First National Bank (Reno, NV)

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ONLY ONE OPEN IN RENO: $3,000,000 RUSHED TO TOWN

Stunned by their inability to obtain money and the sudden realization they cannot live very well without it. hundreds of Reno residents strolled about the downtown streets today wishing they had deposited their funds in the one- Reno bank that was not closed A "banking holiday. proclaimed by Lieutenant Governor Morley Griswold in the absence of Governor Fred Balzar, resulted in at least twelve state banking institutions, including two of Reno's three banks, closing for a two weeks' period

1,000 Gather at Doors. The one bank to remain open was the First National A crowd of 1,000 persons waited patiently while Richard Kirman, president, unlocked the doors at 10 m "Bargain day, folks, he said. Come and get There was no disorderly conduct and no attempt was made to discourage the withdrawals. The First National, it was learned, had $3,000,000 in currency on hand. The huge sum had been shipped there from San Francisco during the night There was no hysteria on the streets but people gathered in small groups in streets throughout the city and, discussed ways and means of acquiring necessities, such as food and fuel. Livestock Responsible. All twelve of the banks controlled by George Wingfield, the state's lead ing capitalist, were closed. deposits totaling more than $17,000,000 That left only thirteen banks in the state that might now take advanage of the proclamation. Collapse of livestock prices was blamed for the unprecedented proclamation. The sharp decline in agricultural prices three years ago. and their failure to recover, left bankers with most of their funds tied up in lcans to livestock men of the state.

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Proclamation Forces 12 Banks to Close For Two Week Period Today

Mild Run Reno's Sole on Bank Soon Put to Rout by inability obtain money and the sudden realization they cannot live without it, hundreds of Reno residents strolled about the streets today wishing they had deposited funds in the one Reno bank that was not closed. A banking holiday. proclaimed by Lieutenant Governor Moreley Griswold in the absence of Governor Fred Balzar. rseulted in at least 12 state institutions including two of Reno's three banks closing for a two weeks period. Griswold's proclamation provided two weeks moratorium on all debts with the exception of taxes. Collapse of livestock prices was blamed the blamed for the banking holiday. The sharp decline in agricultureal prices three years and their failure to recover. left bankers with most of their funds tied up in loans to livestocks men. Nevada vast grazing area devoted to. livestock and sheep The one bank to remain open here the First National. crowd of thousand waited while Richard Carmin, president smilingly walked up to the doors and swung open them at (Continued On Page Four)

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FIRST NATIONAL BANK IN RENO OPENED AS USUAL

Large Crowd on Hand as Doors Open; Many Other Nevada Banks Not Closed

Contemplating a possible small run on the bank, the directors of the First National Bank in Reno last night made preparations to take care of a rush of customers this morning, and when the doors were opened there was a large and orderly crowd present.

Many of those in the crowd, however, were present to make deposits in the bank, and early this afternoon the officials of the institution stated that a preliminary check indicated that approximately as much money was deposited today as was withdrawn.

Richard Kirman, president, and Walter J. Harris, manager of the bank, announced last night following a directors' meeting, that the bank would not participate in the bank holiday ordered by the proclamation of the lieutenant governor, but would remain open as usual.

Notices were posted in the bank this morning advising savings depositors that hereafter notice of withdrawals would be required and for the present ten per cent of savings deposits would be paid and the balance in nine equal monthly installments. No restrictions were placed on the withdrawal of funds in checking accounts.

The crowd at times jammed the lobby to capacity, but there was no disturbance of any kind and by one o'clock the crowd had dwindled to a score or more.

In addition to the First National Bank in Reno, several other Nevada bankers opened for business as usual today. These include the banks of the Ely district, the banks in Las Vegas, the Bank of Pioche, the First National Bank at Lovelock.

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Speedy Help For Nevada Banks Seen

Examiners Rush To Reno By Plane After Aid Is Asked By Governor Balzar

Executive Is Certain Government Succor Will Save Situation In Stricken State the First National Bank, which started yesterday when Reno's other banks closed for weks' period, ended today depositors began opening new accounts. the unrest which marked of the banking had settled today and business had returned normal people were on the streets. Many persons who withdrew money from the First National terday made deposits today.

