The town of Palco was given it’s name using the first letters of the last names of the two railroad officials, Mr. Palmer and Mr. Cole (thus “Pal” and “Co” ) who were instrumental in founding the town. The current library, built in 1928, was previously the First National Bank. This bank was one of the few banks in Rooks County that did not close its doors following the Stock Market Crash of 1929. Today, Palco has one of the newest activity centers in Kansas, the McKenna Youth & Activity Center.