10284. Bank of Commerce (Kansas City, MO)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
state
Start Date
December 1, 1907*
Location
Kansas City, Missouri (39.100, -94.579)

Metadata

Model
gpt-5-mini
Short Digest
8a1114cc

Response Measures

Capital injected, Full suspension

Other: Comptroller of the Currency required reorganization and new officers; 'lid' on withdrawals mentioned in press.

Description

Articles (Dec 1907) report heavy withdrawals/a run (paid out ~$19,000,000), followed by the bank closing/suspension. Press describes 'slanderous stories' and 'insidious whispering' as the proximate cause; the Comptroller and stockholders later negotiated reorganization terms but these articles do not confirm a final reopening. Therefore classified as run → suspension with reopening uncertain.

Events (3)
1. December 1, 1907* Run
Cause
Rumor Or Misinformation
Cause Details
Persistent slanderous stories/insidious whispering and loss of confidence led depositors to withdraw massive funds; out-of-town banks withdrew large balances.
Measures
Paid out about $19,000,000 over ~30 days; reduced loans, sold high-grade bonds, bankers put on a 'lid' restricting withdrawals; attempted to meet demands until suspending.
Newspaper Excerpt
The Bank of Commerce made a gallant fight for its life, and the thing that pulled it down was its payments aggregating $19,000,000 ... Slanderous stories concerning the bank seem to be the real cause for the lack of confidence expressed by the depositors in withdrawing their funds.
Source
newspapers
2. December 3, 1907 Suspension
Cause
Rumor Or Misinformation
Cause Details
After heavy withdrawals driven by slanderous stories and loss of confidence the bank was compelled to close and suspend business; internal dissension also cited as factor in some reports.
Newspaper Excerpt
the Bank of Commerce of Kansas City, Mo., with its doors closed and business suspended...
Source
newspapers
3. December 15, 1907 Other
Newspaper Excerpt
Efforts to reorganize the defunct Bank of Commerce of Kansas City can secure the sanction of the Comptroller of the Currency only under certain conditions ... none of the officers and directors of the present institution can serve in that capacity under the new regime. The Comptroller ... is very hopeful that the bank will be able to resume business within a short time.
Source
newspapers

Newspaper Articles (8)
1. December 5, 1907 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, December 5, 1907

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DOES NOT HURT. (Continued from Preceding Page.) thus far do not seem to be in any speclal trouble. The funds which they may have had on deposit with the National Bank of Commerce comprise such a small portion of their total resources that I do not anticipate there will be any serious disturbances. Nor is it at all unlikely that these Kansas banks will eventually recover by far the greater portion of their deposits. Of course it may tie them up for a time, but they were tied up considerably anyway, and I doubt whether it will make very much difference." Secretary of State C. E. Denton, who is the owner of a number of banks in southern Kansas, said: "Of course this is a hard blow, but it is not nearly so bad as it would have been if it had come thirty days ago. The Bank of Commerce made a gallant fight for its life, and the thing that pulled it down was its payments aggregating $19,000,000, most of which went to help its correspondent banks in Kansas. There are about forty banks in Kansas which are owned or controlled by the Bank of Commerce." Doesn't Affect State. State Treasurer Mark Tulley said: "This flurry in Kansas City does not trouble the state in the least. The state's money is absolutely secure, even though every bank in the state should break. Each depository bank has in the state treasury bonds worth several times the size of its deposit. I do not believe that there will a very serious difference in the existing conditions in Kansas, though it may be some time before the bankers take off the 'lid.' Attorney General F. S. Jackson, who is part owner of a bank in his county, said this morning: "We have known for a week that this was likely to happen, and have canvassed the situation carefully. We believe that there is no doubt that every bank will get all of its money back out of the assets of the Bank of Commerce. Consequently I am not worried about the condition of the bank in which I am interested, because I know we are safe. I have also concluded that the 'lid' which the bankers put on withdrawals was a very good thing. Up to the present time I had believed that was entirely unnecessary. I now am convinced that it was a very safe move, and will do much to allay any fear of a run, because everybody knows that no one else can start anything." No Large Santa Fe Balance. There have been persistent rumors that the Santa Fe railroad was caught with large deposits in the Bank of Commerce but this is denied by the treasurer of the road, E. L. Copeland, who said: "I do not understand how such a rumor could have been started as we have but a small balance on deposit in the suspended bank. Our large account is carried with the First National Bank of Kansas City, the largest institution in the city and the account carried with the Bank of Commerce was merely for our own accommodation in taking care of matters handled through that institution. "I just had a talk with Dr. Woods, the president of the Bank of Commerce, during which he assured me that the assets of the closed bank will liquidate all outstanding indebtedness and that the bank will pay dollar for dollar. Over $18,000,000 has been paid out by the institution during the past thirty days; a wonderful record for any banking institution and this of itself is an evidence of the solvency of the institution.

