11607. Bank of Ahoskie (Ahoskie, NC)

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: state
Start Date: December 30, 1931
Location: Ahoskie, North Carolina (36.287, -76.985)

Metadata

Model: gpt-5-mini
Short Digest: 4a66a8b6

Response Measures

Full suspension, Books examined

Description

Local panic and heavy withdrawals following other bank closings (United Bank and regional failures) prompted runs that led the Bank of Ahoskie to suspend on Dec. 30, 1931. State banking officials audited and a liquidating agent was appointed, community plans and RFC funding efforts followed; the bank was authorized to reopen March 23, 1933. Dates drawn from newspaper reports (suspension Dec 30, 1931; liquidation/commission actions Jan 1932; reopening license Mar 23, 1933).

Events (5)

1. December 30, 1931 Run

Cause: Local Banks
Cause Details: Heavy withdrawals and panic sparked by other recent bank closings in the region (United Bank and several local banks); depositors withdrew funds.
Measures: No specific emergency measures by the bank reported in the articles prior to suspension; community efforts later sought to guarantee deposits and exchange collateral.
Newspaper Excerpt: Closing of financial institutions such as The Bank of Ahoskie ... Neither of these banks was broke until the depositors withdrew their money and depleted the cash reserve.
Source: newspapers

2. December 30, 1931 Suspension

Cause: Local Banks
Cause Details: Directors suspended operations after heavy withdrawals and regional bank failures/panic depleted cash reserves; state commission took custody for audit and liquidation planning.
Newspaper Excerpt: The Bank of Ahoskie suspended operations and left the town and community without a banking institution of any kind.
Source: newspapers

3. January 7, 1932 Other

Newspaper Excerpt: E. Frank Andrews ... has been sent here by the commission to serve as liquidating agent for the bank. Paul E. Dukes, former cashier ... is remaining here this week to assist ... in straightening out affairs of the local bank. The State Corporation Commission received the bank from its directors, has filed with the clerk of Superior Court, and has its accountants at work making an audit of the bank. (Jan 7, 1932 articles.)
Source: newspapers

4. March 31, 1932 Other

Newspaper Excerpt: Commissioner Banks Gurney B. Hood says ... applications prepared to the Reconstruction Finance Corporation to secure funds on the assets of all banks ... In the matter of the Bank Ahoskie he will not take steps in that direction until the plan to reopen has been worked; and, successful in reopening, the Banking Commission will seek loan ... (Mar 31, 1932).
Source: newspapers

5. March 23, 1933 Reopening

Newspaper Excerpt: FOUR MORE STATE BANKS ARE GIVEN POWER TO REOPEN ... the Merchants Farmers bank Bank Ahoskie ... were relicensed ... March 23 (1933).
Source: newspapers

Newspaper Articles (11)

