11180. Bank of Winona (Winona, MS)

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: state
Start Date: January 4, 1931
Location: Winona, Mississippi (33.482, -89.728)

Metadata

Model: gpt-5-mini
Short Digest: 7547b203

Response Measures

Partial suspension, Books examined

Other: Frozen-deposit reopening plan with staged payments (10/20/30/40 or similar schedule).

Description

Multiple Winona Times articles (Jan 4, 1931) report a multi-day run that led the Bank of Winona to place a notice on its door and turn the institution over to the State Banking Department. State officials audited and a freezing/reopening plan (partial withdrawal schedule) was adopted; newspapers report the bank reopened in early February 1931. OCR typos corrected (e.g., Superintendent J. S. Love).

Events (3)

1. January 4, 1931 Run

Cause: Rumor Or Misinformation
Cause Details: Depositors became panicky and made heavy withdrawals over several days during the wider Depression panic; articles attribute closing to a run and 'hysteria' rather than specific solvency problems.
Measures: Bankors placed notice on door that bank closed for protection of depositors; affairs turned over to State Banking Department for audit; later adopted a 'freezing' plan (staggered payments) to reopen.
Newspaper Excerpt: A steady run has been made on the Bank of Winona for the past few days.
Source: newspapers

2. January 4, 1931 Suspension

Cause: Government Action
Cause Details: Bank closed and placed in hands of State Banking Department for protection of depositors and to conserve assets after the run; state audit began.
Newspaper Excerpt: By order of the Board of Directors this Bank is temporarily closed ... and is now in the hands of the State Banking Department.
Source: newspapers

3. February 4, 1931 Reopening

Newspaper Excerpt: AP item: The Bank of Winona ... have reopened. and local reports describe 'freezing' plan and meetings resulting in re-opening under staged payouts (10% opening, etc.).
Source: newspapers

Newspaper Articles (9)

1. January 4, 1931 The Winona Times Winona, MS

Article from The Winona Times, January 4, 1931

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Bank of Winona Closed Monday Morning "FOR THE PROTECTION OF ITS DEPOSITORS" SAYS NOTICE ON DOOR Monday morning the Bank of Winona placed notice on its doors that the Bank closed to protect its best interests. A steady run has been made on the Bank of Winona for the past few days. Our information is that the Bank's affairs are in first class shape but there is no bank in the world that has hundreds of thousands of dollars on deposit that can pay off their depositors if all or a good percent of them demand their money in a few days without notice. This is what happened to the Bank of Winona, the Citizens Bank and the Bank of Kilmichael. Now that the worst has "happened the thing to do is for each one interested to keep his head and to co-operate in every way possible to re-open these banks. Montgomery County needs every bank it has in it. It is going to take a little time to adjust matters and by co-operation the banks can work out some satisfactory results from the present condition and pay all depositors. We feel confident that as soon as the State Banking Department makes an audit that arrangements can be made to re-open the Bank of Winona, with the co-operation of the depositors. The following is the statement of the Bank officials: By order of the Board of Directors this Bank is temporarily closed for the protection of its depositors and to bettre conserve its assets and is now in the hands of the State Banking Department. BANK OF WINONA, By HENRY HART, President. By W. S. WEBSTER, Cashier.

2. January 4, 1931 The Winona Times Winona, MS

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The Banking Business. (By Walker Wood) No one would expect a bank to keep in its safe every dollar that is placed on deposit, or placed in saving account. The bank loans this money on homes, farms, to individuals on personal endorsement, and buys bonds and other safe securities. This is how a bank makes its money and pays its depositors interest on time deposits. The loans, bonds and other securities held by the Citizens Bank are just as good today, and just as much will be realized out of them, as there could have been realized a year ago. What causes a solvent bank to close is for its depositors to become panicy and a good per cent of them demand of the bank to pay them without notice. Under the present world-wide depression a bank or individual cannot step out into money centers and borrow money regardless of what kind of security you have. This condition is known as "frozen assets.' If the patrons of a bank make anything like a general run they can close any banl, in the United States. do not own stock bank in Montgomery Coun- ty. The Winona Times was a depositor of the Citizens Bank. I am a depositor of the Bank of Winona. make this statement so the people can see that the Winona Times has no ulterior purpose behind any statement. am not worried about the deposits the Times or have in any bank in Montgomery County. No body has stolen any thing. All banks in the county are solvent. From the reports have on the Banks of this county from the State Banking Department is that each one of them is solvent and no depositor should lose a dollar. Since writing the above the Bank of Winona has placed the bank in the hands of the State Banking Department. This leaves the city without an operating bank. Just as soon as possible the officials of the Banks should have the Banking Department to call every one interested together and see if we cannot make some arrangement to open the Banks in Winona. This can be done if the people will do their part.

