11870. Eastern Bank & Trust Company (New Bern, NC)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
trust company
Start Date
August 7, 1930
Location
New Bern, North Carolina (35.108, -77.044)

Metadata

Model
gpt-5-mini
Short Digest
a3849d53

Response Measures

Full suspension, Books examined

Description

The Eastern Bank & Trust experienced a small run on Aug 7, 1930 after the Citizens Bank and Trust Co. closed; it temporarily closed/suspended as a precaution and then reopened Oct 3–4, 1930 under a deferred-payment plan with depositor agreements (funds held until 1932). Several articles describe invocation of the 30-day rule and state examiners taking charge. Cause attributed to runs on a local bank (closure of Citizens) and resulting panic.

Events (3)

1. August 7, 1930 Run
Cause
Local Banks
Cause Details
Small run on Eastern followed the closing of the Citizens Bank and Trust Company earlier that morning; panic/spread of rumors after Citizens' closure prompted withdrawals.
Measures
Invoked 30-day rule limiting withdrawals; directors closed bank to protect depositors; state examiners called in.
Newspaper Excerpt
Two hours later the Eastern Bank and Trust Co. was closed after a small run.
Source
newspapers
2. August 7, 1930 Suspension
Cause
Local Banks
Cause Details
Precautionary temporary closure (suspension) prompted by threatened withdrawals and run triggered by the Citizens Bank closing and attendant rumors/nervousness.
Newspaper Excerpt
the directors ... had ordered the bank closed because of threatened withdrawals ... closed temporarily to protect its depositors.
Source
newspapers
3. October 3, 1930 Reopening
Newspaper Excerpt
The Eastern Bank and Trust company ... will reopen for business tomorrow morning, it was announced last night after a directors meeting. The reopening ... depositors agreed to allow their money to remain until 1933 (reports vary; depositors agreed to hold funds until Dec. 20, 1932).
Source
newspapers

Newspaper Articles (20)

Article from Washington Daily News, August 7, 1930

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Two New Bern Banks Temporarily Closed NEW BERN, N. C., Aug. Citizens Bank and Trust Com pany, with resources of over million dollars failed to for business open today. A notice posted on the doors said that the directors of the banking in stitution had ordered the bank closed because of threatened withdrawals. NEW BERN, N C., Aug. The failure of the Citizens Bank to open this morning caused run on the Eastern Bank and Trust Company which closed temporarily to protect its depositors. It is said that both banks will soon re-open.


Article from St. Louis Post-Dispatch, August 7, 1930

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Two Depositories at Newbern, N. C., Shut Doors. By the Associated Press. NEWBERN. N. C., Aug. 7.-The only banks in Newbern closed their doors today. A notice posted on the door of the Citiens' Bank and Trust Co. said the bank was closed because of threatened withdrawals. Two hours later the Eastern Bank and Trust Co. was closed after a small run. The Citizens' Bank had a capital of $50,000 and total re-


Article from The Salisbury Post, August 8, 1930

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Situation Survey Subject New Bern. Aug. Taylor, of the state banking department, in New Bern day to could be done about giving New Bern Chief John Mitchell was later the day. Two banks, the Citizens Bank and the Eastern Bank and Trust company. closed their doors here yesterday, leaving New Bern with only an dustrial bank. branches the Eastern in this section close. The First National bank suspended business here last October Officials of the two banks today reiterated that the are sound, and that closing was President Swan, declared his bank would not have closed had officials not been under the that could reopen immediately, or soon public confidence was stored. Directors of the Eastern late yesterday the possibilities of mediate reopening.


Article from The Charlotte Observer, August 8, 1930

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TWO BANKS AT NEW BERN CLOSE TO PREVENT RUNS NEW BERN, Aug. 7-State Bank Examiner John Mitchell and sistants from the banking department of the state corporation commission were expected here tonight to take charge of the Citizens Bank and Trust company and the Eastern Bank and Trust company of this city, both of which closed their doors here this morning as precautionary measures against threatened heavy runs and withdrawals. Since last October the First National Bank of New Bern has been in the hands of a receiver, so that the city is now without any commercial bank, except the Morris Plan bank. It is thought at least one of the two banks that closed today will be permitted to reopen shortly, as both are said to be in good financial shape. Closing of the Citizens bank affects the home office here and also its five branches at Arapahoe, Maysville, Oriental, Bayboro and Vanceboro. MRS. JOHN BASKERVILL INJURED IN CAR WRECK Mrs. John Baskervill, wife of the Raleigh correspondent for the North Carolina Association of Afternoon Newspapers, had her right arm broken in three places when driven by her husband collided. another at Valdese, near here, Mr. Baskerville was not injured His wife is being treated at a Morganton hospital.


