First National Bank (Johnstown, PA)

View Charter #51 on SPMC View balance sheet

Episode Information

Episode UID
5101599
Episode Type
Suspension → Closure
Bank Type
national
Bank ID
510 national
Charter Number
51
Start Date
March 4, 1933
Location
Johnstown, Pennsylvania (40.326, -78.919)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
5f4f6c5ec2ab304b

Response Measures

None

Receivership Details

Depositor recovery rate
45.0%
Date receivership started
1934-02-05
Share of assets assessed as good
15.4%
Share of assets assessed as doubtful
41.5%
Share of assets assessed as worthless
43.1%

Description

The 1933 event was a statewide bank holiday (government action); the bank later went into receivership in early 1934.

Events (4)
1. August 5, 1863 Chartered
Source
historical_nic
2. March 4, 1933 Suspension
Cause
Government Action
Cause Details
Governor Pinchot proclaimed a two-day mandatory statewide bank holiday (March 4 and March 6, 1933) in response to widespread withdrawals and moratoria in other states.
Newspaper Excerpt
I hereby declare a bank holiday throughout Pennsylvania on Saturday, March 4, 1933, and Monday, March 6, 1933.
Source
newspapers
3. February 5, 1934 Receivership
Source
historical_nic
4. February 5, 1934 Receivership
Newspaper Excerpt
Mr. Vallely ... was appointed receiver of the First National Bank of Johnstown on Feb. 5, 1934.
Source
newspapers

Newspaper Articles (5)
1. March 4, 1933 Evening Star Washington, DC
Article from Evening Star, March 4, 1933

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Article Text

EARLY U. S. ACTION PLANNED ON BANKS New York and Illinois Declare Holidays—Only Four States Unrestricted. Connecticut took similar action, bringing to 43 the list of States in which restrictions on withdrawals are operative in some form or another. Only Montana, Colorado, North Dakota and South Carolina remained without restrictions at noon today. Delaware's banks were open, but the State Legislature has already taken emergency action. These developments had brought from Representative Rainey, the next Speaker of the House, the prediction that "an extra session of Congress will be called at the earliest possible time." He said he felt that early next week, possibly Tuesday, would not be too soon. Previously Rainey had told House members-elect to remain in Washington. Others at the Capitol said the session probably would begin Wednesday. The Federal Reserve Bank of New York was closed with all other banking institutions of that State. The Federal Reserve Bank at Philadelphia also closed, under a holiday declared throughout Pennsylvania by Gov. Pinchot. Later in the day the Minneapolis Federal Reserve Bank suspended business. The closing of the New York Federal Reserve Bank meant the tying up of its huge gold reserve for the period of the holiday against withdrawal by either domestic or foreign agencies. In discussing the banking relief program, Senator Robinson said: "We do not know just when it will be completed, but it will be expedited all possible. The details can not be announced right now but you may be assured there will be no delay." Wagner Plans Action. Previously Senator Wagner, Democrat, of New York, had told newspaper men he would carry immediately to Democratic leaders an appeal for immediate emergency banking moves. Informed at his hotel here of banking moratoria in New York and Illinois, Wagner said he would appeal this morning to Democratic leaders to begin working out a program and some time this afternoon would call on Mr. Roosevelt with the same objective. A bank holiday, he said, "is the only thing to do" to meet the emergency of the banks themselves, but he added quick steps are necessary to enable them to reopen and continue operations. Harvey Couch, Democratic member of the Reconstruction Finance Corporation, was the first White House caller this morning. He said after a brief conference with President Hoover he had discussed "matters incident to the banking situation," but declined to give details. Couch conferred last night with President-elect Roosevelt. Officials in Conferences. High officials both of the outgoing Republican and incoming Democratic administrations were in conference most of the night. Secretary of the Treasury Mills said afterward the Hoover administration would have no statement, but that governors of the Federal Reserve banks in Chicago and New York would have announcements. Demands Impossible. The hours between midnight and dawn saw banking officials in many States struggling with the problem, made acute by the flurrying of nervousness on the part of depositors. As a statement by the New York Clearing House Committee put it: "The unthinking attempt of the public to convert over $40,000,000,000 of deposits into currency at one time is, on its face, impossible." The statement added that the condition clearing house banks is such that "they could, through the facilities of the Federal Reserve Bank, pay on demand every dollar of their deposits," but that withdrawals throughout the country as a whole have increased so that a "halt" is necessary "to enable the proper authorities to consider and adopt remedies to meet this situation, not for New York primarily, but for the Nation as a whole." Only a few States remained today in which restrictions on withdrawals had not been invoked. No Holiday in Virginia. In Virginia, Gov. Pollard said no general banking holidays would be declared because the State's laws already protect the banks and their depositors. In Maryland, the General Assembly early today approved the emergency banking legislation without a dissenting vote in either House. Gov. Ritchie signed it this morning, but said that the banking institutions of the State will not reopen Monday. The resources of the Reconstruction Finance Corporation earlier had been made available to hard-pressed, but solvent banks in States that have imposed moratoria on withdrawals. This was one of a number of developments yesterday that included introduction of legislation to allow postal savings checking accounts and to confer upon the incoming administration sweeping authority to maintain the security of deposits. Reconstruction Corporation officials said their policy called for lending institutions—if the loans were well secured—enough money to pay the percentage of deposits that could be withdrawn, provided the banks did not have the funds immediately available. It was emphasized this was not a new departure, but was simply the application of regulations decided upon for individual instances in the past to a situation spread into a number of States. Pinchot's Statement. Gov. Pinchot of Pennsylvania here for the inauguration issued the following statement: "Because of the declaration of a bank holiday in New York, Illinois and most of the other States, similar action in Pennsylvania has become unavoidable. "Were our banks to remain open, the demands upon them would impose an impossible burden. "Therefore, upon specific recommendation of Gov. Norris of the Philadelphia Federal Reserve Bank, I hereby declare a bank holiday throughout Pennsylvania on Saturday, March 4, 1933, and Monday, March 6, 1933." Exchange Statement. A statement issued by the Governing Committee of the New York Stock Exchange said: "The Governing Committee at a meeting held this morning in order to give full effect to the banking holiday declared by the Governor of the State of New York directed: "First, that the exchange be closed during such holiday; "Second, that members and firms registered on the exchange be prohibited from making any contracts for the purchase or sale or the borrowing or lending of any securities, and also from permitting their offices or facilities to be used for the purpose of making or carrying out any such contracts; "Third, that all deliveries be suspended on all member contracts, except on such contracts as may be cleared by or settled through the Stock Clearing Corporation, and that in such cases deliveries shall be made as the Stock Clearing Corporation shall direct."

