Citizens State Bank (Geneva, NE)

Episode Information

Episode UID
76015871531
Episode Type
Suspension → Run → Closure
Bank Type
state
Bank ID
7601587 routing
Routing Number
76-0158
Start Date
July 1, 1927*
Location
Geneva, Nebraska (40.527, -97.596)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
c074a4f47694c1df

Response Measures

None

Description

Bank was turned over to the state guarantee commission in mid-1927, later closed after rumor-driven withdrawals and is in receivership by mid-1929.

Events (3)
1. July 1, 1927* Suspension
Cause
Government Action
Cause Details
Bank was taken over/operated by the Nebraska bank deposit guarantee fund commission (suspended and run by the commission).
Newspaper Excerpt
Seven and half months ago the Citizens State bank of Geneva was turned over to the guarantee fund commission.
Source
newspapers
2. January 5, 1929 Run
Cause
Rumor Or Misinformation
Cause Details
Repeated false and malicious rumors about the bank's stability prompted progressive withdrawals and a general run, prompting voluntary closure by officers to protect depositors.
Measures
Officers closed the bank voluntarily and notified the banking department; attempts at reorganization or sale were underway prior to closing.
Newspaper Excerpt
With this misguided withdrawal began slow but steady withdrawal of deposits... the institution was closed
Source
newspapers
3. May 24, 1929 Receivership
Newspaper Excerpt
Suit for return of alleged misappropriated payments ... by Kirk, as receiver for the Citizens State bank of Geneva (District court Friday).
Source
newspapers

Newspaper Articles (12)
1. January 19, 1928 Nebraska Signal Geneva, NE
Article from Nebraska Signal, January 19, 1928

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SHOULD GOVERNOR M'MULLEN CALL SPECIAL LEGISLATIVE SESSION Legislation Needed to Make Bank Receivers' Certificates Marketable and the Payment Depositors in Suspended Banks Possible. In the opinion of this newspaper Governor McMullen should at call special session of the legislature levy tax and enact such other legislation as may be necessary make receivers' tificates negotiable fact they already are in theory. The bank deposit guarantee fund commission has its on hands suspended banks that it trying to operate going concerns. One of them the Citizens State bank some of the arguments shall endeavor to present are based upon the Geneva situation, which reasonably typiProbably Geneva bank larger institution than the average, other been more than one and therefore believe Geneva situation representall of the suspended banks should be shut as they must some time, receivers to be appointed would have issue more than million dollars in receivers' certificates. order relief to the depositors would be necessary to provide seventeen million dollars money, or credit, with which take up the certificates issued by the receivers. The annual levy now being made by the state upon the banks brings each year about and one-half million dollars Deposits receivers' certificates draw terest and costing the commission large for salaries, attorneys' fees, rent of buildings and other operating expenses. Therefore is clear that at the present rate of income from the assess ments on the solvent banks would probably take eighteen or twenty years wipe the debt owing depositors in the failed banks. Then there the fact that few of the state banks are liquidating for the of taking out purpose tional bank charters and thus ting rid of the assessments for the of the debts of the suspayment pended banks. Also there the fact that the state continuing close few banks. All of these steps lessen amount of tax the banking department collect from the banks to be used depositors of the banks. Therefore "Never" the correct question: When answer the state banking department able to the depositors be failed banks the odd million dollars which they entitled unless the steps in legislative action and through the guarantee of the makes good Nebraska bank destate that no shall lose cent of the positor he has entrusted the care money through some bank the state affairs administered whose direction the under and under the banking department the Nebraska bank deposit terms guarantee act? While is true that one cannot bind another, the state, true that the the legislature, can acting through begin to establish policy and take out that policy as the present in such case of will insure carrying that policy the special session legislature levies tax the legislature and dollars this will raise million that the liquidaapplied year obligation and of this deposit tion for the other proper steps levies and continuance for of guarantees carrying of the debt complete liquidation of the state will solvent banks take the receivers' be glad off the depositors tificates pay of the state may The people fact that they admit the solvent banks not force upon burdens in state impossible of the assessments. That the way of banks into liqui would many them would dation. Some others would business and of The take the that would kill goose cess golden eggs. the possible courses Just state tax Repudiation open: that will and other legislation levy certificates bank receivers' turn of the to consider some In order action let us for speedy reasons situation. This the Geneva consider have quesconnected with tioned person since its closing the bank commonly general facts Some employed in not known people sufficiently bank and can the withpresent accurate figures. The of official out the have relatively banks accounts and it costing less operate them by commission going The Citizens State bank had about 400 active accounts. For may that about 400 families had their cash resources tied up when the doors of the bank snapped shut the night July last, not to open again its old Since the order of the guarantee fund commission the banks operating ceased be ing in any sense. Any bank will receive money and pay it out and not necessary for has money bank can't get put in money that get when he do the same thing any bank We that time the fund operate suspended bank more vantageously receiver, when receivers' certificates cashable but that point which less and until the state makes ceivers' certificates same cash, suspended banks by the commission seems be the only way. that may batable. It really nothing to do present crisis and only referred answer possible opposing argument. In the closed Geneva bank three people employed. They are cupying expensive bank building that could and should be leased, sold, who will open real bank and carry on genuine banking business. Without counting the rental or value of the propmust costing the commiserty, sion at least $500 month to this bank on present plan. back room of the bank should sufficient, vault facilfor the of Gejust one of these closed banks. communities scattered the have similar over situations. The commission's be enormous and pense the payers will eventually to foot In the of this newspaper should call special the session of the legislature once to the state's guarantee make good Thousands of bank depositors. Nebraska people are being deprived the cash they need for unjustly busi the the duty of the ness. state these papers their readers and facts the quick action upon governor Cow Testing lege last week, all herds in sociations producing pounds butterfat Our not none dairy the year men medals January will their medals not all finished but the looks will herds will pounds of Frank Sutton the high bred Holstein pounds pounds the founda the University Ne Mr going to beat the high Frank Putnam Crete of usually good and producing ability The high herd this month Exeter His herd and they pounds of butterfat per Frank Putnam Crete herd. also Holstein produced average pounds but terfat per year of the associa tion begins join either Mills the tes the county agent. WESLEY Tester. Annual Church Meeting. The annual meeting of the Conchurch Thursday cafeteria dinat preceded the business Reports from branchthe church the year elected. Trustees were made life and Mohrman electactive officers chosen were Miss Other Adeline Allen, back. Melvin Harold McDonald treasurer of Hundred club. Walter Rhoda, Charles Pangle.

