First National Bank - Clear Lake, IA

Bank Information

Episode Type: Suspension → Reopening
Bank Type: national
Bank ID: 7869
Charter Number: 7869
Start Date: March 1, 1933*
Location: Clear Lake, Iowa (43.138, -93.379)

Metadata

Model: gpt-5-mini
Short Digest: 8914ac39

Response Measures

None

Description

Article (Kossuth County Advance, 1933-04-13) describes the First National (Clear Lake, IA) being affected by the national banking crisis/bank holiday and needing to be reopened under restrictions because it had lent out too much of its cash. No explicit depositor run is mentioned. Therefore this is classified as a suspension (government/national banking action) followed by reopening under restrictions.

Events (4)

1. August 14, 1905 Chartered

Source: historical_nic

2. March 1, 1933* Reopening

Newspaper Excerpt: had to be reopened under restrictions. We cannot know whether this bank's intact; whether had too many bad loans ... The point suggest that which cannot the current uidity be considered the victim of bad banking.
Source: newspapers

3. March 1, 1933* Suspension

Cause: Government Action
Cause Details: National banking crisis / bank holiday liquidity requirements forced banks to close or restrict payments; First National had lent out too much cash and could not meet liquidity standards.
Newspaper Excerpt: Then, unexpectedly, occurred the national banking crisis. The bankholiday came the requirement that banks without restrictions possess high degree liquidity. The First National lent too much of its cash to be able meet this condition.
Source: newspapers

4. May 10, 1934 Voluntary Liquidation

Source: historical_nic

Newspaper Articles (1)

1. April 13, 1933 Kossuth County Advance Algona, IA

Article from Kossuth County Advance, April 13, 1933

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Article Text

entitled the benefit of the doubt one the utmost of success. AS SECOND real danger that congress, the the slow processes Postoffice Algona, Iowa, under the safe will the upset of March and rush the country blindly into some kind TERMS OF SUBSCRIPTION unsafe inflation which will wind in untold disaster. Buffalo Elmore. West all other Postoffices. for papers notice time extended writing WE LIQUIDITY IN Some of advertisements which banks reopened under strictions publishing the carry human appeal. At Clear Lake when 1932 opened there banks. One the old Cerro Gordo State. the oththe First National. The Cerro Gordo State had generation been Rock of but January 20. 1932, closed. The First National had opened the year cash There been drought In 1931 and the lack crops coupled with the failure the Gordo bank drastic credit The of the munity fell on the First National. In this emergency the bank dertook pursue liberal policy meet legitimate for credit. Between February 1932. January 1933. $104,000 funds. can probably be without much geration that its action kept community its feet. performvital service. Then. unexpectedly, occurred the national banking crisis. The bankholiday came the requirement that banks without restrictions possess high degree liquidity. The First National lent too much of its cash to be able meet this condition. had to be reopened under restrictions. We cannot know whether this bank's intact; whether had too many bad loans: whether temporarily regards liquidity had served its community The point suggest that which cannot the current uidity be considered the victim of bad banking. In the end there may be some question liquidity not present being the proper degree of liquidnot fixed varies the which abnormal. would seem. that in normal times the emphasis laid high liquidity would deprive banks much of their usefulpast ness to the communities they serve.