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Bank of United States
The Bank of United States was a private New York City bank that operated between 1913 and its failure in 1931. Founded by Joseph S. Marcus, the bank grew rapidly between 1925 and 1929, merging with or acquiring several others and increasing its branches a dozenfold to over 60.
The December 1930 bank run on its Bronx branch is said to have started the collapse of banking during the Great Depression.
The Bank of United States was chartered on June 23, 1913, with a capital of $100,000 and a surplus of $50,000. Located at 77 Delancey Street in New York City, 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 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 United States Treasury 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.
The founder, Joseph S. Marcus, was a Jewish immigrant to the United States. Born in Telz, Brandenburg, Germany, in 1862, Marcus went to school in Essen 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 the Beth Israel Hospital and for the Hebrew Association for the Blind. His son, Bernard K. Marcus, a graduate of Worcester Academy and Columbia University, joined the bank as cashier in 1913 and became vice president in 1918.
The bank initially 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 Trust Company with Bernard Marcus as the president. In August 1928, it absorbed the Cosmopolitan Bank.
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 book value[clarify] of $60 and a dividend 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 market failure on Black Tuesday.
In mid-1930, four leading New York banks-Manufacturers Trust Company, 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 Federal Reserve Bank of New York.
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 subsidiaries of the bank. Two days later, there was a run on a Bronx branch of the bank.
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Bank of United States AI simulator
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Bank of United States
The Bank of United States was a private New York City bank that operated between 1913 and its failure in 1931. Founded by Joseph S. Marcus, the bank grew rapidly between 1925 and 1929, merging with or acquiring several others and increasing its branches a dozenfold to over 60.
The December 1930 bank run on its Bronx branch is said to have started the collapse of banking during the Great Depression.
The Bank of United States was chartered on June 23, 1913, with a capital of $100,000 and a surplus of $50,000. Located at 77 Delancey Street in New York City, 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 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 United States Treasury 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.
The founder, Joseph S. Marcus, was a Jewish immigrant to the United States. Born in Telz, Brandenburg, Germany, in 1862, Marcus went to school in Essen 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 the Beth Israel Hospital and for the Hebrew Association for the Blind. His son, Bernard K. Marcus, a graduate of Worcester Academy and Columbia University, joined the bank as cashier in 1913 and became vice president in 1918.
The bank initially 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 Trust Company with Bernard Marcus as the president. In August 1928, it absorbed the Cosmopolitan Bank.
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 book value[clarify] of $60 and a dividend 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 market failure on Black Tuesday.
In mid-1930, four leading New York banks-Manufacturers Trust Company, 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 Federal Reserve Bank of New York.
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 subsidiaries of the bank. Two days later, there was a run on a Bronx branch of the bank.