Governor Fred Nevada prepared leave for Reno this ternoon, confident that the struction Finance will grant the loan he the state's banks "back Most of the Nevada banks are closed under moratorium Balzar the loan made before the expires," holiday will open again," Balzar said. Corporation sent examiners Reno Balzar arrive Saturday to confer with them. He the examiners would remain Reno until the loan is acted on officials here. Balzar second conference today with heads the ReconstrucCorporation. He declined discuss details the meeting, but ready to talk the difficulties that depression has brought Nevada. use denying that we're in bad Balzar his western drawl. raise lot sheep, don't think anybody there now. Silver mines all even the legalized gambling business suffering.'

Nov. (U.P.) Relief loans Georgia, Missouri and Nevada totalling $145,748 were made today by the ReCorporation. Of the amount Missouri, $20,014, and Nevada, $4167. The Nevada loan for use in Nye between Nov. and Dec. The county is in the precious mining section employment has fallen within years 1500 relief sources have been exhausted. The state has already obtained $50,800 for relief needs.

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(Continued from Page bank in the city to remain open. stacked up $3,000,000 in cash. "Come get invited President Richard Kirnan. "Come again he urged closing time. Others, whose quiet withdrawals in recent weeks was in part responsible for the "moratorium," also found themselves with cash in their pockets or hidden in their sugarbowls. The gambling halls had their thousands of dollars kept pay off winning streaks. $17,000,000 Locked There was at least $17,000,000 locked up in the closed banks. But there was $3,000,000 more in the First National, and thousands on thousands in pockets of citizens. All the cash, so suddenly released from strongholds, began to rush into circulation.

Police Chief Kirkley feared footpads, armed with lengths of rubber hose filled would join the "holiday." He urged citizens to leave their cash in the station safe. Thousands of dollars "on deposit" there today. One "holiday victim." was Delbert Hammond. recently sold his nice little cozy

Today he still had the $7,000. but was locked up in the Reno National. one of the "holiday and Hammond eating his meals on credit.

"It's philosophized Hammond. "Twenty years ago when Tonopah gambler belonged the Elks club. There millionaires in the club Anent Wingfield "George Wingfield the only who still has his George's 12 banks are closed." Ed Voelitti, finishing course international law at the University Ed's over visiting him. Voelitti's partner, for Ed the other Ed's on the Closing of the banks leftfor and order when some $15,000 in election bets cancelled. Betting only form of bling against the law in Unable due to their funds being on "holiday", the wagerers called off their agreements. Due to the tremendous amount of cash in circulation, Reno residents probably will pull through the period moratorium without sufferfor lack of money.

MILD RUN ON BANK DEPOSITS BEGIN Nov. mild on the First National Bank. which started yesterday when Reno's other two banks closed for two weeks' period, ended today and depositors began opennew accounts. Most of the unrest which markannouncement of the banking holiday had settled and business returned to normal basis Fewpeople on the streets. who withdrew Many persons from the First National money yesterday made deposits today.

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BUSINESS, BANKS

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The holiday was proclaimed Acting Governor Morley Griswold after conference bankers largely because the inability livestock meet their obligations. Cattlemen have been hit prices and drought for three years. One of Reno's four banks, two Las Vegas the Hoover Dam and two Ely in the copper mining center ignored the holiday threatened run on the first National Bank of Reno was dissipated when announced $1,500,000 gold and currency had been received from San Francisco and the institution was prepared all demands. Of the 26 banks in the state, the chain. The chain has deposits in excess of $15,000,000.

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BANK

RENO, Nev., Nov. (U.P.)-A mild on First National bank, which started yesterday when Reno's other two banks closed for weeks' period. ended today and depositors began opening new accounts. Most of the unrest which marked the banking holihad settled today and business returned normal basis. Fewer people on the streets. Many persons who money from the First National yesterday made deposits today.

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Nevada Banks Close for 12-Day Holiday

RENO. Nev., Nov. 1-(A. Reorganization of the 12 banking controlled by the George was under way banks throughout Nevada took advantage twelve-day holiday proclaimed by executive In Washington, after flight there by airplane, Gov. Fred Balzar sought loan of $2,000,000 from the Reconstruction Finance Corp., while officials here worked to prothe of legal business ordered last night by acting Gov. Morley after an tended conference with state and banking executives. The First National Bank of Reno, Wingfield institution, was the only local institution open. of livestock men, hard hit by the and drought the last three years, to meet their was in large part for the decision to declare the holiday

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RUN ON BANK QUICKLY ENDS Many Start New Accounts in First National CHECK HOLDERS TO KEEP THEM

The so-called "run" on the First National Bank in Reno when its doors were opened Tuesday morning vanished completely yesterday.

