22595. Brown County State Bank (Green Bay, WI)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: June 2, 1931
Location: Green Bay, Wisconsin (44.519, -88.020)

Metadata

Model: gpt-5-mini
Short Digest: a0fe9a2e

Response Measures

Accommodated withdrawals, Public signal of financial health, Full suspension, Books examined

Other: Armored trucks and shipped currency displayed on counters to reassure depositors.

Description

Bank experienced heavy withdrawals (runs) after the McCartney National failure and circulation of 'vicious and groundless rumors.' Directors placed the bank in the hands of state examiners/commissioner and a receiver (Albert Karel) was later named, indicating permanent closure/receivership.

Events (3)

1. June 2, 1931 Run

Cause: Rumor Or Misinformation
Cause Details: Heavy withdrawals triggered by circulation of groundless rumors following the closing/failure of the McCartney National Bank.
Measures: Prominent citizens and bankers made radio appeals; other banks kept doors open late; Green Bay Clearing House required 30/60/90 day notice on savings withdrawals; large shipments of currency brought in by armored trucks to restore confidence.
Newspaper Excerpt: Through no fault of ours. the closing of the other institution and the circulation of vicious and groundless rumors started heavy withdrawals.
Source: newspapers

2. June 2, 1931 Suspension

Cause: Rumor Or Misinformation
Cause Details: Directors placed the bank in the hands of state examiners/commissioner after heavy withdrawals caused by rumors and fallout from the McCartney National bank failure.
Newspaper Excerpt: Business at the Brown County State bank suspended at this noon and notice posted in the door that the institution had been placed in the hands the state commissioner
Source: newspapers

3. October 8, 1931 Receivership

Newspaper Excerpt: Albert Karel, receiver for the Brown bank (Press-Gazette, 1931-10-08).
Source: newspapers

Newspaper Articles (15)

1. June 2, 1931 Green Bay Press-Gazette Green Bay, WI

Article from Green Bay Press-Gazette, June 2, 1931

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WILD RUMORS REASON, SAYS SCHULTZ Heavy Withdrawals Followed McCartney Disaster, Report. Business at the Brown County State bank suspended at this noon and notice posted in the door that the institution had been placed in the hands the state commissioner of is the second bank close in the city within The action taken by the board according to ly heavy series of withdrawals. which started immediately upon the ing the McCartney National bank last Thursday morning. "Through no fault of ours. the closing of the other institution and the circulation of vicious and groundless rumors started heavy withdrawals." Schultz said this afternoon, such an extent that the felt that the safe they could was any with dence that our depositors will lose nothing Unable To Give Figures What follow next depends the action whose representative probably arrive tomorrow. receiver may appointed the bank's liquidated. some other arrangeeffected. The cashier stated that he was able give any the bank's condition this time. would predict what any, would fall the the County count will be way affected by the closing bank, cept that its office not be today. Arrangements giving patrons of the discount company ingress and egress will be soon the banking commissionrepresentative arrives. There no connection between the the discount company, declared. except that they space the same building. Frank former councilman manager the company. Kittell Is President Officers the Brown County State John Kittell, president: Fred Falck, assistant with Ed. Garot, and Kruger, up the in 1918, first the old Quatsoe buildon present after this burned in 1923, the presbanking erected. the business carried the old Vocational school building. where the Northern building now stands. bank's statement. as of Mar. 1931, showed checking deposits $274,552.70 and savings deposits This sum. with the capital, $20,000 surplus, other items, brings the total liabilities to $907,972.02. This is balanced by the resources, follows: loans discounts, hand, and due from federal and proved reserve banks, $112,763.90; bonds unpledged. pledged, other stocks and securities $8,940: furniture and fixtures. and other items bringing the total to The closed institution contained $25,000 city funds county funds, secured personal bonds given by the directors. The bank also was for approximately $12,000 Community Chest funds. and approximately $500 "Poppy proceeds of the American Legion Auxiliary

