5139. Hn Schuyler State Bank (Pana, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
February 6, 1930
Location
Pana, Illinois (39.389, -89.080)

Metadata

Model
gpt-5-mini
Short Digest
8322770a

Response Measures

None

Description

The H. N. Schuyler State Bank was closed by the State Auditor in early February 1930 (frozen assets/unable to collect loans). There is no report of a depositor run on this particular bank in the articles; subsequent runs described affected the Pana National Bank. The Schuyler bank remained closed and a receiver was appointed in April 1930, indicating permanent closure.

Events (2)
1. February 6, 1930 Suspension
Cause
Government Action
Cause Details
Closed by State Auditor/examiners after examination found frozen assets and inability to collect on notes and mortgages; posting of order closing the bank after banking hours.
Newspaper Excerpt
H. N. Schuyler State Bank here, with deposits of approximately $2,000,000, was closed yesterday afternoon by State Auditor Oscar J. Nelson because the bank was unable to collect on notes and mortgages which it held.
Source
newspapers
2. April 23, 1930 Receivership
Newspaper Excerpt
A. W. Frankenfeld ... appointment as receiver for the defunct H. N. Schuyler state bank ... bond of some $200,000 approved. The bank failed to open on Feb. 11 and ... every effort ... to re-organize the institution failed. ... many of the heaviest depositors refused to sign the waivers, and this caused the state auditor to name receiver.
Source
newspapers

Newspaper Articles (11)
1. February 7, 1930 Belleville Daily Advocate Belleville, IL
Article from Belleville Daily Advocate, February 7, 1930

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BANK RECEIVER ASKS $25,000 FROM CITY IN U. S. COURT SUIT PANA. ILL., Feb. (Special) H N. Schuyler State Bank here. with deposits of approximately $2,000,000, was closed yesterday afternoon by State Auditor Oscar J. Nelson because the bank was unable to collect on notes and mortgages which It held. The Schuyler Bank is the seventh banking institution to fail in Christian county since last October. The bank one of the oldest in the outstate, was organized 54 years ago as a private banking institution by Henry N. Schuyler. It was reorganized 25 years ago by its founder and several of his friends and given the name it now The capital of the bank was $200.000 and the surplus $30,000. The deposits at the time the bank closed amounted to $2,025 The loans and discounts held by the bank amounted to $2,076,349. State Auditor Nelson and several of his assistants have been examining the books. of the bank for the last three days, and notice of the closing of the institution was not given until after banking hours. Shortly afterward a hurried meeting of the business men and farmers of Pana was called. More than 500 citizens of Pana assembled in the community hall here and pledged their confidence in the Pana National Bank.

2. February 7, 1930 The Taylorville Daily Breeze Courier Taylorville, IL
Article from The Taylorville Daily Breeze Courier, February 7, 1930

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Schuyler Bank at Pana and The Rosamond State Bank Close Their Doors The Closing of the Rosamond Bank Today Is the Ninth Bank in County to Be Closed Since October 10th of Last Year. The posting of notice on the doors of the H. N. Schuyler State Bank of Christian county to be closed since October 10th of last year. State bank examiners closed the bank at 6 o'clock last night. The posting of the order closing the oldest bank of that city, came as the completion of an examination of the books after the bank's regular closing hour at 4 o'clock. Frozen assets was given as the cause of the institution's closing. Assets and liabilities totaled $2,381,087 on December 1. The bank has many farm loans outstanding." As soon as the news of the close spread, a meeting of the business men of called by C. R. Parthe town was of the Pana National rish. president bank, in an effort to maintain confidence of the depositors to prevent a the National bank Friday. run on More than 500 men attended the meeting in the Community bouse. Mr. Parrish read a report of the bank's condition. He told depositors that they could have their money at anydeposits in time. He showed would be safe. money No Excitement Reported When the Pana National Bank opened this morning there were a numof officers there to prevent any ber should it arise and undue excitement there were more than fifty of the influencial business men of Pana at the bank assure the depositors that they had no cause to be worried. Shortly before noon today the deposits at be larger this bank were reported than the withdrawals. Schuyler Assures Depositors H. N. Schuyler, presid of the closed institution, went down to the bank this morning and cheerfully greeted a number of people gathered |around the bank and assured them that he would personally see that the depositors did not lose at his bank.

