22333. Scandinavian American Bank (Seattle, WA)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
January 31, 1917
Location
Seattle, Washington (47.606, -122.332)

Metadata

Model
gpt-5-mini
Short Digest
eb0626d2

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health, Books examined

Other: Bank paid depositors in full; supported by Seattle Clearing House and offered assistance from Federal Reserve (San Francisco).

Description

Multiple contemporaneous articles (Jan 31–Feb 3, 1917) report a pronounced run on the Scandinavian-American Bank in Seattle triggered by the failure of the Northern Bank & Trust Co. The bank paid depositors in full and was supported by the Seattle clearing house and Federal Reserve offers; runs subsided and there is no report that this bank suspended or closed. Classified as run_only.

Events (1)
1. January 31, 1917 Run
Cause
Local Banks
Cause Details
Run began after failure/closure of Northern Bank & Trust Company and general runs on other Seattle banks; depositor nervousness spread from nearby bank failures.
Measures
Paid depositors in full; supported by Seattle Clearing House guarantee and offered support from Federal Reserve/San Francisco; continued paying out cash.
Newspaper Excerpt
there is quite a run at the ScandinavianAmerican bank. The officials have examined both of these banks recently and report them perfectly sound.
Source
newspapers

Newspaper Articles (10)
1. January 31, 1917 The Seward Gateway Seward, AK
Article from The Seward Gateway, January 31, 1917

Click image to open full size in new tab

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.

2. January 31, 1917 The Alaska Daily Empire Juneau, AK
Article from The Alaska Daily Empire, January 31, 1917

Click image to open full size in new tab

Article Text

BANKS ARE SOUND SEATTLE Jan. 31. - Persistent runs kept up until closing time this afternoon on the Peoples Savings Bank and the Scandinevion-AAmeri can bank. At the 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. T here have been no runs on the Seattle National, Union Savings & Trust and Bank of California and very slight runs on the Bank of Commerce and the Dexter-Horton bank.

3. January 31, 1917 Elko Independent Elko, NV
Article from Elko Independent, January 31, 1917

Click image to open full size in new tab

Article Text

SEATTLE BANK FAILS LARGE RUN ON ANOTHER SEATTLE, Jan. 31.-The GermanAmerican Mercantile bank went into the hands of the state bank examiner following a heavy run on the institution today. A large run was commenced also on the Scandinavian American bank. The trouble was caused by the failure of the Northern Bank and Trust company yesterday. All the banks of Seattle are hard pressed. The federal reserve bank of San Francisco has offered aid to the banks which are members of the reserve.

4. January 31, 1917 Evening Capital News Boise, ID
Article from Evening Capital News, January 31, 1917

Click image to open full size in new tab

Article Text

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.

5. February 1, 1917 The Daily Alaskan Skagway, AK
Article from The Daily Alaskan, February 1, 1917

Click image to open full size in new tab

Article Text

RUNS SUBSIDE SEATTLE BANKS guarantee Seattle, Feb. 1-The made by the Seattle Clearing House to stand behind all banks during the unsettled period which now exists in this city has had the effect of practically stopping the further the withdrawal of deposits from banks, and the runs experienced by all banks save the Scandinavian Am erican. have practically been stopped, and the run on that bank today hag not been nearly so heavy as yesterday.

6. February 1, 1917 The Alaska Daily Empire Juneau, AK
Article from The Alaska Daily Empire, February 1, 1917

Click image to open full size in new tab

Article Text

BANK TROUBLES OVER SEATTLE, Feb. 1. - The Clearing House Association announced this morning that it will "stand behind every bank open for business in w Seattle today," which means there will not be another closing regardless of runs. The Clearing House guarantees had the effect of stop. ping all runs save on the Scandinavian - American and the withdrawals from that institution are not nearly as great as yesterday.

7. February 1, 1917 The Seward Gateway and the Alaska Evening Post Seward, AK
Article from The Seward Gateway and the Alaska Evening Post, February 1, 1917

Click image to open full size in new tab

Article Text

SEATTLE'S QUEER PANIC COMES TO QUICK END SEATTLE, Thursday, Feb. 1.-This city's freak panic stopped today with the suddeness that it started, when the clearing house announced this morning that it would "stand behind every bank open for business in Seattle today." The guarantee stopped all runs save the one at the Scandinavian-American and the withdrawals from that institution are not nearly so heavy as yesterday. The guarantee by the Federal reserve bank at San Francisco, to ship all money needed up to $68,000,000 in gold enabled the clearing house to take a firm stand and the people finding that their money was safe were satisfied.

8. February 1, 1917 The Daily Progressive-Miner Ketchikan, AK
Article from The Daily Progressive-Miner, February 1, 1917

Click image to open full size in new tab

Article Text

SEATTLE BANKS ARE REPORTED FINANCIALLY SOUND Clearing House Announces This Morning Will Stand Behind Every Bank in City. SEATTLE, Feb. 1.-The announce_ ment of the Clearing House this morning that it will stand behind every bank opened for business in the city today, has had the effect of checking the run that was anticipated yester_ day. The announcement is taken to mean that none of these will be a)lowed to close regardless of the runs. For those which have already clos_ ed, time alone will tell what the result will be. LATER-The Clearing House guar_ antee to stand behind every bank opened for business today, had the ef. fect of stopping all runs except on the Scandinavian-American bank, land,with drawals from that institution are not near as great as yesterday,

9. February 3, 1917 Iditarod Pioneer Iditarod, AK
Article from Iditarod Pioneer, February 3, 1917

Click image to open full size in new tab

Article Text

NORTHERNERS CONCERNED IN SEATTLE BANK FAILURE SEATTLE, Jan. 31.-The Northern Bank & Trust Company, having $1,500,000 deposits, was closed by the state bank examiner yesterday morning. A run was commenced on the institution after the failure of the Broadway State Bank, with which it was once allied. A large number of Alaskans were caught in the bank failure through their acquaintance with W. L. Collier, its president, in the North. Collier, who was merely a clerk, went to Alaska and upon his return blossomed out into a full-fledged banker. Loans of several hundred thousand dollars are said to have been made to the Issaquah-Superior Coal Mining Company, a wildcat concern promoted by Von Alvansade, whose extensive British coal and lumber holdings were confiscated at the beginning of the war. Assistance Offered Other Banks Up to 1:30 p. m. today offers of cash assistance tendered to Seattle banks by outside institutions in case of need totaled several hundred million dollars. The Fremont State Bank, a Remsberg & Dixon property, closed its doors this morning, and the GermanAmerican Bank, upon which there was a run all day yesterday, failed to ope nthis morning. There were runs on all the rest of the Seattle banks this morning, the most persistent being on the savings institutions. The clearing house has given notice that all solvent banks, whether members or not, will be assisted. Federal Reserve Bank Meets Crisis SAN FRANCISCO. Jan. 31.-Sixty-eight million dollars was offered today by the federal reserve bank to the Seattle banks in case they needed it. No Other Banks in Danger SEATTLE, Feb. 1.--The clearing house guarantee has had the effect of stopping all runs save that on the Scandinavian-American Bank, and withdrawals from that institution are not nearly so great as they were yesterday. The clearing house announced this morning that it will "stand behind every bank open for business in Seattle today." Which means that there will not be another closing, regardless of runs.

10. February 3, 1917 The Nenana News Nenana, AK
Article from The Nenana News, February 3, 1917

Click image to open full size in new tab

Article Text

Friday Seattle: Runs on all banks in this city had ceased this morning, with the exception of the Scandinavian-American, and as that institution is paying off in full and is being supported by the clearing house, the run there is rapidly abating.