10276. Joplin Savings Bank (Joplin, MO)

Bank Information

Episode Type
Suspension → Closure
Bank Type
savings bank
Start Date
October 1, 1908*
Location
Joplin, Missouri (37.084, -94.513)

Metadata

Model
gpt-5-mini
Short Digest
10147fec

Response Measures

None

Description

Multiple contemporaneous newspaper excerpts state the Joplin Savings Bank was closed/failure caused by reckless investments of the president and resulted in depositor losses. No run or depositor crowding is described in the provided texts; the bank was closed and appears to have failed/entered receivership.

Events (2)
1. October 1, 1908* Receivership
Newspaper Excerpt
We have had a bank failure in Joplin. Some of the depositors in that bank lost their all... We have had a bank failure for the purpose of argument: The depositors of that bank did not know its condition... when the Joplin Savings bank was tottering on the verge of insolvency, ... had been in effect ... had any responsibility devolved upon them, those other banks would have taken much more active precautionary measures? ... Reverting to our own bank failure for the purpose of argument: The depositors of that bank did not know its condition. And there was no guaranty law to make good those losses. (discussion of the Joplin Savings Bank failure.)
Source
newspapers
2. October 1, 1908* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Reckless investments by the bank's president led to insolvency and closure.
Newspaper Excerpt
Another is the Joplin Savings Bank, caused by the reckless investments of the president of the institution, where the depositors will lose a percentage of their deposits.
Source
newspapers

Newspaper Articles (5)
1. October 8, 1908 Morgan County Republican Versailles, MO
Article from Morgan County Republican, October 8, 1908

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Article Text

NOMINEES FOR CONGRESS. 1st District-Wilbur F. Chamberlain, Hannibal. % 2nd-Edward F. Haley, Moberly. 3rd-Henry L. Eads, Pattonsburg. % X X 4th-Morris A. Reed, St. Joseph. 5th-Edgar C. Ellis, Kansas City. % % 6th-William O. Atkeson, Butler. % 7th-John Whitaker, Weaubleau. 8th-William C. Irwin, Jefferson % City. 9th-Reuben F. Roy, New London. % 10th-Richard Bartholdt, St. Louis. % 11th-William T. Findlay, St. % Louis. % 12th-Harry N. Coudrey, St. Louis. % 13th-Politte Elvins, Elvins. 14th-Chas. A. Crow, Caruthersville. % 15th-Chas. H. Morgan, Joplin. 16th-Arthur P. Murphy, Rolla. department has been entirely self-supporting. The fund which had accumulated in this department during the ten years of the operation of the banking law was $3,638.61. During the four years just preceding the present incumbency nothing whatever was added to that fund. During the three and one-half years of Mr. Swanger's administration the fund has been increased to $8,330.56. Examinations of banks have been rigid, impartial and complete. The reports of the several examiners have been subjected to the most thorough scrutiny. and any violation of the banking laws, or the essential rules of good banking have been called to the attention of the bank without fear or favor and a strict compliance of the law required. During the present administration several banks have been closed. others that were unsafe required to liquidate; others have consolidated, making stronger institutions, and everything done that could be accomplished to place the banking business of the State upon an absolutely safe and stable basis. During Mr. Swanger's administration only four banks and trust companies he has closed resulted in loss to the depositors. One of these was the Middleton Bank at Waverly (resulting from a defaulting cashier). where the depositors will probably lose about 5 to 10 per cent of their deposits. Another is the Joplin Savings Bank, caused by the reckless investments of the president of the institution, where the depositors will lose a percentage of their deposits. Another is the Bankers Trust Company of Kansas City caused by the Brady failure. Reckless investments by the officers of the institution and a slump in their values caused by the panic will cause a loss to the depositors of about 57 per cent of their deposits. Last, but not least, the Salmon & Salmon Bank of Clinton. The most disastrous by far, the causes of the failure of which are well known to the people of the State. It has been the earnest effort of the present administration, whenever It was possible, to prevent receiverships for banks, and many thousands of dollars have been saved to depositors and stockholders by the efforts of Mr. Swanger to

