gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
200347c558ced25d
Response Measures
None
Events (3)
1.February 4, 1933Run
Cause
Rumor Or Misinformation
Cause Details
Public criticism by Rep. Hamilton Fish of bank president Rudolph Hecht precipitated wide withdrawals ('run by mail' and other withdrawals).
Measures
Reconstruction Finance Corporation and other sources rushed cash ($20,000,000 RFC loan reported; additional millions placed in vaults) to meet withdrawals.
Newspaper Excerpt
Hecht said ... news of Mr. Fish's criticism ... had caused millions of dollars to be withdrawn.
Source
newspapers
2.February 5, 1933Suspension
Cause
Government Action
Cause Details
Governor O.K. Allen proclaimed a legal holiday closing banks statewide to halt further withdrawals and allow stabilization.
Newspaper Excerpt
All the banks in New Orleans and in many other parts of Louisiana were closed today in response to a proclamation issued by Gov. O. K. Allen ...
Source
newspapers
3.February 6, 1933Reopening
Newspaper Excerpt
Banks throughout Louisiana reopened today and officials reported that business had resumed as usual ... RFC had halted a million dollar run on the bank by rushing $20,000,000 to its aid.
Source
newspapers
Newspaper Articles (14)
1.February 5, 1933Daily NewsNew York, NY
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Article Text
Bank Blames Run on Fish's Rap in House
New Orleans, Feb. 4 (A).-Representative Hamilton Fish (Rep., N. Y.), was charged today with starting a run on the Hibernia Bank and Trust Company here by Rudolph S. Hecht, president of the bank, by his recent criticism of Hecht before the H 0 u S e Banking Committee in connection with Representative Reconstruction Fish Finance Corporation loans to the defunct Union Indemnity Company of New Orleans. In an exchange of telegrams, Mr. Fish expressed confidence in the Hibernia Bank and Trust Company. He added that nothing he had said reflected on the bank, that he was willing to review the information and did not wish to do Mr. Hecht an injustice. All the banks in New Orleans and in many others parts of Louisiana were closed today in response to a proclamation issued by Gov. 0. K. Allen in commemoration of the Sixtecnth anniversary of the severance of diplomatic relations with Germany. There has been no visible sign of a run on the Hibernia Bank but Mr. Hecht said that news of Mr. Fish's criticism of hin. had caused millions of dollars to be withdrawn. In New York today, Mr. Fish said he had the "utmost confidence in the Hibernia Bank and nothing I said reflected on its stability.' "It is sheer nonsense for the people in New Orleans to take my criticism of Mr. Hecht as a reflection on the credit of his bank," the New York representative said.
2.February 5, 1933The Spokesman-ReviewSpokane, WA
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Article Text
STARTS BANK RUN, HE SAYS Hecht Wires Random Criticism Frightened Depositors.
NEW ORLEANS, Feb. 4. (4)-Rudolph C. Hecht, president of the Hibernia Bank and Trust company and chairman of the advisory committee of the Reconstruction Finance corporation, today wired Representative Hamilton Fish in New York that his attack on him before the house banking committee caused run his bank and millions of dollars had been withdrawn. The banks in New Orleans and in most sections of the state closed in response to a issued last night by Governor O. K. Allen, declaring today a legal holiday in commemoration of the 16th anniversary of the severance of diplomatic relations with Germany Representative Fish on Thursday criticized Hecht in connection with loan obtained by the Union Indemnity Company of New Orleans which went into receivership last month. Hecht wired Fish that he had taken no part in the application of the loan and felt his criticism had been unjustified. Fish replied that he would be glad to review information given him by the Reconstruction Finance corporation and that nothing he had said reflected on the Hibernia bank.
3.February 5, 1933Muskogee Daily Phoenix and Times-DemocratMuskogee, OK
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Article Text
CLOSING BANKS TOPS DAY DRAMATICS
Huey Long, Rushing Home to 'Save the Nation', Charges New Yorker Caused It All
FOLLOWS 'RUN' ON BANK
Governor Allen Closes All stitutions in Unique 'Wilson Day' Proclamation
NEW ORLEANS, Feb. series of dramatic, all-night conferences to combat New Orleans bankdifficulties was climaxed tonight by Senator Huey "Kingfish" Long's announcement that: to be all "Everything's going Long said he sped here to the banks of New Orleans and thus rest of the banks in the "keep the nation from failing.' Will Reopen Monday
Long stepped of secret con ference, one many in which local banking officials, Gov. O. K. Allen and others have participated since
Friday, to make his announcement. came after Governor Allen halted all banking business in the today with unique holiday proclamation and after announcement that the Hibernia Bank Trust of New Orleans and company had suffered run which led to withdrawel millions. Long said he all Louisiana financial institutions would open for business Monday publicity of 'Ham' Fish (Rep. Hamilton Fish of York) and speech terrible said Long working things out and going be right. the New Orleans banks under all the other banks the country would have gone under
"That's why dropped everything and took up the bank problem."
