gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
8e631d29fddf6e8d
Response Measures
None
Events (1)
1.January 30, 1917Run
Cause
Local Banks
Cause Details
Run triggered by failure/suspension of the Northern Bank and Trust Company in Seattle
Measures
Management waived the 60-day notice and paid depositors in gold; paid out cash as requested
Newspaper Excerpt
Following the failure of the Northern Bank and Trust company this morning, a big run was started on the People's Savings Bank
Source
newspapers
Newspaper Articles (10)
1.January 30, 1917The Seward GatewaySeward, AK
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Article Text
NORTHERN BANK AND TRUST CLOSED, RUN ON STATE BANKS FOLLOW BULLETIN SEATTLE, Tuesday. - Following the failure of the Northern Bank and Trust company this morning, a big run was started on the People's Savings Bank, which is regarded as one of the strongest institutions in the Northwest. Throughout the day there have been small runs on other state banks. National banks have been undisturbed by the crash, but on the contrary have opened many new accounts, while the Postoffice Savings bank has had the biggest day of its history in deposits. So great was the crush at the postoffice of people who had taken their funds from other banks that it was necessary to open two more windows to receive deposits.
2.January 30, 1917The Daily AlaskanSkagway, AK
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Article Text
NORTHERN BANK AND TRUST CO. CLOSES DOORS TO DEPOSITORS Seattle, Jan. 30 - Following an ed. a big run on the Peoples Savexamination of the books of the ings bank at once began. This inNorthern Bank and Trust Company stitution is regarded as one of the of this city, situated at he corner strongest institutions in the Northof Pike and Fourth Avenue, by the west. The run continued throughState Board of Bank Examiners, out the day and a vast amount of cash was withdrawn. 'he institution was forced to close There were several small runs on its doors to the public this morning. other State banks, but the time for The deposits of the institution, closing arrived and they will be in amount to nearly one and one half better shape to meet the demands million dollars. of the made upon them tomorrow, should Ever since the failure any of the depositors show a tenBroadway State bank there has been dency to withdraw their deposits. a tendency to withdraw the deThe National banks of the city posit ; from the Northern Bank and Trust Company with which the are undisturbed, and it is thought former was once closely allied. that there will not be a serious finWhen the news was spread ancial crisis arising out of the run around that the Northern Bank on the Peoples. and Trust Company had been clos-
3.January 30, 1917The Alaska Daily EmpireJuneau, AK
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Article Text
RUNS ARE STARTED ON OTHER BANKS IN SEATTLE DURING DAY Seattle, Jan. 30.-There has been a run on the People's Saving Bank. at the corner of Pike and Second. throughout the day This bank is considered one of the strongest institutions in the northwest. Small runs have been made on the other state banks today. The National banks have been undisturbed today and are opening many new accounts, according to the reports being made.
4.January 30, 1917Elko IndependentElko, NV
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Article Text
SEATTLE HAS BIG BANK FAILURE SEATTLE, Jan. 30.-The Northern Bank and Trust company, one of the largest financial institutions in the city failed this morning and its books have been seized by the state bank examiner. A line of depositors more than a block long was held in check for hours by the police, while they clamored for their money. It is reported that the bank is behind about $400,000. their deposits were $1,600,000. This afternoon three hundred depositors of the People's Savings bank stated a run on that institution because of the failure of the Trust company. The two banks are in no way connected.
5.January 30, 1917The Nome Daily NuggetNome, AK
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Article Text
SEATTLE, Jan. 30.-At noon today a number of timid depositors of the People's Saving bank started a small run on that institution following the announcement of the suspension of the Northern Bank and Trust Company, The bank, being a saving's bank, does not have to honor checks without a 60 day notice but the management waived this right and paid all depositors in gold.
