5016. First State Bank (Mattoon, IL)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: December 8, 1926
Location: Mattoon, Illinois (39.483, -88.373)

Metadata

Model: gpt-5-mini
Short Digest: db519f08

Response Measures

Full suspension, Books examined

Other: Bank placed in hands of state banking department; voluntary liquidation followed by friendly receivership

Description

A heavy depositor run (began Dec. 8, 1926) drained the bank; directors closed the bank and called the state banking department (Dec. 9, 1926). The state examiner/auditor took charge and a friendly/temporary receiver (E. T. Guthrie) was appointed later (Dec. 22, 1926 / receivership begun Jan 1927), and steps toward liquidation followed. Depositors were later paid in full. Cause classified as bank-specific adverse information (losses, bad assets taken over from the earlier State Trust & Savings and general loss of confidence).

Events (3)

1. December 8, 1926 Run

Cause: Bank Specific Adverse Info
Cause Details: Heavy withdrawals driven by loss of confidence after months of losses and questionable assets taken from the earlier State Trust & Savings; run climaxed in early December 1926.
Measures: Directors posted notices, closed the bank to 'checkmate' the run and called the state auditor/state banking department to take charge.
Newspaper Excerpt: To checkmate a run that was started on this bank on Wednesday morning, Dec. 8, 1926...
Source: newspapers

2. December 9, 1926 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank closed by its board to prevent further loss after the run drained significant funds (reports cite at least $100,000 withdrawn); directors requested state banking department to take charge and arrange orderly liquidation.
Newspaper Excerpt: The First State Bank of Mattoon did not open for business this morning... the officers notified the state banking department and auditor of public accounts to take charge.
Source: newspapers

3. December 22, 1926 Receivership

Newspaper Excerpt: Guthrie appointed by Oscar Nelson ... temporary receiver for the affairs of the First State Bank of Mattoon. (Carl H. Weber, state bank examiner had been in charge earlier.)
Source: newspapers

Newspaper Articles (15)

1. December 9, 1926 The Decatur Daily Review Decatur, IL

Article from The Decatur Daily Review, December 9, 1926

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Fails To Open Thursday official Statement Says Creditors Will Lose Mattoon, Dec. State bank, organized 1924 replace the State Trust Savings that closed its doors Jan. 1924, suffered like experience Thursday mornwhen the doors failed open. All information the public the reason for the closing bank was contained two tices tacked the front door of the bank. one them signed by the rectors the the State Auditor Oscar and Bank Examiner Carl Weber. TO CHECKMATE The first one reads follows: checkmate that was started this bank Wednesday morning, Dec. and protect against loss depositors and those well stockholders the business public, close this bank call the state auditor and State Department. All persons protected. "Dec. 1926. "BOARD OF DIRECTORS." NOTICE. Immediately below this notice the second, which reads follows: "Upon the request the board directors, First State bank Mattoon, has been placed the hands the Auditor of Public Accounts, state Illinoss, for examination and adjustment. "CARL H. State Examiner. "OSCAR NELSON, State Auditor. "CARL H. WEBER, Bank Examiner." COMES AS SURPRISE. Nothing apparent to the ple doing business the bank Wednesday, indicate the institution was financial stress, and notice closed doors Thursday morning only came prise and shock, but caused considerable flurry the among people the those had money on deposit the instituNo official of the bank, of which Guthrie president Paul and could be seen Thursday forenoon, but said the action of the board of directors closing the bank this time decided upon of that body Wednesday night. TO LIQUIDATE. also though unofficialthat the the cials directors bank negotiate liquidation the other two banks the city, the Illinois Trust Savings Bank and the National Bank, and of busieffort keep the First State Bank afloat reorganize. directors the institution Andrews, Holmes, Roth. Dr. Schlicher, Guthrie Watkins, the officers tion those already named above. Holmes, vice president, Charles Hoots, assistant cashier. SMALL LOSS Form prominent business man quoted one of the directors, learned Thursday that the bank had been losing money, and that would take about the amount the capital stock, clear indebtedness that responfor the closing. The same director quoted ing that the depositors would nothing, and that the whole would taken within very days. While this news spread and caused hope the people about the bank during forenoon hours, there were those, rememberthe failure the same though under different three years ago, were hopeful. TOO EARLY. It was too early, however, for official statement the condition the bank. The bank examiner assistants the on books, however, and at the earliest possible moment statement may The old State Trust Savings which the First State Bank closed under orders the then state tor, Andrew Russell, following the official report of the bank. Moloney was president, and Holmes vice Efforts made the bank. and they Holmes was tained vice assistant cashier. All others holding official capacity were LITIGATION. There and later reported that charge came this but the charge was there no prosecution. the business accepted the presidency capital stock waged the end that surplus of $125,000 and the bank started der very The MEN have

