965. San Bernardino County Savings Bank (San Bernardino, CA)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
savings bank
Start Date
June 17, 1932
Location
San Bernardino, California (34.108, -117.290)

Metadata

Model
gpt-5-mini
Short Digest
96b8d3da

Response Measures

Full suspension, Books examined

Other: State bank superintendent (Edward Rainey) took action to close savings bank; a federal examiner took charge of the national bank; later receivership and claims filing proceeded.

Description

Newspapers in June 1932 report rumors and withdrawals that prompted directors to close the San Bernardino County Savings Bank (and the affiliated San Bernardino National Bank). The savings bank did not reopen; a receiver for the national bank was appointed (to take over about July 1, 1932) and claim-filing and liquidation proceedings continued through 1932–1934. Sequence: run → suspension/closure → receivership/liquidation.

Events (3)
1. June 17, 1932 Run
Cause
Rumor Or Misinformation
Cause Details
Widespread malicious rumors about bank condition led depositors to withdraw funds from the savings bank (and the San Bernardino National), creating heavy withdrawals.
Measures
Directors closed the bank to protect depositors; statements issued by bank officers and examiners attempting to reassure public.
Newspaper Excerpt
the numerous rumors ... caused the withdrawals precipitated the difficulty. He added his belief that the the would ultimately be paid in full.
Source
newspapers
2. June 18, 1932 Suspension
Cause
Rumor Or Misinformation
Cause Details
Bank was closed by directors/state/federal examiners after heavy withdrawals driven by rumors about bank solvency and related panic from the national bank's closing; closure intended to protect depositors' interests.
Newspaper Excerpt
San Bernardino County Savings bank made ... necessary for me to take charge the bank's ... closing of the San Bernardino County bank because of ... withdrawals.
Source
newspapers
3. July 1, 1932 Receivership
Newspaper Excerpt
Charles Ritts, receiver for the bank, will arrive to take over his duties about July 1, and that within day or two thereafter arrangements will be made to permit safety depositors access to their boxes. Plans for reorganization and reopening ... are reported as proceeding quietly. (June 24, 1932).
Source
newspapers

Newspaper Articles (7)
1. June 18, 1932 The San Bernardino County Sun San Bernardino, CA
Article from The San Bernardino County Sun, June 18, 1932

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Article Text

TAKE At the Bank of America, the entire on throughout the day, all demands the Mr. Smith, too, that the bank will be open as usual this morning No issued by the Federal banking department, charge of the San Bernardino National except that made by Max the Federal bank in doors failed open by noon. This statement San Bernardino National bank closed at o'clock this the of the board directors and is now under the direction of the currency. Max V. Spendrup, national bank examiner, is charge.' Mr. Rainey, ordered the Bernardino ty Savings bank, declared that his action was necessary protect the By JOHN P. BOUGHAN interest of depositors following the Writer) closing of the national bank. CHICAGO, June 17.-Collapsing under the first selling presMr. Rainey issued the following sure from the 1932 United States "Protection of the interests of harvest, all wheat outthe depositors in the San Bernar- did today the season's low price dino County Savings bank made Favorable weather for domestic necessary for me to take charge the bank's this morning. The winter together closing of the San Bernardino with rains spring terCounty bank because of ritory had bearish effect, together with New York run which had been in progress for stock Export several made business in American wheat closing its affiliated savings bank appeared to be almost nil. Rumor Spreading Wheat nervous at nearly Felony in State the day's cents under "My has been in close finish, down, touch the San oats off and provisions Bernardino. We were cents systematic bank cam- Open High Low Close July old .48% paign had begun through the criminal rumors about Sept. old The spreading about banks is felony in .53% "The public should pay no tention these malicious tales. July The grand however, should Sept. jury, Dec. pay great deal of attention to Oatsparticular located in one July 20% of the most and produc- Sept. tive districts of California. There Dec. .22% .23 finer in the country. The city should be prosperous July course, "When banks close their doors Dec. depositors jump the conclusion Lardmoney all lost. Such is not July 3.97 the case. As matter of fact, Oct. 4.10 4.10 B dividend depositors the Valley 4.05 4.00 Bank to be paid once. The checks are written Clear July 4.30 4.30 4727 of them. This will put 000.00 into San Ber- Sept. 4.45 4.45 4.45 Needles and Barstow. Gill, president of the San MARKETS AT A GLANCE yesterday he and the NEW June directors of the bank felt necesweak; pivotal shares to business because points. Bonds steady: German the many withdrawals due sues rally. Curb: oils and the rumors which had utilities supply. Foreign been concerning the changes: sterling sags. Cotbank President sympathy stock Gill he hoped the was but and that the profit taking. Coffee: quiet; trade bank would be able on to probuying. ceed its business. R. E. Roberts, vice-president DRIED FRUITS the San Bernardino bank fruits NEW YORK June declared the bank Market apples had operations in order its assets for the benefit of depositors Mr. Roberts that the numerous rumors fancy culated concerning the bank had seedless caused the withdrawals standards cipitated the difficulty. He added his belief that the the would ultimately be paid false information as to the condiin full. of financial of the city. Scores of depositors, Bernar alarmed and divided profits of the San bank and the San Bernar drew deposits from the San Bernardino National bank. This dino County Savings bank at the continued drastic action $4,057,041 and resources necessary to protect the posits the against further with

