4119. First National Bank (Blue Mound, IL)

View Charter #9530 on SPMC

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: national
Bank ID: 9530
Charter Number: 9530
Start Date: March 1, 1926*
Location: Blue Mound, Illinois (39.701, -89.123)

Metadata

Model: gpt-5-mini
Short Digest: 604c41a5

Response Measures

Full suspension, Books examined

Other: Significant embezzlement/defalcation discovered; receiver appointed and audit conducted.

Receivership Details

Depositor recovery rate: 41.4%
Date receivership started: 1926-03-27
Date receivership terminated: 1931-04-15
OCC cause of failure: Fraud
Share of assets assessed as good: 37.9%
Share of assets assessed as doubtful: 26.6%
Share of assets assessed as worthless: 35.5%

Description

The articles describe rumors that prompted heavy withdrawals (a run) in March 1926, followed by the cashier's suicide and the bank closing/suspending business and appointment of a federal receiver. Substantial embezzlement/defalcation was discovered; the bank remained in receivership/closed. OCR errors in the clippings (missing words, garbled lines) were corrected where obvious (e.g., references to 'receiver', 'First National Bank of Blue Mound', and dates in March 1926).

Events (5)

1. September 4, 1909 Chartered

Source: historical_nic

2. March 1, 1926* Run

Cause: Rumor Or Misinformation
Cause Details: Newspaper states 'Rumors Prompted Run' in March 1926; depositors withdrew amid rumors about the bank's condition.
Measures: Directors proposed merger with State Bank to forestall receivership; auditors/receiver later took charge.
Newspaper Excerpt: Rumors Prompted Run statement, March the suspended busi the alleged dishad policy been the loaned more than of its deposits, that, the last fast loans totalmade, leaving about deposit.
Source: newspapers

3. March 18, 1926 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Closure followed the cashier's suicide and discovery of large defalcations/irregularities in the bank's books (missing bonds, false time certificates, large loan excesses).
Newspaper Excerpt: First National Bank of Blue Mound, which closed its doors following the suicide of the cashier, ...
Source: newspapers

4. March 27, 1926 Receivership

Source: historical_nic

5. March 27, 1926 Receivership

Newspaper Excerpt: W. Nay Boggess, ... appointed receiver of the First National bank Blue Mound. Notice my appointment came ... expected to take charge the bank ... Mr. McCreight ... checked over to him all records and books of the business. (Mar 28/30 articles).
Source: newspapers

Newspaper Articles (8)

1. March 28, 1926 Herald and Review Decatur, IL

Article from Herald and Review, March 28, 1926

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Article Text

in $20,000 Nearly From Bonds Missing Bank in Blue Mound Further Irregularities Believed to Exist in Closed InMan Is Appointed Receiver Saturday BLUE MOUND, March irregularities, involving a known shortage of more than $20,000 have been found in the accounts of the First National Bank of Blue Mound, which closed its doors following the suicide of the cashier, BANK RECEIVER Terry, days ago. Sam Bechtel, living here, Saturday night stated that he had been unable in visit to the bank, find bonds to the to amount that left Terry safe keeping known that others left their securities with the cashier been unable find them since the closing of the bank. Find Certificates Out stated persons closely connected bank that has been series time tificates, that in the ordinary course business would not have been reached five years, been issued depositors not entered upon bank's books. From same source is learned that the checking accounts deposithe bank been upon their their names being forged upon false checks. Exact Amount Indefinite Other but their exact nature not disclosed. The exact amount the known, but been estimated to Until the affairs the bank further gone into, those will make no statements. The books the bank were found in irregularities those that would not show up on the books when they were entered by the The pass books the depositors balance when were returned, but the books bank showed that the accounts been checked upon, do agree the In time certificates being used the bank closed were of the series that certificates the series of had been issued no them ever been made in the books the these involved more than $1,000. The total amount of money taken and receipted by such certificates has been determined. Bechtel's bonds were registered Liberty bonds. Persons close the said that there possibility that bonds may been put away for safe and have not been found. But they been from bank disposed thought that could traced, since they registered. Had Planned Merger cashier the bank, himself death as he sat rocking chair back room the bank the night of March 18. conference officials First National Bank and the State of Blue Mound, catur, the to bank carry his intention killing himself. of the bank had been going badly, deposits falling off and becoming heavy. To forestall receivership, directors proposed merger the State Bank. the bank conferwhich Terry walked was discuss the merger. His death cluded further action in that rection subsequent discoveries brought receivership. Nay Boggess is Named Receiver Attorney W. Nay Boggess Saturday notice his as receiver of the First National bank Blue Mound. "Notice my appointment came me explained torney Boggess "advising that was expected to take charge the bank that my commission and structions the bank. Of course expected to be appointfor had been asked would accept the More than that know about the (Continued on page 2)