2. January 26, 1928 The Friend Sentinel Friend, NE
Article from The Friend Sentinel, January 26, 1928

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SHOULD GOVERNOR McMULLEN CALL SPECIAL LEGISLATIVE SESSION Quick Legislation Needed to Make Bank Receivers' Certificates Marketable and the Payment of Depositors in Suspended Banks Possible. (Geneva Signal) In the opinion of this newspaper Governor McMullen should at once call a special session of the legislature to levy a tax and enact such other legislation as may be necessary to make bank receivers' certificates negotiable in fact as they already are in theory. The bank deposit guarantee fund commission now has on its hands sixty-six suspended banks that it is trying to operate as going concerns. One of them is the Citizens State bank of Geneva and some of the arguments we shall endeavor to present are based upon the Geneva situation, which is reasonably typical. Probably the Geneva bank was a larger institution than the average but other failures have been more sweeping than this one and therefore we believe the Geneva situation is fairly representative. If all of the suspended banks should be shut down, as they must be some time, the receivers to be appointed would have to issue more than seventeen million dollars in receiver's certificates. In order to give relief to the depositors it would be necessary to provide seventeen million dollars in money, or credit, with which to take up the certificates issued by the receivers. The annual levy now being made by the state upon the solvent banks brings in each year about one and one-half million dollars. Deposits and receivers' certificates draw interest and it is costing the commission large sums for salaries, attorney's fees, rent of buildings and other operating expenses. Therefore it is clear that at the present rate of income from the assessments on the solvent banks it would probably take eighteen or twenty years to wipe out the debt owing to the depositors in the failed banks. Then there is the fact that a few of the state banks are liquidating for the purpose of taking out national bank charters and thus getting rid of the assessments for the payment of the debts of the suspended banks. Also there is the fact that the state is continuing to close a few banks. All of these steps lessen the amount of tax the banking department can collect from the solvent banks to be used in paying the depositors of the failed banks. Therefore "Never" is the correct answer to this question: When will the state banking department be able to pay to the depositors of the failed banks the seventeen odd million dollars to which they are entitled unless the state steps in through legislative action and makes good the guarantee of the state that no Nebraska bank depositor shall lose cent of the money he has entrusted to the care of the state through some bank whose affairs are administered under the direction of the state banking department and under the terms of the Nebraska bank deposit guarantee act? While it is true that one legislative session cannot bind another, it is true that the people of the state, acting through the legislature, can establish policy and begin to carry out that policy and can take steps in such a case as the present one that will insure the carrying out of the policy. If the governor calls the legislature in special session and if the legislature levies a tax that will raise million dollars this year to be applied upon the liquidation of this deposit obligation and takes other proper steps for the continuance of suitable levies and the carrying out of guarantees for the complete liquidation of the debt the solvent banks of the state will be glad to take the receivers' certificates and pay off the depositors. The people of the state may as well admit the fact that they cannot force upon the solvent banks of the state impossible burdens in the way of assessments. That would force many banks into liquidation. Some of them would go out of business and others would take out national charters. The process would kill the goose that lays the golden eggs. Just two possible courses are open: Repudiation or a state tax levy and other legislation that will turn bank receivers' certificates into cash. In order to consider some of the reasons for speedy action let us consider the Geneva situation. This is not official. We have not questioned any connected with the bank before or since its closing. Some general facts were commonly known to people not employed in the bank and we can be sufficiently accurate for present purposes without the use of official figures. The smaller banks have relatively fewer accounts and it is costing relatively less to operate them by the commission as going concerns. The Citizens State bank had about 400 active accounts. For present purposes we may assume that about 400 families had their cash resources tied up when the doors of the bank snapped shut the night of July last, not to open again in its old capacity Since the recent order of the guarantee fund commission all of the banks it is operating have ceased to be going concerns any useful sense. Any bank will receive money and pay it out and it is not necessary for anybody who has money in bank he can't get to put in more money that he can get when he can do the same thing at any bank. We shall assume that for time the guarantee fund commission can operate suspended bank more advantageously than receiver, even when receivers' certificates are cashable at par, but that is point on which we are not informed. Unless and until the state makes receivers' certificates the same as cash operation of suspended banks by the commission seems to be the only way. Even that may be debatable. It really has nothing to do with the present crisis and is only referred to to answer possible opposing argument. In the closed Geneva bank three people are employed. They are occupying an expensive bank building that could and should be leased, or sold, to somebody who will open a real bank and carry on a genuine banking business. Without counting the rental or sale value of the proerty, it must be costing the commission at least $500 a month to operate this bank on the present plan. A back room of the bank should be sufficient, together with vault facilities, for the use of a receiver. Geneva has just one of these closed banks. Sixty-six communities scattered over the state have similar situations. The commission's expense must be enormous and eventually the taxpayers will have to foot the bill. In the opinion of this newspaper the governor should call a special session of the legislature at once to make good the state's guarantee to bank depositors. Thousands of Nebraska people are being deprived un- justly of the cash they need for the transaction of ordinary business. It is the duty of the newspapers of the state to present these facts to their readers and to call upon the governor for quick action. Ham Smothered in Sweet Potatoes Casserole dishes are always popular with the homemaker. They are easy to prepare and usually afford an attractive way to serve a number of foods from one dish. The Bureau of Home Economics, U. S. Department of Agriculture, suggests this method of combining sweet potatoes and ham in such a dish: slice of smoked ham cut into slices for serving; 3 cups raw sliced sweet potatoes; 1 tablespoon butter or ham fryings; 2 tablespoons sugar; 1 cup hot water. Broil the pieces of ham lightly on both sides and arrange them to cover the bottom of the baking dish. Spread the sliced sweet potatoes over them; sprinkle with sugar. Add the hot water and extra fat. Cover the dish and bake slowly until the ham is tender, basting the potatoes occasionally with the gravy. Brown the top well. Two urchins were watching a barber singe a customer's hair. "Gee," said one, "he's huntin' 'em with a light.' Times.

3. February 9, 1928 Nebraska Signal Geneva, NE
Article from Nebraska Signal, February 9, 1928

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known over the state and held in high gard citizen, former educator, former and very successful banker one the ablest supporters of the bank deposit guarantee theory as represented Nebraska people of the state are entitled to the personal views of this able ponent of the bank deposit guarantee theory. We to submit comments upon the wish some letter. Late advises indicate that the present bility of the bank deposit guarantee fund about nineteen million dollars. We understand that Mr. Stephens correct in saying that the state department collecting about two million dollars year from the solvent banks under the six-tenths of one per cent law coupled with the money beprovided by ing realized on the assets of failed banks. If no interest were paid on receivers' certificates and other debts no expense were incurred for the salaries of receivers and other operating expenses and for attorneys' fees would take nine and years to liquidate the nineteen million dollars for which guaranfund now understood be liable. We think when Mr. Stephens says may take two three years for the collections from the assets of failed banks and the assessthe solvent banks to liquidate the ments present liabilities of the guarantee fund he much too optimistic. When one takes his ad ding and substracting machine in hand to ure this matter must not overlook tain facts that are likely to further delay this liquidation. former article The Signal timated that costing the guarantee fund commission about $500 month to the suspended Citizens State bank Geneva. There are of these suspended banks this time, unless another one has suspended very recently, but of course some them much smaller and their continued operation for collection purposes will cost tively We must assume that few more banks fail in the next few years. Every time bank suspends stops paying money into the guarantee fund going bank. Unless relief given the situation some of the state banks undoubtedly give up their state charters and take national charters. not difficult process for sound bank, and that further reduce the annual sum to be realized from the of per cent assessment on state banks that is being paid annually. Therefore conclude that the tax pay the state ought to prepare to relief action this time. Mr Stephens hints letter that the tax payers of the state, having benefited greatly by the operation of posit guarantee law, should stand portion the losses caused under the operation of the The question is, When The Sigbelieves the time We have vorite remedy or panacea to propose, but the honor of the state maintained ion that the payers will have assist in affording relief. Signal readers may wish to know whether this newspaper has any private grief because Geneva bank is in the suspendis both yes and no Neither this newspaper nor its editor caught with money deposit the failed Geneva bank, but every business institution in this communhas suffered some loss of business because of the present unfortunate bank situation, The Signal among the others. At least in this state are suffering financial embar ressment because the state department is not able float bank receivers' certificates. Some of these people reside this community. part of The Signal's business to represent their with the other newspapers the state seeking remedy.

