The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority M D 3 o o z fa
VS.
/
*£ 7 4
December 24» 1936
Mr* Smead
Mr* Kennedy
Banks whose depositors surrendered
or waived a portion o f th e ir deposits
Complying with your request that the Information re la tin g to banks
whose depositors surrendered or waived a portion o f th e ir deposits fu r
nished by the Federal Reserve banks ia response to le t t e r B-S69 o f January
19, 1933, be reviewed and i f p ossib le summarised fo r the Board’ s informa
tio n , I have- gone through our f i l e s on th is su bject c a r e fu lly , but as you
know the information furnished in response to B-869 was very incomplete,
in many instances the reports were not c le a r , and in other Instances the
reports furnished do not square with other Information we have on f i l e .
the Board* s le t t e r B-869 o f Jaauaiy 19, 1933, provided in part as
follow s!
•In addition to banks actu ally clo se d , which should
be included eith er in the l i s t o f suspended banks or in the
l i s t o f banks closed tinder sp ecia l holidays declared by c i v i l
a u th orities, we should lik e to have a l i s t o f a l l banks which,
during 1932, without actu ally c lo s in g , ( 1 ) obtained agreements
from depositors to waive or surrender a portion o f t h e ir dep osits,
or (2) with or without signed agreements o f d ep ositors, r e s tr ic te d
demand deposit withdrawals in any way or time deposit withdrawals
beyond the terms o f th e ir by-laws* I t is r e a lise d , o f course,
that i t is d i f f i c u l t to obtain complete data with regard to such
banks, but we should lik e to have you submit as complete a l i s t
th ereof as can be prepared from your records* The l i s t should
show, so f a r as p ra ctica b le, the Information ca lle d fo r fcy the
attached form**
The form attached to le t t e r B-869 provided f o r the follow in g in foraation*
F, R. DISTRICT
BASKS WHICH DUPING 1932, WITHOUT ACTUAU*! CLOSING, OBfAIMED DEPOSITORS1 WAIVER
AGREEMENTS, OR WHICH RESTRICTED DEPOSIT WITHDRAWALS
Hame and lo ca tio n o f bank
’ O b ta in e d ~ r T e s iia d """" Time 'deposit
d ep ositors 1
deposit
withdrawals
waiver
withdrawals
r e s tr ic te d
agreements
r e s tr ic te d bsyond terms
....... ........JL*~m.. i?.C..te:!#!!*.,,
E ffe ctiv e
Period during
M A L...-.1 .,-.
♦Either with or without signed agreements o f depositors
^
■
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
Hr* 3m#ad — 2 *
Examples o f th# way in which some o f th* information urns reported ar#
shown on tho attached sheet* I t w ill be notod in the * # ff# ctlv e dute*
column «y#s* was reported In 12 cas#s* Th# word •probably" was reported
In 7 oases* In 14 cases th# date was shown with & question mark a ft# r i t
and In | oasas a#r#ly a question mark was shown* In two eases banks war#
shown with *not known11 In th# data column* In 2 othar oasas banks ware
shorn with "fu rth er information not available* in th# data column and in
numerous oases approximate dat#s w#r# glv#n*
the Cl#v#land d is t r ic t report shows sore than 300 banks as hating
obtained waiver agreements, n#arly a l l o f whioh were obtained only a short
time befor# th# banking holiday, but i t appears that th# banks r#port#d in
th# "waiver,column* were actu ally banks that had d#f#rr#d the withdrawal
o f d#poslts rath#r than banks *hoa# depositors had surr#nd#r#d a portion
o f th a ir deposits# At le a st I hav# ch#ek#d a number o f the m#mb#r banks
included in th# Cleveland d i s t r ic t report against examination reports and
at a l l o f th# bank® that 1 checked th# Examin#r r#port#d that no waiver
hfed been mad#.
In th# r#ply o f th# St* Louis d is t r ic t to l# tt# r B-869
was mad# that)
th# atat#m#nt
•to our knowl#df# no bank in th is d i s t r ic t
obtained dep ositors' walv#r agr##m#nts, without
a ctu a lly c lo s in g .•
However, previous l# tt# r s on f i l # from th# S t, Louis Federal Heaenre bank
raport in cld # n ta lly that c#rtaln nam#d banks obtain#d d ep ositors 1 waivers*
I t appears (assuming the Cl#v#land d i s t r ic t r#port Is inaccurate) that
deposit walv#rs w#r# more common in th# Chicago F#d#ral Beserv# d i s t r ic t than
In any other d is tr ic t,. In that d i s t r ic t 98 banks w#r# lis t # d in th# r#ports
fum lsh#d in r#sponse to l# tt# r B-369* In 62 cas#s a l l o f th# information
call#d fo r by th# form was given* I s the other cases th# Information r#port#d
was not cl# a r, in fa ot I t i s im possible In a numb#r o f instano#s to t # l l from
th# r#ports wh#ther there was a waiver o f deposit# or nhether the data in th#
•waiv#r* column was int#nd#d to r#f#r to th# *d#f#rm#nt* column. Th# Chicago
d is t r ic t r#port Is attached*
Ev#n in the cas#s wh#ro a l l o f th# information ca lle d fo r in le t t e r B-869
was reported there i s no in d ication as to th# amount o f deposits waiv#d, and
i t s#ems to m# that such information i s vary Important i f banks whos# depositors
have waived deposits are to b# considered in connection with bank suspension
s ta tis tic s *
In view o f the fa ct that the information reported in response to B-869
was incomplete and as i t appears that there were a number o f inaccuracies in
the reports* I suggest that we writ# no memorandum to the Board on the
basis o f the information already on hand, but that i f additional Information
is la te r obtained on the subject that we then prepare a nummary fo r the Board*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority M D 3 o o z fc
Ssr.ral
o f th* w
ajr in tfiloh inforutlon n i raportad (in response
i o B-869 o f January 19, 1933) regarding banks whoa* depositors
waived a portion o f th e ir dep osits.
Name and lo c a tio n o f bank
Obtained depositors*
. j& t it ju B B m t t f t t
E ffe ctiv e date
F irst Hational Bank
Union City Hational Bank
F irst National Bank
Cayuga, Ind,
Union C ity , Iowa
C linton, Ind.
Yes
Yes
le s
F irs t Peoples State Bank
F irst National Bank
F irst National Bank
Traverse C ity, Iowa
Dana, lnd«
Manistee, Iowa
le s
le s
le s
Citi*ena State Bank
F irs t Nattdnal Bank
K. H. Nixon & C o.’ s Bank
Newport, Ind.
Plymouth, Iowa
Newport, Ind.
le s
Yes
le s
P erry sv ille Bank
F irst National Bank
Amfcrioan State Bank
P e rx y sv ille , Ind,
B u ssla v lile , Ind.
S t. Bernice, Ind.
le s
le s
le s
American National Bank
Farmers Savings Bank
KLgin State Bank
A rlington, Iowa
Clernont, Iowa
I lg ln , Iowa
Probably
Probably
Probably
C itisens State Bank
F irs t National Bank
Maynard Savings Bank
Hawkeye, Iowa
Hawkeye, Iowa
Maynard, Iowa
Probably
Probably
Probably
State Bcrik o f
West Union, Iowa
Probably
F irs t National Bank
Farmers Savings Bank
Farmers State Bank
McGregor, Iowa
Garber, Iowa
G arnavillo, Iowa
Feb. a f
Feb, a f
Feb. a t
Garnavillo Savings Bank
Clayton County State Bank
Guttenburg State Bank
G am avlllo, Iowa
Guttenburg, Iowa
Guttenburg, Iowa
Feb. a 1
Feb. 2 ?
Feb. 2 I
L ittle p o r t Savings Bank
Luana Savings Bank
Stats Bank o f McGregor
L it tle p o r t, Iowa
kuana, Iowa
McGregor, lova
Feb. a f
Feb. 2 I
Feb. 2 *
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority V)NlD3oozk
2 *****
Hama and loca tion o f bank
Obtained d ep ositors 1
J ia l?«ra * re e »e n ts
E ffe ctiv e data
Faraara State Bank
Monona Stata Bank
Farmara Stata Bank
Monona, Iowa
Mononaf Iowa
S t. O la f, Iowa
Fab. 2 f
Fab. 2 f
Fab. 2 ?
Bank o f Laka Laalanan
Laalanan County Bank
Laka Laalanan, Iova
Northport* lova
Apr. 6 f
Apr. 6 t
Paoplaa National Bank
F irst National Bank
National Exchange Bank
Bronson, lova
Wilaon, ff, C.
Waston, f . ? a .
f
I
t
Tha Bloonburg Stat# Bank
m m r n Stata Bank
Bloonburg, Taxaa
McAllen, Taxaa
Not knovn
Not knovn
G itlssns National Bank
Brownwood, Taxaa
F irs t Stata Bank
Rochester, Taxaa
Further information
not available
Furthar Information
not available
City National Bank
Dixon National Bank
Dixon, 111#
Dixon| 111*
P rior to August 17
P rior to August 17
F irst National Baak
F irs t national Bank
Bakarton, Pa*
Spanglar, Fa,
Somatiaa during 1932
Sonatlaa during 1932
This file contained a transcript of a copyright-protected article that has been removed.
The citation for the original is:
"South Carolina Upheld on State Bank Law." The Journal of Commerce, December 5, 1933.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlKD3oQ2fc
W
,
1 1 )
October 2 $ , 1936
Mr. omead
i-"''
Mr. Horbett
Vision of Bank Operations File
Pursuant to our conversation a couple of weeks ago, t asked Mr. Sweet
of the Federal Reserve Baak of Chicago whether, upon his return to Chicago,
he would ascertain to what extent the federal Beserre bank had records avail
able with respect to the trailer or surrender of a portion of deposits by
depositors of aeaber and. nonaeaber banks* In order to illustrate the kind,
of information in which we were interested, I gave 'him a copy of the at
tached proposed table and extract from the proposed letter. Mr* Kennedy
and I told Mr* Sweet that we did not want any compilations made at this
tiae but siaply wanted to learn inforaially to what extent the desired in
formation was now available at the Federal Eeserve bank with respect to
national banks, State bank members and nonaeaber banks*
I understood from Mr* Sweet that he would let ae know about the
matter shortly after his return to Chicago. Mr* Garlock asked m last
Saturday what progress we had made in obtaining the material. I told
hia that we had informally asked a representative of a federal Beserve
bank to let us know what was available and that upon receipt of this
information we would decide whether or not we would request the Federal
Reserve banks to make any compilation. Not having heard from Mr. Sweet
X dropped hia a note about the matter, copy attached, and you will note
from his reply that they have written to the five State banking departauints in the district for the purpose of ascertaining whether their
records are in such shape that the Information may be collected from
them without much difficulty. Since the State banking departments have
not actually been requested to furnish the data, I see no harm in merely
asking then what is available* However, the Federal Reserve bank went
beyond any suggestion that we aiade here to & r* Sweet| we tried to aake
clear that at this time we simply wanted to know what was available at
the Federal Reserve bank.
7
Attachments
jm /rn b
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
c
0
p
T
October 24# 1036
Mr. John L. frwjwt
D ivision o f Ses#aroh
Federal Reserve Bank o f Chicago
Chicago, I l l i n o i s
Dear Mr# Sweett
The question has been raised again as t o whether we are
l i v e ly t o be able t o o o lle o t any sa tis fa cto ry information at th is
time with respect to waivers o f deposits at national and State
banks, both before the banking holiday as w ell as incident to re
organisation follow in g the banking holiday.
