Farmers & Merchants Bank

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: March 1, 1931*
Location: Decker, Indiana (38.519, -87.523)

Metadata

Model: gpt-5-mini
Short Digest: 4da87859

Response Measures

Capital injected, Full suspension

Other: Directors voluntarily closed bank; temporary receiver appointed and federal advance sought to reorganize.

Description

Article (Vincennes Sun-Commercial, 1931-03-17) states heavy withdrawals led the directors to voluntarily close the bank; a temporary receiver (Stuart Fisher) was appointed and reorganization financing was being arranged. The bank was closed and placed in receivership, with plans to reorganize, so I classify this as run → suspension → closure (receivership).

Events (3)

1. March 1, 1931* Run

Cause Details: Heavy withdrawals by depositors (described as 'heavy withdrawals'); no specific trigger such as rumor or correspondent failure given.
Measures: Directors voluntarily closed the bank (suspended payments) and later appointed a temporary receiver; directors signed bond for receiver.
Newspaper Excerpt: Testimony at the hearing was given to the effect that heavy withdrawals caused the directors to voluntarily close the bank.
Source: newspapers

2. March 17, 1931 Receivership

Newspaper Excerpt: Stuart Fisher ... was appointed temporary receiver for the Farmers and Merchants bank of Decker at a hearing held before Judge W. S. Hoover in Circuit court Tuesday. ... The directors signed the $25,000 bond for Fisher. ... Tom Barr, banking commissioner, ... declared there were assets sufficient to pay the depositors in full. Fisher has secured a commitment from the government whereby if $10,000 in cash is raised, the government will advance $15,000 for a total capital stock of $25,000. Thus the Decker bank can be reorganized.
Source: newspapers

3. March 17, 1931 Suspension

Cause Details: Voluntary closure by directors following heavy withdrawals; suspension appears to be a voluntary suspension leading to receivership and reorganization efforts.
Newspaper Excerpt: Stuart Fisher ... was appointed temporary receiver for the Farmers and Merchants bank of Decker ... Testimony ... heavy withdrawals caused the directors to voluntarily close the bank.
Source: newspapers

Newspaper Articles (1)

1. March 17, 1931 The Vincennes Sun-Commercial Vincennes, IN

Article from The Vincennes Sun-Commercial, March 17, 1931

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Article Text

STUART FISHER BANK RECEIVER Move Toward Reopening Decker Institution. Stuart Fisher, president of the Peoples National bank at Princeton, was appointed temporary receiver for the Farmers and Merchants bank of Decker at a hearing held before Judge W. S. Hoover in Circuit court Tuesday. Fisher was the choice of the directors of the Decker bank because of his familiarity with the Decker situation and because he is chairman of the federal agricultural relief committee, appointed by Secretary of Agriculture Hyde. Fisher has secured a commitment from the government whereby if $10,000 in cash is raised, the government will advance $15,000 for a total capital stock of $25,000. Thus the Decker bank can be reorganized. Under the federal law, farmers' paper can be discounted for eight times the capital stock, or $200,000 more than enough to take up the slow assets of the bank. Testimony at the hearing was given to the effect that heavy withdrawals caused the directors to voluntarily close the bank. All the money left in the bank belongs to the directors, it was said. Tom Barr, banking commissioner, who testified at the hearing declared there were assets sufficient to pay the depositors in full. All of the directors attended the hearing and recommended Fisher as the receiver, including, Frank Plass, president; D. H. Lane, vice president, Jacob N. Sibel, N. S. Wallen, Fred Pruesner, Dr. E. F. Small and Louis Schultz. The directors signed the $25,000 bond for Fisher. Fisher is chairman of the relief Dance Wednesday committee for 42 counties south of Indianapolis. Organization of inHARMONY HALL termediate credit banks is authorized under the terms of the bill Colored Orchestra recently passed by congress, appropriating $20,000,000 for drought relief. Six banks are already being organized, Fisher said. John T. Ballard, Princeton lawyer, appeared as counsel for the Decker bank.