10412. State Savings Bank (Lebanon, MO)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
savings bank
Start Date
May 1, 1917*
Location
Lebanon, Missouri (37.672, -92.660)

Metadata

Model
gpt-5-mini
Short Digest
fcf8d14f

Response Measures

Capital injected, Full suspension, Books examined

Other: Reorganized under new charter issued by Secretary of State; taken into custody of state banking department during suspension and reopened as State Savings Bank.

Description

The Bank of Lebanon (old name) closed May 29, 1917 after a 'quiet run' following unfavorable rumors and liquidity problems; it was placed in the hands of the state banking department and reopened under a new charter as the State Savings Bank of Lebanon by June 1917.

Events (3)
1. May 1, 1917* Run
Cause
Rumor Or Misinformation
Cause Details
A 'quiet run' occurred following circulation of unfavorable rumors about the bank.
Measures
Bank placed in hands of the state banking department; later reorganized and issued a new charter.
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
Temporary suspension due to gradual decrease of deposits, inability to realize quickly on large loans, and resultant embarrassment compounded by the run and rumors.
Newspaper Excerpt
The Bank of Lebanon ... 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 (2)
1. June 28, 1917 Iron County Register Ironton, MO
Article from Iron County Register, June 28, 1917

Click image to open full size in new tab

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.

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

Click image to open full size in new tab

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.