Article from The Charlotte News, August 8, 1930

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Saturday Grocery And Market Specials For Thrifty Housewives Two New Bern Banks Will Be Investigated Examiner Seeking Facilities for Residents-Bank Officials Say Conditions Sound. Taylor. an examiner of the State Banking Department. was in New Bern today to see what could be about giving New Bern banking facilities. Chief Examiner John Mitchell was expected later in the Two banks. the Citizens Bank and Trust Company, closed their here yesterday. leaving New Bern with only Morris Plan bank Five branches of the Eastern in this section also closed The First Na. tional Bank suspended business here last Officials the two banks today reiterated statements that the in. stitutions are sound. and that closing was precautionary measure President W. Swan. of the Eastern, declared his bank would not have closed had officials not been under the impression that It could reopen or soon as public confidence was Directors of the Eastern late yes. terday appointed to investigate the possibilities*of imme-


Article from The News and Observer, August 8, 1930

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New Overwhelmed By Demands of Depositors New Bern, Aug. 7.-State Bank Examiner John Mitchell and assistants from the banking department of the State Corporation Commission were expected in the city night to take charge the Citizens Bank Trust Company and the Eastern Bank Trust Company, which elosed here today precautionary measures against heavy runs withdrawals. New thus left, at least temporarily, without bank, except for Morris Bank, First National Bank has been in the hands receiver since October. hoped, that least one of the two closed today, and possibly both, may be reopen early they are reported to good dition. In fact, meeting of directors the Eastern Bank and Trust Company held late day, make immediate investigation the possibility opening the bank and its five possible. On the President Swan, dent John Weskett, and Warren, director and The branches are Maysville, Oriental, and Vanceboro. Citizens First To Close. The Citizens Bank was closed this morning, minutes before its regular opening time, when throng depositors noted withdraw their funds. gradual drawals and the spread of rumors during the last few days, large yesterday but the bank officials expected to open today, until the waiting throng was outside. Cashier Scott states that the bank in good shape and amply nominal tions that institution could stand heavy withdrawals and that only decision close the bank, order protect depositors and all others concern- For almost two and half hours the Eastern Bank remained open after the closing of the other institution. Every effort was made handle the situation but early became evident that many panicky depositors would immediatetheir The 30-day rule for notifying the bank about withdrawing was put into force the tide ed and the that the heavier the rest of the day. To interests of all in the best manner (Please Turn to Page


Article from The Modesto Bee, August 8, 1930

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Two North Carolina Banks Close Doors NEWBERN, N C., Aug. 7.-(P) Citizens Bank and Trust Company the Eastern Bank and Trust Company their doors here to-day leaving city without a financial institution. notice posted on the door of the Citizens Bank Company being closed because of withhours the Eastern Bank and Trust closed in the fact of small run depositors.


Article from The Columbia Record, August 8, 1930

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EXAMINER INVESTIGATES NEW BERN BANK FAILURES NEW BERN, N. Aug. -Examiner Taylor, of the state banking department, was in New Bern today see what could be done about giving New Bern banking facilities. Chief ExaminJohn Mitchell was expected later in the day. Two banks, the Citizens Bank and Trust company and the Eastern Bank and Trust company, closed their doors here yesterday, leaving New Bern with only an industrial bank. Five branches of the Eastin this section also closed. The First bank suspended business last October.


Article from The Richmond News Leader, August 8, 1930

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NEW BANKING FACILITIES ARE CUT Two Banks Closed and State Examiner Now Studying Conditions. Asosciated Press Taylor, an examiner of the state banking department, was in New Bern today to see could be done about giving New Bern banking facilities. Chief Examiner John Mitchell was expected later Two banks, the Citizens' Bank and Trust Company, closed their doors here yesterday, leaving New Bern with only Morris Plan bank. Five branches of the Eastern this section also closed. The First National bank suspended here last October. Officials of the two banks today reiterated that the institutions are sound and that closing was precautionary measure. The News Leader covers Richmond Roof.


