gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
af8a9ab4803e5984
Response Measures
Accommodated withdrawals, Borrowed from banks or large institutions, Fed/other loan, Public signal of financial health, Capital injected, Partial suspension, Full suspension, Books examined
Clearinghouse involved: Yes
(loan, examination, or other measures)
Receivership Details
Depositor recovery rate
89.5%
Date receivership started
1933-05-11
Share of assets assessed as good
62.6%
Share of assets assessed as doubtful
30.8%
Share of assets assessed as worthless
6.5%
Description
Events show pre-holiday heavy withdrawals, state banking holiday suspension, followed by conservatorship/receivership and eventual payoff of small depositors.
Events (6)
1.May 22, 1907Chartered
Source
historical_nic
2.February 13, 1933Run
Cause
Local Banks
Cause Details
Large withdrawals and heavy withdrawals from the Guardian and First National in days before the statewide holiday, including checks cleared and transfers that tied up deposits.
Measures
None described specifically as response to withdrawals besides later state holiday and restrictions on withdrawals (percentage payouts).
Newspaper Excerpt
declarations that $4,000,000 was removed from the two banks before the state-wide holiday
Source
newspapers
3.February 14, 1933Suspension
Cause
Government Action
Cause Details
Governor Comstock proclaimed an eight-day statewide banking holiday, closing banks including the Guardian National Bank of Commerce.
Newspaper Excerpt
the Governor of Michigan has closed all the banks and trust companies in his State for eight days
Source
newspapers
4.March 21, 1933Receivership
Newspaper Excerpt
the new bank will take over part of the assets the First National bank and the Guardian National Bank Commerce Detroit and assume part the deposits; placed in hands of federal conservators/readers mention conservatorship and receivers later on articles in Sept. 1933 and suits by receivers follow later that year and into 1934-12-08 RFC ready to advance funds to pay 104,000 small depositors of the Guardian Nat. Bank (Dec 1933). (OCR corrected).
Source
newspapers
5.May 11, 1933Receivership
Source
historical_nic
6.February 14, 1934Other
Newspaper Excerpt
136,000 depositors with $1,000 or less in the Guardian National Bank of Commerce when it closed will be paid in full through a plan ... beginning about Feb. 23 (1934).
Source
newspapers
Newspaper Articles (24)
1.February 14, 1933The Indianapolis TimesIndianapolis, IN
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Possibility that the eight-day banking holiday "might be modified in a day or so, after the banks get straightened out," was mentioned by Governor Comstock this morning, as he prepared to return to the capital.
Banking officials estimated the holiday paralyzed approximately $1,410,978,629 in banks and $144,407,139 in trust companies. These amounts virtually are "frozen" during the suspension period.
# Citizenes Are Bewildered
Approxmately 420 state banks and 120 national banks were closed by the Governor's proclamation.
Banks will retain skeleton staffs on duty, during the holiday period, to advise as to the credit of those wishing to check on funds on deposits.
Reichert, ill with influenza at Ann Arbor, left early today by motor for the state capital against the advice of his physician.
Stunned by the suddenness of the Governor's proclamation, citizens everywhere went about customary duties bewildered as to the outcome.
Stores generally opened as usual and most announced that they had available funds for today or longer. What will be the outcome toward the end of the week, when pay rolls fall due, was not known.
# Money Rushed by Truck
Banking department officials were positive in asserting that, despite the legal closing of the banks, arrangements must and would be made to allow small withdrawals for necessary current funds to operate fundamental businesses.
The actual plan that will be adopted was to be announced later in the day.
Western Union telegraph rushed orders to offices in nearby states to ship currency into Michigan by armored truck. A. A. Burr, Detroit superintendent, said they had available cash for today and would secure funds to cash any and all money orders of the company that might be presented.
2.February 15, 1933Daily NewsNew York, NY
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THE MICHIGAN MORATORIUM
The Governor of Michigan has closed all the banks and trust companies in his State for eight days. It is the same thing, on a larger scale, as has happened in many small towns in the Middle West and West during Shutdowns the course of this depression. It has happened all over Michigan for the same reason, Vs. Runs which appears to us to be a good reason. This reason simply is that the gold standard dollar has been growing more and more un-get-atable. It is better to freeze money in the banks and go on a scrip basis temporarily than to permit bank runs, which might produce bank failures. We think Gov. Comstock of Michigan has acted wisely and with true prudence. As we see it, the Michigan moratorium is another argument for cheapening the dollar so that people can get it more easily to buy goods, pay debts and keep business in motion. President Hoover told us Monday night in solemn tones that if we go off the gold standard we shall have economic disaster. What does he think we're having now, while we still cling to the gold standard?
