22377. Exchange National Bank (Spokane, WA)

View Charter #4044 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
4044
Charter Number
4044
Start Date
January 18, 1929
Location
Spokane, Washington (47.659, -117.426)

Metadata

Model
gpt-5-mini
Short Digest
0b209e67

Response Measures

None

Receivership Details

Depositor recovery rate
100.0%
Date receivership started
1929-01-18
Date receivership terminated
1936-09-16
OCC cause of failure
Governance
Share of assets assessed as good
73.0%
Share of assets assessed as doubtful
12.0%
Share of assets assessed as worthless
15.0%

Description

The board of directors suspended business and turned affairs to the National Bank Examiner (W. H. Baldridge). A receiver was appointed shortly after. Closure was voluntary by directors to protect depositors amid publicity about a defalcation (Herrick) and related withdrawals/rumors; the bank went into liquidation under the comptroller/receiver and did not reopen as a going concern.

Events (4)
1. May 23, 1889 Chartered
Source
historical_nic
2. January 18, 1929 Receivership
Source
historical_nic
3. January 18, 1929 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Directors cited publicity given the 'Harris defalcation' and the 'Herrick failure', subsequent steady withdrawals and increasing rumors making a run imminent; board resolved to suspend business and notify the comptroller to protect depositors.
Newspaper Excerpt
Bank closed by order of the board of directors. W. H. BALDRIDGE National Bank Examiner in Charge.
Source
newspapers
4. January 19, 1929 Receivership
Newspaper Excerpt
W. H. Baldridge, national bank examiner ... appointed receiver the Exchange National bank of Spokane, which closed its doors yesterday to protect its depositors.
Source
newspapers

Newspaper Articles (22)
1. January 18, 1929 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, January 18, 1929

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EXCHANGE NATIONAL BANK CLOSES DOORS ASK JAIL TERMS ALL RUM CASES Drastic Orders Issued by County Prosecutor Due to Rogers' Trial. Drastic orders concerning the conviction of liquor violators were issued today to all deputy prosecutors by Prosecutor Charles Greenough as a result of Deputy Prosecutor Frank Funkhouser yesterday being successful in his plea to Justice Charles Gram for a suspended jail sentence and suspended fine of $250 in the case of Frank Rogers, 25. have instructed all my deputies to demand jail sentences for violators of the liquor law,' said Prosecutor Greenough. Pleaded Guilty. Rogers entered plea of guilty manufacturing liquor and admitted owning and operating still in a house at E2 Eighth. Although censured Rogers and he severely declared that he believed that Rogshould be deported, Funkhouser ers recommended to Justice Gram that the jall sentence be suspended. Funkhouser explained his recommendations by saying that he and Deputy Sheriff W. A. Harker had stipulated with Rogers' attorney, and had agreed to recommend suspended sentence if Rogers would plead guilty. When Funkhouser halted the trial for Brower denied having Deputy Sheriff Hark sentence this Brower Talked After the this onference. ledge in Sheriff orders Sheriff his action persons in reduce hat more imporwill barter liquor tant Greenoug the lay facts There may exceptions, but these will where evidence is sufficient to secure conviction case is carried higher court." Judge Gram said he favor suspended liquor law

2. January 18, 1929 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, January 18, 1929

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HILLYARD HIGH LEADS GONZAGA Piles Up One-Point Margin in City Cage Battle Teams Fight Hard. Hillyard high leading Gonhigh Bullpups, to the half this in city cage battle. The action was fast and rious, with both teams playing speedy, but eautious, basketball. In their this Gonzaga won an overtime tile by 21-20 score. CONTINUE PROBE OF KIDNAPING BIG TIMBER, Mont., Jan. 18. Continuing their investigation the story told by J. Price, Big Timber and stock remedy salesman, he was kidnaped and held prisoner for 19 days, Sweetgrass county officers have sent to police departments throughthe west pictures of Frice, the peculiar type of and and wore when he vealed himself tion in Salt Lake In the meantime, human bones found in the ashes of shack formerly owned by Mrs. Price are held in custody of Coroner Graff. The bones, first as of and buried under his name at Bozeexhumed and the coroner's unable tablish their except that they those human. have been advised that been isfied ith Price's for pended of the payment to after husband greater part of the money rendered by Mrs. voluntarily mediately word that Frice in Salt Lake City. ULD ALLOCATE LUMBIA WATERS of Columbia river the five provided congress Oregon, of the upper house mittee de basin. bill came the include Suspends Business-Federal Examiner in Charge -Coeur 'Alene Institution Also Posts Notice. The Exchange National bank of Spokane closed its doors today. On the glass doors at the entrance of the bank was the simple statement: Bank closed by order of board of directors. National Bank Examiner in Charge. The bank has approximately $7,500,000 In deposits, and pected to pay out on the basis 75 to per cent. However, with the that probably will be levied by the comptroller of the currency, and the liquidating the paper held, the bank may pay out nearly 100 per cent. The First National bank Coeur also failed to The notice appearing on the door said: by order of the directors. Ed Flood of Spokane is president of the bank and Harry Wolf, vice Directors Adopt Resolution. The board of directors the Exchange bank held meeting this morning, and adopted the following resolution: Whereas, because of the publicity given the Harris defalcation, and to the Herrick failure, the subsequent slow but continuing withdrawal of deposits from the bank, and because of the fact that several recent negotiations for the sale of the bank have not met with success, and the increasing rumors to the bank which make the danger of run on the bank imminent, the board of directors feel that their first duty the depositors of the bank, and in order the assets and preferthe business of the bank shall be at once Resolved, that business of this be and the once notify the comptroller the currency turn the affairs of the bank to him or as he may instruct. Agreed Assessment. At the meeting of the on decided of assessment the stock share. A written agreement to be by pay such and within signed by ontinued

