Merchants National Bank (Sacramento, CA)

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Episode Information

Episode UID
1187501597
Episode Type
Run → Suspension → Reopening
Bank Type
national
Bank ID
118750 national
Charter Number
11875
Start Date
January 21, 1933
Location
Sacramento, California (38.582, -121.494)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
6de1af46632a8589

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Fed/other loan, Public signal of financial health, Capital injected, Partial suspension, Books examined

Clearinghouse involved: Yes (loan, examination, or other measures)

Events (4)
1. November 19, 1920 Chartered
Source
historical_nic
2. January 21, 1933 Run
Cause
Local Banks
Cause Details
Runs on other Sacramento banks triggered by closing of California National and California Trust & Savings banks.
Measures
Armored car and airplane shipments of cash from San Francisco and Bank of America; banks kept open and increased on-hand cash to meet withdrawals.
Newspaper Excerpt
Excited by news of the California National and the California Trust and Savings banks closing, frenzied depositors flocked to other banks in the city and started withdrawing their accounts.
Source
newspapers
3. March 2, 1933 Suspension
Cause
Government Action
Cause Details
Statewide banking holiday/moratorium proclaimed by California governor that closed banks for a multi-day period in early March 1933.
Newspaper Excerpt
Governor Ralph tonight proclaimed an extension of the California bank holiday until Thursday, March 9.
Source
newspapers
4. March 13, 1933 Reopening
Newspaper Excerpt
Reopening of banks under licenses issued by the secretary of the treasury and by state authorities commenced on March 13 and proceeded ... most 12th district banks had resumed customary operations, although a good many were either in the hands of conservators or had been closed for liquidation.
Source
newspapers

Newspaper Articles (12)
1. January 22, 1933 Martinez Herald Martinez, CA
Article from Martinez Herald, January 22, 1933

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GIRL FRIEND OF DROESCH IS HUNTED; MONEY SHIPMENTS HALT BANK PANIC SACRAMENTO BANKS STOP HEAVY RUNS Panic Believed Ended as $15,000,000 Is Sent to Sacramento Yesterday Senate Investigation of Bank Failures Will Be Made Says Assemblyman one of the largest money shipments ever made in the far west, was rushed to Sacramento late today by armored car and airplane to protect banks against threatened run. Excited by news of the Clifornia National and the California Trust and Savings banks closing. frenzied depositors flocked to other banks in the city and started withdrawing their accounts. Immediately. officials of the institutions ordered money from San Francisco to bolster the cash on hand. An armored car made the 90. mile trip here in one and onehalf hours. carrying $2,000,000 from the Federal Reserve Bank to the Capitol National Shortly afterward another million dollars arrived for the Capitol National, and an airplane brought ten million dollars from the Bank of America for its branch here. Anticipating the possibility of n serious run, A. P. Giannini, head of the Bank of America. sent word here to keep the bank open all night if necessary. to meet the demands of all depositors who wished to get their money. Banks were still open at 11:45 p. m. Other banks followed the same procedure, their officers insisting they were in sound condition and ready to handle any kind of a run Failure of the California National. one of the oldest banks in the state, came as distinct shock to Sacramento. Total assets of the two institutions had dwindled from $42,000,000 in 1929 to $22,000,000 today, but there had been no hint that the institutions were in serious financial straits. SACRAMENTO. Jan. 21 (UP) -An immediate legislative Investigation into the administration of state banking laws to determine whether state banks are given more or less examination as compared to national banks was planned here tonight by Assemblyman Melvyn Cronin, San FranCronin said he would introduce resolution in the lower house Monday calling for an investigntion of the collapse of the California National Bank and Callfornia Trust and SCavings Bank of Sacramento, which closed their doors today.