2. December 9, 1926 The Decatur Daily Review Decatur, IL

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GUTHRIE'S STATEMENT Mattoon, Dec. president the First State Mattoon, which was placed hands the State Banking ment Thursday for settlement dissolution, The Review lowing statement Thursday noon: depend upon the faith public. bank dences lack faith always causes banks there be foundation for run such times banks either may and chances stopping the close their doors and more orderly meeting the abnormal demand. considered and fairer discontinue business thus permit an orderly settlement dissolution. "Our board directors then cluded avoid loss depositors creditors the and avoid greater its the business public, much better for the tinue, and the State Department, and that state auditor was called agreed send take

3. December 9, 1926 JG-TC: Journal Gazette and Times-Courier Mattoon, IL

Article from JG-TC: Journal Gazette and Times-Courier, December 9, 1926

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FIRST STATE BANK TO QUIT BUSINESS Steps to Go Into Voluntary Liquidation. The First State Bank of Mattoon did not open for business this morning. Instead. the officers notified the state banking department and auditor of public accounts to take charge. Patrons found posted the front doors of the bank. large printed placards bearing this notice: "To checkmate that was started on this bank Wednesday morning, December 1926, and to protect against loss our depositors and those well as our stockholders and the business public, close and call in the state auditor and the state banking department. All Interested persons will be protected. (Signed) "BOARD OF DIRECTORS, "First State Bank of Mattoon." Hung under each of these notices one written on bank letterhead: "NOTICE "Upon the request of the board of directors, the First State Bank Mattoon has been placed the hands of the auditor of public aocounts, State of Illinois, for examInation and adjustment. (Signed) "CARL WEBER, "Examiner." When asked about matter. Guthrie. president of the First State said: No Cause for Excitement. "There no cause for excitement. All depositors will be paid in full. This not bank failure: simply steps taken protect all terested. The affairs of the bank will soon be straightened out and the depositors will have their money in full." Asked to the future policy the bank. and will be liquidated. President Guthrie said would understood that when the First State Bank affairs have been Ined. depositors paid and other details given attention. the bank will out of business entirely. It will be plete liquidation. Examiner in Charge. Carl H. Weber. examiner for the state banking department. arrived here this morning and immediately took charge of the He today. began auditing the books and papers. and expects engaged at the work for three four days. All books, pa pers and have been turned over to Mr. Weber. assured there will no receivership any other long extended process of settling the bank's af fairs. and that the liquidation will be orderly and prompt. President Guthrie's Statement. "Banks depend upon the faith of the public." said Guthrie, president. run on bank evidences lack of faith by some. and always causes barrassment banks whether there be any real foundation for the or not. At such times banks may either open and take chances of stop(Continued on page

