Saline County Bank - Western, NE

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: March 1, 1933*
Location: Western, Nebraska (40.394, -97.198)

Metadata

Model: gpt-5-mini
Short Digest: a993967e

Response Measures

None

Description

The Saline County Bank in Western, NE closed in March (bank holiday) and did not reopen. Article (Oct 30, 1933) describes the sons obtaining an RFC loan and liquidating assets to pay depositors in full, indicating a permanent closure/liquidation rather than reopening. Cause attributed to agricultural conditions and steady withdrawals (local economic shock).

Events (1)

1. March 1, 1933* Suspension

Cause: Local Shock
Cause Details: Bank failure blamed on agricultural conditions and steady withdrawals that reduced deposits; town cash reductions over recent years led to closure.
Newspaper Excerpt: the 350 depositors of the Saline County bank here, closed last March, today were assured of their deposits payment in full.
Source: newspapers

Newspaper Articles (1)

1. October 30, 1933 Beatrice Daily Sun Beatrice, NE

Article from Beatrice Daily Sun, October 30, 1933

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Article Text

BANKERS DEPOSITORS WESTERN, Neb., Oct. 30 Thanks to the integrity of the six children of Nebraska and pioneer the 350 positors of the Saline County bank here, closed last March, today were assured of their deposits payment full. George Sawyer, founder and president the bank who ran its affairs for 40 years salary of $50 month, died last March Soon afterwards the institution closed by the bank holiday but two sons worked out plan for complete repayment of funds entrusted the last bank in this town 500 population. told the people we would try to pay them in full," said James Sawyer, 50, who had been the bank with his father for 23 years and who with Homer Sawyer, worked out the payment plan. James and Homer are "We led them to believe we could pay them James added. "We had been here too long to do anything else. We wanted them know the confidence they had placed in our bank was justified. The sons today were preparing to mail out drafts completing payment on the nearly de posits in the institution when was forced close. Early collections available cash had paid off $26,000 of the total. Borrowed The Money A Reconstruction Finance corporation loan for $32,000 and further collections recent months made the full payment cash possible. To obtain the R. loan, the boys joined their four sisters, Mrs. Frank Eager of Lincoln, Mrs. Lula Abbott Genoa, Mrs. Eldora Van Auken of Western and Mrs. Eva Storms of Auburn. They pledged real estate acquired by their father more than years ago and deeded to them before death, additional security for the loan. "We would hate to lose that property,' James Sawyer said, "but won't have to. The bank good for Its assets can be liquidated in full but it will take Sawyer attributed the bank's failure the agricultural conditions of recent years. He said the bank's deposits were at peak in 1920 and until year or two normally amounted to about but the steady withdrawal because of reductions in cash held the town and surrounding farm community reduced deposits to about $119,000 last March. Pioneer Institution The town was only year or two older than the bank which founded June 15, 1885. George Sawyer, its founder walked into Nebraska in 1870 and homesteaded seven miles north of here. For four years he lived in half sodhouse, half dugout. Then went to Dorchester, drifted into politics and served several years deputy county clerk and county surveyor. Starting collection business at Friend. organized the Merchants and Farmers bank there which he sold in 1885 when he came here to organize bank. was the second bank in town and there were three others since the last other one closed in 1926. Until 1925, the elder Sawyer paid himself salary of only $50 month. He was president of the State Bankers' association in 1913. The two sons expect to continue here real estate, loan and insurance business.