Nemaha Valley Bank - Brownville, NE

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: *
Location: Brownville, Nebraska (40.398, -95.658)

Metadata

Model: gpt-5-mini
Short Digest: e3b97022

Response Measures

Full suspension

Other: Court machinery used to enforce redemption of currency; sheriff levied and sold small assets.

Description

Contemporary accounts describe the cashier anticipating a run (locking the front door and slipping out the back), followed by court action to enforce redemption of currency, levies and sale of small assets. The institution was effectively insolvent and apparently not legally incorporated; narrative describes a run leading to failure/closure. Exact dates not given in these retrospective articles.

Events (3)

1. * Other

Newspaper Excerpt: The machinery of the courts was put in motion to enforce the redemption of the currency... the sheriff reports having levied upon and sold a safe, a table, a stove and a letter press, which altogether brought $63.
Source: newspapers

2. * Receivership

Newspaper Excerpt: The machinery of the courts was put in motion to enforce the redemption of the currency... The last plea which the absent president ventured to make was, that the so called Nemaha Valley bank could not be sued, since in reality it had not been legally incorporated at all.
Source: newspapers

3. * Run

Cause: Bank Specific Adverse Info
Cause Details: Bank was essentially insolvent: large amounts of possibly worthless stock notes, discounted paper of dubious quality, and very little cash; public loss of confidence led to anticipated run
Measures: Cashier locked front door and absented himself; no successful liquidity measures described
Newspaper Excerpt: the cashier, seeing reason to anticipate a run, had thoughtfully locked the front door and slipped out the back one
Source: newspapers

Newspaper Articles (2)

1. November 10, 1887 The Austin Weekly Statesman Austin, TX

Article from The Austin Weekly Statesman, November 10, 1887

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Article Text

DEATH OF A WILDCAT. A Typical Case of a Bank Failure Before the War. As a typical case of the abjectest failure the Nemaha Valley tank of Brownville may be taken. After the time when the cashier, seeing reason to anticipate a run, had thoughtfully locked the front door and slipped out the back one, the editor of The Brownville Advertiser obtained leave to examine the books, and announced in the next issue of his paper that everything was sound, only time was needed. According to his account there was $33,000 of the Nemaha Valley currency in circulation. The assets of the concern consisted of "stock notes, $73,000; discounted paper at thirty and sixty days, over $5,000; cash, over $1,000." It surely required a western journalist, characteristically impressed with the need of maintaining public confidence, to state that such a condition of things indicated soundness. Suppose, for instance, that it should transpire that the "stock notes" were virtually worthless. Such a thing was not uncommon, as the stockholders of the old state banks used often to "pay up" their capital by giving their personal notes, and then when occasion offered they could take measures to make these notes entirely worthless. Suppose, further, that the discounted paper had been received from those who were not reliable, at least in a financial crisis. Suppose also that the alleged "cash" consisted of the bills of other banks as worthless as the one under investigation, and suppose, finally, that the books had been "fixed," and that in reality much more than $33,000 of currency had been issued. Such was very nearly the condition of the Nemaha Valley bank. The machinery of the courts was put in motion to enforce the redemption of the currency, and nearly $1,000 of the old bills are stored among the records of the district court. Property was levied upon that usually turned' out to belong to some one else, and finally the sheriff reports having levied upon and sold a safe, a table, a stove and a letter press, which altogether brought $63. The last plea which the absent president ventured to make was, that the SQ called "Nemaha Valley bank" could not be sued, since in reality it had not been legally incorporated at all.-Overland Monthly.

2. January 11, 1888 Wichita Eagle Wichita, KS

Article from Wichita Eagle, January 11, 1888

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Article Text

# DEATH OF A WILDCAT. A Typical Case of a Bank Failure Before the War. As a typical case of the abjectest failure the Nemaba Valley bank of Brownville may be taken. After the time when the cashier, seeing reason to anticipate a run, had thought fully locked the front door and slipped out the back one, the editor of The Brownville Advertiser obtained leave to examine the books, and announced in the next issue of his paper that everything was sound, only time was needed. According to his account thera was $33,000 of the Nemaha Valley currenc7 in circulation. The assets of the concern consisted of "stock notes, $73,000; discounted paper at thirty and sixty days, over $5,000; cash, over $1,000." It surely required a western journalist, characteristically impressed with the need of maintaining public confidence, to state that such a condition of things indicated soundness. Suppose, for instance, that it should transpire that the "stock notes" were virtually worthless. Such a thing was not uncommon, as the stockholders of the old state banks used often to "pay up" their capital by giving their personal notes, and then when occasion offered they could take measures to make these notes entirely worthless. Suppose, further, that the discounted paper had been received from those who were not reliable, at least in a financial crisis. Suppose also that the alleged "cash" consisted of the bills of other banks as worthless as the one under investigation, and suppose, finally, that the books had been "fixed," and that in reality much more than $33,000 of currency had been issued. Such was very nearly the condition of the Nemaha Valley bank. The machinery of the courts was put in motion to enforce the redemption of the currency, and nearly $1,000 of the old bills are stored among the records of the district court. Property was levied upon that usually turned out to belong to some one else, and finally the sheriff reports having levied upon and sold a safe, a table, a stove and a letter press, which altogether brought $63. The last plea which the absent president ventured to make was, that the so called "Nemaha Valley bank" could not be sued, since in reality it had not been iegally incorporated at all. -Overland Monthly.