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Exchange National Bank of Spokane Records, 1880-1930

Overview of the Collection

Creator
Exchange National Bank of Spokane
Title
Exchange National Bank of Spokane Records
Dates
1880-1930 (inclusive)
Quantity
29 containers., (12 linear feet of shelf space.), (7500 items.)
Collection Number
Cage 20
Summary
Correspondence, minutes, charters, reports, printed material and other papers of the bank and its subsidiaries; papers of businesses in which the bank had a financial interest; papers of the bank president, E.T. Coman, and his assistant, E.E. Flood. Correspondents include Idaho lumberman Fred Herrick, whose business failures caused the collapse of the bank.
Repository
Washington State University Libraries' Manuscripts, Archives, and Special Collections (MASC)
Manuscripts, Archives, and Special Collections
Terrell Library Suite 12
Pullman, WA
99164-5610
Telephone: 509-335-6691
mascref@wsu.edu
Access Restrictions

This collection is open for research use.

Languages
English
Sponsor
Funding for encoding this finding aid was provided through a grant awarded by the National Endowment for the Humanities.
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Historical Note

The Exchange National Bank of Spokane was organized in 1889 and operated until early 1929. During its existence it was one of the major financial institutions of the Inland Empire and was generally regarded as the second largest bank in Spokane. The importance of the institution transcended its business activities as many of the people connected to ownership or management of the bank were active in governmental, educational, philanthropic, trade association, Federal Reserve and clearing house activities.

The bank itself was involved in many facets of financial and business operations beyond commercial lending. It was, in fact, a pioneer "full-service" bank, offering a savings department, home loans, escrow, trusts, and investment subsidiary - the Cariboo Company, and such other services at a fairly early date. It was, ironically, these special activities which eventually spelled the doom of the bank. More and more special loans, most of a capital investment nature, were made in the 1920s and the bank began to become involved in the operation and overseeing of other businesses. On occasion some of these concerns failed and the bank found itself directly operating non-financial business such as a stock yard and a lumber mill. Not only were such operations of doubtful legality, but additionally they proved to be business mistakes. The most costly mistake was a long protracted affair called "the Herrick loans." These loans grew from the vigorous lending activities of E. E. Flood, the moving spirit of the bank in the 1920s, who seems to have imagined himself as the "Washington Giannini." Flood, early in the 1920s, committed the bank to refinancing a series of commercial loans secured by personal notes which had been made by Fred Herrick, a logging and sawmill operator of St. Maries, Idaho. A crusty and colorful character of the "robber baron" stripe, Herrick was totally unscrupulous and seems to have consistently deceived Flood.

Through the mid-twenties, Flood continue to pick up Herrick's notes from banks all over east Washington and north Idaho. Eventually he realized Herrick was on the verge of insolvency. Flood then backed Herrick's proposal to contract cutting a vast stand of National Forest Land timber in central Oregon. When that arrangement failed to materialize, due to Herrick's difficult relations with governmental agencies, the whole Herrick operation began to collapse. Flood, in a last desperate effort to stave off bankruptcy, consolidated all the debts of Herrick, now totaling over four million dollars. He then attempted to refinance Herrick with gold bonds sold on the Chicago market. But before the bond sale was successfully completed, depositors who realized the bank was holding vast amount of illiquid assets began a "run," forcing its closure.

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Content Description

The papers of the Exchange National Bank of Spokane, Washington consist of a significant portion of the original records of the bank, being especially complete for the period after 1910, at which time the bank passed into the control of a new group of stockholders. Because of this, there may be some reason to regard this collection as papers emanating from the Coman-Huntley group of investors, rather than from the Exchange National Bank as a corporate entity. Supporting this is the inclusion in the collection of personal and political papers of Edwin Coman, president of the bank from 1910 to 1922, and of his assistant Everett Edmund Flood, who was the dominant figure in the bank after Coman.

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Use of the Collection

Preferred Citation

[Item Description]. Cage 20, Guide to the Exchange National Bank of Spokane Records. Manuscripts, Archives, and Special Collections, Washington State University Libraries, Pullman, WA.

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Administrative Information

Arrangement

The present arrangement of the collection is an attempt to restore the relationships between the several parts of the collection. It was a process of addition and subtraction, as well as arrangement, as many items were weeded and several estrays were returned to the collection.

There are five main categories into which the thirty-four series are arranged. These are 1) Records and papers of the bank as a whole (A-N); 2) Internal operations and records of the bank (O-S); 3) Papers of subsidiaries or other businesses of which the bank assumed management (T-CC); 4) Papers of E.T. Coman and E. E. Flood, (DD-EE); and 5) Miscellaneous (FF-II).

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Detailed Description of the Collection

The following section contains a detailed listing of the materials in the collection.

Names and SubjectsReturn to Top

Subject Terms

  • Banks and banking--Washington (State)--Spokane--Records and correspondence

Personal Names

  • Coman, Edwin Truman, b. 1869
  • Flood, Everett Edmund, b. 1881
  • Herrick, Fred, b. 1853

Corporate Names

  • Exchange National Bank --Archives (creator)

Finding aid prepared by Lawrence R. Stark
2012

CC Attribution
This work is licensed under a Creative Commons Attribution 4.0 International License.

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