19566. State Bank (Eau Claire, WI)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
September 21, 1931
Location
Eau Claire, Wisconsin (44.811, -91.498)

Metadata

Model
gpt-5-mini
Short Digest
cbfaa43ad773de97

Response Measures

None

Description

The Eau Claire State Bank's directors voted to turn the bank over to the Wisconsin banking department and it failed to open on Sept. 21, 1931 after negotiations to sell the bank were terminated following Britain's abandonment of the gold standard. The bank remained in liquidation and actions to appoint a receiver and assess stockholders were still underway in 1933, indicating permanent closure. Although examiners briefly took charge and promised limited access to safety deposit boxes, the institution did not resume normal operations.

Events (3)
1. September 21, 1931 Suspension
Cause
Macro News
Cause Details
Negotiated sale to Northwest Bancorporation terminated after Great Britain abandoned the gold standard; directors cited heavy withdrawals and inability to convert assets rapidly enough, then turned affairs over to the state banking department.
Newspaper Excerpt
Two banks with total deposits of about three and one-half million dollars failed to open for business in Eau Claire yesterday. They are the Eau Claire State Bank ... failed to open, its directors said, because the termination of negotiations which the Northwest Bank Corporation, Minneapolis was about to take over the bank. The were abandoned said, because of suspension of the gold standard in London.
Source
newspapers
2. September 23, 1931 Other
Newspaper Excerpt
Mr. Ibach stated that the doors of both the closed banks would be reopened within few days for the transaction of whatever business permissible under the present status, and giving depositors access to their deposit boxes. No further statements by the officers or directors of either bank have been given out since Monday.
Source
newspapers
3. July 11, 1933 Receivership
Newspaper Excerpt
It will probably be fall, or at least a couple of months, it was learned Monday, before another dividend may be expected from defunct Eau Claire State bank, now in liquidation since it closed its doors on September 21, 1931. The state banking department, it was stated, had applied to the federal banking department for appointment of a receiver for the Eau Claire National bank, who will be instructed...to assess the stockholders of that bank and liquidate whatever assets that bank may have for the benefit of the Eau Claire State bank.
Source
newspapers

Newspaper Articles (10)
1. September 21, 1931 The Waukesha County Freeman Waukesha, WI
Article from The Waukesha County Freeman, September 21, 1931

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England's Condition Given as Cause EAU land's of the gold resulted today the closing of the Eau Claire State bank with of 000,000 and Union bank, smaller brought the total number Eau Claire bank failures this year three, the Eau Claire Savings bank having closed its doors July The Eau Claire State bank was formed recently by the Bank Eau Claire with the Eau Claire National bank. announcing decision close, directors the State bank said: receipt word that England had abandoned the standard, the Northwest Bank corporation, Minneapolis, terminated negotiations been virtually closed for acquisition of assets of the Claire State bank consideration for the purchaser assuming paying all sums due from bank depositors." The announcement further stated that since the closing the Eau Claire Savings bank, the State bank had forced to keep reserve by borrowing meet the needs its positors. Officials of the Union Savings bank declared that directors voted the closing night after hearing of the State bank's intendecided turn the bank's affairs over to the state raththan take chance on facing run today. ATTENDS MEETING Holmes Daubner, district deputy of Elk lodges the part of the state, Saturday tended meeting of district deputies the Elks Memorial building, Chicago. Grand Exalted Ruler John Coen outlined to deputies what he expects them during the coming year. MAN ARRESTED John Martello, living near the stone quarry highway 164, arrested yesterday when police found mantel clock in home which answered the description taken Saturday from the Cohn store BroadHe was charged today with petty larceny.