Quite lik e ly you
accumulated such H l i s t o f questions on your v i s t i t here that you
have been unable to fin d time as yet t o look in to th is matter#
I
sh all appreciate it* however, i f you w ill drop me a note as to
whether you have had an opportunity to look Into i t and, i f so, whether
any appreciable amount o f work would be involved in assembling the
available data*
Very tru ly yours
lo r b e t t , Ass’ t* C hief,
D ivision o f Ba**k Operations*
;/ I z-'
F ile copy in ^ * 8^
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlU P3oQ2b
V
/
February 22, 1953#
MMOWmXM:
Mr. Stevens called me on the telephone
first conversation, he stated that he had wired the Governor last night quot
ing the proclamation issued by the Govern
^
_
;ion, he stated,
"threw a bombshell” into the situation and created considerable confusion,
because the first part of the proclamation ordered the banks to open up
io morrow, and the latter part continued the holiday*
Furthermore, the
proclamation provided that the out of town correspondents of the Detroit
banks in Michigan should be permitted to draw against their reserve bal
ances with the Detroit institutions.
According to Mr. Stevens, the general impression is that the
proclamation was the result of pressure from the out of Detroit banks*
The Detroit Clearing House Association, he stated, had a meeting last
night and considered the matter in all its aspedts.
They decided to refuse
to pemit withdrawals by correspondent banks against reserve balances, ex
cept on the same basis that other withdrawals are permitted, because of the
danger of creating preferences.
statement
#1
The Association issiBd the following
ich appeared in the Detroit papers this morning:
*We commend the Governor upon his decis ion to eont inue the
bank holiday for the protection of all depositors until national
and state legislation can clarify the situation.
The Detroit
Clearing House banks will make no further distribution for the
time being, but will operate their holiday functions as during
the past week.
Everything possible will be done under the
aulhority of the present law to lighten the inconvenience to
the
public.**
^
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
-2-
Mr. Stevms said that the First National group is still consider
ing the possibility of creating a new institution and that it is now await
ing a definite answer from the R. F. C. as to What it will do.
In the
meantime, the Guardian seems to be going around in circles and apparently
has reached no definite conclusion*
In my second conversation with Mr. Stevens, he stated that the
First National^Jeotip this morning had a meeting with some of its larger
depositors and that he understands that these depositors very willingly
agreed to go along on the proposal to create a new bank.
Stevens what this meant.
I asked Mr.
He replied that it meant that the depositor®
were willing to contribute to the capital of the new institution*
The
First National group is still, he stated, waiting for some reply from the
R* F. C. as to what that organization will do*
Mr* Stevens had luncheon with 5 or
Guardian Trust Company*
6
of the directors of the
They knew what the First National Group was
planning to do, and apparently felt that the Guardian Trust Company should
take similar action*
When they left the luncheon they stated that they
were going to get the Board of Directors of the Guardian together this
afternoon with the view of working out some definite and concrete plan
for the creation of a new institution.
I asked Mr* Stevens whether the people in Detroit are counting
on anything from the F. R* Bsnk of Chicago.
He replied that the 1* R*
Bank had informed them that they could not make a loan under section 10*
Reproduced from the Unclassified I Declassified Holdings of the National A rchives
DECLASSIFIED
Authority V lU D 3002b
- s -
of the F. R. Act, and that nothing further had come up about the matter.
I told him that I understood the other day from Mr* McKay that the Bank
had made a commitment to take approxinately $5,000,000 of eligible paper
from the First National, and inquired whether this commitment is still
outstanding*
He stated that he supposed it was still good.
The First
National, he stated has very little eligible paper, but he called attention
to the fact that the F. R. Bank of Chicago already has taken a large amount
of Governments from it.
The Guardian Trust Company, according to Mr.
Stevens, has practically no eligible paper#
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority V)UP3oQ2fc.
."
FEDERAL RESERVE BOARD
Lf 7
WASHINGTON
|
A D D R E S S O FFICIAL. C O R R E S P O N D E N C E T O
T H E FEDERAL. R E S E R V E B O A R D
February
b-6 7 6
SUBJECT:
1933
Monthly reports of bank holidays
Deer Sir:
It has been the custom to ask each Federal reserve bank by te le gram, around the middle of each month, for © l i s t of the holidays to
be observed during the following month by the bank and by each o f it s
branches ( i f any).
The information thus obtained has been transmitted
to a l l Federal reserve banks in a circular le t t e r , with advice as to
which Federal reserve banks and branches would be closed and Would not,
therefore, particip ate in the G-old Settlement Fund and Federal Reserve
Note clearings.
I t has also been the custom^ in connection with the
compilation of the monthly statement o f debits to individual accounts*
to obtain sim ilar information ft*om the Federal reserve agents at the
beginning of each year with respect to holidays observed in each state
around the beginning and end o f each month.
In order that the information for the above purposes may be
supplied regularly and withou| special reouest,
i t w ill be appreciated
I f hereafter you ^ i l l mail t© tfe,e Board, not la te r than the fifte e n th
o f each month, a l i s t of a ll holidays, scheduled to be observed by banks
in your d is tr ic t in the following calendar month, giving the day, date,
******
*9
Reproduced from the Unclassified I Declassified Holdings of the National Archives
d e c l a s s if ie d
’*■
Authority DND a o o z t
-
2
-
and. nature of the holiday, end. the states or cities in viiich it is to
he observed..
In the case of holidays to be observed by banks in Fed
eral reserve bank or branch cities, please indicate in each case
whether the Federal reserve bank or branch itself will be closed.
The
Board should be advised, promptly by telegraph, of any additional holi
days that sre declared after the submission of the original report,
except special or nmoratorium” holidays proclaimed by civil authorities
/or the purpose of enabling banks to reorganize or obtain depositors'
waiver and/or deferment agreements, which are to be reported by Federal
reserve agents in accordance ^ith the provisions of the sixth para
graph of our letter of January 19, 1931.
It ^ill also be appreciated
ifistatements covering the months of January and February, 1933, are
mailed to the Board promptly upon the receipt of this letter.
Very truly yours,
Chester Morrill,
Secretary.
TO ALL GOVERNORS EXCEPT ST. LOUIS —
special letter to St. Louis
— — 3gw—
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
I"
Authority M ND aotgfa
\
FEDERAL RESERVE BOARD
WASHINGTON
A D D R E S S O FFICIAL, C O R R E S P O N D E N C E T O
T H E FEDERAL. R E S E R V E B O A R D
January
19,
1933
b-86 9
SUBJECT:
Bank suspensions during 1932
Dear Sir:
It will “
be appreciated if you will kindly have the number
of banks shown for your district in the attached preliminary
statements of bank suspensions and reopenings during 1932 checked
against your records, s.nd advise us whether or not they are in
agreement therewith.
If any differences are found, kindly give
the name, location, capital and deposits of each bank that should
be added to or eliminated from the statements.
The names of the
banks included in the inclosed summary tables m^y be ascertained
by referring to the lists of banks suspended end reopened, fur
nished you each month for checking purposes, as the summary is
based on such monthly statements, after taking into account the
corrections that are also shown therein.
The deposit figures for State banks, as given in the tables,
include preliminary data for December in the case of most of
such banks, and accordingly will be revised upon receipt of
additional reports on form St. 6386b.
If, however, the deposit
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority tlM Daoozfc
-
2
-
figures for any state in your district, as shown in the attached
statement, differ materially from corresponding figures compiled by
your bank, it will be appreciated if you will furnish us a state
ment showing the deposits of each suspended State bank in the
State.
The deposit figures for national banks, in accordance
with the arrangement described in our letter 3-701 of March
1932, were furnished by the Comptroller's office.
In compiling the Board*s statistics of bank suspensions it
has been our policy to include every bank closed either tempo
rarily or permanently on account of financial difficulties,
whether on a so-called moratorium basis or otherwise, unless
the closing was under a special bank holiday declared by civil
authorities.
If a bank closed under a special holiday declared
by civil authorities and remained closed only during such holi
day or part thereof, it has not been included rath bank suspen
sions in our records.
In order, however, that there may be no
doubt that the record for 1332 corresponds with this policy,
it is requested that the monthly lists of bank suspensions during
1932 be checked in this respect.
On the b a s is o f the data subm itted in resp on se to our t e l e
gram o f November 3» 1932, TRAFS I
52H,
the a tta ch ed l i s t has been
p rep a red o f banks in your d i s t r i c t that c lo s e d during the p e r io d
( o r p a r t t h e r e o f) o f a s p e c ia l h o lid a y d e c la r e d by c i v i l a u t h o r i-
(3-S69)
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority vW Pacczfe,
- 3 ties, and it will "be appreciated if this list is checked against
the records of your bank.
It will be noted that in a number of
instances some of the data Called for in the attached statement
are not shown, and it is hoped that you will he able to supply
the missing data in the case of each bank.
/
In addition to banks actually closed, which should be
included either in the list of suspended banks or in the list
of banks closed under special holidays declared by civil author
ities, we should like to have a list of all banks which, during
19 32 , without actually closing, (1) obtained agreements from
depositors to waive or surrender a portion of their deposits,
or (2) with or without signed agreements of depositors, restricted
demand deposit withdrawals in any way or time deposit withdrawals
beyond the terms of their by-laws.
It is realized, of course,
that it is difficult to obtain complete data with regard to such
banks, but we should like to have you submit as complete a list,
thereof as can be prepared from your records.
The list should
show, so far as practicable, the information called for by the
attached form.
It will be appreciated if in the future you will furnish
the Board wire advice of all banks closed under special holidays
declared by civil authorities, as well as of suspensions and re
openings.
Telegrams reporting bank suspensions should contain
the word ‘’suspended11 and the date of suspension, and telegrams
reporting banks closed under special holidays declared by civil
(B -S
69)
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
-
1+
a o te f o
-
authorities should contain the term "special holiday,” the date
of closing, and the dates of the beginning and ending of the
holiday.
Any extensions of the periods of such holidays should
also be reported to the Board.
In case a bank reported as having
closed under a special holiday is later taken over by the "bank
ing department, it should, of course, be reported as having
suspended.
It is also requested that you furnish the Board
with a monthly report, in the same form as requested herein
for the year
1932 »
giving such information as may be available
with regard to banks which during the month, without actually
closing, obtained depositors' waiver agreements, or which, with
or without signed agreements of depositors, restricted demand
deposit withdrawals in any way or time deposit withdrawals
beyond the terms of their by-laws.
As it is proposed to publish final figures on bank sus
pensions, for the year
1932 ,
in the forthcoming February issue
of the Federal Reserve Bulletin, it will be appreciated if you
will advise us as early as convenient of any necessary changes
in the figures shown in the attached statements of bank suspen
sions and reopenings.
Very truly yours,
E, J,, Smead, Chief,
Division of Bank Operations.
Inclosures.
(B-i
TO P. B. AGISTS AT SAH FRAHCISCO AND CHICAGO —
KANSAS CITY, inclusive
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
f . H. DISTRICT
BANKS WHICH DURING 1932, WITHOUT ACTUALLY CLOSING, OBTAINED DEPOSITORS’ WAIVER
AGREEMENTS, OR WHICH RESTRICTED DEPOSIT WITHDRAWALS
Nsune and location of bank:
Ob tained
Demand
Time deposit
deposit
depositors*
withdrawals
waiver
withdrawals restricted
agreements restricted beyond terms
of by-laws*
Effective
period during
which effective
d&te
♦Either with or without signed agreements of depositors.
(B -S o S )
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority HKDaoczfe
i l l 0
Form No. 181
r t C
C
FEDERAL RESERVE
'
v/ince
C o r r e s p o n d e n c e
To
Mr. Smeaid_________________
From _
Mr. H orbett_________ '
f
January 17 ,19 3 3
B0ARD
Subject;
Banks operating tinder a
__________ moratorium_____________
I f the le t t e r to the Federal reserve agents i s amended to include banks
which r e s t r ic ^ deposit withdrawals beyond the t e r m s b y - l a w s without
obtaining the coneent o f the dep ositors, i t w ill be necessary to add a
number o f banks to the l i s t s already prepared f o r transmission to the
agents.
