Public signal of financial health, Full suspension
Other: Local clearing house pledged support and armored cars brought cash from Miami.
Description
A heavy withdrawal on June 28, 1926 (a run) precipitated by the Commercial Bank & Trust Company's failure to open led the Palm Beach Bank & Trust Company to close (suspend). The bank was initially said to be closed pending reorganization (30-60 days), but a receiver was appointed in August 1926 and the institution remained in receivership and liquidated thereafter. Cause of the initial run is failure/closure of another local bank (local_banks).
Events (3)
1.June 28, 1926Run
Cause
Local Banks
Cause Details
Heavy withdrawals triggered by the Commercial Bank and Trust Company's failure to open for business on the morning of June 28, 1926.
Measures
Bank closed its doors (suspended payments) shortly before noon; local clearing house and civic leaders brought large cash consignments from Miami (armored cars) and pledged support; initial statements indicated intent to reorganize and reopen within 30-60 days.
Newspaper Excerpt
The Palm Beach Bank and Trust company closed shortly before noon today following heavy run precipitated by the failure of the Commercial Bank and Trust company to open its doors this morning.
Source
newspapers
2.June 28, 1926Suspension
Cause
Local Banks
Cause Details
Suspension (closing) was a direct consequence of the run caused by another local bank's failure to open.
Newspaper Excerpt
Palm Beach Bank and Trust Company closed its doors shortly before noon today following heavy withdrawal of funds precipitated by the failure of the Commercial Bank and Trust Company to open for business this morning. ... would be closed until reorganization plans now under way are completed ... will require thirty to sixty days time.
Source
newspapers
3.August 27, 1926Receivership
Newspaper Excerpt
WEST PALM BEACH BANK APPOINTED RECEIVERS ... Central Farmers Trust Company has appointed for the Palm Beach Bank and Trust West Palm Beach, Comptroller Amos This is the sixth bank to have receiver appointed this week ... (article dated Aug. 27).
Source
newspapers
Newspaper Articles (22)
1.June 28, 1926Hattiesburg AmericanHattiesburg, MS
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BANK CLOSES, WEST PALM BEACH
(By Associated Press) WEST PALM BEACH, Fla., June 28-The Palm Beach Bank and Trust company closed shortly before noon today following heavy run precipitated by the failure of the Commercial Bank and Trust company open its doors this morning.
2.June 28, 1926The Herald-PalladiumBenton Harbor, MI
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RUN CAUSES FLORIDA BANK CLOSE DOORS TO
(By Associated Press) WEST PALM BEACH, Fla., June Beach bank and Palm closed its doors Trust company shortly before noon today following withdrawal of funds preheavy by the failure of the Com cipitated mercial Bank and Trust company open for business this morning.
ASKS DECREE
Mrs. Josephine Burnett, Ben ton Harbor, today sued Arthur B.ir. nett for divorce in the circuit court charging cruelty and non-support. They married in October, 1924 and have one child. Mrs. Burnett by Attorney John represented Sterling. dance June Eagles Gents 75c, ladies Adv. 29. 6-28t1.
Under New Management. Savoy Restaurant. Cor. 6th and Terr., Wall paper, paint. Try 35c merly Red Cross Drug Co. Adv. Adv. and 45c meals.
3.June 28, 1926The Shreveport JournalShreveport, LA
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Run Closes Bank At Palm Beach
WEST PALM BEACH. June (By Associated The Palm Beach Bank and Trust company closed shortly before noon today. following heavy withdrawal of funds, precipitated the failure the Commercial Bank and Trust to company open this
4.June 28, 1926The Sedalia DemocratSedalia, MO
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ON BANK CAUSES DOORS TO CLOSE
"Borrowed Religion" from the Associated WEST PALM BEACH, June quotation of the Ten Virgins. Palm Beach Bank and closed its doors say that when the car Trust Company shortly before following around and tipped heavy withdrawal of funds crawled cipitated by the failure of the mercial Bank and Trust Company around for business this morning. that
5.June 28, 1926The Index-JournalGreenwood, SC
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Florida Banks Close After a Heavy Run West Palm Beach, Fla., June Palm Beach Bank and Trust Company closed its doors short before noon today following heavy withdrawal of funds precipitated by the failure of the Commerc/al Bank and Trust Company open for business this morning. Both banks, was announced. would be closed until reorganization plans now under way are completed. According officers of the two banks they will as soon as all depositors have been seen. This. they believe. will require thirty to sixty days time.
