Monday, February 21, 2011

SAVING A BANK 1932

This Blog is for New Mexico banks and New Mexico businesses or for those who want to know about the legal landscape in New Mexico banking and business. However, as banks wallow in the slow recovery from the worst economic downturn since the Great Depression and the regulators and Congress turn their backs on the community banks which have been the mainstay of American banking outside of Wall Street, an amusing historical event from the Depression is worth telling. It does not have much to do with law. It does show the spirit and attachment to local banks--at least those that survived-- which marked the Depression.

In August 1932 Bonnie and Clyde were trying to get out of Texas after a spree of robberies and three murders. They headed toward Carlsbad, New Mexico. Bonnie's aunt, Nettie Stamps, lived alone outside of Carlsbad. They holed up in her house with Ray Hamilton, their partner in crime.

Word reached Artesia, New Mexico, about 30 miles north of Carlsbad that the Barrow gang was in New Mexico. On "reliable authority" someone in Artesia law enforcement got word that Bonnie and Clyde planned to rob the First National of Artesia (recently renamed First American Bank). First National was started in 1903 and was the only viable bank in town. Bank failures had started as the Depression worsened and First National Bank of Artesia was an essential part of the economic life of Artesia's farmers. The town was less than 2000 in population and law enforcement was likely one or two town police.

Word of the impending Barrow gang raid on the Artesia bank got out quickly. The farmers, a close knit group, met and organized. There were about 10 of them. In the New Mexico of that day each of the farmers had 30-30 Winchesters or double barrel shotguns, loaded with Double Aught buckshot left from deer season.

The small bank building was in the center of town, just off Main Street. The bank was surrounded on all sides by one or two story buildings with small shops and apartments in the second stories. On August 12 1932,before the bank opened, the armed farmers arrived to take their posts on top of the buildings surrounding the bank. These farmers were to become some of the most prominent citizens of the town and their irrigated farms stretched out as much as 10 miles from town.

They sat on the roof until dark, waiting on the Barrow Gang. My Dad, one of them, admitted that the vigil was marked by boredom and occasional terror when a strange car approached the area. The farmers mounted the roofs early the next day. Later, after noon, word spread that Bonnie and Clyde were indeed in Carlsbad. They had kidnapped the Sheriff of Carlsbad, Joe Johns, and they were seen heading back to Texas.

The Great Bank Robbery was foiled. First National Bank of Artesia was safe from Bonnie and Clyde. Privately most of the farmers were disappointed that they had not been able to engage in battle with Bonnie and Clyde. Bonnie and Clyde were lucky. Those farmers were good shots and no one was going cause their bank to fail. Sadly, the farmers' spirit is gone and sometimes one thinks there is no one left to save these small banks.

Marshall Martin
(505) 982 4611
mmartin@cmtisantafe.com