11358. First State Bank (Beaver City, NE)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
November 1, 1931*
Location
Beaver City, Nebraska (40.138, -99.830)

Metadata

Model
gpt-5-mini
Short Digest
8f745714391391d8

Response Measures

None

Description

Bank experienced heavy withdrawals and declining deposits leading to suspension on Nov 20, 1931. The institution was reorganized/recapitalized by stockholders and reopened in May 1932. OCR errors in articles corrected (e.g., examiner Richard Hadley). Cause attributed to bank-specific problems: borrowers unable to meet notes, producing withdrawals. No receivership mentioned.

Events (3)
1. November 1, 1931* Run
Cause
Bank Specific Adverse Info
Cause Details
Continued heavy withdrawals as borrowers/debtors could not pay notes, causing rapid decline in deposits over prior months.
Measures
Examiner (Richard Hadley) placed in charge temporarily; discussion of reorganization and giving depositors credit for most deposits; later recapitalization by stockholders.
Newspaper Excerpt
First State Bank suspended ... caused by continued withdrawals which caused decline in deposits ... had amounted to more than $1000 day for the past 90 days. People indebted to the bank could not pay their notes rapidly enough to meet the declining deposits.
Source
newspapers
2. November 20, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension directly attributed to continued withdrawals and decline in deposits (from $715,000 eighteen months earlier to much less), making bank unable to meet obligations in current form.
Newspaper Excerpt
The bank suspended on November 20, 1931.
Source
newspapers
3. May 10, 1932 Reopening
Newspaper Excerpt
Reorganized bank at Beaver City opened ... The bank suspended Nov. 20. ... The bank re-opening made gala occasion. ... Capital stock of the re-organized bank is $30,000. A. Keiser is president; B. Brown, vice president and T. Nickerson, cashier.
Source
newspapers

Newspaper Articles (6)
1. November 26, 1931 The Times-Tribune Beaver City, NE
Article from The Times-Tribune, November 26, 1931

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Article Text

FIRST STATE BANK CLOSED First State Bank suspended The business last Friday morning. active caused by conThe suspension was withdrawals which caused tinued from $450,000 to decline in deposits in last and from the year eighteen months ago. top of amounted more than had 90 days. People day for the past the bank could not pay indebted to rapidly enough to meet their notes declining deposits. Richard Hadley Examiner listing all assets temporary charge, liabilities. By Saturday will be in charge hoped some give customers access who etc. unsafety deposit made up by derstood estimates indicate that in the event Hadley depositors could of immediately for be given credit all their deposits and practically of be little that there would probably but stockholdloss anyone any event of any reorganizathe tion will no doubt be necessary for draw but to depositors of their deposits for some percentage recurrence of the time to prevent recent trouble. without bank is Beaver community will thinkable. entire or the to reorganize reopen co-operate bank.

2. December 3, 1931 South Side Sentinel Danbury, NE
Article from South Side Sentinel, December 3, 1931

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Article Text

BEAVER BANK SITUATION LEBANON LOCALS Mr. and Mrs. Byrne Fletcher and son Albert of Junction City, Kans., visited from Thursday until Sunday with Mrs. Fletcher's uncles, John Horton and other L. and Henry relatives. George Nestle spent Friday night at the John Weber home. We clip the following from last week's Beaver City "The First State Bank suspended active business last Friday morning. The suspensions was caused by continued withdrawls which caused decline in deposits from $450,000 to $235,000 in the last year and from top of $715,000 eighteen months ago, It had amounted to more than $1000 day for the past 90 days. People indebted to the bank could not pay their notes rapidly enough to meet the declining deposits. Richard is in Examiner Hadley By Saturday It is and hoped one will be in charge some who can give customers access to safety deposit boxes, etc. It is understood the estimates made up by Mr. Hadley indicate that in the event of reorganization depositors could be given credit immediately for practically all of their deposits and that there would probably be little loss to anyone but any necessary for depositors to agree draw but of their depercentage recurrence of the recent trouble. Beaver City without a bank is thinkable. The entire community will co-operate to reorganize or open the bank." Mr. and Mrs. Ray Weber were Thanksgiving dinner guests parental John Weber home. Miss Arlene Welborn spent from Thursday until Saturday with her parents, Mr. and Mrs. L. M. Welborn and family. and Mrs. John Horton Mr. entertained party Friday evening, Mr. and Mrs. Byrne Fletcher and Albert of Junction City, Kans., Mr. and Mrs. L. Flechter, Mr. and Mrs, H. L. Nichols and family, Henry Horton and Miss Ada Moss. Mrs. Horton served a lovely Miss Ada Moss of Danbury spent until Sunday with from Thursday Lorine Nichols and Mr. and Mrs. H. family entertained at Thanksgiving Mr. and Mrs. Byrnie Fletcher dinner, Albert of Junction City, Kans., and Moss of Danbury, Mr. and Miss Ada Horton, Mr. and Mrs. Mrs. John Len Flechter and Henry We learn that From the news Out pay their taxes this the victim manages country until he regain consciousness his tax receipt. gets

3. May 10, 1932 The Columbus Telegram Columbus, NE
Article from The Columbus Telegram, May 10, 1932

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Article Text

REORGANIZED BANK AT BEAVER CITY OPENED May 10 First bank of City, reorganized, re-capitalized and made by for the state ment of trade and nounced. The bank suspended Nov. 20. Capital stock of the re-organized bank ident and Nickerson, The bank re-opening made gala occasion. Classes were dismissed in the city schools. The school children, headed by band, marched to the bank. program Robert Scott, one of the counremaining civil erans, was first depositor the re-opened institution.

4. May 10, 1932 Norfolk Daily News Norfolk, NE
Article from Norfolk Daily News, May 10, 1932

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Article Text

Deaths Vernon Linn Vernon Linn, nephew of Mrs. Olson of Norfolk whom he lived while attended Norfolk high school, Monday morning Springfield, III., after an illness of eleven months, according to word receivby relatives here. Mr. Linn graduated from Norfolk high school and then worked Norfolk for time. leaving here employed by the Kresge company in mont and from there was transferred to Springfield, Thenhaus and Howser in charge of funeral arrangements, and the body expected Norfolk Mr. Linn survived by brothers, Victor and Floyd, sisters, Miss Mabel Linn, Mrs. Livenden: his aunt, Mrs. son; and cousin. Miss Mabel all Norfolk. Beaver City Bank Reopens Lincoln, May state department and commerce today announced organization and reopening the First State bank Beaver City. The bank suspended business Nov 1931 Stockholders the institution with view to pay the depositors in full The bank opened with capital stock of News your home paper.

5. May 11, 1932 Kearney Hub Kearney, NE
Article from Kearney Hub, May 11, 1932

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Article Text

RE-OPEN BEAVER BANK. Lincoln, Neb., May First State Bank of Beaver City, reorganized, re-capitalized and made solvent by stockholders, re-opened for business yesterday, state depart of trade and commerce announced. The bank suspended on November 20, 1931. Capital stock of the re-organized bank is $30,000. A. Keiser is president; B. Brown, vice president and T. Nickerson, cashier.

6. May 11, 1932 The Stockman's Journal Omaha, NE
Article from The Stockman's Journal, May 11, 1932

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Article Text

Beaver City Celebrates Reopening of State Bank Beaver City, Neb., May 11 First State bank, Beaver City, organized, recapitalized solvent stockholders, reopened for The bank November 20, 1931. Capital stock of the reorganized bank F. Keiser ident; Brown, president, Nickerson, The bank reopening was made the schools. school dren, headed by band, marched to the bank Robert the county's civil was the first depositor in the reopened institution.