938. Capital National Bank (Sacramento, CA)

Bank Information

Episode Type: Run Only
Bank Type: national
Bank ID: 10107
Charter Number: 10107
Start Date: January 21, 1933
Location: Sacramento, California (38.582, -121.494)

Metadata

Model: gpt-5-mini
Short Digest: 7dcdb551

Response Measures

Accommodated withdrawals, Public signal of financial health

Description

The Capital National Bank of Sacramento experienced a depositor run triggered by the closing/suspension of the California National / California Trust & Savings banks and by confusion between the similar names. Capital National remained open and paid withdrawals with large cash shipments from San Francisco and did not suspend.

Events (2)

1. November 28, 1911 Chartered

Source: historical_nic

2. January 21, 1933 Run

Cause: Local Banks
Cause Details: Run was sparked by the closing/suspension of the California National and California Trust & Savings banks and confusion between the names (many depositors mistakenly targeted Capital National).
Measures: Bank brought large cash shipments from San Francisco (airplanes/armored cars), kept doors open late (until midnight), staff paid out deposits and reassured depositors.
Newspaper Excerpt: The heaviest upon the Capital National Bank ... depositors gathered about his assuring them there no need for rush ... special has arrived from the Federal Bank San Francisco with $2,000 ... Capital National dressed the crowd ...
Source: newspapers

Newspaper Articles (9)

1. January 21, 1933 The Record Stockton, CA

Article from The Record, January 21, 1933

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Sacramento Bank Fails to Open Doors (Continued from Page One) mento. Loomis, Ione and Arbuckle affected by the closing order. The closing started light runs on other banks, but officials of these institutions no fear The heaviest upon the Capital National Bank located opposite the California special rushed from San Francisco with the cash the Capiident the Capital National dressed the crowd depositors gathered about his assuring them there no need for rush have plenty of money here for told the depositors special has arrived from the Federal Bank San Francisco with $2.000 need more can get the same Anderson said he believed on his bank caused by depositconfusing Capital National and California Officials the Bank of America said $10,000,000 being rushed the Capital from San Francisco by airplanes and armored cars for in their three branches They said will keep open until midnight, necessary, meet the depositors seeking to withdraw their Hilliard president the House sociation. issued giving that other local banks have sufficient cash on hand for

2. January 22, 1933 Oakland Tribune Oakland, CA

Article from Oakland Tribune, January 22, 1933

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for 2 Sought Reorganization Sacramento Banks Closed (Special to SACRAMENTO, effect California Bank and the affiliates. Trust its which closed Savings here this were being put today. placed in the The hands and state banking the boards of directors of the in North Ione and Arbuckle STATEMENT ISSUED The statement of the directors "Owing to agricultural and genthe last three years, the ifornia Bank Sacramento the California Trust and Savings Bank have with recent heavy accordthe directors, for the protecingly, tion decided ask the and state thorities take charge of the plan of organization the cooperation the Tribune) State deposits to the extent are protected by bond deposit, according State Treasurer Gus Johnson. Other deposits by departments, in some cases, RUN E NCOUNTERED Shorly after the made public started the Capital National located opposite closed President Alden addressed and assured them they could secure their money shipment from the San Federal Bank received by this bank during morning. California National has about commercial accounts and the California Trust Savings proximately The statements the two banks December 1932, showed that deposits totaled resources of the date reported This included loans bonds other than federal, and in and