The number, however, is not very large^ except perhaps in the
Chicago d is t r ic t where, as I have frequently emphasised, i t is u tte rly
im possible to determine from Chicago »s report ju s t how to c la s s ify the
banks.
Fcrr this reason I have not even attempted to make a c la s s ific a tio n
in the Chicago d i s t r ic t , f e l l i n g that nothing that I might do would give
you a better Idea o f the chaotic sta te o f Chicago’ s report than an ex
amination o f the report i t s e l f .
In the case o f the other d is t r ic t s , the
banks that wSS*-have to be added i f you fin a lly do decide to amend the
le t t e r are as fo llo w s :
D is t r ic t 1
Written n otice on savings deposits, 60 days - 18 months
Berlin National Bank
City National Bank
Berlin Savings Bank & Tr.
City Savings Bank
F id elity Savings Bank
B erlin, N. H.
M
Co.
B
11
11
D is t r ic t 3
Gos»4$ or u n o ffic ia l information that some banks have lim ited with
drawals, but no l i s t o f such banks was furnished.
D is tr ic t h
Checking account withdrawals lim ited to 5 per cent per month
F irst National Bank
F irst American Bank
Fleming, Ky.
Wilmore, Ky.
_
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority tlMD 3 0 0 2 b
Mr. Smead - #2
District No. 5
i
ln the case of this district the correspondence indicates that you
authorized the Federal reserve agent to confine his report to member bariks.
Do you think, in view of this, that the Federal reserve agent, in response
to the present letter will again confine his report to member banks7* If
! District
so, we will
G fof course he unable to furnish any reasonably complete# statistics
I \ on the subject.
Banks restricted cash withdrawals for a time
First National Bank
Peoples Bank
First National Bank
First National Bank
Bristol, Tenn.
Biloxi, Miss.
11
Waynesboro, Miss.
Limited withdrawals to 20 per cent under a special provision of State law
Punta Gorda State Bank
Bank of La Belle
Lee County Bank & Trust Co.
Ft. Pierce Bank
Exchange Bank
Bank of Everglades
Farmers Bank
Punta Gorda, Fla.
Fort Myers, Fla.
H Pierce, Fla.
Tallahassee, Fla.
Vero Beach, Fla.
Restricted time deposits in accordance with required notes, and restricted
amount withdrawable on demand deposits
Kentwood Bank
Kentwood, La.
Amite Bank & Trust Co.
Amite, La.
Independence Bank & Trust Co. Independence, La
Hammond State Bank & Trust Co. Hammond, La.
Citizens National Bank
11
Merchants & Famrers Bank & Tr.Co., Ponchatoula, La.
Ponchatoula Bank and Trust Co,
H
Livingston Bank
Denham Springs, La.
Albany Branch Livingston Bank Albany, La.
Districts No. 8-12
No banks to be added.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
/ttoaaigr K
m. M
Saaks operating undsr
Mr. florbott
Attaohsd hsrste l i
y I$
,%{
^
moratorlm or telid^r plan.
a
draft of a latter on bank noratorla which 1
you will want It so out at won as praotisabls*
•
'
£hs difficulty that w
e hars liad In trying to draft sonsthlng on
X
/
1933
.
ths eufejact lias fc
sandu*f 2 bsllsvs* to tbs fast that «• bars bsen trying
to dselds what *erar policy iheuld bs with rsspect to statistical presentation
i
of His data bsfor* w
# actually knsww
hat ths data would ahow# Ifosrs senbs
llttls qosstlon that* fromH
is standpoint sf dopeaitore, ths offset of ths
reorganisation sf a bankunder * moratorium ©
r holiday plan Is aaaontially
ths sans as In ths cass of a reopening following stupeneion sr raesirerahlp.
Shat being tn«i It would appsar offhand that His raoratorla baak statlstlss
shouldbs soH
hlxisdwith thoss rslatlng to auqpsndsdbanks* but hers «s sa~
counter ths difficulty that It Is just shout liq>oeslble «M»^jp*sient — to
obtain doflnito Infoitetlsn on ths aofeject, net only ulth respect to stats
banks* but sfin as to national banks about whl& ths TvdsraX ^ser** Syetsn
certainly 0U
8$tt to knew*
under ths elrM
KstanssSf It sssas to m
s that ths onJy llns of dosurcation that senperb|§e bs obssrrsd‘a#cbotwe«n
banks that cloas inci-
dsnt to a special holiday, and thoss Hist doea^f by action sf boards of
directors sr stqpsrrlsory «atfce*itiss without su
cha holiday.
9ssnsr or latsr
It may bs dsslrshls to mblns nernterlun statistics with thoa* of suspsnslons*
but
ahsthst or nst that will star bs dim
s it certainly appoara clear that wo
should gather whatever information can bs sbtalnsd with respact to s
JL|, closings*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
r
Authority VlWD3oozb
Hr, SMaA - #2
Mm iwpMfljPtoflftt thing
to
kopt
1& slad^ lisw iifi
S'ldinl Booorvo Bank of CttLeago cannot
nation with
it
ro«poct
ftt* othor
dlatrleto,
tlaoo ao aaay
in
all
that
tho
of
to 1hu&aorateria,
you toXophoao
oithor
Mr,
dieBeoo of ofata&ssi&g tho
during ahlcfti
no «n
fact that thoro
flfH
M
ratiT^g o& tho BOfAtoFiw pXaa
fh* othor district*
conbinod*
Storoao
in that
or Mr. TMg and find
oloood* iftiothoar
tho
" to a heXidajr, *nd tho T)0c 1ttti1 tic
In
diitPiol
wold
got
doting
ttdlac datoo st holiday.
as
ouggoot
out ahat aro
oonoirnofl^
.v
■/I
trying
InfoN
fp ia f to fco 10
fhSm fcolag 1am*# I
ammo of aonnMoAHMf
oatfh l^anV rinnnlTiort
that i f tfco
obtain fairly satlofaetorlljr
than Iiwro is
I t y!«» of tho
i#
tho
poriod
nag inoldoat
Reproduced from the Unclassified / Declassified Holdings o f the National Archives
~
I
DECLASSIFIED
Authority DMDaoozfc
K 1933
DOST VBtm StirTSnSt
vilh Has Board's circular lattsr B~
In
o f this dal%
„ths lists inolossd HssrewiHit o f banks that opar&tod on * moratortiai basis
Aspittt 1912. do set* in His rmss of ywif d litriol. coyst Bttatiwtow basks*
fnsiswih as tbs data fmitfhod by ymi ia rasponso to tho Board’ s tolagrmn
of Wf'eribsE 1 * W^2« inoladsd ra lf santnanr flj&xras dlth rosnoot to XMraMsaKxwt
b a te, Toar rooords doafetloss show His anass o f His nsMnfeor talcs in<yi»>a*rt |n |gg|» saavaavy,
i t is* tharsfors* rsqissstod that ytm furnish
His m i information will* rospoot to sack noawsntosr bank as is showi (or
far) with raspset to nsstMii* bastes. so that us atff datarnins In sash
oass (I) itoathar His M
only during
a
actually sospsodsd* (2) whothsr it m i closad
soaeial holiday poriod, or ( 3 ) #*sthar it rsergttiissdt ob-
tsSnsd dspositors® agrsosMsitSf ot©*§ without actually oloslsg*
It is rsalissA that*
das to tbs difficulty of obtaining information
^th rsspset to His dosing
of sash bonks, yera, wyr nst at this Has ham
soffioisnt data to psss&t of * dsflaits groupingof His M e»# It will Ini
spproeiatsd, how
o
ra, if you«U! ra«k* thobast growing that
in Hmlight of H
ss infossatlfm
can bs aads
that fS£ mm haws andfimisfc tts with a
pralia&nary statsasnt* to bofbllowod l&tar by a st(*ts»s»t giving daflxiito
intonation in His oass ofHsoss banks for stsi<&that is aot now available*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
I”
Authority VlUDaoozfc
m £m
differ B&tartally from corresponding figures co*pilsd by yavot bank, it will
be appreciated if you will etll ftlUnlloii to the diffmoet aad furnish a
statem
ent show
ing tho denosits of «a«b suspendedbank tot the state as efrrm
by ym t rooordo* ftm dsposit figures for national banks, ia accordance with
th* arraa^saont d*»erlb«d ia tho Board*a letter B
-7D1 of M
arch k* 1^32. w
ore
fornlshodby the Comptroller*# office*
fhe Board*# £a lists of bade sospsnsloashaw
s aot included, o
ofor ao
io kaow
n» banks that closed to dopooitoro ooo result of ths declaration of
a special holiday by eiril aathorltie# andrem
ained closed only dorlag mtli
period (or a part thereof), unless suchbank# w
oreplaced in charge of sapor▼
leery authorities before tha aspiration of the period* la order, betiw,
that tharo nay boao doubt oa M« poiat* It io requestedthat thoaonthly
lioto of bank ottflpeooloao during 1932 bo checked ia thio respect*
4 Hot haobomprepared of banka closed ao a reoolt of andonly during
thoporied (or opart thoroof) of * special holiday, baoodoa Iho data sofcaittad in roapoaoo to tho Board*0 telegraa of W
oTeafcor 3# 1932* flABS 152^#
4 oopyof thio Hot coloring your district 1# iaoloood for cheeking* It io
aloo requested that tho Information oallod for by thoboahooding#* ^lh re
spect to tho daratioa of Iho holiday andof ths bank*# closing, boobtoiaod
and furnished tholoavd if aot olroady afaow
a.
la addition, a list haobaoaprepared of baaka reported la rospoaoo to
tho Board*o telagraa of W
o
w
esib
er 3, 1$52*
00 hawing operatedunder som
eform
of ffloratorfaa* with respect to w
hioh tha asailahlo information does not
clearly (1) whether tho bonka actually suspended, (2) Mother they vers elosed
oaly during a foetal holiday period, or tf& (3 ) whether thoy reorganised,
obtained depositors agreenente, etc., without actually closiag. In tho —
m
*
Reproduced from the Unclassified / Declassified H oldings of the National Archives
DECLASSIFIED
r
-
Authority VlUDaoozfc.
J*
m jJ «*
of mmsh of these beaks, It will be appreciated i f you will obtain aad robmit
tha following informations
Wae mholiday declared hy Hit civ il authorities?
If so9 giwo durations Froa
So
_ _ _ _ _ _ _ _ _ _
( 2) Waa tin lo k closed to dip«4 ^ * at any time?
