First National Bank (Forsyth, MT)

Episode Information

Episode UID
732001488
Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
73200 national
Charter Number
7320
Start Date
December 13, 1923
Location
Forsyth, Montana (46.266, -106.678)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
be862eec8e1baa9c

Response Measures

Full suspension

Receivership Details

Depositor recovery rate
35.9%
Date receivership started
1923-12-18
Date receivership terminated
1932-01-04
OCC cause of failure
Governance
Share of assets assessed as good
35.6%
Share of assets assessed as doubtful
43.9%
Share of assets assessed as worthless
20.6%

Description

Closure followed the voluntary closing/failure of the Bank of Commerce which precipitated the run; receiver later paid dividends.

Events (5)

1. June 28, 1904 Chartered
Source
historical_nic
2. December 13, 1923 Run
Cause
Local Banks
Cause Details
Customers withdrew after the Bank of Commerce voluntarily closed, precipitating a heavy run on the First National.
Measures
Directors ordered the bank closed to forestall a disastrous run; officers cited heavy withdrawals.
Newspaper Excerpt
The First National's doors at the same time. This action was taken when it appeared probable that a run on its resources would follow the closing of the Bank of Commerce.
Source
newspapers
3. December 13, 1923 Suspension
Cause
Local Banks
Cause Details
Closed when it appeared probable a run would follow the Bank of Commerce's closing; state examiners took charge of the Bank of Commerce and First National ceased operations contemporaneously.
Newspaper Excerpt
The First National Bank of Forsyth also closed its doors at the same time.
Source
newspapers
4. December 18, 1923 Receivership
Source
historical_nic
5. December 18, 1923 Receivership
Newspaper Excerpt
The Receiver of the First National Bank of Forsyth ... S. G. REYNOLDS, Receiver (later notices paying dividends).
Source
newspapers

Newspaper Articles (15)

Article from The Montana Record-Herald, December 13, 1923

Click image to open full size in new tab

Article Text

DOORS CLOSE IN FORSYTH BANKS STATE INSTITUTION TAKES VOLUNTARY ACTION—NATIONAL CLOSES IN FACE OF RUN. The Bank of Commerce at Forsyth voluntarily closed its doors at noon Thursday and was taken in charge by a deputy examiner from the office of the state superintendent of banks. It is said the bank's liabilities are approximately $776,000 with assets unestimated as yet. J. E. Edwards, former state senator, is president of the institution and R. J. Cole is cashier. It is said that inability of Mr. Edwards to meet an obligation, reported to be $118,000, due at noon on Thursday was responsible for the action of the bank's management. The First National Bank of Forsyth also closed its doors at the same time. This action was taken when it appeared probable that a run on its resources would follow the closing of the Bank of Commerce. The First National's liabilities are said to be about the same as those of the Bank of Commerce.


Article from The Seattle Star, December 14, 1923

Click image to open full size in new tab

Article Text

Two Forsythe Banks Close Their Doors FORSYTHE, Mont., Dec. 14.-Two local banks, the Bank of Commerce and the First National bank, closed their doors here today. The Bank of commerce acted voluntarily and state bank examiners took charge. Liabilities are estimated at $775,000, while assets have not been computed. The First National was forced to close when a heavy run that threatened to be disastrous, began, officers stated.


Article from The Seattle Star, December 14, 1923

Click image to open full size in new tab

Article Text

Two Forsythe Banks Close Their Doors FORSYTHE, Mont., Dec. 14.—Two local banks, the Bank of Commerce and the First National bank, closed their doors here today. The Bank of commerce acted voluntarily and state bank examiners took charge. Liabilities are estimated at $775,000, while assets have not been computed. The First National was forced to close when a heavy run that threatened to be disastrous, began, officers stated.


Article from The Garfield County Journal, December 15, 1923

Click image to open full size in new tab

Article Text

Two Forsyth Banks Close Doors Thursday Thursday afternoon, like a bolt of lightning out of a clear sky, came a telegram from Forsyth announcing the fact that the doors of both the Bank of Commerce and the First National Bank had been closed. Reports reaching here say that the Bank of Commerce failed in an effort to meet certain demands laid down by the examiner and the directors ordered the doors closed. The First National Bank directors, fearing a run on their bank, also ordered the doors closed. A goodly number of local people have deposits in both banks. This leaves Forsyth with only one bank, the American National. The Helena Record-Herald in the account of the situation says in part: "The liabilities of the Bank of Commerce are approximately $776,000 with assets unestimated as yet. J. E. Edwards, former state senator, is president of the institution and R. J. Cole is cashier. It is said that inability of Mr. Edwards to meet an obligation, reported to be $118,000, due at noon on Thursday was responsible for the action of the bank's management. The First National's liabilities are said to be about the same as those of the Bank of Commerce."