2. December 6, 1907 The Washington Times Washington, DC
Article from The Washington Times, December 6, 1907

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Kansas City Bank Failure Due to Internal Strife Declare Treasury Officials Treasury officials who are familiar with teh workings of the Bank of Commerce, which failed in Kansas City, declare that the closing of the institution was not so much due to the present financial condition as to a state of internal dissension that has exlisted within the directorate for a year and a half. A bitter fight has been waged between the president and cashier of the bank on one side and the stockholders who live in St. Louis on the other. The St. Louis men, who own about a third of the stock, have been striving to secure a change in the management and have made various charges against President Woods, Vice President Winants, and Treasurer Rule. These charges failed in court, and the St. Louis men were beaten in their offorts to bring about the fall of the powerful officers. The Comptroller of the Currency has been thoroughly conversant with the conditions and therefore does not attach as much signiflcance to the bank's suspension as he otherwise would. He is very hopeful that the bank will be able to resume business within a short time.

3. December 10, 1907 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, December 10, 1907

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From the published statements of the conditions of the banks in the country at the end of business on December 3, it would seem that the Bank of Commerce of Kansas City, Mo., with its doors closed and business suspended, is in a better financial condition than many other banks which are still doing business.

4. December 13, 1907 Barton County Democrat Great Bend, KS
Article from Barton County Democrat, December 13, 1907

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THE BANK OF COMMERCE FAILURE. Some of the Causes That Led Up To It. From the Kansas City papers we take the following about the Bank of Commerce failing The bank has been considered one of the strongest in the midule west. and was rated the largest beween St. Louisand Kansas City. At the time of the statement made in August the deposits amounted to about thirty five million dollars In the last six weeks or since the panic began. the bank has paid off 19 mill on of its deposits, in the mean time reducing its loans only 31/2/million dollars. cut down its cash "resources 113/4 millions and sold 2 millions of high grade bonds. all in the efforts to meet the demand upon it, but with out avail. Slanderous stories concering the bank seem to be the real cause for the*lack of confidence ex pressed by the depositors in withdrawing their funds. Of approximately the 16 millions now on deposit 5 millions belongs to Kansas City people. and 11 million to out of town banks. Dr. Woods, the president in an interview made the following statement. among others. "The Waters-Pierce Oil Company did us a tremendous amount of harm. Two weeks ago they sent to all their agents "and traveling men in the Southwest circular letters telling them that in making collections they might take checks on any bank,in Kansas Citv except the National Bank of Commerce. These were shown to traveling men and reached the country banks that had deposits with us. Millions in country banks deposits were tranferred to other banks there and to banks in St. Louis. Those circulars helped to cause it in my opinion. Our offense had been to insist on the pay nent of a balance by a bank in St Louis in which the oil people were interested." From reports received by John Q. Royce, state bank commission er of Kansas. it is indicated that Kansas banks had withdrawn at least10 million dollars from the Bank of Commerce in the last six weeks, and therefore is no danger to any Kansas banks except those which are practicaly "owned by the Kansas City Bank. of which there are two or three. Cone Bros. of St John were here on business SaturdayMiss Edna Thomas of Ellinwood was in the city Thursday. A. F. Kuhl and E Pieger of Albert were here Friday on business. Mrs. J. T. Omer visited with Mrs. Wirt Dawson of South Bend Friday. County Attorney James W. Clark was at Hudson trying two law suits. Miss Alice Gastrohm of Los Angeles California is visiting Mrs. E W Moses Mrs. and Mrs Jake Gustin of Ga latia were visiting with John Gustin this week. Hon, EE. Frizell and family visit ing with Mr. and Mrs. W.F. Honnen and Miss Beulah Dumont the first of last week. Harry Van Aken manager of the Lindas Lumber comdany at Albert was transacting business and visiting friends here Friday. Dan Carey of Claflin, Kansas arrived in Gardeu City this morning to bio real estate interest- here

