Seventh Street Savings Bank (Washington, DC)

Episode Information

Episode UID
15007771599
Episode Type
Run → Suspension → Closure
Bank Type
savings
Bank ID
1500777 routing
Routing Number
15-0077
Start Date
March 1, 1933
Location
Washington, District of Columbia (38.895, -77.036)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
6f8a9e1e9b2a281d

Response Measures

None

Description

The bank invoked a 60-day notice clause during a run in March 1933, was subsequently closed by the federal banking holiday, and never reopened, eventually entering receivership.

Events (4)
1. March 1, 1933 Run
Cause
Macro News
Cause Details
Heavy withdrawals amid systemic banking distress in the days leading up to the national banking holiday.
Measures
Invoked the 60-day notice clause on savings account withdrawals.
Newspaper Excerpt
Several savings banks here invoked the 60-day clause on withdrawal of savings accounts... Among the local banks which have adopted this rule... Seventh Street Savings Bank
Source
newspapers
2. March 6, 1933 Suspension
Cause
Government Action
Cause Details
Closed by the March 1933 federal banking holiday and refused a license to reopen.
Newspaper Excerpt
The Seventh Street Savings was placed in the hands of a conservator After the bank holiday, and later was turned over to a receiver
Source
newspapers
3. June 16, 1933 Other
Newspaper Excerpt
Directors of the Seventh Street bank, according to Treasury officials, voted yesterday to enter the merger [with Hamilton National Bank]. John D. Howard, president, is also conservator of the bank.
Source
newspapers
4. July 5, 1934 Receivership
Newspaper Excerpt
Levied by the controller of currency July 5, 1934, after the instution had been refused a license to reopen... turned over to a receiver to liquidate the assets
Source
newspapers

Newspaper Articles (15)
1. March 1, 1933 Evening Star Washington, DC
Article from Evening Star, March 1, 1933

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Article Text

LOCAL BANKS ACT TO PROTECT FUNDS District National Limits Withdrawals-Others Invoke 60Day Clause on Savings. The District National Bank opened today on a 5 per cent withdrawal basis, following action taken by the directors early this morning, for the protection of depositors. President Joshua Evans, jr., announced. (The following notice was addressed today to the depositors in the bank: "Owing to heavy withdrawals of deposits during the last few days, and in order to safeguard all of our depositors, the board of directors has passed a resolution allowing depositors to withdraw 5 per cent of their balances in this bank at the close of business February 28, 1933, until further notice. All new deposits and new accounts opened March 1, 1933, and thereafter are subject to 100 per cent withdrawal at any time after actual realization cf funds by the bank." 60-Day Clause Invoked. The officials stressed the fact that all deposits made today and after this date can be withdrawn in full at any time. It was announced in the financial district that most of the local building and loan associations have invoked their time clauses on withdrawals, limiting the amount to $100. For larger amounts notice must be given in advance. Officials said the rule would be in force for the present. Several savings banks here invoked the 60-day clause on withdrawal of savings accounts. Some of these banks permit the withdrawal of 10 per cent up to $100. Above that amount, the 60day or two-month notice, is being required. Protective Measure. Among the local banks which have adopted this rule-the same plan which has been adopted extensively in other cities-are: United States Savings Bank, Chevy Chase Savings Bank, Security Savings & Commercial Bank, Park Savings Bank, Seventh Street Savings Bank, Washington Savings Bank, Anacostia Bank, Mount Vernon Savings Bank and the Northeast Savings Bank. (In an earlier edition of The Star the name of the Washington Mechanics' Savings Bank was included with those involking the 60-day clause. This was incorrect.) Officials said the action was taken merely as a protective measure, both for the banks and for the depósitors. The Commercial National Bank. which closed yesterday, has been placed in the hands of Robert C. Baldwin, a receiver of the office of the controller of the currency. Mr. Baldwin has taken over the receivership from J. L. Bailey, who took charge when the bank was closed. It was explained that Mr. Bailey will remain for a while in his capacity as a national Bank examiner to assist Mr. Baldwin. Has Considerable Experience. In the meantime, it was said at the Treasury Department, the new receiver probably will use a large part of the staff of the bank for his work. The new receiver. before Joining the office of the Controller of th è Currency, had considerable liquidating experience. Under the auspices of the Government he has been receiver for e bank at Lynn, Mass., since the latter part of 1931, and has been directing its liquidation. An official of the Treasury said in regard to Mr. Baldwin: "By reason of his ability in liquidating that bank, the Treasury Department saw fit to transfer him to the Commercial National Bank. We have every confidence that he will administer the affairs of the institution in a manner satisfactory to all concerned."

