Union Guardian Trust Company (Detroit, MI)

Episode Information

Episode UID
9005471598
Episode Type
Suspension → Reopening
Bank Type
state
Bank ID
900547 routing
Routing Number
9-0054
Start Date
February 14, 1933
Location
Detroit, Michigan (42.331, -83.046)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
c50628d2188a9536

Response Measures

None

Events (2)
1. February 14, 1933 Suspension
Cause
Government Action
Cause Details
Governor's proclamation ordered an eight-day statewide banking holiday because of an acute financial emergency centered on the Union Guardian Trust Co.
Newspaper Excerpt
Governor William A. Comstock early Tuesday proclaimed an eight-day banking holiday in Michigan ... 'in view of the acute financial emergency now existing in the city of Detroit and throughout the state of Michigan.'
Source
newspapers
2. February 23, 1933 Reopening
Newspaper Excerpt
The extraordinary holiday ... is effective Tuesday, to continue through February 21. As a matter of fact, the banks will not reopen until February 23 ... adjustments could be made whereby many of the banks ... be in full operation before the expiration of the eight-day holiday.
Source
newspapers

Newspaper Articles (21)
1. February 14, 1933 Willows Daily Journal Willows, CA
Article from Willows Daily Journal, February 14, 1933

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Renewed FORMER LOCAL MILEAGE FUNDS Ford Blamed TAKES Ord WAGNER Ferry Fight Michigan as FOR STUDENTS DUTIES AS Asked Declares Bank Free Service is "Holiday" as IS ALMOST GONE SIGHT IN BLAST United Press. BANK RECEIVER The Ord ferry came back into the LEADS Boxcar Bandit Killed CHAMPS Governor William A. Comstock, who spotlight today when delegation of in the early morning hours, declared by F. Special Cop Bayliss residents appeared before the Students of the Glenn County High School district, which includes Willows and Elk Creek high schools, will probably not receive transportation mileage after April This became known today following last night's meeting of the high school trustees here. Lack of funds, it was said, will prevent payment of mileage for a part of this school year. Payments will be resumed, it was said, when sufficient funds become available. The resignation of Mrs. Maidie Thomson, former shorthand and typing teacheria Willows high school, was received and accepted at the meeting. Mrs. Thomson for the past year has been living at Alameda. A call for bids to supply wood for Elk school during the coming year was ordered. sweeping eight-day banking moratorium throughout the state of Michigan, today at Detroit charged to of ficials of the Ford Motor company spnsibility for the unprecedented move, "The Ford Motor company refused to make an agreement to subordinate its deposits in the Union Guardian Trust company and the result was necessity of a moratorium,' the Governor declared. Governor Comstock added later that "pressure" had been brought on him by "certain Detroit banking interests" to make him retract his Ford statement. am not going to retract,' the Governor said. "The truth might as well be told now, and insist that shall be told.' The moratorium temporarily paralyzed the finances of the state's 5,000, 000 persons and the nation's automobile capital, as hasty arrangements were made by telegraph companies for funds to cash money orders. Outstate bankers, summoned by clearing houses when the Governor's early morning proclamation became known over the state, laid emergency plans to provide cash for small depositors to buy food, fuel, medicine and other necessities of life. Carl E. Wagner. of San Francisco special deputy in charge of the Bank of Willows, arrived today to take over his duties. He was accompanied here by George Walker of the State Banking department, who is supervising the liquidation of closed banks in this district. Wagner had no statement to make today concerning plans for handling of the bank receivership A native of San Francisco and son of Walter Wagner, secretary of the California Irrigation District sociation, the bank executive has had 16 years banking experience, which about equally divided between metropolitan and agricultural communities He received part of his college education at Stanford University later studying law at the University of San Francisco. During the war he was in the naval air service Most of his banking career has been member of the staff of the Bank of America. He has been employed in San Joaquin, peninsula and bay district is married and has two Wagner United One of four men surprised while looting Santa Fe freight train six miles south of Santa Ana early today was shot and killed by special railroad officer. The others escaped. Speeding along in the moonlight. trainmen number of boxes of cigarettes being pitched out of box car short distance ahead of the caboose. The heavy train was stopped and Train Rider W. A. Thomas raced along the tops of the cars just as four men leaped from the box car He fired and one man fell fatally wounded The dead bandit was not immediately identified. Gerald Witthoeft Redding plumber and former well known Willows resident, has suffered loss of one eye result of an explosion which fol lowed his attempt to cut off the bottom of gasoline drum with blow torch Witthoeft, who had lived here for about 10 years and who formerly was employed by & Whitman here, submitted to two-hour operation in which the right eye and splinters of bone were removed. His nose also was cut open by the blast, and laid over the upper lip. but doctors succeeded in sewing up the wounds and said only slight scar would be left. The drum had been empty for eral months. Before working on it, Witthoeft had washed it out several times with Witthceft left here last year for

