15468. Bank of Aline (Aline, OK)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
September 1, 1931*
Location
Aline, Oklahoma (36.510, -98.449)

Metadata

Model
gpt-5-mini
Short Digest
a7f311a128a21c4d

Response Measures

None

Description

Articles describe a rumor-driven run on the Bank of Aline (Sept 1931) that caused a temporary suspension while the State Bank Commissioner investigated; the bank was found solvent, depositors pledged not to withdraw, and operations resumed. A later 1934 line-item shows the bank moved from moratorium to liquidation (Jan 8, 1934), but the contemporaneous articles provided emphasize the 1931 run and short suspension with reopening. I therefore classify the immediate episode as run → suspension → reopening. Bank type not specified in the texts.

Events (4)
1. September 1, 1931* Other
Newspaper Excerpt
The investigation proved the bank to be solvent and in a satisfactory condition. The run was stopped and the bank is operating today under normal conditions.
Source
newspapers
2. September 7, 1931 Run
Cause
Rumor Or Misinformation
Cause Details
Rumors circulated in Aline connecting the bank with another institution said to be in financial difficulties; led depositors to withdraw funds.
Measures
Paid out large amounts to depositors; suspended business until State Bank Commissioner investigation; obtained pledges from over 90% of depositors not to withdraw.
Newspaper Excerpt
the operations of the Bank of Aline ... was temporarily suspended on September 7th, because of a false report ... after paying out a large amount of money to depositors who had made a run on the bank
Source
newspapers
3. September 7, 1931 Suspension
Cause
Rumor Or Misinformation
Cause Details
Temporary suspension invoked after heavy withdrawals caused by circulating rumors; suspension used to allow state investigation and to stop further withdrawals.
Newspaper Excerpt
the operations of the Bank of Aline ... was temporarily suspended on September 7th ... suspended business until the State Bank Commissioner could investigate the situation
Source
newspapers
4. January 8, 1934 Suspension
Cause
Voluntary Liquidation
Cause Details
Listed in a state bank summary as moving from moratorium to liquidation on Jan 8, 1934; suggests later closure/liquidation not clearly tied to the 1931 run.
Newspaper Excerpt
Aline- Bank of Aline, from moratorium to liquidation.
Source
newspapers

Newspaper Articles (3)
1. September 1, 1931 The Oklahoma Banker Oklahoma City, OK
Article from The Oklahoma Banker, September 1, 1931

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Article Text

sess more power than standing armies and should guard what they say as they would dynamite and gun powder. Recently the Chatham Phenix National Bank, New York City, caused the arrest of a broker who spread a false report about the solvency of that institution. Oklahoma has the same law. The operations of the Bank of Aline, one of the cleanest little banks in the State of Oklahoma, was temporarily suspended on September 7th, because of a false report which was the result of a rumor circulated in the Aline community connecting the bank with another Aline @stitution, which they say is known to be in financial difficulties. The bank, after paying out a large amount of money to depositors who had made a run on the bank, suspended business until the State Bank Commissioner could investigate the situation. The investigation proved the bank to be solvent and in a satisfactory condition. The run was stopped and the bank is operating today under normal conditions. Why do such reports have to be circulated? In connection with the Chatham Phenix incident. the Oklahoma News had the following to say: "But, if false rumors make depositors hysterical, and they all want their money at once, banks get into difficulties. Banking is founded on confidence. When a liar jars the confidence of enough people and the people lose their heads, there may be trouble. More courage on the part of banks in 'stepping on' the scandal-monger would save 90 per cent of the bank failures. People should be punished for letting their tongues wag. It is a peculiarly vicious practice-almost invariably the most idle gossip. The susceptible should be protected against them." REAT BRITAIN has been put to the crucial test G in the past months. Having borrowed short to lend long, she was perilously near the point too many banks arrive at when they freeze demand deposits in long time loans. Great Britain was determined to protect the exchange value of her currencies and the Bank of England has been mobilizing its foreign assets in order to buy the sterling which has been sold by foreigners, principally out of the balances which they hold in London in the form of bank deposits, and has used many million pounds worth of its gold to preserve its exchange rate. Bank and Trust Company : Mayor Blinn, Carl C. McGee and others, who described the building as a monument of stone builded on the faith of its backers. Music for the occasion was supplied by an Amarillo, Texas, band, Mrs. Marvin Kahn of Galveston, Texas : Helen Mulane, Harlingen, Texas, and the Yoeman Kiltie vocal trio. The program was broadcast over KFJF. A stationary beacon of 50,000 candle power will be of great service to aviators in dirrecting them to the air port and the revolving beacon of 2,500,000 candle power can be seen a distance of 100 miles.

