Guardian National Bank of Commerce (Detroit, MI)

View Charter #8703 on SPMC View balance sheet

Episode Information

Episode UID
870301598
Episode Type
Suspension → Closure
Bank Type
national
Bank ID
87030 national
Charter Number
8703
Start Date
February 14, 1933
Location
Detroit, Michigan (42.331, -83.046)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
e8b6182c672077d0

Response Measures

None

Receivership Details

Depositor recovery rate
89.5%
Date receivership started
1933-05-11
Share of assets assessed as good
62.6%
Share of assets assessed as doubtful
30.8%
Share of assets assessed as worthless
6.5%

Description

The bank suspended during the Michigan banking holiday on February 14, 1933, and never reopened, eventually entering receivership.

Events (5)
1. May 22, 1907 Chartered
Source
historical_nic
2. February 14, 1933 Suspension
Cause
Government Action
Cause Details
Closed by the Michigan state-wide banking holiday proclamation by Governor Comstock.
Newspaper Excerpt
Both closed in the Michigan bank holiday last February 14.
Source
newspapers
3. March 24, 1933 Other
Newspaper Excerpt
The new bank will take over part of the assets the First National bank and the Guardian National Bank of Commerce Detroit and assume part of the deposits.
Source
newspapers
4. May 11, 1933 Receivership
Source
historical_nic
5. May 11, 1933 Receivership
Newspaper Excerpt
B. Schram, receiver for the Guardian National Bank of Commerce
Source
newspapers

Newspaper Articles (24)
1. February 23, 1933 The Daily Times Davenport, IA

Article Text

Immediate Payment Of by Detroit Banks Is Planned DETROIT, Feb. ated Detroit News day says that payment 50 cent deposits in the First and the Guardian National Bank of Commerce Detroit is proposed under reorganization plans now being considered, contemplating the ganization Detroit of two new national banks. The Reconstruction Finance Corp., the News says, has been asked to advance in the neighborhood of to place the plans in effect, and further said that aid is expected from the Federal Reserve bank and New York banks. were understood to under way in New York and Washington concerning the plans under consideration, the paper The Guardian National Bank of Commerce the units the Guardian Detroit Union Group, Inc., some 20 banks operating trust companies in Michigan. other of the members the Guardian Group is the Union Guardian Trust Co., in which Governor William Comstock, in declaring banking holiday Michigan declared "acute financial existed. The bank has emergency" seven other units in the Detroit Metropolitan area. Rudolph Reichert, state banking commissioner, said that most banks were "doing business in the best possible and lated the state's bankers on their during the He said that most banks were cashing checks that had not ready been the depository percentage basis laid down the governor's second proclamation issued Tuesday. Generally, the banks were following plan under operation for the past week in Detroit, lowing depositors withdraw per cent of their deposits. In Detroit at the opening hour there were no lineups outside the banks and few instances of unusual numbers of customers inside. Silent Loan Feb. Couzens Vandenberg of Michigan day declined discuss reports the loan to two

2. February 23, 1933 Lincoln Journal Star Lincoln, NE

Article Text

REPORT DETROIT ACTION Reorganization Plans Two Banks Said Considered. DETROIT. (AP). The Detroit News says that immediate payment of 50 percent of deposits in the First National-Detroit, and the Guardian National Bank of Commerce in Detroit is proposed under reorganization plans now being considered, contemplating the organization of two new national banks. The Reconstruction Finance corporation, the News says, has been asked to advance in the neighborhood of $135,000,000 to place the plans in effect, and further said that aid is expected from the federal reserve bank and New York banks. WASHINGTON. (AP). Senators Couzens and Vandenberg declined to discuss reports that the Reconstruction corporation had made a large loan to two Michigan banks. Neither would officials of the corporation comment.

3. February 25, 1933 The Atlanta Constitution Atlanta, GA

Article Text

MICHIGAN STUDIES NEW BANK PLANS Organization of State Reserve Bank Proposed by Senator Orr. DETROIT, Feb. plans designed aid in releasing billion and half dollars in bank deposits were under scrutiny in Michigan tonight, while bankers awaited and national legislation for the 530 banks operating restrictions. One plan, calling for the issuance of transferra certificates against the frozen deposits of banks, brought forward by Rudolph E. Reichert, state banking commissioner, who under legislation pending before the state legislature would come the virtual banking dictator Michigan. The other, favoring the organization of state reserve was proposed by State Senator HerOrr, Caro, (Mich.) banker. plans make available at once 50 per cent of all deposits by organizing two take over the liquid assets of the First NationDetroit and the Guardian National Bank of Detroit, the two largest in city, were under cussion. Further it appeared, action tomorrow by the house in Washington on the Couzens giving powers over national banks to the comptroller of the currency. The olution was approve imously day by the house committee. Reichert's plan drew state-wide today. He proposed, in effect, the issuance of ferable which would be acceptable in virtually all purposes the same as currency. They would be issued the total volume of deposits that the banks are unable to pay cash. The only limitation circulation, Reichert said, would be the willingness of creditors to accept certificates on their face value. The certificates, Reichert said, aftbeing employed to pay rent, buy food, and other essentials, could be turned into the banks at full face value in payment of obligations owed to the banks. State Senator Orr, declaring he is proceeding with plan for organization of a state reserve bank, said reof many outstate banks now are held in Detroit institutions. which are withdrawals on the same basis as that of other itors- per cent of the total deposited. Under his reserve funds would be carried in outside In most parts of the state today, banks continued to pay out five per cent to depositors.

