Bank of Madera - Madera, CA

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: June 23, 1893
Location: Madera, California (36.961, -120.061)

Metadata

Model: gpt-5-mini
Short Digest: 03b5d5ff

Response Measures

None

Description

The Bank of Madera failed to open June 23, 1893 with a door notice Temporarily suspended. Depositors will be paid in full. It then reopened July 1, 1893. Articles place the closing in the context of a wider wave of bank runs/closures in California, but there is no explicit description of a run on this specific bank; classification therefore is a suspension (no run) followed by reopening.

Events (2)

1. June 23, 1893 Suspension

Cause: Macro News
Cause Details: Closed amid a wider wave of bank failures and runs across California in late June 1893; articles describe currency runs and multiple banks failing, but no specific run on Bank of Madera is described.
Newspaper Excerpt: The Bank of Madera failed to open its doors this morning. A notice on the door read Temporarily suspended. Depositors will be paid in full.
Source: newspapers

2. July 1, 1893 Reopening

Newspaper Excerpt: The Bank of Madera, which suspended last week, reopened its doors this morning. -
Source: newspapers

Newspaper Articles (6)

1. June 24, 1893 The Morning Call San Francisco, CA

Article from The Morning Call, June 24, 1893

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Joseph rarily." officers of the bank Garner, are: viceThe president; H. H. Its diBrown. H. Kohl, cashier. Brinkpresident; O. Brown, H. rectors are: Joseph Hall. O. H. Kohl, W. J. J. meyer, L. J. D. W. Crandall, H. H. Garner, and John M. a Curtis, paid-up James. of $100,000, Flanders capital stock undivided surplus It has a fund of $25,000 and of profits of $7995. individual deposits $261,000; There were demand certificates of deposit, $98,470. last five days between paid $100,000 out over the and In $200,000 the in cash has been counter. the Farmers' Exchange doors The resulting run on in the closing of to its call for Bank the-excited depositors Moncaused the First National. their money at craze had subsided and it day night the that the bank had banks weathered failed was thought but when so many places on the storm, Los Angeles and other a run on the in Wednesday and Bank Thursday started in anew. First National this bank, backed as resources of are fully ample it they The are by men of wealth, for dollar. and be will but to pay depositors a short dollar time before it will reopen This its bank doors. and the Farmers' but careful Exchange policy pursued a liberal industries of deploring this have in supporting community, the misfortune the and principal the that citizens has befallen are them. not a similar craze been National operating would in have Los Had Angeles, found no the difficulty First in obtaining cash to meet all demands. on this A notable feature several of the irresponsible run bank has the last parties have been throughout that on the street five days discirculating stories deposibeen the bank's ability to pay draw his crediting and advising everybody been to openly tors, These fellows have effect. The money. by others, but to no could stop denounced craze was on, and nothing, seemingly. the 11. concedes the ability obligations. of Everybody National to meet all its no excitement First there is little or banks-the San and now streets. The other Bank of San on Bernardino the National and impregnable, Bernardino trouble is considered anticipated. and no Bank of the The further First National morning. One will reopen to-morrow said to-day leading again officers of the bank owing to a depletion "Weclosed,of course, by the steady run made have the cash on hand past. We could on us the money by would have inof raised for the week as this pressing the creditors and emof the bank, but of suffering what barrassment we flurry has bank volved a great the deal present concluded to of close the some- our there doors until a pated. The depositors being considof erably are amply over protected, a doliar of assets to one the liabilities." has been announced hundreds that of Since will it reopen for business congratulations bank have extended their c bank. Brown, the closing of citizens to Joseph them realize president that the ot the placing of Many bank of permanently and would inevitably it in the the bring hands to of many a receiver borrowers financial betrouble. DIEGO, if not disaster. June Confidence matters. is E. S. ing SAN rapidly restored of in the bank Cororado Beach he Babcock, president announced this morning Bank of that ComCompany, accept checks on National the at their will merce and on the First various lines of merchandise full face and value supplies for for carried books in of the tickets comwarehouse and lines. streetear pany's and motor making good of The the Bank Examiner the is Bank of Commerce, progress and in expects examining to conclude this after10 and as good noon. The plan for percentages-10 more in sixty and per adopted, cent ninety on it is and days-is resuming considered expected the as bank will be open Monday. new Merchants' depositors, National Bank, is enThe is crowded with transacted as usual. abling its which business WHATCOM, to be Wash., June 23.-The open NEW Bank did not doors Colambian National A notice OD the on doors this "Owing morning. to inability have to decided realize to securities stated: the directors Cashier Baker says the the close assets temporarily." of the bank are $226,000 and June liabilities $110,000. The Bank morning. of Madera A MADERA, its doors this "Temporarily failed to open doors stated: be paid in suspended. placard on the Depositors will de C. 23.-F. Long, Senator. full." SAN RAFAEL June has made an assignment Francisco. is a ex-State to Henry Pierce of June San 23. -The bank Specu- exoffering Los ANGELES, thing of the past. to buy citement lators who small have discount been store have displays found few notice offering customers. checks at a as every to accept third checks on all the closed banks at par. Examiner Wightman. to-day, National Bank San Francisco is exwho arrived condition from of the national banks banks that the both the Los cellent, says and that resume next week. The fund will probably Bank has a hand. reserve There Angeles National $100,000 on than paymore than to-day most ments was of have been at this more bank, deposits made, upon which and there the is a persistent run redeposits. steady President increase M. Railway H. of Sherman Company of the said Electric Bank toConsolidated suspension of the Pacific the road, was bank day in San that Francisco the would the owner not affect of only a small as the of the stock. special Chamber of session minority The passed Commerce, resolutions at a express- Angeles to-day, in the Los why and sound. ing implicit confidence giving figures to show they banks, are perfectly DEMOCRATS GAIN SOCIAL

