gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
3ef36033c6e51077
Response Measures
Accommodated withdrawals, Borrowed from banks or large institutions, Fed/other loan, Public signal of financial health, Full suspension, Books examined
Clearinghouse involved: Yes
(loan, examination, or other measures)
Receivership Details
Depositor recovery rate
100.0%
Date receivership started
1933-01-21
Date receivership terminated
1941-09-30
Share of assets assessed as good
42.4%
Share of assets assessed as doubtful
45.1%
Share of assets assessed as worthless
12.5%
Description
Contemporaneous reports describe a silent run leading to suspension and appointment of receivers; later liquidating dividends were paid.
Events (6)
1.January 5, 1907Chartered
Source
historical_nic
2.January 21, 1933Receivership
Source
historical_nic
3.January 21, 1933Run
Cause
Local Shock
Cause Details
Heavy farm loans and adverse agricultural/general economic conditions precipitated large withdrawals; whispering campaign accelerated the run.
Measures
Other banks and Federal Reserve rushed cash by airplane and armored car to bolster local banks; directors sought reorganization and asked authorities to take charge.
Newspaper Excerpt
Heavy withdrawals covering period several days and culminating Friday in what was virtually silent run
Source
newspapers
4.January 21, 1933Suspension
Cause
Local Shock
Cause Details
Reserves fell below legal requirements after the silent run and heavy withdrawals; state superintendent ordered the Trust and Savings Bank closed and examiners took charge.
Newspaper Excerpt
failed to open for business today... State and Federal examiners took charge of the bank
Source
newspapers
5.January 23, 1933Receivership
Newspaper Excerpt
a receiver for the state bank will be appointed. The national bank receiver will be named by the Comptroller of Currency and inventory of the institution's assets now under way by twelve state and federal bank examiners (articles Jan. 23). initial dividend... distribution of initial liquidating dividend (Aug. 28). receiver H. W. Douglass (Aug.–Sep articles). indictments later in November.
Source
newspapers
6.August 28, 1933Other
Newspaper Excerpt
Distribution of initial liquidating of the institution started... depositors seeking their 20 per cent share
Source
newspapers
Newspaper Articles (23)
1.January 21, 1933Modesto News-HeraldModesto, CA
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PHILIPPINE
President Of Island Senate Will Vote Against Acceptance Of Measure
Jan. Manuel Quezon, the senate litical figure in the islands, to-day Associated against ance of the pendence bill cently passed "first last statement termed every terest the Manual Quezon pino entirely principle, Quezon unfair' said were opposition caused political jealousy achievements the dependence mission which favored the bill. The senator rejection of the act would not be construed consistency insincerity. Held Unfair "When the HawesCutting bill we clear do not want is unfair humiliation to us people ruinous make clear also congress passes bill giving mediate independence we will without question. difference of opinion is blessing the people, pelling them to the generally the bill degree which they before to bring vital question." "My forecast is cleavage sult either coalition party or evenbalanced Two such strong parties what phatically need.
Action Due To Heavy With Plans Under Way
By McClatchy Newspaper Wire Jan. California National Bank, one of oldest financial institutions in the West, failed to open its doors business California and Savings Bank, state institution, likewise open. Heavy withdrawals during the several advanced reason the closing The board directors of the banks this morning and issued statement which expressed the hope that of reorganization with the of depositors, an The California National Bank about commercial counts, while the California Trust Savings Bank approximately 36,000 accounts Branch banks North mento, Arbuckle were affected by the closing order. California Trust and Savings Bank was closed by Rainey, state the ing in Francisco, Rainey said: Rainey's California Trust Savings Bank Sacramento over by the superintendent banks this morning, following meeting of the board of directors which resolution adopted closing the (This mesting held in San Francisco last night.) withdrawals covering period several days and culminating Friday silent run, brought bank's below the legal quirements, and the closing folsuperintendent of banks plans for reorganization which have proposed.' Statement The statement issued the bank's board of directors follows: "Owing agricultural and over of the last three years, Bank Sacramento and the Savings Bank have cent withdrawals cordingly, the directors, tection decided the state authorities to take charge of the institutions "It hoped that plan of organization can worked the of deposian date.' Hilliard president the House issued statement which that other banks in sufficient on hand to for all said: clearing house responsibility Sacramento are fully aware banks the occasioned closing the California National Bank the California Trust Savings are prepared that need not disturb conditions.
Sufficient Cash "Sufficient cash available to take all requirements need feel ability the banks to handle behooves all of us to the seriousness the situation and to extent that allowed the tests of the and courthe of this We firmly believe that they will rise occasion and that In the of memory local bankers, of the Na. tional first time Sacrafailed history that bank has to Crowd Gathers At an early morning, the bank fail at the regular hour of o'clock tions and crowd gathered in front bank at Seventh and Shortly bulletin, signed Superintendent Banks Rainey, was posted on the door. have taken possession the the Callfornia Trust and Bank fornia.' bank act of the State of CallScores of persons were astoundAs minutes passed, the crowd became greater fic officer assigned the tersection bank because of the heavy vehicular second bulletin was posted This notice Price, examiner charge, formal resolution of the board of National Bank has been placed in suspension
Statement The last financial statement sued by the California Bank December fore the run withdrawals began, regarded by officials of the bank fine of this of local leans largely properCalifornia. Bonds and other liquid assets amounted (See TWO, Page Col.