2. March 4, 1933 The Daily Courier Connellsville, PA

Article Text

GOVERNOR ORDERS TWO-DAY HOLIDAY FOR STATE BANKS By International Nows Service. PHILADELPHIA, March 4.-Governor Gifford Pinchot. from his temporary residence at Washington, D. C., today proclaimed mandatory twoday hollday for all Pennsylvania banks. The proclamation issued at 8:30 this morning through Dr. William D. Gordon, State Secretary of Banking, directs all banks in the Commonwealth to remain closed Saturday and Monday. George W. Norris, governor of the Federal Reserve Bank in Philadelphia at whose behest leading Philadelphia financiers assembled in the early Lours the morning to consider decisive action, said the step was made necessary by the growing list state bank holidays. Although it was believed Penneylvania banks could have remained open under the emergency legislation passed by the Legislature last Monday, of holidays by the governors of New York and Illinois and several other states early today precipitated the crisis, Norris explained. "Because of the declaration of bank holiday in New York, Illinois and other states similar action in Pennsylvania has become unavoidable," the Governor declared in his "Were our banks to remain open the demands on them would impose an impossible burden." "Therefore, on the specific recommendation of Governor George W. Norris of the Philadelphia Reserve Bank, hereby declare bank hollday throughout for Saturday, March 5, and Monday, March 6," the proclamation concluded.

3. February 27, 1934 Grand Forks Herald Grand Forks, ND

Article Text

VALLELY WILL KEEP BANK RECEIVER Aides of O'Connor Defend Appointment. WASHINGTON sentatives of the comptroller of currency said Monday the removal of John Vallely of Grand Forks, N. of the First Nareceiver tional bank of Johnstown, Pa., despite the pronot contemplated test against his retention. that Vallely was Denying as charged litical appointee, he was officials explained protests, O'Connor selected by Comptroller he could was felt because the bank the affairs minister manner and impartial completely knowledge the without led to the failure which situation the institution. of Vallely's retention Opponents demanded for have the removal of Allen Rhodes, conservator for the bank, and offisaid Monday that two weeks Vallely's Rhodes had requested that he not receiver. further stated that Rhodes 90 day leave absence from the ists fice, and that he now is back his regular As to Vallely's qualifications the job, officials said he regardsound, oughly efficent. If deemed sary the comptroller will send petent assistants to handle details.

