11110. Bank of Osyka (Osyka, MS)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
October 1, 1930*
Location
Osyka, Mississippi (31.007, -90.472)

Metadata

Model
gpt-5-mini
Short Digest
6366e110

Response Measures

None

Description

A sympathetic run triggered by the closure of Citizens Saving Bank at Magnolia forced the Bank of Osyka to close and the State Banking Department to take charge. Subsequent January 1931 reporting describes liquidation/payments to depositors and dividends paid, indicating the bank did not resume normal operations and was being wound up under state control.

Events (3)
1. October 1, 1930* Receivership
Newspaper Excerpt
Bank Osyka ... had released 23 percent dividend ... bank officials stated that since that date more than had been paid depositors and creditors ... liquidating agent making bank said ... another dividend would be paid next fall, the amount depending on the success of liquidating agent making bank said that although held many foreclosures had been made ... was thought best not to force this time ... paid out by the bank during the week previous to its making total of over $72,000 cash ... paid back public monies and approximately depositors were paid out by the bank during the past months (Jan. 27, 1931 report).
Source
newspapers
2. October 10, 1930 Run
Cause
Local Banks
Cause Details
Run was triggered by the closure of the nearby Citizens Saving Bank at Magnolia (10 miles north), a sympathetic/contagion run.
Measures
None reported other than later state takeover; bank experienced heavy withdrawals throughout the day.
Newspaper Excerpt
A sympathetic movement following the closure of the Citizens Saving Bank at Magnolia ... simply engulfed the bank in an all-day run by depositors.
Source
newspapers
3. October 10, 1930 Suspension
Cause
Government Action
Cause Details
State Banking Department took charge of the bank following the run, effectively suspending normal operations.
Newspaper Excerpt
The State Banking Department has taken over the Bank of Osyka at Osyka ... the run forces it to close its doors.
Source
newspapers

Newspaper Articles (3)
1. October 10, 1930 The Daily World Helena, AR
Article from The Daily World, October 10, 1930

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Article Text

SYMPATHETIC RUN HAS CLOSED MISSISSIPPI BANK Jackson, Miss., Oct. 10.-(AP)The State Banking Department has taken over the Bank of Osyka at Osyka of which Judge J. H. Price of Magnolia, is preseident. J. S. Love, state superintendent of banks in charge of the bank's affairs, said today that "A sympathetic movement following the closure of the Citizens Saving Bank at Magnolia, 10 miles north of Osyka, several days ago, simply engulfed the bank in an all-day run by depositors.' He said he believed the bank's affairs were "in good shape." J. W. Grace of Osyka is cashier of the bank.

2. October 17, 1930 Clarion-Ledger Jackson, MS
Article from Clarion-Ledger, October 17, 1930

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Article Text

Men May Act Like Sheep In The Face of Panic A bank down at Magnolia closes its doors. A run follows on the Bank of Osyka, 10 miles south of Magnolia. The state superintendent of banks thinks the Osyka bank's affairs are in good shape. But the run forces it to close its doors. Depositors will be put to much inconvenience. Some may lose money, through lack of bank service when they need it. The whole town suffers. All because of a needless run. Closing of the Magnolia bank caused the run. Superintendent Love calls it a "sympathetic movement." That may be the technical description. But it really was a sheep-like movement. Panic of this sort spreads as rapidly as panic in the face of fire or other physical danger. Somebody stampedes. Others follow. And men are killed or banks are closed, all needlessly, as the case may be. The trait not complimentary to our intelligence.

3. January 28, 1931 Clarion-Ledger Jackson, MS
Article from Clarion-Ledger, January 28, 1931

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Article Text

NEWS HELPS MCCOMB RECOVERY Illinois Central Tax Pays Bill and Bank Osyka Pays Dividend Jan. items first class news' broke here today the heels of recent closing the city's three banks "because the state of public Illinois Central McComb's largest single taxpayer, paid its tax bill, in ahead the time allowed for payment." The Bank Osyka, south here, that had released 23 percent dividend all turning about $25,000 loose in the Osyka closed October halt and bank officials stated that since that date more than had been paid depositors and creditors. They said the institution had of outstanding paypaid back public monies and approximately depositors. was paid out by the bank during the week previous to its making total of over $72,000 cash leased by the bank the past months, the announcement Officials stated another dividend would paid dedpositors next fall, the amount depening on the success liquidating agent making bank said that although held many foreclosures had been made was thought best not to force this time The the Illinois Central tax bill came handy in view the closed banks here the payday for and employed public works. many Jan. 27 The house agreed today the Leavitt bill thorizing $15,000,000 for park roads in the next years. now goes the president.