Mckinley County Bank

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: August 20, 1923
Location: Gallup, New Mexico (35.528, -108.743)

Metadata

Model: gpt-5-mini
Short Digest: 4e882965

Response Measures

None

Description

Article (The Winslow Mail, 1923-08-24) reports McKinley County Bank of Gallup closed its doors Monday morning and the State Examiner took charge; losses from cattle loans exceed capital and surplus. No large run is described (some anxious depositors gathered but no demonstration). I infer closure with examiner/receiver (suspension leading to permanent closure).

Events (3)

1. August 20, 1923 Receivership

Newspaper Excerpt: State Examiner Gregg took charge of the bank's affairs shortly after the notice of closing was posted on the front door.
Source: newspapers

2. August 20, 1923 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Large losses on cattle loans undermined bank security; loss estimated greater than capital and surplus (~$120,000).
Newspaper Excerpt: The McKinley County Bank of Gallup closed its doors Monday morning. State Examiner Gregg took charge of the bank's affairs shortly after the notice of closing was posted on the front door.
Source: newspapers

3. August 24, 1923 Other

Newspaper Excerpt: While groups of anxious depositors of the closed bank were gathered in Railroad avenue throughout the day, there was no demonstration. The three other banks of the city were prepared for runs, anticipating such action by some depositors.
Source: newspapers

Newspaper Articles (1)

1. August 24, 1923 The Winslow Mail Winslow, AZ

Article from The Winslow Mail, August 24, 1923

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Article Text

GALLUP BANK CLOSES DOORS EXTENT OF LOSS NOT KNOWN cattle undermined the security of the The McKinley County Bank of Galloans. lup closed its doors Monday morning. The extent of the failure cannot now McKinley county and the town of be determined. State Examiner Gregg Gallup funds deposited in the defunct took charge of the bank's affairs bank are amply protected by bonds, shortly after the notice of closing according to an announcement by was posted on the front door. city officials of Gallup, following the According to information received closing of that institution. here business men of Gallup were T. F. Smalling is president of the called in to try to save the bank, but McKinley County Bank. T. E. Purdy, it was found that there was too great C. C. Manning and Sam Bushman are a loss from cattle loans. It is estivice presidents. Harold Blickensdermated that the loss is more than the fer is cashier, and C. F. Heyn is assitant cashier. capital and the surplus, which is said to be $120,000. The closing of the bank failed to It will be a week before the examicreate over-excitement, according to information received here. The three nation will be complete enough to permit a detailed statement of any other banks of the city were preparnature, according to a statement of ed for runs, anticipating such action Examiner Gregg received here. by some depositors. But the city Notes now held by the bank itself kept its head, business moved along will be reduced to the extent of the as usual and the other financial inMakers' deposits, he said. This, howstitutions attained greater solidity ever, does not apply to notes which through increasing deposits. represents bills payable, or which While groups of anxious depositors have been re-discounted. He exof the closed bank were gathered in plained that where a person or conRailroad avenue throughout the day, cern made a note to meet a bill from there was no demonstration. The some other person or concern, that only indication that something unusual had happened was the presence note is not actually the property of the bank. Consequently, deposits of these groups in the street. With the other banks demonstratcannot be credited on paper of this nature. ing that all demands for deposits would be met on call, no one was The bank had deposits reaching $746,433,31, and loans amounting to anxious to withdraw money. It is impossible at this time to de$824,537.71. There were enough of these loans made on cattle to cause termine when the McKinley County the collapse of the bank, the examinBank will be in a position to begin er The in explained. depreciation paying depositors.