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CANOVA CITIZENS SAVE FARMERS' STATE BANK Sell $37,500 of New Capital Stock In Day and Half to Bolster Up Reserve Depleted by "Run"—New Stockholders Elect Directors (Special to the Argus-Leader) Canova, Dec. 10.—New capital stock to the amount of $37,500 was sold within a day and a half for the purpose of recapitalizing the Farmers and Merchants State Bank of Canova after a run extending over a couple of days had depleted the bank's reserve and would have resulted in the bank's closing if the citizens of the community had not come to the rescue and bought the stock which places the bank on its feet again. Lost in January Crash The bank was a heavy loser in the closed Sioux Falls banks which tied up considerable of its cash reserve. This together with the fact that there was considerable slow paper in the bank upon which it was impossible to realize anything caused rumors to be set float that the bank was in bad shape and resulted in withdrawals of deposits which continued over several weeks, becoming acute last Thursday. The bank cut down to a limit of $10 withdrawals a day and on Friday reduced it to $5 and in this way was enabled to keep open. Plans for reorganization were started on Friday when the depositors were called together for a meeting. This meeting was attended by fully three hundred people, most of whom were depositors in the bank, and about half the stock necessary for a reorganization was pledged at this meeting. Friends of the bank got out the next day and another meeting was called for Saturday evening at which about the same number of interested people were present as at the Friday meeting and when the meeting opened there still remained fifty-two shares to be sold. New Directors Elected These were soon pledged and the new stockholders then elected a board of directors of seven members, as follows: Henry Lueth, grain buyer; H. Y. Loudenburg, auctioneer and farmer; T. R. Wikholm, farmer; T. J. Zens, merchant; Chas. Freeman, retired farmer; John Block, farmer; H. P. Kruse, banker. The newly elected directors have gone into the bank and are passing upon the assets and if they approve them will proceed to the election of officers and it is expected that this will be accomplished by the middle of the week and that the bank will be running at normal by the last of the week. Has $300,000 Deposits The bank has deposits of over $300,000 and under the reorganization will have loans of about $250,000. There are now 75 stockholders, all residents of Canova and the adjacent territory. With this number of people behind the bank it is expected that it will soon become one of the strongest banks in this part of the state. The Farmers and Merchants is Canova's oldest bank, having been organized about 15 years ago.
