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TEXAS COUNTY BANK CLOSED ITS DOORS FRIDAY MORNING
One of the Strongest and Most Popular Banking Institutions in South Missouri for Past Twenty Years is Forced to Hang Out the "Closed" Sign--A Catastrophe to the Entire Community--Bank Now in Hands of State Bank Commissioner.
One of the greatest calamities that has ever befallen our little city and almost the entire county fell with shock on the people when the Texas County Bank closed its doors last and hung out the Friday morning sign, by Order of the Board of Directors." There is no telling the extent of the havoe this closing of popular and one time prosperous bank is going to bring on the community, no telling how many heartaches and sleepless pillows will result and has already resulted, for hundreds of depositors stand to lose on their savings, not all it is true, but in all likelihood every depositor will stand some loss, and the fact that the closing of the bank cut off the source of supply for living expenses of so many people, is where the saddest part of the catastrophe comes in. Stockholders stand to lose all their investment, but that is not such bad feature as the man or woman who loses their savings, their means of sustenance. It is in truth terrible calamity on the whole people. The Texas County Bank was organized in December, 1904, with capital of $20,000. Commenced stock business January 9, 1905. First Board of Directors: Dr. Lynch, John A. Goodberlet, J. M. Gladden, Blankenship, Rutherford, Dr. Phemister and Dr. Officers were RutherPhemister President, ford and MeGee Cashier. Business was begun in the building now occupied by the Hubbard Coats barber shop. The new bank prospered from the first and began the erection of the in 1906 and new building present moved into the new location in 1907. The volume of business at one time reached over the half million mark, and handsome dividends were paid annually to the stockholders. The year 1926 was the only year in the history of the bank that dividend was not declared. The capital stock was increased from $20,000 to $50,000 in 1919, and the building was enlarged and new fixtures put in in 1919 1920. The Texas County Bank and has always been show place of our town, one of the handsomest and best arranged banking houses outside of the larger cities, in South Missouri. More notes were carried in the files of the Texas County Bank than in any other bank in this section outside of Springfield, not more in total amounts but more in number. All bank examiners reported this fact when they made their examinations. At the close of the war the bank had almost unlimited funds and wanted to loan them. Big loans were made and like the history of many another institution of this character. some of these loans proved later to be Brozen in other words under the condition of financial affairs which have come up in later years were uncollectable. Several of these "frozen notes have been charged off during recent years, reducing the money and efforts were made to make further collections but in many instances this could not be done without driving customers to the wall. Having to charge off some bad notes during the past year caused the earnings to be so low that for the first time in the bank's history no dividend was declared. In this weakened condition the elimax came two weeks ago when by political and personal pull the transfer of $25,000 account was made from the Texas County Bank to the Bank of Houston. The after-climax was the circulation of propaganda, rumors and reports throughout the country which caused withdrawal of funds and run on the bank was very imminent. No bank in its healthiest condition can withstand run depositors, and this double loss bearing down on this bank caused the sign "Closed by Order of the Board Directors" to be hung out Friday morning. The last meeting of the Board of Directors was held Thursday afternoon and these men wrestled with the proposition until night without being able to see their way through. They adjourned over until Friday morning in hopes that some relief from the impending danger could be found. At this Friday morning meeting it was decided that the bank could not be longer kept open without the officers being liable to prosecution, and the closed sign was hung out, with very sad and gloomy Board of Directors passing out of the institution that they had labored for and loved well for the past twenty years. The havoe that was to be brought about in our community bore heavy on the hearts of these men, who are representative citizens, all of them. A message was sent to the State Banking Department at once and Saturday morning Mr. G. U. Freund, Bank Examiner, arrived here and the Directors signed the bank over into his care. He with assistants are ing through all the bank's business affairs, and until this examination completed there is nothing else to give out. The present Board of Directors of the Bank Rutherford, Dr. are Womack,, Gladden, Blankenship, E. K. Lyles and W. McGee. The officers are Gee A. Smallwood Cashier. W. H. Morgan Assistant Cashier, H. E. Harmon Bookkeeper. As developments come The Herald will endeavor to give them' to the publie, but all realize that this bank crash is the worst. most demoralizing blow that this town and community has ever received.