3. January 22, 1933 The Sacramento Union Sacramento, CA

Article from The Sacramento Union, January 22, 1933

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California National to (Continued from Page One) interested and will do all they the affairs of the bank. bank possibly might formed to take over the assets California It was ther indicated the state bank organization (the California Trust and Savings bank) would given "widest latitude" in such The combined resources of the California group of banks, which included branches North Sacramento, Loomis, Ione and Arbuckle, given $39,607,090 January 45,000 Accounts Involved Approximately commercial and 36,000 savings accounts the closing. According to Edward Rainey, state banks, closed the Trust and Savings bank, "withdrawals during the past days were virtually silent which brought the bank's serves below the legal require- Capital Gets $8,000,000 The Capital National bank $3,000,000 cash funds the federal reserve to pay depositors, while the Bank given $10,000,000 from parent organization in San Francisco. Striking as high confidence $10,000,000 fact that Giannini himself, presiof Bank of America, came to Sacramento to give personal surance his depositors that their interests fully protected. Concerning George Peltier. vice president of the announced $10,had been received during day in planes and armored He reported $500,000 in withdrawals and during the day indicative of the confidence in his institution. The bank remained open last night until after m. until the last person wishing to withdraw money had been satisfied. The federal reserve system, which is coldly realistic its treatment of banks, issued this statement about Capital National bank, through its president, Alden Anderson: Capital National bank of Sacramento not with or borrowing from the Federal bank of San Francisco or elsewhere and has not for many years. has large amount of eligible and acceptable collateral which can converted into cash by rediscounting with the Federal Reserve bank the arises. Several Days' Wait Seen has the further great advantage of being under the direction of Mr. Alden Anderson, whose abiland integrity unquestioned." The statement signed by John U. Calkins, governor of the Federal Reserve bank at San Francisco. Calkins said it would be several days before affairs the closed bank could analyzed to tell the position of depositors. Uncle Sam seemed to be the safest rock tie to, in the estimation several hundred persons drew out their money from the sound banks. $150,000 Left With Harold McCurry, Sacramento postmaster, reported more than $150,000 had been deposited in the postal savings bank, in amounts principally from $100 to $200. Four windows were thrown open to commodate the depositors and police guard was set over Sam's reply to the fears those who withdrew their money he will redeposit the sums in local banks Monday. Orders from ington, put the money in safe deposit over week-end. Since the government pays only per cent, McCurry said he lieved much of the money would replaced in savings banks paying higher during the week. Banks Proud of Record After the first panicky moments, when they not sure to what proportions the strain would go, Sacramento bank presidents proud of the fact they were ready and willing to pay every dollar depositors asked. three hours later than usual Saturday closing time, President Anderson shut the doors bank, after first bringing the crowd standing outside into the lobby. From then until dark, accounts paid out, the depositors ing by the rear door with their tucked into special envelopes. Not few the depositors wore abashed looks and frowns worry how they would keep the funds. Names Confused Confusion of the "CaliforNational' and "Capital caused the brunt of the run be directed at the stitution. The bank the northwest corner of Seventh streets, the Capital bank southeast corner. Probably the fastest automobile trip ever made from San Francisco to made by the 12-cylinder federal automobile its way to Capital National bank yesterday morning. It bore to $2,000,000, and proceeded under escort of state highway ficers. additional brought Few Demand Money The Merchants National bank the least touched by the withdrawals. The Bank of America offered much funds needed, but the crowd inside the Merchants bank seeking its money was only slightly larger than the usual Saturday business. President Joseph H. Stephens held the institution open until late in the afternoon, when the last positor had been satisfied. All Demands Met The fact that of persons birth were most excited by events of the day was illustrated the heavy percentage of persons seeking their money the Sixth and street branch the Eank of America, which caters the to foreign section. Payments were delayed for short period when the branch ran of cash, but this was remedied arrival of more from money Francisco. similar shortage existed at the Eighth and street office of the Bank of America. Vice President Peltier made talk from on desk, telling the the additional funds on the way. Crowd Cheers When the shipment of arrived from San Francisco the afternoon and pushed through the lobby on truck by squad of highway patrol officers directed Capt. Elmer Little, the crowd cheered. Many put their pass books back in their pockets and Shipments to the Bank of Amerarrived through the day airplanes and armored Precautions were exercised to prevent bandits from attempting the shipments. The to close the California National group of banks came meeting in San Friday night. Rumors that the doors would not open spread through the city early the ing and half hour before the usual opening time crowd waiting entry. Bulletin Posted Shortly before this bulletin posted by Bank Superintendent Rainey: have taken possession of the business and property of the California Trust and bank under the provision of tion 136 of state bank This section provides certain degree of liquidity must be maintained by state The crowd spread off the sidewalk into the street, oblivious of the rain. Traffic moned to direct the heavy traffic that idled by. Second Notice An hour later this notice from Price, federal examiner charge: formal resolution of the directors, the California National bank of Sacramento has been placed in suspension.' made this statement in San Francisco: California Trust and Savings bank of taken this morning followthe directors. covering period several days and culminating Friday in what was virtually silent run, the reserve below the legal and the closing folsuperintendent of banks give sympathetic consideraplans for which already have been proposed.' Directors issued another state"Owing to agricultural and general economic conditions over period of the last three years, the California National bank Sacramento and the California Trust and Savings bank have met with recent heavy withdrawals and, accordingly the rectors, for the protection of all depositors, decided to ask the tional and state banking authorities take charge. hoped that plan of be out with the co-operation of depositors at early Both banks have received aid from Reconstruction Finance corporation. The national bank ceived $463,000, the bank savings $850,000. Lowell, chief examiner for the state, was charge of Trust and Savings bank affairs.

