3912. First National Bank (Boise, ID)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
1668
Charter Number
1668
Start Date
August 20, 1932
Location
Boise, Idaho (43.614, -116.203)

Metadata

Model
gpt-5-mini
Short Digest
395e9a17

Response Measures

None

Description

The First National Bank of Boise (referred to also as First National Bank of Idaho in some pieces) closed on August 20, 1932 and its chain of affiliate banks suspended operations. It later reopened with RFC assistance and reopened November 1, 1932. Newspaper copy sometimes refers to a chain of ten banks; articles do not describe a depositor run prior to suspension, so this is classified as a suspension (no run) followed by reopening.

Events (5)

1. March 11, 1867 Chartered
Source
historical_nic
2. August 20, 1932 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Failure/collapse of the First National Bank of Boise which led to the closing of its chain of affiliated banks; solvency difficulties prompted suspension; authorities and press describe a collapse and liquidation of a chain of ten banks in Idaho and Oregon following Boise's failure and doors being kept closed on Aug. 20, 1932. RFC assistance was later sought to resolve difficulties.  (Articles: Times-News, American Banker citations, AP reports.)
Newspaper Excerpt
the closing on August 20
Source
newspapers
3. August 31, 1932 Other
Newspaper Excerpt
the closing of the First NationBank of Boise, which the Buhl State is an affiliate, occassioned the closing of the Buhl State Bank but for such time only as necessary Iron out the difficulties of the Boise Bank, so far as could be learned from reliable sources at Buhl. While it is not known just what difficulties the Boise bank had definitely known that those difficulties will have no bearing on the Buhl state bank as the two banks art entirely separate.
Source
newspapers
4. September 3, 1932 Other
Newspaper Excerpt
Hope to Reopen Boise Bank Soon ... federal assistance would be forthcoming to bring about reopening ... Reconstruction Finance Corporation ... ready and willing to co-operate.
Source
newspapers
5. November 1, 1932 Reopening
Newspaper Excerpt
The First National Bank of Idaho opened its doors yesterday along with its string of eight banks in Southern Idaho and Eastern Oregon, making available to depositors $10,000,000 in deposits tied up for two months since the closing on August 20.
Source
newspapers

Newspaper Articles (10)

Article from The Times-News, August 31, 1932

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Article Text

CITIZENS OF DAMAGE VOICE CONFIDENCE Meeting Held in West City; Declare no Cause for Alarm Business men, citizens of Buhl and farmers met at the city hall at Buhl this morning far the purpose of talking over the situation created by the failure the Buhl State Bank to keep its doors open after this morning. The unanimous opinion of the entire body was that there was no occasion for alarm and that business should proceed as usual. While nothing definite could be learned from the officials of the Buhl State Bank it is generally understood by people in the know that there was no reason whatever for closing the bank. The closing of the First NationBank of Boise, which the Buhl State is an affiliate, only in that directors of the two banks are the same, occassioned the closing of the Buhl State Bank but for such time only as necessary Iron out the difficulties of the Boise Bank, so far as could be learned from reliable sources at Buhl. While it is not known just what difficulties the Boise bank had definitely known that those difficulties will have no bearing on the Buhl state bank as the two banks art entirely separate. It is the general opinion of leading men and farmers in and about Buhl that there has been no bank failure and it will question of but short time before will have been ironed out. In the meantime the remaining bank. the Farmers National, is prepared to take care of the local needs in every way, both of their own customers and those who have their funds temporarily tied up in the Buhl State. Buhl has prided itself in the stability of its two banks and there has been no reason to date to change that attitude. Both Mr Barker of the Buhl State and Mr. Hamilton of the Farmer's National bank have been frequently criticised for their failure to make many loans but their attitude has been thoroughly vindicated and much credit is being given to these individuals for safeguarding the depositors' money. Weather Forecasts Promise Rising Temperatures in Local District minimum temperature Tuesday night which in some places dropped freezing and was accompanied by frost, little damage to field crops was caused throughout this survey Wednesday morning revealed. In exposed spots gardens were nipped. some eusumber and melon vines were turned brown. some slight damage to bean foliage noted. few seattered fields, particularly around Eden and Hazelton, were hard hit, and was reported bean yields would be reduced in some In the Burley section it was reported that the frost was slight, with very little damage. The county agent's office at Jerome had no reports of frostdamaged field crops, while at Rupent was reported to be confined to garden vines. Reports from various points in Twin Falls county indicated bean foliage frosted somewhat in some sections. tbut not severely enough to reduce the yield. Tomato and garden plants were hit in some sections. however. An end to the unseasonable low which have threatened crops of South Central Idaho during the past three days was prophesied by the official weather report Wednesday, with rising forecast for Wednesday night and Thursday Official report from the bureau of entomology recorded Tuesday night's minimum temperature here 32.5 degrees.


