22547. Bank of Deerfield (Deerfield, WI)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
*
Location
Deerfield, Wisconsin (43.052, -89.076)

Metadata

Model
gpt-5-mini
Short Digest
3accba6b

Response Measures

Accommodated withdrawals, Capital injected

Description

Newspapers describe a depositor panic/threatened run in Deerfield which was handled by a public meeting, voluntary heavy assessments by stockholders, setting cash assets in trust and depositors agreeing to give the bank time to pay (33 months). The bank remained open and later had more deposits than before. The panic was driven by an international gold run/financial hysteria (macro financial news), not by a bank-specific scandal or a specific false rumor. No suspension or receivership is reported.

Events (1)
1. * Run
Cause
Macro News
Cause Details
Nationwide international gold run and financial hysteria prompted depositor nervousness and threatened withdrawals in Deerfield.
Measures
Public town-hall meeting; appealed to stockholders for heavy voluntary assessment; set aside cash assets in trust to pay depositors pro rata; depositors signed agreements giving the bank ~33 months to pay balances.
Newspaper Excerpt
We held a meeting in the town hall, told the depositors that the town's only bank was against the wall and would have to be closed... Within two hours, 90 per cent of the depositors had agreed to the plan. The stockholders also came through. Today the bank has more deposits than it had when the trouble arose. Deerfield kept its nerve-and its bank.
Source
newspapers

Newspaper Articles (8)
1. April 12, 1932 Lansing State Journal Lansing, MI
Article from Lansing State Journal, April 12, 1932

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Wisconsin's Plan to Avoid Banking Suspensions Bared Young Governor LaFollette, Son of the Late 'Fighting Bob,' Says Officials Made Great Progress by Telling the Public Truth about Conditions in Own State (Copyright The Associated Press) NEW YORK, April 12 (AP) The story of how Phillip F. LaFollette, 34year-old governor of Wisconsin, initiStreet. ated program last fall which carried the among Wisconsin through the trying winter popularly months bank suspension, revealed Governor LaFollette. son of the late Fighting brother Robert M. asking Follette, was New York Tuesday, prior departure for Madison, following trip to Boston. "We decided outset to face the facts," he said when pressed for the reasons underlying the state's record. "We decided first all to tell the public truth. felt that public was fed up on and would fully to any situation taken And what's the public faced the sitthorities. uation and fully met Story Interests Bankers But back of this statement lies story which has aroused keen interest of the highest Wall Street banking circles. of their Last fall, when an gold York, wave of financial hysteria began sweep "We tried over the nation. Governor LaFollette was worried. He turned to western ulation. We bankers to learn what was happening, but wasn't entirely satisfied that he he The governor then made special trip investigation to Wall green and he had friends nation's largest dress." regarded as traditional foes the LaFollette school of progressive the swindle politics, the western carried his quest facts their offices, Schwarzkopf, financial giants and all What can we in do protect our The answers but agree on one point "keep your banks cryptic signed keep as much cash as possible in the Upon his return to Wisconsin, the the conference special banking of men drafted from before the the ranks of Wisconsin's banking au- later "We decided after prolonged discussion to establish the keystone of our program the policy of telling the whole truth to and others directly with the condition banks. Tried Out Plan out our plan first in the town Deerfield, with 900 popheld meeting in the town hall. told the depositors that the town's bank was against wall and would have be closed. Then offered proposal keeping open. We bank's accept We told the depositors we set aside the assets of the bank would pay pro rata the But before would do this, we depositors to sign giving the bank in which to pay the balance owed depositors. Within two hours, 90 percent the depositors had agreed to the plan. The stockholders also came through. Today the bank has more deposits than had when the trouble arose. Deerfield kept its nerve-and its bank. "The program extended to larger towns In every case, the stockholders assumed sponsibility their part giving time for the bank to them the state, and its ready to gave the bankers confidence, and this contagious. In city started bank. The president got down to his office the opened, met the line depositors. can have money, he told them. You have every dollar, but remember break this bank.' And the run stopped.' Over 150 of the 900 banks in the state, he said, received direct or indirect help through the special commission. Not one of them had to be closed.