4. April 17, 1934 Intelligencer Journal Lancaster, PA

Article Text

WON'T CHANGE BANK RECEIVER IN JOHNSTOWN Treasury Henry Morgenthau, Jr., said Monday he saw "no reason" to change the receiver for the First National Bank of Johnstown, Pa. said he had ordered an

5. October 7, 1935 The Minneapolis Journal Minneapolis, MN

Article Text

Whatever the purpose of his European tour, whether it was to gain for himself some of the notoriety and standing that have glowed around the shaggy head of his colleague Senator William E. Borah for so many years, it appears that Senator Pope profited considerably by his investigations. He seems to have learned a great deal. First of all, he is no nationalistic soothsayer. Chauvinism is no part of him any more. No nation, he says, can isolate itself, pretend that it is the only country in the world, which is just what many of the senators who sit with him want this country to do. He believes the United States must play a highly important part in world affairs, and for that reason he wants this country to join the League of Nations. It is interesting, too, to find him advocating world recognition of German and Italian colonial or expansion needs. Anyone who has studied the world history of the past sixteen years knows that this is one of the great needs today. The Italo-Ethiopian affair demonstrates that more realistically than anything else has done. But what country in Europe, especially what one of the great powers, will give voice to it? What power will face it? It involves a complete rewriting of the Peace of Versailles, the drawing of new economic and political lines, and Great Britain and France, to mention the two most important, are not ready for it. Mr. Pope apparently learned much about this situation when he was in Europe, for he voices the opinion that these expansion needs must be recognized. After all, this Idaho man is likely to be a valuable member of the Foreign Relations committee. It may not be smart, by and by, to continue to dub him "the other senator from Idaho." Death Takes Efficient Man When John Vallely, pioneer resident of Grand Forks, N. D., died in Johnstown, Pa., the other day, his good friend, Comptroller of the Currency J. F. T. O'Connor, lost a most efficient and valuable bank receiver. Mr. Vallely, life-long democrat, was appointed receiver of the First National Bank of Johnstown on Feb. 5, 1934, and immediately embarked on one of the most hectic receiverships in the country. Johnstown, at that time, was no place for a weakling, a compromiser, a trimmer. The city was seething with factional differences, and political cliques were making things uncomfortable. More than one deserving democrat was eager to get the receivership. In fact, a crew of them began clamoring for it. At this point, Mr. O'Connor stepped in, and without any by your leave from Pennsylvania democratic authorities, promptly ordered Mr. Vallely to the scene, appointed him receiver, clothed him with all the authority he needed to disregard political cliques, told him to liquidate the bank and nothing else. It was a tough spot for Mr. Vallely, but he always had a liking for tough spots. He took hold, informed the varied interests of the city that he was the big boss of the institution, that he would choose his own assistants, that he would handle the job in his own way, and that the cliques had jolly well better knuckle down and end their bickerings. Well, Mr. Vallely did an exceptionally fine piece of work. He was not done by any means when death took him, but the worst of the road had been covered. He had composed all the factional differences in an astonishingly brief space of time. Within a few weeks, he had all Johnstown rooting for him, and for the administration of closed banks from Washington. When Joseph F. Guffey was elected senator from Pennsylvania, he made a special trip to Washington just to congratulate Mr. O'Connor on the Vallely appointment. Mr. O'Connor knew what he was doing. He knew Mr. Vallely, for they were fellow townsmen, fellow democrats. He wanted an outside man for the post, fearing that any Pennsylvania democrat would fail in the face of the factional unrest and heat. Of course, it was a fine favor for an old friend and neighbor, and Mr. Vallely proved it was not misplaced. The work assigned him became one of the high points, perhaps the high point of his life. When Roosevelt took office in March, 1933, Mr. Vallely could get no appointment from the administration, despite the fact that he had labored for many lean years in the democratic field. He was a democrat in North Dakota when it was dangerous to be one, and when the great opportunity came in 1933 he thought there should be a place for him. He wanted the customs port at Pembina, for one choice, but he soon learned that these were other times and other men sat in the seats of authority in his state. The old democratic warhorses of John Burke's day had passed out of the picture; younger men, more or less strangers to the party in its heyday, were in control. At Mr. Farley's office, the word was to come with recommendations and urgings from the state committee. Mr. Vallely knew the answer, and bitterness filled his soul. But Mr. O'Connor snatched him from democratic oblivion, sent him to Johnstown, Pa., to tackle just about the toughest bank job in the country, and he made good.