Only five persons asked to withdraw their money when the bank opened for business yesterday and withdrawals were declared to be "practically normal" during the day. Officials had anticipated the run would last for several days before it petered out as it did yesterday.

The busiest desk in the bank was the "new accounts" department, where a steady business was in progress all day. While checking accounts were opened by Reno business people who required some method of exchange, scores of new savings accounts were started.

Deposits in the First National Bank were far greater than the declares a moratorium on all debts in Nevada.

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savings accounts were started.

Deposits in the First National Bank were far greater than the total withdrawals.

A Journal reporter standing in the lobby of the bank for half an hour noted but three withdrawals as compared with scores of deposits.

"I heard Mr. Kirman, the bank president, saying a few minutes ago that he was almost disappointed that the run didn't continue for a week so he could show the people what the bank really could do," said one bank employe.

Holders of checks on banks that are taking advantage of the "breathing spell" cannot compel the endorsers to redeem them, according to legal authorities here.

The checks are valid so long as payment has not been rejected by the bank and they cannot be rejected because the banks are not open for business.

Therefore, the checks really amount to a debt and the proclamation of Lieut. Gov. Morley Griswold

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UP FOLLOWING BUYING SPREE

Citizens Hope To Make Cash Last For 2 Weeks

HOPE RESTS IN R. F. C.

$2,000,000 Loan To Stabilize Wingfield Banks Is Sought

RENO. Nev. Nov. Purse strings tightened perceptibly today as Nevada entered the third day of its two weeks "financial holiday" with 18 of the 25 banks in the state closed. Hope for relief was based largeby on the findings of two Reconstruction Finance corporation representatives sent here to investigate Gov. Balmar's application for a loan to stabilize the 12 banks controlled by George Wingfield. financial and political There was talk of a special legIslative session to provide for a state bond issue to aid the Wingfield chain of banks If the loan is refused. The banks handle the bulk of Nevada's banking business and hold $17,000,000 in deposits. After the first flush of spending which followed Lieut. Gov. Morley Griswold's proclamation of the banking holiday. residents settled down to budgeting their available cash today in the hope of making It last until the closed banks reopen. The mild "run" on the First National bank. only Reno bank to remain open. had ceased and many were re-depositing their cash. Some merchants were accepting checks on the closed Wingfield banks and an unprecedented number of charge accounts were opened. An "I. O. U." luncheon will be held Friday by the Twentieth Century club. The club will keep cash-less members "on the cutt" until the banking holiday is over. Even Lieut. Gov. Griswold was "caught short" by the holiday. He confessed he had been forced to "rob the baby's bank for in small change in order to have pocket money.

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Four Reno Banks Declare Holiday

RENO, Nev. Nov. 2.-Four of Reno's five banks were on official holiday today, while fifth, the First National bank. in Reno, was crowded with depositors and those seeking to withdraw funds. Richard Kirman Sr., president of the First National bank. was confident his organization would be able to meet all demands. He said his bank would remain open throughout the 12-day holiday proclaimend by Lieutenant Governor Morley Griswold last night. More than million dollars were rushed here by train and airplane from San Francisco to the First Na. tional bank today and Kirman said his bank is "in excellent condition. While item nt prevailed throughout the day in downtown Reno, business was being conducted as usual. An unusually heavy filing of divorce suits was reported at the county clerk's office, although checks for filing fees and court costs which were drawn on closed banks were not being accepted by the clerk. Gambling. which has been very slow for many months, appeared about normal. Some business houses couldn't meet their payrolls because of the tieup. Plain clothes and uniformed police watching all banks, particularly the crowded First National.

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No restriction was placed on checking accounts, the depositors being free to withdraw all or any part of such accounts. In savings accounts the customary notification requirement was asked.

Any emergency which might have developed was prepared for by the bank officers. Bundles of money, wrapped in bales of hay, had arrived from Salt Lake City. Some were labeled $5,000, some $10,000 and a few $25,000. It wasn't necessary to break many of the bindings, however, as only the money necessary for usual business practice was withdrawn.

The First National is independent of the Wingfield chain. It took advantage of the banking moratorium for the first two weeks with the result that the city was bankless, the other financial institution being a Wingfield bank. The First National, however, declined to remain closed in keeping with the two weeks extension of the moratorium and opened for business as usual this morning.

