91301585 9130
national
4590e57d26cdee0bFed/other loan, Full suspension
Clearinghouse involved: Yes (loan, examination, or other measures)
STUDENT FUNDS TIED UP The First National Bank, with de posits $6,000,000 closed today. of Illinois students had their money in the bank. short time later the Commercial Bank Champaign, also pository for University of Illinois funds which many students had was closed by the accounts, rectors. The Commercial had approximately $500,000 sign on the door read: "This bank suspended by reason closing the First National the Bank of Champaign, one of its depositories."
THE URBANA by The Instead structive survive ready funds The blow that has tallen not hurt the bank alone hurt its depositors far and this in turn bring to in the county every person If WC to survive WE must meet the situation and determination The only was to do this is back up the other banks They must not be allowed to be jeopardized for they are now the lite blood of the community and if they to weaken the wreck that would follow would be complete be comprehension We must back up these banks Those have money them must keep it there and those who have withdrawn it must put it back The worst thing that could happen would be for these institutions to meet the unjustified at of the irst National of Champaign They can pull thru easily if the public supports them deter mined that no further calamity of this kind shall happen If we are a set of cowards we will bankrupt ourselves in less than thirty days as things are today No business house IS safe and no man working for wages can expect any sort of employment that pays cash as wages We must save ourselves We must rally around the going solvent banks of Champaign and Urbana If they are to be treated as the First National bank of Chari paign the disaster will be complete This is unthinkable for people in the possession of their senses Malicious gossip did much to break the First National of Cham paign. For several weeks certain vicious minded people have called depositors of the bank over the telephone and advised them to take out their The money bank knew of this but was helpless. Those who were called up in some cases paid no attempt to the dastardly messages, but others more easily frightened hurried to the bank and demanded their Even money tho the bank was in the best of condition it could not pay all its depositors in cash. No bank could do so. The depositors of any bank can cause it to close its doors by all calling for their money at the same time. The banking business is based on the assumption that only a small part of the money left with it on deposit will be demanded of it within a given time. All depositors know this and leave their money with that understanding. In ordinary times this permits the bank to loan out these funds to others and in this way the banking needs of a community are taken care of to the mutual advantage of all. A bank is something more than a safety deposit vault to receive money, lock it up behind a steel door and pay it out on demand. If depositors' money is not to be loaned by the bank to those who are qualified to obtain a credit then there is no occasion for its existence. So it is when the depositors start a run on the bank, it is just like bandits holding it up at the point of a revolver. Anyway it has the same effect. In the case of the bandits, if they can be caught and convicted, they can be hanged, but not SO the depositors, unless they hang themselves. One thing is sure if there is going to be a scramble, most of us will get killed in the rush. If we are so foolish as to despoil our own nest, we must take the dreadful consequences-and they will be dreadful to the most terrifying degree. We must stop this tearing down, we must keep steady the boat and permit no one to rock it any further. We can save ourselves if we will, but we will never do it by destroying the rest of our financial institutions. If that occurs we will be broke and broke for keeps and we can blame no one but ourselves. We must save ourselves from ourselves and we can do it if we only make up our minds to do so. If we falter now it is bankruptcy for an entire community. for no business and no job can servive such a catasrophe. Let us quit ourselves like men and not like cowards. Rally to the flag men. Rally to the flag.
Runs Close 2 Banks In Illinois Towns CHAMPAIGN, Ill., Jan. 18.—(UP)—Two large banks closed their doors today and tied up the accounts upon which hundreds of students depended to carry on their studies at the University of Illinois. The First National Bank, with $5,116,951 in deposits, closed first. It was unable to withstand a week-long run. A short time later the doors of the Commercial Bank of Champaign clanged shut and a sign was posted explaining that "this bank is suspended by reason of the closing of the First National Bank of Champaign, one of its depositors."
Champaign, III., Bank Closed by Directors Champaign, Ill., Jan. The First National Bank of Champaign which listed deposits in the recent bank call at $5,116,951 was voluntarily closed today by its directors. smaller state bank, the Commercial, took similar action Officers of the First National Bank said they hoped to affect reorganization soon.