3. January 18, 1929 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, January 18, 1929

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EXCHANGE BANK CLOSES ITS DOORS Suspends Business and Turns Affairs Over to Federal Examiner-Coeur d'Alene Institution Also Posts Notice of Quitting. The Exchange National bank of Spokane closed its doors toOn the glass doors at the entrance of the bank was the simple statement: Bank closed by order of the board of directors. H. BALDRIDGE National Bank Examiner in Charge. The bank has approximately $7,500,000 in deposits, and is expected to pay out on the basis of 75 to 80 per cent. However, with the assessments that probably will be levied by the comptroller of the currency, and the liquidating of the paper held, the bank may pay out nearly 100 per cent. Coeur Institution, Too. The First Exchange National failed to open today The notice appearing the said "Closed by order of the Ed Flood of Spokane president of the bank and Harry Wolf, Directors Adopt Resolution. The board of directors the Exchange bank held meeting this morning, adopted the following resolution: because the publicity given the Harris defalcation, and to the Herrick failure and the subsequent slow but withdrawal the bank, and because the fact that recent negotiations for the sale the bank have not met with success, the increasing rumors in relation the bank which make the danger run imminent, the board directors feel that their first duty to the positors the bank and order to preserve the assets and prevent possible preferences, the the bank shall business of this bank shall be suspended and that the president once shall notify the comptroller of the currency and turn the affairs the bank to him or as he may instruct. Agreed to Assessment. At the stockholders' meeting of the held on was $50.00 per share. written agreement to signed by the agreeing pay such assessment was and within two or three days was signed stockholders representing 6000 shares, about thirds the This sent to the comptroller of the and to the Federal Reserve bank at San In its terms, the agreement did not prove to be satisfactory to the Federal Reserve bank. of the widespread ors connected with the bank and the deposits, and the objection of the Federal Reserve bank to this it became order the assets of the bank and to prevent preferences priorities, to sell promptly go into liquiThere did not seem to be sufficient which negotiate sale of the bank, and such negotiations had not having met with success promptly, the board directors thought their duty to close bank as give the fullest to the The affairs of the bank have been by disand the best opinion is that net realized from the assets will exceed the aggregate liabilities, and the depositors will suffer no The comptroller of the notified by and national in the bank. Statement at Coeur statement d'Alene National of Coeur This on account of failure for business to The statement signed Harry bank directors are voluntary ment referred to in the Spokane bank will be collected signed by certain stockholders is However, is expected the comptroller of the currency will Immediately per protect the depositors Meetings have been held at the every day for the past week days effort solve the situation, brought about by steady withdrawal of Four different proposals for sale of the bank none be brought to cessful culmination understood the proposals included ing the institution with either the & Eastern Trust or the bank, turning the Marine tion of Seattle, which the Dexter Horton National bank is an immember meeting Spokane Clearing House association held evening at the Davenport in final attempt about solution the question. morning's closthe followed the only means of protecting the deposits those whose confidence the institution was expressed by their leaving funds in the bank It was feared further delay might sult in on the bank. Bank Examiner's Statement. Mr. Baldridge issued the following official statement: "Gradual withdrawal of deposits has prompted the directors close the bank that assets be preserved equally for everyone.

4. January 18, 1929 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, January 18, 1929

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TWOHY PRAISES BANK DIRECTORS D. W. Twohy chairman of the Old National Bank Union Trust commended the directors of the Exchange National bank on their in closing the bank in the follow ing statement: "While the placing of the Exchange National bank into voluntary liquidation by its direccomes as shock to the community, the action of those in charge taken for the purpose protecting equally the depositors of institution, should be commended informed that the institution has considerable cash which will be distributed to reasonable promptness, other Spokane banks aid business situation by making advances claims when they can be put into legal form. feel sure that this liquidation in an derly way will result the benefit of all concerned.

