5976. Farmers State Bank (La Paz, IN)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
February 27, 1930
Location
La Paz, Indiana (41.460, -86.308)

Metadata

Model
gpt-5-mini
Short Digest
e2694be7

Response Measures

Full suspension, Books examined

Description

Articles (Feb 28, 1930) report a small run triggered by news of other nearby bank closings (Tyner/Walkerton) that forced the Farmers State Bank at LaPaz to call in the state inspector and suspend/close as a precaution; papers say it will not reopen until an audit is completed, implying temporary suspension and expected reopening.

Events (2)
1. February 27, 1930 Run
Cause
Local Banks
Cause Details
Run began after news of nearby Tyner/Walkerton bank troubles spread, triggering panicky withdrawals by small depositors.
Measures
Directors called state inspector (Thomas Barr); board voluntarily closed bank; described as precautionary; will not reopen until completion of an audit.
Newspaper Excerpt
News of the Tyner closing spread quickly and within an hour the Farmers had ... a run on deposits forced Its closing.
Source
newspapers
2. February 27, 1930 Suspension
Cause
Local Banks
Cause Details
Suspension was precipitated by a small run and depositor uneasiness following neighboring bank failures/closings; directors voluntarily suspended operations pending audit.
Newspaper Excerpt
Directors of the Farmers State bank at Lapaz called in Thomas Barr, state inspector. Uneasiness among depositors and generally unsound business conditions were given as the reasons for the closing. The closing was described as a precautionary measure.
Source
newspapers

Newspaper Articles (4)
1. February 28, 1930 The Indianapolis Star Indianapolis, IN
Article from The Indianapolis Star, February 28, 1930

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Article Text

JOSEPH BANKS HOURS SOUTH the nities county have closed doors within hours for another has been asked by ship banking commission. Since banks of the county been after run. The State bank Tyner closed its yesterday effort to proafter small run been started. News Tyner closing spread quickly and within an hour the Farmers had for closing. The will reopen until of an audit. Lapaz Bank Shuts Down. The latest closing late this directors of the Farmers State bank at Lapaz called in Thomas Barr, inspector. Unamong depositors and generally unsound business conditions were given for the described measure The state bank today filed the Joseph Circuit court the Lakeville which closed its doors the week On Jan. the North Liberty State because shrinkday the North the State bank of Argos suspended of Lagro late today the and liquidate Applicareceiver filed and Gillespie, named temporary Stockholders said action purely voluntary pressed belief bank all deposits. Assets and liabilities not announced.

2. February 28, 1930 The Kokomo Tribune Kokomo, IN
Article from The Kokomo Tribune, February 28, 1930

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Article Text

THREE COUNTRY BANKS IN ST. JOSEPH COUNTY CLOSED South Bend, Ind., Feb. 28.--Three banks in the farming communities of St. Joseph county have closed their doors within the last fortyeight hours and H receivership for another has been asked by the state banking commission. Since Jan. six banks of the county have been closed after n run. The state bank at Tyner closed its doors Wednesday In an effort to protect its depositors after a small run had been started. News of the Tyner closing spread quickly and within an hour after the Farmers State bank of Walkerton had opened for business a run on deposits forced Its closing. The bank will not reopen until compleof an audit. The latest closing occurred late Thursday afternoon when directors of the Farmers State bank at Lapaz called In Thomas Barr, state inspector. Uneasiness among depositors and generally unsound business conditions were given as the reasons for the closing. The closIng was described as a "precautionary measure." The state bank commission Thursday fileda petion In the St. Joseph Circuit court asking a receivership for the Lakeville State arranged: bank, which closed its doors carlier Music. in the week because of frozen assets. On Jan. 17 the North Liberty State bank was closed because of shrinkage in deposits. The day Music. before the closing of the North Liberty bank the Argos State bank of Argos suspended business. Music.

3. February 28, 1930 The South Bend Tribune South Bend, IN
Article from The South Bend Tribune, February 28, 1930

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Article Text

EXAMINERS SAY WALKERTONRUN LACKED BASIS Trace Lapaz and Tyner Closings to Small Depositors. IS HERE Rome Stephenson Holds Directors May Have Taken Action Hastily." The closing of three more state in farming communities Joseph and Marshall counties the 48 hours and the impending for another was attributed panicky excitement among depositors by state banking ficials and South Bend bankers Prominent bank officials clared to-day that they are in sition to that the financial the closed institutions sound, bearing out the of state that the of deposits were absolutely the basis of the banks' books. The South Bend bankers also unteered full cooperation bring about of the small banking The banks ness Wednesday and Thursday after runs had been started deposits are the Farmers' State bank of Tyner, the Farmers' bank Lapaz the Walkerton State bank. All three their deors voluntarily after special sessions of boards of directors and state banking inspectors were called Thursday's total of banks, four Joseph three that have closed their doors in recent these. the Trust bank is the South Bend institution affected. Others North Liberty, this county, Tyner, Lapaz Argos Marshall county. Early this week the State bank business following bank officials and state banking authorities. hearing for the Lakeville bank will held before Circuit Judge Cyrus Pattee next Wednesday morning. No Danger Here. Rome Stephenson. president of the St. Joseph Loan Trust company and vice president the American Bankers' association, he expects ask State Banking Commissioner Luther Symons come to South Bend in an effort reassure the public of the stability banks in the appears that there is nothing wrong with these banks,' Mr. "and lieve we find that the boards bit hastily in ordering the with E. Miller, president of the American other announced that banks South Bend, all of which have $500,000 and 000,000 in cash hand, on beyond any possible danger. addition large the local banks hold several millions dollars in listed bonds. Secondary reserves guarantee absolute protection to positors, explained. Protect Deposits. According the directors' statements of Tyner, Walkerton and Lapaz the were to protect of deposits. said, the institution's borrowing limit had been reached. The first to the Tyner bank, which suspended business Wednesday afternoon following run on deposits, which started by small depositors. The bank has not been recently, plained, but fered., The bank capitalized at Carl Wolff of the Tyner said that the closing Continued Column Three.

4. February 28, 1930 Anderson Daily Bulletin Anderson, IN
Article from Anderson Daily Bulletin, February 28, 1930

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Article Text

TWO BANKS IN STATE CLOSED South Bend. Ind., Feb. 28. The number of banks which have suspended operations in this vicinity since Jan. was boosted to six. when the Farmers' State Bank, of Walkerton. and the Farmers State Bank. of Lapaz, closed their doors yesterday. The State Bank. of Tyner, suspended business Wednesday after noon after a small run had started. The State Banking Commission yes terday filed a petition in the St. Joseph county court asking receivership for the Lakeville State Bank, which was closed earlier in the week because of frozen assets The North Liberty State Bank was forced to close Jan. 17, because of a shrinkage of deposits. The Argos State Bank, of Argos, suspended operation Jan. 16.