11541. First National Bank (Scobey, MT)

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
10838
Charter Number
10838
Start Date
July 13, 1931
Location
Scobey, Montana (48.793, -105.421)

Metadata

Model
gpt-5-mini
Short Digest
8f69e783

Response Measures

None

Receivership Details

Depositor recovery rate
1.4%
Date receivership started
1931-07-14
Date receivership terminated
1935-09-18
OCC cause of failure
Economic conditions
Share of assets assessed as good
32.9%
Share of assets assessed as doubtful
66.6%
Share of assets assessed as worthless
0.5%

Description

The First National Bank at Scobey closed in July 1931 (article dated 1931-07-14 says it 'closed yesterday'). Closure is attributed to inability to realize assets to meet withdrawals amid regional drought (local agricultural shock). A 1935 article notes the bank had been closed since July 1931 and affairs were in the hands of a receiver who paid a final dividend, confirming permanent closure and receivership.

Events (4)

1. April 21, 1916 Chartered
Source
historical_nic
2. July 13, 1931 Suspension
Cause
Local Shock
Cause Details
Inability to realize on assets to meet withdrawals due to regional drought damaging local agricultural yields.
Newspaper Excerpt
The First National bank at Scobey closed yesterday; ... Inability of the banks to realise sufficiently on their assets to meet withdrawals was given as the chief cause for their closing. The area in which they were located had suffered much from drouth.
Source
newspapers
3. July 14, 1931 Receivership
Source
historical_nic
4. August 8, 1935 Receivership
Newspaper Excerpt
Andrew Foley, receiver of the First National Bank of Scobey announces the payment of a first and final dividend for that bank. The bank was closed in July, 1931 and since that time the affairs of the institution have been in the hands of a receiver.
Source
newspapers

Newspaper Articles (2)

Article from The Butte Daily Post, July 14, 1931

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Article Text

SMALL BANKS IN DROUTH AREA HIT HELENA, MONT., July 14.-(P)Three small banks in northeastern Montana have closed in the last two weeks, was learned here today from G. M. Robertson, state examiner and superintendent of banks, and R. E. Towle, managing director of the Federal Reserve Branch bank. The First National bank at Scobey closed yesterday; the Farmers and Merchants State bank at Plentywood, Friday, and the State bank of Westby, about two weeks ago. Inability of the banks to realise sufficiently on their assets to meet withdrawals was given as the chief cause for their closing. The area in which they were located had suffered much from douth. Rains had been received too late produce even fair yields this year.


Article from Plentywood Herald, August 8, 1935

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Article Text

NEWS OF OUR NEIGHBORS . Gleaned from Exchanges that Reach Our Desk YOUNG SHEEP HERDER DROWNS, OSWEGOThe body of Peter Bagadoy, age 30, was recovered from a reservoir near Oswego by members of the sheriff's office of Wolf Point. The young man had attempted to swim his horse across an artifical lake that had been filled by rain, and apparently unaccustomed to the handling of horses while in the water, and being unable to swim, both rider and horse were drowned. PATROLMAN HAILS EIGHT INTO COURTState highway patrolman N. J. Cummings put in a busy day at Poplar Tuesday. He was responsible for eight violators being fined in Justice court, and issued warnings to many others. Clarence Reinertson, formerly of Plentywood, now of Fort Peck was one of the eight hailed into court and paid a $5 fine for excessive speed through the city. FIRE THREATENS HIGHWAY BUILDINGFire of unknown origin threatened seriously for a time to destroy the state highway building at Culbertson. Quick response by the fire department and strong pressure of water soon had the flames under control. The cab of one of the trucks where the fire had seemingly started and the roof of the building were badly burned. VALLEY COUNTY OFFICERS CAPTURE TWO -Claire Schofield, who gave her address as Great Falls, and Charles Brown of Wheeler were turned over to McCone county authorities by Valley county officials after they had been arrested near Glasgow as suspects in a holdup in which Peggy Ward reported the loss of a diamond ring and $38 in cash. LIGHTNING STRIKES HOUSE NEAR POPLAR -Martin Berglee's new house in the Anderson community near Poplar was hit and extensively damaged by lightning. The bolt went through the entire house following electric wires. It tore a corner off a piano, loosened plaster, cracked the foundation and smashed a corner of the house proper. HOUSEWIVES FIND USE FOR HAIL STONES— For something new in desserts, try the dish which was prepared by housewives of Orthell in Williams county. These thrifty individuals took the baseballsized hall which fell in that area last week and treated their families to ice cream, frozen by utilizing the hall. MANY TOURISTS AT FORT PECK DAMA total of 2,566 automobiles carrying 8,9$5 visitors from 36 different states visited the Fort Peck project during the past five weeks. Montana alone was represented by tourists from 51 of its 56 counties. License plates from six Canadian provinces were also seen. WEST POPLAR RIVER PROJECT URGEDA mass meeting of farmers and business men responded to a call to act on the West Poplar river project near Richland. Delegations from Opheim, Glentana, Peerless, Scobey and Flaxville swelled the crowd. Senator James T. Sparling was chairman. TORNADO WRECKS BARN AT SIOUX PASSA small tornado wrecked the barn on the C. J. Sjostrom farm near Sioux Pass. The roof of the structure was carried nearly 500 feet. Other smaller buildings in the community were wrecked in the twister which was local in extent. SCOBEY BANK TO PAY ONE DIVIDENDAndrew Foley, receiver of the First National Bank of Scobey announces the payment of a first and final dividend for that bank. The bank was closed in July, 1931 and since that time the affairs of the institution have been in the hands of a receiver. GAS-LINE PROPOSAL DISCUSSED AT MALTA -With a plan to build a 1,450-mile natural gas pipeline from northern and eastern Montana fields to the Minnesota iron range and Twin Cities, interested parties from Minnesota were in Malta last week to confer with city and county officials. SIDNEY-FAIRVIEW HIGHWAY COMPLETEDSurfacing with crushed gravel on the Sidney-Fairview road was completed last week-end. Grading is practically completed over a distance of eight miles. September 15 is the dead-line for completion of the work. PATROLMAN INJURED-Patrolman Don Mercer of the state highway patrol department suffered arm cuts and bruises when his motorcycle struck a hole in the pavement. Mercer is from Sidney.