9150. City Trust & Savings Bank (Grand Rapids, MI)

Bank Information

Episode Type
Run Only
Bank Type
savings bank
Start Date
November 30, 1920
Location
Grand Rapids, Michigan (42.961, -85.656)

Metadata

Model
gpt-5-mini
Short Digest
05d05975

Response Measures

Accommodated withdrawals, Capital injected

Other: Directors deposited funds to prevent a run after discovery of embezzlement by assistant cashier.

Description

Assistant cashier Frederick W. French confessed to long-running embezzlement; directors deposited $590,000 to prevent a run. Articles mention steps taken to avert withdrawals but do not report a suspension or permanent closure.

Events (1)
1. November 30, 1920 Run
Cause
Bank Specific Adverse Info
Cause Details
Assistant cashier Frederick W. French allegedly embezzled $300,000–$500,000 over ten years, creating a large shortage that threatened depositor confidence.
Measures
Directors deposited $590,000 to shore up funds and prevent withdrawals.
Newspaper Excerpt
Directors deposited $590,000 in order to prevent a run.
Source
newspapers

Newspaper Articles (3)
1. November 30, 1920 Indiana Daily Times Indianapolis, IN
Article from Indiana Daily Times, November 30, 1920

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Article Text

SHORTAGE MAY REACH $500,000 Grand Rapids Bank Cashier Makes Reputed Confession. GRAND RAPIDS, Mich., Nov. 30.Frederick W. French, assistant cashier of the City Trust and Savings Bank, was to be arraigned today on charges of embezzling between $300,000 and $500,000 of the bank's funds. He is said to have confessed peculations extending over a period of ten years. French's method, according to his alleged confession, was simple. Whenever a bank examiner would place securities in an envelope and seal it French would lift the seal and replace the securities with blank paper. The next examiner, seeing the seals on the envelopes would pass them. An examiner who was seeking to trace a small mortgage trapped French. He discovered the blank paper in one envelope and opened others. French was arrested. French told bank officials that he had dreams of piling up a fortune that would rival that of Rockefeller or Morgan. He said most of his deals went wrong and produced a card index purporting to show what had become of the money he is accused of taking. His peculations, it is said, amount to $100,000 more than the capital stock of the bank. Directors deposited $590,000 in order to prevent a run.

2. December 1, 1920 The Washington Times Washington, DC
Article from The Washington Times, December 1, 1920

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Article Text

THEFTS FROM BANK EXCEED ITS CAPITAL Cashier at Grand Rapids Admits Peculations Over Period of Ten Years. GRAND RAPIDS, Mich., Dec. 1.Frederick W. French, assistant cashier of the City Trust and Savings Bank, was to be arraigned here on charges of embezzling between $300.000 and $500,000 of the bank's funds. He is said to have confessed peculations extending over a period of ten years. French's method, according to his alleged confession. was simple. Whenever a bank examiner would place securities in an envelope and seal it French would lift the seal and replace the securities with blank paper. The next examiner, seeing the seals on the envelopes. would pass them. An examiner who was seeking to trace a small mortgage trapped French. He discovered the blank pa. per in one envelope and opened others. French was arrested French told bank officials that he had dreams of piling up a fortune that would rival that of Rockefeller or Morgan. He said most of his deals went wrong, and he produced a card Index purporting to show what had become of the money he is accused of taking. His peculations, It is said, amount to $100,000 more than the capital stock of the bank. Directors deposited $590,000 in order to prevent a run.

3. December 1, 1920 The Idaho Republican Blackfoot, ID
Article from The Idaho Republican, December 1, 1920

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Article Text

Three to Five Hundred Thousand Dollars Were Stolen by the Cashier GRAND RAPIDS, Mich, Nov. 30Frederic W. French, assistant cashier of the City Trust and. Savings bank, was to be arraigned today on charges of embezzling between $300,000 and $500,000 of the bank's funds. He is said to have confessed relations extending over a period of ten years. French's method, according to his alleged confession, was simple. Whenever a bank examiner would place securities in an envelope and seal it French would lift the seal and replace the securities with blank paper. The next examiner, seeing the seals on the envelop would pass them. An examiner wishing to trace a small mortgage trapped French. He discovered the blank paper in one envelope and opened others. French was arrested. French told bank officials that he had dreams of piling up a fortune that would rival that of Rockefeller or Morgan. He said most of his deals went wrong and produced a card index purporting to show what had become of the money he is accused of taking. His speculations amount to $100,000 more than the capital stock of the bank. Directors deposited $590,000 in order to prevent a run.