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First State Bank Issues Statement To Depositors---Will Re-organize To the Depositors of the First State Bank of Winnett The Directors of the First State Bank of Winnett have decided to close its doors. The failure of the First National Bank of Lewistown, and the attendant lack of confidence was the cause of this action. While a large number of our customers have stood loyally by us, there has been a steady withdrawal of funds, which has depleted our cash reserve to a point where closing is deemed advisable. No one realizes better than we, the unhappiness and actual suffering which follows a bank closure. Our decision was arrived at only after careful deliberation. Closing at this time, however, will place the bank in such a position that it may be much more easily opened later. Both banks have just been examined with the present merger in view, all requirements made by the Supt. of Banks at Helena have been met and all losses taken care of. Bearing out this statement we quote the following wire: "Helena, Mont., Dec. 12th, 1923. First State Bank, Winnett, Mont. Consolidation approved Having now complied with the requirements of the Department it would seem that you should have a good clean bank and with the support of the community should prosper. L. Q. Skelton, Supt. of Banks." Nevertheless the withdrawal has continued steadily both from the window and through the mails. With the support of our loyal friends we believe that sufficient amount of our deposits can be pledged to remain until normal conditions are restored and that if this can be done the Board of Directors are satisfied that sufficient additional capital can be raised to reopen within short time. Signed: Board of Directors of the First State Bank of Winnett. James Wilson, T. E. Hegna, Geo. A. Davis, A. L. Rasmussen, Elmer Eager, H. B. Greene. By Carl A. Kelley, Secretary. The above statement, by the Board of Directors of the First State Bank, gives a condensed reason for the closing of this bank this morning. Every effort was made by the officers to stop the run on the bank that commenced immediately after the failure of the First National at Lewistown. However, lack of confidence on the part of the public held sway and the run continued until the bank directors concluded that to protect their friendly depositors who were leaving their money in the bank and adding to their deposits daily, it would be necessary to close the bank and re-organize. Loads of Good Paper The merged bank has a large amount of good paper that can and will be realized upon in a short while. However, it was impossible to liquidate this collateral on such short notice. Plans are now well under way to re-organize and with the good will and assistance of the depositors it will be but a short time until the bank is re-opened without the loss of a cent to a depositor Bank Official Optimistic The officials of the bank were optimistic about the situation. They have nothing to hide from the public and know full well that with the closing of the bank and the stopping of the run they took action that will be for the best of all concerned. The bank is in splendid shape for re-organization. Will Issue Statements From time to time the officers and directors of the bank will issue statements to the public as to the progress of the re-organization. Trying Times These are trying times in the world of finance and the public must realize this situation and do all in their power to back financial institutions and lend all encouragement possible to the officers and directors of banks in existance or re-organizing. If confidence can be restored in the public, not a bank in the country would go under but no bank can stand a continuous run when it is so difficult to realize on gilt paper.