2.January 21, 1933Santa Rosa RepublicanSanta Rosa, CA
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OLDEST BANKS
(Continued from page One) meeting of the board of directors, which resolution was adopted closing the bank. "Heavy withdrawals, covering period several days, and culminating, Friday, in what was virtually silent run, brought the bank's reserve the requirements, and the clos. "The of banks sympathetic tion to plans for which already have been proposed.'
CITY IN UPROAR Jan. 21 Business virtually paralyzed here news the closNational Bank spread rapidly through the Sacramento has seen the closing of but few and involving city's ploneer financial institution. brought thousands residents the downbusiness district Other Sacramento banks soon felt the pressure of the news, and substantial withdrawals were ported by some of the institutions, all however, are declared be in sound So was the traffic in some an call for relief traffic officers necto police Telephone lines throughout the were jammed making it virtually impossible place local call.
CITY'S OLDEST BANK The California Trust Savings Bank was under joint ownership the California National Bank one of oldest strongest banks in Northern California. The bank was organized in 1882. capital $500,000. and national bank in 1907 In 1927 merger with the Na Bank Mills still further the California National The Mills bank, founded during the gold rush days of 1850 brought the combined assets the two the time one of the pioneers also was one of the backers the Central Pacific Railroad. and the Bank of California, in 1862. at San FranFred Kiesel president of the National Bank
3.January 21, 1933The Modesto BeeModesto, CA
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SILENT RUN REVEALED
Action Due To Heavy Withdrawals; Reorganization Plans Under Way
By McClatchy Newspaper Wire SACRAMENTO, California National Bank, one of "The California Trust Savings Bank taken over by the superintendent banks this morning, following meeting of the board of directors which adopted bank. in San Francisco last "Heavy withdrawals covering period several days and culminating Friday what was virtusilent run, brought the bank's reserve below legal quirements, and the closing followed. superintendent of banks will give consideration plans for which have been proposed. Directors' The statement issued the bank's board directors "Owing to agricultural and over riod of the last three years, Bank Sacramento and the Trust Savings Bank have met cent cordingly, the directors tection all depositors, decided ask the national state authorities to take charge of the institutions hoped that plan of the of deposidate." Hilliard president the Clearing House sociation, issued statement which assurance the other banks in Sacramento cash on hand for all clearing house banks Sacramento are fully the responsibility closing of the California National Bank and the California Trust and Savings Bank are prepared ner that need not disturb conditions.
Sufficient Cash "Sufficient cash available take and one feel concern the ability the banks to handle situation. behooves all of to recogthe seriousness co-operate the extent that business be allowed continue its normal course. is one the tests of the stability and courpeople this commuWe believe they will occasion and In the of local bankers, the of the California tional first time mento's history that bank failed to open. Crowd Gathers At an bank fail open the regular hour o'clock proportions at large crowd gathered front bank at Seventh streets. Shortly bulletin, signed Rainey, posted on the door. have taken the the fornia Trust and Bank unthe Section act of the State of CaliScores persons were astoundthe greater fic officer the by the bank because the heavy traffic. second bulletin was posted notice Price, examiner in charge, formal resolution the board directors, the California National Bank placed in effect. Last Statement might easier to keep hu- The the time than Dr Zeigler Bank 31st, that death fore the of from lobar seldom officials of occurs before the fifth day often delayed for three weeks Total deposits amounted longer. slower course time loans Pneumocholin produced by California Bonds and dissolving pneu- liquid assets monia olate, derived from bile. (See Page Col.
