8574. Farmers Banking & Trust Company (Rockville, MD)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
trust company
Start Date
February 25, 1933
Location
Rockville, Maryland (39.084, -77.153)

Metadata

Model
gpt-5-mini
Short Digest
c97c0e53

Response Measures

None

Description

Bank was closed as part of the Maryland gubernatorial 'bank holiday' (government-imposed suspension) beginning Feb 25, 1933. It was not the subject of a depositor run; it awaited Federal Reserve licensing and completed a reorganization plan to permit reopening and permit 85% withdrawals with 15% in certificates (April 1933).

Events (3)
1. February 25, 1933 Suspension
Cause
Government Action
Cause Details
Closed under Governor Albert C. Ritchie's proclamation of a three-day statewide 'bank holiday' (state government action) and the subsequent statewide holiday; banks in county were closed and Montgomery County National Bank was closed to withdrawals and limited work.
Newspaper Excerpt
temporary closing of banking institutions throughout the State of Maryland...the Montgomery County National Bank of Rockville
Source
newspapers
2. March 15, 1933 Other
Newspaper Excerpt
The Montgomery County National Bank of Rockville was not open this morning, but the cashier of the institution declared that application had been made with the Federal Reserve Bank at Richmond for a license to operate on a normal basis with no restrictions on withdrawals.
Source
newspapers
3. April 22, 1933 Reopening
Newspaper Excerpt
The Montgomery County National Bank...has concluded its reorganization work and is awaiting only the approval of Federal banking officials in Washington before swinging back into its regular routine...Under the plan, depositors...will be permitted to withdraw 85 per cent of the funds they had on deposit prior to the banking holidays and will be given certificates of deposit for the remaining 15 per cent.
Source
newspapers

Newspaper Articles (5)
1. February 25, 1933 Evening Star Washington, DC
Article from Evening Star, February 25, 1933

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Article Text

MONTGOMERYCALM IN BANK SITUATION Officials of 11 Institutions in County Say Depositors Are Not Worried. Citizens of Montgomery County calmly accepted today the situation which has led to the temporary closing of banking institutions throughout the State of Maryland. Officials of the 11 banks located in that community declared at noon that the act of Gov. Albert c. Ritchie in proclaiming a three-day "bank holiday" to permit the enactment of protective legislation for both depositors and banking interests has occasioned no alarm among their depositors. Without exception the officials declared their own institutions to be in a sound financial condition, and said that no heavy withdrawals had been made on their banks. They indicated that the "unusually heavy w drawals" osing which led to the State-w. order had been made on the banks in Baltimore City. Numerous telephone calls were received the banks of the throughout by morning, but the the county of calls obwere made for the sole purpose taining information additional to that carried in the newspapers, they said. A few persons who had not learned of the three-day holiday in banking circles appeared at the institutions this morning, read the notice which had been on the closed doors to the the susuntil unpended effect posted that business institutions Wednesday had der the Governor's order and turned quietly away. Not Excitement Whatever. "There has been no excitement whatsoever," one banking official declared. "The people have read of situations similar to that in Maryland which led to the recent closing of the banks of Louisiana and Michigan and have gracefully accepted the announcement of the three-day holiday in this State." The principal embarrassment. it was learned, has been in the meeting of pay rolls. A number of firms were said to have been unable to pay their employes in cash and were forced to issue checks on their county banks, which cannot be cashed, of course, until after the holiday is suspended. Included in this group were county officials and county employes. who received their wages in check form this morning, but were unable to cash them at the county banks on which they were drawn. State Senator Robert G. Hilton. who is president of the Farmers Bank & Trust Co. of Rockville, said this morning: "I feel satisfied that the State Legislature will take up the matter when it reconvenes on and I have no promptly day evening, which doubt Mon- that will plan will be devised serious to prevent some any embarrassment State." any of the banks of the Business to Be Supplied. of the banks made arthis morning to rangements A number supply with business houses in their community change needed in their business. They also announced that business houses would be permitted to leave their money at the banks over the week-end for safekeeping. but that the money would not be accepted as regular deposits. The banks in Montgomery County closed by the Governor's order are the Citizens Bank of Takoma Park, Silver Spring National Bank, Farmers' Bank & Trust Co. of Rockville and its Kensington branch, Montgomery County National Bank of Rockville, First National Bank of Gaithersburg, First National Bank of Sandy Spring, Sandy Spring Savings Institution, Germantown Bank, Bank of Bethesda and the Damascus Bank. UVATTSVILE

