12632. Bank of Valley City (Valley City, ND)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
November 30, 1923
Location
Valley City, North Dakota (46.923, -98.003)

Metadata

Model
gpt-5-mini
Short Digest
3a435464

Response Measures

Full suspension, Books examined

Other: Bank temporarily closed to reorganize; state examiner mentioned as absent.

Description

Articles (Dec 1 and Dec 5, 1923) state a run caused by rumors of a sale/consolidation led the bank to close/suspend Nov 30; reorganization allowed reopening Dec 5. Bank is state-chartered (references to State Examiner and Guaranty Fund Commission). No concrete false-telegram or specific corrected misinformation described, so classified as rumor-driven run.

Events (3)
1. November 30, 1923 Run
Cause
Rumor Or Misinformation
Cause Details
Rumors spread that the bank was planning to sell out / consolidate with another bank, causing depositor withdrawals.
Measures
Closed temporarily to give time for reorganization; directors decided not to open following the run.
Newspaper Excerpt
The bank closed Nov. 30 after, officials said, a run on the bank was caused by rumors that the bank was planning to sell out.
Source
newspapers
2. November 30, 1923 Suspension
Cause
Rumor Or Misinformation
Cause Details
Suspension followed a run triggered by rumors of consolidation/sale; state banking officials were notified and the bank's status (reorganization or supervision) was under review.
Newspaper Excerpt
The Bank of Valley City did not open its doors for business yesterday following action by the directors the night previous.
Source
newspapers
3. December 5, 1923 Reopening
Newspaper Excerpt
Reorganization of the institution, enabled the Bank of Valley City, which was suspended a few days ago, to reopen yesterday.
Source
newspapers

Newspaper Articles (3)
1. December 1, 1923 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, December 1, 1923

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Article Text

BANK WILL BE REOPENED Valley City, Dec. 1-The Bank of Valley City did not open its doors for business yesterday following action by the directors the night previous. Efforts have been made in the past two weeks to consolidate with another bank and news of this spread, which caused a run on the institution. The bank is closed temporarily only to give time for reorganization, officers said.

2. December 1, 1923 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, December 1, 1923

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Article Text

BANK SUSPENDS Whether Bank of Valley City, reported to have suspended yesterday, will be closed, reorganized or go under supervision of Guaranty Fund Commission is not known, it was stated at state banking department today. No official information had reached office concerning bank's action, it was said, and in absence of State Examiner Semingson, who is in St. Paul, no statement will be made from his office.

3. December 5, 1923 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, December 5, 1923

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Article Text

VALLEY CITY BANK REOPENED Valley City, N. D., Dec. 5.-Reorganization of the institution, enabled the Bank of Valley City, which was suspended a few days ago, to reopen yesterday. The bank closed Nov. 30 after, officials said, a run on the*bank was caused by rumors that the bank was planning to sell out.