State Bank - Arlington, SD

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: June 1, 1906*
Location: Arlington, South Dakota (44.364, -97.133)

Metadata

Model: gpt-5-mini
Short Digest: adb9f1c214e9d6e3

Response Measures

None

Description

Article (Brookings Register, 1906-09-27) states the Arlington State Bank 'liquidated on the demand of the department that cash be substituted for notes.' No run or depositor panic is mentioned. Closure/liquidation was prompted by the state public examiner's action (government regulator), so classified as a suspension leading to permanent closure. No precise date given beyond the biennial report ending 1906-06-30.

Events (2)

1. June 1, 1906* Suspension

Cause: Government Action
Cause Details: State public examiner demanded cash be substituted for notes, prompting liquidation.
Newspaper Excerpt: The Arlington State bank liquidated on the demand of the department that cash be substituted for notes
Source: newspapers

2. * Receivership

Newspaper Excerpt: The Arlington State bank liquidated on the demand of the department that cash be substituted for notes
Source: newspapers

Newspaper Articles (1)

1. September 27, 1906 The Brookings Register Brookings, SD

Article from The Brookings Register, September 27, 1906

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Article Text

GETS 70 BANKS IN TWO YEARS. South Dakota's Public Examiner Makes Report. The report of Public Examiner Bramble for the biennial period ending June 30 shows that at the date of the previous report 264 banks were in existence in the state under the supervision of that department. Since that time ninety-seven have been organized; twenty-seven liquidated, of which number ten have become national; eleven have organized from private to state banks; and six discontinued business. This leaves a net increase of seventy after deducting the nationalized and liquidated. The state now has 290 state banks; 13 banking corporations under the old corporation act, and 31 private banks, making a total of 334 under the supervision of the department. The increase in volume of business has been wonderful. Resources and liabilities have increased from $22,523,481.46 to $32,186,209.86, making a net increase of $9,612,728.40. No bank failures have occurred during the biennial period. The Arlington State bank liquidated on the demand of the department that cash be substituted for notes, and others liquidated on demand of the department for such action or better banking methods. In all of the banks which have liquidated the depositors were satisfactorily provided for. The department has checked every county treasurer in the state; at the request of the state land commissioner has examined into the standing of the school fund securities, and has checked the offices of the secretary of state and state treasurer. Examiner Bramble calls attention to the lack of office force of the department to make the examinations required by law, and asks for an appropriation sufficient to meet this condition. He recommends that no state bank be allowed to open for business until it shows to the department that its capital stock has been paid in in cash. He recommends that the law be amended to prohibit loans of money to officers or directors of banks without good collateral security or sufficient indorsements upon their paper, unless such loan is authorized by the board of directors, and a record is made of such action. He further recommends an amendment of the banking laws to allow the department to take complete control of a bank which refuses to comply with the banking laws until such time as the courts can, appoint a receiver for such institution. A tabulated report follows showing the standing of all the banks under control of the department, and giving details of their affairs.