21ceceefAccommodated withdrawals, Public signal of financial health
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THREE CALIFORNIA BANKS CLOSE AFTER HEAVY RUNS SAN BERNARDINO, Cal.-The doors of three banks were closed today following heavy withdrawals, assertedly as the result of malicious rumors regarding their solvency. A run started on a fourth bank, the American National, jafter the San Bernardino National,*the County Savings Bank and the First Bank of Highland, six miles from here, were closed.
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San Bernardino Banks Closed SAN BERNARDINO, June 18. (U.P.)-The doors of three banks were closed today following heavy withdrawals by depositors, assertedly as the result of malicious rumors regarding their solvency. A run started on a fourth bank, the American National bank, after the San Bernardino National, the County Savings bank and the First Bank of Highland, six miles from here, were closed. Officers of the American National said they would remain open and pay all depositors. Superintendent of Banks Edward Rainey announced that the County Savings bank would probably open within a few days and the San Bernardino National soon after Police had been investigating a "whispering campaign" for several days, since bank officers reported rumors had been circulated by telephone, frightening depositors. WASHINGTON, June 18. (U.P.)The comptroller of the currency's office today said that M. V. Stendrup, national bank examiner, win handle affairs of the San Bernardino, Calif., National Bank until a receiver is appointed. Officials said it was better for the bank to close its doors and liquidate, than to continue operations and run itself into a worse condition. Deposits on the date of closing were listed by the examiner at $1,100,000 and total resources on February 1, 1932, at $2,096,168.
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OPEN FALSE Gilbert Instructed to Select 'Vigilantes' Group to End Destructive Tactics (Continued from Page Eleven) perienced Friday and for more than an hour yesterday because the secondary reserves ed, has the hand deposit other banks. added that the Federal bank examiner had check on the bank on May and pronounced solvent. detailed the of national bank, explaining the depositors safeguarded by He reassured the audience that the bank solvent and continue but made for the loyalty cooperation which, he declared, should given all business houses. pointed out, "go broke" when the depositors want their money all the same Mr. Hellyer declared that the timidity people rush the banks and make not only the banks but the people themselves. He talked viewing the he views he was interrupted Grant prominent attorney, told the the day enlist for the banks, declaring obtained more than $30,000 deposits for the American National bank. He, too, urged support for financial houses and hysteria be driven by acts and expressions confidence. Mr. Cowen said that he learned his San Diego from fishing Friday that the San National bank, where he had business for seven years, closed doors. Oakley Avers Run Broken uncertain to what would do, course," not discouraged. When saw that line in front of the American bank, said, 'right bank me just need and gave my busimade deposit there terday and shall make one Monday, the next day and every day have faith San Bernardino. had but little came years and made money down. I'll go down with But your cooperation and faith won't go down." Edward Coulter, secretary of the United Travelers, declared that deposit in American National bank and that his organization would permit, for moment, the of any funds from the bank this time. M. Oakey, an executive of the Bank declared the the banks was definitely broken felt o'clock this he said, "that had passed the crisis licked the wave which gripped the people You go that this thing (the run the banks) over." Veterans Touch Funds R. H. prominent busiand the Amreported that Friday went to Walter M. Steele, the service that withdraw gion funds from the American Nabank Steele with the and was unanithat of be that addition the legion lend its full support to the Mr. Stockwell with to Mayor Gilbert that he have the sponsored by Mr. Cowen wait Commander Steele and the name of the person the suggestion. An of the scope by the was by Thomas R. executive the council of San Berthat the men the city stand man the leaders in the community's financial houses. do within our power to help this emersaid Mr. Conova. alize that situation as now stands will be made by many times this hysteria not alize that can only obtained through the of normal business We would be ashamed ourselves and our mothwould ashamed of us did not for the the people here.' In closing the meeting. Mayor Gilbert thanked the huge crowd for its help and expressed the belief there sufficient faith in San Bernardino banking institutions to carry the through. bank just strong its depositors," Mayor Gilbert, immediately get back sound footing."
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Banks' Business Back to Normal; Expressions of Confidence End Hysteria San Bernardino's banking restored to normalcy yesterday. The hysteria which precipitated runs the Bank America the American National bank last week before expressions confidence business terests bank depositors the financial When the banks opened their doors yesterday, there crowds there had been the ordinary number of clients the banks, many of them there open time during the day was there indication of the return the hysteria. Banks Get Many New Depositors At both the American National and the Bank the one the gest days their history from the standpoint opening new counts. McCook, the American National said that there more accounts opened his bank than during any previous since the bank established nearly years ago. Virtually possibility of the currence the banks, which faded before noon on Saturday, eliminated Saturday night when business men met the American Legion hall to war against circulators false reports, such forced the closing San Bernardino National bank The meeting instructed Mayor Gilbert name committee cooperating with district attorney effecting the arrest of malicious gossipers. The committee, which Mayor Gilbert named Monday, will serve mayor believing that more effective work accomplished by business men working quietly without their identity of the committee being publicly known. With again restored, the San Bernardino grand jury will take its investigation of the communistic plot by which the San Bernardino National bank tacked, announced by District Attorney Stanley Mussell. Strict Secrecy Will Mark Probe Among the more of nesses to testify the jury's inquiry will be depositors made withdrawals of funds from the bank after calls telling them that the bank unsound. The depositors will asked to the inquisitors why they made particularly if they acted after being and whom, the district attorney said. Strict secrecy will mark the investigation and the inquiry will be rected along lines which the prosecutor believes will the Identity least few of the circulators of the false reports concerning the soundness of the bank. extremely serious said Mr. Mussell, investigation will prosecuted from angle. We shall invite every anyone who has information against the bank to testify before the grand