3.February 23, 1933The Daily TimesDavenport, IA
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Immediate Payment Of by Detroit Banks Is Planned
DETROIT, Feb. ated Detroit News day says that payment 50 cent deposits in the First and the Guardian National Bank of Commerce Detroit is proposed under reorganization plans now being considered, contemplating the ganization Detroit of two new national banks. The Reconstruction Finance Corp., the News says, has been asked to advance in the neighborhood of to place the plans in effect, and further said that aid is expected from the Federal Reserve bank and New York banks. were understood to under way in New York and Washington concerning the plans under consideration, the paper The Guardian National Bank of Commerce the units the Guardian Detroit Union Group, Inc., some 20 banks operating trust companies in Michigan. other of the members the Guardian Group is the Union Guardian Trust Co., in which Governor William Comstock, in declaring banking holiday Michigan declared "acute financial existed. The bank has emergency" seven other units in the Detroit Metropolitan area. Rudolph Reichert, state banking commissioner, said that most banks were "doing business in the best possible and lated the state's bankers on their during the He said that most banks were cashing checks that had not ready been the depository percentage basis laid down the governor's second proclamation issued Tuesday. Generally, the banks were following plan under operation for the past week in Detroit, lowing depositors withdraw per cent of their deposits. In Detroit at the opening hour there were no lineups outside the banks and few instances of unusual numbers of customers inside. Silent Loan Feb. Couzens Vandenberg of Michigan day declined discuss reports the loan to two
4.February 23, 1933Belleville Daily AdvocateBelleville, IL
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MICHIGAN'S BANKS OPENED TODAY FOR LIMITED BUSINESS gan's banks opened for restricted business today. some of them for the first time since Governor William A. Comstock's emergency closing order ten days ago. Rudolph E. Reichert state banking said that most banks were "doing business in the best possible way," and congratulated the state's bankers on their cooperation during the emergency. He said that most banks were cashing checks that had not already been cleared, on the depository percentage basis laid down in the governor's second proclamation issued Tuesday. Generally, the banks were following the plan under operation for the past week in Detroit, allowing depositors to withdraw 5 per cent of their deposits. In Detroit at the opening hour there were no lineups outside the banks and few instances of unusual numbers of customers inside.
5.February 24, 1933Star TribuneMinneapolis, MN
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NEWS
Page. Movie Reel Editorial Movies Markets Winchell Ads Folly Island. Weather Radio Sports 16 Plans started for early pres. the west farm relief proposal. Page The United States general ruling on the proper of assembling to vote repeal. Page The senate banking heard charge the City control the mar ket for its stock. Page Senator assailed he clared control by New York Page The senate did some expense paring and then wiped added Page
Mrs. Theodore Roosevelt belated apology from health officer. Page Senator Thomas Walsh sailed for Cuba to marry sugar grower's Page President Roosevelt appointed Representative Douglas of Arizona as budget director. Page Michigan banks reopened. Page 2.
Dr. Charles urged cational guidance for employed adults. Page The repeal proposal was put Page The city council committee recommended the department personnel cut Page The park board had natural goldfish bowl Birch at Page Presidents of state teachers' col. united against the proposed curtailment of the state sys. tem. Page Northwest Feed Dealers told unregulated trucks affected their business. Knowledge of school subjects was called not the essential of education of girls by Dr. Malcome Mc. Lean. Page Miss Helen Wilson, former resident of Minneapolis, died Tre mezzio, Page 6. Patrick 79. deputy sheriff, fell dead. Page Two suspended Paul policemen were sentenced for larceny. Page
SINCE prohibition went effect several states which were dry have shown wet sentiment. map and story indicate the Page President-elect Roosevelt has decided he'll rely on service agents guard him the inanguration. He told Arlayne Brown, world champion revolver shot. offered that she won't be needed. Page The intelligence that gets marks not the only from educator. Dr. Malcolm college rector the University of urged education that will fit life. Page
The big Japanese drive in Jehol started. Page The Mount Everest plane party from Sicily after five Page WOMEN'S NEWS. Evon Nollette describes garments designed for double duty. Page 13. for Swedish meat balls by Kate Smith. Page 13. Restlessness is Elsie Page 13. Jessie DeBoth presents Sunday dinner menu. Page 13. SPORTS. Mickey shaded Frankie Knauer the six-round of the boxing Page 16. The city high school basketball will wind up today. Page 16 Page 17. Alexandria's quintet was elimi nated by the St. Paul Flyers in the feature of the amateur basketball the Ascen sions, Holy Cross and Belle Plaine also won. Page 17.