5. January 18, 1929 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, January 18, 1929

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Suspends Business and Turns Affairs Over to Federal d'Alene Institution Also Posts Notice. The Exchange National bank closed its doors today. On the glass doors at the entrance of the bank was the simple statement Bank closed by order of the board of directors. "W. H. BALDRIDGE "National Bank Examiner in Charge. The bank has approximately $7,500,000 in deposits, and is expected to pay out on the basis of 75 to 80 per cent. However, with the assessments that probably will be levied by the comptroller of the currency, and the liquidating of the paper held, the bank may pay out nearly 100 per cent. Coeur d'Alene Institution. Too. The First Exchange National Coeur Alene failed to open today. The notice on door "Closed by order of the No further made, Harry vice statewould be issued Ed Flood of Spokane of the Directors Adopt Resolution. The board of directors the Exchange National bank held meeting this morning, and adopted the following resolution: because the publicity the Harris defalcation to the Herrick failure, and the subsequent slow but continuing withdrawal deposits from the bank, and because the fact several negotiations for the sale the bank with success, increasing rumors in relation the bank which make the danger run the bank imminent, board of directors that their first duty to the depositors bank, and in order preserve and prevent preferences, the the bank shall once suspended that business of this bank shall be suspended the once notify the the and turn the affairs of the bank to him or as he may instruct. Agreed to At the of held January decided to approve an assessment on the stock per share. signed by the stockholders agreeing pay such assessment was and within two three days signed by stockholders representing over 6000 shares, about twothirds of the This was sent to the comptroller the and the Federal bank at San Francisco. its terms, the agreement did to be satisfactory the Federal Reserve bank, the widespread connected with bank, and withdrawal deposits, and objection the Federal Reserve bank to this agreement, became necessary, order to preserve the assets the bank and to all priorities, sell the bank promptly or go into liquidation. There did not seem to be sufficient time which negotiate sale of the bank, and such negotiations as had having with promptly, the board of their duty to close the bank the fullest protection to the depositors. The affairs of the bank have been by disthe best opinion that under reasonthe net cash realized from the assets exceed the aggregate liabilities. and the depositors will suffer loss. The comptroller of the currency notified wire and Mr. national iner, is in possession of the bank. at Coeur d'Alene. statement issued in Coeur d'Alene at noon today read: board of directors of the First Exchange National of Coeur d'Alene decided today close the institution. This action made on account the failure of the Exchange National bank of Spokane open for business this first intimation directhis bank had that Exchange National bank Spokane would received morning, and decided terest bank that it to close. The statement was signed Harry Wolf, vice president The directors of the bank Harry Wolf, Roscoe Balch, and John financial will until after visit by the Won't Collect Assessment The referred Spokane now signed by certain stockholders is expected troller diately assessment the still added such necesprotect the depositors. at the day for past Davenport effort the the steady withdrawal of Merger Plans Failed. Four different proposals for the considered, none could brought undercessful stood Eastern Trust company Spokane the American turning Seattle, which the Dexter Horton National bank an member. meeting the Spokane Clearing House held last evening the final attempt bring the question morning's of the bank's doors followed only means of protecting the deposits of those confidence the institution expressed by funds in the bank was feared delay might rein run on the Bank Examiner's Statement. Mr. issued the follow ing official statement Gradual withdrawal of deposits prompted the directors close the bank order that assets be preserved equally for

6. January 18, 1929 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, January 18, 1929

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TWOHY PRAISES BANK DIRECTORS W. Twohy, chairman of the Old National Bank and Union Trust directors the Exchange National bank their action closing the bank in the following the placing of the Exchange National bank untary liquidation by its direccomes community the action charge for the purpose equally depositors the institution, should be commended. informed that the institution has means, be distributed depositors reasonable promptness, other Spokane banks business situation by making advances claims they into legal form. feel sure that this derly result the benefit of all concerned." possession with intent to sell not "We not to reduce charges opportunity secure on more important offense," said Prosecutor "We will barter bootleggers and liquor manufacturers. issued instruction the deputies lay the facts before the court. may but will evidence not sufficient to the case is carried higher court." Judge Gram said that he did favor suspended sentences for liquor law violators.

7. January 18, 1929 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, January 18, 1929

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EXCHANGE BANK CLOSES ITS DOORS Suspends Business and Turns Affairs Over to Federal d'Alene Institution Also Posts Notice of Quitting. The Exchange National bank of Spokane closed its doors to-, day. On the glass doors at the entrance of the bank was the simple statement: "Bank closed by order of the board of directors. "W. H. BALDRIDGE. National Bank Examiner in Charge.' The bank has approximately $7,500,000 in deposits, and is expected to pay out on the basis of 75 to 80 per cent. However, with the assessments that probably will be levied by the comptroller of the currency, and the liquidating of the paper held, the bank may pay out nearly 100 per cent. Coeur d'Alene Institution. Too. The First Exchange National bank of Coeur today. the "Closed order directors." Ed Flood of kane president bank and Harry Wolf, vice president. Directors Adopt Resolution. The board of directors the Exchange bank held meeting 8:30 this morning, and adopted the following resolution: because the publicity the Harris defalcation, and to Herrick failure, subsequent slow continuing withdrawal deposits from the bank, and because fact that several recent negotiations for the sale the success, rumors relation the which make the danger the bank the board directors feel that their first duty to the depositors the bank, and in order and prevent ences, of the bank shall suspended. Resolved, that business this bank shall be suspended and that the president once shall notify the comptroller the currency and the bank to him as he may instruct. Agreed Assessment. At the meeting held decided the stock $50.00 share. written signed by the stockholders agreeing pay assessment was within or three days signed shares, about thirds agreement sent the comptroller of the currency the Federal Reserve bank at San In its terms, the agreement did satisfactory the bank. the widespread of connected with bank, the deposits, and the objection of the Federal Reserve bank this agreement, became necessary, order to preserve the assets the bank all the bank promptly or go into liquidation. There did not seem to be sufficient time which to negotiate the bank, and such negotiations had not met board their duty close bank give the fullest protection depositors. The affairs the bank have examined by several disopinion that under reasonthe net cash realized from assets will exceed aggregate liabilities. depositors suffer no The comptroller the currency notified wire and Mr. examis in of the bank. Statement at Coeur d'Alene. statement issued Coeur board directors the Exchange National bank Coeur d'Alene decided today to close the institution. This action made necessary the failure Exchange National Spokane open for business this morning. "The first intimation directors this bank that the Exchange National bank Spokane open was received this morning, and decided that for best terest this bank that was necessary close." The statement was signed Harry Wolf, vice president directors the bank are: Harry Wolf, Roscoe Balch, the and John Boothe. No financial statement will be made until after visit by the examiner. The cent voluntary assessreferred Spokane directors' will signed by certain However, is expected the compthe currency Immeper protect depositors Meetings have been held at the Davenport every day for the past week days an effort and the brought by the steady of deFour different proposals sale of the bank considered, but none could brought to successful understood the proposals included merging the institution with either the Trust company turning the Marine tion Seattle, of which the Dexter Horton National bank is an im portant member. the Spokane ClearHouse evening at the Davenport attempt bring about solution the question. This morning's closbank's doors followed the only means of protecting the deposits of those whose confidence the was expressed by funds the bank. was feared delay might sult in run on the bank. Bank Examiner's Mr. Baldridge issued the ing official statement: Gradual withdrawal of deposits prompted the the order that may be preserved for everyone." The statement of of the bank the close business December 31, 1928, was: Resources. Loans and Discounts 7,264,198.59 Bonds Certificates 1,199,516.63 Bonds Warrants. 364,142.77 Banking Premises Other Estate.. 577,904.39 Due From Banks Liabilities. $11,386,511.81 Capital Stock 1,000,000.00 Surplus Profits... Circulation 1,000,000.00 Due Federal Reserve Bank 747,500.00 Deposits $11,386,511.81

