18184. Sallisaw Bank & Trust Company (Sallisaw, OK)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust company
Start Date
January 3, 1928
Location
Sallisaw, Oklahoma (35.460, -94.787)

Metadata

Model
gpt-5-mini
Short Digest
5e9689d8

Response Measures

None

Description

The articles (Jan 1928) report that the American National Bank in Sallisaw failed to open its doors for business and was closed by order of the board; a national bank examiner was placed in charge. The articles explicitly deny that a depositor run occurred. They cite poor crop conditions and floods over several years as the understood cause, so this appears to be a suspension that resulted in permanent closure (examiner in charge; no reopening announced). The originally provided bank name (Sallisaw Bank & Trust Company) was an earlier predecessor (closed in 1923) mentioned in the articles; the active failing institution here is the American National Bank, so I used that name.

Events (1)
1. January 3, 1928 Suspension
Cause
Local Shock
Cause Details
Articles state no official reason was given but citizens attributed failure to prolonged bad conditions: extremely small 1927 cotton crop, floods and boll weevil damage affecting local economy and bank solvency.
Newspaper Excerpt
failed to open its doors for business Friday morning...a notice was posted on the door Friday morning, to the effect that the institution was closed by order of the board of directors.
Source
newspapers

Newspaper Articles (4)
1. January 3, 1928 The Democrat-American Sallisaw, OK
Article from The Democrat-American, January 3, 1928

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Article Text

AMERICAN NATIONAL FAILS, LEAVES SALLISAW A BANKLESS TOWN bank failure during the past three months when the American National Bank failed to open its doors for business Friday morning E. F. Allen, national bank examiner, who was in charge of the First National Bank in Sallisaw, when it failed latter part of October is in charge of the American National. Mr. Allen came to Sallisaw Thursday morning. A notice was posted on the door Friday morning. to the effect that the institution was closed by order of the board of directors. J. Perry Wheeler is president of the bank; C. S. Hampton, active officer in charge is vice-president and Tom J. Delaney, cashier. The board of directors are R. Kobel, C. Q. Cherry, J. Perry Wheeler, C. E. Riggs, H. C. Winter and C. S. Hampton. The American National Bank was organized in 1924. as the successor of Security State Bank, which had been organized as the successor of Sallisaw Bank and Trust Company, which closed its doors in 1923. The depositors of Sallisaw Bank and Trust Company were paid seventy-five cents on the dollar after the reorganization took effect. The American National Bank was the only operating bank in Sallisaw, the First National Bank in Sallisaw oldest bank in the county failed October 22. The institution that was closed Friday morning took over the Citizens National Bank January 1, 1927, and the depositors of that institution were paid 100 percent on the dollar. No reason was given in the statement of the closing of the bank but citizens generally understood that bad conditions over a period of the last seven years and the smallest cotton crop in history of the county during 1927 and the causes of the closing. The report in a Fort Smith newspaper that a run on the bank was made by the depositors was false, according to J. Perry Wheeler, president of the closed bank. No plans for the reopening of the bank has been announced, but according to reliable information the directors and stock holders of the institutions will make every effort to reopen the bank and save the depositors. With any kind of a crop during 1927 would have put the bank in The county ginned less than 3500 bales of while the normal crop here is around 30,000 bales. The county, city and board of ed ucation monies are secured accord ing to Mr. Wheeler The last statement of the bank was issued on October 29. 1927 The resources are shown as follows: Loans and discounts. $204.261.57; overdrafts unsecured $1. 362.30: United States government securities, $83,161.78; other bonds, stocks and securities, $58,146.51: banking house an dfixtures. $11,050; real estate beside banking house, $12,280.49; lawful reserve with federal reserve banks, $23,226.59; cash in vault and amount due from national banks, $26,794.28; checks on other banks, $675.41; miscellaneous cash items, $119.91; other assets, $2,406. Total of all Liabilities: Capital stock paid in, $30,000; certified checks outoutstanding, $6,638.98; individual deposits subject to check, $137,095.18: certificates of deposit due in less than 30 days, $6,903.38; state, county or other municipal deposits secured by pledge of assets of this bank or surety bond, $80,099.01; savings deposits $60,250.95; state county or other municipal deposits secured by pledge of assets of this bank or surety bond, $25.140. Total agreements to repurchase United States government securities sold $5,219.07; bills payable, $26,261.63; notes and bills rediscounted, $45,859.14. Total deposits, $309,588.42. Total liabilities, $423,534.84. Ben Martin, student at the Oklahoma A. and M. college at Stillwater returned Monday to resume his studies. Mr. Martin and Mrs. Martin spent the holidays in Sallisaw guest of Mr. Martin's mother, Mrs. James A. Taylor, and Mr. Taylor in Spiro guests of Mrs. Martin's relatives. Gould Moore and Cas A. Carr of Sequoyah Publishing Company, motored to Vian, where they went on a "financial" mission. They returned home reporting a splendid and successful trip in each and every way.

