Merchants National Bank (Sacramento, CA)

View Charter #11875 on SPMC View balance sheet

Episode Information

Episode UID
1187501598
Episode Type
Run → Suspension → Reopening
Bank Type
national
Bank ID
118750 national
Charter Number
11875
Start Date
February 27, 1933
Location
Sacramento, California

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
4e2400345c34d476

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Fed/other loan, Public signal of financial health, Full suspension, Books examined

Clearinghouse involved: Yes (loan, examination, or other measures)

Events (4)
1. November 19, 1920 Chartered
Source
historical_nic
2. February 27, 1933 Run
Cause
Macro News
Cause Details
Runs triggered by widespread publicity of banking moratoria and restrictions in other states (e.g., Michigan) and subsequent public fear.
Measures
Banks met demands by using coin on hand and borrowing from the Federal Reserve; Merchants National reported ample coin and Federal Reserve support.
Newspaper Excerpt
this relatively heavy run lasted for three days -February 27, February 28 and March 1-when it was brought to an end by a proclamation of the governor of California closing all banks in the state for a three-day period.
Source
newspapers
3. March 2, 1933 Suspension
Cause
Government Action
Cause Details
Statewide banking holiday (proclaimed by the governor) that closed California banks for a multi-day moratorium.
Newspaper Excerpt
Governor Ralph tonight proclaimed an extension of the California bank holiday until Thursday, March... The three-day period will begin Monday with general holiday similar to the one now in effect.
Source
newspapers
4. March 13, 1933 Reopening
Newspaper Excerpt
Reopening of banks under licenses issued by the secretary of the treasury and by state authorities commenced on March 13 and proceeded ... most 12th district banks had resumed customary operations, although a good many were either in the hands of conservators or had been closed for liquidation.
Source
newspapers

Newspaper Articles (8)
1. January 23, 1933 The Sacramento Union Sacramento, CA

Article Text

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-

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

Article Text

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.

3. March 2, 1933 Las Vegas Daily Optic East Las Vegas, NM

Article Text

SEVENTEEN STATES CHECK RUNS ON BANK Seven More Join Movement to Restrict Withdrawals of Deposited Moneys THREE AND FOUR DAYS TO BE TEMPORARY HOLIDAYS Situation Easing in Some States as Legislatures Planned Curb Laws Mississippi, Arizona, Nevada and in Oregon today joined the states. which there are limitations placed on the withdrawals of deposits from banks. in which limitations on withdrawals now exist. The proclamation of Gov. Ralph at San Francisco makes mandatory the closing of California banks (or three-day period ending Saturday The three-day holiday called Gov. Murray in Oklahoma for same period also is mandatory. The of Gov. Allen of Louisiana provides for the sation until the end of the week "all public business including Banks and other public enterprises." Mississippi the decree of state banking called only (Continued On Page Two)

4. March 2, 1933 Daily Times-Advocate Escondido, CA

Article Text

BANK CLOSING'S EFFECTS Thousands of theories are being voiced as to the causes and effects of the closing Thursday morning of all of the banks in California. Wise men who stand high in the financial world differ in their opinions on these two angles of the great crisis, so one guess is just about as good as another. But the fact remains that the three-days' holiday of closed banks will surely prevent any "run" on the banks which might come at this time. And "run" on bank is the worst thing that can happen, financially, to any community. It means, if carried far enough, that the bank must close permanently, and that means loss to the depositors as whole and the men who stand back of the bank stockholders. By the time the banks re-open next Monday it is thought the frenzy of withdrawal will have been overcome either in the minds of the people or through legislation making it compulsory. Other states that have declared similar banking holidays are now re-opening their banks with satisfactory results and business resumed in the normal channels. Let us have faith that this will be the outcome in California. Meanwhile, efforts to continue trade and business activity as usu will be made in Escondido. with an exchange worked out on confidence in the integrity of the merchants, business men and all citizens whose promises to pay are regarded as "good." So the whole thing sifts down to the matter of confidence, which is really the ultimate need and necessity of the situation, all the way from Escondido to New York, or even to Washington.

