12783. Farmers State Bank (Belvidere, NE)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
May 4, 1921
Location
Belvidere, Nebraska (40.252, -97.558)

Metadata

Model
gpt-5-mini
Short Digest
b93339e7

Response Measures

None

Description

No run is described. Articles report the cashier (William Barge) disappeared admitting shortages; a bank examiner took charge and bankers sought appointment of a receiver. Cause is bank-specific defalcation/poor loans. Receiver appointment is imminent, indicating permanent closure/receivership.

Events (2)

1. May 4, 1921 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Cashier William Barge disappeared admitting shortages; examiner found large amount of bad paper and missing school fund; loans to brother and others indicated defalcation.
Newspaper Excerpt
J. E. Hart, secretary of the department of finance and revenue, sent Bank Examiner J. R. Riley to take charge of the bank at Belvidere.
Source
newspapers
2. May 7, 1921 Receivership
Newspaper Excerpt
A number of bankers interested in the Belvidere bank met at Hebron ... requested that when a receivership suit is started that W. O. Galbraith ... be appointed cashier.
Source
newspapers

Newspaper Articles (2)

Article from Omaha Daily Bee, May 5, 1921

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Article Text

Nebraska Bank Cashier Flees; Accounts Short Cashier of Belvidere Bank Disappears on Same Day Brother Goes to Prison For Defalcation. Lincoln, May 4.-(Special.)--William Barge, cashier of the Farmers State bank, Belvidere, Neb., has disappeared from home, leaving a shortage in his accounts. He left Belvidede last Monday, the day when his brother, Herbert H. Barge, cashier of the Farmers State bank of Hoskins, Neb., entered the state penitentiary here to serve a term for defalcation from that bank, to which he confessed. The disappearance of the second Barge brother was a mystery until yesterday when his wife received a letter from him which said in part: "I am short in my accounts in the bank. I am going away and will not be back." The letter also is said to have admitted a shortage of $2,000 in Barge's account with the Belvidere school district. The letter was mailed on a Northwestern railroad train somewhere on the Norfolk division. J. E. Hart, secretary of the department of finance and revenue, sent Bank Examiner J. R. Riley to take charge of the bank at Belvidere. Riley has reported that he found about $15,000 of what he considered "bad paper," including a loan of $5,000 made to Herbert H. Barge, the brother now in the penitentiary. At the time of the last examination the Belvidere bank had loans of $96,500 and deposits of $85,300. A wave of bank troubles is sweeping over the state, due to "general cussedness," according to Mr. Hart, and not to any general financial troubles in the country. Following the recent closing of the Farmers State bank at Hadar, Neb., it was announced today that William Lefferdink, the cashier. will be prosecuted. C. L. Dort, an assistant attorney general, went to Oshkosh, Neb., today to appoint a receiver for a bank there. Attorney General Davis said last evening that he will leave today for another town which he declined to name to appoint a receiver for a bank.


Article from Omaha Daily Bee, May 8, 1921

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Article Text

High Price of Whisky Blamed For Bank Failure Effort of William Barge to Save Brother From Prison By Loan of $5,000 Fails. Lincoln, May 7.-(Special.)-A vain effort to save his brother from state prison was partly responsible for making William Barge, defaulting Belvidere bank cashier, a fugitive from justice, according to a statement today by J. E. Hart, secretary of the department of trade and commerce. Hart returned today from Belvidere. "Barge, I am told, ran around with a fast crowd, bought liquor at the present high prices and then couldn't refuse to turn his brother down when the latter told him that he needed money to keep him from state prison," Hart said. The attempt of Barge to save his brother by loaning him $5,000 failed On the same day that Barge left Belvidere, a fugitive from justice, his brother, Herbert, entered the state prison at Lincoln to serve time on a charge of defalcation from the Farmers State bank at Hoskins. Herbert Barge was cashier of the Hoskins bank. "I found the Farmers State bank at Belvidere was another one-man bank, somewhat similar to the Blair bank which failed recently," Hart said. "I believe bad paper will amount to $20,000 and in addition there a is $2,000 missing from a school fund which Barge held." A number of bankers interested in the Belvidere bank met at Hebron. the county seat, Saturday night and requested that when a receivership suit is started that W. O. Galbraith, former Hebron banker, be appointed cashier.