9293. Monroe State Savings Bank (Monroe, MI)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
savings bank
Start Date
August 28, 1931
Location
Monroe, Michigan (41.916, -83.398)

Metadata

Model
gpt-5-mini
Short Digest
fc5b8268

Response Measures

Full suspension

Other: Bank adopted moratorium agreement with depositors; bylaws amended to allow pay-out percentage on demand at reopening.

Description

Articles report heavy withdrawals after four Toledo banks closed; two Monroe banks (including Monroe State Savings Bank) failed to open Aug 28, 1931. The bank remained closed under a moratorium and plans were developed; it reopened Aug 27, 1932 with new bylaws. Cause of run/suspension tied to distress of nearby Toledo banks (local_banks).

Events (3)
1. August 28, 1931 Run
Cause
Local Banks
Cause Details
Heavy withdrawals triggered by closure of four Toledo, Ohio banks; panic spread to Monroe depositors.
Measures
Bank closed and a moratorium/receiver arrangements were later put in place; officials declared depositors would suffer no loss.
Newspaper Excerpt
Two of this city's three banks failed to open their doors today as the result of wholesale withdrawals by depositors. The runs were started last week when four Toledo (Ohio) banks were closed.
Source
newspapers
2. August 28, 1931 Suspension
Cause
Local Banks
Cause Details
Suspension (failure to open) was a direct consequence of the run sparked by nearby Toledo bank closures.
Newspaper Excerpt
Two of this city's three banks failed to open their doors today as the result of wholesale withdrawals by depositors. The banks shut down are the Dansard State Bank and the Monroe Savings Bank.
Source
newspapers
3. August 27, 1932 Reopening
Newspaper Excerpt
When the Monroe State Savings Bank reopens August 27, year to the day after it closed, it will have in its by-laws authorizing officials to declare in an emergency that only percentage of each account will be paid upon demand. The bank, capitalized at $200,000, will be the twenty-first in Michigan to reopen.
Source
newspapers

Newspaper Articles (6)
1. August 28, 1931 The Washington Times Washington, DC
Article from The Washington Times, August 28, 1931

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Article Text

N. Y. BANK OWES $9,500, 000; CLOSES Shrinkage of Securities Hits Trust Co.; Toledo Run Ends Two Michigan Institutions NEW YORK, Aug. 28 (I.N.S.). The Bank of Europe Trust Company and its subsidiary, the Bank of Europe Safe Deposit Company, were taken over today by the State Banking Department. The bank has deposit liabilities of approximately $9,500,000. In announcing that the bank had been taken over, State Superintendent of Banking Joseph A. Broderick said the action was due to "depreciation in the value of its investment securities which so impaired the capital structure that it is deemed unsafe and inexpedient to permit this institution to continue in business." The bank and its subsidiary are to be liquidated at once, Broderick added. He said he hopes to be able to pay the first dividend to depositors and other creditors within 90 days. MONROE, Mich., Aug. 28 (I.N.S.).-Two of this city's three banks failed to open their doors today as the result of wholesale withdrawals by depositors. The runs were started last week when four Toledo (Ohio) banks were closed. The banks shut down are the Dansard State Bank and the Monroe Savings Bank. The third bank here, the First National of Monroe, opened its doors as usual. Officials of the two closed banks declared that the depositors would suffer no loss.

2. March 27, 1932 Detroit Free Press Detroit, MI
Article from Detroit Free Press, March 27, 1932

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Article Text

PLAN RE-OPENING OF MONROE BANK State Bank Department Works on Deal MONROE, Mich., March Monroe State Savings Bank, one of Monroe banks that closed August 28, 1931, re-opened June if stockholders positors approve Saturday the State Banking Department. must ratified by 95 per cent of the depositors Cook, receiver, said he exthe depositors co-operate the plan has been plained all depositors will in the near future. will be requested to ing to 100 per cent of their stock. plan provides moratorlum deposits. trust fund per cent would up mediately and interest would be paid this The balance the deposits would available for withdrawal in three, four five years after the plan effective. This plan worked by the careful State Banking Department study had been made have come its tention. time the department believes and ditions of the Country propitious and that the of certain sound plan, business

