Peoples State Bank (East Chicago, IN)

Episode Information

Episode UID
71119871590
Episode Type
Suspension β†’ Closure
Bank Type
state
Bank ID
7111987 routing
Routing Number
71-1198
Start Date
June 22, 1932
Location
East Chicago, Indiana (41.639, -87.455)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
d05ed3312c1c6549

Response Measures

None

Description

Bank suspended by directors/state examiner in June 1932 and later listed among closed banks in receivership eligible for RFC assistance.

Events (2)

1. June 22, 1932 Suspension
Cause Details
Board of directors decided to suspend operations after lengthy conference; state bank commissioner sent an examiner to take charge.
Newspaper Excerpt
Closing of the People's State Bank of East Chicago, Ind., with deposits of approximately $205,000 was announced here today by State Bank Commissioner Luther F. Symons.
Source
newspapers
2. November 15, 1933 Receivership
Newspaper Excerpt
Peoples State bank at East Chi... listed among closed banks ... eligible for R.F.C. loans; many closed banks in receivership referenced by state officials.
Source
newspapers

Newspaper Articles (8)

Article Text

EAST CHICAGO BANK SUSPENDS Indianapolis, June 22-(INS)-Closing of the People's State Bank of East Chicago, Ind., with deposits of approximately $205.000 was announced here today by State Bank Commissioner Luther F. Symons. The bank's suspension was decided upon by its board of directors following a lengthy conference last night, Symons said. Notice of the board's decision was telephoned Symons at his home here shortly after midnight. He immediately sent Examiner John E. Myer to take charge of the institution's affairs. "The depositors probably are fairly well protected," Symons said. "The assets of the bank are listed at $369,000 which should preclude losses to depositors.' (Flashes continued on page three)


Article Text

Under the state laws, the county is authorized to pro-rate its deposits in accordance with the capital and surplus accounts of banks. In other words, the size of a bank's surplus and capital account governs the amount of money which the county may deposit in that bank. Now, with so many of Lake county's banks closed, the county is unable to find enough banking institutions in which to place its cash. The problem today is expected to be particularly difficult owing to the fact that two East Chicago banks have failed within the last week and thus have reduced the number of available depositories still further. Distribution of June receipts must be made by the board today. County Treasurer Herman L. Conter, president of the board, declared this morning that the problem is an acute one. He reported that Lake county has $1,100,000 of its funds impounded in closed banks. About $57,000 of that amount was tied up today with the failure of the East Chicago State bank. Last week $13,000 was impounded when the Peoples State bank at East Chicago closed its doors. It is thought here in the court house that the Finance board will be forced to rent a vault in one of Crown Point's closed banks in order to obtain a depository for available cash funds.


Article Text

BIG PROBLEM IS TACKLED BY FINANCE BOARD [SPECIAL TO THE TIMES] CROWN POINT, Ind., June 27.β€”The difficult task of finding sufficient Lake county banks to act as depositories for county funds will be tackled by the Lake County Board of Finance at a special meeting today. Under the state laws, the county is authorized to pro-rate its deposits in accordance with the capital and surplus accounts of banks. In other words, the size of a bank's surplus and capital account governs the amount of money which the county may deposit in that bank. Now, with so many of Lake county's banks closed, the county is unable to find enough banking institutions in which to place its cash. The problem today is expected to be particularly difficult owing to the fact that two East Chicago banks have failed within the last week and thus have reduced the number of available depositories still further. Distribution of June receipts must be made by the board today. County Treasurer Herman L. Conter, president of the board, declared this morning that the problem is an acute one. He reported that Lake county has $1,100,000 of its funds impounded in closed banks. About $57,000 of that amount was tied up today with the failure of the East Chicago State bank. Last week $13,000 was impounded when the Peoples State bank at East Chicago closed its doors. It is thought here in the court house that the Finance board will be forced to rent a vault in one of Crown Point's closed banks in order to obtain a depository for available cash funds.


