Article Text
LIBERAL BANK IS CLOSED Liberal, Mo., March 29.-Farmers' State bank of Liberal was today placed in the hands of the state banking commissioner.
10422. Farmers State Bank (Liberal, MO)
Bank Information
- Episode Type
- Run → Suspension → Closure
- Bank Type
- state
- Start Date
- March 1, 1927*
- Location
- Liberal, Missouri (37.558, -94.520)
Metadata
- Model
- gpt-5-mini
- Short Digest
0acc8c98
Response Measures
Full suspension
Other: State finance commissioner placed bank in hands of commissioner and began liquidation; cashier faced criminal charges.
Description
Heavy withdrawals and rumors (including fears after the Federal Trust of Kansas City closed and rumors about the cashier) led directors to close the bank. The state banking commissioner/finance commission took charge and a deputy commissioner later handled liquidation — permanent closure/receivership.
Events (3)
1.
March 1, 1927*
Run
- Cause
- Local Banks
- Cause Details
- Public impression that the bank lost money when the Federal Trust of Kansas City closed plus rumors about the cashier led to heavy withdrawals and threat of a run.
- Measures
- Directors held meetings and decided to close the bank to forestall the threatened run.
- Newspaper Excerpt
- Threatened Run On Bank Caused Directors To Close Doors ... Heavy withdrawals the week before
- Source
- newspapers
2.
March 29, 1927
Suspension
- Cause
- Local Banks
- Cause Details
- Directors closed the bank after threatened run tied to fallout from Federal Trust of Kansas City failure and circulating rumors; state commissioner placed the bank in his hands.
- Newspaper Excerpt
- Farmers' State bank of Liberal was today placed in the hands of the state banking commissioner.
- Source
- newspapers
3.
September 16, 1927
Receivership
- Newspaper Excerpt
- H. W. Timmonds, Deputy Finance Commissioner, in charge of liquidation of the Farmers State Bank ... keys for the children's savings banks ... can be had from him at 2bc each. (Sept. 16, 1927).
- Source
- newspapers
Newspaper Articles (4)
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Article Text
FARMERS BANK OF LIBERAL Threatened Run On Bank Caused Directors To Close Doors The Farmers Bank of Liberal failed to open for business, Monday morning. It seems that the general impression was that the Liberal bank lost a large sum when the Federal Trust of Kansas City closed but the loss was not large as we gather the facts but no doubt the failure of that bank contributed to the unrest and there was also rumors that C. B. Armstrong, cashier, was in straightened circumstances and that had led to some talk. The bank was organized in 1912. Mr. Hubert Fletcher was president until two year and a half ago when he sold all his interests to J. B. Smith who became president and has since been at the head of the bank. The bank was capitalized at $10,000, the deposits W er e around eighty thousand and it is estimated that the bank holds eightyfour thousand dollars worth of notes. Mr. Moody representing the state finance commission is in charge of the bank and it will likely be several days before adjustments can be made and the exact conditions made known. Liberal has remained quiet there have been no demonstrations and the good common sense of the people of the Liberal community has asserted itself. The Tood Bank is considered one of the very solid institutions of the county and if cool council prevails there is little doubt but what the bank will get along fine. Ih this connection, it might be well for the people to know that idle gossip about banks is a crime and punishable by fine and imprisonment. The best course to pursue is to make no statement that are known facts. Advertising THE PRESS
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Article Text
E. L. BUNTON HURT JURY DISAGREES IN TRAIN HIT AUTO ARMSTRONG TRIAL Barton City Township Man Injured at Railroad Crossing at Moundville Monday Morning---May Lose One Eye---Taken to Hospital at Nevada. E L. Bunton of Barton City township, a half mile west of Verdella, was injured when a south bound Missouri Pacific work train hit the automobile in which he was riding, at the railroad crossing a half mile south of Moundville, at 10:00 o'clock Monday forenoon. He suffered lascerations about the face and left eye and severe body bruises. Apparently there were no broken bones. The car, a Ford touring, was badly smashed. Mr. Bunton was picked up from beneath the wreckage by the train crew and taken back to Moundville where he was given emergency treatment by Dr. W. C. Carter. He was then taken to the Vernon County hospital at Nevada, where he is recovering from his injuries. Dr. Carter stated to the News that he took several stitches in closing the wounds on Mr. Bunton's face. It was feared at first that the injured eyeball might have to be removed, but it is now thought this can be saved, though the sight"will be badly impaired if not entirely lost to the eye. According to reports, Mr. Bunton was driving north, practically facing the train coming south. The crossing is at an acute angle. Whether or not he failed to see the approaching train and sense the danger until too late to stop and avoid the accident, is not clear, but it is believed that must have been the case. Stood Six for Conviction and Six for Acquitta!--Deliberated Two Hours. The trial of C. B. Armstrong, cashier of the now closed Farmers State Bank here, on a charge of having accepted money on deposit when knowing the institution to be in a failing condition, resulted in a hung jury The case was tried in circuit court lat Lamar Tuesday. It went to the jury about four o'clock. After two hours deliberation the jury stood six for conviction and six for acquittal and decided no agreement could be reached. The jurors were J. B. Stevenson, Elmer Greer, Ira Williams, Frank Shaw, Jesse Sumners, John Price, Chas. Faubion, Homer Beall, Ed Alexander, Barney Crockett, Louis Wolf and W. P. Finks, all from parts of the county remote from Liberal. Much of the evidence was about as details concerning the bank were published in the News following its close. Mr. Armstrong and other officers of the defunct bank testified they believed they had made arrangement to raise the money required by the department and take out something over four thousand dollars worth of paper demanded by Commissioner Cantley to be removed. Heavy withdrawals the week before, it was stated, reduced the bank's cash reserve, but, Mr. Armstrong testified, when the bank closed at the usual hour Saturday night, he fully expectted to reopen Monday morning. However, rumors that there would be a run on the bank Monday morning caused a meeting of the directors to be held Sunday night and at another meeting at 6:00 o'clock Monday morning, it was decided to close the bank. There were three similar charges against Mr. Armstrong. Trial was on but one. The case will now go over the January term of court. Mr. Armstrong was represented by Hon. Thos. W. Martin. Prosecuting Attorney E. L. Moore handled the state's case. Mr. Armstrong returned from Ft. Branch, Ind., last week to be here for the trial and has been in Liberal the past few days.
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Article Text
Children Can Get Keys Now to Their Savings Banks H. W. Timmonds, Deputy Finance Commissioner, in charge of liquidation of the Farmers State Bank, wishes it announced that he has procured a number of keys for the children's savings banks and that they can be had from him at 2bc each.