3501. Bank of Spirit Lake (Spirit Lake, ID)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
September 1, 1933*
Location
Spirit Lake, Idaho (47.966, -116.869)

Metadata

Model
gpt-5-mini
Short Digest
4d102febb53394c3

Response Measures

None

Description

Articles (Spokane Chronicle, 1933-08-03) list the Bank of Spirit Lake among twelve affiliated 'country banks' that will reopen in connection with a reorganization of the Old National Bank/Union Trust under conservatorship of the comptroller and RFC. The articles refer to a prior suspension but do not describe any depositor run. Reopening is expected by September 1933. I classify the episode as a suspension followed by reopening; cause appears tied to conservatorship/government action rather than a depositor run.

Events (2)
1. September 1, 1933* Reopening
Newspaper Excerpt
Twelve affiliated Inland Empire country banks will reopen with the Old National ... Bank of Spirit Lake, Idaho ... Observers predict the bank will reopen by September
Source
newspapers
2. * Suspension
Cause
Government Action
Cause Details
Bank was placed in conservatorship/reorganization associated with the Old National Bank and Union Trust; deposits were held at suspension and a reorganization plan was prepared with approval of the comptroller and RFC.
Newspaper Excerpt
40 per cent of deposits at the time the bank suspended
Source
newspapers

Newspaper Articles (3)
1. August 3, 1933 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, August 3, 1933

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Article Text

ASK DEPOSITORS TO GIVE O. K. TO REOPENING Reopening of the Old National Bank and Union Trust com pany will be submitted for approval of depositors Friday in letters outlining in detail the plans for reorganization approved by the comptroller of the United States treasury and directors of the Reconstruction Finance corporation. Copies will be mailed to each of the more than 18,000 depositors, A W. Witherspoon, conservator, announced today. The bank is expected to reopen with between $7,000,000 and $8,000,000 of deposits This will include 40 per cent of deposits at the time the bank suspended, plus public funds and special trust accounts now on deposit. Twelve affiliated Inland Empire country banks will reopen with the Old National The country banks, which will reopen on a 100 per cent basis, include: Open Country Banks. Creston State bank, Harrington State bank, First National bank of Medical Lake, First National bank of Moscow. Idaho, Security National bank of Palouse, Prosser State bank, First National bank of Reardan First National bank of Ritzville, State bank of Spangle. Bank of Spirit Lake, Idaho, First National bank in Sprague and First State bank of Washtucna Deposits to be released by the reopening of the country banks amount to about $3,000,000 Mr. Witherspoon and D. W. Twohy. chairman of the board of the Old National. returned just this week from Washington, D. C., where they spent three weeks working out details of the plan and securing approval of officials of the R. C. and the office of the comptroller of the treasury According to the plan. 40 per cent of deposits will be released immediately Certificates of participation in the reserved assets of the bank will be accepted by depositors for the remaining 60 per cent. These certificates will bear Interest at the rate of per and will be liquidated assets of the bank are realized upon after made by the R. C. have been repaid The certificates will be paid off in full. plus interest. before any dividends are paid to holders All of the corporation reserved plus the stock of the Old National and the ated country will be held guarantee of payment of the cer clared today he confident all was depositors eventually will receive 100 per cent of their accounts The will become fective upon of approval the writing by depositors per cent of the gross of provided

2. August 3, 1933 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, August 3, 1933

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Article Text

BANK REOPENING PLAN DRAWN UP FOR DEPOSITORS Reopening of the Old National Bank Trust will submitted for of deposiFriday outlining the plan for reorganization approved by the comptroller the United States treasury and directors of the Reconstruction Finance corporation. Copies will be mailed to each of the than depositors, A. W. Witherspoon, conservator, announced today. The bank is expected to reopen with between $7,000,000 and $8,000.000 of deposits. This will include 40 per cent of deposits at the time the bank suspended, plus public funds and special trust accoutns now on deposit. Twelve affiliated Inland Empire banks will the Old National The country banks, which will reopen on 100 per cent basis, include: Open Country Banks. Creston State bank, Harrington State bank, First National bank of Medical First National bank Moscow. Idaho, Security National Palouse, Prosser State bank, First National Reardan, First National Ritzville, State bank Spangle, Bank Spirit Lake, Idaho National Sprague and First State bank of Washtucna Deposits be released by the reopening the country banks amount to Mr. Witherspoon and W. Twohy, chairman the board of the Old National, returned just this week from Washington D. where they spent three weeks working out details of the plan and approval of officials of the and the office of the comptroller of the According to the plan, 40 per cent deposits will be released immediately. Certificates of participation in the reserved assets of the bank will be accepted by depositors the remaining 60 per These certificates will interest at the rate of per cent. and will be liquidated assets of the bank are realized upon after loans made by the repaid. The certificates will be paid off in full, plus interest, before any are paid stockholders the corporation. All plus the stock of the Old National and the affillated country banks, will be held as guarantee of the certificates and Mr. Witherspoon declared he confident all depositors eventually will receive 100 per cent of their The reorganization will become effective immediately upon approval of the plan in writing by representing cent of the gross amount deposits, as provided in the federal banking act of 1933. The date of the will depend upon the promptness with which depositors file consent the plan, Mr. Witherspoon pointed out. Open by September Observers predict the bank will reby September The reorganization has been made by loan of from the corporation as first exclusively the Chronicle Of this amount will be used for the purchase of preferred stock of the Old tional by the Investment and Securiate the bank preferred stock will be put with the security for this portion of the Another 400 will be used meet the obligations the Old tional of the date the recent bank furnish ditional funds for the rehabilitation of bank remaining of the advance chase the Old Na. affiliated now in the conservators operating the state stabilization These assets will purchased by the and Securities

3. August 3, 1933 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, August 3, 1933

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Article Text

Reopening the Old National Bank Trust will be submitted for approval of depositors Friday outlining tail the plan for reorganization proved by comptroller the United States and directors of the Reconstruction corporation will be mailed of Copies the than W. Witherspoon nounced today. The bank is expected reopen with between and 000 of deposits This include and special trust accounts on deposit Old National The country which reopen on a a 100 per cent include Open Country Greston State bank. Harrington National bank Medical First National bank Moscow Idaho, Security National bank of Palouse, Prosser bank First National of Reardan First National bank Ritzville, State bank Spangle Bank of Spirit Lake Idaho, First National bank in Sprague and First State bank Deposits to be released by the rethe country banks amount to $3,000,000 Mr. Witherspoon and D. W Twohy chairman of the board the Old National returned just this from Washington they spent weeks working out details the plan and apof of the and the office of the comptroller of the the plan 40 per of be released immediate Certificates of par Licipation in the of the bank will be accepted by depositors for remaining 60 These certificates will bear interest the rate of per and will be liquidated assets the bank are realized upon made by the R. C. have been repaid The will be paid off full plus interest before any dividends are paid stockholders of the corporation All assets the plus stock the Old National and the affillated country will be held guarantee of payment of the certificates. and Mr. Witherspoon declared today he was confident all depositors will receive 100 per cent of their The will become efimmediately upon approval the plan writing representing 75 per the gross amount of deposits as provided in Continue on three