Lafayette Bank & Trust Company

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: trust company
Start Date: January 11, 1930
Location: Fayetteville, North Carolina (35.053, -78.878)

Metadata

Model: gpt-5-mini
Short Digest: aafca032

Response Measures

Full suspension, Books examined

Other: Directors placed bank in hands of North Carolina Corporation Commission; petition later to reorganize and reopen.

Description

Multiple articles report heavy withdrawals by Fort Bragg depositors starting January 11, 1930, leading the Lafayette Bank & Trust to fail to open and be placed in the hands of the North Carolina Corporation Commission. A March 8, 1930 court action denied a petition to turn assets over for reorganization, indicating the bank remained closed and efforts to reopen had not succeeded.

Events (3)

1. January 11, 1930 Run

Cause: Rumor Or Misinformation
Cause Details: Irresponsible rumors among Fort Bragg depositors; reports that the military post had received orders from Washington to withdraw official deposits (Major K. S. Perkins denied any such order).
Measures: Directors posted notice and asked state officials to take charge; bank placed in hands of North Carolina Corporation Commission to protect depositors.
Newspaper Excerpt: The unexpected run on the bank occurred between ... Saturday afternoon. It was confined entirely ... to men from Fort Bragg. Apparently started from irresponsible rumors which cannot be traced to their origin.
Source: newspapers

2. January 13, 1930 Suspension

Cause: Government Action
Cause Details: Following the run and to protect depositors, the board asked state officials to take charge; state bank examiner posted notice that the bank was in the hands of the NC Corporation Commission.
Newspaper Excerpt: the Lafayette Bank and Trust Company ... failed to open its doors Monday at the beginning of banking hours. This action was to protect other depositors ... and posted on the doors along with notice by D. M. Darden, state bank examiner, to the effect that the bank now in the hands of the North Carolina Corporation Commission.
Source: newspapers

3. March 8, 1930 Other

Newspaper Excerpt: Judge N. A. Sinclair today denied petition of the North Corporation Commission to turn over the assets of the Lafayette Bank and Trust Company to the group of businessmen and depositors who have re-organize and re-open the bank which was closed two ago.
Source: newspapers

Newspaper Articles (6)

1. January 14, 1930 The News and Observer Raleigh, NC

Article from The News and Observer, January 14, 1930

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Article Text

Run Saturday On Fayetteville Institution Causes Decision Not To Reopen Fayetteville, Jan. heavy by Fort Bragg the Lafayette Bank Trust failed open doors morning. action taken protect depositors, statement signed President directors the institution and posted the doors the building along notice Darden, examiner, the effect that the the hands of the North Carolina Corporation The unexpected run the bank between and Saturday afternoon. fined entirely be officers and from Fort Bragg. Apparently started from irresponsible rumors which cannot traced One reports officers the received orders from Washington withdraw deposit from the Lafayette received. ing Major Perkins, Post jutant. Paid In Full All depositors asked for their money paid in unfounded rumors spreading hourly, the directors the bank that opening of the doors this morning would the signal further and they placed the bank the hands the state order that depositors and credireceive fair and just treatThe statement of the directors lows: Saturday afternoon. January and certain depositors of this bank had the least for started usual their deposits. Although full usual closing hour, their started unfair rumors which cause more serious arise the bank for business again, resultdepositors obtaining others. order all creditors may receive and just treatment board directors this bank voted the proper officials charge the bank and the provided signed by George M. Bethune Strong New York Connections. The Lafayette tions New York which would have funds the there arrange this assistance. said today. Persons banks affairs that the offi directors all that Tolar by bank and his the John eleven years ago and which had shown The for the first which pub. lished exhibited signs The capital surplus and undivided profits with total resources $603.- Half Millions In Deposits The little aggregated half cluding Loans and $429,924 and from banks, $62,000. that all official funds Fort Brage deposit bonds was said tonight that directors are efforts to reopening of that satisfactory arrangement this end can announced today that the Caledonian Savings Trust pany business tomorrow morning bank. The was founded two ago savings bank. The Frank Caledon the National Bank.