If to, give data of dosing
_ _ _
11 ■ reswaption o f iMi&cse _
tmMpmki taken ov«r by saportiooiy banting authorities?,
If so# gi?« data on iiidh taken o**r _ _
(U) ifdiJtoaBk taken
A'
ou r by «adU>«r institution?,^
If so* by whan taken over and dato
In viaw o f tha suRterous closings of banks ineidant to qpocially daclared holidays, tha Board*s statistics of jai|g^s*piif «»* reopeniM ara
—-2P-c9
loug«rTftiriy>r«prosentati^ Aji*ftwn |wutl
4-^a K
Shis sitnationr
to farther aggravated by tha fact that waiver agreements ara often obtained
firm depositors without any actual dosing o f tho bank, though soch agree
ments, in sons respect*, haws tho same affact on depositors a* i f tho baak
had suspended, Although it appears impracticable to obtain definite and
complete Infom atin with respect to banka closed ia connection with specially
declared holidays or banks reorganised without closing, duo to tho fact that
banking authorities ofton aro not aware of tha facto or hare not takan officia l
cofrnixance thereof, it is believed ioporta&t to collect idi&tM data can bo
obtained with respect to sod* banks. It Is* therefore, revested that as soon
as practicable after tho end of each month, beginning with Janaary 1933* 7°®-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
'1
DECLASSIFIED
Authority WMD 3 0 0 2 k
/
tamXtStk tba Boardwil& * Hat of all banks clotad to depositors during Hi*
nonth m
i a revolt of andoaljr during
period (or a part tharaof) of a
•pacial holiday doclarad%
g
r otwil ntiurlUM, togathsr with a Hat of tasks
eloaadundar stub dreantaaeaa «kicfa rasmod operations darloc
nnath*
Is tho eaaa of aaal* bank tbs raport tfkooldgift tbs fesglxm
iB
g « i anding data*
of tho holiday period andof any m a u l w i tharoof^
^
H it ia propoasd to jn«U«b final figaros onbank aoapsnslons* for tbs
jraar 1932* In tho forthcom
ing Pabroary issosKof Um Fodsral Htwrn Bulletin,
It will bo qppraelatod if yonwill oall attsntlon* as aarly as oonvaniaat,
to w
ayssosss&
vy G
hangas in IMefigsras Aow
n in tbs attached •tataoanta of
<>fm <MfJI s*SSpSS&ttgS*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
f
Authority MNP
3002b
>4jrtrt«» 1 —
BatUn
Bins CLOSE) DTOITO 1932 US A KSSULT 07 AHD OH1T DOEIHQ tKI PBUOD
(01 a ?am vsm or) or a spboul s s h u t dwsaksd bt c im aothoritixs
!?*»• «*A loeation of bank
6aps
i i M i i « f boltfiaar......
Of
FJPGB
fo
I
Data
IwbbJe
cl owft
Bata teak
r tw id
operation*
ftoa*
BARKS HJP0RTJD AS HATXBB QPSAfD TWDKB A MOBATOMBM, WITH KXSPSCf 10
which AUDiTioKAi mromcmox is dwihkd.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority
1st
OfficeCorresponuence
FEDERAL RESERVE
BOARD
if 7
Date ¥ovember 3Qt193g
T o ______ Mr^ Horbett
Subject; Banka operating on a moratorium
From ......Mr.
Mr. Kennedy
Kennedy
________ basis______________________
2—
8495
I have gone o v e r the r e p l i e s subm itted by the v a rio u s fe d e r a l
r e s e r v e agents to th e Board*s T1AHS w ire 152*1 reg a rd in g banks o p e ra tin g
on a moratorium b a s is and have c l a s s i f i e d th ose banks w hich w ere r e
p o r te d to have stopped -paying d e p o s it s f o r any p e r io d , a ^ fo llo w s :
(A
l i s t i s a tta ch ed h e r e to )
http://fraser.stlouisfed.org/
Federal
Reserve Bank of St. Louis
L
1 . Banks c lo s e d as a r e s u lt o f p u b lic p rocla m a tion by s ta te
o r l o c a l a u th o r ity and n o t in B o a r d 's bank su sp en sion
record s.
— --------- —--------------- ----------— ----------2 . Banks c lo s e d on own accou n t and n ot in B oa rd 's bank
SU I# 1U JDVBL1V--9 WBUIB, OU.OJJC7JUBAVii iOWOlUB,
Baziks c lo s e d as a r e s u lt o f p u b lic p rocla m a tion by s ta te
o r l o c a l a u th o r ity and In clu ded in Board1* Dank suspensions
record s,
......
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
BANKS CLOSED AS RESULT OF BJBLIC PROCLAMATION BY STATE OR LOCAL AUTHORITY AM)
NOT I3ST BOARD'S BANK SUSPENSION RSCORDS
(In many,instances there are "banks in the cities where holidays have
heen declared that have not heen reported to the Board as having
taken advantage of the holiday. Those banks are listed in paren
theses)
District No 1
First National Bank
(Busey’s State Bank)
Urbana
111.
7-day
holiday
Aurora National Bank
Merchants National Bank
Old Second National Bank
First National Bank
(Broadway Trust Company)-
Auro ra
11 1 .
5-day
tt
ti
holiday
H
n
ti
it
ti
ti
ti
Citizens National Bank
Chicago Heights 111.
(First Natl. Bank & Tr. Co.)
7 -day
First National Bank
Fonda
Iowa
Holiday for waivers
Citizens National Bank
(Franklin Co. State Bank)
(Robinson Brothers Bank)
Hampton
Iowa
First National Bank
(Iowa State Bank)
Hull
Iowa
Iowa Falls
Iowa
First National Bank
(American Tr. & Svgs. Bank)
(LeMars Loan & Trust Co.)
(LeMars Savings Bank)
LeMars
Iowa
Holiday for waivers
First National Bank
(Farmers Savings Bank)
(First Tr. & Svgs. Bank)
Remsen
Iowa
Holiday for waivers
^ First National Bank
(Peoples Tr. & Svgs. Bk.)
(Security Svgs. Bank)
(State National Bank)
District No.
Central Missouri Trust Co.
First National Bank
Exchange National Bank
Cole County Bank
Jefferson City Mo.
"
w
11
holiday
Holiday for waivers
8
Feb. 15 to Feb. 23
H
M
11
Reproduced from the Unclassified / Declassified Holdings o f the National Archives
DECLASSIFIED
Authority
-
- '
2
BANKS CLOSED AS RESULT OF PUBLIC PROCLAMATION BY STATS OR LOCAL AUTHORITY AND
NOT IN BOAHD'S B A M SUSPENSION RECORDS (CONT‘D)
District No.
8
- (Cont*d)
Farmers and Merchants Bank
Hermann Savings Bank
peoples Bank
Hermann
Wentzville Bank
Wentzville
Mo.
July 22 to Aug. 22
ti
n
ii
ii
Mo.
Sept.
Minn.
June 13 for 3 days
6
to Oct. 7
District No. 9
Harmony State Bank
Peoples State Bank
First National Bank
Harmony
National Bank of Dodge County
National Farmers Bank
Kasson
Citizens & Security Natl. Bank
(Farmers-Merchants State Bank)
St. James
Minn.
Oct. 10-13 and l k
First National Bank
(State Bank of Ceylon)
Ceylon
Minn.
July 9 to July IS
Colo.
(Jan. 25 to Feb. 1
(Sept. 28 to Oct. 3
ii
ti
H
ii
Minn.
H
Oct. 10 for 1 week
ti
District No. 10
Monte Yista Bk. & Tr. Co.
Wallace State Bank
Mohte Vista
First State Bank
Hotchkiss
Colo.
Jan. 27 to Feb. 1
Yampa Valley Bank
Hayden
Colo.
Feb. 15 to Feb. 22
Oct. 3 to Oct. 17
Extended to Nov. 1
Extended to Dec. 1
30 day (from about
Oct. 13)
ii
District No. 12
Twin Falls Bk. & Tr. Co.
Twin Falls
Idaho
Inter-Mountain State Bank
Cascade
Idaho
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority M D 3 6 0 2 k
BAMS CLOSED AS RESULT OF PUBLIC PROCLAMATION BY STATE OR LOCAL AUTHORITY AND
HOT IF BOARD'S B A M SUSPENSION RECORDS (Cont«d)
District No.
12
(Cont'd)
First Inland National Bank
Pendleton,
Oregon
Oct. 18 to Oct. 29
Extended to Nov. 10
Extended to Dec. 1
Meupin State Bank
Maupin
Oregon
Oct. 21 to Oct. 31
Extended to Nov. 9
Extended to Nov. 23
Extended to Dec. 2^
Eastern Oregon Banking Co.
Shaniko
Oregon
Oct. 21 to Oct. 31
Extended to Nov. 15
Extended to Nov. 30
First National Bank
The Dalles
Oregon
Oct. 21 to Oct. 31
Extended to Nov. 15
Extended to Nov. 30
Arlington National Bank
Arlington
Oregon
Oct. 2k to Nov. 12
Extended to Nov. 30
First National Bank
Farmers & Stockgrowers Nat. Bank
Heppner
H
Oregon
H
Oct. 27 to Nov. 25
Nov. 1 to Nov. 26
First National Bank
Condon
Carson Valley Bank
Carson City
Nev,
Henderson Banking Company
First National Bank
Elko
Elko
Nev,
H
Churchill County, Bank
Reno National Bank
Bank of Nevada Sav. & Tr. Co(
Riverside Bank
United Nevada Bank
rst National Bank)
Fallon
R©no
Nev,
Bank of Sparks
Tonopah Banking Co.
ti
ti
ii
H
Sparks
Tonopah
Virginia City Bank
Virginia City
Wells State Bank
Wells
Oct. 29 to Nov. 27
Nov. 1 to Nov. 12
Extended to Nov. 26
Extended to Dec. IS
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
-
k
-
BAMS CLOSED AS RESULT OF PUBLIC PROCLAMATION BY STATS OR LOCAL AUTHORITY AND
NOT IN BOARD'S B A M SUSPENSION RECORDS (Cont’d)
District No. 12 -(Cont 'd)
First National Bank
Winnemucca
Nev.
Battle Mountain Bank
Battle Mountain Nev.
Farmers Bank,.
Minden
Nev.
Nov. 1 to Nov. 12,
extended to Nov. 26,
extended to Dec. 8
“
11
M
H
"
M
(Reopened Nov. 4)
BANKS CLOSED ON OWN ACCOUNT AND NOT IN BOARD'S BANK SUSPENSION RECORDS
District No. 7
First National Bank
Quincy, Mich.
HSuspended for waivers Reopened"
District No. 9
Citizens National Bank
Faribault
(Faribault State Bank & Tr. Co.)
(Security National Bank & Trust Co.)
Minn.
Oct. 29 to Nov. 3
MANNER IN WHICH CLOSING WAS BROUGHT ABOUT UNKNOWN
(Banks not in Board's bank suspension record)
District No.
8
First Bank & Trust Company
Macon
Mo.
Aug. 19 to Oct.
Bank of St. Peters
Bank of St. Paul
St. Peters
St. Paul
Mo.
Mo.
Sept. 19 to Oct.
Sept. 19 to act.
11
11
Bank of O'Fallon
O'Fallon
Mo.
Sept. 19 to Oct.
11
Farmers Bank
Treloar
Mo.
Sept. 27 to Oct. 19
Marthasville Bank
Marthasville
Mo.
Sept. 27 to Oct. 19
11
Reproduced from the Unclassified / Declassified Holdings o f the National Archives
~
r
DECLASSIFIED
Authority DKD aoozfe
manner ih which c l o s i n g ttas bhought
ab o o t
umknoto
(Banks not in Board's "bank suspension record)
District Ho. 10
Rio Grande State Bank
Del Norte
Colo.
Jan. 25 to Feb. 1
Farmers & Merchants Bank
Elmo
Mo.
Aug. 22 to Sept. 1
BANKS CLOSED AS RESULT OF PUBLIC PROCLAMATION BY STATE OR LOCAL AUTHORITY
AND INCLUDED IN THE BOARD'S BANK SUSPENSION RECORDS
DISTRICT NO.
Bank of Eldorado Springs
8
Eldorado Springs
Oct. 20
n
District No. 12
Bank of Kimberly
Kimberly
Idaho
(Telegram from San Francisco under date of
November 10 states that this bank was taken over
by State Banking Department for liquidation and
was therefore included as a suspension)
Oct. 3 to Oct. 17,
extended 2 dr 3 days;
extended to Nov. 7»
extended to Nov. 15
Reproduced from the Unclassified I Declassified Holdings ot the National Archives
DECLASSIFIED
Authority tiH D a o o z t,
FOJ-mfeNO.181
OfficeCorrespoituence
FEDERAL RESERVE
board'
Date__November l 6 , 1932.