2. September 21, 1931 Moorhead Daily News Moorhead, MN
Article from Moorhead Daily News, September 21, 1931

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ENGLISH ACT HITS EAU CLAIRE BANK SUSPENSION OF GOLD INDIRECTLY CLOSES WISCONSIN INSTITUTION. Eau Claire, Wis., Sept. Great Britain's abandonment the gold standard resulted Indirectly today the closing of the Claire State bank with sources of $4,000,000 and the Union Savings Bank, smaller institution. Three banks have failed here this including the two today. year, Sale of the Eau Claire State bank's assets to corporation, Minneapolis, halted by news of the abandonmeit of the gold standard by England and brought about the closing the banks. Minneapolis, Sept. 21 (UP) There no reason why action the British government in abandoning the gold basis should disturb this country, Edward Decker, president of the Northwest said day. the long run this action will Decker said. "The only people really affected are those dealing in the pound sterling.

3. September 21, 1931 Wisconsin State Journal Madison, WI
Article from Wisconsin State Journal, September 21, 1931

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English Action Closes Banks at Eau Claire But Herreid Sees Nothing in Situation for General Effect on Institutions Although two banks at Eau Claire closed today, there nothing in the situation by England's of the gold standard that should have any general effect upon state banks in Wisconsin, Thomas Herreid, acting banking, declared this afternoon. Directors of the Eau Claire State bank. institution, and the Union Savings bank, smaller concern, England's action the indirect cause of their suspension. They brought the total Eau Claire bank closings this year three, the Eau Claire Savings bank having shut its doors on July 13. 'Isolated Instance' Commissioner Herreid, who was notified of the intended action Sunday night, was studying the situation today and declared he can no reason why the Eau Claire tion should not regarded The Eau Claire State bank he pointed out, of the failure of gotiations for transfer of its resources to new owners. The bank was formed recently Bank Eau Claire with the Eau Claire National bank. In announcing the decision to close, directors of the State bank said: receipt of word that England had abandoned the gold dard, the Northwest Bancorporation, Minneapolis. terminated gotiations which had been tually closed for acquisition of of the Eau Claire State bank in consideration for the purchaser assuming and paying all sums due from the bank depositors." Avert Chance of Run The announcement further stated that since the closing of the Eau Claire Savings bank, the State bank had forced keep cash by money to meet the of its Officials of the Union Savings declared that directors voted on the closing Sunday night after hearing of the State bank's intention to decided to turn the bank's affairs over to the state banking commissioner rather than take chance on facing run today.

4. September 21, 1931 Chippewa Herald-Telegram Chippewa Falls, WI
Article from Chippewa Herald-Telegram, September 21, 1931

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Strong Union National Meets Heavy Run All Day Without Embarrassment. Eau Claire, Wis. doors two banks here failed to open day. The Eau Claire State Bank, with deposits of about closed, its directors said, because the termination of negotiations which the Northwest Bank Corporation, Minneapolis was about to take over the bank. The were abandoned said, because of suspension of the gold standard in London. few minutes after the announcement closing the directors of the Union Savings Bank announced closing of their institution as precautionary measure to prevent and asked the state banking commission to take charge. The Union Savings Bank had deposits of about Only One Bank Left Only one bank, the Union National Bank, member of the Wisconsin Bank Shares Corporation remained open here. The Union National was sustaining heavy run during most of the day today but had abundant cash reserves with which to meet In an official statement issued during the George Wheeler, president of the Union National declared his institution had nearly in immediate cash resources, does not dollar anywhere and is ready to meet any This marked the third bank to close in Eau Claire in little more than two months. On July the Eau Claire Savings bank failed to open for busi- (Continued On Page Three)

