15824. Bank of Commerce (Tonkawa, OK)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
state
Start Date
June 4, 1929
Location
Tonkawa, Oklahoma (36.678, -97.310)

Metadata

Model
gpt-5-mini
Short Digest
8fa5b99735f5db5b

Response Measures

None

Description

Articles (June 1929) describe a rumor of a cash shortage that produced withdrawals (a run) and the board voluntarily closed the Bank of Commerce to protect depositors and notified the state bank commissioner. The bank said it would pay off depositors and possibly reorganize, but no definitive reopening is reported in these articles, so outcome is uncertain.

Events (2)
1. June 4, 1929 Run
Cause
Rumor Or Misinformation
Cause Details
Rumor of shortage of cash gained strength early in the week and produced withdrawals from the Bank of Commerce.
Measures
Directors met in special session and voluntarily decided to close the bank to protect depositors; notified state bank commissioner and planned an examination.
Newspaper Excerpt
RUMOR OF SHORTAGE OF CASH IS CAUSES OF RUN ON TONKAWA BANK
Source
newspapers
2. June 5, 1929 Suspension
Cause
Rumor Or Misinformation
Cause Details
Board closed because of depletion of cash and sight exchange, anticipated withdrawals driven by the rumor of cash shortage, and low prices of farm products affecting liquidity; closure was voluntary to protect depositors and allow collection of notes/payoff without loss if possible.
Newspaper Excerpt
The Bank of Commerce at Tonkawa failed to open for business ... There had been something of a run on the bank the previous day, and fearing that conditions would become worse, the directors decided on closing.
Source
newspapers

Newspaper Articles (2)
1. June 6, 1929 Blackwell Journal-Tribune Blackwell, OK
Article from Blackwell Journal-Tribune, June 6, 1929

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Article Text

RUMOR OF SHORTAGE OF CASH IS CAUSES OF RUN ON TONKAWA BANK; CLOSES TO PROTECT ITS DEPOSITORS The affairs of the Bank of Comfailed open Wednesday, are now in hands Pennington and Taylor, bank examand of started thorough check into the and liabilities the bank which they preOTHER NATURE HAS dicted would last 10 days. MADE SURE THAT THE Faced with probable run on FRUIT OF THE PERthe bank, which started SIMMON WILL NOT the board of directors met BE EATEN UNTIL cial session at Wednesday THE SEEDS ARE RIPE and voluntarily decided turn the situation THE GREEN FRUIT state bank commissioner DRAWS PUCKERS order to protect their depositors. THE LIPS OF THE Emphatic that the PERSON EATING would be to pay off. given AND CHOKES THE collect its was THROAT AS WELL Wednesday by the bank officials. Reasons An report the meetposed on the bank door stated that depletion sight exchange and anticipated withdrawals from bank and the low price products which are the securities we deem visable Bank of Commerce and the bank commission the interest to This signed Fred French and German French, directors. The Bank of Commerce, organized 1906 and bought Gerand Fred French in 1910, had average about $800,000 deposit the of $50,000 and $10,000 reserve the bank said Wednesday $100,000 the had withdrawn first the year. Money due on farm which was due the bank this time the year, were slow in coming in, due late harvest and the price of corn wheat, said. Run on Cash rumor was faced shortage money gained strength here the first two days of the week and there were some withdrawals. This growing worse Tuesday afterwas noon main factors the decision according to the No diction could be made of the future the bank and probably made until the examination The closing the bank created more stir Tonkawa than anything that has happened in years. Many the depositors gathered the bank during the day to the matter and the chief topic throughout the was one the largest banks this section and several depositors, many whom faced financial crisis along with the bank. The other two Tonkawa banks, the First National and the American National, were open for busiaccording to bank no tendency on the part of their customers because of the closing the Bank of Commerce. They took however, were prepared for any emerThe general hope was that gency. the crisis at Bank of Commerce was only temporary and that adjustment made bank reopened within short time.

2. June 15, 1929 Harlow's Weekly Oklahoma City, OK
Article from Harlow's Weekly, June 15, 1929

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Article Text

NATIONAL Bankers About Ban NATIONAL MEETING TInstitute of convention of the American Banking was held at Tulsa this week, with enrolled delegates numbering more than 1,700, from all states of the Union. Eight special trains brought the visitors to Oklahoma The program included addresses and discussions of many topics relating to banking, by leading men in those departments. Harry H. Rogers, president of the Exchange National Bank of Tulsa, and C. C. Roberts, vice-president of the American-First Trust Company of Oklahoma City, were Oklahoma representatives on the program. The latter spoke on "Advantages and Hazards of Investment Trust Securities," or "How to Invest $100,000." Ex Senator T. P. Gore addressed the convention on Farm Relief. Many entertainments were provided for the visitors, including a trip through the Burbank oil fields, the Sinclair refinery, and a visit to Pawnee Bill's ranch, where they were tendered a buffalo barbecue. BANK SURVEY THE strong ently criticism which Senator W. B. made of the operations of the Federal Reserve system, has been denied by some Now it is announced that the Senator has employed Dr. Ray B. Westerfield, professor of political economy at Yale University, to investigate the condition of country banks in Oklahoma. The Senator expects to have this data at hand by the time Congress convenes in December. Mr. Pine believes that much of the farm distress is due to inequitable credits. Dr. Westerfield has been on the faculty of Yale since 1913, and is recognized as one of the most eminent economists in the United States. He served in 1924 and '25 as chief of the bureau of tistical methods of the Babson Service, and statistics of the Treasury Department. Roger W. Babson engaged him to revise the stahe has done research work for the National City Bank of New York. BANK CLOSED THE Bank of Commerce at Tonkawa failed to open for business on Thursday of last week. There had been something of a run on the bank the previous day, and fearing that conditions would become worse, the directors decided on closing. Their statement said: Because of depletion. of cash and sight exchange and because of anticipated withdrawals from said bank and the low price of farm products which are the principal securities we deem it advisable to close the Bank of Commerce and notify the Bank Commission as the best interest to our depositors. It was stated that the bank would pay off without loss to depositors, with necessary time given to collect its notes. It has been reported that the bank will be reorganized, but no definite announcement has been made as yet. FAILED BANKS PAY DIVIDEND of 25 percent has been anA nounced for depositors of the failed First National Bank of Bixby, which closed its doors February 18. The Fidelity State Bank of Cleveland which also failed in February, has just made a payment of 15 percent, and another payment is expected soon. The liquidating agent stated that the bank will pay a high percentage of its liabilities.