4. February 27, 1933 The Grand Rapids Press Grand Rapids, MI

Article Text

PLAN OPENING WEDNESDAY ON Will Be Built From Assets of First and Guardian National Institutions. $78,000,000 AID FROM RFC Depositors to Get 30 Per Cent Immediately; Magnates in Full Control. buttressed by Detroit Henry Monday lead plans the difficulties Michigan banking holiday capital will furnished by Ford and his business Wedopen expected be built from They First National liquid assets National Bank and receive immediately of their deposits about the remaining await the of the banks assets tion The develop which of ments during National Guardian First loan corporation to in of Fords in Full Control The First grants the Guardian his specificFords will put up First National and built bank their the Detroit ability Detroit Bank resume One The that limited under the of real necessity Page Column on

5. March 21, 1933 Hickory Daily Record Hickory, NC

Article Text

New Detroit Bank Formed With Capital; Aid WASHINGTON, March formation bank, the National Bank Detroit, capital of twenty-five lions dollars was day by the Corporand Alfred Sloan, dent of the General Motors corSecretarv Woodin approved the The announcement was made treasury, where been for days solution Detroit banking problems. bank will take over part of the assets the First National bank and the Guardian National Bank Commerce Detroit and sume part the deposits. Half of the capital. will be form of subscription the common stock and has paid by General Motors Corporation. The balance has been supplied the United States government through the Reconstruction nance form subscription to the preferred

6. March 21, 1933 The Niles Daily Star Niles, MI

Article Text

Reconstruction Finance Corporation to Supply March tional bank of Detroit, with capital millions dollars nounced today. by the Reconstruction corporation and Alfred Sloan, president of the General Motors corpora- approved the The announcement made the toward solution of De the new bank the assets First National bank and the Guardian National Bank of of Detroit and assume part of the deposits, Half of the capital. will be in form of subscription the The balance has been supplied by the United States through the Reconstruction Finance corporation in the and the joint statement make available bank with ample The statement issued by Jesse Jones, of the Finance that and old and out of legal per cent of their net deposits will be immediately made the the two old This, statement said, will be made quisition the more liquid assets and the GuardNational Bank of Commerce. Officials of the Grand Rapids Savings bank today attempting to fulfill details of financing program out(Continued

7. March 25, 1933 The Roanoke Times Roanoke, VA

Article Text

DETROITERS RUSH BANK TO DEPOSIT THEIR FUNDS Detroit Mich. March 24 The per cent liquid and 100 fool deposit money on the bank's day turned away savings they that accepting only could deposits ing tellers the Total deposits for the day More than had been posited largest deposit was the deposit was that General The known the Guardian National and General Motors and the finance the tablished under new federal

8. April 24, 1933 The Minneapolis Journal Minneapolis, MN

Article Text

Closed Detroit Banks Start Paying Out Detroit, April 24.—(AP)—It's payday today—their first since February 14—for some of the 800,000 depositors in Detroit's two closed national banks, and approximately $131,000,000 will return to circulation before the job of paying is finished. The amount represents 30 per cent of the accounts in the First National Bank of Detroit and the Guardian National Bank of Commerce. The banks will be open nights for those who cannot call in the daytime. Fishing Skippers Will Be Roosevelt Guests Washington, April 24.—(AP)—Veteran fishing skippers from Gloucester, Mass., who came here aboard the schooner Gertrude L. Thebaud to ask the federal government to help their industry, had an invitation to visit the White House today. The invitation was extended

9. June 27, 1933 The Atlanta Constitution Atlanta, GA

Article Text

For Closing of Detroit Banks DETROIT. June standing Street to Henry Ford financially lay directly behind the closing of two national banks in troit tonight rested in the records of grand jury investigating the city's involved banking affairs. The charge. the most sensational in two made by Herbert R. Wilkin. Detroit banker. his knowledge affairs the closing the Guardian National Bank of Comwhich with the First National Bank Detroit. did not reopen after the Michigan banking holiday. Street believed it had chance. up Ford's in the Michigan banks declared Wilkin. deplete his working capital that he must deal with or broke think they realized that here the time to finish what they had started. But they were very sadly fooled. Previously in his testimony the ness had startled his hearers with the declaration that $4,000,000 was removed from the two banks before the state-wide holiday was proclaimed February 14. He said two such with drawals were those James Couzens, wife the Michigan senator. and the Second National bank of Texas. He also asserted that many checks had been cleared through the Detroit Continued in Page 6, Column 8.