4. January 22, 1933 The Sacramento Union Sacramento, CA

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Humor, Tragedy Mixed In Rush Day at Banks It moving day for lots of yesterday. depositor, ried his money, would draw from Bank and walk up the street block or two and open an account in Bank At the same moment depositor Bank No. worried about his cash, would withdraw and hie himself Bank No. Several banks thus swapped customers. shore am funny thing how human folks act," observed short, squat negro, standing in front of bank yesterday contemplating the crowds milling the main door. don't take much to get folks scared. Me, got $31 in dis bank and ain't scared. She stays right dere," he announced to the world. Folks who, frightened, took their money out of the Capital National and the Bank of America and posited it with Uncle Sam in his postal savings bank will jolt when they learn that in accordance with postal bank regulations Postmaster McCurry will deposit all tomorrow in the banks it drawn from. Depositors, anxiously awaiting their turn to draw their money out of the Capital National, blinked when Frank Christophel, county treasurer, elbowed his way through the crowd and deposited $22,000 of the county's money. It busy day for Irene Baswitchboard operator at the Capital National. She handled more than 15,000 calls up to When ordered by Zoller, cashier, to go home, she protested. good for another eight hours,' she said. Deposits at the Merchants National bank yesterday exceeded withdrawals by many thousands of dollars, Joseph Stephens, president, He several depositors in other banks from transferring their money to his institution. "Take your out if money you the wish to. We will until open upon midnight to accommodate was George Peltier, vice president of the Bank of America, told itors. Everyone who wanted his about money had been however, and for lack of business bank closed the doors and called day. With every available teller and assistant engaged in pushing tens of thousands of dollars through the wickets to depositors all day yesterday, bank officials balthe end of the day. The Capital when closed its doors and its books, found shortage $1.20. commented President Alden Anderson. Safe deposit vaults in every downtown bank did boom busiyesterday. Depositors, withdrawing their accounts from one bank, would hurry to another to their money in safety Several depositors who withdrew their funds from the Capital National chagrined when they discovered that all that bank's safe deposit boxes were rented. Purse snatchers and holdup men could have reaped harvest yesterday Men and women bills tucked into pocketbooks, pockets and even tin cans, emerged from banks ripe for human vultures. One "casualty" She was Mrs. Alice Branum, fainted one of the banks. An ambulance took her to the ceiving hospital, where she was revived and sent home. The galluses of one Japanese of the Capital National failed him critical moment in line the teller's With his bank book clutched hand and an umbrella and hat the other, he embarrassing difficulty in keeping his trousers from falling around ankles. employe of the bank blushingly handed him two safety pins. Not more than 50 per cent of the crowds gathered in and around banks were depositors, intent withdrawing funds. Curiosity the motive that brought the others. The curious hung up records for endurance. They stood in the rain for hours.

