14534. Carson Valley Bank (Carson City, NV)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
February 9, 1934
Location
Carson City, Nevada (39.164, -119.767)

Metadata

Model
gpt-5-mini
Short Digest
b109fe4a

Response Measures

None

Description

No run or depositor crowding is described. Articles state the bank was one of seven Nevada state banks for which a receiver was appointed (Judge Clark J. Guild) in early Feb 1934 and that the bank remained closed under receiver Leo F. Schmitt (building offered for sale, dividend litigation and later dividend payments discussed). Thus this is a suspension with permanent closure/receivership.

Events (6)
1. February 9, 1934 Receivership
Newspaper Excerpt
The right of District Judge Clark J. Guild to appoint receivers for seven Neveda state banks... Institutions affected ... the Carson Valley bank at Carson City. (Feb. 9, 1934).
Source
newspapers
2. February 9, 1934 Suspension
Cause
Government Action
Cause Details
District judge appointed receivers for seven Nevada state banks, including Carson Valley Bank; closure resulted from receivership
Newspaper Excerpt
CARSON CITY, Nev., Feb. 9 (JP)The right of District Judge Clark J. Guild to appoint receivers for seven Neveda state banks... and the Carson Valley bank at Carson City.
Source
newspapers
3. May 17, 1934 Other
Newspaper Excerpt
Leo F. Schmidt, bank receiver, has announced that bids for the purchase of the Carson Valley Bank building in Carson City will be received up until May 19.
Source
newspapers
4. June 22, 1934 Other
Newspaper Excerpt
With the assertion that unless deposit of $174,747.64 in the closed Carson Valley Bank made preference claim, will be unable to meet its obligations, the Nevada industrial commission's suit against the bank opened before Judge Clark Guild this morning.
Source
newspapers
5. October 11, 1934 Other
Newspaper Excerpt
A $169,678 dividend to Carson Valley bank depositors hangs in the balance while the Nevada industrial commission suit for preference is resumed in Carson City today.
Source
newspapers
6. December 14, 1934 Other
Newspaper Excerpt
The Carson Valley Bank of Carson City ... The other two banks in charge of Schmitt have not yet paid dividend. They are the Carson Valley Bank of Carson City, and the Tonopah Banking Corporation.
Source
newspapers

Newspaper Articles (7)
1. February 10, 1934 The Salt Lake Tribune Salt Lake City, UT
Article from The Salt Lake Tribune, February 10, 1934

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Article Text

Bank Receiver Action Upheld CARSON CITY, Nev., Feb. 9 (JP)The right of District Judge Clark J. Guild to appoint receivers for seven Neveda state banks, all of which were members of the defunct George Wing. field banking group, was upheld in a unanimous decision of the Nevada supreme court today. Institutions affected by the ruling are the Bank of Nevada Savings and Trust company, the United Nevada bank and the Riverside bank, all of Reno; the Bank of Sparks, the Carson Valley bank at Carson City, the Virginia City bank and the Tonopah Banking corporation.

2. May 17, 1934 Nevada State Journal Reno, NV
Article from Nevada State Journal, May 17, 1934

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Article Text

Building for Sale Leo F. Schmidt, bank receiver, has announced that bids for the purchase of the Carson Valley Bank building in Carson City will be received up until May 19. The building is a two story structure and is located at one of the principal corners in the capital city.

3. June 1, 1934 Mason Valley News Yerington, NV
Article from Mason Valley News, June 1, 1934

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Article Text

13 STATE BANKS STILL OPEN RENO, Nev., (UP)-Thirteen banks in Nevada are open for business, compared to 31 before the depression, a United Press survey showed. Of the banks open six are national banks, four state banks are operating without limitations and three under restrictions. Thirteen of the 18 closed institutions are in hands of receivers. 4 others have been reorganized into liquidatating companied and one, Bank of, Southern Nevada at Las Vegas, is in voluntary liquidation. Depositors of the closed Battle Mountain State Bank have petitioned for permission to reopen under restrictions. Hearing has been set for June 6 before Judge Edgar Eather at Austin. If the depositors' petition is granted the Batle Mountain institution will be opened for limited business similar to the Lander County Bank, Austin, the Mason Valley Bank at Yerington, and the Wells State Bank. Banks reopening for restricted business under the supervision of State Bank Superintendent E. J. Seaborn are required to freeze all old deposits for a four year period. New deposits must be held in cash, be, deposited with a Federal Reserve bank or invested in federal securities. Banks open for unrestricted business are: Ely National Bank and First National Bank, both at Ely; First National Bank, Lovelock; First National Bank, Elko; First National Bank, Reno: Ruth Bank, Ruth; First State Bank, Las Vegas; First National Bank, Eureka; Farmers Bank of Carson Valley, Minden, and the Bank of Pioche. Those under restrictions are: Lander County Bank, Austin; Wells State Bank, and the Mason Valley Bank. Closed Banks under Leo F. Schmitt as receiver are: Carson Valley Bank, Carson City; Bank of Nevada Savings and Trust, Riverside Bank, and United Nevada Bank, all of Reno; Bank of Sparks; Tonopah Banking Corporation, of Tonopah, and Virginia City Bank. Seaborn is in charge of the following closed institutions: Battle Mountain State Bank; Douglas County Farmers' Bank Gardnerville; The Quinn River Bank, McDermiat; Winnemucka State Bank and Trust Co. The Reno National Bank is in charge of Walter J. Tobin, national bank receiver. Receiver H. S. Streeter is in charge of the First National Bank of Winnemucca. MRS. JOHN FEENEY, former resident of Wabuska, accompanied by her son John, is spending a short vacation visiting at the home of Mrs. Gelmstedt. She will return to San Francisco on Monday. Subscribe to the News.