6.June 28, 1926The Key West CitizenKey West, FL
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PALM BEACH BANK CLOSES DOORS TODAY
ST. PETERSBURG INSTITU-
TIONS IS FORCED OUT OF
BUSINESS BY HEAVY RUN
MADE
(By Associated Press) WEST PALM BEACH, June 28. The Palm Beach Bank and Trust Company closed its doors shortly before noon today following heavy withdrawal of funds precipitated by the failure of the Commercial Bank Trust Company to open for business this morning.
PEOPLE'S BANK CLOSED DOWN
ST. PETERSBURG, June Heads of the other banks in St. Petersburg today were trying to work out plan by which the People's Bank, which closed its doors Saturday following a run, can resume business. If it found that the bank cannot open, plan is being discussed to have one of the older banks take it over end work out the affairs. The People's Bank did not open today and is now in the hands of the state bank examiner, pending some decision of the other bankers at meeting this afternoon.
7.June 29, 1926Birmingham Post-HeraldBirmingham, AL
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FLORIDA BANKS ARE SUSPENDED FOLLOWING RUN
CRAZED NEGRO SHOOTS DOWN NINE PERSONS
Two Palm Beach InstituThree Believed Fatally tions Will Be ReorWounded In Baltiganized more Affray
(By Associated Press) WEST PALM BEACH. June 28. heavy withdra of caused failure of the Commercial Bank and Trust open closing the Palm Beach and Trust company here shortly before noon. Despite the run the Palm Beach banks in city reported for touch their cash. The banks will be closed until plans was announced. would officers asserting they be as all depositors Offers Miami, Jackson other bank institutions of Miami, but none reported necessary The Commercial Trust company was the Beach Bank and Trust com pany Bank and Trust company yesterday to suspend operations plans bigger stronger institution statement issued M. president, declared solvent the are greater than liaassures protection for all depositors.
ST. Associated Peoples' bank today the hands state closing its doors Saturday run.
(By Associated Press) 28.-Suddenly crazed with rifle two revolvers in hands, Vance 35-year-old negro, shot persons northwest minutes tobefore with 12 police in his body. policemen Three his victims, two of and the other old negro near Of the seriously hurt, three got in his The injured Patrolman Webster Schuman, may He credited with firing the that first stopped the man. Police Thomas Dillon, shot in may shot in Mildred Duncan, negro, Patrolman John Collins. shot in head Police ankle. Leroy Lentz, shot in Patrolman John R. Colline, shot in Dr. William Kamurer, shot in leg. Calvin Arthur neck. negro, leg. Having the entire in the vicinity of Argyle Lafayette avenes to and with his nine victims ranged about him in the street or Lee bay against window, concerted with bullet in shoulder. fire from the on ground and from wounded the guns Ludwig and Bates, the only policemen of the had calls their dropped the dead. special riot which few Lee gathered up the wounded. proached him during the utes, before He three of victims police car which cruising after The shooting originated in quarrel involving wounded Wells, one the negroes. Lee Wells with revolver and then, rifle and another volver, terrorize neighborhood. had been the insane ward at City hospital year ago.
8.June 29, 1926The State JournalFrankfort, KY
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HEAVY RUN CAUSES FAILURE WEST PALM BEACH. Fla., June 28 (By A. P.)-A heavy withdrawal of funds caused by failure of the Commercial Bank and Trust Company to open for business today was declared responsible for the closing of the Palm Beach Bank and Trust Com pany here shortly before noon.
9.June 29, 1926The Morning UnionSpringfield, MA
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Heavy Run Closes Palm Beach Bank
Failure of One Responsible for Withdrawal of Funds from Second.
WEST PALM BEACH. Fla., June 28-(AP) heavy withdrawal funds caused by failure the Commercial Bank and Trust Company open for business today declared responsible for the closing the Palm Beach Trust Company here shortly before noon. Despite the run the Palm Beach Trust city light that unnecessary for them touch cash. will be closed until officers that they would opened as depositors have been visited.