2. June 17, 1933 The Washington Times Washington, DC
Article from The Washington Times, June 17, 1933

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Article Text

HAMIL TON BANK ABOUT TO LAND LAST MEMBER Seventh Street Savings Plans to Enter Merger; Stores Subscribe to Stock The Seventh Street Savings Bank is expected to become the eighth and last member organization of the new $1,250,000 Hamilton National Bank of Washington. Directors of the Seventh Street bank, according to Treasury officials, voted yesterday to enter the merger. No action was taken at a meeting of the stockholders today, however. John D. Howard, president, is also conservator of the bank. If the bank enters the merger, its stockholders and depositors are expected to subscribe for between $50,000 and $75,000 worth. of stock in the Hamilton. Deposits Total $1,166,000 The deposits of the Seventh Street Savings total $1,166,000, half of which would be made immediately available to its approximately 5,000 depositors as soon as the Hamilton begins functioning. The total resources of the Hamilton, with the gain in "prime" assets of the latest member, would be about $13,000,000. of which about $11,000,000 would be in the form of deposits. Representatives of three groups interested in the Park Savings Bank have not yet agreed on a plan of action there. A depositors committee, headed by J. W. Thompson, favors postponing receivership and its members believe that "considerably more than 15 cents on the dollar may be realized. "A group headed by Frank J. Sobotka, said to represent a number of depositors, is inclined to favor asking for receivership and forming a branch in the new Hamilton, or a new community bank. A committee representing directors is said to be willing to do "whatever is best for depositors." For Best Interests Believing it "to be for the best interests of the city," a number of Washington's largest department stores are subscribing for stock in the new bank. The Hecht Company has subscribed for $5,000; Lansburgh and Brother for $2,500, and Julius Garfinkle for $2,500. Other stores, including Woodward and Lothrop and Kann's, are known to have procured stock, both as investments and for the benefit of the community and about 70,000 depositors, but prefer that their subscriptions should not be made public. The bank's subscription committee, Capt. Chester Wells, chairman, declared today that subscriptions had gone oven the $1,000,000 mark and a separte group group is drafting by-laws.

3. June 17, 1934 Evening Star Washington, DC
Article from Evening Star, June 17, 1934

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Article Text

Bank of Georgetown, the Washington Savings Bank and the Seventh Street Savings Bank. Mr. McLean, who is general counsel for the receiver, Norman R. Hamilton, is former director of the War Finance Corporation, former Assistant Secretary of the Treasury and former Governor of North Carolina.

4. September 14, 1934 The Washington Times Washington, DC
Article from The Washington Times, September 14, 1934

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Article Text

Bank Stockholder Sued for $2,000 Seeking to collect a stock assessment, Norman R. Hamilton, receiver of the Seventh Street Savings Bank has filed suit for $2,000 in District Supreme Court against Ida L. Bergling, 1500 block Kearney Street Northeast. . The receiver, through Attorneys Angus W. McLean and Charles E. Wainwright, alleged that a 100 per cent assessment had been declared by the Comptroller of Currency against stockholders of the bank and that the defendant was a record holder of 100 shares of stock.

5. October 5, 1934 Evening Star Washington, DC
Article from Evening Star, October 5, 1934

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Article Text

Recent 20 Per Cent Dividend. Depositors in the Washington Savings Bank recently were awarded a dividend of 20 per cent, totaling $72,819. and this is still being paid out by Receiver Hamilton at his office in the District National Bank Building. This was in addition to the previous 50 per cent dividend of $182,049. "When the above three dividends are paid," explained Hamilton, "it will mean that depositors in the Seventh Street Savings Bank will have received $80 for every $100 they had on deposit at the time of closing: for the Northeast Savings Bank the payments will amount to $75 for every $100. and for the Washington Savings Bank the payments will total $70 for every $100 the depositors had in the closed banks at the time it closed."