2. March 15, 1933 Evening Star Washington, DC
Article from Evening Star, March 15, 1933

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Article Text

BANKS IN NEARBY COUNTIES REOPEN Most Neighboring Virginia and Maryland Institutions on Normal Basis. With a majority of the banks functioning on a normal basis, "business as usual" was the slogan in the Maryland and Virginia counties around Washington today. Shortly after their doors opened, bankers of the various counties reported deposits were "heavier than usual. while withdrawals were described as "normal," indicating the experience which Washington's banks had yesterday was being repeated on a smaller scale today in Maryland and Virginia. As President Roosevelt's progressive program for reopening the Nation's financial institutions reached its third stage, the restored confidence which has been so evident in the financial centers and big towns of the country during the past two days, reached the rural areas and small towns this morning. Others to Open Later. Marylanders were particularly happy to have their banks functioning again, as they have been closed by gubernatorial holiday proclamations since February 25. Virginia banks had only suspended operations during the national holiday, which began March 6. State Bank Commissioner John J. Ghingher of Maryland emphasized, in announcing the list of banks licensed to reopen, that those not included were not necessarily unsound and probably would be permitted to resume functioning in the near future. The commissioner issued licenses for 96 State banks and expects to have more time to examine the unlicensed ones with a view to reopening them in the next few days. Ten of the 11 banks in Montgomery County whose doors have been closed during the holiday reopened for business this morning, with the other institution awaiting action by the Federal Reserve Bank in Richmond on its application to resume normal operation. With the exception of the Farmers' Banking & Trust Co. of Rockville and the Bank of Damascus the 10 institutions open for business were operating with no restrictions on withdrawals. A 2 per cent limit has been placed on withdrawals from the Farmers' Banking & Trust Co. and the Bank of Damascus. Eight on Normal Basis. The eight banks that resumed business on a normal basis are the First National Bank of Gaithersburg, Citizens' Bank of Takoma Park, Takoma Park Bank. Germantown Bank, Bank of Bethesda. First National Bank of Sandy Spring, Sandy Spring Savings Institution and the Silver Spring National Bank. Officials of the First National Bank of Gaithersburg said this morning that they have not yet received their license from the Federal Reserve Bank of Richmond, but opened for business when given the assurance that the license would be granted today. The Montgomery County National Bank of Rockville was not open this morning, but the cashier of the institution declared that application had been made with the Federal Reserve Bank for a license to operate on a normal basis with no restrictions on withdrawals. Ira C. Whitacre, cashier, Silver Spring National Bank said, "We opened this morning on a 100 per cent basis and (Continued on Page 5, Column 3.)

3. March 16, 1933 Evening Star Washington, DC
Article from Evening Star, March 16, 1933

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Article Text

CONFIDENCE SHOWN IN NEARBY BANKS Virtually Every Institution in Metropolitan Area Gains in Deposits. Reassured by the display of confidence on the part of depositors yesterday. bank officials in nearby States eased the restrictions under which some of the institutions were operating and licensed several new ones to open today. Meanwhile the bankers themselves in institutions that have not been permitted to resume operations on an unrestricted schedule devoted their full time to plans that would permit them to get back on a 100 per cent basis. In many instances these included recrganization The Bank of Bowie was the only one in the vicinity of Washington which demonstrated its strength to such an extent in a single day that the 2 per cent withdrawal restriction on it was promptly lifted. Receiving Tellers Busy. Without exception the banks in the metropolitan area surrounding the Capital City reported business to be brisk at the receiving teller's window on the first day they have been permitted to open since the national banking holiday while the paying tellers found themselves for the most part with time hanging heavy on their hands. In addition to lifting the ban at Bowie, State Bank Commissioner John J Ghingher of Maryland permitted the Bank of Hampstead, Carroll County. to allow 10 per cent withdrawals today instead of 2 per cent He also licensed the Mercantile Savings Bank of Baltimore and the St Michaels Bank Talbot County, to reopen on a 2 per cent basis. These institutions were closed yesterday Another Maryland bank which will open for the first time today is the Forest Hill State Bank, Harford County. which will function on a 100 per cent basis. Reorganization plans of the Union Trust Co. of Baltimore and the Baltimore Trust Co were reported progressing satisfactorily These two large institutions. fami iar to most Maryland ers, are to be replaced by national banks. Record in Deposits. Officials of the 10 banks that have resumed operatic in Montgomery County reported today that deposits at the end of business yesterday aggregated nearly twice those of any previous day in their history The deposits made in one bank located in the metropolitan area totaled nearly $3,000,000, while those of another institution in the same district threatened the $2,000.000 mark R. Weir Waters, president of the Takoma Park Bank. said this morning that more than $2,700,000 was placed on deposit by patrons of that institution and that that figure far surpassed the total of withdrawals. The Silver Spring National Bank received $66,725.36 for deposit during the day, according to Ira C. Whitacre. cashier, who declared that the amount of deposits exceeded the total withdrawals by $45,725.36. Both Waters and Whitacre asserted that withdrawals were mainly on checks which were issued before or during the Maryland banking holiday and President Roosevelt's proclamation and had accumulated at the bank during the two periods. Some Gold Received. Regular depositors, they declared, showed no inclination to make withdrawals except for groceries. light, heat and other household necessities. Two other banks in the metropolitan district handled exceptionally large amounts of deposits. S. Walter Bogley, vice president of the Bank of Bethesda, and A. L. Votaw. cashier of the Citizen's Bank of Takoma Park, both said that deposits at their respective institutions were twice as much yesterday as they are normally. All four banks in the area immediately adjacent to the District of Columbia took in some gold in small amounts from their depositors. Bogley said that between $10,000 and $15,000 in gold was turned in at the Bank of Bethesda during the day. No heavy gold deposits were made by any one person, however. he declared. The Farmers Banking & Trust Co. of Rockville and the Bank of Damascus. the only members of the group of 10 county banks open for business that are operating on a restricted withdrawal basis, continued to grant its depositors 2 per cent withdrawals today. Awaits U. S. License. The Montgomery County National Bank at Rockville, the only bank in the county which is not open, was still awaiting today its license from the Federal Reserve Bank at Richmond to resume business. The bank had applied for a license to reopen on a 100 per cent withdrawal basis, according to the cashier. The banks of Prince Georges County were still taking deposits rapidly today, although business was much nearer normal than yesterday which witnessed a rush of depositors who threatened to swamp employes of several financial institutions in their eagerness to bank their money Another Prince Georges bank was opened to do business on a 100 per cent basis this morning- the Bank of Bowie was so to as it said brisk cashier, -and handle that according business it the office in arrived. to force deposits William was Luers unable Luers, he believed the restriction placed on

