815. Bank of Lincoln (Lincoln, CA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 9, 1933
Location
Lincoln, California (38.876, -121.293)

Metadata

Model
gpt-5-mini
Short Digest
ac50358a

Response Measures

None

Description

The Bank of Lincoln closed (suspended) in early January 1933 and the California Superintendent of Banks took possession in February 1933 to liquidate the institution. Articles describe financial deterioration (shrinking securities, declining land values, borrowers unable to pay) as the reason; no explicit depositor run on this specific bank is described in the pieces provided.

Events (2)
1. January 9, 1933 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Securities shrunk, land values declined, borrowers unable to pay interest or loans — directors decided continuing was useless until reorganization could be effected.
Newspaper Excerpt
The people of this community were shocked last Monday morning when the Bank of Lincoln, the oldest banking institution in the Placer county, closed its doors.
Source
newspapers
2. February 6, 1933 Receivership
Newspaper Excerpt
NOTICE ... by the Superintendent of Banks ... that by virtue of the authority conferred on him ... said Superintendent of Banks has taken possession of the property and business of said The Bank of Lincoln and is liquidating the business and affairs thereof ... Dated this 6th day of February, 1933. EDWARD RAINEY, Superintendent of Banks of the State of ... First publication, Feb. 9, 1933. Last publication. May 18. 1933. (legal notice).
Source
newspapers

Newspaper Articles (4)
1. January 12, 1933 Lincoln News Messenger Lincoln, CA
Article from Lincoln News Messenger, January 12, 1933

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Article Text

Ed's Slants On The Day's News What's the world coming to any way, with war, depressions, defaulting of the great powers, moratoriums, bank failures, suicides, murders, robberies, gasings and holdups-what's wrong with our civilizations? Something! Just read a report of some German statistician who attributed the decrease of divorce in his country to the depression, suppose the old saying "poverty brings people closer together" really does help hold us closer, as misery likes company. Now about divorces-Russia has the easiest divorce law in the worldall either party has to do is to say "I don't want him or her any longer" -no questions asked, they are given a card granting the divorce and the divorced gets duplicate and the thing is over. Statistics show that 300 out of every 100,000 get divorce. California with her "Gin" law and her Reno divorce court, has an average of 165 to the 100,000. A bill has been introduced repealing the "Gin Law", what for? Help the divorce business? Have heard the expression, "Don't take any wooden money" many times, and of course did not take it seriously, but now we hear of town up in Washington, Blaine where if you work, you take wooden money, as that's what they are using to pay off with-said money is redeemable however at the grocery stores and other stores in merchandise, which makes it a legal tender and perhaps just as good as gold and silver, as money is worth only what it will buy and you can't save it, no use, as if you carry it around in your pocket some guy will take it away from you and if you leave it at home some fellow comes in and gets it, if you buy stock with it or invest it in anything, your security goes to smash-if you put it in the bank,, the bank goes "flooey"so wooden money, beads or wampum are just as good as anything. Lots of excitement in Lincoln this week with the suspension of the Bank of Lincoln on Monday morning, robbery of the Park Service Station on Tuesday, hunting for the gas thrower all week and robbery of the Park Service Station again. We are all just waiting to see what the hell's going to happen next.

2. January 12, 1933 Lincoln News Messenger Lincoln, CA
Article from Lincoln News Messenger, January 12, 1933

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Article Text

BANK OF LINCOLN, OLD INSTITUTION, SUSPENDS MONDAY The people of this community were shocked last Monday morning when the Bank of Lincoln, the oldest banking institution in the Placer county, closed its doors. Chief Deputy, E. D. Holly, assumed charge and made an examination at the request of the directors of the bank and has returned to San Francisco, leaving cashier, J. A. Bannister, in temporary charge of the bank. Mr. Holly stated that he found the records of the bank in excellent condition. A meeting of a few of the stockholders and depositors was called by the officials of the bank on Wednesday for the purpose of calling a general meeting of the depositors. At this meeting it was decided to call the general meeting for Saturday, January 14 at 2:00 p. m. at which time a committee will be appointed to confer with the stockholders and directors and ascertain what course to pursue and to organize a permanent committee to look after the interests of the depositors and assist in any way that they can. The Bank of Lincoln is, as we have stated, one of the oldest if not the oldest banking institution in the county now operating under its original name and charter having operated in Lincoln for more than twenty-five years and has always enjoyed the confidence of the community. Its suspension is a severe shock, mentally to the community adding more distress to the already panicky feeling which exists throughout the country, besides it is a severe blow to the depositors, who are numbered by the hundreds, many having their all in the bank. As has been the case in most of the bank suspensions throughout the country, its securities have shrunk, land values have declined, borrowers have been unable to pay their loans or interest, hence the income of the bank has been reduced to the extent that continuing on was decided useless by the directors until some plan of reorganization could be effected.

