Citizens National Bank

Bank Information

Episode Type: Run Only
Bank Type: national
Bank ID: 7698
Charter Number: 7698
Start Date: January 1, 1907*
Location: Durham, North Carolina (35.994, -78.899)

Metadata

Model: gpt-5-mini
Short Digest: 6d0943ce

Response Measures

Accommodated withdrawals

Description

The 1932 newspaper article recounts the 1907 panic when local banks (including Citizens National Bank) limited withdrawals and issued script to stave off heavy runs. The event described is historical (1907) and there is no mention of suspension or closure of this bank, only issuance and later redemption of certificates, so classify as run_only (systemic 1907 panic). Date is approximate (1907).

Events (2)

1. April 19, 1905 Chartered

Source: historical_nic

2. January 1, 1907* Run

Cause: Macro News
Cause Details: Part of the national Panic of 1907 — systemic banking panic that produced heavy withdrawals locally, prompting limits and issuance of script.
Measures: Limited withdrawals per depositor per day; issued script/certificates as scrip to pay employees and accept as payment until panic subsided; later redeemed certificates.
Newspaper Excerpt: To prevent any heavy runs the bankers decided limit the withdrawal of funds from the banks per depositor per day. The withdrawals increased and then the plan to issue script was [adopted].
Source: newspapers

Newspaper Articles (1)

1. March 11, 1932 The Durham Sun Durham, NC

Article from The Durham Sun, March 11, 1932

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Article Text

FIRST NATIONAL Memories of Real Panic STATEMENT TO Recalled by Certificate MADE PUBLIC Liquidating Agent Says Comprehensive Statement Will Be Ready in Few Days Statements of customers of the First National bank will be ready for distribution within week or 10 days, H. Dixon. liquidating agent of the institution, said this morning. A comprehensive showing the present assets and liabilities the institution also will be made public within two three days, the liquidating agent said. This will not attempt to go into detail concerning the bank's but merely set forth round numbers assets of the institution, such as bills receivable, cash hand, and other items and Its lia such bills counts and other By comparing this statement with the statement the bank at the time of its closing shortly before. the amounts charged off of the books by federal investigation after an examination of the bank's paper can readily be ascertained. he explained Dixon stated emphatically that Mr. the audit report the bank's affairs will not be available for public inspection. will be filed in due time comptroller of currency and insofar as the public concerned will private he Special Certificate Issued by Citizens Bank in 1907 and Used as "Script" or Money, Appears After 25 Years Memories of the panic of 1907, in which banks resorted to the issuance of script stave off destruction the financial structure of the nation, revived here this week with the presentation of a certificate deposit, issued by the Citizens National Bank. After hiding away quarter of century made its appearance Richard Holman, Durham, presented for redemption by the bank. He received the face value of the certifiwhich was one dollar The depression through which Durham. the nation and the world is now emerging has been mild in proportion to that panic some of the older residents of the city said today in caused by the appearance of the piece While the causes of that period of depression which about the ance of script for circulation in lieu of money not clearly remempeople clined to the belief that the situation was not different from that now being passed One day this week Mr. Holman presented the to Eugene Umstead cashier of the Citizens bank for redemption. He celved the dollar represented by without interest and the interesting piece of script is being held by Mr. Umstead as relic of the past banking meeting the which bade fair to bring ruin to local financial institutions of Durham held conference for the consideration ways and means of the day for the banks, to James Mason. former banker and cashier the Citizens bank the time the script was issued To prevent any heavy runs the bankers decided limit the withdrawal of funds from the banks per depositor per day. The withdrawals increased and then the plan to issue script was While admitting that the issuance of script possibly Mr. Mason the plan credit for stabilizing the bad situation and bringing salvation the people. Each bank issued script, amounting in Mr. Mason's estimate to approximately His bank issued close $300,000 the The banks placed the United States money in as rapidly as was deposited but no money was paid out. The paid their employees in script and the agreed accept It in payment of produce destred by their Farmers received these certificates for their tobacco sold Everybody accepted the with the result that when the panicky subsided the banks the real money to circulation and redeemed the script Not only did Durham adopt the script saving the people from financial ruin during the bad panic, but the practice became general throughout the south According Mr. Mason. who was cashier the Citizens bank in 1907 only other certificates issued by that bank have not been He holds one them. of those sued were signed by efther vice Mr. Mason as cashier the of bank. They were issued for redemption 60 after date of issuance at the rate four percent annum per The bank reserved the right in and pay off the certificates at any time after maturity by giving 10 days public notice and after that date interest ceased. Whether any of the certificates issued by the remainder of the local banks doing business in 1907 not known. But few of the present population of this city remembered the period and the bad situation acwhich caused the banks to resort to this drastle action save themselves and protect The older citizens remember well.