561. Gate City National Bank (Texarkana, AR)

View Charter #4401 on SPMC

Bank Information

Episode Type
Run Only
Bank Type
national
Bank ID
4401
Charter Number
4401
Start Date
July 19, 1892
Location
Texarkana, Arkansas (33.425, -94.048)

Metadata

Model
gpt-5-mini
Short Digest
199e4aa282a8f720

Response Measures

Accommodated withdrawals, Public signal of financial health, Books examined

Description

Newspapers in July 1892 report a heavy run on Gate City National Bank (July 19 mention of $25,000 withdrawn). The July 27 official statement explains the run was precipitated by the closing of the Bank of Magnolia and circulating rumors that President J. G. Kelso had absconded; bank officers assert the bank is sound, met all demands, declined $70,000 offered assistance, and did not suspend. No suspension or closure is reported, so this is classified as run_only.

Events (4)
1. August 19, 1890 Chartered
Source
historical_nic
2. July 19, 1892 Run
Cause
Rumor Or Misinformation
Cause Details
Run precipitated by closing of the Bank of Magnolia (private bank of President J. G. Kelso) and circulating rumor that Kelso had absconded and bankrupted Gate City National.
Measures
Officers met every demand with bank funds; declined $70,000 tendered by banks and individuals; board replaced president and issued public statement of solvency.
Newspaper Excerpt
Run made on the Gate City National bank, Texarkana, and $25,000 drawn out.
Source
newspapers
3. July 27, 1892 Other
Newspaper Excerpt
Official Statement of the Gate City National Bank ... they have accepted the resignation of Mr. J. G. Kelso ... the run was precipitated by reason of the closing of the Bank of Magnolia ... they promptly met every demand ... pronounce the Bank in excellent condition ... commend the bank to public confidence. (Official statement signed F. W. Mullins, W. W. Sanders, R. C. Carman).
Source
newspapers
4. June 30, 1894 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (2)
1. July 19, 1892 San Antonio Daily Light San Antonio, TX
Article from San Antonio Daily Light, July 19, 1892

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Article Text

STATE NEWS The chances are fair for Hogg carrying Dallas county. He has the temporary organization today. Dallas congressional convention will be deadlocked when it meets. `Camp county primaries held. Hogg has one majority. Titus county goes for Hogg. Four bricklayers seriously hurt at Houston by a falling scaffold. Whitecaps whip Walters at Calvert, and two of them are arrested. He had done nothing. Run made on the Gate City National bank, Texarkana, and $25,000 drawn out. It is sound. Rev. Frank Peebles is violently insane at Palestine, and will go to the asylum. Mrs. Thompson cowhides Editor Schenck of the Banner, Caddo, I. T., for publishing a letter of hers with all its inaccuracies. South and Central Texas will have the Jargest corn crop ever raised. Kansas is shipping 2,500,000 bushels corn to the Mexican drouth sufferers and several train loads are now passing over the S. A.P. Kaltenan, Houston grocer, assigns. Fritz Nickdenkrow drowned while bathing at Luling. Samuel Krautz sues Houston Electric power company for $20,000.

2. July 28, 1892 Daily Texarkana Democrat Texarkana, AR
Article from Daily Texarkana Democrat, July 28, 1892

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Article Text

# Official Statement of the Gate City National Bank. TO THE PUBLIC: The Board of Directors of the Gate City National Bank met on the evening of the 27th inst, for the purpose of investigating the cause of the recent heavy run on the Bank, of examing into its condition and of acting as occasion might demand. After an exhaustive examination they, by resolution, instruct the undersigned officers to announce that they have accepted the resignation of Mr. J. G. Kelso as President and Director and have elected Mr. F. W. Mullins, President and Mr. W. W. Sanders, of DeKalb, Texas, Vice-President; that the run was precipitated by reason of the closing of the Bank of Magnolia—the private property of Mr. Kelso—and the current rumor that Mr. Kelso had bankrupted this Bank by absconding with its funds; that the officers, practically without any notice, promptly met every demand with the funds of the Bank, and promptly declined the use of $70,000 kindly tendered them by banks and individuals to meet the unprecedented emergency; that the books, accounts, bills receivable, collaterals, statements of banks, cash, official bonds of officers and employers and affairs generally have been thoroughly examined by experts appointed for the purpose, whose report is on file in writing, and that they also have personally made a searching examination and pronounce the Bank in excellent condition, endorse the former management as sound and emphasize that assurance by promoting their Vice-President and retaining their Cashier. Of the private affairs of their late President they are in absolute ignorance and their only office is, with the public, to indulge the hope and belief that he will adjust his affairs honorably, and to officiallr state that Mr.Kelso did not use the assets, credit, name or influence of the Bank, and that his financial embarrassment has not even remotely effected its solvency. They express their entire satisfaction with the condition of affairs, and unhesitatingly commend the bank to public confidence. This statement is published by order of the Board of Directors. F. W. MULLINS, President. W. W. SANDERS, Vice-President. R. C. CARMAN, Cashier.