9588. Farmers State Bank (Echo, MN)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
September 23, 1931
Location
Echo, Minnesota (44.617, -95.418)

Metadata

Model
gpt-5-mini
Short Digest
a4b5d603

Response Measures

Full suspension

Other: Boards of directors decided to close banks to conserve assets; receiver later appointed and paid dividend.

Description

Closure announced Sept 23, 1931 after runs following closing of the chain's key bank at Clarkfield. Directors chose to close to conserve assets. By April 1932 a receiver (A. D. McRae) is handling the Farmers State Bank at Echo and a dividend to depositors was paid, indicating the bank entered receivership/was not reopened as a going concern.

Events (3)
1. September 23, 1931 Run
Cause
Local Banks
Cause Details
Heavy runs developed after the closing of the chain's key bank (Clarksfield), and because the public knew the same ownership controlled the affiliated banks.
Measures
Directors decided to close the banks immediately to conserve assets.
Newspaper Excerpt
Immediately following closing of the Clarkfield State bank heavy runs developed the other banks of the chain because the public ... knew the same ownership controlled all these institutions and this developed lack of confidence which immediately caused runs to develop on these banks.
Source
newspapers
2. September 23, 1931 Suspension
Cause
Local Banks
Cause Details
Board of directors closed the bank after runs triggered by the affiliated chain's key bank closure; closure was a defensive action to conserve assets.
Newspaper Excerpt
Owing to affiliated stock ownership ... the board of directors of those banks have taken definite action in deciding to close the institutions, Commissioner Peyton said.
Source
newspapers
3. April 21, 1932 Receivership
Newspaper Excerpt
A. D. McRae, receiver of the Farmers State Bank at Echo, was here over the weekend. Mr. McRae was enthusiastic over the outcome of the affairs of the bank which recently paid a 25 per cent dividend to the depositors.
Source
newspapers

Newspaper Articles (5)
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.

5. April 21, 1932 The Redwood Gazette Redwood Falls, MN
Article from The Redwood Gazette, April 21, 1932

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Article Text

S. B. Duea was in Minneapolis Tuesday on business. Mr. and Mrs. Fred R. Orth of Tracy visited with friends here Sunday. L. O. Alexander and E. C. Korfhage were business visitors in Minneapolis Monday. Mr. and Mrs. Otto Gadow and Mrs. Ben Bode of Wabasso were shoppers here Saturday. Mrs. Vern Butler and Miss M. Holland of Echo were Saturday evening shoppers here. Miss Gertrude Owen has entered Glen Lake Sanitarium near Minneapolis for treatment. Mr. and Mrs. Peter Sonnichsen of Clara City were Sunday guests of Mrs. Carrie Smithers. Mr. and Mrs. Lee Hendricks spent Sunday with G. R. Pryor who is a patient at Worrell hospital, Rochester. FREE! Inner Tube with Big 6 or G & J Super Stalwart Tire. During 42-1t. April. Gamble Stores. Mr. and Mrs. Roy Callaghan of Pipestone spent Sunday here with Mr. and Mrs. B. H. Clark and other friends. The regular meeting of the Eastern Star will be held Wednesday evening, April 27. Please note the correction in date. Mr. and Mrs. S. B. Duea and sons, Donald and Paul, motored to Montevideo Sunday where they were dinner guests of Martin Duea. Miss Lucille Luscher of Mankato and Von Luscher of Minneapolis spent the weekend with their parents, Mr. and Mrs. C. A. Luscher. E. A. Pease, G. R. Engeman and Dr. J. P. Linn attended the meeting of Mankato Presbytery at Pipestone Tuesday and Wednesday. They returned last evening. Miss Margaret Mosier and Martin Johnson were married Saturday, April 9 by the Lutheran minister at Minneota. Their attendants were Mr. and Mrs. Ben Korman of Minneota. They will make their home on a farm near Redwood Falls. A. D. McRae, receiver of the Farmers State Bank at Echo, was here over the weekend. Mr. McRae was enthusiastic over the outcome of the affairs of the bank which recently paid a 25 per cent dividend to the depositors. The uproarious comedy in Hoot Gibson's new release "Wild Horse" at the New Dream Theatre, was no accident. Sidney Algier, associate director of the production, has specialized in comedy ever since he began his theatrical career in light and comic opera. It is to be shown April 29 and 30. Fifteen free trips to the International Livestock Exposition will be given Minnesota Four-H club boys and girls this fall by the Chicago and North Western Railway to allow those most proficient in raising of livestock and in home economics an educational trip to Chicago, C. A. Cairns, passenger traffic manager of the railway announces. One hundred and fifty trips in all will be given by the road in the nine states reached by the system. The Missionary Society of the Presbyterian church met yesterday afternoon in the parlors of the church with a fine attendance. This was the first meeting of the new church year and the new programs were given out. A short dedicatory service for the newly decorated rooms was held before the program. The devotions were given by Mrs. George Wright followed by prayer by Mrs. A. C. Dolliff. Mrs. R. L. Crooks gave a description of the experiences in the life of O. E. Rolvaag while living in China and gave a reading from "Wang-The Ancient." An instrumental duet was played by Miss Ruth Myers and Miss Irene Hagen. Mrs. S. F. Scott read an interesting paper on "Rural Schools in China." This project was established by the Y. M. C. A. and consists mainly of a health program and instructions in the essentials of living. Tudeen Johnson read Edgar Guest's "The Bear Story" and "The Music Lesson." Refreshments were served at the close of the meeting by Mmes. C. H. Whiting, O. A. Goetze, J. M. Stewart and H. M. Bell.