4. February 16, 1928 The Friend Sentinel Friend, NE
Article from The Friend Sentinel, February 16, 1928

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DAN STEPHENS OF FREMONT WRITES ABOUT TEE FUND Commission Proceeding Un. Says New Plan Which Will LiquidFailed Banks in Economic Fund Not Busted. (Geneva Signal) (This letter published in the Fremont Tribune January 17, 1928, Hon. Dan the Fremont State bank. Mr. Stephens former Nebraska He is considered of gressman. the leading bankers of the state.) We are receipt of the following letter from friend in North Bend: "North Bend, Neb., Jan 14, 1928. Fremont State Bank. Fremont, Nebr. Gentlemen: Knowing that your bank is one of the strongest banks in Nebraska and knowing that you have the facts about the bank guaranty law thoroughly in mind am writing you for information. are aware of the fact that the First State bank here was taken the few days ago and is now being operated kinds rumors are afloat here about the length of time is going take for the to pay the Some years and some depositors. say say never. Some say the assests are worthless and others say the guarantee fund busted; and still others say isn't. Won't tell me what you the status our case and what you think of our future prospects in gard to this bad mess are now Your Friend.' Our reply to our North Bend respondent follows: DEAR FRIEND: In query about response your the status the First State bank North Bend and its depositors, glad to be able to give you what are appears to be reasonably exact ansto your questions. Under the new plan of the guarantee fund commission, according to book of instructions which sent out to its agents, proposes to proceed in the of banks in about the followoperating manner. First, fast as it can practically as so the commission proposes close the banks it is operating sell the liquid assests at once distribute the proceeds the sale the depositors. This will enable the depositors receive portion their deposits at once. The amount they will receive will be dependent wholly upon the amount of liquid assets the bank owns. has fifty cent its notes in good form and they are made people who are able pay them, ought to be able to sell these notes cash then, of course, would be available for the depositors once. The remaining assests of the bank, understand it, then to be sold rapidly as possible for what they will bring and the proceeds, rapidly they are will be distributed to the depositors. The perience of the guarantee fund commission the past in its banks that has handled, has to return to the depositors of the assets of the banks per cent of the total. markable showing for the Commission and, this average holds good the case of the First State North Bend, the commission will able to pay the depositors of that bank percent of the total deposits out sale of the bank's assets. The remaining per cent due the depositors will then paid out of the guarantee fund rapidly as this fund is accumulated. Second, after the liquid assets are sold dividend immediately paid to the depositors, the commission then proceed to take up the remaining assets, which classified slow, doubtful and worthless. The process disposing of these assets will be slower the commission makes every effort to collect the last dollar possible out them for the depositors. may take one year, two years or three as no doubt much litigation be necessary. Third, after all the assets of the bank been the ance remaining unpaid to the depositors' guarantee fund, which the state collects through assessments made upon the going banks of the state, brief outline just about the steps, as understand the will take the with depositors in the case of North Bend Bank bank they take has already closed out few banks along these lines of procedure and this harmony the recent publication sued by the guarantee fund commission its agents. Heretofore the commission has proceeded an entirely differcnt method, which has been pensive to the fund. practice pay the depositors full in spot cash soon as their claims were approved. soon the depositors their money they satisfied. the bank been mismanaged, exploited and robbed some of its officers, no jury the neighborhood could be found that would convict the guilty party. one case the banker wrecked bank and ran away. soon the million had been depositors by the guarantee commission the banker returned and had great reception from the people, accompanied and then followed years of litigation in which the guarantee fund tried collect the notes the people owed the bank. They another; lied about their their names had been forged; and made every sort of plea that could made to escape payments and the juries always in sympathy with them, and often so were the courts, and rendered judgments against the guarantee fund commission practically every opportunity. This sult of sort of procedure convinced the guarantee fund commission that other steps were necessary sorts of impositions and fraud. Now the depositors will no longer be interested in having note owners escape the payment their notes bank that is being liquidated. Every depositor knows that he doesn't get his money promptly because the people who notes the bank, do not then and they are not going very good about They are going encourage the payment these notes. In short, the present policy soon as the people will guarantee the commission their hearty support in working the liquidation in as economic manner possible. Now to your "prophets of say the guarantee fund ed. They are mostly made up of very small classes of men. First, there are few state bankhere and there who have good banks and who think they are greatimposed upon by being to the pay antee fund. This natural feeling they are in no responsible for the banks that They are in no way responsible for the excessive number of banks that have been chartered, yet the state has sumed compel them an assessment six-tenths of on their deposits, the proceeds of which assessment are be used the losses failed banks. second class of critics are tional bankers themselves, who feel that state bankers have great advantage over them through the eration the guarantee deposits law. They, course, naturally the law and prophesy fall because of selfish interest. These crities are foolenough to think that the failure the law would benefit them, which, of course, great delusion. Most criticisms the guaranty law originate with these two classes. Now what the truth about the matter. are that the guarantee fund has paid to its depositors in failed banks this state its organization approximately This sum has been paid from sources, viz., the assets of the banks that have been liquidated, from the antee fund. Had not been the guarantee fund commission least cent of this of would have been probably great deal more. The guarantee fund, so-called, merely insurance company wherethe state banks of Nebraska are the members must through pay assessment each other's losses the maximum of one per cent year. Under the state collect from the going more than sixtenths one cent their per posits in any single year. This provision placed in the law for the purpose preventing the assessments the banks being tory. Any good bank, making profit, can pay this assessment withinjury itself and can do the great benefit of the state. This does not any way consider the fairness of the assessment the banks. The people themselves should for portion of this insurance that's another question! Under the law, guaranty an sessment six-tenths one per which been ing for many years, will raise each year, together with the salvage from the failed banks, two million dollars. This two million dollars used by the guarantee fund pay the depositors of banks that they No one but an ignorant person, who does the facts, will spread the false statement that the antee fund There way the guarantee fund Each year two million dollars approximately which losses and pay run on until the is repealed or amended and that cannot take place morally until its debts are paid. And concern that has million dollars "busted." true that there may be more losses some years than the Fund will but some time will eatch pay the of with all paid in full. The positor should be thankful that he get his money even though he may have to wait time The worst enemy the people have case of this kind themselves. Hundreds them stand around street corners peddling gossip that nothing short of criminal libel, juring their own institutions and making the situation more difficult their doubtings misgivings. criminal peddle lie about the solvency of bank and those, do can prosecuted for sometimes think the law should vigorously enforced for the protection of the people. There hundreds cases where the damage has been done by idle rumors and sooner later, they are reflected in great lossto the very people who peddle them. No should peddle ors when doesn't know about their truthfulness. People should understand that everything being done to protect their interests that can be and it does no good to get excited and run from one to another with pessimistic storWe are very glad indeed to be able to answer your letter in way that ought convey to you confidence the situation. There are plenty banks in Dodge county that are not going to be blown over by passing breeze. matter great pride to us to be able to say publicevery opportunity that the Fremont State strong and solvent that can pay its demand depositors in spot cash fast they can line in front our windows and not dollar with which have always been able do and we expect hold as nearly to that position possible as long as conduct bank. We are taking the liberty of publishing your letter and our reply for the benefit of the people are terested this subject. Yours very truly, FREMONT BANK, By Dan Stephens, President. EDITOR'S writing and republishing Editor Edgecombe, of the Geneva Signal, has started that appears to be just what needed relieve the banking in Nebraska. The people Friend been pinched by bank failure, and the financial show our banks in very healthy condition. But must realize that the was passed cause of public demand. We, the people, forced this law on the state banks the state and they have paid their assessments, supporting the "peoples" measure, and has for several years stabilized finances the state. But the system used for many months has drawn on the fund until exhausted and there provision made for additional ments, and the department has sorted to the certificates raise money liquidate failed banks. The bankers not want to purchase they don't know when be paid. But, the credit of the state back the there no question but what they would sell readirate interest. this ready the money banking deportment could pay off the depositors and close up the failed banks relieving bad situations in many towns. It seems though the time has arrived for the people awaken the situation and assist the bankers, and the state department, get the constitutional provisions that will legalize the certificates, and back them with the state's credit. Mr. Edgecomb published the following editorial the concerning Stephens article. on the Guarantee On the first page of this issue will found letter written by Hon. Dan Stephens of Fremont and published by him the Fremont Tribune, January Mr. Stephens widely known over the state and held high regard citizen, former educator, former gressman very successful banker and of the ablest supporters of the bank deposit guarantee theory as represented the Nebraska law. The people of the state are entitled to the personal views of able exponent of the bank deposit guarantee theory. We wish to subsome comments upon the letter. Late advises indicate that the present liability of the bank deposit guarantee fund about nineteen million dollars. We understand that Stephens correct in saying that the state department is collecting about two million dollars year from the solvent banks under the sixtenths of one per cent provided by law coupled with money being on the assets failed banks. If interest were paid receivers' certificates other debts and no expense were incurred for the salaries of receivers and other operating expenses and for attorneys' fees would nine and half to liquidate years the nineteen million dollars for which the guarantee fund is now understood be liable. We think when Mr. Stephens says may take one, two or three years for the collections from the assets of failed banks and the assessments the solvent banks liquidate the present liabilities of the guarantee fund he much When one takes his adding substracting machine in hand figure on this matter he must certain facts that are likely to further article The Signal estimated that it costing the fund commission about $500 month operate the suspended Citizens State bank of Geneva. There are sixtysix of these suspended banks time, unless another or two has suspended very but course some them are much smalland their continued operation for collection will cost relativepurposes less. We must assume that few more banks will fail in the next yars. Every time bank suspends paying money the guarantee fund going bank. Unless given the situation some of the state banks will undoubtedly give their state charters and take out national charters, not difficult process for sound bank, and further reduce the annual sum be realized from the six-tenths of one solvent banks that is being annualpaid Therefore we conclude that the tax payers the state ought to pare to take relief action at time, Stephens hints in his the tax the payers state, having benefited greatly by the operation the deposit guarantee law, should stand portion of the losses caused under the operation of the The question is, how? The Signal believes the time now. We have no favorite rempanacea to propose, but if the honor the state maintained opinion that the tax payers will have to assist in affording relief. Signal may wish to know whether has any vate grief because Geneva bank the unfortunate suspended list. The answer is both yes and no. ther this nor its editor caught money on deposit in failed Geneva bank, but every business institution in this community has suffered of business because of the present unfortunate bank situation. The Signal among the others. At least people in this state suffering financial embarrassment because the state department not able to oat bank receivers' certificates. Some of these people reside this communpart of The Signal's business to represent their interests and join with the other newspapers of the state in seeking remedy. COW TESTING NOTES The Association finished the first year's work February 1, and work for the second year was begun immediately. There were 237 cows on test during the month of January. Thirtythree of these were dry. The erage of the entire 237 was 680 pounds of milk per cow and 28.1 pounds of butterfat cow. The per average test was There 43 cows which produced over 40 pounds of butterfat and 18 which produced over 50 pounds of butterfat. Figuring butterfat at 46c per pound last month the 237 cows made above feed cost. Ben Horne's Holstein herd of cows averaged 42 pounds of butterfat per cow, and R. Everts Hostein herd of cows averaged pounds cow. These were the two high per herds for the month. The high cow owned by Frank Case of Sutton. His holstein cow produced 2129 pounds of milk and 87.8 pounds of butterfat with test of 4.1%. Frank Putman's Holstein cow pro- of milk and 74.1 duced pounds butterfat with test of pounds of 3.4% of the first year complete report Fillmore-Saline Dairy Herd the Association will apImprovement early issue of this papear in an Wesley Mills, Tester. factory will A in Lincoln in 1928. be erected early

