Fordyce State Bank - Fordyce, NE

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: October 1, 1931
Location: Fordyce, Nebraska (42.699, -97.362)

Metadata

Model: gpt-5-mini
Short Digest: 4f376f1b

Response Measures

Full suspension, Books examined

Other: Turned over to state banking examiner and receiver appointed; stockholders later pursued for double liability.

Description

Newspapers report steady/heavy withdrawals following the collapse of nearby Cedar County State Bank; directors closed the Fordyce State Bank Oct 1, 1931 and it was turned over to state examiners/receiver. Cause linked to runs prompted by other local bank failures and poor local conditions (crop failure, depression).

Events (3)

1. October 1, 1931 Receivership

Newspaper Excerpt: turned over to the state ... examiner in charge ... pending the arrival the receiver. Assistant Receiver Barbour was placed in charge (reported in contemporaneous articles).
Source: newspapers

2. October 1, 1931 Run

Cause: Local Banks
Cause Details: Steady/heavy withdrawals in days prior to closing, fueled by collapse of Cedar County State Bank and general local panic/poor crop conditions.
Measures: Directors decided to close the bank to protect depositors; notified state department and examiner called in.
Newspaper Excerpt: there had been quite heavy run for several days and that the board deemed close in order to protect the depositors.
Source: newspapers

3. October 1, 1931 Suspension

Cause: Local Banks
Cause Details: Board closed bank after continued withdrawals and panic following nearby bank failures and poor local conditions; state examiner and receiver involved indicating suspension leading to closure/receivership.
Newspaper Excerpt: The Fordyce State Bank closdoors Monday night by order of the board of directors. ... The bank has been turned over to the state of trade and for examiner in charge checking the books pending the arrival the receiver.
Source: newspapers

Newspaper Articles (5)

1. October 1, 1931 The Hartington Herald Hartington, NE

Article from The Hartington Herald, October 1, 1931

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Article Text

RECEIVER'S Closed Order of Board of Directors in Order To Protect Depositors Following the collapse of Cedar County State Bank last week, the Fordyce State Bank closdoors Monday night by order of the board of directors. In telephone conversation with The Herald Tuesday morning, director of the bank stated that there had been quite heavy run for several days and that the board deemed close in order to protect the depositors. The bank has been turned over to the state of trade and for examiner in charge checking the books pending the arrival the receiver. Officers the failed bank Leise, president; Frank mers, vice-president, and cashier. The directors Leise and Frank Lamand the following are the stockholders: Lammers, Lammers, Leise, Thoene, John Tigges, Frank KeiAug. Mary Rolfes, Hilda Filips and John Jansen, The last report of the Fordyce bank department of trade June that that date amounting loans and discounts aggre. gated that its furniture and fixtures valued and that the capital stock and surplus fund totaled General economic depression, slow collections and of confidence to other bank failures of the collapse of the For State officials, who express hope that depositors cover large percentage of their money in the of liquidaprocess

2. October 1, 1931 The Wynot Tribune Wynot, NE

Article from The Wynot Tribune, October 1, 1931

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Article Text

MORE BANK GRIEF CEDAR COUNTY Cedar County State and the Fordyce State Forced to Close Doors. Additional grief in bank circles has been experienced in Cedar county during the past week, with the consequent closing of the Cedar County State at Hartington and the Fordyce State at Fordyce. The Cedar County State failed to open for business last Friday morning. Following meeting of the directors Thursday night, it was decided to be the best policy to close the bank and 20 into liquidation. Friday morning was posted on the door telling of the decision of the directors. The state department of banking was notified and after an auditor had checked over the accounts of the bank, Assistant Receiver Barbour was placed in charge. The Cedar County State bank was organized in 1915 being capitalized at $35,000. The last statement the 30th of June showed deposits of $219, Lammers was the president and C. N. Hertert cashier. Continued and almost steady withdrawals of funds from the bank was the immediate cause of the closing. This bank was at one time considered one of the strongest financial institutions of this territory with an abundance of backing. but the deflation period made serious changes in these things. The Fordyce State bank, after meeting of the directors Monday evening, decided that the best policy for all concerned was to close the institution and this course was followed. the bank failing to open for business on Tuesday morning. This bank was capitalized at $25,000. John A. Thoene "was president and A. Leise cashier. This bank, in its best days had deposits aggregating nearly half million dollars. These had dropped to around when the last statement was published and we understand that steady withdrawals had been made since then, this being the principal item determining the directors to close the bank. General conditions and the practical failure of this year's crop in this vicinity helped to make the banking business precarious and unhealthy and are part of the cause of these and other bank closings. The affairs of, both the Cedar County State and the Fordyce bank are said to have been in good order. fault attaching to any officer in charge of the banks. They sinmply the victims of the unhealthy conditions with the general tendency of unrest and suspicion that difficult for even the have made strongest of banks to do business.

