Liberty Center State Bank - Liberty Center, IN

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: December 23, 1931
Location: Liberty Center, Indiana (40.699, -85.281)

Metadata

Model: gpt-5-mini
Short Digest: 6258951f

Response Measures

Full suspension, Books examined

Other: State banking department to take charge / anticipated appointment of liquidating agent

Description

Article (Dec 24, 1931) reports the Liberty Center State Bank did not open Dec 23, 1931 after withdrawals triggered by the Dec 15 closing of the Poneto bank. Officials asked the state banking department to take charge and an application for a liquidating agent was expected. Sequence: withdrawals/run prompted immediate suspension and impending liquidation.

Events (3)

1. December 23, 1931 Run

Cause: Local Banks
Cause Details: Withdrawals at Liberty Center were induced by the Dec. 15 closing of the Poneto bank
Measures: Bank officials decided to close the institution and preserve assets; officials went to state banking department to ask them to take charge.
Newspaper Excerpt: The closing December 15 of the bank at Poneto is believed to have caused some withdrawals at Liberty Center that induced the Liberty Center bank officials to decided to close the institution
Source: newspapers

2. December 23, 1931 Suspension

Cause: Local Banks
Cause Details: Bank closed after withdrawals induced by failure/closing of nearby Poneto bank; closure intended to preserve assets and protect depositors
Newspaper Excerpt: The Liberty Center State Bank ... did not open for business this morning and President John B. Funk and Cashier Roy L. Mossburg went to Indianapolis to ask the state banking department to take charge of the institution.
Source: newspapers

3. December 24, 1931 Other

Newspaper Excerpt: It is expected that after an examination and audit by the state banking department that an application will be filed for appointment of a liquidating agent. The bank is believed to be virtually solvent and while stockholders may lose, it is expected that depositors will be paid virtually in full.
Source: newspapers

Newspaper Articles (1)

1. December 24, 1931 The Star Press Muncie, IN

Article from The Star Press, December 24, 1931

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Article Text

LIBERTY CENTER BANK IS CLOSED President Believes Depositors Fully Protected. Bluffton. Ind., Dec. 23.-The Liberty Center State Bank. only banking institution in the little town of Liberty Center, six miles west of Bluffton. did not open for business this morning and President John B. Funk and Cashier Roy L. Mossburg went to Indianapolis to ask the state banking department to take charge of the institution. The bank is capitalized at $25,000 and deposits total approximately $100,000 The bank is believed to be virtually solvent and while stockholders may lose, it is expected that depositors will be paid virtually in full. Two years ago when several other Wells County banks were closed. an audit by the state banking department found the Liberty Center bank to be solvent and it was re-opened with the consent of the state banking department after it had been closed temporarily to avert a run at that time. The closing December 15 of the bank at Poneto is believed to have caused some withdrawals at Liberty Center that induced the Liberty Center bank officials to decided to close the institution and preserve the assets for the best interests of creditors and stockholders. It is expected that after an examination and audit by the state banking department that an application will be filed for appointment of a liquidating agent. Woman Contracts Tularemia. Mrs. Clara Boden, 40, wife of Andrew Boden. farmer near Warren, is reported suffering from tularemia. rare malady attributed to infection from handling an infected rabbit. She has developed multiple Doctors have adopted vaccine treatment which they are hopeful will counteract the effects of the malady. Mrs. Boden has been sick several weeks Announcement was made here today that Mrs. Bertha Boden. proprietress of the Home Hotel on West Market street, and Harvey L. Ivins, chief engineer at the oil pumping station at Bracey. south of Bluffton. were married August 12 at Sedalia, Mo. They are residing at the Home Hotel here. The bride is a daughter of E. A. Bennett, Hartford City A claim of Mrs. Louisa Jetter against the estate of Mrs. Jennie C. Polley has been settled by payment of the sum of $3,000. the awarded by jury in the Wells County Circuit Court here few weeks ago. The complaint filed in court had asked $12,000. Another claim filed by Miss Jetter's husband was compromised and settled by the payment of $250. The cases came here from Jay County on change of venue. Bank Receiver Is Sought. There was filed in Circuit Court here today complaint by Luther F. Symons state banking commissioner, asking for the appointment of a receiver for the Farmers' State Bank of Poneto, which was closed on December 15. The complaint sets out that an examination of the bank has disclosed that it is in failing and insolvent condition. The complaint quotes no figures. Judge J. F. Decker designated Monday as the date for a hearing on the application for a receiver. A turkey gobbler which Elmer Bryan. farmer living two miles east of Tocsin, was planning to sell on the Fort Wayne market today was blamed primarily for fire early this morning which destroyed the barn on the Bryan farm. The turkey was one of thirty-six Bryan had planned to take to market, and only three of the fowls escaped. Whether one of these was the turk that started the fire is not known. When Bryan entered the barn before dawn he carried lighted lantern. One of the turkeys flew against the lantern. smashed it and caused it to explode. The building was fired. Hay. grain and farm imwere burned. The loss was only partially insured.