11723. Savings Bank & Trust Company (Elizabeth City, NC)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: trust company
Start Date: December 18, 1930
Location: Elizabeth City, North Carolina (36.294, -76.235)

Metadata

Model: gpt-5-mini
Short Digest: 5e3adb8d

Response Measures

Full suspension, Books examined

Other: Liquidation / appointment of liquidating agent reported later; assessments on stockholders to meet liabilities.

Description

Newspapers report heavy withdrawals and a 'run' that led the Savings Bank & Trust Co. to fail to open in mid-December 1930 (reports give Dec. 18–19, 1930). The bank did not reopen and was liquidated (stockholders assessed in Oct 1931). Cause is bank-specific loss of confidence tied to management/investment practices and heavy withdrawals.

Events (4)

1. December 18, 1930 Run

Cause: Bank Specific Adverse Info
Cause Details: Heavy withdrawals driven by loss of confidence in management and the president's outside investments; local panic and mass withdrawals.
Measures: Directors met; offers of capital and bond posting discussed; plans for reorganization and possible depositor agreements were considered.
Newspaper Excerpt: the run on the bank last Friday was ... heavy withdrawals
Source: newspapers

2. December 18, 1930 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank closed after depleted cash reserves from heavy withdrawals and alleged mismanagement by the president; directors/examiners to govern future action rather than an involuntary state seizure reported later in some articles but closure was effectively by the bank's failure to open and directors' actions to address cash shortage.
Newspaper Excerpt: The Savings Bank and Trust Company failed to open its doors for business today.
Source: newspapers

3. January 2, 1931 Other

Newspaper Excerpt: the Savings Bank Trust comlong regarded as the one strongest institutions failed doors December time closure year (local commentary on closure and community effects).
Source: newspapers

4. October 5, 1931 Other

Newspaper Excerpt: HOLDERS OF DEFUNCT BANK STOCK ASSESSED ... stockholders ... called upon to make payment ... to liquidate the liabilities of the bank ... savings deposits $288,557.72; demand deposits $143,417.82 ... A. G. Small, liquidating agent ... total of approximately $78,000 ... has been collected . . . . (news item on assessments and liquidation.)
Source: newspapers

Newspaper Articles (9)

1. December 19, 1930 The Evening Sun Baltimore, MD

Article from The Evening Sun, December 19, 1930

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Business "Planted," Store Buyer STATES Two In N. Carolina, Three In Indiana, One In Y., Illinois, Virginia, Arkansas Elizabeth City, Dec. The Savings Bank and Trust Company failed to open its doors for business today. Future action will be governed the Board Bank Examinwas said. Williams president of the institution. Officials said the bank was solvent and gave frozen assets and gradual withdrawal of funds as the reason for closing. The bank, which is capitalized $100,000. has liabilities of $1,094,225 Loans amount $925,630 and borrowed money amounts to $193,750, State officials said. And One At Lenoir Lenoir. N. C., Dec. 19 First National Bank of Lenoir did not open for business today. The bank capitalized at $50,000 and its officers said it had deposit indebtedness of approximately 000 when it closed. One Closed In N. Y. State Dec. 19 Joseph Broderick, State Superintendent Banks, today announced that he has taken of the State Bank of Canastota result he said appears to be its unsound condition. "On the date of the last quarterly statement submitted by the bank to the banking department, September 1930. the figures reported as folcapital, $60,000: surplus and divided profits, $9,676: gross deposits, said Broderick. Virginia One Fails To Open Alta Vista. Dec. 19 Farmers and Merchants Bank of Alta Vista failed to open for business today. The bank capital stock of 000, surplus of $3,500 and deposits $105,661.52 in its last statement. Frank Hammer president of the stitution. An examiner has been sent here Bristow, Commissioner Insurance and Banking, to take over the bank's affairs. Three Close Indiana Indianapolis, Dec. Indiana banks failed open their doors today. the State Banking Department notified. They The American Trust and Savings $100,000: the Central State Bank of Whiting, capitalized and the State Bank of Brook, capitalized $55,000. The State Department issued statement regarding the closings. The Richmond bank had deposits the Whiting bank the State Bank of Brook, 000. Customers Who Bought Lavishly As Prospective Purchaser By Owner Another In Illinois Newark, Dec. Mount Vernon, III., Dec. 19 said William Schachat, prospec- Jefferson State Bank closed today tive buyer of delicatessen shop, protect depositors. It had deposits David Fishman said he took $741,000. week. Arkansas Bank Shuts Door "All right. Stick around and Little Ark., Dec. 19 next week." replied Fish your eyes The Clark County Bank Gurdon. deposits of closed watched customers spend doors today under the five-day bank grand total of $325. But suspension law. after he bought the store, he the first week's receipts only $100. Nevada Birds Top Market Court testified Reno, Nev., Dec. Chancery Fishman distributed money prices for the holiday market the that his friends to spend his were received by Nevada turkey among make the week' producers this year for the second consecutive season.

