Liberty State Bank

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: March 4, 1927
Location: Paola, Kansas (38.572, -94.879)

Metadata

Model: gpt-5-mini
Short Digest: 9d961cd5

Response Measures

None

Description

OCR-corrected text indicates Liberty State Bank in Paola arranged to liquidate/pay depositors after bad loans and reports circulated; no run is described. The bank will pay every cent to depositors and be liquidated, leaving two banks in Paola.

Events (2)

1. March 4, 1927 Other

Newspaper Excerpt: This Leaves Paola with two banks, the other being the Citizens' State bank. (indicates Liberty State Bank ceased operations and arranged liquidation.)
Source: newspapers

2. March 4, 1927 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank had large bad loans and decided to liquidate; arrangement made to pay all depositors in full after reports circulated about the bank's condition (insolvency due to bad loans).
Newspaper Excerpt: PAOLA BANK TO PAY DEPOSITORS ... The arrangement will result all depositors receiving every cent their money. The Liberty State bank had deposits aggregating $300,000 ... said the bank bad loans liquidate, ...
Source: newspapers

Newspaper Articles (1)

1. March 4, 1927 The Kansas City Post Kansas City, MO

Article from The Kansas City Post, March 4, 1927

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Article Text

PAOLA BANK TO PAY DEPOSITORS PAOLA, KAS., March the State bank city Miami County here toresult an made night after started funds from the Liberty State yesterThe arrangement will result all depositors receiving every cent their money, pointed out today. The Liberty State bank had deposits aggregating $300,000 and loans of tually same total. $35,000 $10,000. Frank Fisher was and Harry Snook The bank was years said the bank bad loans liquidate, face of reports circulated about the Frank W. Sponable is president of Miami National bank and the cashier. This Leaves Paola with two banks, the other being the Citizens' State bank.