MARKETE
Bullish vanished in the Minneapolis pit; Chicago tumbled. Page 18. Stock values slumped to new low averages on large turnover. Page 19. Bonds suffered the worst relapse since the first the 19. Page 19. Dog and lamb trade advanced in South St. Paul: cattle prices mained unchanged. Page
6.February 25, 1933The Atlanta ConstitutionAtlanta, GA
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MICHIGAN STUDIES NEW BANK PLANS
Organization of State Reserve Bank Proposed by Senator Orr.
DETROIT, Feb. plans designed aid in releasing billion and half dollars in bank deposits were under scrutiny in Michigan tonight, while bankers awaited and national legislation for the 530 banks operating restrictions. One plan, calling for the issuance of transferra certificates against the frozen deposits of banks, brought forward by Rudolph E. Reichert, state banking commissioner, who under legislation pending before the state legislature would come the virtual banking dictator Michigan. The other, favoring the organization of state reserve was proposed by State Senator HerOrr, Caro, (Mich.) banker. plans make available at once 50 per cent of all deposits by organizing two take over the liquid assets of the First NationDetroit and the Guardian National Bank of Detroit, the two largest in city, were under cussion. Further it appeared, action tomorrow by the house in Washington on the Couzens giving powers over national banks to the comptroller of the currency. The olution was approve imously day by the house committee. Reichert's plan drew state-wide today. He proposed, in effect, the issuance of ferable which would be acceptable in virtually all purposes the same as currency. They would be issued the total volume of deposits that the banks are unable to pay cash. The only limitation circulation, Reichert said, would be the willingness of creditors to accept certificates on their face value. The certificates, Reichert said, aftbeing employed to pay rent, buy food, and other essentials, could be turned into the banks at full face value in payment of obligations owed to the banks. State Senator Orr, declaring he is proceeding with plan for organization of a state reserve bank, said reof many outstate banks now are held in Detroit institutions. which are withdrawals on the same basis as that of other itors- per cent of the total deposited. Under his reserve funds would be carried in outside In most parts of the state today, banks continued to pay out five per cent to depositors.
7.February 25, 1933The Kokomo TribuneKokomo, IN
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OPEN DEMAND OF MICHIGAN BANKS
Mich. Feb. and busimerchants Seventy-five Michiof southwestern ness men the capitol today came state gan Governor William demand Comstock newly ac. to force powers quired bankers open of the normal business governor group require banks, should afteight-day closing an commercial restrictions while continuing checking accounts with around savings safeguards
Church Pentecostal 2445 The Pentecostal street holding North Kennedy studies, conducted series of Bible on Sunday Elder Irvin Bradley, by subject bo "What Sin Unto The form an open take study Herman Basore, Mr. and sing the afterBeech noon and evening services.
Resigns as Ambassador Feb. Hoover today accepted President Reuben Clark, the resignation Mexico, effective ambassador immediately. The ambassador told days Presithe after he would submit his resignation.
Restrict Withdrawals the Lima First American Trust Company meeting night placed restriction withdrawals of effective today resolution, directors limit of two per cent on
8.February 26, 1933The Philadelphia InquirerPhiladelphia, PA
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Michigan Bankers Hail Passage of Couzens Bill
DETROIT Feb 25 (A. Michigan's bankers, eager for legislation which would lift. at least in part, continued limitations on banking business, tonight saw in passage of the Couzens bill Washington the first definite step toward the State's jam The bill signed by the President late today will give the comptroller of the the same emergency power over national banks as may be enacted by State Legislatures. In Michigan, legislation is now pending enable the segregation frozen assets in banks, and to make to depositors funds up to the percentage of liquid After eight days of almost commactivity banking in Lower Michigan and three more days of operation under rigid limitations laid down by Governor William A. Comstock group of merchants today made the first demands for of the restrictions proclaimed on 14. Seventyfive business demanded of the Governor in Lansing that he use his newly acquired extraordinary powers to force the banks to open for more business. The group told the Governor they were unable to with their funds tied up in banks, and demanded that he require financial institutions remove restrictions in commercial checking accounts while continuing to safeguard savings withdrawals. The Governor ex. plained that reserves of many outState banks are tied up in Detroit are releasing only per cent. He said that only Federal legislation could compel the Detroit banks to release more. In Detroit, meanwhile conferences continued between large depositors officials of the First National- the Guardian National of Commerce on the proposed formation two new banks, was expected. will release between 40 and 50 per cent. of deThe Detroit Clearing House Association plans scrip as medium of exchange in the city pending termination of the holiday The method was adopted as the most effective device for keeping up business and industrial activity Details of plan remained to be worked out.
