22388. Old National Bank (Spokane, WA)

View Charter #4668 on SPMC

Bank Information

Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
4668
Charter Number
4668
Start Date
March 2, 1933
Location
Spokane, Washington (47.659, -117.426)

Metadata

Model
gpt-5-mini
Short Digest
147213e3

Response Measures

None

Description

Old National Bank (Spokane) participated in the March 1933 bank holiday/suspension amid statewide/national banking holidays and local uneasiness; later a reorganization/reopening plan approved by the comptroller and RFC led to reopening plans announced Aug 3, 1933. No clear full depositor 'run' forcing failure is described; directors suspended to conserve assets amid broader banking holiday and nearby bank closures.

Events (4)
1. December 22, 1891 Chartered
Source
historical_nic
2. March 2, 1933 Suspension
Cause
Macro News
Cause Details
Bank holiday actions elsewhere and broad state/national banking holiday panic and nearby bank closures prompted directors to suspend to protect depositors.
Newspaper Excerpt
Durig the day word was received that eight states had declared banking holidays and the Old Natwo banks there, gave orders to tional bank in Spokane. one of the its string of Eastern Washington banks to remain closed today.
Source
newspapers
3. March 7, 1933 Other
Newspaper Excerpt
The Old National bank and the First National Trust resume these which they legislative last ThursAll other banks will begin tion of the on Federal Reserve bank are subwithdrawal without was made of banks following meeting attended by Barnes First Moody Old Kimbrough the Spokane and Fred of the Washington Trust and Davis of the Security Allowed Make Change.
Source
newspapers
4. August 3, 1933 Reopening
Newspaper Excerpt
Reopening of the Old National Bank and Union Trust company will be submitted for approval of depositors Friday in letters outlining in detail the plans for reorganization approved by the comptroller of the United States treasury and directors of the Reconstruction Finance corporation.
Source
newspapers

Newspaper Articles (5)
1. March 2, 1933 The Kennewick Courier-Reporter Kennewick, WA
Article from The Kennewick Courier-Reporter, March 2, 1933

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Article Text

MAYOR AMON DECLARES A BANK HOLIDAY First National Takes Advantage of New Law to SafeGuard Depositors - Still Open for Business Following in the wake of other banks thruout the state and nation, the First National of Kennewick this morning hung a proclamation by Mayor Amon on the front door, proclaming a week's holiday. Yesterday the same action was taken by the Yakima Valley bank at Yakima, and while the local institution is in excellent shape, fear of a run developing caused the directors to take the precautionary measures as a matter of protection to the depositors. As the news of the Yakima bank's action became known here, some of the depositors asked for their money. While not developing into what might be termed a "run" nevertheless the directors felt that such uneasiness was dangerous and determined to take advantage of the new banking law which permitted banks to protect themselves in situations of the kind. The new law provides for a moratorium of six months or less for a bank. During that time, the suspended institution will be open to receive deposits and transact business as before, except that during the period of the moratorium, no matters in connection with previous business can be concluded except under the direction of the state banking department. In other words, the concern will go into a process of liquidation or reorganization. It may receive deposits and this money will be held in trust and may be checked out as heretofore, but cannot be invested or used by the bank in any way in connection with its former business. Durig the day word was received that eight states had declared banking holidays and the Old Natwo banks there, gave orders to tional bank in Spokane. one of the its string of Eastern Washington banks to remain closed today. This order closed practically every bank in the Yakima, Spokane and Walla Walla districts. The Bank of Commerce in Pasco remained open thruout the day. The following statement was given The Courier-Reporter from the bank today: During the day preceding the time for opening on Thursday morning, the Directors were confronted with the problem of determining upon a course of action having as its object the protection of all depositors. The recent closing of one large near-by bank had caused a certain amount of uneasiness among the more nervous depositors. The fact that another bank close at hand had elected to avail itself of holiday privileges had so emphasized the situation and the action of a few depositors in withdrawing their deposits indicated so clearly that increased withdrawals might be expected that the directors felt compelled to adopt some method of conserving the assets of the bank for the benefit of all concerned. In making their decision, the directors had in mind, first the equal protection of all deposits, regardless of residence of depositor or character of deposit, and second, the proper resumption of normal operations at an early date. Three methods of procedure were open: 1. The directors might continue operations and attempt to meet all demands. If successful, the community would be greatly benefited. If unsuccessful, the attempt would result in a depletion of cash, a sacrifice of the best assest, followed by actual closing and liquidation. Such procedure would have meant the safety of those depositors who elected to withdraw their deposits and the sacrificing of the saving accounts and checking accounts not withdrawn, or 2. The directors might close and go immediately into liquidation. This would have been followed by distribution of liquid assets after a considerable period and by the conversion of other assets into cash in the usual manner and the final winding up of business with more or less loss, or 3. They might accept the benefit of National and State Stabilization laws recently passed which provide for the temporary suspension of the payment of obligations. In this manner it was possible for the directors to conserve all the assets of the bank, including the available cash, in such manner as to safeguard the interests of all depositors alike, making it impossible for a few excited depositors to withdraw their money to the detriment of others. The directors realize that by properly conserving the cash and other assets of the bank they would be greatly increasing the liklihood of normal resumption of business. Under an Act of Congress, ap(Continued on Page Eight.)

