gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
0b411ecfdb281f23
Response Measures
None
Description
Bank suspended June 23, 1893 (linked to Pacific Bank failure), reopened Aug 29, 1893, and later placed in liquidation/receivership May 1, 1894.
Events (4)
1.June 23, 1893Suspension
Cause
Local Banks
Cause Details
Suspended after Pacific Bank closed and clearing-house would not accept Pacific Bank paper; People's Home lacked coin to meet the run expected after Pacific's suspension.
Newspaper Excerpt
It may be that the closing of the doors of the Pacific Bank will result in the suspension of the People's Home Savings Bank
Source
newspapers
2.August 29, 1893Reopening
Newspaper Excerpt
The People's Home Savings Bank ... opened for business this morning. The bank has deposits of $2,000,000, and in order to avoid a run will pay out only 2 per cent. of the amounts deposited
Source
newspapers
3.August 29, 1893Run
Cause
Local Banks
Cause Details
Depositors lined up and withdrew funds when the bank reopened, reflecting continued panic following the earlier Pacific Bank suspension.
Measures
Limited payouts (2% of amounts deposited) and controlled entry; previously invoked law allowing savings banks to defer payment 10/30/60 days.
Newspaper Excerpt
As early as 7 o'clock people with passbooks in their hands... by the time an hour had passed, the sidewalk was crowded with a throng of people
Source
newspapers
4.May 1, 1894Receivership
Newspaper Excerpt
Attorney General Hart today announced that he would immediately begin suit to place the People's Home Savings bank in liquidation as an insolvent institution. Judge Hebbard ... appointed General John F. Sheehan receiver of the bank and placed his bond at $50,000.
Source
newspapers
Newspaper Articles (21)
1.June 23, 1893The Record-UnionSacramento, CA
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Article Text
PACIFIC BANK. The Board of Directors Decide Not to Open Its Doors To-Day. SAN FRANCISCO, June 22.-At a meeting of the Board of Directors of the Pacific Bank to-night it was decided not to open the doors to-morrow. The direct cause of the suspension is notice from the Clearing-house Association that the bank's paper would not hereafter be accepted. It has been known for some time that the bank was laboring under financial difficulties, and the announcement of the action of the board does not create great surprise. The Pacific Bank was organized in 1863 by R. H. McDonald, and its present manager is R. H. McDonald, Jr. It has a paid-up capital stock of $1,000,000, a nominal reserve of $700,000 and deposits of about $1,500,000, according to the recent official report to the State Bank Examiners. Its loans and discounts are said to be about $2,500,000. The failure seems to be altogether due to the recent monetary troubles, and it is expected that the depositors will lose nothing. Manager McDonald says that the bank will resume business in a short time, and that the suspension is resorted to that the bank may realize from its assets and protect itself from a sudden run by depositors. It may be that the closing of the doors of the Pacific Bank will result in the suspension of the People's Home Savings Bank, a collateral institution under practically the same management. It has a guaranteed capital stock of $1,000,000, of which one-third is paid up in cash. According to a recent statement of the bank, it has over 10,000 depositors, and total deposits of $1,700,000. Its assets consist of real estate, county and school district bonds and SO forth. The depositors probably will be paid all. There seems to be no reason to apprehend that the suspension of these institutions will precipitate a run on other banks. The leading institutions are well fortified and prepared to meet any ordinary emergency. R. H. McDonald, Jr., to-night said he expected a run would be made to-morrow on the People's Home Savings Bank, in consequence of the closing of the Pacific Bank, but the bank officials would take advantage of the law which allows savings banks to defer payment ten, thirty and sixty days. The institution is perfectly solvent, he said, and in this manner he hopes to tide over the present emergency.
