10556. Farmers & Merchants Bank (Rich Hill, MO)

Bank Information

Episode Type
Suspension → Run → Closure
Bank Type
state
Start Date
August 27, 1930
Location
Rich Hill, Missouri (38.096, -94.361)

Metadata

Model
gpt-5-mini
Short Digest
17e62488

Response Measures

Full suspension, Books examined

Other: State bank examiner George U. Freund (or Freund/Fruend) took charge of both banks.

Description

Farmers & Merchants Bank (Rich Hill, MO) was closed by its directors on 1930-08-27 due to 'frozen loans' / drought-related inability to collect; its closure precipitated a run on the People's Bank of Rich Hill which then closed the same day. State bank examiner took charge of both institutions. Both banks remained closed (state examiners in charge; reports discuss reorganization but no immediate reopening).

Events (3)
1. August 27, 1930 Other
Newspaper Excerpt
George Freund, state bank examiner, will take charge of both of the closed banks. / affairs turned over to the state finance department.
Source
newspapers
2. August 27, 1930 Run
Cause
Local Banks
Cause Details
Run on the People's Bank was triggered by news of the Farmers & Merchants Bank closing.
Measures
Paid out several thousand dollars to depositors before deciding to close; posted notice that affairs were in hands of state bank department.
Newspaper Excerpt
Within two hours ... heavy withdrawals caused this bank to close its doors. The people became panic stricken following the closing of the F. & M. bank
Source
newspapers
3. August 27, 1930 Suspension
Cause
Local Banks
Cause Details
Directors closed the bank after panic withdrawals following the Farmers & Merchants Bank closure.
Newspaper Excerpt
The People's Bank ... remained open about one hour and then closed its doors.
Source
newspapers

Newspaper Articles (13)
1. August 27, 1930 Joplin News-Herald Joplin, MO
Article from Joplin News-Herald, August 27, 1930

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TWO BANKS ARE CLOSED Closing of One Institution of Frozen Loans Causes Run Which the Other Is able to Withstand. Jefferson City, Mo., Aug. closing of the Farmers and Merchants bank Rich Hill its board of directors this morning caused run on the People's bank Rich Hill, which was forced to close shortly before noon, to information received by Cantley, state finance commissioner. The Farmers and Merchants bank was closed because of frozen loans. The People's bank had sources of $170,000; loans, $145,000; capital stock, surplus, and deposits of $143,000. George Freund, state bank examiner. will take charge of both of the closed banks. Town Without Bank. As there no national bank there, Rich Hill left without bank of any kind, Cantley said. The and Merchants bank had total resources. The bank's last statement showed had $25,000 capital stock, $15,000 surplus, $297,000 total deposits and $327,000 total loans. W. W. Ferguson president and Jones cashier.

2. August 27, 1930 St. Louis Post-Dispatch St. Louis, MO
Article from St. Louis Post-Dispatch, August 27, 1930

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TWO RICH HILL. MO., BANKS MERCHANT AND EX-FIANCEE SUED BY LAWYER FOR FEE CLOSE, ONE BECAUSE OF RUN Attorney $23,000 as People's Depository Shuts Doors After Farmers Merchants Share of Breach of Promise Fails Open. Settlement. JEFFERSON CITY, Mo., Aug. Suit for filed in Circuit Court yesterday against Max closing of the Farmers' Manne, president of the Artistic and Merchants' Bank at Rich Hill Furniture Co., and Miss Alma Pinkby its board of directors this mornerton. formerly his fiancee, by Bert ing, caused a run on the People's F. Fenn, lawyer, who represented Bank of Rich Hill, which was Miss Pinkerton in litigation against forced close shortly before noon. according to information received Manne. by S. Cantley, State Finance The suit alleges that Manne has Commissioner. The Farmers and settled breach of promMerchants Bank was closed be- ise suit by Miss Pinkerton for cause of frozen loans. $6000 cash and promised income The Peoples Bank had resources of $250 month, and has settled of loans $145,000, capital $100,000 damage suit charging asstock surplus $4000 and sault for $4000 cash and promised deposits of $143,000. George income of $250 month for two Freund, State Bank Examiner. years. will take charge of both the closed Fenn alleges that according to banks. contract he had with Miss PinkerThe Farmers and Merchants ton he is entitled to half of the Bank's last statement showed $25,- $46,000 settlement. The suit names 000 capital stock, surplus, Manne as co-defendant because, it total deposits and $327.- is alleged. Manne knew Fenn had 000 total resources. W. W. Fergu- an attorney's lien on any settleson is president and R. Jones ment made. cashier. Jones attributed the clos- Manne was secretly married Aug. ing of his bank to adverse effects to Miss Thelma West, 3664 Washof the drouth. ington boulevard.