5. September 22, 1931 Leader-Telegram Eau Claire, WI
Article from Leader-Telegram, September 22, 1931

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WITHDRAWALS CAUSED CRISIS, OFFICERS SAY Union Savings Acts With State to Prevent Run NOW CONSIDERED No Means of Converting Assets Rapidly Enough Two banks with total deposits of about three and one-half million dollars failed to open for business in Eau Claire yesterday. They are the Eau Claire State Bank, which had deposits June of and the Union Savings bank, which had deposits the same date $656,298.74. The Eau Claire State bank was recent merger of the State Bank of Eau Claire and the Eau Claire National bank. Withdrawals since that time are said to have reduced the total deposits for the two banks to about Sale Falls Through meeting stockholders the State Bank of Eau Claire day decision to place the affairs the institution in the hands of the bank examiner taken. was This taken when negotiations poration terminated by that Bank of England has suspended the gold standard effect in the financial world. When learned by directors the Union Savings bank that the State bank would not open they cided to also place their affairs the hands the state examinavoid bank yesterday was feared the closing the State bank would cause for withdrawals and that only way to protect all positors was close. Bank Officials' Statement Continual withdrawals amounting to over million and quarter dollars since the closing the Eau Claire Savings bank the reason sale of the Eau State bank's assets could could not be conofficers No such they pointed could stand these withand remain open. The bank very up the time these heavy withdrawals they with the failure negotiations with Northwest Barcorporation there means converting assets rapidly enough to meet demands of depositors. rumors had not caused public uneasiness and unjustified withdrawals President Tufts the bank would never have got into emergency Day after day business had been continued the hope that the wave would lescease. News From England Halts Deal Decision compelled when final word came Northwest late Sunday evening that because of the action (Continued on page col

6. September 23, 1931 Leader-Telegram Eau Claire, WI
Article from Leader-Telegram, September 23, 1931

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BANK EXAMINERS TAKE CHARGE OF TWO INSTITUTIONS Safety Deposit Boxes to Be Accessible in Few Days Two bank examiners for the Wisconsin department of banking at Madison yesterday were making customary checkup and preparing inventories of the condition of the Eau Claire State bank and of the Union Savings bank, which were taken over yesterday by the state banking department at the request of the respective boards of directors State Bank Examiner H. F. Ibach of this city has taken charge of the Eau Claire State Bank and Examiner C. C. Steele Sparta has taken charge of the Union Savings bank. Following the sudden termination Sunday night of negotiations for the the purchase of the Eau Claire State bank by the Northwest Bancorporation of Minneapolis, reported to have been due to the abandonment of the gold standard by England, the directors of the bank voted to turn the bank over to the state banking de partment at Madison This action. they said in statement issued Monday was made )necessary by the heavy withdrawals from the bank following the closing of the Eau Claire Saving bank on July 13, 1931 Directors of the Union Savings bank, on receipt of the news that

7. September 23, 1931 Leader-Telegram Eau Claire, WI
Article from Leader-Telegram, September 23, 1931

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the Eau Claire State bank would not open its doors Monday, also voted to turn its affairs over to the state banking department, not desiring to face the run on the bank which they felt would inevitably result on the news of the other bank's closing. Efforts were under way by both banks, it was stated yesterday, work out satisfactory reorganization plans or programs but in neither it was intimated, had the parleys yet reached point where any definite statement could be made. Mr. Ibach stated that the doors of both the closed banks would be reopened within few days for the transaction of whatever business permissable under the present status, and giving depositors access to their deposit boxes. No further statements by the officers or directors of either bank have been given out since Monday. In the library of Gottingen is Bible written on palm leaves. There are 5373 pages, each made of a single leaf.

8. September 24, 1931 Waukesha Freeman Waukesha, WI
Article from Waukesha Freeman, September 24, 1931

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England's Condition Given as Cause EAU The last sighted in the abandonment the general vicinity where the freightresulted today finding wrecked reported the closing of the Eau Claire plane. State bank The fliers Wily Chrisand Union Savings Johansson Fernando smaller Belmoira Costa Veiga. brought total number of Eau route to Leningrad, where Claire bank year Oct. three, Claire Savings bank having closed its doors July bank PLANE HITS The Claire State was formed the State Bank Eau Claire the Eau National bank. the decision close, directors of the State bank said: "On receipt that England abandoned the standard, the Northwest Bank corporation, terminated negotia- Passenger, Resident Killed closed Plane Crashes assets of the as Claire State bank in for the and sums due from the bank paying Monday's Daily) WEST BRIGHTON, The further state: plane flown by James Goodwin that the closing the war flier and speed Claire bank, the State flier for organibank had been forced to keep zation, crashed the roof of residence here today, killing meet the needs of its deoccupants the house positors. occupant the plane. Officials of the Union Savings Hall injured. declared directors Peter Brady, identified closing night president of the Federation Bank hearing of the State bank's Trust company chairman tion suspend. decided of Mayor Walker's committee turn the bank's affairs over to the on riding with state banking rathand was killed. than to take chance on facing An unidentified woman resident run today. the house which the plane