2. February 14, 1933 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, February 14, 1933

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EIGHT-DAY HOLIDAY FOR BANKS ORDERED IN MICHIGAN STATE Governor's Proclamation Is Issued At Conclusion of AllNight Session EMERGENCY IS DECLARED Feared Condition Affecting Detroit Institution Would Spread Rapidly Detroit. Feb. 14.-(P)-With dramatic suddenness, Governor William A. Comstock early Tuesday proclaimed an eight-day banking holiday in Michigan at the conclusion of an allnight conference with bankers from all over the state and with federal and state banking officials. The extraordinary holiday, unprecedented in Michigan, is effective Tuesday, to continue through February 21. As a matter of fact, the banks will not reopen until February 23, since February 22 is Washington's birthday and a legal holiday. Governor Comstock's proclamation said the holiday was proclaimed "in view of the acute financial emergency now existing in the city of Detroit and throughout the state of Michigan." Governor Comstock explained that he was summoned to Detroit from Lansing Monday afternoon to a conference "precipitated by an unforseen and acute situation which had suddenly arisen in the affairs of one of our leading financial institutions, the Union Guardian Trust Co." Gives Time to Negotiate He said it was "the consensus after long conference of those present that the difficulties might be ironed out provided time could be had for negotiations." "As matters stood," the governor's statement said, "it would have been necessary to close the doors of the institution involved on the morning of February 14th, which would likely tring in its train disaster to many other of our banking institutions in Michigan." "The crisis was caused by the inability to realize immediately .upon the assets of the institution to meet threatened withdrawals. For the protection of smaller depositors in our Institutions and to prevent the withdrawal of large sums from the state if Michigan it was deemed wise to declare a banking holiday for a period sufficiently long to allow the situation to be cleared up."

3. February 14, 1933 The Kansas City Star Kansas City, MO
Article from The Kansas City Star, February 14, 1933

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MICHIGAN BANK HOLIDAY FOR EIGHT CLAIMED GOVERNOR. Henry Ford's Refusal to SubordiDeposit Big Detroit Institution Factor Closing. LOAN Is PROMISED. LANSING, MICH., Feb. construction Finance Corporation officials are in the offices the Union Guardian Trust Company of Detroit and loan has been promised," Governor William Comstock said o'clock today. DETROIT. Feb. total of banks and trust tied today 8-day state bank holiday decreed William Comstock, asserted "acute financial emergency" existed in the state. In his proclamation the governor the closing of all the state's banks around the Guardian Trust Company. owned by the Guardian Union group, which operates some twenty Michigan banks and companies. He would have close trust company decided boldest stroke closing the financial GUARDS HIS DEPOSIT. Henry Ford's name prominent statements from the governor lowing proclamation. He said had consented his million dollar deposit in the Trust might settled the Detroit by ficials three that could said today. company had been Corporation large depositors subordinate deposits to claims the Other do this, but refused. been cized making this public, but and stand WORD FROM FORD. Comstock said he had Henry said all what was Edsel Ford stockholder the Union the Trust Company. he believed plan would within hours permit sufficient withdrawals from banks provide meeting pay rolls and living expenses for depositors. was the might period actually under not reopen until ruary the Washington's birthday holiday. MEET CRISIS. Steps were taken immediately financial the the dollars and million the the Bank from the Federal Bank under transferred vaults banks. took diate steps halt spread banks the state. William Moran, chief the United States said had ordered secret throughMichigan keep close "scandal and others might spread The he definite assurance the the 8-day holiday, earlier. BUSINESS USUAL. business continued usual morning, while heads cedure. Several would tually suspended, except in Detroit stock exchange although cepting made Bankers financial leaders from the state Second

4. February 15, 1933 Steuben Republican Angola, IN
Article from Steuben Republican, February 15, 1933

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MICHIGAN BANKS ORDERED CLOSED Proclamation Provides for Eight Day Holiday Nearly 600 banks the lower peninsula state Michigan ordered Governor Comstock Tuesday morning of the ment the Union Guardian Trust Company of which with large of branch banks tions the state Unable their the bank meet steady demands made on Conferences called with state officials leading of including the heads of the General Motors. Chrysler Ford The former companies while the Ford company deposits excess of and claims have supported the bank with exceeding request made Ford company interests to those of smaller depositors and of Finance Corporation which already made loans the bank This port which they had already the bank Fearing bank panic after conference with leading and and state officials holiday decided upon until adjustments could made whereby all banks of the state would prepared withstand demands usually follow such financial upheaval Much citizens over the and particularly the large cities such Detroit denied made Wednesday ing. permitted withdraw per their relief and that perfected many the banks of again full before expiration of the eightday appreciable effect the Indiana cities by the the Michigan banks Banks of this county had with Michigan local bankers state that they amply able to render full their and depositors that he knew the general banking condition good. that the plan adoptwith approval struction Finance Corporation simply calculated to maintain steadiness an unstable financial situation.