4.January 21, 1933The Fresno BeeFresno, CA
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Mrs. Roosevelt Leaves Plane On Chicago Trip
RANCE STOCK DROPS fornia Western States Life Insur Company's stock dropped one third of price on the San Francisco Erchange to failure of D. the Califor National Bank of nia forced her plane Sacramento the exchange afternoon and The stock down to $20 her trip to by share from the price Chicago terday Although only 285 shais The plane landed at Cleveland sold the half hour after the news before reached here this was turn Roosevelt immediately over for the usually quiet stock. rushed to the Linndale Railroad Station State Bill Would kept waiting She pected in Chicago about Restrict Oil Drilling M She the SACRAMENTO Jan League of Women Voters there to Drilling for oil within 300 feel of night public lands of be terms Rolph Names Dr. Kress of bill introduced the legislature Assemblyman George To State Health Board Bliss Carpinteria Bliss said the of the bill preSACRAMENTO Jan 21 Dr George H. Kress of Los An- pools of oil belonging to the pubgeles appointed by Governor Roinh to be member of the FINANCIER GETS PROBATION state board of public health SAN DIEGO Jan. Earl succeeding George E Ebright Farnsworth vice president of of San Francisco, whose term pired free on probation Dr. Percy T. Magan of Los An after being day on les was be member charge in of the board of medical the traffic death last October vice Bert of marine The banker was or deceased dered to pay $750 trial costs
5.January 22, 1933The Los Angeles TimesLos Angeles, CA
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SILENT RUN' SHUTS BANK IN CAPITAL
Sacramento Institution, Subsidiary and Four Units Now Being Examined
SACRAMENTO, Jan 21. (P)-The California National Bank of Sacramento and its subsidiary, the California Trust and Savings Bank, said to be the oldest institution of its kind in California, failed to open for business today. Branches of the California National Bank in North Sacramento, Loomis, Ione and Arbuckle also failed to open. The California National Bank of Sacramento has no affiliation with banks of a similar name in this State. Federal and State examiners took charge of the bank and started checking its assets. Directors issued a statement crediting the closing to heavy withdrawals during the past several days. Airplanes and armored motor cars rushed $13,000,000 in cash from San Francisco to Sacramento to fortify the position of other banks subjected to runs when news of the Callfornia National closing became known. Approximately 9000 commercial and 36,000 savings accounts were tied up by the bank closing. The California statement of condition as of December 31, 1932, showed and those of the California Trust and Savings, $19,989,390.45 State Superintendent of Banks Rainey'ordered the California Trust and Savings Bank closed. He said withdrawals during the past several days "were virtually silent run which brought the bank's reserves below the legal requirement." State Treasurer Charles G. Johnson and Department of Finance officials said the State has $1,231,000 deposited in the closed bank, $1,100,000 of which are secured by Federal, State, county and city bonds valued at 10 per cent in excess of the
6.January 22, 1933Santa Cruz SentinelSanta Cruz, CA
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SANTA
EDITORIAL
Things Are Better Here.
ESTERDAY in Sacramento a large bank closed its doors. The continued depression, plus the fact that a large percentage of the bank's funds had been loaned out on farm loans, were the principal reasons. In the farm industry particularly disastrous prices now prevail, causing the bank, and its four branches, to be unable to meet withdrawals of funds that had reached large proportions. This failure caused the typical panic and upon the other banks in the immediate vicinity. Money was being rushed to the state capital by airplanes and armored cars yesterday to help the other banks satisfy the demands of depositors, large numbers of whom gathered in front of these institutions. The other banks will probably ride out the storm and before long the people will be bringing their money back again for deposit. Fear is a driving force that knows no reason under such circumstances. While California has by no means escaped the depression, occurrences such as that in Sacramento yesterday have been remarkably scarce in this state. California will probably never have to go through so stringent a time as this again for many years. The present situation has shown one thing most clearly, however, and that is that the banks of California are safe. The per capita loss from bank failures in California during the depression compares very favorably with that of other states. Our banking laws, branded as too conservative by some people, have certainly justified themselves as to their protection of depositors.. Our bankers and their institutions have often not played very courageous part in meeting the problems of the depression. The leadership which a bewildered business world expected from the financiers has frequently not been forthcoming, but in this state, at leart, it may be said with pride that the banks have kept in their mind their primary responsibility, which is to their depositors. When the Winfield banks failed in Nevada it was because they were tied up with the cattle industry and when that industry hit the bottom the banks could not stand the strain of the decrease in bank assets which accompanied the decline. Now the California National Bank, and it subsidiaries and branches, makes the announcement that "owing to agricultural and general economic conditions over a period of the last three years," it has found it necessary to ask the governmental authorities to take charge. The localities where such events take place appear to be those whose entire welfare is tied up in one industry or a group of related industries. When the depression knocks the props out from under the industries, the financial institutions of the city follow. When the industries shut down on operations, a large portion of the residents of the city have their income shut off, the merchants suffereverybody suffers. This is one time when Santa Cruz is probably thankful that there is no great industry which dominates the life of this community. We have large number of workers who are now unemployed because nearby industries have ceased operations. The number of vacant stores in this community, left in that condition because merchants have been unable to carry on, is remarkably small, when compared with what is true in other cities. Our city feels the pinch, certainly, but life and ordinary activity are going on in Santa Cruz about as usual. It will be long time before there are any bank panics in this town. Indeed, the failure of yesterday is reported as the first in the history Sacramento banks. Economic conditions are better here than in Sacramento.
