9399. Commercial National Bank (St Joseph, MI)

View Charter #5594 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
5594
Charter Number
5594
Start Date
September 25, 1931
Location
St Joseph, Michigan (42.110, -86.480)

Metadata

Model
gpt-5-mini
Short Digest
49779de9

Response Measures

Full suspension

Description

Newspaper accounts state the Commercial National of St. Joseph closed in late September 1931 after depositor withdrawals (a run). The bank did not reopen; it was placed in receivership and liquidation (receivers and counsel appointed by Dec 1931). No evidence of reopening is found in the provided articles.

Events (4)
1. September 25, 1931 Run
Cause
Local Banks
Cause Details
Depositor panic triggered by news/closing of Commercial National led depositors to withdraw funds (panic spread to nearby banks).
Measures
None reported specifically for halting run; bank closed its doors to protect assets.
Newspaper Excerpt
the closing of the Commercial National of St. Joseph yesterday ... precipitated by closing ... depositors became panicky and began to drain the bank of its cash reserves.
Source
newspapers
2. September 25, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Directors closed the bank to stop heavy withdrawals and conserve assets after depletion of cash by withdrawals (practical insolvency/liquidity exhaustion).
Newspaper Excerpt
closed its doors yesterday ... directors voted to close in order to conserve the bank's assets and protect all of the depositors.
Source
newspapers
3. December 2, 1931 Receivership
Newspaper Excerpt
Ross H. Lamb ... has been appointed attorney for the receiver for the Commercial National bank of St. Joseph, Mich. ... for the purpose of liquidating the bank which closed the latter part of September.
Source
newspapers
4. June 7, 1933 Other
Newspaper Excerpt
The receiver's statement shows the Commercial still owing ... The Commercial National of St. Joseph, which also being handled by Receiver Payne, doesn't indicate immediate prospects for dividend for the depositors.
Source
newspapers

Newspaper Articles (7)
1. September 26, 1931 The Herald-Palladium Benton Harbor, MI
Article from The Herald-Palladium, September 26, 1931

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Article Text

LOCAL, STEVENSVILLE BANKS SHUT DOORS Voluntary Closings By Directors Of Institutions Taken As Final Move To Protect Depositors To Fullest Extent Two additional banks closed their doors today in the interests of their depositors rather than to continue to pay out money to meet runs which the bank managements felt could not be checked. The Stevensville State bank failed to open for business this morning and at 10:30 this morning the Berrien County bank-Benton Harbor's smallest bank-closed its doors. The Berrien county bank opened as usual this morning. Depositors besieged the cages for their money and as they did so the bank directors met in their room in the rear of the bank and voted to close in order to conserve the bank's assets and protect all of the depositors. Will Pay Out 100 Per Cent "We will pay out 100 cents on the dollar and not depositor will lose penny, said James M. Rose, dean of Benton Harbor's bankers and cashier of the Berrien County, as he turned the keys in the front door locks.' typewritten notice on the door told the public that the bank was closed in order to the bank's assets and protest all of the depositors. Stevensville Run Surprises The run which closed the Stevensville bank was something of a surprise in local banking circles as this little Lake Shore Drive bank was generally believed to be in good condition. However, depositors in the Stevensville bank, doubtless influenced by the closing of the Commercial National of St. Joseph yesterday, became panicky and began to drain the bank of its cash reserves. At o'clock yesterday afternoonan hour before closing time-the Stevensville bank had to close its doors because it had paid out all the cash in its coffers. Last night the directors held a session and decided rather than pull in more money and face another run today it had better close and thus protect all of the depositors in the liquidation that would follow. This morning, at opening time, notice on the front door stated that the bank had been closed by order of the board of directors and the state banking department was taking charge. The Stevensville bank's deposits, according to its last statement, aggregated about $300,000 Was City's "Baby" Bank The Berrien County was Benton Harbor's "baby" bank, the youngster of the local banking group. had deposits of approximately million dollars. K. Minary, long head of the local Street Railway company, was its president. Mr. Rose, its cashier. has been identified with Benton Harbor banking circles for the best part of his life. Mayor Stouck and City Manager Barnard are among its directors. Grimly Face Situation The Berrien County officers and directors grimly faced their situation this morning. It was either a question of meeting the run until every available dollar was exhausted or closing for the protection of all its depositors. Last night there was conference of the bank's officials and other local bankers and also representatives of the state banking department from Lansing. The decision to close this morning was reached, providing this morning continued to insist on drawing out their money. Calmly Meeting Crisis The crisis precipitated by the closing the Commercial National of St. Joseph this morning was being calmly met today by Benton Harbor's banks. Even the closing this morning of the Berrien County caused no ripple of commotion among the officials of in the three other banks. Loaded with great stacks of currericy, the other three banks of the city were meeting every demand that came with perfect assurance that they could weather the storm. From the federal reserve in Chicago and other depositories the three surviving banks drew on their immense cash reserves. Officials of the banks believed that before the day was over the worst of the storm would be over; that depositors would realize what they were doing. and would refuse to promote any more bank failures. At noon today the situation peared better. even in the face of the two voluntary closings here and at Stevensville. Draw Out $30,000 The directors of the Stevensville bank voted to close last night after depositors had pulled out over $30,000 from the little institution. Fred Jung, cashier, notified Fred

2. December 2, 1931 The Kokomo Tribune Kokomo, IN
Article from The Kokomo Tribune, December 2, 1931

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Article Text

KOKOMO MAN LAWYER FOR BANK RECEIVER Ross H. Lamb, atterney of BenPostmaster Morton Lamb. has been appointed attorney for the receiver for the Commercial National bank of St. Joseph, Mich., according to in the Benton Harbor Mr. Lamb's selection was made through the of .T. W. Poole, comptroller of the currency at Washington. His appointment was the final of receivership officers for the purpose of liquidating the bank which closed the latter part of Septemher. Mr. Lamb went to Benton Harbor from Kokomo two years ago.

