Severy State Bank - Severy, KS

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: December 16, 1913
Location: Severy, Kansas (37.622, -96.228)

Metadata

Model: gpt-5-mini
Short Digest: 5b8010af

Response Measures

None

Description

The bank was placed under an examiner in mid-December 1913 and formally closed/suspended in early January 1914 due to inability to realize loans (bad loans/crops). The state banking department 'nursed' and reorganized the institution and it reopened in February 1914. No evidence of a depositor run is described in the articles.

Events (3)

1. December 16, 1913 Other

Newspaper Excerpt: State Bank Commissioner Charles M. Sawyer today placed Deputy Examiner Bidwell in charge of the affairs of the Severy State bank pending adjustment of the bank's affairs. ... It was to avoid the possibility of a receiver ... that the state banking department placed a deputy examiner in charge of the affairs of the Severy bank. Inability to realize on securities is said to be the cause of the bank's trouble. The institution is operating under the bank guaranty law. ... While no report has been received from the examiner in charge, it is not believed that a receiver for the institution will be necessary. The Severy State bank is operating under the bank guaranty law and its deposits are protected by the state bank guaranty fund. M. J. Bidwell is president of the bank and G. Norton is cashier. At the present time the bank has on hands about $16,000 in cash, with notes and securities to cover the balance of the deposits, surplus and capital, aggregating $100,000. It was to avoid the possibility of a receiver, according to a report in the bank commissioner's office today, that the state banking department placed a deputy examiner in charge of the affairs of the Severy bank. As soon as the affairs of the bank can be placed in good condition or collection made on outstanding paper, the institution will be turned back to the bank officials. The Severy State bank is operating under the bank guaranty law and its deposits are protected by the state bank guaranty fund. While no report has been received from the examiner in charge, It is not believed that a receiver for the institution will be necessary. M. J. Bidwell is president of the bank and G. Norton is cashier. The Severy State bank is operating under the bank guaranty law and its deposits are protected by the state bank guaranty fund. While no report has been received from the examiner in charge, It is not believed that a receiver for the institution will be necessary. M. J. Bidwell is president of the bank and G. Norton is cashier. The Severy State bank is operating under the bank guaranty law and its deposits are protected by the state bank guaranty fund. While no report has been received from the examiner in charge, It is not believed that a receiver for the institution will be necessary. M. J. Bidwell is president of the bank and G. Norton is cashier. The Severy State bank is operating under the bank guaranty law and its deposits are protected by the state bank guaranty fund. While no report has been received from the examiner in charge, It is not believed that a receiver for the institution will be necessary. M. J. Bidwell is president of the bank and G. Norton is cashier. The Severy State bank is operating under the bank guaranty law and its deposits are protected by the state bank guaranty fund. While no report has been received from the examiner in charge, It is not believed that a receiver for the institution will be necessary. M. J. Bidwell is president of the bank and G. Norton is cashier. (abridged due to repetition in OCR.)
Source: newspapers

2. January 10, 1914 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Inability to realize on loans (bad loans) and poor local crops led stockholders to close the bank pending examination.
Newspaper Excerpt: The Severy State Bank was closed after the recent financial statement, which showed $84,000 deposits, $8,000 bills payable, with only $16,000 cash on hand. ... Bad crops and inability to realize on loans caused the temporary closing.
Source: newspapers

3. February 24, 1914 Reopening

Newspaper Excerpt: The Severy State bank, which failed in December, when it was discovered that President Bidwell had stocked the bank with bad loans and gutted the assets, was reopened today under the direction of Bank Commissioner Charles M. Sawyer. ... Instead of naming a receiver, the banking department sent an examiner to the town to take charge of the business and the bank reopened this morning. The Severy bank starts business with a $25,000 capitalization, $5,000 surplus and $80,000 in deposits. M. A. Thompson ... will remain with the institution for several days until the details for the reopening are fully worked out. M. S. Reed is cashier of the reorganized bank, which has for its stockholders and directors some of the most prominent business men and farmers in the county.
Source: newspapers

Newspaper Articles (5)

1. December 16, 1913 The Topeka State Journal Topeka, KS

Article from The Topeka State Journal, December 16, 1913

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Article Text

SEVERY BANK FAILS. Sawyer Places State Examiner in Charge Under Guaranty Law. State Bank Commissioner Charles M. Sawyer today placed Deputy Examiner Bidwell in charge of the affairs of the Severy State bank pending adjustment of the bank's affairs. The bank is carrying nearly $100,000 in loans and its recent statement shows about $80,000 in deposits with a capitalization of $25,000 and a surplus fund of $10,000, Inability to realize on securities is said to be the cause of the bank's trouble. The institution is operating under the bank guaranty law. Following the recent call of the bank commissioner for a sworn statement, officials of the bank held a conference and decided that the institution's affairs were in such shape that they would seek the assistance of the banking department in settling their financial troubles. At the present time the bank has on hands about $16,000 in cash, with notes and securities to cover the balance of the deposits, surplus and capital, aggregating $100,000. It was to avoid the possibility of a receiver, according to a report in the bank commissioner's office today, that the state banking department placed a deputy examiner in charge of the affairs of the Severy bank. As soon as the affairs of the bank can be placed in good condition or collection made on outstanding paper, the institution will be turned back to the bank officials. M. J. Bidwell is president of the bank and G. Norton is cashier. The Severy State bank is operating under the bank guaranty law and its deposits are protected by the state bank guaranty fund. While no report has been received from the examiner in charge, It is not believed that a receiver for the institution will be necessary.

