THE E ARLY TWENTIETH CENTURY:
1900 TO 1940
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Utah board of directors on Christmas night 1931. When he returned, his four sons saw that he was not the happy man they expected. ''As he came into the living room he reached into his pocket and took out the change he had there-73 [cents]. Holding it out for all to see, he remarked, 'There, that is what I have to show for a life of toil.' "31 Many banks suspended operations, not because they were insolvent but because they did not have enough legal reserves, which was cash equal to fifteen percent of demand deposits and five percent of savings and time deposits. 32 Such was the case with the Bank of Southern Utah in Cedar City and Bank of Iron County in Parowan. Financial statements through the fall of 1931 showed the Bank of Southern Utah to be among the strongest in the state. In October 1931 it had a surplus of assets over liabilities, and local citizens believed the bank was sound. In 1931, to help hard-pressed taxpayers, Iron County postponed the tax payment due date from 30 November to 20 December. While providing relief to taxpayers, it was a crushing blow to the Bank of Southern Utah, delaying expected deposits. Directors left their own tax money on deposit and liquidated other assets to add cash to the bank. Despite these efforts, they concluded that the legal reserves could not be quickly replenished. The board of directors had no choice except to close the bank as of 24 December 1931. 33 In order to protect its depositors and prevent a run, Parowan's Bank of Iron County likewise decided to close for business on Monday, 28 December. It was taken over by the state bank commissioner. Depositors received full compensation in 1940, and some years later another bank was chartered as the Bank of Iron County.34 Iron County citizens reacted to the failures with shock and disbelief. New Year's Eve festivities were canceled and a funeral-like pall descended on the communities. Uncertainty faced residents as it appeared all schools would be closed because district money was tied up in the banks. Drastic measures were taken. The school board asked teachers to donate two weeks of service, and county taxpayers were asked to underwrite a $40,000 bond to keep schools open. Teachers and taxpayers approved the measures and schools opened as usual the Monday after New Year's Day.35 The state bank commissioner took over the affairs of the Bank of
