11919. Rutherford County Bank and Trust Company (Rutherfordton, NC)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
state
Start Date
February 3, 1930
Location
Rutherfordton, North Carolina (35.369, -81.957)

Metadata

Model
gpt-5-mini
Short Digest
380f2623

Response Measures

Full suspension, Books examined

Other: Branches at Spindale and Union Mills closed; state examiners took charge.

Description

Newspapers (Feb 4–5, 1930) report heavy runs on the Rutherford County Bank and Trust Co. (heavy run Monday) and that the board ordered the bank (and branches) not to open and placed affairs in hands of the State Banking Department; state examiners took charge. Articles promise directors' statement and optimistic talk about possible reopening, but no clear confirmation of reopening is given in these pieces, so outcome is uncertain.

Events (2)
1. February 3, 1930 Run
Cause Details
Articles report a heavy run on the Rutherford County Bank and Trust Company on Monday; no specific trigger (rumor, correspondent failure, or solvency scandal) is identified in the articles.
Measures
Directors ordered banks to fail to open; notices posted; thereafter state bank examiners were sent and took charge.
Newspaper Excerpt
failed to open after heavy run Monday
Source
newspapers
2. February 4, 1930 Suspension
Cause
Government Action
Cause Details
Board of directors failed to open the bank and placed the affairs in the hands of the State Banking Department; state examiners took charge.
Newspaper Excerpt
The conventional notice, signed by the board of directors, was affixed to the doors. It declared the affairs of the banks had been put in the hands of the State Banking Department for the protection of depositors.
Source
newspapers

Newspaper Articles (9)
1. February 4, 1930 Hickory Daily Record Hickory, NC
Article from Hickory Daily Record, February 4, 1930

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Article Text

CLOSED RUTHERFORDTON, Feb. Rutherford county banks closed their doors this morn- The Rutherford County Bank and Trust company, at Rutherfordton, with resources over million dollars, and its two branches, at Spindle and Union mills, were closed. The convention notice, signed the board of directors, was affixed to the doors. declared th the banks had been put the hands of the state banking department for the protection of deposi*ors. run on the Farmers' bank and Trust company Forest City, believed by bankers to have been outgrowth the closing of the Rutherfordton Bank and branches, followed by called meeting directors of the Forest City institution 10 o'clock, and the closing of the bank, branch at Paroleen. The bank placed in the hands the state banking department, notice said. Examiners Sent Feb. men from the State Banking department were sent to this morning when John Mitchell, State bank examiner, notified that five banks in Rutherford county had closed.

2. February 4, 1930 Goldsboro News-Argus Goldsboro, NC
Article from Goldsboro News-Argus, February 4, 1930

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Article Text

Five Banks Close In Rutherford Co, Rutherford county banks closed their doors this morning. The Rutherford County Bank and Trust Company, at Rutherfordton with resources of over million dollars. and its two branches at Spindale and Union Mills, were closed. run on the Farmers' Bank and Trust Company at Forest City, believed by bankers to have been an outgrowth of the closing of the Rutherfordton bank and its branches, was followed by called meeting of directors of the Forest City institution 10 o'clock, and the closing of the bank, as well as its branch at Spindale.

3. February 4, 1930 The Charlotte News Charlotte, NC
Article from The Charlotte News, February 4, 1930

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Article Text

Five Banks Go To Wall Today In Rutherford Rutherfordton and Forest City Banks, With Branches, Close Doors— Resources Over Two Million. Rutherfordton, Feb. Ruth. erford County banks closed their doors this morning The Rutherford County Bank and Trust Company, at Rutherfordton, with resources of over million dollars. and its two branches, at Spindale and Union Mills. failed- to open their doors at the usual hour The conventional notice, signed by the board of directors. was affixed to the doors. It declared the affairs of the banks had been put in the hands of the State Banking De. partment for the protection deon the Farmers' Bank and Trust at Forest City, believed by bankers to have been outgrowth the closing of the Rutherfordton bank and its branches, was followed by called meeting directors the Forest City institution at 10 o'clock. and the closing of the bank well as branch at Caroleen, about 10:15 this The bank was placed the hands of the State Banking Department, notice Resources of Million A financial statement of January 1930. gave the Rutherfordton bank capitalized $200,000. total of Surplus was of $970.407 Taylor president, while D. Walker cashier. Arial 18 cashier of the Spindale branch. while Mr. Seoggins is cashier of the Union Mills branch Resources of the branches were not immediately available Surplus and capital of the Forest City institution $250,000. well million dollars. Dr. B. Lovelace president. and Bennett. cashier W. Hicks is cashier of the Caroleen branch. which has resources of about No reason fas assigned this morning for the closing the banks directors' statement was promised for tomorrow morning. The closing of the large banks and their branches only three banks in Rutherford County They are at Cliffside, Bostic and Caroleen. Banking Department Sends Two Men to Rutherfordton from the State Banking Department were sent Rutherfordton this morning when John Mitchell. State bank examiner, notified that five banks in Rutherford County had telegram to Mr. Mitchell said that the Rutherford County Bank and Trust Company, with home office at Rutherfordton and branches at Union Mills and Spindale. and the Farmers Bank and Trust at Forest City with branch at Caroleen had been closed by the boards of directors. No further details were given.