2. June 3, 1931 Two Rivers Reporter Two Rivers, WI

Article from Two Rivers Reporter, June 3, 1931

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NEAR RUNS ON BANKS AT BAY CITY AVERTED Civic Leaders Express Confidence in Banks With Radio Talks GREEN BAY, Wis. (AP) Runs which threatened Green Bay banks after closing of the Brown County State Bank for check by state officials today appeared halted as prominent citizens and bank officials joined, in expressing confidence in the solidarity of the institutions. Near Run Averted near run of several banks was averted yesterday when the Kellogg Citizens' National Bank kept its doors open 45 minutes after regular closing hours to enable customers to make withdrawals if they wished. The action, bank officials said, gave citizens the assurance necessary to halt the run. In radio addresses last night, A. Fontaine lawyer and politician: Dr. R. Minahan and Judge Carlton Merrill expressed their conviction that the six Green Bay banks were in sound shape and promised to deposit all their available funds in local banks as indicative of their belief. Several Start Withdrawals Several Green Bay citizens started withdrawing funds from their accounts after the Brown County Bank shut its doors. Cashier Schultz said the bank was closed merely because the directors wished an accounting result of heavy withdrawals following the closing of the McCartney Bank last Thursday An order from the Green Bay Clearing House Association, requiring from one to three months notice on withdrawal of savings deposits, today also appeared to have halted heavy run on the six local banks. More than $500,000 in currency, rushed here by armored trucks. express and parcel post from Milwaukee and Chicago, was stacked conspicuously on bank counters to lend confidence to patrons.

3. June 3, 1931 Beaver Dam Daily Citizen Beaver Dam, WI

Article from Beaver Dam Daily Citizen, June 3, 1931

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CONFIDENCE EXPRESSED IN BANK WHICH CLOSED GREEN BAY, speaklast night in the of Green Bay's and urged not bebecause the Brown County State Bank closed its doors yesterday Less than week ago the McCartney National here suspended business because of "frozen assets," and which followed suicide of its president, George Heavy deposits also for directors placing the Brown County Bank in the hands of it announced. Cashier Schultz said the bank's condiwas would not the customers said depositors would not cent through the Prominent and profesmen of the city spoke over the radio citizens in Green Bay banks. They all pledged themselves to place all of available funds the banks here.

4. June 3, 1931 Green Bay Press-Gazette Green Bay, WI

Article from Green Bay Press-Gazette, June 3, 1931

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SAY DEPOSITS EXCEEDING Conditions Much Improved, Officials Think Crisis Past. Like the tides in the Fox river, the flood of money swept out of Green Bay banks yesterday afternoon by the wind hysteria was checked this morning by the calm of saner judgment. by noon the flow, in and out, was back to normal proportions. When the banks opened at o'clock. fairly large number of depositors waiting at the doors of For the first hour. this number in but from 10 o'clock on It steadily diminished until at noon it had assumed only its average business-day proportions. The chain of circumstances which resulted in the run on the banks of the city afternoon. started two weeks with the suicide the National bank. Richardson's Thursday morning. the signal for "silent the McCartney National bank which ended with closing week later. "silent other banks. and apparently the Brown County bank. which closed its doors about noon. Tuesday. Believe Crisis Past Within hour after the closing of Brown County all of city's financial institutions facing serious and open runs. All howweathered storm yesterday afternoon. and this morning. and noon today bankers were generagreed the crisis was and confidence had been restorSome bankers that. during the latter part the All agreed that. barring an unprecedentrevival of the fear hown by the crowds yesterday ternoon, the effectively broken. and no further trouble need Nevertheless, large shipments currency were received mail and express from correspondent banks Milwaukee Chicago this morning, and all six institutions were prepared meet unusual demands. Late indications however, that the precautions happily unnecessary. Several contributed to end the orgy the frenzied that Green Bay has ever seen. most was tion the Green Bay Clearing House association. taken meeting in the directors' room of the izens bank. Tuesday night, under which banks agreed demand thirty. and ninety days' notice the withdrawal of savings deposits. Clearing House Statement Since bulk of on savings accounts, this decision put virtual to the majority withdrawals. Many depositors inclined argue, but the ployes pointed out the provision in the the ings printed in each pass book. giving the bank right demand written notice desired The statement of the Clearing House "The Green Bay Clearing House Continued on Page 17.

