First & Merchants National Bank (Richmond, VA)

View Charter #1111 on SPMC View balance sheet

Episode Information

Episode UID
111101588
Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
11110 national
Charter Number
1111
Start Date
April 12, 1932
Location
Richmond, Virginia

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
3aef85504d09af7a

Response Measures

None

Description

The bank was affected by the Virginia state banking holiday (March 4-7) and the subsequent federal holiday. It reopened as a licensed member bank.

Events (4)
1. May 3, 1865 Chartered
Source
historical_nic
2. April 12, 1932 Other
Newspaper Excerpt
The First and Merchants National Bank of Richmond was appointed by Federal Judge Luther Way yesterday as for the Virginia Mortgage and Finance Corporation
Source
newspapers
3. March 4, 1933 Suspension
Cause
Government Action
Cause Details
State-wide banking holiday declared by Governor Pollard due to systemic pressure and runs in Richmond.
Newspaper Excerpt
Virginia is to have a banking holiday Monday and Tuesday Attempted heavy runs here today caused it to be announced that all Richmond banks will be closed two days.
Source
newspapers
4. March 15, 1933 Reopening
Newspaper Excerpt
With a majority of the banks functioning on a normal basis, business as usual was the slogan in the Maryland and Virginia counties around Washington today.
Source
newspapers

Newspaper Articles (6)
1. April 13, 1932 Richmond Times-Dispatch Richmond, VA

Article Text

Bank Is Named As Receiver In Talley's Place Judge Way Appoints First and Merchants in Case of Finance Corporation The First and Merchants National Bank of Richmond was appointed by Federal Judge Luther Way yesterday as for the Virginia Mortgage and Finance Corporation and in the place of Robert H. Talley, who had acted as receiver June, 1927 The bank is expected to qualify today Impulse behind the court order for the change in receivership was from the finance corporation's representatives in the move to bring an accounting of the $82,584.52 claimed to be involved in the receivership case Mr Talley as receiver placed $33.662.08 on deposit in the Chemical Bank and Trust Company of New York and the remainder of the fund has yet to be adjusted in court He bonded by the National Surety Company for $50,000 The law firm of McGuire. Riely & Eggleston and Shewmake & Gary were appointed in the court order as counsel for the bank as receiver Mr. Talley, who resigned as United States district attorney for the Eastern District of Virginia last Thursday. and was succeeded by Paul W. Kear of Norfolk in temporary appointment, has since his resignation been under treatment for physical and nervous disorders at Tucker Sanatorium here.

2. April 26, 1932 Covington Virginian Covington, VA

Article Text

PAY $50,000 ON TALLEY BOND RICHMOND, Va., April 26.-The National Surety Company, bondsmen of Robert H. Talley, former attorney for the Eastern District of Virginia, today paid $50,000 to the First and Merchants' National Bank, substitute receivers for the Virginia Mortgage and Finance Corporation for which Talley had bene receiver.

3. April 27, 1932 Richmond Times-Dispatch Richmond, VA

Article Text

Talley Surety Pays $50,000 To Receivers Check Is Forwarded to Richmond Bank: Motion For Judgment to Cease check for $50,000 was forwarded by the National Surety bondsman Robert H the and Bank receiver for the and Finance Mr. former United States attorney who now being in the City an resigned recently as when he found unable to settle his account The motion for judgment against bonding accordingly will withdrawn in United States Dis Court was yesterday by Shewmake Gary and McGuire Riely Eggleston attorneys for the substituted receiver The substituted contends that the amount due Talley excess of as against originally named of approximately cannot be unless the distribution of Mr. Talley's and bonding company claim against estate up to the amount of Oscar Shewmake said yesterday An order directing the First and National Bank to make the funds its receiver will be asked addition 000 paid by the over company there is held Mr. Talley in New York and subsequently transferred This total of approximately $84,000 less necessary expenses. will be tributed shortly to the former stock holders the Virginia Mortgage and Finance Corporation and the Keystone Credit 55 per cent going the former and 45 to The has kholders of whom two live B. H. Bratney general solicitor for the National Surety Company told counsel for the substituted receiver last week that his company would make full payment of all money due as the audit was completed forwarded the check as soon as the auditors had finished their work Robert Talley will face embezzle. ment charges the May term of Hustings Court continued until the June term. These charges amounts gating about $30,000 which hanfor and are in no way related to receivership in the United States District Court