"Speech Caused Run"
Rep. Fish charged in Friday affairs certain New Orleans financial institutions should He said that they had receivership after they had been granted Reconstruction nance Corporation Fish said believed that Rudolph Hecht. the Hibernia bank should president forced resign from the chairmanship the regional advisory committee of the Hecht with charges that speech caused the run on the Hibernia meantime called Long for conference. The stopped the proceedings issue the following banks are good in New Orleans. the best banks the matter what Fish has to about "He peddles false information all over the And look what hap pened! He ought to be ashamed himself. our banks fail, which isn't likely not now, all the banks in country would fail. The banks all the world would be affected. It would be terrible, horrible, awful. "That's why dropped everything doing when the governor called
"Then he declared today holiday think darn good people chance get their breaths and what this Ham Fish did with his talking. "Anyway the banks are good and going not through by long sight here tonight, but the banks are going open day everything's going to be right."
4.February 6, 1933The Kalamazoo GazetteKalamazoo, MI
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Article Text
BLAMES BANK RUN TO
NEW ORLEANS. Feb. Vaults of the Hibernia Bank and Trust Company were stacked with millions from the Finance Corporation and other sources Monday to break run which the bank's president. Rudolph S. Hecht. said started after Rep. Hamilton Fish. (Rep., N. criticized him before the house banking committee. In New York. Fish said Sunday night has was confident the bank "sound and liquid. million dollars in cash were stored the vaults beside funds already there and depositors were invited to draw their money they chose but officials assured them was Hetch said the run was preciptated by the allegation of Rep. Fish Thursday that Hecht had aided the Union Indemnity Company of New Orleans in obtaining in loans from the shortly before it went into the hands of a receiver.
5.February 6, 1933Seward Daily GatewaySeward, AK
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Article Text
FINANCIAL CRISIS INVOLVING BANK RUN CAUSE FOR HOLIDAY NEW ORLEANS, Feb. 5. - A financial crisis involving a run on the $64,000,000 Hibernia Bank & Trust Company Saturday caused Governor Allen to declare a "Wilson day holiday." The anniversary, commemorating the anniversary of the break in relations between the United States and Germany during the World War, puzzled the populace until President Hecht of the bank said there had been a quiet run on his institution. Mr. Hecht, who is also chairman of the regional advisory committee of the Reconstruction Finance Corporation, charged the run was caused by a speech made in Congress Friday by Representative Hamilton Fish of New York. Hecht claimed Fish's charges had done "Incalculable damage to the financial structure of the whole South." It was near midnight when Governor's Allen proclamation setting aside Saturday as a legal holiday to "honor the far-reaching principles of Woodrow Wilson, 16 years after severance of diplomatic relations with Germany," reached the press. There had never been such a holiday before. Business men went to their offices and establishments but found bank's and state and city offices closed, with notices on their doors announcing they were observing "Wilson Day."
