734. Sulphur Springs Valley Bank (Willcox, AZ)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
June 30, 1915
Location
Willcox, Arizona (32.253, -109.832)

Metadata

Model
gpt-5-mini
Short Digest
f05bd78a

Response Measures

None

Description

Bank was closed by order of the State Auditor (suspension) on account of slow paper and related troubles; subsequently its affairs were adjusted and a Phoenix bank took it over to reopen a branch. No run is described in the articles.

Events (2)
1. June 30, 1915 Suspension
Cause
Government Action
Cause Details
Closed by order of State Auditor Callaghan after exam; failure to realize on slow paper (connections with Gleeson Cash Store) caused financial troubles.
Newspaper Excerpt
SLOW PAPER CAUSE OF BANK SUSPENSION Sulphur Springs Valley Bank at WillCOX Closed by Order of Auditor Callaghan
Source
newspapers
2. September 30, 1915 Reopening
Newspaper Excerpt
WILLCOX BANK TO REOPEN AS LOCAL BRANCH Adjustment of Affairs of Sulphur Springs Valley Bank--Central Bank of a Phoenix to Establish Branch in Willcox Adjustment of the affairs of the defunct Sulphur Springs Valley bank ... the Central Bank of Phoenix will loan the adjustment company an amount sufficient to pay depositors 75 per cent. of their deposits at once ... a branch of the Phoenix bank will be opened at Willcox The plan to be followed is much the same as that adopted last year ... said Comptroller Callaghan yesterday.
Source
newspapers

Newspaper Articles (2)
1. June 30, 1915 Arizona Republican Phoenix, AZ
Article from Arizona Republican, June 30, 1915

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Article Text

SLOW PAPER CAUSE OF BANK SUSPENSION Sulphur Springs Valley Bank at WillCOX Closed by Order of Auditor Callaghan Announcement of the closing of the Sulphur Springs Valley Bank at Willcox was made yesterday by State Auditor Callaghan, after the return of Deputy J. B. Ormond, from an examination of the bank's assets. Failure to realize on slow paper is said to be responsible for the closing of the institution, which is capitalized at $10,000. Deposits aggregate $20,000. and about 150 depositors are affected. The following statement relative to the closing was issued by Deputy Ormond yesterday: "The state auditor thought it best to close the institution and conserve the assets. It is very probable that the depositors will be paid off in full within a reasonable length of time. In closing the bank there is a chance for probable reorganization, in which event depositors will be taken care of in full. Slow paper that could not be realized on caused the closing. There was no criminal act on the part of any of the officials."

2. September 30, 1915 Arizona Republican Phoenix, AZ
Article from Arizona Republican, September 30, 1915

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Article Text

WILLCOX BANK TO REOPEN AS LOCAL BRANCH Adjustment of Affairs of Sulphur Springs Valley Bank--Central Bank of a Phoenix to Establish Branch in Willcox Adjustment of the affairs of the defunct Sulphur Springs Valley bank of Willcox, Arizona, whereby the affairs of the institution will be taken over by the Central Bank of Phoenix, was announced yesterday by Bank Comptroller J. C. Callaghan. A branch of the Phoenix bank will be opened at Willcox and an adjustment company has already been organized by the stockholders and depositors to handle the assets of the Willcox institution. The Sulphur Springs Valley bank was closed by order of the bank comptroller about two months ago on account of financial troubles in which the Gleeson Cash Store, owned by the same parties, was involved. Under the arrangement just perfected the Central Bank of Phoenix will loan the adjustment company an amount sufficient to pay depositors 75 per cent. of their deposits at once, and the slow paper held by the bank prior to the closing, will be taken over and realized on as soon as possible. "The plan to be followed is much the same as that adopted last year in the adjustment of the affairs of the Old Valley Bank of Phoenix, and avoids the slower and more expensive procedure of throwing the bank's affairs into the hands of a receiver," said Comptroller Callaghan yesterday. "The adjustment company is already organized and depositors are pleased at the prospect of obtaining a large