1.
January 30, 1917
The Seward Gateway
Seward, AK
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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, 1917
The Daily Alaskan
Skagway, AK
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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 The run continued throughState Board of Bank Examiners, out the day and a vast amount of cash was withdrawn.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, 1917
The Alaska Daily Empire
Juneau, AK
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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, 1917
Elko Independent
Elko, NV
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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 31, 1917
The Seward Gateway
Seward, AK
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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.
6.
January 31, 1917
The Nome Daily Nugget
Nome, AK
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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.
7.
January 31, 1917
Evening Capital News
Boise, ID
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German-American Places Itself in Hands of State Examiner When Crowd of Depositors Appears. SUPPORT PROMISED. San Francisco, Jan. 31.-The federal reserve bank here telegraphed all Seattle banks today that it was prepared to support them. Seattle, Jan. 31.-The German-American Mercantile bank did not open for business today. The bank's officers had stated earlier in the day that the bank would open. A line of 300 persons gathered at the bank before 10 o'clock and at that time notices were posted that the bank was in the hands of the state bank examiner. The clearing house association, prior to. 10 o'clock issued a statement saying it "stands willing and able to assist all solvent banks of the city if occasion should arise." The banks of the city have resources totaling over $130,000,000. The association also said it knows the present disturbance is not a legitimate cause for alarm. The German-American Mercantile bank is capitalized at $100,000. No recent statement of its affairs has been published. The bank is not a member of the clearing house. RUN ON BIG BANK. Half an hour before the People's Savings bank opened 500 persons stretched in a long double line from the bank doors. Every effort was made by the bank, which is one of the strongest in the Pacific northwest to expedite payments. The run was regarded as due to the bank's location near the Northern bank. which failed yesterday. The lobbies of the ScandinavianAmerican bank and the Northwest Trust and Safe Deposit company were filled, but there was no crowd in the street. Both paid depositors without asking questions. The American Savings Bank and Trust company, which had more than the usual crowd in the lobby, demanded 60 days' notice of withdrawals of savings deposits.
8.
January 31, 1917
The Evening Herald
Albuquerque, NM
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Seattle Bank Fails To Open Doors; Run On Others Follows (By Evening Herald Leased Wirel Seattle. Wash.. Jan. 31.-The Ger. man-American Mercantile bank did not optn for business toda: A line of 300 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 bank examiner. The German-Ameriean bank is capItalized at $100,000. Several hundred persons assembled in a line in front of the People's Savings bank before its doors opened this morning. and when the institution started the day's business, depositors destring their money were paid as rapidly as possible. The People's Savings is said to be one of the strongest banks in the Pacific northwest nd bankers attributed the run due to the fact that it Is located near the Northern Bank & 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 dis. turbance is not a legitimate cause for alarm."
9.
January 31, 1917
The Seward Gateway
Seward, AK
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BANK RUNS PECULIAR There is great mystery about a bank run, and the flock at Seattle yesterday will provide much material for the psychologists. Runs start without rhyme or reason SO far as finance is concerned. The very foundation of a successful banking business makes the banker vulnerable to a run of any length, for to make a success of the business he has to have the money in his care out at work. The banker pays from three to four percent on deposits and loans the money at higher rates. Actual cash to transact business is kept on hand which amounts to from 15 to 50 percent of the liabilities of the bank, depending upon the banker. Of course, some banks keep more and now and then a bank which does a very small busiess will save less. With this situation the banker with 30 percent of his cash on hand would have to close his doors if 40 percent of his depositors wanted their money quick. The bank might be perfectly solvent but the money is out at work and it can't be called in and shelled out over noght, to suit the clamor of skittish depositors. New York has been the scene of some of the most remarkable runs in history, caused by the most trivail OCcurrences. The least possible excitement in a bank in a large city is liable to cause a run. The capture of a pickpocket or sneak thief in a bank entailing a struggle, or a loud argument by some depositor is sufficient. In fact any occurrence from which the rumor might start that "there's a run on that bank" is liable to start a run. To guard against this the banks take every precaution, officers have strict orders to let the suspect leave the bank before arresting him, and the bank officer's principal effort is to prevent excitement of any kind. The closing of the Broadway bank at Seattle caused a rur on the Northern Bank and Trust company, which had known financial relations with the former institution. This is easily explainable. But the run on the People's Savings bank had no cause except fear on the part of the depositors, regardless of fact. Runs were noted on other state banks, but the detailed account will probably show that banks weaker financially than the People's Savings, which is one of the strong banks of Seattie, escaped without the loss of an account. After the excitement is over and the stress of the moment is passed it is not an unusual sight to see those who drew their money out in a hurry, putting it back in the same bank. In fact it has been noted many times that depositors have drawn their money and immediately redeposited it in the same bank, giving as a reason that they "just wanted to see if the cash was there."
10.
February 1, 1917
The Wrangell Sentinel
Wrangell, 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.