9.February 27, 1933Stevens Point JournalStevens Point, WI
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MITCHELL OUT HEAD THE NATIONAL CITY
At Detroit Ford Takes Over Two Great Banks and Provides Entire Needed
Capital
DELOS SMITH New of the National City bank affiliates, today, accepted the resignation of Charles Mitchell, its and genius who made second largest bank in the world. By accepting the resignation, the Mitchell sever all the National City The was direct the senate baking committee hearings which Mitchell made sensational Strengthening Confidence
Other banking changes, all designed strengthen public confidence the nation's financial tem, occurred widespread night today. Limitations withdrawals of deposits extended Ohio cities, Indianapolis; Henry Ford offered reorganize great financial institutions in Detroit. Mitchell's resignation was submitted as left for Washington resume before the sencommittee banking and rency which has from him and other officers of National City affiliated companies story of bank operations outside the strict limitations of banking field aroused widespread Some New York financial observers the slump in stocks and bonds of recent trading days part the revelation National City operations, Mitchell statement resignation that unwilling what he called "public understanding" testimony should "react on the institution" his account.
Ford Lays Down Rule
An echo current disputes banks should outside the field of direct banking came in Detroit when Ford, up $8,250,000 cash let be why he had refused to go into other wealthy provide money for the instituHe believed that bank's first provide place for safe deposit, said, and thought that "bank loans should be made for and not purposes.' Under announced last night, Ford name all dibanks to take the First and the Guardian banks, since he providing all the capital for organization. Though official federal approval of the reorganization plans had been announced, was made that both the comptroller currency and the Reconstruction corporation approved. The R.F.C. will lend $78,000,000 help new banks pay 35 per deposits depositors the old institutions if require Eventually the two new banks be merged. The arrangement is expected lead lifting state-wide bank moratorium. Developments Elsewhere In Ohio, following banking developments grew out week-end conferences, which did not reach agreement until this mornCleveland, all banks except the National City restrict withdrawals from commercial and accounts five per cent exdays' notice. mayor declared three-day banking atorium, with the approval of all banks. In Akron, banks will permit withdrawals by depositors for "normal business" needs, determined by average withdrawals over several In Lima, the First American Trust company continued two per cent restriction initiated SaturThe Indianapolis Clearing House limit five per from all bank accounts, effective with the start business today, but Governor Paul McNutt reiterated that statewide moratorium was Maryland, where moratorium declared Saturday effective for three banking days, looked to legislators relief through bill limiting withdrawals by depositors, expected to be offered tonight.
OHIO BANKS LEAD
Lorain, Elyria, Youngstown, Massilon and Akron business today with degrees In Dayton and Montgomery counpurely localized three-day moratorium effect. Lima two the three banks Practically the banks joining the restrictions today were affected the CleveDayton banks. Cleveland stock exchange and voted No limit placed on the closing order.
All banks Lorain followed the lead of nearby Cleveland allowonly five withdrawals. Twelve banks villages and in Montgomery county joined Dayton banks in three-day Elyria banks, in the Cleveland limited savings account withdrawals approximately cent per month. No placed on commercial counts. Youngstown banks joined the limiting withdrawals one bank and $25 plus five
10.February 27, 1933The Macon NewsMacon, GA
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U. S. Moves to Strengthen Banks
NEW TREASURY HEAD TALKS TO MILLS
Woodin Called Into Conference as Federal Aid Is Extended Institutions
MONEY TO BE ADVANCED MICHIGAN ORGANIZATION
Feb. 27. The federal government Monday prepared to exert all available to strengthen weakened links in the country' banking system. William H. Woodin, secretary of the was here conference the outgoing are to act, not the said. With those words he turned aside all queries regarding the banking situations caused Michigan and Maryland to close their banks temporarily and led banks in number of Ohio cities limit withMills Sunday conferChairman Eugene Meyer of the federal reserve board assistance the treasury the banks could Directors the Reconstruction Finance corporation continued their study the They met in two protracted secret sessions Sun- m unusually authoritative sources was reported the R. F. has agreed to the two big Detroit banks reorganized new capital supplied by Henry Ford. said in the same quarter that an additional $40.would advanced by other financial institutions
FORD FINANCES two BANKS Detroit buttressed the lions Henry Monday came the of plans lead Michigan out of the difficulties which in the of statewide banking holiday two The banks whose capital will consist 250,000 furnished by Mr. and his are expected to open for business They be built from the of the First National Bank and the Guardian National Bank of whose depositors be able receive immediately about cent of their Disbursement remaining 70 per cent must await the Continued on Page
11.March 21, 1933Hickory Daily RecordHickory, NC
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New Detroit Bank Formed With Capital; Aid
WASHINGTON, March formation bank, the National Bank Detroit, capital of twenty-five lions dollars was day by the Corporand Alfred Sloan, dent of the General Motors corSecretarv Woodin approved the The announcement was made treasury, where been for days solution Detroit banking problems. bank will take over part of the assets the First National bank and the Guardian National Bank Commerce Detroit and sume part the deposits. Half of the capital. will be form of subscription the common stock and has paid by General Motors Corporation. The balance has been supplied the United States government through the Reconstruction nance form subscription to the preferred
12.March 21, 1933Ironwood Daily GlobeIronwood, MI
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and General Motors Contribute Capital.