Runs Close 2 Banks In Illinois Towns CHAMPAIGN, Ill Jan -Two large banks closed their doors today and tied up the accounts upon which hundred of students depended to carry on their studies at the University of Illinois. The First National Bank, with $5,116,951 in deposits, closed first It was unable to withstand a weeklong run A short time later the doors of the Commercial Bank of Champaign clanged shut and a sign was posted explaining that this bank is suspended by reason of the closing of the First National Bank of Champaign, one of its depos-
TWO CHAMPAIGN, ILL., BANKS CLOSE SAME DAY CHAMPAIGN, Ill., Jan. 19 (U.N.).—Two large banks closed their doors Monday and tied up the accounts upon which hundreds of students depended to carry on their studies at the University of Illinois. The First National bank, with $5,116,951 in deposits, closed first. It was unable to withstand a week-long run. A short time later the doors of the Commercial Bank of Champaign closed and a sign was posted explaining that "this bank is suspended by reason of the closing of the First National bank of Champaign, one of its depositors." The Commercial bank had deposits of $388,000.
TWO CHAMPAIGN. ILL., BANKS CLOSE SAME DAY CHAMPAIGN III., Jan 19 (U.N.) Two large banks closed their Monday tied up the accounts which to their studies at the UniThe First National bank with $5.116,951 in deposits. was unable to withstand long run A short later the doors of the Commercial of Champaign and sign was posted that bank by the closing the First bank of Champaign its depositors The Commercial bank had deposits of $388,000.
Illinois Banks Closed III., Jan. 19. (INS)The First National Bank of Champaign, with deposits of more than $60,000,000. failed to open its doors yesterday. It was depository for the University of Illinois. The Commercial bank. depository for the city of Champaign, failed to open yesterday. Deposits were approximately $500,000. sign on the door read: "This bank suspended by reason of the closing of the First National Bank of Champaign, one of its depositories.'
ILLINOIS U. STUDENTS HIT WHEN BANKS CLOSE III., Jan. Two large banks closed their doors today tied up the accounts upon which hundreds students depended carry their studies the University Illinois. The First National bank, with $5,116,951 deposits, closed first. It unable to withstand run. short the doors of the Commercial Champaign clanged sign posted explaining that "this bank suspended reason the closing of the First Bank of Champaign, its depositors.' The bank had deposits of Officials of the university doubted If any would be forced to leave school because of the closings.
TWO CHAMPAIGN, ILL., BANKS CLOSE SAME DAY CHAMPAIGN III. Jan 19 (U.N.) Two large banks closed their Monday and tied up the accounts upon which of students depended to carry their studies at the UniThe First National bank with $5.116,951 in was short later the doors of the Commercial Bank of Champaign closed and sign was posted explaining that this bank is suspended by reason of the closing of the First bank Champaign its The Commercial bank had deposits of $388
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URBANA RECOVERS FROM BANK SCARE All-Week "Business Holiday," to End Hysteria After Closings, Is Canceled by Mayor. By the Associated Press. URBANA. Ill., January 22.-The - allweek "business holiday" proclaimed Tuesday by Mayor R. C. Harmon has been canceled by him because of restored confidence. The mayor announced rescinding of the holiday, which he had instituted to rebuild public sentiment following recent bank closings, after a conference with business and civic leaders. He said that the shutdown of business had brought renewed faith in banks remaining open and that cancellation of the long "holiday" was warranted. Even in Champaign, "just across the street" from Urbana, the business moratorium appeared to have had a good effect. Closing of two banks in Champaign was credited with bringing about the business worry here, but the Chamber of Commerce there today announced plans to reopen the largest of the banks, the First National.
