914. Citizens Bank (Paso Robles, CA)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
March 12, 1899
Location
Paso Robles, California (35.627, -120.691)

Metadata

Model
gpt-5-mini
Short Digest
00195368

Response Measures

Accommodated withdrawals, Capital injected, Full suspension, Books examined

Other: Deposit concessions by larger depositors (agreements not to withdraw for months). Secretary traveled to San Francisco to obtain coin.

Description

Articles report an expected run/heavy withdrawals tied to other local bank failures (County Bank, Commercial Bank), the Citizens' Bank closed/suspended on March 13, 1899 'to protect itself and its creditors' and later received permission to resume on or after March 27, 1899 after shareholders agreed to inject cash and depositors made concessions. Classified as run -> suspension -> reopening. 'Citizens' Bank' is described as a branch of the Commercial Bank of San Luis Obispo; I label it 'state' (not 'National'/'Trust').

Events (3)
1. March 12, 1899 Run
Cause
Local Banks
Cause Details
Panic/expected heavy withdrawals triggered by the recent closing of the Bank of Paso Robles and the County/Commercial Bank in the county.
Measures
Bank attempted to obtain ready coin; public notices posted that bank would close temporarily to avoid run and until examiner/commissioner investigated.
Newspaper Excerpt
it is rumored to-day that the Citizens' Bank of this city will not open its doors to-morrow morning, because of an expected run to be made on it.
Source
newspapers
2. March 13, 1899 Suspension
Cause
Local Banks
Cause Details
Closed temporarily 'as a matter of self protection' following suspensions/closures of other local banks (Commercial Bank, County Bank) and on advice of Bank Commissioner to avoid ruin to depositors and institution.
Newspaper Excerpt
The Citizens' Bank, as The Call predicted, closed its doors this morning. It posted a notice stating that it would reopen in a few days, as soon as the excitement had subsided;
Source
newspapers
3. March 27, 1899 Reopening
Newspaper Excerpt
the Bank Commissioners have granted the request of the ... Citizens' Bank of Paso Robles to resume business. ... permit the said Commercial Bank to resume business on or after March 27, 1899. ... A similar request was made by the officers of the Citizens Bank of Paso Robles, which was granted, as the depositors had made promises ... Its shareholders will put $15,000 in cash into the treasury at once. (permission granted to resume).
Source
newspapers

Newspaper Articles (6)
1. March 13, 1899 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, March 13, 1899

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Article Text

ONE MORE MAY CLOSE. Citizens' Bank of Paso Robles Seeking to Avoid a "Run." PASO ROBLES, March 12.-The closing of the Bank of Paso Robles has had a depressing effect on all kinds of business. H. Eppinger Jr., president of the bank, left this morning for San Francisco to try to make arrangements for ready coin, whereby the institution may open its doors and resume business. All depends upon the success of his trip. It is rumored to-day that the Citizens' Bank of this city will not open its doors to-morrow morning, because of an expected "run" to be made on it. The Citizens is reported as being perfectly solvent, with numerous good securities, but it is unprepared for a heavy "run." The Citizens' Bank is in accord with the Commercial Bank of San Luis Obispo, which closed its doors on Saturday. In case the banks in this city fail to resume business Paso Robles will be in straitened circumstances, as the City Treasurer had all of the city funds placed on deposit in these institutions, amounting to about $2500. Several contracts have been let by the city of late and are nearing completion, but payment undoubtedly will be delayed.

2. March 14, 1899 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, March 14, 1899

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Article Text

CITIZENS' BANK SUBPENDS. This Action Taken to Protect Itself and Its Creditors. PASO ROBLES, March 13.-The Citizens' Bank, as The Call predicted, closed its doors this morning. It posted a notice stating that it would reopen in a few days, as soon as the excitement had subsided; but it is known it will not reopen its doors until the Bank Commissioners shall have examined into its affairs. The notice was as follows: Notice-As a matter of self protection and for the protection of our creditors we have decided to close until the prevailing excitement has subsided. By order of the Board of Directors, A. F. HORSTMAN, Secretary. In an interview Cashier Horstman said: "The Citizens' Bank was prepared to carry all its customers through what now looks like a dry year and to meet all demands. The suspension is due to the unusual demands on account of the closing of the County Bank and the Bank of Paso Robles." The Citizens' Bank is considered by the public to be in a solvent condition, and is expected to resume business in the course of a few weeks. The closing of the Bank of Paso Robles and the Citizens' Bank, the only two financial concerns in this city, has had a demoralizing effect on business. The city funds being tied up in these banks the city is left without a cent with which to pay its running expenses. It is reported that the City Trustees at their next meeting will consider the advisability of raising the license on saloons from $25 to $100 a quarter. There are rumors to the effect that the city will have to disincorporate until a more prosperous time comes. If the banks resume business within a few days, which is thought probable by some, all the scare will have blown over and business will proceed in its usual way as though nothing had happened. H. H. Meier, dealer in cigars and tobacco, made an assignment to the Board of Trade. His liabilities are about $600, assets nominal.