9. September 30, 1931 Grant County Herald Lancaster, WI
Article from Grant County Herald, September 30, 1931

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ALL AROUND WISCONSIN BY AND WIRE MAIL Inland Resort hotel at Fox The lake struck by lightning Monday was evening and burned to the ground. The Marathon Paper Mills plant Baltimore, Md., is being moved Menasha and Wausau. The plant 90 men making ice cream pails ploys cartons. and gradual withFrozen assets was given as the drawal of deposits the state departreason the closing of the Warren ment for bank Tomah, Saturday. Mrs. William Nichols, 23, residing farm near Eau Claire, was slain her husband's cousin, by whose Thursday attentions she had repulsed. The slayer then killed himself. Marinette youth, Edward MeVane, 18, has to stealing at 21 in that vicinity. least said he took the cars go He them when the dances, gasoline was exhausted. Morris, 21, Georgiana Francis Baumeister, and Harvey all of Delavan, were killed early Sunwhen their car struck day morning wall the Highland culvert road near Delavan lake. Del Buettner, 21, Milwaukee, was shot and killed at Manitowee Saturday during an argument over operation of an alcohol plant. Prohibition agents confiscated the large still found in operation in warehouse. The body of William Gruenwald, 38, Spring Valley farmer, was found at his here Thursday hours after deputy sheriff served pahim divorce instituted pers on wife. wrists were slashed. The Wisconsin Telephone company Monday received injunction straining the public service commission from enforcing new law which orders utilities to pay the cost of vestigations ordered by the commisTaxable general property in the counties Wisconsin has dropped in the past year. according to the tax The value of all general property total $5,896,431,628 to $5,250. dropped from Claire State bank. with The Eau closed its doors deposits of $4,000,000 Monday morning. few minutes lasecond institution. the Union Savings bank. closed to forestall Only one bank remains Union National Farmers in the district north of Ottawa standing guard over their sheep and hogs at night to prevent having them off by bears who have been driven by hunger from the brush. A bounty of $15 is being paid for the animals. Bitten and trampled by six pigs Faw Dowty, daughter of Dowty, Thursday the icipal hospital. Physicians say the child was chewed in dozens of places by the pigs. Racine communists will not be perhold further street meetmitted to ings slight disorder last Wednesday. Workers city prohour in credit ject were paid an for aid. They called slips, good city demanding they be paid in strike, cash. After serving twelve years, three months and 24 days for the murder Lewis D. Cost was released his wife, from Waupun prison. Governor LaFollette the life sentence He 10 years years. and months off the sentence for good behavior. The Milwaukee county board joint finance and judiciary went record Monday being opposed granting any salary increases this year. The action followed request that employes in county institutions receive wage raises ranging from $5 per month. Governor Philip LaFollette. Tuesday informed county and city officmeeting in Madison that he will ask the special session of the legislature to provide state aid for direct relief in local and of nancing local public work Three bandits held up Martin Born. farmer, and in vain for Monday in gold they he had the farm. Last May Born dug with plow later gold in bank. They took posited cash. revolver and watch from Born. Six men bound Kenosha readwife house proprietor chairs early Tuesday morning and robbed them of between $4,000 Fred Meyers, the proprietor, bound chair and after an was hour managed to ring the telephone with his teeth and the operator called the sheriff. The Monroe Country club clubhouse was broken into Monday night for time this year. Mr. and Mrs. Ray who operate the club dining room had taken the bulk the tableware Monroe with them. The thieves took several cartons cigars and reward of $550 cigars. offered for their Thieves who pried safe in the store in Fort Farmers' Sunday escaped with Atkinson night, in cash. Lodi farmers have shipped in 3,606 Dakota sheep and will feed them for the market. Bank Corporation of Milwaukee are financing the deal and the Lodi farmers thus have chance to dispose of surplus feed profit. is usually one of the Wisconsin leaders in clover seed this yields of red clover are year's only 65 per cent expected last year in the principal large as producing areas of the state. In other the yields are expected about 70 to cent of the be per obtained last year, according to the erop reporting service. James Irving Bush, formerly Milwaukee, Wis., whose career has included football stardom at the University of Wisconsin, high finanand three marriages, has been served in New York city $19,800 breach of contract suit former chorus girl. wealthy Bush is of sportsman, the Madison Square Garden corporation in New York. Several persons were reported to have been injured, farm buildings were smashed into kindling wood, others were burned, crops destroyed and livestock killed and damaged, which may run into hundreds of thousands of dallars done by tornado which struck Monday night near Orfordville, Wis., and cut swath mile wide in direction north and northeasterly Janesville. Avery Jones, 36, for seven years Winnebago county of schools, was sentenced to term three in Waupun when one years he pleaded guilty at Oshkosh charges involving Jones president of the youth. Northeastern Teachers Association. He served overseas during the World war. His plea for probawas refused. new problem has been presented of liquor laws in in the Milwaukee territory. Agents discovered that cabin airplanes have carrying 40 or 50 cases capable of flown from Canada. liquor are being pastures by moonlight landing in The flying time isolated airports. Canada Milwaukee only from hours which makes this method four of transportation an easy one. The planes are met by trucks which carry the liquor into the city. District Attorney Randal Elmer conducting campaign in erators The first arrest was county. 806 street, Monreleased under bonds roe. He was undercover agent, hired An the district attorney, obtained the evidence. The home used is located Juda road, two miles the middle charged that an east Monroe. brought from another inmate was Brothers' food stores have Hommel with the Wisconsin placed an order Valley for MeIntosh and Snow loads of be one of the largest Apples, said to of in this region. purchases apples large dirt cellar been at Gays Mills for the orchards storing the apples as this method has enchance the qualproven greatly mellowness. The Wealthy and harvested. be now being MeIntosh and Snow followed by the Apples.

