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Reproduced from the Unclassified I Declassified Holdings of the National Archives

~

DECLASSIFIED

Authority VlUDaoozfc.

r

ELEG R A M
FED ERA L RESERV E SYSTEM
Lf> f Q ,J
*

(LEASED W IRE SERVICE)

R E C E IV E D A T W A S H I N G T O N , D . C .

2 55 bm r

p
Mew Y o r k M ar 3 / 2 1 5 p
Boa r d
Washn
W e s t s i d e N a t i o n a l B ank W est P a t e r s o n NJ h a s r e s t r i c t e d
w ith d r a w a ls

e ffe c tiv e

b e g i n n i n g M a rch 2 ,

d e p o s it

1933
D illis tin
224p

Digitized forvtN iiw T n o m M i
>. «. a oT FRASER
im

m iiw h

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authority M D a o o z k

F. r . District Ho, 2

'7
l

15

BANKS WHICH DURING FEBRUARY, 1935, WITHOUT ACTUALLY CLOSING, OBTAINED
DEPOSITORS* WAIVER AGREEMENTS, OR WHICH RESTRICTED DEPOSIT WITHDRAWALS

Name and location of bank

Hoboken, N. J.
Jefferson Trust Company (member)

Demand
Obtained
Time Deposit
depositors* deposit
withdrawals
waiver
restricted
withdrawals
agreements restricted
beyond terms
*
of by-laws*
Effective
Period during
date
which effective
2/21/55
(Close of
business)

$639,000

$2 ,110 ,0 00

As of the close of business Februaiy 21, 1955, this company received per­
mission from the Commissioner of Banking and Insurance of the State of New Jer­
sey to operate under the provisions of the Altman bill (Assembly No. 195), which
was signed by the Governor that day*
We understand that payments are being withheld on the bank* s entire deposit
liability as of close of business February 21, 1953 in the approximate amounts
shown above, but that there is no restriction on withdrawals of deposits made
since February 22, 1953 (a legal holiday).

The period of restriction has not

been definitely stated and we understand its determination awaits a conference
between the bank* s management and the Commissioner of Banking and Insurance.
A copy of the bank* s notice to depositors, dated February 21, 1953, is
attached hereto.

♦ E i t h e r w it h o r w it h o u t s ig n e d a g re e m e n ts o f d e p o s it o r s .



(B -8 6 8 )

Reproduced from the Unclassified I Declassified Holdings of the National Archives

~

DECLASSIFIED

Authority VlUD 30 0 2 b

Cf
i>

JEFFERSON TRUS. COMPANY
HOBOKEN, N. J.
TO OUR DEPOSITORS:

February 21, 1933.

The Legislature and the Governor of the State of New Jersey, have
deemed it advisable to enact the following bill to safeguard the depositors
and banking structure of the State of New Jersey:
An Act concerning banks, trust companies and savings banks.
Be it enacted by the Senate and General Assembly of the State of
New Jersey:
The Commissioner of Banking and Insurance is hereby authorized
and empowered in addition to all other powers, whenever in his judgment
the circumstances warrant it, to authorize any and all banks, trust companieg~and savings banks under his jurisdiction
(a) To extend for a period of ninety days, and for a further period
if he deems it expedient, payment of any time accounts where notice of
withdrawal has been given or may hereafter be given.
(b) To authorize the postponement for any length of time of the
payment of any proportion of the deposits in demand accounts of any
individual, firm or corporation as he may deem necessary and expedient, to.
be determined by him according to the ability of any bank, trust company
or savings bank to pay such withdrawals,
(c) To authorize all such banks, trust companies and savings banks
to thereafter receive new deposits which shall be segregated from the old
deposits, and said new deposits shall not be subject to the restrictions or
limitations herein or that may hereafter be imposed by the Commissioner
of Banking and Insurance, pursuant to the provisions herein, and said new
deposits shall be invested in such liquid assets as may be approved by the
Commissioner of Banking and Insurance in order that banks, trust com­
panies and savings banks may at all times have sufficient funds to meet
the demands on such new deposits in accordance herewith.
(d) Whenever the Commissioner of Banking and Insurance shall
authorize and empower any bank, trust company or savings bank to act
under the provisions of this act, he is hereby empowered to make and
adopt such rules and regulations as he may deem proper for the protection
of the institution and may require daily reports in detail touching their
financial condition.
This act shall take effect immediately.
STATEMENT