2.June 23, 1893The HeraldLos Angeles, CA
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A SAN FRANCISCO SUSPENSION. The Pacific Bank Temporarily Closes Its Doors. SAN FRANCISCO, June 22.-At a meeting of the board of directors of the Pacific bank tonight it was decided not to open the doors tomorrow. The direct cause of the euspension is a notice from the clearing house association that the bank's paper would not hereafter be accepted. It had been known for some time that the bank was laboring under financial difficulties, and the announcement of the action of the board does not create great surprise, The Pacific bank was organized in 1863 by R. H. McDonald, and its present manager is R. H. McDonald, jr. It has a paid-up capital stock of $1,000,000, a nominal reserve of about $700,000, and deposits of about $1,500,000, according to the recent official report of the state bank examiners. Its loans and diecounts are said to be about $2,500,000. The failure seems to be altogether due to the recent monetary troubles, and it is expected that the depositors will lose nothing. Manager McDonald says that the bank will resume business in a short time, and that the suspension is resorted to that the bank may realize from its assets and protect itself from a eudden run by depositors. It may be that the closing of the doors of the Pacific bank will result in the suspension of the People's Home Savings bank, a collateral institution under practically the same management. It has a guaranteed capital stock of $1,000,000, of which one-third is paid up in cash, According to a recent statement of the bank, it has over 10,000 depositore and total deposits of $1,700,000. Its assets consist of real estate, county and school dietrict bonde, etc. The depositors probably will be paid in full. There seems to be no reason to apprehend that the suspension of these institutions will precipitate a run on other banks. The leading institutions are well fortified and prepared to meet any ordinary emergency. R. H. McDonald, jr., tonight said he expected a run would be made tomorow on the People's Home Savings bank, in consequence of the closing of the Pacific bank. But the bank officials would take advantage of the law which allows savings banks to defer payment 10, 30 and 60 days. The institution is perfectly solvent, he said, and in this manner hopes to tide over the present emergency.
3.June 29, 1893The Russellville DemocratRussellville, AR
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PACIFIC BANK. The Directors Decided Not to Open Doors This Morning. BANK'S PAPER. The Institution Will Resume Business Again Soon-Depositors Will Not Lose. SAN FRANCISCO, June 23.-The board of directors of the PacificBank decided not to open its doors this morning. The direct cause of the suspension is a notice from the Clearing House Association that the bank's paper will not be receipted hereafter. It has been known some time the bank was laboring under financial difficulties, and the announcement of the action of the board does not create great surprise. Pacific Bank was organized in 1863 by R. H. McDonald and the present manager, R. H. McDonald, Jrg It has a paid up capital stock of $1,000 000, nominal reserve about $700,000 and deposits of about $1,500,000, according to a recent official report. Loans and discounts about $2,500,000. The failure seems to be alto. gether due to recent monetary troubles, and it is expected the depositors will lose nothing. Manager McDonald says the bank will resume business in a short time, and the suspension was resorted to that the bank may realize from its assets and protect itself from a sudden run by depositors. It may be the closing down of the Pacific Bank will result in the suspension of the People's Home Savings Bank, a collateral institution under practically the same management. It has a guaranteed capital stock of a million dollars, of which one-third is paid up cash. According to a recent statement the People's Bank has total deposits of $1,700,000. The outlook this morning was that there seems to be no reasons to apprehend the suspension of these institutions would precipitate a run on the other banks. Leading institutions are said to be well fortified and prepared to meet any ordinary emergency. Manager McDonald said he expected a run to be made to day on the People's Home Savings Bank, but the bank officials would take advantage of the law, which allows a savings bank to defer payment to ten, thirty and sixty days. The institution is perfectly solvent he says, and in this manner hopes to tide over the present emergency.
