6505. Farmers & Mechanics Bank (Ludlow, KY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
April 10, 1926
Location
Ludlow, Kentucky (39.093, -84.547)

Metadata

Model
gpt-5-mini
Short Digest
11eb268d9340a14e

Response Measures

None

Description

Multiple articles (April 10–12, 1926) report the Farmers & Mechanics Bank of Ludlow closed its doors after its cashier, W. Balsly (Balsley), admitted a $30,000 shortage in his accounts and pledged property to make restitution. The coverage describes a suspension (closure) due to bank-specific adverse information (shortage/possible embezzlement). There is no mention of a depositor run, nor of the bank reopening; receivership is not explicitly reported. I therefore classify as suspension_closure but note that permanent receivership/ takeover is not confirmed in these clips.

Events (2)
1. April 10, 1926 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Cashier W. Balsly admitted a $30,000 shortage in his accounts and assumed responsibility; pledged property (900-acre farm and town lots) to make restitution.
Newspaper Excerpt
The doors of the Farmers and Mechanics bank of Ludlow, were closed today following an admission by its cashier, W. Balsly, that he $30,000 to short in his accounts
Source
newspapers
2. April 12, 1926 Other
Newspaper Excerpt
After admitting shortage in accounts... Balsly ... shot and killed himself downtown garage here today. He had been under liberty under bond pending an examination of his ledgers.
Source
newspapers

Newspaper Articles (4)
1. April 11, 1926 Joplin Globe Joplin, MO
Article from Joplin Globe, April 11, 1926

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Article Text

SHORTAGE IS FOUND IN BANK'S Cashier of Depository and Former Mayor of Kentucky Town Confesses. Ludlow, April Doors of the Farmers and chanics bank of this city closed today, because and the funds of the bank, formal board of cashier of the and former mayor Ludlow, have confessed that short accounts.

2. April 11, 1926 The Owensboro Messenger Owensboro, KY
Article from The Owensboro Messenger, April 11, 1926

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Article Text

SHORTAGE BANK Agrees To Turn Over His 900 Acre Farm To InstiDoors of Which tution, Are Closed. Ludlow, Ky., April 10 (AP)-The doors of the Farmers and Mechanics bank of Ludlow, were closed today following an admission by its cashier, W. Balsly, that he $30,000 to short in his accounts, Stricklett, city solicitor of Covington, Ky., and vice president of the bank, said Balsley had informed him of the shortage and assumed full responsibility. The cashier did not say how the money was spent, but promised to turn over all his property to the bank to make restitution, according to Stricklett. Has 900 Acre Farm This consists of 900 acre and town lots Ludlow. Stricklett estimated the value of the farm at $50,000 which (Continued on Page Six)

3. April 12, 1926 Miami Tribune Miami, FL
Article from Miami Tribune, April 12, 1926

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Article Text

CASHIER. SHORT FUNDS. COMMITS SUICIDE LUDLOW. Ky., W. cashier the Farmers and Mechanics Bank. which closed its doors Saturday after Balsey confessed short in his accounts shot and killed himself downtown garage here today. He had been liberty under bond pending an examination of his ledgers.

4. April 12, 1926 The Iola Register Iola, KS
Article from The Iola Register, April 12, 1926

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Article Text

BY HIS OWN HAND After Admitting Shortage in Accounts, Banker Goes to Room and Ends Life. (By the Associated Ludlow, Ky., Thomas Balsly, cashier the Farmers and chanics bank this city, that he was $30,000 short in his accounts, shot and killed himself when in the basement of the bank Balsly alone in the the time. Examination of the books disclosed shortage of the accounts of Balsly, last night. The bank closed its doors day morning when the cashier mitted to one of the officials that or short. Balsly at the time says the shortcaused principally by bad He deeded his to the bank property and Mrs Wm. Dingman speat Kansas City their and family.