Washington, March formation new bank the National bank Detroit, with was announced today the corporation and Alfred Sloan president the General Motors corporation Secretary Woodin approved the plans The announcement was made the treasury, where officials have been work for days solution Detroit banking problems. by proposed that the new bank take part the assets the First National bank and the Guardian National bank Commerce Detroit and assume part the deposits. Half the be form of subscription the common stock and has and paid cash Genera' Motors The balance has been supplied the United States through the ance form scription the stock The bank Detroit will the first under emergency bank act and the joint said make available to Detroit sound bank ample facilities Deposits May Be Available The issued by Jesse Jones, the Reconstruction corporation Mr Sloan said that depending upon the negotiation of contract between the bank and the conservators the old banks and subject working out of legal details, hoped approximately cent their net deposit immediately made available to the 800,000 odd depositors of the two old banks. This, the statement said, made possible through the new banks acquisition the more assets the First National bank and the Guardian National bank of commerce
13.March 25, 1933The Roanoke TimesRoanoke, VA
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DETROITERS RUSH BANK TO DEPOSIT THEIR FUNDS
Detroit Mich. March 24 The per cent liquid and 100 fool deposit money on the bank's day turned away savings they that accepting only could deposits ing tellers the Total deposits for the day More than had been posited largest deposit was the deposit was that General The known the Guardian National and General Motors and the finance the tablished under new federal
Explosion In Basement Under Bedroom
Noted Priest Had Been Active In SitBanking uation In Detroit
Mar. 30 black powder bomb ploded in the basement of the home of the Rev. Father Charles E. Coughlin in Royal Oak, suburb, early this morning. The bomb caused slight damage, but no one was injured. The bomb was thrown through basement window under the bedroom in which Father Coughlin was sleeping, police were told. Several windows were broken, and supply of canned goods in the basement was damaged. Father Coughlin told Detectives Elmer Ball and Edward Lieutzau of the Royal Oak police about noise which shook the house. heard the plosion called police, reached the house Father Coughlin had located the source plosion. Detectives they found trace bomb container but could smell black powder the in basement. Father Coughlin, who is pastor Little Flower Jesus church Royal Oak, has made himself known nationally through radio economic over dependent chain of stations. he had been engaged heated controversy over the troit bank situation. addition to Father the house was occupied by John Tully, his assistant and Father of the Dun Scotus faculty. The latter two were asleep upstairs. Police found a long cord hanging the basement window Father Coughlin's bedroom and reasoned that the bomb been lowered into the basement through the window. The principal damage, besides the broken windows, peared to result from broken steam pipe. Detroit and suburban police surrounded house after explosion, roping off curious sons gathered in considerable number. The explosion came at time Father Coughlin in limelight locally campaigner behalf of the newly National Bank Detroit and against those advocated reopening of Detroit big Nationbanks. latter First and the Guardian National Bank Complaced hands of federal conservators.
15.June 27, 1933The Times LeaderWilkes-Barre, PA
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MILLIONS TAKEN OF DEPOSITS
Chairman Denies He Was Connected With Houston Withdrawal
Detroit, June 26 (P)-A witness' charge long-standing Wall Street plot to "strangle" Henry Ford lay directly behind the of two national banks in Detroit rested tonight in the records grand jury investigating the city's involved banking afThe charge, the most sensational in two weeks of open testimony, made by Herbert Wilkin, Detroit banker, in detailing his knowledge of affairs leading up to Guardian Naclosing Bank which, tional First National BankDetroit, did reopen after Michigan Street believed deposits had Ford's chance, declared Wilkin, deplete working capital that must broke. think they them was the time finish realized they fooled." But were sadly testimony the witness startled hearers the declaration that $4,000,000 banks from the statewide holiday before February 14. He proclaimed withdrawals those such and the Second Michigan National Bank Houston, asserted many checks He cleared through Detroit Clearing House after heliday had been declared. was the home Houston, Jesse Corin testiHe link the failure National Bank from Guardian which he said the loan drawn, to obtain Houston withdrawals, with the saying the the impression made, Wilkin said Jones with bank, while was received from testifying himself and Jones officials the Houston bank, from that the with the Texas connections with curt answers, Firmly, Wilkin what gave Wall Street termed Harry questioning Harry Keidan, before Judge the one-man jury, which sitting as public who remained on charged that stand assets of the day, National were under-valued Federal bank examiners, charged it for "fellows cooperating the bank back price wanted Most which not Saginaw Bank's stock was bank finally purchased Perry Shorts, director Bank of Detroit, and associates, Wilkins price He offer was $140,000, and, the group went into the offer to $54 bank's for and finally accepted testified. which conferred with Awalt, then comptroller of the curWilkin said Awalt told too all country. Now, they tough in any place except Judge Keidan. can't find any other place," "But they were tough plenty tough," said Wilkin.