4. March 5, 1933 The Washington Herald Washington, DC

Article Text

EVEN 'SPEAKS' FACE CLOSING New York Booze Purveyors Hit by Bank Holidays; Cities Take Drastic Steps NEW YORK, March 4. (U.P.) If extended over a sufficient period, the bank moratorium may close New York's speakeasies, Chief of Police Edward P. Mulrooney said hopefully today. "If we go on a scrip basis, the speakeasies will fade away. I never heard of a speakeasy that could survive on scrip. There isn't enough mutual con fidence in that game." Speakeasy proprietors h were hard hit by today's bank action. Most of them reported a falling off of 25 per cent of their normal Saturday business. CLEVELAND, March 4. (U.P.) Currency will be replaced by scrip in Cleveland next week. An announcement late today after a conference of bankers, said. certificates would be issued by the Cleveland Clearing House Association for use by employers in paying salaries and wages to employes. The certificates will be in denominations of $1, $2. $5 and $10. They will be acceptable by stores in exchange for goods needed. WILMINGTON, Del., March 4 clared a banking holiday until further notice from Governor C. D. Buck. Delaware was the last State to enter the nation-wide bank holiday. "We had to do it," said Otto Nowland, president of the Wilmington Clearing House Association. "Our banks are sound, but due to the national situation we had to come in. We are proud Delaware was the last State to declare the bank holiday." PITTSBURGH, March 4 (U.P.). Hard-pressed taxpayers of Allegheny county, facing sale of their properties for delinquent taxes Monday, were given a moratorium today in view of Pennsylvania's two-day banking holiday. Sheriff Frank I. Gollmar announced the sale would be postponed until Friday because many taxpayers. with money in banks, would be unable to secure the cash required to bid in their properties. RICHMOND, Va., March 4 (U.S.) Virginia is to have a banking holiday Monday and Tuesday Attempted heavy runs here today caused it to be announced that all Richmond banks will be closed two days. Governor Pollard previously had said he saw no necessity for the holiday The State Corporation Commission this afternoon issued the order limiting withdrawals from numerous banks in the Valley of Virginia. DETROIT. March 4 (U.P.). City officials, merchants and members of the Detroit Clearing House Association were considering plans tonight for the issuance of scrip to supplement the sharply curtailed supply of currency City Comptroller Charles E. Gightor announced he would call a meeting of merchants and business men on Monday to consider plans for the issuance of $20,000.000 in scrip against delinquent or future tax receipts. The Clearing House Association likewise was formulating plans for issuance of scrip as a lien against frozen bank deposits. NEW ORLEANS. March 4 ((U.P.) Mayor T. Semmes Walmsley today warned residents of New Orleans against overstocking their homes with food. declaring: "It may be difficult to get new stocks of foodstuffs into the city if the present supply becomes exhausted.' The mayor ordered a large chain grocery store to limit its sales. SACRAMENTO. Cal., March 4 (U.P. .-Governor Ralph tonight proclaimed an extension of the California bank holiday until Thursday, March 9. The new three-day period will begin Monday with general holiday similar to the one now in effect, the governor said. JACKSON, Miss., March 4 (U P.) -Mississippi banks remained open today. J. S. Love. State superintendent of banks, issued a mandatory to all banks to allow no depositors to withdraw more than 5 per cent of his total balance DAYTON. Ohio, March 4 (U.S.) Bankers and merchants agreed today on system of clearing house scrip to meet the shortage of currency during the bank holiday The scrip will be issued beginning Monday in denominations of $5 and $10. $2. -Buy and Be American- MEMORIAL SERVICE A memorial service for the late Grand Duke Alexander of Russia will be held at 12:30 o'clock at the Russian Church of St. Nicholas, 1814 Riggs Pl. N. W.

