Old National Bank & Union Trust Company (Spokane, WA)

View Charter #4668 on SPMC View balance sheet

Episode Information

Episode UID
466801599
Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
46680 national
Charter Number
4668
Start Date
March 2, 1933
Location
Spokane, Washington (47.659, -117.426)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
d798d7c08fb9fe00

Response Measures

None

Events (3)
1. December 22, 1891 Chartered
Source
historical_nic
2. March 2, 1933 Suspension
Cause
Government Action
Cause Details
Banks in the state/nation declared banking holidays and directors ordered Old National to remain closed under new moratorium law.
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. October 2, 1933 Reopening
Newspaper Excerpt
GREET REOPENING OF OLD NATIONAL ... hailing the reopening Trust company Monday
Source
newspapers

Newspaper Articles (11)
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. May 27, 1933 The Spokesman-Review Spokane, WA

Article Text

OLD NATIONAL HEADS GO EAST Twohy, Witherspoon, Schoonover to Appear Before Currency Comptroller. D. Twohy, chairman of the to board the Old National Bank and Union Trust left Thursday Washington, D. where he expected meet W. and John Schoonover, trio appear before the the in connection with plan for the of the Old National and Union flew from the Spokane San expedite getting the approval the reopening program Madland, national for the western district, was to that city the for yesterday or today. Whether he would fly go by train not known. When the left Spokane was expected he would fly from San Francisco to the national capital to save time. Declare Progress Things were favorably saw in the departure Mr. Twohy that the next step getting of the opened probably will be up to the No banker would venture to how soon the comptroller might pass the dations the The opinhowever, there was speed. From the comptroller's office already has the examination Old bankers believed the comptroller had good situation and this knowledge would make for early action. Reid. assistant conservator, following announcement: Does Not Fix Reopening Date. Old Bank and Trust by and the direction of the of the through the bank This act does not limit the certain period or date by which reopening be The foregoing statement was inspired, explained, inquiries to the Old many National the the the provisions of the bank under act, which required its reopening by certain date.

3. July 8, 1933 Spokane Chronicle Spokane, WA

Article Text

WAIT C. COIN AT OLD NATIONAL Approval of the plan for reorganization reopening of the Old National Bank & Union Trust company has been given by the office of the comptroller the currency at Washington. dependent upon Reconstruction Finance corporation officials granting $3,850,000 in loans requested Action on the loans by the Reconstruction Finance corporation is ex pected about week The Spokane loan agency of the Reconstruction Finance corporation already has placed its stamp of complete approval on the plan, so regarded the loans will be sanctioned by the board at the national It the report assets of the institution, made by the local Finance corporation examiners, that Washington city officials now are studying to make their decision Give 50 Per Cent. The plan will release 50 per cent of deposits immediately. it is understood. with the balance forthcoming in installments as assets are liquidated. Such are the highlights of word to the Chronicle today from its correspondent at Washington city. Once the plan is approved by both the Reconstruction Finance corporation and the comptroller's office at Washington, it will be announced nere and submitted to depositors Details of the plan will be held confidential until that time. however. the correspondent was informed Depositors representing 75 per cent of the dollar volume of deposits at the time the bank suspended must approve the plan, when announced, before the bank will be licensed to open and Reconstruction Finance cor. poration funds advanced The application to the Reconstruetion Finance corporation for loans includes three points: purchase preferred stock in the reorganized bank and two straight loans to the Investment and Securities company of Spokane, to be passed on to the one for and the other for Approval the request for purchase of preferred stock confidently expected as granting of the $2.500,000 loan. If just these two requests are approved. the bank probably will reopen only 40 per cent deposits immediately available. However, the third loan also expected to be made, thus boosting the reopening figure to 50 per cent. The applications now are in the examining division and will not go before the board for final action for another and D. W. Twohy both are in Washington conferring with officials on the

