10414. Gaston Loan & Trust Company (Gastonia, NC)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
trust
Start Date
December 16, 1930
Location
Gastonia, North Carolina (35.262, -81.187)

Metadata

Model
gpt-5-mini
Short Digest
dae363388a8143e7

Response Measures

None

Description

Multiple contemporaneous newspaper articles (Dec 16, 1930) report the Gaston Loan & Trust Co. of Gastonia failed to open and directors cited heavy withdrawals. The withdrawals are tied to rumors and prior failures (American National and Central Bank & Trust of Asheville), indicating depositor runs driven by distress of other local banks. By June 1931 the institution still appears on lists of closed/suspended Gastonia banks, suggesting it did not resume normal operations; therefore classified as a run leading to suspension and permanent closure. OCR errors in some articles corrected (e.g., 'Gastonia', 'Peoples Bank of West Gastonia').

Events (3)
1. December 16, 1930 Run
Cause
Local Banks
Cause Details
Heavy withdrawals and runs triggered by rumors and prior failures of nearby banks (American National Bank and Central Bank & Trust of Asheville).
Measures
Directors did not open the bank; suspended operations to protect depositors (notice posted).
Newspaper Excerpt
the Gaston Loan & Trust company of Gastonia... blamed 'heavy withdrawals'
Source
newspapers
2. December 16, 1930 Suspension
Cause
Local Banks
Cause Details
Directors suspended business after depletion of deposits and heavy withdrawals linked to contagion from Asheville bank failures and ensuing rumors.
Newspaper Excerpt
failed to open for business today; action taken 'for the protection of depositors'
Source
newspapers
3. June 23, 1931 Other
Newspaper Excerpt
the Gaston Loan and Trust company... [was listed among] the closing of the First National Bank, the Gaston Loan and Trust company, the Peoples' Bank of Gastonia, and the Bank of Dallas (June 23, 1931 report noting continued closure).
Source
newspapers

Newspaper Articles (11)
1. December 16, 1930 The Republican Springfield, MA
Article from The Republican, December 16, 1930

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Article Text

FOUR BANKS IN NO. CAROLINA FAIL TO OPEN Forced to Close by Depletion of Deposits; Hysteria Blamed Raleigh, N. C., Dec. 16-Five banks, four Gaston county, North Carolina, the fifth in York South Carolina, failed to open for business today. The banks are the First National of Gastonia, deposits, capital stock, Bank deposits, $300,000; capital stock, $300,000. Gaston Loan and Trust Gastonia, ital stock. Bank Dallas. C., deposits. $75,000; capital stock, $30,000. People's bank, Western Gaston county, North Carolina, deposits, $75,000; capital stock. The First National of Gastonia suffered an depletion of deposits the 30 days. President said the was attributable to "hysteria."

2. December 16, 1930 Evening Star Washington, DC
Article from Evening Star, December 16, 1930

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Article Text

TEN BANKS CLOSED TO PROTECT FUNDS Eight Are in North Carolina, One in South Carolina and One in West Virginia. By the Associated Press. CHARLOTTE, N. C., December 16.Eight North Carolina banks, four in the western part of the State and four in Gaston County either failed to open or closed their doors today. Directors of the institutions explained the action was taken as a precautionary measure for the protection of depositors. "Heavy withdrawls" was given as the reason in practically every case. The First National Bank of Gastonia, the largest of the eight, had deposits of $3,066,072.11. Resources were given at $4,656,067.68. The other three Gaston banks, the Gaston Loan & Trust Co. of Gastonia, the Bank of Dallas and the People's Bank of West Gastonia, were comparatively small institutions. The combined deposits totaled $270,052.84. Town Is Bankless. Closing of the Bank of Franklin in Macon County left that town without a financial institution. The bank's deposits were listed at $416,800. The Citizens' Bank, which merged with the Franklin last month, had deposits of $125,000. The Bank of Swannanoa, with deposits of $182,000, and the Bank of Clyde, with deposits of $105,000, failed to open after withstanding runs yesterday. The Bank of Fletcher, in Henderson County, closed in the face of heavy withdrawals after remaining open an hour and half. Its deposits were listed at $103,500. One Fails in South Carolina. YORK, S. C., December 16 (AP).-The bank of Clover, York County, closed its doors today. J. Lee Robinson, president of the First National Bank of Gastonia, which failed to open this morning, is also president of the Clover institution. One Closed in Hillsboro. CHARLESTON. W. Va., December 16 (AP).-The State Department of Banking today announced the closing of the Bank of Hillsboro, in Pocahontas County. The announcement said the bank was closed on Friday "to conserve assets" and that negotiations for taking over the institution were being made by the bank of Marlington. The Bank of Hillsboro on September 24 had capital stock of $25,000. Its resources were $205,748.72 and its deposits totaled $127,746.

