First National Bank (Urbana, IL)

View Charter #2915 on SPMC View balance sheet

Episode Information

Episode UID
291501585
Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
29150 national
Charter Number
2915
Start Date
January 18, 1932
Location
Urbana, Illinois (40.111, -88.207)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
7e592e313337a691

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Fed/other loan, Public signal of financial health, Full suspension

Receivership Details

Depositor recovery rate
65.0%
Date receivership started
1934-03-13
Date receivership terminated
1939-06-30
Share of assets assessed as good
44.2%
Share of assets assessed as doubtful
40.8%
Share of assets assessed as worthless
15.0%

Description

A 1932 rumor-driven run led to a short mayoral closing/reopening; the bank later was closed under the 1933 moratorium and placed in receivership in 1934.

Events (7)
1. April 6, 1883 Chartered
Source
historical_nic
2. January 18, 1932 Run
Cause
Rumor Or Misinformation
Cause Details
Runs prompted by baseless rumors and hysteria after nearby bank closings.
Measures
Mayor ordered five-day emergency holiday; $200,000 truck and $1,000,000 brought from Chicago to replenish cash; solicitors obtained depositor pledges.
Newspaper Excerpt
A crowd of 5,000 gathered in front of the First National Bank of Urbana when the run on that bank started.
Source
newspapers
3. January 18, 1932 Suspension
Cause
Government Action
Cause Details
Mayor's emergency proclamation closing businesses and allowing banks to remain closed to halt runs.
Newspaper Excerpt
The mayor's proclamation for a five-day holiday gave both banks a legal reason for remaining closed. Thus, the run was halted.
Source
newspapers
4. January 20, 1932 Reopening
Newspaper Excerpt
When the banks reopened Thursday morning, depositors began flocking back with their money. That day, deposits received at the First National Bank amounted to 31 times the amount of withdrawals, and in the Busey Bank the deposits were 25 times greater than withdrawals.
Source
newspapers
5. March 1, 1933* Suspension
Cause
Government Action
Cause Details
Closed under the federal banking moratorium/holiday declared in March 1933.
Newspaper Excerpt
the bank was closed by presidential moratorium
Source
newspapers
6. March 13, 1934 Receivership
Source
historical_nic
7. March 13, 1934 Receivership
Newspaper Excerpt
L. G. Coonred... received notification by... comptroller of the currency, of his appointment as receiver of the First National Bank of Urbana.
Source
newspapers

Newspaper Articles (21)
1. January 19, 1932 The Sheboygan Press Sheboygan, WI

Article Text

Must Have Confidence Harmon's proclamation read, in part: "The economic stability of the country and of every community in the country is directly proportional to the confidence which the people have in the government and the financial institutions in their respective communities. "Therefore it is imperative on every one of us to continue that confidence and not become alarmed by the present temporary economic crisis." The First National Bank, only one remaining in Urbana closed in conformance with the mayor's wish. The Champaign National and the Trevitt-Mattis State bank in Champaign remained open, however. Thousands of residents of the "twin cities," put their money back into banks today after withdrawing it yesterday. City officials, confronted with breakdown of the financial structure of their municipalities, met in the gray stone court house in the center of Urbana last night. All night long they argued, suggested, disputed, exhorted. "We cannot let this crisis force us into ruin," they said. "We have got to do something to restore public confidence." Mayor Harmon's "emergency holiday" was the answer. He said it was prompted by a desire to "allay hysteria" and to "cool down" the people after a series of "baseless rumors."

2. January 19, 1932 The Sheboygan Press Sheboygan, WI

Article Text

University officials assured city officers of both cities that the bank closings would not materially affect the university. No possibility of closing the school was mentioned. Yesterday's turmoil was a matter for the townsfolk rather than the students. A crowd of 5,000 gathered in front of the First National Bank of Urbana when the run on that bank started. They dispersed when a truck carrying $200,000 in cash backed up in front of the bank. The $1,000,000 from Chicago was brought in by airplane, truck and bus. It was distributed to the three banks remaining open after the First National and the Commercial State Bank of Champaign and Busey's State Bank in Urbana had closed; more than $6,000,000 deposits are tied up in the closed banks. Dr. Harry Woodburn Chase, president of the university, announced that university salaries would not be affected by the situation. Most of the depositors in the banks remaining open have pledged not to withdraw their money. Police of the twin cities have orders to break up any gathering in front of a bank.

