10404. Forest City Bank (Forest City, NC)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
February 4, 1930
Location
Forest City, North Carolina (35.334, -81.865)

Metadata

Model
gpt-5-mini
Short Digest
555f14af0a19f099

Response Measures

None

Description

Multiple contemporaneous newspaper accounts (Feb 4–5, 1930) report heavy withdrawals (a run) on Forest City Bank/Forest City Bank & Trust and its Caroleen branch; the bank then closed and was placed in the hands of the North Carolina State Banking Department. OCR shows variants (Forrest/Forrestt) and 'Bank and Trust' / 'Bank & Trust Co.' — corrected here. Cause appears linked to runs on other local Rutherford County banks as well.

Events (3)
1. February 4, 1930 Run
Cause
Local Banks
Cause Details
Heavy withdrawals following runs and/or closings of other Rutherford County banks; local panic among depositors.
Measures
Directors reportedly closed the bank 'to protect depositors'; state examiners were sent from Raleigh.
Newspaper Excerpt
two closed after a heavy run ... Bank & Trust Co. The Farmers and its branch at Caroleen ... large runs depositors resulted in their closing
Source
newspapers
2. February 5, 1930 Other
Newspaper Excerpt
Forest City bank has capitalization $250,000, with approximately $1,000,000 in resources. Its Caroleen branch has resources of $50,000. Officials both banks declined make official said closed to protect depositors.
Source
newspapers
3. February 5, 1930 Suspension
Cause
Government Action
Cause Details
After heavy runs directors closed the bank and the state banking department took control/placed the affairs in the hands of the department.
Newspaper Excerpt
The bank was placed in the hands [of] the state banking department ... Five Put Under Control Of State Department
Source
newspapers

Newspaper Articles (5)
1. February 4, 1930 The Durham Sun Durham, NC
Article from The Durham Sun, February 4, 1930

Click image to open full size in new tab

Article Text

5 Rutherford Banks Close Their Doors (Continued from Page One) by the board of directors, was fixed to the doors declared the affairs of the banks had been put in hands the banking department for the protection of positors. on the Farmers' Bank and Forest lleved by bankers to outgrowth of the closing of the Rutherfordton followed by called meeting of directors the Forest City and the closing the as well its branch at The bank was placed in the hands the state banking department, notice sald. Feb Rutherford Bank and company with an industrial bank. the to this notice on the door "This closed by order of the directors for protec tion of the and action of the state banking depart The bank is capitalized its January total as surplus and deposits as Taylor president and Walker statement of Janu gave the deposits of Taylor president while W Walker cashier Arial cashier the Spindale branch. Resources the branches immediately Surplus and capital the est with of well lion dollars. Dr. president R. Hicks is cashier the Caroleen has re about $50.000 No this morning for the closing of the banks. was promised for morning. The closing of the and their branches only three banks in Rutherford They are at Bostic and Caroleen

2. February 5, 1930 The Birmingham Post Birmingham, AL
Article from The Birmingham Post, February 5, 1930

Click image to open full size in new tab

Article Text

NORTH CAROLINA BANKS CLOSED Five Put Under Control Of State Department N. Feb. bank examiners were five banks in charge of three of county their doors failed to open Tuesday and two closed after a heavy run. which assets all institutions are approximately Rutherford County Bank its branches Trust and Union Mills, to open under orders of the board of directors, after all three had stood heavy run Monday Bank & Trust Co. The Farmers and its branch at City Caroleen opened usual Tuesday by de but large runs positors resulted in their closing before Mitchell, chief state bank John examiner, sent two employes here from Raleigh after he had been notified of the banks closing. County Bank The Rutherford Trust Co. is capitalized at deposits of and of according to its statement of Jan The Forest City bank has cap italization $250,000, with ap$1,000,000 in reproximately sources. Its Caroleen branch has resources of $50,000.

