Bank of Dow City (Dow City, IA)

Episode Information

Episode UID
72129571500
Episode Type
Run → Suspension → Closure
Bank Type
private
Bank ID
7212957 routing
Routing Number
72-1295
Start Date
December 31, 1924
Location
Dow City, Iowa (41.929, -95.494)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
03f8d238649307fb

Response Measures

None

Description

Closures tied to withdrawal of public funds after surety companies declined to renew depository bonds.

Events (3)
1. December 31, 1924 Run
Cause
Local Banks
Cause Details
Heavy withdrawals of public and private funds linked to related banks' difficulties and withdrawal of public deposits after surety companies declined to renew bonds.
Measures
None specified beyond state banking department intervention for related banks.
Newspaper Excerpt
the First National Bank at Denison, the Bank of Dow City, and the Traders Bank of Vails, also had been closed because of heavy withdrawals.
Source
newspapers
2. December 31, 1924 Suspension
Cause
Local Banks
Cause Details
Closed due to heavy withdrawals of funds, influenced by removal of public deposits after surety companies declined renewals.
Newspaper Excerpt
the First National Bank at Denison, the Bank of Dow City, and the Traders Bank of Vails, also had been closed because of heavy withdrawals.
Source
newspapers
3. January 27, 1925 Receivership
Newspaper Excerpt
He resigned to accept the receivership of the Traders bank of Vail and the Bank of Dow City, two of the McHenry banks which closed their doors December 31.
Source
newspapers

Newspaper Articles (10)
1. December 31, 1924 The Republic Columbus, IN
Article from The Republic, December 31, 1924

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Article Text

SEVERAL IOWA BANKS CLOSED Reason Said to be Withdrawal of Public and Private Funds. (By Associated Press.) Des Moines, Ia., Dec. 31.—Two Des Moines banks, the Mechanics Savings and Trust Savings and Commercial Savings, closed today and were taken over by the state banking department, due, it was said, to prospective or actual heavy withdrawals of public and private funds. The banking department this afternoon was unofficially informed that the First National Bank at Denison, the Bank of Dow City, and the Traders Bank of Vails, also had been closed because of heavy withdrawals. These three banks were said to be closely related. The necessity for withdrawal of public money from the banks to be turned over to the incoming state treasurer by the present treasurer, who closes his accounts tonight, was said to have had a bearing on the bank suspensions.

2. December 31, 1924 Dayton Daily News Dayton, OH
Article from Dayton Daily News, December 31, 1924

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Article Text

5 IOWA BANKS CLOSE DOORS Heavy Withdrawals of Funds Are Believed To Be Cause. DES MOINES, Dec. 31.—Two Des Moines banks, the Mechanics Savings and Commercial Savings, closed today and were taken over by the state banking department, due, it was announced, to prospective or actual heavy withdrawals of public and private funds. The Commercial Savings Bank which carried deposits of $1,500,000 in public money, was the first to close, officers stating they had been advised of the probable withdrawal of the funds because surety companies declined to renew depository bonds. The Mechanics Bank, it was said, was closely allied with the Commercial and held $115,000 of state funds which were not fully covered by sureties, in addition to large deposits by insurance companies centering here. The necessity for withdrawal of public money to be turned over to the incoming state treasurer by the present treasurer who closes up his accounts tonight, was said unofficially to have had a bearing on the bank suspensions. The banking department was unofficially informed that the First National Bank of Denison, the Bank of Dow City and the Traders Bank of Vail, also had been closed because of heavy withdrawals.