1. December 31, 1931 The News and Observer Raleigh, NC

Article from The News and Observer, December 31, 1931

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HAS CONFIDENCE IN STATE BANKS From Page One.) from the Federal Bank Charlotte up Branch in currency. It was followed by truck from the Federal Richmond, $1,000,000 rency. was also lion more on the way from New Burlington and Greensboro the North Carolina Bank and Trust was fortified by from vaults closed United Commissioner Hood dered $25,000 Burlington transferred and $100,000 This transfer of funds by the State Bank ng from has charge for normally routine speeded up The positors United Bank are secured against the North Bank put up for the was last night that who had been ill for more week, left his bed and Tuesday night. to his bed here and from Director Miller the Fifth district of the National Although not soliciting business fact pointing out that two per interest, the Post Office continued swell its Savings business yes terday, and local banks was not other cities where failures. Deposits of the United Bank branches totaled $5,660,120 Paul Garrett New president Travis, The talized with $520,325.75 surplus undivided profits. Staples, executive of the United. was closed for "best interest depositors. At Wilson where the Bank failed open Tuesday, the First National and the Wilson and Savings did not open for busi yesterday. Col. Bruton president of both institutions. The First at the time its last $1, 025,000 those the Wilson Trust and Savings, $860,000. Warren eashier the First National and Barnes the Trust and Savings. The Beaufort Banking and Trust bank Beaufort, did not notice signed by President Taylor and Cashier stating was closed due the the public the inability good pay their was possible that the bank would had deposits the time third quarter $317,057. small institution, the Planters' Bank Stantonsburg, reported deposits of was president. One county failed was the Bank of Ahoskie branch deposits of Hoggard, president. The Winton Trust deposits $295,000 which McGlohon dent, closed later in the day run. Bank of Chatham Siler City deposits $280,000 closed. Jenkins was president. The State of had deposit $11,000 the United Bank and Trust Co., of by of deposit of $6,000 the Reidsville the bank, tected by $25,000 State deposit of $1,000 the Beaufort Banking and Trust Co., protected by bonds and deposit of 000 in the First protected by $10,000 in State There were no State deposits in any other banks which closed yes. terday. Taylor, liquidating agent for the State said the affairs of the United Bank and Trust had placed the hands auditors of the and and Bank Darden, Roberts and assistant Carter and Company of Raleigh was placed charge the and Trust Company and auditor, charge the Chatham. Harry Bundy City placed the Bank Ahoskie the Trust Redford Durham, the Bank Stantonsburg and and Company Raleigh the Beaufort Banking Company. Death List Grows. The death toll stood at four today early the death yesterday Miss Irene Durst, Charleston, W. Va.

2. January 4, 1932 The Robesonian Lumberton, NC

Article from The Robesonian, January 4, 1932

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THERE'S NO SUBSTITUTE FOR HOOD ADVISES BANKERS TO INVOKE 30-DAY CLAUSE Full Confidence In Banks of North Carolina. (AP) P. ficod, state commissioner of banks. advised North Carolina bankers that necessary bank should not hesitate to invoke the clause in the interest of depositors. Hood, ill at his home here, telephoned his brief statement to Ra- THERE'S NO SUBSTITUTE FOR NEWSPAPER ADVERTISING leigh newspapers following receipt of reports that eight banks, with deposits approximating $8,869,000, had closed during the day Inst Wednesday in the state Meanwhile, at Greensboro, John M. Miller, Jr., of Richmond, directer the National Credit corporon for the fifth Federal Reserve district. said the corporation had full confidence in the banks of North Carolina and was prepared to 50 to the full length of its ability to protect them. Hood urged invoking of the 30day clause of the North Carolina banking statute, under which banks can refuse to pay savings accounts on demand. requiring depositors to give 30 days notice that they desire to withdraw their funds, to forestall "hysteria." Chief among Wednesday's bank closings was the United Bank and Trust company of Greensboro, with branches at Burlington, Sanford and Reidsville. W. Staples, executive vice president of the United, said there had been heavy withdrawais recently and loans upon which the bank was unable to realize. Two of the :losed banks were located in Wilson, the First Nationand the Wilson Trust and Savings bank. Other banks losed during the same day follow: Beaufort Eanking and Trust company of Beaufort; Planters bank of Stantonsburg; Bank of Ahoskie, with branch at Powellsville: Bank of Chatham, Siler City; Winton Bank and Trust company, Winton. THERE'S NO SUBSTITUTE NEWSPAPER ADVERTISING Three Jersey calves were purchased by county farmers from the Coastal Plain Branch Station cember.

