8532. First National Bank (Hagerstown, MD)

View Charter #1431 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
1431
Charter Number
1431
Start Date
September 1, 1931*
Location
Hagerstown, Maryland (39.642, -77.720)

Metadata

Model
gpt-5-mini
Short Digest
1890c5e3

Response Measures

Full suspension, Books examined

Other: Receiver Claude Gilbert handled liquidation; assets later offered to Second National Bank of Hagerstown.

Receivership Details

Depositor recovery rate
68.2%
Date receivership started
1931-10-05
Date receivership terminated
1940-12-31
Share of assets assessed as good
42.0%
Share of assets assessed as doubtful
56.4%
Share of assets assessed as worthless
1.7%

Description

A rumor-driven withdrawal in September 1931 (after the Central Trust failure) produced unprecedented withdrawals. The board placed the bank under direction of the Comptroller (did not open Oct 1, 1931) and a receiver (Claude Gilbert) administered liquidation. Although reopening plans were discussed (Jan 20, 1932) and dividends paid in 1932, the bank did not resume normal operations as First National and remained in receivership; assets were later offered/accepted by Second National (Sept 1933). Therefore the run led to suspension and permanent closure/receivership.

Events (8)
1. July 13, 1865 Chartered
Source
historical_nic
2. September 1, 1931* Run
Cause
Rumor Or Misinformation
Cause Details
Untrue and false rumors following the failure of the Central Trust Company (early Sept 1931) spurred unprecedented withdrawals.
Measures
Directors placed bank under direction of Comptroller; bank closed and national bank examiner placed in charge.
Newspaper Excerpt
The failure of the Central Trust Company of Maryland on September 3, gave rise to many untrue and absolutely false rumors and ... resulted in unprecedented withdrawals from this institution.
Source
newspapers
3. October 1, 1931 Receivership
Newspaper Excerpt
national bank examiners were in charge. ... The board of directors have concluded to place assets and affairs in the hands of the Comptroller of the Currency of the United States. ... Claude Gilbert is receiver (later referenced).
Source
newspapers
4. October 1, 1931 Suspension
Cause
Rumor Or Misinformation
Cause Details
Board placed bank under Comptroller after withdrawals driven by rumors; bank did not open Oct 1, 1931.
Newspaper Excerpt
The First National Bank, of Hagerstown, Md., ... failed to open for business today and depositors were officially notified that national bank examiners were in charge. ... placed assets and affairs in the hands of the Comptroller of the Currency.
Source
newspapers
5. October 5, 1931 Receivership
Source
historical_nic
6. January 20, 1932 Other
Newspaper Excerpt
Plans for reopening of the First National Bank, which closed here several months ago, were made ... The tentative plan will be submitted to the receiver, Claude Gilbert, a representative of the controller of the currency, who is now in personal charge of the bank.
Source
newspapers
7. July 23, 1932 Other
Newspaper Excerpt
The first dividend of 20 per cent, representing $417,000, will be paid out Monday by the receiver, Claude Gilbert, of the First National Bank to depositors. The bank closed last September...
Source
newspapers
8. September 12, 1933 Other
Newspaper Excerpt
Order Of Publication ... authorized accept the offer the Second National Bank ... receipt Seventy-five Thousand Dollars ($75,000) from the said Second National Bank of Hagerstown ... Claude Gilbert, Receiver.
Source
newspapers

Newspaper Articles (10)
1. October 1, 1931 The Washington Times Washington, DC
Article from The Washington Times, October 1, 1931

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Article Text

RUMOR BLAMED FOR FAILURE OF BANK First National of Hagerstown Explains Withdrawals Were. Spurred by Gossip The First National Bank, of Hagerstown, Md., one of the largest banks in western Maryland, failed to open for business today and depositors were officially notified that national bank examiners were in charge. Closed by Directors The notice signed by P. C. Ramsden, national bank examiner, said: "This bank is under direction of the Comptroller of the Currency, who is represented by P. C. Ramsdell, National Bank examiner. It is closed by direction of the board of directors." The last financial statement of the bank, published as of June 30, showed resources of $3,723,110.17 and deposits of $2,949,944.89. Dr. W. D. Campbell is president. The First National is the second Hagerstown bank to close this week. Rumor Is Blamed Directors of the bank later in the day authorized the following statement, in part: "The board of directors have concluded to place assets and affairs in the hands of the Comptroller of the Currency of the United States. "Our bank at the beginning of September had large cash reserves and was in a more liquid condition than it had been in many years. "The failure of the Central Trust Company of Maryland on September 3, gave rise to many untrue and absolutely false rumors and in spite of ourselves and the sound-thinking citizens of the county, resulted in unprecedented withdrawals from this institution. "Believing that an orderly liquidation of our assets will enable depositors to be paid, we have decided to take this action for their protection and benefit."