2. January 23, 1933 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, January 23, 1933

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BANK SCARE IN CALIFORNIA IS DISAPPEARING $13,000,000 Rushed By Plane and Armored Car to Sacramento to Stop Anxiety Sacramento, Cal, Jan 23. (UP)Despite the closing of one bank and runs on others in this city, banks of Sacramento to-day opened for business with increased deposits and an additional $13,000,000 on hand for any emergency. Further Withdrawals by depositors who became nervous Saturday when the California National bank and the California Trust Savings bank, one the city's oldest financial institutions, closed, were not anticipated. An armored car and an airplane were used to rush $13,000,000 from San Francisco to Sacramento when runs started on other banks in the city. As word of the arrival of extra funds spread, the line of anxious depositors dwindled and disappeared. A. checkup disclosed that deposits for the day had exceeded withdrawals. This was accounted for by the action of leading bustness men in making large deposits to restore public confidence in the banks. The Sacramento police force was Increased from 40 to 116 men to provide patrolmen for the residential distriects to safeguard persons who had withdrawn their money and hidden It in their homes.

3. January 23, 1933 The Sacramento Union Sacramento, CA
Article from The Sacramento Union, January 23, 1933

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BANKS TO AID BUSINESS Continuance of Assured in City (Continued from Page One) him the excitement was over in Sacramento. He said the bank had more than $2,000,000 in coin and the federal reserve bank in San Francisco ready its tremendous to send more. In assurance that business would continue normally, he stated he lieved banks "had the duty to keep payrolls going." Bank of America will be sympathetic to the business public that industry and employment may continue normally,' declared George W. Peltier, president the Bank of America. banking business of Sacramento will be carried just usual," he continued. assets the California National bank and affiliates will be distributed in short while. Inside of more than 75 per cent of the assets will have been turned back, taking the usual process of liquidation basis. Stockholders to Lose stockholders usually stand the loss in such situation. An average over period of the last 50 years in the United States shows an average loss of less than 15 per cent to depositors." Joseph H. Stephens, president of the National bank, clared the institution will today for usual.' He said the bank had plenty of money for depositors wished withdraw. Hilliard Welch, President of the Sacramento clearing house, on checkup yesterday found the total of deposits exceeded the withdrawSaturday as shown by the final checkup by the Capital National. the Merchants National and the Bank of America. Deposits are Made "The usual substantial deposits were made by large concerns and customers in all walks of life transacted their business as usual," he said. withdrawals were made principally by foreigners and smalldepositors. banks remained open until desired to secure their money could be accomodated Large payrolls ordinarly cashed the National bank were taken care of by the other banks in which added to the volume of work and materially creased the crowds in the bank High Praise From Rolland Vandegrift, state finance director, who is responsible California's millions praise both for the Sacramento bankers and the people. was the first Sacramen-

4. January 28, 1933 The Placer Herald Rocklin, CA
Article from The Placer Herald, January 28, 1933

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HERALD Oldest Paper California Subscription Year Shepard, Proprietor The Bank Situation The failure the Bank of Lincoln, the Bank Loomis and the National Bank of caused quite financial hysteria the past week. Runs the other Sacramento banks Saturday and Monday, but things have quieted down, the money availfor all those wanted light run also made the banks Roseville and Auburn, but money available to those wished withdraw. will embarrass any matter how strong, and most gratifying to know that the Auburn depositors reasonable. have banks order do business, all good citizens should discourdisparaging statements. Auburn Bank of America of mammoth parent instioffspring while the Placer County Bank of strongest individual banks be found anywhere. Alden to president the Capital Anderson, Bank (not the California National also the National) Placer County Bank. president National Bank Capital and strongest banks safest California.

