Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1932-07-14
AGREEMENTS
ARE SIGNED UP
Stockholders, Officers and
Depositors of Askov
Bank Cooperate.
Low Farm Prices Cause
Withdrawals; Time Ex-
tension Strengthens.

had the same experience as the
Farmers and Merchants State Bank
of Pine City recently went through
the income being smaller than the
outgoing money. 1t is but six weeks
since the Pine City institution, one
of the oldest in the county, arranged
for agreements with its depositors
whereby the funds would be left at
the bank for a longer time. Practi-
cally the same agreements have been
made between the Askov bank and
its depositors.
With several hundred dollars more
going out than coming in each day
the time was bound to come when the
Askov bank would have to close its
doors if some arrangement was not
made to stop the leakage and tide the
institution over the depression. So
on Monday when the reserve had gone
below the legal requirement officers
of the bank notified the Minnesota
Bank Commission that something had
to be done and asked for their CO
operation. Examiners ]. L. Haas and
Clarence Lodahl came to Askov i'm
mediately and went over the books.
1t was decided to draw up a deposit
tors agreement. A legal holiday was
declared by Mayor A. Henriksen for
Tuesday and Wednesday to give the
bank officials and examiners ample
time to make arrangements for con-
tinuation of the institution.
VUon noo<Su-
Depositors were notified and a
meeting was held at the Assembly
hall Tuesday evening which was at
tended by about 200 people, Previous
to the meeting many depositors had
signed up during the day on the
agreement to keep their funds in the
bank for a longer period, and prac-
tically all those who had not signed
up previously did so at the meeting.
Late yesterday afternoon sufficient
percentage of the deposits had been
signed up under the agreement which
in the community.
George Susens, secretary of the
Minnesota Bankers Association, was
present at the public meeting and
told how this came about, the pres
sure on banks all over, and the need
for cooperation. He said this is a
time for clear, straight thinking, no
use kidding ourselves. The officers
of the bank have taken a good, fair
step which might be some embarrass-
ment to them for it would be much
easier to just close the institution.
The bank is community institution
of which the depositors play a big
part, cooperation and teamwork are
absolutely essential.
Mr.. Susens went on to say that
time is the healer of many ills and
that what the bank needs now is time
to get over this difficulty. The state
could close the institution and col
lect on notes, sue if necessary, but il
would leave the community without
banking facilities and the depositors
would have to take less than 100 cents
on the dollar. Some of the notes due
to the bank can not be collected in
full today, but if little more time
is extended most of those notes will
turn out to be all right. What is
true of the customer is true of the
bank. If the bank in order to pay
out demand certificates and other de-
posts would have to sell some of its
bonds and other securities it would
be obliged to sacrifice greatly.
Prices Must Go Upward.
hn IN dot hoa III,
to the time of the World war, said
the speaker. Previous to that time
there was no talk of bank failures,
they occurred so seldom. The prices
on farm products were then good.
Now that prices have about reached
the bottom they can go only one way
and that is upward. A little more
worrying should have been done when
the prices were up, said Mr.. Susens.
1t is just as dangerous to be too OPP
timistic as it is to be down in the
mouth. 1t is a credit to the banks
that have remained open the last
10 to Is years said the speaker, and
he complimented the people for the
progress made here in a quarter GEN.
fury. While expenses are high enough
In accordance with income the out
look and prospects here are better
than southern Minnesota where the
Indebtedness is greater.
Even after borrowing $4,000 from
the Reconstruction Finance Corpora
tion the local bank found it impos-
s1ble to meet the demands of with
drawals unless given more time in
which to pay out. Low prices of farm
products has caused many people to
draw on their reserves and new money
has not been coming in as much as
formerly.
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