2. October 2, 1931 The Los Angeles Times Los Angeles, CA
Article from The Los Angeles Times, October 2, 1931

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Article Text

MARYLAND BANK FAILS HAGERSTOWN (Md.) Oct. (A) The First National Bank did not open today. a notice posted on the door saying it had been placed under the direction of the Comptroller of the Currency by a resolution of the board of directors.

3. January 20, 1932 Evening Star Washington, DC
Article from Evening Star, January 20, 1932

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Article Text

HAGERSTOWN BANK REOPENING PLANNED Tentative Proposal to Be Given First National Trustees Following Meeting. Special Dispatch to The Star. HAGERSTOWN, Md., January 20.Plans for reopening of the First National Bank, which closed here several months ego, where made at a meeting held last night at the Court House, which was attended by hundreds of stockholders and depositors. The tentative plan will be submitted to the receiver, Claude Gilbert, a representative of the controller of the currency, who is now in personal charge of the bank. All plans are subject to the final approval of the controller. There are about 5,000 depositors of the bank. Committees of citizens, augmenting the regular banking group soliciting for

4. July 24, 1932 Evening Star Washington, DC
Article from Evening Star, July 24, 1932

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Article Text

CLOSED BANKS PREPARE TO PAY OUT DIVIDENDS Special Dispatch to The Star. HAGERSTOWN. Md., July 23.-The first dividend of 20 per cent, representing $417,000. will be paid out Monday by the receiver, Claud Gilbert, of the First National Bank to depositors, it was announced yesterday. The bank closed last September, but efforts to reorganize delayed the payment of the initial dividend. It was estimated that an additional 40 per cent would be paid to depositors within the next 60 to 90 days. The other closed bank. the Mechanics' Loan & Savings Bank, is preparing to pay out an initial dividend of about 20 per cent next month. There will be 5,387 depositors to receive checks next week

5. July 28, 1932 The Daily Mail Hagerstown, MD
Article from The Daily Mail, July 28, 1932

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Article Text

NOW THAT MONEY IS WAITING, 2,800 HAVEN'T FOR IT Now that their money is able, there are 2,800 odd depositors who have failed thus far to call for the First National bank. where the initial installment to positors is available. Claude Gilbert receiver for the institution, said today there ap. parently was no rush on the part of the depositors get their money, alightly less than 1,500 had called for their checks thus far. He said he appreciated the fact that number of depositors wanted to avoid the rush and put calling for their money but the number who have thus far failed to call for their checks represents about two-thirds Despite the fact that the distribution of checks only began Monday, there has been decided loosening of credit here. local mer chants report. Increased buying apparent Tuesday and has been growing in momentum since. Nearly half million dollars. which has been lying idle in Washington, C., bank is being put back into circulation here and an additional $350,000 will shortly be distributed as an Initial installment to depositors of the Mechanics Loan and Savings bank. Othinstallments will be paid out to depositors of the First National bank within the next 60 to 90 days. The First National bank will be and depositors their may get checks at time.

6. August 26, 1932 The Daily Mail Hagerstown, MD
Article from The Daily Mail, August 26, 1932

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Article Text

Order Won't Be Felt Here The order from the Comptroller of the Currency dering the suspension closures by will effect in Hagerstown of the First bank, it was stated by those in authority here. receiver of the First National has not foreclosed upon property, but instead is holding it among the bank's sets. Nor is his policy to foreclose in the near future. been but four closures since the bank closed and those were where nonpayment of taxes threatened to force them to be sold. The liquidation of the First Na. tional for the benefit of the depositors, will continue to be orderly one, and will in no way embarrass the munity. it was said.

7. August 27, 1932 The Herald-Mail Hagerstown, MD
Article from The Herald-Mail, August 27, 1932

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Article Text

Order Won't Be Felt Here The order from the Comp. troller of the Currency in or. dering the suspension of fore. closures by National Bank redeivers, will have no effect In Hagerstown in the case of the First National bank, it was stated yesterday by those In authority here. The receiver of the First Na. tional has not foreclosed upon property, but instead is holding it among the bank's as. sets. Nor is it his policy to forectose in the near future. There have been but four foreclosures since the bank closed and those were where nonpayment of taxes threatened to force them to be sold. The liquidation of the First National for the benefit of the depositors, will continue to be an orderly one, and will In no way embarrass the community, was said. Washington. D. C., Aug. 26, Chairman Fort of the Home Loan Board today announced that Comptroller John W. Pole of the curreney has ordered every National Bank receiver suspend foreclosare proceedings for 60 days. Fort made his announcement to the National Economic conference meeting here today. "We are today wiring." he added. "every state supervising authority. requesting like action. We want your help to see not only that recelvers generally grant this 60-day respite. but that other lenders do likewise There are times when forced liquidation of Indebtedness is indefensible-certainly if any othmeans of procuring funds exists.