3. January 20, 1932 Sapulpa Herald Sapulpa, OK

Article Text

BANK CLOSINGS THROW ILLINOIS TOWNS IN PANIC BUSINESSES ORDERED CLOSED TEMPORARILY AS REMEDY MEASURES PEND (Copyright, 1932 by United Press) URBANA Ill., Jan 20. (LP)-Our seems to be sufficient Merchants and community was caught unexpectedly in the worst calamity ever felt here Einister influences and malicious rumcrs had undermined the firm foundstions of some Champaign and Urbana banks. be revoked When the First National Bank Champaign and the Commercial State Bank Champaign failed to open for business, not because of in- banks closed there solvency but of lack of cash caused by quiet runs extended over weeks, part of the local citizenty mom- pended. entarily became alarmed. Runs were started on the remaining twin city continue would have brought greater grief and a greater catastrophe to our community Faith in our fellow men and in the future must not be shaken Although realizing that to close all business firms here would cost the 10,000 resident students community more than $75,000 daily believed that in the final reckoning two banks would continue to serve Urbana, and faith and confidence would be preserved by closing all business houses Not until after considering the good of all citizens did I decide to invoke WALL PAPER the police powers of the mayor to close business firms including the SPECIAL banks Only these firms which disMany beautiful patterns to pense food supplies, drugs, transportaselect from tion buinesses, public utility agencies Some as low as and newspapers are now functioning per For the rest of this week business in 5c roll Urbana will be at a standstill while our leading citizens are restoring confidence Cowman's I have firm belief and faith in Urbana citizens. 25 they had in me Phone for two terms. and evidences already Across from Court House show that the hysteria which gripped some has subsided and turned into confidence Already more than 1,500 persons have pledged their entire deposits to the Busey State Bank and the First National Bank Urbana, until some later date when normal deposits and normal withdrawals will be resumed The Association of Commerce, the Rotary club, the lawyer. the doctor the merchant the laborer have all expressed themselves as confident for the future While have the power to use force to close any business as an emergency mea are to preserve peace and order, I have not had to do so nor do expect such procedure will be necessary as the proclaiming order professional men have united to help Urbana through this crisis. I feel they have practically done SO, and at such time as I deem necessary the proclamation closing business firms will Iowa City joined the growing list of bankless midwest cities today as two three banks in the Chicago area and one in Decatur county, Indiana, susBusiness was virtually at a standstill at Urbana where a five-day "emergency holiday" was ordered by the mayor to halt public hysteria brought on by bank suspensions in Champaign- Urbana, mid-state educational center of 30,000 population and site of the University of Illinois, with Hammond, Ind., where there had been seven banks, was without a depository. Only one bank did business

4. January 23, 1932 JG-TC: Journal Gazette and Times-Courier Mattoon, IL

Article Text

members the Association of Commerce cial today noon the Hotel Grant made definite plans promote feeling of confidence throughout community. mittee seven was appointed call the Central Illinois Trust and Savings Bank and express fidence its solvency and to visit the National Bank Mattoon and any way The committee appointed composed of Mayor Bills, Frank Milligan, Anthony Gorman, Sam Miller. Ben man and Louis Meyer. Preceding the appointing of the committee the tened made by Webber, president of the Urbana Commerce, and Gus Radebaugh, one of the Urbana association committee heads, explaining procedure of Urbana this week the Busey State Bank and preventing the closing the First National of Urbana. Ben Overman, in the absence of Fred president of the local AsGrant, sociation of Commerce, presided the meeting.

5. February 4, 1932 The Paxton Record Paxton, IL

Article Text

URBANA'S BOY MAYOR WAS KIWANIS SPEAKER Reginald Harmon, Urbana's boy mayor, closed the stores banks in that city panic threatened follow after the First Bank in spoke before the Kiwanis Club on Monday the noonday luncheon. Mayor Harmon made very with his audiand the fact that he claimed but few the honors that was when the panic at Urbana, indeed noticable his hearers. matter fact, by his own initiative, soon the Urbana situation under control and saved the day for city. He proved very interesting speaker. The Kiwanis Quartet and the was of the the Weberm, of the who the mayor to short joyed and appreciated by the wanians.

