Sacramento Savings Bank - Sacramento, CA

Bank Information

Episode Type: Suspension → Closure
Bank Type: savings bank
Start Date: April 20, 1880
Location: Sacramento, California (38.582, -121.494)

Metadata

Model: gpt-5-mini
Short Digest: b6c89d10

Response Measures

None

Description

The articles consistently report that the Sacramento Savings Bank's management decided to discontinue/withdraw from business voluntarily because the new state constitution and revenue law would impose double taxation. No run or depositor panic is mentioned. The bank plans to pay depositors in full and to be succeeded by a bank organized under the general law (same management acting as agent). Classified as suspension_closure because this is a voluntary suspension/withdrawal leading to permanent winding up (voluntary liquidation).

Events (1)

1. April 20, 1880 Suspension

Cause: Voluntary Liquidation
Cause Details: Directors decided to discontinue business because the new state constitution and revenue law impose double taxation on savings banks; they opted to wind up and form a successor under the general law.
Newspaper Excerpt: the management of the Sacramento Savings Bank has decided to discontinue business. ... The bank is in a flourishing state, and this step will involve no inconvenience or loss to the depositors
Source: newspapers

Newspaper Articles (4)

1. January 4, 1880 Daily Globe Saint Paul, MN

Article from Daily Globe, January 4, 1880

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Article Text

THE BURSTED BANKS. Excitement in New York Overthe Failure of the Grocers' Bank--A Large Amount of Forged Paper Discounted-The Stockholders the Principal Losers--The Sacramento Savings Bank. NEW YORK, Jan. 3.-There is excitement among the creditors and depositors of the broken Grocers' bank. Mr. Stephen V. White, receiver, and counsel are present since early morning collecting assets. White says he had already deposited $170,000, and that the remaining assets would more than cover the claims of creditors and depositors. The only losers will be the stockholders, he believed. The bank was suffering largely from forged paper in connection with Lloyd Haigh's indebtedness. The Evening Post says: Reports that the bank held a large quantity of forged paper as security for loans were repeated this morning with greater emphasis, and were not denied by persons who naturally would deny them if unfounded. It is alleged the bank not only lent nearly $100,000 upon acceptances which prove to have been forged by one of its principal customers, but that it has obtained money from other banks by rediscounting this paper. The recei has had all the cash in the bank removed to the vaults of the Bank of North America for greater safety. Counsel for the receiver said there had been some talk of the shareholders reorganizing the bank and assuming the liabilities. In case this movement should take definite shape the receiver would gladly relinquish his responsibilities. THE SACRAMENTO SAVINGS BANK. SAN FRANCISCO, Jan. 3.-President Cary, of the Capital Savings bank, of Sacramento speaking on behalf of the directors, says that the real cause of the closing of the bank was the belief of the directors that a savings bank cannot be successfully carried on under the new constitution, and the directors are tired of working for dividends for depositors. The only assets of the bank, they state, are fully equal to all liabilities; and the bank is perfectly solvent, but this being the close of the dividend term, was a good time to wind up, and they resolved to do so. They say they will pay off dollar for dollar, and can realize quickly on their securities, as most of them are out at a high rate of interest, and the parties are ready to change to new loans at a less rate. The bank commissioner examined the bank on Monday and found it solvent, and the directors thought they could close their banking business in the face of that report, without discredit.

2. April 20, 1880 Sacramento Daily Record-Union Sacramento, CA

Article from Sacramento Daily Record-Union, April 20, 1880

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Article Text

THE NEW CONSTITUTION AND THE SAVINGS BANKS. As will be seen. from an advertisement published in this morning's RECORD-UNION, the management of the Sacramento Savings Bank has decided to discontinue business. The reasons for this action are not far to seek. The new Constitution and the new revenue law framed in accordance with its provisions, prescribe double taxation of all deposits in Savings Banks. The law sets up an invidious discrimination against the savings of the mechanic, the domestic servant, the small tradesman, the poor man generally. It discourages the accumulation of capital by all these classes, and it puts a veto on the profitable employment of such capital. The managers of the Sacramento Savings Bank, realizing the futility of any attempt to make head against this state of the law, have, in defence alike of their own interests and those of their depositors, determined to discontinue business under the old conditions. The bank is in a flourishing state, and this step will involve no inconvenience or loss to the depositors, who will be free to renew their connection with the Sacramento Bank, which is organized under the general law, and which will continue business under the old management. The effect of the change, in fact, will simply be to avoid double taxation, and enable customers to employ their savings as heretofore to the greatest advantage. The details of the new plan will be found elsewhere, and doubtless the end aimed at will be attained. In the present instance it has been found possible to avoid the injurious consequences of the new revenue law; but it does not therefore follow that all Savings Banks will be in a position to adopt the same method. The new revenue law is not yet tested by experience, but the Assessors are now at work throughout the State under its provisions, and the new assessment blanks, which were explained quite fully in our local columns yesterday, will soon convince taxpayers that double taxation of the most uncompromising kind is demanded. We do not know what course the Savings Banks of San Francisco intend to pursue, but it is evident that they will not be able to continue business under the old methods. The same reasons which have compelled the Sacramento Savings Bank to the change announced to-day, must destroy their usefulness. Depositors neither can nor will pay two taxes on their deposits, and as there is no doubt as to the demand for such dual payment under the new law, it must be regarded as certain that all mutual corporations will have to abandon their present organization, even if they do not find it necessary to discontinue their business. But for the circumstance that four per cent. Government bonds are just now at quite a high premium, it is probable that a very general investment in that class of securities would have resulted from the new revenue law. As it is, large amounts of capital will be withdrawn from the market, and, as always happens in such cases, a considerable percentage of it will for a long time remain inaccessible to the borrower.