SubjectBarika. operating on a moratorium ,
b a sis, included and not included
________ In Hsuapgnsiont< flg-qr.es_________ _
T o__i__Mr. Sinead
From —Mr. Horhett
2— 8495
I n many ca s e s we cannot determ in e, from th e in fo rm a tio n r e p o r t e d b y th e
F ed eral r e s e r v e a g en ts, whether banks o p e r a t in g on a m ora toria b a s is were
a c t u a lly c lo s e d to d e p o s ito r s d u rin g any p e r io d o f tim e.
F o llo w in g , how ever,
a re t y p ic a l in s ta n c e s where th e in fo r m a tio n in d ic a t e s q u ite c l e a r l y that d e
p o s it o r s c o u ld not withdraw any p a rt o f t h e ir d e p o s it s f o r some p e r io d o f
time:
'
SP1CIAL “HOLIDAY11 OR 11MORATORIUM1* DECLARED BY LOCAL AUTHORITIES
A . Banks not in c lu d e d in B o a r d s fig u r e s o f su sp e n s io n s .
(1 ) More than on e bank in town.
J e f f e r s o n C it y , M is s o u r i, D i s t r i c t No .
e s ta te and two
n a tio n a l banks, the o n ly banks i n town^ one week mora
toriu m ; during moratorium the 2 hation& l banks c o n s o lid a te d ;
o r i g i n a l l y r e p o rte d by S t . L ou is as s u sp en sion s, but r e
moved upon r e c e ip t o f fu r th e r d a ta .
Hermann, M ^ss^gri^ d i s t r i c t N o. 8 ; 3 s t a t e ban ks, the on ly
banks i n town; 1 month moratorium; d u rin g moratorium de
p o s i t o r s made w aiver and deferment agreem en ts.
A u rora, I l l i n o i s , d i s t r i c t N o. 7» ^ n a tio n a l and 1 s t a t e bank;
the o n ly banks i n town; 5 day m oratorium .
(2 ) Only one bank in town.
W e n t s v ille , M is s o u r i, d i s t r i c t Ho. 8 ; 1 s ta te bank; 1 month
m oratorium ; c o n d itio n s o f resum ption not known.
Fonda, Iow a, d i s t r i c t No. 7; 1 n a tio n a l bafjk; “h o lid a y f o r
w aiver
f f n i
-in
gi.») m
*
7;
rmr rftrhn4*tr ™»TrTrsrw
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlMDaflOZb
Mr. Sinead - #2
B . Included in Board1a suspension figures
(1) Only one bank in town.
11 Dorado Springs, Missouri, district No.
length of moratorium not known.
8;
1 state 'bank,
Knowles, Oklahoma, district No, 10; 1 state "bank; at the time
we included this in our suspension figures, we had no in
formation that a holiday initiated the closing of the bank.
NO REPORT OS* SPECIAL ’’HOLIDAY1* OR “MORATORIUM1’
BankB not Included in Board’s figures of suspensions.
(1) Only one hank in town,
District No.
8
—
Macon, Mo.
St. peters, Mo.
St. Paul , Mo .
0 ’Fallon, Mo.
Marthasvilie, Mo.
Treloar, Mo.
District No. 7 —
Quincy, Michigan; “suspended for waivers —
reopened”
B. Included in Board’s suspension figures.
(1) Only one hank in town.
MiIlford, Mi chigen; district No. ?!
1
state member.
Three Rivers, Michigan; district No. 71 1 national bank:
STATS-UPS HOLIDAY
Nevada is the only state in which a special state-wide holiday has been
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority tlM D aoozfe
el/ // s'
Mr. Sinead - #3
declared.
Of the 2b banks in Nevada (9 national and 17 state), 11 banks
\
did not take advantage of the holiday proclamation.
did not take advantage of the proclamation,
6
Of the 11 banks that
were national and
5
state
institutions . Of the 15 banks tlsfc did take advantage of the moratorium,
2 national and 10 state banks constituted the Wingfield chain.
Hone of the Nevada banks have been included in the Board’s figures
of bank suspensions.
TJbe proclamation provided for a suspension of all
"debt payments for a period of
12
days. Newspaper reports indicate that
there has been an extension of the holiday.____________________
As stated in ny memorandum of JSfovember 12, the state of Michigan has
provided for the operation of banks under “custodianship.*1 Under this
provision, if depositors holding S5 p®r cent of the bank's deposits join
in apian restricting the withdrawal of deposits or providing for the
reorganisation of the bank or the establishment of a new bank, the courts
are empowered to put sudi an agreement into effect upon petition of the
banking commissioner and after a hearing.
Provision is also made for the
appointment of a receiver to liquidate sudi assets as may be set aside for
the benefit of dissenting d epo sitors .
The “stabilisation11 scheme provided for by an amendment to the
Wisconsin banking law is substantially similar to the Michigan custodian
schemer except that the bank continues to operate under its own manage
ment and no special provision is made for dissenting depositors.
Reproduced from the Unclassified / Declassified Holdings o f the National Archives
DECLASSIFIED
r
.
Authority
Sevesfeer lU# 1932
Weak* operating on a aeraterlsa
Mr. ftsssd
Mr. Horbett
^ 1 Q ,2 »
*•«**
(0 rig . sent to M r.Morrill & Mr.Harrieon
11-15-32)
A report has Just been received froa the Assistant federal Im rrt Agent
at St. Louis on ths above subject* and following ie a •aaasfjr of that report
to a^pplffMmt ay aeaorandua of Xowasher I f.
thirteen banka In the 8th Federal reserve district with depoelte
of
112,508,000, all of thea In Missouri, have operated on a aoratorisa baeie at
eoae
tls e
during
th e
present
present Has, including
nonmeriber hanks
w ith
y e a r o r a re o p e r a tin g
2 n a t io n a l
depoelte
on
hanks with depoelte
euak
a basis
a t th e
o f 15*530*000
and
11
o f 1 6 *978*000.
In the ease of 3 of the 13 fceaks* agreeaents were obtained fmm the do*
poeltors for the waiver of part of the depoelte and the reetrlcted withdrawal
of the reaainder, and In 1 other ease 1fee aeraterlsa was declared for the
purpooe of obtain!^ dspoeltore* agreerrente to lla it depoelt withdrawals. In
the regaining lnetansee the hanks stopped resolving and paying deposits for a
period of tlae*, but the conditions under which operatlone were resuaed have
not been reported.
I n 2 e l t ie s th e r e p o r t s p e c i f i c a l l y e ta te e th a t h o lld e y p ro c la m a tio n s were ^
le e r e d b y l o c a l a u t h o r it ie e —
a©n t h .
I n th e r e a a ln li * c i t i e s
v l l l e , 0*f a l l e n m d f r e l o a r —
J e f f o r eon C i t y f o r 8 d a ys and H e rsan n f o r I
—* Maoon,
f e n t s v ill e # S t . P e t e r e , M a rth a e -
no in f o r a a t i o n i s
^ r e l i a b l e a t preeem t as to
how the a o r a t o r l a were i n i t i a l e d .
Cheeke reset wed by the federal reeerve hank# on hanks operating under
aoratorla were cent oat for collection and r e a it t a n c o in the
usual
manner*
and upon their return were eent hack to the federel reeerve bank1* endoreers
with the reported reaeon for non-payaent.
JIH/fce
-
Reproduced from the Unclassified / Declassified Holdings o f the National Archives
DECLASSIFIED
Authority
M7
Moveraber
Hr* Seerad
1 2 , 1932
Banks operating on ft moratorium
Mr. Hoifceit
basts
m m m uk
A t o t a l o f £29 bank® In the Chicago F ederal r e s e r v e d i s t r i c t and XOb in
t ig h t o t h e r d i e t r l c t s have been op erated under some for® o f iBoratorlum d arin g
the present y e a r , sad mo*t o f them are s t i l l o p e ra tin g on th a t b asis,, a cco rd
in g to In form a tion subm itted by th e fe d e r a l r e s e r r e agen ts In r e t poise© to our
telegram o f lo v e ib e r 3*
Hfc tu d i banks were rep o rte d In the l e e Tortc and
P h ila d e lp h ia d i s t r i c t s * aad no r e o o r t has as y e t been r e c e iv e d f o r th *
S t.
tou t« d i s t r i c t .
Included in the total of 935 bank* »re 172 national banks.
bank members and $08 nonm«feer banks.
95
state
These figures do not, of osurse, include
banks tts&t suspended operations and later, i raidant to reopening obtained
depositors* a^reenent» of waiver and/or dafarment. Such arrangements are
common in connection with rnopenli^rs.
Aral lab le statistic# by district* and states are shown in m accompany ~
inf table.
tame* of Msratorla.
Du* to the dif ficulty of obtaining specific and
official Information on this subject* particularly with respect to notmmmber banks* it Is quite probable that In some districts acre banks are operat
ing under tome form of moratorium than the Federal reserve agents have re
ported.
For example, the Assistant federal reserve agent at Minneapolis
states they have been advised there are approximately 30 state banks in Minne
sota and qalte a number Is South Dakota, Wisconsin aad Michigan on a aora»
toriura basis, with reepeet to *fcicb no Information is as yet available.
On the other hand, the available information also Indicates that in some
cases the moratorium Mounts to no more than «c forcing the requirement that
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority tim>
'■
3002b
BT • wM0tMS> ** w®*’
« r i U « i aot lea ba flv a a la a&vaaca o f tha vl tbdraval o f titta dapoalta.
A ll o f tha *o ra to ri«a plana p w vl4a for Cl) tha dafarmant o r raatricta d
withdrawal o f dapoalta, o r ( 2 ) tho valvar o r aurraadar o f part o f th* da
poalta, or (3) totfe iafarwant and valvar.
Th* afraammta by dapoaltora fo r
dafarawint and/or v i l i t r ara coawoaly praaafad on plan* o f raortaxdsatton,
iacVudln*; adtfaatmanta la o a p ita l a tm etw a amoli aa raduotlon o f oapital atock,
contribution* bp dlraetora, and aaaaaasanta upon atoddaoldar*.
Tbara la
probably a p rovialoa gaaarally t r tha aaraatriotad withdrawal o f saw dap oa lta. bat tha report* i® not oovar thta point axaapt In a vary fav la-*
ataaeaa.
Jun ta&toatloa o f tha varloaa ahadaa o f *oratorli*a plaaa way ba
had fmm tha fo llo v t a s tabulation fo r tha Chicago fadaral r#a#rf* dl s t r i c t *
ahara tha bf©k voratorlu » la noat ooraon.
Iwebar o f
iwabT banka
*X*» af ■MMtorlt1'
1. All tepo.lt *1tfadr.nl * r.itrlct.4
2. T l«a dapoalt withdrawal a raatrlotad
3 . Tlaa dapoalt withdrawal* p« m it t ad oal* oa la fa l notlcaa
5 . f l * a dapoalt withdrawal• par*idt tad oaly oa la fa l aotlaaa
and. dasaand dapoalt a raatrlotad
5 * flaia dapoalt idthdra»*la aot p a ia ltta d , otbara ra a trlo ta d
b . Plaa aot kaowa
Mt
33
Z2
U
3
71
Total aaaftar baaia ©paratint undar aoratorta
*17$
Santo ar o f aoaaambar
oadar moratorla
(C la a *lfica tion o f tjrpa o f noratoria aot rapofta d)
b^O
..............
fatal
53
829
•Includaa 3$ *aaabar bcnka that vara raportad to 'tha fadaral taaarva Sard
aa "anapaedad** althar at tha tia a o f tha m mt&Hw*' or la ta r.
I t v l l l ba aotad that la 32 laataneaa, la tha Chloago d la t r lo t , t&m
availabla lnfonaatloii 1 adleataa that tha noratorlna ooaalata oaljr la r a fiulrln^ that tha agraad v rltta a notloa ba gfvaa la advama o f tha vitlt~
drawal of t l« a dapoalta«
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
Mr. Sinead * #3
!xt the other d i s t r i c t s , *fcere the moratorlua is not m
common, the Inter-
wation reported does not p*r*dt o f a d e ta ile d c la s s ific a t io n as to types o f
s » r a to r ia .
