Co. in the cen- ter of the glass industry in south New Jersey closed its doors Monday. Total assets as of June 30 are listed at $516,610.32. South Carolina Bank Goes FORT MILL, S. C.- The First National Bank here did not open its doors due to the condition of its bus- iness. Steel Town Bank Closes NILES, Ohio.--The Niles Trust Co. with deposits of $2,400,000 closed its doors here. Niles is in the center of the steel making and finishing in- dustry.

4. November 16, 1931 Cumberland Evening Times Cumberland, MD
Article from Cumberland Evening Times, November 16, 1931

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Article Text

LAND BE (Continued From Page that per cent of their depositors' liability be diverted to guaranty fund to used solverify of the bank until such conditions its return. the meantime the 25 per cent interest. The plan also provides zation of former personnels the introduction fresh capital Under the of the plan advanced by Mr. Hospelhorn. the bank authorities know at times the amount of funds on posit subject withdrawal and what extent and thereby have definite basis for arrangement financing The Ocean City Bank has already accepted the plan re-opened its doors Saturday Frederick Bank To Reopen The Commercial Bank of Frederick. believed to be preparing re-open under the plan within few The other banks which is The Hancock Bank. Hancock: The Mechanics' Savings Bank. Hagerstown: The State Savings Bank. Middletown: The Queenstown State Bank. town; The Detour Virtually the closures caused by heavy