First National Bank (Kanawha, IA)

View Charter #9018 on SPMC View balance sheet

Episode Information

Episode UID
901801599
Episode Type
Suspension → Closure
Bank Type
national
Bank ID
90180 national
Charter Number
9018
Start Date
March 4, 1933
Location
Kanawha, Iowa (42.938, -93.793)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
f39a9bb85d20eeb1

Response Measures

None

Receivership Details

Depositor recovery rate
100.0%
Date receivership started
1933-10-07
Date receivership terminated
1937-04-13
Share of assets assessed as good
37.1%
Share of assets assessed as doubtful
54.1%
Share of assets assessed as worthless
8.8%

Description

Statewide Iowa banking holiday in March 1933; bank later in receivership (receiver H.E. Rachut) by 1934.

Events (5)
1. February 4, 1908 Chartered
Source
historical_nic
2. March 4, 1933 Suspension
Cause
Government Action
Cause Details
Statewide banking moratorium declared by Iowa authorities (state banking holiday) in response to national crisis.
Newspaper Excerpt
Iowa Proclaims Holiday. Lieut. Gov. N. G. Kraschel today ordered a banking moratorium effective at once.
Source
newspapers
3. October 7, 1933 Receivership
Source
historical_nic
4. October 7, 1933 Receivership
Newspaper Excerpt
the First National bank and its receiver, H. E. Rachut, ... (articles listing receiver in March 1934).
Source
newspapers
5. March 23, 1934 Other
Newspaper Excerpt
Kanawha independent school district has filed suit ... to recover $6,721.34 in school funds which are tied up in the First National bank of Kanawha.
Source
newspapers

Newspaper Articles (9)
1. March 5, 1933 Chicago Tribune Chicago, IL

Article Text

EVERY STATE JOINS IN MOVE TO SAVE BANKS Take Holiday or Impose Restrictions. Wilmington, Del., March 4.—(AP)—Delaware, the last of the nation's 48 states not under some form of banking restriction, declared a bank holiday tonight, effective Monday and continuing "until further notice." Harold W. Horsey, state banking commissioner, said Gov. C. Douglas Buck had directed him to notify all banks in the state as follows: "Not because of anything that has occurred in Delaware, nor any condition existing here, but wholly because of the action of practically all the other states in declaring a bank holiday and the observance thereof by the Federal Reserve bank, this bringing about a temporary suspension of banking business over the country, I am left with no alternative but to take action to protect Delaware banks and their depositors." Wisconsin Plans Reopening. Milwaukee, Wis., March 4.—[Special.]—Banks of this city and Wisconsin are making plans to reopen next week, but on what day had not been determined tonight. In Madison, Banking Commissioner Arthur C. Kingston said that a plan has been devised for reopening Wisconsin banks Monday morning, although he withheld details of the plan pending an expected announcement from President Roosevelt at Washington on the banking situation. On the other hand, Walter Kasten, president of the First Wisconsin National bank, and also a member of a committee appointed by the Milwaukee Clearing House association to work out a plan, said the Milwaukee banks will not reopen until Wednesday at the earliest, and then probably will operate under a scrip plan similar to that used in 1907. In the meantime the fourteen day bank holiday proclaimed by Gov. R. G. Schmedeman remains in effect. No Holiday in Indiana. Indianapolis, Ind., March 4.—[Special.]—Indiana banks, under the new bank code law recently rushed through the state legislature, have the power to limit withdrawals to one-tenth of 1 per cent. Therefore, no state-wide bank moratorium will be declared in Indiana Gov. Paul V. McNutt today informed state officials from Washington, where he attended the inauguration. Indianapolis banks today continued to pay 5 per cent on both savings and checking accounts, and 100 per cent on deposits made since they declared a 5 per cent withdrawal limitation last Monday. A few upstate banks have limited withdrawals to 2 per cent. Plan Michigan Reopening. Detroit, Mich., March 4.—[Special.]—There was an easing up of banking anxieties in Detroit because of the action of the state legislature on relief bills which are scheduled to be passed on Monday. They should become laws not later than next Saturday and thereby permit banks to re-open and permit another withdrawal of funds in amounts yet to be decided upon. Operations in Detroit will be immediately resumed by the First National bank and the Guardian National Bank of Commerce. Iowa Proclaims Holiday. Des Moines, Ia., March 4.—[Special.]—Lieut. Gov. N. G. Kraschel today ordered a banking moratorium effective at once. In his proclamation the lieutenant governor set no definite time, declaring only "a temporary banking holiday mandatory for all Iowa banks, savings banks and

