Weston Independent
Last Bank in City Closes Tuesday
State Department of Banking in Charge of Citizens Bank; Heavy Withdrawals. Closed to Protect
Depositors.
October 14, 1931
The Citizens Bank, Weston's sole remaining banking house, did not open for business at the usual hour Tuesday morning. The bank was closed Monday in observance of Columbus Day.
The following notice was posted on the door of the banking house: "Owing to unusual withdrawals and in order to conserve the assets of this bank for the depositors to the end that all may be treated equitably, the board of directors has deemed it advisable to place the bank in the hands of the State Department of Banking.
The Citizens Bank of Weston.
"R. H. Hall, President.
Immediately below this notice was another giving the information that in accordance with the foregoing, the bank has been taken over by the State Banking Department. This notice signed by A. A. Fletcher.
This was astounding news to the merchants and business people of the city and was unbelievable for quite a while. The gathering crowd and the notice however were sufficient evidence that the Citizens had actually closed. Even then it was difficult to conceive Weston without an open banking house.
No statement other than the posted notices have been issued. This notice states that the institution was closed that the depositors "may be treated equitably." Knowing the men who have the affairs of the bank under their control, this should be ample guarantee to the depositors. The instituion was pronounced sound and solvent by the State Commissioner of Banking little more than a week before.
The writer of this article is not a banker and knows but little of the arts and sciences of finance as applied to the management of a banking house. However, it should be clear to everyone that no bank can operate successfully without using the depositors money. The money is loaned out and the returning interest provides a profit for the institution. It should be clear to almost every one that a bank with deposits totalling more than two million dollars, could not have that amount in its vaults at all times. It should also be even clearer that no bank could within a few days call in all its notes and the money it has loaned. The state laws require a certain amount of money on hands to meet demands. Because of conditions banks have kept even much greater amounts available for the depositors. Therefore a little bit of thinking should make it clear that no bank in the land however sound and solvent could continue with repeated withdrawals from day to day. These withdrawals by terrified depositors have resulted in the closing of many sound and stable banking institutions.
It is going to be difficult without a banking house in the city. We have oftimes read of such happenings elsewhere but at present are giving it a trial. The business men know just how inconvenient it is; others are finding out, and more will have reason to learn. The real value of banks will be appreciated through their absence.
The Independent does not believe that all is lost. The outlook may appear dark and gloomy to most every one during these trying times, but the future holds promises of better days ahead. It is only through the periods of depression that we learn to appreciate the prosperity that is ours practically all the time. It is during times such as these that confiden[c]e and faith are needed. It may appear to some that these terms have been overworked and are meaningless, yet without them life is not really worth while. Weston will emerge from the present crisis a better city, and from the present experiences we will learn from that hard school what to do in the future to avoid such happenings.
This paper hopes to have pleasing news about the local financial situation for its readers in an early issue.