First National Bank (Milbank, SD)

View Charter #6473 on SPMC View balance sheet

Episode Information

Episode UID
647301522
Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
64730 national
Charter Number
6473
Start Date
October 20, 1926
Location
Milbank, South Dakota (45.219, -96.636)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
28bb13a4bb0dbfeb

Response Measures

Accommodated withdrawals, Full suspension, Books examined

Receivership Details

Depositor recovery rate
60.6%
Date receivership started
1926-11-15
Date receivership terminated
1934-08-16
Share of assets assessed as good
53.6%
Share of assets assessed as doubtful
36.0%
Share of assets assessed as worthless
10.4%

Description

The bank closed following a run triggered by rumors; while initial reports suggested reorganization, a 1931 article confirms it remained in receivership.

Events (5)
1. October 27, 1902 Chartered
Source
historical_nic
2. October 20, 1926 Run
Cause
Rumor Or Misinformation
Cause Details
Circulation of rumors that the bank had closed led to a run by timid depositors.
Random Run
Yes
Random Run Snippet
rumor that the had closed; caused a run
Measures
The bank withstood the run for several days before deciding to close.
Newspaper Excerpt
The closing of the Milbank bank was due to the circulation of rumor that the had closed, which caused a run the part of timid depositors.
Source
newspapers
3. October 23, 1926 Suspension
Cause
Rumor Or Misinformation
Cause Details
The bank suspended operations after being unable to quiet a run triggered by rumors.
Newspaper Excerpt
Two more South Dakota closed their doors, the First National bank Milbank... The bank the run for several days then It and was concluded the part of wisdom to close the institution
Source
newspapers
4. November 15, 1926 Receivership
Source
historical_nic
5. July 21, 1931 Receivership
Newspaper Excerpt
Perry Peters. as receiver the First National bank in Milbank, late afternoon filed in federal court here
Source
newspapers

Newspaper Articles (3)
1. October 23, 1926 Argus-Leader Sioux Falls, SD
Article from Argus-Leader, October 23, 1926

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Article Text

RUMORS CAUSE BANK TO FAIL Timid Depositors Start Runs on Banks at Milbank and Webster Reopen Milbank, Oct. 23.-Two more South Dakota closed their doors, the First National bank Milbank the Security Bank and Trust company Webster. In each case there are said to be prospects for the institutions being reorganized and reopened. The closing of the Milbank bank was due to the circulation of rumor that the had closed, which caused a run the part of timid depositors. The bank the run for several days then It and was concluded the part of wisdom to close the institution and call in federal bank examiner to adjust affairs. The of. ficers say the remaining depositors no for worry, as the bank has in the way of good loans, yet due, which sufficient to take care the liabilities. Closing banks Waubay, Ortley and other places is held responsible for run on the Security Bank and Trust company Webster which caused the closing of the bank. The bank withstood the run for about one month, the officers would come quieted. but as the run continued The was decided to suspend payments. bank, borrowed no money and was in as good condition as bank be depositors perfectly safe had they not frightened and started the run. Officers of the bank further that they expect pay depositors in full whether the bank is reopned or not.

2. October 24, 1926 The Sioux City Journal Sioux City, IA
Article from The Sioux City Journal, October 24, 1926

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Article Text

MILBANK AND WEBSTER BANKS CLOSE DOORS Falls, Oct. more South Dakota banks have closed their doors, the First National bank of Milbank and the Security and Trust company Webster. case there be pects for the institutions being reorganized and reopened. closing the Milbank bank the that the closed, which caused part timid The bank the for days and then close the institution call bank aminer adjust remaining for worry, the bank has sources the good not due, which to take liabilities. Closing banks Ortley and other places held responsible the Security Bank and Trust company The bank withstood for about month, officers depositors would become quieted, but the tinued decided suspend ments. The bank, announced, borrowed money and was good condition could perfectly safe had they not become frightened started the of the bank pay depositors full whether the bank reoponed or not. YOUTH SENT TO "PEN" FOR ATTACKING GIRL Oct. Earl Veeder, of tenced serve and year the state at Sioux Falls, when pleaded guilty statutory charge before Judge N. Skinner circuit court Hayti. Veeder arrested here the complaint of girl that had attacked in hunting lodge. Veeder States Attorney Vern Wohlheter taken Hayti, where he indicated would plead guilty before circuit judge. The girl told authorities, when fronted Veeder, admitted her story, that was taken with two other companions in closed car the hunting lodge by the This youth. the third statutory offender who been sent the penitentiary from Watertown the three weeks, and another, charged with similar offense, is being held in the county jail trial November of circuit court.

3. July 21, 1931 Argus-Leader Sioux Falls, SD
Article from Argus-Leader, July 21, 1931

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Article Text

PROMISSORY NOTE IS BASIS OF SUIT Milbank Bank Receiver Brings Action Against Aberdeen Man In U. S. Court Asking $721 42. Perry Peters. as receiver the First National bank in Milbank, late afternoon filed in federal court here against Thad Fuller, AberThe complaint alleges that Mr Fuller executed the First National in Milbank a note for on 1925 and that on October the was paid on it by Mr. Fuller Since that time, the complaint alleges, no has been paid the of due plaintiff The plaintiff who temporary resident Milbank encaged in liquidating the affairs the in the amount due. plus and costs and disbursements in this Waddel & Dougherty, are attorneys for the plaintiff.