3. December 31, 1924 The Portsmouth Times Portsmouth, OH
Article from The Portsmouth Times, December 31, 1924

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Article Text

BANKS CLOSE DUE TO WITHDRAWAL OF FUNDS DES MOINES, IA., December 31.—(By the Associated Press)—Two Des Moines banks, the Mechanics' Savings and the Commercial Savings closed today and were taken over by the state banking department, due it was announced to prospective or actual heavy withdrawals of public and private funds. The banking department this afternoon was unofficially informed that the First National Bank of Denison, Iowa, the bank of Dow City, Iowa, and the Traders' Bank of Vail, Iowa, also had been closed because of heavy withdrawals. These three institutions were said to be closely related. Robert Leach, superintendent of banking, had not been advised of the details of their difficulties. Inability of the banks to obtain surety for the public funds, deposited by the state, by Des Moines, Polk county and the school board, was said to have caused the action, the depositors being compelled under the law to withdraw the funds in the absence of depository bonds. The bank, it was said, was unable to withstand such a heavy withdrawal. The Commercial Savings Bank which carried deposits of $1,500,000 in public money was the first to close, officers stating they had been advised of the probable withdrawal of the funds because surety companies declined to renew depository bonds. The Mechanics' Bank, it was said, was closely allied with the Commercial and held $115,000 of state funds which were not fully covered by sureties, in addition to large deposits by insurance companies centering here. Officers of the Mechanics' Bank offered no explanation except that heavy withdrawals had prompted their action. The necessity for withdrawal of public money to be turned over to the incoming state treasurer by the present treasurer who closes up his accounts tonight was said unofficially to have had a bearing on the bank suspensions. The closing followed closely upon an opinion by Attorney General Ben Gibson that public funds under a new state law, were not preferred claims. This it was believed, led the surety companies to decline further guarantees of public money until the question was decided by the courts.

4. December 31, 1924 The Belleville News-Democrat Belleville, IL
Article from The Belleville News-Democrat, December 31, 1924

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Article Text

HEAVY RUN ON BANKS FORCES ACTION Two Large Des Moines Institutions Ordered Closed. (By the Associated Press.) Des Moines, Ia., Dec. 31.—Two Des Moines banks, the Mechanics' Savings and the Commercial Savings, closed their doors today and were taken over by the state banking department, the cause in each case being given as prospective or actual heavy withdrawals of public and private funds. The banking department this afternoon also was unofficially informed that the First National Bank of Denison, Ia., the bank of Dow City, and the Traders Bank of Vail, Ia., had been closed because of heavy withdrawals. These three institutions were said to be closely related. Robert Leach, superintendent of banking, had not been advised of the details of their difficulties. The Commercial Savings Bank, which carried deposits of $1,500,000 in public money was the first to close, officers stating they had been advised of the probable withdrawal of these funds because the surety companies declined to renew their depository bonds. The Mechanics' Bank, it was said, was closely allied with the Commercial and held $115,000 of state funds. Officers of the Mechanics' Bank offered no explanation except that heavy withdrawals had prompted their action. The necessity for withdrawal of public money to be turned over to the incoming state treasurer by the present treasurer, who closes his accounts tonight, was said to have had a bearing on the suspension of business by the institutions. BANK ROBBED OF $11,669. Kansas City, Kan., Dec. 31.—The Kaw Valley State Bank was held up and robbed of $11,669 here today by three men. Seven persons, including three customers, were forced into a back room and made to lie on the floor while the bank was looted. After getting the money from the cages and vault the robbers forced those present into the vault.

5. January 1, 1925 The Boston Daily Globe Boston, MA
Article from The Boston Daily Globe, January 1, 1925

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Article Text

Public Funds Removed on Ruling They Arn't Preferred Claims DES MOINES, Ia. Dec 31—The Commercial Savings Bank here failed to open today, under orders of the State Banking Department. The bank had $1,500,000 of public funds on deposit. Later another Des Moines bank, the Mechanics Savings, closed and was taken over by the State Banking Department, due, it was announced, to prospective or actual heavy withdrawals of public and private funds. The banking department was this afternoon unofficially informed that the First National Bank of Denison, Iowa, the bank of Dow City, Iowa, and the Traders' Bank of Vail, Iowa, also had been closed, because of heavy withdrawals. These three institutions are closely related. The Commercial Savings Bank was the first to close, officers stating they had been advised of the probable withdrawal of the public funds because surety companies declined to renew depository bonds.