3. February 8, 1930 Chicago Tribune Chicago, IL
Article from Chicago Tribune, February 8, 1930

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PANA BANK GETS $250,000 BY AIR TO PREVENT RUN Two Other Institutions Close Doors. quarter of million dollars was brought here by airplane from Chitoday to protect the Pana cago tional bank from withdrawals that this in the wake of began morning the closing here yesterday of the H. N. Schuyler State bank. Although there was small run on the national bank early in the day. arrival of the money by air restored confidence and conditions were virtually normal at closing time. Two additional banks in this dis trict were closed today They were the Rosamond State bank, Rosamond, four miles west of here. and the No. komis State bank Nokomis, thirteen miles east. The Rosamond bank had capital of and surplus of $2,500. A notice posted on the door said the bank was closed for examina tion and The Noko mis bank, state officials said, has frozen assets, but is expected to pay depositors in full. Money Arrives in Two Hours. When withdrawals of more than normal volume began at the Pana Na. tional bank this morning, President C. B. Parris of the institution telegraphed the Chicago Federal Reserve bank to forward $250,000 in cash by airplane. Two hours later plane with armed guards aboard arrived with the money. Sheriff D. L. Dun bar and armed deputies transported the money to the bank's vault. Citizens at massmeeting yester day had declared their confidence in the national bank and President Par ris said today that obtaining funds from Chicago was only a precautionary A number of business houses, in cluding all the meat markets early to day went on cash and carry basis. Heretofore these merchants had car ried their customers for indefinite peri ods. Late today the volume of busi ness was declared virtually normal A number of business, fraternal and social events, including banquets, scheduled for next week, however, have been canceled. Both the Penwell and Pana coal mining companies announced today that they would continue operations at the present Milford Bank Closed. The First National bank of Milford twelve miles south of here. was closed today. A notice on the door said that the action was taken for the protec tion of depositors. Officers said that the bank is solvent, but that run had been feared as the rseult of rumors In circulation. The bank is 53 years old. It has deposits of $350,000. Cornell Bank Suspends The Farmers State bank of Cornell, Livingston county was closed today Directors announced that the action was taken because of frozen assets Louisiana Bank Closed. Bank of Napoleonville of Napoleon ville, La., was closed today by order of the state bank commisisoners be cause of frozen assets and sugar loans Officers of the bank were working on a plan of reorganization Deposits of the bank were estimated at with $500,000 in resources Emile Sundberry former state senator, was president of the bank.

4. February 8, 1930 Herald and Review Decatur, IL
Article from Herald and Review, February 8, 1930

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Arrange to Pay Miners Despite Bank Closings (Continued from Page 1) the declining years of the man who was its founder and its stabilizer during its years of existence, according to the opinion of one who has ben aiding in the attempted reorganization. When Mr. Schuyler started operation of the bank he was 32 years old, and the bank grew comm'inity importance with him. Some money loaned in those first few years never has been returned. On some of it the interest has been in arrears six or years. This bank's closing, it is said. is not like the closing of many other Central Illinois banks during the last few years. The money loaned on farm lands, and on businesses that was fell with the post-war slump and the recent stock market crash has little to do with the closing. Of the hundreds of thousands of dollars owed the institution. most of it was loaned 10 15 years before the war. Old Loan Condit Known The old loan condition was known to some of Mr. Schuyler's friends and business associates, it was said. but these believed that Mr. Schuyler had money enough to tide the bank over any When the showdown came between bank examiners and the bank officials few weeks ago, however, the true condition was made known, and It was then that the futile attempt was made to keep the doors open. Just what the bank would be able to pay should it be thrown into receivership, few guesses are ventured (Special to The Herald) ROSAMOND, Feb. H. Bonnell, president of the Rosamond-State bank, which failed to open its doors Friday morning, said later in the day that the closing here was due to the closing of the H. N. Schuyler State bank in Pana which is its correspondent. Asked whether or not his bank could reopen if the Pana bank remained closed, Mr. Bonnell said that that would depend on the action of the state bank examiners.