2. January 14, 1930 News and Record Greensboro, NC

Article from News and Record, January 14, 1930

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Article Text

FAYETTEVILLE BANK Make Fort Bragg Depositors Run On Lafayette Bank And Trust Company. IS SOUND CONDITION (Special Daily News) Fayetteville, Jan. to heavy withdrawals by Fort Bragg Bank Trust the Lafayette company, state bank this city failed open doors this morning the beginning of banking hours This action was to protect other depositors, according statement President John Tolar signed and five other of the institution and posted on the doors the along with notice by D. M. state bank to the effect that the bank now in the hands of the North Carolina Corporation commission The unexpected on the bank occurred between and o'clock Saturday afternoon It was confined entirely, far can

3. January 16, 1930 Statesville Record and Landmark Statesville, NC

Article from Statesville Record and Landmark, January 16, 1930

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Texas Blamed Fayetteville For Cotton's Dive to and Company and Allies Brought Into Charges Denied. Jan. that dominance the markets Clayton Company, and three other allied was responsible. along with hand-to-mouth buy the present depressed price cotton heard by senate cotten Taking the stand late in the day. Arthur Marsh, former president maintained that the Houston, Texas. name has figured prominently in and the lender effort keep down, Clayton, member the Texas Arm, had denied charge previous testimony. The other three firms allied with Marsh said, were George den Brother, Sprunt and of Wilmington, Texas, Brothers, of Montgomery, Alabama Marsh testified. markets American cotton dominated great which allied with three others, all an prices.' Marsh Sam Morley, of the who denied that his had fied that to in New York long way toward relievleft stand, he promlegislation when he continues his While assigned great the alleged dominance of the companies, Marsh said that cause of the present This policy, told the adopted to an extent known and some he said, had reached the point of Fort Bragg Depositors Make Run on Lafayette Trust Sound. Fayetteville, to heavy withdrawals by Fort Bragg depositors, Lafayette Bank and Trust Company, state bank of this failed open doors Monday beginning of banking hours. This action was taken to proother depositors, according statement signed by President John Tolar other directors the and posted on the doors of the along with notice by M. Darden, state bank examiner, to the effect the bank the hands the North Ca. rolina Corporation The unexpected bank between o'clock Saturday was confined entirely, ILS can learned, to men from Fort Bragg. Apparently started from irresponsible rumors which cannot be traved their origin. One of these reports was that the military post had received orders from Washington withdraw official deposits from the Lafayette bank. such order according to Major K. Perkins, post adjutant. statement of the directors fol. lows: Saturday afternoon, January 11, and o'clock, of this bank who the least for doing, started unusual of their deposits. these depositors were paid full the usual closing hour, their withdrawals have started tain unfortunate and unfair rumors which will probably cause more Serious to arise the bank opened for again, resulting some depositors obtaining preferenco over others. order that all depositors creditors receive and just treatment the board of this bank have voted ask proper officials of the state charge the and handle the in same the by The notice signed John R. Tolar, Poe, FARMERS ORDER George Patterson, M. Bethune A. SEED Sandlin The Lafayette bank has connections Lespedeza Meeting New York which would have en. abled it obtain funds About 25 county farmers tide over the emergency had there pooled their wants for seed been time arange this assistance, 100 bushels of Common variety of lespedeza which to The bank's statement for the first checked those part of which have been cooperative order Statesville published yesterday, exhibited no beginning Wednesday afternoon signs ailing The cap. after lespedeza ital stock of was which to be held o'clock. The by and profits county agent has sent circular with total resources $603,number of farmers who have 870. The aggregated little made inquiry lespedeza more than o'clock the dollars, inmeet promptly at at cluding of secured Warehouse Alexander Thompson deposits. Loans discounts were $429,924 on North Center where the held. and cash and due from banks $02,000. meeting to understood that all official agree that lespededa has no equal funds from Fort that Bragg deposit equal hay. soil building and repository bonds. State pasture crop. deposits, also makes profitable growth without secured. lime but responds liming. was said that directors of the bank are maping abundantly and the seed are toward opening the institution, pan. believed that of same value satisfactory arrangeand of ment to this end can be made. one tons per