4. April 6, 1933 Montgomery County Sentinel Rockville, Gaithersburg, MD
Article from Montgomery County Sentinel, April 6, 1933

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Rockville Business Increasing With Economic Changes Return Of Beer, Optimism Regarding Banks And Advertising Held Responsible There is every indication that trade in Rockville and in Montgomery County in general will increase considerably during the month of April. Already there are signs of business picking up in the county seat. Several reasons are assigned for this by observers. In the first place Montgomery County will be permitted to sell beer for the first time in many years. Although the details of how beer will be handled here have not been made public, it is thought that many owners of restaurants and stores will take advantage of the State-wide beer bill to apply for licenses. According to Clerk of the Circuit Court Clayton Watkins, about 50 applications for the right to sell beer have been received at the courthouse. He has refuse to issue or take any action on the matter until he hears from the State authorities. It is likely that some restriction will be placed on selling beer. It is held probable that affidavits will be required of applicants. The action taken by the two banks, the Montgomery County National and Farmers' Banking and Trust Co., in asking that depositors sign agreemeents lending the bank 15 per cent of their deposits has done much to restore business confidence in the county and throughout rural Montgomery County. Officials of both banks believe that the two institutions will be able to open 100 per cent within the next 15 days. The advertising campaign being carried on by the Rockville Cooperative Business Men through the Rockville Shopping News is beginning to show real results. The special offer of the Arcade Theatre last week in giving one admission to the theatre for every paid adult admission resulted in approximately 50 coupons being handed in at the box office. Various members of the cooperative page have lately expressed their belief that this advertising scheme is proving a big boost for the town of Rockville.

5. April 22, 1933 Evening Star Washington, DC
Article from Evening Star, April 22, 1933

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ROCKVILLE BANKS READY TO REOPEN Early Resumption of Business Planned by Two Institutions. By a Staff Correspondent of The Star. ROCKVILLE, Md., April 22.-Indications today pointed toward resumption of business on virtually a normal basis at Rockville's two banking institutions within the next few days. The Montgomery County National Bank, which has been closed to withdrawals and all but limited phases of work since the Maryland holiday was declared on February 25, has concluded its reorganization work and is awaiting only the approval of Federal banking officials in Washington before swinging back into its regular routine, George P. Henderson, president, declared. Richard F. Green, president of the Farmers' Banking & Trust Co., withdrawals from which have been limited to 2 per cent on pre-holiday deposits since its reopening after the national moratorium, said that officials of his institution expect to wind up their plans for reorganization today and submit them to the State banking commissioner at Baltimore. Plan Explained. It is believed that the plans of the two institutions, designed along identical lines, will be approved immediately by the Federal and State bank officials, for the plans were designed along lines advocated by those agencies when the reorganization work was started several weeks ago. Under the plan, depositors in both banks will be permitted to withdraw 85 per cent of the funds they had on deposit prior to the banking holidays and will be given certificates of deposit for the remaining 15 per cent. These certificates will draw 3 per cent interest and will be retired as quickly as the earnings of the banks permit. Stockholders in the two banks are required under the plan to put up additional funds equal to the par value of , the stock they hold in the institutions. In addition, dividends on their stock will be suspended until after the dew positors' certificates have been com, pletely retired. Banking laws require that 75 per s cent of the depositors must agree to a plan of that nature before it can be 3 2 put into effect, while stockholders must s post the additional funds before such a plan can be approved by the Federal i or State banking authorities and put into working order. i Bank Meets Requirements. The Montgomery County National 8 Bank, Henderson said, has complied 3 with these requirements and forwarded , the agreements to Washington for approval, while officials at the Farmers' Banking & Trust Co. probably will finish their work along this line some time soon, according to Green.