5. March 29, 1930 The Free Press Carbondale, IL
Article from The Free Press, March 29, 1930

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SUICIDE BRINGS RUN ON BANK; CASH RUNS OUT March Pana PANA, III., bank was without ready National funds tonight and unable to honor pay checks as a result of heavy on the bank which followed the suicide of Arnold Johnson, 55 years old, heavy stockholder and second vice president the institution. Whether the bank would open its doors tomorrow morning was problematical, although C. B. Parrish, president, announced that an urgent message had been sent to Chicago for money and that the bank, was solvent. While Johnson's suicide was believed to be the result of despondency over financial troubles, bank officials and friends said that his snicide had no connection with bank affairs. There was heavy withdrawal of deposits throughout the day, but the bank remained open until o'clock, the regular closing hour. At the closing time a large crowd of depositors and miners of the Penwell Coal Mining company was still standing in line. Every depositor's check and pay roll check honored up to closing time, but after the doors had closed Guy L. Smith, the bank's attorney, announced that the bank was out of funds. The uneasiness in local banking circles has been increasing since the H. N. Schuyler State bank was closed on Feb. by State Auditor Oscar Nelson for examination and adjustment. The Pana National withstood run at that time with the aid of money rushed here by airplane from Chicago. During the last few days) withdrawals had been steadily growing and when employes of the mining company appeared at the bank with their pay checks today, two days before the usual pay day, the run started. The run was still comparatively light, however, when news that Johnson had shot himself to death in the basement of his home was circulated. Hundreds of depositors hurried to the bank and joined the already long queue which had formed at the cashier's window. Johnson's family attributed his suicide to despondency over ill health, denying that he had suffered any financial losses.

6. March 29, 1930 Decatur Herald Decatur, IL
Article from Decatur Herald, March 29, 1930

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FAIL OPEN SATURDAY FOLLOWING RUN Future of Institution Will Not Be Determined Until Monday HOLD JOHNSON INQUEST PANA, March bank examiners were closeted with officials of the Pana National bank Saturday morning. The bank failed to re-open Saturday morning after a heavy run had been made on it by depositors Friday. The withdrawals heightened news of the suicide of Johnsecond vice president and heavy stockholder the bank. Officials Silent The decision of directors to remain closed Saturday was announced Friday evening by Parrish, president of the bank. None of the officers of the bank nor the would make any statement regardthe future of the bank Saturday morning. It was indicated that statement would be issued Monday. The decision to remain came directors meeting after the close business at o'clock. Miners Cash Checks The run began the news of the death of Mr. Johnson spread, and continued throughout the afternoon. number of targe depositors reported to have withdrawn their accounts. In addition, miners who received theri checks from the Penwell Coal Mining made heavy drain on the bank supply of cash. At the close business Friday about lined before the bank's windows. manner when Senator Guy Smith, attorney for the bank, told them the bank out of money and could not pay any more checks. Senator Smith said that the bank was solvent and would open for business the next day. The decision to remain closed came later. Pana Without A Bank at the time of the failure of the H. Schuyler State bank here on Feb. were greatiy instrumental in exhaustion of the bank's resources. At that time was sent by airplane from Chicago to the National bank, but the was returned later. Pana money left without bank. now The Schuyler bank with assets of closed because of $2,000,000 was The institution is now frozen assets. in process of re-organization. Dehave agreed to waiver positors their deposits that the half of bank may re-open. Ninth County The National bank the ninth inbe closed in Christian stitution to since Oct. 10, 1929. Other county closed during this period were State bank, Oct. 10: Colegrove bank, Oct. 11; Citizens Bulpitt State bank, Oct. TurState State bank, Oct. National bank, Oct. Taylorville National bank, Taylorville, Oct. First H. N. Schuyler State Feb. 6; Rosamond State Pana, verdict of suicide was returned morning by coroner's Saturday which conducted an inquest jury the of Johnson. Funbody eral will be conducted in the home Sunday afternoon at o'clock Rev. H. H. Wintermeyer, pastor by the German Evangelical Lutheran Burial will be in Linwood church. cemetery.

