3929. First Exchange National Bank (Coeur d'Alene, ID)

View Charter #7120 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
7120
Charter Number
7120
Start Date
January 18, 1929
Location
Coeur d'Alene, Idaho (47.678, -116.780)

Metadata

Model
gpt-5-mini
Short Digest
255f3989

Response Measures

Full suspension, Books examined

Other: Assets later liquidated by receiver; assets purchased by new First National bank.

Description

The board closed the First Exchange National on Jan 18, 1929 after steady withdrawals and rumors triggered crowding at the doors; the bank's affairs were turned over to the comptroller/examiner and a receiver (liquidation followed). A new First National later purchased assets (Feb–Mar 1929) but the original institution remained in liquidation—consistent with a run that precipitated suspension and permanent closure/receivership.

Events (5)
1. January 18, 1929 Run
Cause
Local Banks
Cause Details
Withdrawals and loss of confidence were prompted by publicity about the Harris defalcation and the Herrick failure and related rumors about banks in the region, producing steady withdrawals and crowding at the doors.
Measures
Board closed the bank, posted notice 'Bank closed by order of the board of directors,' notified the comptroller; turned affairs over to national bank examiner/receiver.
Newspaper Excerpt
Gradual withdrawal of deposits prompted the directors to close the bank...as soon as the closing spread about the large number of persons gathered at the bank's doors
Source
newspapers
2. January 18, 1929 Suspension
Cause
Local Banks
Cause Details
Directors suspended business to preserve assets after gradual withdrawals and rumors stemming from other bank failures and regional publicity; subsequently turned affairs to the comptroller/examiner and moved toward liquidation.
Newspaper Excerpt
Board of directors of the First Exchange National of Coeur d'Alene decided today to close the institution... W. H. Baldridge, National Bank Examiner in Charge.
Source
newspapers
3. February 23, 1929 Other
Newspaper Excerpt
deal to the purchase by the Old National ... of the assets of the Exchange National Bank of Spokane... Included in the First Exchange assets the real estate, contents of the quarters ... utilized once the First National open for business ... charter should be within the next 10 days . . . intention ... retain Harry Wolf and Hess, been active in the affairs of the former bank and the organization of the new bank. (asset purchase/organization of successor bank)
Source
newspapers
4. March 6, 1929 Reopening
Newspaper Excerpt
The new First National Bank in Coeur 'Alene opened its doors for business at 10 o'clock this morning. The new organization which takes the place of the closed First Exchange National, now in the process of paying out to its depositors, is connected in the control of the stock with the Old National bank ... Included in the purchase of assets of the First Exchange National ... receiver Eckerson to declare a 75 percent distribution to depositors.
Source
newspapers
5. May 1, 1930 Other
Newspaper Excerpt
Suit filed in United States district court ... against the First Exchange National bank of Coeur d'Alene and J. L. Eckerson, the bank's receiver ... (receiver litigation while in liquidation).
Source
newspapers

Newspaper Articles (13)
1. January 18, 1929 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, January 18, 1929

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Article Text

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

2. 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

3. 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

4. February 23, 1929 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, February 23, 1929

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LAKE CITY BANK (Continued ment made today in Coeur and The deal to the purchase by the Old National per the assets of the Exchange National Bank of Spokane. Get Quarters. Included in the First Exchange assets the real estate, conof the quarters, the vaults and furniture fixtures, utilized once the of First National open for soon the charter can Issued by the the which should be within the next 10 days. capital of the new bank will be $100,000 and the surplus $25,000. all paid in by the in cash. of the purchase certain the receiver, the new bank for with deposits of approximateWhile claims positors of the former bank in cash desired, upon proper tificates issued by the expected many will become depositors of the new bank, using the cent dividend the basis for their new account. Witherspoon Says. "When the Old National bank interests were by comptroller's office to lend assistance for an early release portion of deposits of the First Exchange National bank of Coeur and the thereto national bank in that community, they accepted without hesltation," said counsel for the Old National and president the Union Securities company. Through the connection of the Old National Coeur d'Alene, its people and their needs recognize an opportunity for real service to this thriving and progressive "Arrangements will be be made as soon the the charter to board directors, who will represent the best of the city of Coeur d'Alene, and announcement will be made later of the ecutive staff the new bank It the intention the organizers retain the Harry Wolf and Hess, been active the affairs the former bank and the organization of the new bank."