2. March 6, 1933 The Courier Waterloo, IA

Article Text

IOWA'S BANKS MAY BE PERMITTED TO RAISE BAN FRIDAY Will Not Be Allowed to Open Before Under Permission from Treasury. NEED RESERVES TIED UP IN CHICAGO BANKS Use of Clearing House Scrip Will Afford Means for Circulation. Des Moines—(AP)—Iowa's bank holiday will be effective until the ban on withdrawals from New York and Chicago banks is lifted, Lieut. Gov. N. G. Kraschel said Monday. "Many reserves of Iowa banks are held by national banks in Chicago and New York," Kraschel said. "Until those reserves are available, Iowa banks that were opened would be exposed the dangers of withdrawals, particularly by business organizations which might wish to obtain money from Iowa deposits for use in other states." It was indicated that Iowa situation will continue unchanged at least until Friday, the earliest date when congressional action could lift the ban. Iowa's banking holiday remained mandatory despite the terms of President Roosevelt's proclamation that liquid banks could remain open during the national holiday if given permission by the secretary of treasury. Agree To Keep Banks Closed. Lieut. Gov. Kraschel said early Monday that Iowa banks will not be permitted to take advantage of that provision in the president's proclamation and that, the state holiday started Saturday will remain in effect on all Iowa banks. Agreement to keep the Iowa proclamation in force was reached in a telephone conversation between Lieut. Gov. Kraschel and Gov. Clyde L. Herring, who is in Washington. Officials of the Iowa Bankers association met here Sunday for a discussion of additional legislation to be considered by the state legislature which reconvened Monday following a week's recess. Fred J. Figge of Ossian, president of the association, said the legislation would deal with methods of bank withdrawals after the holidays are suspended. Details of the proposals could not be discussed, Figge said, as they were to be discussed further with the banking committees Monday. Two Banks Told To Stay Shut. Bank officials also discussed the issuance of clearing house certificates as provided for in President Roosevelt's proclamation. Information concerning the certificates, which would be issued under regulations of the Chicago Federal Reserve bank, was expected from Chicago. Lieut. Gov. Kraschel said he had ordered officials of two Iowa banks to observe the state holiday and not to open their banks today as they had declared they would do. Henry M. Carpenter, president of the Monticello State bank, and A. R. Robinson, assistant cashier of the Anita bank at Anita, were ordered by Mr. Kraschel not to open Monday. Must Restrict Openings. Des Moines—(AP)—Reopening of banks of the nation must be on a restricted payment basis, L. A. Andrew, state superintendent of banking, said Monday. "There is no question," he said in a formal statement, "that when the banks of the country reopen, it must be on a restricted payment basis and with the use, in many cities, of banking scrip consisting of clearing house certificates." Such scrip, he asserted, will provide a circulating medium for cities in which it is issued. This scrip, he said, "is a promise to pay by all of the banks in a clearing house and has behind it good assets to cover the entire issue." Calling upon the public to face

