Farmers State Bank (Kearney, NE)

Episode Information

Episode UID
76004171555
Episode Type
Run Only
Bank Type
state
Bank ID
7600417 routing
Routing Number
76-0041
Start Date
July 30, 1929
Location
Kearney, Nebraska (40.699, -99.081)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
739b01cafde7d0eb

Response Measures

None

Events (1)

1. July 30, 1929 Run
Cause
Local Banks
Cause Details
Precipitated by the failure of the American State Bank in Kearney.
Measures
Drew on Omaha and Grand Island banks for funds; local police guarded the institution; accepted many new deposits/accounts afterward.
Newspaper Excerpt
A run on the Farmers State Bank at Kearney started Saturday morning ... was renewed Monday morning.
Source
newspapers

Newspaper Articles (5)

Article from Kearney Hub, July 30, 1929

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Article Text

MALIGNANCY OF WHISPERING. It well be said right now that there has may as not been adequate reason for bank run or bank failure in Kearney, or for that matter in the county, since the panic which swept the country in the nineties. It is true that there have been overloans and frozen credits and depleted reserves, but there has not been time when cool reason and sanity, brought into play, would not have made the closing of any bank door unnecessary. Back of each failure has been the phantom known as FEAR, which is fed by cowardice and makes itself manifest in panic and scramble to there The antithesis of fear is courage and its reaction confidence. The breeder of fear the whisperer. The cause of panic whispering. A real "run" bank can be met as an enemy in the open and has often been met and conquered by and stand against the rush of courage square the raiders. The initial whisper begins with nothing. It comes from out of the dark, and even though we know not whence it cometh, we know to certainty exactly where it is going and what the effect of its meandering will be. The run that is precipitated by whispers gives no outward sign. It does not begin with panic and rush. The first evidence is the withdrawal or quiet checking out of bank deposit, the closing out of trust company account, or the cancellation of savings and loan investment. As the whispers are repeated, with knowledge of what some one else has done, the cancellations and withdrawals quietly continue and the inevitable happens. After the counting the cost. few have got their money and are entitled to hate themselves as cowards forever after. Had each one gone ahead, doing business as usual, trusting his banker trustee, except in extreme cases of fraud or embezzlement, the institution would have remained solvent and no one would have been injured by failure. The function of bank is to loan money to depositors. Your money and my money has been invested in loans to various patrons of the bank. reserve of cash is maintained, but if and in large numbers make simultaneous demand for our money we can not get it because it can not be demanded or secured immediately from the patron who is having the temporary use if do not actually need that money but conclude that must get nevertheless. The result is another closed door; receivership or liquidation and loss to those who did not get in while the getting was good; with wide suffering and widespread disturbance of business. This the work of the whisperer! This is the wreck that fear and cowardice have wrought! Of all senseless things under the sun run on bank or other financial institution has got all other senseless things beaten to standstill, because it defeats the end that is apparently in view. Last Saturday morning just one bank remained in Kearney. In the minds of the cowards that was one too many. A rush and run was doubtless forestalled by the decisive action of solid business community. The whisperers were indeed taken unawares, caught napping, and did not have time to make rally, either singly or in pairs. Then after the first panicky feeling had subsided everyone became aware that the Farmers State Bank of Kearney stool like rock in wilderness, financial fortress where everyone could find protection and security. Nothing short of state of siege and spirit of murderous frenzy and premeditated assassination could have weakened that protection and security.


Article from North Platte Daily Telegraph, July 30, 1929

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DEPOSITS REPLACING "RUN" ON KEARNEY STATE BANK Kearney, Neb., July 30. (AP) run the Farmers' state bank Saturday soon turned into profitable business for the only one left Kearney since the failure the American state bank several days ago, Lowe, sr., president, reported today. Mr. Lowe said the bank had cepted 40 new accounts the past few days and that deposits yΓ©sterday far exceeded the withdrawals Saturday.