2. June 24, 1893 The Herald Los Angeles, CA

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Article Text

Bank of Madera Closed. MADERA, Cal., June 23.-The bank of Madera failed to open doors this morning. A notice on the door read "Temporarily suspended. Depositors will be paid in fnll."

3. June 24, 1893 The Record-Union Sacramento, CA

Article from The Record-Union, June 24, 1893

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to suspend payment for the present. Should no satisfactory arrangement for an early continuance be affected the depositors will soon be paid in full, with interest, and the assets, if properly handled, will yield the shareholders $2,000,000 o 200 per cent. on the par value of the capital stock. The stock is held in wealthy hands representing millions of money and the liability is such on each shareholder as to prelude the possibility of loss to depositors. Our present liabilities outside of foreign capital and surplus are only about $1,600,000, and considerable of this is subject to reduction by offsets." PRESIDENT M'DONALD SHOCKED. NEW YORK, June 23.-Dr. R. H. McDonald, President of the Pacific Bank, who is in this city, was shocked when he heard to-day that his bank had closed. He said: "Though President of the bank, I have not been active in its management for some time. I am sufficiently familiar with the affairs of the institution, however, to feel confident that there is no chance for any of the depositors lose anything. I think it will liquidate for almost the amount of its capital and surplus, $1,000,000 and $800,000 respectively. The bank had gone into no speculative enterprises up to the time of my departure. Of the local business we had a fair percentage, with an extraordinary number of correspondents out in the country. It was heavy drafts made by country banks, I presume, which forced the suspension." " CONFIDENCE RESTORED AT SAN DIEGO SAN DIEGO, June 23.-Confidence is being rapidly restored intbank matters. E. S. Babcock, President of the Coronado Beach Company, announced this morning that he will accept checks on the Banks of Commerce and on the First National Bank at their full face value for various lines of merchandise and supplies carried on in the company's warehouse and for books of tickets of the street-car and motor lines. The Bank Examiner is making good progress in examining the Bank of Commerce and expects to conclude this afternoon. The plan for percentages-10 per cent. on resuming, 10 more in sixty and ninety days-is considered as good as adopted, and it is expected the bank will be open Monday. The new Merchants' National Bank, which is crowded with depositors, is enabling business to be transacted as usual. There were individual deposits of $261,000: demand certificates of deposit, $89,470. In the last five days between $100,000 and $200,000 in cash have been paid out over the counter. The run on the Farmers' Exchange Bank resulting in the closing of its doors, caused the excited depositors to call for their money at the First National. Monday night the craze had subsided and it was thought that the bank had weathered the storm, but when SO many banks failed in Los Angeles and other places on Wednesday and Thursday, a run on the First National Bank started in anew. The resources of this bank, backed as they are by men of wealth, are fully ample to pay depositors dollar for dollar, and it will be but a short time before it will reopen its doors. This bank and the Farmers' Exchange have pursued a liberal but careful policy in supporting the principal industries of this community, and the citizens are deploring the misfortune that has befallen them. Had not a similar craze been operating in Los Angeles, the First National Bank would have found no difficulty in obtaining cash to meet all demands. The President of the bank, Joseph Brown, stated shortly after closing that the bank would resume business in a short time A notable feature of the run on bank has been that irrehave last sponsible this parties throughout stories several the five been on street the and pay days depositors discrediting circulating advising bank's fellows everybody ability have the to to draw his money. These been openly denounced by others, but to no effect. The craze was on, and nothing, seemingly, could stop it. Everybody concedes the ability of the First National to meet all its obligations, and now there is little or no excitement on the streets. Theother banks- the San Bernardino National and Bank of San Bernardino-areconsidered impregnable, and no further trouble is anticipated. COULD NOT STAND THE RUN. SAN BERNARDINO, June 23. The First National Bank of San Bernardino, which has withstood the run for the last five days with such fortitude, was to-day compelled, shortly after having opened to the to and to to the stringency money depositors "Owing doors, post following close of the its notice doors: and the unusual of the last this deposits market during five withdrawal days, bank is forced to close its doors temporarily." The officers of the bank are: Joseph President; H. O. H. Kohl, are: rectors President; Brown, Joseph Brown, B. Cashier. Garner, H. Brink- Its di- Vice- J. meyer, J. W. Hall, O. H. Kohl, W. Curtis, L. D. Crandall, H. B. Garner, J. Flanders and John M. James. a $100,It a has surplus paid-up capital $25,000 stock and of 000, fund of undivided profits of $7,995. BANK OF MADERA. MADERA, June 23.-The Bank of Madera failed to open its doors this morning.