6.January 31, 1917The Seward GatewaySeward, AK
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Article Text
SEATTLE IS IN GRIP OF FREAK PANIC, FEDERAL RESERVE TO AID BANKS SEATTLE, Wednesday.-Following the run of yesterday, the German-American bank did not open for business today and the Fremont State bank, a small suburban institution closed its doors at noon. The former bank is among the small institutions of the city and was not in a position to meet instant demands for SO much cash, although able to pay out fully. Up to 1:30 o'clock this afternoon offers of cash assistance had been tendered to the Seattle banks by outside institutions in case of need which totaled several hundred millions. San Francisco bankers offered to put $50,000,000 in cash on a special train. Strong support was forthcoming early today for all local banks which have been in any way affected by the closing of the Northern Bank and Trust company yesterday morning. The Seattle clearing house gave notice this morning that all solvent banks, whether members of the clearing house or not, will be given support. This announcement strengthened the situation among the bankers considerably, and it is believed that all but the weakest institutions will be able to get by without outside assistance. The freakishness of the situation is seen in the fact that there is a slight run on the Dexter Horton National bank, the strongest instituation in the Northwest, which carries the largest cash reserve west of Chicago, and north of San Francisco. It is estimated that this bank can pay out cash as fast as the teller can count it for weeks. There is also a slight run on the aNtional Bank of Comnerce, which is almost as strong. The run started yesterday on the People's Savings continues and there is quite a run at the ScandinavianAmerican bank. The officials have examined both of these banks recently and report them perfectly sound. All of the banks with the exception of three are experiencing a heavy rush of business today but for some reason for which there is no apparent cause there is not the slightest excitement around the Seattle National, Union Savings & Trust Company or Bank of Califronia.
7.January 31, 1917The Nome Daily NuggetNome, AK
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Article Text
SEATTLE BANKS HAVE PLENTY OF MONEY Pacific News Service. SEATTLE, Jan. 31.-Following the closing of the doors of the Northern Bank and Trust Company and run on the People's Saving bank there was a considerable movement today on the part of timid depositors to withdraw funds from all the banks of the city. Both national and state banks paid all demanda cheerfully and easily except the German American which was obliged temporarily to close its doors. None of the strong banks have any fears that the runs on any of them will reach dangerous proportions. A disaptch has been received from the Federal reserve bank in San Francisco by each member of the federal reserve system in Seattle offering to discount all negotiable paper instantly if the local banks should need cash to pay to excitable depositors. This means that these banks would thus be put into possession of cash equal to their depoists which they could pay in full If the need should arise. The German American bank which closed its doors today has not been considered a strong institution.
8.January 31, 1917Valdez Daily ProspectorValdez, AK
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Article Text
GERMAN AMERICAN BANK HAS CLOSED ITS DOORS FOLLOWING A HEAVY RUN INSTITUTION IS COMPELLED TO SUSPEND PAYMENT-BIG RUN IN PROGRESS ON THE PEOPLE'S SAVINGS BANK, AND OTHER SMALL SEATTLE FINANCIAL INSTITUTIONS ARE REPORTED TOTTERING - PEOPLE SACRIFICE THOUSANDS OF DOLLARS IN INTEREST BY WITHDRAWING SAVINGS-BANKS POOL $130,000,000 FOR PROTECTION.
9.February 1, 1917The Wrangell SentinelWrangell, AK
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BANKS ARE SOUND SEATTLE. Jan. 31.-Persistent runs kept up until closing time this afternoon on the Peoples Savings Bank, and the ScandinaAt the vian-American bank. latter bank the line of those wishing to withdraw extended from the paying teller's window into Second avenue and down to James street. The majority of those in line are foreigners. Both institutions are regarded as absolutely sound. There have been no runs on the Seattle Na. tional. Union Savings & Trust and Bank of California, and very slight runs on the Bank of Commerce and the Dexter-Horton bank.
10.February 1, 1917El Nuevo MexicanoSanta Fe., Santa Fe, NM
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RESERVE BANK TO RESCUE WITH OFFER OF $68,000,000 Ample Aid Promised to Seattle; Another One Closes Doors (By Leased Wire to New Mexican) San Francisco, Calif., Jan. 31.Sixty-eight million dollars was offered today by the Federal Reserve Bank of San Francisco to its six member national banks in Seattle, in case they should need it, in connection with bank failures there yesterday and today. Seattle, Wash., Jan. 31.-The German-American Mercantile Bank did not open for business today. A line of three hundred persons gathered at the bank before 10 a. m. At that time notices were posted that the bank was in the hands of the state hank examiners. The German-American Bank is capitalized at $100,000. Several hundred persons assembled in a line in front of the People's Savings Bank before the doors opèned this morning and when the institution started the day's business depositors desiring their money were paid as rapidly as possible. The People's Savings Bank is said to be one of the strongest banks in the Pacific Northwest and bankers attributed the run due to the fact that it is located near the Northern Bank and Trust company which closed yesterday. All other banks paid depositors as they appeared and there were no street lines except at the People's Bank. The clearing house issued a statement, saying: "The present disturbance is not a legitimate cause for alarm."
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.