7.January 22, 1933The Charlotte NewsCharlotte, NC
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Close Sacramento Banks With $22,000,000 Assets
San Francisco, Jan Heavy withdrawals that neared the proportions of serious run caused state and federal bank ex aminers order the closing of two banks with total combined assets of $22,000,000 today. The California National and the California Trust and Savings an affiliate were the institutions affected by the orders
8.January 22, 1933The Modesto BeeModesto, CA
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$15,000,000 RUSHED TO CAPITAL AS BANKS CLOSE
California National And California Trust And Savings Fail To Open
FUNDS WILL PROTECT OTHERS AGAINST RUN Action Due To Heavy Withdrawals; Reorganization Plans Under Way
SACRAMENTO, Jan. Nearly fifteen dollars in the largest monmade Far was to Sacramento late to-day by airplane protect banks against threatened run. Excited by news the California California Trust Savings frenzied depositors flocked other banks started withdrawing officials at the institutions from bolster the "cash San to car made the ninety-mile trip carrying two million dollars hours, from the Federal Reserve Bank the Capitol Shortly for the Capitol National, and $10,000,000 the Bank of America for its branch here. Giannini Sends Funds Anticipating the possibility Giannini, head the Bank keep the banks night meet mands all their money Other banks planned follow the same officers they ready handle any kind of
TWO BANKS CLOSE McClatchy Newspaper Wire California National Bank, one oldest financial institutions the West, failed open its doors The California Trust and Savings Bank, state institution, likewise failed to Heavy withdrawals during the past several days reason the closing directors banks met this morning and issued statement which expressed the hope that of reorganization can worked out co-operation of depositors, at The California National Bank has about commercial while California Trust and Savings Bank approximately 36,000 accounts. Branch banks in North Sacramento, were affected by the closing
The California Trust and Savings Bank was closed by EdRainey, state banks. the ing in San Francisco, Rainey said: Rainey's Statement "The California Trust Savings Bank Sacramento taken by the banks following meeting of the board of directors which adopted closing the bank. (This meeting held in San Francisco last night.) Heavy withdrawals covering period several and culminating Friday what virtusilent run, brought the bank's the legal quirements, and the closing followed. superintendent of banks will give sympathetic consideration for reorganization, which already have proposed. Directors' The statement issued by the board of directors follows: "Owing to agricultural and genconditions over of the last three years, California National Bank of Sacramento the California Trust and have met with recent and, accordingly, the directors, the tection depositors, decided the and state authorities to take charge of the institutions. hoped that plan of with the of deposipresident of the Clearing House Association, issued statement which gave that the other banks Sacramento have sufficient cash on hand for all His clearing house banks Sacramento fully the responsibility occasioned closing of the California National Bank the California Trust and Bank and are prepared take that need not disturb condi-
Sufficient Cash "Sufficient cash available care requirements and need concern ability the banks to handle situation. behooves all of us to recogthe the and to co-operate to the extent that (See TWO, Page Col. CLOUDY
9.January 23, 1933Appeal-DemocratMarysville, CA
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SAN Jan. 23, of the failure of the California National bank Sacramento were felt in other northern California towns today when five small banks were closed on orders of their boards of tors.
The Bank of Willows, the Colusa County Bank, Bank of Courtland, Bank of Folsom and the Fair Oaks bank failed to their open doors for business today, according to word received by the state bank examiner's office here. Heavy withdrawals which followed news the California National's failure the direct cause of closing of the banks. The action was taken after the boards had conferred state banking officials who agreed would best close banks before runs might develop. State banking officials did not look upon the situation with alarm. They pointed out that after the first flare of hysteria in Sacramento, when the California depositors in other banks quieted down and deposits exceeded withdrawals.
10.January 23, 1933The Chico EnterpriseChico, CA
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Five Banks in Valley Closed By Withdrawals
Ed Rainey. state superintendent of banks, announced today that five Sacramento Valley banks closed their doors today because of heavy withdrawals. due to closing of other banks in the district. The banks which failed to open for business today were the Bank of Courtland, the Colusa State Bank, the Bank of Folsom, the Bank of Willows and the Fair Oaks Bank. Saturday the California National Bank California Trust and Savings Bank of Sacramento among the oldest banking institutions of the state, closed their doors. Bank officers at Willows blamed frozen assets added to heavy withdrawals. The bank was established in 1882. Of the five towns where banks closed today. only Willows and Colusa have further banking facilities. There is also in Willows the Bank of America branch and the First National Bank of Willows. In Colusa there remained, Rainey said, First Savings Bank. Rainey said closing of the banks was more protective measure to safeguard deposits. Ht said he did not regard the situation "critical" and after telephonic survey of the situation Sacramento said banking conditions theer were "favorable.'
According to reports received this afternoon, was the Colusa County Bank and not Colusa State Bank that closed its doors this morning following run.
11.January 23, 1933The Corning Daily ObserverCorning, CA
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RE-ORGANIZATION OF SACTO. BANK IS NOW PLANNED
Reorganization plans were to be discussed at a meeting today of the board of directors of the California National Bank, which, with its subsidiary, the California Trust and Savings Bank, failed to open for business Saturday.