5. March 5, 1933 Richmond Times-Dispatch Richmond, VA

Article Text

Roosevelt Warns Invoke War-Time Power As Hail To Meet Crisis 250,000 Inauguration; Two-Day Holiday Declared For Virginia's Banks Pollard Cites Pressure; Federal Reserve Heads Summoned by Woodin Action by en Only After Banks in New York Are Closed by Temporary Holiday Order Is Preceded By Discussion Bankers AdvisReserve ed Moratorium Forced by Outside Influences Crisis Over S. in A mandatory bank holiday in Virginia for Monday and Tuesday was last night by Governor proclaimed while in Washington atPollard, tending the Roosevelt inaugural ceremonies. this power, GovIn exercising Pollard said his action was ernor taken upon the recommendation of Reserve banks of the the Federal district. "Since making my statement of Friday night," the Governor's an"there have nouncement been unforeseen developments New York and in other financial centers of the country where bank holidays have been declared. night Governor Pollard Friday necessity day view of Virginia's law permitting banks to restrict withdrawal of deposits, subject to approval the State Corporation Commission Pollard's statement last night, in reference to the New York bank holiday development, which included closing of the New York Stock Exchange and Cotton Exsaid: "This new development changes the and imposes an undue burden upon the banks of Virginia. "While Virginia has statute which under less critical circumstances would meet the situation through application of the banks to the Corporation Commission, the machinery incident to the operation of this law would cause delay which must be avoided under existing unprecedented conditions. "In order, therefore, to relieve the banks of the necessity of making separate applications with the recommendation of the Federal serve banks of this district, declaring legal holiday operative for Monday and Tuesday. March and through the State and binding all the banks." Governor Pollard's announcement of the two-day banking holiday came few hours after Richmond bankers conferred at the Federal Reserve Bank of Richmond, the conference being attended by M. Bristow. State Banking Commissioner, and Assistant AttorneyGeneral Collins Denny Jr. Virginia remained one of the last States to declare banking holiday. and the closing was forced upon banks because of the pressure outside influences, was learned last night. Most Virginia banks maintain balances in New York City. The sult of the closing there was that New York corporations with deposits here drew on Virginia banks, which in turn saw part of their funds tied up in New York. The strain on Virginia banks began with the declaring of bank holidays in Maryland, West Virginia, Kentucky and Tennessee, neighboring States, and the closing of large bank in Washington, Despite this ring drawn around the Old Dominion, this State maintained normal banking until the New York closing precipitated crisis which caused member banks of the Federal Reherve Bank Richmond. in the interest of their own depositors, to recommend State-wide closing for two days. The New York holiday was proclaimed for yesterday and tomorrow. Reopening of New York banks Tuesday would clarify the Virginia atmosphere, as well that of other States, was stated last night by local banker. considerable sum was withdrawn yesterday from banks, but there was action suggestive The American Bank and Trust Company applied the agreements passbook contracts savings accounts the extent of limiting withdrawal savings account deposits without notice $10. learned yesterday that the Federal Reserve Bank during the past ten days has lent Continued on Page Seven. Call for Discussion of Bank Situation Comes Just After New SecreGoes Into Office tary

6. March 15, 1933 Evening Star Washington, DC
Article from Evening Star, March 15, 1933

Click image to open full size in new tab

Article Text

BANKS IN NEARBY COUNTIES REOPEN Most Neighboring Virginia and Maryland Institutions on Normal Basis. With a majority of the banks functioning on a normal basis, "business as usual" was the slogan in the Maryland and Virginia counties around Washington today. Shortly after their doors opened, bankers of the various counties reported deposits were "heavier than usual," while withdrawals were described as "normal," indicating the experience which Washington's banks had yesterday was being repeated on a smaller scale today in Maryland and Virginia. As President Roosevelt's progressive program for reopening the Nation's financial institutions reached its third stage, the restored confidence which has been so evident in the financial centers and big towns of the country during the past two days, reached the rural areas and small towns this morning. Others to Open Later. Marylanders were particularly happy to have their banks functioning again, as they have been closed by gubernatorial holiday proclamations since February 25. Virginia banks had only suspended operations during the national holiday, which began March 6. State Bank Commissioner John J. Ghingher of Maryland emphasized, in announcing the list of banks licensed to reopen, that those not included were not necessarily unsound and probably would be permitted to resume functioning in the near future. The commissioner issued licenses for 96 State banks and expects to have more time to examine the unlicensed ones with a view to reopening them in the next few days. Ten of the 11 banks in Montgomery County whose doors have been closed during the holiday reopened for business this morning, with the other institution awaiting action by the Federal Reserve Bank in Richmond on its application to resume normal operation. With the exception of the Farmers' Banking & Trust Co. of Rockville and the Bank of Damascus the 10 institutions open for business were operating with no restrictions on withdrawals. A 2 per cent limit has been placed on withdrawals from the Farmers' Banking & Trust Co. and the Bank of Damascus. Eight on Normal Basis. The eight banks that resumed business on a normal basis are the First National Bank of Gaithersburg, Citizens' Bank of Takoma Park, Takoma Park Bank, Germantown Bank, Bank of Bethesda, First National Bank of Sandy Spring, Sandy Spring Savings Institution and the Silver Spring National Bank. Officials of the First National Bank of Gaithersburg said this morning that they have not yet received their license from the Federal Reserve Bank of Richmond, but opened for business when given the assurance that the license would be granted today. The Montgomery County National Bank of Rockville was not open this morning, but the cashier of the institution declared that application had been made with the Federal Reserve Bank for a license to operate on a normal basis with no restrictions on withdrawals. Ira C. Whitacre, cashier, Silver Spring National Bank said, "We opened this morning on a 100 per cent basis and (Continued on Page 5, Column 3.)"