4273. Savings Bank (Kewanee, IL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
savings bank
Start Date
September 16, 1927
Location
Kewanee, Illinois (41.246, -89.925)

Metadata

Model
gpt-5-mini
Short Digest
9bdde8b6bcaa7d4b

Response Measures

None

Description

Multiple contemporaneous articles (Sept 16–17, 1927) report a slow run on the Savings Bank of Kewanee that forced it to close its doors 'for examination and adjustment' under the state auditor. The run was apparently triggered by adverse bank-specific news: lawsuits connected to the estate of John Fischer and disclosure of large loan activity tied to bank officers. By May 1929 court records and reporting refer to the institution as a defunct/closed bank with a receiver, indicating permanent closure. OCR errors in the first article were corrected (e.g., missing words, names).

Events (3)
1. September 16, 1927 Run
Cause
Bank Specific Adverse Info
Cause Details
Suits and adverse publicity related to the estate of John Fischer and large loan activity by officers are cited as starting the run.
Measures
Bank closed doors for examination and adjustment; state auditor placed a representative (Justin Jaeger) in charge; police kept crowds back.
Newspaper Excerpt
A slow run which has been in progress for week caused the savings bank Kewanee close its doors today
Source
newspapers
2. September 16, 1927 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closure/suspension was due to withdrawals from a slow run tied to legal actions and questions around the Fischer estate and related loans.
Newspaper Excerpt
The Savings Bank of Kewanee... failed to open its doors yesterday. A notice on the door stated that the bank is closed for examination and adjustment.
Source
newspapers
3. May 14, 1929 Receivership
Newspaper Excerpt
the failure of the old State bank of Kewanee, the failure of which led to the trial... Charles Terry, receiver the closed State bank of Kewanee, also occupied the stand. ...the defunct Savings bank of Kewanee. The receiver claims ... heirs of the Fischer estate. The late John Fischer was president of the defunct Savings bank of Kewanee. (Rock Island Argus, 1929-05-14).
Source
newspapers

Newspaper Articles (5)
1. September 16, 1927 Decatur Evening Herald Decatur, IL
Article from Decatur Evening Herald, September 16, 1927

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Article Text

RUN" IN STATE BANK IN KEWANEE COMPELS A CLOSING (By United Sept. "slow run" which has been in progress for week caused the savings bank Kewanee close its doors today for "examination adjustment." Crowds of surrounded bank and police detailed had keep back the called hopes of securing their money, be The crowds had greatly increased by noon hour many with savings deposit the closed bank rushed there hoping to withdraw funds. The savings bank is state bank and the auditor's office at Springfield is full charge. Justin Jaeger been temporarily placed charge State Auditor Nelson today. together with E. chief bank examiner. Nelson he had no statement to make the condition. have not far enough condition learn anything," he said.

2. September 17, 1927 The Belleville News-Democrat Belleville, IL
Article from The Belleville News-Democrat, September 17, 1927

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Article Text

CLOSES; BOOKS ARE EXAMINED Nelson Sends Representative in Charge; President Says Close is Due to Slow Run on Bank. Kewanee, III., Sept. 17.-(INS)The Savings Bank of Kewanee, one of the oldest financial institutions in this district failed to open its doors yesterday. Officials of the state auditor's office are in charge. A notice on the door stated that the bank is "closed for examination and adjustment." Oscar Nelson, State Auditor while here today placed Justin Jaeger of his office in charge. W. E. Gould, president of the institution, issued the following statement: "We are closed because of withdrawals. a slow run on the bank having been in progress the last ten days. We had plans for a reorganization but they failed to materialize. We hope to reopen in 30 days. My opinion is that none of the depositors will lose anything. For more than 25 years John Fisher W. E. Gould and S. D. Birge have been associated in loan business exclusive of the bank's affairs, although all were listed as officers of the institution. New York insurance companies loaned more than a million annually through them, it was said. Fisher died recently, leaving his wife sole heir and through the probate court holders of notes and trustees have been filing suits aggregating $3,000,000 against the Fisher estate, of which the personal property is over $1,000.000, figures having been set on the real estate. These suits, it is said, started the run on the bank. If the notes and the securities prove good, it is believed neither the estate nor the bank will lose. The bank on June 30 last showed resources and liabilities of $1,473.633, deposits of $1,199,861. and loans and discounts of $1,169,716.