Fellow lnf are the fewtrnl type* o f • oratorl* ia saeh d is t r ic t * ;
tw In P tiH lil
tibmte
9 m laapsh ire ~~ Ti*e deposit withdrawal* r e s t r ic te d
5
ei«T«l«nd Plitrlot
Kentucky — A ll deposit withdrawal# r e s t r ic te d
n A «m * i l i l r t f l
north Carolina —* A ll deposit withdrawal* re stricte d
le s t Y irflfila — Deferment o f tia a d ep osits; baak agreed,
however, to advance *u f Hcle&t fund* to
. "
pay l « x « i oa priwate property.
3
I
I
Mllffill Illlg& f*
Florida — A ll depoelt withdrawal* r e s tr ic te d to 2 0 fo r
90 diys
T
Louisiana — f l e e deposit withdrawals peiKitted only o c
written not loot and demand deposit wi th
drawal* r e s t r ic te d .
tflsslssip p i ~~ A ll dep osit withdrawals r e s tr ic te d
S
3
fenasssee — A ll deposit wlthdranals r«s t r io ted
1
Mitrtrt
South Dakota — «*iwer o f partloa o f dep osits and r e s tr ic te d
withdrawal* o f remainder
1
Minnesota —
D itto
A ll deposit withdrawals r e str ic te d
3
fl m unknown
9
V isaaasii — A ll deposit withdrawals r e s t r ic te d
J
1
CAtw o ia trlg t
Colorado — Deferswmt o f deposit withdrawals
5
Oklahoma — Bafament o f deposit withdrawals
2
Hiasouri - - flam unknown
1
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority D N P ao tttfc
Hr. S
mmA -
Busbar
OC.tffiBlH.
P a l l - D itfr lq t
fexas — All deposit withdrawals restricted
21
Halver of » portion of deposits, and restriction
on althiraaals of remaining deposit*
I
sw> rrancliOQ DUtrtct
Idaho —
Banks d o t e d by -proclamation of lo c a l author! tie s
in order to work out plana under which thqr as*qr
restne operation*
Oregon —
3
9&nkt closed by proclamation of local amthorltles
In order to work out pinna undar ^hich they m
ay
&
resume operation*
fevada.
lank* closed by proclamation o f Acting Governor
la order to work out plana undar ah id* they « a y
resua* o p e r a t io n *
Matted# by «hld>
boretort*
w
bra adit «t>oat.
15
Althon#i> It 1 . dlaturt«d
banking conditions that naoaasltata taoratorla, they a ra 4 a tt£ a ta * la various
way*.
In at I east three a tat e#^ fo r «ar«Mplat the woratorlum b «a b#*» provided
fo r by sp ecia l le g is la t io n .
F lorida,
fh «*e state* ar# Michigan* ft * « o n * l» and.
In LoaUlana advant aga ha* been taken of an old at atata,
A b r ie f
stat«aant of these provisions o f state banking law* folio**:
Michigan,
An aot passed at a special *a«*loa of the 1932 atata legislature
provide* for the operation of bank* under “custodianship.*
Under this pro
vision, If depositor* holding S3 per cent of tha bank** deposit* Join in a
plan restricting tba withdrawal of depot it s or providing for the reorganisa
tion of the bank o r the establishment of a new bank* the courts are empowered
to put su& an agreement int© effect upon p e titio n of tha banking ooanlafttoxM*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
r
Authority
Mr. Sa»8d - #5
aad aft«r * fcaarin$,
ProwisioB is also a&da for the #ppolntv#nt o f * ra-
oaivar to liquldata such assats as oejr b« sat asid* for th# banaflt o f
dls santlng dapositore.
I ls o a n a ln .
2 3 0 .0 ? ,
9 r t r » e t fr o ® banking law , May 1* 193^* o h a p t«r 220* paragraph
*Wh0m r*r th# c o n R ls s to n s r o f ban king, w ith a viaw to s t a b i l i s i n g
and r# a 4 3 w tin & the banking • tr a c to r * o f any bank, a h u ll appro* # a atabl I l
l a t i o n and raad^nstmant agr«ww&*nt ant#rad tut© b#tw#*n audb bank a?nd th*
d a p o s ito r s and uasac\ir*d e r s d f t o r s o f »odh barit *Mefe s h a ll rap rascmt e ig h ty
p #r oanfc o f th# aaount o f d e p o s it s and uxwaeorad c r e d i t s o f nmh bunk, th#n
i n such c a s # , a l l o t h « r d a p o s ito r s and uasaowrad c r e d i t o r s s h a ll b « b a ld to
ba subj a ct to such sta bl l i s a t ion and rsadjnstmiirit agraaswnt t o th# sam# # * t#nt and san# a f f a c t **s i f thay had Jotnad in. # x «c u tio n th a r* o f* and tfc a lr
cl&iass s h a ll ba tra a ta d In a l l r a s p a c ts as i f thay had jo i n e d In tha
e x e cu tio n o f such s t a b i l i s a t i o n and rto d jw ta u m t agraiasaat .*
F lo r id a . fh a F lo r id a t s g i s l a t u r « o f 1331 an&ctad in t o a l a * a st&tut#
*fc«raby a at at# bank* i n th# «v#nt i t sansas a rnn, can appl y to tha
OoM ptrollar o f th e S lu t# o f F lo r id a f o r p erm ission to l l a d t d e p o s it w ith
drawals to cOf o f #*ch a c c o u n t . for a p e r io d of
f^nlttlantt..
90 days'.
Tha Coa® i» wiener o f S ta ta Banka f o r torn! s i ana a d v isa d tha
Fadaral t# # # rr a 'B»nk o f A tla n ta that on May
9,
1932* nina bank* in th a
straw berry a u ction o f th at s t a t a av al la d th # a # a lves o f tha p r o id t lo n o f
S e c tio n l b , paragraph
fo r
1902,
1,
o f Act 179 o f th# General Assembly o f L ou isia n a
r e s t r i c t i n g th # pagrn«nt o f d e p o s i t s .
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
T
Authority M D 3 0 0 2 k
Mr. Satefid - #b
tn mmjt casa* tha jaoratorla ara »racadad by tha proclanatloa of epaclal
holiday*. Only lnJAvadfti
aror, o f tba
2o
bas bha holiday
hcw sror*
banka ia £#*«&»«
11
did not
boan
stata alda, Ho*r~
ink® m&rmtmgm
of th« procla
mation* aad o f tSi# 1 5 bank® tbat did taka advantaga of tha moratorium, IS
constituted tha flagfiald
d h a la .
A
stat went lssuad by tbo Acting Governor
of t'avada at tba tl*® tba holiday waa daclarod contalnad tho following:
•$y proclamation I hava Just declared a buslnass and banking holiday
to., aad Including tba 1 2 tb day of $bT<sttb*r, 193 £• Iftr raaaon for «o 60 ln£ lo
tbo conviction tbat bust not*, baafea * baak dapoaltor* and tha antlra paoplo
of flba Stata of lavada w ill bo boot protootod by ibis action*
*1b.il 9 totsa o f 0o r baak* ara not to b o eon *ld *r*d no oth orw loa than
sound l a a l l -p a rtio a la rt # tb o s a o f o a r banking 1 a a t it a llo w s whlcfc hava
p a r t ic u la r ly supper t o d o a r a g r ic u lt u r a l ln t o r o o t o ara n a tu r a lly aoat
•trloualy af footod by tbo oollapaa ia oHoas of sgricoltural product* which
eccurrod about tbraa yw«ro a§o.
•Only Tory slight raooToiy ia each prlcas bas boon raallsad and la tbo
saaatlsa, and bafora tb# prloa col laps*** , aaoaptloaally advaraa cllaatic
conditions bava furtfear dootxoyod tb# a b ility of tba 1 1 to stock raisars and
fisrwir* to raduoa thalr obligations to tba banka,
"In fact, tbaao banks, la tba bops of carrying ovar to a parted of battar
conditions, bava baaa obitgod to w©ko fortbor advancas* largaly for labor,
fa*d and taxaa.
• A lla this aas $pi®g on, tha pufelio* sttb tbair inoomas raducad, hava
ba«a obi I f ad to u tilis e thair rsscaroaa, rsprasantad by bank deposits. This
has 000 a olaarly axaapH f lad la tha iln g flald chain of banks*
*Agrlc«lt«ra balag oar ohlof sourca of lacoma, a ll otfear baalaass in tba
Stata is , o f court#, oorlooaly affaotad by thasa
conditions.
*Tba situation ha* at last baan roachad abora tba afeova oondltioso can
no lo»«ar ba aat by ordinary banking amtbod#, without raor sanitation. I t
has bacow# naeaaoary to c a ll upon tbo public to understand tba probla® and
to unit# In as affort to aolva I t .*
Tha proclamation o f a apaclal holiday by ssunlcipal autborltlaa Is a
vaiy oowaoit way of In itia tin g raoratorl a.
A record of tbo d tla s In ahld*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority tlM D aotefo
H r , Swe&d - #
such proclassations ha*# tak«*i plaoo* so fa r #o reported, i t fi voa h*>low
A tl.rt. Hl»triot
fi$na»sboro» Miss.
Bristol* ?#&&•
ChlnM, Dlitrlct
Aurora* 1 1 1 .
Ch»»palg», I I I .
Chicago Wai£itt9 111.
arbaoa, H I.
Snwptoii# Io*a
(Durst ion cf holiday » o t r*port*d)
M tto
FI** d&y holiday
Sovap day holiday
mtto
Ditto
Holiday fo r aaivar
lu ll, Io*a
D itto
Ion* Falls* Iowa
Ditto
LoUars, l&wm
Ditto
Hintson, Iowa
Ditto
district
1 rnrnony. S*l»».
Thr*« day holiday
lassoa. Minn,
S#v#tt
11
*
St, Janott linn.
Ta©
*
*
ftqr'loB, Mlan.
Ml130
*
11
l?.a»a» City BUtrtet
Momto Vis tii, Oolo ,
$1 * day h o lid a y i s J&m 1932*
f i v e d$gr h o lid a y i n s e p t .
1932
Dal Sort** Solo,
Six day h olldisy in la ® , 1912;
n ? « day h o lid a y i n S e p t. 1932
Sotetekiss, Colo.
31* d$y h o lid a y
Hayden* C olo.
$ov«n d&y h o lid a y
Xnowlaa* Okln,
(D u ra tion o f h o lid a y not r e p o r t ad)
3n rrangHoo Slrtrlflt
iim borly* Idaho
About 1 - 1 /2 month h o lid a y (in c lu d in g a x to n a lo n i)
Tain fa lls* Idaho
D itto
Catcads, Idaho
T h ir ty day h o lid a y
pondlstosi, Oro.
fwenty-four day holiday (including cactoaalom)
Waupin, Oro.
T»enty
*
*
“
•
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority HUP 3002b
H r . SM aA - #8
g»a U n a B f M BUttrtl (Cont'a)
flhantko* O r o .
T w e n ty -* in day h o lid a y ( l a c l a d i n g a x to n o lo n )
Th o B a l i a s . O r*
M tio
A r l i n g t o n , O r*
foontjr day h o l l d v (lo clu d ia e oxtonaion)
lo p p n o r , O r*
Thirty
Condon* O r # ,
*
11
«
*
mtt#
In ttftmr o t h u r easos tho aoratori a aoro prcclalaod pu blioly iay Individual
bo|ks o r b y groups o f banks* s h i l a i a s t i l l othar inotaaooo th o
motmtertwm
was tho r e s u l t Amply o f sotion by tho Individual bonks o r croups o f banka
without p u b lic anaoaaaosont.