Article from The Omaha Evening Bee-News, July 30, 1929

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Heavy Business Succeeds Run on Bank at Kearney Neb. July 30. The the Farmers State bank Saturday has turned into profitable business for the instituonly one left in Kearney since failure of the American State bank several days ago, J. G. Lowe ar., president, reported Tuesday Mr. Lowe said the bank had accepted 40 new accounts in the last few days and that deposits Monday far exceeded withdrawals


Article from The Kearney Daily News, August 1, 1929

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Following the closing of the doors their two weeks vacation trip to the the American State Bank of this the Amercian With the closing of Yellowstone National Park and Saturday morning, plans State of this Saturday Bank city delightful and entertaining already well in the making for there was considerable Salt Lake City, they morning Going and opening of the organization citement and feeling of unrest apparvisited days in that historic banking institution at an early date. of the depositors of and the among some place, taking in Saltair, meeting of the depositors the bank. This of had the closed course beach, vistinig the Mormon Temple bank was held at Junior few tendency contaminate and hearing the noonday concert school auditorium on Monday remaining the depositors of the only the big organ, the Brigham Young of this week there being ing bank, the Farmers State Bank, and cottage and monument and then eight hundred in attendance, and the withdrawal of Yollowstone where they precipitated west the choice of the meeting that of by small number depositors. entered the seeing the dance park, organizaion plans, as explained carried Contrary to story the baby Indians who delight Bank Commissioner Wood, be adop. where an Omaha paper Tuesday morndance for the youngsters and and work with his end in view the folks the ing, there not the white join in many started once. State Bank Saturday children. Farmers on dance, especially the They George Wood, state bank commis- which renewed Monday places was visited all principal sioner, was present the meeting ferred, nor has there been run interest the Park, including the and fully explained the and clearly the institution at any time since the Geysers Old Faithful Inn, Lake courses to the depositors Bank. open closing of the American State Lake Yellowstone and enjoypertaining to the American State There considerable amount steamboat trip on the lake, Bank. He first spoke to great extent remainwithdrawn from the which reputed to be the highest the receivership plan, which bank Saturday, but should North America, the Canon Hotel stated the outset that he did not taken consideration that porsituated in the most beautiful part favor, but went into details and tion of the withdrawals nothing of the Roosevelt Lodge from park, clearly set forth advantages, there under more than usual occurance where walked Lost Falls, they be and the disadvantages of any, normal conditions. and then Mt. Washburn, 10,384 such method in winding the above sealevel to the President Lowe of the Farmers feet top fairs closed banks. reached twelve State Bank and the directors of the which by gradual The plan of reorganization, made institution had fortified the bank climb. After making thorough possible through an act of the legisfamous it position to with trip through the Geyser that in cope lature the last session, was then returned the Canyon the situation at hand, and had such Basin they to by Mr. Wood and he did explained there Hotel and went Cody, the east on the bank taken place not hesitate to assure the listeners the back cash hand to every deentrance to park, coming on pay that he heartily sympathy Denver where visited Rocky mand made the institution. they upon with this plan and hoped the deposi National then There nothing to when Mountain Park and guess tors of the American State Bank home. They left here July bank position meet the situon would adopt such plan. To subthis safe and after first seeing their dauhgter and ation way. that this the husband, Mr. and Mrs. Anan Ray- sound banking institution. better only plan of procedure, mond and young son Spencer for At the meeting of the depositors pointed with much pride the their home in Omaha. They returned the closed American State bank that since the enactment of the July 25th sending the Bank CommissionMonday evening, granting the right of reorganthrough to their home Omaha. Wood assurred the audience that ization by the depositors of closed the Farmers State bank was in the bank, ten out of fourteen closed best shape. He went further to of banks in the state have state that no matter how Belville Central run, Owen of City cessfully reorgonized and opened and safe and sound bank Grand heavy, on and Phyllis Bernice Frye of are present working would not cause the closing of its reorganization plan. Island were united in marriage doors. The terday afternoon the Baptist meeting was presided over Coon officiating There is every indication that the Horace Carey selected chairman, manse, Pastor of Mr. Farmers State bank in this class. The the only and and Berbig named secre- groom Sam'l Belville. did his high The president and directors of the tary. Following the plan outlined and institution experienced no difficulty Mrs. Wood, the chairman named school work Central City delay in thousands of attended Grand Island College getting committee fifteen depositors hand that crisis may asked retire and select and the State University any associated The newly organized Dawson committee of five, who could be the present time he father County State bank at Lexington lected from within without farming operaThe bride the pressed confidence in the remaining