22300. Dexter Horton National Bank (Seattle, WA)

Bank Information

Episode Type
Run Only
Bank Type
national
Bank ID
11280
Charter Number
11280
Start Date
July 14, 1921
Location
Seattle, Washington (47.606, -122.332)

Metadata

Model
gpt-5-mini
Short Digest
26d158cd

Response Measures

Accommodated withdrawals, Public signal of financial health

Description

Multiple Seattle newspaper reports (July 11–15, 1921) describe a short-lived run on the Dexter Horton National Bank triggered by malicious/unfounded rumors and false reports. The run was stopped the same day or within two days after officials publicly announced the bank would pay all depositors and by publication of the bank's strong resources. There is no mention of a suspension, receivership, or permanent closure in the articles.

Events (2)

1. December 31, 1918 Chartered
Source
historical_nic
2. July 14, 1921 Run
Cause
Rumor Or Misinformation
Cause Details
Malicious/unfounded rumors and propagated false statements (newsboys cried 'Dexter Horton failure'; organized rumor-mongering by individuals; alleged coordinated slander).
Measures
Bank opened early and extended hours, posted notices that it would pay all depositors, cheerfully honored withdrawal requests, issued public statements of resources; detectives sought and arrested persons spreading rumors; other banks offered support.
Newspaper Excerpt
A run commenced on the Dexter Horton National Bank on the opening of its doors, this morning. The run was completely stopped before the noon hour, however, due to announcement by officials that the bank was ready to pay every depositor.
Source
newspapers

Newspaper Articles (7)

Article from The Seattle Star, July 14, 1921

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the Burns and Pinkerton detective agencies and are making every effort to apprehend the source of these ut terances." W. H. Parsons, vice president, de clared bank officers had succeeded in running to earth six persons who had helped cause the run by their unfounded statements, "These six," said Parsons, "will be arrested and prosecuted. We are try ing to find others." Another official said: "The de positors may do as they like. It is their money. They can have it is they wish. But the 'run' seems to be practically over, and the bank is as safe as the United States govern ment." Two newsboys vending early editions on Second ave. startled many citizens by crying "All about the Dexter Horton failure." At the re quest of the newspaper offices these newsboys were arrested, the the newspapers they were selling contained nothing but the most reassur ing accounts of conditions at the bank. Star newsboys were instruct ed to mention nothing about the bank in crying their papers but what was contained in the headlines, Reports put in circulation the last few days that wholesale bakers and grocers / are refusing to accept checks drawn on the Dexter Horton bank were indignantly denied to day. E. Morganstern, secretary of Schwabacher Bros., & Co., Inc., wholesale grocers, declared: "The report is absolutely ridiculous. The Dexter Horton bank is just as safe as the United States treasury. I understand these wild rumors have caused quite a run on the bank. It is an outrage." Gus Rasmussen, president of the Seattle Baking company, when told of the report, said: "We're not refusing Dexter Hor ton checks. We're taking all we can get. I only wish we had a million dollars of them."


Article from The Seattle Star, July 14, 1921

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The run on the Dexter Horton banks at Second ave. and Cherry st. subsided materially Thursday. The bank opened an hour before regular business hours, at 9 a. m. and cheerfully paid. depositors whe asked to withdraw their accounts. Notices were posted at all tellers windows in the savings department "This bank is prepared to pay all depositors and will keep open from 9 a. m. to 8 p. m. and longer, If required, to accommodate all its customers." Some depositors withdrew an their money. These, however, were not numerous. For the most part cus tomers who entered the bank made a few inquiries and walked out, sat isfied their money is fully protected Bank officials issued a statement just before noon to the effect that if every depositor withdrew all his money there would still be $2,000,000 left in the institution. "This run was started by the ma licious utterances of some person of group of persons with a grudge against the officials of this bank," as official said. "We are protected by NX


