First National Bank - Hagerstown, MD

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: national
Bank ID: 1431
Charter Number: 1431
Start Date: January 1, 1919*
Location: Hagerstown, Maryland (39.642, -77.720)

Metadata

Model: gpt-5-mini
Short Digest: db8c0b2e

Response Measures

Capital injected, Full suspension, Books examined

Other: Comptroller of the Currency brought suit to forfeit charter and appointed receiver; officers/directors negotiated to sell stock to responsible interests which temporarily averted forfeiture but the bank later closed.

Description

Article (1934) recounts a run on the First National Bank of Hagerstown about 1919, later Comptroller action in 1931 (suit to forfeit charter and appointment of a receiver), and that the bank later closed/failure while under direction for about two years. Dates are approximate because the article is retrospective and contains OCR noise.

Events (3)

1. January 1, 1919* Run

Cause Details: Article mentions a run circa 1919 but gives no cause or trigger for the withdrawals.
Newspaper Excerpt: Cites Hagerstown Bank First National Bank of Hagers about 1919 run crowd Wingard
Source: newspapers

2. January 1, 1931* Suspension

Cause: Government Action
Cause Details: Comptroller of the Currency sought to forfeit the bank's charter and brought suit; a receiver was appointed.
Newspaper Excerpt: in the year 1931 the Comptroller Currency decided he would forfeit the charter the bank. So brought suit the Federal Court. That brought the bank and then he appoint receiver.
Source: newspapers

3. January 1, 1932* Receivership

Newspaper Excerpt: First National Bank Hagerstown failed about two years being under the direction ... Later It Closed 'Now, might say that that bank that shock. Later closed, my opinion closed today.' (retrospective statement in 1934 article.)
Source: newspapers

Newspaper Articles (1)