3. December 16, 1930 Montpelier Evening Argus Montpelier, VT
Article from Montpelier Evening Argus, December 16, 1930

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SIX BANKS CLOSE DOORS In One Instance Action Is Taken Conserve Assets Gastonia, Dec. 16, Gaston county banks failed to open their doors today, leaving only financial institution in this textile of 20,000. The First National bank and the Gaston Loan and Trust company Gastonia, the Bank of Dallas and the Peoples Bank of West Gastonia blam"heavy withdrawals" in notices ing they would not open. The First National bank the gest of the four, had $3,660,072.11 deposit September 24. Bank officials said $800,000 had been paid to deposisince November 20, when the American National bank of Asheville closed its doors. Jenkins, president of the Asheville bank, was vice president the First National bank and its largest single stockholder. York, Dec. Clover, York county closed its doors today. Lee Robinson, president of the First National Bank of Gastonia which failed open this morning, president of the Clover institution. The bank had resources of about $650,000. Charleston, W. Va., Dec. 16, The state department of banking day that the Bank of Hillsboro, in Pocahontas county, was closon Friday The bank on September capital stock of $25,000. Its resources and its deposits taled $127,746.

4. December 16, 1930 The Chickasha Daily Express Chickasha, OK
Article from The Chickasha Daily Express, December 16, 1930

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Article Text

NORTH BANKS SUSPEND Eight Closed by Directors; Heavy Withdrawals Given as Main Reason. Charlotte, N. C., Dec. 16. North Carolina banks, four in the western part of the state and four in Gaston county, closed their doors today. Directors of the institutions in each explained the action was taken as measure for the of "Heavy withdrawals" generally was given as the reason. The First National Bank of Gastonia, the largest of the eight, had deposits of $3,066,072. Resources were given at $4,656,067. The other three Gaston banks, the Gaston Loan and Trust company, of Gostonia, the Bank Dallas and the Peoples Bank of West Gastonia small institutions. Closing of the Bank of Franklin, in Macon county, left that town without financial institution. The Bank of and the Bank of Clyde, failed to open after withstanding runs yesterday. The Bank of Fletcher, in Henderson county, closed in the face of heavy withdrawals after the remaining open an hour and half.

5. December 16, 1930 The Herald Rock Hill, SC
Article from The Herald, December 16, 1930

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Article Text

Eight Institutions Are Closed Today Charlotte, Dec. 16. (AP)Eight North Carolina banks, four in the Asheville area in the westTern part of the state, and four Gaston county, either failed to open or closed their doors today. Directors of the institutions said the action was taken for protection of depositors. "Heavy withdrawals" was referred to in practically every case. The First National bank of Gastonia, largest of the eight, had deposits of $3,066,072.11 listed in its September 24th report. Resources were given as $4,656,067.68. The other Gaston banks, the Gaston Loan & Trust Co., of Gastonia; the Bank of Dallas and the Peoples Bank, of West Gastonia, were comparatively small. Their