Article Text

[SPECIAL TO THE TIMES] CROWN POINT, Ind., June 27.β€”The difficult task of finding sufficient Lake county banks to act as depositories for county funds will be tackled by the Lake County Board of Finance at a special meeting today. Under the state laws, the county is authorized to pro-rate its deposits in accordance with the capital and surplus accounts of banks. In other words, the size of a bank's surplus and capital account governs the amount of money which the county may deposit in that bank. Now, with so many of Lake county's banks closed, the county is unable to find enough banking institutions in which to place its cash. The problem today is expected to be particularly difficult owing to the fact that two East Chicago banks have failed within the last week and thus have reduced the number of available depositories still further. Distribution of June receipts must be made by the board today. County Treasurer Herman L. Conter, president of the board, declared this morning that the problem is an acute one. He reported that Lake county has $1,100,000 of its funds impounded in closed banks. About $57,000 of that amount was tied up today with the failure of the East Chicago State bank. Last week $13,000 was impounded when the Peoples State bank at East Chicago closed its doors. It is thought here in the court house that the Finance board will be forced to rent a vault in one of Crown Point's closed banks in order to obtain a depository for available cash funds.


Article Text

BIG PROBLEM IS TACKLED BY FINANCE BOARD [SPECIAL TO THE TIMES] CROWN POINT, Ind., June 27.β€”The difficult task of finding sufficient Lake county banks to act as depositories for county funds will be tackled by the Lake County Board of Finance at a special meeting today. Under the state laws, the county is authorized to pro-rate its deposits in accordance with the capital and surplus accounts of banks. In other words, the size of a bank's surplus and capital account governs the amount of money which the county may deposit in that bank. Now, with so many of Lake county's banks closed, the county is unable to find enough banking institutions in which to place its cash. The problem today is expected to be particularly difficult owing to the fact that two East Chicago banks have failed within the last week and thus have reduced the number of available depositories still further. Distribution of June receipts must be made by the board today. County Treasurer Herman L. Conter, president of the board, declared this morning that the problem is an acute one. He reported that Lake county has $1,100,000 of its funds impounded in closed banks. About $57,000 of that amount was tied up today with the failure of the East Chicago State bank. Last week $13,000 was impounded when the Peoples State bank at East Chicago closed its doors.


Article Text

BIG PROBLEM IS TACKLED BY FINANCE BOARD [SPECIAL TO THE TIMES] CROWN POINT, Ind., June 27.β€”The difficult task of finding sufficient Lake county banks to act as depositories for county funds will be tackled by the Lake County Board of Finance at a special meeting today. Under the state laws, the county is authorized to pro-rate its deposits in accordance with the capital and surplus accounts of banks. In other words, the size of a bank's surplus and capital account governs the amount of money which the county may deposit in that bank. Now, with so many of Lake county's banks closed, the county is unable to find enough banking institutions in which to place its cash. The problem today is expected to be particularly difficult owing to the fact that two East Chicago banks have failed within the last week and thus have reduced the number of available depositories still further. Distribution of June receipts must be made by the board today. County Treasurer Herman L. Conter, president of the board, declared this morning that the problem is an acute one. He reported that Lake county has $1,100,000 of its funds impounded in closed banks. About $57,000 of that amount was tied up today with the failure of the East Chicago State bank. Last week $13,000 was impounded when the Peoples State bank at East Chicago closed its doors.


Article Text

LOANS FROM RFC RELEASE Payment of Half of Frozen Deposits Planned Before Christmas-City Share Is $1,500,000. Christmas closed companies planned by Seventh Federal Indiana and the state committee is arranging frozen deposits about defunct banks through reconfinance loans. will make possible Christmas gifts by many would have small yuletide cheer It will mean business for and possible payment of debts. Details of the plan be outlined and liquidating agents banks meeting tomorthe Indianapolis Athletic Would Release Nearly Half. At the banking department yesterday it explained that the expected release about half the deposits the closed banks in the Seventh district, which comprises most liquidating agents invited to attend the meeting letters sent out by Robert R. Batton, chairman of the Federal committee and the other four members, all of whom are members the department financial instituFour closed Indianapolis banks eligible the state officials explained. half the deposits in Indianapolis institutions as approximately $1,500,000 free in the The Indianapolis banks and approximate deposits, Farmers Trust $1,Aetna Trust Company, Virginia AveState and Belmont State to Furnish Funds. Mechanics of the plan simply provide for long-term loans to the funct banks, through the receivers liquidating Existing sets are pledged collateral for the loans. funds derived from the reconstruction finance corporation. The assets be liquidated orderly fashion and the loans repaid to the Federal government by the receivers and liquidating agents. This will the flooding markets bank and prevent assets sacrifice figures. period five years the assets be advantage, it explained. Banks eligible the loans include about closed was explained banking department. Banking Department at Helm. Most of the involved be done through the state banking deThe Indiana committee will co-opwith the finance corporation and the deposit liquidation board in making the loans banks through James Leavell of Chicago and Walter W. Smith of the Seventh and Eighth Federal districts The Indiana committee. headed by Mr. Batton of includes Myron H. Gray of Muncie, Harvey Hartsock Indianapolis, Setser Columbus and Oscar Welborn of Indianapolis. one committees of bankers and business men appointed to speed the of more than $3,000,assets closed national and state banks throughout the country. Banks to Make Applications. The receive applications from closed banks for loans from the poration. The committee then will review the application and fix liquidating for the listed assets period of three to five years. The application then will be passed along to the district chairmen with for amount, less the cost determining district chairman will recomaction to the deposit liquidatBanks operating under liquidating agent of the state banking mission receiver to which the notices sent included Citizens Loan and Trust Company of Frankfort, Peoples State bank at East ChiCitizens State bank at NoblesExchange Lyons, Wabash County Loan Trust Company Trust ComIndianapolis, Valley


