Citizens State Bank

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: May 25, 1922
Location: Lamar, Colorado (38.087, -102.621)

Metadata

Model: gpt-5-mini
Short Digest: b900b9c4

Response Measures

Full suspension, Books examined

Description

Newspaper accounts (May 1922) report rumors and steady withdrawals that developed into a run (Thu–Fri), the bank kept paying until closing hour but could not meet clearings and did not open (26–28 May 1922). State bank commissioner took charge and the institution did not resume normal operations; by April 1923 depositors were receiving small dividends under the commissioner's administration. Cause of the run is described as rumors/withdrawals although an affiliated Kansas City bank's failure is cited as an indirect factor.

Events (3)

1. May 25, 1922 Run

Cause: Rumor Or Misinformation
Cause Details: Rumors circulating in the town caused steady withdrawals for a week and developed into a regular run on Thursday and Friday prior to the bank's closing.
Measures: Bank kept up payments of all checks until the closing hour on Friday afternoon.
Newspaper Excerpt: Rumors that had been spread in various manners had been causing steady withdrawals for a week which on Thursday and Friday developed into a regular run.
Source: newspapers

2. May 26, 1922 Suspension

Cause: Correspondent
Cause Details: Unable to meet clearings after heavy withdrawals; press reports note failure of a Kansas City bank that held considerable of the local bank's paper as an indirect cause of the financial stringency.
Newspaper Excerpt: The Citizens State bank of this city failed to open its doors this morning. A notice posted gave the information that the bank was in the hands of the state bank commissioner.
Source: newspapers

3. April 4, 1923 Receivership

Newspaper Excerpt: After Ten Months of Anxious Waiting Depositors Get Ten Per Cent Dividends. The bank closed its doors on the 26th of last May ... the bank commissioner's deputy, R.L. Ritchey, carefully went through the paper turned over to him ... paid the present dividend.
Source: newspapers

Newspaper Articles (6)

1. May 29, 1922 Arizona Republican Phoenix, AZ

Article from Arizona Republican, May 29, 1922

Click image to open full size in new tab

Article Text

Lamar State Bank Suspends Business LAMAR, Colo., May 28-The Citizens State bank of this city failed to open its doors this morning for business. A notice posted about noon today gave the information that the bank was in the hands of the state bank commissioner. It is reported that the failure of a bank in Kansas City was the indirect cause of the financial stringency forced upon the local institution, it being said that the Kansas City bank held considerable of the local bank's paper.

2. May 31, 1922 The Lamar Register Lamar, CO

Article from The Lamar Register, May 31, 1922

Click image to open full size in new tab

Article Text

BANK CLOSES DOORS Citizens State Bank Is Forced to Shut Its Doors Pending Reor rganization. Lamar business circles and citizens generally received the greatest shock for many years last Saturday when the early arrivals in the downtown district read the sign on the Citizens State Bank door that the institution had been closed by the board of directors for the purpose of reorganization. Later in the day a second sign went up that the bank was in the hands of the state bank commissioner. Excitement ran high all day as a bank failure was a forgotten feature of finance so far as Lamarites were concerned. The only previous experience the town had had was the failure of the Scott bank here in 1888. With a period of over one-third of a century between such incidents and only about two per cent of the population that is here now being residents at that time, the people can easily lose most all recollection of such events. The Citizens State Bank has been one of the leading financial institutions of the city for nearly fourteen years, and was the third largest bank of the county, having total assets of about $360,000 and deposits at the time of the last published statement on May 5th of $220,000. The latter had been considerably reduced at the time of closing the doors and are now under two hundred thousand dollars. Rumors that had been spread in various manners had been causing steady withdrawals for a week which on Thursday and Friday developed into a regular run. In face of this the bank kept up payments of all checks until the closing hour on Friday afternoon. They were unable to meet their clearings, however, with the other banks after the closing hour and were therefore forced to announce that the doors would not open on Saturday morning. The officers of the bank are J. M. Williams, president; Chas. Maxwell, vice president; J. D. Spooner, cashier; and Geo. A. Everett and Mrs. I. L. Maxwell, directors. They are all substantial business people of our city, and all have full faith that the difficulty is only temporary and the bank will be reorganized under a new name and opened again in a few weeks. Several additional business men of our city will assist in the reorganization. full a now The under depositors plan will being be paid formulated, in which will have to meet the approval of the state bank commissioner. Our citizens generally have accepted the inconvenience and trouble which the tying up of their funds will cause in a fine spirit ar they have confidence in the honor of the directors of the bank, and there has been a minimum amount of the usual complaints that are made on such occasion. It has complicated many business deals that were under way and has and will cause much annoyance, but it is not believed that there will be any serious loss ir. the long run. The temper of the people was best proved at the three other banks of the city. All had prepared for a panicky feeling on the part of the public and a run on all the banks. However, by closing time on Saturday all the banks found they had taken in as much on deposit as they had paid out and by Monday the people were over any semblance of distrust and the deposits overtopped the checks paid. Several of the banks in other towns of the county also prepared for a run but there was nothing even looking like excitement. Down in Baca county where there were two banks in which the Citizens State Bank owns an interest, The Bank of Baca County at Two Buttes and the Farmers State Bank at Springfield, there was more excitement. In Two Buttes the trouble was over long before closing time on Saturday as the bank had ample cash resources to quiet all alarm At Springfield a more serious situation developed as enemies of the Farmers State Bank organized a large sized run. The

