Farmers & Merchants State Bank

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: June 5, 1929
Location: Lakota, North Dakota (48.043, -98.336)

Metadata

Model: gpt-5-mini
Short Digest: ce380a50

Response Measures

None

Description

Article (1931) describes testimony that the Farmers & Merchants State Bank had closed on June 5, 1929 and carried worthless real-estate paper and inadequate reserves. No run is mentioned; the bank had previously closed (suspended) and did not reopen. The 1931 hearing concerns alleged insolvency/illegal loan practices.

Events (1)

1. June 5, 1929 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank carried much worthless paper, real-estate loans held past legal limits and reserves reportedly $12,000 to $18,000 short of legal requirement prior to closing; insolvency alleged in state testimony.
Newspaper Excerpt: the Farmers and Merchants State bank previous to its closing June 5, 1929
Source: newspapers

Newspaper Articles (1)

1. April 12, 1931 Grand Forks Herald Grand Forks, ND

Article from Grand Forks Herald, April 12, 1931

Click image to open full size in new tab

Article Text

STATE SAYS BANK PAPER WORTHLESS Hearing for Three Former Lakota Men to Be Resumed Monday. Lakota. April Testimony was introduced today in the hearing of James D. Grenna of Carl W. Lewis of Fargo and Ralph Chisholm of Willmar Minn., which the state claims show ed much worthless paper was car ried by the Farmers and Merchants State bank previous to its closing June 5, 1929 This afternoon W. C. Hagler of Lakota testified as to real estate dealings with the bank and Ed Lowen, representative of the state bank office. told of condition of the bank's loans and discounts department. Through testimony given by C. F. Ferris, former assistant cashier of the bank. the state endeavored to show that the bank's reserve for four months previous to closing was from $12,000 to $18,000 less than the amount set by law. Testimony also was offered in an ef fort to show that much of the real estate paper in the bank was held longer than the five year limit allowed by law.