Brownwood State Bank - Brownwood, TX

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: June 25, 1930
Location: Brownwood, Texas (31.712, -98.976)

Metadata

Model: gpt-5-mini
Short Digest: e3c4c72b

Response Measures

Full suspension

Other: Stockholders to meet to arrange paying depositors

Description

Article (Abilene Daily Reporter, 1930-06-26) reports unusually heavy withdrawals and a heavy run Wednesday; directors posted notice that the bank closed and business suspended and cites inability to collect outstanding notes as main cause. No reopening or receiver mentioned; stockholders to meet to plan paying depositors, indicating permanent failure/closure.

Events (2)

1. June 25, 1930 Run

Cause: Bank Specific Adverse Info
Cause Details: Inability to collect outstanding notes (bad loans/illiquid assets) led depositors to withdraw funds; heavy withdrawals escalated into a run on Wednesday.
Measures: Directors met Wednesday night; they posted notice and suspended business Thursday; stockholders to meet to plan paying depositors.
Newspaper Excerpt: unusually heavy withdrawals the past week, and especially heavy runs Wednesday caused directors in meeting Wednesday night
Source: newspapers

2. June 26, 1930 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Directors suspended operations after heavy withdrawals and inability to collect outstanding notes (illiquid assets).
Newspaper Excerpt: posted signs Thursday morning, Bank closed and business suspended, by order board of directors.
Source: newspapers

Newspaper Articles (1)

1. June 26, 1930 Abilene Daily Reporter Abilene, TX

Article from Abilene Daily Reporter, June 26, 1930

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Article Text

BROWNWOOD BANK CLOSES DIRECTORS OF BROWNWOOD STATE POST NOTICE ON THE DOORS Special to The Reporter. BROWNWOOD, June Brownwood State bank, for nine years prosperous bank of this city failed to open its doors for business Thursday morning. O. Walker, president of the bank stated that unusually heavy withdrawals the past week, and especially heavy runs Wednesday caused directors in meeting Wednesday night to post signs Thursday morning, "Bank closed and business suspended, by order board of directors." Stockholders meeting will be held within the near future and plans for paying depositors will be worked out. Inability to collect outstanding notes assigned as main cause of bank failure. The bank had capital and surplus of about $62,000 and until recently deposits were more than $200,000. The bank was organized in 1921 by O. Walker who served six years as secretary before being elected president in 1928. The bank moved into new home in 1928. Harry Stutz Dies INDIANAPOLIS, June Harry C. Stutz. 53, widely known automobile designer and manufacturer, died here today from complications which followed an operation for appendicitis.