3. January 4, 1931 The Winona Times Winona, MS

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FACTS ABOUT OUR BANKS IN MONTGOMERY COUNTY THIS MORNING (By Walker Wood) To The People of Montgomery County: have been in Winona since Friday afternoon, and intend to stay here until things become normal. The Times reaches you again today as an extra edition. This publication is made to give the people the facts about conditions in this county. We, with the people of the state, nation and universe are going through a business crisis that is the most far-reaching in the history of the country. The people that will pull through, and the community that will suffer less, will be those who keep their heads and go on with their business affairs in their usual way. The situation is about the banks of the county this morning as follows: The Bank of Kilmichael can re-open if the depositors will co-operate with State Superintendent of Banks, Love. The affairs of this Bank are in good shape, and there was no reason for it to close except some of the patrons of the Bank lost their heads and made an unwarranted run on the bank. The Citizens Bank, of Winona, could have gone through the present business crisis if each patron had stood behind the Bank. The Bank's affairs are in good condition and there was no reason for it to close except to protect its depositors and the Bank's interests. Its affairs will be liquidated and the officers of the Bank have given out a statement that the depositors and creditors will be paid dollar for dollar. The Banking Department, of Jackson, reports to us that the Banks in Duck Hill and Stewart are in good condition, and there is no reason why the people should not have the same confidence in these institutions that they have had in the past. The Bank of Winona closed its doors this morning after a run on the bank of a few days. The Banking Department of the State has the institution in their hands and an audit has begun. Here is what J. S. Love, Superintendent of Banks, said about the Bank of Winona Saturday night: Walker Wood, Winona, Miss. "The Bank of Winona is one of the oldest and strongest bank in North Central Mississippi. There is no reason why the patrons, or people, should not hold the greatest confidence in this bank at this time as they have held in the past." J. LOVE, Supt. State Banks.

4. January 9, 1931 The Winona Times Winona, MS

Article from The Winona Times, January 9, 1931

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IMMEDIATELY Business Engagement Keeps Him At Capitol. Bank of Winona Officials Go To Jackson. State Superintendent of Banks Live cannot reach Winona today on account of business engagements in Jackson. Officers of the Bank of Winona will Jackson and hold conference with Mr. Love when plans will be discussed to re-open the bank. The course decided upon will then be brought back to the depositors, stockholders and citizens public meeting. It will take few days to work out the plan to be followed but just soon as can be perfected meeting will be called.

5. January 9, 1931 The Winona Times Winona, MS

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FACTS ABOUT OUR BANKS IN MONTGOMERY COUNTY THIS MORNING (From Saturday's Extra) (By Walker Wood) To The People of Montgomery County: have been in Winona since Friday afternoon, an intend to stay here until things become normal. The Times reaches you again today as an extr edition. This publication is made to give the peopl the facts about conditions in this county. We, with the people of the state, nation and un verse are going through a business crisis that is th most far-reaching in the history of the country. The people that will pull through, and the con munity that will suffer less, will be those who kee their heads and go on with their business affairs in the usual way. The situation about the banks of the county th morning is as follows: The Bank of Kilmichael can re-open if the depos tors will co-operate with State Superintendent of Bank J. S. Love. The affairs of this Bank are in good shap and there was no reason for it to close except som of the patrons of the Bank lost their heads and mad an unwarranted run on the bank. The Citizens Bank, of Winona, could have gon through the present business crisis if each patron ha stood behind the Bank. The Bank's affairs in goo condition and there was no reason for it to close excep to protect its depositors and the Bank's interests. It affairs will be liquidated and the officers of the Ban have given out a statement that the depositors an creditors will be paid dollar for dollar. The Banking Department, of Jackson, reports to that the Banks in Duck Hill and Stewart are in goo condition, and there is no reason why the people shoul not have the same confidence in these institutions tha they have had in the past. The Bank of Winona closed its doors this mornin after a run on the bank of a few days. The Bankin Department of the State has the institution in thei hands and an audit has begun. Here is what J. S. Love, Superintendent of Banks said about the Bank of Winona Saturday night: Walker Wood, Winona, Miss. "The Bank of Winona is one of the oldest and strongest bank in North Central Mississippi. There is no reason why the patrons, or people, should not hold the greatest confidence in this bank at this time as they have held in the past." J. S. LOVE, Supt. State Banks.