6.February 6, 1933The TribuneCoshocton, OH
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Article Text
R.F.C. Stops Run at Louisiana Bank
NEW ORLEANS, La. Feb. 6Emergency action by the Reconstruction Finance Corporation in rushing $20,000,000 to the aid of the Hibernia Bank and Trust Company, of New Orleans, today had halted at million dollar run on the bank and eased an impending threat to numerous Louisiana banking institutions The R. F. C. last night provided the huge sum after Governor O. K. Allen Saturday had proclaimed legal holiday closing all banks and businesses in the state. Banks thruout Louisiana reopened today and officials reported that business had resumed as usual without a sign of panic by de-
7.February 6, 1933The Daily AdvertiserLafayette, LA
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Article Text
HAVE STACKS OF MONEY ON HAND AS BANKS OPEN
Depositors Are Invited To Withdraw Their Funds If They Desire To Do So
MANY DEPOSITS
Conditions Quiet As Institutions Re-Open After WeekEnd Holiday Period
NEW ORLEANS, Feb. 6. their backs, New stacks of money at Orleans banks threw open their doors an hour earlier today and invited depositors to withdraw their money if they excited over false rumors of banking difficulties in New Orleans. An hour after the opening, most of the banks reported receiving more funds deposits than they were paying reported out. banking business was by Normal all of the banks except the Hibernia Bank and Trust Company and line of approximately hundred persons, mostwomen, was stretched before the savaccounts window. The bank was paying all demands for Davings and did not resort to the legal sixty day clause for savings account. There was no crowd before the windows and bankers satisfied that any fear on the part of bank depositors had been allayed. Piles of money, paper and silver, were piled behind the tellers in plain view of the public and tellers were prepared Many off depositors bank to pay customers came into the lobbies, looked around and walked out without withdrawing any funds and large numbers of them deposited their accumulation over the week-end. The situation developed after Rudolph S. Hecht, president of the Hibernia Bank, announced run by mail and telegraph from out of town depositors had been agains this bank as a result of an attack on Hecht by Representative Hamilton Fish (R. N.Y.), before House in Washington. Hecht said the attack was based on about loans from the Reconstruction Finance Corporation to the closed Union Indemnity Company of New Orleans. The run reached such proportions that banks in New Orleans closed Saturday under proclamation of Governor O. K. Allen to give the Hibernia ride out the run to time On Sunday the Hibernia Bank obtained loan of $20,000,000 from the Reconstruction Finance and added another $4,000,000 to fresh money to their supply in the vaults and they ready to pay 100 per cent to all depositors if they wished to withdraw their accounts. Officials of the Hibernia said they would remain open after the regular m. closing time today to pay off any customers who may appear.
8.February 6, 1933The Daily CourierHammond, LA
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Article Text
SITUATION OF BANKS IS EASED BY U.S.
Possible Run on Hibernia Bank Averted: Saturday Holiday to Relieve Threat
One of the tensest banking situations in New Orleans in recent years was relieved yesterday and today after the Federal Reserve bank, and state banking and political leaders issued statements and obtained funds which apparently has definitely stopped any danger of a run on the Hibernia Bank and Trust company largest in the South. A 'run by mail' began late last week after Congressman Hamilton Fish of New Orleans demanded in the National House of Representatives an investigation of the dealings between the Reconstruction Finance corporation and such corporations of the Union Indemnity company of New Orleans, favored bonding company of the Long administration. which went into receivership after getting R. F. C. loans. With this demand, Representative Fish asked the resignation of Rudolph S. Hecht, president of the Hibernia bank, from the chairmanship of the regional advisory committee of the R. F. C. The bank and the Union Indemnity had engaged in considerable financial dealings with each other. New Orleans papers Friday did not publish the attack, but other papers in the nation did, and financial leaders in the East and elsewhere, as well as smaller depositors began drawing out their Hibernia accounts with a rapidity which soon made the withdrawals run into millions.
On Saturday, Governor Allen was told to call a legal holiday so as to permit the closure of the bank for the day to avert further runs. He did so, and over the week-end, R. F. C. representatives. other financial leaders, Senator Long and others combined their forces to safeguard the banks. Today it was announced that no further danger even remotely threatened the bank, and that millions of dollars had been placed at its disposal by the Federal Reserve to meet any possible run. Following are the statements issued by E. R. Black, governor of the Atlanta Federal Reserve bank. and the New Orleans Clearing House association. Senator Long also issued a statement. "It is gratifying to know that the unrest in financial circles caused by careless statements relative to the Hibernia Bank and Trust Company have been fully corrected. "Not only have the statements about this bank been withdrawn, but full and adequate steps have been taken to provide, on the security of the bank's assets, ample funds to meet all possible withdrawals.
"E. R. BLACK, "Governor of Federal Reserve Bank, Atlanta." "To the Banking Public Tributary to New Orleans: "We are glad to be able to say to the public that through prompt and efficient cooperation arrangements have been made to stop definitely the threatened run on a member bank, resulting from unwise and unfortunate statements. "There is no occasion for any uneasiness concerning the New Orleans Clearing House banks, and business should be continued in the usual normal way. "The New Orleans Clearing House Association."
9.February 6, 1933The Columbus LedgerColumbus, GA
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Article Text
Greenbacks Cash and Stored in Vaults; Confidence Is Expressed by Officials.
Trust with in from the and other today break run the bank's Rudolf said started after he (Rep. Y..) before the house million dollars cash and against already there were draw their money the stability of Hibernia bank voiced the other banks by Governor of Federal Reserve bank emergency. made Twenty the bank by the Finance ession in Washington day four dollars tional raised by the Hibernin Mr Hecht the bank was allegation Thursday that had the Union demnity from the Finance shortly before hands of the receiver.