3. October 12, 1931 The Daily Worker New York, Chicago, NY

Article from The Daily Worker, October 12, 1931

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Article Text

BANKS CONTINUE TO CLOSE DOWN OMAHA, Neb. (By Mail).-The Ravenna State Bank and the Fordyce State Bank of this state suspended business October 1 according to the state banking examiner. The Ravenna State Bank deposits totalled $190,000 and the Fordyce Bank deposits were placed at $300,000. The Cedar County State Bank at Hartington was closed with deposits of $195,000. The People's State Bank at Grand Island turned over its affairs to the state commerce department because of its condition. Deposits decreased in six years from $600,000 to $230,000. A worker correspondent of the Daily Worker writes: "People in that part of the state are panic-stricken and I have a letter to that effect (from a republican) right here before me. Hartington, Neb. has only one bank now where it had three regular banks and a savings bank in October, 1928. Confidence in banks is certainly sinking fast all over the state."

4. June 2, 1932 The Hartington Herald Hartington, NE

Article from The Hartington Herald, June 2, 1932

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Article Text

IS CLOSED YEARS AFTER 49 OF SERVICE First National Forced To Suspend on Account of a Depleted Reserve Last Bank Is First National Once Had Deposits People Are Shocked by Closing The First National Bank Hartington last Thursday night being for half century lackyear. depleted cash and withdrawal given officers the for pension The bank might have operate for while longer, stated but, in order protect their depositors, the board of directors decided to Failure of the local bank doubt hastened, if not precipitated. the closing the First of Crofton only two days before. There quite heavy the bank the previous People Were Stunned People have accustomed do business with the First National Bank of Hartington for many years stunned when they down town Friday morning and found notice door that was closed. The failure this bank the which Hartington and county without facilities. years had strong banks. The Hartington National in 1928, Cedar County 1931 and the First National in the hands Other Cedar county banks have failed during the past Farmers State and the Fordyce State. The this city Organized in 1883 Organized 1883, was one the oldest and strongest banks northeast Nebraska and at deposits almost In June, 1920 peak year, deposits aggregated $950,000. When bank closed deposits had dwindled to In the First National and the Farmers State Bank. which located the present Hartington Building Loan building, merged occupied building on the corner Washington avenue and Fifth street. Officers the bank when closed its doors were Louis Goetz, president; Beste, vice-presiCarl cashier, and Lloyd Lynde Alphonse Lamassistant cashiers. Louis Goetz. Spork, John Hirschman, Carl Pedersen. Geo. Beste and Lloyd Lynde and the following owned stock the First National Bank: Amundson, Theo. Beste estate, Beste, Cameron, Dendinger, Dorsey, Mrs. Dan Felber, George, Louis Goetz, Aug Gohman, Mrs. Sarah Gordon, John Hochstein Mrs. Ethel Kerr estate, Krause, Lammers, K. Lammers, Lammers, McKenzie, Lloyd Lynde, Mrs. Ella Mason, Mrs. Hazel Olsen, Oswald, LuR. Parks, Pedersen, Peters, Ready, Mrs. Ready, Mrs. Robinson, Helen Scoville, Scoville, Spork, Agatha Uhing estate and Mildred W. Haggart. Lyon, bank examiner, arrived Friday make the inventory and now charge. Officers state that the percentof dividends which the institution will pay will depend on this year's and the prices which brings. Three former ficers of the First National and prominent its affairs for many Robinson, R. G. Mason and Weston.

5. July 28, 1932 Cedar County News Hartington, NE

Article from Cedar County News, July 28, 1932

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Article Text

STOCKHOLDERS FORDYCE SEEKS TO COMPEL THEM TO DOUBLE LIABILITY second suit in which E. H. Luikart, state bank receiver, attempting to compel payment defunct bank stockholders' constitutional double liability, was filed in district court last week, involving the Fordyce State bank. similar suit filed two weeks ago the case of the Wynot State Stockholders of the Fordyce bank who are charged not having paid their liability Frank Lammers, Leise, Lammers, H. Lammers, Anna Gohman, John Jansen, Frank Keiter, Hilda Lammers Fillips and Charles Tigges as executor of the John Tigges estate. Mary Rolfes and Thoene settled their constitutional liability Frank Lammers, Tigges, deceased, LamLeise and John Janhave applied their dividpart payment. total sum of from the stockholders.