5. February 15, 1933 Pasadena Star-News Pasadena, CA
Article from Pasadena Star-News, February 15, 1933

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WITHDRAWAL TOLD Detroit Banks Planning Partial Payments NAME SIMILARITY SAID PROBLEM Confusion of Large Firm With Trust Unit Told DETROIT. Feb. 15. (/P)-Going Into the second day of the extraordinary bank holiday proclaimed yesterday by Gov. William A. Comstock, Michigan's 900,000 bank depositors were encouraged today by promises that part of their balances would become available by tomorrow. The Federal Reserve Bank of Detroit, which remains open, is receiving millions dollars that are being poured from branches of the Federal Reserve System in Chicago and New Partial Withdrawal Aim Forty million dollars was on hand today and the Detroit Clearing House Association arranged to make $25,800,080 available to depositors Thursday. That will permit customers not in excess of 5 per cent of their for before the end of the holiday. It seemed certainty that some such plan would be put into effect for the remainder of the state, although it was not determined whether it would be by gubernatorial proclamation or by voluntary action on the part of the banks. Adjustment Hope Seen Meanwhile, the depositors whose $1,500,000,000 bank balances were tied up accepted the situation philosophically Confidence was expressed that the eight-day respite would permit sound adjustment of the Union Guardian Trust Company's financial difficulties which precipitated the drastic action. A similarity in names and difficulty of the public in distinguishing between the Union Guardian Trust Company, an investment concern, and ten trust companies and twenty banks of the Union Group, Inc., with an estimated $500,000,000 in deposits, was given major reason for the general closing order. No question was raised as to the stability of other Detroit institutions.

6. February 15, 1933 Moberly Monitor-Index and Moberly Evening Democrat Moberly, MO
Article from Moberly Monitor-Index and Moberly Evening Democrat, February 15, 1933

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MOVE TO RELEASE BANK DEPOSITS Michigan Depositors May Get Part of Balances by Tomorrow DETROIT Feb. 15. into the second day of the extra ordinary bank holiday proclaimed yesterday by Governor William Comstock, Michigan's bank depositors were encouraged today by promises that part of their balances would become available by The Federal Reserve Bank or Detroit, which open, is receiving millions of dollars that are being poured from branches the Federal Reserve System in Chicago and New York, Forty million dollars was on hand today and the Detroit Clearing House Association arranged to make available to depositors Thursday. That will permit customers to withdraw not in excess of five per cent of their balances for emergency purposes before the end of the eight day holiday. It scemed a certainty that some such plan would be put into effect for the remainder of the state, though it was not determine whether would be by guberna torial proclamation or by voluntary action on the part of the In a series of conferences last night, representative bankers urged upon Governor Comstock the issuance of supplemental proclamation authorizing emergency withdrawals up to ten per cent or balances. The governor, however, urged voluntary action. He said that "while my proclamation declaring bank holiday was mandatory 11 is not my disposition to promer any bank from making arrangement to permit withdra ais to meet family necessities of to allow the cashing of pay checks. and believe many banks will do Meanthile the depositors whose $1,500,000,000 bank balances were tied up accepted the situation philosophically. Confidence was expressed that the eight day respite would permit sound adjustment of the Union Guardian Trust Company's financial difficulties which precipitated the drastic action.

7. February 15, 1933 Daily News New York, NY
Article from Daily News, February 15, 1933

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$50,000,000 RUSHED TO MICHIGAN BANKS (Continued from page operate with the Guardian Bank had necessitated the Statewide financial paralysis. Later he retracted his statement. saying: "I have misunderstood the facts in the Union Guardian Trust Company situation It was understood that Ford officials had objected strenuously to the Governor's first statement. The automobile industry promised its employes that they would either be paid in cash or else credit armaged for them in stores Conflict with Ford Cited. and shops. Mayor Frank Murphy toolet ndigent that welfare relief would be maintained. A large baking company was formulating a credit scheme as Detroit dairymen promised that milk would be delivered to each home regardless of their financial situation. Representative George J. Green (Dem.) of Saginaw said tonight he would introduce in the House tomorrow a bill to restrict postmoratorium withdrawals to fractions of depositors' accounts, with the object of preventing heavy bank runs upon resumption of business next Wednesday. Couzens-Ford Conflict Cited in Bank Holiday. Detroit, Feb. 14 (P).-The Detroit Free Press, in a coyprighted article, says that conflict between Senator James Couzens of Michigan and Henry Ford. former partners in the Ford Motor Co., is reflected in Michigan banking diffi- The Free Press tells of Ford's growing interest in the Guardian Detroit Union Group, Inc., particularly the Union Guardian Trust Co., culminating in his depositing $7,100,000 in the bank to assist in meeting cash demands. The paper that 72 per cent. of the banks assets were in Detroit real estate. rendering its cash position difficult recently. Ford's deposit failed to enable the bank to reach a sound feeting. the Free Press continues, and last December a $60,000,000 loan was sought from the Reconstruction Finance Corporation. Couzens Objects The request for the loan was by way of being granted, says the Free Press, when Senator Couzens protested that the collateral offered by the bank was inadequate to secure the Government from loss. The chief liquid asset listed was Ford's $7,100,000. Since Senafor Couzens was chairman of the Senate committee charged with responsibility for investigating R. F. C. loans, his objections prevailed, the Free Press says After an attempt to form a new company to take over the Unin Guardian Trust Co., Senator Couzens is quoted by the Free Press as having suggested to Ford that the motor magnet grant the Government a lien on his deposits in the bank, making them a "frozen deposit." This Ford declined to do. Senator Couzens then suggested that he and Ford jointly sign a note for the difference between the bank's collateral offered and the amount of the loan. Ford declined to adopt this plan, the Free Press says, holding that there was a "basic principle involved.' Senator Couzens conferred with President Hoover, the paper's account says, and was requested by him to accede to the R. F. C. loan. Early this week R. F. C. representatives and prominent bankers were called here. Four Banks Ask State To Take Helm Here. Non-liquid condition of assets and fear of runs as a result of rumors caused four banks in the metropolitan area to appeal to State authorities yesterday to take over their affairs in the interests of their depositors and stockholders. The only one of the closed institutions located in Manhattan is the private banking firm of D. J. Faour and Brothers. a 42-year-old company at 85 Washington St., with deposits and other liabilities totaling about $600,000. Three other banks that failed to open their doors yesterday were the Sunrise National Bank of Baldwin, L I., the Middlesex Title Guarantee and Trust Company, and the Citizens National Bank, both of New Brunswick, N. J.