4.June 30, 1893Iowa County DemocratMineral Point, WI
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BANK WAS BADLY MANAGED. Financial Houses of San Francisco Not Weakened. SAN FRANCISCO, June 24.-The concrete opinion of the bankers of San Francisco is that the Pacific Bank was compelled to suspend payment because it made unwise investments in securities from which it could not get out its money and that the People's Home Savings Bank was compelled to suspend because it had not on hand coin enough to stand the run sure to follow the announcement of the suspension of the Pacific Bank, its business associate. In ther words, the failure of the Pacific bank was not more due to the present financial troubles than to a fundamental weakness in its management. The flurry seems to have passed
5.August 13, 1893The Morning CallSan Francisco, CA
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A Receiver for the Hom Savings Bank. THE ORDER IS SUSPENDED A Petition by the Stockholders o Which J. E. Farnum Was Appointed Temporarily. J. E. Farnum was appointed temporar receiver of the People's Home Saving Bank by Judge Sanderson at 11 o'cloc yesterday morning, service being mad 4 P. M. on a complaint signed by Directo Joseph Winterburn and Stockholders Wi liam H. Barnes, E. H. Knight, R. D. Rol bins, W. I. Wilson and Louis Corriveat and an order was entered citing the de fendants, the People's Home Savings Ban and its directors, to appear next Thursda and show cause why the receiver shoul not be permanently appointed. At 11 o'clock last night Judge Sanderso suspended the temporary order and cite the plaintiffs to appear at 11 o'clock to morrow morning and show cause why th temporary order should not be revoked. These orders, follo wing each other i such rapid succession, are the result of tl complaint which was filed yesterday. It is an action brought to obtain a ten porary injunction and restraining order et joining the defendants from taking posse sion of or making any disposition of an of the property, moneys, funds or secur ties of the People's Home Savings Banl and upon final hearing that the order ma be made perpetual. In the complaint it is alleged that eve since the organization of the savings bank the management of its affairs has bee and IS still under the control and directio of persons who were officers, directors an employes of the Pacific Bank, and the these persons constituted a majority of th board of directors of the savings banl and that they have at all mes controlled directed and managed the business of th savings bank in the interest of the Pacif Bank, and not in the interest of the Sa ings bank and its stockholders and depos tors. It is further alleged that the Pacifi Bank was made treasurer for the saving bank, and while this was the cas the board of directors retained th same legal advisers as were in the emplo of the Pacific Bank, and that all loans an investments were made under the orde of the board of directors, constituted a aforesaid, and under the direction of th attorneys of the Pacific Bank. It is further charged that for a lon time prior to June 1, 1893, the defendant conspired to increase the money an funds of the Pacific Bank to the negle ( the affairs of the savings bank, and the the money of the savings bank, wh c should have been loaned out by that 11 stitute, was first deposited in the Pacifi Bank and then loaned out, the latte bank getting the interest. Then follows a long list of transaction by which hundreds of thousands of do lars were tossed about by the financie like rubber balls in a nursery, only th Pacific Bank never came out the worse fo the tossing. The plaintiffs t en aver that on accoun of the fraudulentactings of the defendants the directors of the savings bank. and th fraudulent diversion of the funds an
6.August 28, 1893Grand Rapids HeraldGrand Rapids, MI
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Will Resume Tomorrow. SAN FRANCISCO, Aug. 27.-Judge Sanderson yesterday ruled that he had no authority to appoint receiver of the People's Home Savings bank as asked by petitioners. The bank has decided to resume business next Tuesday.
7.August 29, 1893The Jersey City NewsJersey City, NJ
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BANK RE-OPENED SAN FRANCISO, August 29. 1893.-The People's Home Savings Bank, which closed its doors June 23, opened for business this morning. The bank has deposits of two million dollars, and in order to avoid a run will pay out only two per cent. of amounts n enosited.
A San Francisco Bank Resumes. SAN FRANCISCO, Aug. 29-The People's Home savings bank, which closed its doors on June 22d, opened for business this morning. The bank has deposits of $2,000,000, and in order to avoid a run will pay out only 2 per cent of the amounts deposited.
9.August 30, 1893Wheeling RegisterWheeling, WV
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Confidence is Returning. NEW YORK, August 29.-The World to-day prints a list of twenty banks which have resumed business, also a list of about fifty manufacturing establishments which have resumed operations since August 12. SAN FRANCISCO, August 29.-The Peoples' Home Savings Bank, which closed its doors June 23, opened for business this morning. The bank has deposits of $2,000.000, and in order to avoid a run will pay out only 2 per cent. of amounts deposited.
Open for Business. SAN FRANCISCO, Aug. 30.-The People's Home Savings bank, which closed its doors June 23, has again opened for business. The bank has deposits of $2,000,000, and in order to avoid a run will pay out only 2 per cent of the amounts deposited.
