6500. Commercial State Bank (Bonner Springs, KS)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
September 21, 1932
Location
Bonner Springs, Kansas (39.060, -94.884)

Metadata

Model
gpt-5-mini
Short Digest
77bcbe10

Response Measures

Partial suspension

Other: Depositors signed moratorium statements (year-long) to allow reopening.

Description

A run occurred Sept 1932 (about $16,000 withdrawn), the bank closed in September and remained closed while depositors were asked to sign a one-year moratorium; the bank reopened in mid-December 1932 after depositors agreed not to withdraw funds for a year. Cause of run tied to prior local bank failure (Farmers' State Bank) and gradual loss of confidence.

Events (3)
1. September 21, 1932 Run
Cause
Local Banks
Cause Details
Gradual withdrawals triggered by loss of confidence after the Farmers' State Bank closed the previous December; $16,000 withdrawn in the reported run.
Measures
Business men canvassed depositors to pledge funds; depositors were asked to agree to a 30-day moratorium and to leave part of deposits for a year; state commissioner ordered bank to remain closed until 90% sign statements.
Newspaper Excerpt
The run, according to bank officials, has been gradual since the Farmers' State bank closed here last December... a run on the bank Wednesday when $16,000 was withdrawn.
Source
newspapers
2. September 22, 1932 Suspension
Cause
Local Banks
Cause Details
Bank remained closed following the run and ongoing withdrawals tied to local bank failures and loss of confidence; state bank commissioner ordered closure until depositors agreed to moratoriums or statements waiving immediate claims for a year or 90% compliance was achieved.
Newspaper Excerpt
Meanwhile the bank remained closed ... the closed Commercial State bank of Bonner Springs Friday had signed statements allowing their deposits to remain in the bank for one year.
Source
newspapers
3. December 17, 1932 Reopening
Newspaper Excerpt
By an agreement of depositors not to withdraw funds for year, the Commercial state bank which closed last September has re-opened here.
Source
newspapers

Newspaper Articles (3)
1. September 22, 1932 St. Joseph News-Press St. Joseph, MO
Article from St. Joseph News-Press, September 22, 1932

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Article Text

SLOW RUN ON BANK. Bonner Springs, Kan., Men Make Effort to Save Institution BONNER SPRINGS. Kan. Sept. Business today began personal canvass of the 1,100 the Commercial State Bank, only bank here, in an effort to keep the institution open. The bank has been the target for slow for several months and officials said must close unless is halted. Business who said "wholesale foreclosures on business and real estate" will result the bank closes, led the fight to Depositors are being asked to agree thirty-day moratorium on demands against the bank and agree to leave part of their deposits for year. The business men will confer with H. W. Koeneke, state banking commissioner. tonight. Meanwhile the bank remained closed proclamation of May E. Lightfoot describing the situation, affixed the door.

2. September 23, 1932 Kansas City Journal Kansas City, MO
Article from Kansas City Journal, September 23, 1932

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Article Text

SHOW FAITH IN BANK Depositors Pledge to Leave Money for Year. BONNER SPRINGS, KAS., Sept. 23.-(Special)-Over 500 depositors of the closed Commercial State bank of Bonner Springs Friday had signed statements allowing their deposits to remain in the bank for one year. The action followed a run on the bank Wednesday when $16,000 was withdrawn. The run, according to bank officials, has been gradual since the Farmers' State bank closed here last December. C. W. Star, Kansas state bank commissioner, has ordered the bank to remain closed until 90 per cent of the depositors sign statements waiving claims to their deposits for year M. W. Vaughn, editor of the Bonner Springs Chieftain, presided at mass meeting in the high school auditorium Thursday night. There was some dissentation among the depositors when the plan for the year moratorium was presented. Business men here were busy Friday circulating the statements to the depositors over Johnson, Wyandotte and Leavenworth counties. Approximately $20,000 was on deposit in the closed bank by the Bonner Springs school system and city employes and members of the school system will go unpaid until the bank's affairs are straightened out, it was said.

3. December 17, 1932 Council Grove Republican Council Grove, KS
Article from Council Grove Republican, December 17, 1932

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Article Text

A BANK REOPENS Bonner Springs, Dec. ged by an agreement of depositors not to withdraw funds for year, the Commercial state bank which closed last September has re-opened here.