8. February 15, 1933 The Miami Herald Miami, FL
Article from The Miami Herald, February 15, 1933

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MILLIONS ARE SENT TO MICHIGAN BANKS Continued From Page 1 liquid assets of 540 banking and financial The state immediately turned its efforts towards composing the situation at the end of the first day of enforced financial inactivity. Detroit was promised aid on Thursday by the Detroit Clearing Association. which that $25,000,000 had been laid aside to pay the city's bank deposttors small amounts of money for necessities. The association. in meeting tonight, voted to allow each depositor to withdraw up to per cent of his total deposits in checking and savings accounts. Upstate hopes were raised with a statement by Governor Comstock late today that he was certain the bankers would find way out of their difficulties after the moratorium. He would not, the governor intimated. object to bankers permitting the withdrawal of small amounts of money by depositors. Early this morning he heeded the pleas of officials of the Union Guardian Trust Company to grant the moratorium. which would allow the Detroit institution and others in the city time "to get their house in order. In the room of the Guardian building, he announced his decision to the group of bankers, business men and government officials. Secretary of Commerce Roy D. Chapin and Under Secretary of the Treasury Arthur Ballantine, hurriedly summoned from Washington, approved the governor's action. It was, they said, the best way out of Michigan's difficulties. Governor Comstock hurried to his Lansing where few hours later he that the refusal of the Ford Motor to co-operate with the Guardian Bank had necessitated the statewide moratorium. Later he retracted his statement. say. ing, have misunderstood the facts in the Union Guardian Trust Company It was understood that Ford officials had objected strenuously to the governor's first statement. The industry promised Its that they would either be paid in cash, or else credit arranged for them in stores and shops. Mayor Frank Murphy told indigents that welfare relief would be maintained. large baking company has formulated credit scheme for its patrons and Detroit dairymen promised that milk would be to each home regardless of the financial situation. George Green, Democrat, of Saginaw, said tonight he would introduce in the house tomorrow & bill to restrict post moratorium withdrawals to fractions of depositors' accounts, with the object of preventing heavy bank runs upon resumption of business next Wednesday. Banks in the upper part of Michigan,

9. February 15, 1933 Lexington Herald-Leader Lexington, KY
Article from Lexington Herald-Leader, February 15, 1933

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MILLIONS POURED INTO DETROIT FOR BANK DEPOSITORS (CONTINUED FROM PAGE ONE) tied up accepted the situation philosophically was expressed that the eight-day respite would permit sound adjustment of the Union Guardian Trust Company's financial difficulties which precipitated the drastic action. A similarity in names and difficulty of the public in distinguishing between the Union Guardian Trust Co., an investment concern, and 10 trust companies and 20 banks of the Union Group, Inc., with an in deposits was given as reason for the general closing order. Other Banks Sound No question was raised as to the stability of other Detroit institu"Business as usual." was the polley in other houses, and the Detroit Stock Exchange, which is closed. Larger grocery stores and milk and fuel concerns promised liberal concessions The public requested the utilities companies to extend due dates on current bills. Some large announced they would pay in cash, instead of check, and some of those who held to the check system set up central stations for

10. February 15, 1933 Berwick Enterprise Berwick, PA
Article from Berwick Enterprise, February 15, 1933

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MICHIGAN FRESH BLOOD VEINS Spirited Response to Crisis of Industrialists, Civic Leaders and Citizenry Lifts Gloom That Had Settled Over State. MAY SHORTEN HOLIDAY Detroit, Feb. began today to rebuild Its financial empire. Less than 36 hours after Gov. William Comsteck acceded to bankpleas and decreed an eight-day bank holiday. ready for use Detroit and relief measures were taking form all over this peninsular state people When the State's 540 banks were ordered closed under an emergency decree "for the preservation of peace, health, and gloom settled It lifted today with the spirited sponse of aroused civic leaders and citizenry to the crisis. The name of Henry Ford and Ford Automobile flickered strangely through the maze of events. First Accused Ford Gov. Comstock, from his executive office Lansing, first accused the Ford Motor Company of failing to operate with General Motors Corporation and the Chrysler Corporation in sustaining the Union Guardian Trust company Detroit was imminent collapse the Guardian Trust that prompted the bank moratorium Later the Governor said that he had the that neither the Chrysler Corporation nor Continued on Page Eight