3. June 2, 1922 The Democrat-Herald Springfield, CO

Article from The Democrat-Herald, June 2, 1922

Click image to open full size in new tab

Article Text

Two Banks Become Insolvent The deepest consternation prevailed in Springtield Monday when the Farmers State bank went into the hands of the bank commissioners, resulting from a run that was made Saturday, following the closing of the Citizens State bank at Lamar the day previous. We understand a Lamar party started the run, this having the effect of throwing a seire into others who followed suit. A run on a bank having reserves and resources as required by law is wickedly foolish. There probabiy is not one bank in a hundred during the stress of hard times that could stand a run, whereas practically all of them would come out all right if left alone. We are hoping the Farmers State will get onto its feet, and continue in business as before.

4. June 8, 1922 The Arvada Enterprise Arvada, Morrison, CO

Article from The Arvada Enterprise, June 8, 1922

Click image to open full size in new tab

Article Text

Pithy News Notes From All Parts of Colorado (Western Newspaper Union News Service.) Las Animas.-A class of twenty-four -fourteen girls and ten boys-recelved diplomas as graduates from the Bent county high school. Durango.-An attempt is being made to stock southwestern Colorado with ring-necked Chinese pheasants under the direction of Henry Dietrich of the State Fish and Game Department. Rocky Ford.-Bert Hopper has recelved two carloads of bees colonies, numbering more than 900, which is the largest shipment to this section for years. The bees were shipped from New Mexico. Lamar.-The Citizens' State Bank of Lamar failed to open its doors last Saturday morning. A notice posted gave the information that the bank was in the hands of the state bank commissioner. Longmont.-The annual summer field meeting and basket pienic of the Colorado Honey Producers' Association, and the Larimer and Boulder County Beekeepers' Association was held in Longmont, June 3. Cafion City.-Edward (Irish) O'Day, veteran auto stage driver between Cafion City and the Cripple Creek district, made his three thousandth trip between Cripple Creek and Cafion City by the auto stage route. Denver.-The City Council has pledged $20,000 to the fund for the University of Colorado medical school and hospital, thus completing the $150,000 public subscriptions needed to start work on the $1,500,000 structure. Pueblo.-Postmuster General Hubert Work disposed of all his interests in Woodcraft hospital, located in Pueblo, the property being purchased by Dr. C. W. Thompson, who has been assoclated with Dr. Work for the past ten years. Monte Vista.-E. L. Sprout, 67 years old, well known rancher, died of in. juries incurred when he was struck by H motor rail car recently. Sprout was walking along the tracks and, being slightly deaf, he did not hear the approach of the car. La Junta, Colo.-Mrs. John Richards, 19 years old, was burned to death when a can of gasoline which she was using to burn out a nest of red ants exploded. The woman became a living torch and was dead before taken to a hospital. Grand Junction.-Edwards' Apparel Shop was damaged by a fire of unknown origin here recently. The fire started in the upper basement and spread rapidly, endangering the business section of Grand Junction, but soon was brought under control. Denver.-Fruit growers in all Utah and Colorado districts served by the Denver & Rio Grande Western railway are assured of a normal crop of plums, peaches, pears and apples this year, according to a report made public here by the railway company. Durango.-To Mrs. Elvira Hamor, the only woman in full and complete charge of a fish hatchery in the United States, goes a new record in production of young fish. Employes of the Durango state fish hatchery are now completing the task of planting 2,000,000 brook trout in the streams of southwestern Colorado. Antonito.-Jose Risos was shot and seriously wounded in a jail break at Conejos, and Luiz Gonzales is at large being pursued by a posse and a pack of bloodhounds. Hayes, another prisoner, returned to the jall after running a short distance. Ben Martinez, the Jailer, was overpowered by the prisoners as he opened the door to put food into their cell at supper time. Denver.-Richard Pinhorn, proprietor of the Manhattan restaurant, the most widely-known restaurant in the West, died at few days ago at his residence in Denver, of uremic poisoning. Trinidad-Government postoffice Inspectors have released information of the loss of three pouches of registered mail stolen from the Santa Fé baggage room at Trinidad some time In the early morning of May 21 last. A checkup of the contents, Inspectors said, found that $8,000 in currency and $48,000 in Liberty bonds are missing. together with checks and money orders of unknown amounts. Las Animas.-The largest Irrigation development in Colorado during the last ten years is being made in Bent county, In the lower Arkansas Valley, under direction and control of the State Board of Land Commissioners and the state engineer. The land was government land, segregated and passed to the state under the terms of the Carey act, and comprises " fine body of 25.000 acres. The majority of