2. March 30, 1926 Clinton Daily Public Clinton, IL

Article from Clinton Daily Public, March 30, 1926

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FIND ADDITIONAL DISCREPANCIES IN MOUND BANK Blue March tional discrepancies in the affairs of the First National bank of Blue Mound, now in the hands of ceiver, were discovered Monday More bonds valued at $2,500. missing, and shortage of $800 in the checking account of one of the bank's customers was found. W. Nay Boggess, Decatur. appoint ed receiver of the bank, officially took charge Monday when H. McCreight, federal bank aminer, checked over to him all rec ords and books of the business It was stated by Mr McCreight Monday that the loss on bonds now amounts to worth of Liberty bonds of the second, third and fourth issue and $6,000 worth of other bonds. These two amounts, with the $10,000 worth of false time certifi cates issued. brings the known amount of the defalcations to $46, 000. What amount of money that was taken by checking on the ao counts of the bank's can not be determined until the pass books have all been balanced and gone over. When the depositors have checked up on their accounts, the full amount will be known Monday, was stated here that the loss in the bank and the amount of money owed by Mr. Terry on notes would probably amount to between and $75,000 As soon as recast of the bank's condition has been made and to the comptroller of currency. the work of collecting for the bank will begin. There are about $165,000 loans outstanding. The borrowed money liability of the bank $55 000. secured by about $100,000 worth of the best paper taken on loans. full assessment upon the stockholders will probably be made soon. which will bring in an amount equal to the stock outstanding As help in meeting the claims of the creditors of the bank the receiver can collect upon the bond given by Mr. Terry He was bonded in the sum of $5,000. about of the by the National Surety company of New York AT SEA March ashes of Captain R. D. Hasbrook who died last week will be burled at sea April from the Battleship California flagship of the fleet and which he commanded. The navy department authorized the burial at sea at the request of the widow

3. March 30, 1926 Herald and Review Decatur, IL

Article from Herald and Review, March 30, 1926

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Further Discrepancies Discovered in Books of Closed Blue Mound Bank Defalcation Reaches Accurate Known Figure Available on Indebtedness of Cashier Who Killed Self (By MOUND, 30. BLUE discrepancies in of the First National affairs Blue Mound, now in bank of the hands of receiver, were discovered Monday More bonds valued $2,500. are missing, at $800 in the checkone of the bank's account was found. Decatur, Nay the bank, officially receiver afternoon when charge bank examchecked to him all records books the Mr. Bogto hazard how long would timate straighten the bank, the last possibly year. Depositors Come First probably take week days of the Mr. Bog. the gess the will be phase right the started upon the deposiwill taken for is for the Mr. Boggess will try get everything we them." $46,000 Now Known Total Mr. Monday that the on bonds amounts of Liberty bonds the second, third and fourth $6,000 worth other bonds. These two with the $10,000 worth false time certifiissued, brings amount of to What of money that taken checking on the counts the determined until the pass books have been balanced over. When depositors their accounts, up amount be known. that the loss the bank and the of owed by Mr. mount between and To Collect Bond As soon the bank's condition made the work bank will begin. loans The money the best full assessprobmade which will bring equal to the stock outhelp in meeting the claims of bank the collect the bond given He bonded the about the defalcation. the National Surety company Claimants days in which against the bank, Mr. Boggess going to collect Nothing done going the bank Mr. Creight Mr. Boggess straightening out the

4. April 1, 1926 Herald and Review Decatur, IL

Article from Herald and Review, April 1, 1926

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BEGINS AUDIT DEFUNCT BANK Receiver Starts Boggess Efforts to Clear Blue Mound Affairs Auditors, under the direction of Receiver W. Nay Boggess, began checking the books and records of the closed First National bank Blue Mound on Wednesday. Receiver Boggess, who took charge of the bank on Monday, arrived in Blue Mound early Wednesday morning. started to work with the and at once auditors. The complete audit of the books and records, being made to ascertain whether there are discrepancies in addition to those of $46,000 already expected to take week or 10 days. In Greece foreign tourists pay for the privilege of museums and places of old