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Nevada Bank Holiday Is Extended 3 Weeks

Reno, Nev.-A "bank and business holiday" officially proclaimed November for two weeks was extended for the second time by Gov. Fred Balzar. The new debt moratorium will be three weeks. Meanwhile depositors speeded plans to reorganize 12 closed banks owned by the George Wingfield

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Nevada Bank Holiday Is Extended Weeks

Reno, Nev.-A "bank and business holiday" officially proclaimed November for two weeks was extended for the second time by Gov. Fred Balzar. The new debt moratorium will be three weeks. Meanwhile depositors speeded plans to reorganize 12 closed banks owned by the George Wingfield

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HOLIDAY BANKING EXTENSION NOT EXPECTED IN NEVADA the First National Bank in With to open Monday morning Reno ready without limiting checking and withdrawals, was indicated count that Governor probtoday ably not extend the Nevada holiday, which ends midnight tomorrow night. although no definite statement in this respect by the govmade ernor who is still studying the situation. Passage by the legislature of bill authorizing banks to limit withdrawwith the approval of the state banking board, is expected to prove sufficient for any emergency that might arise elsewhere in Nevada in the future. The signed the withdrawal limit bill yesterday but had not signed the measure by the legislature authorizing him to declare holidays as several features of the bill are being studied by the attorney general and others. An immediate improvement in local business circles followed the announcement of the First National yesterday that it would place no tions upon withdrawals from checking accounts.

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First National Will Do Limited Business Today

Withdrawals for Necessities, Payrolls Will Be Permitted; Payroll Checks Honored

The First National Bank of Reno will open its doors this morning to exercise the full powers allowed by the prevailing banking moratorium.

The bank will conduct a limited local banking business sufficient to permit the functioning of local business and commerce, and to prevent hunger and want.

Deposits consisting of cash or checks on the First National Bank will be accepted.

Withdrawals for necessities will be permitted. Payroll checks on accounts in the bank will be cashed. Personal checks on accounts in the bank will be honored provided they are for legitimate payments for necessities and not for withdrawals to hoard. Personal checks issued since Monday when the bank closed to observe Gov. Balzar's holiday will be honored. Most Reno business concerns accepted First National checks to the amount of purchase during the holiday.

Richard Kirman, president of the bank, said virtually every withdrawal will be subjected to an individual scrutiny.

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First National Will Do Limited Business Today

Withdrawals for Necessities, Payrolls Will Be Permitted; Payroll Checks Honored

The First National Bank of Reno will open its doors this morning to exercise the full powers allowed by the prevailing banking moratorium. The bank will conduct limited local banking business sufficient to permit the functioning of local business and commerce, and to prevent hunger and want. Deposits consisting of cash or checks the First National Bank will be accepted. Withdrawals for necessities will be permitted. Payroll checks on counts in the bank will be cashed. Personal checks on accounts in the bank will be honored provided they are for legitimate payments for By EARL H. LEAF necessities and not for withdrawals We are very very scientific to hoard. Personal checks issued low. We don't believe anything until since Monday when the bank closed observe Gov. Balzar's holiday will has been proven beyond peradbe honored. Most Reno business venture of doubt. Even at school, in concerns accepted First National the adolescent stage, we refused to checks to the amount of purchase during the holiday. believe we had code in de head Richard Kirman, president of the until our supply of handkerchiefs bank, said virtually every withwas drawal will be subjected to an indiThus it was that, while we were vidual scrutiny. strolling down Douglas Alley early This is necessary in accordance breast chirped our Secretary of Treasury Woodin, he said. here," and we gave the statement healthy doubt. Banking officials of other banks Nevada were undecided how But decided to investigate act. Most of the banks had planned After diligent survey of the situopen this but the moraation we decided must be spring torium left them doubt. went home and put our red expect resume flannels in the trunk with the moth soon as authorized by the United balls. State comptroller of said Last night we spotted 110 auto- Ennor, of the First National Bank of Elko. mobiles in the sparking places along Glendale road, old Verdi road, Plans of the Ely banks to open, this morning were altered by the Purdy highway, Peckham Lane and proclamation extending the holiday. the Indian village. The couples

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FIRST RESUMED OPERATING ON HERE INTO RATE NORMAL BASIS CHARGED FOR TODAY POWER

The First National Bank in Reno resumed normal this ing having received license last night from the federal banking partment resume all the banking functions in which was previously engaged. The permit to reopen on one hundred per cent basis came one day than generally pected as Reno has no clearing house this The bank opened modified basis last Friday, after having been closed for week under the terms the presidential proclamation. On Saturday and yesterday accepted deposits and cashed payroll checks for its own depositors and also small checks for depositors. Starting today no limitations are being placed commercial account checks drawn the bank by its depositors while checks for other banks in federal reserve cities and other cities that are known to be are being accepted for collection state that are operating on normal said the ficials of the bank this morning. Deposits made the bank since Friday have far exceeded indicated morning.