3. February 5, 1930 Courier-Post Camden, NJ
Article from Courier-Post, February 5, 1930

Click image to open full size in new tab

Article Text

FIVE BANKS CLOSED IN CAROLINA COUNTY Rutherford, N. Feb. Rutherford county banks, two tutions three branches closed failed open their doors for business The Rutherford County Bank and Trust Company Union failed to for business today after officers and directors here Monday Forrest City Bank and Trust this morning but closed run of Officials both banks declined make official said closed to protect depositors.

4. February 5, 1930 The Charlotte Observer Charlotte, NC
Article from The Charlotte Observer, February 5, 1930

Click image to open full size in new tab

Article Text

LEAKY That proposition agents could ployed prohibition enforcement service those never take drink, turns out the nature dry Senate subcommittee has reported unanimous vote confirmation nomination United States Marshal who not only voted against the Eighteenth Amendment but "does not for liquor," staken of approval given his nomination Mr. Borah, the generally having inspired the boycott order against any drys. Borah chief Inquisitor, and in spite of the applicant's admissions along took The fact appears have dawned the the kind that the Mitchell policy enforced. numbers would barred. the weakening enforcement personnel. The ruling appears have the The the Jackson dinner Raleigh have been duly diligent prevention of the "hogging" the time by the politely allows Mr. Shouse and liberal they guests but such figures Simmons Balley that lopped for Gardner and Joe the with subject Wilson. The candidates will given minutes divide their five selves while the will confined each. There the feast. but with the flow oratory ammed the limits fixed. going the traditional feasts of reason and flow somebody does political break agement will had abundant reason Opponents branch quick upon argument Rutherford the closing bank down branch banks The contention will that there the institution. have been but failure. The five banks single regarded other than serious Only three remain in the whole these mill communities. The Forest City might except for the fact the closing into the depositors Instituted wrecking their local bank. The bank the bank Forest City each had "resources" over million dollars. The State Banking Department has stepped the protection details what brought the trouble be known. THE More more the radio pressed Into service for the benefit the public, the latest departure being what called American School the first "moofment." Walter Damrosch having say, been put yesterday the Commissioner Education co-operation Julian Klein, matter helping. for the twice week for weeks, Tuesday and Thursday. at Eastern standard time. The first broadcast dealt with American history: Thursday the young folks will hear civies, art, nature study International good will. The expectation that this experiment will reach school through

5. February 5, 1930 The Roanoke Times Roanoke, VA
Article from The Roanoke Times, February 5, 1930

Click image to open full size in new tab

Article Text

RECLUSE NOW Death Valley' Scotty, Fortune Lost on Stocks, Goes Back to Mine Kansas City, Mo., Feb. Valley" Scotty, the eccentric millionaire from the gold mines of the West, hurried to his desert castle tonight intent upon recouping fortune lost in the stock market. "Death Valley" whose almost forgotten name Walter Scott. passed through here week ago Paris All life had been busy taking gold from his Death Valley FIVE CAROLINA BANKS then had built himself the sun baked sands nearby FORCED TO CLOSE DOORS which enjoy life. even swell joint like that Rutherford. C., Feb. got said Scotty institueral ago fame when and four branches closed failed special open their doors for business today against "just the fun Rutherford County Bank Scotty started for Paris. Trust with his pockets bulging with Union failed to open notes 10-gallon hat today grizzled head. passed through officers here Monday and City the opposite direction tonight. day. downcast and with all thought The Forrest City Bank Trust the pleasures Paris vanished. Company branch Baroleen. turned he when opened this morning closed after learned he all his ready depositors. Officials both declined money playing stock market. Castle. make "Guess have do some closed Bank said Unless charge the affairs "plenty. Scotty added involved. President Taylor, the Rutherthat might have give up Bank and Trust Company, manorial believed depositors eventuorgan and its scores ally receive rooms. which valley where the mercury sometimes touched Forrest Bank Trust "You the taxes on it $150.just This about ruined me. Why nearly Scotty reached his pocket find bill which tip the porter Despite financial difficulties trouble locating bill enough porter. After thumbfinally found one five dollars. trains and hastened lonely castle in the painted desert.