3. August 27, 1930 Brownsville Herald Brownsville, TX
Article from Brownsville Herald, August 27, 1930

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Bank Closes Doors RICH HILL, Mo., Aug. 27.-(P)The Farmers and Merchants back and the People's bank here were closed today by their boards of directors, R. L. Jones, Cashier of the Farmers and Merchants Bank, which closed first, starting a run on the only other bank in this Bates County town, attributed the closing of his bank to adverse effects of the drought in the surrouning county.

4. August 27, 1930 The Chillicothe Constitution-Tribune Chillicothe, MO
Article from The Chillicothe Constitution-Tribune, August 27, 1930

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of One Bank Caused a Second One to Close Up the Peoples Following Run of Farmers and Merchants Closing Bank, it to Close RICH HILL, Mo., Aug. bank to its door Failure of one open for business here this morning caused another institution, which run on forced it to close before noon. The bank which failed to open is the Farmers and Merchants bank. said that its capital statement had been inpaired by "congealed No sooner had the word spread thru the city than run was started on out the Peoples Bank. Taken unawares, officers decided to close the doors the and notified the state banking departThis left Rich Hill without ment. bank. Cantley, finance commissioner, Freund, bank exsending George Hill to take charge of aminer, to Rich both institutions. There is possibility be reorganized to that the banks may it was said operate as one Merchants Bank in The Farmers and last statement listed total resources its $327,372 and de$373,566, loans at at $29,940 W. W. Ferguson posits Jones, cashier president and W. the Farmers Bank. in its last stateThe Peoples Bank, of $170,000, loans ment, had resources of $143,000. of and deposits

5. August 27, 1930 The Chillicothe Constitution-Tribune Chillicothe, MO
Article from The Chillicothe Constitution-Tribune, August 27, 1930

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Failure of One Bank Caused Second a One to Close Peoples Following Run on the of Farmers and Merchants Closing Bank, Forced it to Close RICH HILL, Mo., Aug. bank to open its door Failure of one this morning caused for business here institution, which run on another forced it to close before noon. The bank which failed to open is the and Merchants bank. Farmers rectors' statement said that its capital had been inpaired by "congealed No sooner had the word spread thru was started on the city than Bank. Taken unawares, the Peoples to close the doors the officers decided notified the state banking departand left Rich Hill without ment. This bank. Cantley. finance commissioner, S. bank sending George aminer, to Rich Hill to take charge of institutions. There possibility both reorganized to that the banks may be it was operate as one Bank in and Merchants The Farmers listed total resources last statement $327,372 and deloans at W. W. Ferguson posits at $29,940 cashier of and W. Jones, president the Farmers Bank. in its last stateThe Peoples Bank, of $170,000, loans ment, had of $143,000. of $145,000, and deposits