6. January 1, 1925 Pittsburgh Post-Gazette Pittsburgh, PA
Article from Pittsburgh Post-Gazette, January 1, 1925

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Article Text

FIVE IOWA BANKS CLOSE AS CASH IS WITHDRAWN Suspensions Laid to Surety Companies Taking Out Public Funds. NO LOSSES FORESEEN ASSOCIATED TO DES Des Moines Savings and the Commercial Savings, closed today and were taken over by the state Banking Department it announced, to prospective actual heavy withdrawals of public private funds. The Banking Department today was informed that the National Bank of Denison, Ia., the Bank of Dow City, Ia., and the Traders' Bank of Vail, had closed because of heavy These three institutions were to be closely related. Robert Leach, superintendent of banking. had been advised of the details of their difficulties. Later advices direct from Denison, Dow City and Vall assigned son for the run on three banks that precipitated the closing. The State Banking Department declined comment or out the state, until a survey could be made The Mechanics Bank here. it said, probably would be taken by another concern, while officers of the Bank said they hoped to settle all claims in full. Public Money Withdrawn. The Commercial Savings Bank, which carries deposits of $1,500,000 in public money, was the first to close, officers stating they had been advised of the probable withdrawal of the funds surety declined to renew depository bonds The Mechanics it was said, was closely with the Commerand held of state funds which were not by sureties, in addition to by Officers of the Mechanics Bank of fered no explanation except that heavy withdrawals had prompted their action. The necessity for withdrawal of public money to be turned over to the incoming state treasurer by the present treasurer who closes up his counts tonight, was said unofficially

7. January 8, 1925 Fergus County Argus Lewistown, MT
Article from Fergus County Argus, January 8, 1925

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Article Text

CLOSE IOWA Des Moines Des. and the Mechanics banks, closed their Savings, the taken by today and were doors The the state was given in each cause actual heavy pective and private funds. public this department The unofficially ternoon bank of DenFirst National that the Bank of Dow City, nison, Ia., the bank of Vaile, the Traders' and because of been closed These three heavy said to be closely stitutions Robert Leach, superintendent lated, been advised had not their difficulties. the details

8. January 28, 1925 The Sioux City Journal Sioux City, IA
Article from The Sioux City Journal, January 28, 1925

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Article Text

COURT CLERK QUITS; NAMED BANK RECEIVER Denison, Ia., Jan. 27.—Special: M. L. Runge, who started the first of the year serving on his second term as clerk of the district court of Crawford county, resigned his position this morning. He resigned to accept the receivership of the Traders bank of Vail and the Bank of Dow City, two of the McHenry banks which closed their doors December 31. Judge R. L. McCord appointed Hugo P. Saggau to fill the vacancy. Mr. Saggau formerly was cashier of the Farmers State bank of Denison which closed its doors about a year ago.

9. January 28, 1925 The Sioux City Journal Sioux City, IA
Article from The Sioux City Journal, January 28, 1925

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Article Text

Denison, Ia., Jan. 27.—Special: M. L. Runge, who started the first of the year serving on his second term as clerk of the district court of Crawford county, resigned his position this morning. He resigned to accept the receivership of the Traders bank of Vail and the Bank of Dow City, two of the McHenry banks which closed their doors December 31. Judge R. L. McCord appointed Hugo P. Saggau to fill the vacancy. Mr. Saggau formerly was cashier of the Farmers State bank of Denison which closed its doors about a year ago.

10. January 28, 1925 Evening World-Herald Omaha, NE
Article from Evening World-Herald, January 28, 1925

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Article Text

DISTRICT CLERK QUITS TO BE BANK RECEIVER Special Dispatch to the World-Herald. Denison, Ia., Jan. 27.—M. L. Runge, who started first of the year serving his second term as clerk of district court of Crawford county, resigned today to accept receivership of the Traders bank of Vail and the Bank of Dow City, two of the McHenry banks which closed December 31. Judge R. L. McCord appointed Hugo P. Saggau to fill the vacancy. Mr. Saggau was formerly cashier of the former Farmers State Bank of Denison. Daily Road Conditions. (Furnished by the Omaha Auto Club.) Lincoln Highway, East, Primary No. 6.—Road rough to Missouri Valley. Fair in stretches east. West, Paved 46 miles to Ames, Neb. Fair in stretches to Grand Island. Passable but troublesome west. D L D, Primary No. 7.—Fair to Lincoln with exception of a few miles near Gretna.