6. December 16, 1930 The Atlanta Journal Atlanta, GA
Article from The Atlanta Journal, December 16, 1930

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11 Banks in Carolina Fail to Open Doors CHARLOTTE N. Dec. 16 -(AP) North Carolina closed doors Tuesday Four banks in Gaston County, four the Asheville area of western North Carolina, in County, in Jornston County and Bertie County shut their Also bank at Clover, S. C., failed The First Bank of Gaswas largest of the with deposits of $3,066,072. on September The Peoples Bank of Waco, in Cleveland County capital of and resources of $111,338.26 doors. Clayton Banking Company, of $75,000 and with resources of $393,731.36. did not open. The Bank of Aulander, in Bertie County. with capital of and resources of also did not open. other three Gaston banks, the Gaston Loan Trust Company, of Gastonia the Bank of Dallas and the Peoples of Gastonia were comparat institutions. The combined $270,052.84 Closing of the Bank Franklin, in County, that without financial The bank's deposits Citizens listed at $416,800. The Bank which merged with the Franklin $125,000. last month. had deposits of The Bank of Swannanoa, with deposits of and the Bank of Clyde, with deposits $105,000. Monday failed to open after withsfanding runs Bank of Fletcher in Henderson in of heavy withdrawals after remaining open an listed hour and half. Its deposits at Bank Clover York County resources about to open Trust Companies NEW the market. Asked Express Comm Ital 255 Banca Sivilia Bank Europe Tr 570 Broadway Plaza Brooklyn Hanover Clinton Bk Tr Exchange County Guaranty Hibernia Inter Madison Trust is County Title Guar Manufacturers Midwood Mutual West Times Square 125 of Nr Am 2800 Westchester Title Tr Westchester

7. December 17, 1930 The Cincinnati Enquirer Cincinnati, OH
Article from The Cincinnati Enquirer, December 17, 1930

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ELEVEN BANKS SUSPEND. "North Carolina Institutions In Five Areas Are Closed. Charlotte, N. C., December 16-(AP)-Eleven banks in North Carolina closed their doors today. Four banks in Gaston County, four in the Asheville area of Western North Carolina, one in Cleveland County, one in Johnston County and one in Bertie County shut their doors. The First National Bank of Gastonia was the largest of the 11, with deposits of $3,066,072 on September 24. The Peoples Bank of Waco in Cleveland County, with capital of $5,000 and resources of $111,338.26 shut its doors. The Clayton Banking Company of Clayton, capitalized at $75,000 and with resources of $393,731.36, did not open. The Bank of Auhlander. in Bertie County, with capital of $80,125 and resources of $385,896.95, also did not open. The other three Gaston banks, the Gaston Loan and Trust Company, of Gastonia, the Bank of Dallas, and the Peoples Bank of West Gastonia were comparatively small institutions. The combined deposits totaled $270,502.84. Closing of the Bank of Franklin, in Macon County, that town withfinancial institution. The bank's deposits were listed at $416,800. The Citizens Bank, which merged with the Franklin last month, had deposits of $125,000. The Bank of Swannanoa with deposits of $182,000 and the Bank of Clyde, with deposits of $105,000 failed to open after withstanding runs yesterday. The Bank of Fletcher, in Henderson County, closed in the face of heavy withdrawals after remaining open an hour and half. Its deposits were listed at $103,500.

