3506. Commercial State Bank (Iowa City, IA)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
February 13, 1925
Location
Iowa City, Iowa (41.661, -91.530)

Metadata

Model
gpt-5-mini
Short Digest
b4c07236

Response Measures

Full suspension

Other: State superintendent requested to take charge and proceed with voluntary liquidation.

Description

Directors decided Feb 13, 1925 not to open the bank and to undertake voluntary liquidation; articles describe continuous withdrawals (a run) and the state superintendent taking charge. The bank is described as defunct by June 1925 and efforts toward reorganization were discussed, indicating it did not resume normal operations (closure).

Events (4)
1. February 13, 1925 Receivership
Newspaper Excerpt
state superintendent of banking be requested to take charge of the affairs of the bank, and to proceed with the liquidation.
Source
newspapers
2. February 13, 1925 Run
Cause
Bank Specific Adverse Info
Cause Details
Continuous withdrawals over more than a year driven by the bank's financial difficulties and inability to liquidate frozen loans.
Measures
Board met and decided not to open; requested state superintendent of banking to take charge and undertake voluntary liquidation.
Newspaper Excerpt
There ha- been slow withdrawn of funds on the part of d) than back to the In reality the has been in the n. of a low run.
Source
newspapers
3. February 13, 1925 Suspension
Cause
Voluntary Liquidation
Cause Details
Directors voted to close the bank and begin voluntary liquidation; requested state superintendent to take charge.
Newspaper Excerpt
Resolved that this Commercial State Bank of Iowa City shall not be opened on Friday, the 13th day of February, 1925, in order that a voluntary liquidation of its business may be undertaken. Resolved that the state superintendent of banking be requested to take charge of the affairs of the bank.
Source
newspapers
4. June 26, 1925 Other
Newspaper Excerpt
Iowa City, June able early reorganization of the defunct Commercial State bank, which failed early in the year was forecast ... About $70,000 in public funds may go to swell the total of $850,000 waivers already signed toward reorganization of the bank.
Source
newspapers

Newspaper Articles (3)
1. February 13, 1925 Iowa City Press-Citizen Iowa City, IA
Article from Iowa City Press-Citizen, February 13, 1925

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Article Text

DIRECTORS DECIDE TO CLOSE BANK AT MEETING LAST NIGHT Issue Statement This Morning; Believe Voluntary Liquidation Of Resources Best Course to Follow; Bank Ex aminer J. A. Heng Now in Charge Facing n decreasing reserve. due to a continuous withdrawal of funds by depositors since the bank's financial difficulties more than a year ago. and handicapped by in ability to Inquidate "frozen loans. directors of the Com. mereial State bank of Towa City at 11 meeting of the board last night decided not to open that institution today. and passed the follow mg formal resolution hich was posted on it- doots, at the Clinton street entrance, this morning: Resolved that this Commercial State Bank of low. City shall not he opened on Friday, the 13th day of Feb rualy. 1925. in order that :1 voluntary liquidation of itbusiness may be undertaken. Resolved that the state superintendent of banking be requested to take charge of the affairs of the bank, and to proceed with the liquidation. lows, was then in charge of the aftairs of the Swisher Ing. after several conte with the board of director action " above tated was determined now in charge of the affairs of the Ity in discussing the cloing of the bank with of representative O. the Press-Citized said Blow Run On Bank "There ha- been slow withdrawn of funds on the part of d) than back to the In reality the has been in the n. of a low run. and sulted in 1b tion of the of amount " did apport that the mank would be able to order to the the action the Capital Stock of $150,000 The amount to of 'I Paul of the thereof at this th the of the ultim Appoint ReceiveUnder the banking law of low? passed by the general as sembly in 1921 the state superin tendent of banking becomes ceiter of all banks under will appointed to duce to a informum the costs of

2. February 13, 1925 Iowa City Press-Citizen Iowa City, IA
Article from Iowa City Press-Citizen, February 13, 1925

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Article Text

which consequently increases the not turns to depositors in likproportion. The closing of the Commercia State bank today is the first ex perfence of this kind suffered by any financial institution in Ion City. It is claimed. for a period or nearly 80 years. Not since the 40'it is said, has a bank in Iowa City closed its doors. until the mi fortune of the Commercial Stat. bank today

3. June 26, 1925 Quad-City Times Davenport, IA
Article from Quad-City Times, June 26, 1925

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Article Text

DEFUNCT BANK NEW Court Decision on Public Funds Encourages; Let Paving Contracts." Iowa City, June able early reorganization of the defunct Commercial State bank, which failed early in the year was forecast by officials night as a result of the decision of the Iowa supreme court in the Stuart bank case. About $70,000 in public funds may go to swell the total of $850,000 waivers already signed toward reorganization of the bank, for which waivers aggregating 000 are necessary. Let Paving Here. Contracts for approximately 13,000 square feet of concrete paving will be by the city council here tonight. Stolen Car Recovered. Word was received by police yesterday that car belong: ing to Pirkl, which was stolen here last Saturday, had been found by police at, Council Bluffs, Ia. The car apparently had been driven that far and deserted.