Depositors State Bank (Chicago, IL)

Episode Information

Episode UID
2024471585
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
202447 routing
Routing Number
2-0244
Start Date
January 18, 1932
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
ea7cd75d1cde770f

Response Measures

None

Description

The bank closed voluntarily due to steady withdrawals caused by local economic distress (unemployment) rather than a sudden panic or run.

Events (2)
1. January 18, 1932 Suspension
Cause
Local Shock
Cause Details
Hard times, unemployment, and poverty in the district compelled people to withdraw funds over several months, reducing deposits from $6.4 million to $2.5 million.
Newspaper Excerpt
The Depositors' State Bank was closed today. It had $2,500,000 on deposit
Source
newspapers
2. January 29, 1932 Other
Newspaper Excerpt
a committee been organized protect their This was announced by George Hopkins... members of the committee who have been Include John Jurik, former vice the board of directors of the Depositors' State bank; James A. Calek, vice president of the same institution. and Percival G. Hart, realtor. The auditor of public accounts will be in yited name fifth member. While the great majority of the bonds and mortgages issued by the two banks are in good standing. said Mr. Hopkins, encouraging have the work of reorganizing the debonds and mortgages so quick under way Will Require Patience. The Depositors State bn: closed hi order to protect depositors' interesta upon of the officers and directors of that stitution
Source
newspapers

Newspaper Articles (5)
1. January 18, 1932 St. Louis Post-Dispatch St. Louis, MO

Article Text

TELLS OF MELLON LOAN TO UNION GULF FIRM Spokesman for Cabinet Officer Assures House Investigators Deal Was Legal. By the Associated Press. WASHINGTON, Jan. 18.—A loan by Secretary of the Treasury Mellon of his personal securities to the Union Gulf Corporation was described to the House Judiciary Committee today by Mellon's representative, Alexander W. Gregg. Gregg said it was all entirely legal. Representative Patman (Dem.), Texas, who seeks Mellon's impeachment on charges he has engaged in business in violation of law, had presented the stock transaction as evidence to support his contentions. Gregg said Mellon had supplied part of the securities lent to the Union Gulf Corporation to be used as collateral for a bond issue. "It was a straight loan for a consideration and did not constitute engaging in business," Gregg said. Chairman Sumners questioned Gregg, who opened his argument Friday, on the application of the law to stock ownership. "I think it would depend on how active the stockholder was," Gregg replied. "If he continued to run a company he would be barred whether he owned 99 or one per cent of the stock. Mr. Mellon has not taken any active part. He does not own control in any corporation. "Mr. Mellon has never attended even a stockholders' meeting of any corporation since he has been Secretary of the Treasury. He has given his proxy." "No Strings On It." Sumners asked Gregg whether the bank stock Mellon had disposed of when taking office was now held by individual in one block. "I can't answer that," Gregg said. "I don't know; but there are no strings on it." Gregg said he would supply the ownership of this bank stock. He said the disposition of Mellon's bank stock had probably been through a private sale and not on the public exchange market. TWO BANKS CLOSE AT CHAMPAIGN, ILL. First National With $5,116,951 Deposits Seeks to Reorganize. By the Associated Press. CHAMPAIGN, Ill., Jan. 18.—The First National Bank of Champaign, which listed deposits in the recent bank call at $5,116,951, was voluntarily closed today by its directors. Officers of the First National said they hope to effect a reorganization soon. N. M. Harris is president and H. S. Capron, treasurer of the University of Illinois, a vice president. The First National is the largest bank in Champaign. With deposits of approximately $500,000, the Commercial Bank also failed to open its doors this morning. The bank was a depository for funds of the City of Champaign. A sign on the door read: "This bank is suspended by reason of the closing of the First National Bank of Champaign, one of its depositories. Chicago Neighborhood Bank Closes; $2,500,000 Deposits. CHICAGO, Jan. 18.—The Depositors' State Bank was closed today. It had $2,500,000 on deposit and capital and surplus of $400,000 and $250,000. Durham (N. C.) National Bank With $3,500,000 Suspends. DURHAM, N. C., Jan. 18.—Officers of the First National Bank of Durham announced early today that the bank would not open today. "On account of increasingly heavy withdrawals of funds and the loss of confidence," a statement said, "the directors of this bank have voluntarily decided to close the bank in order to fully protect and safeguard the rights and interests of creditors and depositors." The bank had a capital and surplus of $1,000,000. Officers said that at the close of business Saturday the total deposits were $3,500,000. W. J. Holloway is president.

2. January 18, 1932 St. Louis Post-Dispatch St. Louis, MO

Article Text

$2,500,000 Deposits. CHICAGO, Jan. 18.—The Depositors' State Bank was closed today. It had $2,500,000 on deposit and capital and surplus of $400,000 and $250,000.

3. January 19, 1932 Herald and Review Decatur, IL

Article Text

DIRECTORS CLOSE CHAMPAIGN BANK Champaign AP The First National Bank of Champaign, which listed deposits in the recent bank call at $5,116,951. was voluntarily closed today by its directors. A smaller state bank. the Commercial, took similar action. Officers the First National said they hope to effect reorganization soon. N. M. Harris is president and H. S. treasurer of the University of Illinois, a vice president. Chicago-AP The Depositors' State Bank was closed today. It had $2,500,000 on deposit and capital and surplus of $400,000 and $250,000.

