1.
January 21, 1933
Modesto News-Herald
Modesto, 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, 1933
Santa Rosa Republican
Santa 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, 1933
The Fresno Bee
Fresno, CA
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MILLIONS RUSHED TWO BANKS CLOSE from Page 1) the and Bank has mately Branches Affected Branch banks North and also The California and Savings Bank was closed by Ed state superintend of banks In the clos ing in said and Say of Sacramento by the of banks this flowing bill meeting of the board of at which resolution was adopted the covering a period of minating tually silent Tun, brought the reserve below the legal quirements, and the closing fol superintendent of banks will to for proposed The issued the bank's board of directors and gen eral conditions period of the last three the California Bank of Sacra California Trust and Bank have with and for the protection of all depositors, decided ask the and ing take charge the institutions hoped plan of be out with the co- of depositors at an In the the Na tional the time Sac mento's bank here has failed statement sued by the California National Bank last be fore the began was regarded by officials of the bank as amounted to $32 605.48 was composed of local on ties elsewhere in Super Bonds other liquid assets amounted or close to of the exchange was 493 high totaling 151 Oldest In California The California National Bank which consolidated old national bank of D. and not the only banking fornia but the oldest of Mississippi excepting the Boatmen's Bank of St. Louis founded Mills organized 18th the fever of the rush and together with the fornia National Bank which was March 31st 1883 has been important part of North an California's financial life.
4.
January 21, 1933
The Fresno Bee
Fresno, 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, 1933
The Los Angeles Times
Los 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, 1933
Santa Cruz Sentinel
Santa 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, 1933
The Charlotte News
Charlotte, 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 23, 1933
The Sacramento Bee
Sacramento, CA
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DIRECTORS OF CLOSED BANK STUDY PLANS RE-OPEN
Examiners Expected To Present Scheme For Institu. tion Reorganization
RAINEY SAYS BANKING CONDITIONS FAVORABLE
Hilliard Welch Declares Depositors Who Want Money Can Get It of the California National Bank the California Trust and Savings Bank, which suspended business operations Saturday, are meeting this afternoon to evolve some plan of reorganization. staff of twelve examiners, in cluding eight from the state and four from federal government, have been studying financial affairs the institution and are pected scheme will best protect the depositors. Closed During Audit. E. Price, federal examiner in charge the national bank, posted sign the bank doors announcing the deposit vaults will during the period the audit of the This that Sacramentans will not reach their safety deposit boxes for at District Calmer. An atmosphere calmness veloped the financial district to-day contrast to the electric tenseness Saturday. There were many people than usual in the district, many only by curiosity, by the necessity making connections and an additional number who were intent upon withdrawing their Edward Rainey, state superintendent banks, said survey of Sacramento showed banking were "favorable" MANY 'NEW ACCOUNTS." Alden Anderson, president the Capital Bank, pointed out that one commercial account $400,000 opened. Over the Eighth and streets office the Bank of America, the number of employes in the "new department was Infrom two four, great the the California Bank the other financial institutions here to-day prepared to pick up the burden casioned that bank's closing the capital's commercial life not suffer.
Welch Makes Statement. Hilliard of Association, spoke for the city's financial leaders when declared "There's plenty of cash here for everybody. Sacramento's banks are strong and we stand who skeptical. structure stronger than any one bank all the present uation with the utmost confidence. Will Keep Doors Open. "Clearing house banks to-day, on keep their doors (Continued On Page Five)
9.
January 23, 1933
Appeal-Democrat
Marysville, 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, 1933
Imperial Valley Press
El 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-
11.
January 23, 1933
Imperial Valley Press
El 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.
12.
January 23, 1933
The Sacramento Union
Sacramento, 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, 1933
Tribune-Progress
North 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, 1933
Pasadena Star-News
Pasadena, 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, 1933
The Mountain Messenger
La Porte, CA
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THE BANK PANIC
Coming on top of a number of other bank failures and the fact that several local people lost money in at least one of them, the closing of the California National Bank of Sacramento had a very disquieting effect upon the people of this county. The closing of five more valley banks shortly! after did not tend to restore confidence. Such things usually appear at their worst at first, but when analyzed in a calmer frame or mind they do not look hopeless. When conditions become bad and people get panicky the result is very apt to be a run on the bank. This unnatural strain is apt to cause a bank to close its doors to prevent total collapse. But that does not mean that the depositors will necessarily lose their money. Most banks are kept within the safety zone under normal conditions, and when forced by its depositors to close it does so with the hope and expectation of retrieving itself later. In due time that often is done and while the depositors are put to inconvenience, they do not always lose their deposits. It does look as though banks should be made safer, and out of all the present turmoil no doubt a safer plan will be evolved. But in the meantime take a more hopeful and cheerful view of things. The banks will reopen again and probably will be stronger than before they closed. Give them time to readjust themselves, and we all can help in this readjustment by refusing to be stampeded.
16.
February 4, 1933
Porterville Recorder
Porterville, 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.
17.
February 25, 1933
Modesto News-Herald
Modesto, 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.
18.
May 11, 1933
Tribune-Progress
North 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.
19.
May 16, 1933
The Californian
Salinas, 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."
20.
May 17, 1933
The Sacramento Bee
Sacramento, 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.
21.
August 23, 1933
The San Francisco Examiner
San 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.
22.
August 28, 1933
The Sacramento Bee
Sacramento, 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
23.
August 30, 1933
The Sacramento Union
Sacramento, CA
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2000 GET FIRST BANK CHECKS
Receiver Urges Depositors Act Quickly to Get Dividends
Less than 2000 persons have received their dividend checks from the California National bank, H. W. Douglass, receiver for the bank, revealed last night. He urged that depositors call at the bank as soon as possible in order that full use of an augmented personnel may be made. Douglass said the dividend response had been unusually slow. Depositors, he believes, have felt there was no immediate need for haste and preferred to wait a day or two until those more pressed for funds could be served. In few days those who have not called for their checks will be notified by mail. Savings deposits of the national bank existed in branch offices of the institution located outside of Sacramento, all local savings having been in the California Trust and Savings bank. First meeting of creditors of Fred W. Kiesel, former president of the California National and California Trust and Savings banks, who filed a petition in bankruptcy last week, will be held in the office of Evan J. Hughes, referee in bankruptcy, at 10 a. m. September 14.
24.
September 29, 1933
Free Lance
Hollister, 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