Peoples Bank - Belvidere, IL

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: May 1, 1933*
Location: Belvidere, Illinois (42.264, -88.844)

Metadata

Model: gpt-5-mini
Short Digest: 0e0d6b61

Response Measures

None

Description

OCR-corrected phrasing. Article describes Peoples Bank of Belvidere being taken over/taken by Farmers State Bank and discusses receivership and liquidation/dividend payments after closure (May 1933 referenced). No run or depositor crowding is described; the bank was in receivership/closed and paying dividends under court/state supervision, so classified as suspension leading to closure (receivership).

Events (3)

1. May 1, 1933* Receivership

Newspaper Excerpt: the litigation over the receivership question indirectly proved of to depositors of the Peoples Bank of Belvidere ... the trustee, H. Funderburg, serving the interests of all concerned without fee ... will pay its first dividend ... parcel out the small dividend of 10 per cent.
Source: newspapers

2. May 1, 1933* Suspension

Cause: Government Action
Cause Details: Bank was placed under state receivership and taken over under state banking law; closure effected by state auditor/receiver.
Newspaper Excerpt: the Lake County State Bank which went into receivership several months before the date May, 1933 on which the Peoples Bank, Belvidere, was taken by the Farmers State Bank.
Source: newspapers

3. December 4, 1934 Other

Newspaper Excerpt: After long and tedious wait the depositors ... will pay its first dividend ... the institution will parcel out the small dividend of 10 per cent ... and to assure the depositors that careful and orderly liquidation would give them the remaining [amount].
Source: newspapers

Newspaper Articles (1)

1. December 4, 1934 Belvidere Daily Republican Belvidere, IL

Article from Belvidere Daily Republican, December 4, 1934

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Article Text

WAIT THE HEAR THEY WILL FIRST IS THE ONE WHICH FURNISHED TEST CASE ON POLITICAL INDIRECTLY AIDED CASE. After long and tedious wait the depositors, the Lake CounState Bank North Chicago, which went into receivership eral months before the date May, 1933. on which the Peoples Bank, Belvidere, was taken by the Farmers State Bank. will pay its first dividend. Anmade by ReceivO'Connell that the clos. institution will parcel out the small dividend of 10 per cent. will recalled that the Lake County State Bank the test case determine the right State Auditor Barrett name receivers for all closed state banking institutions. The stockholders and depositors name local man their choice Judge Shurtleff upheld their contention. The, argued that politically appoint receiver would pay himself and his lawyers excessive fees would delay payments to the depositors. While the Illinois supreme court upheld the law placing all state bank under the control of the state auditor the depositors are now The litigation over the receivership question indirectly proved of to depositof the Peoples Bank of Belvidere. Judg holding the law unconstitutional, automatic prevented State Auditor Barfrom further of political bank receivers until the case could reach the supreme delay gave the stockholders and depositors of Peoples Bank time. protect their interests in the action sequently and resulted immediate cash payment all depositors per cent with full assurance receiving the remaining 30 per cent the end period. The Belvidere case said be the only one in the United States, under similar circum stances, hand out in cash much per forthwith and to assure the depositors that careful and orderly liquidation would give them the remaining Incidentally. one the reasons for the fortunate outcome here that the trustee, H. Funderburg. serving the interests of all concerned without fee or even for personal expenses. Several state banks, in charge of State Auditor Barrett's sole receiver, O'Connell, have not paid waiting depositors single penny.