National Bank of California (Los Angeles, CA)

View Charter #4096 on SPMC View balance sheet

Episode Information

Episode UID
409601122
Episode Type
Run Only
Bank Type
national
Bank ID
40960 national
Charter Number
4096
Start Date
June 20, 1893
Location
Los Angeles, California (34.052, -118.244)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
bc1095d8fd981290

Response Measures

Accommodated withdrawals, Public signal of financial health

Events (3)
1. August 21, 1889 Chartered
Source
historical_nic
2. June 20, 1893 Run
Cause
Local Banks
Cause Details
Runs followed the unexpected temporary closures/suspensions of other Los Angeles banks in mid-June 1893, triggering heavy withdrawals citywide.
Measures
Paid depositors in coin on demand; maintained more than twice the legal reserve; did not call in loans.
Newspaper Excerpt
withstood the shock of a three-days' run, paying in coin every depositor who called for his money
Source
newspapers
3. May 26, 1917 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (8)
1. June 21, 1893 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, June 21, 1893

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Article Text

CALIFORNIA BANK TROUBLES. Two at Los Angeles Compelled to Close Their Doors. Los ANGELES, Cal., June 20.-The University bank and City Savings bank closed their doors this morning. A. D. Childress, president of the City bank, assures depositors that the bank is temporarily closed and that they will be paid in full. The closing of the University bank was a surprise. A notice on the door is to the effect that depositors will be paid in full. No statement was made by either bank. Robert Widney, jr., of the University bank, which closed its doors, says that the securities over balance deposits three to one. A formal statement will be made in a few days. The City bank has ample security and can pay depositors in full. A run has started on the other banks in the city.

2. June 23, 1893 The Wichita Daily Eagle Wichita, KS
Article from The Wichita Daily Eagle, June 23, 1893

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FAILURES. Los ANGELES, Cal., June 22.-The financial atmosphere seemed to be clearing today. The banks have received large consignments of cash from the north, and are prepared to meet all demands. The excitement has subsided considerably, and the runs on the banks were much less violent than yesterday. POMONA, Cal., June 22.-The People's bank has suspended. WASHINGTON, June 22-Extensive shipments of money, telegraphed from New York to San Francisco, were made today by direction of United States Treasurer Morgan. The bank failures of yesterday on the Pacific coast have evidently spurred the banks to increase their supply of ready money to meet any emergency that might arise. NEW York, June 22.-The failure of Henry Segelton & Co., dealers in tea and coffee, is announced. No statement is obtainable. RIDGWAY, Pa., June 22.-The Ridgway bank, a private concern, has suspended. The assets are estimated at $364,000, and the liabilities at $216,000. GREENVILLE, Mich., Jane 22.-The City National bank was closed this morning by order of the bank examiner. CHICAGO, June 22.-Baird & Bradley, the well known real estate firm, have assigned. The assets are placed at $600,000 and the liabilities at $400,000. SANTA ANA, Cal.. June 22.-The First National Bank and the Commercial bank of this place did not open their doors this morning. Both are declared to be solvent and able to pay depositors in time. PHILADELPHIA, June -The board of managers of the Reading railway, at today's meeting, decided to abandon the rehabilitation plan. An official of the company said that a foreclosure of the first mortgage was now inevitable. KEOKUK, Iowa, June 22.-0u application of the United States Trust company of New York, holding a mortgage for $2, 750,000 on the road, the federal court appointed John F. Baruard, ex-president of the Ohio and Mississippi, receiver for the Omaba and St. Louis railway. running from Council Bluffs to St. Louis. The road is 145 miles long, and rans from Pat. terson Mo., to Council Bluffs, Iowa. Its general manager is F. M. Gault of Council Bluff. PERU. Ind., June 22.-J. D. Cole, the millionaire brewer of this city, an equal partner in the firm of Crane & Co., the Cincinnati lumber firm which assigned on Wednesday, says that a disagreement with his partner caused the failure. The liabilities are given as $150,000 and the assets as $400,000. Mr. Cole is the princicreditor. Some Huntington (W. Va.) people are affected, however, the creditors in that vicinity being involved to the aggregate amount of $75,000. NEW YORK, June 22-Suit will be brought against the American Banker of this city for publishing under the heading "Closed and Liquidated Banks" the name of the Bank of Commerce of Chicago. The statement caused a run on the bank, which was in good conditian. It will sue for $100,000 damages. SAN FRANCISCO, June 22.-The Bank of Commerce closed its doors this morning. A statement on the door said that the suspension was only temporary, and that the depositors would be paid in full. NASHVILLE, Tenn., June 22.-The well known grain firm of B. Rhea & Son has gone into liquidation. The debts of the firm are about $110,000, which has been secured by the transfer or property of the firm in amounts satisfactory to the creditors. NEW YORK, June 22.DD McD. White of the Consolidated exchange has announced his inability to meet his contracts. BOSTON, June 22 -The contractors and builders Creesy & Noyes, and Benuing C. Noyes & Co., furniture manufactures, have assigned. They are involved as indorsers on the paper of the Little Kanaw. ha Lumber company, of which Creesy was president, and for which a receiver was recently appointed. No statement was made. GREENVILLE, Mich. June 22.-The City National bank suspended this morning and was taken possession of by the bank examiner, The failure is due to a steady run since the first of the month. Inability to negotiate loans embarassed the bank, The deposits are $210,000 and the assets $312,000.