4. June 22, 1934 Nevada State Journal Reno, NV
Article from Nevada State Journal, June 22, 1934

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Article Text

Preference In Opens Ormsby CARSON CITY, Nev., June With the assertion that unless deposit of $174,747.64 in the closed Carson Valley Bank made preference claim, will be unable to meet its obligations, the Nevada industrial commission's suit against the bank opened before Judge Clark Guild this morning. George Sanford and W. Mathews are attorneys for the plaintiff and stated that $55,000 had been on deposit in the bank since 1917. Sam Platt and John Sinai, representing the defendant. claim that the money was deposited wtih provision for preference and, no therefore, the commission has claim. The commission recently filed similar suit against Bank Receiver Leo Schmitt asking preference for $10,000 deposit.

5. October 11, 1934 Nevada State Journal Reno, NV
Article from Nevada State Journal, October 11, 1934

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Article Text

Carson Dividend Must Await Suit A $169,678 dividend to Carson Valley bank depositors hangs in the balance while the Nevada industrial commission suit for preference is resumed in Carson City today. Bank Receiver Leo F. Schmitt said last night that he could release a 20 per cent dividend if his attorneys win the suit and the in, dustrial commission is denied its petition to have its $172,744. 19 deposit declared a preferred claim. The suit partially has been heard More evidence will be taken today The industrial commission could appeal the decision and create further delay of the dividend if it loses its case. Schmitt said he expected the matter to be determined within a few days.

6. December 2, 1934 Nevada State Journal Reno, NV
Article from Nevada State Journal, December 2, 1934

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Article Text

Carson Bank Suit Will Be Appealed To Supreme Court CARSON CITY, Dec. 1.-Judge Clark J. Guild today denied a motion for a new trial in the suit brought by the Nevada industrial commission against the Carson Valley bank to have the commission's funds on deposit in the bank declared preferred. Attorneys for the commission an. nounced that they would appeal the case to the supreme court. The suit involves approximately $175.000 in the Carson Bank. The attorneys for the commission declare the money on deposit is a trust fund and therefore preferred. Leo F. Schmitt, bank receiver. contends that the funds have the same status as any other deposits in the bank. Gray Mashburn and George L Sanford are attorneys for the commission while Platt & Sinai are representing the bank receiver.

7. December 14, 1934 The Sacramento Bee Sacramento, CA
Article from The Sacramento Bee, December 14, 1934

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Article Text

FOUR WINGFIELD BANKS DECLARE YULE DIVIDEND Nevada Depositors Will Receive Checks To-morrow, Monday RENO (Nev.), Dec. Christmas gift in the form of dividend checks totaling $591,424 will be available for depositors of four of the closed Wingfield banks to-morrow and Monday. Leo F. Schmitt, receiver for sev en of the state banks of the closed Wingfield chain, announced several weeks ago he hoped to have a Christmas dividend, that of the United Nevada Bank depending on obtaining loan from the Reconstruction Finance Corporation. The United Nevada loan was approved recently Amounts Are Given. The United Nevada Bank dividend, the first to be paid depositors of this bank will amount to 30 per or The Riverside Bank will pay dividend of 10 per cent, amounting to $61,677. The Virginia City Bank will pay dividend of per cent, or $15,629, the Bank of Sparks will pay and 10 per cent dividend, amounting to $56,060. Letter Is Awaited. Schmitt says dividend to depositors of the Tonopah Banking Corporation also is likely, this depending on the receiver receiving letter from Esmeralda County of ficials that no appeal will be taken in the preference suit recently cided in favor the bank receiver by Judge H. Edwards. If this letter is forthcoming the receiver says he can pay an immediate divi dent of $81 699 to depositors. RFC Gives Aid. The Bank of Sparks dividends will be available Monday at the office of the old bank in Sparks. The other dividend checks will be The receiver received check yesterday from the RFC for 664, representing money borrowed from that corporation, and this will be applied on the dividend, together with funds on hand. Totals Are Listed Including the dividend payments to be made Saturday and Monday the closed banks of which Schmitt is receiver will have paid the following dividends: Riverside out of deposit liability of $822,392. Bank of $230,470 out of deposit liability of $622,893. Bank of Nevada Savings and out of a deposit liability of Virginia City out of deposit liability of $195,593. United Nevada- out of a deposit liability 586. Two Fail Dividends. The other two banks in charge of Schmitt have not yet paid dividend. They are the Carson Valley Bank of Carson City, and the Tonopah Banking Corporation. Other Wingfield bank depositors have formed depositor corporations and are liquidating without receivership, while two national banks are in receivership, one of which, the First National at Winnemucca, has paid one dividend.