6. February 4, 1932 Texas County News Guymon, OK

Article Text

Mayor Reginal Carl Harmon of Urbana, III., took a drastic step one day last week to bring the citizens of that city to their senses. A few days previous, the depositors of the First National bank of that city had made a sufficient run on the bank to close its doors. After an all-night conference with the bank officials and economic experts of the nearby Universtiy of Illinois, the mayor issued an edict that "business would be suspended in the city for five days, save the purchasing of food, drugs, utilities and newspaper." As a result the people had time to ponder the situation and realize the folly of losing their heads over depression. A storeto-store, house-to-house canvass was successful in signing up the majority of Urbana citizens that they would not withdraw their money until they needed it. After a two-day rest from money spending business was resumed with everyone contented and happy.

7. March 12, 1932 The Sheboygan Press Sheboygan, WI

Article Text

Mayor Raps Mob Hysteria By R. C. HARMON Mayor of Urbana, Ill. I venture the assertion that fully half of our bank "runs" in this country today are due to hysteria on the part of people who have heard a lot of wild, false and baseless rumors. That was certainly the case in Urbana. Few banks close as the result of dishonesty behind the counter. Sometimes, unwise investments cause them to fail. But in most cases a "run" is caused by sheer hysteria. Any city can do what Urbana has done, if the said city is loyal and community spirited. But if the citizens are not loyal and willing to co-operate, there is not much a mayor can do. A mayor can't enforce "martial law." If he tried to do so, he might have to put hundreds of persons into jail and that would cause a riot. That's where loyalty and public spirit comes in. Urbana had the loyalty and co-operation of its citizens in this crisis. Of the 6,000 depositors of our two banks, those who refused to join us could be counted on the fingers of one hand. happy. The banks, whose failure would have dragged many of them down, had been saved. When the banks reopened Thursday morning, depositors began flocking back with their money. That day, deposits received at the First National Bank amounted to 31 times the amount of withdrawals, and in the Busey Bank the deposits were 25 times greater than withdrawals. Placards advertising the confidence Urbana had in these banks appeared in store windows all over town. These were followed by somewhat similar placards declaring "The Gossip Mongers Must Go!" and calling upon good citizens to report destructive and doubtful gossip to the Association of Commerce. Both also appeared in newspaper advertisements, while local newspaper editorial support of the move was hearty and complete.

8. March 12, 1932 The Sheboygan Press Sheboygan, WI

Article Text

said to be the youngest national bank president in the country. Fay declared that there was also no question about the solvency of the First National Bank. At 3 a. m., Mayor Harmon was called into a conference of bankers and their legal advisors. He signed the "martial law" proclamation, closing Urbana for five days, effective immediately. At 7 a. m., President T. B. Webber of the Association of Commerce, called Urbana's merchants together. After the situation had been explained by Mayor Harmon they voted unanimously to back his "martial law" proclamation to the limit. And so, Tuesday morning, Urbana closed up tight. The mayor's proclamation for a five-day "holiday" gave both banks a legal reason for remaining closed. Thus, the "run" was halted. * * * By 3 p. m. Wednesday, the tireless solicitors had obtained the signatures of practically every depositor. This accomplished, Mayor Harmon terminated his five-day closing order immediately and that afternoon the stores reopened.

9. March 12, 1932 The Sheboygan Press Sheboygan, WI

Article Text

This pledge read: “Having confidence in the soundness of Urbana and its banks, we pledge to the people of Urbana that we will not withdraw from either Busey’s State Bank or the First National Bank any part of our account therein until this present period of hysteria has fully subsided, and if all the depositors of the community will do likewise the banks will be saved and property values will be preserved.” By 5 p. m. the pledges had been printed and solicitors were leaving The Busey State Bank weathered the storm until 10:30 a. m., and

