13009. Farmers & Merchants Bank (Elgin, NE)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
March 1, 1929
Location
Elgin, Nebraska (41.983, -98.084)

Metadata

Model
gpt-5-mini
Short Digest
c2cdfa0b

Response Measures

Capital injected, Full suspension, Books examined

Other: Reorganization plan included depositor forbearance (limited monthly cash withdrawals and taking 20% in securities). State banking department took charge pending reorganization.

Description

Multiple March 1929 articles report a heavy run on the Farmers & Merchants National Bank at Elgin, Neb., the state banking department taking charge (suspension/temporary takeover), and depositors/stockholders arranging a reorganization with plans to reopen. I corrected the bank name to include 'National' as shown in sources. Dates derived from publication dates (takeover described as 'yesterday' in 1929-03-02 article).

Events (3)
1. March 1, 1929 Run
Cause
Bank Specific Adverse Info
Cause Details
Shrinkage in value of securities and weakening cash position induced depositors to withdraw funds (articles describe falling security values and resulting 'easiness' that induced withdrawals).
Measures
Depositors and stockholders agreed to limit cash withdrawals (not to withdraw more than a set percent monthly) and to take part of deposits in securities as part of a reorganization plan.
Newspaper Excerpt
There was a run on this bank for a time, but It was believed that enough of the depositors would stay with the bank to enable It to pull through.
Source
newspapers
2. March 1, 1929 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Following heavy withdrawals and a low cash-on-hand position (after shrinkage in securities), the state banking department took charge pending reorganization.
Newspaper Excerpt
The Farmers and Merchants National bank here was taken over yesterday by the state banking department pending a possible reorganization
Source
newspapers
3. March 8, 1929 Reopening
Newspaper Excerpt
Plans were set foot Saturday night which in all probability will result in the reopening on a sound basis of the Farmers Merchants bank Elgin ... The present capital stock, surplus be wiped out ... The depositors on their part agree not to withdraw more than per cent in cash ... there is every prospect that the affair ... will be but a slight ripple on the financial surface . . . and the bank would resume business on a perfectly sound basis.
Source
newspapers

Newspaper Articles (4)
1. March 2, 1929 Norfolk Daily News Norfolk, NE
Article from Norfolk Daily News, March 2, 1929

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Article Text

Bank at Elgin Is Taken Over Elgin, Neb., March 2-Special to The News: The Farmers and Merchants National bank here was taken over yesterday by the state banking department pending a possible reorganization or the turning of its affairs over to the state guaranty fund There was a run on this bank for a time, but It was believed that enough of the depositors would stay with the bank to enable It to pull through. It is thought here that the bank will about pay out one hundred cents on the dollar.

2. March 7, 1929 The Tilden Citizen Tilden, NE
Article from The Tilden Citizen, March 7, 1929

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Article Text

SECOND STATE BANK AT ELGIN CLOSES ITS DOORS The Farmers & Merchants Bank of Elgin closed its doors last Friday following a heavy run by depositors. The state banking department were notified and took charge pending a possible reorganization. The bank will not be turned over to the commission until every possible effort made to effect a reorganization. It is believed the assets would be sufficient to pay out practically one hundred cents on the dollar. The stockholders an many of the depositors have indicated their willingness to bear their share of the responsibility of a reorganization, and the outlook now is that a stronger bank will emerge from the present embarrassing situation.

3. March 8, 1929 The Humphrey Democrat Humphrey, NE
Article from The Humphrey Democrat, March 8, 1929

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Article Text

Punch Boards Must Move Village Dads Decide That Punch Boards Must Not Be Displayed Many of Been Circulated About Town. Require Deposit For Water. Considerable complaint has come to the village board during the past few months in regard punch boards about town. Some time ago the board requested certain business places which had been operating punch boards to discontinue their use and the proprie- our tors of these places disposed of what they had on hand and we understand have since discontinued their use. However, in recent weeks there has appeared whole flock of punch boards and various other chance taking apparatus about town, many of these being circulated about town and residents being solicited to punch the boards or take chances on some article. At their meeting Monday the board instructed the village marshal to take the necessary steps put an end to this evil and if he could not get the necessary results to turn the matter over to the county authorities for their attention. Under the state law it is illegal to operate punch board or even sell chances on articles and the attorney general of the state has decreed that all such practices must stop. The village dads are giving the warning that if the practice is not stopped here more drastic action will follow Bank Being Reorganized At their meeting the board also The Farmers Merchants bank took up the matter of water rents of Elgin. is being reorganized by the and since in the there have been past stockholders and directors. since number of instances where they closed its doors last Friday when have lost water accounts because run was renters have moved away and failed in that the country feel that to pay their water bills, they amended the run the bank was the ordinance in regard to water uswarranted. SQ that hereafter folks who rent residences in Humphrey will be Elvira student quired to deposit with the village the Wayne Normal, spent the latter treasurer the sum $5 to be applied last week of their water case of failpart Mr. and Mrs. Jos. Mueting. ure to pay or to be returned them parents, their accounts are when and Tony Frey drove they Crofton the latter of last part week and delivered truck for the M. Dober garage. and Mrs. H. Leenerts Omaha visitors the first of the week.

4. March 8, 1929 Neligh Leader Neligh, NE
Article from Neligh Leader, March 8, 1929

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Article Text

TO REORGANIZE BANK Depositors ing Authorities Hold Conference. Plans were set foot Saturday night which all probability will result in the reopening sound basis of the Farmers Merchants bank Elgin, which forced close its doors last Previclosing there had exactly on the but for some time there deposits and at last the cash on hand became low in charge decided close and turn its affairs to the state board. The bank, like all other institutions had suffered somewhat by the shrinkage value of securities which had been supposed good when taken but proved best and this caused the easiness which induced depositors funds. Investigation soon convinced both the banking department and the stockholders of the bank as well the depositors that the proper thing do to reorganize and put the bank on sound basis. Saturday evening conference was held with most of the present, resentatives of the state banking board depositors present. After discussing several propositions the following plan was decided on and there every reason to believe will go through: The present capital stock, surplus be wiped out, these amounting to book value of like amount of what deemed either poor or slow paper to be off assets of the bank. The stockholders then subscribe and pay in of new capital, which be the capital stock the reorganized bank. The depositors on their part agree not to withdraw more than per cent in cash of their present deposit in any one month ing the next twelve months, after that time to be subject to urestricted check. In addition the depositors to take 20 per cent of their predeposits in securities now the the bank. While the representatives of the state banking department present the conference did not officially approve this plan they indicated they would and that depositors and stockholders came through with their share would be only program short until the bank would resume business and be perfectly sound basis. Both depositors and stockholders of the bank have taken hold the situation with the proper spirit and there is every prospect that the affair of last week will slight ripple on the financial surface, which the Leader sincerely hopes may the the case.