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DEPOSITORS IN RUN ON BANK Associated Press Service. Sioux Falls, S. D., Jan. 21. Affairs of the International State Bank of Sioux Falls, with deposits of $1,300,000, were taken in charge by the state banking department today. Heavy withdrawals by depositors was given as the reason.
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Banks Close As Coolidge Cashiers Meet in Chicago (Special to The Daily Worker) WASHINGTON, D. C.-The renewed and continuing crash of banks in agricultural sections and the frantic S. O. S. from panic-stricken administration supporters in all these districts has the White House extremely worried. From Sioux Falls, S. D., comes the news of the failure of the International State Bank, following the closing of a dozen banks in that state since January 1. "This is no time for dilly-damlying around Chicago" say representatives of the Boosters Association of Sioux Falls, referring to the eleventh hour attempts at relief by a conference of bankers and administration officials sponsored by Coolidge. Two Montana banks, one in Havre and one in Fort Benton failed yesterday; Little Rock, Arkansas, reports the failure of the Hazen, Prairie county, bank; the Merchants bank of Hastings, Minnesota, closed its doors shortly after the principal bank in Grand Island, Nebraska, went insolvent. It is estimated that the bank failures of the week total $5,000,000. The Chicago conference of middle western bankers, heads of the federal reserve board and the war finance corporation has so far resulted in nothing. Coolidge boosters had let it be known that something like $30,000,000 would be available for the emergency. The belief is expressed here by congressmen and senators familiar with the agricultural situation that the renewal of bank failures in the farm regions when many observers thought the end of the liquidation period had been reached presages a wave of insolvency that will leave few banks standing in the middle west, west and south west.
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TELEGRAMS. ST. CROIX STATION. Chicago, Jany. 22nd -With the list of bank failures in the Northwest swelled during the last two days by forced closures, representatives of the financial powers of the United States Government named by President Coolidge, are holding conferences here designed to bolster the credit of the Northwest. Pwo Montana banks decided to close their doors today. At Havre, the security bank of Havre, with approximately $750, 000 in deposits, was forced to close because of heavy withdrawals, and the Stockmans National Bank of Fort Benton was placed in voluntary liquidation by the stockholders. The Fort Benton Bank had been in business forty-four years. Two banks in South Dakota closed yesterday due to withdrawals. They were the International State Bank of Sioux Falls, and the Western National Bank of Mitchell, the former having deposits of $1 300,000 and the latter $425,000. About twe ve banks have closed in South Dakota since January 1st, because of depleted reserves. The youngmens Booster Association, the largest businessmens organization in Sioux Falls. after a meeting last night, at which the banking situation was considered. passed resolutions declaring the complete financial ruin in South Dakota is likely, unless there is immediate relief from federal and other outside sources. Paris, Jan. 23rd. - The controversy between Great Britain and France, concerning the operation of the railways in the Rhindland appears to be reaching an acute stage. The British complain that the French and Belgians are operating
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oldest institution in the town, closed its doors. Tied to this ak was the First Trust Company, organized under the state law, to take up the musty paper that had been accumulated thru years of bad loans by the First National. Fresh deposits were desired for the First National, and the only way these could be got was by the organization of the subsidiary company. One of the devices of the First Trust to coax new deposits, was to send out several hundred pass books to people of small means, inviting their deposits. A credit of one dollar was written in the pass book, providing the recipient of the book became depositor of the bank. This pass book a credit "come-on" system worked with a great many, with the result that a large number of people are now patiently awaiting the promised re-opening of the bank. The First National Bank was a favorite of the officers of the State Rural Credits Board. One of the members of the Rural Credits Board, Albert Zosky, was a director of the bank. How much Rural Credits funds, borrowed by the State on bonds sold to furnish loans on land to farmers, are tied up in the failure, nobody but the insiders know. The Rural Credits Board is a closed corporation, divulging nothing it can