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221:, Joseph Broderick, to take over the bank's assets. The stock market reacted negatively with the stock price of the bank, which had traded as high as $ 91.50 during the year (and a lifetime high of $ 231.25 in 1928) dropping from $ 11.50 to $ 3.00 (with a low of $ 2.00). Most other bank stocks also sold off. Broderick tried to arrange a merger with three other banks but the big
282:). Meanwhile, a $ 50 million stockholder suit was launched against the directors of the bank on the grounds of negligence and incompetence, a woman with deposits of $ 20,000 in the bank hanged herself, and the Equity Casualty and Surety Company, which had invested more than $ 1 million in Bank of United States stock, declared bankruptcy.
88:
bank, with the backing of several well-known financiers, because of a disagreement with other members of the management. Though the directors of Public Bank objected to the choice of name, arguing that "ignorant foreigners would believe that the United States government was interested in this bank and that it was a branch of the
132:
The bank grew slowly, with only five branches by 1925. However, after the death of the founder, his son
Bernard, who had been running the bank since 1919, grew the bank rapidly through a series of mergers until it had 62 branches by 1930. In April 1928, it merged with the Central Mercantile Bank and
232:
offered to lend Bank of United States depositors 50% of their deposits. At the same time, the office of the New York State Bureau of
Securities announced that they had been investigating charges that the Bank of United States had sold stock to depositors under a one-year guarantee against loss that
205:
By the midday, a crowd of 20,000 to 25,000 people had gathered and had to be controlled by the police, and by the end of the day 2,500 to 3,000 depositors had withdrawn $ 2,000,000 from the branch. However, most of the 7,000 depositors who came to withdraw their money left their assets in the bank.
111:
and immigrated to the United States at the age of 17. He worked his way up from being a tailor to a garment industry business to being a banker. He founded the Public Bank in 1906 and the Bank of United States in 1913. He died on July 3, 1927. He was also a philanthropist known for his donations to
285:
Among the 608 banks that closed in
November and December 1930, the Bank of United States accounted for a third of the total $ 550 million deposits lost, and it is thought that with its closure, bank failures reached a critical mass. People flocked to withdraw their money from other banks. In turn,
167:
On
December 8, 1930, unable to agree on merger terms, the plan was dropped because, it later emerged, of difficulties in guaranteeing the deposits of Bank of United States, due to complications arising from the legal difficulties of the bank, and because of real estate mortgages and loans held by
87:
The Bank of United States was chartered on June 23, 1913 with a capital of $ 100,000 and a surplus of $ 50,000. The bank was founded by Joseph S. Marcus, a former president of the Public Bank, also of
Delancey Street. Marcus, who was responsible for the building up of Public Bank, started the new
136:
In April 1929, it absorbed the
Colonial Bank and the Bank of the Rockaways. In May 1929, it merged with the Municipal Bank and Trust Company, making the combined Bank of United States the third largest bank in New York City, and twenty-eighth in the United States. With a
594:"FALSE RUMOR LEADS TO TROUBLE AT BANK; Branches of Bank of United States in the Bronx Meet All Withdrawal Demands. LARGE CROWD AT ONE PLACE Long Line of Depositors Paid in Full—Officers Allay the Fears of Others. Other Branches Meet Demands. Conference of Bankers"
712:"RED PLOT TO START BANK RUN REVEALED BY BRODERICK AIDES; Officials Say They Intervened to Halt Drive on an Institution Last Saturday. ALARMISTS TOURED STORES Raids Discussed at Meetings and Use of Soviet Funds in Short Selling Is Hinted. ORGANIZED CAMPAIGN SEEN"
257:
in 1907. Worried city and state officials tried to reassure the public by rushing through the program by which Bank of United States depositors could borrow money against their deposits. Some depositors started to receive their loans on
December 23, 1930 and
160:, Public National Bank and Trust Company, International Bank and Trust Company, and the Bank of United States-began talks to merge, and on November 24 announced that they had agreed to form a mega-bank headed by J. Herbert Case, the President of the
252:
The closing of Bank of United States came as a shock to the banking industry, which had not seen a failure of a large New York bank since the stock market crash of 1929, and the first failure of such magnitude since the failure of the
475:"THREE BANKS VOTE TO UNITE ON APRIL 1; Bank of United States Will Absorb Colonial and Rockaways Institution.WILL RAISE NEW CAPITAL Total to Be $ 20,875,000, Resources at $ 250,000,000—To Sell Sharesin Units With Bankus Stock"
457:"STOCKHOLDERS VOTE BANK MERGER HERE; Cosmopolitan Absorbed by Bank of United States, Which Increases Its Capital. UNION EFFECTIVE MONDAY Combination Accomplished by an Exchange of Shares—Personnel to Remain Unaltered"