10. July 11, 1933 Leader-Telegram Eau Claire, WI
Article from Leader-Telegram, July 11, 1933

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ACTION BEGUN TO ASSESS STOCKHOLDERS OF FORMER EAU CLAIRE NATIONAL BANK Move Made in Connection with State Bank Liquidation It will probably be fall, or at least a couple of months, it was learned Monday, before another dividend may be expected from defunct Eau Claire State bank, now in liquidation since it closed its doors on September 21, 1931. The state banking department, it was stated, had applied to the federal banking department for appointment of a receiver for the Eau Claire National bank, who will be instructed. it is presumed. to assess the stockholders of that bank and liquidate whatever assets that bank may have for the benefit of the Eau Claire State bank with which it had consolidated some months before it closed its doors, Sept. 21, 1931. No assessment has been made yet against the stockholders of the old Eau Claire National bank, in connection with the failure of the Eau Claire State bank. it was learned. as this could not be done, it was explained into at the time of the consolidation. had expired. This agreement. which among other things provided that the Eau Claire National bank should not surrender its charter as a national bank for two years, expired late last month. The state banking department at once filed application with the comptroller of the currency for appointment of a receiver of the national bank for purposes of taking care of that part of the liquidation of the Eau Claire State bank The receiver has not yet been appointed. but action was expected at any time now The first step taken by the receiver, It was presumed, would be to missess the stockholders of the old Eau Claire National Bank on the basis of their liability as stockhold. ers of the consolidated bank. So far 10 per cent. has been paid out in dividends in the liquidation of the Earl Claire State bank. the last 5 per cent. having been paid in April Questioned as to the probable amount of the next dividend. A B Koneazny, special deputy in charge of the liquidation of the bank, said he was in no position to make any definite forecast. Payment on the outstanding loans, he said, was coming in slowly, and little had been done, because of the condition of the bond market and bond prices, to try to dispose of this form of securities held by the bank. There was still outstanding. it was learned, about $1,200,000 of loans.