2. March 7, 1933 The Spokesman-Review Spokane, WA
Article from The Spokesman-Review, March 7, 1933

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Article Text

SPOKANE BANKS ASK CERTIFICATES Clearing House Gives Engraver Order for Plates. WIRE FOR RIGHT Expect Permission to Arrive Issue on Bank Assets. OPEN FOR DEPOSITS Commerce Chamber Talks Scrip N. Aids Perishable Freight Handling. The Spokane Clearing House association yesterday wired the treasury department at Washington, D. C., formally requesting permission to issue A clearing house certificates for the opbanking business. In anticipation the an given here for the graving the pected plates will ready tonight and printing will started on receipt Follow 1907 Design. The design of the Spokane clearing house certificates will follow generally of 1907, it was decided meeting last night of the association. It will be smaller size than the 1907 certificate and measure oneeighth an inch wider than present small currency bills and quarter of an inch longer. The front of the 1907 certificate bears the picture of George Washington, with the reverse side of yellowish tone. The law does not permit the design to resemble currency detail that apt to be mistaken for money, was explained. $1, $5, $10 and $20 Denominations. the will be $1, $5, $10 and $20. The the $2 denomination of the objection handling such bills. The was undetermined as picture the certificates was decided await the the lithographer. Bankers participated in the certificate said signing of the certificates task. All bank there were 14 banks with six made deputy managers of the association. They signed certificates all night, for number nights, and then day explained them. Kimbrough, president of the NEW clearing house vice president of the Spokane and Eastern Trust company, for the clearing house, rather the "The final and action regarding house ings doubt will be effected by such rules and may be from the United States deSpecific has with made to the for authorization to had received Both word up to late but was gave last night, he infant outline for a working plan holding Expect Assets to Form Reserve. head Bankers of the opinion tain of the assets will used for the of to It by the clearThis will be placed with the The of to for the business the house banks, together with the are points to study by the treasury departIn 1907 clearing house certificates for slightly with the period their activity for about six according to the veteran bankers. To Operate Under Ruling. by retary of the Treasury Woodin permitting banks to create special trustfund subject to demand or brought the that all house would operate under that ruling this morning The Old National bank and the First National Trust resume these which they legislative last ThursAll other banks will begin tion of the on Federal Reserve bank are subwithdrawal without was made of banks following meeting attended by Barnes First Moody Old Kimbrough the Spokane and Fred of the Washington Trust and Davis of the Security Allowed Make Change. D. Lyle Davis, managing director the Federal Bank of San Francisco, recelved two permitting the banks to their safety deposit vaults and change for their on opened the doors of the banks and the clink silver was when small bales of made their from stores. change in demand, with dollars Safety deposit were well patronized There persons in the lobbles of the banks. banker more be found in the safety box departBanking executives stated (Continued on six. column

