6889. Citizens State Bank (Mulberry, KS)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
October 28, 1907
Location
Mulberry, Kansas (37.557, -94.622)

Metadata

Model
gpt-5-mini
Short Digest
c82fea23

Response Measures

None

Description

The Citizens State Bank of Mulberry was forced to close because its funds and paper were tied up with the failure of the Bankers' Trust Company (Kansas City). Articles state receivers were to be appointed, but later reporting (and a 1908 summary) indicates the bank was sold to Miller Bros. and reopened shortly after the closure and resumed business. No article describes a depositor run; the closure was due to correspondent failure (Bankers' Trust). Dates derived from contemporaneous reports (Bankers' Trust failure Oct 28, 1907) and follow-up reporting in Nov 1907 and Feb 1908.

Events (2)
1. October 28, 1907 Suspension
Cause
Correspondent
Cause Details
Had heavy deposits and commercial paper with the Bankers' Trust Company (Kansas City) which failed, tying up funds and leaving the bank unable to continue; receivers to be appointed.
Newspaper Excerpt
three Kansas banks had been forced to close their doors owing to the failure of the Bankers' Trust company, of Kansas City, Mo.
Source
newspapers
2. October 29, 1907 Reopening
Newspaper Excerpt
The Mulberry State bank closed ... The same day it was sold to Miller Bros. who opened the bank up for business as usual the next day, and it has been doing business ever since.
Source
newspapers

Newspaper Articles (8)
1. November 4, 1907 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, November 4, 1907

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Article Text

FROM MR. ROYCE. Only Three Banks Affected by New York Flurry. These Had Connection With Bankers' Trust Co. Bank Commissioner John Q. Royce this afternoon gave out a brief interview in which he touched on the barking situation in the state as affected by the failure of the Bankers' Trust company in Kansas City which closed its doors on the 26th of last month after having been refused assistance by the clearing house association. "The situation is a delicate one," said Mr. Royce, "but it seems to be entirely proper that something should be said by this department bearing on the facts in the case and the conditions as they exist at this time. "The condition of the Kansas banks remains much the same as it was before the financial trouble in New York, with the exception that three of our state banks have been forced to close their doors as a result of the failure cf the Bankers' Trust company, of Kansas City, Mo. On October 26. the Bankers' Trust company, of Kansas City, Mo., made application to the clearing house association, of that city, for assistance and was refused and being unable to carry their load alone, the doors of that institution were closed Monday morning, October 28, after being open only 30 minutes that day and LOW that institution is in the hands of a receiver "Three banks under this department, to-wit: The Coyville State bank, Coyville, the Garland State bank, Garland and the Citizens' State bank, Mulberry, had heavy deposits with the Bankers' Trust company, which was their Kansas City correspondent. These banks also were carrying in their assets considerable commercial paper furnished them by the Bankers' Trust company, much of which, under the circumstances, is doubtful, if not absolutely bad, and because of the losses which they must sustain by reason of the failure of the Bankers' Trust company, these three banks have been forced to close their doors and are now in the hands of this department. Application will be made at once for receivers in these banks, which is done through the district court of the county in which the bank is located. These three banks were in a perfectly solvent condition and would be today only for the losses which they sustained in the Bankers' Trust company, so that their failure has not been occasioned by the general financial condition of the country, but only because of the tying up of their funds in the Kansas City failure."

2. November 5, 1907 The Marion Daily Mirror Marion, OH
Article from The Marion Daily Mirror, November 5, 1907

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Article Text

Three Kansas Banks Fail. Topeka, Kan., Nov. 5.-Bank Commissioner Royce announced Monday that three Kansas banks had been forced to close their doors owing to the failure of the Bankers' Trust Co., of Kansas City, Mo., on October 28. The banks are the Coyville state bank, of Coyville; the Garland state bank, of Garland, and the Citizens' state bank, of Mulberry, all small institutions, They had deposits with the Bankers' Trust Co. Receivers will be appointed. The Coyville bank had deposits of $10,000, the Garland bank $50,000 and the Mulberry bank $85,000.

3. November 5, 1907 New-York Tribune New York, NY
Article from New-York Tribune, November 5, 1907

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Article Text

FIVE BANKS CLOSED. Failure of Trust Company Forces Three Kansas Suspensions. Topeka, Kan., Nov. 4.-J. W. Royce, Bank Commissioner, announced to-day that three Kansas banks had been forced to close their doors owing to the failure of the Bankers' Trust Company, of Kansas City, Mo., on October 28. The banks are the Coyville State Bank, Coyville; the Garland State Bank, Garland, and the Citizens' State Bank of Mulberry, all small institutions. They had deposits with the Bankers' Trust Company. Receivers will be appointed at once. The Coyville State Bank had deposits of $10,000. the Garland State Bank, $50,000. and the Citizens State Bank of Mulberry, $85,000. The National Bank of Commerce of St. Louis was the foreign correspondent of the Mulberry bank and the Mercantile Trust Company of New York was the correspondent of the Garland institution. The banks have been organized only a few years. Leetonía, Ohio, Nov. 4.-The First National Bank here failed to open to-day. A notice posted on the door states that the concern will liquidate its liabilities. C. N. Schmick, of Cleveland, is president of the bank, which has been in business twenty-two years. It was organized with a paid up capital of $100,000. Aurora, Ind., Nov. 4.-Owing to the money stringency the Aurora National Bank failed to open to-day. The bank was organized in 1883 with a capital of $50,000 and its deposits aggregated $165,000. No statement of the liabilities has been made.

