Osawatomie State Bank (Osawatomie, KS)

Episode Information

Episode UID
83014871480
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
8301487 routing
Routing Number
83-0148
Start Date
April 18, 1923
Location
Osawatomie, Kansas (38.497, -94.951)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
e8b2ae5967b25c46

Response Measures

None

Description

Deposits were protected by the Kansas state guaranty fund; bank entered liquidation and paid dividends later in 1923.

Events (3)
1. April 18, 1923 Run
Cause
Rumor Or Misinformation
Cause Details
Reports from a stockholders' meeting about a proposed reorganization created uneasiness and prompted depositors to demand their money.
Newspaper Excerpt
This action followed a run on the bank yesterday which absorbed nearly all the available cash.
Source
newspapers
2. April 19, 1923 Receivership
Newspaper Excerpt
It is estimated the liquidation of the bank assets will cause a loss of about $75,000, Mr. Sandell said today.
Source
newspapers
3. April 19, 1923 Suspension
Cause
Government Action
Cause Details
State Bank Commissioner ordered the bank closed after the run exhausted available cash and the bank could not realize loans to meet withdrawals.
Newspaper Excerpt
The Osawatomie State bank ... was ordered closed today by State Bank Commissioner Carl Peterson.
Source
newspapers

Newspaper Articles (8)
1. April 19, 1923 The Emporia Gazette Emporia, KS
Article from The Emporia Gazette, April 19, 1923

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Article Text

Osawatomie State Bank in Failure Closing Order Follows Run on Bank Yesterday That Absorbed Nearly All of Cash Topeka, April 19—The Osawatomie State bank of Osawatomie, Miami county, was ordered closed today by State Bank Commissioner Carl Peterson. This action followed a run on the bank yesterday which absorbed nearly all the available cash. The run presumably was caused by a meeting of stockholders on Tuesday at which an attempt was made to reorganize the bank. Assistant Bank Commissioner J. H. Sandell attended the meeting. The reorganization plans were left pending and reports of the meeting caused uneasiness among the depositors who demanded their money. It is estimated the liquidation of the bank assets will cause a loss of about $75,000, Mr. Sandell said today. It has been in financial difficulty since a former cashier resigned two years ago. Inability to realize on its loans at once to meet the run necessitated the closing of the bank, according to Commissioners Peterson and Sandell. In its last statement, March 31, the bank showed $324,626.33 deposits. It has a capital of $25,000 and surplus of $2,500. S. S. Whiteford has been president of the bank only a few months. M. F. Carter is cashier. The deposits are protected by the state guaranty fund.

2. April 19, 1923 Concordia Blade-Empire Concordia, KS
Article from Concordia Blade-Empire, April 19, 1923

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Article Text

OSAWATOMIE BANK FORCED TO SHUT DOWN TOPEKA, April 19.—The Osawatomie State bank of Osawatomie, Miami county, was ordered closed today by State Bank Commissioner Carl Peterson. This action followed a run on the bank yesterday which absorbed nearly all the available cash. The run presumably was caused by a meeting of stockholders Tuesday at which an attempt was made to reorganize the bank. Assistant Bank Commissioner J. H. Sandell attended the meeting. The reorganization plan was left pending and reports of the meeting created uneasiness among depositors who demanded their money. It is estimated liquidation of the bank's assets will cause a loss of about $75,000, Mr. Sandell said today. The bank has been in financial difficulty since a former cashier absconded more than a year ago. Inability to realize on its loans at once to meet the run necessitated closing the bank. In its last statement of March 31 the bank showed $324,636 deposits. It had a capital of $25,000 and $7,500 surplus. The deposits are protected under the bank guaranty fund. S. S. Whiteford has been president of the bank only a few months.