5. December 15, 1907 The Washington Times Washington, DC
Article from The Washington Times, December 15, 1907

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DEMANDS NEW OFFICERS FOR KANSAS CITY BANK Efforts to reorgnize the defunct Bank of Commerce of Kansas City can secure the sanction of the Comptroller of the Currency only under certain conditions. One is that none of the officers and directors of the present institution can serve in that capacity under the new regime. The Comptroller authorized this announcement yesterday, after a long conference with Senator Warren of Missouri and O. H. Dean, of Kansas City. "There should be," he declared, "such a reorganization of the board of directors and officers of the bank that the new board and officers should be free from all responsibility for the suspension of the old bank: and be men," he continued, "who must also be of such standing as to inspire and command confidence throughout the West." Other requirements are the restoration and increase of the capital stock and ample money on hand to meet all demands. Comp:roller Ridgely announces that he will go to Kansas City and personally aid in the reorganization as soon as a definite plan is ready for consideration.

6. December 31, 1907 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, December 31, 1907

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A LOOK of 1907 Reviewed and Panic Compared With Others. in Of Less Severity and Shorter Its Duration. CLOSE OF THE YEAR and Safer Conditions Finds Sounder Than the Beginning. Numerous and Effectual Measures of Relief, The Dec. year and 1873 New York, go down with panicky 1857, years in 1907 will of the the re1893 as one finance, but despite to which American stress and strain been submarkable financial structure with has conditions and jected, the the year safer closes than they were when stronger the year began. with the feeling in The year opened quarters that speculation an unconservative already been carried that to prudence had height and upon bankwarranted imposed by conditions That feeling oper- the ers was and capitalists extent roughout scarcity of ated to some that there was securities year and for absorbing new diminished capital was indicate stock by and the bonds on the transaction ctions stock in exchange. upon the New York the pressure by the The source of indicated took money market of securities is which prior to the large during issues several compiled years by a show- leadplace Statistics Brusels crisis. financial journal issue in hroughout end- the ing that the total the four years aned ged for $3,400,000,00 In nually world about issues of eleven months ing 1906 the United States of 1907 were and $1,073,990,000. stock for the 359 500 and making of bond up a renotes of $1,731,349.50 which capital been total The extent to strained was not to the resources had striking manner silent panic general vealed in public until overshado the by of remar of March 15 but now at the time one rkable later events, serious and has ever 19 the most the market points in breaks which The loss of in single day suffered copper smelting. 22 in Amalgamated in merican Pacific aide3 at 21 points 25 in Union declines Reading and previous considerable out margins to rate wiped and wrecka slower calling of loans speculators. compelled fortunes of many only slowly early ed the recovered summer The market the spring and in August; but during new reactions that the to suffer until mid force with the it was broke not in all its United Copstorm of the corn in Morse-Heinz collapse the appeal of the house for help per. the eari such help banks and the to refusal crowd to extend was eliminated. Events until the old Moved Swiftly. of the heels moved fast on K nickerbocker 22. Events revelations closed The October in these company $8,000,000 runs Trust after paying were out begun about on other bank all practicall cash and trust York companies: banks suspended certificates cash were were issued; the New clearing house fell and began payments; foreign exchange Secretary Corof governannounced gold imports made heavy deposits his plan telyou ment funds and from the hoards for drawing money an increase in bank the circulation and permitting by the offer to cent per public and note of $50,000,000 in $100 .000,000 Panama canal ertificates bonds bearing interyear ce This announcein est one at per cent. by vigorous let- did ment, accompanied President Rooseve bankers ter from in the opinion of many only about much necessary to issue eventu lly it of was to stay the panic the so that bonds and $15,000.000 of improved $25,000,000 the certificates. slowly and The situation in New York bank each rethe deficiency duced progressively 28 week, serves was until it stood on December at The only national $20,170,350 banks much have better stood than up un- in der the pressure stages of the crisis time of were 1893 the early suspensions at that months of June, The in the three 84 banks about 160 August, although The numJuly and resumed business. hardafter ward national bank suspensions recent ber of dozen during the ly equaled most a important being that of of panic, the Bank of Commerc the National The permanent effect of Kansas City. banking system of upon scarcity the national of capital and collapse has not various the busing but enterprises there are no indicait that tions been revealed will be so severe as after the panic of panic 1893. broke on November was When the the total bank circulation then taken 1 $608,980,466 1907, The measures promote cirSecretary Cort elyou to the monby in order to tide over an increase culation stringency ulted in the next seven etary $75,000,000 during stood on of about that the circulation December weeks, SO 21. 1907. at $683,795,925 Movement of Gold. bank Accompanying the increase to meet of the note circulation in order was the dramatic pressure for currency $106,000,000 in gold of nearly of about movement within a period of the from Europe The official figures for six weeks showed imports amounting of gold to treasury of November than twice the month which were more preced$63,463,036 importati tions for the came ing the total ten months. The rema This enormous early in December of gold was fact litated by movement arrest of imports of luxuries the sharp combined effort by producers and bankers to ship promptly railways and the large crops of cotton, to Europe farm products of the season autumn wheat and other Imports of chanmuch as $125.dise which had been as to an average of 806,403 in August fell for the next three about 109.000,000 $110,789,109 for Nomonths ending with merchandise on other the vember Exports hand which of had been as low to August advanced $180,256,085 as $127,270,447 in October in and $204,444,360 in November another source the swelled volume by of From in circulation was money currency increase of deposits of public June the banks from $181,700,053 on This in the $259,851,004 on December had 26. been 30. to of about $78,000,000 to the increase deposited in the banks prior various partly panic but from these