5. February 4, 1933 The Mountain Messenger La Porte, CA
Article from The Mountain Messenger, February 4, 1933

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Some Editorial Opinions OF CHAOS EMERGES OUT STRENGTH Closing of the California National Bank and the California Trust and Savings Bank in Sacramento and the branches North Sacramento, Loomis, Arbuckle and Ione last Sat urday morning was most unfortunate occurence. It cast pall of gloom over tens of thousands of Northern California homes and business enterprises. caused near financial panic, during which there were runs on the other Sacramento banks, all of which were successfully withstood. Again we say was an unfortunate and untimely that would never have occurred had the State bank examiners been strictly on the job, looking faithfully after the interests of the depositors. Affairs should never have been permitted to reach such an acute stage that closing, the first in Sacramento's banking history, became necessary. Unquestionably the fundamental causes the temporary closing of the banks were the heavy loans made on farms and real estate, which rapidly depreclated in value during the depression. The bank examiners should have put stop these loans before it became too late. But out of the past few panicky days emerges an heroic President Alden Anderson of the Capital National Bank of Sacramen to. Facing run on his bank that would have closed many similar in stitution, President Anderson calmly stood in the entrance and invited all who desired to do to withdraw their money, bringing millions from San Francisco meet their demands. The bank weathered the storm superbly. Tuesday money was flowing back into its vaults and many counts had been opened. President Anderson's attitude had had its calming effect on the excited populace. run on the bank had proven boomerang However, two things stand out. One that people need not fear the loss their deposits. The banks will without doubt re-open with new financial backing and will meet their obligations as near to dollar for dollar as humanly possible under the circumstances. The other thing that there too much gambling with depositors' money modern banking. too many risks recklessly taken. When you deposit your money in bank should be safe there until you draw out. And is up to you through adequate legislation. that safe. Better banking laws are required and must be passed and enSacramento TribuneProgress.

6. March 2, 1933 Las Vegas Daily Optic East Las Vegas, NM
Article from Las Vegas Daily Optic, March 2, 1933

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SEVENTEEN STATES CHECK RUNS ON BANK Seven More Join Movement to Restrict Withdrawals of Deposited Moneys THREE AND FOUR DAYS TO BE TEMPORARY HOLIDAYS Situation Easing in Some States as Legislatures Planned Curb Laws Mississippi, Arizona, Nevada and in Oregon today joined the states. which there are limitations placed on the withdrawals of deposits from banks. in which limitations on withdrawals now exist. The proclamation of Gov. Ralph at San Francisco makes mandatory the closing of California banks (or three-day period ending Saturday The three-day holiday called Gov. Murray in Oklahoma for same period also is mandatory. The of Gov. Allen of Louisiana provides for the sation until the end of the week "all public business including Banks and other public enterprises." Mississippi the decree of state banking called only (Continued On Page Two)

7. March 2, 1933 Daily Times-Advocate Escondido, CA
Article from Daily Times-Advocate, March 2, 1933

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BANK CLOSING'S EFFECTS Thousands of theories are being voiced as to the causes and effects of the closing Thursday morning of all of the banks in California. Wise men who stand high in the financial world differ in their opinions on these two angles of the great crisis, so one guess is just about as good as another. But the fact remains that the three-days' holiday of closed banks will surely prevent any "run" on the banks which might come at this time. And "run" on bank is the worst thing that can happen, financially, to any community. It means, if carried far enough, that the bank must close permanently, and that means loss to the depositors as whole and the men who stand back of the bank stockholders. By the time the banks re-open next Monday it is thought the frenzy of withdrawal will have been overcome either in the minds of the people or through legislation making it compulsory. Other states that have declared similar banking holidays are now re-opening their banks with satisfactory results and business resumed in the normal channels. Let us have faith that this will be the outcome in California. Meanwhile, efforts to continue trade and business activity as usu will be made in Escondido. with an exchange worked out on confidence in the integrity of the merchants, business men and all citizens whose promises to pay are regarded as "good." So the whole thing sifts down to the matter of confidence, which is really the ultimate need and necessity of the situation, all the way from Escondido to New York, or even to Washington.