8. January 18, 1929 The Spokane Press Spokane, WA
Article from The Spokane Press, January 18, 1929

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CLOSE DOORS OF EXCHANGE NAT'L. BANK Liquidation Will Be the Process: Expect Depositors Will Be Paid in Full; Closing Guards All Depositors The Exchange National bank was closed Friday by order of the board of directors. The closing, it was said, was for the protection of depositors. $50 assessment made on the stockholders becomes void by the closing process. However, an assessment will probably be made when the bank's liquidation is completéd, this being in order to pro tect depositors. By this plan is believed that the depositors will get all of their money and the loss to them will slight, any statement issued this morning by National Banking Superintendent W. H. Baldridge, as follows "Gradual vithdrawal of deposits has promp the directors to close the bak in order that assets might be equally for every one As soon as of the closing spread about the large numof persons gathered at the bank's doors, 606 Riverside, at How Dan Hannah, one of the bank of ficials, stood outside the door. ad vising the crowd not to remain say no business could be conducted today. He advised every one to wait patiently until proper could conducted Liquidation will be the process, it was The board of directors of the Ex change National bank held a meet ing 30 this morning and adopt the follow resolution: Whereas, because of the publicity given to the Harris and to the Herrick failure, and the sub sequent but cont nuing. with drawal of from the bank and because of the fact that several recent for the sale of the bank have with rumors in relation to the bank which makes the of on the bank imminent, the board of directors feel that their fir duty to the depos tors of the bank and in or der to the and prevent any possible the business of the bank shall be Resolved. the business of this bank shall be at once suspend ed and the president at shall notify the comptroller of the currency and turn over the affairs of the bank to him or as he may in At the stockholders' meeting of the bank held January 9th. was decided to approve of an sessment on the stock of $50 per share. written signed by the stockholders agree ing to pay such an assessment circulated and within three days signed by stockhelders representing 6000 shares or about two-thirds of the stock. This agreement sent to the comp troller of the currency and to the federal bank at San Fran cisco. In its agreement did not to be satisfactory to the federal reserve bank Because the widespread circulation of ru mors connected with the bank and the ithdrawal of deposits, and the object the federal reserve bank to this agreement became order to assets of the bank and to all or priorities, to the bank promptly go liqui dation There did not seem to be sufficient in which nego tiate sale of the bank and negotiations as were had not hav ing met success promptly. the board of directors thought It their duty the bank as to the fullest protection to the deposThe affairs of the bank have been examined several disinterested persons opinion that under reasonable management the cash realized from the will exceed aggregate Habilities and the depositors will The comptroller of the currency was at once notified by wire and Mr. Baldridge, national bank in possession of the bank The first Exchange National bank of Coeur d'Alene also closed its doors this morning to protect depositors

9. January 19, 1929 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, January 19, 1929

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Harry C. Johnson Tells Chronicle Nothing to Be Feared-Explains. "State banks of the Inland Empire will not be affected by the closing of the Exchange National bank of Spokane, Harry C. Johnson, state superintendent of banking, said today. Exception. "The only exception to this is the Bank Farmington, which was practically entirely owned by officers directors of the Exchange National bank. This bank did not open its doors this mornand state banking department for the state banks were cleaned and put first-class shape time Fred Herrick turned assets over board of creditors. At that time, an assessment put the stockholders of the Bank of this was paid. The bank had large deposit with the Exchange National bank, which course will tied up til the receiver makes payment dividends the Exchange. "The Bank Farmington is one of the best banks in eastern Washington, but due its close affiliation the Exchange National bank, developed among its depositors and was felt the best course close bank order to equally protect all depositors. Pay Out. "There that this bank will liquidate satisfactorily reasonable period and 100 per cent. This is the first time remember when the state banking department been to make that statement. about closed Kinzie, cashier of the Bank of Farmington, credit for his management and the past success of institution. has paid substantial dividends continuously for several the Herrick items and the closing of the Exchange National would be question but this bank would maintain past successful record. Farmington has capital $25,000, surplus of undivided profits $8000 and total resources of $332,000.

