First State Bank - Sulphur, OK

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: November 19, 1907
Location: Sulphur, Oklahoma (34.508, -96.968)

Metadata

Model: gpt-5-mini
Short Digest: 640cd4d3e78710ee

Response Measures

None

Description

Article (Nov 19, 1907) describes the First State Bank of Sulphur exhausting its supply of ready cash, paying no checks that day, depositors convening and pledging support. This is a liquidity-driven run tied to a broader currency stringency rather than a suspension or closure; the bank remained in operation with measures to reassure depositors.

Events (1)

1. November 19, 1907 Run

Cause: Macro News
Cause Details: General currency stringency / 'currency famine' affecting the area; shortage of ready cash rather than bank-specific fraud or rumor.
Measures: Bank officials explained condition to depositors; depositors agreed to stand by the bank; accepting time certificates of deposit (6% interest, 6-12 months); stockholders offered private property as security; limited currency payments.
Newspaper Excerpt: On account of the stringency of the times the First States Bank of Sulphur has run short of ready cash. The bank opened Saturday morning but received no deposits and paid no checks.
Source: newspapers

Newspaper Articles (1)

1. November 20, 1907 The Daily Ardmoreite Ardmore, OK

Article from The Daily Ardmoreite, November 20, 1907

Click image to open full size in new tab

Article Text

SULPHUR BANKS FIRST STATE BANK EXHAUSTS SUPPLY OF READY CASHDEPOSITORS CONFIDENT. Sulphur, Okla., Nov. 19.-On account of the stringency of the times the First States Bank of Sulphur has run short of ready cash. The bank opened Saturday morning but received no deposits and paid no checks. There was no excitement The day was spent by the bank officials in explaining to the depositors the condition of the bank and the causes that led to its shortage in ready money. It was shown that the bank could pay a dollar and a half on every dollar deposited if given a little time to make collections. The depositors having the utmost confidence in the integrity of the bank's officials, and knewing the institution to be more than selvent, called a mass meeting of the depositors this morning and agreed unanimously by resolution, to stand by the First State Bank until normal conditions exist again. Time certificates of deposit bearing 6 per cent interest and payable in six, nine and twelve months are being accepted by the depositors. The stockholders offered to put`up private property, and their komes. if necessary, to further secure their depositors. This caused wild cheering and much enthusiasm. Peace and good will reign. Sulphur people are united and are determined that the city's banking interests shall not suffer. They are united for a greater Sulphur-for the state capital at Sulphur. The Bank of Commerce of Sulphur has made application for a national charter and will go into the new state as a national bank. By taking out their circulation they will be able to assist the city in taking care of the currency famine. They are doing their usual business. Being the youngest bank in the city they do not have a large line of loans. Customers have confidence in the officers and directors of the bank, some of the best known men in Oklahoma being stockholders. The directors are Dennis Flynn, Oklahoma City: E. P. Blake, Blackwell; G. E. McKinnis, Shawnee; T. J. Hartman, Sulphur, and Lew E. Darrow of Lincoln, Neb. The First National Bank, the lodest bank in Sulphur, is transacting its usual amount of business under normal conditions, with the exception of limiting currency pay. ments. Its cash in the vault has steadily increased since the limit of the payment of currency was asked for by the Bankers' Association, and it has deemed it advisable not to raise the lid until it could forsee the outcome of the currency stringency. It is particularly fortunate from the fact that being a national bank it was allowed an increase of circulation of $37,500 which has been shipped from the comptroller of the currency, which amount in cash added to its already good supply of currency, will not only relieve it, but should lessen the strain of the entire town. All deposite seem to understand the situation thoroughly, and have proven themselves more than busi-