18255. Wapanucka State Bank (Wapanucka, OK)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
February 4, 1927
Location
Wapanucka, Oklahoma (34.374, -96.424)

Metadata

Model
gpt-5-mini
Short Digest
8e8f6a85

Response Measures

None

Description

Multiple articles (Feb 4–5, 1927) report that the McAlester Trust Company suffered a run and examiners took charge of five banks, including the Wapanucka State Bank, because those banks' reserve funds were deposited with the trust company. The Wapanucka bank was closed/suspended under state supervision; no articles report a subsequent reopening, so classified as suspension leading to closure. Cause coded as correspondent/parent-bank failure (reserves frozen on deposit with McAlester Trust Co.).

Events (1)
1. February 4, 1927 Suspension
Cause
Correspondent
Cause Details
Reserve funds of the Wapanucka State Bank were on deposit with the McAlester Trust Company which was run and closed, freezing reserves and forcing suspension under state examiners.
Newspaper Excerpt
The other four institutions are the McAlester Trust Company, the Bank of North McAlester, the Wapanucka State bank and the Coalgate Bank of Commerce.
Source
newspapers

Newspaper Articles (3)
1. February 4, 1927 Pawhuska Journal-Capital Pawhuska, OK
Article from Pawhuska Journal-Capital, February 4, 1927

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Article Text

FIFTH BANK IN SOUTHEASTERN OKLAHOMA FAILS Failure of McAlester Trust Company Brings About Failure of Bank of Pittsburgh. RUN ON BANK Only Remaining Bank at McAlester Withstands Heavy Run. OKLAHOMA CITY. Feb. 4, Closing of a fifth bank in southeastern Oklahoma as a result of the failure this morning of the McAlester Trust Company, was announced today at the office of state banking commissioner. The bank of Pittsburg was the fifth institution close. Like the other small banks involved its funds were on deposit with the McAlester Trust Co. It had deposits of $67,000 at the close of last year. Five state bank examiners were enroute to take charge of the banking institutions that closed their doors the result of run on the McAlester Trust Co., the parent bank. The other four institutions are the McAlester Trust Company, the Bank of North McAlester, the Wapanucka State bank and the Coalgate Bank of Commerce. Cotton Depression Frozen assets caused by the depression in cotton prices caused the run on the McAlester Trust Company, it was said by Waide Watkins, assistant bank commissioner. Reserve funds of the other three banks were deposit with the trust company, he said. The four institutions showed total deposits of nearly $2,500,000 when the state bank call was issued December 31. Deposits of the McAlester Trust Company totaled the Wapanuca bank $22,000; the Coalgate bank $135,000; and the North McAlester institution $65,000. E. H. W. Shofner, M. Thimble, W. Ernest and Charles Alexander the examiners who have been assigned to take charge (Continued on Page 3)

2. February 5, 1927 Evening Star Washington, DC
Article from Evening Star, February 5, 1927

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Article Text

OKLAHOMA BANKS UNDER SUPERVISION Examiners in Charge of Five, Due to Run on Parent Institution. By the Associated Press. McALESTER, Okla., February 5.Five banks serving the Oklahoma coal field territory, with deposits estimated at $2,500,000, today were under the supervision of State bank examiners as a result of a run yesterday on the McAlester Trust Co., the parent institution. Waldo Watkins, assistant bank examiner. attributed the closing of the trust company to frozen assets caused by a slump in cotton prices. This, he said, tied up the reserve funds of the other institutions, forcing a suspension of business. Banks affected besides the parent institution, are the Bank of North McAlester, the Wapanucka State Bank, the Coalgate Bank of Commerce and the Bank of Pittsburgh. Although depositors began to draw money from the First National Bank of McAlester, most of the withdrawals stopped when the bank met all demands and customers then started to redeposit funds. A new double violet, with excep-tionally large petals, has been named after Princess Mary of England.

3. February 5, 1927 St. Louis Globe-Democrat St. Louis, MO
Article from St. Louis Globe-Democrat, February 5, 1927

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Article Text

5 OKLAHOMA BANKS CLOSE DOORS IN DAY Run on Parent Bank in McAlester Causes Crashes. By Associated Press. OK., February bank tonight were en route to Southeaste to take five that closed their doors day as the result run the Trust parent depository Besides Trust pany the are Bank of North the Wa panucka State Bank, the Coalg Bank of Commerce and the Bank of Pittsburgh Frozen due to depression the run Waldo assistant bank He reserve funds the other four were on deposit with the trust Total deposits of more than 000 were by the when the state call was ber An incipient started the First of when some became alarmed the closing of the other banks All called for their money and confidence was further restored