State Bank (Central City, IA)

Episode Information

Episode Type
Run → Suspension → Closure
Start Date
December 11, 1926
Location
Central City, Iowa (42.204, -91.524)
Bank Type
state

Metadata

Episode ID
Bank ID
City ID
190455313
Model
gpt-5-mini
Short Digest

Notes

OCR shows in solvent in article 2; corrected to insolvent.

Events (3)
1. December 11, 1926 Run
Cause
Rumor Or Misinformation
Cause Details
Malicious gossip and reports after an assessment on stockholders triggered several days of withdrawals.
Measures
Bank remained closed by order of the board; state bank examiner took charge of affairs.
Newspaper Excerpt
There has been a run for several days, due, it is believed, to malicious gossip.
Source
newspapers
2. December 11, 1926 Suspension
Cause
Rumor Or Misinformation
Cause Details
Board ordered closure amid ongoing run caused by malicious gossip.
Newspaper Excerpt
The Central City State bank ... remained closed by order of the board of directors today and its affairs are in the hands of the state bank examiner.
Source
newspapers
3. December 13, 1926 Receivership
Newspaper Excerpt
L. A. Andrew, superintendent of banking in Iowa, filed a petition in district court today to have receiver appointed for the State Bank of Central City, which was declared insolvent Dec. 13.
Source
newspapers

Newspaper Articles (2)
1. December 11, 1926 The Oakland Post Enquirer Oakland, CA
Article from The Oakland Post Enquirer, December 11, 1926

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Article Text

Gossip Starts Run On Bank; Solvent, Examiner Believes

CEDAR RAPIDS, Ia., Dec. 11.The Central City State bank of this county remained closed by order of the board of directors today and its affairs are in the hands of the state bank examiner. There has been a run for several days, due, it is believed, to malicious gossip. A. week ago the bank placed an assessment on the stockholders, and this started a report that it was in solvent and a run followed. Its deposits agregated $370,000. The examiner said he believed it would pay out.

2. December 20, 1926 The Gazette Cedar Rapids, IA
Article from The Gazette, December 20, 1926

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Article Text

NEW SUITS

L. A. Andrew, superintendent of banking in Iowa, filed a petition in district court today to have receiver appointed for the State Bank of Central City, which was declared in solvent Dec. 13. The Perpetual Savings and Loan association filed petitions to foreclose mortgages on Sanford M. Hill, N. E. Hill, the Consumers' Building Material company, and the Chandler Pump company for $2 500: against z. A. Zeman, Katherine Zeman and the Morris Plan company for $3,700, and against Edward F. Shors and Abbi. line K. Shors for $1,600. The Farm ers and Merchants Savings bank filed suit to collect a judgment of $2,080 against Orris D. Sallor and