Accommodated withdrawals, Borrowed from banks or large institutions, Fed/other loan, Public signal of financial health, Full suspension, Books examined
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
Multiple articles (Jan 21–23, 1933) report a 'silent run' and heavy withdrawals that brought reserves below legal requirements; state and federal examiners took charge, the state superintendent ordered the California Trust & Savings closed and receivers were to be appointed. The bank did not resume normal operations and was liquidated (receiver actions and later dividends reported). Causes cited include agricultural/local economic losses and rumor/whispering that precipitated withdrawals; suspension was effected by state action after the run.
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 withdrawals precipitated by agricultural and general economic conditions over the prior three years and by whispering/rumors leading depositors to withdraw funds (described as a 'silent run').
Measures
Other banks and the Federal Reserve rushed currency (airplanes and armored cars) to Sacramento; directors sought reorganization; state and federal examiners took charge of assets.
Newspaper Excerpt
Heavy withdrawals covering period several days and culminating Friday what was virtually a 'silent run' brought the bank's reserves below the legal requirements.
Source
newspapers
4.January 21, 1933Suspension
Cause
Government Action
Cause Details
State superintendent of banks ordered closure/suspension after the bank's reserves fell below legal requirements following heavy withdrawals; examiners placed the institutions in charge for inventory/reorganization.
Newspaper Excerpt
The California National Bank ... failed to open for business today. Federal and State examiners took charge of the bank and started checking its assets.
Source
newspapers
5.January 23, 1933Receivership
Newspaper Excerpt
At the end of that time ... receiver for the State bank will be appointed. The National bank receiver will be named by the comptroller of the currency in Washington. (inventory will require two weeks to complete).Reorganization plans were to be discussed and examiners were inventorying assets.Receiver references appear in Jan. 23 articles.
Source
newspapers
6.August 28, 1933Other
Newspaper Excerpt
Distribution of initial liquidating dividend ... with steady stream of depositors seeking their 20 per cent share ... (initial dividend and liquidation activity).
Source
newspapers
Newspaper Articles (25)
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, 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.
3.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
4.January 22, 1933Danville Register and BeeDanville, VA
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Two Old Calif. Banks To Open Their Doors
Cal., Jan. The National ramento and its subsidiary, the Callfornia Trust and Savings the oldest banking California, failed open for busitoday. Branches of the California tional bank in North Sacramento, Ione, and Arbuckle also mained closed. Federal and state examiners took charge the bank checkassets. Directors attributed closing heavy withdrawals. Airplanes armored motor cars rushed $13,000,000 in cash from San Francisco to Sacramento to fortify the position other banks subjected, runs when news of the closing became Approximately 9,000 commercial and 36,000 savings accounts were tied The California National's statement conditions December 31, 1932, showed sources and those of the California Trust and Savings Edward Rainey, state superintendof banks, ordered the California Trust and closed. He said the last several days were "virtually silent run which brough bank's low the legal requirement. Charles Johnson, state treasurer, the state has deposited the closed bank, 000 of which secured by government The California National the merorganization of the old bank D. Mills foundin 1849 and the California tional, established in 1882.
5.January 22, 1933Modesto News-HeraldModesto, CA
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RUSHED TO CAPITAL AS BANKS CLOSE
California National And California Trust And Savings Fail To Open
FUNDS WILL PROTECT OTHERS AGAINST RUN
Due To Heavy WithAction drawals; Reorganization Plans Under Way
Nearly fifteen dollars of the largest monmade the rushed to SacraFar West, was late day by armored mento banks airplane against the CaliforExcited news California Trust and Bank closing, frenzied the and other started withdrawing counts Immediately, officials at the from inbolster the "cash to on hand armored car made the ninetrip one million dollars Reserve Bank the Federal National Shortly the Capitol another arrived terward, the Capitol National, for $10,000,000 Bank brought of America for Glannini Sends Funds possibility of serious the Bank keep the banks here the mands Other banks their money follow the planned their officers insisting cedure they sound ready to handle any kind of
TWO BANKS CLOSE Newspaper Wire By California National Bank, one oldest financial institutions the West, failed open its doors business and Savings state likewise Bank, failed withdrawals during the Heavy the reason for the closing The directors of the banks board this morning and Issued which expressed statement the that reorganihope worked out with the zation of depositors, at California National Bank The about 9900 the California Trust counts, while Savings Bank has approxiand mately accounts Branch banks North Sacraand Arbuckle also were affected by the closing The California Trust and Savings Bank closed by ward Rainey, state of banks the closing in San Francisco, Rainey said. Statement The California Trust and SavBank taken by the superintendent of banks following of the board of directors which resolution adopted closing the bank (This meeting he'd in San Francisco Heavy withdrawals covering period several days and culminating Friday what was silent run, brought the banks the legal quirements, and the closing lowed superintendent of banks will give sympathetic plans for reorganization which already have been proposed.' Directors' Statement The statement issued by the directors follows Owing to corditions over of the last three years, California National Bank Sacramento the California Trust and Savings Bank have met with heavy withdrav and, cordingly the directors, tection depositors, decided the and to take charge of the institutions hoped that plan of with the co-operation of deposi Hilliard Welch, president the Sacramento House sociation which gave that the other banks sufficient cash on hand for His statement The clearing house banks Sacramento ale fully aware responsibility occasioned closing of the California National Bank the California Trust Bank and are that need not disturb conditions
Sufficient Cash cash available care requirements and one need concern ability the banks to handle situation behooves all of to recogthe seriousness co-operate to the extent that
(See TWO, Page 9, Col. 3)
6.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
7.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.
