First National Bank - Milbank, SD

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: national
Bank ID: 6473
Charter Number: 6473
Start Date: October 23, 1926
Location: Milbank, South Dakota (45.219, -96.636)

Metadata

Model: gpt-5-mini
Short Digest: 1a97d541

Response Measures

Full suspension, Books examined

Other: Called in a federal bank examiner; later placed in receivership (1931).

Receivership Details

Depositor recovery rate: 60.6%
Date receivership started: 1926-11-15
Date receivership terminated: 1934-08-16
Share of assets assessed as good: 53.6%
Share of assets assessed as doubtful: 36.0%
Share of assets assessed as worthless: 10.4%

Description

October 1926 articles report a run sparked by a rumor the bank had closed; the bank suspended payments and called in a federal bank examiner. By July 1931 a receiver for the First National Bank in Milbank was filing suits, indicating the bank did not resume normal independent operations and entered receivership/closure.

Events (5)

1. October 27, 1902 Chartered

Source: historical_nic

2. October 23, 1926 Run

Cause: Rumor Or Misinformation
Cause Details: Circulation of a rumor that the bank had closed which frightened depositors and triggered withdrawals.
Random Run: Yes
Random Run Snippet: Rumor that the bank had closed; caused depositors to run.
Measures: Bank withstood the run for several days, then officers concluded to close the institution and called in a federal bank examiner to adjust affairs.
Newspaper Excerpt: The closing of the Milbank bank was due to the circulation of rumor that the had closed, which caused a run ...
Source: newspapers

3. October 23, 1926 Suspension

Cause: Rumor Or Misinformation
Cause Details: Management closed the bank and suspended payments after continued withdrawals caused by the circulating rumor; officers called a federal bank examiner to adjust affairs.
Newspaper Excerpt: The bank ... decided to close the institution and call in federal bank examiner to adjust affairs ... decided to suspend payments.
Source: newspapers

4. November 15, 1926 Receivership

Source: historical_nic

5. July 21, 1931 Receivership

Newspaper Excerpt: Perry Peters, as receiver of the First National bank in Milbank, late afternoon filed in federal court here ... the receiver is engaged in liquidating the affairs ... (Argus-Leader, 1931-07-21).
Source: newspapers

Newspaper Articles (3)

1. October 23, 1926 Argus-Leader Sioux Falls, SD

Article from Argus-Leader, October 23, 1926

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Article Text

RUMORS CAUSE BANK TO FAIL Timid Depositors Start Runs on Banks at Milbank and Webster Reopen Milbank, Oct. 23.-Two more South Dakota closed their doors, the First National bank Milbank the Security Bank and Trust company Webster. In each case there are said to be prospects for the institutions being reorganized and reopened. The closing of the Milbank bank was due to the circulation of rumor that the had closed, which caused a run the part of timid depositors. The bank the run for several days then It and was concluded the part of wisdom to close the institution and call in federal bank examiner to adjust affairs. The of. ficers say the remaining depositors no for worry, as the bank has in the way of good loans, yet due, which sufficient to take care the liabilities. Closing banks Waubay, Ortley and other places is held responsible for run on the Security Bank and Trust company Webster which caused the closing of the bank. The bank withstood the run for about one month, the officers would come quieted. but as the run continued The was decided to suspend payments. bank, borrowed no money and was in as good condition as bank be depositors perfectly safe had they not frightened and started the run. Officers of the bank further that they expect pay depositors in full whether the bank is reopned or not.

2. October 24, 1926 The Sioux City Journal Sioux City, IA

Article from The Sioux City Journal, October 24, 1926

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Article Text

MILBANK AND WEBSTER BANKS CLOSE DOORS Falls, Oct. more South Dakota banks have closed their doors, the First National bank of Milbank and the Security and Trust company Webster. case there be pects for the institutions being reorganized and reopened. closing the Milbank bank the that the closed, which caused part timid The bank the for days and then close the institution call bank aminer adjust remaining for worry, the bank has sources the good not due, which to take liabilities. Closing banks Ortley and other places held responsible the Security Bank and Trust company The bank withstood for about month, officers depositors would become quieted, but the tinued decided suspend ments. The bank, announced, borrowed money and was good condition could perfectly safe had they not become frightened started the of the bank pay depositors full whether the bank reoponed or not. YOUTH SENT TO "PEN" FOR ATTACKING GIRL Oct. Earl Veeder, of tenced serve and year the state at Sioux Falls, when pleaded guilty statutory charge before Judge N. Skinner circuit court Hayti. Veeder arrested here the complaint of girl that had attacked in hunting lodge. Veeder States Attorney Vern Wohlheter taken Hayti, where he indicated would plead guilty before circuit judge. The girl told authorities, when fronted Veeder, admitted her story, that was taken with two other companions in closed car the hunting lodge by the This youth. the third statutory offender who been sent the penitentiary from Watertown the three weeks, and another, charged with similar offense, is being held in the county jail trial November of circuit court.

3. July 21, 1931 Argus-Leader Sioux Falls, SD

Article from Argus-Leader, July 21, 1931

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Article Text

PROMISSORY NOTE IS BASIS OF SUIT Milbank Bank Receiver Brings Action Against Aberdeen Man In U. S. Court Asking $721 42. Perry Peters. as receiver the First National bank in Milbank, late afternoon filed in federal court here against Thad Fuller, AberThe complaint alleges that Mr Fuller executed the First National in Milbank a note for on 1925 and that on October the was paid on it by Mr. Fuller Since that time, the complaint alleges, no has been paid the of due plaintiff The plaintiff who temporary resident Milbank encaged in liquidating the affairs the in the amount due. plus and costs and disbursements in this Waddel & Dougherty, are attorneys for the plaintiff.