Union Savings Bank - San Jose, CA

Bank Information

Episode Type: Suspension → Closure
Bank Type: savings bank
Start Date: March 10, 1896
Location: San Jose, California (37.297, -121.819)

Metadata

Model: gpt-5-mini
Short Digest: 977b7f9c

Response Measures

None

Description

Article (San Francisco Call, 1896-03-10) reports the bank's directors decided upon liquidation (voluntary) and that depositors will be paid in full. There is mention that some depositors' demands could not be met, but no explicit description of a depositor run. Bank Commissioners are investigating; liquidation implies permanent closure. 'Savings Bank' in the name does not clearly indicate national/state charter, so bank_type set to unknown.

Events (1)

1. March 10, 1896 Suspension

Cause: Voluntary Liquidation
Cause Details: Directors decided to liquidate the bank to realize upon large loans and avoid sacrificing securities; depositors will be paid in full per statements; Bank Commissioners to investigate.
Newspaper Excerpt: Although they have decided upon liquidation, everybody will be paid in full, and there is no cause for alarm.
Source: newspapers

Newspaper Articles (1)

1. March 10, 1896 The San Francisco Call San Francisco, CA

Article from The San Francisco Call, March 10, 1896

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Article Text

matter will affect any other bank in this town.' H. W. Wright, the president of the Union Savings Bank, said: "Although they have decided upon liquidation, everybody will be paid in full, and there is no cause for alarm. There is no possibility of anybody losing a dollar." Mayor Paul P. Austin, manager of the Savings Bank, said: "I have no the condition of the doubt Security bank that result affairs of the is such that it will in no and there is no reason for to worry. I it to depositors loss to anybody believe final outcome be only a temporary disaster. The will not result in loss to depositors, the same probably applying to stockholdoccasion which led up to within the ers. step is The purely There bank itself, this purely an internal affair. are no banks in the State in a better condition to-day than the banks of Santa Clara County." J. E. Auzerais, cashier of the Safe Deposit Bank, on behalf of the president, declared he was satisfied the depositors of Bank would the Commercial other be paid banks in full. It will affect none of the in town, and things will quickly resume of their normal condition. The officers the other banks expressed themselves with equal confidence regarding the absence of any cause for alarm on the part of the public of this city. In an interview with a CALL representative, B. D. Murpby, the president of the bank, said: "As regards the important action taken, it may be said simply that after due deliberation the directors of the bank deemed it advisable and for the best interests of all parties concerned-stockand depositors. The best business that could be sense holders brought to to bear susthe situation pointed a in order to of large loans number pension upon liquidate. have been A for which the are sound and good. perfectly made, unable securities The to parties raise owing the bank were money immediately in response to a call them. The demand of some depositors the bank in consequence upon upon circumstances could not be met. Under these it best to go into in a sacrifice of was order deemed to prevent liquidation securities. With time the depositors will be paid in full and a handsome balance will remain for the stockholders. "The Bank Commissioners are now on the and will make a thorough investiof the affairs of the ground gation institution. As soon as they complete their work the will be given to the is at this time, statement unnecessary only public. and in other the It way of reassuring the depositors creditors, to emphasize the fact of the solof the bank. The statement of the will speak for vency Commissioners that itself there and there is no possible doubt will be fully as favorable a showing as could be claimed even by the most sanguine official of the bank. "During the investigation by the Bank the Board of Directors and consult upon Commissioners will meet the of the situation Comday. After the report is furnished, a commissioners every The working notes and mittee will be appointed. will then in realized upon as as hand other and securities fast needless be taken business sacriprudence and care to avoid tice will warrant. Of course so important a was not taken by the directors withdeliberation and out step due consideration phase of the of every interest involved. A situation which is fortunate for commercial interests in San Jose is that our bank had no possible connection with any other in the city. It does not owe any other bank in town anything, nor did any of them owe us a cent." Bernard D. Murphy is one of the best men in the of California have known Democrats public long State. regarded Many him the ideal candidate he has always but as somehow for Governor, fallen that a little short of a party nomination for high office. He has been honored with the office of Mayor of San Jose, State Senator from Santa Clara County and often the position of chairman of the Democratic State convention. The Murphy family is one of the oldest in California. B. D. Murphy is to be worth very a and supposed richest nearly felt mil- the lion dollars, but recently he has need of ready cash. The Murphy ranch of 5000 acres at Mountain View is said to be worth $150 per acre. The ability of the bank to pay depositors and stockholders is not by who are familiar men protect with the questioned resources of the institution.