5. April 18, 1926 Herald and Review Decatur, IL

Article from Herald and Review, April 18, 1926

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Further Search Reveals No More Concealed Bonds every nook and cranny of the First National bank of Blue Mound has Mr. been searched thoroughly, no more missing bonds it was announced at the bank on Saturday. search at the bank followed finding week worth the of bonds Nay receivof the The o'clock were part of $30,000 found The have after suicide believed the eashier, Terry. The bonds that were recovered earthed in vault underneath worthless The belief that papers. securities had been scrubbing record of them had since retiring kept, despite the fact that they be truder longed While directing the search for had bonds at the bank, Boggess came also gave his attention to the audit the bank's books, being conducted by experts, including Ralph former assistant cashier of the institution. head, Thus far, It was said, the audit has failed to disclose with the books, than the dis crepancies found first super ficial The mud, originally $46,000 but were were reduced the intruder the bonds unearthed by Receiver sailant Balancing of depositors' passbooks 20 years has been the bank. This kerchiew work, expected, require overcoat more than month. The bank had missing. approximately 600 depositors.

6. May 16, 1926 Herald and Review Decatur, IL

Article from Herald and Review, May 16, 1926

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Hold Excessive Loans as Primary Reason for Blue Mound Bank Crash W. Nay Boggess, Receiver for Closed Institution, Estimates Losses of Organization to Be About $35,000 Excessive loans, none too well and not the $33,500 discrepanthe door of the cashier suicide, responsible for the closing the First National bank of Mound, revealed in the bank's condition statement Saturday W. Boggess, receiver. connection the statement, by one first the bank until August. explained, ber of the loans when bank by in cash Rumors Prompted Run statement, March the suspended busithe alleged dishad policy been the loaned more than of its deposits, that, the last fast loans totalmade, leavabout deposit. had the instituShow $38,000 Excess Persons to the bank situation Terry foresaw fallure. dreading books would suicide as preferable statement of condition issued excess Really in the Hole However statement, being does into allow loans. The approxithought worth bonds the the loans Adding other assets totalling gives reported from $142. leaves Thus bank, real and apparent"in the complete of the issued by Washfollows: on Liabilities Assets 37,330.00 18,500.00 Total the member the by receivership follows: Explain Statement bills of loaned by bank, the Institution holds notes. money possible collected before first the dividend will be paid in hand'. self Only actual than totalling $15.bonds held up bank, village warrants and overdrafts. amounting made up of deposits totalling small around Christmas savings funds certificates of deposit. secured by the items the owned banks. will be that $37,330 outside and another. the First National Blue Mound to other banks

7. July 3, 1926 Herald and Review Decatur, IL

Article from Herald and Review, July 3, 1926

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TAXPAYERS TO DECIDE COLLECTIONS Mound Residents Claim Paid to Agent of Money County Treasurer IS NOW INSOLVENT First National Bank Closing Mound last March had its Friday residents Mound the court before objections to of land County paying the Blue Samuel and Emma told the court they National Bank Blue amount paid totalled about Draft Dishonored Cashier Terry taxaccording the payers the for sent duplibank for county had reachTerry's suicide The postponed involved that Decatur bank First Bank Blue Mound had This Blue Mound off-setting Mound dishon- Claim Terry Agent and hold bonafide signed by Cashier since and cashier responsible for after the First Bank to been that gave collect Blue Mound estabCashier Terry. Nay Blue County the be serving demand the Blue tax money.

8. October 28, 1926 Herald and Review Decatur, IL

Article from Herald and Review, October 28, 1926

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SURETY FIRM PAYS CASHIER'S Receiver's Force at Blue Mound Bank Unable to Find Trace of Bonds COLLECT ASSESSMENTS A surety bond of $5,000 cashier First National bank of Blue has been by the National Co. New York. stated Wednesday by Boggess, the bank. Fedbank soon of shortages totalling The small the in of busiby the bank while going the ceivership the total learned, Mr. Boggess "The bank before closed had been doing of least $200,000 annualTerry bonded only $5,000." No Trace Of Money Heavy loss in small grain crops in has collections bank, the receiver dwindled progressively banks, the numbering 39 holding capital stock have paid of their 100 per cent stock asMethods believed to have been used Terry funds the bank to come the said, but thus far inkling of where the money went discovered. more prothan disposition the the cashier to have taken. The for payment of first the the bank Blue said. The the degree, the success of the crop.