8. March 5, 1933 The Washington Herald Washington, DC
Article from The Washington Herald, March 5, 1933

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EVEN 'SPEAKS' FACE CLOSING New York Booze Purveyors Hit by Bank Holidays; Cities Take Drastic Steps NEW YORK, March 4. (U.P.) If extended over a sufficient period, the bank moratorium may close New York's speakeasies, Chief of Police Edward P. Mulrooney said hopefully today. "If we go on a scrip basis, the speakeasies will fade away. I never heard of a speakeasy that could survive on scrip. There isn't enough mutual con fidence in that game." Speakeasy proprietors h were hard hit by today's bank action. Most of them reported a falling off of 25 per cent of their normal Saturday business. CLEVELAND, March 4. (U.P.) Currency will be replaced by scrip in Cleveland next week. An announcement late today after a conference of bankers, said. certificates would be issued by the Cleveland Clearing House Association for use by employers in paying salaries and wages to employes. The certificates will be in denominations of $1, $2. $5 and $10. They will be acceptable by stores in exchange for goods needed. WILMINGTON, Del., March 4 clared a banking holiday until further notice from Governor C. D. Buck. Delaware was the last State to enter the nation-wide bank holiday. "We had to do it," said Otto Nowland, president of the Wilmington Clearing House Association. "Our banks are sound, but due to the national situation we had to come in. We are proud Delaware was the last State to declare the bank holiday." PITTSBURGH, March 4 (U.P.). Hard-pressed taxpayers of Allegheny county, facing sale of their properties for delinquent taxes Monday, were given a moratorium today in view of Pennsylvania's two-day banking holiday. Sheriff Frank I. Gollmar announced the sale would be postponed until Friday because many taxpayers. with money in banks, would be unable to secure the cash required to bid in their properties. RICHMOND, Va., March 4 (U.S.) Virginia is to have a banking holiday Monday and Tuesday Attempted heavy runs here today caused it to be announced that all Richmond banks will be closed two days. Governor Pollard previously had said he saw no necessity for the holiday The State Corporation Commission this afternoon issued the order limiting withdrawals from numerous banks in the Valley of Virginia. DETROIT. March 4 (U.P.). City officials, merchants and members of the Detroit Clearing House Association were considering plans tonight for the issuance of scrip to supplement the sharply curtailed supply of currency City Comptroller Charles E. Gightor announced he would call a meeting of merchants and business men on Monday to consider plans for the issuance of $20,000.000 in scrip against delinquent or future tax receipts. The Clearing House Association likewise was formulating plans for issuance of scrip as a lien against frozen bank deposits. NEW ORLEANS. March 4 ((U.P.) Mayor T. Semmes Walmsley today warned residents of New Orleans against overstocking their homes with food. declaring: "It may be difficult to get new stocks of foodstuffs into the city if the present supply becomes exhausted.' The mayor ordered a large chain grocery store to limit its sales. SACRAMENTO. Cal., March 4 (U.P. .-Governor Ralph tonight proclaimed an extension of the California bank holiday until Thursday, March 9. The new three-day period will begin Monday with general holiday similar to the one now in effect, the governor said. JACKSON, Miss., March 4 (U P.) -Mississippi banks remained open today. J. S. Love. State superintendent of banks, issued a mandatory to all banks to allow no depositors to withdraw more than 5 per cent of his total balance DAYTON. Ohio, March 4 (U.S.) Bankers and merchants agreed today on system of clearing house scrip to meet the shortage of currency during the bank holiday The scrip will be issued beginning Monday in denominations of $5 and $10. $2. -Buy and Be American- MEMORIAL SERVICE A memorial service for the late Grand Duke Alexander of Russia will be held at 12:30 o'clock at the Russian Church of St. Nicholas, 1814 Riggs Pl. N. W.

