20269. Farmers State Bank (Butler, SD)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
November 17, 1915
Location
Butler, South Dakota (45.259, -97.712)

Metadata

Model
gpt-5-mini
Short Digest
39ecdab6

Response Measures

None

Description

The Farmers' State Bank of Butler was closed/suspended following the failure/closing of the First National Bank at Bristol and the missing Bristol cashier Torgus Strandness. Examiners found no irregularities and reports stated the bank was solvent and expected to open in a few days, indicating a suspension with an eventual reopening.

Events (4)
1. November 17, 1915 Suspension
Cause
Local Banks
Cause Details
Suspension triggered by the closing/failure of the First National Bank at Bristol and the related scandal involving Bristol cashier Torgus Strandness (missing).
Newspaper Excerpt
The Farmers' State bank, of Butler, was closed for repairs yesterday, the suspension being due to the closing of the First National bank at Bristol.
Source
newspapers
2. November 18, 1915 Other
Newspaper Excerpt
Deputy Examiner C. J. London, of Watertown, has been placed in charge of the suspended Butler bank. ... It is claimed that the shortages of Strandness had been known to other officers of the bank ... Investigations at Bristol lead examiners to believe that Strandness has lost fully $100,000 in speculation on the board of trade, which amount he took from the bank, it is alleged, by making false entries on the bank's books ... Cashier Strandness, of Bristol, left two weeks ago for the Twin cities ... United States officials are looking for him in eastern states.
Source
newspapers
3. November 20, 1915 Other
Newspaper Excerpt
After an examination lasting a day and a half of the books of the Farmers' State bank, of Butler, which institution was closed yesterday as the result of the failure of the First National bank, of Bristol, the state banking department is said to have declared that no irregularities have been found and so far as is known, the bank is in a solvent condition.
Source
newspapers
4. * Reopening
Newspaper Excerpt
open in a few days.
Source
newspapers

Newspaper Articles (4)
1. November 18, 1915 Missouri Valley Times Missouri Valley, IA
Article from Missouri Valley Times, November 18, 1915

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Article Text

open in a few days. Butler. S. D., Nov. 18.-The Farmers' State bank, of Butler, was closed "for repairs" yesterday, the suspension being due to the closing of the First National bank at Bristol. Torgus Strandness, missing cashier of the Bristol bank, is president of the Butler institution. His son, Ted Strandness, is cashier here. Deputy Examiner C. J. London, of Watertown, has been placed in charge of the suspended Butler bank. Ted Strandness, the 26-year-old son of the missing Bristol cashier, was given a severe grilling by E. W. Fiske, assistant district attorney, and is said to have told of his father's plunging operations on the board of trade, dating back over a period of several years. It is claimed that the shortages of Strandness had been known to other officers of the bank for several months and that they had been relying upon Strandness' claim that he would adjust matters. Strandness is about 60 years of age and-has a wife and seven or eight children. For the past year he has been separated from Mrs. Strandness and has been living alone at the bank. His daughter, Clara Strandness, and a son were employed in the bank at Bristol, and it is alleged they were cognizant of the way their father was handling the bank's finances. Investigations at Bristol lead examiners to believe that Strandness has lost fully $100,000 in speculation on the board of trade, which amount he took from the bank, it is alleged, by making false entries on the bank's books covering certificates of deposits. In one instance, it is alleged, $10,000 was deposited by a customer of the bank in certificates of deposit. The bank's books were made to show but $300 having been deposited. Following is a statement of the bank's condition, September 1: Capital, $25,000; surplus and profits, $6,000; circulation, $25,000; individual deposits, $225,000; bank deposits, $25,000; loans and discounts. $200,000; discounts, $200,000; United States bonds, $26,000; state and municipal bonds. $45,000; due in bank, $4,000; cash and exchange, $30,000. The Bristol bank was a member of the Minneapolis reserve bank, and is the first national bank in South Dakota to go into an. examiner's hands in many years. Cashier Strandness, of Bristol, left two weeks ago for the Twin cities, where he wrote from the Golden West hotel, Minneapolis, that physicians there advised him to go to Rochester, Minn., for consultation as to his health. He did not go to Rochester. and United States officials are looking for him in eastern states.

