Farmers Bank - Dunlap, KS

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: May 1, 1925*
Location: Dunlap, Kansas (38.576, -96.366)

Metadata

Model: gpt-5-mini
Short Digest: 4764e4aa

Response Measures

Full suspension, Books examined

Other: Voluntary assignment to State Banking Department; attempted consolidation with Guaranty State Bank

Description

Articles (May 1925) report persistent rumors and frozen assets produced heavy withdrawals, directors voluntarily closed/suspended the Farmers State Bank and turned it over to the State Banking Department. A receiver was later appointed and suits by the receiver appear in 1926–1927, indicating the bank did not reopen and was liquidated.

Events (3)

1. May 1, 1925* Receivership

Newspaper Excerpt: No receiver has been named for the Farmers bank at Dunlap, it was stated today. Docking tentatively of the bank while two examiners are still checking the records ... believed that receiver will be named early next ...; later articles refer to W. Docking, receiver of the Farmers Bank and to suits by the receiver (1926-1927).
Source: newspapers

2. May 1, 1925* Run

Cause: Rumor Or Misinformation
Cause Details: Persistent rumors about the bank's condition prompted deposit withdrawals (also compounded by frozen assets).
Measures: Directors placed approximately $7,000 received that day into a separate cash fund and returned it to depositors when the bank failed to open.
Newspaper Excerpt: Frozen assets, coupled with persistent rumors of the institution's condition, the latter leading to the withdrawal of deposits at the rate of $350 day in recent weeks, contributed to the director's decision to make voluntary assignment.
Source: newspapers

3. May 11, 1925 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Directors voluntarily suspended payments because of frozen assets and inability to sustain operations in a small community with two banks; persistent withdrawals after rumors precipitated the closure.
Newspaper Excerpt: The Farmers State bank of Dunlap which was voluntarily closed and placed in the hands of the State Banking department yesterday ... The Farmer's State bank really suspended business Saturday.
Source: newspapers

Newspaper Articles (4)

1. May 12, 1925 Council Grove Republican Council Grove, KS

Article from Council Grove Republican, May 12, 1925

Click image to open full size in new tab

Article Text

BANKING DEPARTMENT IS IN CHARGE OF FARMERS STATE Depositors not Likely to Lose Penny, According to Evan Adam, the Cashier. The Farmers State Bank of Dunlap which was voluntarily closed and placed in the hands of the State Banking department yesterday, pendthe appointment of receiver, remains in charge of Dick Wilson, examiner. Frozen assets, coupled with sistent rumors of the institution's condition, the latter leading to the withdrawal of deposits the rate of $350 day in recent weeks, contributed to the director's decision to make voluntary assignment. expect out stockholders double liability to take care of any the payment of hundred cents on the dollar to depositors," stated Evan Adams, cashier, last night. The Farmer's State bank really suspended business Saturday. Approximately $7,000 in deposits received on that day was entered in separate cash fund and returned to the depositors yesterday when the bank failed to open its doors. Directors of the Farmer's State were in session with those of the Guaranty State bank most of the day Saturday attempting to agree upon satisfactory consolidation agreement.. The Farmers has loans and discounts of $89,000. understood its directors offered to accept the amount of its stock and surplusown frozen assets and endorse all other over to the paper Guaranty at par and accrued interest if the latter would to consoliagree dation and single bank for the town. Suspension of payment by the involves approximately deposits. When the last bank statewas called for on March 23, the had deposits of $81,349.41. The $70,000 temporarily tied stitutes about half the business capital of other firms in Dunlap. but is not believed any of them will fer result of the closing yesterday. The Farmers State is the oldest banking institution in Dunlap. Organized in 1884 it financed the community through many years of panic and crop failures and remained financially sound until the war slump. weathered the first shock of disintegration of values which swept many Kansas banks into insolvency, but could not get back on stable foundation in community too small for two banking institutions. At one time prior to the war, the Farmer's State bank held the record of (Continued on

2. May 16, 1925 Council Grove Republican Council Grove, KS

Article from Council Grove Republican, May 16, 1925

Click image to open full size in new tab

Article Text

NO RECEIVER YET No receiver has been named for the Farmers bank at Dunlap, it was stated today. Docking tentatively of the bank while two examiners are still checking the records and notes held by that institution. believed that ceiver will be named early next

3. June 5, 1926 Council Grove Republican Council Grove, KS

Article from Council Grove Republican, June 5, 1926

Click image to open full size in new tab

Article Text

LIABILITY Civil Suit to Compel Stockholder in Defunct Dunlap Bank to Pay Assessment. test of the double liability law applied to bank stockholders will be made in Morris county. tion has been precipitated by the alleged refusal of one stockholder in the defunct Farmers bank to pay his assessment as levied by the receiver. The commenced in district court this morning is filed by W. Docking, receiver of the Farmers Bank. M. Hylton is named as defendant. The petition recites that the bank was found insolvent on May by the state banking department and receiver was appointed in the manner proscribed by law. That the defendant on May was the ownof five shares of the capital stock having par value of each. The plaintiff further alleges that by virtue of the laws of Kansas, shareholders of banks are additionally liable to depositors in sum equal to the par value of the stock owned. Hence the defendant in the local suit is liable to Docking, the receiver, in the sum of $500. Because of his neglect and refusal to pay same into the fund being used to liquidate the bank, the receiver asks the court to return judgment in the amount of $500 with interest at per cent from May 1925. The suit has been filed by Snyder and will be heard at the next term of court.

4. March 3, 1927 Council Grove Republican Council Grove, KS

Article from Council Grove Republican, March 3, 1927

Click image to open full size in new tab

Article Text

FILES BANK SUIT Another district court suit growing out of the failure of the Farmers State bank at Dunlap couple of years ago has been filed with the clerk of the court. The suit is brought in the name of Chas. W. Johnson, state bank receiver against Ramsey and M. M. Hylton for the of $641. The petition which covery is drawn by H. E. Snyder alleges that the first defendant gave note to the bank which was subsequently endorsed by Mr. Hylton.