5. June 9, 1922 The Keota News Keota, CO

Article from The Keota News, June 9, 1922

Click image to open full size in new tab

Article Text

Pithy News Notes From Ali Parts of Colorado (Waters - Union New Service Las Animax.-A class of twenty-four -fourteen girls and ten boys-received diplomas as graduates from the Rent county high school. Durango.-An attempt is being made to stock southwestern Colorado with ring-necked Chinese pheasants under the direction of Henry Dietrich of the State Fish and Game Department. Rocky Ford.-Bert Hopper has re ceived two carloads of bees colonies, numbering more than 900, which is the largest shipment to this section for years. The bees were shipped from New Mexico. Lamar.-The Citizens State Bank of Lamar failed to open its doors last Saturday morning. A notice posted gave the information that the bank was in the hands of the state bank commissioner. Longmont.-The annual summer field meeting and basket picnic of the Colorado Honey Producers' Association. and the Larimer and Boulder County Beekeepers' Association was held in Longmont. June a Cafien City.Edward (Irish) O'Day. veteran auto stage driver between Cafion City and the Cripple Creek die trict, made his three thousandth trip between Cripple Creek and Cafion City by the auto stage route. Dearer.-The City Council has pledged $20,000 to the fund for the University of Colorado medical school and hospital, thus completing the $150,000 public subscriptions needed to start work on the $1,500,000 structure. Pucblo-Postmaster General Hubert Work disposed of all his interests in Woodcraft hospital. located in Pueblo, the property being purchased by Dr. C. W. Thompson, who has been assoc dated with Dr. Work for the past ten years, Monte Vista-K Sprout, G7 years old. well known rancher. died of in. juries incurred when he was struck by a motor rail car recently. Sprout was walking along the tracks and, being slightly deaf. he did not hear the ap: proach of the car. La Junta. Colo.-Mrs. John Rich ands, 19 years old. was burned to death when a can of gasoline which she was using to burn out a nest of red ants exploded. The woman became a living torch and was dead before tak on to a hospital. Grand Junction-Edwards Apparel Shop was damaged by a fire of unknown origin here recently. The fire started in the upper basement and spread rapidly. endangering the busi. new section of Grand Junction. but soon was brought under control. Draver-Fruit growers in all Utah and Colorado districts served by the Denrer & Rio Grande Western railway are assured of a normal crop of plums, peaches, pears and apples this year, according to a report made publle here by the railway company. Durango.-To Mrs. Elvira Hamor, the only woman in full and complete charge of a fish hatchery in the United States, goes a new record in production of young flsh. Employés of the Durange state fifth hatchery are now completing the task of planting 2,000,000 brook trout in the streams of southwestern Colorado. Antonito.- Rison was shot and seriously wounded in a Jail break at Conejos, and Luiz Gonzales is at large being pursued by . posse and a pack of bloodhounds Hayes, another pris oner. returned to the Jail after running a short distance. Ben Martinez, the jailee

6. April 4, 1923 The Lamar Register Lamar, CO

Article from The Lamar Register, April 4, 1923

Click image to open full size in new tab

Article Text

SMALL COMFORT After Ten Months of Anxious Waiting Depositors Get Ten Per Cent Dividends. Even a tenth of a loaf is better than no bread at all is about the feeling of the former depositors of the Citizens State Bank as they viewed the checks for their first dividends on last Friday. The bank closed its doors on the 26th of last May, amid much talk of opening again in a few days, but when the bank commissioner's deputy, R.L. Ritchey, carefully went through the paper turned over to him, he found that he had a long hard job in front of him if anything was to be saved for the depositors. What are usually called the bank's liquid assets had mostly been spilled in the months when the bank was holding on by a scant thread, and the only thing liquid about most of those left was that they would run indefinitely. Most of them are still running. The preferred claims and liabilities of the bank which had to be met took up a large part of the best assets, and it has only been by hard work and the sale of the bank's interest in the property where it was located that the present dividend has been paid. There are several matters in connection with the bank's affairs in the court's hands for decision, and the size of future dividends will probably depend on this. Mr. Ritchey will make no statement as to the probable amount the depositors will get, but those who have considerable knowledge of its condition do not believe the creditors can hope for any great per cent of their claim to be paid.