2. June 21, 1932 The San Bernardino County Sun San Bernardino, CA
Article from The San Bernardino County Sun, June 21, 1932

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Article Text

BUSINESS Definite Steps Will Be Taken When Surveys Finished by Federal, State Men Plans for the reopening of the San Bernardino National bank and the San Bernardino County Savings bank were launched yesterday. Until surveys completed by Federal state banking representatives there be formal statement the plan of procedure, was indicated. That the community demands the reopening of both banks and will support enthusiastically such movement apparent. While no committee organization tempted there were strong indications that business interests and others immediately ganize support the reopening movement. Support Assured Bank Executives Roberts, John C. Ralphs, Smith, Shay and others the bank received countless support for any movement that undertaken secure the reopening of the banks. of both banks, from Los Angeles last night. He began plans for with directors stockholders of two outline definite that will object the has indicated that both the Federal and state banking departments anxious to be any assistance movement to reopen the One of the purposes of the FedFinance correopen banks. Hysteria Must Entirely Wiped Out The first assurance required from the by both and state authorities will for complete cooperation and the elimination hysteria. Everywhere there pressions willingness for both moral and financial support, the latter necessary, for reopening movement. Word yesterday from Californians Washington there would be unanimous support for the proposal of reopening. Both the Federal and state banking departments completed their work of organizing to handle their functions. The work of making survey the assets and liabilities the banks well underway,

3. June 24, 1932 The San Bernardino County Sun San Bernardino, CA
Article from The San Bernardino County Sun, June 24, 1932

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Article Text

BANK RECEIVER ARRIVES SOON Holders of safety deposit boxes in the San Bernardino National bank will have access to them shortly after July according to Max V. Spendrup, Federal bank examiner who is temporarily in charge of the affairs of the institution Mr. Spendrup announced that Charles Ritts, receiver for the bank, will arrive to take over his duties about July 1, and that within day or two thereafter arrangements will be made to permit safety depositors access to their boxes. Plans for reorganization and reopening of the national bank and the San Bernardino County Savings bank are reported as proceeding quietly.

4. June 30, 1932 The San Bernardino County Sun San Bernardino, CA
Article from The San Bernardino County Sun, June 30, 1932

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Article Text

STARTED Stockholders and Directors of Savings Institution Meet With State Official The move launched last week by business interests of the city to reopen the San Bernardino National bank and the San Bernardino CounSavings bank was advanced yesterday when stockholders of the savings bank met with John McFall, chief bank examiner of the southern division and committee business conferred Ritt, recently appointed receiver of the national bank The savings bank stockholders with Mr. the steps necessary open savings bank, which closed after the directors the national bank acted to protect the Committee Meets With Bank Receiver that the stockholders reviewed steps which been outlined by Edward Rainey, state bank superintendent, before the reopening could be effected. No statement was issued following the meeting and probable that series will be held before definite program adopted. At the second conference, the business and professional men headed Mack. president the Pioneer Title Insurance Co., met with Mr. Ritt review the insofar as the San Bernardino National bank concerned. This institution operated under Federal charter and therefore, under the jurisdiction of the Federal bank raththan the state, is the savings bank. The national bank Max Spendrup, not yet completed his report and, probable, steps be taken until this report is filed with the comptroller of the currency,

5. September 21, 1932 The San Bernardino County Sun San Bernardino, CA
Article from The San Bernardino County Sun, September 21, 1932

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Article Text

Depositors Urged to Speed Must Be Approved Before Dividend Paid Filing of claims with the San County Savings bank began Total 168 filed. deputy state of banks. pealed depositors hurry their claims. Total of 10,000 claims must filed. approved and presented the court, before the first dividend be paid to Each depositor been mailed instructions how file claims. Filing of claims with the San National bank proceeding slowly, and depositors urged by national bank receiver, file their claims. Negotiations proceeding for transfer the school children's accounts from the San Bernardino County Savings bank to of the other banks San Beof the that these deposits taken by other banks claims not be filed these accounts.