6. January 23, 1931 The Winona Times Winona, MS

Article from The Winona Times, January 23, 1931

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MEETINGS HELD WINONA AND KILMICHAEL OUTLINED PLANS TO THOSE PRESEN 10% To Be Paid Opening; 20% in On Year; 30% in Two Years; and 40% Three Years. Will Pay Interest Banks Earn Same. Wednesday was happy day in Kilmichael and Winona. The never shone brighter, and its rays played great part bringing among people who had great problem to solve. problem that affected all citizens either directindirectly. The great question affecting people was to devise and means to re-open the banks Winona and Kilmichael. The need of banking institutions never more. The cities Winona and Kilmichael doing wihtout banking facilities was new experihave been wobbling since four of our banks closed like affected with hard case Jakeitis. The people want to re-open the banks. They showed this by their and by their presence pledges. mass meeting of the deposithe closed Bank of tors held in the Dixie nona was Theatre here afterwith practically 750 people noon, Following the invocation present. the Rev. Boston, and led by the hymn, prayer Rev. McCorkle, Supt. of the state banking deLove took charge the partment He called on meeting. Thomas, president of the Grenada System, who declared Banking that believed that full would be made to all ment of the Bank of Winona positors within 18 months, if arrangeto re-open were completed. Mr. Thomas asked not only but for more Christ in the life and Jesus business the declaring that he conthe United States would ditions when the people improve only their sins before acknowledge of them, ask His God, repent begin serve Him pardon, and to faithfully Supt. Love laid the blame for Winona's Banks the closing upon the people of the communiwho yielded hysteria, the re-opening of the stated that Bank of Winona depended the He highly praised people Henry Hart, and the president, cashier, Webster, for their efficiency and faithfulness operation of the bank's the He declared that records the state banking department revealed that period depositors banks years, forced liquidate under conditions had received only the deposits; and cent that the Bank Winona liquidation at this forced into would be that time, his guess would receive only depositors 40 cent of the deto per the scarcity of because of posits, and the depreciation money property on forced sale. likened the conditions Mississippi today almost to those during the tion period after the Civil Wa At 10:30 meeting of depositors of the Kilmichael Bar was held the Agricultur High School. About 300 depos tors and citizens were presen The meeting was presided by Prof. Brinson. Hon Love, State Supe intendent of Banks, and Walk Wood, Secretary of State, dressed those present. Mr. Wood went over in dets how bank handles its and showed that each deposite partner stockholder the institution, That if all depositors called for their mone the same time, each could paid because the money been invested the bank bonds, and loaned to the the community on their homes and other safe securitie In this way the bank rendered real banking service ot the ple and made money officers and interest on accounts. Hon. Love, who haps the busiest man in sippi, just at this time, push the great volume of business his office aside and came Montgomery County to assist people trying to open Bank of Kilmichael and the of Winona. He told both ences just what the Times people before run nthe Banks that clos made them: that both solvent should not have suspended; that they can opened, but will take the co-operation of every deposit banks back to place By this kind of operation the banks can be ope days. Loud cheers greeted Suj Love's that in Kilmichael Wednesd meeting morning seeking to re-open Bank Kilmichael, depositors 100 cent, to signed per the plan of freezing deposits guarantee re-opening, he that instituti that expected business within resume days. of the Every depositor Winona attending this to the plan of ing agreed deposits period three years; and many, una attend the bank officials to sign cards them. With assets excess $100.000 above the deposits, of the Bank re-opening in the near future nona in view of the assured spirit of co-operation Wednesday's meeting.

7. February 2, 1931 The Clarksdale Press Register Clarksdale, MS

Article from The Clarksdale Press Register, February 2, 1931

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few minutes before when the convicts' car tumbled into a ditch. MORE BANKS IN Their lookout, John Creecon, was seized on the spot of their latest crime in Beacon, N. Y. The first three, accompanied by STATE REOPEN; William Rapp of Yonkers, escaped from penitentiary in the midst of holiday festivities last FREEZING PLAN Christmas Eye and fled into snow* carpeted woods near White Plains, week in City Hall Park, Yonkers, Depositors "Freeze" DeYesterday chase started when posits and Get Three Beacon jewelry store was robbed. Shots near the store failed to halt Opened by Agreement. the burglars. An alarm was sent. JACKSON, Miss., Feb. 2. (A) tween Beacon and New York. SpeedThree Mississippi banks ing along at 70 failes an hour, the robbers encountered state motoropened their doors today after sev. eyele policeman in Ossining, N. Y., eral weeks' suspension In th face but beat off his pursuit. of runs, J. S. Love. sup Intendent Roaring through Yonkers, they of banks announced. exchanged fire with another ofThe institutions resuming busi ficer and went off the road near the ness were: Bronx line. Reynolds was bagged Bank of Winona, Winona; the here but the others resumed their Bank of Kilmichael, at Kilmichael, flight in cab. At 242nd Street, and the Bank of Ethel at Ethel. one policeman jumped on their The plan for reopening the banks running-board and another menaced include "freezing" of deposits. them from the middle of the street. Under the plan only ten per cent As the cab ground to a halt, the withdrawal is permitted. desperadoes fired and missed. Both The Peoples Savings Bank of officers emptied their guns into the Starkville plans to résume business tonneau. Sirico rolled out lifeless tomorrow. and Clark died on the way The banks reoponed today are but hospital. several of a lengthy list that the Sirico was identified by tattooing superintendent hopes to have re- reading opened during the week or early Mary" and Clark by the this month. Red Cross nurse

