1205. Bank of Willows (Willows, CA)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
January 23, 1933
Location
Willows, California (39.524, -122.194)

Metadata

Model
gpt-5-mini
Short Digest
331f78f9

Response Measures

Full suspension, Books examined

Other: Receiver appointed and liquidation undertaken; business men discussed scrip/clearing-house style measures for local trade.

Description

Articles report heavy withdrawals after the failure of the California National Bank (Sacramento) around Jan 21, 1933; the Bank of Willows' board closed the bank (failed to open) Jan 23, 1933 and state examiner took charge. A receiver (Carl E. Wagner) was appointed and began duties in mid-February 1933. Thus a run led to suspension and eventual receivership/closure. (A 1932 item lists a loan to the Bank of Willows and uses the word 'receiver' possibly due to OCR or earlier action; main closure sequence is Jan–Feb 1933.)

Events (3)
1. January 23, 1933 Run
Cause
Local Banks
Cause Details
Heavy withdrawals following the failure/closing of the California National Bank in Sacramento (panic contagion from another local bank).
Measures
Board of directors closed the bank (failed to open) after conferring with state banking officials to forestall runs.
Newspaper Excerpt
Heavy withdrawals which followed news of the California National's failure were the direct cause of closing the banks.
Source
newspapers
2. January 23, 1933 Suspension
Cause
Local Banks
Cause Details
Board ordered closure/suspension as a protective action in response to heavy withdrawals precipitated by the California National's failure; state examiner took charge under banking law.
Newspaper Excerpt
The Bank of Willows ... failed to open their doors for business today ... Boards of directors ... felt that their institutions were incapable of withstanding the threats of runs. State Bank Examiner Matthews took charge.
Source
newspapers
3. February 16, 1933 Receivership
Newspaper Excerpt
Wagner Begins Duties as Bank Willows Receiver ... Carl E. Wagner of San Francisco, receiver of the Bank of Willows arrived here Tuesday and has commenced his duties.
Source
newspapers

Newspaper Articles (16)
1. August 22, 1932 The Modesto Bee Modesto, CA
Article from The Modesto Bee, August 22, 1932

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TRIMBLE HITS BACK Official Denies He Sought To Gain Favor With Speaker John Garner During the ten-day period from July to July 31, the reconstruction corporation to banks, and loan ciations, and other agencies. The first report of the corporapublic to-day by South Trimble, of house representatives, accompanied letter signed by Chairman Atlee Pomerene showing that loans totaling $45,057,556 had been made during the ten-day riod and loans thorized prior July 21 had totalled Banks Get Most The letter the total amount loaned, authorized banks and trust companies, including to the closed banks; $104,309 to agriculture credit corporations; $3,088,650 building and loan $2,247,500 $90,000 joint stock land bank; $580,716 livestock credit porations; $747,000 mortgage companies, and $6,862,700 railroads. Trimble in making public the following his decision last Thursday that he had no other choice the law, took exception Representaconferee on the relief bill, that his decision to make public the reports gain favor with Speaker John Garner. Chairman Pomerene's letter said the close the period except $25,000,000 of the $250,000,000, second series 3½ per cent notes authorized by of June 1932, had been sold the secretary of Loans In California The statement of loans authorized California during the tenperiod under section the of interest per includes Long Beach, First National Bank Long Beach, $200,000. Los Angeles, Wilshire National Bank of Los Angelees, Monrovia, Citizens' Bank of MonRialto, First National Bank, $25,- Sacramento, California National Bank of Sacramento, California Trust and Savings Bank, $850,000. Francisco, National Trust and Bank of America, $3,800,000. Santa Ana, Farmers and Merchants Savings Bank of Santa Ana, $275,000. Santa Ana, First National Bank of, Santa Rosa, Exchange Bank, $58,000. Victorville, First National Bank of, (receiver) Willows, Bank of Willows, $140,000.