2. January 6, 1928 The Muldrow Sun Muldrow, OK
Article from The Muldrow Sun, January 6, 1928

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Article Text

AMERICAN NATIONAL FAILS, LEAVES SALLISAW A BANKLESS TOWN (From Sallisaw American) Sallisaw experienced her second bank failure during the past three months when the American National Bank failed to open its doors for business Friday morning. E. national bank examiner, who charge of the First National Sallisaw, when failed latter October is in charge of the American National. Mr. Allen came Sallisaw Thursday morning. A notice was posted on the door Friday morning, to the effect that the institution was closed by order of the board of directors. J. Perry Wheeler is president of the bank; C. Hampton, active officer in charge is vice-president and Tom J. Delaney, cashier. The board of directors are R. Kobel, C. Cherry, J. Perry Wheeler, C. E. Riggs, H. C. Winter and C. S. Hampton. The American National Bank was organized in 1924, as the successor of Security State Bank, which had been organized as the successor of Sallisaw Bank and Trust Company, which closed its doors in 1923. The depositors of Sallisaw Bank and Trust Company were paid cents on the dollar after the reorganization took effect. The American National Bank was the only operating bank in Sallisaw, the First National Bank in Sallisaw oldest bank in the county failed October 22. The institution that was closed Friday morning took over the Citizens National Bank January 1927, and the depositors of that institution were paid 100 percent on the dollar. No reason was given in the statement of the closing of the bank but citizens generally understood that bad conditions over period of the last seven years and the smallest cotton in history of the county during 1927 and the causes of the closing. The report in Fort Smith newspaper that run on the bank was false, according to Perry Wheeler, president of the closed bank. No plans for the reopening of the bank has been announced, but according to reliable information the directors and holders of the institutions will make every effort to reopen the bank and save the depositors. With any kind of crop during 1927 would have put the bank in sound financial condition, it is said. The county ginned less than 3500 bales of cotton, while the normal crop here is around 30,000 bales. The county, city and board of education monies are secured according to Mr. Wheeler. The last statement of the bank was issued on October 29, 1927. The resources are shown as follows: Loans and discounts, $204,- 261.57; overdrafts unsecured, $1,362.30; United States government securities, $83,151.78; other bonds, stocks and securities, $58,146.51; banking house an dfixtures, $11,050; real estate beside banking house, $12,280.49; lawful reserve with federal reserve banks, $28,226.59; cash in vault and amount due from national banks, $26,794.28; checks on other banks, $675.41; miscellaneous cash items, $119.91; other assets, $2,406. Total of all $423,534.84. reseryes, Liabilities: Capital stock paid' in, $30,000; certified checks outstanding, cashier checks outstanding, $6,638.98; individual deposits subject to check, $137,certificates of deposit due in less than 30 days, $6,903.38; state, county or other municipal deposits secured by pledge of assets of this bank or surety bond, $80,099.01; savings deposits $60,250.95; state county or other municipal deposits secured by pledge of assets of this bank or surety bond, $25.140. Total agreements to repurchase United States government securities sold $5,219.07; bills payable, $26,261.63; notes and bills rediscounted, $45,859.14. Total deposits, $309,588.42. Total liabilities, $423,534.84.