3. January 28, 1933 The Placer Herald Rocklin, CA
Article from The Placer Herald, January 28, 1933

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Article Text

HERALD Oldest Paper California Subscription Year Shepard, Proprietor The Bank Situation The failure the Bank of Lincoln, the Bank Loomis and the National Bank of caused quite financial hysteria the past week. Runs the other Sacramento banks Saturday and Monday, but things have quieted down, the money availfor all those wanted light run also made the banks Roseville and Auburn, but money available to those wished withdraw. will embarrass any matter how strong, and most gratifying to know that the Auburn depositors reasonable. have banks order do business, all good citizens should discourdisparaging statements. Auburn Bank of America of mammoth parent instioffspring while the Placer County Bank of strongest individual banks be found anywhere. Alden to president the Capital Anderson, Bank (not the California National also the National) Placer County Bank. president National Bank Capital and strongest banks safest California.

4. March 30, 1933 Auburn Journal Auburn, CA
Article from Auburn Journal, March 30, 1933

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Article Text

LEGAL NOTICES NOTICE TO ALL PERSONS HAVING CLAIMS AGAINST THE BANK OF LINCOLN NOTICE is hereby given by the Superintendent of Banks of the State of California to the creditors of and all persons having claims of any kind or nature against The Bank of Lincoln, banking corporation, located in the city of Lincoln, County of Placer, State of California, that by virtue of the authority conferred on him by Section 136 of the Bank Act of the State of California, said Superintendent of Banks has taken possession of the property and business of said The Bank of Lincoln and is liquidating the business and affairs thereof in accordance with the provisions of said Bank Act. ALL persons having claims against The Bank of Lincoln or against any property owned or held by said The Bank of Lincoln are hereby notified to present the same, duly verified by the claimant or someone in his behalf, with the necessary vouchers, and to make legal proof thereof. within four months after the first publication of this notice, to-wit: within four months after February 9. 1933. All claims must be presented to said Superintendent of Banks, at the office of The Bank of Lincoln, located at the Southwest Corner of Fifth and "F" Streets, in the City of Lincoln, County of Placer, State of California, or at the office of the Superintendent of Banks, 116 State Office Building, in the City of Sacramento, County of Sacramento, State of California. Dated this 6th day of February, 1933. EDWARD RAINEY, Superintendent of Banks of the State of First publication, Feb. 9, 1933. Last publication. May 18. 1933. of this source, Senator Snyder believes that it should be possible to avert similar demands on gasoline tax funds thereby enabling the state to take into the highway system enough more county roads to permit entire abolition of county property taxes for that purpose. Thus, the measure is aimed to help both the farmer and city resident, who are overburdened by taxes on their property. "Each municipality would receive a minimum of $2000 a year from this license tax," explained Senator Snyder. "The balance of the fund would then be distributed between the cities on the basis of their population. This should assure every city in the state an ample fund for street work, as approximately $4,600,000 would be avilable. "Although enactment of this bill will increase the charges now paid by some truck and trailer operators for use of streets and highways, that will be only just. They are deriving unusual benefit from such use and. in fairness. should pay more. Common carriers already pay more for their use of roads and there is no good reason why contract carriers and others should not do likewise. "Those who use trucks only for city deliveries, and farmers who carry their own produce to market, would not ordinarily be required to pay any more for use of streets or roads than they do now. Such trucks are driven relatively short distances during the year. Under the present system they pay as much for their limited use of roads as trucks of commercial haulers operating five or six times as far. "This is so unjust that Senate Bill 125 should be enacted as a measure to equalize taxes between those who use roads, if for no other reason. However, it is also required in order that the operator of large equipment may be called upon to pay their fair share of the upkeep of streets and roads over which their vehicles move, instead of passing that expense back to the common property owner, who is in no position to assume the burden."