First National Bank - Lebanon, IL

Bank Information

Episode Type: Run Only
Bank Type: national
Bank ID: 12366
Charter Number: 12366
Start Date: April 29, 1932
Location: Lebanon, Illinois (38.604, -89.807)

Metadata

Model: gpt-5-mini
Short Digest: 3619b3e4

Response Measures

Accommodated withdrawals, Books examined

Other: Former cashier indicted; federal investigators spent eight weeks examining bank records.

Description

Former cashier sold about $70,000 of practically worthless bonds and made false entries; when discovered he resigned April 29 and a run was averted by the bank producing sufficient cash. No suspension or closure mentioned.

Events (2)

1. May 1, 1923 Chartered

Source: historical_nic

2. April 29, 1932 Run

Cause: Bank Specific Adverse Info
Cause Details: Discovery that cashier Charles D. Vernor sold about $70,000 of practically worthless bonds and made false entries; he resigned April 29.
Measures: Bank produced sufficient cash to meet all demands (averting the run).
Newspaper Excerpt: A run on the bank was averted when the institution produced sufficient cash to meet all demands.
Source: newspapers

Newspaper Articles (1)

1. October 14, 1932 The Belleville News-Democrat Belleville, IL

Article from The Belleville News-Democrat, October 14, 1932

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Article Text

FORMER HEAD OF LEBANON'S BANK INDICTED Charles D. Vernor Who Resigned After Admitting Sale of Worthless Bonds Arrested at Beaumont. Charles D. Vernor, former cashier of the First National Bank of Lebanon, was arrested at Beaumont, Texas, Sunday on an indictment returned by the Federal Grand Jury at Danville on September 9, according to word received in Lebanon today. He is charged with making false entries in the bank's records. Vernor has been liberated on bond of $15,000, it was learned. A hearing was held before Commissioner Morris of Beaumont last Wednesday and he was ordered returned to Illinois to face charges. Vernor resigned his position with the bank on April 29 after he had admitted selling about $70,000 worth of practically valueless bonds over period of three years. The bank however, had no connection with the sale. It is against the rules of the Lebanon financial institution to sell bonds without the approval of the officers and when Vernor's actions were discovered he resigned and moved out of Lebanon before the citizens were aware. A run on the bank was averted when the institution produced sufficient cash to meet all demands. Vernor and his wife went to Nashville and later went to Beaumont where Mrs. Vernor's brother is an official of an oil company. Federal bank investigators spent eight weeks at the Lebanon bank going over the records. The result of their work became known with the return of the indictment and the issuance of the bench warrant. The indictment consists of two counts and is punishable by a sentene in the Penitentiary if the defendant is convicted.