5. March 5, 1933 The Washington Herald Washington, DC

Article Text

EVEN 'SPEAKS' FACE CLOSING New York Booze Purveyors Hit by Bank Holidays; Cities Take Drastic Steps NEW YORK, March 4. (U.P.) If extended over a sufficient period, the bank moratorium may close New York's speakeasies, Chief of Police Edward P. Mulrooney said hopefully today. "If we go on a scrip basis, the speakeasies will fade away. I never heard of a speakeasy that could survive on scrip. There isn't enough mutual con fidence in that game." Speakeasy proprietors h were hard hit by today's bank action. Most of them reported a falling off of 25 per cent of their normal Saturday business. CLEVELAND, March 4. (U.P.) Currency will be replaced by scrip in Cleveland next week. An announcement late today after a conference of bankers, said. certificates would be issued by the Cleveland Clearing House Association for use by employers in paying salaries and wages to employes. The certificates will be in denominations of $1, $2. $5 and $10. They will be acceptable by stores in exchange for goods needed. WILMINGTON, Del., March 4 clared a banking holiday until further notice from Governor C. D. Buck. Delaware was the last State to enter the nation-wide bank holiday. "We had to do it," said Otto Nowland, president of the Wilmington Clearing House Association. "Our banks are sound, but due to the national situation we had to come in. We are proud Delaware was the last State to declare the bank holiday." PITTSBURGH, March 4 (U.P.). Hard-pressed taxpayers of Allegheny county, facing sale of their properties for delinquent taxes Monday, were given a moratorium today in view of Pennsylvania's two-day banking holiday. Sheriff Frank I. Gollmar announced the sale would be postponed until Friday because many taxpayers. with money in banks, would be unable to secure the cash required to bid in their properties. RICHMOND, Va., March 4 (U.S.) Virginia is to have a banking holiday Monday and Tuesday Attempted heavy runs here today caused it to be announced that all Richmond banks will be closed two days. Governor Pollard previously had said he saw no necessity for the holiday The State Corporation Commission this afternoon issued the order limiting withdrawals from numerous banks in the Valley of Virginia. DETROIT. March 4 (U.P.). City officials, merchants and members of the Detroit Clearing House Association were considering plans tonight for the issuance of scrip to supplement the sharply curtailed supply of currency City Comptroller Charles E. Gightor announced he would call a meeting of merchants and business men on Monday to consider plans for the issuance of $20,000.000 in scrip against delinquent or future tax receipts. The Clearing House Association likewise was formulating plans for issuance of scrip as a lien against frozen bank deposits. NEW ORLEANS. March 4 ((U.P.) Mayor T. Semmes Walmsley today warned residents of New Orleans against overstocking their homes with food. declaring: "It may be difficult to get new stocks of foodstuffs into the city if the present supply becomes exhausted.' The mayor ordered a large chain grocery store to limit its sales. SACRAMENTO. Cal., March 4 (U.P. .-Governor Ralph tonight proclaimed an extension of the California bank holiday until Thursday, March 9. The new three-day period will begin Monday with general holiday similar to the one now in effect, the governor said. JACKSON, Miss., March 4 (U P.) -Mississippi banks remained open today. J. S. Love. State superintendent of banks, issued a mandatory to all banks to allow no depositors to withdraw more than 5 per cent of his total balance DAYTON. Ohio, March 4 (U.S.) Bankers and merchants agreed today on system of clearing house scrip to meet the shortage of currency during the bank holiday The scrip will be issued beginning Monday in denominations of $5 and $10. $2. -Buy and Be American- MEMORIAL SERVICE A memorial service for the late Grand Duke Alexander of Russia will be held at 12:30 o'clock at the Russian Church of St. Nicholas, 1814 Riggs Pl. N. W.

6. March 5, 1933 The Los Angeles Times Los Angeles, CA

Article Text

EXTENDS BANKING HOLIDAY FOR Both Legislative Houses Approve Bill to Allow Continuance; Adjourn to Tomorrow BY CLEAVES JONES Staff SACRAMENTO, March of the bank holiday for Monday, Tuesday and Wednesday was ordered this afternoon by Gov. Rolph while the Legislature made appretoward legislation to ease the situation and allow progress banks to resume activity, but under restricted conditions. Monday will be general holiday, similar to the last three days, but Tuesday and Wednesday, under bill passed the Legislature today, will special holidays. courts and public offices functioning The authorize SuperintendBanks Rainey to set limit from banks the subject discussion all afternoon the conflicting elements appeared nearer The "suspension" provision changed limitation. The bill requires that banks treated equally. The uniform provision was demanded many bankers. also exempts public fund deposits of State, county and city, that public business proceed unhampered in that respect. ACTION DUE TOMORROW Theodore Roche, acting Gov Rolph's representative, wired the contents of the bill to Washington, where will scrutinized the Comptroller of the Currency. meets with his approval the bill will placed before Senate and Assempassage, possibly Monday. This was explained necessary for the reason that the Comptroller, under Couzens resolution has authority co-operwith State banking officials, but restricted along lines. the purpose to have the Comptroller ruling national banks and the Superintendent Banks ruling State banks in parallel lines. Both houses adjourned until Monday morning. The atmosphere in Sacramento tonight shows more hopeful tinge, the expectation that the legal and technical obstacles will be come by the latter part of the coming week. LEADERS IN CONFERENCE After several days of conflict and uncertainty, large group of legislators. bankers and business men met the Governor's council room and work the bill. group included the Senate and Assembly Banking, Finance and Ways and Means committees. Edward Elliott, chairman of the California Bankers' Association legislative committee; Williams for America, and representatives individual and independent banks: Teague the State Chamber Commerce: Building and Loan Commissioner Richardson, Rainey. Roche. Speaker Lit. and Webb. Senator McKinley and Assemblyman Williamson, chairman of the two and the introducers presided. The first amendment took from Rainey what was described dictatorial powers, which would have permitted him according to some fears, to set different rates of withdrawals in different banks. The limitation period restricted to sixty days, but can be renewed. WASHINGTON TO ACT "The situation all over the country has changed four hours," said Rainey. Federal Reserve banks in many not doing business. We expect some sort legislation

