13176. State Bank (Laurel, NE)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
January 2, 1928
Location
Laurel, Nebraska (42.429, -97.090)

Metadata

Model
gpt-5-mini
Short Digest
c1af92f2

Response Measures

Accommodated withdrawals, Full suspension, Books examined

Other: Taken under control of the State Guarantee (Guaranty) Fund commission; special agent George J. Boucher placed in charge and liquidation/administration carried out, with new accounts opened for ongoing business.

Description

Depositors made heavy withdrawals (about $57,000) after 'wild rumors', directors closed the bank, Guarantee (Guaranty) Fund commission took charge and reopened the bank; dividends paid later (25% on March 5). Classification: run triggered by rumors, closure by directors followed by takeover and reopening under Guarantee Fund.

Events (4)
1. January 2, 1928 Run
Cause
Rumor Or Misinformation
Cause Details
Wild rumors and loss of confidence led depositors to withdraw about $57,000, leaving about $200 in cash.
Measures
Directors decided not to open the bank; later placed under control of the Guaranty (Guarantee) Fund commission.
Newspaper Excerpt
the heavy run made on the institution the two days previous during which time $57,000 was withdrawn by depositors who had lost confidence in the bank.
Source
newspapers
2. January 3, 1928 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Directors closed the bank after heavy withdrawals exhausted cash; closure initiated by bank directors in response to run (closure not due to government action).
Newspaper Excerpt
The State Bank of Laurel did not open its doors last Thursday morning... the directors decided by the directors not to open on the following morning.
Source
newspapers
3. January 4, 1928 Reopening
Newspaper Excerpt
The bank opened this morning under the direction of the Guarantee Fund commission and the statements are being prepared and will be mailed out... George J. Boucher is in charge of the bank as special agent of the Guarantee Fund commission.
Source
newspapers
4. March 5, 1928 Other
Newspaper Excerpt
$60,000 PAID A DIVIDEND - State Bank of Laurel will Pay 25 Per Cent Now - George J. Boucher... will start paying 25 per cent dividend next Monday, March 5th.
Source
newspapers

Newspaper Articles (4)
1. January 4, 1928 The Laurel Advocate Laurel, NE
Article from The Laurel Advocate, January 4, 1928

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Article Text

STATE BANK NOT OPENED LAST THURS. Heavy Run on Institution Forced Closing IS NOT IN BAD CONDITION Opened this Morning by Guarantee Fund will Pay Out The State Bank of Laurel did not open its doors for business last Thursday morning. The cause was the heavy run made on the institution the two days previous during which time $57,000 was withdrawn by depositors who had lost confidence in the bank. There was not over $200 in cash left in the bank Wednesday night and it was decided by the directors not to open on the following morning. In the closing of the bank it left the community without any banking facilities which worked hardship on many. We are told by one of the directors in whom we have every confidence that the affairs of the bank are not in bad shape and that there was but little question but what It would pay out practically every dollar to the depositors. Of course, it is going to take time to straighten out the affairs and make the collections but it is called to your attention that the bank has no real estate to speak of and that the liquidation will be much more rapid than if they did have. At the time of closing there was something like deposited in the institution. There have been many wild rumors regarding the bank for some time past, most of them without foundation but the fact remains that confidence in the institution was at low ebb and that the run was natural result. It is to be regretted that things happened just as they did but that is in the past and it is now up to us to assist those in charge in the liquidation as fast as possible. The bank opened this morning under the direction of the Guarantee Fund commission and the statements are being prepared and will be mailed out just as fast as possible so that everyone may know just where they stand. George J. Boucher is in charge of the bank as special agent of the Guarantee Fund commission. He banker of twenty years' experience and states that he likes Laurel ready and that he is always ready to co-operate with the community in ery possible way. the policy of the department in taking over bank of this kind to segregate the old accounts and proceed with the liquidation assets as speedily as possible, the intention being that as quidation proceeds, dividends may be paid from time to time on the old deposits, For the accomodation of the general public, any deposits made from now on will be set up in new accounts and subject to check by the depositor. In other words the institution will act as clearing house for the community. This will at the present time and it will assure the people of the community the cashing of their produce checks which they receive from the produce men of the city. During the past week the merchants have been carrying this work on to the best of their ability. It is too soon at this time to make definite regarding the condition of the bank but we feel that things are not as bad as first ports would have it and that most of the deposits will be paid back from time to time in dividends. It is going to cause lot of inconvenience and tie things up to certain extent for time but when everything is settled up we believe that everyone will have cent of their received large per money.