2. December 20, 1930 Chattanooga Daily Times Chattanooga, TN

Article from Chattanooga Daily Times, December 20, 1930

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AGREEMENT GOSSIP LIFTS RAIL SHARES Carrier Securities Register Impressive Gains. Eastern Roads Reported Bucking I.C.C.'s Four-TrunkLine Plans. NEW YORK. Dec. 19 (P).-Railroad securities recorded some of the most violent upswings of recent years in the New York Stock Exchange today In the bond division the carrier liens made the sharpest gains witnessed in recent years Advances of $10 to $20 per bond of $1,000 par value were common. and Frisco 412 per cents surged up $50 The Standard Statistics price index of thirty representative bond issues. equally divided between industrials utilities and rails gained 1.2 points. and the index for ten rails alone surged up 1.7 points These are the widest advances for a single day since this index has been compiled on a daily basis. starting at the beginning of 1928 In stocks, the rail issues made the most pronounced recovery since the violent rebound from the bottom level reached in November 1929. The average of twenty issues showed a gain of approximately $3.50 The vigorous upturn in rail securities is regarded in Wall Street as representing technical reaction from an oversold and an over -deflated condition of these issues Both rail stocks and bonds had been depressed to an average level which was the lowest in about five years The upturn greatly enlivened brokerage house gossip over the in the railroad consolidation plans Eastern railway heads are expected to meet in New York again early next week and one report that a four-trunk line system had been virtually agreed upon was widely circulated. This would be in conflict with the interstate commerce commission -trunk line plan. Upon this rumored agreement the Pennsylvania would sell the Lehigh to the Chesapeake & Ohio The Baltimore & Ohio would get the Reading and the New York Central would get the Lackawanna The Pennsylvania would seek to retain the Wabash. No official was available It seemed like old times to veteran traders to see the rail stocks once more in the spotlight for these issues which had dominated the stock market for generations, took a back seat in the great bull market of 1924 29 and were quite overshadowed by industrials and utilities Norfolk & Western rose $9.75 getting up to $200, compared to recent low of $181.50 Union Pacific sold up $6.50 to $179.50 having recently touched $166 50. Baltimore & Ohio rose $5.12 to $72 after touching $55.37 earlier in the week New York Central rose $4 62 to $119 a gain of $13 over its minimum level of the week ATLANTA BANKS TO PAY $1,200,000 IN INTEREST ATLANTA, Dec 19 (AP) -Banks here will distribute approximately $1,200,000 on New Year's day as reward to persons who saved their money A total of $700.000 of the amount will be paid as interest on savings deposits while $500,000 will be distributed in dividends Bank officials who compiled the figures said interest is computed semiannually on savings accounts at 3½ per cent. BIRMINGHAM INVESTORS TO RECEIVE $3,000,000 BIRMINGHAM Dec 19 (AP) The Age-Herald today said stockholders in financial institutions industrial and soon. utilities corporations here will receive more than $3,000,000 in dividends and interest disbursements on Jan. Figures given by the paper, it was stated, were compiled from reports of major industries and institutions located here or which have places of business in Birmingham Corporations listed include iron and steel. utility. insurance. real estate building and loan. banking, dry goods and other companies. Bank Suspensions. RALEIGH. N C., Dec. 19 Four North Carolina banks closed today The largest was the Savings Bank and Trust company, of Elizabeth City which was capitalized at $100,000 and had deposits of $805,049 according to its bank call statement of Sept. 24 The others were the First National Bank of Lenoir, capital deposits, $534,035 the Carolina State bank. of Gibson, capital $20,000. deposits. $41 162 and the Merchants and Farmers bank. of Garysbury, capital, $15,000. deposits, $27,869. ALTA VISTA Va. Dec 19 (AP) The Farmers and bank of Alta Vista, failed to open for business today The bank had capital stock of $25.000. surplus of $3,500 and deposits of $105 661 52 in its last statement An examiner has been sent here by M E. Bristow. commission of Insurance and banking, to take over the bank's affairs LITTLE ROCK, Ark. Dec. 19 (AP) The Clark county bank at Gordon notified the state banking department it had suspended today for five days On Sept 24. the date of the last bank call. the bank listed surplus and capital $33,000 and deposits. 332 The Citizens bank at Foreman also suspended for five days to permit reorganization It recently was merged with the and Planters bank and retained the capital stock of both. INDIANAPOLIS. Dec 19 (AP) Three Indiana banks failed to open their doors

