Citizens Savings Bank

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: savings bank
Start Date: May 13, 1921
Location: Anita, Iowa (41.445, -94.765)

Metadata

Model: gpt-5-mini
Short Digest: 926c2f4b

Response Measures

Borrowed from banks or large institutions, Capital injected, Full suspension

Other: Reorganization planned to take over assets/liabilities, avoiding receivership.

Description

Depositors made heavy withdrawals leading the bank not to open May 13, 1921. Cause was weak farmer paper and low crop prices (bank-specific asset quality problem). A reorganization plan announced May 26, 1921 would create a new bank to take over assets/liabilities and avoid receivership, indicating reopening/reorganization.

Events (3)

1. May 13, 1921 Run

Cause: Bank Specific Adverse Info
Cause Details: Heavy withdrawals triggered by inability to realize on large amount of farmers' paper; low crop prices prevented farmers from liquidating loans, weakening bank assets.
Measures: Other local banks advanced funds to assist; officials decided not to open; promised depositors would be paid 100 cents on the dollar.
Newspaper Excerpt: The last few days there has been a steady withdrawal of funds by depositors.
Source: newspapers

2. May 13, 1921 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Slow collections and inability to maintain a sufficient supply of cash due to farmer paper that could not be realized; drain from withdrawals too great despite help from other banks.
Newspaper Excerpt: The Citizens Savings bank of Anita did not open its doors for business this morning.
Source: newspapers

3. May 26, 1921 Other

Newspaper Excerpt: Reorganization of the Citizens' Savings Bank of Anita which closed its doors on the morning of May 13, is seeming assured... The new bank would take over the liabilities and assets of the Citizens' bank, thus doing away with the necessity of a receivership and also assuring the depositors of the Citizens' bank 100 cents on the dollar.
Source: newspapers

Newspaper Articles (6)

1. May 14, 1921 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, May 14, 1921

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Article Text

Heavy Withdrawals Cause Anita Bank to Suspend Operations Atlantic, Ia., May 13.-(Special Telegram.)-The Citizens Savings bank of Anita did not open its doors for business this morning. Slow collections made it \impossible for the institution to Maintain a sufficient supply of cash to meet its requirements. The last few days there has been a steady withdrawal of funds by depositors. Collections were not ample to replace there, it is said. The depositors will be paid 100 cents on the dollar, a statement ty President Byron D. Forhsay said. The bank carries a large amount of paper given by farmers. Because of low prices the latter have been unable to liquidate their indebtedness. This crippled the bank. President Byron D. Forshay has been engaged in the banking business at Anita for the last 30 years. D. R. Forshay, son of President Forshay, is vice president, and Ed L. Newton, former member of the legislature, is cashier. The capital of the Citizens Savings bank is $50,000, with a surplus of $25,000. Deposits which were $700,000 a year ago have fallen to $450,000, it is said.

2. May 19, 1921 Audubon Republican Audubon, IA

Article from Audubon Republican, May 19, 1921

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Article Text

ANITA BANK IS CLOSED However Bank Will Pay All Claims in Full At An Early Date. The citizens, Savings bank of Anita did not open its doors for business Thursday morning. Slow collections made it impossible for the institution to maintain a sufficient supply of cash to meet its requirements Within the last few days there has been a steady withdrawal of funds by depositors. Collections were not ample to replace these, it is said. "The depositors will be paid 100 cents on the dollar," was the statement of President Byron D. For shay. The bank carries a large amount of paper given by farmers. Because of low prices the latter have been unable to liquidate their indebtedness. This crippled the bank. Within the last two weeks other banks came to the assistance of the Citizens' Savings bank and advanced it money. The drain from withdrawal of deposits was too great however. Wednesday night the officials and directors decided not to open the following morning. The bank will liquidate to the last dollar, is the statement of the officials It has sufficient paper outstanding to do this. The president, Byron D. Forshay, has been engaged in the banking business for the last thirty years. He originally was in business with Senator James E. Bruce and the late Senator John C. Voorhees. D. R. Forshay, son of President Forshay, is vice president. Ed L. Newton, former member of the legislature, is cashier. The capital of the Citizens, Savings bank is $50,000, with a surplus of $25,000. Deposits which were $700,000 a year ago, have fallen to $450,000, it is said

