Page 34 - The History of Watertown Savings Bank_Neat

The economic by panicked WSB customers during the Great financial stability. In fact, the Great Depression
situation during Depression. The bank had earned the trust of the had drawn a new group of depositors to the
the Great community. Watertown Savings Bank – those who were
Depression In fact, the bank’s assets actually grew during seeking the “safety” factor for their money during
caused a wave this chaotic period. Mr. Hunt and the bank the 1930s.
of far-reaching trustees had positioned Watertown Savings Bank It was a trend that some other mutual savings
“bank runs” to not only survive during the nationwide banking banks nationwide had also experienced, described
by anxious crisis, but continue to thrive. As president, Mr. by a historical writer’s reflections - “the widespread
customers who Hunt was credited for providing strong leadership disillusionment following the gambling and
withdrew a large that “carried the bank forward constantly,” even speculation of 1929 and before, has sent flocks of new
extent of their during turbulent times. depositors to us.”
deposits in cash.
This widespread In 1933, president Franklin D. Roosevelt The historical account written in 1934 had
panic forced ordered banks closed for several days in an effort noted the new wave of depositors were “the more
many banks to to control the panic. But many never reopened advanced group who hitherto regarded savings banks
liquidate loans, their doors. as designed mainly for the backward.”
setting the path The Federal Deposit Insurance Corp. (FDIC) “They have learned that during the speculative
for bank failures was created that same year to provide security craze the savings bank…was in reality among the
nationwide. for customer deposits in individual accounts up few sane and progressive institutions,” the author
But in to $2,500, and build up confidence again in the wrote.
Watertown, the nation’s banking system.
diversity of the city’s income producing resources During the Great Depression, Watertown
had helped many of its residents survive the Savings Bank had remained solvent and
Great Depression, according to historical maintained its status as an independent bank.
records. Many other local banks throughout the country
A multitude of the city’s main industries and had been forced to become affiliated with larger
stores continued to operate, with employers ones in order to survive.
making efforts to spread out the work by But Watertown Savings Bank continued to
shortening hours, or carrying out repair and send out messages to its customers during the
improvement work when production demands Great Depression about the critical need to save
had dropped. Merchants extended credit and their money, and to discourage them from taking
landlords reduced rent as “practical ways of out loans during an emergency. Its advertising
meeting the situation.” focused on financial security, self-empowerment

The many years spent by Watertown Savings and informed investment practices.
Bank officials in building confidence among its Bank officials truly believed they were helping
customers had paid off. There was no “bank run” their customers to ensure their long-term

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