Niotaze State Bank - Niotaze, KS

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: March 1, 1917*
Location: Niotaze, Kansas (37.074, -96.014)

Metadata

Model: gpt-5-mini
Short Digest: ccf20f24

Response Measures

None

Description

Article (Topeka State Journal, 1917-03-20) reports the Niotaze State Bank was closed after an examination found it insolvent due to large shortages by cashier F. J. Erhart (about $20,000). A receiver was expected. No run is described in the text.

Events (2)

1. March 1, 1917* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Examination found large shortages (about $20,000) attributable to loose methods and cashier F. J. Erhart; bank insolvent and closed.
Newspaper Excerpt: the Chautauqua county bank since its doors were closed here last week. ... A special examination last week showed that the bank was insolvent.
Source: newspapers

2. * Receivership

Newspaper Excerpt: It is probable that a receiver will be appointed for the bank. ... Property turned over to the state, however, is expected to meet all shortages and to pay the despositors in full.
Source: newspapers

Newspaper Articles (1)

1. March 20, 1917 The Topeka State Journal Topeka, KS

Article from The Topeka State Journal, March 20, 1917

Click image to open full size in new tab

Article Text

BANK SHORT $20,000? Loose Business Methods Responsible for Closing Niotaze Institution. Shortages of F. J. Erhart, cashier of the Niotaze State bank may aggregate $20,000, according to statements in Topeka today by Examiner Hemphill, who has been in charge of the Chautauqua county bank since its doors were closed here last week. Erhart has not been arrested. He has turned over to the state bank examiner property sufficient to cover all losses, it is believed. Loose methods of bookkeeping and handling banking accounts may have been responsible for the shortages of the bank. The leaks have been growing almost since the establishment of the bank eight years ago. A special examination last week showed that the bank was insolvent. "I don't believe Erhart has profited a dollar by the shortages," said Hemphill. "It was just a loose sysem in a one man bank and I don't think he realized the leaks." Erhart's records and the books of the bank failed to tally. It was found thru an examination by Hemphill that the bank had nearly $30,000 in deposits. Records by the cashier, tho, showed about $9,000 in deposits. It is probable that a receiver will be appointed for the bank. The institution is not under the bank guaranty act. Property turned over to the state, however, is expected to meet all shortages and to pay the despositors in full.