10. June 27, 1933 Richmond Times-Dispatch Richmond, VA

Article Text

Banker Alleges Wall St. "Plot" Against Ford Heavy Withdrawals Were Made Before Holiday to Tie Up Deposits, Charge DETROIT June 26-(P)-A witness' charge that long-standing Wall Street plot to "strangle" Henry Ford financially lay directly behind the closing of two national banks in Detroit tonight rested in the records of one-man grand jury investigating the city's involved banking afThe charge, the most sensational in two weeks of open testimony, was made by Herbert R. Wilkin. Detroit banker, in detailing his knowledge of affairs leading up to the closing of the Guardian National Bank of Commerce which, with the First National Bank-Detroit, did not reopen after the Michigan banking holiday "Wall Street believed it had chance, by tying up Ford's deposits in the Michigan banks declared Wilkin to so deplete his working capital that he must deal with them

11. June 27, 1933 The Lewiston Daily Sun Lewiston, ME

Article Text

WALL STREET TRIED TO BUST FORD Banker Links Plot with Closing of Two Detroit National Banks Tells of Huge Withdrawal by Wife of Sen. Couzens Before State Bank Holiday Detroit, June 26-(P)-A witness charged today that Wall Street plot to "strangle" Henry Ford lay directly behind the ing National banks in Detroit. The testimony was before grand investigating the involved banking affairs. The charge. the most sensational in weeks open testimony made by Herbert Detroit banker, detailing his of leading the closing Guardian tional Bank with the First National troit, reopen after Michigan banking holiday. "Wall Street believed had tying Ford's deposits declared Wilkin, deplete his working capital that must them broke think they realized that here was the time to finish

12. June 27, 1933 Press of Atlantic City Atlantic City, NJ

Article Text

Charges To 'Strangle' Ford Closed Detroit Banks Banker Declares Wall Street Sought to Tie Magnate's Funds; Claims Couzens' Wife Drew Huge Sum Before Holiday Associated June witness' Street "strangle" Henry National Banks Detroit one-man grand jury investigating charge made Detroit tailing his knowledge affairs leading closing the Guardian Bank Commerce, which, the First tional Bank Detroit, reopen Street had chance, tying Ford's deposits declared Wilkin, deplete his working capital that must them broke think they realized the time finish they had started. But fooled. Previously witness startled his hearers the 000 from the banks before the holiday February He two such withdrawals those Couzens, the Michigan the Second National Bank, Houston, Tex. charge that Wall Ford lay directly behind the closing tonight rested the records the city's involved banking affairs. He also asserted that checks many had been cleared through the troit Clearing House after the bank holiday had been declared the home of Jesse Jones, the Finance He in timony the failure the Guardian National Bank, from which he said the money was obtain the withdrawals, "when the withdrawals made, got the impression weren't going the In testimony, Wilkin said he Jones the bank. but while testifying received from Jones himself Washington, and officials the Houston bank, that the Chairman had connections with the Texas instituttion.

13. July 7, 1933 The Forum Fargo, ND

Article Text

Detroit Bank Situation To Be Parley Subject Detroit, July DeFree Press printed Thursday dispatch from Washington that President Roosevelt has in. structed the Reconstruction Finance corporation solve the banking Detroit and that the way will be paved at meeting Friday in for the of credit facilities throughout the entire "Out of this session, which will be devoted entirely to the Michigan ation," the Free Press said, definite for organization new banks in Detroit, or for the opening the closed First National bank and Guardian National bank of commerce, is expected to emerge."

14. August 1, 1933 The Kalamazoo Gazette Kalamazoo, MI

Article Text

BANK RECEIVERS SEEK ASSESSMENTS DETROIT. ments on the right of federal receivers to collect in the First from National and Guardian National Banks for hearing Tuesday in U. S. district Receivers C. O. Thomas and B. Schram in abey. ance collection pending receipt of instructions from the comptroller of the and also pending disposition of tem restraining collection of the Tuesday's arguments are on that suit.