3. January 7, 1932 The Herald Ahoskie, NC

Article from The Herald, January 7, 1932

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PLANS FOR BANK MRS WILLIAMSON AT AHOSKIE ARE DISCUSSED ON ALL SIDES Mother of Mrs. Chas. W. Was Member of One of CoBUT NOTHING DEFINITE YET lumbia's Leading Families Opinion Undivided That Bank Must Operate In the Town PROBLEM OF WHAT KIND IS UNSOLVED Business Men and Former Bankers Are Getting Their Heads Together In the Hope of Designing Some Way Out By New Bank, or Taking Over Old stitution; Chain Last Resort Is Prevailing Sentiment Ahoskie has been taking stock of itself for a week now, or since The Bank of Ahoskie suspended operations and left the town and community without a banking institution of any kind. In the meantime, the State Corporation Commission received the bank from its directors, has filed with the clerk of Superior Court, and has its accountants at work making an audit of the bank. E. Frank Andrews, former Sanford banker, has been sent here by the commission to serve as liquidating agent for the bank. Mr. Andrews, former cashier of the Sanford branch of the United Bank & Trust Company, native of Eastern Carolina, his home having been at Tarboro until few years The bank ago. of which he cashier in was ford, being branch of Greensboro bank that closed short time carried with the although was in excellent condition and was prepared to take care of all the needs of its depositors. He is Kiwanian, and was active worker in civic affairs Sanford. Although having been in Ahoskie only few days, he has made many contracts with local persons, and is working with them towards safe and sane liquidation of the bank. He will not tively be at work until auditors have completed their work and at Winton. He is also liquidate the Powellsville branch of the Bank of The Winton Banking and Trust ComMinus banking facilities for the first time in many years, Ahoskie persons are at present engaged in the business of seeking way out of the temporary slough. Plans either to reopen the Bank of Ahoskie, subscribe capital for out-and-out new bank; and the final alternative of inviting chain bank to establish here are being discussed in every quarter where business men gather, and out of the discussions and plannings will come some form of banking stitution for the town and munity. Paul E. Dukes, former cashier of the Bank of Ahoskie, is remaining here this week to assist son, whatever way can to formulate plans for providing bank for the town. Numerous plans have been suggested but until none has been formally presented to meeting of the business men of town and and community. During the day Wednesday, concrete ed and small groups called out to discuss them, with the gether and idea of calling general meeting less. for the purpose making cision to steps to be taken as order guarantee bank for town. At Winton, the same being taken. Nothing definite done there, though officers of the bank have been to Raleigh confer with banking departofficials regarding the of the old bank, persome plan whereby facilities may be guaranteed will the county capital. Next

4. January 7, 1932 The Herald Ahoskie, NC

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PAUL DUKES GIVEN JOB OF LIQUIDATING Paul Dukes, former cashier The Bank of Ahoskie, has been tendered the job of liquidating bank in Rockingham, and leave the latter part of this week assume his new duties. Mr. Dukes remained in Ahoskie for few days after accepting the Rockingham position to assist conferences designed to late some plan for operation bank Ahoskie. He has also assisted the audi- in tors and Mr. Andrews, the local liquidating agent, in straightening out affairs the local bank.

5. January 7, 1932 The Herald Ahoskie, NC

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BANKS NOT "BROKE" BY CLOSING RUNS Complete breakdown of confidence is the only reason one can ascribe for depositors' runs on banks and the closing of financial institutions such as The Bank of Ahoskie and The Winton Banking & Trust Company. There is no other reason or cause for such disastrous runs as have occurred these towns, resulting in the paralysis of business and inconvenience to commerce. Neither of these banks was broke until the depositors withdrew their money and depleted the cash reserve. The better judgment of those who are familiar with the inside of the two banks is that neither is now broke; and that gradual liquidation will in the payment of all or nearly all money to those who had on deposit. Judging from our knowledge of the affairs of the two banks and of the men who have directed them. THE HERALD believes that condition is truly representative of both the banks. Loans made by the banks since the of deflation period started have been based conditions, upon prevailing could not and, therefore, have contributed to the values. How much better it would downfall of either. Whathave been if the banks had ever "bad paper" they may been permitted to remain have had was almost wholly that which came to them open and direct its own liquidation of the higher valduring the days of higher values, when loans were pre- ue papers, and by such a dicated upon higher prices course permitting business to go on uninterrupted than now prevail The plain truth of the matter is, that, Closing the doors of a bank if either bank were broke that has been properly manwhen it closed the doors is a tragedy and week, the condition shortsighted policy. It debrought about in former feats the very purpose panin which bank icky depositors attempt to ers not only recognized carry out when they demand er values but when the very their that is, ties money: depositors who withdrew more tightly the money in their and started the banks and prevents the money runs that closed bank doors culation of what currency in the face of be available. It does also leading in inflated ed