2. October 8, 1908 The Rich Hill Tribune Rich Hill, MO
Article from The Rich Hill Tribune, October 8, 1908

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Article Text

department has been entirely self-supporting. The fund which had accumulated In this department during the ten years of the operation of the banking law was $3,638.61. During the four years just preceding the present incumbency nothing whatever was added to that fund. During the three and one-half years of Mr. Swanger's administration the fund has been increased to $8,830.56. Examinations of banks have been rigid, impartial and complete. The reports of the several examiners have been subjected to the most thorough scrutiny, and any violation of the banking laws, or the essential rules of good banking have been called to the attention of the bank without fear or favor and a strict compliance of the law required. During the present administration several banks have been closed. others that were unsafe required to liquidate: others have consolidated, making stronger Institutions, and everything done that could be accomplished to place the banking business of the State upon an absolutely safe and stable basis. During Mr. Swanger's administration only four banks and trust companies he has closed resulted in loss to the depositors. One of these was the Middleton Bank at Waverly (resulting from a defaulting cashier), where the depositors will probably lose about 5 to 10 per cent of their deposits. Another is the Joplin Savings Bank, caused by the reckless investments of the president of the institution, where the depositors will lose a percentage of their deposits. Another is the Bankers Trust Company of Kansas City caused by the Brady failure. Reckless investments by the officers of the institution and a slump in their values caused by the panic will criuse a loss to the depositors of about 57 per cent of their deposits. Last, but not least, the Salmon & Salmon Bank of Clinton. The most disastrous by far, the causes of the failure of which are well known to the people of the State, It has been the carnest effort of the present administration, whenever It was possible, to prevent receiverships for banks, and many thousands of dollars have been saved to depositors and stock-

3. October 9, 1908 The Marshall Republican Marshall, MO
Article from The Marshall Republican, October 9, 1908

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Article Text

department has been entirely self-supporting. The fund which had accumulated in this department during the ten years of the operation of the banking law was $3,638.61. During the four years just preceding the present incumbency nothing whatever was added to that fund. During the three and one-half years of Mr. Swanger's administration the fund has been increased to $8,330.56. Examinations of banks have been rigid, impartial and complete. The reports of the several examiners have been subjected to the most thorough scrutiny, and any violation of the banking laws, or the essential rules of good banking have been called to the attention of the bank without fear or favor and a strict compliance of the law required. During the present administration several banks have been closed, others that were unsafe required to liquidate; others have consolidated, making stronger institutions, and everything done that could be accomplished to place the banking business of the State upon an absolutely safe and stable basis. During Mr. Swanger's administration only four banks and trust companies he has closed resulted in loss to the depositors. One of these was the Middleton Bank at Waverly (resulting from a defaulting cashier), where the depositors will probably lose about 5 to 10 per cent of their deposits. Another is the Joplin Savings Bank, caused by the reckless investments of the president of the institution, where the depositors will lose a percentage of their deposits. Another is the Bankers Trust Company of Kansas City caused by the Brady failure. Reckless investments by the officers of the institution and a slump in their values caused by the panic will cause a loss to the depositors of about 57 per cent of their deposits. Last, but not least, the Salmon & Salmon Bank of Clinton. The most disastrous by far, the causes of the failure of which are well known to the people of the State. It has been the earnest effort of the present administration, whenever it was possible, to prevent receiverships for banks, and many thousands of dollars have been saved to depositors and stockholders by the efforts of Mr. Swanger to

4. October 9, 1908 The Montgomery Tribune Montgomery City, MO
Article from The Montgomery Tribune, October 9, 1908

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Article Text

department has been entirely self-supporting. The fund which had accumulated in this department during the ten years of the operation of the banking law was $3,638.61. During the four years just preceding the present incumbency nothing whatever was added to that fund. During the three and one-half years of Mr. Swanger's administration the fund has been increased to $8,330.56. Examinations of banks have been rigid, impartial and complete. The reports of the several examiners have been subjected to the most thorough scrutiny, and any violation of the banking laws, or the essential rules of good banking have been called to the attention of the bank without fear or favor and a strict compliance of the law required. During the present administration several banks have been closed. others that were unsafe required to liquidate; others have consolidated, making stronger institutions, and everything done that could be accomplished to place the banking business of the State upon an absolutely safe and stable basis. During Mr. Swanger's administration only four banks and trust companies he has closed resulted in loss to the depositors. One of these was the Middleton Bank at Waverly (resulting from a defaulting cashier), where the depositors will probably lose about 5 to 10 per cent of their deposits. Another is the Joplin Savings Bank, caused by the reckless investments of the president of the institution, where the depositors will lose a percentage of their deposits. Another is the Bankers Trust Company of Kansas City caused by the Brady failure. Reckless investments by the officers of the institution and a slump in their values caused by the panic will cause a loss to the depositors of about 57 per cent of their deposits. Last, but not least, the Salmon & Salmon Bank of Clinton. The most disastrous by far, the causes of the failure of which are well known to the people of the State. It has been the earnest effort of the present administration, whenever it was possible, to prevent receiverships for banks, and many thousands of dollars have been saved to depositors and stockholders by the efforts of Mr. Swanger to