2. September 19, 1931 Harlow's Weekly Oklahoma City, OK
Article from Harlow's Weekly, September 19, 1931

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Article Text

Bankers About Banl ALINE BANK SUPPORTED OLLOWING a run on the Bank of Aline, recently, operations of the bank were suspended temporarily, the officials having decided not to resume business until assured that customers would not start another run. While the doors were not closed, no money was being paid out nor deposits received. An official of the state banking department found the bank in good condition, and after a few days suspension, operations were resumed. In this interval, pledges were obtained from more than 90 per cent of the depositors, not to withdraw their deposits. the run which threatened the security of the bank was caused by rumors which had been current for some days, that the bank was closely connected with another institution which was known to be in financial difficulties. The Alva Review Courier comments on the handling of this emergency, with praise for the banking department, as follows: A real and apparently honest effort is being made by the state banking department to save the bank at Aline. It is a very commendable effort and the department should receive the hearty co-operation of the depositors of the institution and of the people of the Aline community. In the past the policy of the banking departments, not only of Oklahoma, but of other states and of the nation has been entirely too cut and dried. In hundreds of cases sympathetic working out of the problems of the troubled bank in a manner similar to the Aline case would have saved depositors every cent of their deposits. A policy of requiring banks to be absolutely liquid-meaning that all notes can be collected on their due date-dões not work in such times as these-in fact never has worked. If a bank has paid as much as fifty per cent under a receivership, it would have paid in full under careful and supervised control of the banker. We commend the banking department for their efforts to keep the bank open and predict that with co-operation on the part of the community the bank will be saved. Certainly the matter is being handled in the right manner. MORTGAGE NOT PRIOR LIEN RECENT suit in district court at DunA can brought the ruling that taxes are a lien prior to a mortgage, on chattels, and last week the First National Bank of Comanche failed in its suit for injunction to prevent the sheriff from selling for taxes, livestock on which the bank held a mortgage. The bank is expected to appeal the decision to the Supreme Court. BANK CLOSED THE Farmers and Merchants Bank of Crescent was closed last week, with the state banking department taking charge. Farm loans which could not readily be liquidated were given as the cause for the bank's trou- ble. It is considered, however, that a high per cent of the loans are collectible, and that there will be little or no loss to deposi- tors when the bank is liquidated.

3. January 1, 1934 The Oklahoma Banker Oklahoma City, OK
Article from The Oklahoma Banker, January 1, 1934

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Article Text

STATE BANK CHANGES December and to January 9th Voluntary Liquidation Putnam-First State Bank, through First National Bank, Thomas, December 8, 1933. Oakwood- Oakwood Bank, through American State Bank, Thomas, December 9, 1933. Porum-American State Bank, through Citizens National Bank, Muskogee, December 27, 1933. Roff-First State Bank, through First National Bank, Ada, December 30, 1933. Morgers First Bank of Lahoma and Bank of Ringwood, merged and moved to Meno as Guaranty Bank, December 20, 1933. First State Bank of Omega and Cashion State Bank, merged and moved to Kingfisher as Security Bank, December 27, 1933. Bank of Claremore merged with Bank of Commerce, Claremore, December 19, 1933. Consolidation Lindsay-First State Bank with American Exchange Bank, January 2, 1934. Change of Name and Location Colony-Colony State Bank to Weatherford as Security State Bank, January 2, 1934. Breckenridge-Bank of Breckenridge to Garber as Bank of Garber, December 29, 1933. Oklahoma City-Capitol State Bank, suspended for voluntary liquidation, January 2, 1934. Tipton-Farmers State Bank, suspended Jenuary 2, 1934. Weatherford-First State Bank, suspended January 2, 1934. Rush Springs-First State Bank, suspended January 2, 1934. Sterling-Farmers & Merchants Bank, suspended December 19, 1933. Faxon-Faxon State Bank, suspended December 7. 1933. Garber-Farmers State Bank, suspended January 2, 1934. Increase of Capital Stock Ringwood-Bank of Ringwood, $5,000 December 12, 1933, making now $15,000. Cashion-Cashion State Bank, $10,000, December 27, 1933, making now $25,000. Colony-Colony State Bank, $10,000, December 20, 1933, making now $25,000. Breckenridge-Bank of Breckenridge, $5,000, December 29, 1933, making now $15,000. Lindsay-American Exchange, $15,000, January 2, 1934, making now $40,000. Charter Granted Davidson-First State Bank in Davidson, December 4, 1934, capital stock $25,000. January 4, 1934, Longdale-Bank of Longdale, from moratorium to liquidation. January 5, 1934, Goodwell-First State Bank, from moratorium to liquidation. January 8, 1934, Aline-Bar.k of Aline, from moratorium to liquidation. January 9, 1934 Fairmont-Bank of Fairmont, moratorium to suspended, January 10, 1934 (as of January 2, 1934). Anadarko-First State Bank, moratorium to unrestricted.