10. January 19, 1929 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, January 19, 1929

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Harry C. Johnson, Tells Chronicle Nothing to Be Feared-Explains. "State banks of the Inland Empire will not be affected by the closing of the Exchange National bank of. Spokane,' Harry C. Johnson, state superintendent of banking, said today. One Exception. "The only exception to this is the Bank of Farmington, which practically entirely owned by the officers directors of the Exchange National bank. This bank did open its doors this and has turned the state banking department for liquidation 'All the state banks cleaned up and put first-class shape the time Fred Herrick turned his assets over board of creditors. At that time, an assessment was put stockholders of the Bank of this was paid. The bank also had on with the Exchange National bank, which will be tied up until the receiver makes payment of dividends the Exchange. "The Bank Farmington is one of the best banks eastern Washington, but due its close affiliaExchange National veloped among its depositors and was felt the best course to close bank order to equally protect all its depositors. WILL Pay Out. "There is that this bank will liquidate satisfactorily within reasonable period and 100 per cent. This the first time remember when the state banking department has been able to make statement about closed Kinzie, cashier of the Farmington, credit for his the past sucinstitution. substantial dividends continuously for several not for the Herrick items and the closing of the Exchange National bank, there would question but that bank would maintain its past record. of Farmington has capital of $25,000, surplus of undivided profits $8000 and total resources of

11. January 19, 1929 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, January 19, 1929

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NAME BALDRIDEG BANK'S RECEIVER National Examiner Will Be in Charge Exchange National in Spokane. W. H. Baldridge, national bank the Washington, today appointed receiver the Exchange National bank of Spokane, which closed its doors yesterday to protect its depositors. Doors of bank still were closed this will not be opened sometime Mr. Baldridge The safety devaults still are closed and Mr. Baldridge said he would not be to customers to get to the for plete books the list every assets and liabilities,' said Mr. Baldridge. payment can positors everyone has had the opportunity claim against the bank. The 90 days for the filing of claims. Open Next Week. "The bank probably will opened some for to come in and talk over Mr. Baldridge intimated the staff care for the work auditing the accounts and liquidating the bank. Notes held the bank not be collected until they fall due and the estate fixed assets will take and result the process making full payment necessarily will take time, it is said. the city, business was normal and bankers everywhere sounded note of encouragement. Other the making for payrolls and business banked at Exchange. Spokane banks, exclusive of the Exchange, had nearly cash from other banks and than $30,000,000 in liquid pahand the time of national bank call as of December 31.

12. January 19, 1929 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, January 19, 1929

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NAME BALDRIDGE BANK'S RECEIVER National Examiner Will Be in Charge Exchange National in Spokane. W. H. Baldridge, national bank examiner the Washington, today was appointed receiver the Exchange National of Spokane, which doors yesent terday to protect its depositors the bank still closed this morning and will not be opened until some time next week, Mr. Baldridge said. The safety posit vaults are closed and Mr. Baldridge said he would not be able to customers get to the vault for several days yet. tion. first move is make complete audit of the books of the will bank list every item of assets liabilities," said Mr. Baldridge. payment can be made dehas had the opportunity to file any claim against the bank The 90 days for the filing of claims. Open Next Week. "The bank probably will be opened time next week for people to come in and talk over business matters.' Mr. Baldridge intimated the same banking staff would be retained for the work of auditing the the bank. Notes the not be fall due the real and other will take time to and result the process of making full payment to depositors necessarily will time, business normal everywhere sounded encouragement. Other banks in the city making loans to for current payrolls and business houses who banked at the Exchange. Spokane exclusive of the Exchange, cash and from banks and more than in liquid hand the of the tional bank call as of December