4. December 10, 1926 Herald and Review Decatur, IL

Article from Herald and Review, December 10, 1926

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Mattoon Bank Closes Doors (Continued Page 1) tors J. R. T. Holmes F. Ritter, H. R. H. Roth, Dr. Gus E. T. Guthrie C. O. Makes Statement Mr. Guthrie felt it incumbent him Thursday evening concretely the of the officers and directors regard to the follows: depend the faith bank lack of faith by and causes there be real foundation for the run or such times banks either stay and take chances of stopping run. close their doors and per of safer more orderly way meeting the our case we considered it safer and fairer to our business thus permit an orderly settlement and board of then conthat to avoid to the any creditors of the to avoid to its the business would be much better for the bank to and to call Bankand that auditor was called he agreed to send a representative to take charge." It was said unofficially in Mattoon after the shutdown of the bank that the officers and directors are resigned to a liquidation of its affairs and, in fact, intend to negotiate for the liquidation. Efforts will be directed it stated, toward liquidating the institution through two other banks the city-the Illinois Trust and Savings bank and the First National Adjustment Shortly A Mattoon business man was quoted as saying that the First State bank has been losing for money months, and that it would take practically the full amount of the institution's capital stock, $25,000. to clear up indebtedness responsible for the One of the directors was said to have remarked that in his opinion none of the depositors will lose money, and that the whole affair concerning the closed bank will be adjusted shortly Mr. stated Thursday ing that examination of the bank's records will be concluded within two or three days at the utmost, and that a statement of condition will prob. ably be made next Monday morning Former Bank Closes The closing of the old State Trust & Savings bank from the residue of which the First State bank was or ganized, following report of the former institution's condition, the re port been made by F. T. Mothen Mr. Russell, in 1924 the state judged the port warranted an ending of the bank's business. Prominent citizens of Mattoon were unwilling to see a stringent state of affairs brought about by the clos ing of the State and brought about its reorganization under the name of the First State. Mr. Guth. rie prevailed upon to accept the presidency of the new institution. R Holmes, formerly of the State was retained of the First State was Mr. Hoots, former cashier of the State Trust. Other officers of the State Trust were dispensed with. In Mattoon Thursday there was disposition to question the integrity First State bank's officers and directors, nor was there any suspicion of misappropriations. Mattoon business leaders generally regard the condition as one caused by in ability to make money.

5. December 11, 1926 The Decatur Daily Review Decatur, IL

Article from The Decatur Daily Review, December 11, 1926

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Bank Affairs Look Bright Mattoon Examiner Expects no to ment Mattoon, Dec. "Things bright for the depositors," said Carl bank examiner the state auditor's office In charge of the spection the First State Bank very brief statement concerning the audit that being made of the closed bank's affairs. Others actively connected with the work stated that the heavy run that began month which than withdrawn from bank, the bank would pay 100 dollar. TO CLOSE UP BUSINESS. The bank will reopen, President purpose his associates not try resume the business. expected be liquidated through National Bank Mattoon Illinois Savings tives their that banking business this city black OFFER FOR BUILDING. Mr. Guthrie already has bank that point business district Mattoon. According most recent statement the bank, building. furniture fixtures valued Though celving offer for the building. Guthrie states that will not hurry make addition legacy frozen from the State Trust Ings Bank, which the First State Bank the officer the local year September $100,000 worth marketed This there per cent that bank felt some that loss. DID PROPER THING generally conceded officials office that ficials the thing closing bank time they did, curtailing the losses before reached figure beyond which they Mr. Friday that he pected ready Sunday Monday, that the condition the closed Officials banks while looking their people concur plans the liquidation First State without loss to despositors other creditors.