3. March 6, 1933 Ames Tribune Ames, IA

Article Text

IA. BANK HOLIDAY WILL CONTINUE (Continued from Page One) ed from Washington, it was believed. The banking holiday, also added incentive to the stamp money plan which originated at Hawarden, Ia., and which, due to legislative action 10 days ago, may now be set in motion by every county in the state for poor relief. Some amendment to this law to make it applicable to present conditions was suggested to legislators. Kraschel, however, said that no emergency legislation by Iowa was necessary. The state, he said, had already set its financial house in order and would be ready to proceed with normal bank business at the expiration of the national holiday. Kraschel telephone Gov. Clyde L. Herring, who is attending the governors' conference in Washington, before announcing early Monday that the Iowa proclamation closing banks until further notice would be rigidly enforced. Several score banks thruout the state, it was said, were prepared to open their doors at the first possible opportunity in spite of the proclamation of the lieutenant governor, and had closed temporarily only under protest. One bank, the Iowa-Des Moines National here, had announced flatly that it would re-open Wednesday. In view of President Roosevelt's proclamation however, this plan probably will be changed to coincide with present developments. Pending a readjustment of emergency money matters, merchants scrip, several kinds of barter and agreements honoring checks of reliable firms in lieu of cash, were being worked out in individual cities thruout the state. Kraschel urged that all business houses cooperate in honoring these temporary adjustments made locally until Iowa's banks re-open.

4. March 8, 1933 The Gazette Cedar Rapids, IA

Article Text

Iowa Maintains Solid Front In Banking Crisis DES MOINES (AP)—Acting Governor Kraschel announced shortly after noon Wednesday that all Iowa state and national banks were closed to conform with the state proclamation. Several of the banks which opened Wednesday morning to accept new deposits discontinued the practice after conversations with state officials, Kraschel indicated. The banks may continue to make change and allow patrons to use their safety deposit boxes. "Iowa's position is extremely strong," Kraschel said in a statement. He commended bankers for their co-operation and said that Governor Herring in Washington has kept in hourly contact with the Iowa officials. "Within a few days a new and sounder banking structure will arise for the service of the nation," he declared. His statement was as follows: "All Iowa banks are closed in strict conformity with the state proclamation. The splendid co-operation that they have shown in upholding our hands gives us hope of obtaining release of Iowa bank money in Chicago and New York. It is perfectly obvious that if some of our banks were to disregard our proclamation and permit withdrawals of cash, our position would be lost forever. "It is unfortunate that America's business should be so paralyzed, but Iowa's position is extremely strong in such a crisis. "We have food products that the remainder of the country must have, and we would be weak indeed if we did not demand the creation of a sound currency for release of our own funds now in city banks before normal business is resumed. "We do not seek an unfair advantage of our sister states but the present bank crisis is due to exploitation and unsound banking practices in higher circles over which we had no control. We are not to blame for this situation, therefore we would be weak if we failed to exercise our position at this time for the protection of our own people. "President Roosevelt is moving forward boldly and in a constructive manner. Gov. Herring is in hourly contact with us, advising us as to the progress. Within a few days a new and sounder banking structure will arise for the service of the nation. We need to be patient but a few days more, and I commend the loyalty of our bankers and the patience of our people in the maintenance of our state program." DUBUQUE BANK OPEN. DUBUQUE (AP)—The First National bank here remained open for business Wednesday despite advice from Lieut.-Gov. Kraschel that all Iowa banks, both state and national, should remain closed in conformity with the state banking holiday.

5. March 22, 1934 Des Moines Tribune Des Moines, IA

Article Text

Studebaker to Talk To Six About Forums The Kanawha, Ia., Independent school district Thursday filed suit J. W. Studebaker, Des Moines in Polk county district court to school head, left Thursday for the recover from the state 721 34 in Pacific coast to contact six proschool funds it says are tied up in spective forum leaders for the the First National Bank of Kana- 1934-35 season. He expects to rewha. turn soon after he interviews the The action. brought in the form men. of writ of mandamus, is against State Treasurer Leo J. Wegman, State Superintendent of Banking D. W. Bates, the First National bank and its receiver, H. E Rachut, Gov. Clyde Herring, and other members of the state executive council. It is claimed by the school district that the state officials and the bank receiver have failed to allow and approve the deposit claim filed by the school, and further that the state has failed to reimburse the district, as provided by the state law, from the state sinking fund. The district asks the court to require the state to approve the claim, and that the state auditor be instructed to issue a warrant on the sinking fund for payment of the claim.

