First State Bank - Newell, SD

Episode Information

Episode UID: 78045471487
Episode Type: Suspension → Closure
Bank Type: state
Bank ID: 7804547 routing
Routing Number: 78-0454
Start Date: November 1, 1923
Location: Newell, South Dakota (44.715, -103.421)

Metadata

Model: gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest: ec11ed2555726e8c

Response Measures

None

Description

State banking department expected to take charge; suspension tied to poor loan realizations.

Events (1)

1. November 1, 1923 Suspension

Cause: Local Shock
Cause Details: Depletion of reserve due to inability to realize on farmers' and stockmen's notes; local agricultural loan losses.
Newspaper Excerpt: One of our local financial institutions, the First State Bank, suspended payment and closed its doors yesterday morning.
Source: newspapers

Newspaper Articles (1)

1. November 2, 1923 The Black Hills Weekly Deadwood, SD

Article from The Black Hills Weekly, November 2, 1923

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Article Text

BANK AT NEWELL WAS COMPELLED TO SUSPEND Valley Irrigator: One of our local financial institutions, the First State Bank, suspended payment and closed its doors yesterday morning. The immediate cause of suspension is attributed to depletion of the bank's reserve, occasioned by their inability to realize on farmers' and stockmen's notes. The First State is a purely local institution, all stockholders being residents of this community, and has no connection with any other bank. Their recent financial statement, under date of October 15, showed resources amounting to $303,521, and deposits of $204,118. Their cash reserve at that time was $27,925. This report compared favorably with those of numerous other banks of the northwest made under the last call of the examiner. The officers and principal stockholders of the bank are: W. D. Buchholz, president; A. E. Walker, vice-president; S. J. Clarke, cashier; A. B. Poggendorf, assistant cashier. Some negotiations had recently been under way for another bank to take over the good assets and assume an equal amount of the deposits, subject to approval of the state banking department. It is yet hoped that some such arrangement may be effected, for the general benefit of customers. Being a state bank and under the protection of the state guaranty law, depositors stand to lose nothing by the bank's suspension of operations. A representative of the state banking department is expected to arrive at once to take charge of the institution.