10.June 29, 1926The Philadelphia InquirerPhiladelphia, PA
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DEPOSITORS STORM CLOSED of City's Largest Institutions Suspend; State Takes Charge
Heavy Cash Reserves Save Two Others Experiencing Similar Demands
Special Inquirer WEST PALM June of the largest banking institutions West Palm the Commercial Bank Trust and the Palm Beach Bank and Trust Combusiness today. The the Commer cial Bank that would not for open business today. to allow for reorganization of its resulted the other banks. The Palm Beach Bank and Trust Company, unable meet the heavy demands its deposi forced close its doors State Bank Examiner attached Ernest arrived the scene and posting notice the that the the State Hundreds depositors the morning the closed. demanding their money. made that the bank had suspended. positors compelled leave building. They gathered outside, ing for hours, hopes that had been would have opportunity to withdraw their money. Reserves Save Other Banks Other banks simi lar the Palm Beach Bank and Trust but heavy cash reserves piled behind the tellers' appeared reassure depositors ficials the First American Bank Trust Company and the Citizens' Bank West Palm Beach announced that they prepared meet all mands. stated that but slight dents their reserve had been made today's withdrawals. and that sufficient cash was hand pay positors dollar for dollar without vice president the Palm Beach Bank and Company. stated that the bank will reorganize reopen for business within thirty sixty "Heavy from the time the bank opened its doors they closed noon the taken only thing could sixty days, Bank Company closed plans
11.June 29, 1926The Washington TimesWashington, DC
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CASH RUSHED TO FLORIDA BANKS By International News Service WEST PALM BEACH, Fla., June 29.-The movement of $10,000,000 in cash in armored motor cars from Miami to West Palm Beach during the night became known today when all banks in the city, with the exception of Palm Beach Bank and Trust Company and the Commercial Bank and Trust- Company opened their doors in the faces of crowds through which excitement ran high. With the emergency supply of cash available, bank officials were confident the near-panic among depositors would rapidly subside. The Palm Beach Bank and Trust Company, it was announced today, probably will reopen within 60 days.
12.June 29, 1926The Key West CitizenKey West, FL
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RESERVE FUNDS TRANSFERRED TO SEVERAL BANKS HEAVY CONSIGNMENTS SHIPPED OUT OF MIAMI IN ARMORED CAR TO WEST PALM BEACH GUARDED (By Associated Press) WEST PALM BEACH, June 29.-With the suspension of two banks here Monday, was eliminated a problem with which the financial structure of the community has been burdened for the past two weeks and this morning found the six remaining banks of the city in good condition and general confidence restored. Small deposit withdrawals were numerous enough to be noticed during the morning but heavy deposits of cash called in from all quarters by business and civie leaders is said to have more than counterbalanced the total. To quiet any spirit of doubt which might have remained after run which caused the Palm Beach Bank and Trust Company to suspend Monday, employers announced that money of their employes on deposit in local banks would be guaranteed by them. The s'tuation was reviewed before and by a called session of Merchants' Association and the membership to a man pledged moral and financial support to the banks. Members of the Palm Beach Clearing House Association' after a check of Monday's business reported that all banks were sound and in shape to weather any further emergency. The association voted to pledge the entire resources of their combined strength to any one bank which might need assistance. Cash reserves were strengthened during the night by a heavy consignment which was brought from Miami in a closely guarded armored car. Panks continued to meet all 1
13.June 29, 1926The World-NewsRoanoke, VA
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PETERSBURG, BANK IN HANDS BANK EXAMINER
Heavy Deposits in Banks at West Palm Beach Stops Run on Banks There.
St. Petersburg. People's today in the hands State lowing after Its doors Saturday folPlans were discussed for Ing the bank, or, should be found that the bank could not be another bank of the city to take over the business.
West Palm Beach, Fla., June suspension of two banks the six remaintoday reported good condition and general confidence Small deposit drawals were noticed during the but deposits of cash called quarters by business and leadhave more than counterbalanced the total. spirit of doubt which remained the run which caused the Palm Beach Trust Company suspend allayed when their deposit local banks would guaranteed by them. The situation reviewed called session the Assoclation and the pledged moral and financial supto the banks. Members of the Palm Beach ClearHouse after check Monday's business reported that all banks in shape weather The pledge entire strength bank which might assistance. Cash reserves during the night by consignment which from Miami in closely guarded Banks continued to meet mands today agreed that absolute confidence would return by closing time.
