Article Text
FOURCHE CLOSED DOORS FRIDAY Last Friday morning the people this vicinity surprised learn that the First National Bank of Belle Fourche had failed to open for business. The reason assigned "heavy withdrawal of deposits and desire to protect all deposiThere had been no particular "run" on this bank, but for time withdrawals had greatly ceeded deposits and it was evident to the directors that to continue would merely give some depositors 100% of their money while others who stayed with the bank would perhaps take losses. The bank was immediately turned over to federal bank examiner who is busy going over its affairs and preparing statement of its condition. No plan has been announced for the future, as much depends on the report of the examiner. Those who are in position to know the bank is not in bad shape but was unable to call in enough of its livestock loans to pay so many depositors at this time. There is much talk on the street of reorganization but so could learned none of this was official. However it is quite likely that if the examiner finds the bank's affairs in condition to warrant reorganization this will be done as soon as possible. In the meantime, while it is very inconvenient to have one's money tied up just as winter is upon us, yet it is encouraging to know that statistics over a long period of years show that depositors receive an erage of 58% from national banks that fail, while the average paid to depositors from state banks is but This means that many national banks pay out 100%. The failure of the First National added burden on has thrown an many other local banks, but all have been able to take care of this and it is not thought by those who are informed that there will be any othsuspensions in this territory. In fact, the other banks were able in most cases to furnish money for the use of those whose funds are tied the closed institution. up in