CLEARING HOUSE ACTS TO FORTIFY BANK FUNDS ORDER FIXES DRAWING LIMIT Precautionary Measure Taken to Preserve Existing Sound Condition. Bank Facts The full effect of the Bloomington Clearing House association der limiting withdrawals for hoarding from local banks, may be summarized follows: Funds for the continued operation of normal business be readily paid by all banks. Funds ordinary living penses of individuals, such money for taxes, groceries and rent will also readily paid. Sixty to 90 days notice, cording to the rules of the particular bank, must be given by depositors seeking withdraw their savings for the purpose of hoarding such money. Checking accounts and certificates deposit, all accounts classified "commercial" may be withdrawn in amounts not exceed percent per month the balances of Jan. 21, except that such will not apply withdrawals for payrolls, taxes and other normal purposes. New and additional deposits will not be subjected the rules and will handled foregoing normal routine of bank in the clearing. brief, there will be absosolutely change from mal banking operations they ply legitimate business and sonal needs. Acting to prevent unusual cash withdrawals in the wake of the mors and depositors' hysteria that has forced the closing numof banks Central Illinois the last several weeks, the Bloomington Clearing House association, fective today. invoked in all Bloomington banks the stipulated notice withdrawal savings and limited withdrawdeposits, checking accounts and certificates of deposit to amount not excess of percent per month of present balances Normal banks also The two adopted the clearing house regulation Friday morning. determined This course Thursday night by the Bloomington Clearing House meeting which officers of the six banks this were present. Public confidence the banks, and full approval of the plan evident Friday morning when business of the were interviewed by The Pantagraph, and when bank lobbies were occupied by only normal number of persons, despite the rapidity with was spread. Tax Funds Available. In limiting withdrawals on checking accounts and certificates of deposit an amount not to ceed percent per month on present balances, exception granted for the of funds for payrolls, taxes other legitimate poses" which may determined bank officers helpful to the conduct of ordinary business. In reaching decision, the clearing house adopted resolution by which each bank to guided, and made clear the purpose interfering no with the continued transaction approved and legitimate The will stop only the unnecessary withdrawal of funds for purposes of hoarding. The failure of banks throughout Central Illinois recently, and more particularly the failure the First National bank of Champaign, lowing $150,000 run last which followed closely by the closing of banks Farmer City, and in spread emphasized the necessity for the clearing house association action, was plained. Banks Here Sound. The order of the association taken this time to avoid the possibility of endangering deposits local banks, declared. whose condition in all cases is garded exceptionally While banks have failed closed more than score of instances nearby counties, McLean county has experienced banking record from 1923 until the recent closing Saybrook, Danvers, Leroy and Bloomington tion is looked upon an added measure for protecting the approximately 20 institutions now serving this county. Last statements every Bloomington bank showed
Bank Receiver Sues On Notes Shell R. Smith, as receiver for the First National bank of Champaign today filed the following confessions of judgment in kircuit court: against Mollie Reifsteck, $2,252.17; against Ernest Reifsteck, $5,119.71. and aganst WE E. Weber, $1,598.09. MEETING IS POSTPONED The meeting of the Idle Hour Bridge club, which was scheduled for yesterday afternoon with Mrs. Charles King in her home in Bondville, was postponed until some time next week. The definite day has not been decided upon.
LEGAL NOTICE State of Illinois, County of Champaign. SS. Circuit Court of Champaign County, September Term A. D. 1932. Otis Cawby, P.J. McCarthy, Rache] Harber Hart and Emmory C. Plumley, VS. Thomas D. Wilson, Maude A. Wilson, Nellie Weeks, Shell R. Smith. Receiver of the First National Bank of Champaign, Champaign, Illinois; First Trust and Savings Bank of Bloomington, Illinois, a Corporation and Guy Stanner. Foreclosure No. 9747. The requisite Affidavits for the giving of Notice to Defendants in Chancery cases, by publication hav ing been filed in the office of the Clerk of said Circuit Court of Champaign County, notice is hereby given to each and all of the said defendants that the complainants filed their bill of complaint in said court on the Chancery side thereof, on the 6th day of July A. D. 1932, and that a summons thereupon issued out of said Court against said defendants, returnable on the Third Monday of September A. D. 1932, as is by law required. Which cause is now pending in said Court. Now, unless you the said defendants shall plead, answer or demur to said bill. the same and the matters therein contained will be taken as confessed, and a decree entered against you according to the prayer of said bill. BOYD S. BLAINE, Clerk. EVERETT W. OGLEVEE, DOBBINS & DOBBINS. Complainant's Solicitors. Urbana, Ill., July 6th A. D. 1932.