3. September 17, 1927 Sterling Daily Gazette Sterling, IL
Article from Sterling Daily Gazette, September 17, 1927

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Article Text

SLOW RUN FORCED KEWANEE BANK TO CLOSE ITS DOORS Press.) A. "slow run" which has been in progress for week caus. ed the Savings Bank of to close its doors Friday for "examCrowds of depositors surrounded the bank and police were detailed to keep back the depositors. who bad called in hopes of securing their

4. September 17, 1927 The Urbana Daily Courier Urbana, IL
Article from The Urbana Daily Courier, September 17, 1927

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Article Text

'SLOW RUN" CLOSES BANK (By United Press) A "slow run" which has been in progress for a week. caused the Savings bank of Kewanee to close its doors. Friday for "examination and adjustment Crowds of depositors surrounded the bank and police were detailed to keep back the depositors who had called in hopes of securing their mon ey, only to be turned away The crowds had greatly increased by the noon hour when many workingmen with savings on deposit in the closed bank. rushed there. hoping to with draw funds The savings bank is a state bank and the auditor offi Springfield Auditor Nelson who is here today together with E E Nicholson chie bank examiner Nelson said tion We have not gone far enough into its condition to learn hing he said W E. Gold president of the bank. issued the following statement We are closed because of with drawals A slow run on the bank has been in progress for the last ten days. We had plans for re-organiza tion week ago. but they did not ma terialize We hope to re-open within 30 days to my opinion no depositor will lose anything Tweedy and Mrs W Miles this week at Paxton on Wednesday and and Wednesday evening Harry and Earl Stephens called on friends at Cham paign on Tuesday Mrs Lois Hendricks and daugh :er Robert Scripter and Harvey Zehr of Toledo, 0 are the guests of Mr Mr. Ashley from with the have Mr and Dan former's Mrs Mich N Rasmussen and family will be Inesuay evening at par business meeting will be motored heer on Mr. Mrs Harry Pettibon and Mr and Mrs on Monday year. returned home on Thursday Mrs Ray and Mr and Chicago on Sunday and spend day with friends Thalman of at her avenue to the on Thurs he day the of the Methodist of the M The

5. May 14, 1929 The Rock Island Argus Rock Island, IL
Article from The Rock Island Argus, May 14, 1929

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Article Text

WINS BATTLE BANK EXHIBITS Documents Entered Trial Long Legal Arguments. (Special Argus.) Cambridge, May vicscored for the proseculate yesterday in circourt here when Judge Charles Searle ruled to admit documents regarding the condition the old State bank of Kewanee, the failure of which led to the trial William E. Gould and Sam Burge, officials. long battle has been by the state attempt to have these papers evidence. cashier of the Peoples State bank of the witness of the day. Charles Terry, president bank receiver the closed State bank of Kewanee, also occupied the stand. Judge Wright of Toulon, county judge of Stark county and receiver the investment company of Fischer, Gould Burge, was called the witness chair few minutes before court adjourned day and resumed the stand this morning. Depositors Want Estate. May suit whereby depositors of the defunct Savings bank of are manding that heirs of the Fischer estate give their Edgewater Beach Chicago, expectto be referred Chancery Bartlett Gray of Geneseo by Judge Searle this Suit for of this valuable property made 1928 between Ottawa, first part, Charles Terry, ceiver of the Savings bank of KeThe receiver claims fulfilled heirs of the Fischer estate. The late John Fischer was president of the defunct Savings bank of Kewanee. Scott, Bancroft MacLeish, Chicago, represent the Fischers and Cummings and James Andrews, represent the receiver.