1. January 12, 1934 The Evening Sun Baltimore, MD

Article from The Evening Sun, January 12, 1934

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Article Text

REGIME BANK TANGLE Examiner Says Blocked Detroit Action TELLS OF REPORTING CONDITIONS Cites Hagerstown Closed Bank As Example Of Difficulties [Continued From Secretary of the Treasury and President of the Leyburn made many reports forth the frozen of the group of banks during and part Responding to questions by Senator Couzens regarding the "leniency" policy adopted by the comptroller the currency the unsettled period in 1931 and the "from the came you guessing Couzens asked. Other Banks Shown Leniency "No, guessing. know They didn't the rock boat. Banks throughout the country shown leniency our do you mean by the mean the White House and the Secretary the Treasury," Leyburn replied, the present President." While was the stand on the difficulty dealing on the part the Comptroller. me cite you case where the Comptroller forfeit the national bank. Cites Hagerstown Bank First National Bank of Hagersabout 1919 run crowd Wingard, that kind, and they lated the National Banking act and looked for violate. And they told the the that he could not do might say that that bank was special list, and in the year 1931 the Comptroller Currency decided he would forfeit the charter the bank. So brought suit the Federal Court. That brought the bank and then he appointreceiver. Then during the ten days set for hearing, and before the hearing up, officers and directors that bank here Washington and ferred with the Comptroller the Currency, stated they and sell stock to responsible interests the Comptroller the suit. that, and the bank turned back those men about days later. Later It Closed "Now, might say that that bank that shock. Later closed, my opinion closed today. other good to that do anything an bank, you give them the the patient. In words, that the experience Mr. Pecora other words, the the disease. Mr. [Editor's First National Bank Hagerstown failed about two years being under the direction Earlier the hearing Edsel Ford testified that in February, 1933, Under Secretary the Treasury Ballantine visited Detroit and father, Henry Ford, and about the the group Young Ford had already Ford had aided banks the of One the banks, the Union GuardCompany, such that open the next day. Ford urged in which Henry Ford that all Detroit banks was be treated "He greatly incensed," his "and said all the banks not treated alike he would deposit from the National Bank of Detroit." result, the Governor Michissued his order night and of the banks the State opened the day. Machines In Action The great marble hall the Senate Banking turned stage the ginning today's session. Klieg lights blazed from the vaulted whole batteries machines were the literally still photographers all but clambered the stand and shot hundreds of the witness table lay mikes; wires and other of littered the floors up walls; the pushing Edsel Ford Spotlight The object this spectacular Henry. Never history has the United any of its turned closely picture circus itself delayed while the people completed the arrangement apparatus. Edsel Ford called to the witness stand, while twenty photographers flashed full bulbs fair his The photographers packed the the witness table Senators, of the committee, were their seats. the flashes stopped the Kleig lights turned on, filling the fiery glare dazzling the eyes of the unfortunate witness. How Ford Looks Young Ford, thinning brushed straight back, black eyes, thin, somewhat lined face. His mouth large. He wearing dark blue blue and white tie, stripes. Pecora Ford about loans by him by the group banks. The witness had consult refresh his memory about most of the questions asked. All the time the awful glare of the lights down on the witness and the movie cameras ground steadily. the reason for making these asked Pecora. Assets Criticized "The some the unit banks had criticized by the aminers,' Ford. Pecora the agreement loan not exceed made the Bankers' Trust Company New and the ContiBank Trust Company the banks. Bankers' Trust Company had ready the group collateral loaned by Ford. Other covered by the most of them indorsed by secured collateral furnished The group agreed to borrow without the consent the banks Ford and General Motors, who had also made loans the voice of the witness half drowned by the grinding of cameras. Fails To Recall Details Ford could not recall many of the which asked. Pecora read from minute books records refresh his The small witness backed by lawyers, with whom whispered. December, 1931, said, the condition the unit banks in the rather serious. Their He said by the be used to replace damaged In December, 1930, Ford loaned the the Trust Company loaned $4,500,000 collateral furnished by Ford. Dividends Paid "During 1930 and said Pecora, of the group paid dividends to its stockholders?" sanction the those dividends?" not recall. knew about them did not criticize them." "Have you good memory, Mr. think have not recalled much of the transactions about which have asked very busy and had to attend things. said the loan made the Bankers Trust Company been the loan of $2,500,000 which indorsed. "Was that $4,500,000 paid by the by the Ford Motor Company. any of the loans paid by don't think "Has the Ford Motor Company repaid the the Ford company.' to the tioned, the Ford Motor Company made another $3,500,000 the group its unit banks. The Ford company note for that amount, no part which has been paid. Deal Cited On December 1932, the an agreement the covering the loan The agreed that should subordinated to the loans by the Bankers' Trust Company the Continental Illinois Bank. group agreed not to pay dividends until this loan was There collateral this loan, part which has been repaid. The Bankers' Trust Company Continental Bank secured that major change the group should be made without their that indicate the desperate condition group didn't think Sought RFC Loan In the winter 1933 the group plied for RFC. Ford curred the effort. the of the its banks that asked. "Some them considerable frozen assets. Guardian Trust Company was the enough help from make them Ford the effort money from the RFC caution. He said never detailed information the tion the various banks. He talked the he testified. Company said, frozen the chief The RFC asked for aid of $60,000,000. The Union Guardian Trust for itself, amount about $14,000,000. For application for offered all its remaining assets. Their value than that quired. deficiency about Conference In In January and February, 1933, of the group held conferences the RFC. The RFC sent experts Detroit appraise the assets the unit Ford told the experts found the assets submitted not sufficient justify The group put found not sufficient. The deficiency millions. suggested that you furnish Ford Company?" had deposit, suggested that our deposit subordinated the remaining deposits,' Ford. "Later was suggested that the Ford Company supply $5,000,000 fresh capital. Refuse To Furnish Capital "We declined to furnish the capital. would one the other deposits." "Did authorize officers group notify the not quite definite Just noon the glaring Klieg lights turned and the great relapsed what seemed The Ford Company had During the crisis, Ford aided the banks the about and that was all he could would "Did consult with lantine, Under Secretary of the Conferred With Mills had two with him Ogden Mills, Secretary and Mr. president the RFC. They outlined me had suggested that the Ford company agree freeze its Ballantine and Mr. then Secretary of Detroit urged the up additional capital. We would further.' Ballantine reported in Washington that Henry Ford he would withdeposit the National Bank of Detroit. He would not freeze his deposits, would he furnish any thought we had furnished Banks Closed Next Day "On the next February the banks Michigan closed order of the Government?" Not since the midget sat on the Pierpont Morgan has the the committee been so packed with spectators. you think about group "That matter do rather give any think would be worth thing." "Would approve legislation bidding group wouldn't think Young excused o'clock. Bank Examiner Testifies Leyburn, chief bank examiner district, was called the stand. Since President Roosevelt's bank holiday last March, number of the banks the Union group, have reopened through reorganization. In most cases the depositors got from 30 cents the dollar up to "Now take Guardian Trust Company of Detroit," went on burn. would take Houdini that in Couzens. the bank, snapped has said Detroit that National Bank Detroit and other banks have not been mitted because Street said Blames Bad Management know nothing about read in the newspapers. caused the failure of group?" management, that cancer, Guardian Union Trust Company large losses," said Leyburn. group prefer branch banking to this about the failure of Comptroller the Currency act reports that the conditions Cites "Higher Command" "Because he was the higher command not permit any more bank failures." talking your knowlsimply speak of own