Medicine Valley Bank - Medicine Lodge, KS

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: state
Start Date: January 1, 1882*
Location: Medicine Lodge, Kansas (37.281, -98.580)

Metadata

Model: gpt-5-mini
Short Digest: 02757ba5

Response Measures

Capital injected

Other: This entry concerns the opening of the Medicine Valley Bank (a new stock company) following the failure/receivership of the Merchants' and Drovers' Bank in the same town.

Description

Article reports that the Merchants' and Drovers' Bank in Medicine Lodge was forced to close and a receiver (E. W. Payne) appointed after depositors began withdrawing (linked to the 'Caldwell bank muddle'). Immediately a stock company organized and a new bank, the Medicine Valley Bank, opened the same morning. Thus a run led to suspension/receivership of the prior bank and the establishment/opening of the Medicine Valley Bank.

Events (3)

1. January 1, 1882* Run

Cause: Local Banks
Cause Details: Uneasiness from the 'Caldwell bank muddle' prompted depositors to withdraw funds from the Merchants' and Drovers' Bank.
Measures: None described beyond attempts to obtain advances in Kansas City; depositors withdrew leading to shortage.
Newspaper Excerpt: the Caldwell bank muddle caused a feeling of uneasiness. and the depositors began to withdraw, leaving him rather short of currency
Source: newspapers

2. January 12, 1882 Other

Newspaper Excerpt: Since the above was in type a stock company has been organized and a new bank was opened this morning ... It is called the Medicine Valley Bank ... President, E. W. Payne, Vice President, W. W. Cock, Cashier, Geo Geppert . . . This is the soundest, financially, of any bank in ... (Article announces the organization and opening of Medicine Valley Bank.)
Source: newspapers

3. January 12, 1882 Suspension

Cause: Local Banks
Cause Details: Bank was compelled to close after heavy withdrawals and inability to obtain promised advances; receiver (E. W. Payne) appointed and meeting of creditors occurred; liabilities ~ $15,000, assets ~ $20,000 (including mill property).
Newspaper Excerpt: the Merchants' and Drovers' bank of this place has been compelled to close its doors and a receiver appointed in the person of E. W. Payne
Source: newspapers

Newspaper Articles (1)

1. January 12, 1882 Barbour County Index Medicine Lodge, KS

Article from Barbour County Index, January 12, 1882

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Article Text

MERCHANTS' AND DROVERS' BANK APPOINTS A RECEIVER. The Medicine Valley Bank Opens for Business this Morning. We are sorry to announce that the Merchants' and Drovers' bank of this place has been compelled to close its doors and a receiver appointed in the person of E. W. Payne. Below we give a portion of the causes that led to the failure. Mr. Hickman says that the Caldwell bank muddle caused a feeling of uneasiness. and the depositors began to withdraw, leaving him rather short of currency, although he had about $10,000 of outstanding notes. Another cause was his investing in mill property at Wellington, which required the greater portion of bis time and attention. A few weeks before the failure he had been promised assistance at Kinsas City. but when the pressing need came, he failed to get ad. vances. There is a great deal of sympathy felt for Mr. Hickman, as he has been thoroughly honest in all his transact ions, and our business men have received many accommodations at his hands. Oa Mor. day he called a meeting of the creditors and showed them a statement of his affairs and asked them to appoint a receiver. Mr. Hickman further assured them that if they would only be patient, he would be enabled to pay his liabilities in full, and we believe his statement to be true. The liabilities of the bank are about $15,000, consisting of $6,000 deposits here, and about $10,000 overdrawn and protested draits. The assets are about $20,000. consisting of $10,000 in notes and about $10,000 in mill property, bank fixtures and cash. S, it will be seen that if matters are taken quietly, all liabilities will be paid in full. There is not a particle of excitement about the matter, which shows what a sensible class of people we have. Since the above was in type a stock company has been organized and a new bank was opened this morning, with a cash capital of $50,000 The list of stock holders includes most of our merchants and business men and a number of the wealthiest and most influential stock men in South-western Kansas. It is called the Medicine Valley Bank and the fo:lowing are the officers and directors. President, E. W. Payne, Vice President, W. W. Cock, Cashier, Geo Geppert. The directors are, E. W. Payne, Geo Geppert. W. W. Cook, D. Stith, H. P. Chapin, H C. Thompson and D. Van Slyke. This is the soundest. financially, of any bank in