Article from The Durham Sun, August 8, 1930

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NEW BERN HOPES TO REOPEN BANKS Examiner Taylor, of the state banking department, was in New Bern today to see what could be done about giving New Bern banking facilities. Chief Examiner John Mitchell was expected later in the day. Two banks, the Citizens Bank and Trust company and the Eastern Bank and Trust closed their doors here yesterday. leaving New Bern with only an industrial bank. Five branches of the Eastern in this section also closed. The First National bank suspended business here last October Officials of the two banks today reiterated statements that the are sound. and that (Continued on Page Eleven-A)


Article from Ledger-Star, August 8, 1930

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PREPARE REOPENING Two Closed Financial Institutions At New Bern Said To Be Sound New Bern, C., Aug. Taylor, examiner the state banking was New today what could done about giving Bern bankfacilities. Chief Examiner Mitchell expected later in banks, the Citizens Bank and Trust Company the Eastern and Trust Company, closed doors here yesterday, leaving Bern withonly Bank branches the Eastsection closed. Bank suspended last Officials the banks today reiterated stitutions sound and that closprecautionary President W. Swan the declared his bank would closed had, officials been the impression that could reopen immediately soon public confidence was restored. Directors the Eastern appointed investigate sibilities reopening


Article from Statesville Record and Landmark, August 11, 1930

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BANK by Rumors Cause Hysteria Fanned Banks to Close Remaining National Failed Their October. Citizen's Bern, Bank Company and the Bank and Trust Company which yesterday will until arrival of John Mitchell, chief bank examiner, officials said today. meantime Taylor, another bank examiner, in charge. New Bern, Aug. Bank Examiner John Mitchell assistfrom the banking department of the State Corporation Commission are here take charge of the Citizens Bank Trust Company the Bank and Trust Company, this both which closed their docis Thursday morning precautionary measures against and Since last October the First New has the hands that city bank except the Plan bank oped that one the banks yesterday are said to be good financial shape. Citizens bank closed five minutes before opening time, large throng depositors was noted waiting outside withdeposits. directors met decided After gradual withdrawals and the spread rumors during the last there large withdrawals Wednesday. Cashier Scott states that the bank was amply able to erate under normal trend but that institution could stand unusually Eastern bank remained open for almost two and half hours during the morning but depositors withdrew funds and there ind cations that the hysteria would grow. closing of this bank affects the home here its five branches Arapahoe, Maysville, Oriental, Bayboro and Vanceboro.


Article from Statesville Record and Landmark, August 11, 1930

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Wilson Company to Occupy Citizens Bank EastBank and Trust Co. Given Permission Reopen. New Bern, Aug. ference State Bank Examiner John Mitchell Friday afternoon Swan and John Weskett, and vice president of the Eastern and Trust that had given the bank here, they open obtain the of the possible that the bank tors. reopened here within the next local branch the Branch Banking and Trust Company, of Wilopened here this morning at Harris, sistant vice president of the will be in charge of the local Although the new bank will have connection whatever with any the former banks, be housed Bank Trust Company audit Citizens Bank books will be separ ately the Baxter, of Raleigh, the liquidating of the banking division the state comTaylor, of Raleigh, of the banking department of the state corcommission, took charge of poration the Citizens Bank Trust the Eastern Bank and Company Trust Company, which closed Thursas precautionary measures heavy and withdrawals. prevent


Article from Washington Progress, September 18, 1930

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CONFIDENCE IN BUSINESS AND BANKING Confidence is one of the big words so far as business and banking are concerned. Without confidence, our business structure would topple over inside of a month. Without confidence, there could be no trading, no banking, no buying and no selling. Confidence is indeed a big word. We have been having bank failures in various parts of the nation. We have had them here, in our own state. In the majority of instances these failures were brought about thru lack of confidence. Some one starts an idle rumor. It spreads like wild-fire Within a short while, a run starts on the bank, and then the trouble is done. Despite the fact that the rumors may have been entirely without the slightest foundation-as they usually are-and despite the fact that the banks may be in the best of condition-as they also usually are-the institutions are forced to close their doors and suspend business. Lack of confidence does it. Lack of confidence, coupled with damned foolishness! Pardon the profanity, please, but there are times when profanity seems to fill the bill as nothing else can do. The New Bern bank failure should never have taken place. The Eastern Bank was in good shape. Rumors and lack of confidence brought about that failure. Probably the same thing is responsible, to a large extent. for the failure of the bank in Raleigh this week. The point we want to emphasize in this connection is that the utmost care should be exercised in talking about banks or other business institutions. Idle rumors can do incalculable harm. People who persist in spreading them should be punished to the fullest measure of the law. And don't forget that there is a law which provides for such things. Incidentally, in this same connection. we might also add that Washington has a right to be proud of its banking institutions and the safe, conservative and sound manner in which their affairs have been and are being handled.