5. June 3, 1931 The Sheboygan Press Sheboygan, WI

Article from The Sheboygan Press, June 3, 1931

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Government And Our Banks Are Safe When the McCartney bank closed its doors last Thursday in Green Bay following the suicide of the president rumors were put in circulation, one of them groundless, resulting in a every the Brown County State Bank yesterday, and a near run on run the others. The Kellogg Citizens National Bank kept on its doors open minutes longer yesterday afternoon order to instill confidence, and leading business and men of that city with unlimited wealth expressed their confidence and last night went on the radio and addressed the peoof their home city. The stability of city is based on the soundness of its banks, and we can say without fear of contradiction that Green Bay is represented by banking institutions and men of the highest caliber. As near neighbor may we not urge the of that to the same degree of confidence people city express that they would show in their own business or in their own financial affairs? If the people of the United States as whole were to show lack of confidence in their government, if they were to acinstead of facts as advice, then the United States cept gossip would be at the of failure. The banks of this government point country the backbone of business stability, and if we withdraw run because of idle rumor our support or encourage then we will be wrecking our own future. Because here and there a bank is poorly managed is no reason why the people should lose confidence. Any attempt to withdraw funds from sound bank in Green Bay has a ten- (Continued on editorial

6. June 3, 1931 The Oshkosh Northwestern Oshkosh, WI

Article from The Oshkosh Northwestern, June 3, 1931

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CLEARING HOUSE ORDER ENDS HEAVY RUN GREEN BAY BANKS Green Bay. order from the Bay Clearing House requiring from to months withdrawals savings deposits. today appeared have halted heavy six banks the clos. the Brown County State bank check examiners More than $500,000 in rushed here by armored trucks press parcel post from Milwauand Chicago stacked conspicuously bank counters to lend confidence Anxious through the lobbies association members the opened for morning since depositors been assuaged statements prominent bankers who expressed confidence the solidarthe The banks involved the runs are Bank Green West Side State: South Side State Farmers Exchange, People's and Trust Investment Officers the clearing house sociation conferred for hours last night and evolved plan quiring 30 60 and for notice itors had taken advantage of mand rented safety deposit their money cashiers checks on or Chicago banks. Cashier Schultz the Brown County bank announced that bank was affiliated in investments with the McCartney National bank which closed its doors 21 markthe first bank failure in Green Bay in 46

7. June 3, 1931 The Oshkosh Northwestern Oshkosh, WI

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EXPRESS CONFIDENCE IN BANKS AT THE BAY Green Radio speaker night expressed confidence in the condition of Green Bay's banks and urged citizens not to become alarmed because the Brown county State bank closed it. vesterday Less han week ago the ational bank here pended business because of "frozen and heavy withdrawals which followed suicide of George A Richardson Heavy withdrawal of deposits were

8. June 3, 1931 The Oshkosh Northwestern Oshkosh, WI

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also responsible for directors' placing the Brown county state bank in the hands of state examiners, it was announced But Cashier A. Schultz declared he said depositors would not lose cent through the closing Prominent business and professional men of the city spoke over the radio urging citizens to keep their money Green Bay banks They all pledged themselves to place al. of their own available funds in the banks here.

