9501. Farmers & Merchants State Bank (Blooming Prairie, MN)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
April 1, 1933*
Location
Blooming Prairie, Minnesota (43.867, -93.051)

Metadata

Model
gpt-5-mini
Short Digest
2235d4e0

Response Measures

None

Description

Articles (Apr 6, 1933) describe depositors meeting to sign up for a commissioner-proposed re-organization that scales deposits 50% and establishes a trustee to liquidate assets. There is no explicit description of a run; the bank had been among state banks undergoing re-organization/closed status during the statewide banking trouble. Outcome is reorganization/reopening rather than permanent failure.

Events (3)

1. April 1, 1933* Reopening
Newspaper Excerpt
Habberstad, president of the bank, announced Thursday afternoon that the response had been extremely encouraging ... 'have no doubt about the final outcome,' he declared. The plan for re-organization proposed by the commissioner of banks is as follows: Depositors will agree scaling down of 50 of their deposits ... The newly re-organized bank will have total resources ... The re-organization will into effect only when two thirds of the deposits are signed up.
Source
newspapers
2. April 1, 1933* Suspension
Cause
Macro News
Cause Details
Statewide banking crisis and agricultural price collapse leading to numerous state banks being closed/unopened; commissioner-mandated reorganization proposed.
Newspaper Excerpt
There ... are still unopened and the Farmers and Merchants State bank was one of the first five to go through re-organization
Source
newspapers
3. April 6, 1933 Other
Newspaper Excerpt
Depositors and friends of the Farmers and Merchants State bank jammed the high school auditorium Wednesday evening ... rallied to the support of the local bank and signed up their agreements for re-organization of the institution. The plan ... Depositors will agree scaling down of 50 of their deposits ... A trust fund will ... trustee will be appointed ... dividends will be paid ... newly re-organized bank ... will have total resources ... The re-organization will into effect only when two thirds of the deposits are signed up.
Source
newspapers

Newspaper Articles (2)

Article from Blooming Prairie Times, April 6, 1933

Click image to open full size in new tab

Article Text

COLUMN Mr. and Mrs. Ben Johnson During the many years Ben Johnson has lived in Blooming Prairie he has had many contacts with the community life and of them have been useful and helpful. As farmer, as cooperator in his local creamery and other farm organizations, rector in the oil company or worker the Lutheran church he always been loyal and His faithfulness and his pendable. common sense have made his counsel highly valued. His consideration for others has made him well liked in the munity. Mr. and Mrs. Johnson are the type of people whose names are seldom featured in the headlines but who do the days work and who do well. Their friends and relatives were glad to join with them the celebration of their 50th wedding anniversary and The Times, too, extends hearty congratulations. Community Chatter Lots of people this week began to wonder if money is worth all the grief and trouble it causes Of course anybody decides isn't worth while to bother with, telephone number 70 People talk of the unhappy rich but would be willing to be half happy as now rich Since on the sucklist of an investment company now making sucker out them. They are sending me daily letter urging to buy tain stocks. just wasting their for when am cured money stay cured The beer question causing nearly as many hairs locally as the bank gray uation Down in Iowa people regard Blooming Prairie another Hurley Anyway the Blooming Prairie idea on prohibition became nationalized 20 bankers from Approximately other towns in Southern Minnesota attended the bank meeting night learn the Wednesday There 225 state banks ropes. are still unopened and the Farmers and Merchants State bank was one of the first five to go through re-organization Grover has joined the Hoffman Rysavy Sales Service and is helping to put on sale at Lanesboro A with rich, natural brouge always interesting. always talking with the enjoy Swedish shoemaker at Nelson's for this reason Two of the prettiest and cutest girls in town and Bebe Thurston Albert Wanous who will sell Hamm beer at Prairie Due Chien. Wisconsin. will get carload of the amber fluid Friday morning o'clock Iowa won't beer for time Neither will Austin Will the new beer take the out of the hurrah? The Central Cooperative Oil company has stalled some new pumps which show the amount of gasoline chased to the tenth of gallon and the cost to the last penny W. Peterson wants to scalp the writer of Column Left. heartily in favor of the moveThe blood of the martyr the seed of the church This is the year plant my garden. The county board going to catch out on limb Mrs. Sam me Rask won the electric bridge table given by the Nash coffee away company during recent Tim and Tina program. We hope she loans it to the local Democrats who are the New Deal practicing Irvin Thompson visited friends here the fore part of the week enroute to his home in Minneapolis from California, where he had the past While spent the coast he spent some time with uncle, H. H. Skagen, Kent, Washington. He left the Sunny state two weeks before the earthand traveled by way of the quake, southern route, the Sante Fe trail. Conditions the Pacific coast, he reported, were about the same here, but the southern states to be plenty hard hit. Miss Mildred Thompson, Newry, Saturday and Sunwith her brother Alex and wife. Thompson and Mrs. Ernest Butterfield Mr. Sunday visitors at Austin, were Hillson home. Mrs. Butterfield aunt.


Article from Blooming Prairie Times, April 6, 1933

Click image to open full size in new tab

Article Text

Funds Depositors and friends of the Farmers and Merchants State bank jammed the high school ditorium Wednesday evening and after they reached an understanding of the situation rallied to the support of the local bank and signed up their agreements for re-organization of the institution. Wenzel, representing the state banking department outlined the plan for re-organization proposed by the Minnesota Commissioner of Banking and he was followed by George secretary of the Minnesota Bankers association who explained the conditions which brought about the banking situation, the two courses open to the depositors and the possibilities of both. After he had finished speaking, Attorney Thorson who presided, callen upon everyone who wished the bank to re-organize to sign agreement. A large percentage of the depositors of the bank signed their agreements Wednesday evening. Habberstad, president of the bank, announced Thursday afternoon that the response had been extremely encouraging and that many who took their agreements home with them bringing them to the bank signed Thursday. have no doubt about the final outcome," he clared. The plan for re-organization proposed by the commissioner of banks is as follows: Depositors will agree scaling down of 50 of their deposits, checking counts and saving accounts. A trust fund will assets with total face value today of $127,947.94. trustee will be appointed by the District court and this trustee will liquidate these assets. As they are turned into cash dividend will paid the depositors which will be in addition to their original 50 per cent. be entitled to draw out 25 per cent of their scaled down deposits the first year and per cent each of the remaining three years but not more than 10 per cent any one month. Stockholders are required contribute $56,250.67 to the new bank This made up by plus built up by past profits; undivided profits of $11,250; cash bankable paper, $3,500 and cent amounting to $21,500 or total $56,250.67. In addition they liable for 100 per cent assessment. The newly re-organized bank will have total resources $490,114.87 and deposits of The re-organization will into effect only when two thirds of the deposits are signed up. The two thirds then will bind the remaining one third. a depositor also the bank money one offsets the er. Example: If man has 000 on deposit and owes the bank $1,000 one cancels the other. Public funds including those for state, county, schools, and rural will be paid 100 cent. Mr. Susens began by saying he had attended 160 meetings of this kind in Minnesota during the last year and that he was faced with many more meetings during the coming month. This was condition being met by nearly all communities over the state. The same trouble which affectfarming and business, he said has hit the banks. Two and three cent hogs and low priced wheat, and butterfat have raised havoc with the producer but the banks are not responsible for this. few ago when bankers years faced with similar problems (Continued on Page