18355. Powder Valley State Bank (North Powder, OR)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
February 7, 1914
Location
North Powder, Oregon (45.028, -117.920)

Metadata

Model
gpt-5-mini
Short Digest
53818f39

Response Measures

Full suspension, Books examined

Other: State superintendent of banks took charge; directors planned reorganization and reopening March 1.

Description

Bank experienced heavy withdrawals (a run) tied to a large loan loss (Metzler-Hemstead Lumber) and a failed suit; failed to open (suspension) on 1914-02-16 and directors planned to reopen March 1, 1914. Cause attributed to bank-specific adverse information leading to withdrawals and reserve shortfall. OCR corrected minor punctuation; bank name and city taken from article.

Events (4)
1. February 7, 1914 Run
Cause
Bank Specific Adverse Info
Cause Details
Withdrawals began after bank lost a suit for $1,800 and earlier (since July) had losses from Metzler-Hemstead Lumber company's failure owing the bank over $8,000; these adverse loans and legal loss prompted heavy withdrawals.
Measures
State Superintendent of Banks Sargent went to North Powder to take charge; directors planned reorganization and to increase reserves.
Newspaper Excerpt
Large sums are said to have been withdrawn from the bank since February 7... Withdrawals of more than ordinary size are said to have been begun a month ago to be followed by exceptional withdrawings last week.
Source
newspapers
2. February 16, 1914 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Reserve fell below legal limit after substantial withdrawals driven by prior loan losses (Metzler-Hemstead Lumber failure) and a recent unsuccessful suit; bank did not open its doors on this date as a result of low reserve levels and withdrawals.
Newspaper Excerpt
Powder Valley State Bank of North Powder... failed to open its doors yesterday morning on account of its reserve being below the legal limit.
Source
newspapers
3. February 20, 1914 Other
Newspaper Excerpt
The Powder Valley State Bank of North Powder, which closed a few days ago, is being reorganized. The directors plan to reopen the institution March 1. The bank was not closed on account of insolvency, but on account of the reserve having run below that required by law.
Source
newspapers
4. March 1, 1914 Reopening
Newspaper Excerpt
The directors plan to reopen the institution March 1. The bank was not closed on account of insolvency... The directors expect to increase the reserve to such an extent as to place the bank on a more solid footing than in the past,
Source
newspapers

Newspaper Articles (2)
1. February 17, 1914 East Oregonian : E.O Pendleton, OR
Article from East Oregonian : E.O, February 17, 1914

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Article Text

FORMER LOCAL MAN SAYS BANK IS NOT INSOLVENT A. E. LAMBERT IS CASHIER POWDER VALLEY BANK WHICH CLOSES. A. E. Lambert, formerly connected with the American National Bank in this city, is cashier of the Powder Valley State Bank of North Powder. which failed to open its doors yesterday morning on account of its reserve being below the legal limit. The failure of the bank to open was first ascribed to the illness of Cashier Lambert but afterwards Lambert himself made a statement in which he declared the bank is not insolvent and would be ready to open for business again as soon as a little readjustment had been made. State Superintendent of Banks Sargent left Salem yesterday for North Powder to take charge of the bank. The capital stock of the bank is $20,000. At the last statement the deposits were more than $50,000 and the loans more than $58,000. H. O. Gorman is president of the bank, F. Vandecar is vice president: A. E. Lambert, cashier, and John L. Kilkinson, assistant cashier. Large sums are said to have been withdrawn from the bank since February 7. when the bank lost a suit to collect $1800 from will Huddleton on a cancelled note. The bank's difficulties are said to date from last July when the Metzler-Hemstead Lumber company failed, owing the bank more than $8000. Withdrawals of more than ordinary size are said to have been begun a month ago to be followed by exceptional withdrawings last week.

2. February 20, 1914 East Oregonian : E.O Pendleton, OR
Article from East Oregonian : E.O, February 20, 1914

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Article Text

Bank to Reopen Soon. LA GRANDE, Ore., Feb. 20-The Powder Valley State Bank of North Powder, which closed a few days ago, is being reorganized. The directors plan to reopen the institution March 1. The bank was not closed on account of insolvency, but on account of the reserve having run below that required by law. The directors expect to increase the reserve to such an extent as to place the bank on a more solid footing than in the past,