14.June 30, 1926The Tampa TribuneTampa, FL
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CONFIDENCE RESTORED IN BANKING SITUATION AT WEST PALM BEACH
SIX BANKS WITHSTAND CRISIS AFTER TWO OTHERS CLOSE
Deposits Poured In to Offset Withdrawals as Police Keep Crowds Moving
WEST PALM BEACH, June Palm Beach passed through the stiffest financial crisis In its yesterday and this morn ing, and this afternoon was regarding its with pride. The failure of the Bank and Trust to open for business yesterday caused flurry in financial circles and resulted in "run" on the Palm Beach Bank and Trust which could not withstand. In conserve resources which it might effect closed its doors shortly before noon yesterday.
Withdrawals Extended Throughout the afternoon undercurrent of unrest was apparent on the streets, but there was little indication that the would be exother banks until this morning when began crodw the lobby of the First American Bank Trust an institution 35 years' standing in the community. Efforts of civic leaders to carry their of confidence the masses of small depositors was unavailing For than two hours tellers were kept busy passing out small deposits and heavy deposits of currency which merchants and business men called in from all sections of the state. Impromptu speakers in the bank urged lines to follow the lead of the larger and while officers of the bank kept the way clear to the tellers that depositors who 80 desired might obtain their money. Saving depositors and patrons alike paid as rapidly as the could be the until every demand been met. Members the department kept the crowds the streets moving.
Millions in Reserve Shortly the atmosphere had changed. There no trace of excitement. The long lines had disappeared and the tension had been broken. of dollars which had been in reserve was augmented by heavy dispatched from Miami in heavily guarded armored At meeting of the local clearing house association this afternoon it was the six banks which remained open are solvent and in healthy financial condition.
15.June 30, 1926The Commercial AppealMemphis, TN
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PALM BEACH BANKS AGAIN PASS CRISIS
Heavy Cash Consignments Reassure Depositors.
WEST PALM BEACH. Fla. June city of West Palm Beach passed the worst financial erisis in its history yesterday today, but officials tonight declared regard the banking situation with "pride. fallure the Bank financial circles resulted Palm Bank & Trust could not withstand to conserve effect the closed its yester- indication the be banks this began to crowd of First institution 35 standing the of civie leaders to depositors unmore two hours currency. which and busicalled in Impromptu speakers in bank the the officers the bank kept might their who desired Savings account rapidly could counters until demand had been Police kept the the the no excitement The long had appeared and the tension had been of dollars which had been augmented terday heavy dispatched from Minmi heavily guarded armored
16.July 1, 1926The Daily WorkerNew York, Chicago, NY
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Florida Collapse Is Hitting Banks; Run for Palm Beach Cash WEST PALM BEACH, Fla., June 29 -The movement of $10,000,000 in cash in armored motor cars froni Miami to West Palm Beach during the night became known this morning when all banks in the city, with the exception of Palm Beach Bank and Trust Company and the Commercial Bank and Trust company opened their doors in the face of crowds thru which excitement ran high. With the emergency supply of cash available, bank officials were confident the near-panic among depositors would rapidly subside. The Palm eBach Bank and Trust company, it was announced today, probably will reopen within 60 days.
WEST PALM BEACH BANK APPOINTED RECEIVERS
Aug. Central Farmers Trust Company has appointed for the Palm Beach Bank and Trust West Palm Beach, Comptroller Amos This is the sixth bank to have receiver appointed this week and the ninth the suspended banks reopen. Three have opened outright, four new banks have been ganized to take over suspended banks and liquidate deposits, and two have had regular receivers appointed.
18.September 3, 1926The Palm Beach PostWest Palm Beach, FL
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AMOS APPOINTS LOCAL ATTORNEY BANK RECEIVER
Continued One pointment follows: Tallahassee, Fla., Sept. Palm Beach Answering telegram tendered receivership Palm Beach Bank and Trust to O. Myers West Palm in lieu of Central Farmers Trust company reThanks Ernest Amos, Comptroller
ORIGINAL APPOINTEES CO-OPERATION When of the Orel ceiver of the Palm Beach Bank and Trust of the Central Farmers' ated a statement they made to Hon Ernest Amos. state comptroller at the time they withdrew from the ceivership to the effect that was their desire to the full. est with the in the speedy liquidation of the affairs of this bank
19.February 7, 1928The Palm Beach PostWest Palm Beach, FL
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INQUIRY STARTED INTO AFFAIRS OF CLOSED BANK HERE
Receiver's Books to Be Inspected by State Bank Examiner
A. W. Saarinen, state bank examof 2315 South ave. has been ordered by Ernest nue, Amos, comptrollèr. inspect the books of the closed Palm Beach Bank and Trust company with the to furnishing the city of West Palm Beach with report of during the receivership of the instiThe comptroller yesterday informed the of fact that he had instructed Mr. Saarinen to undertake this following request from the city under of February for full information the bank's status. The bank has been ordered to inspect the and to report what has been made on the collection of assets, as what cash on hand, together with summary of the status of preferred claims and any other of He also asked to be ascertain divi. dend may be expected and how much of dividend will be declared. According to the comptroller at the the receiver has lowing the anhouncement that the city was seeking mation from the comptroller, O. Myers, that he able to not 10 percent. in June He stated that the bank's books open at all times to inspection by the city The city was one of the largest depositors in the Mr. was in Miami yesterday. was that he would not return before Wednesday.