committee of fifteen, and the tions. bank this city by rallying their selected of Mr. and Mrs. Wm. Frye. She of mittee of five were with several thousand dollars committee did her high school work Grand support depositor's had while another shipment work in connection with the bank Island and recently has currency, thousands of dollars was received aminer, Mr. Cassel, tion with the telephone company. going from another city. safe and sound Parents both the bride and the assets of the bank and determine bank in to all the the position present statue of institution. accompanied brief wedding to the money needed to meet crisis. This The committee named and After trip should dispel the unanimously by the meeting mountains, the happy young couple proved dition of the Farmers State bank of of return Central City where composed Horace Carey, Henry establish their home. Kearney. Knutzen, George Herring, they Wittera Bessie. These That the business interests of the and The funeral service of Gaddian city and community might be saved gentlemen acceded to the wishes the and Pugsley was held yesterday after- from disastrous situation, joint other depositors they 4:30 in the Bower Funeral meeting of the Rotary, Kiwanis and now engaged in going over the sets of the bank, selecting that Home, conducted by Pastor Cosmopolitan clubs the city was tion would be Coon the Baptist Church. Mr. held the Fort Kearney hotel Satnotes which considwas old. He had urday which time the dΓ©sirable assets go into Pugsley years morning Such been invalid for years, the business the city expressed reorganization. assets many considered undesirable will result sunstroke and passed their confidence in the Farmers State but will still remain the hospital in Hastings. Ed. bank and gave assurrance that the aside, and will and Mrs. Fred Griss situation would be dealt with erty the depositors. Pugsley present off the and daughter, Dan Enos nephew, the best possible manner. charged against capital the bank. The living in Kearney. Interment The meeting was addressed surplus of depositors reduction will the Kearney cemetery. members of the various clubs and at the close of the meeting resolutions portion of the undesirable assets The local National Guard Com- adopted follows: maining, which will determine the until the the known the 120 Wagon Com- civic clubs of Kearney, Roproper time, public may pany, obliged to take dollar pany the Nebraska National Guard, tary, Cosmopolitan and Kiwanis, per on deposit when the institution closed. together with the Medical Depart- joint assembled recognizing meeting While the committee not ment detachment, are making the present situation and its possiper- propmitted out information for attending the bilities, do hereby present the folto give any preparations until the time, th epublic state which opens the lowing resolutions: proper may camp assured that the condition Ashland next Monday. The hereby reaffirm our faith in camp the institution bad two units will have from to the community consisting of Kearnot nearly some would to make believe together with the officers. The and its environs as potential try and thought this time the will under the center. Its people are work checking the affairs of Capt. Guy Henninger, and the right, and intelligent. Its generous bank will be completed within short medical detachment under the in soil are inalienable. Our and that the depositors will mand Dr. Wallace climate salubrious. The obliged concede only small boys will enjoy much improved tions of the community are of the their this as new and better most desirable kind. Our financial deposits. camp year As explained and outlined by Bank buildings have been constructed institutions all times render courCommissioner Wood, will become expense of about teous, careful and invaluable service necessary for stockholders in the all deserving patrons. In short bank to subscribe stock rMs. Thompson and daughters assets incalulable. organized are the amount of sixty thousand dollars visited the Ben Worthing home "Now, therefore, (resolved: and We have good authority and Overton this week. That pledge our earnest confifeel perfectly safe telling dence sympathetic support to the readers that there already The men are providing the special State bank in its laudable are ready music for the services the effort to the credit of the practically keep plete the reorganization of the bank Church next Sunday. munity unsulied. That we direct the soon the findings of secretary of this assembly to transmittee and examiner are presented Mrs. Kenneth Smith of Omaha Mr. Louis Stutt our earnest the depositors and plans for reor- visiting her sister rMs. Eva Jones. in his time of physical ability, and our earnest hope for his That thank him speedy recovery. for the kindnesses rendered the many Kearney and pledge citizenry him heartiest cooperation his efforts at rehabilitation of the financial institution over which he sides. "Believing that service the highest good, appeal to our fellow citizens to employ courage, forbearance and hope the crisis the hour, avoiding vain and unprofitable accusations and speculations. "Be it further resolved: That copy of these resolutions be furnishthe of the city, President Lowe and President Stutt. "Signed by the committee this day of July, GEO. MARTIN, RAY TURNER,


Article from Superior Weekly Journal, August 1, 1929

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MAKE RUN ON KEARNEY BANK A run on the Farmers State Bank at Kearney started Saturday morning and which let up in the afternoon, was renewed Monday morning. Bank officials drew on Omaha and Grand Island banks for money and local police were forced to guard the institution. The run is said to have been precipitated by the failing of the American State bank.