2. April 12, 1932 Denton Record-Chronicle Denton, TX
Article from Denton Record-Chronicle, April 12, 1932

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Which Carried Through Single Suspension Associated NEW YORK April story of how Phillip 34-year-old initiated fall which program carried Wisconsin through ing winter months without bank revealed today. Governor the Senator and brother York day, prior to his departure after decided the said for the reasons the decided the the We public that the public shine and would measure fully full And the public faced the and fully back of has the highest Wall Street circles. Last fall. when gold run of hysteria began sweep over the nation was western bankers learn what was but entricly satisfied that ne had information he needed. The progressive governor then made special Wall Street. Although be had friends among the nation's popularly regarded the LaFollette school progressive politics, the carried his quest their The were meagre, but appeared one point. "Keep your banks to banker. keep much cash in the Upon his return to Wisconsin: the formed special banking commission 15 drafted from ranks Wisconsin's banking establish the our program the policy tellthe whole truth to depositors others directly concerned condition their banks first in the busy town with We meeting the town hall. the depositors that the town's only bank against the would have closed. Then offered our posal for We to the bank's heavy assessment lartly lold The depositors that proposed to in the cash assets the bank which would rata the pay pro But before would asked the agreements, giving the bank months which to the ance depositors. hours. $0 per cent of the depositors agreed to the plan. The stockholders also came Today the bank has deposits than hed when the trouble Decrfield kept its its bank. larger and In case. the assumed their responsibility and the depositors did their part by giving for the bank them pay

3. April 12, 1932 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, April 12, 1932

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WISCONSIN FACES FACTS AND SAVES EVERY BANK NEW YORK, April 12. (AP)The story of how Phillip F. LaFollette, 34-year old gover. nor of Wisconsin, initiated a program last fall which carried Wisconsin through the trying winter months without a bank suspension, was revealed today Governor LaFollette. son of the late Senator (Fighting Bob) LaFollette and brother of Senator Robert M. LaFollette, was in New today prior to his departure for Madison Wis following trip to Boston We decided at the outset to face the facts he said decided first of all to tell the public the truth We felt that the public was fed up on sunshine and would measure up fully to any situation taken into full confidence And what's more the pubfaced the situation and fully met Went to Wall Street. But back of this statement lies hitherto unpublished story which has aroused keen interest in some of the highest Wall street banking circles Last fall when an international gold run developed on New York wav financial hysteria began to sweep over the nation. Governor LaFollette was The progressive governor made special trip of investigation to Wall street. Although he had no friends among the nation largest bankers popularly regarded traditional foes of the LaFollette school of progressive politics, the western executive carried his quest for facts to their offices. button-holing financial giants and asking questions, What's all about and "what can we in Wisconsin to protect ourselves and our banks The answers were meager but appeared agree on one point, your banks clean," which, bank- er. means to keep as much cash possible in the Upon his return to Wisconsin, the governor formed special commission of men drafted from the ranks of Wisconsin's banking authorities 'We decided after prolonged discussion to establish as the keystone our program the policy of telling the whole truth to depositors and others directly concerned with the condition of their banks Saves First Bank tried out our plan first in the busy town of Deerfield with 900 pop ulation We held meeting the town hall, told the depositors that town's only bank was against the wall and would have to be closed Then we offered our proposal for keeping it open We appealed to the bank's ockholders accept heavy ment voluntarily We told the positors that we proposed set aside trust the cash assets of the bank which we would pay out pro rata the depositors. But before we would do this. we asked the depositors sign giving the bank months in which to pay off the ance owed depositors Within tw 90 cent of the per had agreed to the plan The stock holders also came through Today the bank has more deposits than it had when the trouble arose Deerfield kept its its bank "The program was extended to larger towns and cities. In every case the stockholders assumed their respon