BOARD THANKS COMPTROLLER'S OFFICE FOR Directors of New Bank Give Out Long-Awaited News in Official Statement The news for which ChampaignUrbana and all Eastern Central Illinois has long waited, is contained in the following official statement of the Board of Directors of the First National Bank in Champaign. It reads: "The Comptroller of the Currency at Washington, D. C., has approved the application to organize the First National Bank in Champaign. "Shell R. Smith, the Comprepresentative in charge of the closed institution was authorized by telegram Thursday night to deliver to officers of the new bank, the necessary documents to be submitted by them to the Comptroller. "The Board of Directors, Friday morning, received the documents, and proceded immediately with the process of setting up the new bank, in accordance with the requirements of the Comptroller. "The first official meeting of the Board of Directors was held Friday morning and the following officers, tentatively (Continued on page 2, column 3)
BUSINESS BRIGHT SPOTS. New York, Aug. again this week, totalling thirteen, against eighteen last week, the American Banker reported. Film corporation added 1,500 workers the payroll studio and officials better business reflects general upturn throughout the Pottsville, Tilt Silk Mills, of the largest country resume operations shortly, after several months idlereported. Brothers, clothing chain, will stores Washington Harrisburg, announced. freight loadings the week ended August 20, totalled cars, gain 618 cars over the preceding week. Champaign, First National Bank many closed Illinois last year, reopened September President Harris announcReorganized, will have same name officials. Hollywood. New indications that definite turn toward nomic recovery has taken place the upward trend apparent theater office receipts, Sam Katz, the Paramount Publix corporation, declared today Katz, arrived here New York, said box offire receipts considered accurate business barometer for several weeks have shown steady increases.
FIRST NATIONAL BANK OF CHAMPAIGN TO REOPEN Champaign, Aug. comptroller of the currency Washington has approved plans for reopening the First National Bank Champaign. Actual reopening the bank expected about Sept. Only minor details worked out. The bank suspended business 1932.
Total Drops Five, Figures Show—Pickup in Fox Film Industry. NEW YORK. (UP). Bank failures were fewer again this week, totaling only thirteen, against eighteen last week, the American Banker reported. CLEVELAND. (UP). Richman Brothers, clothing chain, will open new stores at Washington and Harrisburg, Pa., it was announced. MONTREAL. (UP). Canadian freight carloadings in the week ended Aug. 20 totaled 39,770 cars, a gain of 618 cars over the preceding week. CHAMPAIGN, Ill. (UP). The First National bank of Champaign, one of many closed in Illinois the last year, will be reopened Sept. 1, President N. M. Harris announced. Reorganized, it will have the same name and officials. HOLLYWOOD. (UP). New indications that a definite turn toward economic recovery has taken place is apparent in the upward trend of theater box office receipts, Sam Katz, vice president of the Paramount Publix corporation, declared. Katz, who arrived here from New York, said box office receipts are considered an accurate business barometer and for several weeks have shown steady increases.
