Farmers & Merchants Bank (Plains, MT)

Episode Information

Episode UID
93013371489
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
9301337 routing
Routing Number
93-0133
Start Date
January 26, 1924
Location
Plains, Montana (47.460, -114.883)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
a2521c94cb968a61

Response Measures

None

Description

Closure was triggered by the failure/closing of the American Bank & Trust of Missoula with which the Plains bank was thought affiliated.

Events (4)
1. January 26, 1924 Run
Cause
Local Banks
Cause Details
A run developed after the American Bank and Trust company of Missoula closed, and the Plains bank was thought to be affiliated.
Measures
Directors closed the bank's doors to forestall further withdrawals.
Newspaper Excerpt
The Farmers and Merchants State Bank of Plains closed its doors last Saturday morning to forestall a run on the bank's funds which developed as a result of the closing of the American Bank and Trust company of Missoula
Source
newspapers
2. January 26, 1924 Suspension
Cause
Correspondent
Cause Details
Suspended operations because its cash reserve was largely tied up with the American Bank and Trust company after that bank's closing.
Newspaper Excerpt
The Farmers and Merchants State Bank of Plains closed its doors ... to forestall a run on the bank's funds ... All of the banks that closed Saturday ... are state institutions.
Source
newspapers
3. January 31, 1924 Other
Newspaper Excerpt
Sanders county ... has filed suit against the Thompson State Bank of Thompson Falls, the Farmers and Merchants State bank of Plains ... These suits are filed for the recovery of county funds deposited in these banks, all of which are at present closed.
Source
newspapers
4. April 23, 1924 Receivership
Newspaper Excerpt
C. S. Robison, receiver of the Farmers & Merchants' State bank, was authorized on April 23 by Judge James M. Self to make an immediate payment to all depositors and creditors of the bank of 20 per cent of their claims.
Source
newspapers

Newspaper Articles (6)
1. January 31, 1924 Plainsman Plains, MT
Article from Plainsman, January 31, 1924

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Article Text

FARMERS & MERCHANTS BANK CLOSES DOORS The Farmers and Merchants State Bank of Plains closed its doors last Saturday morning to forestall a run on the bank's funds which developed as a result of the closing of the American Bank and Trust company of Missoula with which the local bank was thought to be affiliated. The cashier had paid out less than $300, when it was seen that the run could not be stopped, and in order to protect the depositors and creditors of the institution it was decided by the directors to close. A thorough examination is now being made by a representative of the state bank examiner and the officers and directors of the institution have high hopes of re-opening. That will not be known for several days. The closing of three banks in Sanders county is a hard blow to the people of this county, but by all working together in a spirit of cooperation we hope the situation can be cleared up. A proof of the confidence reposed in the First National bank of Plains by the people of this community was shown by the fact that following the closing of its neighbor the deposits in the First National next day far exceeded the withdrawals and new accounts are being opened every day.

2. January 31, 1924 Plainsman Plains, MT
Article from Plainsman, January 31, 1924

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Article Text

SANDERS COUNTY STARTS ACTION Sanders county, through its treasurer, Miss Gladys Brown, has filed suit against the Thompson State Bank of Thompson Falls, the Farmers and Merchants State bank of Plains and the Farmers and Merchants State bank of Dixon. The state bank examiner is also made a defendant in each case. These suits are filed for the recovery of county funds deposited in these banks, all of which are at present closed. The amount of county funds in each bank is as follows: Thompson State bank $57,118.50; Farmers and Merchants State bank of Plains $53,720.35; Farmers and Merchants State bank of Dixon $33,000. All the banks are bonded, the Thompson bank for $47,000 and the Plains and Dixon banks for $50,000 and $30,000, respectively. Attachments have been filed on all the bondsmen's bank accounts, real estate and personal property that could be found. refreshments were served. A splendid time was reported by all who attended.