3. June 23, 1893 The Morning Call San Francisco, CA
Article from The Morning Call, June 23, 1893

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PASADENA IS PREPARED. The Banks Are Solid and the People Sensible. PASADENA, June 22.-The little excitement caused by the suspension of Los Angeles banks was of short duration in this city. A few small deposits were withdrawn, but later in the day many returned the same to the banks. All the banks are fully prepared for any emergency and no uneasiness is felt.

4. June 23, 1893 The Record-Union Sacramento, CA
Article from The Record-Union, June 23, 1893

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CONFIDENCE RESTORED. The Run on the Los Angeles Banks Appears to be Over. THOSE WHO WITHDREW FUNDS REDEPOSITING THEM. Another Concern at San Diego Forced to Temporarily Suspend-The People's Bank at Pomona Closes Its Doors-Heavy Withdrawals Cause Two Banks at Santa Ana to Close for the Present, Though Both are Said to Have Ample Assets.

5. July 27, 1893 The Record-Union Sacramento, CA
Article from The Record-Union, July 27, 1893

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THE BANKS OF SACRAMENTO. Commissioner Knight Declares They Are All Sound. He Also Pays a Very High Compliment to the Careful Methods of Their Managers. State Bank Commissioner W. H. Knight, who has been in the city examining the banks, was seen last night by a RECORD-UNION reporter. He examined the California State Bank on Monday, the Sacramento Bank on Tuesday, the People's Bank yesterday forenoon, and the Farmers' and Mechanics' Bank in the afternoon. He reports most favorably on the local banks, and declares that they will show to the best advantage in comparison with any in the State for soundness and careful management. The savings banks, he said, loan their money very carefully, taking only good loans, and his examination showed interest in almost cases promptly. as a to persons out of debt and who up get that made, kept the paid rule, up The kept who all loans want their was are to payments. In the few cases which were behind in their payments he found the loans were not SO good. Another good feature is, he said, that they have had to take very little real estate by foreclosing on it. "Another thing that surprised me," said he, "was that I found Sacramento County in such good condition financially. I had received the impression that Sacramento was suffering from financial depression and that business was poor, but when I came here I found a different state of affairs entirely. *There are no foreclosures in the county, the banks are doing a safe, conservative business and are excellently managed. The officers know personally all about their business and keepin touch with their customers, SO as to know how they are getting along. "Of course there is some falling off in deposits, but that is the case all over the State, and Sacramento is not exceptional in that respect. No, I do not think it is specially due to withdrawals or use of money to attend the World's Fair, but is more directly traceable to the general stagnation in business. When business is in this condition nothing is ever started. When business is active, there is always plenty of money floating about, waiting for investment or being put into the banks. "Six or eight months ago people were seeking opportunities to put out money on good loans. Why should there be a loss of confidence now Take the case of the Colorado banks. I don't see any cause for a panic or for any great disturbance. The Los Angeles banks have all opened again. They all possessed ample assets at the time of the run which closed their doors. They had two to three dollars to one of liabilities and were perfectly sound. It was the want of conridence that closed their doors temporarily. Banks must loan their money or stop doing business. As I said before, your bankers keep in touch with the borrowers. They give their personal attention to details of loans and values of property. I examined their loans and inquired into their system, and can say that for soundness, careful management and solvency no banks can stand better." Mr. Knight's words speak for themselves to those who are crying "hard times" and "no business," and show the injurious impression of our financial situation that goes abroad through such statements. His opinion of our banks ought to be most gratifying, not only to the officers themselves, but also to our business men who deal with them, and the citizens themselves should appreciate the compliment he indirectly paysther for not promoting a senseless scare as some other places have done, to the great injury of the banks and of themselves.