First National Bank Of Champaign To Reopen Aug comptroller the currency Washington approved plans for the First National Bank Champaign Actual opening of the Only minor are to be worked out The bank January 18, 1932 Ever hear of anyone an
HOUSE CLERK PUBLISHES NAMES OF BORROWERS OVER PROTEST OF CHAIRMAN BANKS ABSORB BY FAR GREATER PART LOANS Of Borrowers Illinois None Nearer Than None Particularly Large Washington, Oct. Reconstruction Finance corporation loans aggregating August, revealed today in the report of the made public by Clerk corporation the House South Trimble. Previously authorized loans were increased during August by $10,681,010. the report said, making an gregate Published Over Protest The report was made public by Trimble over protest of the finance corporation. Chairman Atlee Pomerene of the corporation on Sept. protested Trimble that publication was interfering with operation the relief project and should be stopped. law does not give me any discretion to withhold these reTrimble answered. In the summary loan operations made public today the aggreof $122,277,641 was divided follows: Classification of Borrowers Banks and trust companies, $85.including $7,773,900 to aid reorganization liquidation of closed banks. Building and loan association, Railroads, including to railroad receivers. Insurance companies, Mortgage loan companies, $2,101,720. Federal land bank, $3,000,000. Joint stock bank, $55,000,000. Agricultural credit corporations, Livestock credit corporations, $2,The number of new loans totaled and during the August period the corporation received 1,151 loan The corporation made available for relief work during August. Out of repayments the corporation allocated $10,000,000 during August to the secretary of agriculture. Illinois Loans The statement loans authorized in August included the following, to Illinois borrowers: (X's denote that no part of the loan had been disbursed up to Sept. Bloomington, American State bank, Bloomington, Liberty State bank, $40,000; the First National bank of Champaign (receiver), $400,000; Chicago, Aetna State bank, two loans, 000 and Austin State bank (two loans), $100,000 and $75,000; State bank, $75,000 and $308,000 (two loans); Halsted Street State bank $126,450; Lawndale National bank (two loans), $75,000 and $50,000; South Chicago Savings bank, Terminal National bank, $130,000; Cicero, First National bank of Cicero, $56,000; DeKalb, DeKalb Trust Savings bank, $81,000; Highland Park, Highland Park State bank LaGrange, State Trust Savings bank, $63,400; Mundelein, State bank Mundelein, $18,000; Oak Park, Avenue State bank, $230,000; Oak Park, Oak Park Trust Savings bank, $240,000; Pekin, the Farmers National bank of Pekin (receiver) five per cent, Pontine, National bank of Pontiac, Rockford, the Rockford National bank (receiver), $400,000 five per cent; West Chicago, West Chicago State bank, $75,000. Building and Loan Associations The following included among the loans to building and loan Illinois: Chicago, Jungman Building Loan Lublin Building Loan (x); Roseland Standard Building Loan Ass'n., $90,000; the Swedish Home Building Ass'n., $42,000; Trigla Building Loan Ass'n., Vytauto Building Loan Ass'n., $35,000; Cicero, West Town Building Loan Ass'n., $30,000.
$122,277,641 MADE PUBLIC Trimble Gives Out Figures of August Transactions in Face of Protests. $85,057,605 TO BANKS Railroads Get $12,798,333; Repayments to Corporation Total $35,241,799. United Washington, Oct. 7.-New Reconstruction Finance Corporation loans aggregating $111,596,631.90 were authorized in August, it was disclosed today in the report of the corporation made public by Clerk of the House South Trimble. Previously authorized loans were increased during August by $10,681,010. the report said, making an aggregate of $122,277,641.90. The report was made public by Trimble over protest of the Finance Corporation. Chairman Atlee Pomerene of the corporation on Sept. 29 protested to Trimble that publication was interfering with operation of the relief project and should be stopped. Explains His Position Trimble issued printed statement explaining his position and saying does not give me any discretion to withhold these reports.' In the summary of loan operations made public today. gregate divided follows: Banks and trust companies, $85.057,605.43. including to aid in reorganization or liquidation of closed Building and loan associations, Railroads, $12,798,383. including to railroad receivers. Insurance companies, $3,708,700. Mortgage companies, $2,101,720. Federal Land Bank, Joint Stock Land Bank, $55.Agricultural credit corporations, Livestock credit corporations, Repaid The number of new loans totaled 