Article from Springfield Evening Union, September 3, 1932

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Article Text

OFF THE WIRE Latest Business and Financial News from Market Centers Bank suspensions ebbed to the low of the year in the early part of the week just passed, only to shoot upward when chain of 10 banks in Idaho and Oregon collapsed with the failure of the First National Bank of Boise, according to the American Banker Only seven other banks were placed in liquidation, but the 10 chain raised the total for the week to 17 as compared with 15 for the week before Suspensions for the year now have reached 1068. with deposit liabilitles now in liquidation of approximately Estimates are that depositors will receive at least $450 as these institutions are liquidated in price levels having improved the returns to receivers. Bank suspensions in August totaled 83 as compared with 134 in July and 149 in June Seven banks reopened during the week. Unfevorable dividend changes in August numbering showed sharp decrease from the 286 recorded in July and 476 in June, according the Standard Statistics Company of New York The August total is the smalles since November, 1931, but is still above the August, 1931, figure August traditionally small month for dividend declarations and to make certain that the unfavorable trend has been one must wait for the totals of September and October. Wall Street had a semiholiday at. today because of the closing of several of the commodity ex. changes The Cotton Exchange and all security markets were open, but there was noticeably smaller atten ance of brokers, many away to enjoy an extended Labor Dat holiday This week's sharp advance in tations for steel is believed many in Wall Street to foreshad the -awaited upturn in the industry trade and financial ters is expected that orders for products will begin to flow to the in increasing volume early this mont


Article from Brooklyn Eagle, September 3, 1932

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Article Text

Chain Bank Crash Adds to Failures Bank suspensions ebbed to the lowest rate of the year in the early part of the week just passed, only to shoot upward when a chain of ten banks in Idaho and Oregon collapsed with the failure of the First National Bank of Boise, according to the American Banker. Only seven other banks were placed in liquidation, but the ten chain banks the total for the week to 17. as compared with 15 for the week before. Suspensions for the year now have reached 1,068 with deposit liabilities in liquidation of approximately $550,000 Estimates are that depositors will receive at least $450,000,000 as these institu tions are liquidated. recent gains in price levels having improved the to Bank suspensions in August totaled 83 as compared with 134 in July and 149 in June. Seven banks reopened during the week.


Article from Brooklyn Eagle, September 3, 1932

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Article Text

Chain Bank Crash Adds to Failures Bank suspensions ebbed to the lowest rate of the year in the early part of the week just passed. only to shoot upward when a chain of ten banks in Idaho and Oregon collapsed with the failure of the First National Bank of Boise, according to the American Banker Only seven other banks were placed in liquidation, but the ten chain banks raised the total for the week to 17, as compared with 15 for the week before. Suspensions for the year now have reached 1,068, with deposit liabilities now in liquidation of approximately $550,000,000. Estimates are that depositors will receive at least $450,000,000 as these institutions are liquidated, recent gains in price levels having improved the returns to receivers Bank suspensions... in August totaled 83 as compared with 134 in July and 149 in June. Seven banks reopened during the week.


Article from The Observer, September 3, 1932

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Article Text

Hope to Reopen Boise Bank Soon BOISE, Idaho, Sept. (AP) Enfor possible early opening of the First National bank of Idaho and its nine which closed Wednesday given here by Senator William E. Borah and Governor Ben Senator Borah said he had received "very encouraging' word from the construction corporation in Washington that federal assistance would be forthcoming to bring about reopening the Assurance received by Gov. Ross from Atlee Pomerene, chairman of reconstruction finance board of directors, that the corporation was "ready and willing to co-operate."


Article from The Washington Herald, September 4, 1932

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Article Text

NEW YORK, Sept. suspensions ebbed to the lowest rate of the year in the early part of the week just passed, only to shoot upward when chain of 10 banks in Idaho and Oregon collapsed with the failure of the First National Bank of Boise, to the American Banker Only seven other banks were placed in liquidation. but the 10 chain banks raised the total the week to as compared with 15 for the week before. Suspensions for the year now have reached 1,068, deposit liabilities now in liquidation of approximately Bank suspensions August totaled compared with 134 in July and 149 in June. Seven banks reopened during the week. FOREIGN EXCHANGE