6. August 27, 1930 The Sedalia Democrat Sedalia, MO
Article from The Sedalia Democrat, August 27, 1930

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WILLIAM THE Convention at Fair ColiseEnded Last With Election RESOLUTIONS WERE PASSED BY GROUP Missouri Farm Leader Gave Address at The Convention's Close William Hirth, Columbia, elected president the Missouri Farmers' Association at the close the fourteenth annual convention Drought Conditions and here tonight. Other officers elected Withdrawals AttributSchindler, As Cause Audrain Directors: Third Congressional district, Charles Scott, Worth The Associated Press. and John Botz, DeKalb counRICH HILL. Aug. Fourteenth Congressional DisFarmers and Merchants Bank and trict, Charles Gorrell. the People's Bank here closed Directors Large: Orf, St. were Charles county, Lane, Chris- today by their boards of directors, tian county, John Schindler, AuJones, cashier of the Farmers drain county, Lynch, Franklin and Merchants bank, which closed county. first, attributed the closing of his Two minor resolutions preceedbank to adverse effects the adoption of the major of the lution of the body. One commend- drought in the surrounding couned President Hirth given support try. Old Guards' organization. Jones said the Farmers and The other written by Mr. Hirth Merchants, the larger of two the and was addressed the voters banks, forced to close by gradof Nebraska, asking for disregard withdrawals resulting from genparty lines to aid in the election erally unsatisfactory farm condiGeorge Norris to the United tions. States senate. The People's Bank was closed Address by President shortly before noon and its affairs Only by placing the burdens of turned over the state finance taxation where they justly belong partment, which had sent George the "disgraceful conditions" of Fruend, an examiner, to take charge most of state institutions the Farmers Merchants William Hirth, president Henry Stevener president and the Missouri Farmers' AssociaIvan Corbin cashier the tion, stated in an address before the ple's Bank, which had total resourannual convention that about $150,000, at the time tion Tuesday night. its last statement. this Hirth said, suggest that our members throughMo., Aug. the state ask that those candiFarmers and Merchants Bank dates for the general assembly who Rich Hill, with $373,000 total have not come out openly in sources was closed today by favor of the tax recommendations board of directors, Cantley, state

7. August 28, 1930 The Butler Times-Press Butler, MO
Article from The Butler Times-Press, August 28, 1930

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HILL THE CLOSES SECOND BANK CLOSING OF BANK Both Institutions Will Probably Remain Closed Pending Action by State Finance Department. Both the Farmers and Merchants Bank and the Peoples Bank of Rich Hill suspended and closed payment their doors Wednesday morning. The suspension and closing of the People's Bank was the result of that on institution by panic stricken depositors following the closing of the Farmers Merchants bank. The Farmers Merchants Bank closed its doors at nine o'clock Wednesday the following notice being attached the door: "This bank in the hands of the Bank Examiner.' Within few moments depositors the People's Bank of Rich began making run quickly veloping, and after the withdrawal of several thousand dollars, the officers and directors that institution ordered the closing its doors and the posting similar notice. Ferguson. president and Jones. cashier the Farmers and the statement Bean, editor Rich Review: withdrawals. coupled with inability make collections at the time, has depleted our cash to that are unable to business further. The Farmers and Merchants Bank of the eldest business tutiors this section of the havbeen established in The last published statement this bank gave its capital surplus and total grandson the founder of the bank president and Jones cashier. The People's Bank Rich Hill established about five years ago, and its last official statement, issued April, gave its capital stock, surplus and undivided profits. total resources Stevener president and Ivan bin, cashier. While there considerable ment Rich Hill over the closing the two there seems to be but feeling of any bitterness among the customers of the two the general concensus of opinion seemto be that the suspensions brought by the general business pression and difficulties in making lections, and the possibilities organization and consolidation of the banks already being discussed Rich Hill business COUNTY MAN LANDS ON DEMOCRATIC STATE BODY Democratic Congressional Committee. Organized Clinton Tuesday. Republicans Met at Butler. State committeemen and committee women were selected and the organizations of the Congressional and State Senatorial committees were made by both the Democratic and Republican organizations meetings held Tuesthe chairmen and vice chairmen of the Democratic and Republican county committees. The Democratic Congressional committee met at Clinton and organized the election of Judge Poague, Clinton, chairman; Miss Flora Rueker, vice chairman; Miss Lilly Woods, Iconium, secretary; Ernest Adams. Knobnoster, Treasurer. Members of the Democratic State Committee for the Sixth CongressionDistrict were selected follows: Curtis, Bates county. Ryals, Dade county. Mrs. Harve Gray, Henry county Gorda Preston. Cedar county. All elections were made by made by Hon. Judge Carl Henry and Republican meeting held the Congressional Committee the election the Morris Huxtable. Cass; Mrs. Lulu Quick Mrs. Oscar Thurman Parks Henry. Committee members lected follows: Dr Harry Cedar: Clair; Lucy Pemberton, Johnson: Mrs. Icie Ross. Henry Short talks made by John H. Gehrs and Hon. Halsey.