5. January 23, 1933 The Sacramento Union Sacramento, CA

Article from The Sacramento Union, January 23, 1933

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BANKS TO AID BUSINESS Continuance of Assured in City (Continued from Page One) him the excitement was over in Sacramento. He said the bank had more than $2,000,000 in coin and the federal reserve bank in San Francisco ready its tremendous to send more. In assurance that business would continue normally, he stated he lieved banks "had the duty to keep payrolls going." Bank of America will be sympathetic to the business public that industry and employment may continue normally,' declared George W. Peltier, president the Bank of America. banking business of Sacramento will be carried just usual," he continued. assets the California National bank and affiliates will be distributed in short while. Inside of more than 75 per cent of the assets will have been turned back, taking the usual process of liquidation basis. Stockholders to Lose stockholders usually stand the loss in such situation. An average over period of the last 50 years in the United States shows an average loss of less than 15 per cent to depositors." Joseph H. Stephens, president of the National bank, clared the institution will today for usual.' He said the bank had plenty of money for depositors wished withdraw. Hilliard Welch, President of the Sacramento clearing house, on checkup yesterday found the total of deposits exceeded the withdrawSaturday as shown by the final checkup by the Capital National. the Merchants National and the Bank of America. Deposits are Made "The usual substantial deposits were made by large concerns and customers in all walks of life transacted their business as usual," he said. withdrawals were made principally by foreigners and smalldepositors. banks remained open until desired to secure their money could be accomodated Large payrolls ordinarly cashed the National bank were taken care of by the other banks in which added to the volume of work and materially creased the crowds in the bank High Praise From Rolland Vandegrift, state finance director, who is responsible California's millions praise both for the Sacramento bankers and the people. was the first Sacramen-

6. January 24, 1933 The Sacramento Bee Sacramento, CA

Article from The Sacramento Bee, January 24, 1933

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Banks Capital Weather 'Run' With Cash Local Institutions Prove They Can With Plenty To Spare Sacramento's banks to-day tled back into business routine, having proved depositors that they can any financial storm Plans being to amount back Federal Bank San Francisco, bank offifound vaults stacked with tremendous reserve many times greater than present actual needs. Saves Heavy Interest. For the banks continue keep such large when required would mean the payment of heavy rate of inter- All banks reported depositors turn-about those withdrew their and Saturday already under way Open New Accounts. In bank, three out of the customers opened accounts made additional posits accounts State Treasurer G. John$500,000 funds with Capital National Bank his feeling explicit confidence the city's financial structure. Confusion Blamed. Alden president of the Capital said that much of the his bank due confusion the minds many depositors that Capital National, the National, that had closed. headlines The on the stories carried Sacramento told closing of the California tional under heading, Capital Bank referring course the Capital City, but the bank heading was misconstrued. ARREST MRS. (Northern Sheehy Skeffingwhose shot Dublin during the of one month NorthIreland address Republiiin defiance of meeting order.

