15551. Bank of Commerce (Coalgate, OK)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
February 4, 1927
Location
Coalgate, Oklahoma (34.538, -96.219)

Metadata

Model
gpt-5-mini
Short Digest
77e3c73791a43a28

Response Measures

None

Description

The Coalgate Bank of Commerce (described as a state bank) suspended on Feb 4, 1927 as a precautionary measure tied to a run on the McAlester Trust Company which froze reserve funds. Coverage states the closing was to avoid a run and that banks were expected to reopen; local reporting expresses hope for reorganization or reopening.

Events (1)
1. February 4, 1927 Suspension
Cause
Local Banks
Cause Details
Run on the parent McAlester Trust Company froze reserve funds of correspondent/related banks; nervousness among depositors led Coalgate bank to suspend as a precaution.
Newspaper Excerpt
The Bank of Commerce of Coalgate, state bank suspended last Friday morning at the same time the suspension of banks took place here in McAlester. The act of closing there was taken as a precaution to avoid run, on account of nervousness on the part of depositors...
Source
newspapers

Newspaper Articles (6)
1. February 4, 1927 Bristow Daily Record Bristow, OK
Article from Bristow Daily Record, February 4, 1927

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Article Text

5 Banks Topple In Failure Of McAlester Bank Assets Tied When McAlester Trust Company Fails to Open for Business Run On Other Bank National Institution Is Hard Pressed. But Stand Heavy Withdrawals of fifth bank southeastern sult of the failure this morning of the Trust today at the office state banking The bank of Pittsburg was the fifth Like the small banks involved reserve on deposit with the Vlester Trust pany had deposits $67.the close year. Five bank examiners were to take charge the banks that closed their result of the the Mc Alester Trust company, the parent bank. The other four institutions are the company, the Bank of North the State bank and Coalgate bank of commerce. Frozen by the pression in cotton caused the run on the Vlester Trust company was by Waldo sioner Reserve funds of the other three banks were on deposit with the trust company he said. The four institutions showed total deposits of nearly $2,500.000 when the state bank call was issued December Deposits of the Alester Trust company to taled the Wapanucka bank $22,000 bank $135000 the North ter $65000 Ernest, and Charles the aminers who have been assigned take charge of the failed insti- Both the Vlester Trust and the Bank of North Mc. Alester business this morning The the State bank Hartshorne and the Bank of Krebs, According financial statement that will be issued mediately the affairs of the MeAlester are such that the banks will re-open in the very The deposits of the two MeAlester institutions approximately two million dollars. Capital stock of the Trust company was $125,000 and the North MeAlester bank capitalization, $15.Banking conditions here caused furore excitement and when the First National bank. the only remaining bank in the city ened at o'clock run started. Depositors and spectators gathered in big throngs an hour before doors opened. Ample on hand assured to stem the Before 10:30 o'elock this mornpractically every business in Alester had made deposits in the First National bank. The number of depositors in line equalled the number of other per. seeking windows in the department. Several of the most prominent men of the munity took position outside of the bank and addressed the crowds. assuring them that the resources behind the Me Vlester banks are adequate protect deThe effect of these talks, considerable measure, tended to restore confidence prevailing found Morrison company

2. February 4, 1927 Muskogee Times-Democrat Muskogee, OK
Article from Muskogee Times-Democrat, February 4, 1927

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Article Text

SHUTDOORS OF PAIR AT M'ALESTER Directors Claim Frozen Credits; Run on Third Bank Narrowly Averted OKLAHOMA CITY, Feb., 4Closing of a fifth bank in southeastern Oklahoma as a result of the failure this morning of the McAlester Trust company was announced today at the office of the state banking commissioner. The Bank of Pittsburg was the fifth institution to close. Like the other small banks involved, its reserve funds were on deposit with the McAlester Trust company. It had deposits of $67,000 at the close of last year. Five state bank examiners were enroute to take charge of the banking institutions that closed their doors as the result of a run on the McAlester Trust company, the parent bank. The other four institutions are the McAlester Trust company, the Bank of North McAlester. the State bank and the Coalgate Bank of Commerce. Caused By Cotton Slump Frozen assets caused by the depression in cotton caused the run on the McAlester Trust company, It was said by Waldo Watkins, assistant bank commissioner. Reserve funds of the other three banks were on deposit with the Trust company. he said. The four institutions showed total deposits of nearly $2,500,000 when the state bank call was issued Deceme ber 31. Deposits of the McAlester Trust company totalled $2,200,000; the Wapanucka bank $22,000: Coalgate bank $135,000 and the North McAlester Institution $65,000. E. H. Kelly. W. Shofner, M. C. Thimble W. C. Ernest and Charles J Alexander are the who have been assigned to take charge of the failed NARROWLY ESCAPE "RUN" ON THIRD BANK Both the McAlester Trust company and the Bank of North McAlester suspended business this morning. The recent suspension of the First State bank of Hartshorne and the Bank of Krebs were contributing factors, It is said. According to a financial statement that will be issued immediately. the affairs of the McAlester institutions are such that the banks will reopen in the very near future, it is The deposits of the two institutions were approximately $2,000,000. Capital stock of the Trust company was $125,000 and the North McAlester bank capitalization was $15,000. Banking conditions here caused a furore of excitement and when the First National bank, the only remainIng bank in the city, opened at o'clock run started. Depositors and spectators gathered in big throngs an hour before the bank's doors were (See Number Two On Page Two)

