Ryan Banking Company - Norwood, MO

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: September 20, 1929
Location: Norwood, Missouri (37.108, -92.415)

Metadata

Model: gpt-5-mini
Short Digest: 37aa8387

Response Measures

Borrowed from banks or large institutions, Full suspension, Books examined

Other: Criminal investigations and audits revealed misappropriation by the cashier; bonding company paid partial bond.

Description

A run took place following the death of the cashier (D. / David L. Conley/Connolly) in mid-late September 1929; the board closed the bank Sept. 27–28, 1929. Subsequent examination revealed ~ $25,000 misapplications by the cashier and the bank was turned over to receivers/receiver actions pursued. I corrected inconsistent OCR spellings of the cashier's name (Connelly/Connolly/Conley) and consolidated dates to the Sept. 27–28, 1929 closing mentioned in multiple articles.

Events (3)

1. September 20, 1929 Run

Cause: Bank Specific Adverse Info
Cause Details: Withdrawals began after the death of the cashier (D. L. Conley/Connolly/Connelly), which precipitated a loss of confidence and heavy withdrawals that nearly wiped out cash reserves.
Measures: Board of directors closed the bank; efforts to reorganize were announced by the president.
Newspaper Excerpt: following week's run on the institution, which almost wiped out its cash reserve. The run on the institution followed the death of Connelly, former cashier
Source: newspapers

2. September 27, 1929 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank closed by board after a run exhausted cash; later audit revealed large misapplications by the cashier indicating insolvency.
Newspaper Excerpt: The Ryan Banking Company of Norwood closed its doors today on an order of the Board of Directors
Source: newspapers

3. October 10, 1929 Receivership

Newspaper Excerpt: The bank will be turned over [to a] special deputy late this or early next week. Examination shows no possibility for reorganization of the bank. The Ryan bank closed on September 27. ... the bank will be turned over special deputy late this or early next week.
Source: newspapers

Newspaper Articles (5)

1. September 28, 1929 St. Louis Globe-Democrat St. Louis, MO

Article from St. Louis Globe-Democrat, September 28, 1929

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Article Text

WEEK'S RUN CLOSES ONLY BANK Withdrawals Death of Try to Reorganize. By Associated Press. NORWOOD. MO., September The Ryan Banking Company of Norwood closed its doors today on an order of the Board of Directors, folweek's run on the tion. The followed the death of E. Connelly, the cashier, two weeks ago. The bank had deposits of proximately $160,000 when its last statement was made. Efforts will be made to reorganize the bank, Gresham, the president. said tonight. It was the only bank here.

2. October 4, 1929 Southwest Mail and The Weekly Post Nevada, MO

Article from Southwest Mail and The Weekly Post, October 4, 1929

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Article Text

THE BANK CLOSED Death of Cashier Was Followed Run On the Bank. Mo., Sept. Ryan Banking Company of Norwood was closed today on order of its board of directors, following week's run on the institution, which almost wiped out its cash reserve. The run on the institution followed the death of Connelly, former cashier of the bank, who died about weeks ago.

3. October 10, 1929 Springfield Leader and Press Springfield, MO

Article from Springfield Leader and Press, October 10, 1929

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Article Text

SEE NO CHANCE TO SAVE CLOSED NORWOOD BANK NORWOOD, Mo., Oct. state bank examiner from Lamar, after completing his examination of closed Ryan Banking company of Norwood, said today that he no possibility for reorganization the bank. The Ryan bank, the only one in Norwood, closed on September 27. Its cashier, D. Connolly, had died Springfield hospital 10 days before, and following his death there was slow run which the bank could not meet. meeting of stockholders Wednesday evening decided to ask Jasper Ryan, now engaged in the loan business in Springfield, to return to Norwood and attempt Mr. Ryan organized the bank several years ago, but is now only small stockholder and not an official. The examination just completed by Mr. Richards shows that slow paper and notes held the bank exceed its capital stock $25,000 and its surplus of 85000, which Mr. believes destroys any chance of The bank will be turned over special deputy late this or early next week. The last official issued by the bank on August 23, showed total resources of $223,530.06; but at thertime of the closing little more than month later, these had dwindied to making drop of $18,063.20. At time of the Ryan the bank owed the National Stockyards bank East St. Louis, III., $25,000 for cash borrowed. for which $70,000 in the bank's notes had been given as security. Officers and directors of the bank were N. D. Connolly, and L. Connolhis father, Roy and Chadwell, directors. 'resham and Mr. Chadwell are farmers, and the other three men lived in Norwood.