4. November 5, 1907 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, November 5, 1907

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Article Text

BANK FAILURES OF YESTERDAY Institutions All Small Concerns and Have No Bearing on General Situation. Topeka, Kan., Nov. 4.-Bank Commissioner J. C. Roys says today that three Kansas banks had been forced to close their doors owing to the failure of the Bankers' Trust company of Kansas City, Mo., October 31. These banks are: The Coyville State bank, Coyville; the Garland State bank, Garland: Citizens' State bank, Mulberry. All of these institutions had heavy deposits with the Bankers' Trust company. Receivers will be appointed. The Coyville State bank had deposits of $10,000; the Garland State bank, $50,000, and the Citizens' State bank of Mulberry, $85,000. The National Bank of Commerce of St. Louis was the foreign correspondent of the failed Mulberry bank and the Mercantile Trust company of New York was the correspondent of the Garland institution. The banks had been organized only a few years.

5. November 7, 1907 The Free Lance Fredericksburg, VA
Article from The Free Lance, November 7, 1907

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Article Text

Three Kansas Banks Close Topeka, Kan., Nov. 5.-Bank Com. missioner J. W. Royce announced that three Kansas banks had been forced to close their doors owing to the failure of the Bankers' Trust company, of Kansas City, Mo., on October 28. The banks are the Coyville State bank, Coyville; the Garland State bank, Garland, and the Citizens' State bank of Mulberry, all small institutions. They had deposits with the Bankers' Trust company. Receivers will be appointed at once,

6. November 8, 1907 The Ely Miner Ely, MN
Article from The Ely Miner, November 8, 1907

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Article Text

TRUST COMPANIES TO BE SUPPORTED MORGAN AND OTHERS DECIDE TO AID TWO INSTITUTIONS OF NEW YORK. Stocks Moving Upward Turn in Financial Crisis Seems to Be Reached-Three Small Banks in Kansas Are Compelled to Close. New York, Nov. 5.-The buoyancy of the stock market Monday reflected the ultimate decision of large bankers to support the two institutions-the Trust Company of America and the Lincoln Trust company-which have been subjected to the most severe runs during the last two weeks. The day was one of doubt and conflicting rumors, and the fact that it passed without an adverse development is evidence that the worst of the situation is probably over. At a late hour in the morning an agreement was reached, largely through the influence of Mr. Morgan, by which the trust companies will cooperate in future for their mutual protection and the directors will lend the assistance of their personal fortunes to meet immediate necessities. Turn in the Crisis Reached. The achievement of these results, with the steady upward movement of the stock market till near the close, is believed to mark the turn of the crisis. The loss of $30,000,000 in cash by the clearing house banks, according to their Saturday showing, in spite of $30,000,000 which had been poured into their tills during the week from the treasury, was expected to have a disturbing effect. It was a worse showing than will be possible again in the face of the heavy arrivals of gold. Gold engagements since the beginning of the present movement now amount to $32,000,000, which would more than bridge the loss in surplus reserve last week. The disturbances which are sweeping over the exchange market and arousing concern in foreign markets were indicated by the rise of foreign exchange in New York considerably above the point at which gold could be imported profitably. The fact that it is still coming this way indicates the determination of New York bankers to strengthen their position even at a loss. The high rate for bills was caused by the demand for exchange to cover the arrivals of gold. The executive committee of the Merchants' association Monday passed formal resolutions in which confidence in the financial institutions of the city was expressed. Three Kansas Banks Close. Topeka, Kan., Nov. 5.-Bank Commissioner J. W. Royce announced Monday that three Kansas banks had been forced to close their doors, owing to the failure of the Bankers' Trust company of Kansas City, Mo., on October 28. The banks are the Coyville State bank, Coyville; the Garland State bank, Garland, and the Citizens State bank, of Mulberry, all small institutions. They had deposits with the Bankers' Trust company. Receivers will be appointed at once.

7. November 9, 1907 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, November 9, 1907

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Article Text

BANKS WILL RESUME BUSINESS. Bank Commissioner Royce Straightens Out Bankers' Trust Muddle. Bank Commissioner John Q. Royce returned from Kansas City last night, where he has spent the greater part of his time since the failure of the Bankers' Trust company which closed its doors when refused assistance by the clearing house association two weeks ago, Mr. Royce is well pleased with the arrangements which have been made for caring for Kansas banks affected by the failure and while 23 have been more or less affected by the closing of the Bankers' Trust company's doors but three of them have been compelled to close and two of this number have made arrangements to reopen or have opened. The Coyville State bank closed its doors for a few days pending an.adjustment of the affairs of the Bankers' Trust company, as did the State bank of Garland. Arrangements have been made by which the Bankers' Trust company's paper will be taken care of by citizens of the two towns. There is some question as to whether the Citizens' State bank of Mulberry will be able to affect a settlement on the same basis as It is well loaded with paper which is considerably below par just at this time. "This has been a panic of bankers, not of depositors," said Mr. Royce this morning, "and the conditions in Kansas were never better than they are today and less reason for anxiety as to the safety of the state's banking institutions. The farmer depositors are taking the conditions as a matter of fact and are the least anxious as to the ultimate results of this little flurry."