3. May 21, 1921 Iron County News Hurley, WI

Article from Iron County News, May 21, 1921

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Article Text

Domestic The Citizens' Savings bank at Anita, In., capitalized at $50,000 and in existence for 30 years, failed to open its doors, due to inability to realize on farmers' securities, Benny Kauff, suspended Glant outfielder, was acquitted by a jury in General Sessions at New York on an indictment charging him with the larceny of an automobile December 8, 1919. Plans are under way for reorganizing the International Fur exchange at St. Louis, according to a formal statement from a committee of bankers representing the creditors of the concern. . Mrs. Jake L. Hamon, widow of the Oklahoma oil millionaire and politielan, is under the care of physicians in her home at Chicago, suffering from a nervous collapse. Six persons were killed when 12 freight cars piled up In a ditch at Eagle Flat, Tex, on the Texas and Pacific railway, according to a report made by train crews, * Miss Mary White, sixteen, only daughter of William Allen White, author and publisher of the Emporia Gazette, died of injuries received in a fall from 8 horse at Emporia, Kan. Her skull was fractured. A complete pardon was granted by, Governor Blaine at Madison, Wis., to John Dietz, restoring freedom to the "defender of Cameron dam" on the tenth anniversary of his conviction. First odds quoted on the big fight of July 2 between Dempsey and Carpentier were posted at Paris, Seven to four in favor of Dempsey were the figures. Officials of the International Fur Exchange at St. Louis announced a deficit of $9,202,437 in the finances of the establishment. A circular containing this information is being mailed to all stockhoblers. Sergt. Algoti Bloomquist and C. E. McCullough, cotton broker of Oklahomn City, were killed and Sergt. B. Grogan, Atlanta, Ga., was probably fatality injured in an airplane accident near the military reservation at Fort Bill, Okla

4. May 21, 1921 Iron County News Hurley, WI

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Article Text

Domestic The Citizens' Savings bank at Anita, In., capitalized at $50,000 and in existence for 30 years, failed to open its doors, due to inability to realize on farmers' securities, * Benny Kauff, suspended Glant outfielder. was acquitted by a jury in General Sessions at New York on an indictment charging him with the larceny of an automobile December 8, 1919. . Plans are under way for reorganizing the International Fur exchange at St. Louis, according to a formal statement from a committee of bankers representing the creditors of the concern. . * Mrs. Jake L. Hamon, widow of the Oklahoma oil millionaire and politiclan, is under the care of physicians in her home at Chicago, suffering from a nervous collapse. Six persons were killed when 12 freight cars piled up in a ditch at Eagle Flat, Tex, on the Texas and Pacific railway, according to a report made by train crews, * Miss Mary White, sixteen, only daughter of William Allen White, author and publisher of the Emporia Gazette, died of injuries received in a fall from 8 horse at Emporia, Kan. Her skull was fractured. A complete pardon was granted by, Governor Blaine at Madison, Wis., to John Dietz, restoring freedom to the "defender of Cameron dam" on the tenth anniversary of his conviction. * First odds quoted on the big fight of July 2 between Dempsey and Carpentler were posted at Paris, Seven to four in favor of Dempsey were the figures, Officials of the International Fur Exchange at St. Louis announced a deficit of $9,202,437 in the finances of the establishment. A circular containing this information is being mailed to all stockholders, Sergt. Algoti Bloomquist and C. E. McCullough, cotton broker of Oklaho ma City, were killed and Sergt. B Grogan, Atlanta, Ga., was probably fatality Injured in an airplane accident near the military reservation at For gill. Okla