730:"BANK OF U.S HEADS SUED FOR $ 50,000,000; Stockholder Charges Neglect and That Huge Profits Went to Officials. ROSOFF AIDS DEPOSITORS Starts $ 1,000,000 Loan Fund With $ 100,000—Three Plans Weighed to Reopen Chelsea"
474:
367:"GIVES ROOF GARDEN FOR JEWISH BLIND; J. S. Marcus Equips Recreation Centre on Top of Bank of United States Building EXCLUSIVELY FOR THEIR USE Association Aims to Hunt Up the Sightless of Their Race and Educate Them"
413:"JOSEPH S. MARCUS, BANKER, DIES AT 65; Founder and President of Bank of United States Began as a Store Clerk. HIS PHILANTHROPIES MANY Israel Orphan Asylum and Beth Israel Hospital Among the Charities He Aided"
366:
262:
reported that throngs of depositors lined up to receive their loans, many arriving hours before the branches opened and many were turned away because they could not be served by the end of the day.
270:
Soon after the closing of the Bank of United States, another bank, the
Chelsea Bank, was taken over by the Superintendent of Banks, amidst allegations attributed to "reliable sources" that the
390:
206:
One person stood in line for two hours to claim his $ 2 account balance. As the news spread, there were smaller runs at several other branches in the Bronx as well as in the
202:
reported that the run was based on a false rumor spread by a small local merchant, a holder of stock in the bank, who claimed that the bank had refused to sell his stock.
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in
Washington", the name was approved and the bank came into being. The use of such an appellation was outlawed in 1926 but did not apply retroactively.
72:
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payment of $ 2 for 1929, the president of the bank declared the bank to be on a sound footing in a letter to shareholders following the stock
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office undertook to examine the bank for possible crimes. Depositors thronged the bank branches but were turned away by mounted police. The
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The directors of the bank as well as of other New York banks were optimistic that the bank would reopen in a few weeks, and members of the
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banks refused to help, possibly because of anti-semitism. Without the necessary $ 30 million bridge loan, the bank could not be saved.
26:
493:"$ 300,000,000 MERGER OF BANKS APPROVED; Union of Bank of United States and Municipal Made Formal-- Former Increases Capital Stock"
96:
612:"MARKET STAGES RALLY AFTER SELLING FLURRY; Stock of Bank of United States Sinks to $ 3 Bid, $ 7 Asked-- Other Bank Shares Decline"
196:(though there had already been a wave of bank runs in the southeastern part of the U.S., at least as early as November 1930).
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reported that gross deposits in the bank had dropped from $ 212 million to $ 160 million between
October 17 and December 11.
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532:"$ 1,000,000,000 UNION OF BANKS COMPLETED; Manufacturers, Public National, International and United States Agree on Terms"
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This article is about a commercial bank in New York that failed in 1930. For the central bank of the United States, see
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343:"HIGH-TITLED BANK CAN HOLD ITS NAME; Its Rivals Argued East Side Would Think "Bank of United States" Was Government's"
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514:"PRESIDENT OF BANK REVIEWS ITS GROWTH; Bernard K. Marcus Sends Letter to Stockholders of Bank of United States"
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Trust Company with Bernard Marcus as the president. In August 1928, it absorbed the Cosmopolitan Bank.
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branch in the Bronx seeking to withdraw their money, and started what is usually considered the
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The next day, fearing a run on the bank, the directors decided to close the bank and asked the
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391:"Streetscapes: The Bank of the United States in the Bronx; The First Domino In the Depression"
293:
After the bank's collapse in 1932, the bank building on Delancey Street was taken over by the
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766:"SURETY COMPANY CLOSES.; Failure of Casualty Concern Laid to Bank of United States Losses"
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subsidiaries of the bank. Two days later, there was a run on a Bronx branch of the bank.
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and for the Hebrew Association for the Blind. His son, Bernard K. Marcus, a graduate of
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Bid price for the Bank of United States. Quarter ends 1928–1930 + Dec. 11 and 12, 1930
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748:"DEPOSITOR HANGS HERSELF; Woman Who Had $ 20,000 in Bank of U.S. Is Found a Suicide"
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Crowds form outside the Bank of United States when it failed in 1931.
