The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1911-05-12
STATE BANK sUsPENDS
DEPOSITORS WILL BE PAID
IN FULL
May Reopen in Near Future-Statt
Bank Examiner in Charge

the Blackfoot State Bank held OF
Monday evening it was decided tt
suspend business and accordingly it,
doors were not opened on Tuesda!
morning This action is said to have
been taken largely upon the advice
of a representative of the American
Bankers Assurance company, who
are sureties for depositors to the ex
tent of $20O,0OO.0O. 1t is a grave
question whether this was the best
thing for anybody concerned, but the
officers of the bank were anxious tG
protect the interests of their patrons
and there is a growing conviction that
they were taken advantage of and
induced to take and ill-advised step
State Bank Examiner v. w. Platt
upon learning what had been done
referred TO his records and expressed
the belief that if the bank were in as
good condition as 1t was at the date
of their last published statement 1t
should not have been closed. He
came directly to Blackfoot and began
an investigation of the banks condi-
ton, and is still at work on the
books.
He says that while he has not yet
covered the full scope of their busi-
ness, he feels sure that the business
can be Strengthened out SO that de-
positors shall receive every dollar.
and that he still hopes 1t may open
again for business within week or
two He will make every effort to
have the business stand upon it's own
resources and pay out independent
of the bonding company that stands
as security for depositors.
Besides about $20,0O0.0O cash in
the vaults there are assets in the way
of notes and other negotiable paper
amounting to double the deposits.
The deposits amount to about $780,
900 dollars, and the total liabilities
are thought to be about $4,000.
There are objections to letting the
bonding company take charge and pay
the depositors because they are not
required to take the initiative them
selves and pay the claims, but it is
left for each depositor to present
proof of his claim and assign it to
the assurance company within ninety
days, and they can then take another
ninety days to satisfy themselves that
such claims are valid. In the mean
time they can have charge Of the as
sets and press for collection all OBJ
legations due the bank, thus squeez-
ing money out of oneclass of the
banks customers while they hold the
purse of the other half and keep them
powerless, the stockholders looking
on with no rights to save themselves
from being filched.
From the first there has been a
strong demand for the bank to re-
sumo If possible, and many citizens
have given assurance that they would
stand by it as generously as possible
and not withdraw deposits except to
meet the necessities of their business
transactions. Had it been generally
known just what condition the bank
was in, there would of course have
been some who would have withheld
their business or withdrawn their de-
posits, but there would also have been
many who would have increased their
deposits if possible and stood by it
Loyalty to save it from its present pre-
dicament, fo~ a bank failure hurts
community no matter how mild the
failure, ann Indirectly 1t Injuries
heavily the peol.e who never do a
dollars worth of business through a
bank. The class who have no money