6. January 14, 1932 The Herald Ahoskie, NC

Article from The Herald, January 14, 1932

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PEOPLES BANK SUSPENDS AND BUSINESS Withdrawals Cause Directors to Protect Interest of Depositors LEAVES THAT TOWN WITHOUT ANY BANK Was Long Regarded As Strongest Institution in County Murfreesboro, Jan. The Peoples Bank of freesboro, the lone bank of this town, failed to open its doors for business Monday morning, and with its going Hertford County is left with one out of its former total of six banks operating. From Harrellsville comes word: are still doing business and expect to continue" Slow withdrawals that edo about the time the Bank of Colerain suspended busiand which became more menacing when The Bank Ahoskie and The Winton Banking & Trust Company closed last caused the directors of the freesboro bank to post their notice on the front door and suspend business Monday morning. The 30-day time posits was invoked by the bank when the bank panic struck Hertford County on the day of the closing of the Ahoskie and Winton banks. Officers and business men of Murfreesboro headed off possible run on the bank at that time by appeals to depositors, having weathered that impending storm, hopes were entertained that withdrawals would cease and the bank be able to continue on its way unaffected by the distrust and broken confidence that has been manifest in this area for sev. eral weeks. Barnes, president, anticipated some withdrawals and had prepared to meet with more than the usual cash reserve held the bank for the purpose. Learning that amounting to approximately $7,000 were in the mails, funds were made available to take care of the situation; but when it turned out to be some $17,000 that had been checked out by depositors Mr Barnes called his directors togethand the decision was reached suspend business rather than grad ually pay out the cash reserve. Unlike the situation at Ahoskie and Winton, the closing of The Peoples Bank was due to checks issued by depositors at outside points. Little cash had been manded and paid out across the counter. Auditors are now at work making the usual audit required the State Banking Department and, in the meantime, any efforts reopen or to provide banking for Murfreesboro are held in abeyance. The Peoples Bank was organized in 1904 and had been since that time considered one of the strongest. banks and joining counties. At its head was Barnes, known for his perception of banking principles and enjoying the and trust the people of this entire section. He had been president bank since its organization, and for years his bank paid an annual dividend of 20 percent to stockholders and was known and sidered as the leading bank in point of conservative management. That reputation was enjoyed until the hour of its closing and now those familiar with bank's condition have utmost faith and confidence in its ability to turn to depositors all of their money in an. orderly liquidation. Like other strong managed turn could have probably weathered the storm of pante and hysteria the continued loyal support of leading local depositors; but pended business order that all (Continued on Page

7. January 14, 1932 The Herald Ahoskie, NC

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Now Realize That Four Banks Were Bulwarks Sections APPRAISALS MADE FOR TWO OF BANKS Will Attempt to Reduce Loans and Deposits by Interchanging One for Other, Then Guarantee Remaining Deposits; Colerain Most Hopeful, Ahoskie Trying, Winton and Murfreesboro Await Auditors' Reports Quite generally through this section the belief is held that The Bank of Ahoskie. The Winton Banking Trust The Company, Bank of Coleraine, and The People of which have suspended business in recent be reopened and continue business as usual should the decision be reachby stockholders and directors that this is the propstep to be There is none who believes either of the banks were insolvent. and that whatever losses they have suffered have come from the shrinking of estate values which most of their paper is based. But for the working of the public mind, that believed all banks were headed for the rocks, neither of the four would have closed. Bank officers in each tówn, enjoying the highest confidence and in each case representing the best business element and most conservative individuals of the communities involved, could have liquidated the real estate and can do so minimum of loss, it is believed. Whether all of the banks or any of them will reopen is question that rests first with the Banking Department and then with communities involved. Having caused the banks close by withdrawals and placing them in position of having to guarantee every cent of money on deposit at time when the public mind badly warped safety of banks general, the panicky public faces harder task than would have if it had permitted the banks to continue operation work out their own salvation. The cry is "we must have But they have by closing substantial, conservative bankmade it doubly hardigo have the bank they now for. Efforts are already der way in Colerain, Ahoskie and Winton to salvage the closed banks and rebuild-on the old strueture. The plan adopted at Coleand Ahoskie to reduce loans and deposits by like amounts the paper by banks to a point where the remaining deposits may be guaranteed 100 pèrcent. It new plan for bank openings so far as known but when presented to the Banking by delegation of citizens last Friday Raleigh struck him as reasonable and sufficient merit to permit thorough trial. Following sion of business men here last Thursday night at which time was named confer Hood, the local men went to Rhleigh and presented the plan. Appraisers were here. day, Saturday, complete appraisal made of the bank property and all paper held by the bank. Conferences have been here this week to discuss the plan. The report praisal is not known though unofficial information that the paper found good even (Continued Page