6. March 23, 1934 Globe-Gazette Mason City, IA

Article Text

KANAWHA SEEKS SCHOOL FUNDS Files Suit to Get $6,721 Tied Up in Closed Bank From State. DES MOINES, March The Kanawha independent school district has filed suit in Polk county district court to recover from the state $6,721.34 in school funds which are tied up in the First National bank of Kanawha. The action, brought in the form of a writ of mandamus, is against State Treasurer Leo Wegman, State Superintendent of Banking D. W. Bates, the First National bank and its receiver, H. E. Rachut, Gov. Clyde Herring, and other members of the state executive council. The school district claims that the state officials and the bank receiver has failed to allow and approve the deposit claim filed by the school, and further that the state has failed reimburse the district as provided by the state law from the state sinking fund.

7. March 23, 1934 Globe-Gazette Mason City, IA

Article Text

KANAWHA SEEKS SCHOOL FUNDS Files Suit to Get $6,721 Tied Up in Closed Bank From State. DES MOINES, March 23. (P)The Kanawha independent school district has filed suit in Polk county district court to recover from the state $6,721.34 in school funds which are tied up in the First National bank of Kanawha. The action, brought in the form of a writ of mandamus. is against State Treasurer Leo J. Wegman. State Superintendent of Banking D. W. Bates, the First National bank and its receiver, H. E. Rachut, Gov. Clyde Herring, and other members of the state executive council. The school district claims that the state officials and the bank receiver has failed to allow and approve the deposit claim filed by the school, and further that the state has failed to reimburse the district as provided by the state law from the state sinking fund.

8. March 23, 1934 Globe-Gazette Mason City, IA

Article Text

KANAWHA SEEKS SCHOOL FUNDS Files Suit to Get $6,721 Tied Up in Closed Bank From State. DES MOINES, March 23. (7P) The Kanawha independent school district has filed suit in Polk county district court to recover from the state $6,721.34 in school funds which are tied up in the First National bank of Kanawha. The action, brought in the form of a writ of mandamus, is against State Treasurer Leo Wegman, State Superintendent of Banking D. W Bates, the First National bank and its receiver, H. E. Rachut, Gov. Clyde Herring, and other members of the state executive council. The school district claims that the state officials and the bank receiver has failed to allow and approve the deposit claim filed by the school, and further that the state has failed to reimburse the district as provided by the state law from the state sinking fund.

9. April 11, 1935 The Algona Upper Des Moines Algona, IA

Article Text

RUBEY DISPOSES OF INTEREST IN BANK AT BURT Titonka Man Will Take Office Monday; Health Causes Sale F. E. Rubey, who has been the vice president of the Burt Savings Bank since its organization has sold his interest in the bank to H. E. Rachut of Titonka, Iowa, who will become the chief executive officer of the bank on April 15th. Mr. Rubey was obliged to sever his connections with the bank because of the illness of his wife, which will necessitate them going south to a warmer climate. During their stay in Burt, Mr. and Mrs. Rubey made many friends who will regret their leaving and they will carry with them their best wishes for the speedy recovery of her health. The Burt Savings Bank opened for business on March 14th, 1931, and has made a steady progress each year. Mr. Rachut will take over his new position next Monday, April 15. He is no stranger in Kossuth county banking circles as he was formerly connected with the First National Bank of Titonka. Since that time he has been receiver of the Bank of Woden, a private bank and is at present receiver of the First National Bank at Kanawha. He has had a wide experience in banking and is well qualified to assume the management of the Burt bank. The bank of Kanawha which he has had full charge of liquidating will undoubtedly pay its depositors one hundred per cent on their deposits with interest, as there is sufficient cash on hand at present to pay ninety per cent including what has already been paid out. Mr. Mahoney, national bank receiver at Humboldt, has been appointed to close up the trust. Mr. Rachut graduated from the St. Ansgar high school in 1916, attended business college in Waterloo and also spent one year at the University of Iowa. He is a married man and has four children and will move his family to Burt at the end of the school year.