2. January 10, 1914 Western Kansas World Wakeeney, KS

Article from Western Kansas World, January 10, 1914

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Article Text

Severy Bank Suspends. The Severy State Bank was closed after the recent financial statement, which showed $84,000 deposits, $8,000 bills payable, with only $16,000 cash on hand. The stockholders held a meeting and decided to close the bank until the state bank examiner could examine its affairs. Bad crops and inability to realize on loans caused the temporary closing. The stockholders are men well able to see that every cent of deposits is paid. The bank is also protected by the state guarantee fund.

3. February 24, 1914 The Topeka State Journal Topeka, KS

Article from The Topeka State Journal, February 24, 1914

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Article Text

BANKS TO REOPEN. Sawyer "Nursed" Severy and wood Banks Along. The Severy State bank, which failed in December, when it was discovered that President Bidwell had stocked the bank with bad loans and gutted the assets, was reopened today under the direction of Bank Commissioner Charles M. Sawyer. The Citizen's State bank of Ellinwood, which failed a week later, is to be reopened next Monday, according to the present program. Under his policy to refuse the appointment of receivers for banks in financial difficulty, Sawyer 'has "nursed" the two institutions for nearly three months and provided for their reopening with a bright business outlook. In the case of the Severy bank, the stockholders voted to demand a receiver and threw up' their hands when they learned the true condition of their institution. Instead of naming a receiver, the banking department sent an examiner to the town to take charge of the business and the bank reopened this morning. The Severy bank starts business with a $25,000 capitalization, $5,000 surplus and $80,000 in deposits. M. A. Thompson of Blue Rapids. who has been in charge of the bank, will remain with the institution for several days until the details for the reopening are fully worked out. M. S. Reed is cashier of the reorganized bank, which has for its stockholders and directors some of the most prominent business men and farmers in the county. Next Monday the Ellinwood bank will reopen with a capitaization of $25,0000 and nearly $100,000 in deposits. Henry Warren, a deputy bank commissioner, who has had charge of the reorganization under Sawyer's direction, has been elected to the cashiership of the bank and will remain in Ellinwood.

4. March 2, 1914 The Topeka State Journal Topeka, KS

Article from The Topeka State Journal, March 2, 1914

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Article Text

Ellinwood Bank Open Again. The Citizens' State bank of Ellinwood, which closed its doors in December, was reopened for business today with deposits aggregating nearly $100,000 and a capitalization of $25,000. Harry Warren, who has been in charge of the bank much of the time since the failure, is the new cashier. He was formerly connected with the state bank commissioner's office and was sent to Ellinwood by Charles M. Sawyer, state bank commissioner. Less than a week ago the Severy State bank opened its doors. The failure of the two banks occurred at practically the same time. Their affairs were wound up without the delays and expense of receiverships and both institutions now have every indication of a prosperous season ahead of them.

5. March 5, 1914 Abilene Weekly Reflector Abilene, KS

Article from Abilene Weekly Reflector, March 5, 1914

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Article Text

HANDLING BANKS WELL The Severy State bank, which " failed in December, when it was discovered that President Bidwell had 0 stocked the bank with bad loans and gutted the assets, has been reopened r under the direction of Bank Commissioner Charles M. Sawyer. The r Citizens State bank of Ellinwood, which failed a week later, is to be 2. reopened next Monday, according to the present program. Under his policy to refuse the appointment of receivers for banks a in financial difficulty, Sawyer has "nursed" the two institutions for nearly three months and provided for their reopening with a bright business outlook. In the case of the Severy bank, the stockholders voted to demand a receiver and threw up their hands when they learned the true condition of their institution. Instead of naming a receiver, the banking department sent an examiner to the town to take charge of the business and the bank reopened. The Severy bank starts business t with a $25,000 capitalization, $5000 a surplus and $80,000 in deposits. M. t A. Thompson of Blue Rapids, who c has been in charge of the bank, will t remain with the institution for seva eral days until the details for the a reopening are fully worked out. M. g S. Reed is, cashier of the reorganizk ed bank, which has for its stockholders some of the most prominent business men and farmers in the county. Next Monday the Ellinwood bank M will reopen with a capitalization of at $25,000 and nearly $100,000 in deby posits. Henry Warren, a deputy St bank commissioner, who has had an charge of the reorganization under Sawyer's direction, has been elected to the cashiership of the bank and B will remain in Ellinwood. F Commissioner Sawyer is doing a good job. If the same management DI had prevailed heretofore at least one bank in Abilene would not have suspended and with efficient examnation another failure would have isl been prevented. A bank commisru ioner can do much to help the co banks of the state and Sawyer is the doing it right. tio