9. June 3, 1931 Wausau Daily Herald Wausau, WI

Article from Wausau Daily Herald, June 3, 1931

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Today $500,000 Counters of on Institutions Lend Confidence to Patrons BANKS OPEN IN SOUTH Reopening of 159 Banking Houses Put $39,000,000 In Circulation in Dixie Green Bav, order the Green Bay Clearing House association. requiring from to three months notice withdrawal of deposits, appeared halted heavy the closthe Brown county state bank for check by state More than $500,000 in currency, rushed here armored trucks, press parcel post from Milwauand Chicago, stacked spicuously on bank counters to lend confidence to patrons. Anxious crowds milled through the bank lobbies reading notices posted by association members when the bank opened for business this morning. Disturbances were nature, however, since fears depositors previously had been assuaged somewhat statements prominent citizens and bankers expressed confidence the solidarity of the institutions. Banks Involved The banks involved the runs the National: Bank Green Bay; West Side State: Farmers Exchange; the People's Sayings and Trust Investment Officers the clearing house association conferred for hours night evolved the plan of quiring and day notices Scores of depositors taken advantage demand withdrawal privileges, rented safety deposit boxes their money had accepted cashiers' checks Milwaukee Chicago banks. Cashier Schultz the Brown county bank announced that his bank affiliated investments with the McCartney national bank which closed its doors marking the first bank failure in Green Bay forty-six years. near several banks averted yesterday when the Kellogg Citizens' National bank doors open minutes after reguclosing enable custommake withdrawals they wished. The action, bank officers gave citizens the assurance necessary to halt the Radio Addressed In last night, Fontaine, prominent lawyer and litician; Minahan and Judge Carlton Merrill expressed their conviction that the Green Bay banks shape deposit all their available funds local banks indicative of their belief. Several Green Bay citizens startwithdrawing funds from their accounts after the Brown county bank shut doors. Cashier Schultz said the bank was closed merely because an accounting result of heavy withdrawals the closing the McCartney National bank last Thursday. "Circulation of groundless and vicious rumors the depositors' uneasiness." he said "They will not lose anything result of the directors' action.' Atlanta, Ga., June ually pocketbook the south is being reopened scores banks resume after being forced close their doors in 1930 and early weeks of 1931. Since January deposits of more $39,000,000 been restored circulation with the reopening 159 banking houses Arkansas, Mississippi, North Carolina, Ken tucky and Florida. Tennessee, where legislative investigation being made alliances two bank: with deposits amounting have twenty banks with deposits $13,577,500 were forced suspend operations. Four hundred and eight banks capitalized closed the other five states and tied up totaling $190,270,000. Institutions permanently closed total Love. Mississippi superintendent of banks, says banks probably resume within thirty days.

10. June 3, 1931 The Post-Crescent Appleton, WI

Article from The Post-Crescent, June 3, 1931

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Runs Halted On Banks Green Bay $500,000 in Brought to Institutions Restore Confidence Green order from the Green Bay Clearing House assoclation, requiring from to three months notice withdrawal of sav. ings deposits, today appeared halted heavy run on six local banks which followed the closing of the Brown County State bank for check state currency, rushed here by armored trucks, press parcel post from kee Chicago, was stacked spicuously on bank counters lend confidence patrons. crowds milled through the bank reading the notices posted the association members when the opened for business this morning. Disturbances nature, however, since fears depositors had been assuaged by statements of prominent and bankers confidence in the solidarity the The banks involved in the the National; Green Bay; Side State; South Side Farmers and the Savings and Officers the house for hours night and evolved plan of quiring and for notice had taken advantage demand withdrawal rented safety deposit boxes for their money accepted cashier's checks on waukee Chicago banks. Cashier Schultz of the Brown County Bank that his bank affiliated in ments with the McCartney National bank closed doors May marking the first bank failure Green Bay years. run on several banks was averted yesterday when the Kellogg Citizens' National bank kept its doors open minutes after regular closing hours to enable customers make withdrawals they wished. The tion. officers said, citizens the assurance necessary to halt the radio addresses last night, and tician, and Judge Carlton expressed conviction that Bay banks shape and deposit all available funds cal banks as indicative their lief.

11. June 3, 1931 News-Record Neenah, WI

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COUNTY Green last night expressed confidence in the condition of Green Bay's banks and urged citizens not to become alarmed because the Brown CounState bank closed its doors yesterday. Less than week ago the Cartney National bank here pended business because and heavy withdrawals which followed the of its president, George ardson. Heavy withdrawal of deposits also responsible for directors placing the Brown county bank in the hands of state examiannounced. But Cashier Schultz said that the bank's condition was sound. The bank would not have closed the customers had not become panic stricken, Schultz declared. He said depositors would not lose through the closing. Prominent business and fessional men the city spoke over radio urging citizens keep their money in Green Bay banks. They all pledged themselves to place all their available funds in the banks here.