8. August 28, 1930 Rich Hill Mining Review Rich Hill, MO
Article from Rich Hill Mining Review, August 28, 1930

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BANKS CLOSING A CALAMITY Withdrawals and Lack of Collections Depleted Cash Reserves; Banks Unable to Continue Business. Rich Hill and the surrounding country sustained a severe financial shock this Wednesday morn ing when the news became cur rent that the Farmers & Merchante Bank had closed. The tragio story was told in a brie notice posted at the entrance to the bank with these words: "This bank is in the hands of the bank examiner." This news was indeed a shock considering that it had weathered every financial storm for the last fifty years, but the general depression felt in financial and industrial and farming a over the country had its effect and was too much for the bank to overcome. W. W. Ferguson, president, and R L Jones. cashier, assigned the cause of the bank's failure in these brief words: "Gradual withdrawals, coupled with our inability to make collections at this time, has depleted our cash reserve to the extent that we are un able to continue the business further." This was a candid statement. attended with the fact that the officers of the bank had exhausted every effort to maintain its standing as a banking institution, but the gradual withdrawals for the past two months and lack of collections were conditions that could not be overoome. It was the pioneer bank of this city, managed by men of the highest integrity. The F. & M. bank was capitalized at $ 5,000, wish surplus of $15,500 In its April published statement it showed resources of $373,556.70 Peoples Bank Also Closed Within two hours after opening of the Peoples Bank at 9 o'olock this Wednesday morning, heavy withdrawals caused this bank to close its doors. The people became panio stricken following the closing of the F. at M. bank and depositors lined up and demanded their money, and after the bank officials paid out several thousands of dollare, President H.S. Stevener and Cashier Ivan Corbin and the board of directors decided to close the bank in view of the fact that they could not stand the heavy withdrawals and also felt that it was the best policy to protect all concerned. A notice to this effect also was posted and the banks affairs will be in the hands of the state bank department. The officers of this bank are well known citizens of strict in tegrity and stand high in the estimation of the public, but the conditions confronting them were such they could not overcome and impossible to stem the tide. The Peoples Bank was established five years ago. According to the April published statement the bank showed capital, eurplus and unde vieed profits of $20,817,74; total resources of $170,134 86. The closing of the two banks is little less than a public eslamity and it is hoped some plan will be effected that will bring about reorganization that will give Rich Hill banking facilities at an early date. State Finance Commissioner S. L. Cantley issued a call several days ago on all banks and trust companies doing business in Missouri to file sworn statements of conditions as of August 22. 1930, but no statements were able to be made by the local banks here

9. August 28, 1930 The Morning Chronicle Manhattan, KS
Article from The Morning Chronicle, August 28, 1930

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"In fact. the most unfavorable weather for corn this year, when its critical stage of growth is considered. covered the last half of August, the dcterioration being 03pecially rapid the tirst half of August." In the great plains states from northern Kansas to South Dakota the corn crop was materially benefited by recent rains. and conditions in some of the northeastern states show improvement, the bureau said In the central valley. localities have improved. but no general benefit to the corn crop is apparent. BOTH BANKS CLOSED. Two Institutions at Rich HILL. Mo., Closed by Directors, Farmers and Merchants bank and the People's bank. the only banks in Rich Hill, were closed today by their boards of directors R. L. Jones, cashier of the Farmers an Merchants bank. which closed first, starting a run on the other bank attributed the closing of his bank to adverse effects of the drouth in the surrounding country The Farmers and Merchants bank had resources of $373,000 and the People's bank's resources were $170.000. George U Freund. state bank exam.ner. will take charge of both institutions. Mrs. Bertha Kelly and daughter Marie of Ogden were shopping here Monday