2. August 23, 1932 The Washington Herald Washington, DC
Article from The Washington Herald, August 23, 1932

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BARES REPORT State Bank of $12,erty, 250; Taylor, Bank of Taylor, $9,Reno National Bank, $693,000, in three installments. West Seattle State Bank, Security State Bank, Milwaukee, Badger State Bank, $225,000; North Avenue State. Bank, American National Bank, CALIFORNIA LOANS In addition to the $3,800,000 loaned to the Bank of America National Trust and Savings Bank, the following loans were made to California banks: Long Beach, Calif., First Na tional Bank, $200,000; Angeles, Wilshire National Bank, Monrovia, Monrovia Citizens Bank, Rialto, First National Bank, Sacramento, California National Bank, California Trust and Savings Bank, Santa Ana, Farmers and Merchants' Savings Bank, First National Bank, Rosa, Exchange Bank, Santa First National $58,000; $8,500; Willows, Bank (receiver), Bank of Willows, $140,000.

3. January 23, 1933 Imperial Valley Press El Centro, CA
Article from Imperial Valley Press, January 23, 1933

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FIVE SMALL BANKS CLOSE SAN FRANCISCO, Jan. 23. U.P.) Reverberations of the failure of the California National bank in Sacramento were felt in other northern California towns today when five small banks were closed on orders of their boards of directors. The Banks of Willows, Bank of Courtland, Bank of Folsom, the Fair Oaks bank and the Colura County bank failed to open their doors for business today, according to word received by the state bank examiner's office here. Boards of directors of the five banks felt that their institutions were incapable of withstanding the threats of runs. Heavy withdrawals which followed news of the California National's failure were the direct cause of closing the banks. The action was taken after the boards had conferred with state banking officials who agreed it would be best to close the banks before runs might develop. Total assets of the institutions were not available here. State banking officials did not look upon the situation with alarm. They pointed out that after the first flare of hysteria in Sacramento, when the California National closed, depositors in other banks quieted down and deposits exceeded withdrawals. "Closing of the five small banks today was merely a reflex of the situation in Sacramento," said Edward Rainey, state bank examiner.

4. January 23, 1933 Appeal-Democrat Marysville, CA
Article from Appeal-Democrat, January 23, 1933

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SAN Jan. 23, of the failure of the California National bank Sacramento were felt in other northern California towns today when five small banks were closed on orders of their boards of tors. The Bank of Willows, the Colusa County Bank, Bank of Courtland, Bank of Folsom and the Fair Oaks bank failed to their open doors for business today, according to word received by the state bank examiner's office here. Heavy withdrawals which followed news the California National's failure the direct cause of closing of the banks. The action was taken after the boards had conferred state banking officials who agreed would best close banks before runs might develop. State banking officials did not look upon the situation with alarm. They pointed out that after the first flare of hysteria in Sacramento, when the California depositors in other banks quieted down and deposits exceeded withdrawals.

5. January 23, 1933 Santa Maria Times Santa Maria, CA
Article from Santa Maria Times, January 23, 1933

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More Close Doors SAN Jan. Reverberations of the failure of the California National bank in Sacramento were felt in other northern California towns today when five small banks were closed on orders of their boards directors. The Bank of Willows, Bank of Courtland Bank Folsom. the Fair Oaks and the Colusa County bank failed to open their doors for business today. according to word received by the state bank examiner's office Boards directors of the five banks felt that their institutions were incapable of withstanding the threats of runs. Heavy withdrawwhich followed news of the California National's failure were the direct cause closing the banks. The action was taken after the boards had conferred with state banking officials who agreed would be best to close the banks beruns might develop.

6. January 23, 1933 The Chico Enterprise Chico, CA
Article from The Chico Enterprise, January 23, 1933

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Five Banks in Valley Closed By Withdrawals Ed Rainey. state superintendent of banks, announced today that five Sacramento Valley banks closed their doors today because of heavy withdrawals. due to closing of other banks in the district. The banks which failed to open for business today were the Bank of Courtland, the Colusa State Bank, the Bank of Folsom, the Bank of Willows and the Fair Oaks Bank. Saturday the California National Bank California Trust and Savings Bank of Sacramento among the oldest banking institutions of the state, closed their doors. Bank officers at Willows blamed frozen assets added to heavy withdrawals. The bank was established in 1882. Of the five towns where banks closed today. only Willows and Colusa have further banking facilities. There is also in Willows the Bank of America branch and the First National Bank of Willows. In Colusa there remained, Rainey said, First Savings Bank. Rainey said closing of the banks was more protective measure to safeguard deposits. Ht said he did not regard the situation "critical" and after telephonic survey of the situation Sacramento said banking conditions theer were "favorable.' According to reports received this afternoon, was the Colusa County Bank and not Colusa State Bank that closed its doors this morning following run.

