State Bank - Lexington, IL

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: October 31, 1932
Location: Lexington, Illinois (40.642, -88.785)

Metadata

Model: gpt-5-mini
Short Digest: cd827248

Response Measures

Partial suspension

Other: Major depositors executed 100% waiver agreeing to leave funds on deposit for 26 months; mayor proclaimed a holiday to discourage runs and community volunteers solicited signatures.

Description

Article (Lexington Unit-Journal, 1932-11-03) describes preventive actions to avert a run after the local State Bank did not open. Peoples Bank did not permanently suspend — directors secured a mayoral holiday to prevent withdrawals, solicited 100% waivers from major depositors overnight, and reopened Tuesday. Cause appears to be contagion/fear from another local bank's precautionary closure (local_banks). Date in article refers to 'Monday' before publication; I record the event as late Oct 1932 (article dated 1932-11-03; the referenced Monday was 1932-10-31).

Events (1)

1. October 31, 1932 Run

Cause: Local Banks
Cause Details: Fear and contagion after the local State Bank did not open its doors as a precaution, prompting concern depositors might withdraw funds from Peoples Bank.
Measures: Directors secured a mayoral proclamation of a holiday to prevent withdrawals; volunteers obtained 100% waivers from major depositors agreeing to leave funds for 26 months; bank reopened next day.
Newspaper Excerpt: When, on Monday morning, the State Bank did not open its doors, as a precautionary measure to conserve the assets of its depositors, the Peoples Bank, through the action of its directors, secured a mayor's proclamation of a holiday in order to prevent a run on the bank.
Source: newspapers

Newspaper Articles (1)

1. November 3, 1932 Lexington Unit-Journal Lexington, IL

Article from Lexington Unit-Journal, November 3, 1932

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Article Text

Great Community Calamity Averted by Quick Action of Citizens One of the finest exhibitions of community co-operation in the successful accomplishment of what looked, at the beginning, like an impossible task, which has ever been known in the state, occurred in Lexington this week. It was a feat which proved the truthfulness of the old adage, "Where there's a will, thtre's a way." All honor is due the men of Lexington who worked like one man to save the banks of this community from going out of business and leaving Lexington without banking institutions. They said that it couldn't happen-and it didn't happen. When, on Monday morning, the State Bank did not open its doors, as a precautionary measure to conserve the assets of its depositors, the Peoples Bank, through the action of its directors, secured a mayor's proclamation of a holiday in order to prevent a run on the bank. Upon learning of this the men of the community began to rally and built up an army of volunteers, which saved the situation, in the face of what looked like sure defeat. The Unit-Journal would be happy and proud to print the list of the men who worked so valiantly and successfully to secure the success of the 100% waiver plan, but that would be impossible without publishing the roster of all of the men of the entire community. Every one worked. Every one offered his services to assist in the project. It was the rare spectacle of perfect community co-operation and endeavor. They all worked together as one man to save the Peoples and State Banks for Lexington. They worked night and day to secure the signatures of all major depositors. Between the hours of 4 p. m. Monday and 9 a. m. Tuesday every one of the major depositors of the Peoples Bank had signed a waiver, agreeing to leave their funds on deposit untouched for 26 months, excepting as the facilities of the bank would make them available. This 100% waiver plan was a triumphant success and reflects the same great credit to the depositors that it does to the men who secured their signatures. The Peoples Bank was therefore opened up and ready for business at 9 o'clock Tuesday morning. When it was learned late Monday afternoon that the State Bank might also be saved by the same wonderful spirit of co-operation and support that had been accorded the Peoples Bank, the men gladly undertook the task of securing the signatures of the major depositors of the State Bank. This they were able to do, and by last night the State Bank was also able to present practically a 100% waiver signature of its major depositors. The wonderful spirit of the people of Lexington has received the highest praise from the state auditors, who say that it is something which they have never seen before in all of their experience.