Article Text
$6,000,000 BANK CLOSES DOORS AT ROCK ISLAND, ILL. H. H. Cleaveland, State Official and Head of Depository Blames "Unfounded Rumors." DAVENPORT CONCERN ACTS TO HALT RUN Requires 60-Day Notice for Withdrawals — State Takes Over Scranton, Pa. Financial House. Special to the Post-Dispatch. ROCK ISLAND, Ill., Sept. 30. — The Central Trust & Savings Bank, the largest bank in Rock Island organized under the State banking laws, closed 10 minutes after opening for business today. H. H. Cleaveland, director of the Department of Public Works and Buildings, at Springfield, is president. The bank had a capital stock of $500,000 and deposits of between $5,500,000 and $6,000,000. The directors acted to protect depositors as a result of the action in Davenport, Ia., of the American Savings Bank & Trust Co. in issuing a notice to depositors requiring 60-day notices for withdrawals. This followed a run in which the bank was forced to limit withdrawals to $100 a depositor. Today a large crowd was in the bank filing the notices of withdrawals. The American is the largest bank in Davenport. E. P. Adler, newspaper publisher of Davenport was appointed head of a reorganization committee which will attempt to stabilize the situation, seeking new collateral and a reduction of expenditures. It was reported $9,000,000 of State funds were on deposit. President Cleaveland of the Rock Island Bank, issued a statement in which he said: "Unfounded rumors have caused heavy withdrawals and the demand of the depositors have been promptly and cheerfully met. The bank opened as usual this morning with $456,198.04 actual cash in our vaults, substantial balances with our correspondent banks and in addition bonds, real estate mortgages, bills receivable and other substantial assets and we have hoped that only reasonable withdrawals would be made today. However, a development in connection with the affairs of the American Savings and Trust Co. of Davenport have unsettled the public mind so that a few minutes after opening for business this morning our lobbies were filled with anxious depositors desiring to withdraw their deposits. In order to protect the interests of all depositors the bank deemed it advisable to close the doors." Cleaveland said he had every reason to believe that the depositors will be paid in full. Runs on each of the other three banks were started later in the morning and they posted 60-day notices on savings deposits. The announcements of the notices were in all instances applauded by depositors in the bank. By the Associated Press. SCRANTON, Pa., Sept. 30.—The Miners' Savings Bank & Trust Co., at Olyphant, near here, closed its doors today. Deposits approximated $3,000,000. Directors decided to close in order to protect the bank's assets. Michael Bosak, president of the bank, also was head of the Bosak State Bank here, which closed some weeks ago. By the Associated Press. KEWANEE, Ill., Sept. 30.—The Farmers' National Bank of New Bedford, Ill., closed today. President W. R. Spratt said directors took the action for the best interests of depositors and that the bank was expected to satisfy all demands. Deposits were $90,000. OTTAWA, Ill., Sept. 30. — Because of reported failure to get financial assistance from Chicago banks, the National City Bank closed its doors today. A run began after the closing of the Ottawa Banking and Trust Co. yesterday. The National City Bank was capitalized for $200,000. It is solvent and depositors will get 100 cents on the dollar, officers said.