11. February 15, 1933 The Greensboro Record Greensboro, NC
Article from The Greensboro Record, February 15, 1933

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into the second day of the extraordinary bank holiday proclaimed yesterday by Gov. William A. Comstock Michigan's 900,000 bank depositors were encouraged today by promises that part of their balances would by tomorrow The federal bank of Demillions that are ing poured from of federal system in Chicago and New York Money Sent In Forty million dollars on hand today and the Detroit Clearing House available to depositors ThursThat will permit customers withdraw not in of per cent of their balances for emergency poses before the end of the eight-day purholiday It seemed certainty that some such plan would be put into effect for the remainder of the state Although it was not determined wheth it would be by gubernatorial proc. lamation or by voluntary action on the part of the banks Bankers Urge Move. In series conferences last night representative bankers urged upon Governor Comstock the issuance of supplemental proclamation authorizing emergency withdrawals up to 10 cent of The urged voluntary action He said "while my declaring bank holiday was not my disposition prohibit any bank from making sensible arrangement permit withdrawals to meet family necessities to allow the cashing pay and believe many banks will He said the conferences with ers would resumed today Depositors' Attitude Meanwhile the depositors whose bank balances tied up accepted the situation philosophically Confidence was expressed that the respite would permit adjustment of the Union Guardian Trust company's financial difficulties which precipitated the drastic action similarity in names and difficul. tween of the public in distinguishing De the Union Guardian Trust an and trust companies and 20 banks of incorporated with an estimated $500.000,000 in was given order major reason for the general closing No question was raised to the stability of other Detroit institutions

12. February 16, 1933 The Saginaw News Saginaw, MI
Article from The Saginaw News, February 16, 1933

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statement out possible questions might from that difficulties Union Guardian Trust Detroit were cause of Comstock eight-day bank holiday proclamation. Operations Kept Local. In the statement standing pertinent the of Second bank Guardian Detroit Union all of which bear out that banking erations locally nothing the that arose in Detroit of the follows: assets the Second National have been held tact are for the benefit of the bank's 2-That money has been loaned by the Second bank to any other Guardian nor of assets of the Second National bank ever been mingled those any other Guardian unit bank any group company has no power draw on drain the assets the Second National bank directing the payment divipower held solely the Second National board of directors nor in any other ner the Second National bank's liquid condition has been unchanged by the emergency that arose in encountered in liquidation of the GuardTrust company can no affect the standing of the Second National bank the strictive that allow bank identity and stand on because of protective presented in liquidation of the Union Guardian Trust company matter solely in the hands of the charge of that institution and, as possibly have on the financial standing of any other unit in the group. The statement sets forth the policy of operation in which the (Continued on Page Column 3)

13. February 17, 1933 Angola Herald Angola, IN
Article from Angola Herald, February 17, 1933

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Michigan Recovering from State Wide Bank Holiday Order Nearly 600 banks in the lower peninsula of the state Michigan ordered closed by proclamation of Governor Comstock Tuesday morning because of the embarrassment of the Union Guardian Trust Company of Detroit which with large of branch banks was one of the largest banking institutions in the state. Unable to convert their the bank was able to meet the steady demands made on its reserve. Conferences were called with state officials and with some of the leading industrialists of Detroit. including the heads of the General Motors. Chrysler and Ford Corporations. The two former companies were depositors. while the Ford company had deposits in excess of and claims to have supported the bank with investments exceeding request was made that the Ford company subordinate their interests to those smaller depositors and of the Reconstruction Finance Corporation. which had already made heavy loans to the bank This the Ford company refused to do in view of the heavy investment support which they had already given the bank Fearing general bank panic after conference with leading financiers and government and state officials the proclamation for an holiday was decided upon until could be made whereby all banks of the state would be prepared to withstand demands usually follow such financial upheaval. Much inconvenience was occasioncitizens over the entire state, and particularly in the large cities such Detroit when banking privileges were denied them. Arrangements were made Wednesday morning. however. whereby depositors were permitted to withdraw five per cent of their deposits as emergency relief. and is predicted that will be perfected whereby many of the banks of the state again be in full operation before the expiration of the eightday holiday. Much cash was poured into Michigan from outside sources on Wednesday and Thursday and it appeared Thursday that would available for circulation in than in the during the boom times Many banks were expecting to resume operations by Friday in limited and reported that in view of the expected recovery from the situation that state banking department would leave at discreation of the banks the matter of reopening before the expiration of the holiday set.