S\*ch a ctio n , sliothor p u b licly a&noan&ad o r not,
i s ofton taken aftor th o bank has* oUt*#r o v crn i£ it or ovar * wssk-ead.
oh t a t nod a§ro«®#ats f i * » depositors fbr tho' doforw ont a n d /o r a a lv o r o f do*
pool to • i . o « , wltnout any ooosmtlon o f operations daring rogalar honking
b oors,
In othor eoooo tho uoratoriiso s la p ly takoo th* fo r * o f a honk
d a d d in g to aoo it o own jodgsmnt o « to tho conditions a n d o r i& ldi It w i l l
p e m i t tho ol thdraaal o f doposlts* without obtaining « n y ograotiont* fires*
doposltoro,
Q »ll—t l» M ter
r — « tt« t a i n o f 1*»— tomm oa w o r » t a i f tanlw.
the fodoral rooorvo bunks roport th a t sfeon th«y roeaivo lt # n » dr aim ©a
■oratorio* banka, suefe 1 toao are aost ou t f o r o o llo c tio n and T^o& tti& c* In
tho asmal «ay aad, I f totm m od unpaid, th o fo d orol rooorvo batika aond ths*
back to th slr aadoraa** id th tho r e p o r t e d reason f o r nonpayment, except
that in tho c o s e o f th o C olorado banka* Items received bar th o Federal Be•err* Bank o f Xenons City wore roturnod to endorsers w ith advice th a t th o r e s
pective banks wore In a p e r io d o f mvm%*vlm9 oad th o tflesoorl and Oklahoma
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
r
Authority
Ifir, Snead - #9
state beaks were r«ovtd fro® the oar li * t as *oon aa the federal teserve
.Bank learned that items *ere not being p&id currently.
flMBHftJ..f f i C T . t . o f Interest la th is connection
are certain comment* mad* by the federal reservs agent* in transmitting
the information on this * ubjset» as follow*:
M s m - A i i ijg tu
*fhe State Depertmints as well es the national Department ars not
O fficially recognising these actions excepting In Michigan and Wisconsin,
where lees have bean passed rsoognlalng c e rt* n forms of the®. I t le
obvious» therefore, that w# could not expect the State Departments to
eoswlt themselves In writing to a recognition of this s it oatIon by advis
ing us as to the condition In each one of these beaks and the nature of
their action. there is no o ffic ia l notice of these moratoria because they
are not of fic ls lly recognised.
/
*fheso moratorla very in their nature great 1/ In different states and
In different lo calities. In Mldblgan, as I have suggested, there has been
a law passed providing for a custodienehlp daring the period of reorganise*
tion, and. in ilscoasln a law ha* be*! passed providing for #sat they call
a * Stabilisat ion Sehswse,* 1 have hemtefore written the Board about both
of these actions and have sent copies.of the lees. Beyond this* these
moratorla a ll ovsr the d istrict way consist of refusals to pay hr public
proclssiation (often signed by a ll the hanks In the country or tie local
clearing house*), temporary public holiday*, signed waivers by depositors*
refusal to pay time depo#lts, running sometimes from one te five years,
other various restrictions» frequently oa a basis say of 5 p«r cent
monthly on w sm ro til deposits, refusals to pay in individual cases with*
oat public anpoeneesient t payment of only part of a depositors demands hy
refusal of the hank to ’sake fu ll payment, and many other forws
• I t is of course ebvtom* that a number of hanks which are in reeeonably good condition have been forced to go on a moratorlua by reason of
their neighboring banks taking that action* and havs done se reluctantly.
Curiously, #.«o « bank has gone on a moratorlua shlc£& has tied, up exist
ing dsposlts over a period of years and, however, which contemplates that
v- any * e * deposits s ill be subject to call* the reaction sometimes has been
against the neighboring hunk wtaicfc has not gone on a moratorium, in the
fear that i t would later do «o and the deceits thus be tied up there. We
have huard of cases lik e this ffosre a depositor had withdrawn money from a
bank whldb wee not on a moratorim and saade his deposit In the bank *hich
had gone throu# the reorganisation and. whose new deposits were not to be
tied vg**
Reproduced from the Unclassified / Declassified H oldings of the National Archives
~~
r
,
DECLASSIFIED
Authority
H r. Smmd * #10
M m m g i l l .l l i l g l g t ,
* ,..1 1 1 I h l i c o n n e c tio n , tha Missouri banking d sp artn sn t sdwlawft th a t I I
h as no r s c o r d s o r d s f i n l t s in fo rm a tio n c o v s r in g mrmtorlm arrangsaiants
s f f s « t # d by In d iv id u a l banks, and th at In f a c t
d*part»anfc p r a fs r s t o havs
no o f f i c i a l in form a tion on tb s s a oa s a s , s i nos I t b s lls w a s that o f f i c i a l
n o tle a th a t a bank b a s c s a « s d to © parat* as a §&in^ oon cara would plan# a
r s s p o n s lb l l i t y on th# banking: departmant to c i o s s I lls bank In q u e s t io n ."
M tn n a a n a lla S is t r t o t
• . . .1bis m & * *
was Instigatad by tha s t a t * banks wfat da v s r s la troubl*.
Bo waiwsr of any portion of th* d e p o s its in tbs national bank s a t oada.
ffe# national bank took t h i s action In synpatby w it h th • s t a t s b a n k s , tlis
purposa baing for tb s dsfarrosnt of deposits.
*
...fb s two national banks did not a dr d e p o s ito rs
of tbs dapo«11 lia b ility , tbs national bank
national banks w ill not f o r e s tba a g r sonants
axaspt la ca*«'Of absolute# n a e s s a lt y .
of
any portion
v is a s fe a t tbs
to « a k « any s a lw s r
s x m ln s r ad*
v t t t i d a p o s lto r s
* •••fto Sfatlcnal
Bank d id n ot na*d t b s c u t In d a p o t lt s , bmt
s frs a d t o t b s %mm ewifclng in tystpatby wltfe tb s o t b s r bank,*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
C0»B )£ 8YXiL
aunts o fim nm oar a mmmtmn basis
(VUewtm rolato to firot 10 a»atho of 1932* oicopt ia tho Chl«»®& diotriet whoro th*r
rogprooont the oitoattoa a* o f Soptoofoor 2fc, 1932. Iho data prohahljr a*o aot e©»ploto aor fttUjr eo*parahlo, particularly m to no amamber fcaoko, booa&oo of difflealty
I a obtaining opw ifi e info neat ion)
'Jfeafcor o f haziko oa
B o p o o lt* o f haako oa a m m t o r t m b&tto
.. :*o*atoriwa haoi*.....
S t.
j Wm~
T o ta l!
| B a tto a a l |
jfoam — ifaor
member
Iiimbar f e t a l
......... H a n o i
(la thoiaoaadt of d o lla r * )
lo«toa
Boo Huppihir*
$
f
«*
}
5*6*5
U m
—
3*?B
?. B . M o t r i o t
and S t a t o
loo To A
Boao
Phll«A«lphU
fodoral Eo*orrofcaak hao booa told that ooat« haak* In tho coal rogioas ha*o
M i u M d tho ri^ht to llait tho awrnnt th<gr w i l l pay to luqr oao dopooito r .
If, howoror* tho tank* aro oaforctag anjr 11»11 on pojnooata it doo« aot applj
to Ohoeleo ooct to tho* through tho Fodosml rooorto honk.
3
i
9*2
100
—
3.«*
3.««
■i)n
~
~
8^2
M
steuoA.
Borth Carolina 1
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loot ?ir*iai* .,,1, ...%...
Total
2
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poralaad
x«ataokjr
mm
*•731
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-
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Florida
l#oaiolaaa
sa**i*«ippi
fottaooooo
6
1
1
—
1,9**
3.2M
2.“59
1,750
*"*
JIB
1#201
1.T50
325
«
•"*
’**•*
-
1.659
2,970
9a
1
I
«
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*
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O
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*
—
If
k
1
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9.*M
!1
3.606
325
5.550
m
a
m
202
?7
ia
5*
12
3^
1%
If
130
fot«*l
C
hlofe^p
Uliaolo
Xadia&
a
Iow
a
Utohi^aa
fiooonoia
Total
T
1
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mm1
t
.. ~«3 -
15*1
5
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3
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153
35
2 ...*3........
€50
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(Hot
56.*06
6.524
13,*6o
11.737
If.!*®
3.505
7,657
30.793
(lot tnUtlili)
97.095
—
4
M
*
(S o t
atailahlo)
58.559
St. Louio
(fioport aot
M
taaoaota
South Dakota
W
itooasia
IrtAi u
rn
-M
fota
it
1
l
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9
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9
1
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a
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—
m
um
m*
10
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6»i«a
16*
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7.55*»
3.613
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*
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***
4.679
-m
m
***,
•*»«»
—
2**75
—
—
—
2.*75
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority t)ND3oozt>
m
%
''
«3fTiSHSS ' m
f B _l *n _l. r ^l c t I]mmmmimmmmmimwmmmmmmmtt
—ftrf torlTHM b&d*
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1 - ^ - 1 X»t-j ' St. I Vos»
m u i
Irntei City /
Colorado
Missouri
CJdftJioiwt
m
•total
Rational
(In
5
1
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y
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iy
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S.539
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—
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ft***
13
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Oregon
l«V«sd|l
3
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»
tt%a
26
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1
6
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w&
1,H32
lfe
u rn
ill
11*
•
13, ^
-t
1.591
*
•
t
13,693
T o ta l. A ll D i s t r i c t s except S t. L on ls
935
,
Q 3JP
172 A 55
708
(Not
available)
133,170
/ * T /
^ST
+ jjfc,
/3
a
rASW
S S 3C
5^, 65S
(Not
aYailafcla)
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority MID
( C O P Y)
T I L E G R A M
l
I J 1 .C L 3
68gmr
C hicago Hov
1 1151am
C lerk
f ashi ngto n *
w.
R eferen ce y o u r wire con cern in g m ora toria i n M ichigan r e ce n t law p assed by
s p e c ia l s e s s io n le g i s l a t u r e p erm its banks to suspend b u s in e s s and b a n k in g
department w ith ap p roval o f cou rt to a p p oin t a c u s to d ia n , cu stod ia n
p roceed s t o s'©cure w aivers and agreements from d e p o s ito r s on a Go/ko o r
b a s is reop en in g c o n d itio n e d upon payment o f
assessment s e c u r in g s ig n a tu r e s r e p re s e n tin g
50/50
100 p e rce n t s to c k h o ld e r s
85 p e r ce n t o f d e p o sit l i a b i l i t y
and s u f f i c i e n t cash t o pay a l l e x is t in g l i a b i l i t i e s f o r borrow ed money
d e p o s its p la c e d to c r e d i t o f customer a re r e s t r i c t e d f o r a p e r io d o f th r e e
to f iv e y e a rs i n W iscon sin banks may b e c lo s e d te m p o ra rily and s t a b i l i s a t i o n
agreement e n te re d in to betw een bank and d e p o s ito r s r e p r e s e n tin g
20 p e rce n t
o f th e amount o f d e p o s it s a l l o th e r d e p o s it o r s are h e ld to the same e x te n t
and same e f f e c t as i f they had jo in e d in agreement i t i s
from HO t o
50 p ercen t
customsry to w aive
o f d e p o s it s b a la n ce i s r e s t r i c t e d o v e r p e r io d o f
months a few o f the n a t io n a l banks in our t e r r i t o r y have en te re d in to
agreement with d e p o s it o r s o v e r a f i v e yea r p e r io d w ith no p r o v is io n made
f o r le v y in g assessm ent on s to c k h o ld e r s numerous bankB a re r e s t r i c t i n g
w ithdraw als w ith ou t any agreement w hatsoever from d e p o s it o r s
McKay
loU p
Mr. H o r b e t t 's s e c .h a s f i l e o f corresp on d en ce on
t h is s u b je c t w ith P.R»Banks, in c lu d in g a co
cop y c**
^°
This file contained a transcript of a copyright-protected article that has been removed.