8. December 17, 1930 Leader-Telegram Eau Claire, WI
Article from Leader-Telegram, December 17, 1930

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BANKS FOUR STATES CLOSED North Carolina Leads Others with Seven Suspensions (By Associated Press) GASTONIA, Dec. Gaston county banks failed to open today, leaving only one financial institution in this textile city of 20,The First National Bank and the Gaston Loan and Trust company of Gastonia, the Bank of Dassal and the Peoples Bank of West Gastonia blames "heavy withdrawals." The First National Bank, largest of the four, had $3,066,072 on deposit Sept. Resources were listed $4,Bank officials siad $800,000 had been paid out to depositors since Nov. 20, when the American National Bank of Ashville closed its doors. Three Others Fail ASHEVILLE, N. Dec. Three banks in small western North Carolina towns failed to open today. The closing of the bank of Franklin left that town without financial instituoion. The bank had deposits approximately The bank of Clyde, with deposits $105,000 was closed because of heavy withdrawals. The same reason for the closing the was given he bank of Fletcher, which osite of $103,500. Carolina Bank Closes YORK, Dec. bank Clover, York county, Lee Robinson, of the National Bank of Gastonia, failed to open this morning, also president of the Clover The bank had Resources of $650,000. One in Virginia The State Department today the closing bank Hillsboro "to conserve and that ing over the institution were made the bank The bank on September 24 ital stock of Its $205,748.72 and its deposits taled $127,746. Company SALT CITY, Dec. Columbia was placed in the hands state banking department Frank Cook, president of stitution, said the board of requested closing order protect all depositors without erence." "Total deposits are total assets $1,175,590.98," said, adding that "every will be paid in full."

9. December 17, 1930 The Atlanta Constitution Atlanta, GA
Article from The Atlanta Constitution, December 17, 1930

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Bond Dealings on New York Stock Exchange ELEVEN BANKS CLOSE IN NORTH CAROLINA High prices Stock Western CHARLOTTE, N. C., Dec. 16.Close. (AP) Eleven banks in North Carolina closed their doors today. Four banks in Gaston county, four in the Asheville area of western North Carolina. one in Cleveland 100 county, one in Johnston county, and one in Bertie county shut their doors. FOREIGN BONDS. CORPORATION The First National Bank of GasManati tonia was the largest of the 11, with P&P Sales Close (in $1,000). High Sydney Hy Ujigawa Unterelbe Upper Venetian Vienna City Warsaw City Un Wurttemberg 831 6s 931 931 today ago January date same year same two years ago Danish trustee. du Pont Marseilles deposits of $3,066,072.11 on September 24. The Peoples Bank of Waco, in Cleveland county, with capital of $5,000 and resources of $11,388.26 shut its doors. The Clayton Banking Company, of Clayton, capitalized at $75,000 and with resources of $393,731.36, did not open. The Bank of Aulander. in Bertie county, with capital of $80,125 and resources of $385,896.95, also did not open. The other three Gaston banks, the Gaston Loan & Trust Co., of Gastonia; the Bank of Dallas and the Peoples Bank of West Gastonia, were comparatively small institutions. The combined deposits totaled $270,052.84. Closing of the Bank of Franklin in Macon/county, left that town without a financial institution. The bank' deposits were listed at $416,800. The Citizens Bank, which merged with the Franklin last month, had deposits of $125,000. The Bank of Swannanoa, with deposits of $182,000. and the Bank of Clyde, with deposits of $105,000, failed to open after withstanding runs yesterday. The Bank of Fletcher, in Henderson closed in the face of heavy withdrawals after remaining open hour and half. Its deposits were listed at $103,500. BIRMINGHAM DISTRICT BANKS EFFECT MERGER BIRMINGHAM, Ala., Dec. 16.merger of the Bank of Ala bama with the Ensley National Bank, making the combined assets over $1,000,000. was announced early today by Oscar Wells, chairman of the board the First National Bank of Birmingham. "With the co-operation and support of the Birmingham Trust & Savings Co. and the First National Bank of Birmingham, Mr. Wells statement said, "the assets will be taken over by the Ensley National Bank and the latter assume the liabilities of the Bank of Alabama. R. A. Terrell, 68. for many years president of the Bank of Alabama, died yesterday of wounds which Coroner D. Russum said were self State Superintendent of Banks Dent F. Green said that a recent report of