10.February 6, 1933Miami News-RecordMiami, OK
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INVITE ORLEANS
NEW ORLEANS, Feb. With stacks of money at their backs, New Orleans banks threw open their doors an hour earlier day and invited depositors withdraw their money if they were cited over false rumors of bankdifficulties New Orleans. An hour after the opening, most of the banks reported more funds in deposits than they paying out. Normal banking business reported by all the banks except the Hibernia Bank and Trust company and line approximately hundred persons, mostly women, was stretched before the savings counts window. The bank was paying all mands for savings and did not sort to the legal 60-day clause for account. There crowd before the other windows and bankers were satisfied that any fear the part of bank depositors had been allayed. Vaults of the Hibernia bank were stacked with millions from the Finance corporation and other sources break the run which the bank's president, Rudolf Hecht, said started after Rep. Hamilton Fish, (R., criticised him before the House banking committee. In New York, Fish said last night fident the bank "sound and Twenty-four million dollars cash were stored in the vaults besides funds already there and positors were invited to draw their money they chose, but officials assured them safe. Confidence the stability of the bank was voiced by all other New Orleans banks and by Governor Black of the Federal Reserve bank of Atlanta.
11.February 6, 1933News and RecordGreensboro, NC
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Article Text
ORLEANS BANK PLANS HALT
Trying to Meet Requirements of Finance Corporation $2,000,000 Loan.
IS SAVED BY HOLIDAY
New Orleans, ficials Hibernia Bank Trust company tonight that directors of the McNary, session Washington today approved the the bank raised positors more the ground the was Bank officials said they believed they could senator and stop on the bank Early bled tonight the officials said had raised quired that the telephone were responding the favorably the The was started after RepreNew of special before the house in made defunct Union Indemnity by the banks were in New Or under Allen he issued suddenly Saturday the the ance between the United issued time action proclamation was lief prepare meet the run the which had suffered the bernia heavy out town by and officials the had been participated in any extent by New Orleans Merchants and industrialists were taken by Saturday's city they had difficulty meeting
12.February 6, 1933The DayNew London, CT
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R. F. C. Speeds to Rescue Of New Orleans Bank
NEW ORLEANS, Feb. Hibernia Bank & Trust Vaults the stacked with millions from Co., Reconstruction Finance the to other Ruwhich the said started after Hamilton before the Fish Twenty four million dollars in cash stored vaults against already and depositors But they were their just during the bank's now had 62 Hecht years said the his bank precipitated Fish Thursday that had aided the Indemnity obtaining 000 from the shortly before it went Corp., into the hands the receiver.
R.F.C. Stops Run at Louisiana Bank
NEW ORLEANS, La. Feb. 6Emergency action by the Reconstruction Finance Corporation in rushing $20,000,000 to the aid of the Hibernia Bank and Trust Company, of New Orleans, today had halted at million dollar run on the bank and eased an impending threat to numerous Louisiana banking institutions. The R. F. C. last night provided the huge sum after Governor O. K. Allen Saturday had proclaimed a legal holiday closing all banks and businesses in the state. Banks thruout Louisiana reopened today and officials reported that business had resumed as usual without a sign of panic by depositors.
14.February 9, 1933Springfield Weekly RepublicanSpringfield, MA
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FISH IS ACCUSED OF STARTING RUN AT NEW ORLEANS
Banker Recalls Criticism in Connection With C. New Orleans Banks Closed.
New Orleans, Feb. resentative Hamilton Fish was charged today starting on the Hibernia Bank and Trust comhere by Rudolph Hecht, prespany ident, by recent of Hecht before the House banking committee in connection Reconstruction Finance corporation loans to the defunct Union Indemnity company of New Orleans. an exchange of telegrams, Mr Fish Bank and Trust company. He added that nothing had said flected that he and did wish to do Mr Hecht an injusthe banks in New Orleans in many other parts Louisiana were closed today response issued by Gov len the diploThere has been visible sign Hibernia bank Mr Hecht that Fish's had caused millions dollars York today. Mr Fish said had Hibernia bank nothing said reflected on stability nonsense for the peoOrleans to take my ticism Mr Hecht the credit bank," the New said. the House banking committee Thursday Fish said demand resignation of Mr Hecht from chairmanship the advisand demanded all Reconstruccorporation loans concerns that later failed. In telegram Mr Fish yester Mr said he did not recomcations loans from the Union Indemnity company.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