14. February 17, 1933 Porterville Recorder Porterville, CA
Article from Porterville Recorder, February 17, 1933

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DANGER OF PANIC IN MICHIGAN SUBSIDES AFTER BANK HOLIDAY MichiFeb. day of her fourth entered bank gan moratorium today confident that and panic gone, the danger of faith her citizens had that her financial stability. eventual of the all sections Reports from the closing of indicated that state days by 540 eight and the up torial $1,500,000,000 in liquid more than of calmly by had been accepted five million the state's was given an opDetroit yesterday $26,000,000 withdraw portunity the Detroit banks when from voted to house association permit clearing depositors to withdraw per of their funds. cent the available $4,610 000 of Only as depositors was withdrawn money what little they files, took orderly remaining 83 per needed. The vaults. left the city's they reflected in other Detroit's of the state, came and villages campaigh conafter vigorous industry, business waged by fidence of following declaration and finance, by Gov. bank moratorium the Comstock last Tuesday. A. His action was taken to the Union Guardian Trust Company from the Later in the day possible closing. would not frown said he governor the disbursement openings for upon The small amounts effective Thurshouse order. clearing thereafter. resulted. day and its Union Guardian Trust, The was the "bouse not yet in exception in the notable bank opening yesterday. Its officials said they deemed unwise to permit until plans institution of the future operation completed. upstate banks more of score or they were reopened. Some their depositors prepared to pay the Detroit per Others applied with reported ruling cent in the state's Forty banks success. open as usual, were upper been closed. never having

15. February 23, 1933 The Daily Times Davenport, IA
Article from The Daily Times, February 23, 1933

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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

16. March 9, 1933 The Daily Worker New York, Chicago, NY
Article from The Daily Worker, March 9, 1933

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SUBSCRIPTION RATES: By Mail everywhere: One year, $6; six months, $3.50; 3 months, $2; 1 month, 788, excepting Borough of Manhattan and Bronx, New York City. Foreign and Canada: One year, $9; 6 months, $5; : months, $3. DETROIT BANK CLOSING IS ATTACK ON AUTO WORKERS Detroit C. P. Points Out Move Is Made to Save Ford at Expense of Small Depositor STATEMENT OF THE DISTRICT was stopped. In many cases, wages were increased. All this came as COMMITTEE OF THE COMMUNIST result of the strike in Briggs Waters PARTY, DISTRICT 7, ON THE CLOSING OF THE BANKS loo plant, in Motor Products, in the IN MICHIGAN other Brings plants, in Murray Body, and in Hudson Motor. Other com. The closing of the banks in Michpanies, fearing similar action igan for an indefinite period and changed their policy and announced the new restrictions on withdrawals wage increases. of deposits are a direct result of the The big auto companies could not growing collapse of the auto industry. agree. The fight between Ford and It is at the same time an indication Wall Street is being fought out at of the continued deepening of the the expense of the workers and poor economic crisis and a result of the farmers and small depositors. The sharp struggle between Ford and banks were closed. But the savings Wall Street interests. of the small depositors were not safeThe auto workers have been among guarded. Those who had all their the worst sufferers in the crisis. savings in the bank were left without Brought into the industry by the lure means of living. The banks were closed because of high wages, they soon discovered the high wages to be a myth. But Ford insisted on withdrawing about not until tens of thousands had been $8,000,000 in cash from the Union tricked into buying homes at the inGuardian Trust Co. This act would have wrecked the bank. The effect sistence of the auto companies, through loans from the Union Guarof this, General Motors and Chrysler dian Trust Co. When the workers feared, would be runs on the banks which it controlled. The banks were could not pay back the loans, these homes were lost. But the bank could closed to give the big depositors the find no buyers for the homes it foreopportunity to protect their funds closed. In this manner, its assets at the expense of the small deposbecame frozen. itors. In the summer of last year the The big depositors were organized. bank borrowed over $16,000,000 from They used their organized power to the Reconstruction Finance Corp. force through actions in their inThe market for cars narrowed and terests. It is necessary for all small the share of the Ford Motor Co. in depositors to organize, if life savings this smaller market became less. are to be protected. The new 1933 models of the auto The Communist Party proposed companies were put on the market that the small bank depositors im-1 in December. Ford began to prepare mediately organize themselves into his new models. The fight between fighting Leagues in order to safethe giants for the control of the guard their deposits and keep the big auto industry was on, and a new millionaire capitalist stockholders wave of wage cuts swept the infrom stealing the savings of the dustry. Hours were increased. Speedsmall depositors. The government and the Reconstruction Finance Corup was intensified. New wage-cuts were prepared. But this time the poration, which are safeguarding only workers led by the Auto Workers the investments and deposits of the Union, began to fight back. Strikes millionaires must be compelled to were organized and ended in victory. safeguard first of all the meager savings of the toiling masses. The wage-cut drive for the present

