14613. Washoe County Bank (Reno, NV)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: July 5, 1929
Location: Reno, Nevada (39.530, -119.814)

Metadata

Model: gpt-5-mini
Short Digest: 3d016829

Response Measures

Full suspension, Books examined

Description

Newspapers report withdrawals/rumors and frozen farm loans triggered a run in early July 1929; the bank was placed in the hands of the State Bank Examiner (temporary suspension) and later a receiver was appointed and liquidation/transfer plan pursued (closure). Dates: run and suspension reported July 5–6, 1929; court judgment appointing receiver appears in August 1929. Bank type inferred as state (county bank).

Events (3)

1. July 5, 1929 Run

Cause: Bank Specific Adverse Info
Cause Details: Withdrawals were triggered by rumors of financial difficulties and the existence of approximately $1,000,000 in frozen farm loans (illiquid assets).
Measures: None specifically beyond later state examiner intervention; depositors called meetings to consider taking the bank over.
Newspaper Excerpt: The closing was brought about by withdrawals which started a week ago, and became serious this week.
Source: newspapers

2. July 5, 1929 Suspension

Cause: Bank Specific Adverse Info
Cause Details: State Bank Examiner took control after serious withdrawals tied to frozen farm loans and known financial difficulties; suspension described as temporary pending reorganization or liquidation plans.
Newspaper Excerpt: The Washoe County Bank ... was placed in the hands of the State Bank Examiner ... Officers stated that the suspension is temporary
Source: newspapers

3. August 23, 1929 Receivership

Newspaper Excerpt: That the defendant, Washoe County Bank, failed ... and ceased to meet the usual and customary manner ... ORDERED, AND DECREED, that Washoe County Bank, and receiver appointed therefor. That SEABORN ... appointed Receiver ... deliver over to Receiver the property, assets, moneys ... to carry out the plan ... transfer ... to United Nevada ... George Wingfield ... for the purpose of realizing the assets ... and satisfy preferred claims ... DATED: GEO. (Aug. judgment). (text dated in court record, Aug 1929).
Source: newspapers

Newspaper Articles (7)

1. July 6, 1929 Reno Gazette-Journal Reno, NV

Article from Reno Gazette-Journal, July 6, 1929

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BANK DEPOSITORS CALL MEETING TO CONSIDER SITUATION Made That All Suggestion Unite to Take Creditors Over Washoe Institution A meeting of the depositors of the Washoe County Bank for the purpose of effecting an to proand to tect their bank in dealwith the state the affairs of the with be held Monday at the Nevada state building in Powning park. call for such meeting was issued this morning and is published in the advertising section of the Gazette today. The call signed by H. Erickson, Penney Company, Ben Barbash. K. Foster. Lester Hilp. Maynard Stampfli. Donnels Steinmetz and Frank Steinheimer. Several of those signing the call are very large depositors. Following bank suspensions it customary for the depositors to organize and appoint general committee to their interests, and represent this step has been discussed since the bank temporarily suspended its business few days ago. Yesterday number of depositors suggested the advisability of the depositors, themselves, taking the bank over unless better and more advantageous plan is proposed. Those making the suggestion advance the proposal that each depositor $200 the bank agree have more in twelve fifteen per cent his total deposit and have this from amount issued to him in the form of bank stock. By this it represented. the impaired capital of the bank would be restored and could immediately be reopened with fully paid up cash capital as going institution. This. would preserve the "good will" or "going institution' of the bank, which very great, and within few years, said, the stock issued would have market value of much more than par. Several Nevada banks that have been closed heretofore have been reorganized in this manner and declared be plan that is followed throughout the country. At meeting of the state board of finance held Carson City this morning the state board of finance passed resolution expressing full opproval of the steps that have been taken by State Bank Examiner Seaborn and also approved plans which he has outlined for the bank's reorganization. Examiner Seaborn said today that soon he received instruction from the district attorney to that effect he would give all depositors access to their safety deposit boxes.

2. July 6, 1929 Las Vegas Age Las Vegas, NV

Article from Las Vegas Age, July 6, 1929

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WASHOE COUNTY BANK DRIVEN TO THE WALL RENO, July 5.- (AP) -The Washoe County Bank, the oldest financial institution in the state, was placed in the hands of the State Bank Examiner following a meeting of the board of directors yesterday. Officers stated that the suspension is temporary, and expressed confidence it can be reorganized. The closing was brought about by withdrawals which started a week ago, and became serious this week. The failure was induced by the existence of approximately $1,000,000 in farm loans which were frozen assets. The difficulty in which the bank found itself has been known within a limited circle for some time. Recently, it is said, made a proposal to take over and reorganize the bank, but his terms were not acceptable. It is believed that the assets of the Washod County Bank will ultimately be taken over by the Wingfield interests on such terms as will save the depositors from loss.

