8959. Clare County Savings Bank (Clare, MI)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
savings bank
Start Date
May 1, 1932*
Location
Clare, Michigan (43.819, -84.769)

Metadata

Model
gpt-5-mini
Short Digest
07bffdc7

Response Measures

Full suspension, Books examined

Other: Receiver issued certificates and local scrip; depositors' committee sought signatures for reorganization.

Description

Clare County Savings Bank closed its doors in May 1932. Depositors became panicky with heavy withdrawals (reported in trial testimony), a depositors' committee organized a reorganization plan and obtained signatures, and by October 1932 reopening was assured. Later (1933) directors were tried and acquitted. Sequence: depositor panic/run → suspension/closing in May 1932 → reorganization efforts and reopening assured by Oct 1932.

Events (6)
1. May 1, 1932* Run
Cause
Rumor Or Misinformation
Cause Details
Depositors became panicky after hearing reports (state banking examiner reports circulated) and rushed to withdraw funds; testimony at trial cited panic and heavy withdrawals.
Measures
Depositors' committee formed to reorganize bank; solicited signatures of depositors to a reorganization plan (eventual issuance of receiver's certificates and local scrip).
Newspaper Excerpt
SAYS DEPOSITORS BECAME PANICKY ... Hall declared ... the heavy of deposits
Source
newspapers
2. May 1, 1932* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed in May 1932 amid insolvency concerns; a receivership was later established and receiver's certificates issued as part of reorganization/liquidation procedures.
Newspaper Excerpt
the Clare County Savings Bank, which closed its doors May ...
Source
newspapers
3. October 5, 1932 Reopening
Newspaper Excerpt
REOPENING OF CLARE BANK IS ASSURED ... required ... depositors' signatures for reopening the closed Clare County Savings bank has been obtained, and depositors committee working final tails for the reopening No date has been set
Source
newspapers
4. May 15, 1933 Other
Newspaper Excerpt
INVESTIGATE CLARE CO. SAVINGS BANK ... investigation of the affairs ... Judge Ray Hart ... sitting as grand jury ... Receiver's certificates for percent of the accounts ... Allen R. ... was appointed receiver ... the scrip is being used locally exchange ... the scrip will medium called in when the certificates are payable
Source
newspapers
5. September 29, 1933 Other
Newspaper Excerpt
SAYS DEPOSITORS BECAME PANICKY ... prosecution of five directors ... charges of receiving deposits while knowing the bank insolvent ... testimony indicated heavy withdrawals up to Oct[ober] ... Hall declared ... cash reserves of the bank never were below the legal of reposits ... nothing as far as indicate assets was such as to cause any ... the heavy of deposits
Source
newspapers
6. October 4, 1933 Other
Newspaper Excerpt
DIRECTORS NOT GUILTY ... quittal of the five director defendants in the Clare County Savings bank case ... Handed down his which set the five free ... placed all blame for the the Clare County bank squarely on commission and the court
Source
newspapers

Newspaper Articles (6)
1. June 1, 1932 Detroit Free Press Detroit, MI
Article from Detroit Free Press, June 1, 1932

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Article Text

Investors' Round Table M. WHITE MANUFACTURING CO.'s employment figures are the best in the past 18 company more than 13,000 employees, reflecting expanding activity tinued high by the greatest activity the Highland Park plant, which is entirely the production of Ford Fordor, sedan, convertmodels which Briggs has built several years. employees at the Highland Park plant increased 134 cent 266 per over March, when the first Ford volume releases were received. Due full time operations, relative increases In paytotals are than the perstantially the Mack plant The facilities this plant voted work for Plymouth, De Soto and Chrysler. Like gains are at Waterloo where orders for seasonal peak the refrigerator reached June, when total more than 8,000 units. & BRAND'S Chicago office at 208 South La Salle St. arranged to take over number trading been handled by Frazier, Co's Chicago which being Frazier, Jelke continue direct private Ettinger Chicago office, with the Frazier Jelke wire system covering principal cities the United States and Frazier, Jelke & Co.'s main office is in New York GENERAL meeting of the deA positors of the Clare County Savings Bank, which closed its doors May will be held in the Clare High Monday evening. that time the committee make investigation the bank's will its report. The consisting E. W. Brown, B. Dohmet with stockholders and decided employ forJudge Arthur and will preside at of the resident of begun the praccity following his and mittance the Michigan Bar. He time mayor the city If the report of the committee warrants action. movement will be the sary 85 per cent signatures the depositors reorganize the bank and open for business. PLAN to facilitate the acquistA tion by investors of diversifled group of stocks has been accordance the of York bers of Exchange, Tuesday the composition of the group stocks set up under this plan. This comprising single share of each companies, made available actual prices, plus regular odd-lot the closing 26 apyield, the basis of cent. stocks in Group which have been suggested Dr. Max Winkler for the firm, General Electric, General Socony United tional Power and Light, Brands, Columbia Shattuck, Marine Midland, Solvents, Bendix Alaska Juneau, and Stone While the group offers an ownership interest diversified list of common the plan relation trust. The pays for, and duly the share certificates fifteen corporations listed and dealt on the New Stock In conformity Stock Exchange Weingarten, disclose in tail the and charges the cost the group They also enlist dealthe basis commission charge the investor. share of the metal. Out of world supply gold about latest weekly bank this country's coffers held and France's, $3,140,000,000. own stock reached about last peak has declined roughly $800,000,000 gained about much. The gain in France's yellow metal not sulted requisitions upon metal, but the from New York Paris has accounted for most But why does France, with large gold in the sult the condiyear. France had large deposit London and New York, the waves which gan in Austria year ago, spread Germany England, she started calling home her funds, her New York balances. Of Europe, the for capital, anl money began The outflow from the United States during the past been about rapid practicable in of the desirability using ships, the disinclination more than $15,000,000 per vessel.