3. January 6, 1928 The Muldrow Sun Muldrow, OK
Article from The Muldrow Sun, January 6, 1928

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Article Text

AMERICAN NATIONAL FAILS, LEAVES SALLISAW BANKLESS TOWN (From Sallisaw American) Sallisaw experienced her second bank failure during the past three months when the American National Bank failed to its doors for open business Friday morning. E. Allen, national bank examiner, who charge of the First National Sallisaw, when failed latter October is in charge of the American National. Mr. Allen came Sallisaw Thursday morning. A notice was posted on the door Friday morning, to the effect that the institution was closed by order of the board of directors. J. Perry Wheeler is president of the bank; C. Hampton, active officer in charge is vice-president and Tom J. Delaney, cashier. The board of directors are R. Kobel, Cherry, J. Perry Wheeler, E. Riggs, H. C. Winter and S. Hampton. The American National Bank was organized in 1924, as the successor of Security State Bank, which had been organized as the successor of Sallisaw Bank and Trust Company, which closed its doors in 1923. The depositors of Sallisaw Bank and Trust Company were paid sevcents on the dollar after the reorganization took effect. The American National Bank was the only operating bank in Sallisaw, the First National Bank in Sallisaw oldest bank in the county failed October 22. The institution that was closed Friday morning took over the CitiNational Bank January 1927, and the depositors of that institution were paid 100 on the percent No reason was given in the stateof the closing of the bank but citizens generally understood that bad conditions over period of the last seven years and the smallest cotton crop in history of the county during 1927 and the causes of the closing. The report in Fort Smith newspaper that run on the bank was made by the depositors was false, according to J. Perry Wheeler, president of the closed bank. No plans for the reopening of the bank has been announced, but according to reliable information the directors and stock holders of the institutions will make every effort to reopen the bank and save the depositors. With any kind of crop during 1927 would have put the bank in sound financial condition, it is said. The county ginned less than 3500 bales of cotton, while the normal crop here is around 30,000 bales. The county, city and board of education monies are secured according to Mr. Wheeler. The last statement of the bank was issued on October 29, 1927. The resources are shown as follows: Loans and discounts, $204,- 261.57; overdrafts unsecured, $1,362.30; United States government securities, $83,151.78; other bonds, stocks and securities, $58,146.51; banking house an dfixtures, $11,050; real estate beside banking house, $12,280.49; lawful reserve with federal reserve banks, $23,226.59; cash in vault and amount due from national banks, $26,794.28; checks on other banks, $675.41; miscellaneous cash items, $119.91; other assets, $2,406. Total of all reserves, $423,534.84. Liabilities: Capital stock paid in, $30,000; certified checks outstanding, $67.50; cashier checks outstanding, $6,638.98; individual deposits subject to check, $137,certificates of deposit due in less than 30 days, $6,903.38; state, county or other municipal deposits secured by pledge of assets of this bank or surety bond, $80,099.01; savings deposits $60,250.95; state county or other municipal deposits secured by pledge of assets of this bank or surety bond, $25.140. Total agreements to repurchase United States government securities sold $5,219.07; bills payable, $26,261.63; notes and bills rediscounted, $45,859.14. Total deposits, $309,588.42. Total liabilities, $423,534.84.

4. January 6, 1928 The Democrat-American Sallisaw, OK
Article from The Democrat-American, January 6, 1928

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Article Text

CITY BANK FAILS TO OPEN FOR BUSINESS FRIDAY Sallisaw is a bankless town. The town went bankless when the American National Bank failed to open its doors for business Friday morning. This was the second bank failure Sallisaw has experienced during the past three months and the third to occur in the county during the year. In 1926 Sallisaw had three banks all with a national charter and under the supervision of the Federal Reserve. The Citizens National Bank suspended operation December 31, 1926, when they were taken over by the American National Bank; The First National Bank in Sallisaw and The First National Bank of Muldrow failed October 24, 1927 and sixty days later the American National Bank closed. The failure of the three banks during 1927 was due primarily to poor crop conditions. The county ginned only 3000 bales of cotton, as compared to its normal crop of 30,000. The banks, farmers and merchants were doubly hit during the year when the Arkansas river, the Illinois river and all creeks went out of their banks and covered thousands of acres of rich farming land in the worst flood in the past 100 years. This was followed by the ravishing of the boll weevil on the cotton crop. The failure of the American National came as a distinct surprise to everyone in Sallisaw and surrounding territory, as this bank was owned and operated by home people and it was thought the institution was free from any bad paper, as the institution was organized in 1923. The American National was given a charter in 1924, prior to that time it operated for several months under the name of Security State Bank and as the successor of Sallisaw Bank and Trust company, which failed during 1923. The personnel of the failed bank are: J. Perry Wheeler, president; Charley S. Hampton, vice president; Thomas J. Delaney, cashier. The board of directors are: R. Kobel, lumber dealer; H. C. Winter, merchant and property owner; C. Q. Cherry, merchant and property owner; J. Perry Wheeler, ginner; C. E. Riggs, retired business man; Dr. T F. Harmon, dentist, Charley S. Hampton, Mrs. J. C. Woll, milliner, and I. H. Nakdimen of Fort Smith capitalist. The bank was in charge of Charley S. Hampton, who was president of the First National Bank at Stilwell, before coming to Sallisaw to take charge of the Security State Bank. Hampton was assistant cashier of the Merchants National Bank here many vears ago.