3. July 7, 1929 The Union Grass Valley, CA

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Bank Failure at Reno and all of Nevada State have been hard hit by the failure of the Washoe's County Bank, the oldest and supposedly one of the strongest financial institutions in the Sagebrush State. Rumors of financial difficulties started a rather serious run on the bank and this finally led to the concern being taken over by the state banking department. Extensive salvaging and reorganization hoped for, but the full situation is still to be ascer- tained. The Washoe County Bank was established in Reno sixty years ago, coincident with the arrival there of the Central Pacific Railroad. Its fiancial strength had long been unquestioned.

4. July 11, 1929 Reno Gazette-Journal Reno, NV

Article from Reno Gazette-Journal, July 11, 1929

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BANKING HOUSES RENO'S bank suspension occurs appreWHEN A occasionally expressed concernhensions are of other financial responsibility ing the community. If such banks in the same here, because of should be heard pressions County Bank, it of the Washoe the closing but it should frankly would be unusual, not be met. the Washoe County Bank In addition to banks in Reno, all sound, there are four Reno National, the ing National (formerly the Riverside, the First and the Scheeline. Farmers & Merchants), National and the Riverside are The Reno of the Wingfield bankmembers important the strongest in the one of very ing system, The First National Intermountain region. the Farmers & Merchants) (until recently is one of the most conservative, solid and liquid banks in the entire Western country. Scheeline is most conservatively The its officials are closely ducted and principal Fleishhacker bankconnected with the great of California, its president being interests ing a vice president of the Anglo & London Paris National Bank of San Francisco of which Herbert Fleishhacker is president. of these banks has been proEvery one nounced entirely safe and entirely sound by the bank examiner. At no time in the past, when he and his predecessor in office were urging the Washoe to repair its capital, was any other Reno bank requested to do the same thing. It was not necessary. These four banks are entitled to the public confidence, and they are holding it, for it is a fact that since the Washoe suspended their deposits have steadily increased. It is a splendid testimonial to those who manage their affairs.

5. July 13, 1929 Reno Gazette-Journal Reno, NV

Article from Reno Gazette-Journal, July 13, 1929

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BANK SITUATION WASHOE A PLAN for dealing with the affairs of Bank has been placed the Washoe County the state bank exambefore .depositors, of finance. It the state board iner and submitted by Mr. George Wingfield, presiof banks, and dent of the Wingfield group is as follows: its essential features in all in cent of deposits per be made available Washoe Bank is to the immediately to all depositors. All frozen, slow and doubtful loans in the Washoe are to be conveyed to a is to be owned by the tion" which company, As collections are Washoe's depositors. loans, by sale of these doubtful made upon to secure them or the property pledged to be distrisuch collections are otherwise, buted among the depositors. If the collections are sufficient the depositors will ceive all of their money, with four per cent deferred If the interest all payments. upon not sufficient the depositors collections are will lose in the ratio that the deficiency in collections bears to the per cent that to be held in of the deposits are If recoveries are made after the any in full such recoveries will positors are paid be distributed among the bank's stockholders. At this time it looks like the stockholders of the bank will lose their entire stock holdings. The realization company, under the plan submitted, will be managed by Mr. Wingfield and his associates, but the depositors and stockholders of the Washoe will be given minority representation upon the realization company's board of directors. In effect the plan provides for the liquidation of the Washoe County Bank by Mr. Wingfield and his associates, with further provision that the Washoe's stockholders and directors shall have voice in the liquidation proceedings. In connection with the plan Mr. Wingfield proposes to organize another banking property to take the place of the Washoe which will be owned by himself and those associated with him in the banking business. No other concrete plan or offer has been submitted to the examiner or the depositors. For few days after the bank suspended there was talk to the effect that the depositors, themselves, might take the bank over by assessing their deposits sufficiently to replace its impaired capital, but nothing came of it. As the capital of the bank, in the opinion of the examiner, must entirely be replaced before it can be reopened it must either be reorganized or liquidated. So far no one has seriously undertaken its reorganization. If it is to be liquidated, the liquidation can be carried out by the examiner, or all of its assets can be turned over to "realization" for sale. Mr. Wingfield company proposes the latter plan, and his plan has the advantage of being explicit and providing for the release, without delay, of three quarters of the bank's deposits. A committee representing the depositors has endorsed it. As liquidation seems to be inescapable, in view of the fact that no steps, whatever, are being taken toward reorganization, the responsibility is upon the bank examiner and the state board of finance to see that any contract or transaction to that end gives the depositors a fair voice in the eventual disposition of the bank's assets, as after all, the belong to them. And no doubt this be done.