2. June 24, 1932 The Ironwood Times Ironwood, MI
Article from The Ironwood Times, June 24, 1932

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Article Text

MICHIGAN FINANCIAL SITUATION BRIGHTER More Banks Being Reorganized, Less Being Closed Throughout Michigan TWO U. P. BANKS CONSOLIDATE Interest in state banking affairs recently shifted to the Upper Peninsula as the result of a merger in Houghton of two national banks and the suspension of business by two banks at Iron River. The Houghton National Bank and the Citizens Na. tional Bank, of Houghton, were consolidated, the business of both institutions hereafter to be conducted by the Houghton National Bank. All deposit liabilities of the Citizens National have been guaranteed by the remaining institution. Houghton National Bank, headed by A. N. Baudin, was organized in 1865. It has resources in excess of $4,000,000 and deposits of approximately $3,000,000. The Citizens National Bank, organized in 1901, had resources of about $1,000,000 and deposits in excess of $750,000. Its president was A. F. Heidkamp. Merger of the two Houghton national banks, followed several days after the suspension of business by the Miners State Bank, of Iron River, and the Commercial Bank, of Stambaugh. The Iron River bank suspended on June 9. Directors declared the suspension was voted to effect a reorganization. The Commercial Bank, of Stambaugh, a neighbor institution, closed its\ doors the previous day. Two other bank suspensons were reported recently. On June 13 the Sherwood State Bank, Sherwood, organized in 1909, failed to open its doors. The suspension followed recent assessments on the stockholders and other efforts to keep the bank in operation. It is believed that depositors will be paid in full. The private bank of Churchill and Webber, at New Era, failed to open for business on June 14, and will liquidate. The bank was established in 1909 as a branch of the Churchill and Webber bank at Shelby. When the latter institution failed in 1931, the depositors fo the New Era bank agreed not to withdraw their deposts. Resources approximate $113,000. R. E. Reichert, banking commissioner, expresses satisfaction with the progress made in reorganization and reopening activities. He points out that, as a result of the co-operative efforts of depositors and state banking officials, assisted by new legislation, nine banks have been reopened since December 1, 1931. They are at Saline, Ypsilanti, Reading, Romulus, Bessemer, Bridgewater, Petosky, Caledonia and Fenton. Eight more have completed ararngements for reorganization and will reopen shortly. Reichert said that 35 other banks are working toward reorganization and are in various stages of progress, pointing either to their eventual reopening or the establishment of new banks. So far this year, sixteen banks have suspended business, while 13 were closed. Judge Frank L Doty has granted a court order approving the plan for reorganization of the First State Bank, of Milford, following a hearing which showed 89 per cent of the depositors in favor of the plan. A decree was to be signed this week providing for the bank's reopening. The Coloma State Bank, Coloma, was to be reopened late this week following an order by Judge Charles E. White terminating the receivership. A court order also was issued recently at Caro for the reopening of the State Savings Bank of Caro. R. E. Reichert, state banking commissioner, states that the Bay City Bank is in a condition to reopen at any time. This statement followed completion of an analysis and appraisal of the bank's assets. The depositors' committee of the Benton Harbor State Bank is within $100,000 of its goal in securing depositors' signatures to a reorganization plan. Forty per cent of the required amount of $850,000 of the deposits of the closed Clare County Savings Bank, Clare, has been signed to agreements for the bank's reorganization and reopening. Nearly $250,000 was paid out in dividends recently to depositors in three closed Michigan banks. H. R. Botkin, receiver, First National Bank, of Buchanan, closed last October, made a 45 per cent dividend distribution totaling $190,000 to 1,400 depositors. Depositors of the defunct State Bank, of Freeport, are receiving a 15 per cent dividend. W. R. Lobdell is receiver. The payment will total $31,100. A ten per cent dividend was distributed this week to depositors of the defunct Bridgman State Bank, closed in December 1930, by T. F. Gore, receiver. The payment totals about $27,000. The Bridgman bank has thus far paid out 30 per cent. A court hearing will be held befor Circuit Judge E. C. Pugsley, to facilitate liquidation of assets of the defunct Churchill and Webber private bank at Shelby. A plan has been proposed by which creditors would be able to obtain 20 per cent of general claims by actual purchase of notes, mortgages and security assets of the bank or by payments of cash as an alternative. The plan provides for the sale of the bank's assets at public auction. He came back a few days later and before the. officials could single him out again he had gotten on the outside of a few more free meals. Finally the county board agreed to appropriate money for the feeding of the indigent army. After that, it didn't last long. The last straw was reached when the men refused to help the city clear a municipal park. Shortly after the law was laid down. The bums had to go or something unpleasant would happen. Today men are living in jungles near the city. They are seldom seen on the streets. They do not molest anyone. The only time they ever were a nuisance was when the good people of Iron River tried to help them out. Iron River today has resumed its usual trend of life. Today We do not rub elbows with filthy bums. We are not accosted on every corner. The city hall is a clean building once again and the sidewalk in front of it may be walked over dry-shod. Better forget about the soup kitchen and flop house, Menominee.Iron River Reporter.