Article from The News and Observer, October 4, 1930

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NEW BERN BANK WILL REOPEN ITS DOORS TODAY Depositors Agree to Allow Their Money to Remain Until 1933 New Bern, Oct. 3.-The Eastern Bank and Trust company, which closed its doors here August 7 fol. lowing the closing of the Citizens Bank and Trust Company and the development of run on the Eastern bank, will reopen for business to morrow morning, it was announced last night after a directors meeting. The reopening of the institution


Article from News and Record, October 4, 1930

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BANK AT NEW BERN WILL REOPEN TODAY Re-Opening of Eastern Bank and Trust Company Is By State Officials. (Special Dally New Eastern Bank and Trust closed doors August lowing the Citizens Bank and the run the Eastern bank, business directors The reopening institution follows an official of the signatures obtained Practically were The agreed allow their money without interest the 20, Full payments funds for the percentage made President Swan stated today the opening have made the and by the department Havana Bank to Reopen. in the near future Banco closed since last Saturday when suspension the directors, was rumored here


Article from Statesville Record and Landmark, October 6, 1930

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BANK AT NEW BERN WILL REOPEN TODAY Re-Opening of Eastern Bank and Trust Company Is Permitted By New Oct. Eastern Bank and Trust closhere August following closing of the Bank Trust the of run on the will open for today, after meeting. The follows check the natures obtained ments. cent the depositors were thus. The agreed their thout until 1932. Full funds for the deposits made upon demand. Swan stated today. All opening have by the officials and the plans state bankdepartment.


Article from Washington Daily News, January 17, 1931

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EASTERN TRUST CO. IN IMPROVED CONDITION NEW BERN, Jan. 17.-With-th exception of J. Vernon Blades, who was president of the defunct First National Bank whose name was 0. mitted at his own request, directors of the Eastern Bank and Trust Com pany were re-elected at the annual stockholders meeting. The local banl with its five branches in the section was reopened under the deferred pay ment plan. following its temporary colsing on August 7. in the face of a heavy run after the closing of the other local bank. Pres dent W. J. Swan reports that the institution is getting along as well as can reasonably be expected Since the reopening through Thurs day there have been new accounts opened there every day, he says. The new deposits are reported to be lar ger than in the statement for December 31, when they. were $249, 876.89.


Article from The News and Observer, January 17, 1931

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TRUST CO. IN EASTERN IMPROVED CONDITION Was On Deferred Reopened Payment Plan Following Closing Due To New Bern. Jan. the Vernon Blades, president of the defunct First National whose cmitted his request. directhe Eastern and Trust Company meeting. The local with its five branches the section reopened under ferred payment following temporary August face heavy after closing the local Swan the institution getting along can expected. through Thurs day every deposits reported larger than the statement for cember 31. when they were $249,Collections are due to lower and Mr the bank has not paid bills morale the debtors was said good. The institution mitted types except the making loans, states, and hopeful authority will be soon granted the making loans.


Article from Battle Creek Enquirer, July 12, 1931

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BANK AT NEW BERN TO REOPEN THIS MORNING The Charlotte Observer NEW BERN, Oct. 3.-The Eastern Bank and Trust company, which closed its doors here August following the closing of the Citizens Bank and Trust company and the development of run on the Eastern bank, will reopen for busitomorrow morning, it was nounced at 11 o'clock last night after a directors' meeting. The reopening of institution follows an official check of signatures obtained to depositors agreements, practically 90 per cent of depositors having signed up. The depositors agreed to allow their money to rewithout interest at the bank until December 20, 1932.