13. January 19, 1929 The Spokesman-Review Spokane, WA
Article from The Spokesman-Review, January 19, 1929

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EXCHANGE TO PAY FULL, HE SAYS C. McBroom, Head of Closed Bank, Assures. IS SAFETY MOVE Withdrawal After Alleged Defalcation and Herrick Trouble Blamed. SALE PLAN UPSET Heavy Stockholders Had Hoped $500,000 Assessment Would Restore Confidence. That the Exchange National bank, closed yesterday morning by order its board of directors, will pay the dollar to was the statement made last night by McBroom. president. "Based my own of the bank's and on the judg. ment of others who have its books, feel that will paid dollar positors for dollar," said Mr. McBroom. Emergency Levy Avoided. "We had formulated plans for tiding over the bank until the proof the recent But there gradual of and rather than have depositors preferred at the expense of others the directors today agreed that best to close the bank The final figures on deposits in the bank Just closing was cording obtainable. This of nearly from the high stage of deposits in 1928. U. N. Examiner in Charge. Baldridge, national bank on being the decision the board of directors of the Exchange National to close the institution. posted notices on to that effect. "Bank closed order the board of directors. H. BaldMr. Baldridge last night said he had notified the of the of the and for He charge the bank comptroller at Examiner Baldridge has for instructions to opening the safety The ty deposit yesterday through the closing of the front doors the bank Mr. Baldridge said had to make as to the condition of the as he had over its his cial the first of the withdrawal of deposits has the to close the bank that assets may be preequally for every said Mr. Baldridge. of the bank were turned over to the Huntley Blames Herrick Affair. largest dividual change the board, the He blamed the Fred Herrick for of the Exchange National Herrick was ligated to the bank for $418,000. his bankruptcy proceedings revealed. that the bles the National head than officers had anticipated. Directors meeting December per cent stock would amounted to $500,000. or half of the capital of the bank This Jevy made in of an be levied by the troller of the Holders of the 10,000 shares in the Exchange National signed docu ment agreeing to the so per cent An effort this the bank, but that Needed More Time. Efforts have been sell the the Exchange National, having times been with the and Eastern Trust company and banking to be the Dexter The bank lacked the time in Its crisis to on favor. able after which the closing followed. Statement by Directors. the Exchange Namorning adopted the following because the licity given to the Harris defalcaand to the Herrick failure and the slow but of from the bank, and of the fact that several recent negotiations for the of the bank have not met success, and the rumors in relation to the bank which make the danger of run on the bank the board of directors feel that first duty to the depositors the bank, and in order to preserve the assets and prevent any possible the of the bank shall be at once suspended. "Resolved. that the business of be suspended the at once notify the comptroller of the rency and turn over the of bank to him or as he may Stockholders Are Liable. the Exchange Na. are in the the extent of their stock liquidation hold. an assessment of 100 per The capital which should call upon them. holders the bank the hope that the bank might be (Continued on page six, column

14. January 19, 1929 The Spokesman-Review Spokane, WA
Article from The Spokesman-Review, January 19, 1929

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EXCHANGE TO PAY FULL, HE SAYS McBroom, Head of Closed Bank, Assures. IS SAFETY MOVE Withdrawal After Alleged Defalcation and Herrick Trouble Blamed. SALE PLAN UPSET Heavy Stockholders Had Hoped $500,000 Assessment Would Restore Confidence. That the Exchange National bank. closed yesterday morning by order its board of directors, will pay on the dollar was the statement made last night by McBroom, president. "Based on my own of the bank's affairs, and on the judg. of others have its books, feel confident that dewill paid full. dollar for dollar, said Mr. McBroom Emergency Levy Avoided. "We had formulated plans for tiding over the bank the proof the could come in. But there gradual deposits and rather than have some depositors preferred the expense of others the directors today agreed that it best to close the final deposits the bank just prior closing according to figures obtainable This of nearly $5,000,000 from the high stage of deposits in U. N. Examiner in Charge. W. national bank examiner, on being of the decision board of of the Exchange to close the posted notices on the bank's to that effect. read: "Bank closed order of the board of directors. W. H. Baldridge." Baldridge last night said he Mr. had notified the of the the situation and for Instructions He continue in charge the bank until receiver appointed by the comptroller Washington. Exuminer has for structions as to opening the safety ty was closed yesterday through the closing of the front doors the bank. Mr. Baldridge said he had no make as to the condiof the Exchange. as he had not Its his official examination the first of the "Gradual withdrawal of deposits has prompted the directors to bank that assets be pre* equally for every one," said Mr. Baldridge of the bank were turned over to the Huntley Biames Herrick Affair. William Huntley, the largest dividual stockholder in change bank chairman the board, regretted the closing He blamed the Fred fallfor the troubles the Exchange National Herrick obligated to the bank for $418,000. his bankruptcy proceedings revealed. that the final the National quicker than officers and December 34 voted a per cent stock which would have amounted to $500,000, half of the capital of the bank was levy made of an levied by the troller of the Holders of the 10,000 shares in the Exchange National signed document to the per An effort on this the bank, but that Needed More Time. Efforts have been made the control the negotiations times conducted with the Spokane and Eastern Trust and banking to be the bank the time in its final to on after which the closing followed. Statement by Directors. of the Exchange Na. adopted the following resolutions: because the licity given to the Harris defalcaand to the Herrick failure and the slow but continuing withdrawal of from the bank, of the fact that several for the of the bank not with and the rumors relation to the bank which make danger run on bank the of feel that their first duty the to depositors the bank. and In order preserve assets and any possible the businees of the bank shall be at once Resolved. that the business of this bank suspended that the president at once shall the comptroller the and turn over the affairs of struct.' the bank to him or as he may In- tional are the the extent of their stock hold. The capital the another should the holders of the bank expressed the that the bank might be able (Continued on column

