gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
a212d8f407cf15f3
Response Measures
None
Receivership Details
Depositor recovery rate
88.0%
Date receivership started
1933-02-02
Date receivership terminated
1938-04-28
Share of assets assessed as good
16.0%
Share of assets assessed as doubtful
82.7%
Share of assets assessed as worthless
1.3%
Description
Known receivership date (1933-02-02) applies to this national bank and is referenced by later reporting.
Events (4)
1.October 19, 1926Chartered
Source
historical_nic
2.February 2, 1933Receivership
Source
historical_nic
3.February 2, 1933Receivership
Newspaper Excerpt
The banks in question are the Lincoln Park National bank, Inkster National and the First National of Dearborn.
Source
newspapers
4.February 14, 1933Suspension
Cause
Government Action
Cause Details
Statewide moratorium ordered by Michigan governor (eight-day bank holiday) to halt runs.
Newspaper Excerpt
The Governor of Michigan has closed all the banks and trust companies in his State for eight days.
Source
newspapers
Newspaper Articles (11)
1.February 15, 1933Daily NewsNew York, NY
Article Text
THE MICHIGAN MORATORIUM
The Governor of Michigan has closed all the banks and trust companies in his State for eight days. It is the same thing, on a larger scale, as has happened in many small towns in the Middle West and West during Shutdowns the course of this depression. It has happened all over Michigan for the same reason, Vs. Runs which appears to us to be a good reason. This reason simply is that the gold standard dollar has been growing more and more un-get-atable. It is better to freeze money in the banks and go on a scrip basis temporarily than to permit bank runs, which might produce bank failures. We think Gov. Comstock of Michigan has acted wisely and with true prudence. As we see it, the Michigan moratorium is another argument for cheapening the dollar so that people can get it more easily to buy goods, pay debts and keep business in motion. President Hoover told us Monday night in solemn tones that if we go off the gold standard we shall have economic disaster. What does he think we're having now?
2.February 15, 1933Daily NewsNew York, NY
Article Text
THE MICHIGAN MORATORIUM
The Governor of Michigan has closed all the banks and trust companies in his State for eight days. It is the same thing, on a larger scale, as has happened in many small towns in the Middle West and West during Shutdowns the course of this depression. It has happened all over Michigan for the same reason, Vs. Runs which appears to us to be a good reason. This reason simply is that the gold standard dollar has been growing more and more un-get-atable. It is better to freeze money in the banks and go on a serip basis temporarily than to permit bank runs, which might produce bank failures. We think Gov. Comstock of Michigan has acted wisely and with true prudence. As we see it, the Michigan moratorium is another argument for cheapening the dollar so that people can get it more easily to buy goods, pay debts and keep business in motion. President Hoover told us Monday night in solemn tones that if we go off the gold standard we shall have economic disaster. What does he think we're having now, while we still cling to the gold standard?
3.February 15, 1933Daily NewsNew York, NY
Article Text
THE MICHIGAN MORATORIUM
Vs. Runs
The Governor of Michigan has closed all the banks and trust companies in his State for eight days. It is the same thing, on a larger scale, as has happened in many small towns in the Middle West and West during Shutdowns the course of this depression. It has happened all over Michigan for the same reason, which appears to us to be a good reason. This reason simply is that the gold standard dollar has been growing more and more un-get-atable. It is better to freeze money in the banks and go on a scrip basis temporarily than to permit bank runs, which might produce bank failures. We think Gov. Comstock of Michigan has acted wisely and with true prudence. As we see it, the Michigan moratorium is another argument for cheapening the dollar SO that people can get it more easily to buy goods, pay debts and keep business in motion. President Hoover told us Monday night in solemn tones that if we go off the gold standard we shall have economic disaster. What does he think we're having now, while we still cling to the gold standard?