10. March 12, 1932 Belleville Daily Advocate Belleville, IL

Article Text

Mayor Raps Mob Hysteria R. HARMON Mayor Urbana, Ill. venture the that fully half bank "runs" this today are due hysteria on the part people who heard lot of false and baseless That was certainly the case in Urbana. Few banks close as the dishonesty behind the counter. Sometimes, unwise vestments cause fail. But in most cases "run' caused by sheer hysteria. do UrAny city bana done, the loyal and community spirited. citizens are not loyal and willing operate, there much mayor can do. mayor can't enforce "martial he tried to he might have to put hundreds of persons into and would cause riot. That's where loyalty and public spirit comes in. Urbana had the loyalty and co-operation of its citizens in this crisis. the 6000 depositors banks, those refused join could be counted on the fingers of one hand. duty by making loans to the busithe National Bank of Urbana and the Busey Bank with long lines of depositors drawtheir money Busey State the until then banks to do. The First National, close for without losing its federal (Continued to Page Two)

11. March 14, 1932 The Capital Times Madison, WI

Article Text

Shut Up Town to Quiet Bank Panic goat and it would mean the end of my political career "But it worked. It has also worked in dozen other cities that have since tried "Urbana's banks." Mayor Harmon continued, "were as sound as a dollar. There was nothing wrong except lot of hysterical rumors. big bank in the neighboring town of Champaign had just closed, dragging a smaller bank down with it. That started a lot of wild rumors about Urbana's banks. "People believed these hysterical stories, without to investigate their truthfulness. And the runs followed And no bank no matter how sound, withstand major 'run' if it has been doing its duty by making loans to the business houses of the town. That day-Monday, Jan. 18-the First National bank of Urbana and the Busey State bank were overrun with long lines of depositors. draw- ing out their money. The Busey State bank weathered the storm until m., and then closed temporarily, state banks are permitted to do. The First National. however. could not close for moment without losing its federal charter, so had $400,000 cash rushed from Chicago in an armored car. This money arrived about 3 p. m., the bank's closing hour. At 1:30 p. m that day, the direc(Continued on page 13)

12. March 23, 1932 The Grand Island Independent Grand Island, NE

Article Text

These four pictures of Gilbert N. Haugen show how well he has stood up under his 33-year battle for farm relief. Note how little he has aged in 15 years. He says he expects to last several more terms. the chair. "The farmers were doing fairly well then," Haugen recalls. "I went on ranchmen and the small, independent packers in the west." Remembers Cannon Fight The next high spot in Haugen's memory is the famous house insurgent revolt against the "boss rule" of Speaker Joe Cannon about 1909, led by the now Senator George W. Norris of Nebraska. Haugen says, proudly, that he was in the ranks. solicitors had obtained the signatures of practically every depositor. This accomplished, Mayor Harmon terminated his five-day closing order immediately and that afternoon the stores reopened. An amount of trade estimated at $75,000 had been lost in the 36 hours, but the merchants were happy. The banks, whose failure would have dragged many of them down, had been saved. When the banks reopened Thursday morning, depositors began flocking back with their money. That day, deposits received at the First National Bank amounted to 31 times the amount of withdrawals, and in the Busey Bank the deposits were 25 times greater than withdrawals. Placards advertising the confidence Urbana had in these banks appeared in store windows all over town. These were followed by somewhat similar placards declaring "The Gossip Mongers Must Go!" and calling upon good citizens to report destructive and

13. August 26, 1932 The Urbana Daily Courier Urbana, IL

Article Text

STRONG LIST DIRECTORS CHOSEN Will Probably Open For Business on or Before National closed doors repaced which expected doors public Thursday September upon the progress made last minute details Harris President Newt Harris will be president bank and Dean David formerly president the Univer will act chairman board of directors Hazen and Harry Willis chosen vice presidents, and John Prettyman will be the new cashier The board of directors in addition Dean Kinley will include John Armstrong, Hazen Capron, R. M Sveinbjorn Johnson Morris Petry and Harry Willis The above list of names terred to the comptroller of the treasat Washington last night and his approval was received this morning The charter has been granted and by end new bank in full May Withdraw 60 Per Cent Depositors who signed waivers for their accounts at the defunct bank will be permitted to withdraw 60 per cent of the balance due them, with provision making the bal ance available at later date. The opening of the bank is expected improve financial situation in this community immensely, as many fectly solvent persons have been unable to pay their obligations because tied in the bank their money was up failure. With this obstacle removed general marked revival of business expected. understood that the new bank starts out with $150,000 capital and surplus of like amount The deposits run up to several million, the bank takes over all deposits old one except those where de positors would not waiver. They will have to make special arrange ments to be taken care of.

