Central Exchange Bank - Woodward, OK

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: March 16, 1923
Location: Woodward, Oklahoma (36.434, -99.390)

Metadata

Model: gpt-5-mini
Short Digest: 7c9bcc248c5682ba

Response Measures

None

Description

Article describes the Central Exchange Bank of Woodward as a 'failed bank' forced down by deflation of farm products and successive crop failures; depositors withdrew large sums. The bank did not reopen under the same name — the Bank of Woodward opened as its successor and depositors of the defunct institution were to be paid 50%. There is discussion of heavy withdrawals but no clear discrete run event (crowds/short intense panic) described. Therefore classified as a suspension/closure (failure) rather than a run-only episode.

Events (3)

1. March 16, 1923 Other

Newspaper Excerpt: Last Saturday the Bank of Woodward opened as the successors to the Central Exchange Bank. Depositors in the defunct institution, it was announced, would be paid 50 per cent.
Source: newspapers

2. * Receivership

Newspaper Excerpt: Martin said ... 'I feel that I have committed no crime' ... 'He attributed the failure of the Central Exchange Bank' ... 'The $1000 reward offered by the state for the banker's apprehension was withdrawn at Martin's request. Last Saturday the Bank of Woodward opened as the successors to the Central Exchange Bank. Depositors in the defunct institution, it was announced, would be paid 50 per cent.'
Source: newspapers

3. * Suspension

Cause: Local Shock
Cause Details: Deflation in farm product prices and successive crop failures in Northwestern Oklahoma reduced collateral values and led to heavy withdrawals and loan defaults.
Newspaper Excerpt: He attributed the failure of the Central Exchange Bank to the deflation of the values of farm products in the fall of 1920 ... Several hundred of thousands of dollars were withdrawn during the same period by depositors who felt that they needed their surplus money ... successive crop failures made it impossible for a large number of farmers and ranchmen, who were customers of the bank, to pay their obligations.
Source: newspapers

Newspaper Articles (1)

1. March 16, 1923 San Antonio Light San Antonio, TX

Article from San Antonio Light, March 16, 1923

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Article Text

January 12. as he said in his statement, to help to keep his bank in operation. Gave Up To Officers. Martin gave himself up at the attorney general's office yesterday. He said he had just come from Memphis, Tenn. "I feel that I have committed no crime, and that the circumstances under which the bank failed were unavoidable and of such a nature that every thinking, reasonable man and woman will be able to understand." Martin said in his statement. "There was never a day or an hour that I had any intention of doing anything other than return to Oklahoma and my friends, to my family and to the depositors of the bank," he declared. Martin concluded his statement with the declaration that he had spent all of his life in Woodward and has "no intention except to continue my life there." He attributed the failure of the Central Exchange Bank to the deflation of the values of farm products in the fall of 1920, which he said hit Northwestern Oklahoma particularly hard. Deflation Caused Failure. Without warning and almost overnight, the deflation sweptover the country, the statement said. For instance, it continued. "cattle that had been well worth $100 at the time cattlemen and ranchers mortgaged them at the bank. fell in value almost overnight to $40 and $45. Several hundred of thousands of dollars were withdrawn during the same period by depositors who felt that they needed their surplus money to carry their individual needs along. Following that, successive crop failures made it impossible for a large number of farmers and ranchmen, who were customers of the bank, to pay their obligations. The collateral security on many of the notes decreased an enormous extent. Health Suffered. "In my endeavor to hold the institution together during this period of time the strain upon my physical and financial resources grew day in and day out. "I continued to put my own individual resources behind the bank and then sought outside help to try to stem the tide and save it." Attorney General George Short. in a statement. said that Martin's prop-erty, consisting of "several thousand acres of Oklahoma land would be sold for the benefit of depositors of the failed bank." Martin conferred for an hour with Governor Walton and afterwards the governor said he believed Martin means weil, adding "we will give him every opportunity to prove that he does." The $1000 reward offered by the state for the banker's appréhension was withdrawn at Martin's request. Last Saturday the Bank of Woodward opened as the successors to the Central Exchange Bank. Depositors in the defunet institution, it was announced. would be paid 50 per cent.