7643. Hibernia Bank & Trust Company (New Orleans, LA)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
trust company
Start Date
February 4, 1933
Location
New Orleans, Louisiana (29.955, -90.075)

Metadata

Model
gpt-5-mini
Short Digest
8a0e5664

Response Measures

Borrowed from banks or large institutions, Public signal of financial health, Capital injected, Full suspension

Other: Governor O. K. Allen proclaimed a legal holiday closing banks temporarily to stem withdrawals.

Description

Articles report a run on Hibernia after Representative Hamilton Fish's public criticism (withdrawals of millions). Governor O.K. Allen declared a legal holiday closing banks to stem the run (a temporary, government-ordered closure). The RFC and Federal Reserve provided large cash assistance (reports of $20M+ rushed) and banks reopened within days. Cause of run classified as bank-specific adverse info (criticism/accusation regarding loans and RFC dealings).

Events (4)
1. February 4, 1933 Run
Cause
Bank Specific Adverse Info
Cause Details
Public criticism by Rep. Hamilton Fish alleging improper connections/loans (Union Indemnity dealings) prompted depositors to withdraw millions.
Measures
Governor declared a legal holiday to close banks temporarily; Reconstruction Finance Corporation and Federal Reserve rushed cash (reports of ~$20 million) to the bank to stop withdrawals.
Newspaper Excerpt
Hecht wired Representative Hamilton Fish that his attack ... had caused run on his bank and millions of dollars had been withdrawn.
Source
newspapers
2. February 4, 1933 Suspension
Cause
Government Action
Cause Details
Governor O.K. Allen proclaimed a legal holiday closing banks statewide to stem the run and allow time to arrange support.
Newspaper Excerpt
Banks in New Orleans and in most sections of the state closed in response to proclamation issued last night by Governor Allen, declaring today legal holiday ...
Source
newspapers
3. February 6, 1933 Other
Newspaper Excerpt
Emergency action by the Reconstruction Finance Corporation in rushing $20,000,000 to the aid of the Hibernia Bank and Trust Company ... had halted a million dollar run on the bank and eased an impending threat ... Banks throughout Louisiana reopened today and officials reported that business had resumed as usual without a sign of panic by depositors.
Source
newspapers
4. February 6, 1933 Reopening
Newspaper Excerpt
Banks throughout Louisiana reopened today and officials reported that business had resumed as usual ... The R. F. C. last night provided the huge sum ... Banks thruout Louisiana reopened today and officials reported that business had resumed as usual without a sign of panic by depositors.
Source
newspapers

Newspaper Articles (14)
1. February 5, 1933 The Tampa Tribune Tampa, FL
Article from The Tampa Tribune, February 5, 1933

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Article Text

Bank Run Is Laid To Congressman's Attack on Officer NEW ORLEANS, Feb. Rudolph S. Hecht, president of the Hibernia Bank & Trust company and chairman of the advisory committee of the Reconstruction Finance corporation, today wired Representativ Hamilton Fish that his attack on him before the house banking committee had caused run on his bank and millions of dollars had been withdrawn. The banks in New Orleans and in most sections of the state closed in response to proclamation issued last night by Governor Allen, declaring today legal holiday in commemoration of the 16th anniversary of the severance of diplomatic relations with Germany prior to the declaration of Representative Fish last Thursday assailed Hecht in connection with a loan obtained by the Union Indemnity company of New Orleans, which went into receivership last month. Hecht wired Fish he had taken no part in the application for the loan and felt his criticism had been unjustified. Fish replied he would be glad to review information given him by the Reconstruction Finance corporation and that nothing he had said reflected on the Hibernia bank. "Farthest from my thought to reflect on your bank in stability of which R. F. C. officials have complete confidence," said Fish in his telegram.