7. January 26, 1933 Tribune-Progress North Sacramento, CA

Article from Tribune-Progress, January 26, 1933

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OUT OF CHAOS EMERGES STRENGTH Closing of the California National Bank and the California Trust and Savings Bank in Sacramento and the branches in North Sacramento, Loomis, Arbuckle and Ione last Saturday morning was a most unfortunate occurence. It cast a pall of gloom over tens of thousands of Northern California homes and business enterprises. It caused a near financial panic, during which there were runs on the other Sacramento banks, all of which were successfully withstood. Again we say it was an unfortunate and untimely happening-one that would never have occurred had the state bank examiners been strictly on the job, looking faithfully after the interests of the depositors. Affairs should never have been permitted to reach such an acute stage that a closing, the first in Sacramento's banking history, became necessary. Unquestionably the fundamental causes of the temporary closing of the banks were the heavy loans made on farms and real estate, which rapidly depreciated in value during the depression. The bank examiners should have put a stop to these loans before it became too late. But out of the past few panicky days emerges a heroic figure-that of President Alden Anderson of the Capital National Bank of Sacramento. Facing a run on his bank that would have closed many a similar institution, President Anderson calmly stood in the entrance and invited all who desired to do SO to withdraw their money, bringing millions from San Francisco to meet their demands. The bank weathered the storm superbly. By Tuesday, money was flowing back into its vaults and many new accounts had been opened. President Anderson's attitude had had its calming effect upon the excited populace. The run on the bank had proven a boomerang. However, two things stand out. One is that people need not fear the loss of their deposits. The banks will without doubt re-open with new financial backing and will meet their obligations as near to dollar for dollar as is humanly possible under the circumstances. The other thing is that there is. too much gambling with depositors' money in modern banking, too many risks recklessly taken. When you deposit your money in a bank, it should be safe there until you draw it out. And it is up to you to see, through adequate legislation, that it is safe. Better banking laws are required and must be passed and enforced.

8. February 3, 1933 Davis Enterprise Davis, CA

Article from Davis Enterprise, February 3, 1933

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KEEP FAITH IN YOUR BANK Wealth, next to is what concerns us most. Wealth may only mean the price of the next meal, or the payment of bill owe. So, if we have these days of more or less distressing colds that we call the are deeply concerned about the fare of our pocketbooks, bank counts or contents of our safe posit boxes. The failure of several banks the Sacramento Valley to open their doors during the past week was blow that strikes right at the heart of our economic situation. We in Sausalito may not consider that hurts, does. We have been sitting quietly by observing banks closing up shop in far distant points and not paying much, if any, attention to what was going on. We have troubles of our own and couldn't be concerned about what was happening to the other fellow It happened that this publisher was attending the California Newspaper Publishers' Association convention at Marysville when the news came that the California National Bank at Sacramento had failed to open its doors on Saturday morning. We had no money in that bank, so the flash didn't disturb us as much did number of our friends. who carried deposits in the institution. To them the news was tragedy. First news, however, is always the worst. They will eventually come OK as this bank only given half we might mention, in passing, that It will be en every chance in the world cause is the oldest banking institution in the state to save the credit of banking institutions generally it will not be permitted to dead. It unfortunate, however. that more powerful financial institutions did not come to the rescue and serve this historical as well fluential bank for the sake of the great good it has done for the Sacramento Valley and mountain counties since before the days of the Gold Rush. Coupled with the old Mills Bank, founded in the California National, which in the old days had been familiarily termed the "Pink Bank" because of the color the stone with which the former location was constructed, has ways been considered one of the most substantial and conservative banks in the Sacramento region. If there were ever bankers through whose veins ice water ran, as old saying goes, it was this institution, as well known from experience as we've tried to borrow money from them. It so happened, however, that many of the depositors in the savings department had seen other strong banks fail. Having spent many years of toil to accumulate enough money to carry them on through the autumn of life, numerous depositors began withdrawing their money and renting safe posit boxes in the basement of the same institution wherein they would not trust the upstairs vaults. This practice continued day after day. Deposits of five, ten, fifteen, twenty, fifty thousands of dollars and wards were yanked out of the vaults and placed in deposit boxes. As one of the bank officials told the other day in Sacramento, there is enough money in the boxes in the basement to open up four banks the size of the California National There is where the rub depositors who could best keep things moving in these distressing withdraw their money from the bank and take It out of circulation They have enough confidence in the basement of the bank, where they steel, concrete walls and doors, but enough faith in the men who sit at the desks and whose chief object to make interest and dividends those who have faith in them. Money locked up in the safe deposit earns nothing but friend who has $300 locked up under the order of the bank examiners, he would have much better feeling today were money in box where he could get He but one of in the many same boat. It the less trustful withdrew their bankable wealth and hid it in more tangible form that are to be condemned, commended, depending upon the viewpoint. Had these less trustful souls mitted their money to ride along draw interest there would have been no bank failure. Suppose some their funds represented portion of these so-called frozen assets. thaw is bound to come some of these days and the bank itself would have been highly commended for having helped many person "over the hump." From our perience with the California National nearly two decades ago, and from what we have known of since, nobody secured loan unless the financial, physical and moral hazzard was of the most approved Of course, these past few type. years have seen good loans turn bad That's no sign they remain Banks make money on money, just as butcher shops make money Take the commodmeat. away with which an institution deals and that institution cannot exist. What need is confidence in our banks and leave our money there to make money for us, as well convenience to protect us from fire and theft, and not get agitated this fearful ghost called Depression. Distressing as may be the news from the Sacramento Valley, need not throw general scare into the bank depositors of the state. Current funds are safer in commercial account. and reserve funds far savings account than when taken out of circulation and, the urge comes, invested in when something News. permitted reach such an acute stage that closing, the first in Sacramento's banking history, became necessary. Unquestionably the fundamental causes of the temporary closing of the banks the heavy loans made on farms and real estate, which rapidly depreciated in value during the depression. The bank examiners should have stop to these loans before became too late. But out of the past few panicky days emerges heroic President Alden Anderson of the Capital National Bank of Sacramento. Facing run on his bank that would have closed many similar institution, President Anderson calmly stood in the entrance and invited all who desired to do so withdraw their money, bringing millions from San Francisco to meet their demands. The bank weathered the storm superbly. By day, money was flowing back into its vaults and many new accounts had been opened. President Anderson's attitude had had its calming effect upon the excited populace. The run on the bank had proven boomerang. However, two things stand out. One is that people need not fear the loss of their deposits. The banks without doubt re-open with new financial backing and will meet their obligations as near to dollar for dollar as is humanly possible under the circumstances. The other thing is that there is too much gambling with depositors' money in modern banking, too many risks recklessly taken. When you deposit your money in bank, it should be safe there until you draw it out. it is to to see, through And up you adequate legislation, that it is safe. Better banking laws are required and must be passed and enforced— North Sacramento.

