9156. Grand Rapids Savings Bank (Grand Rapids, MI)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
savings bank
Start Date
March 21, 1933
Location
Grand Rapids, Michigan (42.961, -85.656)

Metadata

Model
gpt-5-mini
Short Digest
fae9c9fb

Response Measures

None

Description

Articles describe the Grand Rapids Savings Bank as having impounded balances and being closed under the state bank holiday/holiday closing rules in March 1933, with a recapitalization plan (depositors to subscribe 20% in preferred stock) approved by federal and state authorities and the RFC/ Reconstruction Finance officials; the bank was then authorized to reopen on a limited/then normal basis in July 1933. There is no explicit description of a depositor run; closure appears to be part of the banking holiday/regulatory suspension and subsequent reorganization led to reopening.

Events (2)

1. March 21, 1933 Suspension
Cause
Government Action
Cause Details
Closed under the state/federal bank holiday/regulatory action; deposits impounded pending recapitalization plan approved by federal reserve and state banking commissioner.
Newspaper Excerpt
impounded balances ... bank closed by the holiday ... instructions for opening call simply for subscription by depositors ... will open for full business
Source
newspapers
2. July 12, 1933 Reopening
Newspaper Excerpt
approved plan under which the institution may be opened for normal business ... Stoddard announced approval ... plan under which Grand Rapids Savings Bank ... may be opened for normal business
Source
newspapers

Newspaper Articles (12)

Article from The Grand Rapids Press, March 21, 1933

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G. SAVINGS BANK DEPOSITORS GET 20 PER CENT STOCK Will Draw 6 Per Cent Interest Instead of the Former 3. NEW CHAIRMAN CORNELIUS Impounded Balances Available: Backed by Government Currency. Seventy-four thousand depositors of the Grand Rapids Savings bank were given surance Tuesday morning of its 100 per cent opening within the next few days upon completion of one of the most accommodating plans of recapitalization placed before any bank closed by the holiday. Examiner Pittman of the federal reserve and State Banking Commissioner Reichert have found the bank to be in such condition that new cash assessments be, unnecessary Their instructions for opening call simply for subscription by depositors and stockholders for new preferred stock in an amount equaling 20 per cent of the old deposits. The stock may be purchased by a transfer of impounded deposits. When this subscription has been obtained the bank will open for full business in all departments, backed by government currency and with no restrictions except the hoarding rule applied by the secretary of the treasury for all reopened banks. Less than a week is expected be required for obtaining the new subscriptions. Capable Citizen Serves. Much of resulting the federal and state approval of the plan by Louis nelius, director president the Wolverine Brass Co. and city weldirector. Grand Rapids bank board Tuesday morning the ceeding the late William Alden Smith Cornelius long record service the been from 1912 to the presHe was an original now director the Grand Rapids Trust Co., hav. served addition his facturing and Mr. Cornelius nationally on national the American Society Mechanical and director neers. American Society of Sanitary Engi- Response Is Gratifying immediately greeted new plan Cornelius Tuesday morning. have been coming bank the expressing cordial suparrangecompleting the and opening Other within the next few officers the bank will Six Per Cent Preferred Stock. The new capital raised among ferred form of depositors prestock, cumulative assessable. Blanks the scription been printed diately and will be available immeDetails of this plan have been board the posal after repeated with federal reserve officials Chicago and with state department in though the proposition has been of formation its could until full approval had been obtained Successful of the extra will restore Grand Rapids full oldest banking institutions of regarded Grand Savings bank investment in home and tied up liquid large degree. Rather than force these homeofficials the of work out plan whereby loans tended and safe liquid balance retained. will add present capital of Daane, reported. to the capitalizaplus surplus, the amount of which yet due to current readjust The new capitalization will of the largest bank in Michigan outside For the depositors the arrange80 impounded balances which he may fit. other the will be stock interest annually compared cent The stock will for there dispose therefore virtually makes 100 per depositors' The will subject to period determined pected the entire issue will be withDepositors may sign stock applications the main bank branches Those to bank and tunity to sign the


