11641. Farmers & Merchants Bank (Bethel, NC)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
January 11, 1927
Location
Bethel, North Carolina (35.807, -77.377)

Metadata

Model
gpt-5-mini
Short Digest
fa8f025a

Response Measures

Full suspension, Books examined

Other: Bank deposits and accounts were transferred to Bethel Banking and Trust Company; liquidation handled by that institution.

Description

Depositors ran in early January 1927, the bank closed (reported Jan 11), and its deposits and affairs were taken over and liquidated by the neighboring Bethel Banking and Trust Company. No reopening of the Farmers & Merchants Bank is indicated; assets/deposits transferred and liquidation began.

Events (3)
1. January 11, 1927 Run
Cause Details
Heavy withdrawals by depositors (a run) in early January 1927 that forced closing
Measures
Bank closed doors; later deposits transferred to Bethel Banking and Trust Company; stockholders met and provided bond to insure takeover
Newspaper Excerpt
The Farmers and Merchants Bank, which closed its doors on January 11, due to run on the bank by depositors
Source
newspapers
2. January 11, 1927 Suspension
Cause Details
Suspension/closure caused by the run and heavy withdrawals; bank ceased operations and preparations for liquidation began
Newspaper Excerpt
closed its doors on January 11, due to run on the bank by depositors
Source
newspapers
3. February 2, 1927 Other
Newspaper Excerpt
START LIQUIDATION OF CLOSED BETHEL BANK ... began liquidating through the Bethel Banking and Trust Company. Depositors having money in the Farmers and Merchants Bank can now check on their accounts at the Bethel Banking and Trust Company. Stockholders ... required to raise $20,000 bond to insure the other bank against loss in taking over and settl[ing] up the affairs of the bank. BETHEL BANK TROUBLE IS ALL SMOOTHED OUT ... accounts had been transferred to the Bethel Banking and Trust Company and that depositors were at liberty to draw their money therefrom. At the time of closing the Farmers and Merchants Bank had on deposit $61,000 ... the only account withdrawn was a deposit of less than $25. This merger which transfers all deposits ... to the Bethel Banking and Trust Company ... makes that bank one of the strongest the smaller banking institutions of the county. (combined reporting).
Source
newspapers

Newspaper Articles (3)
1. January 13, 1927 The News and Observer Raleigh, NC
Article from The News and Observer, January 13, 1927

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Article Text

HEAVY RUN ON BANK CAUSES IT TO CLOSE Thirty Thousand Dollars Drawn Out of Bethel Concern In Few Days Bethel, Jan. Farmers and Merchants Bank of this city closed its doors Tuesday afternoon for the annual meeting did reopen. The closing bank, which sound took the must Officials state that the bank January better shape than year overbalance liabilities, claimed. started bank going under, and immediately began bank, and, according bank checked the last days. thought and hoped that Bethel Trust Company city the Bank. both banks met together night over the matter, the bank examiner, Mr Mitchell. that the depositors lose

2. February 3, 1927 The News and Observer Raleigh, NC
Article from The News and Observer, February 3, 1927

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Article Text

START LIQUIDATION OF CLOSED BETHEL BANK Bethel, Feb. 2.-The Farmers and Merchants Bank, which closed its doors on January 11, due to run on the bank by depositors, Tuesday began liquidating through the Bethel Banking and Trust Company. Depositors having money in the Farmers and Merchants Bank can now check on their accounts at the Bethel Banking and Trust Company. Last week the stockholders of both banks met and ratified the actions of the two boards of directors in the above action. Stockholders of the Farmers and Merchants Bank were required to raise $20,000 bond to insure the other bank against loss in taking over and setling up the affairs of the bank. Officials say that nothing will be lost except probably part of the original stock. V. N. Whitehurst, assistant cashier of the Farmers and Merchants Bank.

3. February 9, 1927 The News and Observer Raleigh, NC
Article from The News and Observer, February 9, 1927

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Article Text

BETHEL BANK TROUBLE IS ALL SMOOTHED OUT Deposits of Failed Concern Taken Over By Neighbor and Depositors Happy Bethel, Feb. -That the people of Pitt county have confidence in their banking has just been here when depositors of the Farmers and Merchants Bank, which suspended operations short time ago, did not rush in for their money when informed last week that all accounts had been transferred to the Bethel Banking and Trust Company and that depositors were at liberty to draw their money therefrom. At the time of closing the Farmers and Merchants Bank had on deposit $61,000, and after the joint meeting of the stockholders of the two institutions announcement made that on or after February the depositors the Farmers and Merchants Bank would be paid off. Much to the surprise all, the only account withdrawn was a deposit of less than $25. This merger which transfers all deposits other like interests to the Bethel Banking and Trust Company, makes that bank one of the strongest the smaller banking institutions of the county. In addition gaining the deposits of the other bank, the trust company realized growth about $20,000 in its deposits during the month of January. Its deposits now are around $300,000.