Farmers State Bank - Wenona, IL

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: October 18, 1921
Location: Wenona, Illinois (41.053, -89.050)

Metadata

Model: gpt-5-mini
Short Digest: e8b21a65

Response Measures

None

Description

Article (Oct 18, 1921) reports the Farmers' State Bank of Wenona was closed on orders of Springfield state bank examiners and temporary receivers were appointed after large shortages (~$50,000) were discovered and an alleged bank-wrecking conspiracy involving broker Jorgen Olson was uncovered. No run or depositor agitation is described. OCR errors in article text corrected (e.g., 'Wemona' -> Wenona).

Events (2)

1. October 18, 1921 Receivership

Newspaper Excerpt: Temporary receivers were appointed banks by Mr. Russel last night for both ... shortages ... were discovered on the books of each. The banks are ... the Farmers' State Bank Co of Wemona (Wenona).
Source: newspapers

2. October 18, 1921 Suspension

Cause: Bank Specific Adverse Info
Cause Details: State examiners discovered large shortages (~$50,000) and alleged involvement in a scheme by broker Jorgen Olson to 'stuff' banks with worthless securities; state auditor ordered closures and temporary receivers appointed.
Newspaper Excerpt: Two Illinois banks, controlled Olson, were closed on orders by Springfield by state bank examiners ... Shortages of $41,000 and also have been discovered $50,000 on the books ... the Farmers' State Bank Co of Wemona.
Source: newspapers

Newspaper Articles (1)

1. October 18, 1921 Free Trader-Journal and Ottawa Fair Dealer Ottawa, IL

Article from Free Trader-Journal and Ottawa Fair Dealer, October 18, 1921

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Article Text

BLAME CONSPIRACY FOR COLLAPSE OF 2 ILLINOIS BANKS STATE AUDITOR ALLEGES PLOT TO WRECK INSTITUTIONS LIES BEHIND CRASH-ALLEGE $50,000 SHORTAGE EXISTS IN WENONA INSTITUTION. Chicago, Oct. 18.-A bank wrecking conspiracy, by which small town banks in Illinois, one of them being the Farmers' State Bank of Wenona. Just acros the La Salle county line. and probably four other middle west orn states were to have been "stuffed with millions of dollars in worthless by securities, was uncovered yesterday Springfield State Auditor Andrew Russel at Jourgen Olson, broker, of N. D., with offices in St. Paul, Minot, ing charged by the state auditor with be is organizer of the scheme. Two Illinois banks. controlled Olson, were closed on orders by Springfield by state bank examiners from yesterday. Large shortages, it charged. have been discovered on the is books of each. The banks are The Union State Bank of Hanover, a shortage of all The with State $75,000 Bank of Bardolph. III. with a shortage of $80,000. Temporary receivers were appointed banks by Mr. Russel last night for both Shortages of $41,000 and also have been discovered $50,000 books which of two other Illinois on the Olson owns controlling banks in esta-the People's State Bank of inter chester and the Farmers' State Bank Co of Wemona. Pledges by the board of director. of these banks to make good shortages caused State Auditor Russel the to the allow them to continue open until investigation is completed Leo N. Kapland, cashier of the over Bank, who disappeared last Han day the after examiners had come Tues $75,000 shortage. was captured upon yesterday. about With him had disappeared $75,000 in securities taken from safety deposit boxes. None of them was found. Kopland was captured at Junction by a deputy sheriff Davis on orders from the chief of police acting Hanover. who served on of rant Fearing charging embezzlement. him a war violence by a mob of Daviess county farmers. the Jo tios ier last night took the fugitive author cash by automobile to Galena. III. None of the missing securities found on Kopland. This caused were examiners not to believe that Kopland bank did actually carry away the $75,000 may reported as shortage. They said it paper. have existed only as worthless E. J. Woolever. cashier of the dolph State Bank, admitted that Bar trolling cdly interest in his bank. con owned by himself, in reality suppos owned he by Olson. The same situation. was stated, obtained in Hanover, where controlling interest was held in the name of Cashier Kopland. 'We took our orders from Olson he paid us regular salaries, he and He said that stock hold in the said of Hanover John K. Eadie, president of name bank, also was Olson's the Eadie, formerly owner of the Hanover ho bank. was retained as president when sold his interest to Olson A federal inquiry, based charge that alleged worthless on note the were sent by Olson through the mails is expected. The expose started last Tuesday when examiners went through books of the Olson bank at Hanover the Tuesday night Kopland disappeared Thursday lock Chief Examiner W. B. Whit Russel was sent to Hanover by Audito We are going to run down bank in Illinois which holds every this man Olson's paper, announced any of Chief We Examiner Whitlock last banks have information that the night 'dupes.' under scrutiny are not his only four He said that investigations had been recommended to the state is offices of other states in which auditors believed to be interested in Olson and North Dakota, Minnesota, Indiana banks Michigan. Cashier Kopland is 25 years old unmarried fore He lived in St. Paul and by going to Hanover. He is bonded bea Baltimore concern for $8,000.