4. April 12, 1932 The Birmingham News Birmingham, AL
Article from The Birmingham News, April 12, 1932

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GOV. LA FOLLETTE TELLS HOW STATE SAVED ITS BANKS 34-Year-Old Executive Takes Wisconsin Through Trying Winter Months The Associated Press of how Phillip F. 34, governor program last which carried Wisconsin through the trying Winter months without bank was vealed Tuesday Gov. son of the late and brother Senator Robert LaFollette, in New York to his for son, trip to decided at the outset to the facts,' said pressed for reasons decided first tell the the We felt that the public was fed up on and ure up fully any situation taken into And what's the public faced the situation and fully But back lies hitherto unpublished which has aroused keen in of the highest banking Last run developed of financial to over the nation. Follette turned to Western ers to but satisfied he had all the information he needed. The progressive special of Wall Street. Although he had no friends among the nation's largest bankers tional foes of school of progressive politics, the Western executive carried his quest for facts their offices, finan cial asking all and "What can we in do to protect selves and our banks?" The answers were appeared to agree one point, "Keep your banks which, banker as cash as possible in the Upon his return to Wisconsin, the governor special banking commission of the ranks banking "We decided after prolonged dis. cussion establish the key. stone our program the policy of telling the whole truth de positors others directly cerned with the of their banks. tried out our plan first in the busy 900 population. meeting hall, told depositors that town's the to be closed Then offered proposal for keeping open. We appealed to the voluntarily We told the depositors aside in trust the cash assets of the bank which we would pay out pro rata to depositors. before would we asked the sign giving the 33 in pay the balance Within 90 per cent the depositors had agreed the The stockholders also through. Today the deposits had the treuble Deerfield nerve-and its extended to program larger cities. In every the assumed their and the depositors did their part by giving time for the bank to pay them "Knowledge state, and Its population stood ready the bankers and this confidence one started on bank. The president got down to office when the doors were opened, the 'You can your told them. can dollar but remember one this bank the run stopped. More 150 the 900 banks in the state, said, direct help the special bank commission. Not one of them to be closed. GAHAN RITES PENDING Funeral arrangements of Pat 57. resident of Birmingham and nephew of the late Martin Egan. former chief of police here, in Memphis Saturday are arrival his Roy Los Gahan died of head inflieted was knocked and robbed in Memphis

5. April 12, 1932 The Brownsville Herald Brownsville, TX
Article from The Brownsville Herald, April 12, 1932

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BANKS SAVED BY WISCONSIN FACING FACTS (Copyright, 1932, by The A. P.) NEW YORK, April 12-(P)-The story of how Philip F. Lafollette, 34-year-old governor of Wisconsin, initiated a program last fall which carried Wisconsin through the trying winter months without bank suspension was revealed today. Gov. Lafollette, son of the late Sen. "Fighting Bob" Lafollette and brother of Sen. Robert M. Lafollette, WRS in New York today, prior to his departure for Madison, Wis., after a trip to Boston. Decided to Face Facts "We decided at the outset to face the facts," he said when pressed for the reasons underlying the state's record. "We decided first of all to tell the public the truth. We felt that the public was fed up on sunshine and would measure up fully to any situation If taken into full confidence And what's more, the public faced the situation and fully met it." But back of this statement lies a hitherto unpublished story which has aroused keen interest in some of the highest Wall street banking circles. Last fall, when an international gold run developed on New York, a wave of financial hysteria began to sweep over the nation. Gov. Lafollette was worried. He turned to western bankers to learn what was happening, but wasn't entirely satisfied that he had all the information he needed. 'Keep Banks Clean' The progressive governor then made a special trip of investigation to Wall street Although he had no friends among the nation's largest bankers, popularly regarded as traditional foes of the Lafollette school of progressive politics, the western executive carried 1.1s quest for facts to their offices The answers were meagre, but appeared to agree on one point, "keep your banks clean." which, to a banker, means to keep as much cash as possible in the till Upon his return to Wisconsin, the governor formed a special banking commission of 15 men drafted from the ranks of Wisconsin's banking authorities "We decided after prolonged discussion to establish as the keystone of our program the policy of telling the whole truth to depositors and others directly concerned with the condition of their banks. Take Heavy Assessment "We tried out our plan first in the busy town of Deerfield, with 900 population. We held a meeting in the town hall, told the depositors that the town's only bank was against the wall and would have to be closed. Then we offered our proposal for keeping It open. We appealed to the bank's stockholders to accept a heavy assessment voluntarily. We told the depositors that we proposed to set aside in trust the cash assets of the bank which we would pay out pro rata to the depositors But before we would do this, we asked the depositors to sign agreements. giving the bank 33 months in which to pay off the balance owed de- positors. Within two hours, 90 par cent of the depositors had agreed to the plan. The stockholders also came through. Today the bank has more deposits than it had when the trouble arose. Deerfield kept its nerve-and its bank. "The program was extended to larger towns and cities In every case, the stockholders assumed their responsibility and the depositors did their part by giving time for the bank to pay them off."