4. January 16, 1930 Statesville Record and Landmark Statesville, NC

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Article Text

Texas Firm Blamed Fayetteville Bank For Cotton's Dive Fails to Doors Anderson, Clayton and Company and Allies Brought Into ProbeCharges Are Denied. Washington, Jan. that the markets Anderson, Clayton Company, three other allied firms responsible, along for present depressed price cotton was heard senate agriculture subcommittee cotton Taking the stand late in the day. Arthur Marsh, former president New exchange, maintained that the Houston, Texas. firm, whose name has figured prominently in and previous investiga the an effort tions, was Clayton, the Texas had denied the charge previous testimony. The three firms allied it, Marsh were George den Brother, Philadelphia; Sprunt of Wilmington, North and Texas, and of Montgomery, Marsh testified. markets for American cotton are great which three others, all to an advance in prices. Marsh Sam Morley, manager the ton who denied statements that his had market. He testified that legislation to prevent cotton on contract in New York way toward relievMarsh the stand, he promlegislation when he continues his While great alleged of the cotton companies, Marsh said that the cause of the present This policy told the had been adopted to an extent never known he had reached the point of ab- Fort Bragg Depositors Make Run on Lafayette Bank and Trust Comis Sound. Fayetteville, to heavy withdrawals by Fort Bragg depositors, the Bank and Trust state of this failed to open its doors Monday the beginning of banking action taken proother depositors, according signed by President John R. Tolar five other directors the institution and posted the doors the building along with notice by D. M. Darden, state bank examiner, the effect that the bank the hands the North Ca rolina Corporation The unexpected run on the bank between o'clock Saturday confined entirely, far as learned, officers and men Bragg. Apparently started from which cannot be to their origin. of these reports that officers the military had received orders from withdraw official deposits from the Lafayette bank. No order was received, according to Major K. S. Perkins, post adjutant. The statement of the directors fol. lows: Saturday afternoon, January 11, between o'elock, certain depositors of this bank who had the least reason for doing, started unusual withdrawals of their deposits. Although these were paid full the closing hour, their withdrawals have started certain unfortunate unfair rumors which will more serious to arise the bank is opened business again, resulting in some obtaining preferothers. In order that all and creditors may receive fair and just treatment the board of this bank voted to ask the proper officials of the state to take charge the and the same in the manner provided by The notice John R. signed Tolar, Tillinghast, Poe, George B. Patterson, M. A. Bethune Sandlin Lafayette bank has connections New York which would have en. abled funds sufficient to tide over the emergency had there been time arange this assistance, said The bank's statement for the first of the year, which was have been published yesterday, exhibited signs of ailing The capital stock of $50,000 supplemented by and profits total resources of $603.870. The aggregated little more million dollars, including of secured deposits. Loans discounts were $429,924 and and due from banks $62,000. that all official funds from Fort Bragg deposit are secured by State are also secured. It was said that directors the bank are maping toward opening of the institution, it is and believed that satisfactory arrangement to this end can be made.

5. March 8, 1930 The News and Observer Raleigh, NC

Article from The News and Observer, March 8, 1930

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Article Text

HIGH COURT TO WEIGH BANK PROPOSITION As Measure of Precaution Reorganization Plan Is To Be Reviewed Fayetteville, March order to the of legality before the Court, Judge N. A. Sin clair today denied petition of the North Corporation Commission to be to turn over the assets of th LaFayette Bank and Trust Company to the group of business men and depositors who have re-organize and re-open the bank which was closed two ago. The petition was brought before Judge Sinclair this M. Bailey, for the Appearing with Mr. Bailey was John Mitchell, examiner. Mr certified writing that the facts and figures set forth by the The Commission is thoroughly in sympathy with the plans being made the bank and is likewise satisfied that the of reorganization entirely legal all respects and the petiwas to Judge Sin clair as the first step estanthe legality of the proposed lishing re-organization and any possible doubt on this

6. May 2, 1931 The Eagle-Reporter Maywood, NE

Article from The Eagle-Reporter, May 2, 1931

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BANK FAILS TO OPEN. Fayettevile, Jan. LafayBank and Trust Co. failed its doors today the result heavy run institution urday. The capital stock surplus and to