12162. Security State Bank (Crosby, ND)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
November 1, 1923*
Location
Crosby, North Dakota (48.914, -103.295)

Metadata

Model
gpt-5-mini
Short Digest
dd93e58e

Response Measures

None

Description

The bank suspended late in 1923 due to depleted reserves and inability to collect, with the Guaranty Fund Commission taking charge. It later reopened (reported Sept 24, 1924) after reorganization under a special trust agreement. No article describes a depositor run prior to the suspension.

Events (2)
1. November 1, 1923* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Depleted reserve fund and inability to make collections (insolvency/financial debacle); Guaranty Fund Commission took charge.
Newspaper Excerpt
The Security State Bank in Crosby failed to open its doors Monday morning, having suspended operations on Saturday afternoon on account of a depleted reserve fund and inability to make collections.
Source
newspapers
2. September 24, 1924 Reopening
Newspaper Excerpt
Two banks ... reopened ... The Security State ... had deposits of $199,000 ... Both closed late in 1923.
Source
newspapers

Newspaper Articles (2)
1. November 16, 1923 The Producers News Plentywood, MT
Article from The Producers News, November 16, 1923

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Article Text

SECURITY STATE BANK OF CROSBY GOES TO WALL FAILED TO OPEN FOR BUSINESS MONDAY MORNING AS FUNDS WERE EXHAUSTEDCALAMITY CAUSE OF WIDESPREAD SUFFERING. The Security State Bank in Crosby failed to open its doors Monday morning, having suspended operations on Saturday afternoon on account of a depleted reserve fund and inability to make collections. The bank suspended with approximately $175,000.00 in deposits and loans and discounts aggregate about $170,000.00, causing widespread suffering. Operations of the bank are now being conducted under the new law passed in the last session of the North Dakota legislature which permits the Guaranty Fund Commission to take charge of its affairs. Mr. J. C. Desmond of Minot, inspector for the Guaranty Fund Commission arrived in Crosby Tuesday to make a compilation of the condition of the bank. The Security State Bank was organized in 1907 and the present officers are as follows: President, J. C. Rouseau; Vice President, R. W. Rousseau, and Cashier, R. L. Roussea. The bank is capitalized at $30,000.00. This financial debacle coming at this time plays havoc with the business men and farmers of Divide county.

2. September 24, 1924 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, September 24, 1924

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Article Text

TWO BANKS ARE REOPENED Crosby Banks Had Deposits of Over $350,000 Two banks with combined deposits of $355,500 shortly before they were placed on special trust agreement by the state banking board reopened, according to information received at the office of State Examiner Gilbert Semingson. The two banks-the Security State of Crosby an dthe First State Bank of Crosby-had a combined capital stock of $40,000 at the time of their suspension. Much satisfaction was expressed by the state banking department today over the ability of these two banks to reopen after reorganization. The Security State had a capitalization of $30,000 and deposits of $199,000 while the First State had a capitalization of $10,000 and deposits of $136,500. Both closed late in 1923.