7000. Salina State Bank (Salina, KS)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
July 15, 1897
Location
Salina, Kansas (38.840, -97.611)

Metadata

Model
gpt-5-mini
Short Digest
92c6df83

Response Measures

None

Description

The Salina State Bank collapsed in mid-July 1897 and the state bank commissioner appointed a deputy to take charge under a new 90-day winding-up provision. No run is described in the articles. The deputy settled claims and by Oct 19, 1897 depositors had been paid in full; the bank remained closed (wound up) rather than reopened.

Events (2)
1. July 15, 1897 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank collapsed due to insolvency: insufficient cash, large loans (some unsaleable), overdrafts to correspondents and liabilities to depositors; commissioner took charge to wind up under law.
Newspaper Excerpt
The bank failed two weeks ago and had about $1,000 in cash. Its other assets are loans amounting to $51,789.09... I appointed George Rodgers of Abilene as deputy commissioner and placed him in charge of the bank.
Source
newspapers
2. October 19, 1897 Other
Newspaper Excerpt
Special Deputy Bank Commissioner Rodgers to-day notified the banking department that the business of the Salina state bank had been wound up, and that the depositors had received their pay in full. This bank collapsed about three months ago.
Source
newspapers

Newspaper Articles (4)
1. July 29, 1897 Abilene Weekly Reflector Abilene, KS
Article from Abilene Weekly Reflector, July 29, 1897

Click image to open full size in new tab

Article Text

TO MANAGE SALINA'S BANK. G. A. Rogers Will Represent the State Bank Commissioner. State Bank Commissioner Breidenthal was in the city last evening and appointed Geo. A. Rogers deputy bank commissioner to take charge of the suspended Salina State Bank of W. P. Pierce. The bank failed two weeks ago and had about $1,000 in cash. Its other assets are loans amounting to $51,789.09, some of which would not be saleable on a forced liquidation. It owes $22,505.75 to depositors and its overdrafts on Kansas City and New York banks amount to $2,763.47. The law provides for a deputy commissioner to take charge of banks for 90 days and settle matters if possible; if not a receiver will be named. Mr. Rogers will take charge next week and spend about half the time at Salina. His admirable management as receiver of the old 1st National proves his fitness for the place.

2. September 23, 1897 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, September 23, 1897

Click image to open full size in new tab

Article Text

JOHN BREIDENTHAL Talks of His Work, the Last Four Weeks as Bank Commissioner. From the Newton Republican. John W. Briedenthal, the state bank commissioner, was in the city a short time this morning. While here he was interviewed by a reporter for the Republican and in speaking of the work he had been doing in regard to the settling up the Salina State bank and State bank of McPherson, he said: "The new banking law which was passed last winter by the legislature is proving to be a God send to depositors in banks which fail. Under this law we are allowed to appoint a deputy bank commissioner who can have charge of the bank for ninety days and is allowed to use his own judgment in settling up the bank's affairs. "Immediately upon the failure of the Salina State bank, I appointed George Rodgers of Abilene as deputy commissioner and placed him in charge of the bank. He went to work to settle all the claims. Most of the large claims he settled by trading real estate and when necessary would give a cash bonus to equal the value of the claim against the bank, in this way all the large claims against the bank were settled in a few weeks. "In with the assets we took a store, that the president of the bank W. C. Pierce had been running and we placed a man in charge of it and ran it for several weeks, doing a very good business. Several weeks ago the man in charge thought the business was slacking up and shut up the store for several deys. giving it out that he was marking down the prices, when in fact he raised the prices on many goods. The store was opened and in two days we cleared $1,400. The bank will be settled up some time this week and the depositors will get a hundred cents on the dollar when a few months ago when the bank failed a number of the depositors sold their claims for less than 50 cents on the dollar. "The affairs of the State bank of McPherson are coming out all right Mr. Rodgers has charge of this bank also. It will pay out also I believe without loss to the depositors. Senator Matthews' failure was due to the failure of the Salina bank."

3. September 30, 1897 Abilene Weekly Reflector Abilene, KS
Article from Abilene Weekly Reflector, September 30, 1897

Click image to open full size in new tab

Article Text

SETTLING IN FULL. George Rogers' Management Is Commended. In an interview yesterday Bank Commissioner Breidenthal thus complimented the management of the Salina State bank by Deputy Commissioner G. A. Rogers of this city: "Most of the larger claims he settled by trading real estate and when necessary would give a cash bonus to equal the value of the claim against the bank, in this way all the larger claims against the bank were settled in a few weeks. "In with the assets we took a store that the president of the bank, W. C. Pierce had been running and we placed a man in charge of it and ran it for several weeks, doing a very good business. Several weeks ago the man in charge thought the business was slacking up and shut up the store for several days, giving it out that he was marking down the prices, when in fact he raised the prices on many goods. The store was opened and in two days we cleared $1,400. The bank will be settled up some time this week and the depositors will get a hundred cents on the dollar when a few months ago when the bank failed a number of the depositors sold their claims for less than 50 cents on the dollar. The affairs of State bank of McPherson are coming out all right. Mr. Rogers has charge of this bank also. It will pay out also I believe without loss to the depositors. Senator Matthews' failure was due to the failure of the Salina bank."

4. October 20, 1897 Kansas City Journal Kansas City, MO
Article from Kansas City Journal, October 20, 1897

Click image to open full size in new tab

Article Text

DEPOSITORS PROMPTLY PAID. A Clause of the New Kansas Banking Law Found to Work Very Satisfactorily. Topeka, Oct. 19.-(Special.) Special Deputy Bank Commissioner Rodgers to-day notified the banking department that the business of the Salina state bank had been wound up, and that the depositors had received their pay in full. This bank collapsed about three months ago. The new banking law contains a provision which enables the bank commissioner to wind up the affairs of a defunct bank without the appointment of a receiver, providing a settlement can be effected within ninety days. The Salina state bank was the first one to collapse after the pasage of the law, and the bank commissioner experimented with that provision, with the result that the bank's affairs were closed up in short order, and the depositors received their money without the expense of a receivership. The A. D. Lucas Private Banking Company, of St. Francis, notified the department to-day that it had gone into voluntary liquidation.