11.August 30, 1893The Morning CallSan Francisco, CA
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COIN. RECEIVING A Mild Run on the Home Savings Bank. IN BRIGHT SILVER DOLLARS. Directors of the Pacific Bank Approve the Action in the Insolvency Proceedings. The managers of the People's Home Savings Bank had expected a small run of depositors when they opened for business yesterday morning, and they were not disappointed. As early as 7 o'clock people with passbooks in their hands and an expectant look on their faces began to gather in front of the banking-house on Market street, and by the time an hour had passed, the sidewalk was crowded with a throng of people, most of whom were trying to elbow their way up to the door, in order to be the first to get in when business hours arrived. The two or three special policemen who had been detailed to keep a passageway cleared, and incidentally prevent any disturbance, had enough to do in keeping the crowd moving, while the bluecoat who guarded the big glass door wasso elongated by the pressure that he towered away above the swaying crowd about him. All classes were represented. Professional men with their silk tiles brushed shoulders with an artisan who had got a "half a day off" that he might withdraw his account. Some few business men who had commercial accounts slipped out of the office for a little while, and almost half of the constituents of the crowd were women. The doors were opened at 10 o'clock, and a bunch of depositors rushed in. Then the doors were closed, and as fast as these were disposed of they were let out through the rear door and a fresh delegation came in at the front. But it was slow work. Only one clerk could act as paying teller, and with all the questions that were asked and the explanations that were necessary, the line moved slowly. During the day 110 cus-
12.September 9, 1893The L'anse SentinelL'anse, MI
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Savings Bank Resumes Business. SAN FRANCISCO. Cal., Aug. 30.-The People's Home savings bank, which closed its doors June 23, opened for business this morning. The bank has deposits of $2,000,000, and in order to avoid a run will pay out only 2 per cent of amounts deposited.
13.May 2, 1894The Wichita Daily EagleWichita, KS
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FRISCO BANK TROUBLE. SAN FRANCISCO. May 1.-Attorney General Hart today announced that he would immediately begin suit to place the People's Home Savings bank in liquidation as an insolvent institution. General Hart also threatens to swear out warrants for the arrest of certain officials of the bank, but he declined to say who they are. Judge Hubbard this alternoon appointed General John F. Sheeban receiver of the bank and placed his bond at $50,000.
14.May 2, 1894The Daily Morning AstorianAstoria, OR
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AN INSOLVENT BANK. San Francisco, May 1.-Attorney General Hart today announced that he would immediately begin suit to place the People's Home Savings bank in liquidation as an insolvent institution. Judge Hebbard this afternoon appointed Gen. John F. Sheehan receiver.
15.May 2, 1894The Salt Lake HeraldSalt Lake City, UT
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A ROTTEN BANK. San Francisco, April 1.-Attorney-General Hart today announced he would immediately begin suit to place the People's Home Savings bank in liquidation as an insolvent institution. General Hart also threatens to swear out warrants for the arrest of certain officials of the bank, but he declines to say who they are. Judge Hebbard this afternoon appointed General John F. Sheehan receiver of the bank and placed his bonds at $50,000.
