Security State Bank - Osmond, NE

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: March 4, 1933
Location: Osmond, Nebraska (42.360, -97.597)

Metadata

Model: gpt-5-mini
Short Digest: dc911a13

Response Measures

None

Description

Bank suspended operations after the end of the federal moratorium and is operating under a Nebraska law that restricts withdrawals; depositors asked to sign waivers and bank expects to resume under state approval. Suspension date given as March 4, 1933 in the article; reopening anticipated (not yet completed) under the new law.

Events (1)

1. March 4, 1933 Suspension

Cause: Government Action
Cause Details: Operations suspended after federal bank moratorium ended; bank placed in hands of Nebraska Department of Trade and Commerce pending legislation (House Roll 167) and consent of depositors to restricted withdrawals.
Newspaper Excerpt: After having operated at Osmond for 35 years ... the Security State Bank failed ... when last week the federal bank moratorium terminated. The bank is in the hands of the Department of Trade and Commerce Lincoln during the period of suspense pending completion of House Roll 167.
Source: newspapers

Newspaper Articles (1)

1. March 22, 1933 Osmond Republican Osmond, NE

Article from Osmond Republican, March 22, 1933

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Article Text

Operations Security Suspended PLAN IS TO CONTINUE SOON UNDER NEWLY ENACTED LAW OF STATE OF NEBRASKA After having operated at Osmond for 35 years prosperity and adversity, the Security State Bank failed through to continue periods its of banking activities when last week the federal bank moratorium terminated. Working under the same stress that has proven millstone to all banks in recent steady of deposits with no corresponding liquidation of Security stockholders after longtime deliberation on the subject concluded that the best interests of their patrons would be served the by institution continuing under recently enacted banking law which restricts withdrawals, promotes collections and permits full checking privileges on new deposits. The bank is in the hands of the Department of Trade and Commerce Lincoln during the period of suspense pending completion of House Roll 167. Before the bank owners may under this law operate they must have consent of the holders of 85 per cent of the deposits in the bank. This consent they are striving to obtain at present. Other options under existing Nebraska laws might have been resorted to but the plan preferred appears to meet public approval. Blanks have been sent to all bank depositors asking their signature to waiver consenting to the bank retainfunds until the coming December when partial withdrawals governed by the amount of collections are permissable. letter giving full explanation of the situation and the method of continuing under the new plan accompanies the waiver. of the Security State Bank on March 4th as set forth this letter showed deposits aggregating as compared to $352,five years ago. Loans of the bank are now years ago they were $374, 731.66. These figures make it clear that notes were not paid in the proportion that deposits were used. After havpersonally shouldered the many losses that were inevitable in these recent trying the stockholders the years, of institution found the course outlined as the best for all concerned. A meeting of depositors was arranged at the Osmond city hall last Saturday evening at which time the plan was verbally explained by the bank's officers. is contemplated that the required waivers will be received in short time, that depositors' committee will be named to cooperate with the bank officials in the collection of notes outstanding and that after the banking department at Lincoln has certified its approval deposits will be permissable. Every banking function permissable loaning out of the new deposits. We understand by far the greater portion of the required waivers have been procured by the bank it is believed the full will be on file within short time. Doing business in farm community such as that in which Osmond located makes collections during the summer period almost impossible, hence also any payment on the deposits. First payment on the "frozen" deposits according to the agreement will not be forthcoming until December. The new law gives the stockholders of the bank the privilege of canceling present methods and adopting normal banking without strictions by complying with the regulations of the state banking department governing such change of system. is the desire of the officers stockholders of the Security State Bank to bring about such status and believe we are voicing the wish of the Osmond people as whole in anticipating the full re-establishment of the institution that has served the community well through many years. We look forward with expectancy to the reopening of the bank the near future.