The citation for the original is:
"Banking Moratoria in States Construed." United States Daily, November 8, 1932.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
f
Authority
F o r m 148
t-4 -7 0
TELEGRAM
F E D E R A L R E S E R V E B OA R D
LEASED W IR E SERVICE
W A S H IN G T O N
2 -8 4 6 4
1rwaater
x Qorti»«t Boston
✓ Ca*0, lew York
- Austia* rhiladelphta
v/DeOaiap, Cleveland
?BA8S ...A."
Horton, Richmond
Atlanta
*• Stevena,*" Chicago
Wood, St* Louis
^ Hevtoa,
%
1932
SM itdhell, kimmapo&ie
^EeClure, Kma as City
•" fealffti, Balia*
y Wwtoa, Saa Franedaoo
y., Please f\irni»h statement knowing m m and lo c a tio n o f eadb teak
l a your d is t r ic t whidb i s no?, o r hag hee» a t ax*y tiste Ib is ytar oa so -ca lle d
a o r a to r lm t e i l i ,
statin g la eacfe ease (I ) whether ferou^fet about by holiday1
declaration o f lo c a l a u th orities o r i a m m oth er (s p e cifie d ) way, (2) whether
f o r purpose o f (a) readjusting o&pital structure, (b) 4®formant o f deposits,
(o) surrender by tiepoaitors o f a portion o f deposit a, (3) ahather hank stoprped
r e v iv in g aad paying deposits f o r aqy p eriod aad i f so data# o f oessatioa and
resoieptioa and conditions o f rem ep tioa , and <H) oondi tiona uader which your
teak <x>ntinned to handle item* oa each teaks, i f i t did to*
Pleaae s a i l mdtx
information unless there are oaly few auch teaka l a yotir d is t r ic t as to whiA
ia fo r a a tio a oan he wired*
ELS:lsh
> n r
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
F o r m N o . 131
V
1
U
Tn
t i i c e
7
o
,
5
FEDERAL RESERVE
C o r r e s p o n d e n c e
B0ARD
Datp
June U ■ iq?2_______
1
Mr. Snead___________________________
Subject: Banks c lo a a d t « n fo r « .r t y punning
w aivers o f d e p o s it s , as a r e s u lt
From Mr. S o rb e tt_________________________ ____________________ o f sp e c i a l l y d e cla re d h o lid a y s , et c .
qp o
2— 8495
Eeview o f r e p o r ts now i n ou r f i l e s on bank c lo s in g s during the p re s e n t year
shows th e f o llo w in g in s ta n c e s where banks c lo s e d te m p o ra rily f o r th e d e c la r e d
purpose o f o b ta in in g w a iv ers o f d e p o s its f o r r e o r g a n iz a t io n , o r as a r e s u l t o f
d e c la r a t io n o f s p e c ia l l o c a l h o lid a y s .
Farmers Bank o f Vero Beach. Bero Beach. F la .
Suspended February 5* 1932,
reopened March 1 , 1932.
The r e p o r t o f bank suspensions con tain s the fo llo w in g rem a rls: S ensing a
run, about
90 days
ago t h is bank invoked the p r o v is io n s o f the law a llo w ii^
them t o lim it w ithdraw als to
m
\ tA-*
20$
f o r a p e r io d o f 90 d a y s .
The o f f i c e r s were
l en ab le t o liq u id a t e f a s t enou^a d a rin g th at p e r io d t o l i f t
the lim it a t io n
and c lo s e d fo r the purpose o f secu rin g agreements from th e d e p o s it o r s , f r e e z
in g t h e ir a ccou n ts fo r a p e r io d o f yea rs and to reopen on a fr o z e n b a s i s .
P lan s a r e under way t o reop en about March 1 s t .
same.
C a p ita l remains th e
An a p p r a is a l o f th e a s s e ts d id not show any impairment o f the c a p i t a l ,
con sequ en tly an assessm ent i s not deemed n ecessa ry at t h i s tim e.
o f d e p o s it due November
7* 1935* is s u e d
C e r t if ic a t e s
to a l l d e p o s it o r s i n l i e u o f t h e ir de
p o s i t a c c o u n ts , with the agreement th at payments w i l l b e made on th e c e r t i f i c a t e s
from tim e to time as c o l l e c t i o n s w a rra n t.
Punt a Gorda S ta te Bank. Punt a Gorda. F la .
Suspended A p r il 19, 1932.
The r e p o r t o f bank su sp en sion s con ta in s th e fo llo w in g remarks:
Bank
c lo s e d to enable i t to a v a il i t s e l f o f th e law p e rm ittin g banks to resume
b u sin ess on a frozen d e p o s it b a s is upon consent in w r it in g o f d e p o s ito r s
r e p re s e n tin g 75# o f the a g grega te d e p o s it s .
opening p la n s .
O f f i c e r s a re now working on r e
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority M D 3 o Q 2 fa
Mr. Smsad - #2
farmers Savings Bank, Van Horne, Iowa.
Suspended March
8,
1932, reopened
March 11, 1932.
The report of bank suspensions contains the following remarks:
The State
Banking Department of Iowa refuses to give us any data regarding the suspension
of this bank, saying "We wish to advise that this hank has not suspended "busi
ness.
Therefore, we cannot give you the information requested on form St.6386b . 11
“The two banks at Van Horne, Iowa, closed for four days to obtain waivers from
depositor s.“
Foitn St.
6386b
covering the suspension of this bank was re
turned by the State Banking Department with the notation that the bank was not
closed. We are in doubt as to whether the closing should be considered as in
the nature of a moratorium, and are waiting for the State Banking Department
monthly report to see how they are regarding it.
Perhaps, however, you would
like to advise us in the meantime.
Van Horne Savings Bank. Van Horne. Iowa.
Suspended March
8,
1932, re
opened March 11, 1932.
The report of bank suspensions contains the following remarks:
The State
Banking Department of Iowa refuses to give us any data regarding the suspen
sion of this bank, saying "We wish to advise that this bank has not suspended
business.
6386b . 11
Therefore, we cannot give you the information requested on form St.
“No assessment paid.
all depositors.
We closed for four days and got waivers from
Our depositors signed 10.0^ . 11 £orm St.
6386b
covering the sus
pension of this bank was returned by the State Banking Department with the
notation that the bank was not closed.
We are in doubt as to whether the clos
ing should be considered as in the nature of a moratorium, and are waiting for
the State Banking Department monthly report to see how they are regarding it.
Perhaps, however, you would like to advise us in the meantime.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority HMDaot&fc
Mr. Sinead -
#3
Alcona County Savings Bank, Harrisville, Mich.
Suspended April 19, 1932.
The report of bank suspensions contains the following remark:
For reor
ganization.
Citizens Bank. Hebron. Indiana.
Suspended January 12, 1932, reopened
February 3* 1932.
The report of bank suspensions contains the following remarks:
closings in the vicinity.
Other
"There has been no re-organization and no change
in capital, surplus or undivided profits, or in any other particular.
We
closed to avoid a run on the 12th day of January and reopened on the 3rd day
of February without any change in conditions whatever."
Citizens State Bank, Galveston, Indiana.
Suspended January
23,
1932,
reopened February 1, 1932.
The report of bank suspensions contains the following remarks:
out of money or credit ... Closed as an act of self preservation.
Not
“No change
in any w a y -- Just suspended a few days until audit was made and waivers
signed to open on a restricted basis."
City
Central Missouri Trust Co., Jefferson,/Mo.
Cole County Bank
“
Exchange National Bank
11
First National Bank
All closed on February 15, 1932 and all reopened on February 23 except
the Exchange National which, on February 23, was absorbed by the First National.
The report on the suspension of these banks contains the following remarks:
By agreement made by business men and bankers of Jefferson City the four banks
were to remain closed during week of February 15 to 23rd in order to effect a
consolidation of the Exchange National Bank and First National Bank, remaining
banks reopened on February
23.
(See form St.
6386 -a
for data on consolidation.)
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority tlH P a o o z fc
li. . Smead - #U
The case of the Uxchange National Bank, Jefferson City, Missouri, is one
of the two cases this year (the other being the First National at Sheffield,
Iowa on May 31) for which the Comptroller has failed to give us deposit figures,
on the ground that the banks did not suspend.
This is also the instance about
which the Governor told you a week or so ago that a local holiday had been
declared and ruled by the State Attorney General as properly declared.
Prior
to this advice of Governor Martin we knew nothing about the declaration of a
local holiday in Jefferson City.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
F o r m N o . 131
\
^
^
^
Fe d e r a l r e s e r v e
Office Correspondence/ 804,10
To___ Mr. Sinead____________________
From
Mr. Horbett s y ,
.
_________
T W
April
20,
1932
Subject;Classification of banks closed
temporarily by agreement of
______ local business men and bankers
On February 15» 1932. the four banks in Jefferson City, Mo,, two National
banks and two nonmember banks, closed for a week, as the result of an agree
ment made by business men and bankers, in order to effect a consolidation of
the
change National Bank and the First National Bank.
On February 23, the
Sxchange National Bank (which absorbed the suspended First National) reopened,
as did the two nonmember banks.
It is our policy, as you know, to class as a bank suspension every in
stitution that is closed to depositors temporarily or permanently on account
of financial difficulties.
The only exceptions we have made to this practice
are those cases where banks closed end reopened on the same business day,
;
hAjY where it was felt that it would be stretching the definition too much to
,/Jx^tLassify such a bank as suspended.
In view of our policy, our bank suspension
records now include the four banks in question, although they were not shown
in our February preliminary list of suspensions; they were shown in the March
list, as additions to February suspensions, as the result of St. Louis’ letter
of March lU, attached hereto.
As you know, we now receive deposit figures as of the date of suspension
from the Comptroller's office covering all suspended national bankB, but thus
far we have not received these figures covering the SSxchange National and
First National Banks of Jefferson City, Mo., both of which remained closed
for a period of
8
calendar days.
I raised this question with Mr. Douglas
of the Insolvent Banks Division of the Comptroller’s office, and he said
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
r
Authority MUD 3 oQ2 b
atrT S^sad - # 2
that they had not treated these banks as suspensions . I explained our general
policy to him, and suggested that if they decided to take exception to these
two cases I would like to know about it as soon as possible so that we could
reconcile the views of the two offices.
Since then I have not heard from Mr.
Douglas, and before inquiring further I would like to know whether you see
any objection'to our classification of these banks as suspensions.
Mr. Douglas said, when he talked to me about the matter, that the case
of .these banks was similar to banks that had closed for a few days as a re
sult of declaration of a holiday by municipal authorities.
I told him that
I did not believe the two situations were parallel, inasmuch as in the case
of the holiday, the banks had no choice but were compelled by local ordinance
to close their doors.
This happened, as you may recall, in Urbana, 111., and
Aurora, 111. In Urbana there was one national bank and one nonmember bank,
and in Aurora four national banks and one nonroerrber baik.
None of these
banks have been reported to us by the Federal He serve Bank of Chicago as sus
pensions.
Press dispatches in this regard are attached hereto.
This file contained a transcript of a copyright-protected article that has been removed.
The citation for the original is:
"Action in Urbana." Time, February 1, 1932.
This file contained a transcript of a copyright-protected article that has been removed.
The citation for the original is:
"5-Day Moratorium Ends, Aurora Ill. At Work Again." New York Herald Tribune, January 28, 1932.
@FedFRASER