5. February 16, 1928 Nebraska Signal Geneva, NE
Article from Nebraska Signal, February 16, 1928

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THE BANK DEPOSIT GUARANTY. Coming to the conclusion that had arrived for the state to thing about the banking situation, resulting overdraft upon the bank deposit guaranty fund, and believing that it had become the duty the newspapers of the state to present the facts their readers, paper in issue for January 19 began presentation some of the facts and has continued the discussion from week to week. We asked the other newspapers of the state to consider whether they ought not to assist in bring ing the deposit guaranty problem to head by telling their readers the plain facts and cussing with them remedies. have in progress the election of legislature. its members go to Lincoln uninstructed and without further authority than that contained the state constitution they will probably have neither the willingness nor the power emergency that has borne down upon the state banking about Last summer when there grave danger bank panic sweeping the after the manner of the Iowa bank panic, Nebraska newspapers by common said little possible about the many bank failand the tremendous load of overdrafts being piled upon the guaranty fund. The banks have had opportunity to reap benefits from big wheat and big crop. Present danger from frank discussion of the bank situation does not exist but if there is too much delay certain wellknown dangers may become realities then it may too late seek remedy. Common suggests immediate consideration of all of the facts and an attempt to agree upon remedy. The Signal represents nothing but its tor. Nobody has offered advice or information. We have local concern added to the general concern of the state. fine banking property the best corners in Geneva standing idle because the state banking partment has money which to pay off the depositors, opening the way for the establishment of bank the sale of the banking property and the bringing into the community of the new money that the capital stock the bank would represent, coupled the release the funds many families tied the suspended Citizens State bank. The legislature guaranty for good times which every bank made money and bank failed but the could into the future and could not believe that time would come when the banks of the state and the people the state would refuse accept investment bank receivers' tificates bearing interest at the rate of six per cent. The reason for this refusal is that body can be certain, under it stands that these certificates will be paid. An instrument with fixed date of payment readily negotiable even if the certainty of final payment were postively established. The banking department has taken banks since the first January. We supthis makes about banks now the hands of guaranty fund few more will be taken over. good deal of money will collected the assets of the failed Nobody know how much. At the moment it would take than nineteen million dollars to pay off the depositors of the suspended banks. The solvent banks paying in on their the about million quarter per year. costing three quarters of million to operate the suspended banks and endeavor collect their assets. Combining all these of income, the commission has about three mildollars year present to apply on the liquidation of depositors' claims This sounds encouraging but every thoughtful person must realize that the good assets every failed bank are quickly collected. In fact, bank has of good assets doesn't have suspend. By the end of this winter best the assets and those most easily collected will have been turned into cash and the scattered remnants may not very productive. The bankers the state did not want the guaranty law. Certain politicians thought idea good on which to ride into office. Probably they thought the guaranty would benefit the people. They may have been right. The people fell the plan forced their members the legislature to enact law. The guaranty law amounted to snap of the finger unless the faith and credit of all of the people of the state

