18348. Guaranty State Bank (Fort Worth, TX)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
March 16, 1925
Location
Fort Worth, Texas (32.725, -97.321)

Metadata

Model
gpt-5-mini
Short Digest
b463fb586cfb47fc

Response Measures

None

Description

Multiple contemporaneous articles (March 16, 1925) report a brief run that prompted the board to close the Guaranty State Bank and place its affairs in the hands of the Texas Banking Commissioner. Subsequent April 10 reporting describes the bank as insolvent with state guaranty funds to liquidate depositors' accounts, indicating permanent closure and liquidation rather than reopening. OCR errors in articles corrected (e.g., 'R. J. Rhome' president; some fragmented text).

Events (3)
1. March 16, 1925 Run
Cause
Rumor Or Misinformation
Cause Details
Newspaper accounts and later reporting attribute the run to idle gossip and rumors which interrupted a pending consolidation/merger.
Measures
Bank directors closed the bank about 9:30 a.m. and placed its affairs in the hands of the State Banking Commissioner; Deputy Commissioner W.A. Williams took charge.
Newspaper Excerpt
A brief run on the Guaranty State Bank... caused members of the board of directors to vote to close the bank about 9:30 a. m.
Source
newspapers
2. March 16, 1925 Suspension
Cause
Government Action
Cause Details
Directors closed the bank and turned its affairs over to the State Banking Commissioner following the run; bank was effectively suspended/closed by placement in commissioner's hands.
Newspaper Excerpt
The Guaranty State Bank... closed its doors Monday. 'Affairs of this bank are in the hands of the banking commissioner of the State,'
Source
newspapers
3. April 10, 1925 Receivership
Newspaper Excerpt
State Funds Will Be Given Fort Worth State Bank to Liquidate Accounts... Banking Commissioner here checking books of insolvent institution... payments of the Guaranty State Bank will be paid off beginning early next week from State guaranty funds . . . to liquidate non-interest bearing accounts of the Guaranty State Bank . . . insolvent institution . . . liquidation . . .
Source
newspapers

Newspaper Articles (5)
1. March 16, 1925 The Houston Chronicle Houston, TX
Article from The Houston Chronicle, March 16, 1925

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Article Text

FORT WORTH STATE BANK CLOSES DOORS Fort Worth Texas, March 16. The Guaranty State Bank Main and Eighth streets, closed its doors this morning On the front door appeared the following notice "Affairs of this bank are in the hands of the banking commissioner of the State R. J. Rhome is president of the urday that the State Bank was to be consolidated with another the deal was not completed. "The bank opened usual today Williams small on the bank the board of of this run they decided that in the interest of the bank should be placed in the hands of state The did not know what caused Todd residing Sunday as the of fall in the Port where he Death due to Internal caused by accidental fall from an the result of an made who The negro died in amon the GRAY WINS ON FOUL Texas March Gray of San Antonio was fouled in the fourth round the over "Tiger" Joe company scheduled for athletic fair

2. March 16, 1925 Fort Worth Star-Telegram Fort Worth, TX
Article from Fort Worth Star-Telegram, March 16, 1925

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Article Text

GUARANTY BANK IS CLOSED BY DIRECTORS A brief run on the Guaranty State Bank, Eighth and Main Streets, Monday morning caused members of the bord of directors to vote to close the bank about 9:30 a. m. The run began when the bank opened and 15 minutes later, the bank closed its doors. "This action was taken," Deputy State Banking Commissioner W.A. Williams who is now in charge said, "by the bank directors who believed It best for the protection of No statements was made of the bank's condition other than that its stock is $100,000, its surplus and profit $17,000 and deposits R. Rhome president of the clearing house, is also president of (CONTINUED ON PAGE 4)

3. March 16, 1925 Wichita Falls Times Wichita Falls, TX
Article from Wichita Falls Times, March 16, 1925

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Article Text

GUARANTY STATE BANK FORT WORTH CLOSES ITS DOORS FORT WORTH. March 16 Guaranty State Bank, Main Eighth closed doors Monday front door appeared the \ffairs of this bank are in the hands of the banking of Rhome is president of the reported unofficially State Bank was another bank. However, the deal was not The bank opened as usual Monday at Deputy BankWilliams. small run on the bank caused the board of directors to go into this they cided the should be placed the hands the state sioner bank officials did not caused the

4. March 17, 1925 The Houston Post Houston, TX
Article from The Houston Post, March 17, 1925

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Article Text

FT. WORTH BANK CLOSES DOORS Small Run Causes Action, Deputy State Banking Commissioner Says. (Associated Press.) FORT WORTH. Texas, March 16. The Guaranty State bank, Main and Eighth streets, closed its doors Monthe front door appeared the following notice "Affairs of this bank are in the of hands of the banking commissioner the State of R. J. Rhome is president of the bank. urday that the Guaranty State bank was to consolidated with another bank. However, deal was not the completed. The bank opened as usual Monday at said Deputy Banking Commissioner "A the bank caused the board of run on directors into session. Because of this run they decided that in the interest of the depositors the bank should be placed in the hands of The bank officials did not know what caused the

5. April 10, 1925 Fort Worth Record-Telegram Fort Worth, TX
Article from Fort Worth Record-Telegram, April 10, 1925

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Article Text

NON-INTEREST DEPOSITS TO BE TAKEN UP State Funds Will Be Given Fort Worth State Bank to Liquidate Accounts. Texas Banking Commissioner Here Checking Books of Insolvent Institution. hearing deposits of the Guaranty State Bank will be paid off beginning early next week from State guaranty funds Payments will be the Fort Worth made through State This announcement made yes terday by Marcus Bright. president of the Fort Worth State Bank under advisement of Banking Commissioner who has been in Fort Worth several days checking over the assets of the Guaranty State Bank. Strenuous efforts were made by directors friends of the Guaranty State Bank to save the in stitution form going upon the rocks. H. Long. vice president of the bank. offered to put up $50.000 out of his funds to save the bank. if possible. GOSSIP TO BLAME Austin yesterday gave The Record some of the details of the struggle to prevent bank from He expressed the opinion that idle gossip and rumors created run on the bank for which not "The bank would have been merged another Fort Worth he not the run occurred just as did. This prevented negotiations under way from maturing with the result the bank doors were closed. The merger referred to Mr. Aus tin had been under for some time, was made known yes terday. and would have taken place at the close of business the day the bank closed had not the run curred. BI SY CHECKING UP Tellers and have been busy checking up all accounts gether with the assets of the institu tion. This checkup it is ed. be completed this week and enable the Banking Commissioner to direct the payments from the State fund to depositors of interest bearing ac counts. Mr Austin said yesterday Arrangements have about been completed for placing in the hands of President Marcus Bright of the Fort Worth State Bank ample funds liquidate non-interest bearing counts of the Guaranty State Bank. Referring to the of banks throughout Texas, Mr. Austin said that all banking institutions were en joying very healthy business and that he found little cause for dis"Texas banks are sound and solid. and there plenty of money avail