9473. First State Bank (Askov, MN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 3, 1933
Location
Askov, Minnesota (46.187, -92.782)

Metadata

Model
gpt-5-mini
Short Digest
b0ef7c9e

Response Measures

None

Description

The bank voluntarily closed its doors to conserve assets because cash reserves fell below legal requirements amid heavy withdrawals; the state banking department put the institution into liquidation and a receiver was appointed. No run is described in the articles; by June 1933 the bank remained defunct and a receiver change is reported.

Events (2)

1. January 3, 1933 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Cash reserves fell below legal requirements after heavy withdrawals during the Depression; directors closed to conserve assets and state banking department took charge.
Newspaper Excerpt
The First State Bank of Askov ... closed its doors Tuesday night to conserve its assets. ... the cash reserve had dropped below the legal requirements and therefore the action by the directors of the institution was advisable. ... the state banking department is to be in charge of the liquidation and a receiver will be appointed.
Source
newspapers
2. June 27, 1933 Receivership
Newspaper Excerpt
Arthur Ruber ... came Tuesday to take the place of A. P. Rotert as receiver of the local defunct bank and the Denham Farmers Bank. Mr. Rotert has been in Askov since soon after the First State Bank closed, but was replaced this week by the banking department.
Source
newspapers

Newspaper Articles (2)

Article from Askov American, January 5, 1933

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Article Text

BANK CLOSES TO CONSERVE ASSETS First State Bank of Askov Closes Tuesday Night; Considered Consolidation, Re-organization. The First State Bank of Askov, having felt the sting of the hard times when people who have had money saved up were forced to withdraw these funds faster than money could be realized on collateral held by the bank, closed its doors Tuesday night to conserve its assets for the depositors. Although the bank is considered solvent the cash reserve had dropped below the legal requirements and therefore the action by the directors of the institution was adviseable. A representative of the state banking department came to Askov Tuesday and a meeting was held with about 20 business men and leaders in the community Tuesday night to undertake to keep the bank open, but to no avail. Possibly steps will be taken to re-organize and re-open, but no definite plans have as yet been made. In the meantime the state banking department is to be in charge of the liquidation and a receiver will be appointed. The First State Bank was organized in 1911 with L. C. Pedersen as president, J. J. Howe vice president and Anton Gravesen as cashier. The officers at the present time are, Anton Gravesen, president; V. S. Petersen, vice president and L. Byron Olsen, cashier. The capital stock is $15,000 with the surplus fund $15,000. The deposits subject to check are about $47,000, savings deposits and time certificates totaled about $48,000.


Article from Askov American, June 29, 1933

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Article Text

ASKOV Mr. and Mrs. Geo. Hansen of Tyler, are visiting with friends in this community. Miss Edith Empey of Hinckley, visited last week with Mr. and Mrs. Manford Nelson. Valdemar Ohlrich of Chicago, came Tuesday to visit at the P. P. Kilstofte home for a few days. J. M. Petersen of Independence, Iowa, came last week for a visit at the Chr. Hyldahl home. Miss Lela Chase and Miss Viona Jenner of Minneapolis, spent the first of the week at the Manford Nelson home. Mrs. Harry Lang and children of Omaha, Nebr. came Monday for an indefinite visit at the Soren Jensen home, and with other relatives and friends. In renewing her subscription to the Askov American, Mrs. L. P. Olsen, Clinton, Iowa, former resident of Askov a number of years ago, sends greetings to the community. Miss Helen Petersen and Thorvald L. Sorensen left Sunday for Tyler, where the marriage of Mr. Sorensen to Miss Marie Ries, former member of the local school faculty, took place Wednesday evening. Henry Simonsgaard, who has been employed by the North Star Specialties Mfg. Co. of Minneapolis, returned to Askov Monday night, having been laid off. He has been engaged in making portable beer coolers. Mrs. J. C. Jensen, Mildred Sandager, Elsie Thomsen, and Edwin Sorensen were among those who attended the Young People's convention at Tyler last week. Harry Jensen accompanied them as far as Minneapolis, where he joined his parents. Mr. and Mrs. Magnus Hansen, Mrs. Bendt Jorgensen, Mrs. Anine Mogensen, Svend Andersen, J. P. Sorensen, and John H. Sorensen were in Minneapolis Tuesday to attend the funeral of Mrs. Tom Christensen. They returned to Askov the same evening. Anton Sebald of the local Ford garage, who was taken to the Cloquet hospital Sunday of last week to submit to an emergency operation of appendicitis, is reported as gradually improving. His many friends are anxious to have "Tony" back in his old stand. A fair sized crowd gathered at Grindstone lake Sunday to hold a picnic for the Pine county graduates of the Agricultural school. The Askov male chorus under the direction of Mrs. Alfred Nielsen, was among the performers during the day's program and made a big hit. Kittenball, swimming, and picnicking were the order of the day. The annual school district meeting of District No. 71 will be held in the school house on the third Tuesday night of July-July 18- and it is time now to think about who will fill the places on the board now held by Mrs. Frede Stottrup and Jens B. Jensen. Those desiring to run on the ballot should file their names with the clerk, A. W. Conaway, 12 days before the meeting. Arthur Ruber of Little Fork, near International Falls, came Tuesday to take the place of A. P. Rotert as receiver of the local defunct bank and the Denham Farmers Bank. Mr. Ruber has been farming of recent years but has had experience in bank reorganization work and was at one time in the banking business. He also served at one time as appraiser for the Rural Credit Bureau. Mr. Rotert has been in Askov since soon after the First State Bank closed, but was replaced this week by the banking department. A bad accident was narrowly avoided Sunday afternoon in front of the Andrew P. Jessen home north of the village when the Chevrolet coach driven by Dr. A. L. Arends collided with the sedan driven by J. P. Sorensen. Dr. Arends was coming from the north and due to the hill north of the lane leading from the Jessen place was late in seeing the Sorensen car having just emerged from it, going in the same direction. However, he swerved his car with presence of mind in time to avoid a bad smashup. As it happened no one was badly hurt and the cars received only minor bruises, the doctor's car seemingly getting the worst of it. Mr. and Mrs. Holden Hansen and Mrs. Sorensen were in the Sorensen car and received somewhat of a jar. Yes, it is hot. Many are the varied opinions as to the height of the mercury in the thermometers, some claiming their temperature guage recorded 100 degrees. Suffice to say, everyone knows that the weather has been uncomfortably hot and consequently many lake resorts have benefited thereby. Tuesday night this vicinity was visited by a wind and rainstorm which was rather severe and which caused some damage in blowing over small buildings, trees, and causing other damage. The silo on the George