The design of the above act is to permit the Commissioner of
Banking and Insurance to make rules and regulations for the purpose of
protecting not only the bank but its depositors.
The following statement fwas issued by Charles H. Plenty, president
of the New Jersey Bankers Association, in explaining the purpose of the
emergency bank bill:
"The Altman bill, passed by the New Jersey Legislature, Monday,
February 20, 1933, is a law somewhat similar to that of New York State,
and permits the Bank Commissioner where in his judgment a bank may
have too large a percentage of frozen assets, to afford such bank a reason­
able time to pay its deposits by requiring such depositors to present a
ninety-day notice of intentions to withdraw savings accounts, and per­
mitting checking depositors to withdraw such percentage of their deposits
as in his judgement liquid assets would permit.
“ The object of the bill is to safeguard the depositors in a perfectly
solvent bank where under present business conditions, inability to convert
frozen assets into cash might cause the closing of such institution,
“I have been asked to make this statement that there may be no
misapprehension as to the purpose of this new law.”

The Jefferson Trust Company has been granted permission by the
Commissioner of Banking and Insurance to operate under the provisions
of the above act as of the close of business Tuesday, Februay 21, 1933,
Your cooperation and consideration is solicited.



Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
r

v

Authority UHP 3002 b

f. r. jaeauwOT

i , ________________

BASKS WHICH DURING 1 9 5 Z , WITHOUT ACTUALLY CLOSING, OBTAINED DEPOSITORS' WAIVER
AGREEMENTS, OR WHICH RESTRICTED DEPOSIT WITHDRAWALS

Name and location of bank

Demand
Time deposit
deposit
withdrawals
withdrawals
restricted
restricted
beyond terms
*
of by-laws*Period during
.j if 3ffec.ti.Ye- ..
sh ih

Obtained
depositors*
waiver
agreements
Effective
..... . a a , .
.. . d t . .

The First National Bank of -^nglishtown
Englishtown, Hew Jersey.

Apr. 30, 1952

Outright contributions aggregating - #24,727.75

According to brief notations in our own files, supplemented by reference to
more detailed information in the file of the Chief National Bank Examiner at New York,
the above bank called a meeting on April 50, 1952, of certain of its larger depositors
and obtained agreements from about 115 such depositors to contribute unconditionally to
the bank 20% of their deposit balances.

have no definite information as to whether

these contributions came from demand deposits or time deposits, but since the depositors
agreement form authorized a charge to the depositor* s account and contained an agree­
ment to deliver on demand of the bank a check for the amount, accompanied by pass book,
we suppose that both classes of deposits were included.

The depositors* agreements were

contingent on $3,000 being contributed by the directors (collectively) and on the other
contributions (depositor^*) amounting to $22 ,0 00 .

♦E
 it h e r w ith


o r w ith o u t s ig n e d a g re e m e n ts o f d e p o s it o r s .

(B -8 6 8 )

Reproduced from the Unclassified I Declassified Holdings of the National Archives

d e c l a s s if ie d

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Authority YJMD3 o 02 t ,

ELEGRAM
FED ERA L RESERV E SY STEM
L j- 1 0 , & ( ? }

(LEASED W IRE SERVICE)

RECEIVED A T W A SH IN G TO N , D . C.

381)3
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Reproduced from the Unclassified / Declassified Holdings of the National Archives

~~
I"

DECLASSIFIED

Authority

DISTRICT NO. 2 - NEW YORK
BANKS CLOSED DURING 1952 UNDER A SPECIAL HOLIDAY DECLARED BY CIVIL AUTHORITIES

Name and location of bank
•
-

Date
bank
closed

NONE

I




Date bank
resumed
operations

Durat:Lon of holjiday
Number
From
To
of days