Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-03
.|OWANS RECOVER
HALF FROM BANKS
Depositors May Receive More
From 245 State InStitu-
tons to Be Closed.

Special Dispatch to The star.
DES MONIES. Iowa, November g.
Iowans have recovered approximately
S34 900 .OOO-more than half their
money-of the S64. 375 900 they had on
deposit in the 245 State superviSed
banks which have gone into receiver
ship in the last seven years. Bankers
have paid at least an equal sum into
their own institutions to stabilize
them.
OF the s34,OOO.0O0 returned to de-
positors 500 600. 900 had been paid to
July is in cash by L. A. Andrew, State
superintendent of banking, who is re-
ceiver for all the banks. The other
Sc, 900 900 is the amount estimated to
have been restored in the form of set
offs.
Explanation Of Set-Offs.
Set-offs are transactions in which
depositor who owed a closed bank
money and also had a deposit balance
was allowed. with court approval, to
accredit his deposit on his note.
These returns to depoSitors amount
to recovery Of approximately So per
cent of the deposits involved in State
bank closingS in Iowa since 1922. They
do not take into account any OF the
compromise settlements or the approx
mately $l5,000,0OO deposits in banks
which reorganized or reopened after
closing, without loss to depositors.
Between March 20, 1923, and July
IS. 1929, 29S State banks closed their
doors. OF these eight were reopened
and AZ were reorganized. leaving 24S
to go through receivership. The State
banking department has liQuidated &c
of these banks and still has 152 In
process of liquidation.
Sees so Per Cent Recovery.
Mr.. Andrew estimates that the final
liquidation of the assets of the 149
banks still in receivership will swell the
average percentage Of recovery from
the present So per cent to between
so per cent and IS per cent.
Not all depositorS have received SO
per cent of their money, Of course
Some have received very little. Others
have received 100 per cent of their
deposits, with interest, and there are
a few instances in which not only
depositors have received their money
and interest, but stockholders have re-
covered part of their 100 per cent
assessment.
The records Of the liquidation OF
Iowa State banks disclose that many
of them closed to conserve their as
sets for all depositors in preference to
paying in full only those who started
runs on them.
20 Pay 10 Per Cent.
There are a dozen instances in which
bank receiverships actually paid loO
per cent on their deposits. In some
of them interest was paid on the de-
posits and there are some cases In
which part Of the stockholders in
veStment was recovered. There are
more than 20 other banks which have
maid 70 per cent or more and some
banks still in liquidation Will DO as
well. ~,
Between 1918 and July Is, 1873, All
banks closed their doors in Iowa
Seventy-six OF these banks reopened
reorpanized and consolidated or voiun'
tariiv liouidated, leaving 4O5 to &C
through receivership.
OF the banks closed, 322 we're State
hanks. 81 were national banks and %
were private banks. The what CneeI
Farmers Union Cooperative Bank, the
first cooperative bank, also closed on
January 20, 1929.
Twelve state banks and four ma
tional banks reopened; a. State banks
and four national banks reorganlzeo
Ave national banks and one prNate
bank merged with other banks ano
two national banks and six private
banks voluntarily liquidated.