4. July 8, 1933 Spokane Chronicle Spokane, WA

Article Text

OLD Approval of the plan for reorganization reopening of the Old Na tional Bank Union Trust company has been given by the office the comptroller the currency Washington, dependent upon Reconstruction Finance officials granting in loans requested. Action loans by the Reconstruction Finance corporation is pected about week The Spokane loan agency of the Reconstruction Finance corporation already placed its stamp of complete the plan, so regarded almost certain the loans sanctioned the the national report assets institution, made by local Reconstruction Finance corporaofficials are studying make their 50 Per Cent. The will release 50 per deposits underthe balance forthcoming installments as assets are liquiare highlights of word to the Chronicle today from correspondent Washington Once the plan approved by both the Reconstruction Finance corporathe comptroller's office announced and submitted depositors. the held dential until time, however, the correspondent informed Depositors representing per cent of dollar volume deposits the time the suspended must approve the plan, announced, fore the bank licensed to and Finance cor. funds advanced application the Reconstruction corporation for loans cludes three points: $500,000 purchase stock the reorganized bank and two straight loans the Investment and Securities company Spokane, to passed on the new bank. one for and the other for Approval the request for purchase stock confidentgranting the 500,000 If just these two quests are the bank probably will reopen only per cent deposits immediately available However the third also expected to made, thus boosting the opening figure per cent. The applications are the examining division probably will not go board for final action for another conservator and Twohy, Washington conferring with officials on the plan.

5. July 25, 1933 Spokane Chronicle Spokane, WA

Article Text

SOON WILL TELL OF OLD NATIONAL A. W. Witherspoon, conservator of the Old National Bank & Union Trust company, will arrive in Spokane the first of next week to submit to depositors the plan for reorganization and reopening of the bank and its closed country affiliates. He made this statement today to the Chronicle's correspondent at Washington, D. C., following formal announcement there last evening of approval of the plan by the comptroller of the currency, as foretold in an exclusive statement published in the Chronicle last Wednesday from Walter Cummings, executive secretary of the United States treasury departDepositors will be asked to waive 60 per cent of their deposits before the bank throws open its doors for business, Mr. Witherspoon said. Waivers will be required from depositors representing three-fourths of the dollar volume of deposits before the bank can reopen. Pay 40 Per Cent. Forty per cent of deposits will become immediately available, with the remaining 60 per cent forthcoming through orderly liquidation. "I am confident depositors eventually will receive 100 cents on the dollar,' Mr. Witherspoon declared. Reopening of the bank is made possible through a loan of $3,750,000 by the Reconstruction Finance corporation. Announcement of this loan was made exclusively to the Chronicle last Tuesday by Jesse Jones, chairman of the Reconstruction Finance corporation. in personal statement to this newspaper's correspondent at the capital Of this loan, $500,000 will go for purchase of preferred stock in the reorganized Old National Bank & Union Trust company of Spokane, to rehabilitate the capital structure. A sum of $2 400,000 will be allocated to the Old National to take care of obligations outstanding at the time the bank suspended operations about March The remaining $850,000 will be used to pay off obligations of the affiliated banks.

6. July 25, 1933 Spokane Chronicle Spokane, WA

Article Text

SOON WILL TELL DEPOSITORS PLAN OF NATIONAL A. W. conservator the Old National Bank & Union Trust company, will arrive in Spokane the first of next week to submit to depositors the plan for reorganization and reopening of the bank and its closed country affiliates. He made this statement today the Chronicle's correspondent Washington, following formal announcement there last evening of approval of the plan by the comptroller of the currency as foretold in an exclusive statement published in the Chronicle last Wednesday from Walter Cummings executive secretary of the United States treasury department Depositors will be asked to waive 60 per cent their deposits before the bank throws open its doors for business, Mr Witherspoon said. Waivers will be required from depositors representing of the dollar volume of deposits before the bank reopen. Pay 40 Per Cent. Forty deposits will come immediately available, with the remaining 60 per cent forthcoming through orderly liquidation. am confident depositors event ually will receive 100 cents on the dollar Mr Witherspoon declared. Recpening of the bank made sible through loan of by the Reconstruction Finance corporation. Announcement of this loan was made exclusively to the Chronicle last Tuesday Jesse Jones, chairman of the Reconstruction Finance corporation. in personal statement to this newspaper's correspondent at the capital Of this loan, $500,000 will go for purchase of preferred stock the reorganized Old National Bank & Union Trust company of Spokane, to rehabilitate the capital structure. sum of 400,000 will allocated to the Old National to take care of obligations outstanding the time the bank suspended operations about March The remaining $850,000 will be used to pay off obligations of the affiliated banks.