3. December 22, 1930 Statesville Record and Landmark Statesville, NC

Article from Statesville Record and Landmark, December 22, 1930

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Heavy Run Closes One Lenoir Bank Lenoir Dec. First National Bank, Lenoir, did not for business today. statement signed by the diand action said to heavy withdrawals and "lack of by due of ther North Carolina." The capitalized 875,000 with surplus $75,000 and undivided profits On tember 24, date of the last call, listed deposits of Officers the deposits the close were $376,540.76. Elizabeth City Bank Fails to Open ings Bank and Trust Company failed to open for business today. Clover Bank Taking Steps to Reopen Clover, Dec. the closed bank of Clover met today and expressed their financial soundness and pledgtheir efforts to bring reopening. The action followed general mass meeting of zens consider the town's financial situation. Four Banks Close Raleigh, North Carolina banks closed today. In addition the Savings Bank Trust of Elizabeth Company, and the First Bank the State Bank and the Merchants and Farmers Garysburg, closed. The Elizabeth capitalizand with deposits of was the largest.

4. December 26, 1930 The Independent Elizabeth City, NC

Article from The Independent, December 26, 1930

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WHO WRECKED THE BANK? ET this fact stand out above all the excitement of the past week: P. H. Williams. the so called "great financialNwizard". was responsible for the wreck of the Bank & Trust Co. Mr. Williams is not so smart he lacks that fundamental quality that makes for good citizenship. community interest. Mr. Williams has not built for Elizabeeth City: he has built for self. Selfishly he invested his own money in the stocks and bonds of outside corporations. He advised and encouraged others in the community to do likewise. And it was this money that might have remained in Eilzabeth City to work for the upbuilding of Elizabeth City that was withdrawn from the vaults the Savings Bank & Trust Co., leaving it moneyless. Mr. Williams is not so smart. By his own example and advice he accomplished the undoing of the financial institution which he headed. Short-sighted Mr. Williams! These rich men who invest their money in stocks and bonds are as undesirable citizens as the miser who hoards his money in an old sock. Mr. harles Blades. a Mr. Pat Villiams and any one of a number of other so called big men of this town are not worth half as much to the Lown as the laboring man who puts his savings into a good sound bank where they pay him a fair rate of interest while working for the community in which he lives and upon the prosperity of which he depends for employment. P. H. Williams has been an evil and vicious influence in the community. Let that statement sink home. Mr. illiams instead of building up his bank and building up the community's resources. has been one of the most powerful influences at work to drain the community of needed cash. And he ceeded in wrecking his own bank. He wasn't SO long-headed after all. If all the money in this community were invested in foreign stocks and bonds. Elizabeth City and the Albemarle would be utterly bankrupt. It is the money that is kept at home that is the money in local circulation and that builds homes industries. It is fortunate for Elizabeth City that the strength of its oldest and largest bank was subjected to a gruelling test in last Friday's panic. The First & itizens National Bank has long enjoyed the contidence its home people that confidence has been immeasurably strengthened by what happened here last people never put their money in banks before are bringing their savings to the bank that has proved its strength. Money in a good bank is better than money in a bond: it isn't easy to a bond when you need the money and it often happens that the bond for which you pay $100 may turn out to be worth much less than that when you try to dispose of it. lot of folks in our town are holding to-day for which they would be glad to get $75. In these terrible times the community ithout a considerable cash reserve is inviting bankruptcy. Keep your money in your home bank and encourage your friends and neighbours to likewise.