6. July 3, 1935 Evening Star Washington, DC
Article from Evening Star, July 3, 1935

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Article Text

BRICE CLAGETT NEW HAMILTON COUNSEL Succeeds Late Angus W. McLean in Receivership of Five Banks Here. Brice Clagett, attorney and former newspaper man, has been appointed counsel for Norman R. Hamilton, receiver of five insolvent banks of this city, succeeding the late Angus W. McLean. it was learned today. Mr. Clagett will participate in the extensive litigation already revolving around the banks in charge of Mr. Hamilton, particularly the District National Bank. He will have associated with him Charles E. Wainwright, attorney, formerly with the Treasury Department, who was associated with Mr. McLean. The banks concerned are the District National Bank, Potomac Savings Bank. Northeast Savings Bank, Seventh Street Savings Bank and Washington Savings Bank

7. July 12, 1935 Evening Star Washington, DC
Article from Evening Star, July 12, 1935

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Article Text

Receiver's Collections Grow. Receiver Norman R. Hamilton reports that in the last three months $155,748 has been added in collections for the District National Bank. $50,000 has been added to the cash balance of the Potomac Savings Bank and $36,415 collected from amounts due the old Seventh Street Savings Bank.

8. July 14, 1936 The Washington Times Washington, DC
Article from The Washington Times, July 14, 1936

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Article Text

RECEIVERSHIPS CHANGE HANDS Norman R. Hamilton has been succeeded as receiver for the District National Bank by Justus S. Wardell. The final report issued by Hamilton yesterday estimates value of remaining assets at $2,314,598.19. More than $1,000,000 has been paid on a total RFC loan of $1,193,641.72. Further dividends to depositors are not likely until pending court actions are disposed of. Hamilton has also turned over to Wardell the receiverships of the Potomac Savings Bank, the Northeast Savings Bank, the Seventh Street Savings Bank and the Washington Savings Bank, all still in process of liquidation.

9. July 1, 1937 Evening Star Washington, DC
Article from Evening Star, July 1, 1937

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Article Text

ASKS COURT HELP BANK ASSESSMENT Seventh Street Institution Receiver Petitions Against 58. The receiver of the Seventh Street Savings Bank petitioned the District Court today to enforce assessments against 58 stockholders totaling $65,200. Levied by the controller of currency July 5, 1934, after the instution had been refused a license to reopen, assessment payment was demanded of all the stockholders. The defendants have not complied, the court was told. The Seventh Street Savings was placed in the hands of a conservator After the bank holiday, and later was turned over to a receiver to liquidate the assets and pay the depositors. Approximately 80 per cent due them already has been paid, but the amount due on stock assessments is needed to make up the remainder, Wardell declared, through Attorneys Brice Clagett and Charles E. Wainwright. Capital stock of the institution consisted of 1,000 shares of a par value of $100 per share.

10. December 1, 1937 The Washington Times Washington, DC
Article from The Washington Times, December 1, 1937

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Distribution of $70,000 to 1,890 depositors of the Washington Savings Bank is under way today at the 1406 G St. N. W., headquarters of Justis S. Wardell, receiver. The amount represents a 20 per cent dividend and brings the total dividends to 100 per cent. Depositors of the Seventh Street Savings Bank will receive $109,000, bringing the total dividends for that institution up to 90 per cent, next Monday. This bank, merged with the Hamilton National Bank. Distribu-

11. December 6, 1937 Evening Star Washington, DC
Article from Evening Star, December 6, 1937

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DEPOSITORS OF 2 BANKS PAID 10 PCT. DIVIDEND District National and Seventh Street Savings Money Is Being Distributed. Another 10 per cent dividend for depositors of both the District National Bank, and the Seventh Street Savings Bank was paid out today by Justus S. Wardell, receiver. Depositors were notified by post card to call for District National checks at 1406 G street N.W., and for Seventh Street Savings Bank checks at Seventh and N streets, the location of the Seventh Street branch of the Hamilton National Bank. To get his check, the depositor must bring both his post card official notice, from the receiver, and the receiver's certificate.