9. March 5, 1933 The Los Angeles Times Los Angeles, CA
Article from The Los Angeles Times, March 5, 1933

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EXTENDS BANKING HOLIDAY FOR Both Legislative Houses Approve Bill to Allow Continuance; Adjourn to Tomorrow BY CLEAVES JONES Staff SACRAMENTO, March of the bank holiday for Monday, Tuesday and Wednesday was ordered this afternoon by Gov. Rolph while the Legislature made appretoward legislation to ease the situation and allow progress banks to resume activity, but under restricted conditions. Monday will be general holiday, similar to the last three days, but Tuesday and Wednesday, under bill passed the Legislature today, will special holidays. courts and public offices functioning The authorize SuperintendBanks Rainey to set limit from banks the subject discussion all afternoon the conflicting elements appeared nearer The "suspension" provision changed limitation. The bill requires that banks treated equally. The uniform provision was demanded many bankers. also exempts public fund deposits of State, county and city, that public business proceed unhampered in that respect. ACTION DUE TOMORROW Theodore Roche, acting Gov Rolph's representative, wired the contents of the bill to Washington, where will scrutinized the Comptroller of the Currency. meets with his approval the bill will placed before Senate and Assempassage, possibly Monday. This was explained necessary for the reason that the Comptroller, under Couzens resolution has authority co-operwith State banking officials, but restricted along lines. the purpose to have the Comptroller ruling national banks and the Superintendent Banks ruling State banks in parallel lines. Both houses adjourned until Monday morning. The atmosphere in Sacramento tonight shows more hopeful tinge, the expectation that the legal and technical obstacles will be come by the latter part of the coming week. LEADERS IN CONFERENCE After several days of conflict and uncertainty, large group of legislators. bankers and business men met the Governor's council room and work the bill. group included the Senate and Assembly Banking, Finance and Ways and Means committees. Edward Elliott, chairman of the California Bankers' Association legislative committee; Williams for America, and representatives individual and independent banks: Teague the State Chamber Commerce: Building and Loan Commissioner Richardson, Rainey. Roche. Speaker Lit. and Webb. Senator McKinley and Assemblyman Williamson, chairman of the two and the introducers presided. The first amendment took from Rainey what was described dictatorial powers, which would have permitted him according to some fears, to set different rates of withdrawals in different banks. The limitation period restricted to sixty days, but can be renewed. WASHINGTON TO ACT "The situation all over the country has changed four hours," said Rainey. Federal Reserve banks in many not doing business. We expect some sort legislation

10. March 5, 1933 Nevada State Journal Reno, NV
Article from Nevada State Journal, March 5, 1933

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California Bank Extended Holiday Until Thursday Few Institutions Expected to Open Tuesday Morning SAN FRANCISCO, March Federal Reserve Bank of San Francisco closed today for the duration of California's banking holiday. Rolph tonight proclaimed an extension of the Callfornia bank holiday until Thursday, March The new three-day period will begin Monday with general holiday similar to the one now in effect. the governor said. The holiday Tuesday and Wednesday will be effective under terms of the special holiday bill passd today by the legislature. Provisions of the bill affect only banks and permit them to open or remain closed, it was explained. The action was taken by the governor after the assembly had approved the special holiday bill by vote of 54 or by exactly the required two-thirds vote. The senate passed the measure with only one opposition vote. The holiday extension will be fective for the three-day period re. gardless of what action is taken on specific bank bill now before the legislature, the governor said. Action on this measure was delayed until Monday. SAN FRANCISCO, March officials were bit puzzled tonight as they tried to determine course of action to follow Tuesday, when "special holiday," proclaimed by Governor Rolph, becomes effective. Under bill passed by the state legislature late today, the governor was permitted to proclaim special as well as general holidays. The banking moratorium was extended until March with the understanding that Monday would be general and Tuesday and Wednesay a cial holiday On special holiday banks may close or be opened as their officers desire. It was believed some banks would open Tuesday and Wednesday while most of them would remain closed until the legislature approves bill permitting restriction of withOfficials of the Bank of America discussed the situation tonight but said they probably would not reach decision or have an announcement to make until Monday. Wells Fargo Bank and Trust Company officials were understood to be desirous of opening Directors of other banks preferred to follow along with the majority and wait for some protective legislation.