3. April 19, 1923 Winfield Daily Courier Winfield, KS
Article from Winfield Daily Courier, April 19, 1923

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Article Text

AMERICA'S TAX BURDEN ENORMOUS IS CLOSE TO GREAT BRITAIN'S, THE HIGHEST IN THE WORLD STILL MOUNTING TOO MANY TAX EXEMPT SECURITIES, SAYS BANKER No Chance of Decreasing Burden Under the Present Tax Laws, He Explains (By The Associated Press) SHREVEPORT, La., April 19—The tax burden per capita in the United States is only exceeded by that of Great Britain and is a close second and it is probably hopeless to expect any decreases, Dr. W. F. Gephart, vice president of the First National Bank of St. Louis said today in an address before the Louisiana State Bankers' Association in annual meeting here. "It has been estimated that each person in the United States works one day a week to support the government which is now operated at a cost of about $8,000,000,000 a year. This is about one-eighth of our total national income." CLOSE A BANK Institution At Osawatomie, Miami County, Ordered Closed (By The Associated Press) TOPEKA, April 19—The Osawatomie State Bank of Osawatomie, Miami county, was ordered closed today by State Bank Commissioner Carl Peterson. This action followed a run on the bank yesterday which absorbed nearly all the available cash. The run presumably was caused by a meeting of stockholders on Tuesday at which an attempt was made to reorganize the bank. Assistant Bank Commissioner J. H. Sandell, attended the meeting. The re-organization plan was left pending and reports of the meeting created uneasiness among the depositors who demanded their money. It is estimated that the liquidation of the bank's assets will cause a loss of about $75,000, Mr. Sandell said today. It has been in financial difficulties since the former cashier left two years ago. Inability to realize on its loans at once to meet the run, necessitated the closing of the bank, according to Commissioners Peterson and Sandell. In its last statement, March 31, the bank showed $324,636.33 deposits. It has a capital of $25,000 and a surplus of $2,500. S. S. Whiteford has been president of the bank only a few months. M. F. Carter is cashier. The deposits are protected under the state guaranty fund.

4. April 19, 1923 The Iola Register Iola, KS
Article from The Iola Register, April 19, 1923

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Article Text

CLOSE OSAWATOMIE BANK. A Run by Depositors Exhausted the Ready Cash. (By the Associated Press) Topeka, Kas., April 19.—The Osawatomie State Bank of Osawatomie, Miami county, was ordered closed today by State Bank Commissioner Carl Peterson. This action followed a run on the bank yesterday which absorbed nearly all the available cash. The run presumably was caused by a meeting of stockholders on Tuesday at which an attempt was made to reorganize the bank. Assistant Bank Commissioner J. H. Sandell attended the meeting. The reorganization plan was left pending and reports of the meeting created uneasiness among the depositors who demanded their money. It is estimated the liquidation of the bank's assets will cause a loss of about $75,000, Mr. Sandell said today. It has been in financial difficulty since a former cashier left two years ago. Inability to realize on its loans at once to meet the run necessitated the closing of the bank, according to Commissioners Peterson and Sandell. In its last statement, March 31, the bank showed $324,636.33 deposits.

5. April 19, 1923 The Kansas City Star Kansas City, MO
Article from The Kansas City Star, April 19, 1923

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Article Text

CLOSE AN OSAWATOMIE BANK. Run Yesterday Forces Action by the Kansas Authorities. TOPEKA, April 19.—The Osawatomie State Bank of Osawatomie, Miami County, was ordered closed today by Carl Peterson, state bank commissioner. This action followed a run on the bank yesterday, which absorbed nearly all the available cash. The run presumably was caused by a meeting of stockholders Tuesday at which an attempt was made to reorganize the bank. J. H. Sandell, assistant bank commissioner, attended the meeting. The reorganization plan was left pending and reports of the meeting created uneasiness among the depositors. It is estimated the liquidation of the bank's assets will cause a loss of about $75,000, Mr. Sandell said today. It has been in financial difficulty since C. H. Mathews, former cashier, left two years ago. Inability to realize on its loans at once to meet the run necessitated the closing of the bank, according to Peterson and Sandell. In its last statement, March 31, the bank showed $324,636.33 deposits. It has a capital of $25,000 and surplus of $2,500. The deposits are protected by the state guaranty fund.

6. April 19, 1923 The Evening Kansan-Republican Newton, KS
Article from The Evening Kansan-Republican, April 19, 1923

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Article Text

OSAWATOMIE BANK IS ORDERED CLOSED Topeka, April 19.—The Osawatomie State bank of Osawatomie, Miami county, was ordered closed today by State Bank Commissioner Carl Peterson. This action followed a run on the bank yesterday which absorbed nearly all the available cash. The run presumably was caused by a meeting of stockholders on Tuesday at which an attempt was made to re-organize the bank. Assistant bank commissioner J. H. Sandell attended the meeting. The re-organization plan was left pending and reports of the meeting created uneasiness among the depositors who demanded their money. It is estimated the liquidation of the bank's assets will cause a loss of $75,000, Mr. Sandell said today. It has been in financial difficulty since the former cashier left two years ago. Inability to realize on its loans at once to meet the run necessitated the closing of the bank, according to commissioner Peterson and Sandell. In its last statement, March 31, the bank showed $324,636.33 deposits. It has a capital of $25,000 and a surplus of $2500. S. S. Whiteford has been president of the bank only a few months. M. F. Carter is cashier. The deposits are protected under the state guaranty fund.