Article from The Seattle Star, July 15, 1921

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DEXTER HORTON RUN IS HALTED Panicky Depositors Bring Their Money Back The "run" on the Dexter Hor. ton bank has stopped completely. Withdrawal of deposits Friday morning was normal. Scores of persons who had withdrawn their money from the big ploneer institution re-deposited it Friday. Altho the bank kept open until 8 p. m. Thursday so that patrons could withdraw their funds, if they so less than a of the advantage desired, opportunity, dozen Vice took President W. H. Parsons declared. "The widespread publicity given to the resources of the bank put an ef. fective stop to the vicious propaganda circulated by rumor mong. ers." Parsons said. the accounts of the bank's and Integrity stability That published Star in together with The warning the The editorials, Star, public of the nature of the attacks on were a the malignant Dexter Horton, large the factor in stopping the "run," was assertion of Parsons. "The Star's publication of the facts concerning the Dexter Hor. brought home to the people and ton the strength reliability the of the bank and was one of prime reasons why the 'run' was of such short duration," Parsons said. Bank officials are still Investigatsources of the the ing rumora the against bank. unfounded That the rumors were the work of an organized band of men is believed possible. the criminal propaganda y. Despite of lies concerning its stabili inthe Dexter Horton bank has creased its cash deposits by over $1,000,000 in the past two weeks, officials of the institution announced Friday. The campaign of slander against the bank was started as early as July 1, bank officials declared. The propaganda was pushed with skill and energy. Detectives are now busy tracing down the guilty persons. Hundreds of thousands of dollars were offered to the bank by other financial institutions on the Pacific coast. The unsolicited offers were made in a spirit of confidence, not of assistance, . Auto bandits who Thursday held up Leland Bigbee, bank messenger of the Northwest Trust and State robbing him of $25,000, at Sec. and st., are ond bank, ave. Spring believed from by police to be men operating Chicago. A copy of a code telegram to Chicago is in the hands of police, The is known to have been in the three months, city sender for studying the habits of bank messengers. was belive he sent the When the man telegram, ready, summon- Chicago. police ing his companions from No trace of the four bandits had been found Friday. Seattle and surrounding towns thru all the Northwest are being combed for traces of the quartet. was taking the money from the Reserve Higbee Federal bank, at Second st., to the Northwest State bank Trust ave. and and Spring when the bandits drew up alongside. One man jumped out, pushed a gun against his head, and took the bair from him. The bandits then sped up Pike st. They were seen four times after the robbery.


Article from The Kusko Times, July 16, 1921

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RUN STARTS ON BANK Dexter Horton Institution Stands Ready to Pay All Depositors. Seattle, July 14.-A run commenced on the Dexter Horton National Bank on the opening of its doors, this morning. The run was completely stopped before the noon hour, however, due to announcement by officials that the bank was ready to pay every depositor.


Article from The Nome Nugget, July 16, 1921

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Dexter-Horton Bank Announcement Stops Run Seattle, July 11-The Dexter-Horton National Bank's announcement last evening that it was ready to pay every depositor completely stopped the run on the/institution before the noon hour today.


Article from The Seward Gateway, July 30, 1921

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had been out with the boys in the north, and had encountered shell-game men, second-hand dealers and others of their ilk without getting stung during their residence in the north. During the fore part of the week the attempt to injure the bank was a good sized joke to them. On Wednesday, these ex-Alaskans got mad. In fact, it is stated, our old friend Latimer really came out of his "ice-water" attitude for the first time in 20 years. "Begad," said these ex-Alaskans, "we will show these four-flushers a thing or two." Result was that banking hours were changed from 10 a. m. to 3 p. m., to 8 a. m. to 9 p. m., and the depositors invited to come forth and get their money. Now, the public is mighty uncertain. If they think you care they like to rub you the wrong way. But when they realize the bank did not want to do business with depositors who listened to scandal_mongers and trouble makers they backed right up. The run on the Dexter-Horton bank quit almost as suddenly as it started. Seriously speaking, the Dexter-Hor ton bank is a big institution. To take it out of the commercial life of Seattle would destroy banking business of Seattle for the next ten years. It IS equally unbelievable that reports of such lying nature regarding the bank would be accepted as true by people of common sense. The Alaska Dispatch would estimate its Alaska deposits at about $7,500,000. That is to say, there is about that sum of money in the bank from men and women, who are or have been residents of Alaska, including the Alaskan bank reserves carried at the Dexter-Horton bank. The Alaskan Dis patch can never be accused of being subsidved by the Dexter-Horton bank. This pub cation has never been encour aged in any way by the officials of the bank. In fact, they have shown a rather cold indifference toward the publication. But the Alaska Dispatch knows of the high regard in which the bank is held by Alaskans. During 21 years of journalistic work those who make the Dispatek have never heard a single inciden. where ii wa roasted this bank. " institution mis tiested or a cu tomer. -Feattle D's natch


Article from The Seattle Star, December 30, 1921

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The Star. July 8.-Herror night in city jaft ex. posed by The Star. July 14-Dexter Horton survives two-day bank run. July 21.-Capt. Henry H. Marden, master of the Ill-fated Governor, dies of broken heart in local hos. pital. July 23.-First - performance of "Way. farer" pageant, July 26.-City - salaries slashed $600,000. August 8.-Trunk recovered from Lake Union containing body of Kate Mahoney. October 1. James E. Mahoney con-