4.February 15, 1933Daily NewsNew York, NY
Article Text
THE MICHIGAN MORATORIUM
The Governor of Michigan has closed all the banks and trust companies in his State for eight days. It is the same thing. on a larger scale, as has happened in many small towns in the Middle West and West during Shutdowns the course of this depression. It has happened all over Michigan for the same reason, Vs. Runs which appears to us to be a good reason. This reason simply is that the gold standard dollar has been growing more and more un-get-atable. It is better to freeze money in the banks and go on a scrip basis temporarily than to permit bank runs. which might produce bank failures. We think Gov. Comstock of Michigan has acted wisely and with true prudence. As we see it. the Michigan moratorium is another argument for cheapening the dollar so that people can get it more easily to buy goods, pay debts and keep business in motion. President Hoover told us Monday night in solemn tones that if we go off the gold standard we shall have economic disaster. What does he think we're having now
5.February 15, 1933Daily NewsNew York, NY
Article Text
THE MICHIGAN MORATORIUM
Shutdowns Vs. Runs
The Governor of Michigan has closed all the banks and trust companies in his State for eight days. It is the same thing. on a larger scale, as has happened in many small towns in the Middle West and West during the course of this depression. It has happened all over Michigan for the same reason, which appears to us to be a good reason. This reason simply is that the gold standard dollar has been growing more and more un-get-atable. It is better to freeze money in the banks and go on a scrip basis temporarily than to permit bank runs, which might produce bank failures. We think Gov. Comstock of Michigan has acted wisely and with true prudence. As we see it, the Michigan moratorium is another argument for cheapening the dollar so that people can get it more easily to buy goods, pay debts and keep business in motion President Hoover told us Monday night in solemn tones that if we go off the gold standard we shall have economic disaster. What does he think we're having now ?
6.February 16, 1933The Bismarck TribuneBismarck, Mandan, ND
Click image to open full size in new tab
Article Text
# Holiday
It was a vigorous and drastic step which Governor Comstock took to curb a prospective run on Michigan's banks but one which time probably will prove to have been beneficial.
To close every bank in a state means to put an immediate halt to business. Without the services of these important institutions the holiday becomes one in fact as well as in name.
But it is a good deal better to have an eight-day respite throughout the entire state than disaster in many communities with banks permanently closed. Probably all of those banks will be able to pull through if properly supported. Eight days will give the banks ample time to liquify some of their resources but, more important, it will give the public a chance to think it over and cool down. Sometimes a holiday is a wonderful thing.
7.February 23, 1933The Columbus LedgerColumbus, GA
Article Text
The Michigan Banks enforced to holiday in Michigan, bank, is furnishing one important prevent Reconstruction F1problems for the some particular the Federal Reserve officials of nance been made to have an Strong Congress to promeasure rushed through emergency situation and any to deal with the special power inclination of Congressmen others similar itself handle the state of Michigan seems to these affairs
The does not expect supply unlimited and on doubtful to the Michigan banks sums that in connection and demand certain security, bank officials and relief extends that the the though the Michigan affair presents sorry situation troubles will be smoothed rapidly hoped that the Detroit disturbance has probably ended all provision to be for the Glass branch banking chance this session of It may enacted celeration to the sentiment in Washington for guarwhich would mean pooling antee of bank resources for general reinforcesomewhat of reserve This would be an and mutual ment substitute for assistance and finally block off they are working on plan Out in and troubled financial institutions and frozen assets operations with new assets. start new that few more months will be It expected clean up the bad places in the banking to required that after that these affairs should and increasingly improved condition and move into an status.
Commissioner Adams and Mr Rountree seem to disagreement
8.March 8, 1933The Hastings Daily TribuneHastings, NE
Article Text
Regrets Over Moratorium That Spread Over Nation.
CLAUDE Mich. Mar. three weeks ago in the dim day penned the preface the most crucial chapters his tory firmly believes took the only would the same thing again, Governor Wm. said today February seated the room the Union Trust Company De troit, Comstock signed drastic bank holiday proclamation that marked the ginning of the present period. Comstock believes that the developments the last which have seen state finally the federal gov lead Michiwill quicken the pulse economic place nation's financial structure Faced Difficult Decision. faced the difficult decilife three weeks this just before signed the which closed Michi banks during mor atorium," the United Press then there have been moments flinched thought the results of that been feeling with the assurance that merely personal government. "Consider what would have hap pened the not declared. One of the large financial houses of Detroit, the state, would have closed its rest of the day would have bank bank Michigan stripped its and liquid serves panicky and turned empty shells only frozen assets for the small, Prevented Panic.
"Within three the panic would more rapidly than the mora The would been chaos billions dol securities thrown upon an already flooded market by bank would been three before could have begun recover from disaster Today every bank the country sound condition three weeks Six months from not more be operating normal and the meantime banks will have the these facts in mind, have no the most important the present situation, GovComstock believes, will healthy public attitude banks closer supervision them by the government.