7. March 29, 1930 The Taylorville Daily Breeze Courier Taylorville, IL
Article from The Taylorville Daily Breeze Courier, March 29, 1930

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Suicide of Officer Friday Afternoon Causes Heavy Run on this Institution Uncalled for Run During the Afternoon Causes Funds of Bank to Become Exhausted and Directors Decide to Leave Bank Closed. Pana Now Without a Bank. Chaliapin Ill The Pana National bank did not open for business this morning. The suicide of A. J. Johnson, second vice president Friday noon, precipitated a Leavy run on the institution, which the bank was unable to withstand only until closing time. The decision to remain closed came a' a directors' meeting after the close of business at 4 'clock yesterday. National bank examiners were notified and a check of the bank's eondition will be started at once. The bank apparently is solvent, it is said. Miners Cash Checks The run began as soon as the news of the death of Mr. Johnson spread and continued throughout the afternoon. A number of large depositors are reported to have withdrawn their accounts. In addition, miners who received their checks from the Penwell Coal & Mining company made & Heavy drain on the bank's supply of cosh. At the close of business Friday aftrnoon about 25 customers were still lined up before the bank's windows. They left in an orderly manner when Senator Guy L. Smith, attorney for the bank, told them the bank was out of money and could not pay any more checks. Senator Smith said that the bank was solvent and would be open for business the next day. The decision to remain closed came later. In a telephone conversation with Senator Smith this morning he stated that the run on the bank there late yesterday put their business in a paralyzed condition and the scare was all uncalled for as Mr. Johnson only had 17 shares in the bank and he is said to be worth at least $250,000. Pana Without a Bank Withdrawals at the time of the failure of the H. N. Schuyler State bank of that city on February 6, were greatly instrumental in the exhaustion of the bank's resources, At that time $250,000 was sent by airplane from Chicago to the National bank, but the money was returned later. Pana is now left without a bank. The Schuyler bank with assets of $2,000,000, was closed because of frozen assets. The institution is now in process of reorganization. Depositors have agreed to waiver one half of their deposits so that the bank may reopen. Ninth in County The National bank is the ninth institution to be closed Christian county since Oct. 10, 1929, Other banks closed during this period were the Colegrove State bank, Oct. 10; Bulpitt State bank, Oct. 11; Citizens State hank, Edinburg, Oct. 17; Turncr State bank, Edinburg, Oct. 18; Taylorville National bank, Oct. 18; First National bank, Oct. 18; N. Schuyler State bank, Pana, Feb. 6; Rosamond State bank, Feb. 7. Plan New Bank It was understood from very reliable sources this morning that a definite plan has already been inaugurated in Pana for the organization of new bank there at the earliest possible convenience. A waiver of 50 por cent of the deposits of the Schuyler bank was recently voted and it hoped that plans can be made to merge the assets of the two organizations into a new bank.

8. April 1, 1930 The Taylorville Daily Breeze Courier Taylorville, IL
Article from The Taylorville Daily Breeze Courier, April 1, 1930

