About Farmers State Bank
In June of 1915, a small group of Stroh area citizens met to organize a bank for a very new settlement in the southeast part of LaGrange County.
This fledgling financial institution called itself Farmers State Bank. When it opened its doors in November of 1915, it boasted 40 stockholders and at the end of the first days business, resources of over $35,000. At the end of 90 days, those resources had more than doubled, totaling just over $72,000.
Over the next 13 years, the banks resources grew steadily, and in 1928, totaling over a quarter of a million dollars.
In October of 1929, the roaring stock market that had lent its name to the 1920s abruptly collapsed, posting paper losses of 14 billion dollars on the first day alone.
The economic depression that ensued was a difficult and tragic time for nearly everyone, especially the nations bankers and their hard-working depositors. Bank failures were common throughout the nation, and by March of 1933, the crises had become so acute that President Franklin D. Roosevelts very first official act as President was to close every bank in the nation for evaluation and classification. This was referred to as the National Bank Holiday or Bank Moratorium.