Citizens Bank - Redwood Falls, MN

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: March 9, 1933
Location: Redwood Falls, Minnesota (44.539, -95.117)

Metadata

Model: gpt-5-mini
Short Digest: 669c736d

Response Measures

None

Description

Article (Redwood Gazette, 1933-03-09) reports the Citizens State Bank in Redwood Falls closed by mandatory order of the lieutenant-governor as part of the statewide/national banking holiday. The piece gives no explicit statement about reopening in this article, but the closure is a government-ordered banking holiday (temporary). I therefore classify this as a suspension with eventual reopening (bank holiday) rather than a permanent failure.

Events (1)

1. March 9, 1933 Suspension

Cause: Government Action
Cause Details: Closed by mandatory order of the lieutenant-governor as part of statewide/national banking holiday proclaimed during banking crisis (March 1933).
Newspaper Excerpt: The Citizens State bank here closed soon after the report had been confirmed by telephone calls and L. R. Ewart, vice president, issued the following statement: 'Upon mandatory orders of the lieutenant-governor, this bank as well as other banks of the state, will not be open until further proclamation from the governor's office.'
Source: newspapers

Newspaper Articles (1)

1. March 9, 1933 The Redwood Gazette Redwood Falls, MN

Article from The Redwood Gazette, March 9, 1933

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Article Text

President to Ask Dictatorial Power Until System Can be Reorganized # KOLBET'S ISSUE DUEBILLS Proclamation of Governor Followed by Roosevelt Order; May Issue Scrip Faced with a banking crisis which Saturday caused the governors of most states to declare banking holidays and was followed Sunday by a proclamation by the new president sustaining their action, Franklin D. Roosevelt is expected to ask for control of the banking structure until the bank system can be reorganized in his message to the new congress meeting for a special session today. A new proclamation to this effect is expected today and it may extend the holiday which was to end tonight, or prescribe restrictions under which banks may open. Plans for issuing scrip backed by bank deposits but to be used in lieu of currency were reported abandoned at Washington Wednesday except in some states where this action would be necessary. Governor Floyd B. Olson immediately asked for permission to use the plan in Minnesota. The closing is the result of conditions in large centers which have shaken the confidence of depositors and caused bank runs. The situation is said to have been hastened by disclosures of irregularities in the conduct of the affairs of banks in financial centers. Franklin D. Roosevelt made a proclamation Sunday night, closing the few banks which remained open after Saturday's holiday and called a special session of congress to take action. His proclamation was followed in Minnesota by a joint session of the house and senate at which Governor Floyd B. Olson asked that the group memorialize congress to take steps to guarantee bank deposits. The suggestion was heartily applauded. In Redwood Falls, a new form of scrip money appeared, backed by the Kolbet Dairy company and used by them to pay farmers for cream. It may be used by the store to buy milk from the company or may be held until the cream being marketed can be sold, when it will be redeemed for cash. It is in four denominations, ten cents, 25 cents, 50 cents and one dollar and is clearly marked "emergency money." A surprising amount of currency is accumulating in some business places, indicating the great amount that has been in hiding. The Citizens State bank here closed soon after the report had been confirmed by telephone calls and L. R. Ewart, vice president, issued the following statement: "Upon mandatory orders of the lieutenant-governor, this bank as well as other banks of the state, will not be open until further proclamation from the governor's office." The proclamation was made by the new lieutenant-governor, K. K. Solberg, in the absence of Governor Floyd B. Olson who started for Wash- (Continued on page seven)