1175. County Bank (San Luis Obispo, CA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
March 10, 1899
Location
San Luis Obispo, California (35.283, -120.660)

Metadata

Model
gpt-5-mini
Short Digest
c563ff8a

Response Measures

None

Description

County Bank voluntarily suspended (posted notice) on March 10, 1899, citing inability to collect assets and anticipating liquidation; cause driven by local drought/poor business and directors opting for liquidation. No run on County Bank is reported; subsequent runs/suspensions affected the Commercial Bank. The articles state the bank was put into a process of liquidation, indicating permanent closure rather than a temporary suspension.

Events (1)
1. March 10, 1899 Suspension
Cause
Voluntary Liquidation
Cause Details
Directors voluntarily suspended the bank and put it into liquidation because of lack of business from an ongoing drought and inability to realize on assets.
Newspaper Excerpt
Owing to the fact that another dry year seems imminent, and our inability to collect on our assets, the directors have deemed it advisable to put this bank into a process of liquidation.
Source
newspapers

Newspaper Articles (9)
1. March 11, 1899 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, March 11, 1899

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Article Text

SAN LUIS OBISPO BANK SUSPENDS Closes Its Doors Because of Lack of Business Due to Absence of Rain. SAN LUIS OBISPO, March 10.-The business community was greatly astounded late this evening by the news that the County Bank of this city had voluntarily suspended. The information came at about dark in the shape of the following notice posted on the door of the bank: "Owing to the fact that another dry year seems imminent, and our inability to collect on our assets, the directors have deemed it advisable to put this bank into a process of liquidation. The assets are ample to pay all depositors as soon as they can be converted into cash. "R. E. JACK, Cashier." Cashier R. E. Jack made the following statement to-night: "There is an ample surplus on hand to pay all demands of depositors. The capital stock paid in amounts to $150,000 and the surplus $100,000. At the annual meeting to-day I explained the situation and argued that it was useless to keep the bank running when there was no opportunity to do any business, owing to the present outlook. We did not close for want of money, but closed the bank in order to protect all our creditors. Later the large depositors would draw their money, leaving only the small deposits, and then we would be obliged to close anyhow." The County Bank has been doing business here for many years, and for a while was the First National Bank. It has always enjoyed the confidence of business men and has been used as the repository of a large number of small depositors. Last year was dry in this section, and this year at present promises to be no better, although rain within a few days will make everything all right. Acting on the advice of the cashier the stockholders to-day thought it wise to suspend before worse disaster overtook the bank. 08:

2. March 12, 1899 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, March 12, 1899

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Article Text

BANKS BREAK IN CALIFORNIA. One Suspension Followed by OthersEarly Resumption Predicted. SAN LUIS OBISPO, CAL., March 11.The closing of the County Bank was followed to-day by the suspension of the Commercial Bank, of this place. Liabilities of the County Bank, $439,000, and the assets are placed at $650,000. The Commercial Bank is well connected with other banking concerns, and it is predicted that its suspension will only be of a temporary nature. SUSPENSION No. 3. PASO ROBLES, CAL., March 11.-The Bank of Paso Robles did not open its doors to-day. The failure of the County Bank at San Luis Obispo, and inability to realize on assets fast enough to meet depositors' demands are the causes assigned for the suspension, which it is thought will be temporary.

3. March 12, 1899 Virginian-Pilot Norfolk, VA
Article from Virginian-Pilot, March 12, 1899

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Article Text

SUSPENSION OF BANKS. THREE CLOSE THEIR DOORS IN CALIFORNIA. (By Telegraph to Virginian-Pilot.) San Luis Obispo, Cal., March 11.The closing of the County Bank was followed to-day by the suspension of the Commercial Bank of this place. Liabilities of the County Bank amount to $439,000 and the assets are placed at $650,000. The Commercial Bank is well connected with other banking concerns and it is predicted that its suspension will only be of a temporary nature.

4. March 12, 1899 The Morning News Savannah, GA
Article from The Morning News, March 12, 1899

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Article Text

California Bank Suspends. San Luis, Obispo, Cal., March 11.-The closing of the County Bank was followed to-day by the suspension of the Commercial Bank of this place. The liabilities of the County Bank amount to $439,000, and the assets are placed at $650,000. The Commercial Bank is well connected with other banking concerns, and it is predicted that its suspension will only be of a temporary nature.

