8940. Cosby State Bank (Cosby, MO)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
April 1, 1927*
Location
Cosby, Missouri (39.864, -94.678)

Metadata

Model
gpt-5-mini
Short Digest
e2652fab9ddf1ac1

Response Measures

None

Description

Articles report the Cosby State Bank closed by order of directors and state finance in April 1927 after about ten days of heavy withdrawals triggered by the nearby Clarksdale bank failure and the bank's impaired capital from bad/slow loans. A deputy finance commissioner was sent to liquidate and later sought permission to pay a dividend to depositors, indicating closure and liquidation.

Events (3)
1. April 1, 1927* Run
Cause
Local Banks
Cause Details
Withdrawals intensified following the Clarksdale bank failure and resulting consternation in the community; underlying impaired capital from slow and bad loans worsened the situation.
Measures
None reported beyond normal efforts; heavy withdrawals exhausted cash on hand.
Newspaper Excerpt
Then there reported to have been the bank for ten days prior closing which exhausted the cash hand.
Source
newspapers
2. April 30, 1927 Suspension
Cause
Government Action
Cause Details
Board of directors ordered doors closed and state finance (bank examiner/deputy) took charge and later named a deputy to liquidate the bank.
Newspaper Excerpt
The Cosby State Bank closed April 30.
Source
newspapers
3. May 1, 1927* Receivership
Newspaper Excerpt
bank examiner sent take charge until special deputy named liquidate ... Messenbaugh the deputy finance commissioner charge ... deputy finance for few hours ... Neville Dickson, who the deputy finance charge the Cosby State Bank, will appear before Judge Park ... permission pay dividend the depositors bank ... This will depositors that community around The Cosby State Bank closed April 30 . . . .
Source
newspapers

Newspaper Articles (2)
1. May 6, 1927 Savannah Reporter and Andrew County Democrat Savannah, MO
Article from Savannah Reporter and Andrew County Democrat, May 6, 1927

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Article Text

BANK COSBY CLOSED Bank failure 19 Missouri 1927, was reported last Saturday State Finance Cantley, when board of directors of the Cosby State Bank of Cosby ordered doors closed. bank examiner sent take charge until special deputy named liquidate The statement of condition of the bank, made of April 1927, the Loans real estate owned, $25,000; due from other banks and on hand, capital, surplus, $10,000; deposits, bills payable, $20,000; Kline president and Peters cashier. Impaired capital due to slow and bad loans attributed the reason for the of the bank. Then there reported to have been the bank for ten days prior closing which exhausted the cash hand. Messenbaugh the deputy finance commissioner charge the evening April and bank closed the with morning different deputy finance for few hours. The Clarksdale bank closed April and seemed produce the sternation which caused sufficient make the deposits the state requirements at Cosby.

2. November 18, 1927 Savannah Reporter and Andrew County Democrat Savannah, MO
Article from Savannah Reporter and Andrew County Democrat, November 18, 1927

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Article Text

COSBY STATE BANK DIVIDEND Neville Dickson, who the deputy finance charge the Cosby State Bank, will appear before Judge Park at Savanin the circuit court today and permission pay dividend the depositors bank. thought that will ask twenty dividend. This will depositors that community around The Cosby State Bank closed April 30. pathetic closing caused bank the time the Clarksdale bank failure and some bad failure.