Article from The Producers News, January 4, 1924

Click image to open full size in new tab

Article Text

COPPER TOOL'S BANK GOES BROKE A. C.M. FAILS TO COME TO RESCUE OF FAITHFUL SERVITORJ. E. EDWARDS OF FORSYTH IS NOW BANKRUPT. Forsyth.-The Bank of Commerce of Forsyth voluntarily closed its doors at noon last Thursday and was taken in charge by a deputy examiner from the office of the state superintendent of banks. It is said the bank's liabilities are approximately $776,000 with assets unestimated as yet. J. E. Edwards, former state senator, is president of the institution and R. J. Cole is cashier. It is said that inability of Mr. Edwards to meet an obligation, reported to be $118,000, due at noon on Thursday was responsible for the action of the bank's management. The First National Bank of Forsyth also closed its doors at the same time. This action was taken when it appeared probable that a run on its resources would follow the closing of the Bank of Commerce. The First National's liabilities are said to be about the same as those of the Bank of Commerce.


Article from The Sumatra Record, May 1, 1924

Click image to open full size in new tab

Article Text

NEW AMERICAN NATIONAL BANK OPENS FOR BUSINESS The American National Bank of Forsyth opened its doors to the public on last Saturday morning. 'Mid a profusion of flowers, supplemented by the expressed good wishes of depositors, business men and a host of citizens who wished the institution bon voyage, the new American National succeeded the old, which closed its doors to the public on February 13, last. The causes leading to the suspension of the former bank were the direct result of conditions affecting the entire banking and agricultural systems of the middlewest and northwest—the culmination of the period of deflation, concerning which much has been written and said. With the closing of the Bank of Commerce and the First National Bank, both Forsyth institutions going into liquidation on December 13, last, with numerous others throughout the territory suspending operations, the very natural result was a gradual withdrawal of deposits, although at no time did the American National experience a run. Public confidence was at a very low ebb, and that it might better conserve the interests of its clientele by anticipating a run on its funds, the board of directors decided that prudence was the better part of valor, and voluntarily suspended operations on February 13, two months after the closing of Forsyth's other two banks. Since that time our people have experienced the sensation and the inconvenience of endeavoring to conduct business without banking facilities. The banking business has grown to be such an integral part of our daily life that the daily life was seriously involved. But during the intervening time our business men were actively engaged in formulating plans for a reorganization and speedy reopening of the bank. Many such were presented but the plan finally adopted not only involved the opening of the bank at once, but also best conserved the resources of the old institution—the object for which the old bank voluntarily suspended. The new American National has a new official board, new capital, new confidence and a brand new feature in that it saved from liquidation the resources of its predecessor. No forced sale of securities at the present time can result in other than practically a total loss, and to obviate the extinction of its patrons' assets, they, together with the liabilities, have been assumed by the new bank on a workable basis satisfactory to its former depositors. The capital stock of the new institution is $25,000, paid-up, with the following officers: President, G. D. Whitney; vice president, W. E. Clarke; cashier, T. J. Wegener; assistant cashier, G. Flage. The new American National will confine its activities exclusively to commercial banking, leaving the field of farm loans to the Federal Farm Loan System, which the government instituted for that explicit purpose. Three-fifths of the new capital stock was subscribed by Forsyth


Article from Forsyth Times-Journal, March 19, 1925

Click image to open full size in new tab

Article Text

NOTICE TO DEPOSITORS FIRST NATIONAL BANK The Receiver of the First National Bank of Forsyth is now ready to pay a fifteen per cent dividend to depositors. In order to obtain the dividend check it will be necessary to bring with you the Receiver's Certificate you hold so that the payment of dividend can be endorsed thereon. S. G. REYNOLDS, Receiver.


Article from The Sumatra Record, March 26, 1925

Click image to open full size in new tab

Article Text

Paying Dividend The receiver of the First National Bank of Forsyth, Mont., is now ready to pay a fifteen per cent dividend to depositors. To obtain the dividend check it is necessary to bring with you the receiver's certificate that you hold, SO that the endorsement of payment can be made thereon. S.G. REYNOLDS, 16-4t Receiver.


Article from Forsyth Times-Journal, March 26, 1925

Click image to open full size in new tab

Article Text

NOTICE TO DEPOSITORS FIRST NATIONAL BANK The Receiver of the First National Bank of Forsyth is now ready to pay a fifteen per cent dividend to depositors. In order to obtain the dividend check it will be necessary to bring with you the Receiver's Certificate you hold so that the payment of dividend can be endorsed thereon. Respectfully, S. G. REYNOLDS, 26-4 Receiver.


