State Bank - Mauston, WI

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: August 31, 1932
Location: Mauston, Wisconsin (43.797, -90.077)

Metadata

Model: gpt-5-mini
Short Digest: 45af33e2

Response Measures

None

Description

Article (Green Bay Press-Gazette, 1932-08-31) reports the State Bank of Mauston declared a 'holiday' (moratorium / suspension of business) to protect depositors because of unemployment, shrinking deposits and increased withdrawals during the depression. No explicit run (large crowd or panic) is described, and no explicit permanent closure or receivership is mentioned. The suspension appears temporary (moratorium) and thus most likely to result in reopening, but the article does not state a reopening—classification assumes a temporary suspension with intent to resume business.

Events (1)

1. August 31, 1932 Suspension

Cause: Local Shock
Cause Details: Unemployment in the community, moderate shrinkage of deposits and increase of withdrawals tied to the economic depression; moratorium authorized to stabilize the institution.
Newspaper Excerpt: State bank of Mauston declared holiday to protect its depositors, the banking department announced today.
Source: newspapers

Newspaper Articles (1)

1. August 31, 1932 Green Bay Press-Gazette Green Bay, WI

Article from Green Bay Press-Gazette, August 31, 1932

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Article Text

REORGANIZATION IS HELD LAST EVENING Officers and Directors Are Expected to Be Announced Soon. The Farmers' Exchange bank will open for business morning. announced barring totally unforeseen and unlikely eventuality. Arrangements for the reopening completed of stockholders held last evening in the North Side Community hall. whereby the 100 per cent stock settled the satisfaction of the state banking department. Consent to delayed payment of deposits already had been secured from 80 per depositors, and there is nothing further the reopening. Officers Named No announcement has been made the election officers of the reorganized bank, although pected such an be forthcoming The reorganization was largely effected by the efforts stockholders' committee consisting Fischer, Fontaine and Murphy These arranged for the collection voluntary 100 per cent assessment stock, and pool fund for paying the ments stockholders unable to pay their will receive 75 per cent their over four-year period, with deposits the The bank may pay off rant. businessmen need ready their certificates collateral for loans. Pitman Leaves City Slow and questionable assets have been from the bank placed trust fund, from which dividends up the final 25 per cent deposits may be paid whenever trustees deem proper. Pitman. chief examiner for the state banking department, has been here his staff since bank suspended business two ago Monday. left this afternoon Madison, stating that his work was two men to check detail. action brings "happy ending" the story the city the depositors the state partment in third closing the with the hardship which resulted. the examinfelt that shrinkage of the bank's assets had progressed where to permit further withdrawals would unwise. They did not wish to close the bank, under passed by the legislature. Mayor John Diener declared ten-day "holiday". The bank thus could cline do business and still retain its status bank. the meantime. efforts immediately launched toward reorganization. Depositors Consented The state department prescribed two conditions reopening first, payment of voluntary 100 per cent assessment by stockholders, ond. consent depositors to delayed payment deposits. Consent the depositors was secured meeting urday coupled with repeated appeals through the press, sonal canvass Signing holders of cent automatically bound the other cent. When seemed that some of the stockholders be unable pay their group businessoffered to take up the stock those failing However, the stockholders themselves. through their committee took over this and announced that pledges had secured for the full amount. Before permitting reopening. howthe state had sured pledges would promptly Checking personal statements and collateral required Diener tended the holiday for five days, to Final were made last night's meeting. MADISON BANK MORATORIUMS ity State Bank, with deposits today entered period suspended business, during which state banking will work plan stabilization for the stitution. The moratorium was authorized by Mayor Schmedeman at request the bank's directors explained because unemployment in the community moderate shrinkage deposits and increase of withdrawals experienced. The is merely economic depression, counsel bank The bank's recently were granted request for $100.000 loan from the Finance poration. but decided not to accept the money they Thomas Coleman is the bank: and fred presidents: Herried. acting commissioner banking cashier; and Otis Simley, assistant cashier. IS DECLARED State bank of Mauston declared holiday to protect its depositors, the banking department announced today.