16.December 16, 1894The Morning CallSan Francisco, CA
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PEOPLE'S HOME SAVINGS BANK DEPOSITORS. | T wo THOUSAND (2000) DEPOSITORS, REPresenting claims aggregating $550,000, having already assigned their deposits to us for collection, and our attorneys being now engaged in the institution of appropriate proceedings to enforce such collection, we hereby give public notice that all depositors desiring to assign their claims against the PEOPLE'S HOME SAVINGS BANK must do 80 on or before MONDAY, THE 24TH DAY OF DECEMBER, 1894. All depositors wishing to avail themselves of our services must make their assignments on or before that date, OTHERWISE THEY WILL NOT BE RECEIVED. Depositors wishing to make assignments may do so at room 11, SAFE DEPOSIT BUILDING, 328 MONTGOMERY ST., SAN FRANCISCO, between the hours of 9 o'clock A. M. and 5 o'clock P. M. BRING WITH YOU YOUR PASSBOOKS. Depositors at a distance may send for forms of assignment. CALIFORNIA COMPANY. SAFE DEPOSIT AND TRUST J.D. FRY, President. J. DALZELL BROWN, Secretary. Dated December 14, 1894. del4 eod td 12p
17.January 22, 1895The Morning CallSan Francisco, CA
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HAVE TAKEN CONTROL The People's Home Savings Bank Imbroglio. AN INVESTIGATION GOING ON. The Bank Commissioners Will Cut Down Expenses. OTHER CHANGES TO BE MADE AT ONCE. After a Consultation With the Directors the Commissioners Decided to Look Into the Bank's Affairs. Another change took place in the affairs of the People's Home Savings Bank yesterday. The Bank Commissioners are now in control of the institution and will fix the number of employes and decide what their remuneration shall be. John F. Sheehan, who for eight months was receiver, has been appointed manager of the board of directors. As receiver his salary was $500 a month, but it is safe to say that the Commissioners will cut those figures in two. The board got to work yesterday morning about 10 o'clock. The first Commissioner to arrive was Paris Kilburn. He was followed a few minutes later by Colonel J. B. Fuller and Judge W. H. McGee. They did not waste any time, but at once went to work. They counted the cash in bank and on hand and then proceeded to thoroughly overhaul the affairs of the institution. The cash, stocks, bonds and warrants were found to agree with the statement furnished by Sheehan and James Alva Watt, his attorney. Then the other assets were taken up. It will require some time to complete this job, as the Commissioners intend making a thorough examination into the value of each piece of property held by the bank. Some big changes are liable to be made in valuations, as several of the properties would not bring to-day in the open market the money that has been advanced on them. When this work has been completed the salaries of the employes of the bank will be fixed, and then the institution will have a rest for a time. How long that time will be depends on Commissioners Kilburn, Fuller and McGee. The present investigation only anticipates the action of the Bank Commissioners. In any event the bank's affairs would have been overhauled in the near future. Owing, however, to the fact that the receiver had been discharged and that the directors were in full control, it was determined to look into the matter at once. When they have completed their labors the new board will be in full control, and will arrange matters to suit themselves, subject to the approval of the Bank Commissioners. The latter will insist upon the curtailing of expenses, and a number of changes are sure to follow. As receiver, Sheehan drew $500 a month, but as manager the Commissioners will probably only allow him $250, or possibly less. It is also probable that the services of James Alva Watt will be dispensed with. He was attorney for the receiver, but the board of directors may put another man in the position. Yesterday was not the first occasion upon which the directors of the bank and the Commissioners had talked over the affairs of the People's Home Savings Bank. Last Saturday afternoon the directors and officers of the bank met Messrs. Kilburn, Fuller and McGee in the rooms of the commission, and a conference that last three hours followed. Ways and means were discussed and a policy concerning the conduct of the bank's affairs was agreed upon. One hopeful feature
18.July 21, 1895The HeraldLos Angeles, CA
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Sheehan Will Retaliate SAN FRANCISCO, July 20.--Gen John F. Sheehan, receiver of the People's Home Savings bank, has declared war and announces that he will sue for libel the disgruntled depositors who have been denouncing his management of the bank's affairs Sheehan declares that all his acts have been above suspicion, and that he had legal authority for every step taken by him.
