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Due to Frozen $410,000.00 Is Being Held Future Action of Pending Confidence is Depositors; High. The financial underpinnings of Ravenna and the surrounding sections rocked to the roots when the Citizens State Bank Ravenna, with deposits totalling over $410,000.00, closed morning this week, and state officials called in to take charge. There probably other single event in the financial history of Ravenna, that can equal its enormity. The closing came surprise, the majority of people considering that way unstable. The reafor its closing became the subject of multitude of rumors and stories, most of them with no foundation. The explanation for it can not into few words, said officials the defunct bank. Most of was due to frozen paper. Drained the Limit "We were slowly being drained" said Mr. E. Erazim, cashier of the bank. wore down reserve strength. We could have continued in business for time, but we not wish to give one customer premium by letting him draw out the last of our reserve, and let other customers be penalized just for keeping their money in the bank. Rather than do that, the officers decided to close when they did." Fred E. Allen, state bank examiner, assisted by Mr. Parks arrived Ravenna Tuesday request of the Citizens bank officials, and are at work going over all the NOTICE! Depositors Meeting positors will heir share of the assets impossible to tell what pro rata the Citizen's bank could pay, but has seldom been known for any bank over per cent. The other alternative, which seems be the only sensible and sane way this reorganize the bank. In this case, depositors be asked to sign waivers for enough now on deposit in the bank, money clean get things all up paper, straightened and get the bank up, its feet again. This 'borrowed' money will returned as the good paper comes due and the notes are paid. this method is employed the Citizens Bank be open in from may months. state law that all former officers and employees of the bank be put out of the organization. Who run the Citizens bank, under reorganization plan must be decided the depositors. Until new men by and new capital are employed to run the bank, however, and new openmade, the state men continue ing The history the Citizens State Bank, which about thirty years old, one of good banking and honesty No reproach held against the presofficers of the their integrity being The crash came no bank in its condition, could stand such constant hammering its vital Only other bank in Ravenna's history has closed its doors. That the City National bank, with Mr. Shaw as head, who closed 38 years ago. A meeting of all the depositors of the Citizens State Bank be called during the early part week, to Fred E. Allen, state bank examiner, now in charge This meeting will be held the purpose, appointing five men who will make an investigation into the situation, see whether the bank should be reorganized and re-opened, whether it shall into the hands receiver All depositors will be notified card before the meeting, which will probably be held at the local theatre. counts and papers in the bank paratory making complete statement of the condition. Compliments Officers Though was early to say anything definite Wednesday, Mr. Allen, now in charge, of the who opinion that bank was in little better condition than other defunct banks, and complimented the officers their action of closing, and on what they could. that the in this bank say paper is would foolish' was the good, of the officials, "for quantity of isn't. But know that there paper here that good, but which people would considerable worthless right No Panic Apparent the that closing of Despite the Citizens bank might cause run the other banks, Tuesday went without ripple. Vaults, high cash, ready meet any because one bank tics, thinking under the whole financial situation dangerous, withdrew their money. Bankers in Ravenna were pleased even at the reasonable surprised Ravenna acted. New accounts way taken at both banks, were business on the street, though quiet, usual. The public gone confidence was not apparent- Have Two Alternatives Officials, directors, employees, and the state, are now powerless to with the closed bank. Acanything state law, the fate of the cording Bank has been delivered Citizens automatically into the wholly and of the Whether the hands depositors. bank to on in business, or into receivership is strictly up them. down and out of All power has passed of our hands. said Mr. Erazim, who, as he spoke, turned head aside to hide tears that dimmed his eyes. has been hard thing to face. Depositors Will Meet of all depositors in the A meeting bank will be called early next week. cannot come before The because Mr. Woods day Tuesday, from Lincoln, cannot Mr. Bliss, reach here sooner than that to duct the meeting. this meeting the situation At and committee of explained, be to go into the men will appointed and will be matter thoroughly, make report and pected to as to what should be done. mendation committee, future This meeting, will then recommend positors of two The first one that the bank shall go into the hands of receiver, all assets will liquidated, and the