8. February 27, 1908 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, February 27, 1908

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Article Text

Bankers' Panic and Its Effect on Kansas. Only Two Banks That Closed for Good. DUETOOTHER CAUSES. In Both Cases Dishonest Management Did It. Eleven Others That Quit Have Resumed Business. is Now that the "bankers' panic" over, it is interesting to foot up the net results in the state of Kansas. Things looked bad at one time. When the Bankers' Trust company of Kansas City went down, closely followed by the Bank of Commerce, both of which were heavily patronized by Kansas banks, it was expected that the state of Kansas would be lucky if it escaped without most serious difficulties. The reports in the office of State Bank Commissioner John Q. Royce show that during the whole of the 'panic," only 13 state banks in Kansas closed their doors and eleven of these are again doing business. Seven banks closed because of the Bankers' Trust failure, and six of these have resumed business. Three banks closed because of the Bank of Commerce failure and all have resumed business. Three banks became involved by dishonest officials, and one of these resumed business. Another paid out in full and quit. The only banks in the state which closed for keeps during the panic' were the Citizens' State bank of Mulberry (Crawford county) and the Bank of Ellinwood (Barton county) The Citizens' State bank of Mulberry was owned entirely by President Brady of the Bankers' Trust. Brady borrowed all the money of the Mulberry bank, and left it strapped. The Ellinwood bank was robbed blind by Bochemole, who later committed suicide. The history of the eleven banks which closed and then resumed is ina teresting because it shows on what solid basis the banks of Kansas have been doing business. As this history is well known in the localities where the banks are doing business, no harm can be done in making it public In fact, the thing which saved these banks was the fact that they took their stockholders and depositors into their confidence, and showed them exactly where they stood. The public stood by the bankand helped them to continue in business. The Bank of Scottsville was closed because of bad management on the part of its officials. However, the depositors have been paid up in full, and a new bank has been started at Scottsville to take the place of the old one. The Arcadia State bank failed because its president lived too high, and borrowed too much money from the bank. When he came to the finish, his relatives stepped in and made good all in the shortage. The bank continued business with a new president. The seven banks which were thrown into difficulty by the Bankers' Trust failure were these Mulberry State bank, Crawford county Citizens' State bank, of Mulberry. Coyville State bank, Wilson county. Garland State bank, Bourbon county. Fontana State bank. Miami county Peoples State bank of Richmond, Franklin county Heston State bank. Harvey county. The Mulberry State bank closed because its money was tied up in the Bankers' Trust The same day it was sold to Miller Bros. who opened the bank up for business as usual the next day, and it has been doing business ever since. The Coyville bank had $5,700 in the Bankers' Trust, and the Bankers' Trust owned 57 shares of stock in the bank. The bank forfeited its $5,700, and got its stock back. It sold the stock and resumed business today This is the bank of which Senator Robertson is president The Citizens' State Bank of Garland closed and its stockholders at once started a new bank known as the Home State bank. One of the officers of the HomeState bank was appointed receive for the Citizens, and all the assets of the Citizens' are being handled through the new bank. This bank will pay its depositors in full, and it might be said that the Home bank is practically the same as the old Citizens' State bank. When the Fontana State bank found a that it was involved in the Bankers' Trust crash, meeting of the stockholders was quickly called, and it was decided to shut up the bank temporarily and send the cashier to Kansas City to see what could be done. This prompt action enabled the cashier to get hold of all the paper in the Bankers' Trust belonging to the Fontana bank before a receiver was named. The bank was closed from October 29 till November 18, and then resumed business. The People's State Bank of Richmond and the Heston State bank were closed only a few days until the officers could find out "where they were at.' The three failures due to the Bank of Commerce crash were not even as serious as those due to the Bankers' Trust disaster, for the Commerce failure was an honest failure, while the Bankers' Trust trouble was due to dishonest methods on the part of the management. The First State Bank of Argentine, when the news of the Commerce falld ure reached it. remained open until 2 o'clock in the afternoon. Then the cashier became alarmed for fear that e his bank was insolvent, and that he would be liable to punishment for taking deposits, and closed his bank. It was closed for just one business hour. for the next morning it opened up as usual. The State Bank of Admire in Lyon e county and the Pledmont State bank in Greenwood county, both closed for a day or two, and then resumed business as usual. There were hundreds of Kansas banks with large balances in the Bank of k Commerce, and none of them will lose a cent. It is admitted that this bank 0 will pay out dollar for dollar, and the