6892. Mulberry State Bank (Mulberry, KS)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
October 1, 1907*
Location
Mulberry, Kansas (37.557, -94.622)

Metadata

Model
gpt-5-mini
Short Digest
e20fbdd4

Response Measures

None

Description

Articles describe Mulberry State Bank closing because its funds were tied up in the Bankers' Trust collapse and being sold to Miller Bros., who reopened it the next day. There is some ambiguity in the reporting about multiple Mulberry banks: a Citizens' State Bank of Mulberry (owned by Brady) was put in receivership and apparently closed permanently, while the Mulberry State Bank (the subject here) was closed briefly and reopened. I treat the Mulberry State Bank as a brief suspension with immediate reopening due to sale to Miller Bros. Dates are not explicit; I tie the events to the Oct–Nov 1907 Bankers' Trust failure period.

Events (2)
1. October 1, 1907 Reopening
Newspaper Excerpt
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
2. October 1, 1907* Suspension
Cause
Correspondent
Cause Details
Funds of the Mulberry State Bank were tied up in the failure of the Bankers' Trust (a correspondent/associated bank), forcing a temporary closing
Newspaper Excerpt
The Mulberry State bank closed because its money was tied up in the Bankers' Trust
Source
newspapers

Newspaper Articles (2)
1. November 22, 1907 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, November 22, 1907

Click image to open full size in new tab

Article Text

JACKSON TO HELP Attorney General Will Try to Rescue Three Little Banks. Ones Affected by Bankers' Trust Crash. ROYCE A BUSY MAN. Having a Time to Straighten Out Tangles. Situation in Financial Circles Apparently Brightening Up. Attorney General F. S. Jackson has taken a hand in the effort to save the three little Kansas banks which went to the wall as a result of the collapse of the Bankers' Trust company in Kansas City. These three banks are located at Mulberry, Coyville and Garland. Mr. Jackson was in Kansas City Wednesday, and the purpose of his visit was to investigate some of the matters connected with the Mulberry bank, which is now. in the hands of a receiver. There are rumors that the appearance of the attorney general in the case means that criminal prosecutions may be started against some parties who were instrumental in loading up the Mulberry bank with worthless paper. This worthless paper was placed in the bank, and cash was drawn out in its stead, and now the receiver is trying to compel the parties responsible to make good. Bank Commissioner John Q. Royce is also devoting his whole time at pres" ent to his efforts to help the three little banks out of their trouble. The banks at Coyville and Garland are in better shape than the one at Mulberry, and no receivers have been appointed for them. The citizens of the towns are willing to buy the stock of the two banks, and continue the operation of the banks, but the receiver of the Bankers' Trust, who holds the stock, wants too high a price. The Mulberry bank was largely the private enterprise of a man named Brady who was prominent in Bankers' Trust affairs. There are about twenty other banks in Kansas which were tied up more or less with the Bankers' Trust, but these have all secured possession of their stock by purchase from the receiver, and are in as good condition as ever. It was announced today at the state banking department that all reports received from Kansas banks are of an encouraging nature. There are no other banks aside from those involved in the Bankers' Trust affair which have shown signs of distress. "Conditions are steadily improving" said the state banking officials. "The reserve of the Kansas banks is larger today than it ever has been in the history of the state. There is also more cash on hand today than ever before. This is because bankers have limited withdrawals, and have been gradually getting in more and more money from their correspondent banks in the east. The only thing to be guarded against is the panicky withdrawals which might follow a removal of the lid. Money withdrawn in that way is out of circulation and becomes a menace. As long as it stays in the bank it is a safeguard." Bank Commissioner John Q. Royce said: "If I should issue a call for a statement of the condition of Kansas banks today, I am confident that it would show that the reserve is larger than at the time of the last call, when all previous records were broken. The Kansas banks are also gradually accumulating more currency, and business will gradually resume normal conditions. Before people know it, they will find that the 'lid' has been lifted, and that money is circulating as freely as ever." Mr. Royce yesterday received a long distance telephone communication from the southern part of the state from an indignant bank patron. "I have $2,600 in the bank here," he said. "and I am all packed up ready to move to Texas. I want my money and they won't give it to me." "Won't they give you a draft?" asked Mr. Royce. "Oh, yes, they'll give me a draft." "Is it on a good bank?" "Yes, the bank's all right." "Well, then," said Mr. Royce, "if I were you, I'd take the draft." "But I want the cash," said the man. "Why won't they give it to you?" inquired Mr. Royce, innocently. "They haven't got it," was the frank reply. "Well, do you want me to come down and close up the bank?" said Mr. Royce. "Oh, no, I don't want you to do that," said the man hastily. "Well, how can I make the bank pay you your $2,600 in cash if they haven't got it?" inquired Mr. Royce. "Well, I don't know, admitted the man. "But I think they ought to give me three or four hundred dollars in cash, anyway." sold Mr. Poyce

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

Click image to open full size in new tab

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