4. February 5, 1930 The Anniston Star Anniston, AL
Article from The Anniston Star, February 5, 1930

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Article Text

DOORS OF FIVE BANKS CLOSED ONE COUNTY State Examiners Take Charge of North Carolina Institutions RUTHERFORDTON, N. C., Feb. 5. (U.P)-State bank examiners were in charge of five banks in Rutherford County today, three of which failed to open their doors for business yesterday and two which closed after heavy run. Total assets of all institutions involved are approximately $2,500,000. The Rutherford County Bank and Trust Company here, and its branches at Spindale and Union Mills, failed to open under orders of the Board of Directors, after all three had stood a heavy run Monday. The Farmers Bank and Trust Company of Forest City and its branch at Caroleen opened as usual yesterday morning, but large runs by depositors resulted in their closing shortly before noon. John Mitchell, Chief State Bank Examiner, sent two employees here from Raleigh after he had been notified of the banks closing. The Rutherford County Bank and Trust Company is capitalized at $200,000, with a surplus of $20,000, deposits of $970,407, and total resources of $1,340,606.75, acording to its statement of January 1. The Forest City Bank has capitalization of $250,000, with approximately $1,000,000 in resources. Its Caroleen branch has resources of $50,000. Notices were posted on all of the banks, signifying they were in hands of state examiners for protection of their depositors. When the Lake Lure boom collapsed two years ago, it was believed to have affected the bank here. Two banks combined here at that time the Commercial and the Citizens Bank and Trust Companies, changing the name to the Rutherford County Bank and Trust Company, of which J. L. Taylor is President Dr. T. B. Lovelace is President of the Forest City Bank.

5. February 5, 1930 Jackson Citizen Patriot Jackson, MI
Article from Jackson Citizen Patriot, February 5, 1930

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Article Text

5 NORTH CAROLINA BANKS ARE CLOSED Bun Started On Farmers' Bank Is Disastrous When Others, Fail. Rutherfordton, N. C., Feb. Five Rutherford assets more than $2,500,000 closed Tuesday. The Rutherford County Bank and Trust Company here and its branches at Spindale and Union Mills failed to open mornLater run Farmers' and Trust Company at Forest City and shortly before noon this bank and its branches Caroleen also Two employes of the state banking department Raleigh were after John Mitchell, state bank was notified. Notices posted the doors the banks, signed the boards of stated the affairs of the banks had been in the hands of the state department for protection of depositors. The Rutherfordton bank, in financial statement as of Jan. 1930, gave as its resources 000, had of and deposits announced in the L. Taylor is president of this and Capital of the Forest City with ever million dollars. Dr. B. president. The Caroleen branch had resources of approximately $50,000.

6. February 5, 1930 The St. Louis Star and Times St. Louis, MO
Article from The St. Louis Star and Times, February 5, 1930

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Article Text

NORTH CAROLINA BANKS CLOSE AFTER HEAVY RUNS RUTHERFORDTON. N. C., Feb U. P.)-State bank examinITS were in charge of five banks Rutherford County today Total stets involved are approximately $2,500,000. The Rutherford County Bank and Trust Company here. and its branches at Spindale and Union Mills. failed to open after heavy run Monday The Farmers' Bank and Trust Company of Forest City and its branch at Caroleen opened is usual yesterday morning, but closed shortly before noon.