3. March 14, 1899 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, March 14, 1899

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Article Text

SAN LUIS BANKS WILL PAY IN FULL sioner Barrett will give his attention to the Commercial Bank. He expects to conclude his labor here during the AN LUIS OBISPO, March 13.-No day, and has planned to leave for Paso depositor of the County Bank of Robles on Wednesday morning to inSan Luis Obispo is in danger of vestigate the Citizens' Bank, which losing one cent of the money he S closed its doors to-day. intrusted to that institution. Such P. Kaetzel, manager of the Bank of was the declaration made to-night by Cambria of Cambria, was in this city to-day and said that he had ordered Secretary Dunsmoor of the Bank Comhis establishment to close on Saturday mission after Commissioner Barrett owing to the suspension of the Comhad concluded his examination of the mercial Bank, of which it was a branch. bank. There were present during the

4. March 14, 1899 The Record-Union Sacramento, CA
Article from The Record-Union, March 14, 1899

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Article Text

Yesterday Brought About No Change for the Better. A Large Crowd Gathered About the Commercial, But It Did Not Open. But One Banking Concern in the City Now Doing BusinessThere Was a Slight Run on That, but It Soon Subsided. SAN LUIS OBISPO, March 13.-The bank situation here has not changed for the better as yet. A large crowd gathered about the Commercial Bank The this morning, but it did not open. Commercial has standing as follows: Liabilities-Capital stock, $200,000; deposits, etc., $551,500. Assets-Bills receivable, $390,000; real estate, $55,000. stocks and bonds, $43,000; sundries, $71,000. President Venable, in speaking of his bank this afternoon, said: There are some people right here in this town the who are actually elated at seeing financial institutions being driven to the wall. I think it is uncertain as to when our bank will open again. It is much better for the bank to go into liquidation rather than force those who it are in debt to it to settle in full, as would only ruin them and do the bank no good.' J. P. Andrews, President of the Andrews Banking Company, the only bank that is now doing business here, stated that there had been a slight run on his place during the morning, but it subsided about 2 o'clock. He had received many new deposits to-day, and the is confident that he will weather storm. The outlook for business men who had overdrafts on the closed bank is a forerunner of more trouble. It is claimed by financiers here that if too much pressure is brought in making collections for the broken banks, several business houses may be forced to suspend. The town has never experienced such a panic before. The affairs of the County Bank were being looked into to-day by Bank Commissioner Barrett and Secretary Dinsmore, and they also paid a visit to the DiCommercial Bank. The Board of rectors of the latter institution held a meeting, at which the Commissioner and his secretary were present, but nothing developed except that the bank would go into liquidation. The work of the Commissioner has not yet been finished, but the County Bank affairs will be settled up before the CommerThe cial's affairs are investigated. branches of the Commercial at Cambria, Paso Robles and Templeton are closed. ANOTHER BANK CLOSED. TEMPLETON, March 13.-The Bank of failed to open Templeton its its doors doors to-day. There was posted on a notice, as fellows: 'Owing to the suspension of several banks with whom we are connected, the Boar of Directors has decided to suspend business temporarily "A. P. SEEMAN, Cashier." The bank has always been in good condition, but the prospects of two dry years in this region and the collapse of all the other banks in the county but one caused the local bank to close. The officers of the bank claim that all depositors will be paid in full. Cashier Seeman says the bank may possibly open in ten days, but cannot say so positively. If the bank had opened its doors to-day as usual, there would have been quite a run, as many depositors came in from the country to draw out their money. The standing of the bank cannot be ascertained at this time. CITIZENS BANK OF PASO ROBLES. PASO ROBLES, March 13.-The Citizens' Bank failed to open its doors today. The Citizens' Bank is a branch of the Commercial Bank of San Luis Obispo, which closed Saturday. Much excitement prevails. The following notice has been posted on the Citizens' Bank: 'As a measure of self-protection, and for the protection of creditors of this bank, it has been decided not to open the doors until after the excitement prevailing at present has subsided. By order of the Board of Directors. A. F. HORSTMAN, Secretary." On Saturday this bank met all demands, and was prepared to do so today, but Bank Commissioner Barrett advised a temporary closing, to avoid business ruin. The officials state that the resources are sufficient to meet all obligations. The Bank Commissioners will arrive this week, and will decide to reopen or go into liquidation. The Templeton Bark a branch of the Citizens Bank, also closed its doors this morning, to avoid a run. Financial decrease, owing to drought, is the cause of the failure. The banks here were formerly prosperous, but, owing to heavy loans on real estate and crops, it is impossible to realize. Copious rains during the next ten days will do much to solve the financial problem. It has been stated that the Paso Robles bank will reopen soon. The officials of this bank will meet to-day. MET ALL DEMANDS PROMPTLY SANTA MARIA, March 13.--Owing to a supposed connection with San Luis Obispo banks, a light run was made on the Bank of Santa Maria on Saturday and to-day. The bank met all demands promptly, and the flurry subsided. President Adams states that the bank is a separate institution, and full confidence is felt in its conservative management. UNION SAVINGS BANK.

