Peoples State Bank - Medicine Lodge, KS

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: November 13, 1907
Location: Medicine Lodge, Kansas (37.281, -98.580)

Metadata

Model: gpt-5-mini
Short Digest: aa199d55

Response Measures

None

Description

Bank temporarily ceased paying out currency because reserve agents could not send currency during the New York panic of 1907. No run is described; business continued with checks accepted, implying a temporary suspension and intended reopening.

Events (1)

1. November 13, 1907 Suspension

Cause: Correspondent
Cause Details: Reserve agents (correspondents) could not send currency because of the panic in New York, so the bank stopped paying out specie/currency temporarily to preserve stability and protect customers.
Newspaper Excerpt: We were obliged to follow their plan and cease to pay out currency, in order to maintain local stability and protect our customers.
Source: newspapers

Newspaper Articles (1)

1. November 13, 1907 Barbour County Index Medicine Lodge, KS

Article from Barbour County Index, November 13, 1907

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Article Text

To the People of Medicine Lodge and Barber County. We desire to express to the business men, farmers, laborers and to every bank depositor in the territory tributary to Medicine Lodge our appreciation of their loya! treatment and steadfast friendship. When we were notified by our reserve agents that no more currency could be sent to us until the panic in New York had subsided, we were obliged to follow their plan and cease to pay out currency, in order to maintain local stability and protect our customers. The business men immediately averted what might otherwise have become a serious situation by announcing their willingness to accept checks for all accounts and merchandise. Their splendid action has made it possible for business to continue in normal conditions. They met a disagreeable situation with courage and good judgment, and reduced to a minimum the discomfort in business caused by the unexpected tying up of currency. The depositors in general have taken the same loyal and patriotic action. They have all used calmness and judgment in discussing the situation, and have made it possible for financial institutions not to suffer from the unexpected and causeless panic created by stock gambling in New York. With the government taking a hand to bring about normal conditions, and with the people of the country understanding perfectly the situation, it is not believed that any financial disaster can ensue from present conditions. When the situation is eventually solved through the release of the currency now tied up, the condition of the business world is bound to be healthful to the entire country. S. RUNYAN, Cashier Citizens State Bank. F. B. CHAPIN, President Peoples State Bank.