15. January 20, 1929 The Spokesman-Review Spokane, WA
Article from The Spokesman-Review, January 20, 1929

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TRIED TO CURTAIL HERRICK LOANS Director of Exchange Bank Tells of Failure Bringing Crisis. U. S. IN CHARGE W. H. Baldridge, Examiner, Named Receiver-Plans to Open Doors. Through appointment by the comptroller the currency, W. national bank examiner, took charge the change National bank as receiver, He that the staff retained in the for the being the audit and bank's creditors as they file their claims. Three Months' Walt Obligatory. Bank depositors not receive first allotment funds from the Exchange soon thought Mr. Baldridge says that 90 given for credfile the initial depositOn estimated that three and four get the books shape for the first While assign no def inite date for of thought might done this Numerous being the safety deposit vaults and It is sible department be opened Levy on Stock Undecided. Borrowers having notes in the not be called to until their notes are said the receiver. Whether an levied of the Mr. the to say after the books are busy with former patrons new change accounts bank dence their holdings credit to them to on their Other State Case. the tion did not the aid of the would required the cash of the bled bank Banks willing aid the Exchange exbut doubt whether the could been prevented by joint Clearing also ported that the inability the change through voluntary $500,000 had The crisis the expected and was precipitated that associated banks did the way which the funds by the deposits felt of the would Huntley Would Net Run. of the board the Exchange bank and largest Saturday the position that the associated Spokane should have to tide the ble the effect the the persons of limited Mr. Hunt ley said he could have disposed his but was not of the type that runs when he another the Exchange efforts the financial status the bank and when thought the had blamed the loans the been Herrick the bank for H. Baldridge bank and stated he for the the tional and the January Mr Baldridge said he agreed enter under certain conditions which were not He did not resign his place did not with the Never Corrected Statement Neither bank officials nor Mr. Baldridge the closing the that had not the with bank bank officially In The that he had and vice and had the made that of Herrick paper, had suspended.

16. February 27, 1929 The Spokesman-Review Spokane, WA
Article from The Spokesman-Review, February 27, 1929

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EXCHANGE CLAIM PLAN SPEEDED Hundreds of Depositors Handled by Bank Receiver's Staff on First Day. 1 FAINTS: CARRIED OUT Certificates for 60 Per Cent Divi- dend will Go Out Some Today, Perhaps. to an of the filled the of the National afternoon file their in accordance to law About admitted 200 were in waiting in the outer Within the bank during the the the savings windows At the there the normal activity evidence the bank the at two Police and the the only exciteand an fainted had Must Classify Claims. Creditors filing proofs of their asked state whether the consisted an open account, and the have certificates of unpaid drafts protest fees drafts unremitted The has for on cates The claimant asked affidavit that he has assigned the claim to any one knows no set-offs or legal or defense against the then to before notary usually bank receiver's certificates entitling the holder to the first dividend of per cent were yesterday but some may out today estimated night that the speed the first day in proofs of claims not require the days he had first

17. June 18, 1929 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, June 18, 1929

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COURT VACATES SIX CIVIL CASES Civil cases vacated from today's motion docket at federal cluded the suit brought by W. H. Baldridge, receiver the Exchange National bank, Spokane county This case which the receiver upholding pending decision of similar cases now in the process of comAt the request of the attorneys, the case George Harter versus Clarence Pease was day. They were to presented and motions, A similar case, George Harter W. Cormana, was also vacated The federal court will not be required to act upon the risk of Thomas B. Plunkett an identical case, now before the circuit of appeals, Attorney Alan Paine told the court in asking the case be vacated. Other cases vacated were: Joseph Nichols versus Globe & Rutgers Fire Insurance of New York, and the United AnJames Charles McLeod Motion suppress and motion for reduction of bond will be heard Wednesday, in the case.

18. September 19, 1929 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, September 19, 1929

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ALLEGE FLOOD JUGGLED FUNDS Exchange Bank Official Is in Court Today to Answer $3000 Charge. Juggling of the funds of depositor the defunct Exchange National bank was charged to E. Flood, former vice president, in trial suit for $3000 against bank's receiver before Judge Stanley Webster in federal court toJ. Hooper, La Crosse, Wash., sheep man, testified without his consent the former Exchange bank official had transferred $3000 from his in Spokane the First Exchange National bank Coeur d'Alene. The leged unauthorised transfer was September 16, 1926. Flood, called to the stand, admaking the transfer, but permitted to explain objected grounds of improper On direct examination, Flood merely been asked if he made the transfer. Flood admitted that at the time of the he was stock. holder and director in the Coeur d'Alene The suit against the bank and James Drain, brought Grant Copeland, in-law of Hooper, whom the latter assigned the account. Hooper, on direct testified that the time of the transfer of funds, he was not indebted to the Coeur Alene bank, but Injected into minutes later when Attorney Charles Lund, for the receiver, offered in evidence note for $11,000 payable to the d'Alene bank and dated July 'You testified that you didn't owe Coeur bank, Lund questioned. "No, didn't owe them," Hooper answered. Q-Didn't you ever go there and on note? you ever in Coeur d'Alene? but not in any bank there. how about this note signed by you for $11,000 and payto that On Real Estate Deal. A. (With signed that note in blank and gave Mr. Flood to apply on a contract for real Hooper testified that when he found his $3000 had transferred to Coeur d'Alene he went Flood and protested and Flood promised bring the money back to the Spokane He subsequently continued his he but to in the early part of 1927 he and Flood had "rumpus" and off relations. "I didn't want my money Flood that of such transfers myself and that he had no right to send my deposits to Coeur d'Alene without consent. He repeatedly promised to bring back. 'Did he do it," Attorney Fred B. Morrill asked. he not, and I've never gotten it," Hooper The case expected to go to the jury late today.

