Citizens State Bank - Holdrege, NE

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: February 1, 1923*
Location: Holdrege, Nebraska (40.440, -99.370)

Metadata

Model: gpt-5-mini
Short Digest: 771eeea5

Response Measures

None

Description

Article reports the Citizens State Bank of Holdrege was broken (failed) and references guaranty fund payments and receiverships. No explicit description of a depositor run is given; the failure appears driven by legal/government action and ensuing receivership rather than a panic run.

Events (2)

1. February 1, 1923* Receivership

Newspaper Excerpt: the guaranty fund is now compelled to pay $400,000 or more to the depositors of the Citizens bank ... expensive receiverships are wasting banks' property (discussion of receivership in connection with the failed bank).
Source: newspapers

2. February 1, 1923* Suspension

Cause: Government Action
Cause Details: Closure/failure amid dispute over Attorney General Spillman's advice and refusal to pay a draft on the guaranty fund; legal action impeded a solution and led to bank breaking/closure
Newspaper Excerpt: last week the Citizens State Bank of Holdrege was broken, notwithstanding numerous warnings
Source: newspapers

Newspaper Articles (1)

1. February 14, 1923 The Omaha Morning Bee Omaha, NE

Article from The Omaha Morning Bee, February 14, 1923

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Article Text

Spillman Defied Law Is Charge of Fremont Banker Dan V. Stephens Asserts At. torney General "Usurped Court Authority" in Holdrege Bank Failure. , Dan V. Stephens, Fremont banker and a member of the state bankers' legislative committee, charged in a statement issued Monday night that Attorney General Spillman has "usurped the authority of the court" in his stand on the Citizens State Bank of Holdrege affair. "He (the attorney general) defled the court in his advice to the bank. ing department not to pay the draft on the guaranty fund which would have saved the Citizens bank," the statement says. "He acted as judge, jury and prosecuting attorney in defiance of law and order and is now in contempt of the court issuing the order." State Machine Competent. Mr. Stephens declares the controversy over the failure and on the merits of the Citizens bank's claim on the guaranty \ fund, has been waged by Attorney General Spillman and Clarence A. Davis, former attor. ney general and a vice president of the failed bank, "proves conclusively the incompetency of the state political machine to administer a highly technical and sensitive business such as the banking business." "This is proven by the fact that 54 banks have failed right under the department's nose, and that last week the Citizens State Bank of Holdrege was broken, notwithstanding numerous warnings that fussing about questions of the law on which all kinds of legal opinions were available would do that very thing," continues Mr, Stephens. Banks Exploited. Interviewed by The Omaha Bee yes terday, Mr. Stephens said he was not "taking sides" in the matter. He continued: "Mr. Spillman avers he is not concerned in a practical solution of the Holdrege case, but only in its legality. He merely proves the bankers' con. tention that the banks are being exploited while politicians and lawyera fuss over the law. The fact that the guaranty fund is now compelled to pay $400,000 or more to the depositors of the Citizens bank. when, if the court's order had been obeyed. $187. 000 would have settled the bill, may not interest Mr. Spillman as a practical proposition, but it would if he had to pay this unnecessary loss him self." In an argument for an amendment of the banking laws "so that banks will be in a position to help the state department to enforce the law and handle the institutions in need of help," Mr. Stephens declares that at the state has a present "life and death power over bankers." He de clares "no political machine can suc cessfully exercise such a power," and as a solution urges the plan which would create a "commission composed of heads of by practical banks chosen banks themselves as an advisory body to the state banking department." He declares such a commission would prevent exploitation of banks and the wasting of banks' property through expensive receiverships.