5. October 14, 1908 The Guthrie Daily Leader Guthrie, OK
Article from The Guthrie Daily Leader, October 14, 1908

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Article Text

(Joplin Globe.) "Suppose you had on deposit $1,000 being all the wealth you possessed, and fear entered your heart as to the solvency of that institution; would you wait for the guaranty fund, or would you withdraw your deposit?" "This suppositions proposition is taken from the paper read by Festus J. Wade before the convention of the American Bankers' Association at Denver. We have selected this, not because it is especially easy to answer, but because it is a fair illustration of the shallowness, sophistry and banality of Mr. Wade's entire reasoning. From beginning to end his paper is utterly wanting in breadth of view, and depth of research. It lacks thought, this paper of Mr. Wade. It is superficial; it is vapid. But let us take Festus J. Wade's hypothetical deposit of $1,000. If that was the entire wealth of the depositor, let us set Mr. Wade's dubiety at rest by assuring him that under such circumstances the depositor would do just what Festus J. Wade would do—withdraw that money. He would not wait for the guaranty law to reimburse him. "But suppose a depositor had all his money deposited in a bank about the solvency of which no fear entered his soul. And suppose he awoke some morning to learn that the bank had failed. Don't you imagine it would be vastly consoling to that depositor to know that his money was not lost to him; that under the bank-guaranty law provision had been made to meet just this kind of case, and that, without burthening anybody or any institution, this otherwise fatal loss to him has been avoided? Imagine, if you can, the sense of security and confidence such an exprience must create among the depositors of the bank that failed. No one, of course, leaves money in a bank of doubtful character. The failure of a bank is always "the unexpected" to the depositors of that bank. But we doubt if the failure of a bank is ever wholly unexpected to the other banks in that community. We have had a bank flure in Joplin. Some of the depositors in that bank lost their all. Fear of its solvency had not entered their souls. Therefore, they did not withdraw their deposits. And there was no guaranty law to make good those losses. Now, we all know our banks in this city are sound. They are prosperous. Under their able conservative management they go on from year to year, steady and solid and safe. And every one of us is glad that this is so, and every one wishes the banks a continuous and ever-increasing prosperity. But do you suppose there is any comfort to the depositor, who lost every dollar he had in the bank in this city that failed, to learn that all the other banks are all right? Does this fact restore one cent to the people who had their money in the bank that failed and to many of whom the loss was a weary cross—the cross of cold, black, hopeless poverty? Perhaps we grow sentimental. And we are aware that Sentiment talks to an empty house when it addresses a convention of bankers. And yet this question of guaranteeing bank deposits being altogether righteous, carries the color of humanitarianism. It is not to be disposed of in the dead, drab terms of your accademician. We assume to inform Festus J. Wade that this proposition happens to be pulsing with a living human interest; that it is commanding the attention of the people today in the tempo of millions of heart beats. Reverting to our own bank failure for the purpose of argument: The depositors of that bank did not know its condition. But the other banks in this city, every one of them, did know that bank's condition. They knew it because it was their business to know it; and, moreover, they had the means of knowing it—means infinitely superior to any within the avail of the average depositor. And what has that got to do with it? Well, simply this: Festus J. Wade says this bank guaranty law will invite the reckless and un-scrupulous banker into the business. That is a fallacy which we are presumptuous to believe, we can demonstrate to the satisfaction of any fair-minded person. Suppose, for example, when the Joplin Savings bank was tottering on the verge of insolvency, a bank guaranty law had been in effect: Do you imagine the other banks would have quietly awaited the crash, doing nothing excepting to stock their vaults with money as against the possible stampede which might have eventuated in a run upon every bank in the city? Do you think they would have done that? Don't you know, as a matter of common sense, that had any responsibility devolved upon them, those other banks would have taken much more active precautionary measures? You bet they would. And it will be one of the results of the bank guaranty law that the wild-cat banker will have rougher sledding than he has ever had before, because # IT WILL BE TO THE INTEREST OF ALL BANKS THAT NO BANK FAILS. It is, of course, essential, that the people have confidence in the banks.