6. April 12, 1932 The Daily Nonpareil Council Bluffs, IA
Article from The Daily Nonpareil, April 12, 1932

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La Follette Reveals How Wisconsin Prevented Single Bank Suspension NEW YORK, April 12, (P)How Philip F. La Follette, 34year-old governor of Wisconsin, initiated a program last fall which carried Wisconsin through the trying winter months without a bank supension, was revealed today. Governor La Follette, son of the late Senator "Fighting Bob" La Follette and brother of Senator Robert M. La Follette, was in New York today, prior to his departure for Madison, Wis., following a trip to Boston. "We decided first of all to tell the public the truth,' he said. But back of this statement lies a hitherto unpublished story. Last fall, when an international gold run developed on New York, wave of financial hysteria began to sweep over the nation. Buttonholes Capitalists. Governor La Follette turned to western bankers to learn what was happening, but wasn't entirely satisfied that he had all the information he needed. The progressive governor then made a special trip of investigation to Wall street. Although he had no friends among the nation's largest bankers, popularly regarded as traditional foes of the La Follette school of progressive politics, the western executive carried his quest for facts to their offices, buttonholing financial giants and asking questions, "What's it all about and "What can we in Wisconsin do to protect ourselves and our banks? The answers were meagre, but appeared to agree on one point, "Keep your banks clean,' which, to a banker, means to keep as much cash as possible in the till. Forms Banking Commission. Upon his return to Wisconsin, the governor formed a special banking commission of fifteen men drafted from the banks of Wisconsin's banking authorities. "We tried out our plan first in the busy town of Deerfield, with 900 population,' he said. "We held meeting in the town hall, told the depositors that the town's bank was against the wall and would have to be closed. Then we offered our proposal for keeping it open. We appealed to the bank's stockholders to accept a heavy assessment voluntarily. "We told the depositors that we proposed to set aside in trust the cash assets of the bank which we would pay out pro rata to the depositors. But before we could do this, we asked the depositors to sign agreements, giving the bank thirty-three months in which to pay off the balance owed depositors. Prevents Bank's Failure. "Within two hours, 90 per cent of the depositors had agreed to the plan. The stockholders also came through. Today the bank has more deposits than it had when the trouble arose. Deerfield kept its nerve-and its bank. "The program was extended to larger towns and cities. In every case, the stockholders assumed their responsibility and the de- positors did their part by giving time for the bank to pay them off." Over 150 of the 900 banks in the state, he said, received direct or indirect help through the special bank commission. Not one of them had to be closed.

