Somerville Trust Company - Somerville, MA

Episode Information

Episode UID: 6178875791582
Episode Type: Run Only
Bank Type: trust
Bank ID: 617887579 hash
Start Date: October 14, 1931
Location: Somerville, Massachusetts (42.388, -71.099)

Metadata

Model: gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest: 462cb23802a95717

Response Measures

None

Description

Articles report rumors and mild withdrawals but no suspension or closing mentioned for this bank.

Events (1)

1. October 14, 1931 Run

Cause: Rumor Or Misinformation
Cause Details: Withdrawals described as driven by circulating rumors; officials urged deposits unnecessary and solvent status.
Measures: State indicated it would make deposits up to legal limit to reassure public; officials publicly declared banks solvent.
Newspaper Excerpt: Rumors were current this morning of mild runs on two Somerville banks, namely the Somerville Institution for Savings and the Somerville Trust Company
Source: newspapers

Newspaper Articles (1)

1. October 14, 1931 Springfield Evening Union Springfield, MA

Article Text

State Banking Situation Sound, Ely, Guy Assert [Continued from First Page.] the State will make deposits to the full amount allowed by law, namely 40 per cent of the bank's capital. Since the bank is capitalized at $150,000, the deposits will amount to approximately $60,000. Rumors were current this morning of mild runs on two Somerville banks, namely the Somerville Institution for Savings and the Somerville Trust Company and also on several banks in Cambridge. Both the Governor and the insurance commissioner took immediate steps to set the public mind at ease in this regard, the commissioner stating that such withdrawals were entirely unnecessary and that the banks were solvent. The Governor declared that rumors of that character constitute a criminal offense. In the case of the three banks that have already been closed in the last two weeks, the Governor declared that the action was taken because of unsound banking management and that he would at once order an investigation to place the blame where it belonged. The Governor's statement to the press read as follows: "The Highland Trust Company is absolutely sound and will meet all of its obligations. The institutions which have been closed were closed because of unsound banking management and a thorough investigation of those institutions will be ordered by the Governor at once to place the blame where it belongs. "In reference to one of the institutions recently closed, plans already are under way to provide for its reopening and we will have some announcement to make on that score within a day or two. "Information has come to me that rumors have been spread concerning the condition of certain banks. Such statements detrimental to the actual condition of a banking institution constitute a criminal offense." The Governor made it very plain that the Highland Trust Company is 100 per cent solvent with no impaired capital, and there is no occasion for any run on this bank. The three banks that have so far been closed are the Medford Trust Company, the Revere Trust Company and the Highland Trust Company in Somerville.