6. November 24, 1893 The Herald Los Angeles, CA
Article from The Herald, November 24, 1893

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HOPEFUL OUTLOOK IN FINANCES Interviews With the Savings Bank Presidents. Prospects of Resuming the Making of Loans. How the Bankers View the General Business Situation-BriefTalks Upon the Financial Outlook. "It is the general opinion," said a prominent banker yesterday "that are on an of renewed in as well as things throughout financial activity Southern Los taking Angeles, California. air "I have heard it said that some few of the real estate dealers are trying to convey to men bank savings the impression depositors moneyed that they would and find it difficult in December to meet the demands upon them. This has a tendto induce them to make loans at a rate of interest one ency higher which is cause for excessive demands for withdrawals. "The fact that all the saving banks of the city," continued the gentleman, "have given notice that they will meet all demands, notices of which eregiven the run last June, the theory forward by during put those explodea who wish to the real facts. on the of the banks avoid part shows This action that they have been managed in a very conservative way." statement of the banker gave a key which a HERALD and interviewed advantage The of reporter the officials took of institutions. learned that, the accueation men It the was various soon against saving the real whether estate is or there is great contifinancial matters. is was the outlook dence vereal correct in very not, bright. It bankers Indeed, the that uni- the the are more The of now prospects reetoration opinion among confidence than re-assuring is complete. Cashier J. F. Sartori, of the Security Savings bank, of which Duque : president, speaking of the financial condition and the outlook, said. with the other savings banks have that wa to pay "In are common we prepared published the notices November and notices of on the have been two demand. December published Although during withdrawal the notices last there have been have availed of privilege. A days, itors the who number only themselves of two depositors deposhave called and drawn small amounts and cancelled notification for the balance. "It is quite probable that before long the banks will notify other dewho have given to call and on positors uary savings withdraw notice.for the good money for Jan. the demand. The outlook is banks to resume the making of loans soon after the 1st of January. "Money has been much easier during the last month, and the outlook for the future is reassuring." the directors of the Columbian of which is said that there is a Savings One of bank, T. volume D. Stimson continued of and busof "iniress. president, increase "This that in deposits course," be said long he, dicates it will not before these banks will be in a condition to resume the making of loans. The outlook is exceedingly good." Cashier Avery of the German-AmerMcican Savings bank, of which E. N. Donald is president, said: 'The condition of the money market is steadily improving in Los Angeles, as well as in the east. Depositors daily manifesting their confidence by canceling their notices for withdrawal of money and making new deposite instead, very little. money being withdrawn. 'We predict for the near future a normal monetary condition, with a full restoration of business enterprises. The patient and friendly manner in which patrons of the banks have borne the of deserves for them a money, inconvenience waiting all large feel for toward degree their of credit, which we think them." J. H. Braly of the Savings Bank of Southern California said condition and especially country, "The financial within of of Los the the Angeles, whole last has greatly Confidence 18 is offered more Money two improved months. being freely restored. for on easier terms. will usher in loans the new and year much I believe better times. Los bank, Angeles H. W. saving Hellman, president and J. of B. Lanker- the of the street were out but those viewer shim, saving bank, called, president when connected endorsed Main the inter- with the the institutions heartily sentiments of those whose opinions have been given.

7. January 1, 1894 The Herald Los Angeles, CA
Article from The Herald, January 1, 1894

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NATIONAL BANK OF CALIFORNIA. One of the Solid Moneyed Institutions of Los Angeles. Its Conservative Management Deinonstrated During the Flurry. An Executive Committee Which Gives Close Attention to Details. Depositors' Interests Carefully Guarded. While one of the youngest of the banking institutions of the city, yet it is one of the most solid and substantial. Its officers and directors are men of large experience and well known ability and their careful attention to the details of the business and courteay to their patrons has built upa business of which they justly feel proud. Their conservative management was well demonstrated during the last financial furry that visited this and other cities on this coast by the fact that they withstood the shock of a three-days' run, paying in coin every depositor who called for his money, and at the end of the disturbance had on hand more than twice the legal reserve, and that without having called in any of its loans. It has been among the first to grant assistance to other banks, and more than one institution owee its life and present exisence to the timely aid furnished them. Its executive committee gives close attention to the details of its business and examines particularly all paper offered for discount, requiring the best of security in all cases, preferring their fuods should remain idle rather than make any questionable loans. To those requiring the services of an institution of this kind, the Bank of California offers its services, believing that stability, careful attention to the wants of their customers and courteous treatment to all will merit a share of the business of this community. The president, J. M.C. Marble, is accredited with being one of Los Angeles' shrewdest business men. O. H. Churchill is its vice-president, a most careful and active man. W. L. Graves, second vice-president, a former Fresno banker, who has been able to retire from active business, is a selfmade man, and A. Hadley, the cashier, is a gentleman in whom every citizen of Los Angeles places trust and confidence. He came to Los Angeles after 25 years' experience in the National Bank of Lawrence, Kan., having left there to come to Los Angeles on account of his health.

8. January 12, 1894 The Herald Los Angeles, CA
Article from The Herald, January 12, 1894

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National Bank of California. The annual election of the National Bank of California was held yesterday. The board of directoas elected for the ensuing year, are: O. H. Churchill, o. T. Johnson, John Wolfekill, W. L. Graves, E. F. G. Klokke, George Irwin, M. H. Sherman, W. S. De Van, N. W. Stowell, A. Hadley, T. E. Newlin, John M. C. Marble and John E. Marble. The shareholders felt much gratification in the fact that the bank had passed through successfully the year, paying every demand in coin, during an unusual panic season and continuing its dividends to shareholders every month, and commencing the new year with more customers than ever in its history. The public is likely to appreciate such condition, and we can see no reason why this institution should not continue to grow in greater power and usefulness.