3. March 7, 1933 The Spokesman-Review Spokane, WA
Article from The Spokesman-Review, March 7, 1933

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Article Text

SPOKANE BANKS ASK Clearing House Gives Engraver Order for Plates. WIRE FOR RIGHT Expect Permission to Arrive Issue on Bank Assets. OPEN FOR DEPOSITS Commerce Chamber Talks Scrip N. Aids Perishable Freight Handling. The Spokane Clearing House assoclation wired the at formally permission to clearing house for the opof banking In anticipation the order given here for the engraving of the certificates. It expected the plates will ready tonight and printing will be started on receipt of Follow 1907 Design. The design of the Spokane clearing will follow generally that of 1907. it was decided last night of the will smaller in size than the 1907 will eighth of an inch wider than the present small and quarter of inch longer. The front of the 1907 certificate the of George Washington, with the side of yellowish tone. The law does not permit the design to detail is apt to be mistaken for money, explained. $1, $5, $10 and $20 Denominations. The denominations of the new tificates be $1, $5, $10 and $20. The association cut out the $2 denomination because the superstitious objection many persons handling such bills. The was undetermined as picture on the certificates and it was decided the of the Bankers participated in the 1907 said the signing of the of stupendous All bank was there 14 banks then compared with six deputy of the associaThey all night, for of nights, then the explained president of the vice president the Spokane Eastern Trust comspeaking for the clearing house, issued the following statement: "The final decision and action garding house certificates doubt be effected by such rules and may be received from the United States treasury department. Specific request made to the department for authorto certificates. President received word to last night, was receive outline for plan Expect Assets to Form Reserve. Bankers were of the opinion percentage of the bank's assets will be used for the by the clearing house association. This will be placed with the Federal The volume of certificates to care for the business the clearing house banks, together with the points believed to study by the treasury departIn 1907 clearing house certificates were for slightly the period activity for about six to the bankers. To Operate Under Ruling Authority granted yesterday by Secretary the Treasury Woodin permitting banks to create special trustfund subject to withdrawal on demand limitation or brought the that all house would operate under that ruling this The Old National bank and the First Trust will resume these state legislative last Thursday. All other banks will begin operathe received are be on deposit the bank and are subto without The was made of following meeting attended Barnes the First Moody Old National, Kimbrough Fred ton the Washington Trust and Davis of the Security State Allowed to Make Change. D. Lyle the Federal the Reserve Bank of San Francisco, permitting the celved two banks to open their safety deposit and to change for their vaults customers on opened the the banks and the clink doors of was when silver pieces of made their small bales stores. change in with dollars boxes well deposit few persons in the of the banks One be found in the safety box departBanking executives stated all (Continued on page column

4. August 3, 1933 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, August 3, 1933

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Article Text

ASK DEPOSITORS TO GIVE O. K. TO REOPENING Reopening of the Old National Bank and Union Trust com pany will be submitted for approval of depositors Friday in letters outlining in detail the plans for reorganization approved by the comptroller of the United States treasury and directors of the Reconstruction Finance corporation. Copies will be mailed to each of the more than 18,000 depositors, A W. Witherspoon, conservator, announced today. The bank is expected to reopen with between $7,000,000 and $8,000,000 of deposits This will include 40 per cent of deposits at the time the bank suspended, plus public funds and special trust accounts now on deposit. Twelve affiliated Inland Empire country banks will reopen with the Old National The country banks, which will reopen on a 100 per cent basis, include: Open Country Banks. Creston State bank, Harrington State bank, First National bank of Medical Lake, First National bank of Moscow. Idaho, Security National bank of Palouse, Prosser State bank, First National bank of Reardan First National bank of Ritzville, State bank of Spangle. Bank of Spirit Lake, Idaho, First National bank in Sprague and First State bank of Washtucna Deposits to be released by the reopening of the country banks amount to about $3,000,000 Mr. Witherspoon and D. W. Twohy. chairman of the board of the Old National. returned just this week from Washington, D. C., where they spent three weeks working out details of the plan and securing approval of officials of the R. C. and the office of the comptroller of the treasury According to the plan. 40 per cent of deposits will be released immediately Certificates of participation in the reserved assets of the bank will be accepted by depositors for the remaining 60 per cent. These certificates will bear Interest at the rate of per and will be liquidated assets of the bank are realized upon after made by the R. C. have been repaid The certificates will be paid off in full. plus interest. before any dividends are paid to holders All of the corporation reserved plus the stock of the Old National and the ated country will be held guarantee of payment of the cer clared today he confident all was depositors eventually will receive 100 per cent of their accounts The will become fective upon of approval the writing by depositors per cent of the gross of provided

5. September 29, 1933 Oakland Tribune Oakland, CA
Article from Oakland Tribune, September 29, 1933

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Article Text

TO OPEN PLAN CLOSEDBANKS COMPLETED of NaReorganization 37 tional States to Be Undertaken WASHINGTON Pushing administration's plans to reopen banks of the nation and expand purchasing the Treasury has details for of 375 national banks followed the recent that of billions dollars still tied up in the closed of the approval of the made comptroller department has to speed up the ENSES TO OPEN O'Connor did not say soon the banks would open for busihimself public saying the plans had been approved for banks follow outlined before can recieve reopen The report on the general banking situation 13.080 all operating September unrestricted deposits 000 At 2575 banks deposits still were That situation laid before President White Sunday night. At that time said reorganization plans 200 banks had and they would resume had the required additions capital. banks to be reorganized California Oilfield Brea: Colton: Coast National Pasadena Pasadena: First NaIdaho Lewiston National LewisNew First National. A1buquerque Oregon National ClatsFirst Salem Washington National Medical National. Reardan: First National Old National Spokane: First National. Sprague