9526. First State Bank (Clearwater, MN)

Bank Information

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

Metadata

Model
gpt-5-mini
Short Digest
0042b9b5

Response Measures

Full suspension

Other: Closings ordered/announced by state banking commissioner after runs on affiliated chain banks.

Description

Articles (dated Sept 23–25, 1931) report the First State Bank of Clearwater was one of five state banks closed after heavy runs developed following the prior closing of the key Orwoll-controlled Clarksfield bank. Runs on affiliated banks triggered boards to close institutions and the commissioner announced the closures. Closure appears permanent in these reports.

Events (3)
1. September 23, 1931 Run
Cause
Local Banks
Cause Details
Heavy withdrawals at Clearwater and other member banks followed the closing of the key Clarksfield (Orwoll) bank; loss of confidence due to affiliated chain failure.
Measures
Noted that boards decided to close institutions to conserve assets after runs; public informed of common ownership precipitating runs.
Newspaper Excerpt
following the closing of the Clarksfield bank, heavy runs developed the other banks of chain
Source
newspapers
2. September 23, 1931 Suspension
Cause
Local Banks
Cause Details
Board of directors closed the bank after heavy runs developed following the closure of the key Orwoll-controlled Clarksfield bank; closures announced by the state banking commissioner.
Newspaper Excerpt
The First State Bank of Clearwater, Wright county, with deposits of $98,000 ... the department has been obliged to announce that the board of directors of those banks have taken definite action and decided to close institutions
Source
newspapers
3. September 25, 1931 Other
Newspaper Excerpt
Five state banks in four counties, four of them under the stock control of S. Orwoll of Minneapolis, ... were closed today, according to an [announcement] of John N. Peyton, state bank commissioner.
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.