3. May 3, 1932 Detroit Free Press Detroit, MI
Article from Detroit Free Press, May 3, 1932

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Article Text

Investors' Round Table By WHITE CORP. shipped 1,293 cars in April, compared with 2,622 in March April, Reo Motor shipped 1,204 cars trucks April, 28 per April, 1931. New Illinois for April were 7,982, comMarch for 1931. New the four months this year against 47,715 for the like period last year. HIPMENTS of Kelvinator and Leonard refrigerators for the month of April 25,400 units, the period 1931 Monday president charge of sales. While definite figures yet available, expected that dollar sales will show same of crease because recent price ductions on all lines, Mr. Burritt stated. RED L. REINER manager of Maytag Washing Machine sales in Detroit area, reports that the units sold to already exceed volume the first six months 1931. the end of the first those the first half of 1931. OTOR SHARES like Chrysler and General Motors have held fairly narrow range recently sagging off fractionally the general Jones that better be forthcomfrom Detroit May than preceding months with output the month likely to register cent over April. Production of the neighborhood of would the largest since August. April upturn but special sales drives been effective stimulating demand The indicated duction total May would with 329,901 and trucks turned out May, 1931. L. SUGARMAN, of New Jersey, joined the local organization the Investors Syndidistrict according announcement by Albert CoState manager Sugarman connected past. Another addition the Michigan John terms treasurer the State of Michigan president the Michigan Bankers Association. During month, the vestors Syndicate has opened Pontiac proposes open others the eastern portion the State. E. SALLAN and Inc. bonds have been called for ment at par May to by Harold Crusoe, Fidelity Buildwho issues the closing the Fidelity Trust Co., which had trustee. MONDAY there 83 per cent moratorium agreements signed with view of opening the Monroe State Savings Bank, which closed doors August last year. Under the passed by the State only per take steps. of the moratorium per as under the These meeting the held April Cooke is the receiver. BENDIX BRAKE CO., subsidiary of the Bendix Aviation Corp., production South Bend Tuesday shock strut airplanes. The combined pneumatic and hydraulic from takes its name has snubbing Two test spent in developing the BOND AVERAGES Bonds Rails Ralls Public Utilities Industrials Off

4. August 14, 1932 The Cincinnati Enquirer Cincinnati, OH
Article from The Cincinnati Enquirer, August 14, 1932

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Article Text

HAS UNIQUE PROVISION. Monroe, Mich. August 13-(AP)When the Monroe State Savings Bank reopens August 27, year to the day after it closed, it will have in its by-laws authorizing officials to declare in an amergency that only percentage of each account will be paid upon demand. The provision is believed here to be unique. The bank, capitalized at $200,000, be the twenty-first in Michigan to reopen. Seven others are making final plans to resume business.

5. August 14, 1932 The Cincinnati Enquirer Cincinnati, OH
Article from The Cincinnati Enquirer, August 14, 1932

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Article Text

HAS UNIQUE PROVISION Monroe, Mich., August 13-(AP)When the Monroe State Savings Bank reopens August 27, year to the day after it closed. it will have provision in its by-laws authorizing officials to declare in an emergency that only a percentage of each will be paid upon demand. The provision believed here to be unique. The bank, capitalized at $200,000. be the twen ty-first in Michigan to reopen. Seven are making final plans to resume business.

6. August 21, 1932 Daily News New York, NY
Article from Daily News, August 21, 1932

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Article Text

NON-LIQUID BANK Monroe, Mich., Aug. 20.-When the Monroe State Savings Bank opens next Saturday, a year to the day after it closed, it will have a provision in its bylaws authorizing officials to declare in an emergency that only a percentage of each account will be paid upon demand. The provision is believed here to be unique. The bank, capitalized at $200,000, will be the twenty-first in Michigan to reopen. Seven others are making final plans to resume business.