Article from The Grand Rapids Press, March 21, 1933

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BANK PLAN COVERS PUBLIC DEPOSITS County General and City Sinking Funds Embraced in Stock Project. RELEASES NEEDED CASH The county general fund of $850,the sinking fund would be by regulation cent unrestricted withdrawal stock purchase that would the opening the Grand Rapids Savings bank, public officials were informed Tuesday by Cornelius, chairman bank's board as head of the department. Mr. presenting the authorities information under the reopen federal license, explained that smallest depositors affected withdrawal federal and bank authorities include city county because of their deposits. Attorney Dale Souter and Bartel Jonkman stated was equitable that released the major portion of the public Chairman Frank W. Peterson of county finance immediately the city hall ference called into conference the county road which has share county posit. City Attorney Souter called meeting of the sinking fund commission for Mr. Souter said he suggest for the consideration the sinking fund that the in preferred stock the would be taken be absorbed in the fund. Comptroller Harry conversation subsequent to the morning conference likely that the city would sell some of its sinking fund securities to bond mathat some could be the ment stock would substitute of the securities remaining. The the county officials will confer further matter present it to the full board which meets again Friday


Article from Grand Haven Tribune, March 21, 1933

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PREPARE TO OPEN BANK Grand Rapids Savings Bank May Be Reopened by End of Week GRAND RAPIDS, March The Grand Rapids Savings bank, founded in 1870 and, one of the oldest banks in Grand Rapids, having 74,000 depositors and record having financed many homes any institution the city, will be open for unrestricted business within few days. It is not impossible that the bank may be opened before the end of the week. All depends upon the speed with which the arrangements which been suggested and given the approval of the treasury department of the United States and the state banking commissioner can be completed. Officials and employes of the bank working day and night are complete these arrangements. Once they are completed no time be lost throwing open the doors of this old bank which will find itself sound to the core, liquid the last degree, its position backed by the United States of America and position of safety depositors that excelled banking institution in Amer-


Article from The Herald-Palladium, March 21, 1933

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FEDERAL RESERVE OUTLINES PLAN TO REOPEN G. BANK (By Associated Press) RAPIDS. March 21-Officials of the Grand Rapids Savings bank today were attempting to fulfill details financing program outlined by the Federal bank of Chicago for reopening the instituUnder the proposed set-up, the bank would upward of 000 in cash immediately liquid curities reopening, through adidtion of to the present capitalization of Depositors would be required to use at least 20 percent of their impound-


Article from Battle Creek Moon-Journal, March 29, 1933

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GRAND RAPIDS TRUST COMPANY IS REOPENED Grand Rapids, Mich., March 29. of the Grand Rapids Trust company for regular business under restrictions prohibiting withdrawals for hoarding today eased the strained banking situation here. Two other banks, the Grand Rapids Savings bank and the Grand Rapids National bank, reported reorganization plans virtually complete. They expect to rewithin few days. The savings bank asked Its depositors purchase preferred stock with 20 per cent of their ings, while the national bank will be reorganized with original stockholders surrendering their stock.


Article from The Grand Rapids Press, June 29, 1933

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GOES TO WASHINGTON McCaslin of Grand Rapids Savings Bank Has New Plan. ACCOMPANED BY DAANE William R. McCaslin, conservator the Rapids Savings bank, and Gilbert Daane, president of that Thursday route for where they with treasury. reconstruction corporation and other officials plan for and reopenof the Grand Rapids Savings bank. They will return the coming week. Mr. McCaslin said Thursday he spent Wednesday afternoon Lansing Gov. Comstock Bank Commissioner Rudolph Richert regarding the plan for opening to be submitted at "The governor and the banking commissioner with 100 said "and much and that the prospects favorable for opening of the bank. "What the plan be submitted Washington would not be advisable say now. It wouldn't make the plan But feel greatly encouraged.'


Article from The Kalamazoo Gazette, July 12, 1933

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APPROVES GRAND RAPIDS BANK REOPENING PLAN GRAND RAPIDS, Mich. July H. the Michigan Finance Corporaannounced today after an late Tuesday night meeting with officials of Grand Rapids Savings Bank that he had approved plan under which the institution may be opened for normal business