5. March 6, 1929 The Coeur d'Alene Press Coeur d'Alene, ID
Article from The Coeur d'Alene Press, March 6, 1929

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Will Purchase Assets of Exchange National New Bank Has $100,000 Capitalization; H. O. Conn Of St. Johns, Wash., To Be Mgr. The new First National Bank In Coeur 'Alene opened its doors for business at 10 o'clock this morning. The opening followed receipt of notice from the comptroller of the currency in Washington, D. C., that the national charter had been issued. The notification was received late yesterday evening and required that the bank open its doors immediately. The new organization which takes the place of the closed First Exchange National, now in the process of paying out to its depasitors, is connected in the control of the stock with the Old National bank and the Union Securities Co. interests in Spokane. Included in' the stockholders are Many Coeur d'Alene business men. $100,000 Capitization The First National starts off with capitalization of $100,000 and surplus of $20,000 paid in in cash One of the first functions will be the purchase of large block of assets of the First Exchange National. which purchases will allow L Eckerson receiver of the former bank to declare a 75 percent distribution to Orders issued by the receiver to depositors will be honored by the First NaThese orders will be tional soon as details of by Eckerson as the transaction can be completed. probably within week or ten days Due notice be given through the Press by Eckerson. A. W. Witherspoon, president of the First tothat Conn, for 12 years day Farmers State bank cashier the at St. Johns. Washington, will be vice president and manager of the new institution Other officers are H. Potts. vice Harry Wolf, vice president. and C. F. Hess, eashier Directors are Witherspoon. Petts, D. Winton George Nat wick and O. W. Edmonds. Has Wide Experience Conn. the new manager, has had wide in the small city banking game Beside his 12 years at the St. Johns bank. which had totalling more than half million dollars. was with the Farmers National bank at Colfax for three years. After the new bank gets under he to return to Johns way plans for short time to close up his business affairs there and will then move here with his family First National welcomes the busines of the people of Coeur Alene and Kootenal county, he said this morning "We will give special attention to the accounts of former depositors of the First Exchange National The First National expects to be of the utmost service to its customers and hopes it will the esteem and confidence of the entire With the opening of the new bank Receiver Eckerson has moved his offices to the directors room in the Anyone wishing file claims take up business with the receiver can enter the main lobby the bank and walk around to the directors seperate telephone line has been installed. the number being 48.

6. June 21, 1929 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, June 21, 1929

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BANK RECEIVER SUES ON NOTES COEUR ALENE. June 21. for the First Exchange National court here yesterday afternoon against the Great Western Land and Improvement company to FOR cover on two promissory one for $8000 for $1776, issued May 28, 1928. He asks per cent from the date of issue and $500 attorney's fees and costs. Tournament Starts. The American legion horseshoe elimination to select enter the Chronicle tournament in Spokane started last night with 14 contestants participating Contestants will play several evenings each cup will presented the winner of the local tournament.

7. June 21, 1929 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, June 21, 1929

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BANK RECEIVER SUES ON NOTES COEUR D'ALENE, June 21. for the First Exchange National bank here, filed suit in district court here yesterday afternoon against the Great Western Land and Improvement company to recover on two promissory notes, one for $8000 and the other for $1776, issued May 28, 1928. He asks per cent from the date of issue and $500 attorney's fees and costs. Tournament Starts. The American legion horseshos elimination tournament to select enter the Chronicle tournament in Spokane started night with Concontestants participating testants will play several evenings each eup will be present ed the winner of the local tournament.

8. June 21, 1929 The Spokesman-Review Spokane, WA
Article from The Spokesman-Review, June 21, 1929

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BANK RECEIVER FILES SUIT Eckerson Hales Two Firms Into Logger Dies. COEUR D'ALENE, Idaho, 20.-J. Eckerson, of the First Exchange National bank, day filed suit against the Great Western Land and company and Hills, Inc., and of 246 shares of stock of the Red Collar and 10 shares of Honeysuckle Hills, stock. Albert McCluskey, injured in logging Tuesday died the hospital last Verna Hessner appointed guardian of the estate of Ernest Hessner. Joe Billadeau filed suit in discourt $165 alleged to be due on a promissory