16.June 27, 1933The Atlanta ConstitutionAtlanta, GA
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For Closing of Detroit Banks
DETROIT. June standing Street to Henry Ford financially lay directly behind the closing of two national banks in troit tonight rested in the records of grand jury investigating the city's involved banking affairs. The charge. the most sensational in two made by Herbert R. Wilkin. Detroit banker. his knowledge affairs the closing the Guardian National Bank of Comwhich with the First National Bank Detroit. did not reopen after the Michigan banking holiday. Street believed it had chance. up Ford's in the Michigan banks declared Wilkin. deplete his working capital that he must deal with or broke think they realized that here the time to finish what they had started. But they were very sadly fooled. Previously in his testimony the ness had startled his hearers with the declaration that $4,000,000 was removed from the two banks before the state-wide holiday was proclaimed February 14. He said two such with drawals were those James Couzens, wife the Michigan senator. and the Second National bank of Texas. He also asserted that many checks had been cleared through the Detroit
Continued in Page 6, Column 8.
17.June 27, 1933Richmond Times-DispatchRichmond, VA
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Banker Alleges Wall St. "Plot" Against Ford
Heavy Withdrawals Were Made Before Holiday to Tie Up Deposits, Charge
DETROIT June 26-(P)-A witness' charge that long-standing Wall Street plot to "strangle" Henry Ford financially lay directly behind the closing of two national banks in Detroit tonight rested in the records of one-man grand jury investigating the city's involved banking afThe charge, the most sensational in two weeks of open testimony, was made by Herbert R. Wilkin. Detroit banker, in detailing his knowledge of affairs leading up to the closing of the Guardian National Bank of Commerce which, with the First National Bank-Detroit, did not reopen after the Michigan banking holiday "Wall Street believed it had chance, by tying up Ford's deposits in the Michigan banks declared Wilkin to so deplete his working capital that he must deal with them
18.September 2, 1933The Spokesman-ReviewSpokane, WA
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BANK DIRECTORS OF
Detroit Bank Receivers Set Out to Collect Assessments on Stock.
JURY HEARS CHARGES tions, One Says
Caused Failure.
Sept. receivers two big closed banks took the offensive in suits against eight while the county grand jury three directors the tutions charges made by SenThe suits were based shares the First and the Guardian National Bank ComMost the the banks was held the Detroit and the Union Group, Inc
Promise Real Action.
The receivers. joint statement accompanying the promised that there will "plenty action" and declared champion the depositor Uncle Sam statement came while the bankers again telling Judge Harry Keidan, sitting man grand that failure of government furnish aid through the Reconstruction Finance corporation and the severity bank examiners to blamed for the lapse indicated the receivers prepared fight assessment stockholders in the two holding today were Wilson former chairman the Detroit: Emory Alger, former the
Mills Again Denying. declared "utterly false" method used the bank's estimating liquidity He denied that checks" the First National and any bank, Senator James Couzens had charged previous timony, and denied millions" made to friends of the directors. Clark blamed Senator Couzens directly for the failure of the two banks. "Senator Couzens was critical the Reconstruction Finance corporaloan asked by the Union GuardTrust asserted "That upset the apple Alger assailed "luckless and eralized charges" against the banks. and declared reorganization would sure depositors much larger distribution possible under the present receivership
19.October 28, 1933The Ann Arbor NewsAnn Arbor, MI
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CHARGE BANK SUITS
Receivers Assert Guardian Group and Detroit Co. Acted Unlawfully
Detroit. troit Bankers and the Guardian Detroit Union Group. organized to fraudulently deceive Detroit's two closed depositors national for the banks two holding companies used the bank's assets for National chram Guardian National Bank of charged bill and to suit started by stockholders seeking to prevent 100 per These ordered the of the Guardian and 000,000 against of the Detroit Bankers Their collection prevented by temporary stockholders ask be made permanent Articles organization of the holding companies admitted liabality of stockholders was enforceable against the hold. ing stockholders, the All of group fraud on tional banks' by ing the holding and liable for share of the against the banks, the charges. Judgments in the full amount of the assessment against plaintiffs and intervening petitioners asked Besides plaintiffs in the Junction approximately petitions National and in the Guardian
20.December 8, 1933Marshall Evening ChronicleMarshall, MI
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Pay 104,000 Small Depositors of the Guardian Nat. Bank
Dec With the R. F. C. ready to advance funds to pay off 104,000 small depositors of the Guardian National Bank of Commerce. De troit, in full. federal officials today studied the legality of proposal making the payment possible. The proposal calls for large depositors to agree to 'freeze' percentage of their future dividends from the bank receiver. Chairman Jessie H. Jones of the R. C. announced Thursday that he had received the proposal He said. however. that his department is unable to make the necessary loan of $4,000.00 to $5,000,000. unAll Comptroller of the Currency T. O'Connor made application The comptroller could not be reached for statement. but at his office It was said no decision has been made on the proposal.
