8795. Security Trust Company (Rockland, ME)

Bank Information

Episode Type
Run Only
Bank Type
trust company
Start Date
October 2, 1920
Location
Rockland, Maine (44.104, -69.109)

Metadata

Model
gpt-5-mini
Short Digest
3216f400

Response Measures

Accommodated withdrawals, Public signal of financial health, Books examined

Description

Articles (early October 1920) describe a depositor run on Security Trust Company in Rockland driven by rumors. State Bank Commissioner Palmer's public reassurance stopped the withdrawals and many depositors re-deposited funds. The bank did not suspend payments. Dates estimated from newspaper text (run occurred Saturday and Monday around Oct 1-4, 1920).

Events (1)

1. October 2, 1920 Run
Cause
Rumor Or Misinformation
Cause Details
Unfounded rumors spread in the community prompted depositor uneasiness and withdrawals; officials sought parties who started the rumors.
Measures
State Bank Commissioner Frank L. Palmer publicly reassured depositors; many who withdrew re-deposited funds; directors voted not to suspend interest on withdrawn deposits returned before Nov 15.
Newspaper Excerpt
a decided slackening in withdrawals from the savings department of the Security Trust Company which on Saturday experienced a run during which about $100,000 was withdrawn.
Source
newspapers

Newspaper Articles (2)

Article from Daily Kennebec Journal, October 5, 1920

Click image to open full size in new tab

Article Text

Reassured Patrons Return Deposits to Rockland Bank Rockland. Me.. Oct. 1-A decided slackening in withdrawals from the savings department of the Security Trust Company which on Saturday experienced a run during which about $100.000 was withdrawn. was apparent today. Officials were convinced that the run was nearing its close. The statement by State Bank Commissioner Frank L. Palmer as LO the soundness of the institution had such a reassuring effect that the withdrawals were said to have been nearly counteracted by deposits. "A number who withdrew their savings Saturday re-deposited them today." said Commissioner Palmer: Everything is coming out all right." Officials of the bank announced tonight that the day's deposits had exceeded the withdrawals by several thousand dollars. The directors voted today not to suspend interest on withdrawn deposits which are returned before November 15.


Article from Daily Kennebec Journal, October 7, 1920

Click image to open full size in new tab

Article Text

SEARCHING FOR PARTIES WHO SPREAD RUMORS ABOUT ROCKLAND BANK Rockland, Me.: Oct. 6.-Frank L. Palmer, State bank commissioner. has been in Rockland since Sunday endeavoring 10 locate the parties who started rumors that resulted in a run Saturday and Monday upon the Security Trust company in which several hundred thousand dollars were paid out to depositors who were rendered uneasy by these rumors. The run finally was stopped Monday through the presence of Commissioner Palmer at the banking rooms and his reassurance to those who sought his advice that the bank was perfectly solvent and that a recent audit by the State Banking department had shown an excellent financial condition with a large surplus and loans that were of & very liquid nature. The president of this bank is Maynard S. Bird of Rockland and Portland. and it is considered one of the