3. April 29, 1880 Puget Sound Weekly Argus Port Townsend, WA

Article from Puget Sound Weekly Argus, April 29, 1880

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PACIFIC COAST Legislature Adjourned. SAN FRANCISCO, April 7.-Legislature adjourned at 12 last night with the customary presentation to officers, Cowdery getting a fine silver service set as well.as a good line of compliments, especially from some of the Workingmen. Two hundred and eightythree bills passed both houses, of which the governor signed 220. A Rich Find. DIXON, April 17.-Peter Kauhl, a German farmer living six miles east of Dixon, while digging on his farm yesterday made a remarkable discovery. Pure gold and quartz was found at a depth of eight feet. Two pans of dirt washed out 50 cents' worth of the precious metal. A number of men are now engaged in prospecting. Kearney in his Striped Snit. SAN FRANCISCO, April 19.-Kearney appeared in court this morning with Clitus Barbour. An attempt to procure his release upon a writ of habeas corpus failed. After the commitment had been made out Kearney went below, greatly depressed, accompanied by his brother. Soon after, accompanied by the Superintendent of the House of Correction and Officer Price, Kearney was taken in a back in waiting on Merchant street. A large crowd of sand-lotters were in waiting, who made a rush for the hack as Kearney in charge of the officers entered it. The crowd was driven back by police officers, the door closed, and Kearney at last was under way for the prison. The latest report is that, on arriving at the house of correction he was handed over to the prison barber, after which he was presented with a gorgeous striped suit and locked up. Fat Pickings. A petition for the partial distribution of the estate of Wm. S. O'Brien, deceased, was filed in department No. 9 of the superio: court to-day. The petitioners state that they believe that the estate of deceased largely exceeds $6,000,000 and there is sufficient of said estate in the hands of said executors to pay ail the bequests and legacies in the will in full. Withdrawn From Business SAN FRANCISCO, April 20.-The Sacramento Savings Bank has determined to withdraw from business. The bank is prosperous, and will pay depositors every dollar due with six per cent. dividend and an extra dividend of 4½ cents on the reserve fund, The sole cause of the withdrawal is the conviction of the management that the new constitution and revenue law will nearly ruin its business by imposing double taxation. It is to be succeeded by a bank under the general law under the same management, which will act as the agent of the depositors and guarantee security, in which farm mortgages will be assessed customers only. Effects of the Storm in California. The present storm is widespread, and fears are entertained of a serious overflow of the upper country. Napa creek is very high already and has flooded part of Napa City. Putah creek is over its banks. The Sacramento river is rising rapidly. It is reported that there is a break in the levee below tnat city, but it is not confirmed. The American river is coming up a foot an hour, The floods interrupted telegraphic communication. Feather river is very high and is rising. It is raining at Downieville and North San Juan. There is 14 feet of snow at the latter place. There is where the danger lies. There is so much snow OR the Sierras and foothills that should rain centinue danger of a flood in the valley is imminent. Protection for San Francisco Harbor. At the quarterly meeting of the Chamber of Commerce this afternoon, a letter from Lieut. McArthur, ordnance officer at Benicia, was read, calling attention to the necessity of protecting San Francisco harbor, and particularly to the need of heavy rifled guns for its defense. The chamber adopted a memorial to Congress asking that forty or fifty heavy rifles be placed in position at the seaward approaches of the city, and that at least two turreted ironclads armed with similar ordnance be maintained in efficient condition here. The chamber also adopted a memorial strongly opposing the proposition to abolish the letter carrying service of Wells, Fargo & Co.