7. February 5, 1908 The Star and Newark Advertiser Newark, NJ
Article from The Star and Newark Advertiser, February 5, 1908

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CLOSED BANK WANTS RIDGELY. ST. LOUIS, Feb. 5.-Ex-Governor David R. Francis, chairman of the stockholders' committee of the suspended national Bank of Commerce, of Kansas City, after conferences nitiz Comptroller Ridgely yesterday said that the committee will recommend to the bank's creditors and stockholders that they take out $1,400,000 of undesirable assets and place $1,000,000 cash in the bank to reopen it, as required by Mr. Ridgely. Mr. Francis also dénied that Mr. Ridgely had agreed to become the bank's president. Negotiations to get Mr. Ridgely to head the reorganized bank are said still to be on.

8. October 16, 1917 The Twice-A-Week Twin Falls Times Twin Falls, Kimberly, ID
Article from The Twice-A-Week Twin Falls Times, October 16, 1917

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this country President Wilson said that the condition was purely psychological; it was and the condition which threatened the financial fabric was doubt. Doubt caused the panics and it was only the return of faith, the restoration of confidence that ended the panic. In 1907 when certain interests desired to create disturbance they did so by creating a doubt as to financial conditions. The great Bank of Commerce at Kansas City was one of the strongest institutions, but because it was insidiously whispered around that this institution was shaky, people lost confidence and finally a run was started and after the bank had stood an unheard of strain for days it was compelled temporarily to close its doors, because it was being assassinated by doubt. God asks us only that we have as much sense in religion as in other things." After a description of the state of confidence in which his father an aged Methodist minister had passed into the beyond, a description that caused many to shed tears, Bishop magnes closed with an eloquent peroration in which he showed the accomplishments of faith, as contrasted with the lack of achievements of doubt in advancing civilization, in furthering science and discovery and