10. August 28, 1930 The Montrose Tidings Montrose, MO
Article from The Montrose Tidings, August 28, 1930

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RICH HILL BANKS CLOSE Rich Hill, Mo., Aug. 27.This Bates County town had no bank today with the failure of both banks to continue business. The Farmers and Merchants Bank, forty-nine years old, and the Peoples Bank, established about six years ago, were closed voluntarily by their officers and directors. George U. Freund, an examiner from the state finance department, was in charge of both institutions. The Farmers and Merchants Bank did not opens its doors today by action of its directors. The Peoples Bank remained open about one hour and then closed its doors. There was a report from Rich Hill, which reached the office of S. L. Cantley, state finance commissioner in Jefferson City, that the closing of the Farmers and Merchants Bank caused a run on the Peoples Bank and forced its closing. However, there was no line of depositors waiting at the Peoples Bank when it closed and no excitement prevailed around the closed banks or in the community. R. L. Jones. cashier of the Farmers and Merchants Bank attributed the closing of his bank to "frozen loans." It was reported both banks were "tied up" with paper which could not be collected in the face of adverse conditions. Citizens were hopeful that a reorganization would be effected and that a bank. perhaps built upon a nucleus of assets from both closed institutions. might be opened. The Farmers and Merchants Bank had $373,000 total reThe bank's statement showed it had $25,000 capital. $15,000 surplus, $297.000 deposits and $327,000 loans. The Peonles Bank had resources of $170,000: loans, $145,000; capital stocks, $15.000: surplus. $4,000. and deposits of $143,000. W. W. Ferguson is president of the Farmers and Merchants Bank. The institution has been in his family for many years. H. L. Stevener. a farmer, is president. and Ivan Corbin is cashier of the Peoples Bank. Wednesday's Kansas City Star.

11. August 28, 1930 The Kansas City Times Kansas City, MO
Article from The Kansas City Times, August 28, 1930

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FAITH IN ITS BANKERS RICH HILL, LEFT MONEYLESS BY TWO FAILURES, IS CALM. Citizens Blame 1929 Crop Failure and Recent Drought and Expect Closed Banks' Assets to Be' Combined in One. (By Member of The Star's Staff) RICH HILL, Mo., Aug. .-Citizens this Bates County town, left today without a banking institution after the closing of its two banks, tonight sat in little groups on the curb stones and in drug stores to discuss with equanimity the catastrophe which has paralyzed business here. When the Farmers and Merchants Bank, a 49-year-old institution, and the Peoples Bank, founded six years ago, closed today, the business houses were left without currency and change. Tonight it seemed that all money had gone out of circulation. The hotel here did not even have change for a $10 bill, although every room was occupied. Merchants who received out-of-town checks today were planning to drive to Butler, deven miles away, or to Nevada, mineteen miles south, tomorrow to have them cashed. BANKERS NOT BLAMED. though the town faces the prosof going moneyless for at least sek. there was no word of criti- for the bankers. Everywhere failure was discussed, men expresed complete confidence in the men whose institutions have seen the town through the hard times of past W. W. Ferguson is president of the Parmers and Merchants Bank. His grandfather. more than twoscore years ago, laid the foundation for the bank. His father once was in control and Mr. Ferguson himself, comparatively young man, has the good will built up by the previous generations. The bank failures were the result, the patrons feel, of series of unfortunate events which resulted in the complete paralysis of the bank assets. Last year there was crop failure in the surrounding territory. The banks. situated in farming town. naturally lend Margely to farmers. By last spring the assets of the banks were lent almost completely. The drought of the last three months was the final crushing blow Since June 6, Rich Hill has had just two showers. one of them negligible. When the rains of the last few days wept over the middle West, Rich Hill received only half an inch. FORCED TO BUY FEED. Farmers have been forced to buy leed for their cattle the last ninety days, according to George Dowell, mayor. At least $75,000 has been expended by farmers in the territory of the failed banks for feed. In the light of conditions such as those. the town is saying, "Who can blame the men who control the banks? They have helped to the limit of their capacity to keep conditions near normal in this droughtridden district. Why blame them?" Already before state bank examiner has arrived to take over affairs of the bank, plans are understood to be formation to open one bank built upon the nucleus of the two failed banks Citizens are hopeful some plan can be affected to open such an institution within a week. In the meantime they plan to take the failures calmly. SAY CANTLEY FAVORS PLAN. It was said that S. L. Cantley state finance commissioner. had told bank officials that if they would combine the assets of the two banks, add $25,000 of new capital and $5,000 of surplus, a strong bank could be formed. Citizens in their discussions recalled lean years of the past when the Ferguson family came forward with money from its own pockets to normal. keep the banks open and business This morning, when the Farmers' and Merchants' Bank did not open here was no run on the People's Bank It closed an hour later with line doors. of depositors standing before