17. June 3, 1933 Detroit Free Press Detroit, MI
Article from Detroit Free Press, June 3, 1933

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R. C. Bungling in Bank Closings Here Is Described Trust Firm Executive Condemns Refusal to Make Loan Continued from Page One and still in good condition, Its policy Wilkin Clifford Longley, former president the Guardian Trust took that office January for the purpose "cleaning Wilkin and by December decided that out all and This by the been the propthing Wilkin time Henry Ford had deposit deposits of $15,000,000 have the concern all Mr Ford willing that money should remain the institution Some day this whole thing will told the people this will the were 1,000 per cent the "They agreed possible willing that their be frozen the Union Guardian Trust Co. and thus avert crash the Tells of Ford Help "About this time December) was decided out the pany (Union Wilkin continued. August, 1932, State Banking stated that assets had shrunk $7,642,252. and against were serves $2,854,000 The Ford Motor loaned company, through the Group. $3,500,000 sist in meeting depositors' demands the loan had been the Fords, Mott and Chicago bank of 000,000. which Group to some assets from the trust company, through the Congress Investment Corp. "When question of loan came McKee came to Detroit affairs the company Group," Wilkin continued. was decided then organize another corporation assets all units of the Union Guardian Group. was This meant total loan viously been the company, which $3,000,000 had been paid back. much was that Gen. Charles Dawes for his lone Chiqueried O'Hara. Eighty million," shot back Wilkin. Tells of Loan Assurance "McKee kept fixing the figure that should from R. and that the tinued. "Time again he sured the directors that the loan would when directors went Washington McKee just disappear. "Up to this time, the First National loan the way involved Wilkin "No. had not asked for loan, but should have before Wilkin not believe First National any knowledge the proposed holiday regard matbefore the day, Groesbeck interrupted. have that directors that bank had not been sulted regarding the bank holiday until the Saturday before the hollcharged from the ness stand the Court last Monday that the banks had closed Leyburn, chief tional examiner this district, of district. He charged had engineered "the rape of De- Directors' Loans Denied Wilkin denied that there had heavy loans directors of the Union Guardian Trust Co. those by made to Robert real estate dealer, Wilkin said. This was secured Wilkin said he did not consider this good security GroesAfter all, Oakman made good other projects, there believe would again Wilkin explained that the property used security sold on land contract that because of the purchasers keep their payments. Wilkin the Group $16.284,000 time the closed. Of this sum the Fords had loaned the Bankers Trust Charles Mott, $2,500,000 and the Continental Bank Trust Chicago, $500,000 under Wilkin asked what the total Ford deposit was Detroit banks they closed, but said he knew nothing about deposit other than the $12,000,000 Trust Henry Ford, whom I have never willing deposit indefinitely, Wilkin repeated. Groesbeck Urges Open Hearing "It is my understanding that the the banks closed Fords $77,000,000 stake. Groesbeck said. "The Fords primarily interested the community and were willing anything would like openly order that the people may be in every detail." "That what them suggest banks Wilkin "Had two banks been opened an would been available to depositors long before this. didn't that proposal go he asked First National Bank not able hold up its Wilkin should know what there seems vious. "Davison, the Central Hanover the First National allow carry out its part the program Ford banks, the First unable the loan.' Winkin said the board Central Hanover Trust that loan withdrawn cause Fords behind banks Wilkin asked. believe would have made body but the Fords," his swer. Says McKee Backed Ford Plan "The Ford plan also agreed to by did about the after the 000,000 denied the New Wilkin continued. not been March 13. Groesbeck said that the most important consideration the resumption normal banking busithe state. In his tion Attorney General O'Brien he urged that the best way to bring this about to have an open hearing grand some other body the public fully what in these financial He said that he had nothing but the highest regard for the named for closed National banks, Thomas for the First National Bank, and C. Schram for the Guardian National. These orders from Washington laid down through years, he believe that this situation sufficiently importan strong here from Washington and least look into the convinced that the were inclined be able that to 40 per cent additional payoff would possible. The Government would merely have assets bethe that World great to debtors and depositors alike.

18. August 29, 1933 The Des Moines Register Des Moines, IA
Article from The Des Moines Register, August 29, 1933

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RECORDS CALLED IN BANK PROBE Detroit Jury Prepares to Scan Books. for the records of two Detroit trust companies for the purposes of "thorough examination" went out Monday from the one-mar bank jury. It was the first move to follow charges by Senator Couzens officials had "acted iniquitously" preceding Michigan's famous banking holiday Records Called In. The call, issued by Judge Harry B. Keidan, sitting as the one-man jury, testimony of Arthur J. Lacy, Senator Couzens' personal who scored New York bankers as "coldblooded" and declared he did not believe there was anything criminal in a charge made by the senator against one trust company. Conservators of the two companies, the Union Guardian Trust Co. and the Detroit Trust Co., must appear in court, Judge Keidan said, with all the records of the two institutions. Conservators to Appear. Examination will be conducted by the with the cooperation of the state attorney general and the prosecutor's office. H. J. Fox, conservator for the Detroit Trust Co., was called to court and given the order. G. H. Kirchner for the Union Guardian will be called as soon as he returns from a business trip. Charged Fund Switching. The Michigan senator, appearing before the jury last week, had declared the Detroit Trust Co. and the First National Bank Detroit 'switched funds" between themselves to increase their respective cash positions. He charged the Union Guardian Trust Co. with jockeying the $10,000,000 children's fund of Michigan, founded by Couzens, out of $200,000 deposited there. He demanded that the jury study the books of the two companies. Doubts Criminal Action Lacy testified he did not believe there had been any criminal B.C. tion in the conduct of the Detroit trust company of which he also attorney He discussed the charge of Senator Couzens against the Union Guardian Trust Co., and reported he believed there was nothing 'criminal or illegal" in the children's fund transaction. in which Senator Couzens says $200,000 was lost. "Cold Blooded" Banking. Lacy, known in Michigan through his efforts to rehabilitate banks to the state holiday Feb 14, digressed to score what he termed "cold blooded banking "The New York banks, he declared, "were cold blooded before the national bank holiday When loans matured they sold them out If all the country had done the same thing. it would have brought on national banking collapse one year earlier, believe."

