Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health
Description
Multiple contemporaneous articles (Dec 3–6, 1926) describe a multi-day 'near-run' or 'run' on the First National Bank of Iowa City caused by a malicious rumor (telegram misinterpreted). The bank stayed open (kept doors open after hours), received funds from the Federal Reserve Bank of Chicago and specie/currency, paid depositors, and later declared a dividend. No suspension or receivership is reported.
Events (4)
1.July 1, 1863Chartered
Source
historical_nic
2.June 24, 1882Chartered
Source
historical_nic
3.December 3, 1926Run
Cause
Rumor Or Misinformation
Cause Details
Malicious/unfounded rumor (apparently from a misinterpreted telegram to a student) that the bank was insolvent; bank officials offered $5,000 reward to find those who started the rumor.
Measures
Kept doors open after hours to accommodate withdrawals; received large funds/specie and currency from the Federal Reserve Bank of Chicago; offered $5,000 reward.
Newspaper Excerpt
Five thousand dollars reward ... starting of an allegedly malicious rumor ... causing a near-run on the bank. ... called at the bank to withdraw their funds, thereby causing a near-run on the bank.
Source
newspapers
4.January 22, 1932Receivership
Source
historical_nic
Newspaper Articles (8)
1.December 3, 1926The Daily TimesDavenport, IA
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Article Text
Bank Seeks Persons Who Started Rumors About Its Condition
IOWA CITY, Ia., Dec. 3.-(Special)-Five thousand dollars reward for the arrest and conviction of person or persons responsible for the starting of an allegedly malicious rumor was offered here Thursday afternoon by officials of the First National bank of Iowa The incentive for the offer rested in a steady stream of suspicious, though not panicky depositors, who throughout the day called at the bank to withdraw their funds, thereby causing a near-run on the bank. Notice of the reward, appearing in the Iowa City Press Citizen, was signed by W. J. McChesney president of the bank and by Thomas Farrell, cashier When questioned, officials of the bank declared that the bank was entirely solvent and not financially shaky as the rumor hinted. Word of the rumored condition of the bank spread throughout the city and university Thursday forenoon, but at no time did evidence of an actual mobbing of the bank appear.
2.December 3, 1926The GazetteCedar Rapids, IA
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Article Text
RUMOR STARTS RUN ON A BANK AT IOWA CITY
IOWA CITY. Dec. Kream Krust Bread reward of $5,000 for information leadCan Bowline ing to the identification of the per 1,000 Sheet Silk Tissue son that the Soft Crepe Paper First National bank of City lb. Pkg. Pure Leaf Lard was insolvent, was on file here lb. Box Large Soda Crackers Box Small Soda Crackers The reward is offered by officials lb. Box Graham of the bank. COPPER NICKEL lbs. Pure Pearl Crackers The rumor started yesterday and TEA KETTLES, $1.65 lbs. Fresh Ginger Snaps caused near-run on the institution. lbs. Fig Bars It is believed to have caused lbs. Orange Bar Cookies by the failure of the bank to open its IRONING BOARDS $1.99 Up Ibs. New Bulk Dates doors promptly on the stroke of Boxes Pink Tip Matches o'clock.
3.December 4, 1926The Daily TimesDavenport, IA
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Article Text
BANK CEASES: MANY REPLACE DEPOSITS
Rumor That Bank Was Unsound Caused Trouble -Funds From Chicago
IOWA CITY, Ia., Dec. keeping the doors of the First National bank here open hour after the regular closing time allow anxious depositors to withdraw funds, officials of the bank believed last evening that the lethargic run, which had lasted for two days, had spent itself. Many have redeposited their money in the bank. Although the bank had offered reward $5,000 for information leading to the arrest and conviction the person or persons who had started rumor of the insolvency, was believed that nothing would be done theory, accepted by McChesney, president of the bank, was proven true According to the belief. student of the university here had ceived telegram warning him not write more checks on First National bank in another town. Later told it and it thought that someone, overhearing the tale in part, believed and spread the rumor that the Iowa Boston City First National was unsound. was unofficially learned here that $750,000 had been received yesterday to withstand the mands of the run from the Federal Reserve bank Chicago and that more was received today.
4.December 4, 1926The GazetteCedar Rapids, IA
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Article Text
Run On Iowa City Bank Nearly Over, Depositors Paid
Special to The Gazette IOWA CITY. Dec. After keepIng the doors of the First National bank here an hour after the regular closing time to allow anxious depositors to withdraw money, offi cials of the bank believed that the lethargic run, which had lasted for has spent itself. Although the bank had offered a reward of $5,000 for information leading to the arrest and conviction of the person or persons who had started rumor of the bank's insolvency it was believed that noth ing would be done If theory. ac dent of the bank was proved true According to the belief a student of the University here had received a telegram warning him not to write any more checks on First National bank in another town. Later he
5.December 6, 1926The Daily TimesDavenport, IA
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Depositors Calm Again After Four Day Run on Bank
IOWA CITY, Dec. days steady the First National Bank of Iowa business the bank had gone back to point near normal Saturday Importation at least million dollars in specie and currency, posting of wires from the Federal Reserve bank in Chicago offering unlimited amounts money, the attitude of the bank keeping open after hours to commodate those withdraw accounts. were the factors in stopping the run.
6.December 6, 1926The CourierWaterloo, IA
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Three-Day Run on Bank Has Subsided
Iowa City, Ia. Dec. First bank of city doing again today after run three duration the last half Other financial institutions the city refused accept deposits withdrawn from the First National the subsided Business being transacted without interruption this morning.
7.December 16, 1926The Daily TimesDavenport, IA
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First National Bank Declares Dividend
IOWA CITY, Ia., Dec. (Special)-The First National bank here voted a 5 per cent dividend to stockholders, Tuesday, following what was thought to have been a serious run on the bank a short time ago.
Shortage in the number of sardines caught near Gallicia. Spain, has caused a business depression in that city.
8.December 17, 1926The GazetteCedar Rapids, IA
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Article Text
IOWA CITY BANK VOTES 5 PER CENT DIVIDEND
IOWA CITY. Dec. 17 first National bank here voted a semi an nual dividend of five per cent to following what was thought to have been run on the bank a short time ago.