3. February 1, 1924 The Producers News Plentywood, MT
Article from The Producers News, February 1, 1924

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Article Text

THREE MORE BANKS CLOSE IN MONTANA OTHER WESTERN MONTANA INSTITUTIONS REPORTED IN STATE OF SUSPENDED ANIMATION. Missoula, Jan. 30.-Several other banks in western Montana were closed Saturday fallowing the closing Friday of the American Bank and Trust company here. The institutions affected were the Farmers' and Merchants' bank at -Plaine, the Thompson State Bank at Thompson Falls and the First National Bank at Ronan. John Dahlgren. president of the bank that closed here, is president also of two of the banks that failed to open their doors Saturday. Mr. Dahlgren says, however, that there is no connection between the smaller banks and the American Bank and Trust company. All of the banks that closed Saturday, excepting two, are state institutions.

4. April 28, 1924 The Daily Missoulian Missoula, MT
Article from The Daily Missoulian, April 28, 1924

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Article Text

PAYMENT TO DEPOSITORS OF PLAINS BANK ORDERED Receiver Making Good Progress With His Work. Plains, April 27.—C. S. Robison, receiver of the Farmers & Merchants' State bank, was authorized on April 23 by Judge James M. Self to make an immediate payment to all depositors and creditors of the bank of 20 per cent of their claims. This is good news not only to the depositors, but everyone in the community. The bank was forced to suspend when the American Bank and Trust company closed in Missoula, owing to the fact that its cash reserve was to a large extent tied up in the Missoula bank. However, the fact that the bank can make a cash payment to its depositors of 20 per cent of their claims within a period of 30 days of the appointment of the receiver speaks well for the soundness of general conditions in Sanders county, it is claimed. Liquidation of the bank is progressing in a very satisfactory manner and it is expected that its affairs will be closed up in a reasonable length of time without loss to the depositors. The dairy industry is to a large extent responsible for the fact that the farmers in Sanders county have not suffered as severely from the general depression as those of other sections of the northwest. Through the activities of the Plains Guernsey Breeders' association several carloads of good grade and purebred dairy cattle have been brought into the Plains and Little Bitter Root valleys in the last two years. Thousands of acres of wheat land have been sowed to alfalfa and tremendous crops of feed are being raised. The activity of the lumber industry is also a large factor in the general situation. With a fair price for butterfat, cattle, sheep, hogs and poultry products, Sanders county will lead the procession among the counties of the state that have returned to a normal condition in an agricultural way.

5. June 24, 1926 Plainsman Plains, MT
Article from Plainsman, June 24, 1926

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Article Text

In the District the Fourth Judicial District of the State of Montana, in and for the County of Sanders. Farmers and Merchants State Bank of Plains, Mont., corporation by C.S. Robison, receiver Plaintiff. Ray Schulstad. his wife, and Margaret Schulstad, Defendants. To be sold at sheriff's sale on the 2nd day of July, the at hour of o'clock of said day at the front door of the court house in the town of Thompson Falls, Sanders County, Montana, the lowing described land and premises, to-wit: The Southwest Quarter of the Northwest Quarter Section (13), Township Eighteen Range three (23) West, Montana Meridian, in Sanders County, Montana. Dated at Thompson Falls, Sanders County, Montana, this 5th day of 1926. Hartman, Sheriff. By George Collinsworth, sheriff.

6. June 10, 1927 The Daily Missoulian Missoula, MT
Article from The Daily Missoulian, June 10, 1927

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Article Text

RIGHT OF SURETY TO PROTECT SELF BEFORE COURT Sanders County Bank Receiver Appeals From District Tribunal. Helena. June bank director who goes security in behalf of his bank for county deposits may in turn protect himself with collateral from the bank. is question to be determined by the Montana supreme court. The district court for Sanders county says the proceeding is regular. S. Ainsworth, as receiver of the defunct Farmers and Merchants State bank of Plains, sued John R. Kruger, former director, to recover certain securities and clear the bank's title to the proceeds of others. Kruger went on the bank's bond to the county in 1922 for $20,000 but, before doing so, demanded that the bank give him security for his own protection. This was authorized by the board. In 1923 he again demanded security for acting as surety and retained the collateral issued to him the year previous. Afterward, the bank failed and the district court has held him liable on his surety. He claims reimbursement from the collateral issued from the bank and the former receiver sold or collected part of the amount and placed it to Kruger's credit. The present receiver. Ainsworth, declares Kruger "unlawfully and fradulently' took possession without paying any consideration for the property. He sought to recover and, losing in the district court, appealed to the supreme court.