An inventory of the institution's assets now under way by twelve state and federal bank examiners will require two weeks to complete, Edward Rainey, State Superintendent of Banks, announced. At the end of that time, he said. a receiver for the state bank will be appointed. The national bank receiver will be named by the Comptroller of Currency at Washington. In the meantime, industrial and commercial interests with funds frozen behind the closed doors of the California National were assured of the utmost credit consideration by other large Sacramento banks, which opened at 8 a. m., today to accommodate customers. With $13,000,000 in currency rushed here from the Federal Reserve Bank at San Francisco the banks were prepared today to handle any emergency which might arise. Fears of a run were dispelled, howver, when a checkup the close of business Saturday night revealed deposits during the day had exceeded the withdrawals caused by excitement over the closing of the Callfornia National.
12.January 23, 1933The Sacramento UnionSacramento, CA
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BANK HEADS SESSION
Examiners Work on Affairs California National
(Continued from Page One) state bank. The national bank ceiver will be appointed by the comptroller of currency in Washington. Rainey will probably here today to the situation and to sit in at the directors' meet-
Lowell, chief examiner in charge of the state force, said depositors would not know what portion of their claims would be covered by assets until the inventory had been finished and the claims filed in federal court. Lengthy Process
This would be lengthy process, he said, because of the large number of depositors, 9000 commercial accounts and 36,000 savings counts. The receiver to be appointed will "not necessarily" be bankruptcy receiver, Lowell stated. He explained that no hard and fast rule could be cited for the status of checks drawn on the California National. If they cleared through the clearing house were transit the checks would fall back on their makers for redemption. Labor Preference Labor checks, of course, have preference, according to Francis H. Whyte, deputy labor commissioner. They fall back on their makers the same other checks. Approximately $1,500,000 in public funds in the closed banks are secured by bonds. They will be paid as soon the receiver takes charge. State departmental funds total about of which only approximately $36,000 is ered bonds. The $76,000 balance will be tied the same private deposits. However, Rolland Vandegrift, state finance director, stated this would in way complicate state finances. The largest part the $76,000 belongs to the state highway revolving fund. This will be immediately replenished by gas tax collections, Vandegrift said.
All Funds Tied Pending appointment of the ceiver, all funds in the banks will be tied savings, trust, commercial and public. Discussing the situation, the aminers had this want to have the town settle down to routine the knowledge that the other three banks good shape and that all speed being made hasten examination the affairs of the closed banks."
Federals Quiet E. Price, federal examiner charge of the national bank, stated he had no make this time and that the inventory of the national bank's affairs must be completed before any other step taken. John Calkins, of the Federal Reserve bank San
13.January 26, 1933Tribune-ProgressNorth Sacramento, CA
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CAPITAL CITY BRIEFS
Depositors of Bank Form Organization Depositors of the California National Bank have formed protective association to delve into reasons for the failure of the bank and Superior Judge Martin I, Welsh has been named temporary chairman. A thorough investigation is to be made.
K. of C. to Honor Veteran Members Four veterans of the Knights of Columbus, Sacramento Council No. 953, will be honored tonight in an "honorary members cere. monial." This is conferred upon members who have reached the age of 65 years and having been a member for twenty-five years. Recipients will be Supervisor Donald McDougal, John McGrath, Captain John Stephenson and John McMahon
Callahan Memorial Is Proposed The South Side Improvement Club is sponsoring a movement to erect a memorial to the late Robert E. Callahan, Sacramento county supervisor. John L. Boitano is in charge of the collection of funds. Already a substantial amount has been pledged.
New U. S. Attorney Sworn In
Emmett J. Peterson, recently named assistant United States district attorney, received the oath of office this week.
14.January 26, 1933Pasadena Star-NewsPasadena, CA
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The question arises frequently State and Naamong legislators, tional, to whether the individual as in the of legislator legislative duties should always follow the sentiment expressed by district in the latest election which there was an expression sentiment, whether he should his best judgment upon the measure or measures the time in the legislative body. is easily conceivable an expresion of sentiment made legislative congressional district by the voters last November might not reflect their sentiment in January. Conditions and with changing condichange tions changing opinions attitudes oftentimes are justified. Hence the legislator, it would seem, should have considerable leeway making his decision based upon conditions they exist at the time he called upon vote upon any given measure. There are times and occasions when the local or district view on given subject might clash with the general interest larger State or the Nation. Surely should be within the unquestioned and unquestionable province of the legislator to upon his own be guided by his own judgment in as this. Generally speaking, however, every legislator naturally should reflect faithfully the known and expressed wishes of own constituents.
The fate of the Philippines soon will lie largely with the Filipinos themselves. The wisdom of grantindependence the islands to be demonstrated. There been great deal of cynicism and sarcasm in certain quarters about the inconsistency of the United States in withholding from the islanders until autonomy they "ready independence.' The inconsistency of this more apparent than real. seems wonderful for the United States withdraw from the Philipand let the shape pines their destiny. But, practically, this to be cruel and may prove disastrous the islands. There is merit the contention that the should be prepared Filipinos thoroughly for self-government they undertake tremendous task of governing themselves themselves domestic disorder within against from withand against will be danger of There great is, the islands may be with civil strife soon after the rent States withdraws its proUnited hand. Furthermore, there tecting of the islands be great danger attacked and by being Oriental There some power. to the granting of much more to the than dependence Philippines the surface. President appears vindicated, in time. Hoover may for his veto of the independence proposal.