19. September 19, 1929 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, September 19, 1929

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ALLEGE FLOOD JUGGLED FUNDS Exchange Bank Official Is in Court Today to Answer $3000 Charge. Juggling of the funds of a depositor Na. tional bank charged Flood, former vice president, in the trial of $3000 against bank's receiver before Judge Stanley Webster in federal court to. J. Hooper, La Crosse, without his consent the bank official had transferred $3000 from his account the Spokane to the First Exchange Nationof Coeur d'Alene. alleged transfer was September 16, 1926 called to the stand, admitted making the transfer, but was permitted to explain when plaintiff counsel objected on the grounds of Improper examination. On direct Flood had merely been asked if he made the Flood admitted that at the time the transmetion holder and director in the d'Alene bank. The suit against the bank and James is being brought by Grant Copeland, fatherof to the transfer debted the but mystery the case few minutes later Charles for the offered in evidence note for $11,000 payable to the bank and July testified that didn't owe you the Coeur Lund tioned. didn't owe them," Hooper Q-Didn't you ever go there and on you ever Coeur d'Alene? but not in bank there. how about this note signed for $11,000 and payable to On Real Estate Deal. A. (With signed that note and to Mr. Flood to apply on contract real Hooper testified that when he found his $3000 had transferred to Coeur he Flood protested and Flood promised bring the back the Spokane He quently continued his protests, he in said, but to avail, until in the part of 1927 he and Flood had early "rumpus" and broke off didn't my money told Mr Flood transfers myself and that he had send my deposits to Coeur right d'Alene without consent. He ny peatedly promised to bring It do it," Attorney Fred B. Morrill asked. he not, and I've gotten it," Hooper The case was expected to to the jury late today.

20. December 21, 1929 The Spokesman-Review Spokane, WA
Article from The Spokesman-Review, December 21, 1929

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DEMANDS $10,000 ON BANK STOCK Receiver Sues Mrs. Edith Heitfeldt for Levy on First Exchange National. PIONEER OF 1879 DIES Mrs. Ann Canfield, 84, Among First Com- mittees Are Announced. COEUR D'ALENE. Idaho Dec. 20. Suit was filed this afternoon by James Drain, receiver the Exchange National bank of Spokane, against Edith K. Heitfeldt, for $10.000 alleged due levied against stock the First Exchange tional here, assessed the creditors that Mountain Family Name. Mrs. Ann Canfield, 84, widow of died this the home daughter, Mrs. Mary Ferrell, 205 Foster avenue. She came here husband, Oscar before there was d'Alene, when Fort represented the population the community. Mr. Canfield died in October, 1926 The family settled the foot what known Canfield mountain, miles north of the city. the Rebekah lodge and W. R. She by two daughters, Mrs. and Cooper, both of Coeur two sons, Bert and Joe of Boundup, Mont. three grandchildren, Anita BradMeyers and will Cooper, all of Coeur d'Alene: three greatLee Bradand Coeur Harold Bradbury, also of Coeur The funeral will be held Sunday afternoon. Names Chamber Committees. F. H. Piper, president of the today announced follows: Irving, H. Kenudson, A. Brownell and O. Holte. Better Natwick, B. Lafferty, H. O. Conn and W. Cooper Conventions Floyd Brookhart, Schroeder, Palmerton and R. S. Hawkins, Jim Hill, Roy Danby and Jim S. Cope, Ward Arney, J. Totten and W. Ware, Bill Edlund, Harry Hart and Walter W. Carl Gridley, W. Edmonds F. H. W. Burns, J. K. and Dr. E. PowBoothe, Art Earin, White Fulton. Newport, Jim Thornton, C. A. Mathews Livingstone. Starts on Howard Crawford, convicted of grand taken to yesterday serving year in the penitentiary. Women Pick Leaders. At a joint meeting of the ladies' aid church were elected Mrs. Tendall, president: Mrs. George Ott, vice president: Mrs. Claude Barnes, second vice president; Mrs. George president; secretarytreasurer, and Mrs. Christ Bjorvick, chairman, committee. Wheels Must Use Lights. Sheriff McDonald Kootenal county warned riders to use proper lights after dark or be arrested. Boys Win Rewards. Billy Murphy of the Central prize the toy for originality Norman Post won first place for workmanship. Troop Wins Rally. At the Boy Scout rally evetroop won 22, leading took third place with 16; troop 8, and troop

21. December 25, 1929 The Spokesman-Review Spokane, WA
Article from The Spokesman-Review, December 25, 1929

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3400 IGNORE BANK CHECKS Receiver Drain Surprised by Exchange Depositors' Attitude. It was estimated yesterday by James A. Drain, receiver of the Ex. change National bank, that 4700 checks for the third dividend paid by the have been issued, leaving nearly 8400 checks yet to be called for. Payment of the third dividend of $643,000, making total 90 per cent to date, has been under way since December 13. Receiver Drain is anxious to get the checks into the hands of former depositors and is at loss to explain the delay calling for them. Most of the checks for larger amounts have gone out.

22. January 14, 1930 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, January 14, 1930

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BANK RECEIVER WINS JUDGMENT James Drain receiver the Exchange National bank for against Merlin ordered Superior Judge Lindsley today given by E. Rice and later the Exchange The apartment building is on near notes. secured were made in August 1925.