American Security Bank - Kennewick, WA

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: December 16, 1920
Location: Kennewick, Washington (46.211, -119.137)

Metadata

Model: gpt-5-mini
Short Digest: d30f4b0f

Response Measures

None

Description

Article (Dec 16, 1920) reports the American Security Bank and First National temporarily refusing to cash irrigation district warrants because their warrant accounts are at the limit and the Federal Reserve will not rediscount them. This is a suspension of payment on a specific instrument (irrigation warrants), described as temporary with expectation of resumption after the new year, so classified as suspension_reopening. No run or depositor panic is mentioned.

Events (1)

1. December 16, 1920 Suspension

Cause: Local Shock
Cause Details: Banks' warrant accounts were at the absolute limit; irrigation district warrants not accepted by the Federal Reserve for rediscount and no local banks would handle them, so they suspended cashing irrigation warrants temporarily.
Newspaper Excerpt: The First National and the American Security Banks announced this week that for the present they cannot handle the warrants of the Columbia, Kennewick and Richland Irrigation districts.
Source: newspapers

Newspaper Articles (1)

1. December 16, 1920 The Kennewick Courier-Reporter Kennewick, WA

Article from The Kennewick Courier-Reporter, December 16, 1920

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Article Text

BANKS SUSPEND PAYMENT ON IRRIGATION WARRANTS Local Institutions are Loaded to Limit and Federal Reserve Can't Give Relief The First National and the American Security Banks announced this week that for the present they cannot handle the warrants of the Columbia, Kennewick and Richland Irrigation districts. In explaining this action the banker says their warrants accounts are up to the absolute limit. They are holding many thousands of dollars worth of school district and city and local improvement district warrants in addition to the irrigation warrants. The warrants of the irrigation districts will not be accepted by the federal reserve bank for rediscount and as yet both banks have failed to find any of the city banks which will handle them. Local bankers express the hope that soon after the first of the year they can resume the cashing of irrigation warrants. The final 1920 assessments are now due and the districts should be able to make heavy calls soon after January 1. However, many farmers who are still holding this year's crops are experiencing difficulty in meeting their assessments and a much larger percentage of ! delinquencies than usual is looked for.