Citizens Bank - Clayton, AL

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: April 18, 1904
Location: Clayton, Alabama (31.878, -85.450)

Metadata

Model: gpt-5-mini
Short Digest: 80fa304b

Response Measures

None

Description

Article (Birmingham Age-Herald, pub. 1904-04-20) reports Citizens' Bank of Clayton 'failed to open its doors' after a state bank examiner reported the bank insolvent; a receiver (G. W. Peach) was named. No run or depositor panic is mentioned. Cause of suspension is bank-specific insolvency (bad securities). Dates inferred from article dateline: 'failed to open its doors yesterday' (dateline Apr 19 => suspension Apr 18, 1904) and receiver named reported Apr 19, 1904.

Events (2)

1. April 18, 1904 Suspension

Cause: Bank Specific Adverse Info
Cause Details: State bank examiner reported the bank insolvent due to accumulation of bad securities and large unsecured loans (notes of one person ~ $15,000).
Newspaper Excerpt: The Citizens' Bank of Clayton failed to open its doors yesterday, as a result of a report made to the state authorities by State Bank Examiner Rutledge.
Source: newspapers

2. April 19, 1904 Receivership

Newspaper Excerpt: G. W. Peach has been named as receiver.
Source: newspapers

Newspaper Articles (1)

1. April 20, 1904 The Birmingham Age-Herald Birmingham, AL

Article from The Birmingham Age-Herald, April 20, 1904

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Article Text

CONVICT LABOR IS VERY SCARCE Demand Throughout State Exceeds the Supply CLAYTON BANK IS CLOSED Many Birmingham Attorneys Are in Capital This Week to Attend Supreme Court-Other Montgomery News. Montgomery, April 19.-(Special.)-The Citizens' Bank of Clayton railed to open its doors yesterday, as a result of a report made to the state authorities by State Bank Examiner Rutledge. Because of the restrictions upon the examiner by the statutes. he has declined to make a statement for publication of the affairs of the bank, but it is known that he reported the condition of the bank last Thursday as to its insolvency and the state treasurer immediately made a report to the governor. The bank officials made an effort to cover the bad securities, but failed, and as a result G. W. Peach has been named as receiver. From a Clayton authority it is learned that the capital of the bank was $50,000 and it carried deposits amounting to about $61,000. The liabilities amounted to more than $100,000 while the cash in hand is said to have been less than $2000. Nothing like fraud is suggested in connection with the bank's bad condition, but it is rather attributed to an accumulation of bad securities. It is stated that the bank holds notes of one person to the amount of $15,000 which are practically unsecured. The largest depositors in the bank are the county of Barbour, amounting to about $10,000, and the town of Clayton, amounting to something like $5000. Many of the merchants and farmers are also caught in the failure. The receiver may be able, however, to pay off the depositors practically in full. The officers of the bank are Dr. James J. Winn, president, and J. E. Meadors, cashier.