NEED CALM REASON AS TO BANKS
Closing of the California tional Bank in Sacramento was extremely unfortunate, particularly this juncture. This was the est bank west of St. Louis, romantic institution whose activities ran back to the days of the Argothe days when the hornyhanded miner brought in his golddust and had weighed on the scales of this old bank. The California National was regarded as one of the strongest banks in the state. became the victim of whispering campaign, however, and its depositors stampeded. The effect has been quite staggering, for the throughout the Sacramento Valley. Other banks are being put to severe test. It cannot foreseen how far the frenzy will But the banking interests of Sacramento, strongly aided from San Francisco and other parts of the state, are facing the situation with courage and From present indications they will weather the storm. The Sacramento newspapers are urging calmness and restraint on the part of depositors. The closing of this great bank demonstrates the folly of extreme and groundless fear. Nobody has been benefited by the unnecessary on this bank. Many have been by And the psychologic effect extremely bad. Fear is phantom that spreads its grisly features far and fast. Say something good of banking institution, and the word travels with leaden feet. But whisper suspicion, and the rumor travels on wings of lightning. to be hoped that the people of California will maintain their poise and their sound judgment will not be swept off their feet vague, unreasoning and insubstantial fears.
Grand opera stars usually are temperamental. was indeed dramatic scene and pitiful sode when great operatic appeared for the last time in public major role. To the sensitive heart of temperamental an experience like that is indeed heartrending. It is true of men in all great activities. When the time comes for retirement. it is the hand of tragedy that writes the final word in the book activities of an active The saddest time in the life of busy is when he must relinquish his activities and retire.
California has lamentable lose of water. This is illustrated in the heavy rains this winter. high percentage of all precipitation runs to the sea and The remedy lies in the great system of storage dams which eventually this state will have to build. to catch and impound surplus water in all the rivers. canyons and gorges through which surplus water runs to wanton waste. is none too soon to begin great system of this kind.
15.February 4, 1933Porterville RecorderPorterville, CA
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$6.00
This paper will not intentionally publish person, any and item if reflecting any erroneously publication upon brought the reputation to its attention standing it will do any all within its power proper correction. the In the event of an error sibility in any limited to the published amount charged in this for paper, adpubMshers will in which error occurred. the divertisement appears more than vertisement once, this limited responsibility shall apply only to the first insertion. THE EVENING RECORDER reserves the print right any to reject copy that advertising in any copy way which simnalso will not lates reading as advertising BANKS ARE SOUND, NO NEED FOR FEAR
Closing of the California National Bank in Sacramento was extremely unfortunate, particularly at this juncture. This was the oldest bank west of St. Louis, a romantic institution whose activities ran back to the days of the Argonauts-to the days when the horney-handed miner brought in his gold-dust and had it weighed on the scales of this old bank. The California National was regarded as one of the strongest banks in the state. It became the victim of a whispering campaign, however, and its depositors stampeded. The effect has been quite staggering, for the time-being, throughout the Sacramento valley. Other banks are being put to a severe test. It cannot be foreseen how far the frenzy will run. But the banking interests of Sacramento, strongly aided from San Francisco and other parts of the state, are facing the situation with courage and resourcefulness. From present indications they will weather the storm. The Sacramento newspapers are urging calmness and restraint on the part of depositors. The closing of this great bank demonstrates the folly of extreme and groundless fear. Nobody has been benefited by the unnecessary run on this bank. Many have been injured by it. And the psychologic effect is extremely bad. Fear is a phantom that spreads its grisly features far and fast. Say something good of a banking institution, and the word travels with leaden feet. But whisper a suspicion, and the rumor travels on wings of lightning. It is to be hoped that the people of California will maintain their poise and their sound judgment and will not be swept off their feet by vague, unreasoning and insubstantial fears.
Considerable discussion ensues, from time to time, of the matter of laws enacted or to be enacted by legislative bodies. There is one question much more vital to the public welfare that all the people well may consider all the time-that is, proper respect for and implicit obedience to all laws on the part of all the people. If this obtained throughout the country at all times, troit perts Tigers as the the United States would become indeed a real Utopia. But there the tendency is alarmingly the other way-to evade or to violate law with impunity.
Fear is the worst enemy which the country has to fight today. It is frenzied fear prolonged through the last three years which has been vast harm in retarding the return of normal economic conditions. It is fear that is endangering banks-that is, fear among depositors. These are groundless fears. Banking is on a sound basis in this state and in other states. If the people themselves will support the banks and not give way to unreasoning and unreasonable fear, all will be well.
