Security State Bank - Broken Bow, NE

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: *
Location: Broken Bow, Nebraska (41.402, -99.639)

Metadata

Model: gpt-5-mini
Short Digest: 514dfaf1

Response Measures

None

Description

Article (1932-02-04) describes the Farmers State Bank suspension and states that the Security State Bank of Broken Bow was reorganiz[ed] within about five weeks using the same reorganization method. No run is mentioned for Security State Bank; the text implies a suspension/reorganization and successful resumption. Cause attributed to local agricultural/economic conditions (anticipation of large certificate redemptions because of low prices and poor crop). Exact suspension/reopening dates are not given.

Events (2)

1. * Reopening

Newspaper Excerpt: By use used in the reorganization was of the Security State Bank case mentioned above, the depositors will not lose ... the sooner the opened. ... Security State Bank of Broken Bow was reorganizwithin about five weeks. By use used in the reorganization was of the Security State Bank case mentioned above, the depositors will not lose The details for the reorganization been worked out but have not fully these are the main features: ... the reorganized bank ... be given charter permitting business and Sargent will to transact bank. The sooner each again have signs for these depositor bank will be tions. the sooner the opened. As stated before, this method of reorganization, the depositors and those lose money the bank unduly their loans pressed pay only themselves not the depositors. Using the same plan, the Security State Bank of Broken Bow was reorganizwithin about five weeks. By use used in the reorganization was of the Security State Bank case mentioned above, the depositors will not lose The details for the reorganization been worked out but have not fully these are the main features: ... These main features having begn reorganized bank worked out, will be given charter permitting business and Sargent will to transact bank. The sooner each again have signs for these depositor bank will be tions. the sooner the opened.
Source: newspapers

2. * Suspension

Cause: Local Shock
Cause Details: Anticipation of large certificate redemptions and inability to meet payments due to low hog and cattle prices and a short crop; economic conditions prompted reorganization/suspension.
Newspaper Excerpt: the Security State Bank of Broken Bow was reorganiz[ed] within about five weeks.
Source: newspapers

Newspaper Articles (1)

1. February 4, 1932 The Sargent Leader Sargent, NE

Article from The Sargent Leader, February 4, 1932

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Article Text

FARMERS STATE BANK SUSPENDS BUSINESS FOR Last Monday morning the FarState Bank did not re-open doors for business. On the door was notice that read bank has suspended business and now in the hands the department of trade and commerce, state of Nebraska, for the purpose of Just afternoon Monday Merl H. Garrison and E. Horner, state bank examiners, arrived here and gan the work of invoicing the banks property of all kinds the process re-organization. Wednesday forenoon George Whalen, the state department trade and commerce reorganization man arrived in the city for the purpose of organizing the bank along the same lines that has been done in the case of many other Nebraska banks that have been voluntarily placed in the hands of this department. This all means that the Farmers State bank of Sargent will not into the hands of receiver. means that the people who owe the bank money at this time will not forced to sell off everything in order to pay their notes which would be great calamity for very many when values so low. The reason for taking this on the part of the bank's board directors because they foresaw that there was possibility of ber of large certificates of deposit being presented for payment they come due. Knowing that present prices of hogs and cattle, and the short of last summer very crop would not bring any ways near ough money for people to pay their loans, in large enough amounts pay these certificates of deposit, the officers knew that they should keep the doors of the bank open til that time would be only came, matter of time that would be forced into the hands of ceiver, the forced to their people pay loans and depositors would many suffer considerable loss because that method of liquidating. Furthermore there would be the of Sargent being without possibility bank for along period of time, possibly year or even two three years. Using the system or plan of that has been found organization successful many places, the city should not be without bank for period than three months. longer thought will take However, much less time than that. One of the officials thinks that should not longer than month and take one that such reorganization has says been effected within ten days. Us. ing the same plan, the Security State Bank of Broken Bow was reorganizwithin about five weeks. the of the same method By use used in the reorganization was of the Security State Bank case mentioned above, the depositors will not lose The details for the reorganization been worked out but have not fully these are the main features: The present capital stock and to be used take up part serve of the bank's paper (loans) that are "frozen assets," that now known as that well secured paper made but because of the time in values since the great shrinkage considered first class then, not now. The balance these frozen care of by that will "depositors' which formed by using certain that purpose. Next the stock holders will scribe enough money for new capital stock. Another thing, all depositors will by their own action sign an limiting the amount they greement withdraw certain per may month. most likely one per cent. These main features having begn reorganized bank worked out, will be given charter permitting business and Sargent will to transact bank. The sooner each again have signs for these depositor bank will be tions. the sooner the opened. As stated before, this method of reorganization, the depositors and those lose money the bank unduly their loans pressed pay only themselves not the depositors. We mentioned of the will be placed tion deposits for the "depositors take of the helping depositors however, for lose this money, credit that back bank bottom column.)