9523. Clarkfield State Bank (Clarkfield, MN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
September 21, 1931
Location
Clarkfield, Minnesota (44.791, -95.809)

Metadata

Model
gpt-5-mini
Short Digest
b7f7e0d2

Response Measures

None

Description

Articles report the Clarkfield State Bank was closed (described as the 'key' bank) and that its closing precipitated runs on affiliated chain banks. The closure was announced by State Banking Commissioner John N. Peyton; no reopening is mentioned and other banks subsequently closed, so I classify this as a suspension leading to closure. Date inferred from closed Monday in papers dated 1931-09-23 → 1931-09-21.

Events (1)
1. September 21, 1931 Suspension
Cause
Government Action
Cause Details
Closed following action/announcement by State Banking Commissioner Peyton amid problems in an affiliated chain (Clarkfield described as the 'key' bank); directors/commissioner decided to close to conserve assets.
Newspaper Excerpt
the Clarkfield State bank of Clarkfield, Yellow Medicine county, was closed Monday.
Source
newspapers

Newspaper Articles (4)
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 Post-Bulletin Rochester, MN
Article from Post-Bulletin, September 23, 1931

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Article Text

Peyton Takes Action Against Places Having Deposits of Million St. Paul, Sept. state three Minnesota counties, with total deposits most were John N. Peyton, state banking missioner, announced. Four of the banks. according Commissioner Peyton, belonged an affiliated chain which Minneapolis, held trolling interest. They are the Farmers' State bank Hanley Falls, the Farmers' bank Yellow Medicine bank Lyon county, representing total deposits of The fifth was the First State bank of Wright county. with deposits of capital surplus of $2,000 fifth bank of the so-called Orchain, Clarkfield State bank Clarkfield, Yellow Medicine counwas closed Monday The bank with of described by Peyton the "key" bank of the chain. "Owing to affiliated stock ownership in the Clarksfield, Echo, Hanley Falls and Cottonwood banks the department has been obliged to nounce that the board of directors of those banks have taken definite action in deciding to close the stitutions," Peyton said. Immediately following closing of the Clarkfield State bank heavy runs developed the other three banks of the chain because public in the towns in which the banks were located were thoroughly conversant with the fact that the same ownership controlled all these stitutions and this developed lack confidence which immediately caused runs develop on these banks. directors these institutions believed that was more sirable from point of view of the creditors to close the banks immediately conserve the assets." The banks closed assets for the depositaccording the The Hanley Falls bank had deposits of capital and surplus The State had deposits of capital $20,000 and surplus The Farmers' State bank Echo had deposits of capital and surplus of $3,000. The Maynard bank had deposits

3. 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

4. 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.