Imperial Valley press., 1933-01-21
SACRAMENTO
BANKS CLOSE
Heavy Withdrawals Force Sus-
pension OF Business By Two
Pioneer Institutions.

SAN FRANCISCO, Jan. 81. U.P)
Two Sacramento banks, the CAL
ifornia National and the Califolk
MIA Trust & Savings, an affiliate,
were cloesd today as the result of
heavy Withdrawals that reduced
their reserve funds. The banks
have no connection with the Cali
fornia Bank of Los Angeles.
Combined deposits OF the two
banks totaled $22,000,000. In June,
1929, they totaled $41.078,O00.
A. E. Price, national bank ex-
aminer, is in charge of the Califor-
mia National, while Edward Rainey,
state superintendent of banks, will
direct affairs of the other institu-
tions.
SACRAMENTO, Jan. 81. U.P)-A
consignment of $2,00O,0O0 in cur
rency was rushed from the federal
reserve bank in San Francisco to-
day to the Capital National Bank
of Sacramento.
The armored car carrying the
huge sum made the 96-mile trip
in one and one-half hours as heavy
Withdrawals were demanded by de-
positors of the Capital National
bank following the closing of the
California National bank, Sacra-
mento's pioneer financial institu-
ton.
I'VE are prepared to pay every
demand now and as long as neces-
sary," Alden Anderson, president
of the Capital National, said.
Withdrawals also were heavy at
other banks, but the Capital in
stitution appeared to be carrying
the brunt of the demand for de-
posts.
The California Trust & Savings
bank was under joint ownership
with the California National bank
of Sacramento, one of the oldest
and strongest banks in Northern
California.
The bank was organized in 1882
with capital of 100000 and be-
came national bank in 1907.
In 1927 a merger with the ma
tional bank of D. o. Mills still
further strengthened the Califor-
mia national. The Mills bank,
founded during the gold rush days
of 1850, brought the combined as
sets of the two institutions at the
time of the merger to $42,000,0O0.
D. o. Mills, grandfather of sec.
retary of Treasury Mills, one of
California's pioneers, was also one
| of the four organizers of the Gen.
trail Pacific ra;1road and founder
of the Bank of California in 1862
at San Francisco.
Business was virtually paralyzed
as news of the closing spread rap
idly through the city.
Sacramento has seen the clos
ing of few banks and today's action
involving the city's pioneer finan-
cial institution brought thousands
of people to the downtown business
district.
So great was the traffic in some
districts ar emergency call for re-
lief traffic officers was necessary,
according to police.
Telephone lines throughout the
city were jammed, making it vir-
tually impossible to place a local
call.
State and federal bank officials
said the sustained Withdrawals ap-
parently could not be overcome.
Closing of the banks started
sudden drastic decline in the stock
of the California Western States
Life Insurance company on the
San Francisco stock exchange. The
issue dropped from 80 to % in a
few minutes, but later recovered,
closing at 27.
Selling of the stock started be-
cause the insurance company pre-
sident was a director of the Cali
fornia National. Officials of the
company, however, pointed out
that there was no connection be-
tween the bank failure and their
own company, and said the COM
pany had less than $1,000 on deposit
in the bank.
The California National operated
branches in North Sacramento,
lone, Arbuckle and Loomis.