5. December 26, 1930 The Independent Elizabeth City, NC

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WEAKNESS OF SAVING BANK AND TRUST CO. (Continued from Page Two head and said. "No. no: don't want to draw it out-I just wanted to Was Worse in 1893 Col. W. T. Old. of the Seaboard National Bank of Norfolk, who was bank for many years cashier of the First National Bank of this city. the run on the bank last Friday was W. J. board of country. There was no run the First he must in the bank bank blood the Citizens) and myself in those days. the knew how we having to close our doors Withdrew $40,000 family town Friday the savings of amounting to out on the about back and of the bank he knew that a call to a bank directors meeting at that hour could but one thing: "It made me sick at my stomach," said the Mayor: "I felt like vomiting.' His worst fears were confirmed when President Pat Williams faced the directors with bowed head and said: It embarrasses me to tell you that we not open the doors of this to-morrow W. j. Weodley Stood Firm Here is tale of a man with guts. of the largWoodley was one of groceries and purchaser always a checking acbalance for his checking who knew He left his money in imminent. didn't even tell his He family and Mrs. Woodley was caught her savings of years in the In appraising the character write this Where the Poor Lost Second Ward Democratic had $150.00 to its credit Club Bank & Trust Co. voted earlier in the had poor the treasurer didn't the Club's bank acenough. Says Secre"We weren't lookbank to bust right Confidence a man wearing an old felt that has seen elbowed his way First & Citizens National while the run was at pushed his way into the and said: "I have dollars in Governyou need them for more money they are That man was owner of Fowler Jennings, humble clothes and with stuck at a rakish rushed into the and said: in Liberty Bonds; this bank needs 'em my safe deposit Doctor Sick C County lives the of the richest they are their money was Bank when it bustH. Cowell went to bed him sick. It made him because his own and money was in the Cowell is a proud man, he and confidence of Dr. Cowell had inof his friends and to put their money in Bank

6. January 2, 1931 The Independent Elizabeth City, NC

Article from The Independent, January 2, 1931

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YEAR HERE; BETTER BE NO MAY In 1930 Or Will Boast of Progress One No In Unprecedented Any Here Situation and civic the Year their and to bigger and better Elizabeth City material in 1930, in the donated and property condition that other This county only Wright connecting County country Dare City than Hospital opento the State enabled them to drive to from Manteo two little The homes the and in the fire North Poindexter and new filling all the building activity in River the in August and the work foundation completed. bridge cost probably will be next summer the principal The Virginia Beach Lines purchased franchise the April New into effect once and of busses operation between Norfolk via the line busy and from the class Norfolk o'clock the Northbound mail from bus arriving here afternoon This mail service December Elizabeth City an organization near future enrich the farmers the Albesection Association. stabilization supply counties promising and attractive breeders the birds. the Elizabeth City Chamber with the support More Game Birds in America Foundation brief summary the outstanding projects of Elizabeth City. summary of events not pleasing Elizabeth Virginia Dare was sold second mortgage for less half that amount composed of old directors stockholders. Elizabeth City Country Club in August, only to disrupted again. were three disastrous in the business district city during Grice fire, the Cohoon and Bee the Busy Cafe building formerly by Cohoon comtotally destroyed by fire been The Savings Bank Trust comlong regarded as the one strongest institutions failed doors December time closure year