Article Text

83 Madden Tells How Taxpayers Are Hoodwinked RECEIVERS THE WEATHER Dr. McCulloch Elected to GIRL STILL GARY MAN Chief Engineer Geupel INDIGENT Partly cloudy. quite cold and IN CRITICAL State Central Committe MEET To Outline Disposal Plan Moonrise, EXPLAINS HAMMOND FOR REGION CONDITION today of commission, the state Indianapolis Physician, De- Will Meet Officials of Gary, his successor. for THURSDAY Weather fair noon. refused to have his name unless feated Twice for GoverTAX ISSUES however, and Hammond, East Chicago FAMILIES TO ROTARY How Politicians Are Able to Conceal A City's True Financial Condition How politicians may pull the wool over the eyes of unsuspecting voters on tax issues was explained by M. W. Madden, Gary accountant, in an address before Hammond Rotary club noon in the Chamber of Commerce auditorium. He said accounting of Indiana municipalities is based principle of cash entries are made in nicipal actually hands services politicians to condition BELOW DEBIT And of cording municipal report total expeneach fiscal materially below the actual Mr. Madden the during the fiscal that only $800,000 actually Therefore, the latter amount still is and ment result, politician who to make good for political campaign, report the spent only reduction expenditures under Madden such that the He combatted installing modern such used by corpo- BEST YARDSTICK subject taxaexplained that the by which measure economy total He said tax meaningless unless they combined with assessed valuabecause of the facility with may owing to accounting not total expenditures of the fiscal condition all unpaid bills the annual stateMadden concluded his talk discussion of the $3,300,000,appropriation which congress authoried for public works. He is planning request another next session of gress the make total of five billion dolauthorized for Mr. Madden declared. this that the person no of congress authories another dollars winter. that national debt of among the people that debt be have to pay will in total expenditures sooner later. Representatives to Have Details of Plan For Pledging Assets [SPECIAL THE TIMES) INDIANAPOLIS, Ind., Nov. 15. of the 24 closed banks of county declared eligible for R. F. loans today by Robert R. Batton, of Marion. chairman of the state banking commission. He these will meet those of 76 other banks the morning machinery deposits the 83 eligible The will hear details of plan for assets of their banks SEVEN ELIGIBLE FIRST TRUST SAVINGS BANK, OF PEOPLES STATE OF EAST CHICAGO. OF CROWN STATE BANK OF EAST CHICAGO BANK. AMERICAN INGS BANK. HIGHLAND. All except State Bank mond are in receivership. The ter being by liquidating agent. to the the here mall last according He the proposed is tingent approval of loans largely those in serve district, all of Indiana with the of about 10 western corner the Eligible banks largely those closed uary although all the seven Lake been closed LOAN to be about Batton Long will be made to and pledge existing of banks collateral. Cooperating R. in making the loans be banking of the following Mr. Batton, of Marion: Myron H. Gray, Muncle: Oscar Indianapolis, M. Setser, The will receive for value the consider of amount the liquidation. Loans extend from three five years and will used to pay immediate dividends to depositors.