11. March 7, 1933 The Minneapolis Journal Minneapolis, MN
Article from The Minneapolis Journal, March 7, 1933

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Clearing House Scrip Plan Starting Friday Approved Continued from page in this situation was "no meeting surprise other country would have taken the situation calmly said. manner people has and to the out the has been lant New Regulation Waited The reopening made banks many states hastened take vantage At the treasury, the White House and on Capitol Hill participated in by RooseSecretary Woodin etal forward the fort to bring an orderly passage the muddled economic situation In some quarters. another bank Ing regulation was expected which would permit with draw one-third their deposits Roosevelt Thanks Hoover President Roosevelt today gland hurriedly through an tion mail telegrams before of again devoting his attention to the banking crisis. chief executive remained the White House the ing and the Early, of Mr. Roosevelt's was done the President's convenience. Through Early. the chief expressed his the issuance by former President Hoover in New of statement urging co-operation for Mr. Roosevelt's policy in the bank. ing emergency. Roosevelt planned today begin drafting his message the special session of congress which meets day after tomorrow though he already formulated the outlines of the proposals will the White House had had time to work on the itself and intended considerable portion the day to Bans Currency Withdrawals The regulation issued "Any institution lawful engaged in serving registrar of stocks or bonds. transfer agent. guardian estate signee. receiver. committee of in any other fiduciary capacity. may transact such business the mal and usual manner: provided that in the said busi except may permitted by other regulations of the secretary, such banking institution shall not pay out or the withdrawal coin withdraw any trust fiduciary funds deposit any other department the bank quiries, it was said at the treasury regulations issued by Secre Woodin are being communicat ed through federal reserve order permitting the use of cash food being interpreted by bankers in the west permitting them furnish funds for market which are to be used for bank closed by both state federal would about easing the situation under the new treasury would depend upon their state regulations. OHIO BANKS UNDER March The majority Ohio's 800 banks opened today almost the Identical regulations placed them week ago. In largest than under state law permitted banks on old deposits cent Febru27 balances, stipulated that new deposits must held subject on mand without restriction or limita few Ohio banks which placed last and did not segrenew were forbidden pay out money though received new deposits for BANKS REOPEN ON RESTRICTED Koeneke, Kansa. state bank authorized the im. mediate reopening of state banks for business on restricted basis outlined by Secretary of the Treasury Woodin. Deposits made the banks Saturday may returned the depositors in full Koeneke the banks but per cent deposits books previous March may not withdrawn. CALIFORNIA MOVES TO RESUME BANKING San March Far and state today such as permitted issue scrip generally conform with national provisions. Clearing house certifictes ready printed in Seattle and Los Angeles, from eujation pending receipt detailed rules from the secretary of the Gold reported appearing trade channels. Bankers said hoarders apparently were being forced by currency turn loose the yellow coins. FLORIDA TO RESUME RESTRICTED BANKING March Banks Miami Tampa planned to reopen treasury department restrictions today make change and carry other limited functions while state conferred the Florida ing situation. Circuit Judge Frank Birdseye View of Banking Situation Over the Country Associated State after state announced the of today in line with ruling Secretary the treasury permitting the transaction of essential business. Each institution may "meet the needs Its community for other necessities life. for the relief of distress, for usual salarles' and for other similar enbe made, currency may be changed, but gold gold certificates shall paid out. States which had given their governors regulate Included York and The New York executive net up corporation for the issustatewide Scrip manufacturers said they had little to fear from counterfeiters because an design they are employing. Chicago's medium will pic. ture Abraham Lincoln: New York's will Its coat arms, and Philadelphia's boast likeness of Benjamin Smith signed an order providing on fore closure sales in Orange and Osceresult of the banking situation. QUICK RETURN NORMAL BANKING SOUGHT New March certed efforts to transfuse enough life into nation's money teries to finance ordinary breadbusiness hastened the day America' mobanking holiday And nation which had develhighly organized and efficient system of settling per cent business with checks found that. the highcomplex procedure was not easTrue, bankers pointed out, scrip clearing certificates have in this country before. In the banking groups quickly ganized and the supplemenmedium exchange But to with much more of the country's conducted on national scope, many executives feel banking must be restored quickly national basis. Most the leading corporations the today do business almost every Therefore, form emergency used City, must be so drawn by furniture Grand Rapids, unless the manufacturer is prepared extend almost credit distributors Kansas City and points. the banking problem being dealt far Individual ies states on separate schemes, while Washington authorities are trying to piece them together. Governor Lehman has worked out statewide plan for New York the New York has New city plan which may plan. the Governor Lehman explained his state plan might absorbed by national What banking authorities particularly anxious avoid foreign exchange market in the commanding would make business costly and uncertain. CHICAGO'S LARGEST BANK OPENS: OTHERS TO FOLLOW Chicago March Chicago's National Bank and Trust Company, opened to operate authorized by the the treasury. some other banks they would do later The other banks their decision because the belief the restrictions conflicted the Illinois holiday declared by Governor Henry Horner Layburn bank examiner announced after telephonall national banks should obey the orders and disregard state bank orders. HOARDS REPORTED March New York banks today hardships among their millions of depositors Immediately upon receipt of Secretary mitting reopening accounts funds cient to and food needs they were open for such busi- Hoarded gold is being deposited Irving Trust Company announced shortly But the from Woodin meant technical difficulties for the banks means one banker said, "that some responsible officer each branch must interview each person to determine there the funds different Each case probably will Among the major banks open der the provisions Morgan Bankers Trust Bank Corn Ex Bank Trust Company Bank Trust Company Irving Company jungle plant intensively Brazil manufacturers of insecti-

