12294. Farmers State Bank (Greene, ND)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 19, 1920
Location
Greene, North Dakota (48.656, -101.701)

Metadata

Model
gpt-5-mini
Short Digest
f4aa0404

Response Measures

None

Description

Directors of Farmers' State Bank of Greene (ND) notified the state examiner they would close the institution and ask for appointment of a receiver because of expected withdrawals; closures tied to farmers failing to meet notes and poor crops. No explicit depositor run is described prior to suspension; receivership requested.

Events (2)
1. November 19, 1920 Receivership
Newspaper Excerpt
Directors ... notified Mr. Lofthus that they would close their bank and ask for the appointment of a receiver.
Source
newspapers
2. November 19, 1920 Suspension
Cause
Local Shock
Cause Details
Failure of farmers to meet notes and poor crops; holding of wheat for higher prices led to strained bank liquidity and expected withdrawals.
Newspaper Excerpt
Directors of the Farmers' State Bank of Greene, N. D., notified Mr. Lofthus that they would close their bank and ask for the appointment of a receiver. Expected withdrawal of public funds was given as the reason.
Source
newspapers

Newspaper Articles (3)
1. November 20, 1920 Great Falls Daily Tribune Great Falls, MT
Article from Great Falls Daily Tribune, November 20, 1920

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Article Text

BANK D. N. ANOTHER CLOSES DOORS, FIVE SINCE FIRST OF WEEK Failures of Farmers to Meet Obligations Not Assigned as Cause by Board of Directors. Bismarck, N. D., Nov. 19.-The Beach State bank of Beach, was closed Friday by its board of directors, it was announced by O. E. Lofthus, state bank examiner. This is the fourth bank to be closed in North Dakota this week. A fifth bank Friday sent word to Mr Lofthus that it had decided to close. Directors of the Farmers' State bank of Greene, N. D., notified Mr. Lofthus that they would close their bank and ask for the appointment of a receiver. Expected withdrawal of public funds was given as the reason. Failure of farmers to meet notes held by banks is one of the principal reasons for suspending operations, Mr. Lofthus said. Holding of wheat for higher prices and poor crops in some sections are also said to be responsible. John Hagan, state commissioner of agriculture and labor, declared tonight that in his opinion the federal reserve bank could adjust conditions by extending more credit. Mr. Hagan said farmers are being forced to sell wheat below cost of production and others are holding for higher prices. The closed banks, according to Lofthus, "are not closed as failures and may be reopened later."

2. November 20, 1920 Grand Forks Herald Grand Forks, ND
Article from Grand Forks Herald, November 20, 1920

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Article Text

BEACH STATE BANK CLOSED Failure Of Farmers To Meet Notes Held By Banks Chief Reason Bismarck, Nov. 19.-The Beach State Bank of Beach was closed late today by its directors, it was announced by O. E. Lofthus, state bank examiner. This is the fourth bank to be closed in North Dakota this week. A fifth bank late today sent word to Mr. Lofthus that it had decided to close. Directors of the Farmers' State Bank of Greene, N. D., notified Mr. Lofthus that they would close their institution and ask for the appointment of a receiver. Expected withdrawal of public funds deposited in it was given as the reason by the board of directors. Greene is near Tolley, in Renville county, where a bank was closed several days 480. Failure of farmers to meet notes held by the banks is one of the principal reasons for suspending operations Mr. Lofthus said. Holding of wheat for higher prices and poor crops in some sections also are responsible, it is said. John Hagan, state commissioner of agriculture and labor, declared tonight that in his opinion the federal reserve bank could adjust conditions by extending more credit. Mr. Hagan said farmers are being forced to sell wheat below cost of production and others are holding for higher prices.

3. November 21, 1920 Evening Star Washington, DC
Article from Evening Star, November 21, 1920

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Article Text

FOUR BANKS CLOSE IN NORTH DAKOTA "Not Shut as Failures," Says Bank Examiner, "May Be Reopened. BISMARCK, N. D., November 20.Directors of the Beach State Bank of Beach late yesterday informed O. E. Lofthus, state bank examiner, that they had closed the bank. This is the fourth bank to be closed in North Dakota this week. A fifth bank late yesterday sent word to Mr. Lofthus that it had decided to close. Directors of the Farmers' State Bank of Greene, N. D., notified Lofthus that they would close their institution and ask for the appointment of a receiver. Expected withdrawal of public funds deposited was given as the reason by the board of directors of the Farmers' State Bank. Greene is near Tolley, in Renville county, where a bank was closed several days ago. Failure of farmers to meet notes held by the banks is one of the principal reasons for suspending operations, Mr. Lofthus said. Holding of wheat for higher prices and poor crops "in some sections also are responsible, it is said. John Hagan, state commissioner of agriculture and labor, declared that in his opinion the federal reserve bank could adjust conditions by extending more credit. Mr. Hagan said farmers are holding for higher prices. The closed banks, according to Mr. Lofthus, "are not closed as failures, and may be reopened later."