4305. Peoples State Bank (Loraine, IL)

Bank Information

Episode Type
Run โ†’ Suspension โ†’ Closure
Bank Type
state
Start Date
May 1, 1930*
Location
Loraine, Illinois (40.154, -91.222)

Metadata

Model
gpt-5-mini
Short Digest
d14185ff08b8c459

Response Measures

None

Description

Article (Chicago Tribune, 1930-05-18) reports a run the prior week that reduced deposits and that the bank failed to open this morning (suspension) on 1930-05-17, triggered by the closing of the Farmers State Bank at Mendon (local bank contagion). A 1933 article (Herald & Review, 1933-01-28) names Marion Forsthove as receiver and describes a receiver-ordered sale of assets, indicating the bank remained closed and went into receivership. OCR errors corrected (e.g., Loraine, III. โ†’ Loraine, Ill.; Peoples State bank standardized to Peoples State Bank).

Events (3)

1. May 1, 1930* Run
Cause
Local Banks
Cause Details
Run was triggered by the closing of the Farmers State Bank at Mendon, six miles away, which prompted deposit withdrawals at Peoples State Bank.
Measures
None specified beyond deposit reductions mentioned in article.
Newspaper Excerpt
A run on the bank last week ... caused the deposits of the Loraine bank to be reduced.
Source
newspapers
2. May 17, 1930 Suspension
Cause
Local Banks
Cause Details
Bank failed to open following the recent run that reduced deposits; the run itself was set off by the nearby Farmers State Bank closing.
Newspaper Excerpt
The Peoples State bank of Loraine, Ill., failed to open this morning.
Source
newspapers
3. January 28, 1933 Receivership
Newspaper Excerpt
Marion Forsthove of Quincy, receiver Peoples State bank Loraine, ordered the sale on the farm near Big Neck; Auction... -- receiver ordered sale (Herald & Review, 1933-01-28).
Source
newspapers

Newspaper Articles (2)

Article from Chicago Tribune, May 18, 1930

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Article Text

RATHER DEATH BY HER OWN HAND TO LIFE'S REVERSES Despondent over the failure of dress shop project, Miss Dorothy Ellen Brown, 32 year old daughter of A. G. Brown, architect for the Pure Oil company, shot herself in the head with her father's revolver yes. morning in the family home, 460 Oakdale Glencoe. She was was dead when found. Her despondency however, dated as far back as her war marriage with young soldier- union annulled five days after its inception, her parents told the police. The identity of her husband was never made public. She had attempted to achieve financial independence by starting the dress shop, her father said, but had been unable to collect from her debtors and had several creditors. The family would have been willing to aid her but she wished no such assistance, it was said. Mrs. Brown and a younger sister, Eloise, 18 years old, had no hesistancy in leaving Miss Brown yesterday morning while they shopped. She was seemingly cheerful after visit from friends Friday. Upon their return they found the door locked and once inside the house, discovered the young woman dead on her bedroom floor. Chief of Police Jake Rudolph of Glencoe was called from his home next door by the hysterical mother and younger sister 2 More Illinois Banks Forced to Close Doors fourth Henry county bank to fail in three years was closed today when State Auditor Oscar Nelson took charge of the Farmers State bank at Orion. Frozen assets was given as cause for the crash. Consolidated Bank Closes. Quincy, III., May 17.-[Special.]The Peoples State bank of Loraine, III., failed to open this morning. It was organized six years ago by a consolidation of two banks. A run on the bank last week, caused by the Farmers State bank closing at Mendon, six miles away caused the deposits of the Loraine bank to be reduced.


Article from Herald and Review, January 28, 1933

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Article Text

Illinois Join Opposition Mortgage cents bid and cents farm chattel mortgage Thomas Nelson's farm forcing discontinuance of the auction. The low bids were tactics of the widespread Midwest movement against mortgage and foreclosure sales, appearing for the first time Illinois. Three hundred men and women forced adjournment Marion Forsthove of Quincy, receiver Peoples State bank Loraine, ordered the sale on the farm near Big Neck; Auctioneers Alpha Witt and George Hendricks opened First set harness. brought bid of $11. second set brought offer wagon commanded 50 cents the manure spreader quar- Forsthove, Witt, Hendricks Nelson withdrew the house conferred. The was called Bidders apparently intended to the chattels back to Nelson.