conveniently keep from the public. Panic Grips Sioux Falls. The acute stage of the panic which has been approaching for months, broke in Sioux Falls, with the failure of the Sioux Falls National Bank on the 10th of January. This bank had deposits of two and a half million dollars, and with it went a number of its satellite banks in the smaller towns. This failure was followed two days later by the failure of the Sioux Falls Trust & Savings Bank, with deposits of between four and five million dollars, and with this institution also went a number of its country correspondents. In the interim, other smaller banks in the State, having no relations with these banks, "went South." These huge failures startled the big boys at Washington, and last week we were informed that Coolidgequick to come to the aid of the banks but slow to recognize the farmer distress as the cause of the troublehad instructed the War Finance Corporation to come to the rescue of the banks of North and South Dakota and Minnesota, with a thirty million slice of War Finance Corporation funds. Eugene Meyer is now on the ground with the alleged purpose of plugging the financial storm sewer with public money, one third of which is to go to this State, and the balance to North Dakota and Minnesota. Coolidge Didn't Save Them. This promise of the administration to come to the rescue could not been taken seriously, however, for on Monday the Western National Bank of Mitchell, with deposits of nearly a million dollars and five branch banks, closed its doors. This bank is headed by W. S. Hill, who was formerly president of the South Dakota Farm Bureau Federation. He was a prospective "dirt" farmer choice for member of the Federal Reserve Board and later for an appointment to the Shipping Board. On the same day the International State Bank of Sioux Falls, with deposits of $1,300,000 turned the key in its doors. This makes the third big failure in Sioux Falls within ten days. The combined deposit obligations of the three failed Sioux Falls banks amounts to over eight million dollars, which makes the Coolidge donation of ten million dollars for South Dakota look like a drop in the bucket to the distressed bankers who are not yet closed, but are shivering on the brink. Banks Failed Mondav. The daily press of this section is running a "closed shop" on news of bank failures generally, but from current information available at this writing, eleven banks closed their doors in this State on Monday. It was Black Monday for South Dakota's financiers. Nobody can tell how many more banks will tumble within the next few days or weeks. ,Depositors are quietly withdrawing their funds from all the banks now open, so that a continuation of the bank explosions may be expected. Nobody, not even the bankers themselves, appear to believe that the dumping of thirty or even fifty million dollars into the banks of the northwest to take up the bad paper of the banks, would now do any
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In Circuit Court Trial of the case of the First National bank of Jasper, Minn., vs. the International State bank of Sioux Falls was scheduled to be tried before Judge Medin, this afternoon. Plaintiff is suing to recover on a cash letter on a draft, which was sent to the defendant bank before it closed but which was delivered after the Sioux Falls bank had suspended business. Plaintiff claims it is a preferred creditor. Waggoner & Stordahl represent the plaintiff, and Bielski, Elliot & Marker are appearing for the defendant. Judge Medin awarded judgment in the sum of $979.25 on an account in the case of the Brownell corporation vs. J. W. Impecoven and E. H. Kouster, co-partners. Tobin & Raley appeared for the plaintiff. Names of 60 citizens of Minnehaha county were added to the circuit court jury list to fill in vacancies and bring the total up to 200. The names were drawn by the county commissioners on requisition of Eugene I. Foster, clerk of courts. The Lincoln County bank of Canton was granted default judgment against Niels and Elsie M. Dahl in the sum of $5,020.50 on a mortgage, and other mortgages on certain Lincoln county property were foreclosed in an order signed by Judge Medin, late yesterday. Plaintiff was represented by Claude Bennett. Suit to quiet title to certain Sioux Falls property was started by R. J. Beckley against James H. Mooers et al. Coon & Coon are attorneys for the plaintiff. In Probate Court The final account of Isabella H. Carleton, executrix of the estate of Bertrand C. Shaw, deceased, having been approved, an order was made distributing the estate. Letters of administration of the estate of Francis D. Murphy, deceased, were issued to Bridget Murphy. She filed her bond and qualified. Petition was filed praying that letters of guardianship of the estate of Peder Sorenson, incompetent, be issued to Otto A. Sorenson. Hearing was set for December 15.