State Bank - Ryegate, MT

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: November 26, 1923
Location: Ryegate, Montana (46.297, -109.259)

Metadata

Model: gpt-5-mini
Short Digest: fd1fce5c

Response Measures

None

Description

Article (AP dispatch, St. Paul Nov 26, 1923) states the State Bank of Ryegate 'closed last week' after guaranteeing Montana mortgages that turned out to be of doubtful value. No run is mentioned; closure appears to be a failure due to bad loans/mortgages (bank-specific adverse information).

Events (1)

1. November 26, 1923 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Guaranteed a considerable number of Montana mortgages that proved of doubtful value; losses rendered the bank unable to continue and it closed last week as reported in dispatch.
Newspaper Excerpt: Some of these mortgages were guaranteed by the State bank of Ryegate, Mont., which closed last week.
Source: newspapers

Newspaper Articles (1)

1. November 30, 1923 The Mankato Free Press Mankato, MN

Article from The Mankato Free Press, November 30, 1923

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Article Text

FOUR BANKS ARE CLOSED IN STATL Stearns County Institutions Suspended Today REASON FOR ACTION Mortgages Held were Found of Doubtful Value, Declares Superintendent Veigel [Associated Press Dispatch.] St. Paul, November 26.-Four Stearns county state banks were closed today by the state banking department. They are the Farmers State bank of Meire Grove, the New Munich State bank of New Munich, the Security State bank of Melrose, and the State Bank of St. Martin. J. H. Spieker is president of the Meire Grove bank and also of the Melrose bank. The former bank was capitalized at $12,000 and had deposits totaling $206,000. The Security State bank of Melrose was capitalized at $50,000 and had deposits aggregating $589,000. H. J. Terhaar is cashier of the New Munich State bank which was capitalized at $20,000 and had deposits of $309,000. R. J. Kuhl is the cashier of the State bank of St. Martin which was capitalized at $10,000 and had deposits of $178,000. In a formal statement given shortly after the announcement had been made, Mr. Veigel declared that the four institutions were at one time owned by Dr. P. A. Hilbert of Melrose, now deceased, who also had an interest in Montana banks. Held Montana Mortgages "Several years ago," Mr. Veigel said, "a considerable number of Montana mortgages were placed in these four banks, and these mortgages have turned out to be of a doubtful value. Some of these mortgages were guaranteed by the State bank of Ryegate, Mont., which closed last week. thus removing the liability of this bank and further reducing the value of the paper. "It was therefore decided that the loss on this Montana paper would be so large that the banks would be unable to work out of their difficulty and they were therefore ordered closed." Today's closings brings the total number of state banks in Minnesota, which have been closed since January 1, to twenty-two. Deposits in the four institutions approximated nearly $1,283,000, according to the records in the state banking department. The reason for closing as explained by A. J. Veigel state superintendent of banks, is the failure of the State Bank of Ryegate, Montana, formerly owned by Dr. P. A. Hilbert, which had guaranteed a large amount of paper in each of the four Minnesota banks.