14. February 2, 1934 The Champaign and Urbana Citizen Champaign, IL

Article Text

WHAT ABOUT URBANA BANKING SITUATION? Although four Urbana citizens rereturned from Washington this week, after conferring with Treasury officials concerning plans for re-opening the old First National Bank of Urbana, or its organization of a New Firsr National Bank, in Urbana. Although no statement will be made by this group until too late for this edition of The Citizen, it is rumored that the plans as suggested by the the Urbana committee did not pass comptroller of the currency. It is believed that within the next few days a definite plan for opening another bank in Urbana will be sent to the Urbana committee, from the comptroller's office. This plan would set forth the requirements under which either the old bank or a new one can be opened. All that will then remain to be accomplished will be to meet the requirements of the plan as suggested by the comptroller of the currency. Urbana citizens may be certain that any plan suggested by the Washington authorities will be workable and if given the proper cooperation, will result in the opening of the old or organization of a new bank for Urbana.

15. March 9, 1934 The Champaign and Urbana Citizen Champaign, IL

Article Text

Urbana Bank Receiver The First National bank of Urbana is to have a receiver to conduct affairs in that institution. He takes the place of Charles Loeb. Urbana man, who was appointed conservator of the bank, which was closed by President Roosevelt's order about a year ago. Since the bank closed many efforts have been made to open the bank so the depositors might get their money, but nothing much came of the efforts. It is said that some of the depositors are becoming very angry and much alarmed at the slow motion picture on the curtain all these months. They say that other banks closed and opened and seem to be running satisfactorily to the gov. ernment and they wonder what serious trouble is back of the First National bank of Urbana.

16. March 14, 1934 The Urbana Courier Urbana, IL

Article Text

L. G. Coonred, of Savoy, today received notification by T. O'Con-, nor, comptroller of the U currency, of his appointment as receiver of the First National Bank of Urbana. The same mail relieved Charles Loeb of his duties as federal conservator, which office he has held efficiently since the bank was closed by presidential moratorium little more

17. March 16, 1934 News Progress Sullivan, IL

Article Text

COONROD NAMED URBANA BANK RECEIVER Coonrod of Savoy, well known in this county, was named receiver of the First National bank in Urbana Tuesday. The institution has one and half million in posits and has been operating der conservator since the bankmoratorium of March 1933.

18. March 22, 1934 The Paxton Record Paxton, IL

Article Text

Coonrod Named Urbana Bank Receiver former school Lewis Coonrod, has been receiver of the Urbana appointed First National Bank by Connor, comptroller of the United States treasury. He has resided Savoy, III., for the past and has been chairman the Champaign county Democratic central committee. Mr. Coonrod born the vicinity of

19. April 6, 1934 The Urbana Courier Urbana, IL

Article Text

Don Richmond Is Made Attorney For Bank Receiver L.G. Coonrod, receiver of the First National bank of Urbana, today was notified from the office of the comp troller of the currency of the ath pointment of Don Richmond of Champaign as his attorney. Preliminary steps toward liquida tion, which have been under way since the receivership was ordered. will now be expedited, but, as ex plained before in The Courier, no forecasts are to be made by the receiver. When there is news pertain ing to progress made it will be announced thru the columns of this newspaper.

20. April 12, 1934 The Paxton Record Paxton, IL

Article Text

Attorney for Bank Receiver April Coonrod. receiver of the First tional Bank Urbana, today office comptroller the currency appointment of Don Richmond, Champaign, as his attorney. Preliminary steps toward uidation. which have been under receivership but, explained before In The Courare made

21. June 22, 1934 The Champaign and Urbana Citizen Champaign, IL

Article Text

PROOF OF CLAIM ASKED If you have been a depositor in the First National bank of Urbana and still have money in the place you will be expected to take your bank book or other means of identification or proof to L. G. Coonrod, bank receiver. There is no especial hurry as Mr. Coonrod expects to take care of the angle of depositors' claims to Septemtember 15.