2. February 5, 1933 Dayton Daily News Dayton, OH
Article from Dayton Daily News, February 5, 1933

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Article Text

BANK HOLIDAY IN LOUISIANA NEW ORLEANS, La., Feb. Rudolph Hecht, president of the Hibernia Bank and Trust Co., of New Orleans, one of Louisiana's largest banking institutions, *this afternoon charged that speech by Representative Hamilton Fish in congress has "done incalculable damage to this banking institution resulting in run on the bank and withdrawal of several million dollars.' Banks throughout Louisiana were closed today when Gov. O. K. Allen suddenly declared legal holiday in "honor of the memory of Woodrow Wilson." Hecht's charges against the congressman revealed Gov. Allen had proclaimed the holiday in an effort to stem an acute financial situation. When the County Youth division of the Montgomery County Council of Religious Education meets at the South Park M. E. church Feb. 22, 300 young people of the high school age will discuss numerous problems touching the youth of today. They will be assisted by various leaders in religious work including four out-oftown and 13 local speakers. The out-of-town speakers include C. E. Smith of Columbus: C. E. Walton of Cuyahoga co.; former director of religious education there; Paul Harris, dramatic art teacher in the Columbus high school and Ralph Sherman of Cincinnati, youth leader in Hamilton The following local leaders will be heard: Lucy Eldridge, secretary of Christian Education and president of Young Peoples departments; Rev. Harvey Hahn, pastor of Otterbien U. B. ehurch: Dr. E. E. Harris, editor of the "Watchword"; Florence Martin, director of week-day schools of Religious Education: Hazel Boe, religious educational teacher; Dean E. Ashcraft, dean of Bonebrake Seminary: Rev. Millard Flenner, pastor of Heidelberg Reformed church; Leslie Diehl, director of recreation of Dayton Chamber of Commerce: Harry McPherson, chairman of advisory board of county council; Mary Catherine Stewart, former president of the Young People's council; Mary Henderson, secretary of Ohio Young People's council and president 1932 of the Youth division, and Robert Long, former Montgomery CO. Youth leader. Merrell E. Landis, president of the Montgomery County Youth division, will preside. Other officers include Winifred V. Brown, vice president; Dorotha M. Stanford, secretary treasurer: F. Frederick Betz. publicity manager and Harry McPherson, chairman of the advisory board.

3. February 5, 1933 The Spokesman-Review Spokane, WA
Article from The Spokesman-Review, February 5, 1933

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Article Text

STARTS BANK RUN, HE SAYS Hecht Wires Random Criticism Frightened Depositors. NEW ORLEANS, Feb. 4. (4)-Rudolph C. Hecht, president of the Hibernia Bank and Trust company and chairman of the advisory committee of the Reconstruction Finance corporation, today wired Representative Hamilton Fish in New York that his attack on him before the house banking committee caused run his bank and millions of dollars had been withdrawn. The banks in New Orleans and in most sections of the state closed in response to a issued last night by Governor O. K. Allen, declaring today a legal holiday in commemoration of the 16th anniversary of the severance of diplomatic relations with Germany Representative Fish on Thursday criticized Hecht in connection with loan obtained by the Union Indemnity Company of New Orleans which went into receivership last month. Hecht wired Fish that he had taken no part in the application of the loan and felt his criticism had been unjustified. Fish replied that he would be glad to review information given him by the Reconstruction Finance corporation and that nothing he had said reflected on the Hibernia bank.

4. February 5, 1933 Muskogee Daily Phoenix and Times-Democrat Muskogee, OK
Article from Muskogee Daily Phoenix and Times-Democrat, February 5, 1933

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CLOSING BANKS TOPS DAY DRAMATICS Huey Long, Rushing Home to 'Save the Nation', Charges New Yorker Caused It All FOLLOWS 'RUN' ON BANK Governor Allen Closes All stitutions in Unique 'Wilson Day' Proclamation NEW ORLEANS, Feb. series of dramatic, all-night conferences to combat New Orleans bankdifficulties was climaxed tonight by Senator Huey "Kingfish" Long's announcement that: to be all "Everything's going Long said he sped here to the banks of New Orleans and thus rest of the banks in the "keep the nation from failing.' Will Reopen Monday Long stepped of secret con ference, one many in which local banking officials, Gov. O. K. Allen and others have participated since Friday, to make his announcement. came after Governor Allen halted all banking business in the today with unique holiday proclamation and after announcement that the Hibernia Bank Trust of New Orleans and company had suffered run which led to withdrawel millions. Long said he all Louisiana financial institutions would open for business Monday publicity of 'Ham' Fish (Rep. Hamilton Fish of York) and speech terrible said Long working things out and going be right. the New Orleans banks under all the other banks the country would have gone under "That's why dropped everything and took up the bank problem." "Speech Caused Run" Rep. Fish charged in Friday affairs certain New Orleans financial institutions should He said that they had receivership after they had been granted Reconstruction nance Corporation Fish said believed that Rudolph Hecht. the Hibernia bank should president forced resign from the chairmanship the regional advisory committee of the Hecht with charges that speech caused the run on the Hibernia meantime called Long for conference. The stopped the proceedings issue the following banks are good in New Orleans. the best banks the matter what Fish has to about "He peddles false information all over the And look what hap pened! He ought to be ashamed himself. our banks fail, which isn't likely not now, all the banks in country would fail. The banks all the world would be affected. It would be terrible, horrible, awful. "That's why dropped everything doing when the governor called "Then he declared today holiday think darn good people chance get their breaths and what this Ham Fish did with his talking. "Anyway the banks are good and going not through by long sight here tonight, but the banks are going open day everything's going to be right."