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290:. In that month alone, over 300 banks around the country failed.
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814:. American Public Media. September 15, 2008. Archived from
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the banks called in loans and sold assets in order to stay
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836:
Sanders, R. (2013). "Delancy, Grand & Essex Streets".
855:. Photo of the Bank of the United States on Delancey St.
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573:"BANK OF U.S. CLOSES DOORS; STATE TAKES OVER AFFAIRS"
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was actively trying to create a run on the bank (the
25:. For federal and other private banks in the US, see
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On December 10, 1930, a large crowd gathered at the
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71:branch is said to have started the collapse of
629:Gordon, John Steele (November–December 2018).
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44:, founded by Joseph S. Marcus in 1913 at 77
902:Defunct companies based in New York (state)
808:"Where will Lehman failure fit in history?"
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917:1930 disestablishments in New York (state)
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27:Bank of the United States (disambiguation)
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156:In mid-1930, four leading New York banks-
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322:"MERGER OF 2 BANKS LINKS $ 175,000,000"
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678:"PERFECTS PROGRAM TO AID DEPOSITORS",
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907:Great Depression in the United States
859:Clippings about Bank of United States
550:"PROPOSAL TO MERGE 4 BANKS ABANDONED"
389:Gray, Christopher (August 18, 1991),
95:The founder, Joseph S. Marcus, was a
912:1913 establishments in New York City
694:"THRONGS AT BANK GET LOANS ON FUNDS"
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99:to the United States. Born in Telz,
230:New York Clearing House Association
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882:Defunct banks of the United States
853:Bank of the United States building
107:in 1862, Marcus went to school in
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233:they had not been honoring. The
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162:Federal Reserve Bank of New York
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445:– via Internet Archive.
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897:Banks based in New York City
892:Banks disestablished in 1930
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82:
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863:20th Century Press Archives
631:"The Bank of United States"
431:"The Bank of United States"
255:Knickerbocker Trust Company
158:Manufacturers Trust Company
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352:, p. 7, June 24, 1913
272:Communist Party of America
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887:Banks established in 1913
295:Hebrew Publishing Company
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787:, Penguin, p. 163,
437:. July 1920. p. 125
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90:United States Treasury
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840:. Dover Publications.
818:on September 27, 2011
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42:Bank of United States
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922:History of the Bronx
435:The Bankers Magazine
114:Beth Israel Hospital
16:Former American bank
838:The Lower East Side
785:The Ascent of Money
736:, December 31, 1930
718:, December 26, 1930
700:, December 23, 1930
682:, December 15, 1930
667:, December 13, 1930
635:ABA Banking Journal
618:, December 12, 1930
600:, December 11, 1930
579:, December 12, 1930
538:, November 25, 1930
235:District Attorney's
122:Columbia University
770:The New York Times
752:The New York Times
734:The New York Times
716:The New York Times
698:The New York Times
680:The New York Times
665:The New York Times
661:"THE BANK FAILURE"
616:The New York Times
598:The New York Times
577:The New York Times
556:, December 9, 1930
554:The New York Times
536:The New York Times
520:, February 2, 1930
518:The New York Times
497:The New York Times
479:The New York Times
461:The New York Times
417:The New York Times
395:The New York Times
371:The New York Times
350:The New York Times
326:The New York Times
260:The New York Times
247:The New York Times
199:The New York Times
186:Southern Boulevard
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794:978-986-173-584-9
772:, January 1, 1930
754:, January 1, 1931
463:, August 22, 1928
239:Mayor of New York
192:that started the
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822:January 11,
812:Marketplace
223:Wall Street
210:section of
101:Brandenburg
75:during the
876:Categories
647:2160290916
301:References
139:book value
641:(6): 58.
266:Aftermath
83:Formation
643:ProQuest
212:Brooklyn
190:bank run
143:dividend
65:bank run
52:, was a
865:of the
861:in the
172:Failure
105:Germany
73:banking
67:on its
791:
645:
288:liquid
128:Growth
61:failed
346:(PDF)
306:Notes
109:Essen
69:Bronx
59:that
824:2010
789:ISBN
443:2019
120:and
112:the
57:bank
40:The
867:ZBW
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149:on
48:in
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