7. February 5, 1930 The Charlotte News Charlotte, NC
Article from The Charlotte News, February 5, 1930

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Article Text

Sixth Bank Is Shut Up Today In Rutherford Optimistic Tone Succeeds Depression, As Officials of Forest City Bank Prediet No Losses. ney Trust Company, of Chimney Rock, failed to open its doors this morning, the sixth Rutherford County bank to close in 24 hours The Chimney Rock institution, it its understood here. was capitalized at $50,000. L. C. Cobb is cashier. Failure of the bank to open, It was reported here. is precautionary measure induced by the closing of the Rutherford County Bank and Trust Company here. its branches at Spindale and Union Mills. the Farmers Bank and Trust Company at Forest City and its Caroleen branch yesterday Examiners of the State Banking Department. sent here from Raleigh yesterday, this morning took over the books of the five banks. Optimistic Statement A statement issued this morning by the officials of the Forest City bank sounded an optimistic note. Depositors would be paid in full, the officials believed. and indications were that the bank, together with its branch. might reopen. W. Hicks, cashier the Caroleen bank. declared affairs there were in good shape, and that there had been no withdrawals when the order came from Forest City to close The directors' statement follows: "It is the opinion of the officials of the Farmers Bank and Trust Company that the institution is perfectly solvent. In our opinion there are enough assets to amply take care of all depositors. Margin Large "There is on deposit at this time $1,000,000 Loans and discounts amount to $1,400,000 and there is also capital of $250,000 and a surplus of $250,000. "There is movement on foot for strong banking interest to come in and reopen the Forest City and Caroleen banks "Closing of the bank was done at the order of the board of directors after word had gone out that the Rutherfordton bank was not open and run on the local bank was beginning to materialize This step was taken to protect the interests of the depositors and prevent run. Examiners in Charge "State bank examiners arrived this morning and are now in charge of the bank statement may be expected from them in few days. Mr. Roberts, of the State Banking Department, is in charge of auditing the books of the bank. The paralysis of business following the closing yesterday of the five banks, which largely financed commercial activities of the county, was succeeded today by increasing belief that depositors' losses would be alight. any. The combined resources ran well over 82 500 Throughout the day yesterday and last night police guard was maintained over the Industrial Loan and Investment Bank, Morris plan institution. Cash said to be in excess of $70,000 was kept in view of depositors throughout the day The Industrial Bank. by issuing cashiers' checks on the American Trust Company of Charlotte aided somewhat in solving the county's banking problems.

8. February 5, 1930 The Item Sumter, SC
Article from The Item, February 5, 1930

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Article Text

North Carolina Banks Closed N. Feb. Rutherford county banks closed their doors this morning. The Rutherford County Bank and Trust Company at Rutherfordton. with resources of over lion dollars, and its two branches, at Spindale and Union Mills, did not open for business. The notice, signed by the board of fixed to the doors. the affairs or the banks had been put in the hands of the state banking for the protection of depositors. run the Farmers' Bank and Trust Company at Forest City believed by been an outgrowth of the closing of the Rutherfordton bank and its branches. followed by called meeting directors of the Forest City institution at o'clock and the closing of bank. well its branch Caroleen. The bank placed the hands the banking a notice said.

9. February 5, 1930 The Roanoke Times Roanoke, VA
Article from The Roanoke Times, February 5, 1930

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Article Text

RECLUSE NOW Death Valley' Scotty, Fortune Lost on Stocks, Goes Back to Mine Kansas City, Mo., Feb. Valley" Scotty, the eccentric millionaire from the gold mines of the West, hurried to his desert castle tonight intent upon recouping fortune lost in the stock market. "Death Valley" whose almost forgotten name Walter Scott. passed through here week ago Paris All life had been busy taking gold from his Death Valley FIVE CAROLINA BANKS then had built himself the sun baked sands nearby FORCED TO CLOSE DOORS which enjoy life. even swell joint like that Rutherford. C., Feb. got said Scotty institueral ago fame when and four branches closed failed special open their doors for business today against "just the fun Rutherford County Bank Scotty started for Paris. Trust with his pockets bulging with Union failed to open notes 10-gallon hat today grizzled head. passed through officers here Monday and City the opposite direction tonight. day. downcast and with all thought The Forrest City Bank Trust the pleasures Paris vanished. Company branch Baroleen. turned he when opened this morning closed after learned he all his ready depositors. Officials both declined money playing stock market. Castle. make "Guess have do some closed Bank said Unless charge the affairs "plenty. Scotty added involved. President Taylor, the Rutherthat might have give up Bank and Trust Company, manorial believed depositors eventuorgan and its scores ally receive rooms. which valley where the mercury sometimes touched Forrest Bank Trust "You the taxes on it $150.just This about ruined me. Why nearly Scotty reached his pocket find bill which tip the porter Despite financial difficulties trouble locating bill enough porter. After thumbfinally found one five dollars. trains and hastened lonely castle in the painted desert.