3. October 20, 1932 The Herald-Palladium Benton Harbor, MI
Article from The Herald-Palladium, October 20, 1932

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Article Text

DR. KING AGAIN VICTOR IN BANK STOCK DISPUTE For the second time circuit court jury this afternoon returned verdict no cause for action in connection with the efforts of George Tyson, ceiver of the Baroda State collect $2,500 from Dr. Frank King, prominent Benton Harbor surgeon. Twice the receiver has brought suit for judgment claiming that the physician refused to pay note given him exchange stock in the funct Commercial National bank St. The case was first tried last spring both instances Dr. King insisted that the bank solvent at the time was persuaded purchase stock, alleging he was the victim fraud. The stock was purchased shortly before the bank closed. King the bank stock to the Babank The was represented by Attorneys Barr and Ross Lamb. King represented by Attorneys John and Gray.

4. January 13, 1933 The Herald-Palladium Benton Harbor, MI
Article from The Herald-Palladium, January 13, 1933

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Article Text

Receiver's Report On American National Shows Progress Another dividend for the stockholders of the American National bank may not be far the cash now hand taken as any criterion. According to the quarterly statement of the local bank's receiver, W. R. Payne, the cash hand now totals $234,004.93. The bank some time ago repaid its loan to the Reconstruction Finance Corporation Washington thus no bilities this type that would sorb available funds. The probabilities are that early spring see percent dividend percent dividend paid last summer out of funds obtained from the federal loaning agency. Nothing. Commercial The statement of the Commercial National of Joseph. which also being handled by Receiver Payne, doesn't indicate mediate prospects for dividend for the depositors that The receiver's statement shows the Commercial still owing the (Please Turn to Page Nine)

5. June 7, 1933 The Herald-Palladium Benton Harbor, MI
Article from The Herald-Palladium, June 7, 1933

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Article Text

STERLING OUT AS ATTORNEY FOR RECEIVER Succeeded By Evans As Counsel In American National Affairs Fremont Evans of St. Joseph. prominent sister city attorney and county Democratic leader. succeeded Mayor John Sterling as attorney for the American National bank receiver today. The American National receiver R. Payne, conservator of the Farmers & Merchants National bank and receiver for the Commercial National bank in St. Joseph, and the first National bank of Buchanan. Attorney Evans' appointment from the office of the comptroller general in Washington. Mr. Sterling has been attorney for the American National received since the Main street financial institution closed its doors, December 17. 1931. "I've Been Discharged" Mr. Payne confined his comment afternoon to bare verication Mr. Evans' appointment. Asked he had resigned, Mayor Sterling said, "you could scarcely put it that wayI've been discharged. You might say my connections.' Attorney Evans' appointment seen in the light political move the present administration, since the St. Joseph lawyer has always been staunch Democratic worker, while Mayor Sterling is an equally (Please Turn to Page Six)

6. March 19, 1934 The Herald-Press Saint Joseph, MI
Article from The Herald-Press, March 19, 1934

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Article Text

WASHINGTON Called to Capital to Assist in Comptroller's Office There Payne, local bank receiver, in today will there for several weeks, understood. Payne left for Washington Saturday, called there by the comptroller the treasury the purpose assisting the comptroller's office temporarily. The local office force will carry on during his absence. Since coming the twin cities about two and half years ago, Mr. Payne has been one the busiest Berrien's bank receivers. He first over the affairs of the CommerNational Joseph, later made receiver the American tional of Benton Harbor and then given the receivership of the Buchanan Last year, the reorganization of the Farmers bank Benton Harbor, acted conservator that stitution from March until When the reopened he turned offices the Commerand has since been recting the receiverships of the three banks originally Recently Mr. Payne paid third dividend, amounting per cent. the depositors American and also released dividends the directors the American National who had deposits with that bank the the institution closed doors in December of 1931. Dividends directors of the American National were held the case all national banks. gardless whether the directors their stock assessments. The release of these directors' dividends, where directors were not beholden the bank, taken indicate liabilpertaining to the directors of the bank had been satisfactorily adjusted. INJURED BY CAR Clarence Sinclair, of Watervliet, taken to Mercy hospital yesterinjuries suffered Friday at midnight while walking Main street in Watervliet. ported hit-and-run driver struck causing injuring his left leg. King was called.

7. March 19, 1934 The Herald-Palladium Benton Harbor, MI
Article from The Herald-Palladium, March 19, 1934

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Article Text

COMPTROLLER CALLS ON RECEIVER PAYNE FOR CAPITAL AID W. R. Payne, local bank receiver, was in Washington today and will be there for several weeks, it is understood. Mr. Payne left for Washington Saturday, called there by the comp- tion troller of the Treasury for the purpose of assisting the comptroller's office temporarily The local office force will carry on during his absence. Since coming to the twin cities about two and a half years ago, Mr. Payne has been one of the busiest of Berrien's bank receivers. He first took over the affairs of the Commercial National of St. Joseph, later was made receiver for the American National of Benton Harbor and then was also given the receivership of the Buchanan National. Last year, during the reorganization of the Farmers & Merchants of Benton Harbor, Mr. Payne acted as conservator of that institution from March until November. When the F. & M., reopened The returned to his offices at the Commercial National and has since been directing the receiverships of the three banks he originally took over. Recently Mr. Payne paid a third