6159. North Liberty State Bank (North Liberty, IN)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
January 17, 1930
Location
North Liberty, Indiana (41.534, -86.427)

Metadata

Model
gpt-5-mini
Short Digest
53f692a9

Response Measures

Full suspension

Other: Receiver named and later sued; permanent closure with receivership.

Description

Newspaper reports state the North Liberty State Bank was forced to close Jan. 17 1930 because of a shrinkage in deposits. A run (heavy withdrawals) precipitated the closing; a receiver (John W. Schurz) was appointed Feb 4, 1930. No reopening is reported; later litigation (1931) mentions the receiver. Dates inferred from article publication context (Jan. 17, 1930 closing; receiver appointed 1930-02-04).

Events (3)

1. January 17, 1930 Run
Cause
Bank Specific Adverse Info
Cause Details
Shrinkage in deposits led to loss of liquidity; contemporaneous accounts refer to being forced to close after deposit withdrawals.
Measures
Bank closed its doors (suspended operations) after heavy withdrawals/shrinkage in deposits.
Newspaper Excerpt
On Jan. 17 the North Liberty State bank was closed because of shrinkage in deposits.
Source
newspapers
2. January 17, 1930 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension/closure described as resulting from shrinkage of deposits (loss of funds/liquidity).
Newspaper Excerpt
On Jan. 17 the North Liberty State bank was closed because of shrinkage in deposits.
Source
newspapers
3. February 4, 1930 Receivership
Newspaper Excerpt
Judge Cyrus Pattee ... named John Washington Schurz, accountant ... receiver for the North Liberty State bank. Immediately following his appointment Mr. Schurz was sworn in and made arrangements for the posting of a $10,000 bond.
Source
newspapers

Newspaper Articles (4)

Article from The South Bend Tribune, February 4, 1930

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Article Text

District Backs Rochester Veterans' Site as Hospital Rochester, Ind., will be backed site for the new veterans' hospital for which already been by This decision reached Monday night at when legion representing every post the Thirteenth met and discussed the matter. Four Bend, Elkhart, made #bids for the after much disPATTEE SELECTS cussion the local delegation withdrew its favor Rochester. Elkhart and Mishawaka followed the South BANK'S RECEIVER Bend delegation's action. The meeting called by District Bend, decide upon would Names John district in G. Schurz in its appeal for the hospital. Fight Over North Lib- Following the decision committee consisting of United States Senaerty Petition. James Watson and Arthur R. Robinson, Indiana, Representative Andrew Hickey the ThirAfter bitter controversy between teenth district was selected to work counsel for the the Indiana with government officials an effort to bring the hospital to Rochesbanking commission over the apHenry Barnhart, conpointment, Judge Cyrus Pattee gressman, appointed circuit court to-day named John Washington Schurz, accountant and income tax and appear before veterans buconsultant, receiver for the which receive the delegafunct North Liberty State bank, tions from various cities of the state Immediately following his appoint- Friday. ment Mr. Schurz was sworn Mr. Barnhart appear before made arrangements for the posting the and peti$10,000 bond. tion from the Rochester legion, Kitwo-hour battle of words raged wanis club, circuit judge in circuit Monday when Samothers that the attorney the bank visit Rochester and and one of its stockholders, presentinspect site along the banks for the Lake M. Hass, Liberty ber take charge the understood that shortly after bank's affairs. petition the the signed by 49 North citizens, lection of the site will be made and whom are in the that will bank. as be Cites Interest. let that the hospital can be occuLenn Oare, representing the pied before the summer over. state objected It is that the cost vigorously the operating the and farm Hass asked that South Bend day while trust company be named. large of physicians and nurses He pointed out that of will always be on duty. those signing the petition are stockThe site selected for the hospital holders liable under the settlement of claims. For this rea- the Carruthers farm state he they should have No. mile east of Rochesargued, no the appointment. ter. This farm acres, the Parker contended that Mr. front Lake the Hass would have the interests of the north side being bounded by the Erie and railroad. at heart that the bank It was decided to hold the district trust company would be exorbiconvention Mishawaka March 17. tant. The convention is expected to bring indicated during the contronearly 400 legion memmight be bers of the auxiliary to Mishawaka liable 100 cent for varied program of entertainon their stock in the institution. ment, which men of all Explains Motive. northern state post cities to In invited. Pat Barnes, radio announcday Judge for WGN, Chicago, expected to "There has be speaker, North


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.


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.


Article from The South Bend Tribune, January 29, 1931

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Article Text

BANK RECEIVER SUED. The Citizens' Trust & Savings bank of South Bend to-day brought suit in circuit court asking $2,100 from John G. Schurs, receiver for the North Liberty State bank. The South Bend bank is receiver for the Lakeville State bank, which, according to the complaint, holds note from the North Liberty institution dated in July. 1927