16.March 15, 1933The Sacramento BeeSacramento, CA
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Contra Costa County as head the Rhodes Is Chosen. Sheriff "Dusty" Rhodes Madera County was elected president Jewell, under sheriff Angeles County, named Fresno chosen the ciation's 1934 convention city, winning over Santa Cruz, when the vote this morning luncheon boat ride the river steamer Delta King day concludes convention. Fitts At Session. Yesterday's sessions, held the tel featured appearance Fitts. of tenant Governor other speakers, including Roger Green of the state division of criminal identification. Hart Schrader of Arbuckle. con the at The sheriffs and their wives night attended the annual banquet the organization, held in Elks Temple was explained the securities will be sold they can least their face value, but desired to clear away legal obstructions that tion the assets present themselves than the made the sales would be pay against which the securities are The sales subject approval federal comptroller the currency in Gerald Johnson Sacramento attorney counsel for the receiver, prepared To Sell Securities. One petition seeks dispose having face value $6,354,938.81 and the books This block bonds and warrants unpledged against value and car$1,399,042.03 with the books Accounts depositors the California secured bonds Bonds For Loan. largest block pledged bonds comprise issues. the the Corporation to the California NationThese bonds value of $1,844,200 books The of bills still payable to the not The include curities numerous railroads the country, reclamation districts, improvement districts utilities, private corporations and public service corporations Other Pledged Bonds The other bonds the pledged listed Pledged River Flood District account State Park bonds, par, $65,000 book Pledged with Carmichael District City of Sacramento School District book figure, $10,621.93 Pledged to Federal bills Bank San Francisco. pay. (Continued on Page Five.)
17.May 16, 1933The CalifornianSalinas, CA
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Closed Bank Raps Rainey
Sacramento Banker Says State Acted Hastily In Dooming His Firm
SACRAMENTO, May 16 (U.P.) Charges that the state banking department acted "hastily" and precipitated the closing of the California Trust and Savings Bank and the California National Bank were under consideration today by the Sacramento county grand jury following testimony of Fred W. Kiesel, bank president. In appearing before the grand jury to deny he withdrew any of his own funds from the bank or that there were any irregularities, Kiesel said the financial institutions could have "weathered the storm" had Edward Rainey, state superintendent of banks, allowed the Trust and Savings Bank to remain open. Looking back to the closing of one of Northern California's largest financial institutions, Kiesel declared he had no knowledge that the bank's funds had fallen below the "margin of safety" or where Rainey learned of withdrawals which prompted closing of the bank's doors. Kiesel was reported as having said he felt no concern over these "seasonal" withdrawals. The bank president also criticised A. Q. Robison, deputy in Rainey's office, who had been acting as bank receiver. Kiesel declared Robison was only 29 years old and unfamiliar with valley agricultural affairs so that he was not in a position to speak authoritatively in saying that reorganization of the banks would be "impossible."
18.May 17, 1933The Sacramento BeeSacramento, CA
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Bank Opening Backed By Chamber Committee
The executive committee of the Sacramento Chamber of to-day statement in which it pledged the civic organization "to do everything within its power to bring about the opening of bank to function and render service such as performed by the California National and California Trust and Savings banks. Earl O. Schnetz, president of chamber. contacted other members of the committee to ascertain their views about the bank tion and the statement represented their unanimous opinion. doesn't say 100 per cent on the ket price was when boughtis
Certification Questioned "Has the certification Hart bonds ever been approved by the superintendent banks asked Guy P. Johnson, assistant district attorney "No, this not the latest, but this list.' declared: "If your department can tell how you are going to pay 100 cents on the dollar out that $160,000 investment in Hart bonds. you can beat to turn over the bonds which belongs to the estate Adams
Not Worth 15 Cents. "They be are not worth 15 cents the dollar to-day district attorney replied. "These Hart Brothers bonds first mortgage on the property the Land Hotel at Tenth and and they have held up think. than any other bonds that character, Adams said. "There are lot of hungry heirs around this county when they come to eating Hart bonds, can tell you that," replied McAllister. Yearly Profit Shown. Adams revealed the average profits of the trust department over the last five years have been $30,000 or $40,000 yearly, with original investment of The assets were said to have been increased through the addition of profits from the trust funds Adams that prior to January 21st he had no intimation the bank might close.
19.June 7, 1933The Sacramento UnionSacramento, CA
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Prosecutor Silent When Discrepancies in Testimony Shown
$342,000 in Bonds Withdrawn for Bank Head's Estate After Closing, Receiver Says as Surprise Witness
President Fred Kiesel of the defunct California National and California Trust and Savings banks will be called back before the grand jury Monday to "explain" apparently contradictory testimony he gave the jury about the transfer of $342,000 of bonds of the Kiesel estate to Ogden, Utah. "Let the public be the judge," commented District Attorney Neil R. McAllister, when asked if there had been evidence of untruthful testimony.