6. December 11, 1926 Herald and Review Decatur, IL

Article from Herald and Review, December 11, 1926

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Expect Mattoon Bank Will Pay Out in Full (By Staff Dec. of the First State Bank of Mattoon, which its doors Thursday result of run which drained the institution of least $100,000. will suffer no loss of their savings, was stated here Friday representatives of the state banking ment, who the bank charge. Despite the heavy run, that startor more and reach its climax the bank can pay out 100 cents on the dollar, than the remaining liabilities depositors, aides Carl H. bank examiner, said. There be no receivership, it was confidently stated. Promise Statement Soon Mr. Weber himself, is directan the bank's books, stated he is optimistic as the outcome of the examination conducted. making rapid with the audit, clared Mr. Weber, will be able by Sunday or Monday to formulate definite statement the bank's condition. Things look bright for the Guthrie, president of the bank: other and the rectors good suspending calling the state banking officials to take charge readjustment, one of Mr. Weber's assistants declared. Besides undergoing deposit withdrawals past month, the institution was losing money in other phases of its Cut Losses Short The shutdown the bank Thurs morning losses short figure $7,000 and according estimates pending the statement of condition. more weeks operation would raised point where they could not be made Efforts toward liquidating the bank through the National Bank Mat and the Illinois Trust Savings bank are to be offiof the bank said. Liquithe dation yet beer of the two National and the linois Trust Friday aidin an appraisal of the First State's Going Out of Business Mr. Guthrie. the First State, Friday that the affairs the institution be completely wound up. the depositors off, other settled and the no future the First State Bank out of had an offer for the bank building. but am no hurry about entering deal for The building. its furniture and fix. tures are nearly The stories high and of brick. occupies commanding location in the center of Mattoon's business believed the quarters will sell readily for good price. Trouble Closing of the First Bank of Mattoon the tegrity and of Mr. Guthrie of the other offiboard an officer of the National Bank Mattoon stated. "The state affairs prevailing with First State." local banking authority explained partly the result to realfrozen assets bad paper First State took over from State and Savings bank. The reorganization of the State "Besides questoinable from the State Trust. the First State illfeeling from and that great degree of mistrust en Representative) by the forced closing the State Trust in January of Farm Crops Hit "On top other grief down the First State from the First State suffering the financial agricultural situation This situation best by figures. Last September, $100,000 worth broom marketed from the Mattoon territory. This hardly $20,000 worth gone to Late last farmers around Mattoon This year sold. The First State felt the efthe Bank of Mattoon and the Illinois Trust bank, both willing it proves feasible to assets of the closed liquidating the will consider our first, and the affairs depositors of the First State the two active president disbanks to let that will Mattoon black Stand $25,000 Less The First State bank Mattoon condition, as of Oct. 11, as follows: Resources $362,529.71 Loans and Discounts 499.53 Overdrafts Bonds Securities 120,134.25 Furniture and Fixtures Cash due from Banks 7,218.31 Other Resources $610,332.76 Liabilities Capitol Stock Bills Payable Deposits Total Liabilities $610,332.76 Since the statement issued. approximately To meet heavy run, the bank called certain and securities, and drew from item, "Cash and Due from Losses, even should reach maximum could taken care according the bank examiners, by capital stock and Total Resources

7. December 12, 1926 The Daily Worker New York, Chicago, NY

Article from The Daily Worker, December 12, 1926

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Mattoon Bank Closes Doors Following Run MATTOON, Ill., Dec. 10.-The first State Bank of Mattoon closed Thursday. Carl H. Weber, representing the state auditor's office at Springfield, at once assumed change. On the door of the bank was placed this sign: "To checkmate a run that was started on this bank on Wednesday morning, Dec. 8, 1926, and to protect against loss our depositors and those we owe, as well as our stockholders and the business public, we close this bank and call in the state auditor and the state banking department. All interested persons will be protected." It was signed "The Board of Directora."

8. December 14, 1926 Effingham Daily Record Effingham, IL

Article from Effingham Daily Record, December 14, 1926

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EXAMINER SAYS MATTOON WILL PAY OUT BANK Mattoon, Dec. 14.-Depositors of the First State Bank of Mattoon which closed its doors on Thursday as sult of run which drained the institution of at least $100,000, will suffer no loss of their savings it was stated yesterday by representatives of the State banking department, who have the bank in charge. that started Despite the heavy run month or more ago and reached its climax Wednesday, the bank can pay out 100 cents on the dollar, there being more than sufficient assets to meet the remaining $250,000 of liabilities to the depositors: aides of Carl H. Weber, state bank examiner, said. There will be no receivership, it was confidently stated.

9. December 15, 1926 Herald and Review Decatur, IL

Article from Herald and Review, December 15, 1926

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TO LIQUIDATE BANK'S ASSETS Directors and Officers of Mattoon Organization Take First Steps (Special to The Herald) MATTOON. Dec. -Definite steps toward liquidating the of the closed First State Bank of Mattoon were taken here Tuesday evening. when directors and officers of the institution that suspended business last Thursday met with officials of the National Bank of Mattoon and the Illinois Trust & Savings bank. The bankers held star chamber session and fully into statement of the First rendered by Carl H. state bank in charge the closed bank. studying the statement, the banking officiary appointtd two to decide finally the Hquidation steps. Sentlment Favorable The of the First State's condition will be given to the public after the has reported. it said. A report is expected within or While the parley of the Tuesday evening was behind door, It understood that toward Hquidating assets of the First State through the other Mattoon banks was favorable. The decision, however, must from according to informants of The Herald. Mr. Weber's report on the First State's condition, according to individual close to the parley of Tuesday evening. was such indicate that the quite feasible. report said have positively that the positors and stockholders of the bank suffer no loss, as in The Herald soon after the institution suspended business.

