10411. Bank of Lebanon (Lebanon, MO)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
May 29, 1917
Location
Lebanon, Missouri (37.672, -92.660)

Metadata

Model
gpt-5-mini
Short Digest
e6ede0af

Response Measures

Capital injected, Full suspension, Books examined

Other: Reorganized and reopened under new charter as State Savings Bank of Lebanon.

Description

Bank closed by state banking department late May 1917 after a 'quiet run' prompted by unfavorable rumors and underlying liquidity problems (inability to realize large loans). It reorganized and reopened under a new charter as the State Savings Bank of Lebanon (charter issued by secretary of state) by June 28, 1917. Dates taken from articles (closure May 29 referenced; one article gives May 26 closure notice).

Events (3)
1. May 29, 1917 Run
Cause
Rumor Or Misinformation
Cause Details
A quiet run followed the circulation of unfavorable rumors, though underlying liquidity stress from inability to realize large loans and decreasing deposits contributed.
Newspaper Excerpt
a quiet run on the institution, following the circulation of unfavorable rumors.
Source
newspapers
2. May 29, 1917 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Gradual decrease of deposits, inability to realize quickly on large loans, and resulting embarrassment that led to suspension by the state banking department.
Newspaper Excerpt
closed its doors on May 29 and has since been in the hands of the state banking department.
Source
newspapers
3. June 28, 1917 Reopening
Newspaper Excerpt
The secretary of state has issued a charter to the State Savings Bank of Lebanon, under which name the reorganized Bank of Lebanon has resumed business with a capital of $25,000.
Source
newspapers

Newspaper Articles (3)
1. May 26, 1917 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, May 26, 1917

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Article Text

OLDEST BANK CLOSES Veteran Institution at Lebanon. Mo., in Hands of State Commissioner. Lebanon, Mo., May 26.-The Bank of Lebanon, the oldest in Laclede county, was closed here today, with a notice on its doors that it was in the hads of the state bank commissioners. The institution had a capital and surplus of $70,000, according to announcements. The president, John Farrar, said all depositors would be paid in full, altho no explanation of the suspension was given out.

2. June 28, 1917 Iron County Register Ironton, MO
Article from Iron County Register, June 28, 1917

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Article Text

Closed Bank Reopens. The secretary of state has issued a charter to the State Savings Bank of Lebanon, under which name the reorganized Bank of Lebanon has resumed business with a capital of $25,000. The Bank of Lebanon, the oldest banking institution in Laclede county, with a capital of $50,000 and deposits of $300,000. closed its doors on May 29 and has sin. been in the hands of the state banking department. The temporary suspension was due to a gradual decrease of deposits, owing to the local shortage of money, the bank's inability to realize quickly on large loans and a quiet run on the institution, following the circulation of unfavorable rumors. The difficulties which caused the bank's embarrassment have been removed, and its affairs have been settled without the loss of a single dollar by the depositors.

3. July 5, 1917 Mexico Missouri Message Mexico, MO
Article from Mexico Missouri Message, July 5, 1917

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Article Text

Closed Bank Reopens. The secretary of state has issued a charter to the State Savings Bank of Lebanon, under which name the reorganized Bank of Lebanon has resumed business with a capital of $25,000. The Bank of Lebanon, the oldest banking institution in Laclede county, with a capital of $50,000 and deposits of $300,000, closed its doors on May 29 and has since been in the hands of the state banking department. The temporary suspension was due to a gradual decrease of deposits, owing to the local shortage of money, the bank's inability to realize quickly on large loans and a quiet run on the institution, following the circulation of unfavorable rumors. The difficulties which caused the bank's embarrassment have been removed, and its affairs have been settled without the loss of a single dollar by the depositors.