Bank Receiver Issues Statement
WEST PALM BEACH, Sept. 7.A statement of the status of affairs for the closed Palm Beach Bank & Trust Company, made by 0. J. Myers, receiver, to the city commission, showed to date approximately $200,000 recovered in cash and a similar amount in real estate. Twenty-two suits for preferred claims totaling $326,316.78 are now pending against the bank, it was reported, and others are likely to be filed, the receiver said. Collections are difficult due to conditions in the real estate market, the receiver declared. At the same time he expressed the belief that conditions are improving The receiver explained that other closed banks, which had paid dividends had more assets on hand when closed than the Palm Beach Bank
21.April 27, 1929The Palm Beach PostWest Palm Beach, FL
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WHAT NOW? Today the the Palm Beach Bank Trust Company, the hands of Receiver Orel Myers, appointed supervised by Comptroller Ernest Amos, consist of approximately $400,000 in more less liquid form approximately $3,000,000 in paper Just how much that paper no not even the can say. He admit, that poor" collateral. The "good" paper held by the bank was New York banks when Receiver Myers took over the administration affairs for the and Myers sent more than $600,000 to York to redeem He got good share the money redeem that paper right out West Palm Beach merchants, busiand professional men who owed the bank. He says he paid about half he thought worth, but now seems the paper on hand isn't worth much. Of the $400,000 liquid assets there is $179,000 deposit with the treasurer the credit of the receiver. But that is subject to preferred claim suits which are settled against the receiver. The remainder of the $400,000 the receiver sunk real estate purchasing first mortgages. Just how much that is worth questionable. local debtors of the bank have been for all they could pay. Local depositors of the bank got nothing. Would not been better for the community the comptroller had simply locked the doors of the bank for year and declared sort of moratorium its affairs? That or good share of it would West Palm Beach the $113,000 which the has would still on the credit side for the instead being lost forever. The main fault administration of the affairs of the Palm Beach Bank & Trust Company can be right the feet comptroller, for appointed the receiver and he supervised his receiver's
The bill in the legislature place appointment of bank receivers in the hands of the circuit judges of the state excellent one and should have the support deserves. every one the thousands who had money deposit in the Palm Beach Bank Trust Company will proper support this he may well assured that bank failures the future will mean much trouble for depositors than under the present system Depositors received nothing from this bank, one of the first to others paid something their depositors. Nothing could be worse than that. It appears any change in the system must for the better.
22.October 8, 1929The Palm Beach PostWest Palm Beach, FL
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CITY-BANK PROPOSAL PLACED BEFORE COURT
Settlement Plan Submitted to Chillingworth; Decision Expected Soon
Proposed settlement between the city of West Palm Beach and the defunct Palm Beach Bank and Trust Company was submitted Monday to Judge C. E. Chillingworth in circuit court. Decision is expected within the next day or two. According to the petition filed Monday by P. Cochrane, liquidator for the banking institution, the city would relinquish all claim to its approximate $614,000 in deposits in the bank, in exchange for right to retain $82,000 in collateral already realized on, and for the property now occupled by the Young Women's Christian Association, title to which is held by the bank. In the event the settlement is approved by the court, the liquidator agrees to withdraw the suit now pending by which the defunct institution is attempting to regain the collateral. The Y. W. C. A. property is 08timated to be worth approximately $14,000 and with the $82,000 would give the city about 15 per cent on its deposits. City Attorney J. Mark Wilcox has advocated the exchange. The W. A. property is located on the southwest corner of Okeechobee Road and Olive avenue.