6. February 24, 1928 The Grand Island Independent Grand Island, NE
Article from The Grand Island Independent, February 24, 1928

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Done to Save Nebraska's State Bank Guaranty Deposit Nebraska Editor Suggests Constitutional Amendment Blood and Have Been Planned For November's Election. the past six weeks Frank of the Geneva Signal, has in his newspaper present Nebraska banking situation as the deposit guarantee law related In young Mr. bookkeeper and cashier the Bank Rulo. When that took out national charMr. elected cashier. In the summer bought newspaper at Falls City and now for nearly he devoted attention sively to newspaper the work incident thereto in the country field. Although with no personal nection banking except depositor, Mr. Edgecombe has always taken deep interest in banking and has written frequently his about the law and its effect upon Nebraska and other connected banking affected bank customers and general public welfare. Referring the articles he been publishing paper, Mr. Edgecombe, replying of gatherhere, today, made this statement: Mr. Edgecombe's Statement While bank panic sweeping over the state of Iowa and banks crumbling the leaving whole counties in that rich state without an operating bank instances, attended meetof newspaper publishers in Des Moines the guest of their state association, and had opportunity make inquiries. seemed to me that had the banks of Iowa been operating under the Nebraska deposit law that panic might have been averted, least greatly diminished in violence and probably postponed more convenient day No other state has exactly the deposit guarantee law that braska has exact comparison possible, in no other state has guarantee come near to standIn Oklahoma when the ficit in the guarantee fund reached million dollars legislature to repeal the guarantee law but the proposal defeated the people. my that confusion continues state. In South Dakota there such overdraft the fund that the income from the annual ment on the solvent state banks only raises to pay three cent bank receivers' certificates without paying the deposits themselves and the deposits nominally bear six per cent interest. The Nebraska Situation have never been an alarmist. have favored the deposit guarantee means can found to enforce the law. Lack enforcement has caused much of the present trouble but the present perience should cure that difficulty open the way for degree not in braska for many years the posit guarantee fund be stabilized and bank receivers' certificates sold the market at very low interest. is the responsibility of all of the people of the state to make the deposit guarantee mean what nearly everybody in the state ought mean and thought mean, the necessity for stabilizing action of the people and the method of that have discussing in my newspaper. Guarantee Fund Condition guarantee fund commission, authorized the the fund deep water because failures, banks for the department. From examination statements by banking department commission and information gathered other believe conservative figure say that if the actual cash value, ing the net collectable the suspended banks now in hands commission were subtracted from the sums due the depositors those banks there would be deficit least twelve million dollars. bank with good assets sells those assets months before will go into bankruptcy. Therefore the bulk of assets of failed bank is likely have little value. The minute bank suspends those who collection and endeavor to promise. This going on in vast now. The deficit, twelve mildollars whatever may be, be increased by the tremendous cost of operating the suspended attorney fees, court costs and the other destructive that waste the funds of every inactive Assessment on Banks The quarterly assessments on the solvent banks now bring in about million and half year, we informed. That would equal twelve million dollars in eight years. But are some the things into account: well understood that the commission will have take over some more banks, nobody knows just how many. terest must be paid on deposits, also unless and until the law changed, which perhaps ought to be done. The of operating these suspended banks tremendous and the interest on collected bank loans that collected probably small item. Waste can never be estimated exactly. Seven and half months ago the Citizens State bank of Geneva was turned the guarantee fund commission. On the surface thing had been done to pay the depositors. Of course those in charge using collect bank's and eventually dividend will be declared, we must but receiver has not been appointed no certifihave been issued for the cellent reason that nobody would buy the of this any other suspended bank with guarantee fund twelve million dollars in the hole. This condition prevails in every community in the state in which the commission now operating bank. probably costing the about month to operate the Geneva bank and it not serving useful public purpose beyond the efforts. This same relative expenditure being caused in every suspended bank, we must Repudiation Not Thinkable That people state would repudiate individual responsibility the money on deposit in the broken banks unthinkable. may mean repudiation, great loss to positors and the shaking of public confidence in banks to refuse greatly delay relief. Can relief found that not likely to serious loss, if any, but rather loss? Many relief plans have been gested but seems to me that the most certain and the most practical plan to offer the people of the state by the initiative method strictly limited constitutional amendand them to adopt that method should considered favorably the amendment should limited scope, say guarantee greater than five per the deposits in the solvent banks, should be limited in time by insertion of pealing clause that would repeal the amendment two three years; and the amendment should require the legislature to provide, by law, for the payment of such secured certificates, with thereon, an annual assessment on the state banks. Some Certain Results Without danger of serious barrassment, the state, by the thod could make bank certificates, issued under authority of the district courts provided by law, immediately salable low of terest, probably not more than four per Every depositor suspended bank could be paid under the regulating the issuance bank certificates. The fine bank properties now standing idle far public concerned could be sold and the money turned the guarantee fund. An army of agents, clerks attorneys could be discharged and their salaries and other expenses stopped. New banks could be ganized in the communities where needed to take the place the broken banks and capital could be into the afflicted communities. Public confidence would be restored and possibility of pudiation would be averted. This matter important that citizen, no blic opinion, should take hasty yield against action. invites deliberate consideration gravity the situation and the simplicity the proposed relief. impose further and continuous burdens on our solvent banks means that of them will be forced suspend and others, the stronger ones, with the largest volume of posits, will seek shelter from oppression by changing the national system, either event cutting down that much the income derived by the quarterly assessment on the solvent Any optimist who believes that the guarantee fund can ever catch up with the present deficit without state aid must admit that with state aid, provided by the people, will catch up in fraction of the time required of the tremendous saving that quick liquidation the suspended banks would accomplish.