5. February 5, 1933 News and Record Greensboro, NC
Article from News and Record, February 5, 1933

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Article Text

FISH IS CRITICIZED New Orleans Bank President Says His Charges Hurt His Bank. New Orleans, Feb. sentative Hamilton Fish, Republican. New York, was charged today with starting run on the Hibernia Bank Trust company here by Rudolph by his recent criticism o: Hecht before the banking committee with Finance corporation loans to the defunct Union Indemnity company Orleans. In an Fish expressed in bernia Bank and Trust company added that nothing he had said flecte on the bank, that was willing to the information and did do Mr. Hecht an injustice. There has been no visible sign run on Hibernia bank but Mr Hecht said that news of Mr. Fish's criticism him had caused lions of dollars to be withdrawn.'

6. February 5, 1933 Florence Morning News Florence, SC
Article from Florence Morning News, February 5, 1933

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NEWS BRIEFS CONTINUED FROM PAGE ONE could refuse to pay the bonds behind the loans. NAPLES. Italy, Feb. The eruptive of Mt. Vesuvius widening today concentramasses burning lava struggled to find outlet. Professor Alessandro Malladra. director the observatory at the volcano, the opening far from sufficient and the lava might outlet by bursting hole the side between Torre del Greco and Torre Annunziata. ORLEANS Feb. Rep. Hamilton Fish, R., charged today starting run the Hibernia Bank and Trust company here by Rudolph Hecht. president, his recent criticism of Hecht before the house committee in ance Corporation loans to the defunct Union Indemnity Company of New Orleans. TAKEN and white spotmale Weight about 100 McCall. Florp2-5 Coit Street.

7. February 6, 1933 The Tribune Coshocton, OH
Article from The Tribune, February 6, 1933

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R.F.C. Stops Run at Louisiana Bank NEW ORLEANS, La. Feb. 6Emergency action by the Reconstruction Finance Corporation in rushing $20,000,000 to the aid of the Hibernia Bank and Trust Company, of New Orleans, today had halted at million dollar run on the bank and eased an impending threat to numerous Louisiana banking institutions The R. F. C. last night provided the huge sum after Governor O. K. Allen Saturday had proclaimed legal holiday closing all banks and businesses in the state. Banks thruout Louisiana reopened today and officials reported that business had resumed as usual without a sign of panic by de-

8. February 6, 1933 The Daily Courier Hammond, LA
Article from The Daily Courier, February 6, 1933

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SITUATION OF BANKS IS EASED BY U.S. Possible Run on Hibernia Bank Averted: Saturday Holiday to Relieve Threat One of the tensest banking situations in New Orleans in recent years was relieved yesterday and today after the Federal Reserve bank, and state banking and political leaders issued statements and obtained funds which apparently has definitely stopped any danger of a run on the Hibernia Bank and Trust company largest in the South. A 'run by mail' began late last week after Congressman Hamilton Fish of New Orleans demanded in the National House of Representatives an investigation of the dealings between the Reconstruction Finance corporation and such corporations of the Union Indemnity company of New Orleans, favored bonding company of the Long administration. which went into receivership after getting R. F. C. loans. With this demand, Representative Fish asked the resignation of Rudolph S. Hecht, president of the Hibernia bank, from the chairmanship of the regional advisory committee of the R. F. C. The bank and the Union Indemnity had engaged in considerable financial dealings with each other. New Orleans papers Friday did not publish the attack, but other papers in the nation did, and financial leaders in the East and elsewhere, as well as smaller depositors began drawing out their Hibernia accounts with a rapidity which soon made the withdrawals run into millions. On Saturday, Governor Allen was told to call a legal holiday so as to permit the closure of the bank for the day to avert further runs. He did so, and over the week-end, R. F. C. representatives. other financial leaders, Senator Long and others combined their forces to safeguard the banks. Today it was announced that no further danger even remotely threatened the bank, and that millions of dollars had been placed at its disposal by the Federal Reserve to meet any possible run. Following are the statements issued by E. R. Black, governor of the Atlanta Federal Reserve bank. and the New Orleans Clearing House association. Senator Long also issued a statement. "It is gratifying to know that the unrest in financial circles caused by careless statements relative to the Hibernia Bank and Trust Company have been fully corrected. "Not only have the statements about this bank been withdrawn, but full and adequate steps have been taken to provide, on the security of the bank's assets, ample funds to meet all possible withdrawals. "E. R. BLACK, "Governor of Federal Reserve Bank, Atlanta." "To the Banking Public Tributary to New Orleans: "We are glad to be able to say to the public that through prompt and efficient cooperation arrangements have been made to stop definitely the threatened run on a member bank, resulting from unwise and unfortunate statements. "There is no occasion for any uneasiness concerning the New Orleans Clearing House banks, and business should be continued in the usual normal way. "The New Orleans Clearing House Association."