4. June 30, 1893 Idaho County Free Press Grangeville, ID

Article from Idaho County Free Press, June 30, 1893

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VARIOUS FINANCIAL MATTERS -Like a Row of Bricks, the Banks Continue to Go Down. MORE MONEY FOR CALIFORNIA BANKS Monetary Troubles at Minneapolis, Niagara Falls, San Francisco, Whatcom and Chicago-Rumor from London. At Niagara Falls. NIAGARA FALLS, N. Y., June 23.-The Cataract bank, the largest in the city, has failed unexpectedly, owing to inability to get expected aid. It has $70,000 deposits. It is believed that the bank will not be able to resume. One at San Francisco. SAN FRANCISCO, June 23.-The Peo ple's Home savings bank closed its doors this morning. It affiliated with the Pacific bank, which closed yesterday. Its resources are said to far exceed its I liabilities. At San Bernardino, Oal. SAN BERNARDINO, Cal., June 23.-The First national bank of San Bernardino, which has withstood a run lasting for the last five days, was today compelled to close its doors temporarily. More Money for California Banks. NEW YORK, June 23.-Currency ship@ ments to San Francisco will be very g large again today. Telegraphic transfers at the sub-treasury will certainly reach yesterday's figures. At Madera, Cal. MADERA, Cal., June 23.-The Bank of Madera failed to open its doors this morning. This notice was on the door: "Temporarily suspended. Depositors will be paid in full." At Minneapolis. MINNEAPOLIS, June 23.-The state bank of Minneapolis, having a capital of $100,000 and a surplus of $60,000, closed its doors this morning. Average deposits, $480,000. Rumor From London. LONDON, June 23.-It is rumored that the Hirschell committee proposes to close the Indian mints, conditioned on a repeal of the Sherman act. At Whatcom, Wash. WASHINGTON, June 23.-Comptroller Eckels has ordered Bank Examiner Cleary to take charge of the Whatcom, Wash., bank. A Chicago Clothing House. CHICAGO, June 23. -Friedmann - & Friedmann, wholesale clothing, have failed. Assets and liabilities $92,000 each. Dave Hill for Free Coluage. I NEW YORK, June 23.-Senator David B. Hill has come out in favor of free bimetallic coinage.

5. July 2, 1893 The Morning Call San Francisco, CA

Article from The Morning Call, July 2, 1893

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P Its Doors Are Open. MADERA, July 1.-The Bank of Madera, which suspended last week, reopened its doors this morning. -