19.August 12, 1895The San Francisco CallSan Francisco, CA
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THE McDONALD FAMILY. Dr. R. H. Still Lingering at Carlsbad for His Health. R. H. JR. TALKS IN JAIL. Frank Dwells on an Oriental Island. People's Home Stockholders Liable. The Legislature at its. last session amended the law creating the Board of Bank Commissioners, with a view of conferring greater power on the commission. According to reports which are believed to be authentic the Commissioners will request the directors of the People's Home Savings Bank to levy an assessment on the stockholders of that insolvent institution. Depositors, whose deposits in the aggregate approximate $700,000, have assigned to the Safe Deposit Company their books, and this company, acting as their agent for the collection of the money, is presumably pressing the Bank Commissioners to act in the matter. The capital stock of the People's Home Bank consisted of 10,000 shares, but the holders have paid in only 30 per cent. How much of the stock was held by Dr. McDonald, Dick McDonald and Frank McDonald is not known. Men who have facilities for obtaining inside knowledge assert that 9000 shares are held bv persons from whom no assessment could be collected, as they are not men of means and property. Several stockholders are known, however. to be possessed of worldly goods, lands, money, etc., and they might be reached by the assessment. At last accounts Dr. McDonald was at Carlsbad, but the waters of that famous resort had not restored his health so as to enable him to venture on a return journey to the United States. He wrote recently that it was his purpose to remain longer in Europe and try other resorts. Frank McDonald is on an island somewhere off the coast of Asia. He went there via Japan, and has found the surroundings agreeable. He has not advised his family or friends of a desire to return to San Francisco. Captain J. M. McDonald, ex-Supervisor, is still standing at his post of duty to preserve all that can be saved from the wreck of the Pacific Bank. He has in his possession the details, data and plot to write a drama on the financial schemes of his brother, Dr. McDonald, but he has no leisure time to dramatize the story, even if his inclinations should prompt him to present the history of the bank wreck in stage form, In speaking recently of some of the transactions which plunged the Pacific Bank into ruin the captain said: "The
20.October 17, 1896The San Francisco CallSan Francisco, CA
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WAR ON JUDGE HEBBARD People's Home Bank Depositors Begin a Bitter Fight Against Him. E'even Thousand of Them Will Retaliate for His Appointment of G neral Sheehan. The depositors of the People's Home Savings Bank have determined to make an organized fight against Judge Hebbard, the Non-Partisan nominee for Superior Judge. They have been working toward this end for some time past, and are now fully decided on the course of action to be pursued in their campaign against the Judge, which is to be opened at once all over the City and wherever a nucleus of the unfortunate depositors exists. This tight 19 first of all to assume definite shape in the nature of an appeal to the voters of San Francisco setting forth the misfortunes of the People's Bank depositors and their attitude toward the institution. The appeal has already been written and is now in the printer's hands. So within a few days it may be expected that it will be spread broadcast tbroughout San Francisco. The executive committee of the depositors has charge of the work of publishing and distributing the appeal in circular form. As there are about 11,000 depositors in all, and each one will be given an opportunity to constitute himself a committee of one to further distribute the appeal, it is believed by the executive committee that this battle will assume immense proportions. Judge Hebbard appointed General Sheehan receiver of the bank about May 1,1894. The appointment was made in an action brought by the people of California upon the relation of AttorneyGeneral Hart against the bank, but it was subsequently held by the Supreme Court that the appointment was in excess of the jurisdiction of the court and was void, Shortly after the appointment was made another suit was begun, that of Nathan Goldtree versus the directors and stockholders of the bank. This suit was based on averments of fraudulent conduct on the part of the former directors, and General Sheehan was appointed receiver by Hebbard in this suit also. Sheehan continued to act as receiver under those appointments until January, 1895, when the receivership proceedings were nullified by the Supreme Court. So or of the bank. ceivership there was never any valid What has legal most re- of all aroused the indignation of the depositors is that they believe between $42,000 and $43,000 was squandered by the management during the term of receivership. The executive committee maintains that the appointment of Sheehan was essentially a political one, because he knew nothing of banks and banking and still less of handling bonds, securities and the finances of a banking institution. Acting under this conviction they have prepared to wage a vigorous war against Judge Hebbard.
21.May 7, 1897The San Francisco CallSan Francisco, CA
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NO TASTE FOR BANK BOOK TALES Hebbard Fights Against Opening Records of Their Pages. CONSTANT FENCING FOR DELAY. His Attorneys Finally Decide Not to Cross-Examine Livernash. SOME PROMISES THAT WERE NOT KEPT. More Details of the Attempt to Break Up the Bush-Street Theater Meeting That little chapter of the inside manipulations of the stock of the People's Home Savings Bank, by which Receiver John F. Sheehan and his attorney, James A. Watt,
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