4. May 1, 1880 The Douglas Independent Roseburg, OR

Article from The Douglas Independent, May 1, 1880

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PACIFIC COAST. of the New Constitution. SAN Effect FRANCISCO, April 20.-The determined SacraBank has bank mento Savings withdraw from business depositors The every prosperous, with and six will per pay cent dividend and the The sole an dollar extra due dividend of 4 cause per cent of the on withreserve is fund. the conviction of the and manage- revdrawal the new constitution by ment that will nearly ruin its business enuelaw double taxation. It general is law ceeded imposing by bank under the which will the same management, and guaran. under agent of the depositors will act as be assessed security customers in which farm only mortgages Assessment. 25 cents. Independence levies an assessment of and Floods in California. Storms present storm is widespread, overflow and fears The are entertained of Napa serious creek is very of the upper country. and has flooded part of high Napa City: already Putah creek is rising break rapidly in the reported that there is a not conIt is below that city, but it is coming levee The American river interrupted is firmed. foot an hour. The floods Feather river telegraph up a communication. It is raining is very high and is rising. North San Juan. at Downieville fourteen and feet of snow at the latter lies. There is This is where the danger place. is so much snow on the Sierras an there, There that should rain continue immidanger foothills of a flood in the valley is nent. Lives Lost on the Snow Sitde. slide Particulars No of the recent snow boarding at King Mine by which a men reMineral crushed and many lost house was show that no lives were the ported killed, all the occupants of though house were nearly either injured or frost bitten. Nevere Snow Storm. on Latest of reports the Central from the Pacific mountains Railroad hard, the line that it is snowing and blowing state the trains are blocked. and Protection of San Francisco chamber Harbor. The quarterly meeting of the letter from At the this afternoon a ordinance was Lieutenant of commerce Colonel McArthur, read calling attenofficer to at the Benicia, necessity of protecting to San the tion harbor, and particularly defense. need Francisco of heavily rifled guns memorial for its to conThe chamber asking adopted that forty a or fifty seaward heavy gress rifles be placed in position at that the at least approaches of the city, and armed with turreted ironclads in effi two ordnance be maintained also similar condition here. The chamber opposing cient memorial strongly car adopted a to abolish the letter Cc. rying the propositio service of Wells, Fargo & The Storm in San Francisco. FRANCISCO, April The in storm burst- in SAN has done some damage earth on the city washing away morning ing sewers and Early this a steep hillsides wall about thirty heavy stone retaining a of Robert Sherfeet high in the California rear street, between wsod's Tavlor lot and on Jones, fell, covering on Pine gardens street, in the rear of hot residences houses and outbuildings, the smashing one or two instances injured. injuring and rear in of dwellings. No one It rainThe Flood at Marysville. ceased It MARYSVILLE, 9:30 April A. M. The Yuba is ing here foot at mark, and rising rapidly. water of the 14 lacks 20 inches of the high good constill The levees are in three feet last year. and can stand raise of portion of gone, dition, without danger of overflow. A this morning. the Bear The river Sutter bridge county is levee is all right. Two Men Drowned. W. About 2 o'clock thisafternoon, Cox and George as Henry Scheussler, were G. proceeding in a situated small boat on Rodgers warehouse of a farmer, just below to the bank of Feather river, of tree the the boat ran afoul into a the Yuba City, broke in two, throwing them was and Scheussler, clinging to a drowned. tree, saved. river. Rogers and Cox were The Storm in the Sierras DUTCH FLAT, April 21 The storm and con- conraining heavily tinues unabated, Since the last report the Gap. rain tinuously. has extended as up are as Emigrant reported very snowslides much Streams swollen. and rivers Snow disappearing are reported rapidly. Several here and Summit, and the places. snow between are washed out in several carried sheds Chinamen are reported slide has Three snow slides. A land formation away in in the lava and clay and coveroccurred Alta, carrying away track and just ing above up about 300 feet of railroad roadbed. Interruption of Trains. OROVILLE, April 21. Clear It still storm- here; wind south; thermometer 56. the mountains. Communication between ing on here and Marysville Honecut by a small high water. At today bridge off by is gone, trains either way Another Man Drowned. E. Wehn 21.-C. SAN ANDREAS, April of Harrison, Dicksolicitor for the firm Francisco, & Company, of San attempt was enson drowned while place, in a this to cross morning Murray creek, near this buggy Water in the San Joaquin. High April The San Joaquit two MERCED, at Dickenson ferry is all within streams river feet of high water mark, and and Fresno the Chowchilla creeks on including and Mariposa and Bear filling the of lands valley rivers, the east side are overflowing Streams and on boom the the west low side of Firebaugh's the valley are ferry, also and the y probabilities ing as far up as are in favor of very high water; rain has ceased. f and Railroad Track Submerged. e Land April 21 The levee at giving Cran dall's slough ALAMEDA, broke this morning, from Alavent to a large body of water the country Centerville meda-creek. Where it crosses and Alvarado d of road is and between five feet deep, and a large loss. amount About y land will be a total water. The s grain acres are under Railroa a three miles, track thousand of the South Pacific commence Coa-l of the Hall's for nearly IS under water, and some A hand d men seven track is said to be washed started away. to cross but have car with not been heard from yet. if, The Storm at P acerville. April 21 - The rain been storm the PLACERVILLE, twelve hours has m le for the last for a long time. Morrill' Haugtown heaviest creek known has been away up.