Former President Refuses Testimony (Continued from Page 1.) Mr Hoover and to get their testimony," Toy said. "We have not yet ceased our efforts to have Mr Hoover testify." Toy said there was no legal means by which he could force the former president to testify. A grand jury subpoena is a command only in Michigan. Father Charles E. Coughlin crusading priest and bitter critic of local personalities involved in the closing of Detroit banks, was to be today's witness before the grand jury. Senator James Cousins (rep, Mich), whose criticism of the Hoover administration's banking policies, caused Prósecutor Toy to invite Mr Hoover's testimony, finished his testimony yesterday. Mr Hoover's telegram suggested various officials of his administration were the only ones qualified to give "detailed and competent information as to the relations of federal authorities to the events leading to the closing of these banks." He named former officials of their Reconstruction Finance Corporation, the federal reserve board, and the former controller of currency. "I have no objection to furnishing any information which I properly can, but such information as I can give is only general and is mostly second hand," his telegram said, "and is insufficient to warrant a journey to Detroit and can be more effectively given by the offcials mentioned. I am sure it is fully available to you." Mr Hoover sketched his own part in the Detroit crisis. Officials of the R. F. C. and the federal reserve board informed him in February, he said, that the Guardian Trust company of Detroit was undergoing a run and its closing would cause panic runs on other banks. The Guardian Trust situation was such that the utmost government assistance cou. have have helped and to bring He without was asked help reorganization. about banks the co-operation of other Detroit and other interests to reorganize the Trust company and "thus prevent a crisis in that city." "I and the other officials devoted ourselves unceasingly during the following 48 hours in many directions to building up the co-operation necessary to save the situation and it was continued until it was brought to a halt by the determination of the governor that it was wise to close the whole of the Michigan banks."
10.August 23, 1933Pittsburgh Sun-TelegraphPittsburgh, PA
Article Text
Text of Hoover's Reply To Detroit Bank Probers
PALO Cal., Aug. text of former President Hoover's telegram today Harry Toy. prosecutor at Detroit. follows: have received from the press copy of letter ad- dressed to me by yourself questing that should come Detroit witness in the in- quiry you are conducting in spect to the closing of the Michigan banks last February.
'Detailed and competent information as to the relation of federal authorities to the events leading to the closing of these obtained only from the former officials the Reconstruction Finance Corporation. the Federal Reserve Board, the comptroller the Currency, and from the record.
RUN ON BANK
"My recollection of my own connection that on Thursevening February, the officials informed that the Guardian Trust Company of Dein was undergoing run by its depositors and that should it close would precipitate panic run other Detroit and Michigan banks. The impression received from that the other leading banks Detroit had not been subject to able meet their deposit there was no general panic the although had number of slow assets in Detroit mortgages. informed the Guardian Trust was such that with the utmost government assistance possible under the law would be insufficient without outside help and reorganization internally. The of these gentlemen, and understood, leading men in Detroit that should endeavor bring about ation outside banks, private and leading depositors to the company and thus erisis We had successfully such action occasions in other cities and losses.
UNCEASING EFFORT and the other officials de. voted ourselves unceasingly dur- ing the following 48 hours in many directions to building up the co-operation necessary to save the situation and it continued until was brought to halt by the determination of the Governor that it was wise close the whole of the Michigan banks. have said, the details of these plans and negotiations and those subsequently developed by officials of the Reconstruction Finance the Federal Reserve and the Treasury for reopening the Michigan banks only be had from the then officials those organizations. have no objection to furnishing any which properly can. but such information give general and mostly second hand. and is insufficient warrant journey to Detroit. and can be effectively given by the ficials mentioned. am sure is fully available to
11.April 4, 1935The Grand Rapids PressGrand Rapids, MI
Article Text
(The Grand Rapids Press Bureau.)
Washington, April 4.—Representative Clarence J. McLeod, Republican of Detroit, was charged Wednesday by Comptroller of the Currency J. F. T. O'Connor with having obtained for his law firm fees totaling nearly $12,000 by representing Detroit area national banks in receivership.
McLeod recently demanded an investigation of the comptroller's office.
O'Connor stated he had acted in a nonpartisan manner in retaining the McLeod, Fixel, Abbott & Fixel law firm, after it had been appointed counsel for three banks by Republican comptrollers. O'Connor also vehemently denied that the chairman of the Democratic national organization, Postmaster General James A. Farley, ever had had anything to do with the "fixing" of fees for counselors appointed.
The banks in question are the Lincoln Park National bank, Inkster National and the First National of Dearborn.
"Congressman McLeod had his firm appointed because of his Republican standing," said O'Connor. "He now questions the right of any Democratic firm to be appointed in exactly the same manner."
Referring to the charges aimed at Farley, O'Connor said, "The misleading statement by the congressman is positively vicious."
Representative McLeod conceded his firm had represented the three banks, but also pointed out that the fees were paid for more than three years' service. This boils down to $1,250 per bank year.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