8.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.
9.January 23, 1933Appeal-DemocratMarysville, CA
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ARRANGED
SACRAMENTO, Jan. 23, Reorganization plans were to discussed meeting today of the board of directors of the California National bank, which, with its subsidiary, the California Trust and Savings Banks, failed to open for business Saturday. An inventory of the institutoin's assets now under by twelve way state and federal bank examiners will require two weeks to com plete, Edward Rainey, state perintendent of banks, At the end of that time, he said, receiver for the State bank will be appointed. The National bank receiver will be named by the comptroller of at Washcurrency ington. 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 m. today to accommodate custom-
With in currency rushed here from the Federal Reserve Bank at San Francisco, the banks were prepared today handle any which might emergency arise. Fears of run were dispelled, however, when checkup at the close of business Saturday night revealed deposits during the day had exceeded the withdrawals caused by excitement over the closof the California
10.January 23, 1933Santa Maria TimesSanta Maria, CA
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More Close Doors
SAN Jan. Reverberations of the failure of the California National bank in Sacramento were felt in other northern California towns today when five small banks were closed on orders of their boards directors. The Bank of Willows, Bank of Courtland Bank Folsom. the Fair Oaks and the Colusa County bank failed to open their doors for business today. according to word received by the state bank examiner's office Boards directors of the five banks felt that their institutions were incapable of withstanding the threats of runs. Heavy withdrawwhich followed news of the California National's failure were the direct cause closing the banks. The action was taken after the boards had conferred with state banking officials who agreed would be best to close the banks beruns might develop.
11.January 23, 1933Imperial Valley PressEl Centro, CA
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SAN Jan. U.P.) of the failure California National bank Sacramento were felt other northern California towns today when five closed orders their boards of directors. The Banks Willows, Bank Courtland, Bank Folsom, the Fair Oaks bank and Colura County bank failed to open their doors business today, according word received the state bank examiner's office here. Boards directors of five banks felt that their incapable of threats Heavy withdrawals which followed of the California National's failure cause closing the banks. The action taken the boards had conferred with state banking officials agreed would the banks fore might Total the institutions not available here. State banking officials did look upon with alarm. They pointed out that after the first Sacramento, when California National closed, depositors other banks quieted down and deposits exceeded withdrawals. "Closing of the five small banks today merely reflex the situation Sacramento,' ward Rainey, state bank examin-
12.January 23, 1933Imperial Valley PressEl Centro, CA
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BANKS
Cal., Jan. plans were to discussed meeting today board directors the California National bank, which with its subsidiary, the California Trust and Savings bank, failed to open for business Saturday An inventory the institution's assets now under way by state and federal bank examiners will quire weeks to complete, Rainey state superintendent banks, announced. At the end that time, he receiver the state bank will appointThe national bank receiver be named by the comptroller Washington. In the meantime, industrial and interests with funds frozen behind closed doors of the California National were sured the utmost credit consideration other large Sacramento banks, which opened at today to accommodate With in currency rushhere from Federal Reserve bank San Francisco the banks handle emergency which might Fears of were dispelled, when check up the close business Saturday night revealed deposits during the day had ceeded the caused by excitement over the closing of the California National.
13.January 23, 1933The Sacramento UnionSacramento, CA
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DIRECTORS OF BANKS TO AID CLOSED BANK BUSINESS LIFE MEET TODAY SACRAMENTO
Examiners Work Affairs on California National
Continuance of Assured in City
IS PLANNED
Inventory Will Take Weeks, Institutions Plan at Opening Rainey States Today
Directors of the California National bank will meet today to consider reorganization plan be suggested by bank examiners working on the closed institution's affairs, was stated last night Fred W. Kiesel, president of by the institution. This will include consideration the position of the California Trust and Savings bank, sidiary institution, whose stock held trust for the national bank stockholders.
