12109. Nebraska State Bank (Sidney, NE)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
August 11, 1921
Location
Sidney, Nebraska (41.143, -102.978)

Metadata

Model
gpt-5-mini
Short Digest
e33934faddb76733

Response Measures

None

Description

Bank was closed by the state examiner/department (notice posted Aug 11, 1921) for exhausted reserves/poor collections; subsequently a receiver was recommended/appointed later in August. No article describes a depositor run or heavy withdrawals, so this is a suspension leading to closure/receivership rather than a run-driven failure.

Events (2)
1. August 11, 1921 Suspension
Cause
Government Action
Cause Details
Examiner (department of trade and commerce) posted notice closing the bank because of exhausted reserves and poor collections; consolidation attempt failed.
Newspaper Excerpt
This bank is in the hands of the department of trade and commerce. ... Exhausted reserves and credits are responsible for the closing.
Source
newspapers
2. August 24, 1921 Receivership
Newspaper Excerpt
A. J. Jorgenson ... was recommended as receiver of the Nebraska State bank which closed recently. ... A. J. Jorgenson, a Sidney real estate man, has been appointed receiver for the bank, Chase announced. (Aug. 23-24, 1921 articles.)
Source
newspapers

Newspaper Articles (3)
1. August 12, 1921 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, August 12, 1921

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Article Text

Examiner Closes Nebraska State Bank at Sidney Exhausted Reserves and Credits Reasons Assigned; Depositors Will Not Lose, Opinion of J. E. Hart. Sidney, Neb.. Aug. 11.-(Special Telegram.)-"This bank is in the hands of the department of trade and commerce." This notice, signed by C. G. Stoll. examiner in charge, posted on the door of the Nebraska State bank here this morning, adds another institution to the long list of those in the state which have failed within the last few months. Poor collections are the reasons assigned for the closing. No Official Notification. Lincoln, Neb., Aug. 11.-(Special Telegram.)-J. E. Hart, secretary of the state department of trade and commerce, returning from Omaha tonight, said that he had received no official notification of the closing of the Nebraska State bank at Sidney. "However," he said, "I have no doubt but that the institution was closed today. I was in Sidney last Sunday and an attempt was made to effect a consolidation between the Nebraska State and the Liberty State banks, in hopes the latter institution would take over affairs of the other bank. "I left instructions with C. G. Stoll, examiner, to close the bank if the consolidation move failed to materialize. "Late last night I received a telegram from Sidney stating that the consolidation had failed, so I presumed the bank would be closed today. Expects No Losses. "Exhausted reserves and credits are responsible for the closing. In other words, the bank could get no more credit. I do not believe there was any shortage. Just a case of a bank getting too much slow paper and failure to receive credit from other institutions to carry it through. "I do not believe that after the bank is liquidated and collections made on slow paper there will be any losses. However, I do not wish to make a definite statement, as the examiner has not finished his investigation." The bank is capitalized at from $200,000 to $250,000. according to Secretary Hart. F. M. Wooldridge, who went to Sidney from Kimball, Neb., several years ago, is president.

2. August 24, 1921 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, August 24, 1921

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Article Text

Councilman Recommended As Sidney Bank Receiver Sidney, Neb., Aug. 23.-(Special Telegram.)--A, J. Jorgenson, prominent real estate man and city councilman, was recommended as receiver of the Nebraska State bank which closed recently. Appointment will be made by District Judge Tewell upon recommendation of Attorney General Davis. Assistant Attorney General Chase and Bank Exam:ner Stoll are here in connection with affairs of the bank.

3. August 25, 1921 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, August 25, 1921

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Article Text

Continue Investigation Of Nebraska State Bank Lincoln, Aug. 24.-(Special.)-Investigation of the Nebraska State bank at Sidney will continue, it was announced by Assistant Attorney General J. B. Chase upon his return from Sidney. Both Chase and J. E. Hart, secretary of the department of trade and commerce, refused to state what discoveries had been made in the transactions of bank officers. E. G. Stoll, bank examiner, is still at Sidney and is continuing in attempting to unwind the complicated affairs of the bank. A. J. Jorgenson, a Sidney real estate man, has been appointed receiver for the bank, Chase announced.