4. March 3, 1930 The Springfield Press Springfield, MO

Article from The Springfield Press, March 3, 1930

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Article Text

PROBE FAILURE OF RYAN Webster County Grand Jurors Hear Charges of Misapplication. SPECIAL TO THE PRESS HARTVILLE, Mo., Mar. 3.-A special grand jury called by Circuit Judge H. Skinker Monday morning went into its fifth day of investigation of the closed Ryan Banking company of Norwood, whose cashier and most active official, David L. Conley, died in Springfield hospital few days before his bank was closed by state officials. Nearly 50 witnesses have appeared. The jury may report late Monday afternoon, according to Leonard E. Newton, Wright county prosecutor, who is leading the investigation. Misappropriations Charged. The investigation centers around activities of the Norwood bank of ficials, Prosecutor Newton declared although he refused to reveal any names. The witnesses largely comprise depositors and small stockholders. While the grand jury was called primarily to investigate affairs of the defunct bank, other matters of criminal nature are to be probit was indicated. An audit made by the Southwest Audit and Systems company of Springfield short time after the bank failed, revealed, according to attorneys for the bank receiver, that Cashier Conley misapplied approximately $25,000 of the bank's funds over five-year period. Bond Is Forfeited. Conley's bond as cashier, $5,000, was paid by the National Surety company without protest. A claim of $2,500 made by attorneys for the receivership upon the $5,000 bond of Ralph Calhoun, former assistant cashier of the bank, has not been honored. It charged misapplications in which Conley appeared chiefly involved. The bonding company was expected to fight the claim on Calhoun's bond upon the grounds that misapplications involved in it were engineered by Conley and to Calhoun without his knowltimes in the payment of his salary. The largest single misapplication charged against Conley is for

5. June 10, 1930 Springfield Leader and Press Springfield, MO

Article from Springfield Leader and Press, June 10, 1930

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Article Text

JURY IS CHOSEN TO TRY BANKER Former Norwood Company Official on Trial at Hartville Selection of jury to try Roy Raney. former assistant cashier of the falled Ryan Banking company of Norwood, upon charges of accepting deposits while the bank was in a failing condition. was completed in circuit court at Hartville shortly before noon todaq. Raney was granted severance of his case from charges pending against N. F. Gresham. former president of the bank. and P. L. Conley. former director. and his trial opened early this morning before Judge C. H. Skinker of Bolivar. Leonard E. Newton, Wright county prosecutor, placed John Randall. deputy liquidating agent in charge of the closed bank. upo the stand as the first witness. Randall on Stand Randall resumed the stand after the noon recess to continue his story of the bank's condition when he took over its affairs. Large shortages in some of the bank funds were discovered after the failure. It was believed that the case might go to the jury late today or at special session tonight. If charges against Raney are disposed of immediately, Prosecutor Newton intends to start trials at once for Gresham and Conley. Defending Raney is C. H. Jackson of Mountain Grove, while Mr. Newton and Judge Fred Stewart of Ava are handling the prosecution. Cashier Died Here A short time before the failure of the Ryan Banking company, D. L. Conley, cashier. died in a Springfield hospital. An audit afterward revealed of approximately $25,000 in his accounts, and attorneys for the bank receiver collected $5000 without a contest from the bonding company which had written his $3000 bond. Demand also was made for payment upon Raney's bond as assistant cashier, but payment was resisted by the bonding company on the grounds that misapplications charged to him were made by Conley without his knowledge of consent. L. Conley, father of the former cashier. and Gresham, the former bank president, are charged with having assented to reception of deposits on the day the Ryan bank failed. COLLECTOR AUDITS THEFTS ST. LOUIS, June Frank J. Hezel. who has admitted to the Kirkwood city council embezzlements of about. during his two-year term as city collector, resigned today as St. Louis county deputy sheriff. Whether Hezel is prosecuted will be determined when an audit of his accounts is completed. Mayor Albert S. Kinyon said.