3. February 4, 1927 Pawhuska Journal-Capital Pawhuska, OK
Article from Pawhuska Journal-Capital, February 4, 1927

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Article Text

FIFTH BANK IN SOUTHEASTERN OKLAHOMA FAILS Failure of McAlester Trust Company Brings About Failure of Bank of Pittsburgh. RUN ON BANK Only Remaining Bank at McAlester Withstands Heavy Run. OKLAHOMA CITY. Feb. 4, Closing of a fifth bank in southeastern Oklahoma as a result of the failure this morning of the McAlester Trust Company, was announced today at the office of state banking commissioner. The bank of Pittsburg was the fifth institution close. Like the other small banks involved its funds were on deposit with the McAlester Trust Co. It had deposits of $67,000 at the close of last year. Five state bank examiners were enroute to take charge of the banking institutions that closed their doors the result of run on the McAlester Trust Co., the parent bank. The other four institutions are the McAlester Trust Company, the Bank of North McAlester, the Wapanucka State bank and the Coalgate Bank of Commerce. Cotton Depression Frozen assets caused by the depression in cotton prices caused the run on the McAlester Trust Company, it was said by Waide Watkins, assistant bank commissioner. Reserve funds of the other three banks were deposit with the trust company, he said. The four institutions showed total deposits of nearly $2,500,000 when the state bank call was issued December 31. Deposits of the McAlester Trust Company totaled the Wapanuca bank $22,000; the Coalgate bank $135,000; and the North McAlester institution $65,000. E. H. W. Shofner, M. Thimble, W. Ernest and Charles Alexander the examiners who have been assigned to take charge (Continued on Page 3)

4. February 5, 1927 Evening Star Washington, DC
Article from Evening Star, February 5, 1927

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Article Text

OKLAHOMA BANKS UNDER SUPERVISION Examiners in Charge of Five, Due to Run on Parent Institution. By the Associated Press. McALESTER, Okla., February 5.Five banks serving the Oklahoma coal field territory, with deposits estimated at $2,500,000, today were under the supervision of State bank examiners as a result of a run yesterday on the McAlester Trust Co., the parent institution. Waldo Watkins, assistant bank examiner. attributed the closing of the trust company to frozen assets caused by a slump in cotton prices. This, he said, tied up the reserve funds of the other institutions, forcing a suspension of business. Banks affected besides the parent institution, are the Bank of North McAlester, the Wapanucka State Bank, the Coalgate Bank of Commerce and the Bank of Pittsburgh. Although depositors began to draw money from the First National Bank of McAlester, most of the withdrawals stopped when the bank met all demands and customers then started to redeposit funds. A new double violet, with excep-tionally large petals, has been named after Princess Mary of England.

5. February 5, 1927 St. Louis Globe-Democrat St. Louis, MO
Article from St. Louis Globe-Democrat, February 5, 1927

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Article Text

5 OKLAHOMA BANKS CLOSE DOORS IN DAY Run on Parent Bank in McAlester Causes Crashes. By Associated Press. OK., February bank tonight were en route to Southeaste to take five that closed their doors day as the result run the Trust parent depository Besides Trust pany the are Bank of North the Wa panucka State Bank, the Coalg Bank of Commerce and the Bank of Pittsburgh Frozen due to depression the run Waldo assistant bank He reserve funds the other four were on deposit with the trust Total deposits of more than 000 were by the when the state call was ber An incipient started the First of when some became alarmed the closing of the other banks All called for their money and confidence was further restored

6. February 10, 1927 McAlester Democrat McAlester, OK
Article from McAlester Democrat, February 10, 1927

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Article Text

Coalgate Bank In Suspension Also The Bank of Commerce of Coalgate, state bank suspended last Friday morning at the same time the suspension of banks took place here in McAlester The act of closing there was taken as a precaution to avoid run, on account of nervousness on the part of depositors, and not because of bad condition of the bank. The same unfortunate scare that caused the original in this county kept gathering force until the other banks related to the parent-bank here decided to close doors for the time being. The Bank of Commerce, at its close of business, December 30, showed the following principal items less expense $2,155; deposits, $127,900 cashier's checks, $7,541 warrants sold, $9,000: notes, redis counted $27,400. Assets: Loans and discounts, $78, 600; stocks, bonds, $97,000; furniture and fixtures $5,150 ther real estate, $5,338; due from banks, $3,100; checks and other cash items, $875; exchange, $1,500; bills of ex change, $600: cash in bank, $9,657 "So far as known the local management of Bank of has been very conservative and is blameless," says the Coalgate Courier. Berry McAlester. of this city, was president of he bank Grant Omstead, vice-president; E. E. Wilson, formerly of Kiowa, cashier, and L. A. Conner, assistant cashier. Wilson was forms erly state bank examiner Citizens of Coalgate are highly hopeful of the situation there and in the future reorganization or practically complete liquidation of the bank. All that is required, it is stated, is time to carry the processes out orderly SUBSCRIBE FOR THE GUARDIAN