5. March 21, 1899 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, March 21, 1899

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Article Text

TWO BANKS WILL RESUME BUSINESSS APPLICATIONS MADE TO THE BANK COMMISSION. Assets of the Institutions Greatly Enhanced in Value by the Southern Rains. Two of the four banks that suspended payment in San Luis Obispo County last week have felt the result of the récent copious and opportune rains. Communications were received by the Bank Commission yesterday from the officers of the Commercial Bank of San Luis Obispo and of the Citizens' Bank of Paso Robles, stating that owing to the enhancement in value of the real estate held by them, caused by the storm, they were prepared to resume business. In the case of the Commercial Bank the commission was informed that the stockholders were ready to contribute an additional $50,000 to the capital of the institution and that most of the depositors had agreed not to make withdrawals for certain stipulated peri ds, varying from three to nine months. The stockholders of the Citizens' Bank have arranged to pay in $15,000 cash and the depositors have made concessions which will prevent anything like a run on the bank. There will be a meeting of all the members of the commission to-day to act on the applications. of the institutions to resume business, and it is believed that they will be permitted to do SO.

6. March 22, 1899 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, March 22, 1899

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Article Text

THE BANKING SITUATION IS MUCH IMPROVED San Luis Houses to Resume Business. INSOLVENCY FOR ONE ONLY WILL NORMAL CONDITIONS SOON RETURN. To the Recent Bountiful Rains Throughout the County Is Due the Radical Change for the Better. As anticipated in yesterday's Call, the Bank Commissioners have granted the request of the Commercial Bank of San Luis Obispo and the Citizens' Bank of Paso Robles to resume business. At the meeting of the Commissioners the situation of the financial institutions of the southern part of the State was generally discussed and the condition of affairs was found to be much brighter than it was a week ago. Of course the recent fall of rain upon the dry fields has had much to do with the improvement of the situation. This is shown by the following letter recelved relative to the opening of the two banks mentioned: SAN FRANCISCO, March 20, 1899. To the Honorable Board of Bank Commissioners; Gentlemen-Acting under instructions of the Board of Directors of the Commercial Bank of San Luis Obispo, I beg to petition your honorable board to permit the said Commercial Bank to resume business on or after March 27, 1899. In justification of the request I respectfully submit: First-That under the excitement of the moment I let a large portion of the assets be written off by your esteemed examiner, which assets are absolutely good, and I overlooked some of our good collaterals and securities entirely, as explained verbally to your Honorable Board. Second-After careful revision I claim that our capital is not impaired to the extent of over $50,000. and that with a favorable season this shrinkage will be mostly wiped out. Third-Our shareholders will put into the bank a sum of $50,000 cash, which has been offered to us and which will not be paid back and no dividend will be declared until your Honorable Body is fully satisfied that the capital is not impaired any longer Fourth-Before opening we will get an extension from our larger depositors SO as to be absolutely certain that the ready means placed at our disposition are ample for all eventualities. With the present outlook of the season a very bright future awaits our bank and we trust you will kindly grant our request and assist us to thus overcome our difficulties in which we were plunged through the closing of the County Bank Very reMcD. R. VENABLE, spectfully, President. The permission was gladly granted, the understanding being that the larger depositors are not to withdraw their money for six, twelve and eighteen months, according to the amounts. At the present time there is due to the depositors $297,449 and to bankers $66,033 51. A similar request was made by the officers of the Citizens Bank of Paso Robles, which was granted, as the depositors had made promises the same as those of the larger bank. Its shareholders will put $15,000 in cash into the treasury at once. At this bank there is now due depositors $43,676.70 and to bankers $38,902 66. The Commissioners are satisfied that ere long both institutions will be on their feet Of the County Bank, the first to close its doors, which caused the suspension of the others, there is a different story to tell. Its affairs are in such a condition that the Commissioners are satisfied that the best interests of all concerned will be subserved if the institution goes into insolvency Hence it was decided to report to the Attorney General the recommendation that he take steps to throw the bank into insolvency From all accounts there is due to the depositors $284,344.33 and to bankers $149,893 54. The assets have been scaled down to about $517,000. In the same list is the little bank at Templeton, which went down when the larger banks fell. Its officers have notified the Commissioners that they desire to go out of business, but in doing SO they will retire in good shape and no one will lose by the dissolution of the concern. Permission has been granted to do so.