Oswego State Bank - Oswego, KS

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: April 1, 1924*
Location: Oswego, Kansas (37.168, -95.110)

Metadata

Model: gpt-5-mini
Short Digest: ed20df9f

Response Measures

None

Description

Article reports the failure/closure of the Oswego State Bank in April 1924 and related litigation over the state deposit guaranty fund. No contemporaneous run is described in the text; the piece discusses the bank's failure and claims against the guaranty fund. Date extracted as April 1924 (day not specified).

Events (1)

1. April 1, 1924* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank failure/insolvency in April 1924 leading to its closure; article discusses claims against guaranty fund after the bank's failure and alleged lack of notice that bank left fund protection prior to failure. (Reason classified as bank-specific adverse information because the piece treats the institution as having failed rather than describing a run or external shock.)
Newspaper Excerpt: the failure of the Oswego State bank April 1924.
Source: newspapers

Newspaper Articles (1)

1. April 12, 1926 The Iola Register Iola, KS

Article from The Iola Register, April 12, 1926

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Article Text

INTO COURT RULING GUARANTY FUND DECISION HITS Only One Million Dollars Available Now To Meet Claims of Five Millions. the Associated Press) Topeka, Kans., April state bank fund guaranty dealt two serious blows by the Kansas supreme court in its decision late In test case brought by ber of state banks to determnie their responsibility to the fund afttheir withdrawal from its protection, the court held the banks could be considered liable only the extent of bonds deposited them with the state second case brought by the Labette county cost the guaranty fund more than because failure Carl as state bank commissioner notify depositors the Oswego state bank that was longer protected by the state fund before its failure 1924. Claims aggregating nearly five million dollars are pending against guaranty fund. The decision court, ruling that banks from the guaranty fund are liable only to the extent of their deposited bonds. mákes available only one million dollars meet these claims. The court pointed out that bank may months notice its from the protection of the fund. These blows made impossible the payment claims against the fund and renprobable legislation amending repealing the guaranty law the next legislative session. More than $300,000 in deposits was stake the mandamus suit brought against the state bank the Labette counThe action aftermath the failure of the Oswego State bank April 1924. The county treasurer, believing the bank the protection the state bank guaranty fund. had county funds deposit in the institution closed doors. Private depositors had in the In suing Roy Bone, bank County Payne Ratner sought to fix rather his Carl for the Mr Peterson had notified bank about month before its collapse that its membership the fund canceled of repeated lations of the banking The county contended the missioner did far enough. Instead merely instructing the bank officers "remove the guarenty reference guaranteed deposits from the windows and stationery, he also should have posted the bank card showing the depositors that their funds longer protected by the Security to the depositor, not curity to the bank, was the pose the Mr. Ratner quoted the title the law act for the security in the banks of Kansas, the bank depositors guaranty fund. "Membership the guaranty, fund, said county attorney made by state bank the state bank benefit of third party, depositor The has no more right to revoke the contract than fire insurance has right to cancel the agent policy when he sees building Counsel to defend the commissioner was employed the state bankers association. torneys contended the commissioner's duty was to protect the against bad banking guaranty law contract the fund and member banks by which the fund of the bank,' they first ment the guaranteed banks must stand rigid and must be solvent and properly managed."