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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 > 4 ^ 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 New Y o r k 1 0 5 2 a N ov 4 j% ^ Smead Washn No b a n k i in s o -c a lle d Digitized eO IBFRASERIO SO : 19M for M K L ftta ¥ « V K B YMO H tV S D is tr ic t now o r m o r a to r iu m b a s i s . s u p e r v is in g v a r io u s th is a u th o r itie s c o n d itio n s and r e fe r r e d at S e v e r a l banks th is y e a r on a have been s u b s e q u e n tly b r e -o p e n e d to in it e m C a se 1056A £—1 0 19 1 a n y t im e 2 of your c lo s e d under te le g r a m by th e 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