8399. First State Bank (Clearwater, MN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
September 23, 1931
Location
Clearwater, Minnesota (45.419, -94.049)

Metadata

Model
gpt-5-mini
Short Digest
29b4b178370d704f

Response Measures

None

Description

Multiple newspaper reports (Sept 23–25, 1931) state the First State Bank of Clearwater (Wright County, MN) was closed by the state banking commissioner as one of five affiliated 'Orwoll' chain banks. The closures followed the earlier closing of the Clarkfield (Clarksfield) key bank and subsequent heavy runs on the affiliated banks. Closure appears to be an official action by the state banking department and the banks remained closed.

Events (1)
1. September 23, 1931 Suspension
Cause
Government Action
Cause Details
State banking commissioner announced closure of five affiliated Orwoll-chain state banks after runs developed following the prior closing of the Clarkfield key bank; the department and boards decided to close and conserve assets.
Newspaper Excerpt
The fifth bank was the First State Bank of Clearwater, Wright county, with deposits of $98,000... following the closing of the Clarksfield bank, heavy runs developed the other banks of chain...
Source
newspapers

Newspaper Articles (3)
1. September 23, 1931 The Albert Lea Tribune Albert Lea, MN
Article from The Albert Lea Tribune, September 23, 1931

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Article Text

CLOSES 4 COUNTIES Institutions With $1,300,000 In Deposits In Orwoll Chain Bank Closing Causes Run. Paul, Sept. state banks in four ties with total deposits of almost $1,300,000 were closed today Peyton, state banking commissioner, announced. Four of the banks, according to Peyton, belong to affiliated chain in which Orwoll of Minneapolis held controlling interest. Banks That Closed They the Farmers State Bank Hanley Falls, the Farmers State Bank Echo, Yellow Medicine county, the Cottonwood State Bank Cottonwood, Lyon county representing total deposits of and the Maynard State Bank county with The fifth bank was the First State Bank of Clearwater, Wright county, with deposits of $98,000. fifth bank of the so-called Orwoll chain, the Clarkfield State Bank of Clarkfield, Yellow Medicine county, was closed Monday. bank with deposits of described by Peyton as the bank of the affiliated chain. Runs Follow Closing "Owing to an affiliated ership in the ley and Cottonwood banks, the department has been obliged to announce that the board of directors of those banks have taken definite action and decided to close institutions,' Commissioner Peyton said. "Immediateafter closing of the Clarkfield State bank, heavy runs developed the other banks of chain cause the public in the towns in banks were located thoroughly conversant with the fact that the same ownership controlled all the institutions and this developed lack of confidence.' directors of these institutions believed was more desirable to close the banks immediateand conserve assets."

2. September 23, 1931 The Brainerd Daily Dispatch Brainerd, MN
Article from The Brainerd Daily Dispatch, September 23, 1931

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Article Text

THEM UNITS, CLOSING OF BANK CAUSES RUNS ECHO. HANLEY FALLS, COTTONWOOD UNITS St. Paul, Minn., Sept. of five banks, four of them bers of chain controlled by Orwoll, Minneapolis, was announced today by N. Peyton, state banking The banks are in four counties and had total deposits of $994,000. The closing of four banks followed the closing of the key bank the chain, the Clarksfield State bank, with deposits. Those closed are: The Farmers State Bank of Echo, Yellow Medicine county with deposits $169,000. The Farmers State Bank of Hanley Falls. Yellow Medicine county with deposits of $213,000. The State Bank, Lyon county, with deposits of The State Bank, Chippewa county, with deposits of The First State Bank of Clearwater, Wright county, with deposits of 000 The first four were members of the Orwoll chain. "Owing to an affiliated stock ship in the banks mentioned, the department of banking has been announce that the board directors of those banks taken definaction closing the Peyton said. following the closing of the Clarksfield bank, heavy runs developed on the banks at Echo, HanFalls and Cottonwood because the public was thoroughly with the fact that the same ownership trolled all these

3. September 25, 1931 The Minneapolis Journal Minneapolis, MN
Article from The Minneapolis Journal, September 25, 1931

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Article Text

Four Orwoll Banks, One Other Closed Five state banks in four counties, four of them under the stock control of S. Orwoll of Minneapolis, total deposits of approximately $1,500,000 were closed today, according to an of John N. Peyton, state bank comThe banks closed are the FarmState Bank of Hanley Falls and the Farmers State Bank of Echo in Yellow county, the Cottonwood State Bank of in Lyon county, the First State Bank of Clearwater in Wright county, and the State Bank of Maynard in Chippewa county. fifth bank of the so-called Orwoll chain, the Clarkfield State Bank of Clarkfield, in Yellow Medicine county, was closed Monday. This institution was described the key bank of the chain. Mr. Peyton that after the close of the Clarkfield bank heavy runs developed on the other institutions.