11405. Farmers & Merchants State Bank (Bloomfield, NE)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
February 1, 1929*
Location
Bloomfield, Nebraska (42.599, -97.646)

Metadata

Model
gpt-5-mini
Short Digest
c61b4b3890a54ad4

Response Measures

None

Description

Newspaper articles (Bloomfield Monitor, Feb 14, 1929) report that the Farmers & Merchants State Bank in Bloomfield was driven by sustained rumors/propaganda and withdrawals into closing by the state bank examiner and placed in the hands of a receiver. Articles state deposits dwindled due to rumors and lack of public confidence; officers and community expected liquidation of deposits from assets. Thus a run (withdrawals driven by rumors) led to suspension/closure and receivership. OCR errors in articles corrected for readability (e.g., went into the hands of receiver and timing last day shortly after the noon hour).

Events (3)
1. February 1, 1929* Run
Cause
Rumor Or Misinformation
Cause Details
Sustained propaganda/rumors over months/years that undermined public confidence and prompted deposit withdrawals.
Measures
Bank officers struggled to retain business; no specific liquidity support measures reported other than attempts to pay obligations and later liquidation of assets to satisfy depositors.
Newspaper Excerpt
Rumors the closing of the bank had been current for the past few years...depositors the bank kept withdrawing their money from the bank the strength the rumors, and deposits dwindled
Source
newspapers
2. February 13, 1929 Receivership
Newspaper Excerpt
The Farmers and Merchants State Bank went into the hands of receiver... Work commenced at once in cleaning up the of the bank, and said that about 75 percent of the deposits will [be] liquidated from the assets of the bank within short time.
Source
newspapers
3. February 13, 1929 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Official closure by the state bank examiner following dwindling deposits and inability to continue operations; articles state not bad paper as primary cause but lack of public confidence forced closing.
Newspaper Excerpt
The Farmers and Merchants State Bank went into the hands of receiver last day shortly after the noon hour. bank examiner from the state ... arrived ... and immediately after arrival closed the door
Source
newspapers

Newspaper Articles (3)
1. February 14, 1929 Bloomfield Monitor Bloomfield, NE
Article from Bloomfield Monitor, February 14, 1929

Click image to open full size in new tab

Article Text

State Bank Should Not Have Been Closed According to reports reaching believe they are authentic, the Farmers and Merchants State Bank, went into the hands receivers, closed its doors. stronger than several months ago, and they had paid good many thousands of dollars borrowed money and were apparently sailing along in fine shape. The first that that their doors were going be barred. when the examiner arrived in the without nay warning of any politely informed the officials that dispatched this by the artmet Trade and Commerce the Propagandad largely responsible the closing. Rumors several months that the bank could Harm and Tulleys gallant fight. but they had depositors their money and money deposited. Propaganda sponsible for this condition, and that gained such headway could not curbed. Three ago. this propaganda and effort had been made the bank would Propaganda wreck the largest and strongest institution the deadly. and the Farmers Merchants bank came for share and result that only bank in Bloomfield surprise shock community.

2. February 14, 1929 Bloomfield Monitor Bloomfield, NE
Article from Bloomfield Monitor, February 14, 1929

Click image to open full size in new tab

Article Text

State Bank Close Their Doors The dreaded happenend. The and Merchants State Bank, went into the hands of receiver last day shortly after the noon hour. bank examiner from the state ment arrived in this from Lincoln, and immediately after arrival closed the door, which put an end to the ations of the Farmers and Merchants State Bank, landmark the banking circles in the Bloomfield community. sad blow to Rumors the closing of the bank had been current for the past few years. and time progressed public sentiment grew that depositors the bank kept withdrawing their money from the bank the strength the rumors, and deposits dwindled until there was but recourse and that was the closing of the doors and discontinuing business. Many caught with deposits in the bank. Farmers depended aid for the coming year, and those received aid are up against and will work hardship on them. Work commenced at once in cleaning up the of the bank, and said that about 75 percent of the deposits will liquidated from the assets, of the bank within short time. not the bad condition of the bank, the bad paper held the bank that forced the closing of the bank. All banks have some bad per, but lack of public confidence the bank by the depositors compelled the officers to give up their hard struggle to exist with the above results. The officers of the bank commended for their hard fight keeping the bank open for business during all these years. Ever since the deflation following the said that the Farmers and Merchants State bank could not withstand the deal. Coupled with poor crops following the deflation period, made that much harder for the bank to continue. In 1927 when good crop was had, the feeling subsided and was thought that they would pull through. and think that the bank would have been put on its feet had the combeen Harm the officers the bank put brave fight the last minute, but they had to bow to that which they dreaded. This leaves the Nebraska State bank, the only bank in the city. bank, fact one of the strongest in Knox County and with the passing of the Farmers and Merchants bank. will put this institution among the top-notchers in this part the The officers the Nebraska State bank good bankers, conservand They have weathered all the adverse condithat have been experienced and they have the confidence of the pubtheir ways banking. True, guaranty fund has the bank heavily during the past years, and told that the GuarFund liquidate banks that closed their doors during those This the ernings the bank down where they not made their they kept going and each year their business steadily increased. Now that they have the field to themthere doubt but they business larger and continue the peobetter put their bank more solid foundation: gain the confidence the public, and in that way may be of better and help the community. The Monftor congratulates the officers of the Nebraska State They are fine of fellows, and can depend them the outstanding institution in the community

3. August 15, 1929 The Creighton News Creighton, NE
Article from The Creighton News, August 15, 1929

Click image to open full size in new tab

Article Text

Seeds Seeds seem like may things, but there are teresting in the lected by the Department Agriculture, which has one of the most collection of economie foreign seeds in the world. The airplane seed from the East Indies comes from large dry squash growing in the tree tops. The squash when opens and free the seeds, which have each end so placed that on the seeds falling describe about 20 feet in diameter. seed of the from Madagasear covered with silky fringe, and the of the flower black with covered brilliant scarlet plume. One kind of eucalyptus seed resembles boomerang, another tiny model of an Eskimo kayak, with round for the paddle top sit the the heifer During summer needs no feed the is good. Late in the pasture season she need little hay may and grain to keep growing stead- The wise livestock feeder soon that the proper use of all farm by-products, waste, and for feed constiplus crops tutes the main difference profit and loss in feeding. A horse hard at work in the summer needs from to pounds of grain and pounds of to each pounds of his hay The work horse should be weight. fed at regular intervals during the summer. George Doerr, one of the progressive Eden Valley farmers threshed ten-acre field of oats last Friday, which netted yield of 65 bushels Many other fields in that section yielding from to are bushels per acre this News. The Citizens National has 88 cent to depaid per and has left more than positors in notes, claims, that be sold auction. This at only per cent short of full The Laurel bank has cent to depositors. The per Farmers Merchants State failed bank Bloomfield is reorganized at and expected to open next week. All this means that northeast braska has reserve financial sources that are being used to good account in these dolph The meat makes profitof able use of every the business, and the packing grain farmer can do the by salvaging the or from his grain, and feeding livestock. The average from which the chaffy material has been removed are nearly to wheat, or barley equal of the various nutripercentages avoid contamination of ents. soil through weed seeds all the used feed should be screenings as except when thoroughly ground to sheep.