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Exchange Closes Directors Met Monday Evening And Decided Institution State Department Gibbon people were mildly surprised on coming downtown Tuesday morning to find the following notice pasted on the front door of the bank: meeting of the Board of Directors of the Exchange Bank, Gibbon, Nebraska, held Monday evening, December 30. 1929, at decided to place this bank in the hands of the State Banking Department for the best interests of the The closing of the bank was much the result of "frozen paper," as of lack of confidence on the part the public, which played important part in thousands of bank failures. there has never been "run" on the bank, for the past year there been steady and everincreasing withdrawals of deposits, the total amount shrinking from some to about inside of twelve months, with the prospect of greater withdrawals within next few months. Under the isting conditions, it has been possible for the bank to loan any money and still keep sufficient funds on hand to take care of withdrawals, there was no opportunity to make profit. The officials of the bank have been proceeding very cautiously during the recent serious, months, and instead of continuing until closed by the state authorities, they decided Monday evening at meeting of the board of directors that thing would to close. Without any question, the collapse of the state guaranty fund is tirely to blame for the closing of the Exchange Bank as well as many others. Even people who had plenty confidence the officers, that security for their money they would take no chances and many depositors have drawn out large amounts which they have disposed of elsewhere, and with the short has not been possible to get deposits to overcome the withdrawals Continued failures of banks all over the country have added distrust, with serious results. The Reporter has every confidence in the Exchange Bank officials and in believes that will be found that no trace of dishonesty will be found in their conduct of the affairs, and that their action in closing was to safeguard the interests of the depositors just as far possible. Until the state officials have gone the books and investigated the securities, will be impossible secure any definite information, believe that the depositors will not lose any great amount. meeting of the depositors was hurridly called and was held at the Woodmen hall eleven o'clock Tuesday morning. About sixty were present, chairman and Ashburn as secretary. motion prevailed that W. Lindsay, president of the Gibbon Business organization be appointed chairman of committee of five to sent the depositors in the settlement of the hank's affairs, and to endeavor to re-organization of the bank or to get another bank started soon possible, he to name the other four. Mr. Lindsay named as the other members of the committee: N. year Ashburn, Leas, Marshall Ross and Johnson. Acting "under instructions from Clarence Bliss, secretary of the Department of Trade and Commerce, Examiner Castle took charge, of the bank upon his arrival Tuestotal day evening. Mr. Bliss stated that an of the bank probable. Examiner Castle has called meetfor ing of the depositors for Saturday evening of at the opera house. Secretary Bliss will be presand will speak. Mr. Castle has secured help to go into the affairs of the bank and announces that more or less complete statement will the given at that time. At this meeting permanent committee will be chosen led to act with the authorities and this committee will be official and will take place of the committee named Tuesday. Every depositor should be present at this meeting. The Exchange Bank was one of the more oldest financial institutions this (continued on