12. March 30, 1933 Auburn Journal Auburn, CA
Article from Auburn Journal, March 30, 1933

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BUSINESS CONDITIONS IN 12TH DISTRICT Banking developments in the 12th district, as in the United States generally, were of dominant importance during late February and the first half of March.- No outstanding changes in the general business or financial situation had been apparent during the first six weeks of the year, although the failure of two rather large and several smaller banks in January had been followed by withdrawals of deposits from other banks. About the time that the force of this adverse influence appeared to be coming to an end, however, widespread publicity given to the Michigan banking moratorium and to other unfavorable banking situations began to have an effect in the 12th district, and immediately following announcement of banking holidays or restrictions in other eastern states on February 25 a substantial run on California banks developed. This relatively heavy run lasted for three days -February 27, February 28 and March 1-when it was brought to an end by a proclamation of the governor of California closing all banks in the state for a three-day period. This action in California was followed by runs on banks in other far western states and by March 3 emergency banking restrictions had been placed in effect in all 12th district states. Withdrawal of currency during the week ending March 1, while at a re. cord rate, was SO short-lived that its effect upon district banks deposits was relatively small. Currency payments by banks to depositors were about 30 million dollars during the week ending March 1, compared with deposits in those banks of considerably more than three billion dollars at the beginning of this year. Banks met the unusual demand for currency by borrowing from the Federal Reserve bank of San Francisco and by drawing upon their reserve balances, which had been built up during the first half of February through transfers of funds from other parts of the United States. Reopening of banks under licenses issued by the secretary of the treasury and by state authorities commenced on March 13 and proceeded 20 most 12th district banks had resumed customary operations, although a good many were either in the hands of conservators or had been closed for liquidation. Currency which had been withdrawn prior to the closing of banks on March 2 was redeposited in large amounts between March 13 and March 20 and considcrably more gold coin was turned in to the Federal Reserve bank of San Francisco than had been withdrawn from January 1 to March 4. 1933. Redeposited currency was sent in to the reserve bank to repay borrowings and to increase reserve balances. Volume of production was slightly smaller in February than in January. Department store sales and intercoastal trafic through the Panama canal increased, but the number of cars of freight loaded on district railroads during the month decreased. Other trade measures changed little. Petroleum production during February approximated that of the preceding month. The cut of lumber declined contrary to the seasonal movement and the volume of engineering construction decreased sharply. Employment conditions remained about the same in February as in January. Commodity prices declined slightly during February, but advanced considerably during and immediately following the banking holiday in March. Non-statistical reports inicate that the banking restrictions during the first half of March reduced business activity. particularly retail sales volume. The engagement of Miss Edna May Bradbury and Willis Cruse has been anounced. Miss Bradbury, laughter of Mr. and Mrs. Lou Bradbury. was the incentive for a surprise party one recent evening given by a number of friends. During the evening she was presented with a shower of gifts for her new home.