6. September 21, 1932 Redlands Daily Facts Redlands, CA
Article from Redlands Daily Facts, September 21, 1932

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CLAIMS WERE FILED AGAINST BANK A. Q. Robinson, deputy state su perintendent of banks, announced yesterday that 186 claims against the San Bernardino County Savings Bank were filed yésterday, but that 10,000 claims must be filed before the first dividend can be paid. Filing of claims with the San Bernardino National Bank is proceeding slowly, and depositors are urged by C. J. Ritt, national bank receiver, to file their claims. Negotiations are proceeding for the transfer of the school children's accounts from the San Bernardino County Savings Bank to one of the other banks of San Bernardino. Because of the probability that these deposits will be taken over by one of the other banks, claims are not to be filed on these accounts.

7. October 26, 1934 The San Bernardino County Sun San Bernardino, CA
Article from The San Bernardino County Sun, October 26, 1934

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County Treasurer to Collect County Funds in Defunct Banks, Make Profit By taking what he termed the "sensible route" in liquidating securities held for county deposits in defunct banks, County Treasurer M. W. H. Williams not only will collect all of the county deposits, with full interest, but will return large surplus in these security bonds to banks for the benefit of their depositors, he said yesterday Many county treasurers offered their securities at forced sales im mediately after the banks closed and consequently realized only few cents on the dollar, said Mr Williams. "The appellate court has ruled that county treasurers may hold their bonds until the market enables them to realize the best re turns on such security, so we adopted the sensible route in San Ber nardino Figures were compiled by the treasurer to show the final settlement just made with the San Bernardino County Savings bank. The county's deposits and interest in full have been paid the county. Mr. Williams collected $6,724.18 in interest coupons on bonds securing county deposits in that bank Sale of securities offered by this bank when county deposits were made has earned for the bank depositors $2,954 on coupon collections alone, in addition to paying the county its interest. On Oct. 15. the bank receiver paid the county $11,539.89 as dividends for the return of $44,000 unsold bonds previously given by the bank to the county to secure deposits Mr. Williams explained that had he sold these bonds immediately after the bank closed in July 1932 there would have been loss of more than $12,000 to the bank stockholders or depositors. Under present market values, the bonds returned by the county treasurer mean a saving of approximately $25,000 to the bank depositors, according to Mr. Williams. The San Bernardino National bank year ago likewise completed its settlement with the county, the deposits of the county treasurer being paid in full with interest, and the county receiving an additional $2,719.43 from collection of bond coupons, returning to the bank $157.65 in interest coupons and $70,000 in bonds. By this system of liquidation, the county earned $2,548.85 in bond interest for depositors of the First National bank of Victorville, which closed in December, 1931. This was achieved after the county's deposits were returned in full with interest After selling the Victorville bank securities, the treasurer returned a surplus of $6,721.74 in $30 in matured coupons and $3,800 par valtie bonds, total of $10,551.74 to the bank, after the bank had paid the county dividends totaling $7,540.33, according to Mr. Williams The San Bernardino Valley bank, now being liquidated. owed the county $157,430.85 including interest, for county deposits. This was secured by bonds having a par value of $275,000, but which were estimated to return from $30,000 to $50.000 less the sum due the county if sold at forced sale. Mr Williams' plan of disposing of these bonds, however, has reduced the balance due the county to $17,021.50 and he still holds bonds having par value of $87,250 to secure that sum. Under present market values, Mr. Williams said, he can clear the debt owed the county and have approximately $45,000 in bonds to return to the bank. When the First National bank of Rialto, the last to close, became insolvent, that bank owed the county $75,000. secured by $100,175 par value bonds. The balance now due the county from this bank is $57,531.27 and the treasurer holds $82,000 par value bonds to secure this. In this case the treasurer also has surety bond from individuals guaranteeing the county against any loss,