7. July 25, 1933 Spokane Chronicle Spokane, WA

Article Text

STOCK MARKET HEADS UPWARD SOON WILL TELL DEPOSITORS PLAN OF OLD NATIONAL A. W. Witherspoon, conservator of the Old National Bank & Union company, will arrive in Spokane the first of next week to submit to depositors the plan for reorganization and reopening of the bank and its closed country affiliates. He made this statement today to the Chronicle's correspondent at Washington, D. C., following formal announcement there last evening of approval of the plan by the comptroller of the currency, as foretold in an exclusive statement published in the Chronicle last Wednesday from Walter Cummings, executive secretary of the United States treasury department. Depositors will be asked to waive 60 per cent of their deposits before the bank throws open its doors for business. Mr. Witherspoon said. Waivers will be required from depositors representing three-fourths of the dollar volume of deposits before the bank can reopen. Pay 40 Per Cent. Forty per cent of deposits will become available, with the remaining 60 per cent forthcoming through orderly liquidation. "I am confident depositors eventually will receive 100 cents on the dollar, Mr. Witherspoon declared. Recpening of the bank made possible through a loan of $3,750,000 by the Reconstruction corporation. Announcement of this loan was made exclusively to the Chronicle last Tuesday Jesse Jones, chairman of the Reconstruction Finance corporation. in a personal statement to this newspaper's correspondent at the capital. Of this loan, $500,000 will go for purchase of preferred stock in the reorganized Old National Bank & Union Trust company of Spokane, to rehabilitate the capital structure. sum of $2,400,000 will be allocated to the Old National to take care of ligations outstanding at the time the bank suspended operations about March The remaining $850,000 will used to pay off obligations of the affiliated banks.

8. July 26, 1933 Spokane Chronicle Spokane, WA

Article Text

SOON WILL TELL OF OLD NATIONAL A. W. Witherspoon, conservator of the Old National Bank & Union Trust company, will arrive in Spokane the first of next week to submit to depositors the plan for reorganization and reopening of the bank and its closed country affiliates. He made this statement today to the Chronicle's correspondent at Washington, D. C., following formal announcement there last evening of approval of the plan by the comptroller of the currency, as foretold in an exclusive statement published in the Chronicle last Wednesday from Walter Cummings, executive secretary of the United States treasury department. Depositors will be asked to waive 60 per cent of their deposits before the bank throws open its doors for business, Mr. Witherspoon said. Waivers will be required from depositors representing three-fourths of the dollar volume of deposits before the bank can reopen. Pay 40 Per Cent. Forty per cent of deposits will become immediately available, with the remaining 60 per cent forthcoming through orderly liquidation am confident depositors eventually will receive 100 cents on the dollar," Mr. Witherspoon declared. Reopening of the bank is made possible through a loan of $3,750,000 by the Reconstruction Finance corporation. Announcement of this loan was made exclusively to the Chronicle last Tuesday by Jesse Jones, chairman of the Reconstruction Finance corporation, in a personal statement to this newspaper's correspondent at the capital. Of this loan, $500,000 will go for purchase of preferred stock in the reorganized Old National Bank & Union Trust company of Spokane, to rehabilitate the capital structure. A sum of $2,400,000 will be allocated to the Old National to take care of obligations outstanding at the time the bank suspended operations about March The remaining $850,000 will be used to pay off obligations of the affiliated banks.