19. August 29, 1933 The Charlotte Observer Charlotte, NC
Article from The Charlotte Observer, August 29, 1933

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DETROIT BANK RECORDS DEMANDED FOLLOWS COUZENS CLAIM Call, Issued by One-Man Jury, Interrupts Testimony of Senator's Lawyer. for the records two Detroit the purposes went out today the Detroit jury, the first move follow charges Senator James Republican of Michigan, that trust company ficals iniquitously' preceding Michigan's famous banking holiday. The call. Issued by Judge Harry B. Keidan, sitting the jury, interrupted testimony of thur Lacy, Senator scored New York bankers before the jury and declared did not believe there was criminal in charge made by senator against company Conservators of two companies, the Union Guardian Trust company, and the Detroit Trust company, must appear in court, Judge Keidan with all the records of the two institutions. Ex. amination will be conducted by the conservators with the of the state attorney and prosecutor's office Harry Fox, conservator for the Detroit Trust company, was called to court today and given the order. George H. Kirchner, for the Union Guar dian, be called as soon as returns business trip. COUZENS' CHARGES. The Michigan senator, appearing before the jury last week, had declared the Detroit Trust comand the First National Bank Detroit funds" between to increase their respective cash positions, charged the Union Guardian Trust company 'jockeying' the $10,000,000 children's fund of Michigan, founded by Couzens, out of deposited there. He demanded that the jury study the books of the two companies. Lacy, from the witness stand today testifed he did not believe there had been any criminal tion the conduct the Detroit Trust company of which he also attorney. He discussed the charge of Senator against the Union Guardian Trust company, and reported he bethere was "criminal or illegal" the children's fund which Senator Couzens says $200,000 was lost. Lacy, well-known in Michigan through his efforts rehabilitate banks previous to the state holiday February 14, digressed during his presentation of detailed testimony today to what he termed banking.

20. September 2, 1933 Birmingham Post-Herald Birmingham, AL
Article from Birmingham Post-Herald, September 2, 1933

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EX-TREASURER OF DIXIE GROUP KILLED Southern Society Leader Dies In New York Fall NEW YORK, Sept. 1-(P)-Hugh M Garretson, 45, former treasurer of the New York Southern Society, was killed Friday night in fall from the window of an attorney's twelfth floor office on lower Broadway. Garretson had been waiting in an ante room for the attorney, Maurice Rogen, to return. Sidney Lewis, clerk, who was busy in the next room. said Garretson had been standing in front of the window for some time and that he appeared to jump. His body struck the roof of sixstory adjoining building Physicians said he was killed instantly. rectly for the failure of the two banks. "Senator Couzens was critical of the Reconstructi Finance Corpora tion loan asked by the Union Guard ian Trust Company,' he asserted. "That upset the apple cart.' Alger assailed "luckless and generalized charges" against the banks, and declared that reorganization would insure depositors much larg er distribution than is possible under the present receivership He said, however he placed no blame for the Detroit banking troubles on the present administration in Washington.

21. February 20, 1942 Detroit Evening Times Detroit, MI
Article from Detroit Evening Times, February 20, 1942

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On the Business Front With WARD SCHULTZ Detroit Times Financial Editor When Mayor Edward J: Jeffries Back they We Couzens demai sought permission of the council the other day to approve, as a desired approva trustee, the sale of the Union "Do you kn Guardian Trust Company for $1,In this man Couzens of the 500,000. he accomplished one thing. he continued: The road is now open for nego"It's becaus tiations of such a deal. banker that However. in mentioning an "ofdown on a lo fer" of that amount from an unold German-A named Detroit institution, the all the other mayor apparently misunderstood, for no such offer has been made. proved it bi cashier, turne His announcement was someI hadn't es what premature in that respect. credit and bee It does focus attention though. prove of borro on an institution which many felt pose I had mei was hopelessly lost during the "And he wa bank holiday but was reopened as too," Couzens the result of a chance meeting in chuckle. an elevator. * And since being reopened. careful and prudent management has So the trust developed it into a valuable piece opened and O of property. Kirchner was guidance, and under the lead The story about the elevator E. C. Harris, ti meeting is too good to remain untold. Trust Company The late George Kirchner. at gregate profit ( that time/ receiver for the Union 000. And it's I E. C. HARRIS circles as a su Guardian Trust Company. felt that "What are you doing down the fiduciary part of the trust tively managed here. George?" the senator company was too valuable to be Why sell it asked. cause it is felt liquidated. and he went to WashKirchner explained and added ington in an effort to secure help pany could be from the RFC. After receiving that he had given up and was realigned with a than it has be turning home. rebuff after rebuff. he returned to "Come on back down on this the Mayflower Hotel, thoroughly the liquidator of elevator and we'll see if we can't disheartened and ready to leave pany. for home. And then. to get some action. If you say that As he got on the hotel elevator trust company's fiduciary dejob is to dispose partment is O. K., it's O. K., and order to pay off a chunky, gray haired man walked on it was Senator James Couzens depositors of th we'll reopen it If you'll be president," Couzens roared. lian Trust. This of Michigan.