Security State Bank - Ravenna, NE

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: October 8, 1931
Location: Ravenna, Nebraska (41.026, -98.913)

Metadata

Model: gpt-5-mini
Short Digest: 0f109bc8

Response Measures

Full suspension, Books examined

Description

Heavy withdrawals prompted the cashier to close and suspend business in early October 1931 (article dated 1931-10-09). The bank did not resume normal operations; by January 1932 the Security State Bank was in liquidation with claims being filed and an assistant receiver handling affairs. The suspension was taken on the advice/orders of Commissioner George Woods, and the ultimate outcome was receivership/liquidation.

Events (3)

1. October 8, 1931 Run

Cause: Local Banks
Cause Details: Heavy withdrawals and nervousness linked to broader statewide banking troubles and runs on local banks; depositors withdrawing steadily over several days.
Measures: Cashier closed bank, stopped business to halt withdrawals; paid all cleared drafts and exchange; safe sealed; employees posted records and awaited instructions.
Newspaper Excerpt: Cashier Emil Holub closed the Security State Bank Thursday morning, and suspended business put stop to the heavy withdrawals that have attacked the bank within the past few days.
Source: newspapers

2. October 8, 1931 Suspension

Cause: Government Action
Cause Details: Bank suspended operations on advice/orders of State Banking Commissioner George Woods to prevent reserves falling below legal percentage amid heavy withdrawals.
Newspaper Excerpt: Cashier Emil Holub closed the Security State Bank Thursday morning, and suspended business... The Security Bank acting under orders George Woods, of Lincoln ... he told them to suspend rather than let their reserve below legal percentage.
Source: newspapers

3. January 15, 1932 Other

Newspaper Excerpt: Bank Liquidation Work Goes Forward ... the filing of claims in the Security State bank begin in ten days or two weeks, the of liquidation the two banks is proceeding quiet but rapidly ... Assistant Receiver Frank McGrew has charge ... the state department in Lincoln overloaded with receivership work ... Claims for money in the Security State Bank will be eligible soon . . . . (1932-01-15).
Source: newspapers

Newspaper Articles (3)

1. October 9, 1931 The Ravenna News Ravenna, NE

Article from The Ravenna News, October 9, 1931

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Article Text

Security Suspends Temporary Cashier Holub Assures Public Has Full Reserve to Pay Depositors. With the statement that the bank still with full legal reserve, and that 'depositors will protectand can be in paid Cashier Emil Holub closed the Security State Bank Thursday morning, and suspended business put stop to the heavy withdrawals that have attacked the bank within the past few days. The Security Bank acting under orders George Woods, of Lincoln, who last week told them they might expect some to the closing of the State Bank Ravenna. Woods told them that the run too hot, suspend rather than let the break the bank. He told them that they needed him. he would come out and meet with the deposiand tell them that the run must be stopped if they want to save the money the bank. That is exactly what has taken place. steady, slow withdrawal has hit the bank the last few days, sapping their excess cash Chief Ex. aminer Foster was that the bank was suspending pendtheir orders, and the Examiner that Commissioner George Woods would Ravenna to meet depositors soon as possible. withdrawal from the bank has been accompanied by any outfright or panic, but has been heavy The bank suspended rather than let their reserve below legal percentage. Cashier Holub said: depositors will be protected, and can be paid in Holub said all drafts and exchange business had been paid, or in other words all checks and drafts that had been cleared, have been Other checks that had not reached clearance by Wednesday, cannot course be handled until the bank opens again. The State Department has not or will not take charge of the bank its business. Employees were at work usual on Thursday morning, posting Wednesday's business carrying on as usual. The bank will meremark time until the meeting of the depositors Rather than let the withdrawals from the bank Holub said they would rather stop where they are, pay all the depositors, liquidate the paper and quit business. Business men in Ravenna will meanwhile of the services of bank. This will great handicap business men. Any check received town an out-of-town bank will have to be sent direct to the bank drawn And ask for cash money order, because otherwise, the bank will send draft and you can't cash the draft any easier than the check.

2. October 16, 1931 The Ravenna News Ravenna, NE

Article from The Ravenna News, October 16, 1931

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Article Text

Developments Meanwhile Temporary Structure Slowly Being Set Up and Put Into Motion The situation which appears from the outside to particularly deplorable of town temporarily without not in realdeplorable, but merely inconvenAnd from appearances, seems, temporary structure being built at present which will eliminate much the inconvenience within week The banking trouble which chronic over entire state at preshas completely swamped the state banking department. Commissioner Woods, who to appear in Ravenna soon before the body of positors of the State Bank Ravenand the Security State Bank, swamped. He unable to say na, his services being badly needed Meanwhile, at the State Bank Ravenna, the preliminary work been finished, and depositors are now able to appear at the bank, get their statements, and receive information regarding liquidation. The Security Bank, which not in the hands of the State Banking department, has their safe sealed, and the force merely marking time until further word is received from Lincoln. group from the Community effort local clearing house, bureau of exchange set up temporarily, has been partly successful and partly frustratthe meeting the CommunLuncheon club Tuesday evening, was brought out that to up office Ravenna, representing the State Bank Poole the NaGrand Island, deposits and cash checks and issue change would be direct violation of the banking statutes The State Bank of Poole nouncing in issue that they will cash salary and other checks for Ravenna people, making small service charge to cover number Ravenna merchants are preparing to keep slightly larger amount currency hand to cash smaller checks They intend to give preference their customers, as might be expected. expected that when local folks become acquainted system, things will run quietly and smoothly Members reported at the Community Club that they had entertained visitors the city this week, who were prying into the banking situation here, and seeking information the view of opening new bank. The problem their minds seemed to be not much matter raising the necessary capital and surplus, more to how much supthe bank would get in the city whether charter could be obtained. There nothing at all definite in this direction,

3. January 15, 1932 The Ravenna News Ravenna, NE

Article from The Ravenna News, January 15, 1932

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Article Text

Bank Liquidation Work Goes Forward With all the claims against the State Bank of Ravenna filed and ready to court consideration, and the filing of claims in the Security State bank begin in ten days or two weeks, the of liquidation the two banks is proceeding quietbut rapidly All claims for the State Bank had be filed December 1931. The hearing of the district court for validation the claims will take place January 29, 1932, the end this month. After the claims are dated and recorded, available dividends can be paid, although Asst. Receiver Frank McGrew says that collections are pretty slow. Claims for money in the Security State Bank will be eligible for soon. Mr. McGrew relates that the state department in Lincoln overloaded with receivership work that they are about two weeks behind There is no statute which makes to hold depositor's meetin closed neither there statute which makes necessary appoint depositor's with the liquidation For this reason meetings both the State Bank and the Security bank will not be held. The department figured that as long receivwas already on the in Ravenand reorganization either bank impractical, there was little use spending $50 to hold meeting. There will be depositor's committee to help with the classification the paper, but will consist of selected by the assistant by the state partment. committee of three has already been appointed for the State Bank. Assistant Receiver Frank McGrew has charge of the three banks Ravenna, bank Mason City and one big but divides the cost of liquidation considerably.