9. August 3, 1933 Spokane Chronicle Spokane, WA

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

10. August 3, 1933 Spokane Chronicle Spokane, WA

Article Text

BANK REOPENING PLAN DRAWN UP FOR DEPOSITORS Reopening of the Old National Bank Trust will submitted for of deposiFriday outlining the plan for reorganization approved by the comptroller the United States treasury and directors of the Reconstruction Finance corporation. Copies will be mailed to each of the than 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 accoutns now on deposit. Twelve affiliated Inland Empire banks will the Old National The country banks, which will reopen on 100 per cent basis, include: Open Country Banks. Creston State bank, Harrington State bank, First National bank of Medical First National bank Moscow. Idaho, Security National Palouse, Prosser State bank, First National Reardan, First National Ritzville, State bank Spangle, Bank Spirit Lake, Idaho National Sprague and First State bank of Washtucna Deposits be released by the reopening the country banks amount to Mr. Witherspoon and W. Twohy, chairman the board of the Old National, returned just this week from Washington D. where they spent three weeks working out details of the plan and approval of officials of the and the office of the comptroller of the According to the plan, 40 per cent deposits will be released immediately. Certificates of participation in the reserved assets of the bank will be accepted by depositors the remaining 60 per These certificates will interest at the rate of per cent. and will be liquidated assets of the bank are realized upon after loans made by the repaid. The certificates will be paid off in full, plus interest, before any are paid stockholders the corporation. All plus the stock of the Old National and the affillated country banks, will be held as guarantee of the certificates and Mr. Witherspoon declared he confident all depositors eventually will receive 100 per cent of their The reorganization will become effective immediately upon approval of the plan in writing by representing cent of the gross amount deposits, as provided in the federal banking act of 1933. The date of the will depend upon the promptness with which depositors file consent the plan, Mr. Witherspoon pointed out. Open by September Observers predict the bank will reby September The reorganization has been made by loan of from the corporation as first exclusively the Chronicle Of this amount will be used for the purchase of preferred stock of the Old tional by the Investment and Securiate the bank preferred stock will be put with the security for this portion of the Another 400 will be used meet the obligations the Old tional of the date the recent bank furnish ditional funds for the rehabilitation of bank remaining of the advance chase the Old Na. affiliated now in the conservators operating the state stabilization These assets will purchased by the and Securities

11. October 7, 1933 Spokane Chronicle Spokane, WA

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GREET REOPENING OF OLD NATIONAL Leaders throughout the community joined today in hailing the reopening Trust company Monday Cause of Rejoicing Fred K. of the Chamber of Commerc tended hearty to the new bank and its officers reopening of the Old National bank and Union Trust company day cause for rejoicing not only Spokane but throughout the In- 30 land Empire and will cause increased vigor and prosperity surge through the business life of the community and tributary territory "For more years than most of us have been residents of the Inland Empire the Old National bank and Union Trust company standing among the financial instituthe Inland Empire Even months when due to beyond the of those of bank the usual unavoidable has continued minds ing of unshaken loyalty 50 towards the management of that bank Now that the financial affairs of the bank have been adjusted with the result that the bank being reopened with the approval of the comptroller the United the Old National bank and Union Trust company should and unquestionably will again take its proper place the business and affairs of Spokane and the Inland Empire Continue Loyal Support dent officers directors and employees that bank the business interests of Spokane and the Inland Empire extend hearty and we bespeak for that bank continuance of the loyal support that the bank has enjoyed in the past Important Step Forward The Rev William Condon pastor of St. Augustine's church. was equally outspoken of the Old National Bank and Union Trust will generally regarded as most im portant step toward the of normal conditions in and the expected for the an nouncement of definite date for reopening with full government approval received with general sat isfaction not only by its patrons but by the community at large "The Old National bank and its affiliated institutions have large measure sustained business and industry in this community for over quarter of century. and the public confidence which it enjoyed could not be shaken during the trying times that have followed president's bank holiday Its reopening after the searching examination conducted by the government is tribute to the who have shaped its policy and is reassuring to its patrons and to the general public As understand it. the new institution has with all the requirements for membership in the Federal Deposit corwhich first will guarantee all $2500 up This feature of the new banking law will to confidence and with the support and operation its legion of the institution of the Pacific northwest Another Milestone R M Hardy president of the Yak First National Bank of Yakima made the following statement reopening of the Old National Bank and Union Trust company another progress toward return to normaley in the bank ing business The of this in the Inland Empire with its large number throughout Washington northern makes their reopening of primary importance management is to be gratulated the success of habilitation plans Impetus to Business The Ray S. Dum pastor of the Central church said We welcome the reopening of the Old National Bank and Union Trust and the inevitable impetus which such reopening give to the business life We covet for the organized personnel of the bank the and cooperation of the people of Spo kane