First State Bank - Clarita, OK

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: August 11, 1922
Location: Clarita, Oklahoma (34.483, -96.433)

Metadata

Model: gpt-5-mini
Short Digest: 68ebce51

Response Measures

None

Description

Article (Aug 11–12, 1922) describes the collapse of the First State Bank at Clarita due to large-scale embezzlement and arrests of officers. There is no mention of a depositor run; the failure appears driven by internal embezzlement and the bank's collapse (closure). I classify this as a suspension leading to permanent closure (collapse).

Events (2)

1. August 11, 1922 Other

Newspaper Excerpt: With a third arrest made in the collapse of the First State bank at Clarita ... Raymond Taylor ... charged with misappropriation of funds ... G. Y. West ... charged with embezzling $50,000 ... Sheriff Freeman intends leaving tomorrow for Los Angeles to return H. C. Staggs ... accused of being involved in the looting of the bank.
Source: newspapers

2. August 11, 1922 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Large-scale embezzlement/misappropriation of funds by officers (estimated $60,000), worthless notes and time certificates used to defraud the bank.
Newspaper Excerpt: EXTENT OF BANK LOOTING GROWS Three Arrests Made as Result of Failure of Clarita Bank ... the collapse of the First State bank at Clarita
Source: newspapers

Newspaper Articles (1)

1. August 12, 1922 The Morning Tulsa Daily World Tulsa, OK

Article from The Morning Tulsa Daily World, August 12, 1922

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Article Text

EXTENT OF BANK LOOTING GROWS Three Arrests Made as Result of Failure of Clarita Bank By the Associated Press State Wire. COALGATE, Aug. 11.-With a third arrest made in the collapse of the First State bank at Clarita, County Attorney E. N. Holland announced today that the alleged embezzlement from this institutions had been officially placed at $60,000 and probably would go hogher Raymond Taylor who was succeeded recently as cashier of the bank is the third person arrested. He is charged with misappropriation of funds with embezzlement. His bond has been set at $10,000 which he furnished and his preliminary hearing is set for next Wednesday. The preliminary hearing of G. Y. West, former Oklahoma City real estate dealer who became active vice přesident of the bank when he and others purchased it June 1, is also set for August 16. West is charged with embezzling $50.000 of the bank's funds in addition to other charges. He is held in jail in default of $25,000 bond. Sheriff Freeman intends leaving tomorrow for Los Angeles to return H. C. Staggs of that city who is accused of being involved in the looting of the bank. A. E. Smith of Parker, Ariz., another defendant in the case has not yet been arrested. West, according to local authorities, borrowed money from Smith to purchase the bank. Authorities say the method used in fleecing the bank was to unload worthless notes on the institution. These notes were purported to have been made by persons residing in California. They were bought with time certificates issued by the Clarita bank. The time certificates were assigned and sold to persons living in California.