Business: Idaho Flurry

Founded long before most Idahoans can remember, Boise’s First National of Idaho had grown to be the State’s largest bank. As long as all Idahoans can remember, First National has stood as solid as the Continental Divide. Even after Boise City National Bank closed last month, no one eyed First National with suspicion. With no runs, no inklings of imminent trouble, First National’s customers one morning last week found posted on the doors a terse note from the U. S. bank examiner stating that the directors had voted to close the institution in the interests of depositors. Simultaneously nine affiliated country banks closed in central and western Idaho and eastern Oregon. Total resources of $12,750,000 were involved. Crawford Moore, head of the whole group, shut himself in his palatial home, refused to comment.

Stunned at first by the closing of what they thought was their strongest institution, Boise citizens stampeded for their deposits in the First Security Bank, only bank left in Boise. Panicky crowds swarmed into the lobby, impatient queues stretched out into the street and halfway around the block in both directions. At noon President John Lynn Driscoll strung a huge sign across the front of his First Security, promising to pay each & every depositor in full, inviting all to come and get their money. The run stopped as suddenly as it had begun. Next day Idaho’s Senator Borah assured Boise that the R. F. C. would aid in reopening the two closed banks. Boise again was quiet.