8. March 9, 1933 The Daily Mail Hagerstown, MD
Article from The Daily Mail, March 9, 1933

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Article Text

Bank Receiver Rotary Speaker Says Lack Of Unity Of Control Led To Closing Of Banks. Lack of unity of control in the banking system of the United States led to the closing of the banks throughout the country in the opinion of Claude Gilbert, receiver for the First National Bank of Hagerstown, who was the speaker yesterday at the meeting of the Rotary Club in Hotel Alexander. "As there were practically 49 different banking systems or situations in the United States when the present state of affairs developed with the banks is why it became necessary to close them for re-organization" he said. They will in the future in all probability be under one system or one agency, thereby giving the necessary degree of stability and security." He stated that the evil in the banking system that has existed for & long time has been obvious to some but that in the absence of a law to cover the same our government whether state or Federal, has, been helpless to act. He said that it was his opinion the present situation gives us an oppor tunity to create an improved banking situation out of the conditions which exist at present will come great deal of good. He said that any sound legislation now proposed has a good chance of being adopted. It was his opinion that the new system to be adopted will prevent a repetition of the present difficulties. The visitors were: M. F. Riley, Victor D. Miller, Jr. and J. V. Jamison, all of Hagerstown: F. W. Pettit and C. R. Busch of Baltimore: Edward Hoffman of Mercersburg and Robert Whitacre of Martins burg.

9. September 9, 1933 The Daily Mail Hagerstown, MD
Article from The Daily Mail, September 9, 1933

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Article Text

Order Of Publication In the matter the receivership of the First National Bank of gerstown, Corp., Claude Gilbert, No. Equity Circuit Court for Washington County. The aforegoing petition and rethe Compthe hibits filed therewith, having thereupon this August, Court WashingCounty Court Equity, by the authority ordered adjudged that Claude Receiver National Hagersized accept the Second National Hagersforth the the receipt exhibit Thousand Dollars ($75,000) from the said, Second National Bank of Ha the Second National Bank of property mentioned and described exhibit cause trary provided 15th of September. order inserted Mail and the Morning published less than three times on or before the 1933. provided that notice the depositors lional the Bank the First postoffice addresses tors and stockholders known the said substance said the substance contents said tice mailed tember the said ceiver ordered directAND IS FURTHER ORDERED that all exceptions acceptance of the offer aforesaid down 9:30 day September, 1933; at m.

10. September 12, 1933 The Daily Mail Hagerstown, MD
Article from The Daily Mail, September 12, 1933

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Article Text

Order Of Publication In the matter the receivership the National gerstown, Corp., Claude Gilbert. Receiver. In the Circuit Court for WashCounty. The aforegoing petition and reDeputy Comptroller the Currency. and the hibits therewith, having been read considered. is thereupon this Circuit Court for Washing County sitting Court by the authority thereadjudged that First National Bank Hagersbe and he hereby authorized accept the offer the Second National Hagersthe exhibit filed upon the receipt Thous. and Dollars ($75,000) from the Second National Bank serstown, convey said Second National Bank of gerstown. property mentioned and exhibit filed cause trary shown before 15th of September. provided copy order the Daily the Morning Maryland. not less than Hagerstown, three times before the 1933. provided further that said Receiver depositors the the First National postoffice addresses said depositors and known said Receiver substance said substance contents tice be malled before tember directed FURTHER aforesaid. ORDERED that all and exceptions the offer afore. said be and 16th of September. 1933. at 9:30 By virtue of power of sale condated 1928, and record Liber follo Land Records default having curred covenants condi tions contained. ed to undersigned for the pose of foreclosure the undersigned offer public in front the Court House, Washington TUESDAY SEPTEMBER 26. 1933. of One O'clock all improved real and being on the ford (formerly Street). nated Maryland. Plat Surrey Addition Being the same property that conveyed Robert Betts Edwin Ernst and by Deed dated 23th, and duly follo 681 of the Land Records said The said lot ing house contain eight room and and hot are block the said Possession upon ratification of TERMS OF SALE: One-half the sale thereof by the and the one date the undersigned. all cash at the op Assignee and collection. the Classified offers were specially printed.