5673. First State Bank (Galveston, IN)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
March 1, 1927*
Location
Galveston, Indiana (40.579, -86.190)

Metadata

Model
gpt-5-mini
Short Digest
a3393dd1

Response Measures

Full suspension

Other: Closed by state banking department after a miniature run; consolidation being considered with another local bank.

Description

Newspaper articles (published 1927-03-15) state the First State Bank of Galveston was closed by the state banking department after a miniature run on the bank. No reopening is mentioned; consolidation was being considered. Cause of the run is not specified in the text, so classified as 'other'.

Events (2)
1. March 1, 1927* Run
Cause Details
Article only describes a miniature run but gives no trigger (no explicit rumor, correspondent failure, or bank-specific scandal linked to this run).
Newspaper Excerpt
First State bank, which was closed by the state banking department after a miniature run on the bank.
Source
newspapers
2. March 15, 1927 Suspension
Cause
Government Action
Cause Details
Closed by the state banking department (regulatory action) following the run.
Newspaper Excerpt
First State bank, which was closed by the state banking department after a miniature run on the bank.
Source
newspapers

Newspaper Articles (2)
1. March 15, 1927 Chronicle Tribune Marion, IN
Article from Chronicle Tribune, March 15, 1927

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Article Text

TILLIE THE TOILER By RUSS WESTOVER A MUZZLE FOR MAC them to liquidate entirely. The other two, he was not sure about. KoKoMo, Ind., March Disclosure of a shortage of $30,000 in bonds at a meeting of stockholders of the Farmers State bank of Bunker Hill was responsible for closing of the bank, following the suicide of A. M. Zehring, cashier, stockholders said today. The bonds are in the hands of customers, who cannot be located, it was said. Functions of government of Pipe Creek township in Cass county are paralyzed as a result of the bank's closing, for John Blue, trustee, had deposited $28,000 of the township's funds there. Now he is unable to pay teachers and school hack drivConsolidation of the First State and G. W. Conwell banks of Galveston is being considered, according to L. L. McDonald, president of the First bank, which was closed by the state banking department after a miniature run on the bank. THERE IS no reason for being without the things you need. Read the classified section regularly.

2. March 15, 1927 The Huntington Herald Huntington, IN
Article from The Huntington Herald, March 15, 1927

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Article Text

TEACHERS ARE Township Business Paralyzed By Closing Of Are Talked At Galveston KOKOMO, March closure of shortage of $30,000 in bonds at meeting of stockholders of the Farmers State bank of Bunker Hill was responsible for closing of the bank, following the suicide of A. M. Zehring, cashier, stockholders said to day. The bonds are in the hands of cus tomers, who cannot be located, it was said. Functions of government of Pipe Creek township in Cass county are paralyzed as result of the bank's closing, for John Blue, trustee, had deposited $28,000 of the township's funds there. Now he is unable to pay teachers and hack drivers. Consolidation of the First State and Conwell banks. of Galveston, to being considered, according to Donald, president First State bank, which was closed by the state banking department after a miniature run on the