84051483Full suspension, Books examined
Other: Community canvass secured waivers from depositors to leave portions of funds on deposit; examiner involved in reorganization discussions.
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Stewartville Banks Suspend Operations The First National Bank of Stewartville closed following run. The vent, rge was closed halt furthis time. First State bank of Stewartville banking temporarily today signing waivers in which they agree leave portions of funds deposit. The doors not closed. waivers are secured, actual operations expected be sumed. Shoes. Blakely KenAdv.
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Bank Stewartville Renewed Drive Postponed Reopening Community Efforts Are 'Ready to Go' The Stewartville community spirwhich was successful in reopening the First State bank was temporarily dampened last night at which it was hopdefinite plans for First National bank would be the outlined. The community was ready to renew its struggle to reopits second bank, but the eaxminin charge was unable to present plan for the NaUnder tional bank will 100 cents pay Examiner O. Stevens the dollar, 200 present, but told the persons due to the fact that the institution had been closed, the routine of reorganization must be folthod He was unable to say deflowed. initely how long it would take, but it be in a few weeks suggested may few months, depending upon the co-operation. The doors of the State bank had not been closed. Banking operations were suspended for three days, during which committees secured waiver agreements from depositors that certain proporation of funds would be left on deposit over various periods. Stewartville "Anxious to Go" "Stewartville was ready to and anxious to do something and the community was disappointed that could not resume its efforts immeaiately,' said one of the leaders toThe mass meeting may have day. been called prematurely, it was suggested. Reopening of the First State bank yesterday strenuous campaign in which business men and farmers canvassed all depositors for the to leave part of the funds in the bank. The agreements were presented solely to prevent future runs and to keep the institution open. per cent of the depositors agreed not to withdraw than per cent of more tificates of deposits and time posits in each of the next two years 50 cent the third year. On and per checking accounts, depositors agreed not to withdraw more than 10 per cent month. This applies only to funds then on deposit. Deposits made after the reopening may withdrawn in full at any time. A1so, when the situation becomes mal, officers may waive the agreements and pay all deposits on demand. Wonderful Spirit Revealed Business men and farmers who went into the town and rural districts, said the spirit of the people wonderful and all depositors were more than anxious to co-operate and many offered additional funds if the closing of the Following Grand Meadow and Racine banks, both nearby, the situation remained near normal at Stewartville until one of the biggest depositors of the First National bank demanded all his money. Officers offered him high class mortgage, but that was unsatisfactory. United States government bonds were offered, but they were spurned. The bank had sufficient currency on hand, but rather than give large one depositor, the directors decided close the doors and conserve the assets for all depositors. the incident, the Reporting Stewartville Star says: "The man doubtless in state of hysteria and probably did not realize what his big demand meant. Due to fear of banditry banks do not carry large amount of cash in its vaults, rather in the federal reserve but bank. That is why people should realize how serious 'run' on bank really "Rebirth of Spirit In an editorial on Rebirth of Spirit" the Stewartville Star Wednesday, October marked red letter day in the history of this community. When this newspaper speaks community, not only means but the contiguous trade area. "On that day hundreds of citizens of the arose with and little wonder. The Grand Meadow bank had closSaturday and the Racine bank on Monday. Like from the southwest spread the ugly dastardly rumors. small run started the local banks and Tuesday the board of directors the First National bank of Stewartville closed to conserve sets. was not the small run that caused the directors to decide to close. One big depositor, man should have known better but was state of hysteria, demanded huge The bankers tried in vain to get him to put that money into the best piece of "papthe bank had. No, he wanted the cash. Rather than hand huge sum big depositor the bank decided close and give every depositor square deal. "Stewartville was aghast. Panic of the moment set Everyone looking as though they were ready for the cemetery. run the other bank, but no started big depositor made heavy demands bank did not close its doors. Tuesday night heavy and dark. To make matters worse storm came up and the power went off. But on Tuesday night was born were held spirit. in quick order and plans formulatfor keeping the First State bank open. The midnight oil lasted until two o'clock in the morning. "On Wednesday morning merchants and farmers of the territory were called together and canvass depositors of the First State bank made whereby the depositors would not withdraw more than 25 per cent the first year, per cent the second year and per cent the The canvassers went to work. Over almost impassable roads some places and with spirit dogged pioneer determination these modern heroes 1931 went. "Not one depositor refused to sign the agreements. new blazing and indomitable spirit seemed instilled in every Every man, woman and child son. had deposits seemed to be with real, sincere desire to aflame help. "There actions saved many farm home, many home in the commany munity. "Now, many who participated in the run on the banks are well might they be. people had left their money in the banks, both institutions would now be opand no one would cent. Even now, declares bank examiner, he dose people their money if re-organization plans through as planned. "Just stop to reflect good folks, you put your money in bank, you interest. How can bank expect give interest if they, in turn do not the to someone else? loan money Every bank has cash reserve of course; but when that is gone, can the bank convert "paper" into cash at once? Can bank convert bonds cash at moment's notice? into Should bank start foreclosing on who have been hard its good people pressed? that what depositor wants? We hardly think people had only stopped to think minute no would have drawn cent, we feel certain. "But hysteria, state of panic existed for few hours and the damage was done. the true spirit of the people asserted itself Wednesday and wonderful spirit that moved our pioneers to do things set in. Suremost impossible guiding hand far there was than man's that brought greater about the new spirit. "The spirit shown the past two days has been marvelous to watch. has been the greatest demonstraof and pluck the writtion courage has ever witnessed in travels er on two continents. People of the community, you have accomplished that will stand in your favor things on the big ledger forever. "In retrospection we cannot help but feel that, in connection with the conferences held Tuesday many were said by hunnight, prayers dreds. Prayers for the holding of homes, our business, our belovour ed ones. "With prayer comes sane thinking, right thinking. We forget our and start the next day We forgive our over and pray that they fortrespassers give us. We ask blessings on our families and for everyone. Prayer, communion with God, is our strength at all times and especially times of need. It is our hope, in our aid in attaining goal of all. "Folks, the sun is shining brighter and everything looks as though all business will be conducted as usual in the near future. Have faith very your fellow man. Certainly no one accuses the bankers here of anything wrong. You all know that their integrity is that better than do. But know folks of the community, want personally to state that even in the short time have known these honorable gentlemen have come like and admire each and every one greatly. They are conservativeand probably sometimes have been accused of being too conservative. But one cannot be too conservative in all know that. These have 'lived clean lives. They have not been extravagant in their manner of living. They have been and are highly respected gentlemen of our "Have faith in their judgement you have had in the past. Don't be like one depositor who, two years ago got loan for $1,500 when he was in danger of losing his all and then came on the run for his money the minute malicious rumor started. "Do everything in your power to aid in the plans they are presented. The bank aminers have definitely stated that both banks are solvent. They further have stated that it is shame that one bank had to close because of run. "Let us plead with you that, in think all matters the future, you over carefully before doing or saying anything that will work harm to financial institutions anywhere. "With plans underway for reorganization of the First National bank, you will probably be called upon to aid. You too, show your true colors as man, real man and get that wonderful spirit that moved our pioneer forefathers to do things that seemed to be beyond accomplishment."
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land held by Overend to his son, Merrill. The action was brought by H. K. Skinner, receiver of the First National Bank of Stewartville to which Overend owed $4,409. Overend, before the bank obtained a judgment against him turned over several head of livestock and some farming implements to his son. He and his wife also executed a contract for deer of a quarter section of mortgaged land to Merrill. At the time Overend contended he owed his son more than $4000. In affirming the decision of the Olmsted county district court, the high court held the transfer was "honestly made."