10. December 16, 1926 The Decatur Daily Review Decatur, IL

Article from The Decatur Daily Review, December 16, 1926

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Depositors Safeguarded By $116,000 Audit of Mattoon's Closed Bank Shows Assets Exced Liabilities. Mattoon, Dec. of the First State Bank Mattoon, closed for week, are safeguarded from loss by an excess $115,000 more assets over the liabilities the institution, according unofficial statement the audit, which has been The official port of Carl Weber, examiner charge of the audit, has been warded State Auditor Oscar Nelfor approval before being made public. learned that the examination that the liabilities including while assets, through liquidation, $493,margin of $116,000. ALL SAFEGUARDED. While the stockholders have been prepared meet any losses, should necessary, ficiences that might found the that dition the affairs make holders from the setling up of the bank's affairs. DEPOSITS DECREASE. Loss of confidence the bank started what might termed the bank, which when last when bank closed the avoid and affairs officials committee been appointed, and started liquidate through other banks of city, National Bank and Illinois Trust ings Bank. this end the approval both, national. and state banking will sought, and the purpose Weber, left for return Saturday when decision will reached the form of liquidation.

11. December 20, 1926 JG-TC: Journal Gazette and Times-Courier Mattoon, IL

Article from JG-TC: Journal Gazette and Times-Courier, December 20, 1926

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This Effect Petition to Now Being culated. and other creditors Depositors State Bank are being asked the First sign petition requesting banking department appoint the closed First Guthrie. president Bank. receiver for the State That course would adopt the First State Bank board assured Saturday and directors Saturday evening. consider early creditors the bank number had signed the petition. Only Course Left Open. thing left for the the only board author First State Bank today. board did not see way clear made by its proposition neighbor banks for the purchase assets. there nothing but ask to have receiver pointed.' Mr. Guthrie asking our and creditors the petition for the receiver. which the best thing do. receiver pointed will easier either the bank's assets liquidate bank. We already have offer out-of-town capitalists take The prospective pur chasers are abundant means. may be that the assets be sold to No One Will Lose. In the event of the appointment receiver. steps will taken liquidate the bank. Mr. Guth said: will the matter of comparatively short time when will begin paying the depositors off None them lose they in full. but such payment made only fast as money been collected from outstanding loans. collecting loans This morning's brought generous remittances. feel assured that will not be long out receivership. Under the receivership there will two three employes retainto do the clerical work. stated today. Assets Were Not Bought. learned upon the authority of attorneys that the legal technicalities surrounding such liquidation were delicate preclude sale the to the local banks. Both and Savings Bank and the First Bank had become involved lawsuits, yet untried. that said bankers were willing to the prospects of lawsuits against purchasers the First State With this decision counsel for the other banks. the petifor the receivership is declared necessity.

12. December 22, 1926 JG-TC: Journal Gazette and Times-Courier Mattoon, IL

Article from JG-TC: Journal Gazette and Times-Courier, December 22, 1926

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GUTHRIE MADE On Tuesday afternoon Guth appointed by Oscar Nelson. and head of the state banking department, temporary ceiver for the affairs of the First State Bank of Mr. Guthrie immediately qualified furnishing bond for the faithful performance of his duties. Mr. Guthrie went to Springfield on Tuesday with the petition signed and was prepared for Today noon Carl Weber. state bank examiner in charge of time closed bank. which placed Itself the hands state banking department last week. turned the bank over Mr. Guthrie. Receiver Guthrie will have charge the bank until the January term circuit court. when further matters of the bank will be given dicial attention Mr. Guthrie's appointment has come request of numerously signed of depos itors and other creditors the First State Immediately upon ciding place itself in the care state banking the rectors the First State Bank said have negotiated for the sale assets the National Bank Mattoon and the Central Illinois Trust and Savings Bank but parties unable come to terms This appointment necessary for the First State order that the depositors might paid off and the former banking busi