12. May 17, 1939 Evening Star Washington, DC
Article from Evening Star, May 17, 1939

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Court Authorizes Bank's Property Deal Justice Joseph W. Cox in District Court today signed a provisional order directing that Justus S. Wardell, receiver of the Seventh Street Savings Bank, be empowered to receive for the property at 1523 Fourteenth street N.W. from the District Motor Co. an offer of $11,500 cash, subject to adjustment of taxes, rent, income, insurance premiums and similar items as of the date of the sale. The jurist directed that unless contrary cause be shown before May 29 the offer of the District Motor Co. will be accepted and the sale ratified.

13. September 10, 1939 Evening Star Washington, DC
Article from Evening Star, September 10, 1939

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7th Street Savings Bank Will Pay 5 Per Cent Dividend 2,657 to Get Checks Totaling $52,600 From Closed Institution Another 5 per cent dividend to depositors in the closed Seventh Street Savings Bank has been authorized and will be paid as soon as the checks can be written and schedules arranged, it was announced last night. The dividend payments-will total $52,600, to be distributed among 2,657 claimants, according to announcement by the Controller of the Currency. The fourth in a series of dividends since the bank failed to reopen after the March, 1933, banking holiday, the new 5 per cent payment will bring to 95 per cent the percentage of authorized dividends to date. Proved claims amounted to $1,053,900. Justus S. Wardell, receiver for the closed bank, said the payments would be made from his office at 1614 K street N.W. as soon as they could be arranged. No date has been fixed for the payments to begin and it may be several weeks before they can get under way, he added. Mr. Wardell said claimants will be notified by post card when they should call for their checks.

14. October 12, 1939 Evening Star Washington, DC
Article from Evening Star, October 12, 1939

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Seventh Street Bank To Pay Dividend Late This Month Depositors Will Be Officially Notified When to Appear The previously authorized 5 per cent dividend from the closed Seventh Street Savings Bank will be distributed to 2,666 depositors sometime late this month, it was learned today from Justus S. Wardell, receiver. Checks are being prepared for payment of this dividend, but will not be ready until depositors are officially notified individually by post card. Receiver Wardell asked depositors not to call at the office until they receive such an official post card notifying them which day to call. When they do come, he emphasized it will be necessary for creditors to bring their receivers' certificates. The dividend will amount to $52,696. Further good news for depositors was divulged today in the quarterly report of the receiver on the condition of the bank receivership as of September 15. This shows that there are remaining assets of a value which, if realized upon. will bring in sufficient funds to finish paying depositors in this bank in full. Already depositors have received dividends of 90 per cent, amounting to $951,782, the report shows. The new dividend to be distributed will bring the total payments up to $1,003,478, or 95 per cent, leaving only 5 per cent remaining to pay off depositors in full. Remaining assets are listed on the report as having a book value of $345,518, including a stock assessment against stockholders of $100,000, which is in litigation. These assets are "estimated" to have a value of $131,395. If this could be realized in cash for creditors, the receiver would be able to pay at least the additional 5 per cent, and thus make restoration of 100 per cent of the deposits in the bank when it closed in March, 1933. The remaining assets include, in addition to the disputed stock assessment, one piece of real estate, owned outright; the bank building at Seventh and N streets N.W., now rented to a branch bank of the Hamilton National Bank; some firsttrust notes on real estate and other securities.

15. April 17, 1942 Evening Star Washington, DC
Article from Evening Star, April 17, 1942

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Hundreds Fail to Get 7th St. Savings Dividends Warning that the receivership of the Seventh Street Savings Bank would be closed in about three weeks, Justice S. Wardell, receiver, today. said hundreds of depositors have failed to call for their final dividend checks. Depositors can get their checks at the office of the receiver. 1429 I street N.W., within the next two or three weeks. Afater that all accounts will be turned over to the Office of the Controller of the Currency. Mr. Wardell is also working on the affairs of the District National Bank, the receivership of which is to be closed this year. No information is available as to when the final dividend will be paid, but it is hoped that total dividends will reach 100 per cent.