9. October 4, 1929 The Spokesman-Review Spokane, WA
Article from The Spokesman-Review, October 4, 1929

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BANK RECEIVER GETS JUDGMENT Great Western Land and Improvement to Sell Stock to Raise $10,450. RITES FOR DR. DRENNAN Masonic Blue Lodge in Charge -Hog Cholera Blamed on Infected Meat. COEUR D'ALENE, Idaho, Oct. L. Eckerson, receiver for the First Exchange National bank of Coeur l'Alene, in liquidation, was granted judgment against the Great Western Land and Impr vement company for $10,450. Property pledged to secure the indebtedness, including 246 shares of common stock of the Red Collar Steamboat company and 10 shares of stock of dered sold to satisfy the judgment. Orders Animal Killed. Dr. E. T. Powell, deputy state veterinarian, diagnosed the epidemic in the A. Troyer herd of Chester White hogs at Hayden lake as cholera, and one of the sick animals killed and gave the remaining sick one serum treatment. He states that the disease He looks for no further spread of the disease, as other droves have been affected. Dr. Drennan Burled. The funeral of Dr. D. D. Drennan, who died Tuesday, was held today from the Masonic temple, in charge the Blue lodge The Rev Ernest F. Harold preached the sermon. Land Bank Victorious. The Federal Land bank of Spokane judgment against Horace and Hattle Cooke for $1263 Sale of land securing the indebtedness was ordered. An order of dismissal was entered the case of Wiggett versus W. K. Tucker without liability on the attachment issued in district court. Claim Negro Is Bottle Man. Robert Lewis, 45, colored, was arrested Thursday by Detectives Alkman and Akers at Trent and Bernard on liquor in possession charge after he found carrying bottle of moonshine The the negro "bottle man" for soft drink bar

10. October 4, 1929 The Spokesman-Review Spokane, WA
Article from The Spokesman-Review, October 4, 1929

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BANK RECEIVER GETS JUDGMENT Great Western Land and Improvement to Sell Stock to Raise $10,450. RITES FOR DR. DRENNAN Masonic Blue Lodge in Charge -Hog Cholera Blamed on Infected Meat. COEUR D'ALENE, Idaho, Oct. Eckerson, receiver for the First Exchange National bank of Coeur d'Alene, in liquidation, was granted judgment against the Great Western Land and rovement company for $10.450. Property pledged to secure the indebtedness, including 246 shares of common stock of the Red Collar Steamboat company and 10 shares of stock of Honeysuckle Hills Inc., were ordered sold to satisfy the judgment. Orders Animal Killed. Dr. E. Powell, deputy state veterinarian, diagnosed the epidemic the Troyer herd of Chester White hogs at Hayden lake as cholera, and today ordered one of the sick animals killed and gave the remaining sick one serum treatment. He states that the disease came from infected meat. He looks for no further spread of the disease, as other droves have been affected. Dr. Drennan Buried. The funeral of Dr. D. D. Drennan, who died Tuesday, was held today from the Masonic temple, in charge of the Blue lodge. The Rev. Ernest F. Harold preached the sermon. Land Bank Victorious. The Federal Land bank of Spokane was granted judgment against Horace and Hattie Cooke for $1263. Sale of land securing the indebtedness was ordered.

11. May 1, 1930 The Idaho Statesman Boise, ID
Article from The Idaho Statesman, May 1, 1930

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SUIT FILED TO RECOVER $5069 FROM IDAHO BANK R. J. Hooper filed suit in United States district court Wednesday against the First Exchange National bank of Coeur d'Alene and J. L. Eckerson, the bank's receiver, to recover $5069.30 and obtain the cancellation of a promissory note. Hooper declares that he has filed his claim with the receiver, but alleges that it has neither been allowed nor rejected. The note which Hooper avers was made out to the bank was in connection with an agreement for the purchase of an undivided half interest in certain lands, and was negotiated in 1925 with E. E. Flood, then president of the bank. The contract of purchase, however, was never delivered, the complaint alleges, although payments were made on the note, together with interest and taxes. The plaintiff alleges that the money sought to be recovered represents the amount of payments. The note was for $10,000.

12. May 27, 1933 The Spokesman-Review Spokane, WA
Article from The Spokesman-Review, May 27, 1933

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HERRICK CASE IS REFLECTED Suit Against Bank Receiver Argued on Trials Heard. federal this the case of Meikle James Drain. for the First Exchange National Bank of Coeur was on It was that the Fred Herrick Oregon had sold its ing the Lumber and that the funds received from the sale were wrongfully applied on $10,000 due the when was the of the Herrick Lumber to and that the money should have been set for other creditors of Herrick The W. Lang case went to the jury today and late this evening the jury was still out Lang accused of liquor law violations at The liquor case against J. Brown Benewah was given the jury, sealed verto be tomorrow The liquor against Sam Sienchetti, Wesley Straugh and Antonio Cons, all of Kellogg, was begun.

13. May 27, 1933 The Spokesman-Review Spokane, WA
Article from The Spokesman-Review, May 27, 1933

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HERRICK CASE IS REFLECTED Suit Against Bank Receiver Argued on Trials Heard. COEUR D'ALENE, Idaho, May federal this the case Meikle the First Exchange National was argued on demurrer. was that the Fred Herrick had sold its holding the and that the funds received from the sale were applied on the was the the Herrick Lumber company and that the money should have been set aside Herrick. The the jury before today late evening the was accused of liquor law violations Sandpoint. The liquor case against Brown was given the jury, which tonight returned sealed tomorrow. The liquor against Sam Sienchetti, Wesley Straugh and Antonio Cons, all of Kellogg, begun.