22565. Union Savings Bank (Eau Claire, WI)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
savings bank
Start Date
September 21, 1931
Location
Eau Claire, Wisconsin (44.811, -91.498)

Metadata

Model
gpt-5-mini
Short Digest
8a7622c2

Response Measures

Full suspension, Books examined

Other: Directors of Union Savings Bank placed affairs in hands of state banking examiner to avoid a run; safety deposit boxes to be accessible soon.

Description

News dated Sept 21–23, 1931: heavy withdrawals and fear of a run after the Eau Claire State Bank failed to open (news traced to Britain's abandoning the gold standard) led Union Savings directors to place the bank in the hands of the state banking department. Examiners took charge (Sept 23). The articles do not state a reopening or permanent receivership, so outcome is unclear.

Events (2)
1. September 21, 1931 Run
Cause
Macro News
Cause Details
News that Great Britain abandoned the gold standard terminated negotiations for sale of a nearby bank, triggering heavy withdrawals and fear of contagion in Eau Claire.
Measures
Directors voted to place the bank's affairs in the hands of the state banking commissioner to avoid a run; requested state examiners to take charge.
Newspaper Excerpt
Officials of the Union Savings bank declared that directors voted the closing night after hearing of the State bank's intention to decided to turn the bank's affairs over to the state rather than take chance on facing run today.
Source
newspapers
2. September 23, 1931 Suspension
Cause
Macro News
Cause Details
Directors placed the bank in the hands of the state following heavy withdrawals after news of England abandoning the gold standard and the failure of a sale/merger of the nearby Eau Claire State Bank.
Newspaper Excerpt
Two bank examiners for the Wisconsin department of banking ... 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.
Source
newspapers

Newspaper Articles (6)
1. September 21, 1931 The Waukesha County Freeman Waukesha, WI
Article from The Waukesha County Freeman, September 21, 1931

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Article Text

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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Article Text

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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Article Text

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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Article Text

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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Article Text

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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Article Text

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