9. February 6, 1933 Ledger-Enquirer Columbus, GA
Article from Ledger-Enquirer, February 6, 1933

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careless statements relative to the Hibernia Bank and Trust Co., has been said Mr Black "Not only have the state ments about this bank been withdrawn but full and adequate steps have taken to provide, on the security of the assets, ample funds meet all possible with-

10. February 6, 1933 The Columbus Ledger Columbus, GA
Article from The Columbus Ledger, February 6, 1933

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Greenbacks Cash and Stored in Vaults; Confidence Is Expressed by Officials. Trust with in from the and other today break run the bank's Rudolf said started after he (Rep. Y..) before the house million dollars cash and against already there were draw their money the stability of Hibernia bank voiced the other banks by Governor of Federal Reserve bank emergency. made Twenty the bank by the Finance ession in Washington day four dollars tional raised by the Hibernin Mr Hecht the bank was allegation Thursday that had the Union demnity from the Finance shortly before hands of the receiver.

11. February 6, 1933 News and Record Greensboro, NC
Article from News and Record, February 6, 1933

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ORLEANS BANK PLANS HALT Trying to Meet Requirements of Finance Corporation $2,000,000 Loan. IS SAVED BY HOLIDAY New Orleans, ficials Hibernia Bank Trust company tonight that directors of the McNary, session Washington today approved the the bank raised positors more the ground the was Bank officials said they believed they could senator and stop on the bank Early bled tonight the officials said had raised quired that the telephone were responding the favorably the The was started after RepreNew of special before the house in made defunct Union Indemnity by the banks were in New Or under Allen he issued suddenly Saturday the the ance between the United issued time action proclamation was lief prepare meet the run the which had suffered the bernia heavy out town by and officials the had been participated in any extent by New Orleans Merchants and industrialists were taken by Saturday's city they had difficulty meeting

12. February 6, 1933 The Day New London, CT
Article from The Day, February 6, 1933

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R. F. C. Speeds to Rescue Of New Orleans Bank NEW ORLEANS, Feb. Hibernia Bank & Trust Vaults the stacked with millions from Co., Reconstruction Finance the to other Ruwhich the said started after Hamilton before the Fish Twenty four million dollars in cash stored vaults against already and depositors But they were their just during the bank's now had 62 Hecht years said the his bank precipitated Fish Thursday that had aided the Indemnity obtaining 000 from the shortly before it went Corp., into the hands the receiver.

13. February 7, 1933 The Coshocton Tribune Coshocton, OH
Article from The Coshocton Tribune, February 7, 1933

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R.F.C. Stops Run at Louisiana Bank NEW ORLEANS, La. Feb. 6Emergency action by the Reconstruction Finance Corporation in rushing $20,000,000 to the aid of the Hibernia Bank and Trust Company, of New Orleans, today had halted at million dollar run on the bank and eased an impending threat to numerous Louisiana banking institutions. The R. F. C. last night provided the huge sum after Governor O. K. Allen Saturday had proclaimed a legal holiday closing all banks and businesses in the state. Banks thruout Louisiana reopened today and officials reported that business had resumed as usual without a sign of panic by depositors.

14. February 9, 1933 Springfield Weekly Republican Springfield, MA
Article from Springfield Weekly Republican, February 9, 1933

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FISH IS ACCUSED OF STARTING RUN AT NEW ORLEANS Banker Recalls Criticism in Connection With C. New Orleans Banks Closed. New Orleans, Feb. resentative Hamilton Fish was charged today starting on the Hibernia Bank and Trust comhere by Rudolph Hecht, prespany ident, by recent of Hecht before the House banking committee in connection Reconstruction Finance corporation loans to the defunct Union Indemnity company of New Orleans. an exchange of telegrams, Mr Fish Bank and Trust company. He added that nothing had said flected that he and did wish to do Mr Hecht an injusthe banks in New Orleans in many other parts Louisiana were closed today response issued by Gov len the diploThere has been visible sign Hibernia bank Mr Hecht that Fish's had caused millions dollars York today. Mr Fish said had Hibernia bank nothing said reflected on stability nonsense for the peoOrleans to take my ticism Mr Hecht the credit bank," the New said. the House banking committee Thursday Fish said demand resignation of Mr Hecht from chairmanship the advisand demanded all Reconstruccorporation loans concerns that later failed. In telegram Mr Fish yester Mr said he did not recomcations loans from the Union Indemnity company.