Staff Works All Day staff of examiners, eight from the state and four from the federal worked through the entire day yesterday on the affairs of the institution, which failed to open for business Saturday. Edward Rainey, state superintendent of banks, said would two weeks until the inventory being made by the examiners Name Receiver At the end of that time, he said, he will appoint receiver for the page column
Sacramento industrial and mercial interests with funds frozen behind the closed doors of the California National bank will receive utmost credit consideration from the three other large local banks insure continuance of normal business and payrolls. This was indicated last night in statements by the heads of the institutions as they prepared open at today, an hour earlier than usual. In their vaults will be the largest of cash they have had hand in of which years, here from San Francisco Saturday.
To Get New Money
As matter of fact, the banks to take in money accounts than will be paid President Alden Anderson of the Capital National bank stated bank actually had more money than the start of business urday morning. stated study over the week-end had convinced
(Continued column
14.January 24, 1933Pasadena Star-NewsPasadena, CA
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SACRAMENTO BANKERS SAY DEPOSITS STEADY
COURT ORDERS SLASH IN M'CORMICK BUDGET
Substantial Amounts Incompetent Heir to Big Estate Receipts of Follows Closing Incidents Given $103,000 for Half Year
SACRAMENTO. Jan. ceipt deposits Sacramento banks ported federal examiners constate and tinued today list the assets two closed Sacramento banks and of five other closed institutions in nearby valley towns. directors of the CallMeanwhile fornia National Bank of Sacramento California Trust and Savand the of Sacramento, which ings Bank business Saturfailed to open for day. resumed their discussion of organization plans. "Fear engendered by the closing the two Sacramento banks" was blamed State Bank Commisby sioner Edward Rainey for the closthe Bank of Wilyesterday of ing the lows, the Bank Bank of FolFair Oaks Bank. som and the Colusa County State Bank. Regarding the deposits made yesHilliard viceterday. of the Bank of America. president said his "took in three times much money it paid four as
Alden Anderson. president of the Capital National Bank, said that from the withdrawals yesterday Capital "were not quite as heavy and that deposits were
Jan. 24. order, the household of Stanley McCormick. son of Cyrus McCorwill be operated on "economy" basis this year. The court decreed that McCormick, who has been adjudged in competent, be advanced only $103.000 of his $40,000,000 estate during the first six months of 1933. The 1933 budget provides for disbursewhich be per cent of McCormick's $2,837,472 expenses in 1931.
15.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.
16.February 3, 1933Davis EnterpriseDavis, CA
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OUT OF CHAOS EMERGES STRENGTH
Closing of the California NationBank and the California Trust Savings Bank in Sacramento and the branches in North Sacramento, Loomis, Arbuckle and Ione most unfortunate cast pall of gloom over tens of thousands of northern California homes and business enterprises. caused near financial panic, during which there were runs on the other Sacramento banks, all which were successfully withstood. Again say It an unfortunand untimely that would never have occurred had the state bank examiners been strictly the job, looking faithfulafter the interests of the depositAffairs never have
17.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.
18.February 25, 1933Modesto News-HeraldModesto, CA
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Early Withdrawals From Capital City Bank Investigated SACRAMENTO, Feb. Douglass, for the California National Bank which closed its doors weeks ago, yesterday he was investigating the withdrawal nearly $3,500,000 in deposits during three weeks prior to the bank's suspensuch a large sum of money Douglass said, "some of course, must, have been taken out large sums." He said his investigation so far shows deposits were withdrawn in both "front door and back door" run and that, he discovers certain large depositors had "inside" information the bank was close and their funds, forward the information the comptroller currency in Washington, D. C.
19.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.)
20.May 11, 1933Tribune-ProgressNorth Sacramento, CA
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Grand Jury Will Quiz Closed Bank Receiver
SACRAMENTO-In compliance with the request of the Square Deal Depositors Association of the
A. W. Sweet, foreman of the grand jury, probably will disqualify himself and resign on account of suit filed this week by Edward Rainey for the bank to recover $5,000 on a promissory note, it was announced last night. defunct California National and California Trust and Savings Bnks, the Sacramento County grand jury will conduct an investigation into the banking situation starting at 10 o'clock tomorrow morning. Neil R. McAllister, district attorney, has summoned A. Q. Robinson. special deputy of the state banking department in charge of the liquidation of the savings bank, to explain to the inquisitorial body certain alleged withdrawals of money by directors and stockholders of the closed bank before it failed.
21.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."
22.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.
23.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.
24.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
25.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