9. February 4, 1933 The Mountain Messenger La Porte, CA

Article from The Mountain Messenger, February 4, 1933

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Some Editorial Opinions OF CHAOS EMERGES OUT STRENGTH Closing of the California National Bank and the California Trust and Savings Bank in Sacramento and the branches North Sacramento, Loomis, Arbuckle and Ione last Sat urday morning was most unfortunate occurence. It 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 of which were successfully withstood. Again we say was an unfortunate and untimely that would never have occurred had the State bank examiners been strictly on the job, looking faithfully after the interests of the depositors. Affairs should never have been permitted to reach such an acute stage that closing, the first in Sacramento's banking history, became necessary. Unquestionably the fundamental causes the temporary closing of the banks were the heavy loans made on farms and real estate, which rapidly depreclated in value during the depression. The bank examiners should have put stop these loans before it became too late. But out of the past few panicky days emerges an heroic President Alden Anderson of the Capital National Bank of Sacramen to. Facing run on his bank that would have closed many similar in stitution, President Anderson calmly stood in the entrance and invited all who desired to do to withdraw their money, bringing millions from San Francisco meet their demands. The bank weathered the storm superbly. Tuesday money was flowing back into its vaults and many counts had been opened. President Anderson's attitude had had its calming effect on the excited populace. run on the bank had proven boomerang However, two things stand out. One that people need not fear the loss their deposits. The banks will without doubt re-open with new financial backing and will meet their obligations as near to dollar for dollar as humanly possible under the circumstances. The other thing that there too much gambling with depositors' money modern banking. too many risks recklessly taken. When you deposit your money in bank should be safe there until you draw out. And is up to you through adequate legislation. that safe. Better banking laws are required and must be passed and enSacramento TribuneProgress.