11710. Merchants Bank (Durham, NC)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 4, 1932
Location
Durham, North Carolina (35.994, -78.899)

Metadata

Model
gpt-5-mini
Short Digest
fa573a21

Response Measures

None

Description

Merchants Bank of Durham failed to open Jan 4, 1932; the board ordered the closing and the state bank examiner was notified and took over for liquidation. A receiver was appointed and the bank remained in receivership (sought RFC loan Oct 1932); later receiver actions in 1933 indicate permanent closure. Cause of suspension not described as rumor — closure ordered by directors and liquidation followed.

Events (5)
1. January 4, 1932 Receivership
Newspaper Excerpt
Suspension ... Gur- ney P. Hood, state ... has been notified of the closing and will take over the bank's affairs for liquidation
Source
newspapers
2. January 4, 1932 Suspension
Cause Details
Board of directors ordered the bank not to open; state bank examiner notified and will take over affairs for liquidation.
Newspaper Excerpt
MERCHANTS BANK CLOSES Suspension of Small Bank Without Effect on Other Durham Institutions The Merchants Bank of Durham, with branch at Creedmoor, failed to open its doors this morning ... The closing was ordered by the board of directors.
Source
newspapers
3. October 25, 1932 Other
Newspaper Excerpt
Merchants Bank Receivers May Now Borrow $150,000 From R. F. C. The petition of the receiver of the Merchants Bank of Durham ... asking for loan ... has been approved
Source
newspapers
4. November 28, 1932 Other
Newspaper Excerpt
the Merchants Bank (receiver) of Durham, $150,000; ... None of the money allotted to the Merchants Bank ... has been sent to them yet.
Source
newspapers
5. August 29, 1933 Other
Newspaper Excerpt
BANK RECEIVER AUTHORIZED Devin Signs Order in Case of Merchants Bank ... order signed by Resident Judge Devin sustaining petition allowing receiver of the Merchants Bank of Durham ... sale ...
Source
newspapers

Newspaper Articles (6)
1. January 4, 1932 Goldsboro News-Argus Goldsboro, NC
Article from Goldsboro News-Argus, January 4, 1932

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Article Text

Close helped them break into the red and locked home. convene Raleigh, Saturday, attend the Fifteenth Annual Meeting of the North Carolina Society Engineers to be held the Sir Walter Subjects statewide interest and importance will be taken up. drive secure typographical vey of the state to supplement the control survey which now way will be initiated: plans for the formulation of new building code for North Carolina will be discussed and the report of the comthat subject will be heard Officers the Society are Geo. Syme of Raleigh president: Becton of Wilmington ident: and Summie Whitener, State College, secretary and treasurer. Miss Nebrasta Williams, James Hatch, Miss Eveline and little Jessie Edward Darden Mrs. Ella Bunn who has been duty out of town for the weeks home again Prof. LeRoy Borden, Prof. A Check, Prof Brick Junior Mrs. Brimmery and Miss Norfleet Hertford were visitors Mrs. Martha Borden of School street. BANK IS CLOSED Raleigh. Jan. Merchants Bank of Durham with branch at Creedmore did not open for business today. Gurney Hood state bank examiner, was notified. The bank listed deposits of in its statement of September 29, last. It was capitalized reported surplus undivided profits of and resources of $1,935,000.

2. January 4, 1932 The Durham Sun Durham, NC
Article from The Durham Sun, January 4, 1932

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Article Text

MERCHANTS BANK CLOSES Suspension of Small Bank Without Effect on Other Durham Institutions The Merchants Bank of Durham, with branch at Creedmoor. failed to open its doors this morning Gur- his ney P. Hood, state is has been notified of the closing and will take over the bank's affairs for liquidation The notice on the door stated merely that the closing was ordered by the board of directors. The closing will in no way affect the other banking institutions in the city, to the city's financial leaders.\ The Bank had no connections with the other banks, was said In its statement of September 29 1931. the bank listed deposits at $1.vided profits and total resources of Since that is understood, have been steady The Merchants Bank is one of the city's smaller banking institutions Business in the other banks this morning normal although the lobbies There were some withdrawals but the usual Monday morning deposits The banks observed Friday and her urday New Year's holiday. and for this reason today's business was cers W. P. Clements is president of the Merchants Bank and H. G. Hedrick Other said is officers D. C. Barbee, cashier and C. B. Ma. son. assistant cashier and C. Bar. bee, teller.

3. February 17, 1932 The Herald-Sun Durham, NC
Article from The Herald-Sun, February 17, 1932

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Article Text

City Ready To Dispose Of $65,000 Depository Bonds Will Amply Cover $48,000 Which Remains On Deposit In First Receiver May Get Equity Of $12,000 Carolina which were state deposits the posted cover city First National bank and the Merway and chants bank are now the will completed sale probably this learned yesterday week, was Ample Security The deposits $133,000 National bank amply the First in United States covered. $100,000 and in treasury certificates posted as security state bonds sold last week The certificates only to for $85,000 leaving be covered the Equity For Receiver While the market enough will of deposit with an remainder the for the receiver of equity remaining estimated that the the bank It be sold for $58,000 to bonds will $60,000, leaving an equity approxi$10,000 $12,000 for the mately bank May File Claim Deposits in the Merchants bank totalled and by only $28,000 state This that the city will realize full of its from sale of the In event It will be to file claim with the liquidating agent of the bank for the remainder of the

4. October 25, 1932 The Durham Sun Durham, NC
Article from The Durham Sun, October 25, 1932

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Article Text

LOAN PETITION GETS APPROVAL Merchants Bank Receivers May Now Borrow $150,000 From R. F. C. The petition of the receiver of the Merchants Bank of Durham asking of the to notes and of the bank as for loan from the has been ap proved The petition is as major step toward will the payment of 20 percent to of the The already has been approved finance corporation

5. November 29, 1932 The News and Observer Raleigh, NC
Article from The News and Observer, November 29, 1932

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Article Text

R. F. C. OCTOBER LOANS TO N. C. INSTITUTIONS H. E. C. BRYANT. Washington, Nov. 28.-The Reconstruction Finance Corporation today reported these loans for North Carolina during October: First National Bank of Gastonia, $50,000 and Gaston Loan and Trust Company, Gastonia, $1,844; the Merchants Bank (receiver) of Durham, $150,000; the Bank of Mount Gilead, $10,000; the North Carolina Mutual Life Insurance Company, Durham, $39,000; the Southern Fidelity Surety Company, Durham, $5,000; the Madison Building & Loan Association, Madison, $7,500; Oxford Building & Loan Loan Association, Oxford, $6,000; Progressive Building Loan Association, Wilmington, $24,640. None of the money allotted to the Merchants Bank and the Southern Fidelity and Surety Company has been sent to them yet.

6. August 29, 1933 The Durham Sun Durham, NC
Article from The Durham Sun, August 29, 1933

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Article Text

BANK RECEIVER AUTHORIZED Devin Signs Order in Case of Merchants Bank and A. Holder order signed by Resident Judge Devin sustaining pesition allow receiver of the Merchants of Durham portion the given by who was the in the sum of was filed The was made in favor of ten that had offered for one the lots located Markham The described as being The petition advised the bank would lose nothing the sale since taxes were due the four years, along with street assessment, all $125 paid W. Powell for negotiating the sale. The for the erty be placed the bank the order states