Article from Forsyth Times-Journal, April 2, 1925

Click image to open full size in new tab

Article Text

NOTICE TO DEPOSITORS FIRST NATIONAL BANK The Receiver of the First National Bank of Forsyth is now ready to pay a fifteen per cent dividend to depos-


Article from Ingomar Independent, March 20, 1926

Click image to open full size in new tab

Article Text

BANKERS VISIT INGOMAR Major S. G. Reynolds, receiver of the First National Banks of Ingomar and Forsyth, R. D. Mountain, president of the American National Bank of Forsyth and A. D. Raymond, local field representative of the Merchants National Bank of Saint Paul, were here Friday from the county seat metropolis looking after business matters.


Article from Ingomar Independent, April 17, 1926

Click image to open full size in new tab

Article Text

edwards LETTER Guy Tibbetts and Al McLain were in Edwards Wednesday evening on their way home from Jordan. Mr. and Mrs. Ed Whipple of Anad, were shopping in Edwards Wednesday afternoon. Tom Anderson and Clinton Bunch were transacting business in Edwards Tuesday. John Adney was in the village for mall and ranch supplies Tuesday. Mr Adney intends to do some real farm ing this year. Vern Thomasson was a caller at the Guy L. Scott home Tuesday. John Gireth and C.E. Sanquist made a trip to Jordan Tuesday. Tom Anderson, well known sheep man of this community, was shopping in Edwards Saturday. Mrs. C. J. McCormick transacted business in Jordan Tuesday. H. B. Warner, well known well drill er of the Sand Springs country. is drilling a well for Vern Thomasson Hallie Birkrem of the Mitchell school, was.visiting at the D. C. Geib home Wednesday evening. Mr. and Mrs. W. H. Winney passed thru Edwards Saturday afternoon on their way to Jordan to attend the Fire man's dance. Bobby and Carlyle Martin of Brusett visited the latter part of the week at the Miley home. Legal Publications SUMMONS-FOR PUBLICATION In the District Court of the Fifteenth Judicial District of the State of Montana, in and for the County of Rosebud. The Federal Land Bank of Spokane, corporation, Plaintiff, versus P. L. a Robinson and Stella May Robinson, husband and wife; First National Bank of Forsyth, a corporation; S. G. Reynolds, as Receiver of the First National Bank of Forsyth ; Stellar Oil & Gas Company, a corporation; The State of Montana, a municipal corporation; Rosebud County, a municipal corporation; John McGraw, successor in office of G. G. Davis, as County Treasurer of Rosebud County The City of Forsyth, a municipal corporation: L. B. Paine, as City Treasurer of the City of Forsyth, Rosebud County National Farm Loan Association, a corporation. Defendants. The State of Montana sends Greeting to the above named Defendants: You are hereby summoned to answer the complaint in this action which is filed in the office of the Clerk of this court, and to file your answer and serve a copy thereof upon the plaintiff's attorney within twenty days after the service of this summons, exclusive of the day of service; and in case of your failure to appear or answer, judgment will be taken against you by default for the relief demanded in the complaint. The said action is brought to procure judgment against the defendants P. L. Robinson and Stella May Robinson and Rosebud County National Farm Loan Association, a corporation for the amount of four promissory note installments for the sum of $292.50 each, with 8 per cent per annum interest thereon from the following respective dates, May 17 and November 17, of the years 1924 and 1925 respectively, and for the principal sum of $8308.03, with 5½ per cent per annum interest from November 17, 1925, for moneys expended for abstract, $600.00 attorney fees and costs of suit, and for cancellation of stock in plaintiff's bank in the sum of $450.00, and the application of the proceeds thereof to satisfaction of plaintiff's decree and to foreclose a certain mortgage recorded in Book 24 of Mortgages at Pages 291-3 of the record of County Clerk and Recorder of Rosebud County, Montana, and covering the following described lands in the County of Rosebud, State of Montana, to-wit Lots one, two, three and four, the East Half of Southwest Quarter, the East Half of the Northwest Quarter, of Section Nineteen in Township Six North of Range Thirty-nine East of the Montana Principal Meridian, containing 307.36 acres, together with all water appurtenant to said land under the Yellowstone Irrigation District, together with all and singular the tenements, hereditaments and appurtenances thereunto belonging or in anywise appertaining as thereto, more fully appears from plaintiff's verified complaint on file herein, reference to which is hereby made. Witness my hand and the seal of said court this 2nd day of April, 1926. (Court Seal) D. T. Muri, Clerk. By Irene Harbicht, Deputy Clerk. J. J. McIntosh, Attorney for Plaintiff, Forsyth, Montana. 1st Pub. 4-3-26. filed in the office of the Clerk of this court, and to file your answer and serve a copy thereo upon the plaintiff's attorney within twenty days after the service of this summons, exclusive of the day of service and in case of your failure to appear or answer, judgment will be taken gainst you by default for the relief demanded in the complaint. The said action is brought to procure judgment against the defendants Celina D. Randall, formerl 'elina D. Vassau and Charles V. Vassau and Rosebud County National Farm Loan Association, a corporation for a promissory note installment of $146.25 with 8 per cent per annum interest, from May 17. 