1,110 and during the August period the corporation received loan applications. The corporation made $13,931,669 available for relief work during August. Repayments to the corporation during the month of August totaled $35,241,799.47. The corporation allocated $10,000,000 during August to the Secretary of Agriculture. The statement of loans authorized in August included the following: (Asterisks denote that no part of the loan had been disbursed up to Sept. 21.) Alabama: Birmingham, change Bank. Arizona: Phoenix, Valley Bank Trust Company, California Glendale, First Na. tional Bank, $75,000: Huntington City tional Long Beach, Seaside National Bank (receiver) Marysville, Bank, MaFirst National Bank, $27, Pasadena, Citizens. CommerBank, County Trust and Savings Bank, Santa Farmers Merchants Savings Bank, Colorado: Boulder tional Pueblo, Southern Colorado Bank, City Trust Company, West Side Bank, loans, $25,000, $200,000 and Georgia: Valdosta, First National Bank, Falls, Twin Falls Illinois: Bloomington, American State Bank, Liberty State Bank, Champaign, the First National Bank Champaign (receiver), Chi$103,000; Austin State Bank (two loans), and State Bank, $75,000 and (two Halsted Street State Bank, $126,450; Bank (two South Chicago Savings Bank, Terminal National Bank, $130,000 Cicero, First National Bank Cicero, DeKalb, DeKalb Trust Savings Bank, Highland Highland Park State Lagrange State Trust Savings (Continued Following Page)
$122,277,641 LOANS MADE PUBLIC Trimble Gives Out Figures of August Transactions in Face of Protests. $85,057,605 TO BANKS Railroads Get $12,798,333: Repayments to Corporation Total $35,241,799. By United Press Washington, Oct. 7.-New Reconstruction Finance Corporation loans aggregating $111,596,631.90 were authorized in August, it was disclosed today in the report of the corporation made public by Clerk of the House South Trimble. Previously authorized loans were increased during August by $10,681,010. the report said, making an aggregate of $122,277,641.90. The report was made public by Trimble over protest of the Flnance Corporation. Chairman Atlee Pomerone of the corporation on Sept. 29 protested to Trimble that publication was interfering with operation of the relief project and should be stopped. Explains His Position Trimble issued printed statement explaining his position and saying "The law does not give me discretion to withhold these In the summary of loan operations made public today the aggregate of $122,277. was divided as follows: Banks and trust companies. $85.including to aid in reorganization or liquidation of closed banks. Building and loan associations, Railroads, $12,798,383. including $5,696,449 to railroad receivers. Insurance companies, $3,708,700. Mortgage loan companies, Federal Land Bank. $3,000,000. Joint Stock Land Bank, $55.- Agricultural credit corporations, $394,021.62 Livestock credit $35,241,799 Repaid The number of new loans totaled 1,110 and during the August period the corporation received 1,151 loan applications, The corporation made $13,931,669 available for relief work during August. Repayments to the corporation during the of August totaled $35,241,799.47. The corporation allocated $10,000,000 during August to the Secretary of Agriculture. The statement of loans authorized in August included the following: Asterisks denote that no part of the loan had been disbursed up to Sept. 21.) Alabama: Birmingham. Exchange Bank $9.40. Arizona Phoenix, Valley Bank and Trust Company, $280,000. California: Glendale First Na. tional Bank, Huntington Park. Huntington Park City National Bank, Long Beach, Seaside National Bank (receiver) $165,000, per cent.: Marysville, Bank, $40,000 Madera, First National Bank, $27. cial Trust and Savings Bank, $225.000: Monterey County Trust and Savings Bank. Santa Ana, Farmers and Merchants Savings Bank, $84,000. Boulder Na. Southern Colorado Bank. $45,000 Connecticut: Bridgeport, BridgeCity Trust Company, $200. three loans, $25,000. $200,000 and $40,000. Georgia: Valdosta, First National Idaho: Twin Falls, Twin Falls Bank Trust Co., Illinois: Bloomington, American State Bank. $72,450 Bloomington Liberty State Bank, $40,000: Champaign, the First National Bank Champaign (receiver) Aetna State Bank, two loans, $37.000 and $108,000; Austin State Bank (two and $75,000: Cosmopiltan State Bank $75,000 and $308,000 (two loans): Halsted Street State Bank $126.450: National Bank (two loans), $75,000 and South Chicago Savings Bank, $125,000 Terminal National Bank, $130,000 Cicero, First National Bank Cicero, $56,000 DeKalb, DeKalb Trust & Savings Highland Park, Highland Park State Lagrange, Lagrange State Trust & Savings (Continued on Following Page)