2590. Farmers Bank (Vero Beach, FL)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
November 13, 1931
Location
Vero Beach, Florida (27.639, -80.397)

Metadata

Model
gpt-5-mini
Short Digest
de784d03

Response Measures

Capital injected, Partial suspension

Other: Holding corporation proposed to purchase assets to restore liquidity and release deposits.

Description

November 1931 articles describe a run driven by street talk rumors; directors invoked the 90-day deposit freeze (80% frozen) and depositors initially agreed to freeze 100% for 90 days. A proposed holding corporation in December 1931 would purchase assets to release deposits and enable the bank to resume normal service, indicating reopening was planned. OCR errors corrected for clarity; bank type not specified in the text.

Events (4)
1. November 13, 1931 Run
Cause
Rumor Or Misinformation
Cause Details
Unfounded street-talk rumors caused rapid withdrawals and citizen panic against the bank.
Measures
Directors called meeting; depositors agreed to freeze 100% for 90 days; directors invoked law to freeze 80% of all deposits for 90 days.
Newspaper Excerpt
rumors ... citizens were withdrawing their cash from the bank at rapid rate
Source
newspapers
2. November 13, 1931 Suspension
Cause
Rumor Or Misinformation
Cause Details
As a consequence of the run caused by rumors, directors invoked the 90-day deposit freeze (80% of deposits).
Newspaper Excerpt
The directors ... decided to invoke the law, and freeze 80 per cent of all deposits for 90 days.
Source
newspapers
3. December 25, 1931 Other
Newspaper Excerpt
Purpose ... to release the deposits of the Farmers Bank of Vero Beach and enable bank to resume normal banking service ... corporation purchasing from the bank for cash certain of the bank's assets, the sale which will put the bank in liquid condition . . . enable bank to resume normal banking service in Indian River County . . .
Source
newspapers
4. December 25, 1931 Reopening
Newspaper Excerpt
Purpose ... to release the deposits of the Farmers Bank of Vero Beach and enable bank to resume normal banking service in Indian River County.
Source
newspapers

Newspaper Articles (2)
1. November 13, 1931 Indian River Press Journal Vero Beach, FL
Article from Indian River Press Journal, November 13, 1931

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Article Text

Funeral Services FARMERS BANK James Tuesday Funeral services for James held from the Cox Miller SAVED BY LOYAL Funeral home at Tuesday the Rev. Fischer the services, interment conducting The Winter Beach cemetery. at his deceased passed away west of Wabasso at home Citizens Rally to Support Institution Threatened by Rumors "run" the Farmers this city last week threatened close Indian River county's financial institution. Unonly founded and street talk rumors spread and citizens were withdrawing their cash from the bank at rapid rate. the bank officials ticipated by that large withdrawals would be made the following day, and realizing that this could not continue, meeting of the directors was called that afternoon. The direcdecided that the matter tors be to the citishould and the decision to zens, whether the bank should remain would be placed in their open The directors then called hands. Thatcher, secretary of in the chamber of commerce, to aid out plans for them in meeting of depositors. Mr. Thatcher immediately planfor that night of ned the meeting of the largest depositors group of the bank. This meeting was the chamber of commerce held at building, and these depositors all their funds in agreed to freeze the bank 100 per cent for 90 days. the bank then The directors of decided, upon the recommendation to invoke the of these citizens, law. and freeze 80 per cent of all 90 days. This law deposits for (CONTINUED ON PAGE EIGHT)

2. December 25, 1931 Indian River Press Journal Vero Beach, FL
Article from Indian River Press Journal, December 25, 1931

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Article Text

Proposed Plan for Indian River County Holding Corporation Purpose The of this corporation purpose to release the deposits of the Farmers Bank of Vero Beach and enable bank to resume normal banking service in Indian River County. This purpose is to be accomplished by the corporation purchasing from the bank for cash certain of the bank's assets, the sale which will put the bank liquid condition. The need for such sale of assets by the bank arose because of general community unrest which manifested itself in run upon the bank resulting in drawing the cash reserves low ebb, wherepreviously the bank had suffias, cient to meet all requirements of banking. The good bank's inability to meet this run was due to the general depression which has been evident over Florida for the four years and past the country and world for over the past two years. The Farmers Bank of Vero per Beach was organized in 1927 to the Farmers Bank and replace Trust Company which had failed. The present bank contracted to liquidate certain assets of the previous bank. It was anticipated at that time, July that conditions would gradually improve and that there would be no difficulty in meeting the obligations taken over from the old bank. Instead of conditions improving, the direct contrary has been true, not only locally, but world-wide. In spite of this, and in order to carry out their contract, the stockholders of the Farmers Bank of Vero Beach paid in their original stock price, paid in 100% assessment reserve fund to meet all emergencies and used $50,000 profit to keep things going. The stockholders have in cash put and profits into the Farmers Bank of Vero Beach and have never received one in return. The penny bank has paid more than on the obligations assumed from the old Farmers Bank and Trust including 55% of old Company, individual deposits larger of public deposits. It cent generally recognized that un(CONTINUED PAGE FIVE)