11972. Bank of Warsaw (Warsaw, NC)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
May 1, 1926*
Location
Warsaw, North Carolina (34.999, -78.091)

Metadata

Model
gpt-5-mini
Short Digest
8bbcab1e

Response Measures

None

Description

Articles (1926) state the Bank of Warsaw recently closed its doors and describe a criminal trial alleging forged/repudiated notes and misuse of town loans to prop up the bank. No article describes a depositor run; closure appears tied to bank-specific adverse information (forgery/mismanagement). Date of closure not explicitly given in the clippings; I use the publication timeframe (May 1926) for an approximate date.

Events (2)

1. May 1, 1926* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Allegations of repudiated/forged notes, directors floating and discounting papers to provide funds; misuse of loan proceeds to continue bank operations leading to closure.
Newspaper Excerpt
the Bank of Warsaw which recently closed its doors.
Source
newspapers
2. October 7, 1926 Other
Newspaper Excerpt
STATE NEARS ITS END IN WARSAW BANK TRIAL; ... the town asked aid the town council in floating $55,000 loan ... witnesses swore, was the Bank of Warsaw on note ... They are specifically charged having forgery in putting them on the Late In the afternoon the state off at tangent ... seeking that Messrs. Stevens and Powell floated and discounted them in order to provide funds needed for the continued operation their bank.
Source
newspapers

Newspaper Articles (2)

Article from The News and Observer, May 5, 1926

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Article Text

Walt Mason SUCCESS James Jiggles driving force, and though his work often coarse, surely made pay; his bundle had exceeding heft, and little boots he wrecks along his way. Napoleons hesitate bothered some trifling who dares they tread the little piker down that they fortune and renown read their titles clear. James Jiggles didn't hoot when he had crushed cheap galoot wrecked his peanut stand: he'd his oldest friend bring some project end, get the coin hand. One hasn't time, going strong, to figure out the right wrong every little act; one leisure observe the justice each little curve, kindness shown, tact. James Jiggles, old and gray like any other mortal jay, and had time burn: ample leisure the chaps from took fall and beat turn. not pleasant to look back the winding track which and know that every crook and bend neighbor friend reduced deep tress. not pleasant to behold widow shivering with cold, and pining for and know wrecked her husband's trade and him all he'd made, and him forth to die. It's pleasant thing know that chance there'll sordid tale of how sharp and trick some trusting hick, and stripped him his kale. And Jiggles has the time think of every bygone crime the rack; there solace in the thought how successfully wrought, comfort in his jack. The devastation of Grandfather Mountain forest fires tragic occurrence. The striking beauty of the Blue Ridge mountains has been due largely to the forests. North Carolina gets percentage back of its Federal taxes than any other in the Union, Col. Young reports. Even gets back millions for building roads, agricultural extension and other lines of service. Henry L. Stevens, commander of the American Legion in North Carolina, demonstrated highly commendable spirit when he made good personally the funds of the American Legion on deposit in the Bank of Warsaw which recently closed its doors. Pioneers in preparing the way for the State highway system in North Carolina built much better than they dared hope for. The collection of more than half million dollars in line taxes every month far surpasses what anyone could visualize half dozen years ago. The election of Mr. Weatherspoon president of the State for thing which directors of the North Carolina Agricultural Society should be commended. Probably not since the organization of the has society the question of the presidency meant much. The State Fair, in its removal and reconstruction, can either fade out of the picture assume its rightful place the State. selection of the directhead assures that attention, conscientious public spirit and organizing ability which the State Fair needs in this crisis. The trend shown the fact by that there are 479,000 less people the farms this than last year. Only 30 million year peoof live on farms and 901,000 more people moved from the districts country the than from the cities the country. Former Senator Joseph Brown, of Columwho was in Raleigh this bus, week, tells of farmer who had given his good farm and troubled because the had young man left the farm and found railroad work large town. "Can you blame asked Mr. Brown. gets $6 day in town and knows cannot make that much the farm. town work much than work the farm the exodus continue."


Article from News and Record, October 7, 1926

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Article Text

STATE NEARS ITS END IN WARSAW BANK TRIAL; TODAY IS THE BIG DAY (Continued from page one.) during the afternoon and paraded before the jury box by the tactful the with the object of making the jury see the defendants through the same glasses the state views Furthermore the state is working herolcally in an effort to convince the jury that the signature Messrs. Stevens and Powell on the repudiated were written by the defendants and not some other person. they have succeedin this respect is of confecture. Several of the have appear to be those of the men but were unable to swear positively to this Taken as whole the jury figured only small extent today's hearing was excuse that body from the room on repeated occasions order that opposing counsel might argue the competency of the evidence they wish to introduce. Then too, objections Interposed by defense counsel to on the grounds of Its with the caustie frequently dropping to enliven the hearIng. This latter was engaged in by defense counsel with the object nullifying any unafvorable Impressions that may have found their way the box. The has to prove that the members the town knew nothing of the repudiated until after the Bank Warsaw had been closed and is now seeking that Mussrs. Stevens and Powell floated and dis counted them order to provide funds needed for the continued operation their bank. They are specifically charged having forgery in putting them on the Late In the afternoon the state off at tangent in its apparent effort to get Into the jury box an regards the defendants They Introduced tending to show that the town asked aid the town council in floating $55,000 loan for purposes, the note to be retired with money secured from the state board of education when the amount due the tioned. Warsaw school district was apporThis money, witnesses swore, was the Bank of Warsaw on note and that the note was not