In the years before Oklahoma Statehood Stroud boasted nine saloons and was a popular hangout for the cowboys passing through with their herds. Trader James Stroud who recognized the potential profit to be made by selling illicit whiskey smuggled to the Indians founded Stroud in 1892. Oklahoma Statehood brought an end to all the "partying" in 1907 when the town went "dry." After Statehood Stroud's economic base became agriculture and oil.