7. January 23, 1933 The Chico Enterprise Chico, CA
Article from The Chico Enterprise, January 23, 1933

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Local Depositors Remain Sensible in Bank Situation; Refrain From Withdrawals At all three of the local banks it was admitted today by officers in charge that more or less panicky feeling existed as result of the news Saturday the closing of the California National bank and reports this morning of the suspension of the Bank of Willows. At the Bank of America, according to statements by S. K. Troxel and E. Williamson. and judging by the number of coming and going in the bank, only normal conditions prevailed. No restrictions whatever upon withdrawals of savings funds, were imposed and there was but little evidence of uneasiness on the part of patrons. At the First National Bank Paul S. Yockey, cashier, stated that he was confident that the whole situation would clear up in few weeks at most. He wished to emphasize the fact that the Capital National Bank of Sacramento, of which Alden Anderson is the head, as well as being the president of the First National Bank of Chico, is not the California National which closed Saturday The names of the two. Sacramento banks are somewhat similar and there was belief on the part of a few persons here and there that it was the Anderson bank that had closed. Ninety-Day Notice Yockey announced that in fairness and justice to all the depositors of the First National and for their protection as well as for that of the bank, the usual 90 days notice would be required of savings depositors who wished to withdraw savings funds. This notice he pointed out is part of the agreement entered into between the bank and depositors when an ac-

8. January 23, 1933 The Chico Enterprise Chico, CA
Article from The Chico Enterprise, January 23, 1933

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Bank of Willows Fails to Open Bank of Willows, oldest in Glenn county, failed to open today and State Bank Examiner Matthews took charge. Bank officers blamed heavy withdrawals and frozen assets. The bank was established in 188'. Ellis Levy of San Francisco is its president.

9. January 26, 1933 The Glenn Transcript Willows, CA
Article from The Glenn Transcript, January 26, 1933

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Bank of Willows Closed Its Doors Monday Morning Bank of Willows, one of the influential and largest banks In the Sacramento valley, closed its doors last Monday. notice was posted on the door by Edward State Bank Examiner, through Deputy aminer, which stated: have taken of the sets of the bank under provisions Section 136 of the Banking Act of the State of California". The closing naturally caused sation. Citizens gathered in groups Tehama street, discussing occurred even bordering on the hysteria which generally marks bank suspensions. The depositors were calm and hopeful. The directors of the bank the morning issued the following statement: "Owing to conditions caused by the recent suspension several well banks the Sucramento valley including the closing of The Calfornia National Bank and California Trust Savings Bank of Sacramento Saturday, January 21, the Board of Directors the Bark of Willows un. animously decided ask the State Banking charge of the Bank of Willows order to tect the interests of the deposi- On Monday as of the suspension operations the California National Bank and California Savings Trust company be. sides the Bank of Willows there were four other banks which closed: Bank of Courtland, Bank of Fair Oaks Bank of Folsom and Colusa County Bank. LOCAL BANKS MEET DEMANDS The Bank of America and the First National Bank were equal the casion. Their sound condition and sources were ready to meet any demands. The First National Bank in anticipation of withdrawal requests early in day received $15,000 from the Federal Reserve Bank of Sacramento. Up to today both local banks report proceeding nothing had happened." The First National reported only withdrawals of small accounts, and that there would be no occasion to use the $15,000 received from Sacramento. New accounts have been opened both banks, and more money deposited than paid out. Willows has shown its confidence the two remaining banking institutions and their management. They both have the resources to meet the situation in this locality. May Reorganize and Re-open The closing of the Bank of Willows most regrettable blow to the tire county. Organized in 1882 an stitution 80 large and extending its fluence into so many homes and busiestablishments could fall be acutely felt. The money, however, deposit will not lost. The closcreates and time must elapse to liquidate its affairs. At meeting of business men held on Monday evening confidence that the Bank Willows pressed would due time be in position to in dollar of its deposits. They pay every also expressed confidence that action would be taken within short time for and reopening. $450,000 in Capital Attorney Duard Geis at the meetthat ing on Monday night stated that the Bank Willows had approximately Glenn Rev. Glenn weeks Glenn 1900 the First where Glenn fortunate real estate valued $84,600 series owned on held Silver cashier. Dr. must this Joe work and information of the bank's county standing be given out as quickly served this consolation for the lows strong the lows: sit steady in the and Willows and $570,880; shape. Fair The the only lusa.