6. April 19, 1894 The Morning Call San Francisco, CA

Article from The Morning Call, April 19, 1894

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# The Pacific Bank Is Made a Defendant. # BOND SALE COMMISSION CONTEST # A Policeman Sits in the People's Home Savings Bank to Quell All Disturbance. The Pacific Bank is involved in another entanglement. This time it is an action at law. Thomas Fitch Jr. filed a complaint yesterday against the Pacific Bank, R. H. McDonald Jr., Frank V. McDonald, R. H. McDonald and the California Raisin and Fruit Growers' Association. The suit is for the recovery of $40,000 on the sale of $500,000 of bonds of the California Ratsin and Fruit Growers' Association. It is claimed that these bonds were issued in payment for lands belonging to that corporation, which has its location in Fresno County. After the failure of the John Brown Colony and the Bank of Madsra the Pacific Bank, through its general financial agent, A. F. Johns, took possession of the colony and the bank of Madera. It is alleged by the plaintiff that after this action it occurred to Frank V. McDonald to convey a portion of the lands of the John Brown colony to an independent corporation, and that the California Fruit and Raisin Growers' Association was formed with officers and directors friendly to McDonald. It was then that Mr. Fitch claims that $500,000 of mutual coupon stock bonds were issued, and these bonds he declares were accepted by the Pacific Bank in payment or as security, and the bank conveyed the lands to the California Raisin and Fruit Growers' Association. The object, it was stated, was to sell these bonds to the profit of the incorporators. About this time, it said, that Frank V. McDonald, assisted by A. F. Johns, was trying to float certain securities of the Pacific Bank. Mr. Fitch was then engaged in the commission business in New York. He declares that he was approached by Frank V. McDonald and A. F. Johns, as representatives of the Pacific Bank and of the California Fruit and Raisin-growers' Association, and was finally employed to negotiate the sale of the bouds, and was allowed a commission of 8 per cent on the par value of all bonds sold by him. Fitch, relying on the $1,000,000 capital of the Pacific Bank and its surplus of $800,000, says that he undertook their sale. It was found that the sale of the bonds depended upon McDonald and Johns showing that the securities back of the bonds were good. Fitch declares that the men whom he negotiated with declined to place the bonds with their clients, who were English, unless the Pacific Bank would guarantee the principal and interest of the bonds. This, he asserts, was done in a resolution passed by the board of directors of the Pacific Bank on March 13, 1893. Fitch adds that Gillette & Taylor, bankers and brokers of Chicago and London, agreed to take the entire issue of the bonds at once, and demanded the delivery of the bonds for themselves and associates. At this time Frank V. McDonald was in New York acting in behalf of the Pacific Bank. He declined to deliver the bonds. Then it turned out after the sale had been negotiated, so Fitch claims, that Frank V. McDonald learned that the real purchasers of these bonds were the correspondents of the Pacific Bank in London, and it is claimed that Frank McDonald refused to ratify the sale, because he thought he could effect the sale himself. It is further claimed that R. H. McDonald Jr., from his connection with the Pacific Bank, was cognizant of these facts. Fitch declares that the records of the Pacific Bank and of the California Raisin and Fruit Growers' Association are not not accessible to him, but that the relations of Frank McDonald and Dick McDonald to the two institutions were such that they can be made defendants. With this information and the notoriety which the Pacific Bank has acquired in the press, Fitch thinks that his claim can be established, and as an incident thereto asks that all the facts in connection with the dealings and suspension of the Pacific Bank be made public. To this end, in addition to filing his complaint, he has caused atidavits, notices and subpenas to be issued asking that the depositions of R. H. McDonald Jr., M. H. Sherman and others be taken, and has applied to have Harry J. Lask, a notary public, take these depositions. James Alva Watt appears as the attorney for the plaintiff. It is deemed almost certain that the Grand Jury will take cognizance of the condition of affairs in the Pacific and the People's Home Savings banks and that a searching investigation will be instituted, in which the officials, employes and every one now or at any recent time counected with the institutions will be summoned to appear before that body. As pointing toward this is the fact that McLaughlin, the attorney and politician of Southern California, has come here hastily and has been in close consultation with M. H. Sherman. There were two meetings of the directors of the People's Home Savings Back yesterday, one of which lasted well on ito the evening. It was stated that nothing but the most routine business was transacted. At the same time the Bank Commissioners were continuing their examination, and Attorney-General Hart was at work with an expert on the books. During a good portion of this time Attorney Frank M. Stone sat in the Cafe Royal, adjacent to the bank. It is said that Stone hopes yet to be reinstated in a legal position with the bank. This might be accomplished if the Bank Commissioners and Attorney-General Hart should make such reports as would necessitate the appointment of a receiver, providing that that receiver were the friend of Stone. It is generally believed that the report of the Bank Commissioners will be adverse to the bank. The former report of the Attorney-General was favorable to the bank. The officials at the bank declare that the figures now are as favorable as when the Attorney-General made his last report, and that nothing has taken place whien would require him to change his former favorable opinion. A policeman sat in the bank during office hours yesterday, and the disturbances of the day before were not repeated, Dr. Julius Boushey, president of the bank, declares that he has been greatly annoyed by the visits of persons to his private office to discuss bank matters in a clamorons way, and adds that he is convinced that these persons have been purposely sent there to disturb him.