Oilfields National Bank (Brea, CA)

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Episode Information

Episode UID
1300101598
Episode Type
Run → Suspension → Reopening
Bank Type
national
Bank ID
130010 national
Charter Number
13001
Start Date
February 27, 1933
Location
Brea, California

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
d7a9df725e47f448

Response Measures

Borrowed from banks or large institutions, Fed/other loan, Capital injected, Partial suspension, Full suspension, Books examined

Other: The bank was placed under a conservator and underwent a federal reorganization plan involving the Reconstruction Finance Corporation (RFC).

Description

The bank was caught in the California-wide run and holiday in March 1933, placed under a conservator, and later reopened under a federal reorganization plan.

Events (6)
1. October 22, 1926 Chartered
Source
historical_nic
2. February 27, 1933 Run
Cause
Macro News
Cause Details
Widespread publicity of the Michigan banking moratorium and other eastern state restrictions triggered a run on California banks.
Measures
Banks met the unusual demand for currency by borrowing from the Federal Reserve bank of San Francisco.
Newspaper Excerpt
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
Source
newspapers
3. March 1, 1933* Other
Newspaper Excerpt
Walker Davis, who has been charge conservator since the bank was closed several months ago. plan for the Brea institution was submitted to the comptroller of currency some time and approved by him. Meetings stockholders and depositors have been held and beyond some tape, the bank is ready for opening, was said. New stockholders have scribed $35,000 worth of stock and of this amount, $25,000 will be used as capital and $10,000 surplus. The F1nance has subscribed $25,000 of the capital, giving new capital of $50,000 and surplus of $10,000. When the bank is reopened, those who had money on deposit at the time the bank was closed, will be permitted to withdraw at least 65 per cent of their money, but not more than 75 per This is very generous amount comparison with banks where depositors been permitted to withdraw but small fraction of the money, was pointed officials have alrady examined the books of the bank and it expected that national bank and Federal Reserve examiners also will look over the books within short time. (Santa Ana Register, Sept 30, 1933). Note: The bank was placed under a conservator following the March holiday until its reorganization was complete in late 1933.
Source
newspapers
4. March 2, 1933 Suspension
Cause
Government Action
Cause Details
Mandatory state-wide banking holiday proclaimed by the Governor of California, followed by the federal holiday.
Newspaper Excerpt
The proclamation of Gov. Ralph at San Francisco makes mandatory the closing of California banks (or three-day period ending Saturday
Source
newspapers
5. September 30, 1933 Reopening
Newspaper Excerpt
Brea Oilfields National bank, one 375 national banks throughout the country set for reorganizain the plan to release still tied up, expects to be in full operation minor details are straightened revealed today
Source
newspapers
6. March 2, 1934 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (5)
1. 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)

2. 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.

3. 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.

4. 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.

5. September 30, 1933 The Register Santa Ana, CA

Article Text

BREA BANK REOPEN UNDER FEDERAL PLAN Brea Oilfields National bank, one 375 national banks throughout the country set for reorganizain the plan to release still tied up, expects to be in full operation minor details are straightened revealed today by assistant Walker Davis, who has been charge conservator since the bank was closed several months ago. plan for the Brea institution was submitted to the comptroller of currency some time and approved by him. Meetings stockholders and depositors have been held and beyond some tape," the bank is ready for opening, was said. New stockholders have scribed $35,000 worth of stock and of this amount, $25,000 will be used as capital and $10,000 surplus. The F1nance has subscribed $25,000 of the capital, giving new capital of $50,000 and surplus of $10,000. When the bank is reopened, those who had money on deposit at the time the bank was closed, will be permitted to withdraw at least 65 per cent of their money, but not more than 75 per This is very generous amount comparison with banks where depositors been permitted to withdraw but small fraction of the money, was pointed officials have alrady examined the books of the bank and it expected that national bank and Federal Reserve examiners also will look over the books within short time.