13. December 27, 1926 Effingham Daily Record Effingham, IL

Article from Effingham Daily Record, December 27, 1926

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MED GUTHERIE BANK RECEIVER lattoon, Dec. 24.-E. T. Guthrie, ident of the First State Bank here, appointed as the friendly receiver, ounced Wednesday afternoon that Thursday morning they would start institution, and its payment beChristmas will be greatly welby those having the accounts, rell as by all the business interhere. receivership is to start right have already been collecting on unts and notes, having gotten be- lent. $25,000 and $30,000. must continue with collections ome time before anything can be the regular depositors of the money is accumulated to of that the course, depositors get their money in rateable diviThere is every indication that sank ultimately will pay out 100\ on the dollar. Assets are conably more than $100,000 in excess abilities. bank's officers and directors hat it was incumbent on them to faith with Christmas savers. For emselves arranged to pay out the Imas savings deposits. We will handling out the cash, 100 cents ich dollar, Thursday morning. do not anticipate that, in conhg the receivership of the First bank of Mattoon, there will be necessity for taking legal action the stockholders or the bank's als. The receivership should tess smoothly and without the difies that have attended receiverof other banks in central Il-

14. March 18, 1927 JG-TC: Journal Gazette and Times-Courier Mattoon, IL

Article from JG-TC: Journal Gazette and Times-Courier, March 18, 1927

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Guthrie Asks Receiver for Accounting and Judgment. Special The March Charleston, filed in the circuit Suit was R. Real, of court today by Mattoon, attorney for receiver of the First Guthrie, State Bank of Mattoon, against stockholders of the State Trust Savings Bank and the bondsmen of that bank, who signed in favor of the First bond State Bank of Mattoon, guarit loss when anteeing against the First State Bank took over the assets of the State Trust and Savings Bank, after had failed. Suit For Accounting. The sult is for an accounting and asks judgment against the stockhold. the State Trust and Savings ers Bank to the extent of the value of the stock owned them. set in the that large ber of the stockholders the State Trust and Savings Bank have the First State Bank fifty per cent of the value of their stock par have obtained release of their stitutional liabilities as stockholders. judgment asked against No money such stockholders. $40,000 Due Bank. The bill alleges that there to the First State Bank of $40,000. also that sum of the amount due the First State not fully paid the shall be those bond the payment balance due. bond signed by the bondsmen for the State Savings and Trust for $200,000. stated the bill of particulars that Guthrie was appointed Oscar Nelson, auditor of public counts of the state of Illinois, ceiver for the First State and that he qualified position bond for 000, which bond was approved Auditor Nelson. Bank Closed January 1924. That the State Trust and Savings Bank was closed January by the auditor of public accounts is declared. There follows lengthy recitation of transfer assets that bank the newly ganized First State Bank and the execution of the bond guaranteeing the collection all moneys due the assets taken First State Bank of Mattoon. GOLF INSTRUCTOR KILLED. New York, March war veteran and Grant, world inent as instructor clubs of Great Britain, France golf and was instantly killed day when he seventh floor window of his apartment. FOOD Coal and Ice Co., 1501 Broadway, Alpha and Omega class, First Baptist church, Saturday, 19, beginning 3-18 FREE OIL. Ideal service station, and Marshall, Saturday, March

15. January 22, 1929 Decatur Evening Herald Decatur, IL

Article from Decatur Evening Herald, January 22, 1929

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Mattoon Bank Receiver Has Checks Ready Jan. 22 Receiver Guthrie for the First State bank is at work getting the checks for the 1,200 or 1,500 depositors the defunct The amount Involved about $30,000. The checks, when all have been made out, have to be signed by Mr. Guthrie, then sent to Springfield by State Auditor Oscar Nelson. They are back Mattoon and mailed Mr. Guthrie stated that the creditors would receive them about the first week In February. The remainder of the money to be collected will be prorated to the stockholders according to the stock The checks to be issued the first of February the final per cent due all depositors of the First State bank, which closed its doors Dec. 1926, and the receivership started about Jan. 20, 1927.