3. October 5, 1932 The Herald-Press Saint Joseph, MI
Article from The Herald-Press, October 5, 1932

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Article Text

REOPENING OF CLARE BANK IS ASSURED Mich., Oct. required cent depositors' signatures for reopening the closed Clare County Savings bank has been obtained, and depositors committee working final tails for the reopening No date has been set

4. May 15, 1933 Lansing State Journal Lansing, MI
Article from Lansing State Journal, May 15, 1933

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Article Text

INVESTIGATE CLARE CO. SAVINGS BANK Judge Ray Hart of Midland Is One Man Grand Jury For Probe Special to The State Journal: CLARE, May 15 The investigation of the affairs of the Clare Counof Savings bank is going forward ty In with Judge Ray Hart of Midland sitting as grand jury. The investigation is being conducted by Assistant Attorney General Maynard and he is assisted by Theodore ward attorney for Clare prosecuting county This bank was the county's largest No financial institution and was considespecially strong one until it ered an was closed May of last year. positors' committee was formed and the necessary of deposits for the re-organization of the bank However, when the plans had been completed for the receivwas and this investigation of its affairs was petitioned by deposAllen R. cashier of the Farwell State bank was appointed receiver and is in charge of the bank Receiver's certificates for percent of the accounts of the bank have been cheap issued and upon these certificates the those Clare Chamber of has given scrip which is being used locally exchange. The scrip will medium called in when the certificates are payable Clark Sutherland. who was cashof the bank the time of its closing. has been connected with the bank since its first organization. Associated with Mr. Sutherland in the organiza- their tion of the bank about half century ago was W. Perry and Joseph Hudson. but both are deceased. The bank is housed in building which was about 14 years ago and is one of the finest bank build in this of the state. No inings formation has given out from the who investigation and there has been intimation as to the time that will #equired to complete the work of the questioning of witnesses.

5. September 29, 1933 The Saginaw News Saginaw, MI
Article from The Saginaw News, September 29, 1933

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Article Text

Examination of Assistant to Clare Bank's Receiver Gives Aid to Defense Side. SAYS DEPOSITORS BECAME PANICKY Hall Says Operation of Bank Gave No Indication of Alarming Condition of Assets— Reports of State Banking Examiner Cited Depositors Heard. BY HENRY G. HUNT (Dally HARRISON. Mich., Sept. The state rested its case at noon Friday in the prosecution of five directors of the Clare County Savings bank. on trial in eihcuit court here before Judge James S. Parker Flint charges of receiving deposits while knowing the bank insolvent, with intent defraud depositors. The defendants, James A. McKay of Detroit. Clark H. Sutherland, Douglas McGuire. Homer and Anderson of Clare, expect start their Monday when the trial defense after week-end adjournment. Former Official Quizzed. Efforts of Perry Maynard. the directors had their bank insolvent beclosed on May in the examination of the most Thursday day and Friput on the stand but their testimony was of little imporwho has into the his with the affairs before and since the closing, turned to more valuable to the state. Hall declared up Octo, November 1931 cash reserves of the bank never were below the legal of reposits and that nothing the far as indicate assets was such as to cause any Dec. that the to its restrict legal of deposits right requiring 90-day notice Hall his the heavy of deposits that

6. October 4, 1933 The Saginaw News Saginaw, MI
Article from The Saginaw News, October 4, 1933

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JUDGE SCORES Blame for Collapse of Clare Bank Placed on Michigan Authorities. DIRECTORS NOT GUILTY (Special to The Saginaw Daily HARRISON, Mich., Oct. quittal of the five director defendants in the Clare County Savings bank case here Tuesday afternoon will pave the for widespread legislative the Michigan banking James Parker Flint, presiding jurist, has his way. Held guiltless of any intent cheat their friends the bank, one the oldest section the state, the James McKay. former president bank and widely known 80-year Clark H. Sutherland, former cashier: Clare druggist and Homer Douglas, Clare barber. both directors. The fendants represented by Robert Curry, Saginaw attorney. Blames State Departments. The crowded court room Tuesday presented kaleidohuman Judge Parker handed down his which set the five free at same time placed all blame for the the Clare County bank squarely on commission and the court that resembles the interior rural school more than court of justice and equity seated men and women whose life had been swept away when crashed; there were relative friends the defendants, their faces clearshowing strain under which laboring. Within bar before judge's bench the five defendants, each making