7. December 24, 1923 The Iola Register Iola, KS
Article from The Iola Register, December 24, 1923

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Article Text

CHRISTMAS DIVIDENDS. Depositors of Defunct Banks Will Receive Part of Deposits. Topeka, Kans., Dec. 24.—Depositors whose funds were tied up in half a dozen of the 58 banks now being liquidated by the state banking department, are being enabled to make their Christmas a merry one by the receipt of checks representing at least a part of their deposits. The largest of these payments—in fact, the largest in the history of the department—was the 81 per cent, or approximately $400,000, to more than 1,100 depositors of the Kansas State Bank of Salina which failed nearly five years ago. Other defunct banks paying dividends are: American State Bank, Cherryvale, 30 per cent, on December 20. State Bank of Arrington, 10 per cent, December 15. This was additional to a dividend of 30 per cent paid last April. Citizens State Bank, Manhattan, 10 per cent, January 1, 1924. This probably will be a final dividend from the assets of the bank from which three dividends of 40, 20 and 10 per cent respectively already have been paid. The balance will come from the state guaranty fund. Osawatomie State Bank, 20 per cent, December 20. This guaranty bank already has paid depositors 45 per cent since it failed, April 19. Farmers State Bank, Wamego, 88 per cent, December 15. This is the aggregate depositors will receive as the bank was not protected by membership in the guaranty fund. "In addition to their original investments, depositors in the guaranty banks receive interest on their deposits from the day the bank failed," State Bank Commissioner C. J. Peterson said. "The depositors of the Salina bank thus are receiving in the 81 per cent dividend approximately the entire amount of the deposits from the guaranty fund, plus the 19 per cent they already had received direct from the assets of the bank. That is, the interest that has accrued in the four and a half years since the bank failed added about 20 per cent to their original deposits." Commissioner Peterson said no special assessment against the 900 banks belonging to the guaranty fund membership will be required because of the record disbursement from the fund to meet the obligation at the Salina bank. The annual guaranty fund assessment falls due next month. It is one-twentieth of one per cent of the

8. December 27, 1923 Smith County Journal Smith Center, KS
Article from Smith County Journal, December 27, 1923

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Article Text

CHRISTMAS PRESENTS TO DEPOSITORS OF DEFUNCT BANKS Depositors whose funds were tied up in half a dozen of the fifty-eight banks now being liquidated by the state banking department are being enabled to make their Christmas a merry one by the receipt of checks representing at least a part of their deposits. The largest of these payments—in fact the largest in the history of the department—was the 81 per cent, or approximately $400,000 to more than 1,100 depositors of the Kansas State bank of Salina which failed nearly five years ago. Other defunct banks paying dividends are: American State bank, Cherryvale, 30 per cent on December 20. State Bank of Arrington, 10 per cent, December 15. This was additional to a dividend of 30 per cent paid last April. Citizens State bank, Manhattan, 10 per cent, January 1, 1924. This probably will be a final dividend from the assets of the bank from which three dividends of 40 20 and 10 per cent respectively already have been paid. The balance will come from the state guaranty fund. Osawatomie State Bank, 20 per cent, December 20. This guaranty bank already has paid depositors 45 per cent since it failed, April 19. Farmers State Bank, Wamego, 88 per cent, December 15. This is the aggregate depositors will receive as the bank was not protected by membership in the guaranty fund. "In addition to their original investments, depositors in the guaranty banks receive interest on their deposits from the day the bank failed." State Bank Commissioner C. J. Peterson said, "The depositors of the Salina bank thus are receiving in the 81 per cent dividend approximately the entire amount of the deposits from the guaranty fund, plus the 19 per cent they already had received direct from the assets of the bank. That is, the interest that has accrued in the four and a half years since the bank failed added about 20 per cent to their original deposits." Commissioner Peterson said no special assessment against the 900 banks belonging to the guaranty fund membership will be required because of the record disbursement from the fund to meet the obligation at the Salina bank. The annual guaranty fund assessment falls due next month. It is one-twentieth of 1 per cent of the total deposits in each bank. This will add approximately $300,000 to the guaranty fund which was reduced to approximately $500,000 by the Salina payment according to Commissioner Peterson. "The guaranty fund has proven to be a wonderful asset to banking and business interests generally during the last year," said Mr. Peterson. "In addition to securing depositors against loss it serves as a security for the state at large, for all business—in this state especially agriculture—is closely related to the banking business. There is no occasion for such a thing as a run on a bank nor a financial depression in a community, or in the state, as long as the guaranty fund operates."—Topeka State Journal.