Bank of Oran (Oran, MO)

Article Text

$7,000,000 BANK AT SPRINGFIELD CLOSED Holland Banking Company in Hands of State Finance Department. IS STATE DEPOSITARY Decision to Close Bank Made by its Directors Today. By The Associated Press. JEFFERSON CITY, Mo., Jan. 15.—The largest bank closed in Missouri in years—The Holland Banking Company, Springfield, with total resources of approximately $7,008,510—was closed today by action of the board of directors, it was announced by the state finance department. The institution had capital stock of $300,000; surplus of $100,000; and liabilities and bills payable of approximately $600,000, according to the last statement filed with the finance department September 25, 1923. The bank was a state depository and had a total of $1,035,656.39 in state funds, according to L. D. Thompson, state treasurer. The state holds as security for the funds it has in the institution bonds and collateral of $1,126,490 and a personal bond of $1,025,000, treasurer Thompson said. Thus, he said, the state holds $90,833.61 in excess of collateral above the total state deposit in the bank besides the personal bond of $1,025,000. C. E. Bushnell, state bank examiner, is in charge of the bank, according to officials at the finance department. Frank Millspaugh, state finance commissioner, is in Kansas City today, but it was said that he would no doubt leave immediately for Springfield to personally take charge of the institution. E. L. Sanford was president of the bank and J. F. Wright cashier, according to the last statement filed with the department in September, 1923. No other details other than that the bank was closed by the board of directors has been received at the finance department from Examiner Bushnell. This is the second bank in Springfield that has been closed within the last few months. On November 17, 1923, the American Savings Bank, with total resources of approximately $1,700,000 was closed, records of the finance department show. Investigation of record at the finance department by the officials disclosed the fact that this is the largest bank that has been closed in the history of Missouri. Besides Examiner Bushnell, two other state bank examiners are being rushed to Springfield, it was said. Louis A. Miller and Fred W. Heyde, Jr., both working in Kansas City, have been ordered to go to Springfield at once. It was stated that Miller would probably be placed in charge of the institution. Besides being the largest bank ever closed in Missouri, according to finance department officials, this is the second bank that has been closed in the state since the first of the year. The first bank closed in 1924 was the Bank of Oran at Oran, Scott county with total resources of $264,689, closed January 12 by the board of directors. Threatened Run Caused Bank to Close By The Associated Press. SPRINGFIELD, Mo., Jan. 15.—E. N. Ferguson, chairman of the board of directors of the Holland Banking Company, and E. L. Sanford, president, made the following statement in regard to the closing of the bank today by State Bank Examiner C. H. Bushnell, who was in the city in regard to the reorganization of the American Savings Bank, Springfield, which was closed last November. The statement follows: E. N. Ferguson and E. L. Sanford of the Holland Banking Company, when asked about the closing of the Holland bank, said that about 10 days ago false statements were put into circulation by some unknown person that a run was being made on the Holland bank. "Late yesterday afternoon this report had extended to the country banks in the surrounding towns. These country banks, having deposits with the Holland bank, and some of the larger city depositors, becoming alarmed over the rumors, the board of directors of the Holland bank, in order to see that all of the depositors be protected alike, deemed it advisable to place the bank in charge of the state commissioner of finance. "As soon as it is possible to do so Mr. Ferguson and Mr. Sanford said that, with the co-operation of the depositors and citizens, they will do everything in their power to perfect reorganization of the bank."