Article from The Herald-Press, July 12, 1933

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Last Minute News Flashes REBUKES U. OFFICIAL DETROIT, July 13 claring that "never in my nearly years of practice in the law have seen such spectacle," Judge Harry B. Keidan, heading grand jury investigation of the closing two national banks here, today livered from the bench vigorrebuke federal official for refusal to testify on matinvolving governmental tion in closing the banks. The witness Fred Brown, forpresident of the First National now an assistant the bank's federal receiver. SPURN GOLD BLOC LONDON, July 12 American federal reserve board, understood authoritative quarters today, has vetoed the participation by the United States delegation at the world economic conference discusof resolution calling for central bank cooperation. The resolution was backed by the European gold bloc. ORDER FIVE EXECUTED MOSCOW, July 12 cooks in three different workers' in Moscow were today death mies of soviet state throwing nails, glass and wire into food they prepared, serving spoiled food and arbitrarily ducing fixed portions. CHANGES POSTMASTER LAW WASHINGTON, July In executive order changing regulations for pointments, President GenFarley draft legislation to submitted to the next placing all postmasterships under civil service. BANK OPENING GRAND RAPIDS, Mich., (AP) Stoddard, the Michigan representative of the Reconstruction Finance corporation, announced today after an unannounced late night meeting with officials Grand Rapids Savings bank, that he approved plan under the institution may reopened for normal busi-


Article from The Escanaba Daily Press, July 13, 1933

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CITY PROJECTS GET APPROVAL About Million Advanced to Municipalities in Federal Funds Washington, July 12 (AP) President Roosevelt gave final approval today to the first big batch of federal jects under the public works program, the entire group totalling less than $100,and comprising chiefly items recommended by the recla mation service and the agricul ture department. The items will be made public tomorrow or Friday together about in advances to municipalities whose projects were approved by the cabinet advisory board today in its first consideration of non-federal items. The program approved by the president than the total favorably passed upon terday by board because large number of river and harbor projects held up to be submitted to him later with other army funds. BANK MAY REOPEN Grand Rapids, July 12 ard Stoddard, Michigan representative of the Fi nance corporation, has announced approval plan under which Grand Rapids Savings Bank operating on limited scale since the state bank holiday, may be opened. He said the approval had been forwarded to Washington for final action. but declined to reveal details of the plan.


Article from Jackson Citizen Patriot, July 14, 1933

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TURNS OUTSTATE BANKS Jackson One of First Cities to Be Aided in Establishing of New Banks. Detroit, July of in Detroit's closed banks Howard Stoddard. chief of Finance corporation's examiners in pects work lay reorganizaoutstate banks organized in ten Stoddard naming some them. In he bank the First bank, In Grand Rapids, replace the Grand Rapids 50 per while Rapids Savings bank will be vanced by the augmenting locally raised are working Battle Stoddard said. expect Saginaw He did not name other cities. Building On Increase. of the Indicompany today that throughout United States the first dency an upturn since late said, every month since August, 1932. Detroit Lists Unemployed. listed first total ficials reach 50,000 before is concluded Saturday night. The purpose the registration provide city public projects will be on chosen.


Article from The Ann Arbor News, August 17, 1933

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State Briefs Melvin LiverDetroit. (U.P.) died few hours hospital here from admittance to resulting from fall of was when the acciClemens near dent (U.P.) Coast guards Leland their search for the have bodies of three persons their fell ished when Michigan June 22. search Lake extended from here to Empire following discovery of jacket that James identified as the ill-fated pilot of washed up The garment the beach at Pyramid Point Grand tors Peoples National bank are to meet early next week elect officers and approve to board of directors William R. McCaslin, conservator of Grand Rapids Savings bank announced that $500,000 has been subscribed to stock for the new institution The government is to take $500,000 in preferred stock Mt. Pleasant. Rob. was critically erts, wounded when struck by shotgun charge when the gun was fired accidentally by his uncle, Leo Lyons. Lyons placing the weapon against the wall when it discharged. Edmore from spontaneous combustion destroyed the home and outlying buildings on the farm of Thomas Huyck near here with loss estimated at $10,000. Mt. Pleasant.- Pure Oil Pipe Line Co. has cut the price of crude oil 10 cents barrel to cents. The company buys the major portion of the output of the 10. cal field. Detroit. Marshall Abrams was sentenced to serve 30 days in county jail for false testimony be-


Article from The Grand Rapids Press, October 3, 1933

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MOORE TO HEAD BANK (Continued from First Page.) Grand Rapids Savings bank, it Final papers of the Peoples National have been Washington expected the bank to meet about positors per cent of their deposits in the Grand Rapids Savings Peoples National bank start including stock. participation through RFC. and stock surplus, local Balance deposits in Grand ids Savings bank to be liquidated.