9479. Farmers & Merchants State Bank (Austin, MN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 28, 1928
Location
Austin, Minnesota (43.667, -92.975)

Metadata

Model
gpt-5-mini
Short Digest
448767d2

Response Measures

None

Description

Articles state the Farmers & Merchants State Bank of Austin was closed by the Banking Department (Nov 1928), was later taken over by a new corporation and reopened, and by 1931 a liquidating agent was paying creditors of the closed bank (55% return). There is no explicit description of a depositor run in the texts provided; the initial closing was by the Banking Department (government action) and the bank's affairs were later liquidated, so I classify as suspension_closure (suspension by government action, eventual permanent closure/liquidation).

Events (3)
1. November 28, 1928 Suspension
Cause
Government Action
Cause Details
Closed by the state Banking Department on or about Nov. 28, 1928
Newspaper Excerpt
On the following day the Farmers & Merchants Bank was closed by the Banking Department.
Source
newspapers
2. April 22, 1931 Receivership
Newspaper Excerpt
Checks creditors of the closed Farmers and Merchants State Bank...payments will aggregate close $15,000...this will make return of 55 per cent of funds on deposit. Another payment expected be made in the near [future], predicted Weiland. (Weiland, liquidating agent.)
Source
newspapers
3. * Reopening
Newspaper Excerpt
The Farmers & Merchants Bank later re-opened, being taken over by a new corporation.
Source
newspapers

Newspaper Articles (3)
1. October 7, 1929 The Austin Daily Herald Austin, MN
Article from The Austin Daily Herald, October 7, 1929

Click image to open full size in new tab

Article Text

MAY USE AUSTIN PLAN FOR BANK Albert Lea Depositors, Officials Study Reorganization Method An effort is being made at Albert Lea to reorganize the Albert Lea State bank along lines similar to the reorganization of the Farmers and Merchants bank of this city. The reorganization of the Austin bank was a clever piece of work and reflected credit upon all those who worked for that result. The reorganization in the interest of the depositors was attained by hard work and cooperation of all concerned. The plan is one that should appeal to communities like Albert Lea. Over 1,000 people attended the Albert Lea meeting, according to. the Albert Lea Tribune which says: "Dr. M. L. Head explained that the meeting had been called, not by the officers and directors of the closed Albert Lea State bank, but by some of the heaviest depositors of the institution, He explained the meeting was a sort of get-together to discuss matters and take some steps which would be for the best interest of the depositors in general. Solon Gives Talk "Dr. Head introduced Senator John H. Hougen of Crookston. Mr. Hougen stated at the outset that he was not appearing in behalf of the banking department, but upon request of some of the depositors of the closed bank. "He explained that he had had considerable experience with closed banks during the past few years and as there had been some 135 bank failures in the Red River Valley during that period and twenty-three of these failures had taken place in his own county of Polk. "Mr. Hougen suggested that a depositors' committee be named. composed of competent citizens, well qualified to work with the temporary bank receiver, A. F. Hall, to examine the paper and learn the true situation and then report back their findings to the depositors. 'When the true situation is known by the depositors," explained Mr. Hougen "then steps of an intelligent nature, can be taken. Until the committee makes the report, nothing much can be done. The committee may find that it would be best to liquidate if the assets do not warrant reorganizing. Austin Man Explains A. V. A. Peterson of Austin was the next speaker called upon. Mr. Peterson was one of the principal citizens of Austin who made it possible to reorganize the closed bank of that city which is today doing a nice business. He explained in detall how a depositors committee was selected to work out the plan of re-

2. July 10, 1930 The Sauk Centre Herald Sauk Centre, MN
Article from The Sauk Centre Herald, July 10, 1930

Click image to open full size in new tab

Article Text

Minnesota Supreme Court Passes on Important Case Time That a Check Can Reasonably Be Held Is for Jury to Decide St. Paul, July 7-The time limit for presenting checks for payment before the drawee will be discharged from liability is usually a question of circumstances to be determined by a jury when the person issuing the check and the receiver do not live in the same city, the Supreme court held today. The opinion was returned in affirming the Mower county district court jury which found Charles Russel, farmer living 8 miles from Austin, was entitled to cash the check six days after it was issued. On November 27, 1928, Harrison Buxton ,of Austin, gave Russel a check for $82.50, drawn on the Farmers and Merchants State Bank of Austin in payment for a cow. Because of pressing work on the farm Russel failed to cash the check until December 3, when he deposited it to his credit in the Austin National Bank. On the following day the Farmers & Merchants Bank was closed by the Banking Department. When the National Bank could not collect on the check it was charged back to Russel's account. The Farmers & Merchants Bank later re-opened, being taken over by a new corporation. Russel brought suit against Buxton in an effort to obtain compensation, resulting in the verdict from the jury.

3. April 22, 1931 The Austin Daily Herald Austin, MN
Article from The Austin Daily Herald, April 22, 1931

Click image to open full size in new tab

Article Text

Checks Of Bank Given Out Thursday Checks creditors of the closed Farmers and Merchants State Bank, representing cent of the funds per in the trust will be given the office of Weiland, liquidating agent, announced today by Mr. Weiland. payments will aggregate close $15,000. With the cent which per out by the bank during the after this will make return of 55 per cent of funds on deposit. Another payment expected be made in the near predicted Weiland