12. August 29, 1930 The Republican Press Butler, MO
Article from The Republican Press, August 29, 1930

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Rich Hill Banks Closed The following from the Kansas City Star of August This Bates county town had bank today with the failure of both banks continue business. The Farmers and Merchants Bank, years old, and the Peoples Bank, established about six years closed voluntarily by their ficers and directors. George Freund, an examiner from the state finance department, in charge institutions. The Farmers and Merchants Bank its doors today by action directors. The Peoples Bank remained open about one hour and then closed its doors. There report from Rich Hill, which reached the office state Cantley, finance commissioner in City, that closing of the Farmers Merchants Bank caused the Peoples Bank and forced its However, there was line depositors waiting at the Peoples Bank when closed and excitement prevailed around the closed banks or in the community.

13. August 29, 1930 Southwest Mail and The Weekly Post Nevada, MO
Article from Southwest Mail and The Weekly Post, August 29, 1930

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of the Banks of the Closing Town May Result in Organiza. New Bank. Hill, Aug. Bates county town, terday without banking institution the closing its two banks, night on the groups stones and drug discuss with equanimity the which paralyzed busithe Farmers and Merchants institution, and Peoples Bank, founded six closed today, the business were left without currency change. seemed that money had of circulation. The hotel here did not have change although every occupied. Merchants received checks yesterplanning drive to eleven away, vada, nineteen south, today them cashed. Although the faces the of going for at least there word of for the bankers. Everywhere failure was discussed, men pressed complete confidence in the whose institutions have seen the town through the hard times years. president the Farmers and Merchants Bank. His more than laid the foundation years ago, for the bank. father once control of and Mr. Ferguson himself, comparatively young the good built by the up The bank failures were the result, patrons series of fortunate eevents which resulted the complete paralysis of the bank assets. Last year there was crop failure in the surrounding territory. The banks, situated farming naturally lend largely to By last the assets of the banks lent almost completely. drouth of last three months the final crushing blow. Since June Rich has had showers, one them negligible. When the rains the last few days the middle west, Rich received only half inch. Farmers been forced to buy for their cattle the last ninety according George Dowell, mayor. At least had been expended by farmers in the territory the failed bank for feed. the light of conditions such the town is saying, blame the men who control the banks? They have helped to the limit of their capacity to keep ditions near normal in this drouthridden district. Why blame Already before state bank aminer has arrived to take over the bank, plans are underformation to open bank built upon the nucleus of failed banks. Citizens are plan can be affected an institution within week. the meantime they plan the failures calmly. that Cantley, finance commissioner, had bank officials that if they would the assets of the two banks, capital and of surplus, strong bank could formed. Citizens their discussions called lean of the when years past Ferguson family came forward money from its own pockets keep the banks open and business normal. Yesterday morning, when the Farmers' Merchants' Bank did open there was no run the People's It closed an hour with line of depositors its doors.