7. March 5, 1933 Nevada State Journal Reno, NV

Article Text

California Bank Extended Holiday Until Thursday Few Institutions Expected to Open Tuesday Morning SAN FRANCISCO, March Federal Reserve Bank of San Francisco closed today for the duration of California's banking holiday. Rolph tonight proclaimed an extension of the Callfornia bank holiday until Thursday, March The new three-day period will begin Monday with general holiday similar to the one now in effect. the governor said. The holiday Tuesday and Wednesday will be effective under terms of the special holiday bill passd today by the legislature. Provisions of the bill affect only banks and permit them to open or remain closed, it was explained. The action was taken by the governor after the assembly had approved the special holiday bill by vote of 54 or by exactly the required two-thirds vote. The senate passed the measure with only one opposition vote. The holiday extension will be fective for the three-day period re. gardless of what action is taken on specific bank bill now before the legislature, the governor said. Action on this measure was delayed until Monday. SAN FRANCISCO, March officials were bit puzzled tonight as they tried to determine course of action to follow Tuesday, when "special holiday," proclaimed by Governor Rolph, becomes effective. Under bill passed by the state legislature late today, the governor was permitted to proclaim special as well as general holidays. The banking moratorium was extended until March with the understanding that Monday would be general and Tuesday and Wednesay a cial holiday On special holiday banks may close or be opened as their officers desire. It was believed some banks would open Tuesday and Wednesday while most of them would remain closed until the legislature approves bill permitting restriction of withOfficials of the Bank of America discussed the situation tonight but said they probably would not reach decision or have an announcement to make until Monday. Wells Fargo Bank and Trust Company officials were understood to be desirous of opening Directors of other banks preferred to follow along with the majority and wait for some protective legislation.

8. March 30, 1933 Auburn Journal Auburn, CA

Article Text

BUSINESS CONDITIONS IN 12TH DISTRICT Banking developments in the 12th district, as in the United States generally, were of dominant importance during late February and the first half of March.- No outstanding changes in the general business or financial situation had been apparent during the first six weeks of the year, although the failure of two rather large and several smaller banks in January had been followed by withdrawals of deposits from other banks. About the time that the force of this adverse influence appeared to be coming to an end, however, widespread publicity given to the Michigan banking moratorium and to other unfavorable banking situations began to have an effect in the 12th district, and immediately following announcement of banking holidays or restrictions in other eastern states on February 25 a substantial run on California banks developed. This relatively heavy run lasted for three days -February 27, February 28 and March 1-when it was brought to an end by a proclamation of the governor of California closing all banks in the state for a three-day period. This action in California was followed by runs on banks in other far western states and by March 3 emergency banking restrictions had been placed in effect in all 12th district states. Withdrawal of currency during the week ending March 1, while at a re. cord rate, was SO short-lived that its effect upon district banks deposits was relatively small. Currency payments by banks to depositors were about 30 million dollars during the week ending March 1, compared with deposits in those banks of considerably more than three billion dollars at the beginning of this year. Banks met the unusual demand for currency by borrowing from the Federal Reserve bank of San Francisco and by drawing upon their reserve balances, which had been built up during the first half of February through transfers of funds from other parts of the United States. Reopening of banks under licenses issued by the secretary of the treasury and by state authorities commenced on March 13 and proceeded 20 most 12th district banks had resumed customary operations, although a good many were either in the hands of conservators or had been closed for liquidation. Currency which had been withdrawn prior to the closing of banks on March 2 was redeposited in large amounts between March 13 and March 20 and considcrably more gold coin was turned in to the Federal Reserve bank of San Francisco than had been withdrawn from January 1 to March 4. 1933. Redeposited currency was sent in to the reserve bank to repay borrowings and to increase reserve balances. Volume of production was slightly smaller in February than in January. Department store sales and intercoastal trafic through the Panama canal increased, but the number of cars of freight loaded on district railroads during the month decreased. Other trade measures changed little. Petroleum production during February approximated that of the preceding month. The cut of lumber declined contrary to the seasonal movement and the volume of engineering construction decreased sharply. Employment conditions remained about the same in February as in January. Commodity prices declined slightly during February, but advanced considerably during and immediately following the banking holiday in March. Non-statistical reports inicate that the banking restrictions during the first half of March reduced business activity. particularly retail sales volume. The engagement of Miss Edna May Bradbury and Willis Cruse has been anounced. Miss Bradbury, laughter of Mr. and Mrs. Lou Bradbury. was the incentive for a surprise party one recent evening given by a number of friends. During the evening she was presented with a shower of gifts for her new home.