21.January 6, 1934Detroit Free PressDetroit, MI
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Is Judge Assigned to Hear Bank Suit
Carolinan on
Federal Judge Johnson Friday the Chief Justice United States Supreme Court the brought stock tional to prevent double The appointment was recom mended Judge presiding over the Sixth Circuit, which Detroit situated judge needed the case because docket Federal his Hayes he would ready case agreement tween attorneys the stock holders Federal receivers Bank National Commerce Originally for Jan 15. the was delayed for month the motion the who pleaded many being under available take stand in the assessment suit.
22.February 13, 1934The Muskegon ChronicleMuskegon, MI
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BUILDING IN VIENNA HOUSING FAMILIES SOCIALISTS SHELLED
Austria Government Artillery Smashes Greatest Apartment Edifice in World as Civil War Grips Country; No One Knows How Many Persons Were Killed.
Vienna, Feb. and children were fed to the flames of civil war today as government artillery smashed the Karl Marx apartment building housing 2,000 Socialist families. No one knows how many were killed. The howitzers apparently smashed the third and fourth floors of the greatest apartment building in Europe, the middle arch collapsed. The shelling of the $4,000,000 structure only one corner DEPOSITORS TO of the aspect of Austria today while the forces of Chancellor Engelbert Dollfuss struggled through bloody streets to put BE PAID OFF down the rebellion of the Socialist party. Apparently at least 200 have been killed. 136,000 with $1,000 or Forces of Socialists were in possession of the great munitions plant. forces charged Less in Detroit Guardthe repeatedly desperate attempt take position ian to Get All Men fell. dead and wounded. but there was no time nor opportunity count the Detroit. one The Karl Marx buildday the anniversary Michigan's ing was horrible some momentous bank holiday. veterans fought had seen in notice issued that 136,000 days the World depositors less the Machine blazed from the winGuardian dows the homes laborers at the merce when closed, be paid soldiers sought in through plan believed to found unique banking history. grenades, and tear just ago tomorrow insufficient batter the that Comstock resistance. So they request howitzers. the state's banking associaThe ripped into the ordering bank functions concrete Cement rose suspended eight Before Whole corners of the that period had the building disappeared. holiday had spread Following the artillery attack. up government forces swarmed into the presidential proclamation all banks country. 200 Waive Claims Socialists continued their firing Today's announcement told of comarrangements whereby 200 was against the also larger depositors Guardian Na- tackers. tional waive their claims any share Hand grenades fighting developed in eight cent financed to close the combatants Reconstruction Finance quarters. tion loan, make broke Heavy fighting out (Continued on Page 9. Column 1) again, after hours comparative calm, Floridsdorf factory Man in Critical Socialists, lost fight for Condition Following possession of their captured. Bite by Pet Dog Eleven reported dead in this engagement. same time. defenders Raymond Wheater. 23 years Muskegon Heights, critically the big municipal flat the complex with blood poisoning which developed Schlingerhof, bite by his had been handed an sultation of doctors held afternoon. artillery opened Mr. Wheater. who employed by against the buildings. Field howitmers the Garnaat was suffer- used. minor illness when his dog The held off with ararmy bit was not tillery for hours. The big guns finaltime and were trained into day his fever ascended 106. with machine stationed He the Wheater, corners building former Muskegon Heights police pouring deadly fire into the sergeant. 885 Alberts Field artillery shells great Jean who fragments one corner of fered broken week. building moved hospital his Amelia 1044 socialist nest was home Church. Wood street, who fracture blown Elsewhere, whole hip surface the moved from the hospital to big only an airplane photo capable giving complete The condition Frank Steiner. 508 pockmarked by Amity street, brought For hours, the attackers confined Hackley hospital Saturday themselves machine gun and rifle Clock suffering (Continued on Page 9, Column 3) stroke, reported as
23.February 14, 1934Daily NewsNew York, NY