2. January 12, 1928 The Crofton Journal Crofton, NE
Article from The Crofton Journal, January 12, 1928

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Article Text

ST. ROSE CHOIR ENTERTAINED AT FRANK NOECKER HOME A number of the members of the St. Rose choir were entertained Sunday evening at the Frank Noecker country home. A delicious two course dinner was served at six o'clock followed by music and cards. Mrs. Otto Bogner and Albert Noecker scored high while Mr. and Mrs. Henry Perk received the low. midnight luncheon was served. NEW BANK FOR LAUREL The State Bank of Laurel closed its doors recently and opened again last week under control of the Guaranty Fund commission. The bank was not in bad condition, it is claimed, but lack of confidence caused a run which resulted in the drawing out of some $57,000 of deposits, leaving not over $200 in cash in the bank and the directors decided to close the institution. The closing of the bank left the community without any banking facilities for the time. At the time of closing there was about $251,000 deposits. Wild rumors, most of them without foundation, probably caused the run. A new national bank has been started and it will give the people of Laurel and community banking facilities and relief from their difficulties. LODGES IN NEW HOME The local Masonic Lodge and Eastern Star Chapter are now settled in heir new home. A social evening was spent by members and their families last week Wednesday evening. Cards dancing and visiting followed by an cyster supper was enjoyed by about 100 who were present. MOVING TO SOUTH DAKOTA Jim Holder has begun moving to Norris, S. D., Les Tucker driving up a truck load last week Thursday and returning Saturday. BURNED CHILD TAKEN HOME Little Ruth Kuehn, who was badly burned two weeks ago and WRS treated at Sacred Heart hospital at Yankton, was able to be taken home Monday and is reported doing as well as could be expected. SELLS FOR $2200 The Farmers Elevator which was sold last Saturday to satisfy a mortgage held by the First National Bank of Crefton, was bid in by the bank for $2200.00. START MEMBERSHIP DRIVE The Bloomfield Odd Fellows lodge has started a membership drive John H. Hansen and John Clements have been chosen as captains of two sides made up of members of the order and for the next sixty days there will be no small amount of activity in I.O.O.F. circles. The losing side must furnish a banquet to the winners. ANNUAL MEETING The annual meeting for Eastern Township will be held at the city hall, Crofton, Tuesday, Jan. 17th, at 2:00 p. m. FASTER THAN A RABBIT To speed over the highways fast enough to catch a jackrabbit through the windshield is going some. That is just what Axel V. Swanson did near Wausa last week. As he was driving home from town a jack rabbit, in trying to cross the road ahead of him, gave a high jump, clearing the front of the car but went through the windshield, breaking it into a hundred pieces. Luckily Mr. Swanson was not injured by the flying glass and managed to hold the car in the road, thus avoiding smashup.

3. February 29, 1928 The Laurel Advocate Laurel, NE
Article from The Laurel Advocate, February 29, 1928

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Article Text

$60,000 PAID A DIVIDEND State Bank of Laurel will Pay 25 Per Cent Now START PAYING MONDAY Notice Published in Another Column be Big Help to Community at This Time George J. Boucher, special agent in charge of the State Bank of Laurel, will start paying 25 per cent dividend next Monday, March 5th. The sum will be little more than $60,000. This welcome news was given to us last evening by Mr. Boucher who has been working hard to get the affairs of the bank in shape for this action. It will mean great deal to the community coming at this time and will stimulate spirit of optimism and burevival throughout the whole community. The bank has been in Guarantee Fund commission less than sixty And days. the good news further goes even as we are told that the Dixon State bank will also a like dividend the pay on same date. We do not know just what the total amount of the dividend Dixon will be but will relieve our sister community the same it as does us. Startng Monday morning will you be able to get one fourth of your deposits that were in the bank at the time it was taken There over. are certain rules are regulations that must be with in securing this dividend and advise our readers to turn to the letter from Mr. Boucher which is published in another column and get acquainted with the rules under which the dividend will be paid so that you can co-operate with the bank and get the business transacted quickly that other folks may be waited on. bank will continue to operate future as it has in the past, taking care of deposits. you to leave them in the bank. This is matter of accomodation to the community and the deposits are safe in the Institution according to Mr. Boucher, who explains it in his statement. He is giving the public as much as banking service as he is permitted to under the circumstances. We know this will be the most pleasing piece of news we have been able to give our readers for many day and we rejoice with everyone over the release of this money. It means to everyone and will do world of good at this time when the majors ity of people have settlements to make and obligations to meet.

4. February 7, 1929 Rock County Leader Bassett, NE
Article from Rock County Leader, February 7, 1929

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Article Text

WHEAT GROWER TOLD OF POOL Lincoln, Neb., (Special)W. Ransom, secretary of the Manitoba wheat pool, began series addresses that will take him into parts of the state, the chamtoday, when he cussed the by which the wheat of Canada have been able increase returns. Mr. Ransom said that the farmers there that the surest way effect betterment of conditions was for them to help themselves, and that legislation is helpful, lead to positive adjustments. He said that the wheat by local units, and federal There are three units, all under Starting with five of 65,000, the pool now embraces 140,000 and constantly adding its rolls. The volume marketed was close to 300,000,000 bushels, which represents the larger part production. the past three years control the and orderly disposition had the price and The selling costs proved to be negligible, about quarter of cent per bushel, and the total overhead has never run beyond and three fourths cents, including storand interest. The saving operation controlled by the pool more than offsets the cost of operation of local elevators. RECEIVERS FOR CLOSED NEBRASKA BANKS CHANGED Coleridge, (Special) -George of the National, some in northeast braska, Been named the First National bank of Coleridge. He will be assisted here by Roy Flaherty 15 cent. dividend amounting $75,000 will be paid to depositors of the Laurel National bank according to This the third he making bank. Herbert who been at the state bank in gone Concord and George Bouchof South Sioux receiver at the State bank at Laurel, gone to Dixon, leaving Miss Frahm temporarily in charge of the Laurel State bank.