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ANDALIA AND DECATUR BANKS CASH PANA PAY CHECKS MONDAY N. A. Cutler, Who Aided Taylorville National to Reorganize, is in Charge of Pana National. Decatur and Vandalia money was supporting business at Pana Monday while stockholders of two banks were attempting to reorganize. Plans were under way to reorganize the Pana National, closed by a heavy run Friday, if the examiner's report shows the bank's condition justifies it. The examiner, W. A. Cutler, had not completed his examination Monday morning and declined to make statement. It is expected he will make some announcement before the end of the week. Depositors of the H. N. Schuyler State bank met Monday morning to complete the waiver of deposits by which they hope to reopen the bank. Judge J. H. Fornoff, presiding at the meeting, explained that half of the depositors have agreed to waive half of their deposits and urged that others aid the proposal. Stockholders hope to sell 1,000 shares of stock at $150, raising $100,000 for running capital and $50,000 for collateral. Miners' pay checks issued on Vanlalia and Decatur banks, paid for what business was conducted Monday morning. Glen Shaffer, manager of the Pana Coal company, had deposited $12,000 in the Pana National bank Friday morning to meet Saturday's payroll checks. When the bank closed Friday evening, Shaffer asked outside banks to issue checks and the miners were paid. The Penwell company, which pays Friday, had issued its checks before the run; many of the miners were in the crowd which packed the bank office. There who did not cash their checks were given checks on the Millikin bank of Decatur. morning of In the meeting Monday for their signacanvass depositors tures on the waiver proposal.

9. April 23, 1930 Herald and Review Decatur, IL
Article from Herald and Review, April 23, 1930

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SCHUYLER BANK RECE!VER NAMED A. W. Frankenfeld Files $200,000 Bond With, State Auditor people will accept the appointment of W. Frankenfeld, local insurance man, as receiver for the defunct H. N. Schuyler state bank with high approval, the appointment having been made last week briefly noted in newspapers on Saturday. Mr. Frankenfeld was one of many who sought the responsibilities of the receivership of the bank and his indorsements were of the very highest character. The appointment was made during the past week, but announcement of an authoritative nature could not be given until the new receiver had filed his bond with the state auditor's office in Springfield. This detail was brought to termination Saturday the bond of some $200,000 approved. In conversation with the new receiver Monday, it was stated such sistants as will be required by Mr. Frankenfeld have not as yet been named. It understood number of aspirants are in the field for positions as assistants. In Insurance Business Mr. Frankenfeld is held in the very highest esteem here. He has been identified with Pana's civic, religious and financial interests for many years. For the past two years he has been supervisor for Pana township. He has conducted an insurance business in this city for the past several The bank failed to open on Feb. 11 and following the posting of notices to the effect that was "closed for adjustment," every effort on the part of a number of Pana business men to re-organize the institution failed. It is said that some 1,700 of the depositors in the bank signed waivers of 50 per cent. of their savings in order that re-organization might be effected. However, many of the heaviest depositors refused to sign the walvers, and this caused the state auditor to name receiver. Arrive from South Dr. John H. Miller, dean of Pana and surgeons, accompanied by Mrs. Miller. who have been wintering in Tampa, Fla., arrived home Saturday night via automobile. the trip from the Sunny South having been made without incident. Enroute home they visited for brief periods places of interest, including Muscle Shoals where they took the scenic elevator and dropped 13 full stories below the surface of the ground to see the large turbines perform their work.

10. April 24, 1930 The Taylorville Daily Breeze Courier Taylorville, IL
Article from The Taylorville Daily Breeze Courier, April 24, 1930

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PANA BANK RECEIVER NAMES ASSISTANTS Pana, April 24.-A. W. Frankenfeld, receiver of the defunet H. N. Schuyler State bank ,announced Tues day afternoon that he had named the following as his assistants to help with the affairs of the settlement of the bnk: Legal adviser, Attorney Edward E. Dowell; O. H. Brown and Miss Nora Molz. Mr. Samuels, who has been in this city in connection with the closed bank for some time, is also assisting in adjusting the bank's affairs. The Breeze is supreme in its field

11. April 25, 1930 Herald and Review Decatur, IL
Article from Herald and Review, April 25, 1930

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PANA BANK RECEIVER SELECTS ASSISTANTS PANA-Receiver for the H. N. Schuyler State bank, A. W. Frankenfeld, on Tuesday named his assistants who will help conduct the affairs of closing up the details in connection with the settlement of the bank's affairs. They are Ora Brown and Miss Nora Molz. Mr. Samuels is