Central Bank & Trust Company

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: trust company
Start Date: October 29, 1931
Location: Jasper, Alabama (33.831, -87.278)

Metadata

Model: gpt-5-mini
Short Digest: 6ddf4338

Response Measures

Full suspension, Books examined

Other: State Banking Department took charge and liquidating agent appointed.

Description

An unexpected run on Oct 29, 1931 prompted directors to close the bank to protect depositors; State Banking Department took charge and a liquidating agent was named, indicating permanent closure/receivership.

Events (3)

1. October 29, 1931 Receivership

Newspaper Excerpt: will be liquidating agent... Cobb, assistant liquidating agent and in a few days the doors will be opened for the purpose of making collections in an orderly manner. / taken over by the State Banking Department for operation. / Examiner in Charge. (Oct. 29, 1931).
Source: newspapers

2. October 29, 1931 Run

Cause: Rumor Or Misinformation
Cause Details: Depositors became panicky and made unexpected withdrawals; rumors circulated about insiders withdrawing funds prior to closure.
Measures: Directors closed the bank immediately to protect depositors; suspended payments and accepted no further deposits.
Newspaper Excerpt: As result of an unexpected run on the Central Bank & Trust Company, the directors closed that bank Thursday and it is now in charge of the State Banking Department.
Source: newspapers

3. October 29, 1931 Suspension

Cause: Government Action
Cause Details: Directors ordered immediate closure and the State Banking Department took charge of the institution following the run.
Newspaper Excerpt: it becomes necessary for the Central Bank & Trust Company to close its doors... Done at 12:10 o'clock p. m. on this the 29th day of October, 1931.
Source: newspapers

Newspaper Articles (4)

1. November 4, 1931 Daily Mountain Eagle Jasper, AL

Article from Daily Mountain Eagle, November 4, 1931

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Article Text

TRUST COMCENTRAL BANK JASPER, ALA. GIVES PANY OF TO THE PUBLIC AS NOTICE FOLLOWS That account of the Resolved: on steady withdrawal of deposits from the bank on this day, and for the purpcse of protecting the depositors of the bank, it becomes necessary for the Central Bank & Trust Company to close its doors, and therefore the undersigned directors do hereby order and direct that the Central Bank & Trust Company be closed immediately and that no further deposits be accepted. Done at 12:10 o'clock p. m. on this the 29th day of October, 1931. Geo. H. Davis, Cobb, A. C. Jackson, C. L. Burton, J. Curtis, Robert Carr, Jno. Kilgore, Albert Russell, B. D. Joyce, Jr., G. May, Coleman D. Shepherd, S. D. Kilgore, W. Dodd, R. Cranford. In connection with the above notice, Cobb states that he has been reliably informed that Mr. L. Cartwright, former bank examiner, with number of years actually banking experience, also with experiences as liquidating agent for several banks in the past, will be liquidating agent, and Cobb, assistant liquidating agent and in a few days the doors will be opened for the purpose of making collections in an orderly manner.

2. November 4, 1931 Daily Mountain Eagle Jasper, AL

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Article Text

JUST ANOTHER DEMOCRAT This happened in real life, not reel life; W. Davis, former Lieutenant Governor of Alabama, and foremost opponent of Gov. B. M. Miller in the last gubernatorial primary, visited Gov. Miller the other day to pay his respects. It happened after the Central Bank Trust Company of Jasper had been taken over by the State Banking Department for operation. After the formalities of the visit had been fin- Gov. Miller told his former opponent that the Banking Department would need an attorney to handle the affairs of the bank and tendered the place to Mr. Davis. It was accepted. A gracious act some may say. But W. Davis is one of the ablest in Alabama and one of the most loyal But it happened just the same and no announcement was ever made about gomery Advertiser, Nov.

3. November 4, 1931 Daily Mountain Eagle Jasper, AL

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Article Text

CENTRAL BANK CLOSED DIRECT Unexpected Run on Local Institution Caused it to Close for Protection of Depositors CASHIER BELIEVES ALL DEPOSITORS WILL BE PAID Closing of Bank Will be Great Inconvenience to Many Firms and Individuals As result of an unexpected run on the Central Bank & Trust Company. the directors closed that bank Thursday and it is now in charge of the State Banking Department. It was believed that the Central Bank Trust Company had about weathered the worst depression in the history of the nation, and would soon be in good shape, but many of the depositors became panicky and made unexpected run on it. and the directors decided to close it. Cobb. cashier. expresses the opinion that all depositors will be paid in full, but on account of present conditions collections will be slow. The closing of the Central Bank & Trust Company will be great inconvenience to many firms and individuals in Jasper and vicinity, that have all their surplus funds tied up there, but there is some consolation in the reports that all depositors will eventually be paid, probably 100 cents on the dollar. The run on the Central Bank & Trust Company caused the depositors of the First National Bank here to make run on that institution, and the First National kept open until m. Thursday, cashing every check presented by depositors. The run continued on Friday until almost noon, but there was as much money deposited Friday as drawn out. The First National is member of the Federal Reserve Banking system, but did not have to call on that institution for help. it is said. Time deposits cannot be withdrawn without the required 30 days' notice, however. The First National is said to be in sound condtion. however.

4. November 4, 1931 Daily Mountain Eagle Jasper, AL

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Article Text

NOTICE It has been rumored that some of the directors, employees, and officers, and one or two of the heavy stockholders, of the Central Bank & Trust Company, of Jasper, withdrew their balances short time before the bank closed its doors, October 29. 1931, thereby leaving the impression that these parties knew, or had cause to know, that the bank was going to close. In order to set at rest these rumors, have taken the trouble to secure list of these parties who had balances in the checking and savings department of the bank, verified entrances for several days before the closing date, and found that no withdrawals were made in my opinion, except in the regular course of business. Might add that several of the accounts referred to above, showed deposits two or three days before, and on the day the bank closed. (Signed) G. H. FOOTE, Examiner in Charge.