7. February 28, 1928 Beatrice Daily Sun Beatrice, NE
Article from Beatrice Daily Sun, February 28, 1928

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Propose Constitutional Amendment For Benefit Deposit Guarantee Fund Grand Island Independent: the past six weeks Frank Geneva has been cussing newspaper the present Nebraska banking tion deposit law related young manhood Mr bookkeeper and assistant Bank of Rulo institution took national charter Mr Edgecombe elected its cashier the summer of 1890 bought Falls City nearly years has devoted his attention newspaper and the work incident therecountry field. Although personal connection banking except Mr Edgecombe taken deep Interest banking problems and has written frequently his about effect upon Nebraska banking and other matters banking they bank customers and the public welfare Mr. Edgecombe's Statement sweeping over the state and banks crumbling whole that rich state operating publishers in Moines guest association and had portunity make inquiries that had banks of Iowa Nebraska deposit under law that panic might guarantee have averted. or least diminished in violence greatly probably postponed to convenient has had exactly the same deposit guarantee law Nebraska and exact not but comparison other state has the guar no In Oklahoma when ficit guarantee dollars the tried to repeal the legislature law the proposal defeated the people that confusunderstanding that state In South Dakota there income enough only money to three cent certiwithout paying nominally bear deposits The Nebraska Situation deposit law found enforce means Lack enforcement caused much present trouble should that difficulty cure degree not known Nebraska for many years if deposit fund can stabilized bank receivers' certificates sold the market very low rate of the of all the pepole the state make the deposit mean everybody in the nearly ought to mean knew the and thought stabilizing the necessity for action of the people and by the stabilization in that been discussing my newspaper Guarantee Fund Condition guarantee by the legisla sion. authorized the guarantee fund ture when seen getting into deep many bank water because operating more now banks for the than seventy banking department From examination the banking depart issued by ment and the commission and other formation gathered believe to that the secutive figure to say meaning the actual cash of in the hands pended banks now were sub the commission due the tracted from the sums banks there those depositors would deficit of at least twelve million dollars. assets sells bank with good months before those assets into bankruptcy Therethe assets of the bulk likely have failed bank little value. The minute bank suspends those owe it fight collection endeayor to comThis going The vast dollars whattwelve million be increased may may by the tremendous of oper suspended banks, ating the and the court costs torney elements that other destructive inactive funds of every institution Banks Assessment on The banks now bring the half millions about informed That year. are million dolwould equal twelve But here are lars years. things to take of the some understood account will have that take over some how many knows just nobody on deposits Interest must be paid also receivers' until the law less be done which perhaps ought these sus The operating and pended banks the Interest uncollected bank Local Distributor collected loans that may item. Waste PAXTON & probably small estimated exactly never half months Seven and the Citizens State oank over to the neva was turned surface had been to pay off the charge to colthe bank's and tually dividend will declarmust but has not been appointed and no receivers certificates for the that nobody would buy the any other suspended bank twelve million dollars in the hole This condition prevails community in the state which now operating bank probably the about month operate the Geneva bank and useful public purpose beyond This expenditure operating every bank must Repudiation Not Thinkable would repudiate individual the money posit the broken banks mean repu diation. great depositors the of public finence banks to refuse greatly delay Can relief found that not likely serious but Many have been that the most certain and the practical plan to offer people initiative method strictly ited constitutional amendment and ask them adopt should the amendment should limited the the banks should limited in would should require the secured interest thereon the Some Certain Results could under the authority provided immediately salable interest probthan four depositor Nebraska bank could pended what under regulating the bank The bank properties now idle public could sold the money turned into the An army clerks and attorneys and their could other banks could be orNew ganized the needed to take the place where broken banks brought capital Pubthe afflicted lie would restored the possibility repudiawould This matter important that citizen organ lic should take judgment against Fairness sideration and the simplicity the proposed To impose further and tinuous solvent banks means that some of them will forced suspend and others. the stronger with volume shelter changing to the national either event down by that much income derived the ment the solvent banks. Any optimist

8. March 1, 1928 The Custer County Chief Broken Bow, NE
Article from The Custer County Chief, March 1, 1928

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GIVES VIEWS GUARANTEE For the past six weeks Frank Edgecombe, publisher of the Geneva Signal, has been discussing his newspaper present Nebraska banking the deposit antee related his young Mr. Edgecombe bookkeeper assistant cashier the Bank of Rulo. When that tution took national charter Mr elected cashier the summer he bought City and voted attention exclusively newspaper publishing and the incident thereto in the country field. Although no personal banking except depositor. Edgecombe has always deep interest banking lems and has written frequently about the guarantee and its effect upon Nebraska banking other connected they affected bank customers the public wel Referring the he been publishing in his newspaper, Mr. Edgecombe, number newspaper friends, gatherhere, made this Mr. Edgecombe's Statement. While the bank panic wave sweeping over the state Iowa and banks crumbling the dozen, leaving whole counties in that rich state without operating bank some instances, attended meeting newspaper publishers Des Moines the guest of their state sociation. and opportunity make inquiries. seemed that bad the banks of Iowa been operating under the Nebraska deposit guarantee law that panic might have been avertleast greatly violence and probably postponed day. No other has had exactly same deposit law that Nebraska has exact comparison not possible, but other state has the guarantee come near standing up. In homa when the deficit the reached eight million the legislature tried to repeal the guarantee law but the proposal defeated by the people. understanding that confusion continthat overdraft the guarantee fund that the income from the ment on the state banks only raises enough money to pay three interest bank certificates without paying cent the deposits and posits nominally bear six per cent The Nebraska Situation. have never been an alarmist. have always favored the deposit guarantee means can found enforce the Lack enforcement caused much the present trouble but the present experience should cure that difficulty and open the for degree of banking ficiency known Nebraska many years the deposit guarantee fund and bank ceivers' certificates sold the interest. the of people of the state to make the posit mean what nearly everybody in the state knew ought to thought did the necessity for stabilizing the fund action people the best thod of stabilization that have been discussing in my Guarantee Fund Condition The guarantee authorized by legislature when the guarantee fund was seen getting into deep many bank failures, now operating than seventy the state department. From an of the statements issued by the sion information gathered other believe to figure to say that eash value. the net the banks the hands the from the the depositors those banks would be deficit of twelve million dollars. bank with good assets sells those assets months before will into There fore the bulk assets of failed bank likely have little value. The minute bank suspends those who and endeavor to promise. This going on deficit, twelve million dollars or whatever may increased by the tremendous cost operating the suspended banks, torney fees, costs and the other court destructive elements that waste funds inactive institution. Assessment Banks The quarterly assessments on the banks now bring in about million half year, are formed. That sum would equal million dollars in eight years. But here are some the things take into account: is stood that the commission will have take over some more body knows just how many Interest must paid on deposits, also on ceivers' certificates unless and until the law changed. which perhaps ought to The cost operating these banks and the lected bank loans that may lected small Waste never be estimated exactly. Seven and half months ago the Citizens State Bank Geneva turned over the guarantee fund commission. On the surface not thing had been done to pay off depositors. Of course those in charge using endeavor collect the bank's loans and dividend will be declared, we assume, but receiver has not been appointed certifihave been issued for the excelreason that nobody would buy the receivers' certificates this other suspended bank with the guarantee fund twelve million in hole. This condition prevails in community in the state in which commission now bank. probably costing the commission about $500 month to operate Geneva bank and not serving any useful public purpose beyond the collecting efforts. This same being caused every suspended bank. assume. Repudiation Not Thinkable That the people of the state would repudiate individual responsibility for the money on deposit in the brobanks unthinkable. may mean repudiation, great loss positors and the shaking of public confidence in banks greatly delay relief. Can relief found that not likely cause serious loss, any, but rather prevent Many relief plans have been gested but seems me that most certain the plan offer the people the the initiative method strictly limited them to method should be considered favorably the amendment should limited scope, say guarantee of greater than five cent of deposits in the solvent banks, and should limited in time the repealing clause that would repeal the amendment three years and the amendment should require provide, by for the payment such secured certificates, terest by an annual assessment the state Some Certain Results Without danger serious embarrassment, the by the method make certificates. Issued under the authority of the district courts provided law, immediately salable low of interest, probably not more than four per cent. Every positor suspended Nebraska bank could paid what he entitled under law regulating the issuance bank certificates. The fine bank properties standing idle far as public concerned could be and the money turned the fund. An army of and agents, could discharged and their and other expenses stopped. New banks could be organ the communities where banks new capital could brought into afflicted Public confidence would restored and possibility repudiation averted. This matter important that citizen, no organ public should take hasty judgment yield prejudice against invites deliberate consideration the gravity the the simplicity To impose further and burdens on banks that some them will be forced suspend and the ones, with the largest volume of posits, will seek shelter from sion by changing to the national either event cutting down that much the income derived by the quarterly assessment on the solvent Any optimist believes that the guarantee fund catch the present deficit without aid must that with state provided by the people, will catch fraction the time required because of tremendous saving that quick liquidation the suspended banks would accomplish. cream and cake Monday after school honor of her son, William's, birthday. The school children eventh like have that kind of would often. They wish William surprise more happy birthdays. from around here good many tended Mrs. VanCleaver's and basket supper Friday evening. The was fine and the program kets sold well. Andy and Earnest Anderson have some sick cattle week. The erinarian from made from Cozad to up the sick cattle for them. They getting better Little Mamie Griffith is getting fine. Lewis Stinehagen and Sybil Duffey called at the Henry Miller home Tuesevening. Really in High Gear colored employed wash windows at certain factory Boston working moderately that his actions might very well termed "slow motion." don't hurry little more?" demanded has only two speeds and de other am slower than dis Music for psaltery stringed Instrument shaped like the Greek letter delta. used the uncient Hebrews medieval times psal tery had from 36 strings sounding board. was played the strings with without plectrum.

