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Much Faith in Osceola Banks Despite Closing Extra Teller Had to be Placed in One Institution To Receive Cash Deposits (By The Associated Press) Osceola, Ark., Jan. 7.—As phenomenal in banking procedure as was the closing of the doors of the Citizens Bank here Thursday morning with its legal reserve unimpaired and its affairs apparently in better shape than a year ago, even more phenomenal was the reaction of the public to the closed institution as indicated by business done just across the street at the Bank of Osceola. Fearing the customary "run" on the bank that usually follows closing of the doors of another institution in the same town, the Bank of Osceola yesterday morning notified all its correspondents and prepared to take care of anticipated withdrawals. Instead, an extra teller had to be placed at the window to take care of deposits, and the total deposits Thursday aggregated around $56,000 or $40,000 more than an average daily deposit. New Accounts Received Fifteen new accounts were opened within 40 minutes after the doors of the Citizens Bank closed, and only two accounts aggregating a little over $2,000 have been withdrawn. Two correspondents banks in St. Louis, two in Memphis, one in Little Rock, the banks at Blytheville and Wilson have all pledged their support to the Bank of Osceola in the crisis. R. E. Lee Wilson, Wilson, Ark., financier, was the first to offer assistance Thursday morning, and the assurance of the availability of almost unlimited resources was given over long distance telephone by an influential friend of the Bank of Osceola immediately following the failure of the Citizens Bank. This information was given out yesterday morning by Miss Emma Cox, cashier of the Bank of Osceola, and J. L. Williams, president. "As much as we appreciate this expression of confidence on the part of our correspondence banks and our friends, it will not be necessary to call upon them at this time," Miss Cox said yesterday morning. Extra Teller Used "Because the confidence of the local public in the Bank of Osceola, we believe is unprecedented in banking circles under similar circumstances. "We believe it has never happened before that an extra employee had to be used to receive deposits in a bank following the closing of another bank in the same town, and much as we regret the closing of the Citizens Bank and the consequent depression of business, we are only too gratified that the confidence of Citizens Bank patrons in our institution as well as that of our own depositors will permit us to take care of their needs during the present crisis." W. L. Gatz of Jonesboro has been appointed receiver for the defunct bank, and arrived yesterday morning to take charge of its affairs. Whether the business will be liquidated or a reorganization of the institution affected is a matter of speculation. The bank had a capital stock of $50,000, a surplus of around $20,000, owned assets far in excess of its liabilities, and according to statements of officials, was entirely solvent. It is believed that depositors will receive dollar for dollar for their deposits.