6. July 30, 1929 Las Vegas Age Las Vegas, NV

Article from Las Vegas Age, July 30, 1929

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Washoe Bank Merger Suits to Be Tried Today Judge Bartlett to Hear Two Cases on Proposed Liquidation; Examiner, Holders of Stock In Court Actions. RENO, July 30.-(Journal)-Trial of two suits, through which it is hoped to bring about the sale and liquidation of the Washoe County Bank SO that it may be merged with a new bank. were set for 2 o'clock today, July 30, by Judge George A. Bartlett. in the Washoe County District Court last week. Answers to the suits were filed recently, and Judge Bartlett immediately set the time for trial. It is probable. acfording to attorneys, that the suits will be consolidated. In the answer the directors of the bank declare that the institution is not insolvent, but that "it is now necessary, by reason of the situation of said bank. to liquidate the same." Say No Loss One of the suits was filed by E. J. Seaborn, State Bank Examiner. and the other by George H. Taylor, J. R. Van Nagell and Cora M. Van Nagell. as owners of more than 10 per cent of the banks' capital stock. In the answer to the Bank Examiner's suit the directors, through their attorney, Robert M. Price, claim that the capital and surplus of the bank have not been impaired to any substantial extent." It is also claimed that if the assets are "properly conserved and liquidated" there will be no loss to the depositors or stockholders. Waive Right Though denying the charge that the actual value of the assets of the bank is insufficient to pay the liabilities, or that the bank is in "an unsafe and unsound condition," the directors state that it would be inexpedient to continue business at this time. The answer filed to the suit brought by-Taylor and Mr. and Mrs. Van Nagell as stockholders asks that the State Bank Examiner be appointed receiver and the direcors waive their right to name one of their number for the position.

7. August 23, 1929 Nevada State Journal Reno, NV

Article from Nevada State Journal, August 23, 1929

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SECOND JUDICIAL DIS. THE COURT AND FOR COUNTY No. Dept. GEO. CORA VAN Plaintiffs, COUNTY BANK, MULLER and directors WASHOE COUNTY Defendants. JUDGMENT THIS CAUSE came for trial on before GEO said their DISKIN, and COLE HARWOOD Special Deputy General Deputy Attorney WASHOE and directors Washoe MESSRS. PRICE dence and Court made Findings Conclucounsel and JUDGED AND DECREED follows: That the defendant, Washoe County failed, meet the usual and customary manner after and then has ceased to unsafe County Bank, continue its and cannot public. 5th day 1929, numerous and actions. and the and and actions, and the assets said danger through dissipated, lost, wasted greatly impaired The exists appoint Receiver take possession business, property, assets the bank, operate and manthe ORDERED, AND DECREED, that Washoe County Bank, and receiver appointed therefor. That SEABORN, resident of Washoe appointed franchise franchises, stocks, bonds, cluding choses action, accounts records, books account, banks papers, kind and belonging that said Receiver County assets. collect the from collect notes, and standing drafts discharge clerks, pensation also attorneys as he employees. Receiver shall forthwith the that faithfully perform herein, truly count for all money and property coming hands. their possesthe property books, papers IN business lately related said County deliver Washoe hereby deliver over Receiver constituted the said property, assets, moneys, manthe Bank, and all other Washoe County persons, their agents, attorneys his agents and the their the orders the Court, from any Court upon being That in lieu of ordering and decreeCounty the court discretion decrees that defendant, Washoe County its business, assets, property under Court with, suant the plan made the Findings of Fact and Law hereinbefore found and set Further, that the said Receiver the property fendant, County Bank, cordance with and pursuant and the rights County Bank, and franchise. That said Receiver is hereby authorcarry the plan Bank, and including and the plan forth Findings Fact and and Court, and this transfer and Washoe together Corpora franchise and formed formed by pursuant the Judgment, said plan the earliest possible thereto, the Receiver. and deeds, other all the and personal the County actions claims against United Nevada organized Geo. Wingfield, under the the State of Nevada, for the purpose his Said Nevada made its selection the assets, and/or property assigned, face value Five Cent. amount depositors and general creditors, legal pay all ferred claims against the Washoe County Bank and property and possession State Seaborn convey said assets the Washoe County Bank Company, under State Nevada, the Geo. set out herein. United Nevada selects banking premises, lot, County hereby fixed and Three Hundred Thousand ORDERED that United Bank shall pelied claims Washoe County Bank amount first United Bank, United Nevada Bank, shall deliver United Nevada The Company sufficient ADAND United Bank shall right from Washoe County Bank RealizCompany upon the equal value face value being the face value the note, stock book other assets at the date of this FURTHER ADJUDGED County Bank Seaborn shall made, when Nevada Fifty Thousand Dollars ($750, State Bank present deposits (after offsets against same) Washoe account each Bank Seventy deposit deposit be Nevada Bank shall satisfy ferred such amounts that any claim for preference must made months from the that Seaborn, his actions and doings pursuant the hereby such further necessary proper. DATED: This GEO.