1925, and $146.25 with 8 per cent per annum interest from November 17, 1925, and for the principal amount due on a promissory note of $4089.11 with 5½ per cent per annum interest from November 17, 1925 $325.00 attorney fees, money expendo for abstract and interest, and costs suit, and for can cellation of stock in plaintiff's bank, in the suf of $225.00 and the application of the proceeds thereof to satisfaction of plaintiff's decree and to fore close a certain mortgage recorded in Book 22 of Mortguges at Pages 64-5 of the records of the County Clerk and Recorder of Rosebud County, Montana, and covering the following described lands in the County of Rosebud, State of Montana, to-wit The South Half of Southwest quarter, the Northwest quarter of Southwest quarter and Southwest quarter of Northwest quarter of Section Ten in Township Six North of Range Thirty eight East of M. P. M., containing according to the Government Survey 160 acres, together with all water and water rights used upon or appurtenant to said property and however evidenced, together with all and singular the tenements hereditaments as more fully appears from plaintiff's verified complaint on file herein, reference to which is hereby made. Witness my hand and the seal of said court this 2nd day of April, 1926. (Court Seal) D. J. Muri, Clerk. By Irene Harbicht, Deputy Clerk. J. J. McIntosh, Attorney for Plaintiff. Forsyth, Montana. 1st Pub. 4-3-26. SUMMONS-FOR PUBLICATION In the District Court of the Fifteenth Judicial District of the State of Montana, in and for the County of Rosebud. Mrs. Nancy Belle Mahany, Plaintiff, versus Raymond W. Todd and Ethel J. Todd, his wife, Emily I. Greear and Patrick H. Greear, her husband, and Petters and Company, a corporation, (Formerly Petters Investment Company) Defendants. The State of Montana sends Greeting to the above named Defendants You are hereby summoned to answer the complaint in this action which is filed in the office of the Clerk of this court, and to file your answer and serve a copy thereof upon the plaintiff's attorney within twenty days after the service of this summons, exclusive of the day of service: and in case of your failure to appear or answer, judg ment will be taken against you by default for the relief demanded in the complaint. The said action's brought to procure judgment for amount of a principal promissory note for $2200.00, with interest, and four extension Interest notes for $132.00 each, with interest, taxes paid, with interest, attorney fees and costs of suit, and foreclose that certain mortgage, dated December 26, 1916, executed by Raymond W. Todd and Ethel J. Todd, as Mortgagors, to Petters Investment Company, a corporation, (Now Petters & Company), as Mortgagee, and thereafter assigned to the Plaintiff herein, and which mortgage was recorded in Book 15 of Mortgages at page 3, of the records of the County Clerk and Recorder's Office of Rosebud County, Montana, and covering the following described lands situate in Rosebud County, State of Montana. to-wit All of Section Nine (9), in Township Nine (9) North of Range Forty (40) East, Montana Principal Meridian, containing 640 acres, more or less, according to the United States Survey thereof, together with all and singular the tenements. hereditaments, appurtenances, easements, water rights, water ditches and water easements, and all other rights now or hereafter belonging to or in anywise appertaining thereto; as more fully appears from Plaintiff's verified complaint on file herein, ref erence to which is hereby made. Witness my hand and the seal of said court this 2nd day of April, 1926. (Court Seal) D. J. Muri, Clerk. By Irene Harbicht, Deputy Clerk. J. J. McIntosh, Attorney for Plaintime, Forsyth, Montana. 1st Pub. 4-3-26. SUMMONS FOR PUBLICATION. In the District Court of the Fif teenth Judicial District of the State of Montana, in and for the County of Rosebud. George Holah, Pliantiff versus Ray mond W. Todd and Ethel J. Todd, his wife, Emily I. Greear and Patrick H Greear, her husband, and Petters and Company, a corporation, (formerly Petters Investment Company) DefendThe State of Montana sends Greet ings to the above named Defendants You are hereby summoned to answer the complaint in this action which is filed in the office of the Clerk of this court, and to file your answer and serve a copy thereof upon the plaintiff's at torney within twenty days after the service of this summons, exclusive of the day of service; and in case of your failure to appear or answer, judgment will be taken against you by defatilt for the relief demanded in the com plaint. The said action is brought to procure judgment for amount of a principal promissory note for $1500.00, with interest, and four extension interest notes for $90.00 each, with interest, and $79.57 and $31.12 taxes paid, with interest, attorney fees and costs of suit, and to foreclose that certain mortgage, dated December 26, 1916, executed by Raymond W. Todd and Ethel J. Todd, as Mortgagors, to Petters Investment Company, a corporatio, (Now Petters & Company), as mortgagee, and thereafter assigned to the plaintiff herein, and which mortgage was recorded in Book 14 of Mortgages at page 630, of the records of the County Clerk and Recorder's Office of Rosebud County, Montana, and covering the following described lands situate in Rosebud County, State of Montana, to-wit: The South half of Section Twentyseven (27) in Township Ten North (10N), of Range Forty East, (40E), Montana Principal MerIdian, containing 320 acres, more or less, according to the United States Survey thereof, together with all and singular the tenements, hereditaments, appurtenances, easements, water rights, water ditches and water easements, and all other rights now or hereafter belonging to or In anywise appertaining thereto, as more fully appears from plaintiff's verified complaint on file herein. reference to which is hereby made. Witness my hand and the seal of said court this 27th day of March, 1926. D. J. Muri, Clerk. (Court Seal) By Irene Harbicht, Deputy. J. J. McIntosh, Forsyth, Montana, Attorney for Plaintiff. 1st Pub. 3-27-26.