2. November 25, 1915 Pierre Weekly Free Press Pierre, SD
Article from Pierre Weekly Free Press, November 25, 1915

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Article Text

STRANDNESS LOCATED BY FEDERAL OFFICERS, IS CLAIM Aberdeen, S. D., Nov. 20.-Federal officials have located the place where Torgus Strandness, the missing cashier of the Bristol institution, is hiding, and his arrest is expected shortly. He is said to be in an eastern state. Among municipal monies carried by the Bristoly bank was $5,000 deposited with that institution by the treasurer of Day county, Ole T. Strandness, not related to the cashier of the defunct institution. That amount is guaranteed by a personal bond signed for the most part by stockholders of the bank. After an examination lasting a day and a half of the books of the Farmers' State bank, of Butler, which institution was closed yesterday as the result of the failure of the First National bank, of Bristol, the state banking department is said to have declared that no irregularities have been found, and so far as is known, the bank is in a solvent condition. i STURGIS-That the municipal saloon established here last July is a paying investment is indicated by the report of the committee of business men conducting it. It is run by a company of incorporated stockholders who at the outset gave their notes for $3,500, all of which has been paid off, together with all other indebtedness, and the company now has a clear profit of $4,000, consisting of stock, unused Iicense money, cash in bank and city warrants. The company estimates that in two years the city indebtedness will be reduced by $25,000. DALLAS-A special election has been called for December 1, at which the proposition of issuing bonds in the sum of $4,000 for the purchase by the city of the local electric light system, which now belongs to private parties, will be submitted to the voters. SPRINGFIELD-The commercial club of this city was host at a banquet for the bands of Tyndall and Springfield As guests of honor there were invited also the mayors of Tyndall, Scotland, Avon and Tabor, and the representatives of the commercial clubs and the editors of the newspapers of the towns of Bon Homme county.

3. November 25, 1915 The Citizen-Republican Scotland, Parkston, SD
Article from The Citizen-Republican, November 25, 1915

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Article Text

STRANDNESS LOCATED BY FEDERAL OFFICERS, IS CLAIM Aberdeen, S. D., Nov. 20.-Federal officials have located the place where Torgus Strandness, the missing cashier of the Bristol institution, is hiding, and his arrest is expected shortly. He is said to be in an eastern state. Among municipal monies carried by the Bristoly bank was $5,000 deposited with that institution by the treasurer of Day county, Ole T. Strandness, not related to the cashier of the defunct institution. That amount is guaranteed by a personal bond signed for the most part by stockholders of the bank After an examination lasting a day and a half of the books of the Farmers' State bank, of Butler, which institution was closed yesterday as the result of the failure of the First National bank, of Bristol, the state banking department is said to have declared that no irregularities have been found and so far as is known, the bank is in a solvent condition. i STURGIS-That the municipal saloon established here last July is a paying investment is indicated by the report of the committee of business men conducting it. It is run by a company of incorporated stockholders who at the outset gave their notes for $3,500, all of which has been paid off, together with all other indebtedness, and the company now has a clear profit of $4,000, consisting of stock, unused II: cense money, cash in bank and city war. rants. The company estimates that in two years the city indebtedness will be reduced by $26,000. DALLAS-A special election has beer called for December 1, at which the prop. osition of Issuing bonds in the sum of $4,000 for the purchase by the city of the local electric light system, which now belongs to private parties, will be submit. ted to the voters. SPRINGFIELD-The commercial club of this city was host at a banquet for the bands of Tyndall and Springfield. A1 guests of honor there were invited also the mayors of Tyndall, Scotland, Avor and Tabor, and the representatives of the commercial clubs and the editors of the newspapers of the towns of Bon Homme county.

4. November 25, 1915 The Tabor Independent Tabor, SD
Article from The Tabor Independent, November 25, 1915

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Article Text

STRANDNESS LOCATED BY FEDERAL OFFICERS, IS CLAIM Aberdeen, S. D., Nov. 20.-Federal officials have located the place where Torgus Strandness, the missing cashier of the Bristol institution, is hiding, and his arrest is expected shortly. He is said to be in an eastern state. Among municipal monies carried by the Bristoly bank was $5,000 deposited with that institution by the treasurer of Day county, Ole T. Strandness, not related to the cashier of the defunct institution. That amount is guaranteed by a personal bond signed for the most part by stockholders of the bank. After an examination lasting a day and a half of the books of the Farmers' State bank, of Butler, which institution was closed yesterday as the result of the failure of the First National bank, of Bristol, the state banking départment is said to have declared that no irregularities have been found and so far as is known, the bank is ir a solvent condition. STURGIS-That the municipal saloon established here last July is a paying investment is indicated by the report of the committee of business men conducting it. It is run by a company of incorporated stockholders who at the outset gave their notes for $3,500, all of which has been paid off, together with all other indebtedness, and the company now has a clear profil of $4,000, consisting of stock, unused 11. cense money, cash in bank and city warrants. The company estimates that in two years the city indebtedness will be reduced by $25,000. DALLAS-A special election has been called for December 1, at which the prop. osition of issuing bonds in the sum of $4,000 for the purchase by the city of the local electric light system, which now be. longs to private parties, will be submit ted to the voters. SPRINGFIELD-The commercial club of this city was host at a banquet for the bands of Tyndall and Springfield, As guests of honor there were invited alse the mayors of Tyndall, Scotland, Avor and Tabor, and the representatives of the commercial clubs and the editors of the newspapers of the towns of Bon Homme county.