It was disclosed yesterday by A. Robison, state deputy superintendent of banks, that Kiesel brought pressure to bear and obtained release of $342,000 in trust securities for the Kiesel estate at Ogden, Utah. Kiesel's previous statement to the grand jury was he had not shipped to Ogden. money "And you never transferred anything from Sacramento anywhere else was the direct question put to him. the contrary," answered Kiesel. brought capital from Ogden over here." Grand jurors had a long discussion yesterday over the discrepancy in the testimony. Foreman A. W. Sweet said "everything possible is to be brought out when Kiesel returned.
Jurors Wait to Hear Kiesel Before Deciding What to Do want to find out what was meant in statements now apparently proven false," said Sweet. The jurors discussed what action they could take asked was understood McAllister told them the was elastic it would be difficult to do anything about beyond bringing Kiesel to realize statements were incorrect. McAllister was asked by the jurors just what an oath before jury to tell the truth meant. They said he told them from the legal point of view it was difficult to determine when the witness was outside his oath. The jurors decided that after hearing Kiesel they would make up what action to take, when they make their report on the entire bank investigation. It is likely their report, among other things, will ask for stricter enforcement of banking laws by the state. McAllister said he "refused to comment" on what he would do about the discrepancy in testimony, or what he would do to force the truth in the future. "How can you make witnesses tell the truth he was asked. can't-apparently. It is difficult to make witnesses always tell the truth." He was asked: weapons have you to force the truth before the grand "I've never so charged any person since I've been in office. really don't know the extent of the weapons you refer "Just to what end is this hearing tending can draw your own conclusions.' "Do you think that Mr. Kiesel's testimony constitutes refuse to answer." "Have any untruths been given the grand jury, particularly as regards Mr. Kiesel's testimony? haven't yet had a chance to check against Mr. Kiesel's
20.August 23, 1933The San Francisco ExaminerSan Francisco, CA
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Stockholders Sued by Closed Bank Receiver Suit to enforce stockholders' liability in the closed California National Bank of Sacramento was filed by H. W. Douglas, receiver, in Federal Court today against Joseph L. Steffens of Monterey County and William P. Burnham of San Francisco. The receiver seeks to recover $15,000 from Steffens and $10,800 from Burnham, the of bank stock owned by them, plus accrued interest, since June 24 last.
21.August 28, 1933The Sacramento BeeSacramento, CA
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NEW 'RUN' STARTS ON BANK AFTER FIRST DIVIDEND
Depositors Crowd Defunct Institution For Initial Payment
"Blue Monday" sunny Monday for 8,000 depositors of the closed California National Distribution of Initial liquidating of the institution started at 10 o'clock this morning, with steady stream of depositors seeking their 20 per cent share of $1,500,000 Nearly 500 depositors crowded the bank building as soon as the doors opened and the only who happy who thought the California Trust and Savings Bank likewise paying Women There At 7:45 Two women were at the entrance the bank early An fainted in the doorway 2414 Montgomery Way, proprietor the Washington Wood Coal Yard, was the first An immediate investigation of check reported in favor for and Douglass, large receiver the bank the 1933 pack Cali- sented him Mrs. Minnie fornia cling peaches asked in 4442 Seventh Avenue, was telegram sent to-day by Congress- ond. man Frank Buck Dr. Fifteen Employed. Tolley special administrator of the Fifteen persons have temporary agricultural adjustment adminisassist Douglass in tration San Francisco. the distribution the checks. "Break" Reported. Robison, receiver of the telegram hastened California Trust and Savings Bank, Buck's was by discloses for reports of between plication the RFC for loan resentatives of co-operative help that institution pay initial dependent canning interests and liquidating dividend deposithe peach board comtors completion, Koster, Robert application expected to Alex Johnson, secre filed in about ten days. the California Farm Bureau Federation the board had Long Time down 15,180,000 cases applied for The receiver declares months by about canners, the will be the required issue checks maximum pack 10,000,000 cases and the when loan approved specified industry agreement Twenty thousand Hits Discrimination. the state bank claims filed
His reads: strongly protest reported disagainst smaller ners pack by fornia Cling Peach Allocation Committee urge that you immediwith ward preventing such unfair practice Independent co-operative executives to the limit agreement me they have been allotted per cent their (Continued on Page 12, Column
22.September 29, 1933Free LanceHollister, CA
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Bank Receiver Shows No Need Of Cash by Some
There lot of people in Sacramoney Nearly a month ago H. W Douglass receiver 01 the closed CaliforNational bank announced he the initial dividend from the institution total For 8.000 checks senting 20 per cent of the deposits the bank customer To date according to Douglass
23.November 22, 1933Nevada State JournalReno, NV
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California Bank Grand Jury
SACRAMENTO, Calif., Nov. (U.P.)-The federal grand jury here today indicted Fred W. Kiesel, president, and A. B. Carter, vice president and cashier, of the closed California National bank, on charges of making false reports to the United States comptroller of currency on the bank's condition They were also charged with conspiracy to make such reports. Warrants for their arrest were issued and bond was placed at $10,000 each. Attorneys for the two were ready to post the bonds to keep the men out of custody.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