7. January 2, 1931 The Independent Elizabeth City, NC

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Dr. Cowell Enters A Mild Disclaimer W. Cowell of Shawboro Dr. National Bank this city Citizens exception to statement takes Dec. 1930 shows deposits last week to the in this newspaper of against deposits effect that the closing of the Savings September Co. him in bed Bank Trust put crease $177,375.87 indisposition about had slight The statement shows cash same Cowell. "but that time. Dr. which there is hand against the bank had nothing the closing of borrowed amountoffset is. none of to do with The fact to which had money on demy family any than cash hand Dec more the bank. had never posit before excitement occasion12th friends to put their vised any of my the collapse the Savings by Savings Bank and money in the Bank Trust Co. modest checking accarried only things are obvious from Several of own in the count my the First Citizens statement would corwish The Independent in this to-day: published mis-statement of facts." rect the the local public confidence makes the corThe Independent the bank's in the big bank; Cowell rection gladly. for its depositcitizen and has been widely known third. and highly of much kidding upon the subject there lot of money the fact that of his friends account the part spite of the left in this section in reference made to the humorous Northeastern universal the bank in this newshim in story Carolina is not stone North last week. paper that the First will have two The next Senate no telling how blind members dumb

8. January 2, 1931 The Independent Elizabeth City, NC

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Growing Suspicion That The Closing of the Bank May Have Been in Somebody's Plans Unknown to the Board of Directors That the Savings Bank Trust Co., which closed its doors in this city on Thursday, Dec. 18th, will reopen for business within few weeks the confident opinion of members of the Board of Directors are really doing something about and will not rely on leadership H. Williams, president of the bank, whose leadership failed them in the recent crisis. Raised Hell, Claimed Mind Was A Blank "Send all the policemen to Oscar Owens' home Burgess Street at female voice telephone police headqua ters about Tuesday morning. Police Officers Lane and Basnight jumped into the police car, sped to the Owens home. found drunk, on the premises. Mr. and Mrs Owens Monday and their small party was home in bed. Negro left with sitting in downstairs Between half past Young Gilbert the house Mr and Mrs Owens were The nurse told him that and told him where they were away might find them Then the he seemed to lose his head, young he flew into rage, the for about the throat attempted nurse choke her. She were heard by Mrs. Mathias Owens, Oscar's mother, who door. Mrs Owens, almost lives next of her wits, called frightened out the police. Meanwhile, the nurse had repuised Gilbert's attack and he had young out the front door. The police reeled found him hiding in the shrubbery front yard. He subthe them and allowed them to mitted him to police headquarters take without But. inany police headquarters, he again filled with the devil He became swift kick the stomach planted Lane kicked Officer BasOfficer in an unguarded plantnight stomach of Ab another Williams. who happened to drop inheadquarters for chat with some Whereupon he the night handcuffed and thrown in was chair with such force that the imof his body broke leg of pact chair. his father came Shortly him home. put him for him, under cold shower and had him Next sician give sobered up apologized day stated that his mind been blank after ten o'clock had and that had not Monday night been for his actions Owens accepted the Mr. to swear warrant declined Police. beagainst young unwise to such an inlieving it notice and hoping to cident escape man arteach the young rested him yesterday charge disorderly The being drunk was to be tried this morning. case And in the proposed reorganization Mr. Williams will climinated In fact the suspicion that there was method in Mr. Williams laxness letting the doors of the bank be closed. One of the rectors the Savings Bank said this week that the closing of the bank looked suspiciously like political Back in slavery days he might have said that some one planned to "sell the bank down the The more one studies every state. ment of