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SHUT STATE BANK Bad Paper and Withdrawals Hit Belmont Institution. Capitalized at $10,000 and With Deposits of $48,000. The Farmers State bank at Belmont, Kingman county, capitalized at $10,000 and with deposits of $48,000, was closed by the state banking department today. according to J. H. Sandell, assistant state bank commissioner. B. V. Curry, who has been appointed receiver for all the banks that have closed within recent months, will act as receiver for this institution, Sandell said. The Belmont institution has been in financial trouble since early in the year, state officials said. In February a change was made in officials, at the direction of the state department, and J. O. Berry was made cashier. This change was made after it was learned that the bank was overloaded with bad paper. However, the change failed to save the institution and the accumulated bad paper together with heavy recent withdrawals made it necessary to close the bank. Depositors are protected by the state guaranty law. Sandell today was unable to estimate the probable losses but he said that with the double liability on stockholders he was hopeful that the state fund would not suffer a loss.
