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COUNCIL HILL BANK FAILS Gradual Run Forced Officers to Decline to Accept More Deposits, President Says The Oklahoma State bank at Council Hill, 20 miles southwest of Muskogee, closed its doors yesterday morning and the bank officers telephoned the state banking department that it was unable to further pay depositors. "There wasn't any special run on the bank," said George Harding, president of the bank, last night. "There has been a gradual withdrawal of the bank's deposits for the past three years. Finally it got to the point where we didn't have hardly anything left to pay out, so right then we stopped receiving any more deposits and called up the state bank commissioner." The bank, according to Harding, has a capital stock of $10,000, with $16,000 deposits. "These deposits are secured by notes amounting to something over $24,000, which, with other assets, will give a fund of around $25,000. Most of the paper is good," declared the president, "and all of the depositors will be paid." The Oklahoma State bank was organized in 1911 and was the only bank in Council Hill.