7. April 13, 1932 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, April 13, 1932

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WISCONSIN FACES FACTS AND SAVES EVERY BANK NEW YORK April 12 The story of how Phillip F. LaFollette, 34-year-old governor of Wisconsin, initiated a program last fall which carried Wisconsin through the trying winter months without a bank suspension, was revealed today Governor LaFollette son of the late Senator (Fighting Bob) LaFollette and brother of Senator Robert M. La. Follette, in New York today, prior to his departure for Madison, Wis., following to Boston decided at the outset to face the facts,' he "We decided of all to tell the public the truth. We felt that the public was fed up on sunshine and would measure up fully to any situation if taken into full confidence. And what's more, the public faced the situation and fully met Went to Wall Street. But back of this statement lies hitherth unpublished story which has aroused keen interest in some of the highest Wall street banking circles Last fall. ternational gold run developed on New York, wave of financial hysteria began to sweep over the nation. Governor LaFollette was worried. The progressive governor made special trip of investigation to Wall street. Although he had no friends among the nation's largest bankers. popularly regarded as traditional of the LaFollette school of progressive politics, the western executive carried his quest for facts to their offices, holing financial giants and asking questions What's all about and what can we in Wisconsin do to protect ourselves and our The answers were but peared to on point. banks bank- er, means to keep much cash possible in the Upon his return to the governor formed special commission of 15 men drafted from the ranks of Wisconsin's banking decided after prolonged discussion to establish as the keystone of our program the policy of telling the whole truth to depositors and others directly with the condition of their banks. Saves First Bank "We tried out our plan first in the busy town of with 900 popWe held the town hall, told the depositors that town's only bank was against the wall and would have to be closed Then we offered our proposal for keeping it open. We appealed to the bank's to accept heavy assessment voluntarily We told the positors that we proposed to set aside trust the cash assets of the bank which we would pay out pro rata to the depositors But before would do this, asked the depositors sign giving the bank months in which to pay off the bal ance owed depositors Within two 90 per cent of the depositors had agreed to the plan. The stockholders also came through Today the bank has more deposits than a when the trouble Deerfield kept its its bank. "The program extended to larger towns and cities. In every case the stockholders assumed their respon-

8. April 13, 1932 Muskogee Daily Phoenix and Times-Democrat Muskogee, OK
Article from Muskogee Daily Phoenix and Times-Democrat, April 13, 1932

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PLANS Details of How Wisconsin's Institufions Were Saved Is Told By Governor NEW YORK, April story of how Phillip La Follette, governor of initiated program last fall which carried Wisconsin through the trying months without bank pension, revealed today Governor La son of the Senator "Fighting Bob" La lette and brother of Senator Robert M. Follette, was in New York day, prior to his departure for Madifollowing Boston Gave People Facts "We to face facts, he when pressed reasons state's record. decided of all public the truth felt that the public was fed up sunshine would measure up fully to any situation taken into full And what's more, the public faced situation and fully met But back this statement hitherto unpublished story which keen interest the highest Wall street banking circles. Last fall when gold to the Governor Follette He turned western bankers learn but entirely satisfied had all the he needed He Sought Advice The progressive governor then made special trip of investigation Wall street. Although he had no friends among the nation's largest bankers popularly regarded as traditional the La Follette school of progresthe western carried his quest for facts to their offices, financial ziants asking questions, all and in to protect ourselves and The meagre but apto agree point "keep banks bank keep as much cash in the till Upon his to Wisconsin, governor formed special drafted ranks of banking Kept Their Nerve decided prolonged disestablish the our program the policy of telling whole truth and others directly with the of their banks. The tried out plan first in the busy town Deerfield, with 200 pop. cent. We held meeting in the town hall, told the depositors the only bank the have to be Then offered our for keeping open. We appealed the bank's accept We told depositors that proposed to aside trust the cash assets of the bank which would out pay pro the depositors. before would do this, we asked the depositors sign agreements, giving the bank 33 months pay off the balance owed positors Within two hours, 90 cent of the depositors agreed the plan. The stockholders through. Today the bank has more deposits than had when the trouble arose. Deerfield kept its its bank. 150 Banks Get Help larger and cities. In every the their and the did their part by giving time for the bank them off. that the state, and stood ready help, the bankers confidence, and this confidence was contagious. In run started on bank. The president got down to his office early when doors were opened, the incoming line depositors. your he told them. You have every dollar, can't break this bank. And the stop- Over of the banks in state, direct direct help through special bank Not one them had be closed.