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Detroit's Closed Bank to Pay Off Small Accounts one day of the anniversary of Michigan's momentous bank holi day, official notice was issued today that 136,000 depositors, with $1,000 or less in the Guardian National Bank of Commerce when it closed, will be paid in full through a plan believed to be unique in banking history. Comstock It was just one year ago tomorrow that Gov. William A. Comstock signed a proelamation, at the request of the State's major banking associations, orderin~ all bank functions suspended for eight days. Before that period had elapsed, the bank holiday movement had spread to other States, to be climaxed on March 4 by a Presidential proclamation closing all banks in the country. Today's announcement told of completion of arrangements where by 200 larger depositors in the Guardian National waive their claims to any share in an 8 per cent. pay off financed by an RFC loan, to make it possible for smaller depositors to get all of their money. per cent. The new pay-off will begin about Feb. 23, and will amount to about $8,000,000. Recalling his action and the unexpected nation-wide repercussions, Gov. Comstock said he would do it again, "under the circumstances." The holiday tied up $698,544,766 in Detroit banks and trust companies alone, and two of the banks, the Guardian National and First National Bank-Detroit, did not re- while First National depositors have received 50 per cent. of their accounts, or approximately $200,000,000.
24.March 1, 1934The Norfolk PressNorfolk, NE
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The announcement that Ponzi, the get-rich-quick wizard, who sold stock in a bogus scheme that netted him a million dollars, has served his 11 years in prison, and is discharged, calls to mind the fact that Ponzi's plan was no different from that of a hundred other plans promoted by recognized "going concerns," but who robbed innocent people just the same. They have not been molested, notwithstanding use of the U. S. mails to sell their worthless goods. There was a gentleman named Kreuger who did some extraordinary things, particularly in selling his scheme to some of our greatest financiers and inducing them to participate in anticipation of abnormal profits. A certain Mr. Lowenstein, who committed suicide by dropping from an airplane while crossing the channel, was another. Mr. Insull, now a fugitive in Greece, was another. Mr. Wiggins of the Chase National bank and representatives of several other banks and promoters were all in the same game. Today we have hundreds of concerns whose capital issue, on which they demand dividends, is from 2 to 10 times the actual value of the business. Hundreds of them have squeezed some of the water out. The late Edward Baker was said to be the largest holder of railroad stocks in the nation— estimated at 200 millions in 1928. When he died and the water was squeezed out, auditors and appraisers reported his entire estate at 75 millions. Then we have the Teapot Dome, the Sinclair deals, the airmail and steamship grabs. During the lifetime of the late Bob LaFollette, ranking member of the Interstate Commerce commission, he always held that the actual value of the railroads was not more than 15,000 millions, a large part of which had been donated by communities as "rights of ways." After LaFollette's death the roads manipulated a new valuation plan on which they demanded rates that would pay dividends. The new plan was based on what it would cost to purchase all the land donated, and what it would cost to replace with new, every building, car, engine and shop equipment. Result: the valuation was increased about 10,000 millions, and rates were increased more than 30 per cent. But the real object was to issue more bonds-and more stock. Billions of bonds were negotiated and millions of stock sold to employes under promises of holding their jobs. Today the bond issues of the railroads are equal to the "replacement costs"-and the stock is not considered. In this matter the President of the American Bankers association denounced the railroads as the only big business that had no sinking fund for bond redemption, yet had the nerve to ask banks to buy their bonds. Poor Ponzi, like Dr. Cook, the
IT NEVER HAPPENS By ART THOMAS
Arctic nagivator sent to the penitentiary for 20 years for being connected with a fake ofl company, was the goat in a free-forall field of get-rich-quick Wal- bank functions suspended for eight days. Before that period had elapsed, the bank holiday movement had spread to other states, to be climaxed on March 4 by a Presidential proclamation closing all banks in the country-and what a deplorable condition was revealed! On Feb. 13, just one year later, announcement was made that, with the assistance of the federal government, and the consent of 200 of the larger depositors, the 136,000 depositors with $1000 or less in the Guardian National Bank of Commerce of Detroit when it closed will be paid in full.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
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Guardian National Bank of Commerce · UID 870301598
