12867. Brunswick State Bank (Brunswick, NE)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
February 1, 1928*
Location
Brunswick, Nebraska (42.338, -97.971)

Metadata

Model
gpt-5-mini
Short Digest
e2693c5a

Response Measures

Full suspension, Books examined

Other: State Guaranty Fund Commission took charge; bank closed and put in hands of state examiners/board.

Description

Multiple contemporaneous newspaper reports (Feb 9-11, 1928) describe frightened depositors withdrawing funds (nearly $30,000 paid out), a run prompted by gossip/rumors (and by recent closings of nearby Plainview banks), after which the bank closed and was taken into charge by the state guaranty/examining authority. No reopening is reported; state took charge/receiver assigned.

Events (3)

1. February 1, 1928* Receivership
Newspaper Excerpt
The Brunswick State bank was taken over Friday of last week by the State Guaranty Fund Commission. ... sent for the state bank examiner to come and take charge. The arrived Saturday and began checking over the affairs of the bank. and place it in the hands of the state banking board. , cause: other
Source
newspapers
2. February 1, 1928* Run
Cause
Rumor Or Misinformation
Cause Details
Unreliable gossip and wild stories that the State Guaranty Fund was depleted, combined with talk following recent Plainview bank closings, prompted frightened depositors to withdraw funds.
Measures
Paid out nearly $30,000 in cash to meet withdrawal demands before closing.
Newspaper Excerpt
Consistent and persistent withdrawal of deposits forced Barbour, president of the Brunswick state bank, to close its doors
Source
newspapers
3. February 1, 1928* Suspension
Cause
Rumor Or Misinformation
Cause Details
Closure followed the run driven by rumors about the guaranty fund and fear after nearby bank failures; state banking board took charge after closure.
Newspaper Excerpt
The Brunswick State Bank ... was closed Friday afternoon following a run on it by frightened depositors ... sent for the state bank examiner to come and take charge.
Source
newspapers

Newspaper Articles (3)

Article from The Oakdale Sentinel, February 9, 1928

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Article Text

BRUNSWICK STATE BANK CLOSED The Brunswick State Bank of Brune wick was closed Friday afternoon following a run on it by frightened depositors After paying out $30, in cash to depositors L. C. Barbour, president of the bank, closed the do nd sent for the state bank examine 10 come and take charge. The arrived S torday and began checking over the affairs of the bank. This is an example of what unreliable gossip and a bunch of "knockers" can do. The Brunswick State Bank has always been operated along safe and connarvative lines and probably was in ad good condition as any small town bank in the state. Credulous depositors willing to believe the wild stories that *** being circulated that the Guarantee Fund is depleted and no more money would be paid out of it, did not take the trouble to investigate the matter. After the state took over the bank at Plainview the week before they were ready believe the worst and proceedto force the closing of a strong bank. Such a pernicious editorial as was in the Neligh News two or three weeks ago can do great harm at a time like this and it is possible its effects can be traced to some extent in the run on the Brunswick bank. JANUARY WEATHER January 1928 was mild, dry stormless month with a mean temperature of 24.1 degrees, 5.4 degrees above normal. The highest temperature at Oakdale for the month was 62 on the 10th, one of the six highest records for January in 41 years. The lowest temperature was 17 degrees below zero on the 1st. Total percipitation for the month was .07 of an inch, 43 of an inch below normal; thus it was one of the four driest Januarys on rec rd. Last year the mean temperature for January was 21 8, highest 56 and lowest -15. Percipitation was 04 of an inch. George Thornberg who has been quite ill the past ten days is reported as some better