8. February 4, 1931 The Indianapolis News Indianapolis, IN

Article from The Indianapolis News, February 4, 1931

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VAN SWERINGENS BID Brothers Seek to Add Eastern Road to Rail Empire. Once more the Van Swerseek wider for their ingen empire Comalmost top of the for division eastern into major systems, Vans-M. and left doubt of their to their network into If this invasion the brothers, who entered the field their real will stand at the network from the coast Maine to Rockies Great Salt lake. Their & Ohio, Nickel carry them from the at New York the plains and dustrial cities of the west, the Missouri Pacific takes across the Mississippi to Utah and the Rio Grande, Their determination to acquire the miles of trackage of the Boston Maine railroad for their Nickel O. system were before the Chamber last by William H. Boyd, Cleveland attorney. Mississippi Banks Reopen. JACKSON, Miss., February 4 (A.P.) -Resumption of business by Mississippi banks recently closed goes forward. The first of the larger tutions reopened and others pare follow. The Peoples Savings Bank at Starkeville, closed for several has reopened. The reorganized Greenwood Bank and Trust Company probably will resume Thursday or Friday and the Bank of Blue Mountain and its branch at Ashland probably Wednesday Thursday. Three recently at Winona, Kilmichael and Ethel have reopened. Four Iowa Banks Merge. OTTUMWA, Ia., February 4 (A.P.) -Merger of four Ottumwa banks into the Union Bank and Trust Company announced. The banks involved the Ottumwa Savings, Iowa Ottumwa National and Wapello CounSavings Bank. The merged tutions have resources of more than 000 making it one of the largest banks in southern or northern Missouri.

9. March 26, 1931 The Lexington Advertiser Lexington, MS

Article from The Lexington Advertiser, March 26, 1931

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Depositors M. & F. Bank Inaugurate Re-Opening Plans One of the largest crowds of representative business men and women from all parts of Holmes county ever seen in Lexington gathered at the court house at 3 o'clock in response to a call meeting of depositors of the Merchants and Farmers Bank and Trust Co., that suspended business February 21 Hon. A. M. Pepper was elected chairman and L. E. Barr, secretary. A statement was made the depositors by H. H. Johnson, vice-president of the bank outlining plan approved by the state banking department that re-opening of the institution could be made under "frozen deposit" agreement payable 20 per cent January 1, 1932; 25 per cent January 1933; 25 per cent January, 1934; 30 per cent January, 1935, with interest at 2 per cent per annum. J. W. Gaulding, special agent of the state banking department, stated that a thorough inspection of the bank's assets had been made, it was solvent and should be re-opened; that the bank had arranged for funds the coming year to care for business and that liquidation should not be permitted under the circumstances. He also stated that the bank's capital of $100,000 and similar amount as surplus was unimpaired. Chairman Pepper next introduced Mr. Dulwebber. vice-president of the Greenwood Bank and Trust Co., who stressed the importance of a depositor's full cooperation towards re-opening the bank under the plan outlined. He stated that the bank Greenwood had adopted similar plan and also had over onehalf million dollars in new deposits. He paid high compliment to the people of Holmes county and the manner in which they overcame obstacles. Henry Hart, president of the Bank of Winona that recently re-opened under similar program, addressed the depositors at length. His statements were attentively heeded by the immense throng, and the earnestness of his advice combined with his high standing as business man and banker of Montgomery county for 50 years, is also aided in the experience of his seventy years as a man whose counsel and guidance is to be taken by the good people of any community. His illustrations were apt and to the point and his tribute to the farmer was worthy of the attention of every man, woman and child of Mississippi. Mr. Hart has been banker for 23 years and his advice should be of inestimable benefit and his service to his fellowman living example of confidence inspired by a loyal consciousness of duty. Statements were also made by B. S. Beall, G. W. Stigler and S. D. Bailey, highly respected and honored citizens of the community. They urged the reopening of the bank and requested full cooperation of the depositors. A statement was made in behalf of