5. March 12, 1899 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, March 12, 1899

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Article Text

AN LUIS OBISPO, March 11.-As was expected, when the Commercial Bank opened for business this S morning a number of depositors who had taken alarm at the closing of the Bank yesterday were As soon as the ing. County doors clamoring opened in wait- the for excited people began their money, and the tellers began handing it out over the counter as quickly as expert fingers could 'do it. In about ten minutes several thousands of dollars had been paid out, and the size of the crowd had not diminished. On the contrary every moment saw additions to the people, half frantic with the thought of losing their savings. One or two large depositors obtained their coin and took it to the Andrews Bank. The bank officials, realizing that a dangerous run was on, decided to close the doors. The depositors were notified that the bank would suspend temporarily, and would reopen again at the usual hour on Monday morning. The bank is considéred sound by conservative business men. It is connected with several banks in other towns. It is thought that by Monday the bank will be able to reopen. The Commercial Bank's connections are the California Mortgage and Savings Bank, branches in Cambria, San Miguel, Paso Robles and Guadaloupe in this county; one in Santa Maria, Santa Barbara County; the First National in Salinas, and the Swiss-American and Germania Trust Company of San Francisco. Of the latter bank Henry Brunner, formerly cashier of the Commercial, is now the president and represents an immense amount of capital. The cashier of the Commercial Bank, Hazzard Gragg. would not talk for publication and referred inquiries to the president, Hon. McD. R. Venable, who says the bank was totally unprepared for the run this morning. Had the depositors made no heavy demand upon it all would have been well. The bank had made full preparations to tide over another season of depression, which imminent, but seemed anticipated no of such a contingency as the closing the County Bank. The board of directors will meet tomorrow and decide what it is best to do-whether to reopen or remain closed until they can realize on their resources. The County Bank, which decided to close its doors last night, is now in the hands of the Bank Commissioner, who will arrive to-morrow evening and until he completes his examination and issues a statement nothing definite can be learned. The statement of the bank's condition as given by its cashier is as follows: Liabilities, capital stock, $150,000: surplus, $100,000; deposits, $348,000; other indebtedness, $87,000; real estate, overdrafts, bills receivable and other assets, $685,000. The Andrews Banking Company, of which J. P. Andrews is president, had quite a drain to-day, but nothing like a steady run, and it is thought this bank will not be crippled. It was not closed until the usual hour, 3 o'clock. The remaining bank, the San Luis Obispo, has in the last few years materially lessened its business. From a list of deposits of nearly three-quarters of a million it has decreased until its officers now claim less than $30,000, and

6. March 14, 1899 Evening Star Washington, DC
Article from Evening Star, March 14, 1899

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Article Text

DROUGHT AFFECTS ALL BUSINESS. Banks of San Luis Obispo, Cal., Close on That Account. SAN LUIS OBISPO, Cal., March 14.-The bank situation here is still unsatisfactory. The County and Commercial banks are still closed. President Venable of the Commercial said yesterday: "If it does not rain very soon, in order to make better times, our bank will not be opened." J. P. Andrews, president of the Andrews Banking Company, the only bank now doing business here, stated that he was receiving deposits and would weather the storm. It is stated that if much pressure is brought to bear in making collections by the closed banks, several business houses may be forced to suspend. Bank Commissioner Barrett is investigating the affairs of the County and Commercial banks, The branches of the Commercial at Cambria, Paso Robles and Templeton are closed.

7. March 15, 1899 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, March 15, 1899

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Article Text

FINANCIAL FLURRY HAS DIED AWAY Confidence Restored at San Luis Obispo. DEPOSITORS ARE REASSURED BANK SUSPENSIONS WILL COST THEM NOTHING. The Two Institutions That Withstood the Disturbance Are Not in Danger of Further Trouble. Special Dispatch to The Call. SAN LUIS OBISPO, March 14.-All signs of the financial disturbance, which began here on Friday, disappeared to-day, except the closed doors of the two suspended banks. Matters have resumed their normal appearance on the street and in financial circles. No further runs were attempted on either of the two banks that withstood the flurry, and there were no indications of further trouble. Commissioner Barrett concluded the examination of the Commercial Bank to-day. Though the showing is not as favorable as that of the County Bank, the depositors are amply protected, and will receive every dollar they have in the institution. The stockholders. however, will suffer much more heavily than those of the County Bank. Where the statement of the Bank Commissioner showed that the capital of the County Bank had been impaired to the extent of about $66,500, the same authority indicates that that of the Commercial has been impaired to the amount of $136,500. The condition of the bank as ascertained to-day is as follows: ASSETS

8. March 16, 1899 The Yakima Herald Yakima, WA
Article from The Yakima Herald, March 16, 1899

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Article Text

CALIFORNIA BANK FAILS. The Drought Responsible for the Financial Situation. San Luis Obispo, Cal., March 15.The bank situation here is still unsatisfactory The County and Commercial banks are still closed. President Venable, of the Commercial, said today: "If it does not rain very soon in order to make better times, our bank will not be reopened." J. P. Andrews, president of the Andrews Banking Company, the only bank now doing business here, stated that he was receiving deposits and would weather the storm. It is stated that if too much pressure is brought to bear in making collections for the closed banks, several business houses may be forced tosuspend. Bank Commissioner Barrett is investigating the affairs of the County and Commercial banks.

9. March 19, 1899 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, March 19, 1899

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Article Text

RAIN CHANGES THE FINANCIAL OUTLOOK SAN LUIS OBISPO, March 18.-Cashier Jack of the suspended County Bank says the question of reopening the bank soon will depend upon the actions of the directors, who will meet shortly. The situation has changed within the last few days, because of the rain. When asked in regard to the sale of beet lands which had been pending during the winter he could not say whether the deal would be closed now. It is late in the season to get the land into shape for beets. Although the sale is not acually off, he could not say what action the prospective purchasers would take. Mr. Jack added that since the rains had changed the outlook from gloom to brightness the bank had had many inquiries for lands, and it was the intention to dispose of as much as possible, and he felt confident a great deal could be placed within a short time.