9. January 10, 1929 Nebraska Signal Geneva, NE
Article from Nebraska Signal, January 10, 1929

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community has, this week, suffered another distinct blow in the voluntary closing, Saturday, of the Citizens State bank. practically every citizen of the communthis came as complete surprise, current rumors of its intendclosing being largely discounted The recent statements of the bank have been good and no hint of any veakness has been demonstrated. officers of the institution have enjoyed, even since the closing of the bank, still enjoy the confidence of the public, no intimation of any wrongful or falsifications being apparent. William Matson, president the closed bank, issued the closing of the institution to false and malicious rumors circulated without foundation about the unstable condition of the bank. The officers of bank, he said, had never cognizance of these rumors, preferring let them take their natural course and die down when the public became their falsity. However, he stat ed, as soon one rumor was lived down, the malfeasors would start new ones. until gradually portion the people began to grow skeptical and began to withdraw the full measure confidence which the actual condition of the bank merit- With this misguided withdrawal began slow but steady withdrawal of deposits, which withdrawals were, by circum stances innocent in but used by the of the bank as the basis for further disquiet ing given impetus until general "run bank" was feared. Rather than permit the of the bank to be thus depletand in order to protect all posits all patrons of the bank alike, institution was closed and the banking department notified. Mr. Matson stated that these rumors had circulated periodically ever since the closing of the State Bank of Superior, twenty months ago and had materially tarded the growth and prosperity the bank during that period. However, bank had been able function properly until three weeks ago its condition was considered sufficiently critical to consult the banking partment The immediately faith in the institution and had urged its officers carry suggesting that adcitional confidence might be stimu lated by reorganization. or sale to other bankers. Negotiations pending for action along one of these lines when new and particularly damaging rumors gan to be circulated with disastrous effect, the closing of the bank by its officers, deemed imperative At the time its closing. the bank had some sixteen hundred depositors, their deposits ranging from cents to twenty or more dollars. The total thousands of amount of deposits was roughly, half million dollars. Frazier and Sutton Join. The following from Friday's Lincoln Daily Star: Donald Frazier, who has been surintendent of the state material yards, has handed his resignation to Governor Arthur Weaver. Fra. zier has formed a partnership with Sutton Lincoln and the firm will engaged in the construction of airways for the federTheir first contract will involve the construction emergency landing fields and the installation of signal lights on the route Omaha St. Joseph, Mo. The firm also has con tract for work near Cheyenne, Wyo., it is said. Give Her Chance. (The Pathfinder.) but this egg's bad! dear, perhaps it's one by young hen without much experience. Notice of Probate of The State of Nebraska, County of Fillmore, IN THE COUNTY COURT. The State of Nebraska to Emil Krause, and to any others interestin said matter: You Are Hereby Notified That an instrument purporting to be the Last Will and Testament of Louisa Krause, is on file in said Court, and also praying for the of said and for the appointment of Emil Krause as executor. That on the 29th day of January 1929, at 10 o'clock M., said petition and proof of the execution of said instrument will be heard. and that if you do not then appear and contest, said Court may Probate and record the same, and grant administration of the estate Emil G. Krause. This notice shall be published three weeks successively in the Nebraska Signal prior to said hearing. Witness my hand and official seal this 3rd day Jauary, 1929. (Seal) GEORGE LANDGREN, 15-3 County Judge. By Lyda Hafer, Clerk of the County Court. Notice to Creditors of Estate. Notice hereby given to all persons claims the of Doud, that such claims are filed in the office of the County Judge of Fillmore County. Nebraska, on or before the 6th day of May. 1929, at o'clock they will be forever barred from allowance against said estate; that being the time and place when all such claims will be examined and adjusted. Dated January 1929 GEORGE LANDGREN, 15-3 County Judge. By Lyda Hafer, of the County Court.

10. February 7, 1929 The Fillmore Chronicle Fairmont, NE
Article from The Fillmore Chronicle, February 7, 1929

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COURTHOUSE NOTES Lots 101, 102 and 103, block 17 and lot 1, Placek's 4th addition to Milligan were sold at sheriff's sale Mo lay by Deputy Sheriff Severns under orders from the district court in the foreclosure sale of Leroy Stines VS. Merchants National bank of Omaha. who died March 4, 1926. petition asks the appointment luck. of Mrs. Lena Stark, a daughter as adminstratrix. Mrs. Eva Biester has filed a suit for damages against Virwas in fall a home a couple of years ago. She filed a claim against the estate of George A. Wright but the claim was disallowed in county court. A new action has now been started in district court. The attorney general has filed a petition for the appointment of a receiver for the Strang State bank. The action is simHar to that taken with the Citizens State bank of Geneva a few weeks ago. Lucile N. Ritchie has filed suit in district court for a divorce from Everett D. Ritchie. She asks the custody of two minor children. She charges desertion and non-support. Mrs. Ritchie is employed as housekeeper at the Ed Stolzenburg home near Shickley.-Geneva Signal: FAIRMONT BOY NAMED FOR WEST POINT Warren. son of Mr. and Mrs. Geo. W. White, received a telegram Wednesday afternoon from Congressman Norton at Washington, D. C., announcing that he had passed the highest grade in the competitive examination for entrance of the West Point Miliheld in Omaha, March 5th. With

11. May 24, 1929 The Lincoln Star Lincoln, NE
Article from The Lincoln Star, May 24, 1929

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BANK RECEIVER BRINGS SUIT FOR RETURN OF $6,505 Suit for return of alleged have been msappropriated toward of note was started payment against the City National bank of Lincoln by Kirk, as receiver for the Citizens State bank of Geneva District court Friday petition Len Davis, and manager the bank sold note the Lincoln bank after endorsing himself. and then "appropriated $4,000 the Citizens bank on Nov of Nov. and the to make payments on The receiver attacked these payments alleging that Davis himself for payment of the responsible and the Geneva intsitumoney petition requests the court tion. the returned to the order money bank with interest from dates of the payments in 1926.