12. June 3, 1931 The La Crosse Tribune La Crosse, WI

Article from The La Crosse Tribune, June 3, 1931

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Half Million In Cash Rushed to Green Bay to On Six Banks BAY, Wis. der from Green Bay clearing house association. requiring from three months notice withdeposits, day appeared to have halted heavy six local banks which followclosing the Brown County State bank for check by state More than in rushed here press parcel post from kee and Chicago, conspicuously on bank to lend confidence Anxious milled through the bank lobbies notices posted by the members when banks opened for business Wednesday Disturbances of minor nature, however, since fears of depositors previously had been assuaged somewhat by statements prominent citizens and confidence in the solidarity of the institutions. The banks involved in the runs the National Bank Green West Side South Side State: Farmers' Exchange, the People's ings and Trust Investment company. Notice is Required Officers of the clearing house sociation for hours Tuesday night and the plan requiring 60 and 90 day tices Scores positors taken advantage demand withdrawal privileges, (Continued Col.

13. June 3, 1931 Kenosha News Kenosha, WI

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Give Speeches to Back Banks Radio Broadcasts Express Confidence in Green Bay Banks Green Bay, Wis. 1 (U.P.) Radio speakers last night expressed confidence in the condition of Green Bay's banks and urged citizens not to become alarmed because the Brown County State Bank closed its doors yesterday. Less than week ago the McCartney national bank here suspended business because of "frozen assets," and heavy withdrawals which followed the suicide of its president, George A. Richardson. Given Over to Examiners Heavy withdrawal of deposits were also responsible for directors placing the Brown County bank in the hands of state examiners, it was announced. But Cashier A. F. Schultz said that the bank's condition was sound. The bank would not have closed if the customers had not become panic stricken, Schultz declared. He said depositors would not lose a cent through the closing. Prominent business and professional men of the city spoke over the radio urging citizens to keep their money in Green Bay banks. They all pledged to place all of their own available funds in the banks here.

14. October 8, 1931 Green Bay Press-Gazette Green Bay, WI

Article from Green Bay Press-Gazette, October 8, 1931

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Economic Relief Plan of President Approved Here BULLETIN generally and quickly the house of put into effect. ler Page, clerk repretoday produce The fact that money could be for the grand jury Bish- tained under the president's plan James anti- dividends depositors op pay Smith the report banks without waiting frozen penditures filed him by the paper become liquid. was espedemocrats. cial significance and cheer to this Page explained the grand city. that house adopted The important thing in President forbade removal any records Hoover's leadwithout express permission the and great banking house. throughout seemed Bankers, and executives and busimen were optimistic found Green Bay Thursday, that President plan unanimous opinion to the restorconfidence. Every banker and business man interviewed the that confidence the opinion, to situation, and that the calcuto far toward restoring conExpressions from bank cashiers and business executives Creen Bay Fine Constructive Albert Karel, receiver for the Brown bank, factor Wisconsin bankgroups: "President Hoover has provided the leadership which people been looking for and pecting him. His move the right direction. fine and effect will be felt most immediately upon the banks learning that huge fund can depended not fund actually to arrived points because the plentiful idle which can loosened and the the the the outlined. has put happy The big thing perhaps that definitely signified its willingness step front help liquidate frozen assist banks confidence and business. leadership. operation the president's will be helpful Green Bay The will distributed the same method that merchandise And Green Bay distributing center. governwished distribute canned goods. instance, wanted hurried would employ the means its the wholesale channels. The Green distributing banks of this credit.' Utilize Resources Asked to state the direct effect Brown County State the receiver said that there was little of what called "frozen" sets in the present situation at that "The State Banking idea and exactly from the Mr. Karel. whole great idea to up secure and substantial fund present resources can utilized by the banks instead of held over and against any but easily incited ness with normal confidence, and normal business time the offspring. The president fully realizing these facts has proceeded exactly right direction and his leadership may lead Continued on Page 19, Column

15. October 12, 1931 Green Bay Press-Gazette Green Bay, WI

Article from Green Bay Press-Gazette, October 12, 1931

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$19,872 JUDGMENT IS ENTERED AGAINST J. H. TAYLER, TODAY Brown County State Bank Receiver Asks Sale of Collateral. Judgment for against H. Tayler entered Circuit brought acting of the Brown bank. The sum 032.75, plus attorneys' fees and court executed by Tayler to the Brown State form the basis 000. was made Mar. 16. matured 14. without payment. the plaintiff for was and fell Aug 29, defaulted, the first Tayler of the Real and shares the McCartney National cured shares of the NorthPaper of the Northern Finance the New Franken and 20 of the Northern Bond Co. The plaintiffs ask sale of this collateral