2733. State Bank (Central City, IA)

Bank Information

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

Metadata

Model
gpt-5-mini
Short Digest
b6c73d43281b885e

Response Measures

None

Description

Newspaper articles describe a run on the Central City State Bank (Dec 11, 1926), closure by order of the board and involvement of the state bank examiner, and subsequent declaration of insolvency (Dec 13) with petition to appoint a receiver (Dec 20). OCR minor spellings corrected (e.g., 'in solvent' -> 'insolvent').

Events (3)
1. December 11, 1926 Run
Cause
Rumor Or Misinformation
Cause Details
Assessment on stockholders led to reports the bank was insolvent; malicious gossip and resulting reports sparked withdrawals.
Measures
Bank remained closed by order of the board; state bank examiner placed affairs in his hands and examined condition.
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
Directors closed the bank after several days of withdrawals caused by malicious gossip and insolvency reports.
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