4. January 25, 1932 Kentucky Advocate Danville, KY

Article Text

HIS DEFEAT "SOMETHING MORE CREDTHAN VICTORIES" The following very interesting story, which tells of the glorious defeat former "Praying Colonel,' who seems to have come out of defeat victor, was given the Advocate by former Captain of the "Praying Colonels," Mr. Norris Armstrong, who played side by side Mathias, the subject of this sketch. Simultaneous with the above came along the story in latter from Edward Adams, of Chicago, who writes follows: Gentlemen: enclosing to you clipping from the Chicago Daily News of January 20th. Mr. Mathias has numerous friends in your city, and feel that in view of this fact the credit given him by the Daily News should be placed before the public in city where he your has connections. Appreciating in advance your help in this matter, Very EDWARD ADAMS. The Advocate appreciates the courtesy of both gentlemen. The story, related above is from the Chicago Daily News: square man, clean-cut, honest and conservative, went down in defeat in Chicago this week, amid the wreckof decade hard work. The age man is Mathias, president of the Depositors' State Bank, which closed Monday under conditions that, instead of discredit, reflect tual credit upon its officers and rectors. There was no run on the bank nor had its funds been misused in any way. There had been no speculation, and even the loans against real bete noire of many smaller banks, had been kept to msvryap small proportion of its total very sources. The institution administered in accordance with approved conservative practice. Hard times, unemployment, the genuine poverty that comes "back of the yards" when jobs. vanish, compelled the people of his district to withdraw funds which bank must depend. From deposits of $6,465,000 last March, Mr. Mathias paid out in cash, the deposits were withdrawn, near$4,000,000. Even after that was paid there still were sound assets more than sufficent to cover the remainder, but the latter could not be convertdirectly into cash the only fair step was to closs the bank and frain from accepting new money. At the time the institution closed posits had been paid down to approximately $2,500,000. In college days Mr. Mathias fullback on the famous Centre college football team, the Kentucky "praying colonels" that later humbled Harvard. During the world war he naval aviator. to Chicago in married here and worked his in the way up Depositors' State head of the new business department, assistant cashier, vice-president and finally president. Undaunted by the depression, he came to the rescue of the depositors of the Southwest State Bank, 5100 Ashland avenue, merging the latter when the banking situation grew tense last April. At that time his own deposits were more than ample and with those of the Southwest State amounted to nearly $8,000,000. The bank had been built up largely savings, however-it had $4,000,000 savings one when hard times came these were reduced. banker who has of his deposits in cash before closing and can show assets mainder seems entitled, in these hard times, to count his defeat, blow is, nevertheless something more creditable than many

5. January 29, 1932 Chicago Tribune Chicago, IL

Article Text

NAME COMMITTEE FOR $13,000,000 IN REALTY BONDS George D. Hopkins Will Be Chairman. shortly BY AL CHASE Investors more than $13,000,000 bonds and mortgages estate issued by the positors' State and the State bank. was merged with the former last April at 47th street and South Ashland to be that a committee been organized protect their This was announced by George Hopkins, and assist D. ant [Root will who of the new The other members of the committee who have been Include John Jurik, former vice the board of directors of the Depositors' State bank; James A. Calek, vice president of the same institution. and Percival G. Hart, realtor. The auditor of public accounts will be in yited name fifth member. While the great majority of the bonds and mortgages issued by the two banks are in good standing. said Mr. Hopkins, encouraging have the work of reorganizing the debonds and mortgages so quick under way Will Require Patience. The Depositors State bn: closed hi order to protect depositors' interesta upon of the officers and directors of that stitution The mortgages and bonds sold by this bank constitute large sum. and this committee, as soon as possible will advise the holders of such securities as to their status. The Southwest State bank was taken over by the Deposifors' State bank last April. patience on the part of the bond and mortgage as some time will be required for the committee to familiarize itself with the various Issues and make its reccommendations. The committee has been pledged the assistance of the olders and directors of the bank and will selicit the ition of the auditor of public accounts.' The office of the new protective committee has been established at 6015 South Ashland avenue. Mr. Jurik has been secretary of the committee. The Trust and Savings bank has been named depositary. Tower Castles Issue. Walter C. Palmer, secretary of the bondholders protective han dling the Lackner, Butz & Co. $325,000 first mortgage bond Issue on the Tower Castles at the thwest corner of Sherman avenue and Noyes street, Evanston, last night made public further information on that project. Ho stated that the gross income from date of receiver's appointment on Feb 26 1930, to Dec. 31, was $85 485. The total were $83. These included $19,206 operating expenses, $4,000 fees for receiver, $8,700 for fees of solicitors for for liens, 550 payment to trustee, to be applied on indebtedness as fixed by decree of foreclosure, and $5,497 general taxes for 1929 The cash balance on hand on Dec. 31, was The on Dec. was per cent, Mr. Palmer The original Issue has not been reduced. The North Town bank from to April 13, the Chicago Title and Trust company acted in that capacity. Not on the Committee. In reporting the meeting of the bondholders of the Monroe and Wells building in yesterday's TRIBUNE It was stated that one of the eight appointed on protective committee was a representative of the Greenebaum status that this is not correct. was called by the owners of the property. he said. appointed is sponby them and we desire no representation on as we feel the terests of the will best looked after by our regular commit-