State Bank - Valparaiso, IN

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: January 15, 1920
Location: Valparaiso, Indiana (41.473, -87.061)

Metadata

Model: gpt-5-mini
Short Digest: 00802a0d4142c7ab

Response Measures

None

Description

Article (Omaha Daily Bee, 1920-01-15) reports the Valparaiso State Bank had large shortages, discovery of falsified accounts by the cashier, and that the state asked the attorney general to appoint receivers. No run is mentioned; the bank is being placed in receivership (government action) and effectively closed.

Events (2)

1. January 15, 1920 Receivership

Newspaper Excerpt: A complaint was filed ... charging him with falsifying accounts. I have asked the attorney general's office to appoint receivers for the bank at once.
Source: newspapers

2. January 15, 1920 Suspension

Cause: Government Action
Cause Details: State supervision discovered large shortages, overdrafts, bad securities and alleged falsified accounts; state requested receivers be appointed.
Newspaper Excerpt: I have asked the attorney general's office to appoint receivers for the bank at once.
Source: newspapers

Newspaper Articles (1)

1. January 15, 1920 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, January 15, 1920

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Article Text

Says Speculation Caused Valparaiso Bank Failure When questioned concerning the failure of the Valparaiso State bank, J. E. Hart, secretary of the department of trade and commerce which has supervision over state banks said: "We discovered that there was a shortage in funds at the Valparaiso State bank about 60 days ago, and asked that the cashier, R. A. Lower resign. When he resigned he turned in property amounting to from $30,000 to $40,000. "A more recent investigation developed that overdrafts, bad and doubtful securities and cash items of the bank aggregated a shortage of from $150,000 to $175,00.0. The bank books are now being examined by two bank examiners. "I have asked the attorney general's office to appoint receivers for the bank at once. A complaint was filed Tuesday against Cashier Lower, charging him with falsifying accounts. I suppose he is under arrest by now. "It is simply a case of reckless banking and speculation."