the bank's financial condition the more one astounded the failure of President Williams to keep the bank open. But every move that Mr Williams has made seems to have been hurtful the bank. And this week Mr. is saying that he is planning to open the bank either by arrangement with some branch banking company with local capital. Local capital will not readily rally to the of Mr Williams any more and of his directors are suspicious his branch banking The inside story of the closing of the Savings Bank is slowly leaking out. All except few of the directors close Mr. Williams kept in the dark until late hour night the bank closed. Mr. Williams had done nothing while the cash reserves of the bank dwindled to dangerous minimum. The directors could easily have arranged for loan of to build up the bank's cash on hand. Mr. Williams made no move until too late Miles Clark manager of the City branch of the Texas Co., and owning 15 or shares of the bank's stock, offered to become responsible for much $25,080 if necessary to keep the bank open. A number of the directors were ready to go the limit with said The posting of bond $100,000 would have saved the bank. But it was Mr. Williams opinion that $50,000 would be sufficient and then Mr. Williams shook the confidence out of outsiders who might have helped by indicating that the directors would make no guarantee at all. One reminded of how Wi!liams once jockeyed the majority stockholders of the Elizabeth City Hosiery Mills of their stock time when he, on the inside, knew that the hosiery mill was earning fifty per cent dividend while stockholders persuaded to rifice their stock because they thought the mill was losing money No one makes but Mr. Williams had succeeded getting control of the physical sets of the Savings Bank Trust Co. for about 25 cents on the dollar. no one would be surprised. But this newspaper is reliably informed that the best minds the Board of Directors of the Savings Bank cut loose from Mr. Williams and will attend to the ganization of the bank themselves. The audit of the bank is going rapidly this week and will on within few days. No completed will be taken to liquidate the steps bank the outcome of very pending definite for reorganizing and plans reopening the bank early the bank will be To reopen for per cent of the sary positors to sign an agreement their accounts in the maintain ings Bank for period of 12 or months and will be necessary for the new board directors to vide certain funds for the bank. It is admitted on every hand that Elizabeth City can lose one of banks; the Savings Trust Co. filled Bank place of its own in banking fairs of this city and section without its facilities the city section would be badly Hundreds of depositors of the ed bank are eager to back their full support reorganization appears in which they may place their confidence.

9. October 5, 1931 The News and Observer Raleigh, NC

Article from The News and Observer, October 5, 1931

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HOLDERS OF DEFUNCT BANK STOCK ASSESSED Elizabeth City, Oct. Stockholders of the closed Savings Bank and Trust Company received sad news when they opened their mail Saturday morning and found notices of assessment amounting to the par value of their holdings, in all $100,000. The stockholders are called upon to make payment prior to November 1, at which time judgment will be docketed against the delinquents. Forty-eight shares is the largest single holding of the bank's stock, earrying with it a liability of $4,800. The assessments under the stockholders' liability will be used to liquidate the liabilities of the bank, which amount to made up as follows: Savings deposits, $288,557.72; demand deposits, $143,417.82; certificates of deposit, $8,489.90; Christmas savings, $733.20; Christmas savings checks outstand ing, $733.20; common claims, $425.18; dividend checks outstanding, $123; cashier's checks, $27.41, and expense vouchers outstanding, $18.21. According to A. G. Small, liquidating agent for both the Savings Bank and Trust Company, and the Carolina Bank and Trust Company, a total of approximately $78,000 of the $125,000 liability of the stockholders of the last named institution has been collected. Judgments are on file against the delinquents, many of them uncollectable, and it is probable that between $90,000 and $100,000 of the liability will eventually be collected.