Article from The Orchard News, February 10, 1928

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Article Text

Judgment in favor of the plaintiff ordered reduced. McTee vs. McTee. Decree of divorce as prayed. Pinney VS. Stott, et al. Action ordered revived in name of heirs of Minerva Soesby. Connecticut General Life Ins. Co vs. Clemens et al. Sale confirmed and deed ordered. Moore VS. Zegers et al. Decree of foreclosure as prayed. Soulliere VE. McCarville et al. Finding generally in favor of Henry MeCarville. Norfolk Bldg. & Loan Ass'n. VS. Burham et al. Sale confirmed and deed ordered. Lee vs. Lee. Demurrer overruled. Meserve et al vs. The Oakdale bank ct al. Findings as per signed journal entry. The Antelope County Bank vs. Schwarting et al. Motion for new trial overruled. Miller V.S. McDonnell et al. Findings as per signed jounral entry. Penn V3 Neligh Lumber, Grain & Coal Co., Defendant given 20 days in which to plead to amended petition. Randall et al vs. Forsyth et al. Sale confirmed and deed ordered. Shoarer vs. Elliott et al. Sale confirmed Referee ordered to make deed to purchaser. Henderson VS. Bickford et al. Sale confirmed and deed ordered. Grubbs VS. Grubbs et al. Objections to confirmation of sale sustained. Sale ordered vacated and set aside. Referee ordered to re-advertise premises. Wilson VS. Barton et al. Decree quieting title as prayed against defendant Maggie Hicks. Mummert vs. Ewing State Bank. Foreclosure of tax lien as prayed. Occidental Bldg. & Loan VS. Mapes et al. Defendants defaulted. Lewis vs. Wagner et al Defendants defaulted, finding for Plaintiff. The State Bank of Clearwater V3. VanVleck. Defts. defaulted. Finding for plaintiff The State Bank of Clearwater vsl Taylor et al. Decree of foreclosure as prayed. Question of priority of liens continued to a future date. Central Trust and Savings Bank vs. Fremont Construction Co. Decree of foreclosure as prayed. Citizens State Bank of Orchard vs. Shrike et al. Foreclosure as prayed. Security State Bank of Plainview Tessier et al. Defendants defaulted. Judgment for Plaintiff. Norfolk Bldg & Loan Ass'n. vs. Housh CC al. Findings as per signed journal entry this day entered. Peters Trust Company VS. Cox et al. Decree of foreclosure as prayed. Springer vs. Neligh Action dismissed by Plaintiff at Plaintiff's ex- pense Dutcher VS. Cox et al. Decree of foreclosure as prayed. Wright vs. Wilson. Garnishee ordered to pay into court for the benefit of Plaintiff the amount admitted to be due in his answer. Plaintiff upon receipt of money authorized to release and discharge indebtedness. Out of town attorneys present: Donald Mapes, Norfolk, Nebraska; J. C. Alexander, Orchard, Nebraska; J. W. Blezek, Plainview, Nebraska; A. R. Olson, Wisner, Nebraska; W A Meserve, Creighton, Nebraska. LOCAL ITEMS Mrs. F. S. Hudson was a Sioux City passenger last week. John Terrill is applying a coat of paint to the interior of the J. W. Harmon drug store. Howard Miller, from Wyoming, was here the first of the week visiting his brother, Glen and family. Fred Teide and Field Carmichael were Lincoln business visitors Saturday and Sunday. Mrs. A. Browning is in St. Joseph, Missouri this week where she is buying her millinery for the spring and summer trade. John Sollman and wife were up from Pierce Sunday visiting his parents, Mr. and Mrs. Wm. Sollman. They were accompanied home by Mr. and Mrs. Nelson Jacobson, of Ewing, who will visit there for a week. Mrs. Jacobson will be remembered as Mary Murphy. The Brunswick State bank was taken over Friday of last week by the State Guaranty Fund Commission. It is reported that the reason for closing the bank was due to a heavy run on it and it will practically pay out, leaving possibly nothing to the Guaranty Fund to make up. With this bank going down, together with the two State banks at Plainview, Orchard is now the only town between Page and Osmond having a state bank in operation and there is only one National bank and that is at Plainview.


Article from Norfolk Daily News, February 11, 1928

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Article Text

Run on Brunswick Bank is Blamed Neligh, Neb., Feb. to The News: Consistent and persistent withdrawal of deposits forced Barbour, president of the Brunswick state bank, to close its doors and place it in the hands of the state banking board. The re cent closing of two banks at Plain view and some talk on the streets of Brunswick caused depositors tc become Nearly $30,000 was paid out by the Institution meet the de mands until it became apparent the run was to continue and efforts to keep going would be futile. For long time had been known that the bank was somewhat cramped slow paper, but in the opinion other bankers and of the bank ing board it was sclvent and if giv chance would be able to clear up and continue business on sound basis: It was not, however, condition to stand consistent run.