Article from Ingomar Independent, April 17, 1926

Click image to open full size in new tab

Article Text

SUMMONS FOR PUBLICATION. In the District Court of the Fifteenth Judicial District of the State of Montana, in and for the County of Rosebud. The Federal Land Bank of Spokane, a corporation, Plaintiff, versus Celina D. Randall, formerly Celina D. Vassau and Martin Randall, wife and husband Charles V. Vassau, also known as Charles V. Vassau, Sr., an unmarried man; J. P. McCuistion and Grace D. McCuistion, husband and wife; The First National Bank of Forsyth, a corporation; S. G. Reynolds, as Receiver of The First National Bank of Forsyth; The State of Montana, a municipal corporation; Rosebud County, a municipal corporation; John McGraw, as Successor in office of G. G. Davis, as County Treasurer of Rosebud County, The City of Forsyth, a municipal corporation L. B. Paine, as City Treasurer of the City of Forsyth, Rosebud County National Farm Loan Association, a corporation, Defendants. The State of Montana sends Greeting to the above named Defendants: You are hereby summoned to answer the complaint in this action which is


Article from Great Falls Tribune, April 15, 1928

Click image to open full size in new tab

Article Text

3 Bank Receivers Are Authorized to Compromise Debts Three petitions for compromise settlements between receivers of insolvent banks and debtors and a petition to sell the assets of another were authorized by Judge Charles N. Pray in the federal court Saturday. China R. Clarke, receiver of the First National bank of Fairview. was authorized to sell at auction the assets of the insolvent bank. consisting of bills. promissory notes, overdrafts. warrants and real estate, for not less than $7,000. subject to the approval of court. R. Miller, receiver of the First National bank of Moore, was authorized to accept $1,000 and certain realty from J. H. Morrow to compromise a debt of $11,803.31 The court empowered John A. Sanderson, receiver of the First National bank of Forsyth to accept 8600 in compromise settlement the First Presbyterian church of Forsyth and to deliver its notes of indebtedness. Sanderson. as receiver for the Commercial National bank of Miles City, was also authorized to accept in full settlement $900 from Roy Gibbs of Van Norman on an indebtedness of approximately $10,000. Earl V. Cline of Billings was appointed United States for the district of Montana and James M. Kerr of Los Angeles was admitted to practice as an attorney in the federal court.


Article Text

Appoint Bank Receiver. Columbus.-J. H. Gentry, national bank examiner, completing his investigation, turned the First National bank of Columbus over to J. A. Robinson, appointed receiver by the treasury department. Robinson had previously been receiver for the Commercial National bank of Miles City and the First National bank of Forsyth and previous to that carried on similar duties in Great Falls and Fort Benton. Heavy Snowfall on Rock Creek. Anaconda.-Martin Johnson, whose mountain home is on Moose lake, recently returned from a snowshoe trip around Moose lake and reports eight to ten inches of snow, while four miles above the summit on the main range and extending down to the foot of the range the snow measured four feet in depth.