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TRANSFERS ASSET BEING OF BANKS CHECKED

Due to Be Numerous Suits National Filed Soon by Bank Receivers weeks, possiWithin the next in the Wingto the hearings bly prior field bank reorganization liability suits more stockholders' eral filed in the federal will probably be of the Reno court by the receivers the First National National Bank and Bank of Winnemucca, indicated will also be asked today. The court several agreements with to approve of the two banks in stockholders which the stockholders have arranged the assessment over period pay and have executed years by collateral notes, supported on real estate. mortgages national bank stockholders Where the assessment in cash fail pay arrangements, satisfacfail to make the comptroller of currentory the federal to pay the and the bank receivers bring suit and secure judgquired ment. When the judgment is secured the bank receiver proceeds collect on the judgment in the same mannr other civil The national banks not only face stockholders' liability equal to 100 per cent of their stock holdings in the bank but they also face directors' liability equal to the entire amount lost by the depositors the institution. Such explained, must be supported by evidence that the failure of the bank was caused by unlawful acts the directors, through their neglect. So far. understood. no special investigation been made regarding transfers of property or the placof upon their property national bank prior the closing of such banks last November. Inquiries regarding such transactions now being made by number depositors. Attorneys who have gone into the matter that such transactions can aside can shown that they made escape unsatisfied stockholders' directors' liability. the bank reorganization plan for Wingfield banks carried out notes and mortgages taken by the two national banks from stockholders will sold the bank as of part banks' assets and will therefore become the property of the new bank the federal government loses further interest in them, explained. The new bank can proceed to the notes in that the directors determine, said.

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PACT BLOCKS TRANSAMERICA PROMISED NEW BUYS RENO BANK RECALL MOVE (Continued From Page One) in communities of sufficient size

Grass Valley Justice And Two Councilmen Reach An Understanding

GRASS VALLEY (Nevada Co.), March -Justice of the Peace Oscar E. Winburn Grass Valley, whose recall is sought in petition now in circulation, will not institute retaliatory recall proceedings against Mayor John Harris and Matt Laity. This decision was announced by all three parties to-day following conference Understanding Reached. In statement yesterday, Judge Winburn said he would file counter recall against the two city officials for in office in the event the against himself received the 543 necessary signatures. "We have reached an understanding, Winburn said, "and neither the city officials nor contemplate any further action on this matter.

Mayor's Statement. Mayor said to-day he and Laity had talked to the judge and had decided to take no further action. Mayor Harris said: "Whatever Judge Winburn does is all right with me. If he can get me recalled, am willing to step out of office However, fter our talk last night there will be no Councilman Laity said: never anything against Judge Winburn Mayor Harris and were surprised when we read in the paper that the judge was planning to file petitions against us. As a matter of fact. approached yesterday by one of the men circulating the petition against Judge Winburn and refused to sign it.

Los Angeles is America's largest to make operations profitable. Reports have been heard for months that Transamerica would enter

Long Interested In State. After the collapse of the Wingfield banks were made to the Giannini interests take over the chain of banks. Nothing came out of the negotiations. Then, shortly after the turn of the year, made to link the First National of Reno with the system.

Headed By Kirman. An official of the corporation has been Reno for the last month on the proposed deal. The First National, which at the end total resources of $7,306,896 is headed by Richard Kirman, one of the most picturesque and bankers of the

Ignored Bank Holiday The First National Bank in Reno was organized in 1902 and has of the strongest banks in the West. When the Wingfield bank crash came in November, 1932, the First National remained despite the governor's state bank holiday proclamation. first operated under a state charter and then became a national bank, known as the Farmers & Merchants National Bank, changing its name to First tional several years ago. Its present officers are Richard Kirman, president: Walter Harris, president; L. S. Reese, cashier, and these three with Albert Caton, Lizzie R. Mudd and Dr. W. H. Hood comprise the directorate. During the thirty-two years of its existence it has paid regular annual dividends totaling $360,000. Has Strong Position. The following year-end figures indicate the bank is one the most liquid among the interior banks of the country ASSETS. 200,000 bonds and Banking $7,306,896 $ undivided money