10. January 27, 1933 Willows Daily Journal Willows, CA
Article from Willows Daily Journal, January 27, 1933

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receiver, and of E. M. Garrison first assistant receiver of the Bank of Willows asked in petitions being borrowers. Receivership by local men would be much less expensive and would save the depositors great deal money Walter H. Michael has the confidence of the depositors and of the entire The petition follows: "Whereas, Walter H. Michael has, for the past two years. been the appraiser, and inspector, for the Bank of Willows in regard to all of its loans upon livestock and real estate, and "Whereas, Walter H. Michael thoroughly familiar with every real estate and livestock loan in said bank. and has continuually kept in actual contact with all of its borrow"Whereas, the integrity of Walter Michael is above reproach, and his ability in working out the loans the bank has already been demonstrated, and, "Whereas. we are confident that the appointment of Walter H. Michael as receiver for said Bank of Willows will materially diminish and reduce the ceivership charges for the benefit of the depositors of the bank, and. sistant cashier of the Bank of Willows. thoroughly familiar with all of the internal and external affairs of the bank. and has consented to as first assistant to said Walter H. Michael in said receivership proceedings. "Now. Therefore, the undersigned depositors of the Bank of Willows hereby respectfully petition and request that the Honorable Edward Rainey Superintendent of Banks of the State of California. immediately appoint Walter H. Michael as receiver for the Bank of Willows. for the purpose of affording the best and most adequate protection to the bank.

11. February 2, 1933 The Glenn Transcript Willows, CA
Article from The Glenn Transcript, February 2, 1933

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No Appointment Of Bank Receiver Is Yet Announced No appointment of receiver the closed Bank of Willows has yet been made by Edward Rainey, State Superintendent of Banks. It is, how expected any day

12. February 14, 1933 Willows Daily Journal Willows, CA
Article from Willows Daily Journal, February 14, 1933

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Renewed FORMER LOCAL MILEAGE FUNDS Ford Blamed TAKES Ord WAGNER Ferry Fight Michigan as FOR STUDENTS DUTIES AS Asked Declares Bank Free Service is "Holiday" as IS ALMOST GONE SIGHT IN BLAST United Press. BANK RECEIVER The Ord ferry came back into the LEADS Boxcar Bandit Killed CHAMPS Governor William A. Comstock, who spotlight today when delegation of in the early morning hours, declared by F. Special Cop Bayliss residents appeared before the Students of the Glenn County High School district, which includes Willows and Elk Creek high schools, will probably not receive transportation mileage after April This became known today following last night's meeting of the high school trustees here. Lack of funds, it was said, will prevent payment of mileage for a part of this school year. Payments will be resumed, it was said, when sufficient funds become available. The resignation of Mrs. Maidie Thomson, former shorthand and typing teacheria Willows high school, was received and accepted at the meeting. Mrs. Thomson for the past year has been living at Alameda. A call for bids to supply wood for Elk school during the coming year was ordered. sweeping eight-day banking moratorium throughout the state of Michigan, today at Detroit charged to of ficials of the Ford Motor company spnsibility for the unprecedented move, "The Ford Motor company refused to make an agreement to subordinate its deposits in the Union Guardian Trust company and the result was necessity of a moratorium,' the Governor declared. Governor Comstock added later that "pressure" had been brought on him by "certain Detroit banking interests" to make him retract his Ford statement. am not going to retract,' the Governor said. "The truth might as well be told now, and insist that shall be told.' The moratorium temporarily paralyzed the finances of the state's 5,000, 000 persons and the nation's automobile capital, as hasty arrangements were made by telegraph companies for funds to cash money orders. Outstate bankers, summoned by clearing houses when the Governor's early morning proclamation became known over the state, laid emergency plans to provide cash for small depositors to buy food, fuel, medicine and other necessities of life. Carl E. Wagner. of San Francisco special deputy in charge of the Bank of Willows, arrived today to take over his duties. He was accompanied here by George Walker of the State Banking department, who is supervising the liquidation of closed banks in this district. Wagner had no statement to make today concerning plans for handling of the bank receivership A native of San Francisco and son of Walter Wagner, secretary of the California Irrigation District sociation, the bank executive has had 16 years banking experience, which about equally divided between metropolitan and agricultural communities He received part of his college education at Stanford University later studying law at the University of San Francisco. During the war he was in the naval air service Most of his banking career has been member of the staff of the Bank of America. He has been employed in San Joaquin, peninsula and bay district is married and has two Wagner United One of four men surprised while looting Santa Fe freight train six miles south of Santa Ana early today was shot and killed by special railroad officer. The others escaped. Speeding along in the moonlight. trainmen number of boxes of cigarettes being pitched out of box car short distance ahead of the caboose. The heavy train was stopped and Train Rider W. A. Thomas raced along the tops of the cars just as four men leaped from the box car He fired and one man fell fatally wounded The dead bandit was not immediately identified. Gerald Witthoeft Redding plumber and former well known Willows resident, has suffered loss of one eye result of an explosion which fol lowed his attempt to cut off the bottom of gasoline drum with blow torch Witthoeft, who had lived here for about 10 years and who formerly was employed by & Whitman here, submitted to two-hour operation in which the right eye and splinters of bone were removed. His nose also was cut open by the blast, and laid over the upper lip. but doctors succeeded in sewing up the wounds and said only slight scar would be left. The drum had been empty for eral months. Before working on it, Witthoeft had washed it out several times with Witthceft left here last year for

