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Closing of State Banks Fails to Stem Business
All Communities Involved in the McCauley Chain Drive Ahead in Trade.
CONTINUED FROM PAGE ONE bank commissioner found "outside DRper," that is, notes signed by persons who did not live in the communities where the banks were located, the notes being of questionable If any Cashiers of the local banks say that McCauley placed the outside notes in the banks and withdrew the money the banks drained of surplus funds to protect his interests In other communities. In each of the 11 communities where the titular banks were sert that the local bank would not have fatled If there had been no notes in the bank except notes made by local business men and farmers. Cashiers Liquidating Agents Nine of the 12 banks closed are in small towns, and seven of the nine small towns are without other bankHors that local conditions in no way contributed to the closing of the banks that cashiers. with single less for the failures. and at Sapulpa and Mounds depositors have naked that the cashiers be appointed ns liquidating agents, there being deepseated prejudice in all the communtLies effected against what depositors characterize as liquidators. are outside Hquidating agents termed. Never before have so many cashiers been held blameless by depositors in failed banks. The cashier in one of the fosted banks committed the blunder of leaving with his family the Wednesday night and telephonIng back to his assistant not to open the bank again. No School Funds lant He later returned. but his action had In the meantime arouned considerable in feeling among the deposiNo school district has lost school district funds, according to school of ficials and others in the districts. Sevoral of the failed banks contained school district funds. but In each in. stance they RTO reported to be secured provided by law. AL Avant, Osage county. the local school district had $8,000 of school district money on deposit in the Pirst State bank. the money being cecured by personal hond of signers said to worth $75,000. AL Oilton the school district had on deposit about $21,000 secured. Failure of the banks will in no way affect public schools, it is said.
Oilion Heavy Depositor The city of Oilton had on deposit in the Oilton State bank about $15,000. unsecured. according to Oscar Anderson, school board president," and owner of the large Ford agency at Some of the banks were not closed because of the presence of McCauley paper which the stockholders could not absorbed. but to forestall possible runs on the hank. At Keystone, about half way hrtween Ofton and Tulsa. failure of the Keystone State bank has temporarily abolished the credit business. accordmerchant. closing of the bank causing people to turn to the merchanis for an unusual amount of credit. J. M. Wallace cashier of the failed bank, has the confidence of the community. The Keystone State WAS capitalized at $10,000 and had deposits of about ty and is not incorporated. Its population 1s about Its resources are oll company pay rolls and agriculture From 500 800 bales of cotton are recelved at. the local giv. each year Electricity for lights and power is recelved from Hand Springs, 20 miles distant Flome of the local banking business has been done nt Sand Springs and Sanford for years. families, or rather elderly persons. been hard hit by the failure of the First State bank of Teriton. One old man is said to recently sold n farm for $4,000 which he deposited in the hand. The school district is not local station agent, and president of the school hoard. Small Depositors 1111 At Avant several large depositors have been hard hit by the Insing of the Avant State bank. From the viewpoint of prosperity Avant deceives its Orage county oil town. its population being much targer than et present. as Indicated by the many vacant Alore buildings in the The Henryetta State bank. Heary and in the amount of deposits involved by the string of bank failures. the parent bank sione of the 12 have Ing larger deposits. etta Free Lance. and no has been In Henryetta for 27 years. says of Incal conditions: bank In no way associated with an Industrial depression of any kind. If It had been an Independe nt bank. it would be open today. Henevelta for nearly seven years had been STRUE Confidence had backs. and in general xay the fallure of the Henryetta State bank hurts and name at most unfortunate time state loans that broke the bank." Hall. in explaining the solidity of local conditions. says that the annual payroll of the industrial community is about Collections apparently continue the end of the month. my collections totaled $700 and made no extra effort to Other Banks Uneffreted bank had no effect nn the American Exchange bank, and deposits in the latter increased $60,000 during the butterflles. week following the failure of the Henryetta State bank. Meands Supports Cashier At Mounds. about 12 miles southeast of Sapulpa, G. A. Morris has nearly the unanimous support of the deposttors of the failed Bank of Mounds which had capital of $25,000. and of hich Morris was cashier. McCauley paper is blamed for the closing of the banks, the assertion being made that McCauley kept the bank drained of surplus funds. Morris is said to have owned 30 shares In the bank and to have protested against the unloading of out. side paper on the bank. Ls believed that 85 percent of the bank's notes are collectable One hundred and thirty depositors joined in asking that Morris be appointed liquidating agent for the bank. Failure Taken Seriously Webbers Falls, Muskogee county. takes the failure of the Citizens State hank seriously. not that any of the merchants will fall as result of the bank failure, but farmers in the surrounding trade territory were unfortunate enough to have the proceeds of n fair-sized crop in the bank. Vian, Sequoyah county. will probably be left one-bank town as the result of the failure of the First State bank, capital $10,000 and deposits of $70,000. the First National bank being the remaining bank. Until about five years ago Vian an extraordinary cotton point, the local ginnings times running between 10,000 and 15,000 bales. Weleetka Suffers Less ently will suffer less than many of sult of the failure of Bank of Commerce. capital. $25,000; deposits $00, 000. The State National bank, the remaining bank, has offered to take over assets for 75 cents on the dollar, and liquidate the bank. Weeletka 16 an ex. cellent business place, has good business houses. payed atrects and few vacant buildings. There is some question of whether Kellyville will have bank, as the result of the failure of the Bank of Kellyville, capital $10,000, deposits midway between Sapulpa and Bristow and in on bighway No. 66. Devenport Urgen Opening At Davenport Lincoln county. where the Davenport State bank failed. with capital of $15,000 and deposits of $140,000. there is an urgent demand for the reopening the bank, although Chandler in not far The 12 banks had combined capital of $210,000 and deposits of $2,315,000. Deposits In the Sapulpa State bank are said to have shrunk from more than $1,000,000 on last call for bank statement. to $800,000 nt. time of closInk. H. A. McCauley died unexpectedly at his Sapulps home shortly After notifying the banks not to open again. Death was attributed to aprplexy. He had been trying for acvoral days to obtain financial resistnuce necessary to keep the bankt open.