5. May 26, 1921 Audubon Republican Audubon, IA

Article from Audubon Republican, May 26, 1921

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Article Text

BANK TO BE RE-ORGANIZED Anita People Have Full Confidence in Bank Officials that Depositors Will Not Lose. Reorganization of the Citizens' Savings Bank of Anita which closed its doors on the morning of May 13, is seeming assured. Two-thirds of the capital of $75,000 proposed for the new bank has already been subscribed. The remainder will be subscribed at once, it is said. The reorganization is the result of a meeting held at the Masonic temple in Anita Saturday afternoor and which was attended by several hundren people, including stockholders and depositors of the Citizens' bank. Among those present were representatives of the state banking department. The reorganized bank will have working resources of $205,000, under the tentative plans of reorganization. This would include a $75,000 capital; $50,000 representing the stock liability of the stockholders of the Citizens' bank, and $80,000 capital and surplus of the latter. The new bank would take over the liabilities and assets of the Citizens' bank, thus doing away with the necessity of a receivership and also assuring the depositors of the Citizens' bank 100 cents on the dollar. Stockholders and depositors of the Citizens' bank are giving the plans for reorganization unstinted support. They are subscribing liberally to the capital of the proposed new bank. "There is not the slightest doubt but what the new bank will be a go," it was said. President Forshay, leaving his sick bed, appeared before the meeting Saturday afternoon and explained the situation as regards the closed bank. For the last few days Mr. Forshay has been confined to his home by a nervous breakdown.

6. July 31, 1927 The Des Moines Register Des Moines, IA

Article from The Des Moines Register, July 31, 1927

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Bank Situation Improves CLOSED IOWA BANKS NOT IN TABLE to 1923. bank failures were rare and when a state supervised bank occasionally suspended business receiver for it was appointed by district court. as receivers are still appointed for private and national banks. No systematic records were kept by any state official, such as are now kept, for banks which failed prior to 1923. hence the information about the state supervised banks listed here is not readily available as for the banks closed after 1922. For the same reason information concerning closed and private banks was not available for the table. The national list of banks closed but not in the table, from 1918 to June 30, 1922, as follows: far been held at a net cost of receiver confident that this loss more than offset by receipts from sales properties advantageous times and the report states that had not the advances been made the assets would have been lost 1918. STATE BANKS. Name of bank. Capital. Date closed. Town. Conway Savings 20,000 May, 191: Conway PRIVATE Cedar Cedar Bank 10,000 Dec., 1918 YEAR ENDING JUNE 30, 1920. STATE BANKS. Carroll Carroll T. 50,000 Apr. 1919 Decatur Decatur State Savings 25,000 May 1919 Hartley Iowa Savings 30,000 June 27, YEAR ENDING JUNE 30, 1921. STATE BANKS. Citizens Savings 50,000 May 13, 1921 Anita Braddyville Farmers Savings 25,000 Nov. 5, 1920 Clarinda Clarinda T. 75,000 Dec. 1920 bElliott Elliott Savings 25,000 June 1921 Farmers Savings 15,000 Mar. 1921 Harper Marathon Marathon Savings 40,000 April 1921 Onawa Citizens State 30,000 April 1921 Rome Rome Savings 12,500 Mar. 23. 1921 Sioux City Union T. 100,000 Feb. 1921 Ulmer Farmers Savings 10,000 Mar. 1921 PRIVATE BANKS. July 1920 Jefferson City Bank Emmet County bank Dec. 1920 Armstrong Percival Percival bank Dec. 28, 1920 Davis City Valley bank April 11, 1921 Lawton Farmers bank April 14, 1921 NATIONAL BANKS. Emmetsburg National March 1921 Emmetsburg Milford National 25,000 April 13, 1921 First National 50,000 April 14, 1921 Marcus as Citizens*State. bReopened as Farmers State. cReorganized as Security National. YEAR ENDING JUNE 30, 1922. STATE BANKS. Bevington Bevington Savings 10,000 Citizens Savings 15,000 1921 Curlew Harris Savings 30,000 Oct. 1921 Harris Farmers Savings 15,000 Sept. 1921 aLamont Massena Savings 20,000 April 1922 bMassena Liberty North Liberty Savings 10,000 Aug. 1921 North Melcher State 25,000 May 20. 1922 Melcher State Bank of Oto 25,000 Dec. 1921 50,000 Nov. 1921 Sioux City American Savings Swaledale Savings 15,000 Sept. 14, 1921 Swaledale aReopened as Farmers State. bReopened as Massena State. PRIVATE BANKS. Grafton Farmers Exchange Bank Sept. 19, 1921 NATIONAL BANKS aCherokee Security National 50,000 Feb. 1922 bJefferson Farmers and Merchants 40,000 June 30, 1922 bReopened.