13. February 16, 1933 The Glenn Transcript Willows, CA
Article from The Glenn Transcript, February 16, 1933

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Wagner Begins Duties as Bank Willows Receiver Carl E. Wagner of San Francisco, receiver of the Bank of Willows arrived here Tuesday and has commenced his duties. He was accompanied by George Walker of the State Banking department who is supervising the liquidation of closed banks in this dis-

14. February 17, 1933 Woodland Daily Democrat Woodland, CA
Article from Woodland Daily Democrat, February 17, 1933

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Issue Scrip For Trading (By Valley News Alliance) issue up $5,000 with deposits the closed Bank of Willows security were cussed last night meeting of local business men who have deposits the bank. The proposed by Clarence plan, Wicks. former chashier the bank. provides that clearing house association be formed by the business men. Depositors would assign to the organ ization per cent of their deposits. receiving return certificates for the amount the assignment which would be good at their face value in local stores. The certificates would be redeemed when the first dividend had been declared by the bank receiver. Definite plans are to be made next week Wickes has conferred with local merchants.

15. February 17, 1933 Red Bluff Tehama County Daily News Red Bluff, CA
Article from Red Bluff Tehama County Daily News, February 17, 1933

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WILLOWS, Feb. Plans to issue script up to $5000 with deposits in the closed Bank of Willows security, were discussed last night at meeting of local business men who have deposits in the bank. The plan, proposed by Clarence former cashier of the bank, provides that clearing house association be formed by the business men. Depositors would assign the organization 10 per cent of their deposits, ceiving in return certificates for the amount of the assignment which would be good their face value in local stores The certificates would be redeemed when the first dividend had been declared by the bank receiver.

16. March 9, 1933 The Glenn Transcript Willows, CA
Article from The Glenn Transcript, March 9, 1933

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Bank Receiver Reports Progress While the banks of the nation are closed under a mandatory banking holiday which will remain in force un. til Monday according to latest reports, the Bank of Willows is steadily making progress in diquidating its assets under the direction of Carl Wagner, recently appointed local receiver the by the State Banking Department. "In ate. fact" stated Wagner "the liquidating process is going ahead faster with more satisfactory results than we had anticipated, especially under present adverse conditions." Many File Claims Early The week following February 20th. which was the opening date of the four month period required by law for filing claims, many people hurrled to file their claims early. Since that time the rush for filing has entirely subsided and it is estimated that less than one third of the total depositors, approximating 2000, have entered their claims.