Decorah State Bank - Decorah, IA

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: January 3, 1925
Location: Decorah, Iowa (43.303, -91.786)

Metadata

Model: gpt-5-mini
Short Digest: 9da5f743

Response Measures

None

Description

A depositor run occurred in early January 1925 and was ended when the controlling president resigned and relinquished part of his stock; bank did not suspend and resumed normal business with reinstated officers.

Events (1)

1. January 3, 1925 Run

Cause: Bank Specific Adverse Info
Cause Details: Depositors angered by the president dismissing the cashier and exercising controlling influence; loss of confidence in management triggered withdrawals.
Measures: Controlling president resigned and relinquished shares; cashier and assistant restored to positions; new president elected (Gilbert Soland/E. R. Haines depending on report); depositors returned funds.
Newspaper Excerpt: A run on the Decorah State bank was terminated today after the retirement of A. Engbertson as president and the reported absorption of his 261 shares of stock by other stockholders.
Source: newspapers

Newspaper Articles (3)

1. January 3, 1925 The Salt Lake Tribune Salt Lake City, UT

Article from The Salt Lake Tribune, January 3, 1925

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Article Text

Dismissal of Cashier Causes Run on Bank DECORAH, Iowa, Jan. run on the Decorah State bank was terminated today after the retirement of A. Engbertson as president and the reported absorption of his 261 shares of stock by other stockholders. Ten days it became known that Mr. Enbertson, ago who controlled the bank, had dismissed B. Haines, the without consulting other Depositors, angered over the began on the last Tuesday throughout Wednesday and sumed this morning after the New Year As of the retirement of Mr from the presidency, Mr Haines and Johnson, assistant cashier who had resigned, were restored to their positions. Gilbert Soland was elected president and depositors began returning -their money to the bank.

2. January 3, 1925 The Pantagraph Bloomington, IL

Article from The Pantagraph, January 3, 1925

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Article Text

RUN ON BANK STOPS AS PRESIDENT RETIRES Jan. 2-A run on the Decorah State bank was termiafter the of R. H. reported of of his shares of stock stockTen ago It became known that Mr. controlled bank, dismissed R. the without Depositors angered the began run the last Tuesday Wednesday and was reresult of the retirement of the the Mr. Haines and had resigned, were to their po. Gilbert Soland elected president returning their money to the bank.

3. January 7, 1925 Grant County Herald Lancaster, WI

Article from Grant County Herald, January 7, 1925

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Article Text

Run on Decorah State Bank is Brought to End DECORAH, Ia., Jan. 3.-Resumption of the run on the Decorah State bank, which started Wednesday, was averted this morning when Richard Engbretson resigned as president of the institution and agreed to relinquish his controlling interest in the bank. E. R. Haines, who has been cashier of the bank for eight years or more and who has the confidence of the people of Decorah and vicinity, succeeds Engbretson as president of the institution. Before the doors of the bank were opened this morning, a long line of persons had formed in the street, all intent on withdrawing their money. Following Engbretson's announced resignation, the run came to an abrupt end and those who had withdrawn their funds from the bank were returning to deposit their money. Engbretson, up to today, controlled 51 per cent of the bank's stock. He now controls but 36 per cent, having surrendered 15 per cent of his holdings to the directors, it is said.