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(Originally published in the
2003 Svensk Hyllningsfest program booklet.)
Ebba Fornberg
She Accomplished What Many Men Couldn't;
She Saved a Bank During the Great Depression!
Note: The Farmers State Bank referred to in this article became the Lindsborg branch of Bank of America and should not be confused with any other institution of the same name.
By Chris Abercrombie
It was late on the cold afternoon of Monday, December 15, 1930. The buildings at the corner of Lincoln and Main cast foreboding shadows over the intersection. There was an eerie silence in town. The Great Depression was gripping the nation and was now taking its toll in Lindsborg.
In the warm comfort of her office Ebba Fornberg, cashier and acting president of the Farmers State Bank, was finishing up the day's business.
Suddenly the quiet of the day was shattered. It was the news Ebba and the bank's board of directors had dreaded but had planned for; The Commercial State Bank, directly across the street, had locked its doors and would not reopen the next morning.
This was the second of three Lindsborg banks to fail within two months. The First National Bank had been closed since the end of October. Ebba knew there would be a run on the Farmers State Bank the next morning.
After alerting the bank's staff they would be working well into the early morning hours, Ebba drove to McPherson. Away from the ears and eyes of locals who would be watching her every move Ebba asked for and received all the available cash a friendly McPherson bank could spare and arranged for additional cash to be sent at once, no doubt by overnight train, from a large Kansas City bank.
The bank's board members and officers offered up their own personal funds to make sure each and every depositor was paid. Before sun-up customers started lining up outside the Farmers State Bank, jockeying for position to be one of the first to withdraw their funds before, they assumed, the bank ran out of money.
Inside the board of directors, even gravely ill bank president Louis Nordberg, came in to help and observe. Once the doors swung open at 9 a.m. the bank's staff began working feverishly paying off each depositor in full and in cash.
Word spread rapidly through the close-knit town. Then around 2 p.m. the tide turned. Staff members found themselves working even more frantically helping customers redeposit their money. At the bank's 3 p.m. closing there was actually $1,800 more on deposit than there had been at the beginning of the business day. Customers even continued to call through rest of the afternoon pleading to make deposits after hours.
Thanks to the foresight and pure tenacity of Ebba Fornberg the Farmers State Bank survived and even prospered in the 1930's and continued to do so through subsequent decades.
The bank was dissolved as an independent bank and sold to out-of-town banking interests in the early 1990's. Today what was the Farmers State Bank, which had faithfully served the community since 1886, is a branch of Bank of America, one of the largest financial institutions in the country.
Ebba Fornberg was elected president of the Farmers State Bank upon the death of Louis Nordberg in 1931. She held that position until her death in 1950. Ebba had served the institution, its depositors and the community for 35 years.
Depositors of the First National Bank were ultimately paid in full, although it took until 1948 to do so. Those with their money deposited in the Commercial State Bank weren't as fortunate. They received 40 cents on the dollar by the time the final payment was made two years after the bank closed.
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