Article from The Daily Worker, September 6, 1932

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Article Text

83 BANKS SUSPEND IN AUG.; STEEL AT LOWEST POINT; JOBLESS RISE IN JULY 4 P.C. Capitalist Parties Trying to Fool Masses Into Accepting Wage Cuts; Justify R.F.C. Handouts Only Fighting United Front of Workers Can Defend Living Standards This past week brought further evidence disproving the lying propaganda of President Hoover, spokesman for the big capitalist interests who is leading the propaganda drive to fool the workers into believing that the turn in the crisis has been made. The big capitalist journals show that the crisis continues to deepen, production is falling, bank failures continue to rise and unemploym adds new victims to the huge mass of jobless. The facts cited below are taken word for word from the capitalist journals which reveal the growing despair in the ranks of the capitalists and disprove the lies that the stock exchange rise is based upon any fundamental changes in the business situation. From these facts the conclusion is obvious that Hoover and the democrats represented at the business conference in Washington have released this flood of publicity in order to stall off the masses from taking action to defend themselves from the unbearable burden of misery and povrty, and SO justify the steals by the bankers and big interests through the Reconstruction Finance Corporation. This propaganda is intended to create illusions among the workers that if they will accept wage cuts, they will be lending a hand to the efforts made by the capitalists and will obtain jobs through increased employment. This week's additional facts once again emphasize that the way to get out of the increasing misery is by the formation from the ranks of the workers of committees of united struggle against wage cuts, for unemployment relief and insurance and for the daily needs of the masses. Steel Continues To Decline (Wall Street Journal, September 3d) "Steel operations dipped further during the past week and a number of companies closed their plants Friday night, planning to reopen Tuesday This is a reflection of the small number of orders. "Sentiment through the trade continues about as in the past month based on hopes that there will be an increase in buying in the not distant future. However, the best authorities do not share the optimism which has been heard in outside circles regarding the volume of business to come, due to the fact that there is no sign as yet of any material increase in demand from the railroads, the automobile industry or for construction. "Many companies report that last month was the poorest for new business since the depression started." Bank Suspensions Rise During Week (Journal of Commerce, Septmber 3d) "During the current week 17 banks were placed in liquidation, including chain of ten in Idaho and Oregon which collapsed with the failure of the First Nation al Bank of Boise, according to the American Banker. In the preceding week there were 15 suspensions. "Suspensions for the year have reached 1,068 with deposit liabilitles now in liquidation of approximately $550,000,000. Estimates are that depositors will receive at least $450,000,0 as these institutions are liquidated, recent gains in price levels having improved the returns to receivers. Jobless Increase: Payrolls Decrease (Bureau of Labor Statistics, U .S. Dept. of Labor, July, 1932) "Employment in manufacturing industries decreased 4.0 per cent in July as compaired with June, and payrolls decreased 7.9 per cent. Again About Steel (The Annalist, September 2, 1932) "The steel industry is even more depressed than a week age, the rate of operations as quoted by The Iron Aage being estimated at 13 per cent of capacity, a drop of per cent from last week. The Iron Age says that apart from a few minor gains, the industry shows little or no indication that the expected September upturn will attain more than small proportions. Structural steel requirments may be substancially if and when "self-liquidating" construction is undertaken with the help of R. F. C. loans, but the prospects of that are more than some enthusiasts would like to have the public believe. The Iron Age remarks of the lists submitted to the R. by the American Institute of Steel Construction covering "self-liquidating" projects estimated to cost billion and a quarter, that much of the proposed work will not require steel in any quantity for some months after loans are approved" U.S. Deficit Grows (New York American, September 3d) "Based on August income from miscellaneous taxes, the Treasury receipts from this class alone for the year will be between $20,000,000 and $30,000,000 short. These taxes include levies on telephone and telegraph communication, checks, admissions, oil pipe lines and boats."


Article from The Daily Worker, September 8, 1932

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SEPTEMBER OPENS WITH ANEW WAVE OF BANK FAILURES 10 Idaho Banks Close On Sept. 1; Tie Up Workers' Savings Right in the face of Hoover's brazen lie about the financial crisis being over and economic recovery being at present under way, bank failures continue to increase robbing thousands of workers of their hard-earned savings. While in August, bank failures amounted to 83, September opened with the suspension of ten banks as the First National Bank of Idaho collapsed on the first day of the month. This suspension tied up all the workers' savings amounting to millions. The exact number of workers affected by the failure of the First National Bank of Idaho is not known, but it is estimated that it is very large. A Boise capitalist paner printed an editorial entitled "S dy, Boise!' stating that the failure of the First National Bank in Boise delivers a crushing blow to the entire financial structure of Idaho. The editorial, however, cynically calls upon the workers to forget about their hardearned savings. "Human hearts were as kind and firesides were as bright when there ... was no such thing as the dollar Let us not lose sight of the truly valuable things of life because our dollars are tried up or even if we have lost some of them." Senator Walcott admitted that "the cause of the bank failures has been the practical foreing of small correspondent banks by large city banks to subscribe to securities which had been advanced to dizzy heights by pool operations." And yet some sections of the capitalist class spread the lie that Red "whispering" acmpaigns are responsible for the bank crashes.


Article from Evening Star, November 1, 1932

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IDAHO BANK IS REOPENED $10,000,000 Tied Up Two Months Is Made Available to Depositors. BOISE, Idaho, November 1 (AP).-The First National Bank of Idaho opened its doors yesterday along with its string of eight banks in Southern Idaho and Eastern Oregon, making available to depositors $10,000,000 in deposits tied up for two months since the closing on August 20. The money may be withdrawn only partially at present under waiver agreements signed by a large proportion of the depositors. Bank officials predicted withdrawals would be limited primarily to current needs. At a stockholders' meeting Saturday afternoon, the bank was described in very liquid condition, due to funds secured from the Reconstruction Finance Corporation.


Article from The Idaho Statesman, March 6, 1933

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All Idaho of Banks Closed The proclamation of President Roosevelt automatically closed the doors of every banking institution in Idaho. The news was received in Boise first by The Statesman about o'clock. Earlier in the day the twelfth district federal reserve bank sued an order calling holiday Monday for all members of the federal system in Idaho and other western states. The First National Bank of Idaho in Boise and the eight banks formerly with to observe the holiday, according an official were all other member banks in the state.