17949. Citizens State Bank (Coalgate, OK)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 25, 1920
Location
Coalgate, Oklahoma (34.538, -96.219)

Metadata

Model
gpt-5-mini
Short Digest
3f93ccbb

Response Measures

None

Description

Articles report the Citizens State Bank of Coalgate was closed by the state bank commissioner on Nov 25, 1920 after discovery of an alleged shortage (~$267k–$300k). No run is described; the bank was closed and funds from the state guaranty fund were withdrawn to settle depositors' claims. A vice-president was arrested. Cause appears to be bank-specific insolvency/shortage (though the commissioner also cited unfavorable market conditions).

Events (3)
1. November 25, 1920 Other
Newspaper Excerpt
Withdrawal of $300,000 from the State guaranty fund for immediate settlement of depositors claims resulting from the closing of the Citizens State Bank at Coalgate was announced tonight by officers of the state banking department. Roy H. Hotchkiss, a vice president of the bank ... has been arrested, charged with operating an insolvent bank.
Source
newspapers
2. November 25, 1920 Receivership
Newspaper Excerpt
Withdrawal of $300,000 from the State guaranty fund for immediate settlement of depositors claims resulting from the closing of the Citizens State Bank at Coalgate was announced tonight by officers of the state banking department.
Source
newspapers
3. November 25, 1920 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Discovery of an alleged shortage of roughly $267,000–$300,000 in the bank's funds; bank closed by state bank commissioner. Commissioner also cited unfavorable market conditions preventing farmers from selling crops as a contributing factor.
Newspaper Excerpt
The Citizens State Bank of Coalgate was closed today by Fred Dennis, state bank commissioner, following discovery of an alleged shortage of more than $300,000 in the bank's funds.
Source
newspapers

Newspaper Articles (2)
1. November 26, 1920 Amarillo Daily News Amarillo, TX
Article from Amarillo Daily News, November 26, 1920

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Article Text

DOORS OF FOUR MORE BANKS SHUT BY INSOLVENCY ONE IN OKLAHOMA AND THREE IN NORTH DAKOTA ARE CLOSED By Associated Press. BISMARCK.. N. D., Nov. 25.-Three more North Dakota banks closed their doors late yesterday due to depleted re. sources bringing the total of such closures reported here for the past ten days to thirteen. Those shutting down today were the state bank at Adrian; The State Bank of Donnybrook and the State Bank of Glenburn. Earlier in the day it was announced that the State Bank of Mohall did not open for business today. It will be the tenth bank closed. COALGATE, Okla., Nov. 25.-The Citizens State Bank of Coalgate was closed today by Fred Dennis, state bank commissioner, following discovery of an laleged shortage of more than $300,000 in the bank's funds. Roy H. Hotchkiss, a vice president of the bank and formerly a state bank examiner, has bene arrested, charged with operating an insolvent bank. He is under $5,000 bond. Withdrawal of $300,000 from the State guaranty fund for immediate settlement of depositors claims resulting from the closing of the Citizens State Bank at Coalgate was announced to. night by officers of the state banking department. Unfavorable market conditions, which have prevented farmers from selling their crops, was assigned by the banking department as the chief reason for the bank's failure.

2. November 30, 1920 The Daily Ardmoreite Ardmore, OK
Article from The Daily Ardmoreite, November 30, 1920

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Article Text

DENNIS ROASTS COUNTY ATTORNEY FOR HIS ARREST Intimates Coal County Officers Seeking Notoriety; Legislature May Abolish Examiner's Office is Oklahoma City, Nov. 30.--"He a self-important county official who thinks that his office has been overlooked by the state banking department," Fred G. Dennis, state bank commissioner, said yesterday in referring to charges made against him in connection with the failure of the Citizens' State Bank of Cealgate by E. N. Holland, county attorney of Coal county. Dennis was at his office at the capitol working yesterday. Me continued to treat as a joke charges that he had permitted the bank to run after knowing it to be insolvent. Impatience was expressed only against Holland, for having caused inconvenience in the state work by preferring the charges. Told that announcement had been made by Holland that shortages have been established to the extent of $267,000, Dennis said that he had no definite information on that point. He had said that without doubt much of the money will be returned to the state guaranty fund through the collection of assets of the institution. Liquidation of two more banks C was announced Monday by Dennis. The banks affected are the First State Bank of Fallis, Lincoln county and the Bank of Foss. of Wichita county. This brings the total number of failures in the state to six in two months. Abolition of the office of state e bank commissioner as an appointive position under direct control of the $ governor and consolidation of the banking department with the office of the state examiner and inspector ) may be submitted to the coming t session of the state legislature. , Rumors in political circles yester) day following the arrest of Dennis, y for alleged malfeasance in office in permitting the Citizens' State Bank : of Coalgate to operate after being insolvent, were that such a bill has 0 been prepared by a group of heldI over senators. It was indicated that the measure has been under consid/ eration for several months. Succese sive failures of several state banks ) are said to have brought the proposed e action to public attention. 5 Proponents of the measure insist that the consolidation would place ) supervision of the banks under an 3 elective officer and particularly under S a department which is supposed to 1 keep a complete check on the finan) cial dealings of the state and its counties. They claim that the consolidation would also be means of e t effecting economy.