15. August 2, 1933 Battle Creek Enquirer Battle Creek, MI

Article Text

Senator Forwards Checks Totaling $30,423 to Detroit Closed Banks. Aug. States James Couzens day paid in full assessments against stock held in his wife's name Detroit's closed national banks. Forwarding totaling to Senator Couzens that, although collection of had been restrained by court action. moral One check was in favor receiver for the First for shares stock in the Detroit Co., holding organization for the First National. check for favor Schram. ceiver for the National Bank Commerce. the assessment Mrs. Couzshares stock Guardian Detroit Union Group, Inc., the holding company.

16. August 25, 1933 Lansing State Journal Lansing, MI

Article Text

On Witness In Banking United States Senator Vandencalled the witness stand Friday in the one-man grand jury investigation closing First the Guardian National banks of Detroit.

17. January 4, 1934 Omaha World-Herald Omaha, NE

Article Text

Some Detroit Banks Tipped on Inquiries Washington, D. C., Jan. 3 (AP).—Senate investigators received evidence at the resumption of their inquiry into the Detroit banking collapse today that some institutions in the Guardian Detroit Union Group, Inc., had been given advance notice when national bank examiners were about to inspect their books. This evidence, following closely exhibits purporting to show the Guardian National Bank of Commerce, a member of the group, declared a dividend late in 1932 when doubtful assets alone exceeded the capital, came during questioning of Bert K. Patterson, former executive vice-president of the group.

18. January 11, 1934 Marysville Journal-Tribune Marysville, OH

Article Text

WITNESS SON OF MOTOR TELLS OF FORD MONEY IN DETROIT BANKS. WASHINGTON, Jan. Ford testified today at senate investigation of closed Detroit banks that the Ford Motor Company had $32,500,000 in tinit banks of the Guardian Detroit Union they closed last February. Ford was founder of the group. Ford was to testify garding his part in the group's affairs and large loans advanced to aid the banks. Ford said the company maintained its largest balances in the Guardian National Bank of Commerce and the Union Guardian Trust Company of Detroit. Both closed in the Michigan bank holiday last February 14.

19. February 13, 1934 Battle Creek Enquirer Battle Creek, MI

Article Text

Guardian Bank Issues Notice Within One Day of State's 'Holiday' Anniversary. Detroit, Feb. day the Michigan's momentous bank holiday, official notice was issued today that 13,000 depositors with 000 or less in Guardian National Bank of Commerce when closed, will paid in full through plan believed to be unique banking history. It was just year ago tomorGov. William stock signed proclamation, the the state's bankrequest ordering all bank functions suspended for eight Before that had elapsed, the period bank had spread other states, to be climaxed March mation closing all banks the country.

20. March 21, 1934 Evening Report Lebanon, PA

Article Text

HIGHER BANKING DETROIT. Mich., March 21-(IN S)-Bank receivers are honest men. The receiver for the Guardian Natenal Bank of Detroit spent two cents to mail one-cent dividend check to Mrs. Elsi Wald. She had $2.18 in the bank when it crashed last year.

21. June 29, 1934 The Waterbury Democrat Waterbury, CT

Article Text

Final News Flashes DETROIT BANKERS INDICTED Detroit, June Detroit bankers were indicted by a federal grand jury today in connection with collapse of the First National Bank-Detroit and the Guardian National Bank of Commerce in 1933. All were charged on the counts of making false entries, turning in false reports to the comptroller of the currency, conspiracy to make false entries. The First National Bank-Detroit and the Guardian National Bank of Commerce closed February, 1933, with upwards of $600,000,000 on deposit. They never reopened.

22. August 12, 1934 The Cincinnati Enquirer Cincinnati, OH

Article Text

BANK RECEIVER RESIGNS. Detroit, August Thomas ceiver for the First National Bank, Detroit, was announced today. effective August 15, when B. Schram, receiver for the Guardian National Bank Commerce, will take over Thomas's duties well as his own. Thomas announced he was leaving the Government service become Vice President the First Wisconsin National Bank of Milwaukee.

23. November 6, 1934 Detroit Free Press Detroit, MI

Article Text

Comstock Sued for $4,100 on Note by Bank Receiver Gov. Comstock and The Comstock Lumber together Earl Conway and The McClure Land Co. named defendants suit filed Monday in Federal Court by Schram, receiver The Guardian National Bank of Detroit. Schram seeks collect $4,100 from the defendants on promissory note given Bank Detroit April 28, 1924, with real of Greenfield put as collateral against the note.

24. April 9, 1935 Detroit Free Press Detroit, MI

Article Text

Bank Receiver Expends 2 Pct. Schram Figures Cost on Collection Basis Cost of the First National Bank-Detroit receivership amounts to 1.976 per cent of the cash collected from assets, according to the quarterly statement issued Monday by B. C. Schram, receiver. Cost of the Guardian National Bank of Commerce receivership was set at 2 per cent. Mr. Schram is receiver of both banks.