12. March 13, 1930 The Norfolk Press Norfolk, NE
Article from The Norfolk Press, March 13, 1930

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Bank Correspondence Reviewed Guaranty March Mrs. Marie Weekes, Norfolk Press, Norfolk, Nebraska. Dear Mrs. Weekes: My attention has been called to an article the Norfolk Press which this sentence occurs: Nebraska Press Association started hatching this 'moral obligation of the state' at Grand Island two years The refers Governor that he favors the state joining some manner in aiding depositors who lost money in failed state banks. When was preparing to to Grand Island two years ago attend the annual convention the Nebraska Press Association wrote article about the bank deposit guaranty situation as isted that time, took to Grand Island with me and asked Editor Gus Buechler the Grand Island Independent publish means circulating my personal views. He did took full responsibility the time and did not know until now that anybody had any different view of the entirely my own motion. did my duty saw it. The Nebraska upon Press Association did not have anything to do at any with any matter connected any attempt to problem connection with the guaranty fund deficit. am in position know. When serious public problem comes before the people there always much difference the extent and correctness of information available to individuals, wide difference of opinion usually much what individuals and groups may try do when they attempt to be helpful. seemed to two years ago that there was lack of about the bank guaranty uation that there great need of the matter and the earliest possible decision by the voters upon the question to what to do about the deposit guaranty personal attitude was that great financial loss and much My could averted the people could be gotten to say suffering the what they wanted to do about the guaranty Keep polls and make the losses, least in part, kill The failure good submit two ago has merely made bad matters has multiplied its volume. Next there will, way. mandate from the people through their action the million dollar proposal but the eight action could have been had better form two years ago. However, the Nebraska has never had anything to with the matter. Yours truly, Frank Edgecombe. Dear Mrs. Weekes: forgot to say in my letter yesterday that was mailing copies of it to several publishers. Cordially yours, Frank Edgecombe. Mr. isn't The Press regular reading list and the Edgecombe on person who called his attention to the recent political paragraph that him reason excuse for his ideas The gives Press name did not, evidently, inform about the paragraphs in The Press dealing with the same matter in March, two Mr. Edgecombe for some reason best known just years ago. himself and informant about The Press' recent paragraph wants make the responsibility for the original agitation about state's so-called "moral responsibility" the bank guaranty case his own rather than that of The Nebraska Press And that meets with my fullest approval. But these who recall the newspaper publicthe matter at that time made appear was Nebraska ity given Press not that Frank Edgecombe. Mr. Edgecombe scarcely lends weight to his present argument his explanation wanting of circulating personal views." Were that his sole purpose then he could easily have used own newspaper, the Nebraska Signal and he could have mailed marked copies to the Independent at Grand Island and to other widely-read dailies over the state. That chose have the publicity broadcasted from Grand Island during the meeting of the state press association members gave the appearance state press support of the idea. And that what member the State Press Association object know well Mr. combe that rightly extraneous matters have no place in the NebrasPress Mr. knows well ka that matters been made appear and extraneous parcel of the associations activity when truth the matter been brought to the floor the association would refused place. instance the private opinions of speakers antagonistic farmers' political organization were heralded from group luncheons though they were the concensus of opinion of the orone recall during meeting of the state press ganization. body at Lincoln Lincoln daily reported the state press group had certain individual for place the interstate commerce commission when in truth the president of the state press had written more private letter try to keep readers in matters of public interIn thereof reproduce here some from The Norfolk Press columns of two years ago: These from the Press March 1928. Shades of our constitutional fathers, whither are we drifting? the Press Association convention at Grand Island last week Frank Edgecombe of the Geneva Signal, distinguished bulwark and almost tempted to say addressed the gathered scribes urging amendment the Nebraska constitution that will permit the taxing of the people of Nebraska to make the deficiency in the bank guaranty fund. few years back Lincoln in the group's convention spoke briefly modestly for the right of farmers and labor to organize and Frank Edgecombe almost threatened kind of folks with extermination. my Obed Raasch was almost anathema in the columns the state when he introduced state banking bill but Obed Raasch didpress ask Nebraska tax payers to relieve him of bank losses. He dug his life's savings and paid the bill. Why that every standpatter who red whenever Uncle Sam sells printed envelope or city an electric plant perfectly willing to pass onto the public the business where And these from the issue of March 15, 1928: good friend writes me to know about effort toward legislation to the end that the tax-paying public make good the bank guarantee know that men interested to that end have approached candidates for the legislature ascertain their sentiments in the matter. know including bankers say the only thing that can done are to save Nebraska from financial chaos. seems that Frank Edgecombe's statement regarding possible constitutional amendment planned to help the guaranty act not made on the floor the Nebraska Press convention as some reports lead to believe but instead was made newspaper newspaper group during the and was given formal publicity with convention news. The Press has supplied with of Mr. Edgecombe's here portion copy Seven and months ago the Citizens State bank of Geneva was turned over to the guarantee fund commission. On the surface not thing has been done to off the depositors. Of course those pay charge are using every endeavor to collect the bank's loans and eventually dividend will be declared, we must assume, but ceiver has not been appointed and receiver's certificates have been issued for the excellent reason that nobody would buy the receiver's certificates of this any other suspended bank with the fund twelve million dollars in the hole. This condition prein in the state which the every operating bank. probably costing the about $500 month to operate the Geneva bank and serving any useful public purpose beyond the collecting efforts. This same relative expenditure being caused operating every suspended bank we must assume. That the people of the state would repudiate individual responsibility for the money on deposit in the broken banks It mean repudiation, great loss to despositors may and the shaking of public confidence banks to refuse greatly delay relief. Can relief be found that not likely to serious loss, but rather prevent Many relief plans have been suggested seems me that the and the most practical plan offer the people the state by the strictly limited them adopt that method should be favorably the amendment should be limited scope, say to guarantee than five percent of the deposits in the solvent state banks, and should be limited in time the insertion of repealing clause that would repeal the amendment in two or three years; the amendment should require the legislature provide by the payment such secured certificates, with interest thereon by annual on the state banks. Without danger of serious the state, by the method suggested, could make bank receivers' certificates, under the authority of the district courts as provided by law, salable at very interest, probably not more than four Every depossuspended Nebraska bank could be paid what he is entitled