8. March 31, 1932 The Herald Ahoskie, NC

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GOVERNMENT FUNDS ARE SOUGHT FOR ALL CLOSED BANKS HERE Commissioner Hood Says in Letter That He Will Apply for Government Money Answering an inquiry from this Commissioner Banks Gurney B. Hood says in letter received here last Thursday that his department is making plication to the Government construction Corporation for loans collateral held by closed banks Ahoskie and throughout this section. His letter reads: are now having applications prepared to the Reconstruction Finance Corporation to secure funds on the assets of all banks are secured, they will be distributed to the creditors and depositors. hope we will be cessful." Assets of banks in Ahoskie and Winton and other nearby towns with closed banking institutions have been listed or are being now by workers from the Commission at Raleigh for the purpose presenting them to the commissioner hopes to borrow proximately 75 percent of the praised value of the securities each case. Should he be able carry through the plan, it will sult in releasing substantial of money to the communities fected. In the matter of the Bank Ahoskie he will not take steps any that direction until the plan reopen has been worked; and, successful in reopening, the Bank. ing Commission will seek loan the balance of the collateral held here after the exchange paper is made for deposits under agreement being signed depositors.

9. March 31, 1932 The Herald Ahoskie, NC

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ONE MORE EFFORT TO BE MADE TO SECURE DEPOSITORS Committee Will Go Out Friday; Only Small Amount Now Needed for Reopening One more final effort will made to secure the required percentage of depositors' signatures an agreement to trade deposits for collateral in the Bank Ahoskie, in the campaign to fect an early reopening of bank. Friday, group of volunteer workers will leave here the morning and spend an tire day on the road seeking was decided upon at ing held in the bank Tuesday night, at which time report was made on the last week's campaign. The goal is within sight and could be easily and quickly were a small minority of depositors to sign the agreement. Less than $25,000 in posits needs to be signed in order carry through the plan. than in deposits has been signed. THE HERALD publishes below appeal by former citizen the county now living in another State. This man was depositor the bank and, having only few days ago heard of the plan reopen the bank, wrote this letter to the newspaper, consenting the time to permit its publication:

10. March 31, 1932 The Herald Ahoskie, NC

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Suffolk, Virginia, March 22, 1932. This plea by one native County, and feels very deep concern for the future of and its immediate surrounding territory, for unity of action for the closest possible cooperation in the drive which began the night of February in positor's mass meeting in school to reopen Bank of Ahoskie. No doubt the people of Ahoskie and this section in general, have been tugging and straining awfully hard "to make ends their only bank suspended business. believe it safe say that every and stockholders in particular, of been extremely anxious reopen, from the fateful its closing, December 30. They surely must know, too, that this most thing to be realized, will be only after all start together and keep on pulling together, without let-up any slackening along the line and laid out by Attorney Windsor, the night on Page 8)

11. March 24, 1933 Asheville Citizen-Times Asheville, NC

Article from Asheville Citizen-Times, March 24, 1933

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FOUR MORE STATE BANKS ARE GIVEN POWER TO REOPEN March 23 Carolina department tonight the of licensing banks reopen for bringing 235 the number banks that re-licensed banks licensed today the Merchants Farmers bank Bank Ahoskie bank and the Bank of ManOne national the First tional Leaksville was relicensed the Federal Reserve bank today cording from the number of national banks There are 321 42 tional banks in North Carolina