10. June 23, 1931 Battle Creek Enquirer Battle Creek, MI
Article from Battle Creek Enquirer, June 23, 1931

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GASTON CALM AS BANKS SUSPEND Four Small Institutions Close to Protect Depositors; Others Also. Special Charlotte Observer the announcement here last night of the closing of the First National Bank, the Gaston Loan and Trust company, the Peoples' Bank of Gastonia, and the Bank of Dallas, a mass meeting of some 300 or more leading including leading depositors of the Citizens National bank, the only remaining bank in the city of Gastonia, rose as unit to fortify the community from further financial disaster. That mass meeting proved today that had served its purpose well, and the citizenship of Gastonia went about its business in a calm and orderly fashion. There was no run on the Citizens National bank today. Although some small depositors called for their money, there was no crowd about the lobby of the bank, and by noon today the bank presented the appearance it does on any ordinary business day. G. Myers, its president, said this afternoon that deposits today had outnumbered withdrawals, while many new accounts were opened during the day. There was no evidence at all of any panicky feeling, and the general attitude this afternoon was one of quietude and confidence. The Citizens bank had prepared it: self for any emergency, and was prepared to pay any depositors who might wish to withdraw their money. special edition of The Gastonia Daily Gazette issued early this morning carried list of the names of some 300 or more leading citizens who expressed by their signa tures, in resolution presented to the mass meeting, absolute confidence in the Citizens National bank and their intention to continue deposits and refrain from withdrawals. The closing of the First National bank according to notice posted on the door of that institution this morning, by "reason of heavy withdrawals during the past several days this bank has suspended business by order of the board of directors for the protection of depositors. This action was taken after full consultation with the comptroller of the currency. These withdrawals. which had totaled some $800,000 since November 20, had been quiet and steady. They were occasioned by rumors following the failure of the Central Bank and Trust Co., and the American National bank in Asheville on that date. Officials of the First National the opinion that depositors will be paid 100 per cent The First National bank had deposits of resources of The Gaston Loan and Trust company had deposited $86,931 resources $135,363.16 capital $20,000. The Peoples Bank of West Gastonia had deposits of $64,042.91 The Bank of Dallas had deposits capital $20,000. Other Banks Close Following list of banks in North Carolina which closed yesterday, in addition to the Gaston banks: Swannanoa (Buncombe county) -The Swannanoa Bank and Trust company: deposits $182,000: capital Franklin (Macon county) Bank of Franklin: deposits $416.800. It was merged last month with the Citizens bank, which had deposits of $125,000 Combined capital surplus and undivided profits of the new institution was 104.500 Fletcher (Henderson county)The Bank of Fletcher: deposits capital surplus and un divided profits $21,500 Clyde (Haywood Bank of Clyde: deposits $105,000 Waco (Cleveland county Peoples Bank of Waco: resources Clayton (Johnston county)-The Clayton Banking company: Aulander (Bertie Bank of Aulander: resources $385.In South Carolina the Bank and resources of $552,843 failed to open.

11. March 5, 1933 The Charlotte News Charlotte, NC
Article from The Charlotte News, March 5, 1933

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State Bankers To Hold Parley Financial Leaders and State Officials Meet Today to Study Situation. from Page house finance and banking committees and leading bankers Hood out that another under yesterday the He could aubank the state to deposits. Meantime telegrams being prepared tonight sent bank state event general holiday declared restriction passed precautionary enough make the holiday Governor Ehringhaus in Washing ton today not Carolina North Carolina one been order holiday official circles here confidence was expressed the banks that over further to protect the North banks Apply Limits North Caro tonight had taken withdrawals The them withstood Towns cities far affected withdrawals Asheville Charlotte Gibsonville Pinehurst Aberdeen Zebulon Wilmington, Tarboro. Scotland Salts bury Rocky Mount New High Point, Burling ton Thomasville Hamlet, Carthage and Black Mountain. Banks To Restrict Monday March banks the National, National and Gaston Loan meeting the Gastonia ing association Monday withdrawals would be five per cent deposits Officials Clearing House association met called All the banks observed holiday Mayor Denny for municipal measure the cautionary passed by the general sembly Wood Will Represent Banks Meeting Word H Wood will meeting Commission Raleigh Mr. Wood obtained yesterday Charlotte Clearing House member banking commission the commissioners No garding the the reached by this Dispatches leigh Gurney Hood state called this permit general cussion the state's banking Other presidents intend to go Raleigh for this