18209. National Bank (Shelbyville, TN)

View Charter #2198 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
2198
Charter Number
2198
Start Date
November 2, 1889
Location
Shelbyville, Tennessee (35.483, -86.460)

Metadata

Model
gpt-5-mini
Short Digest
d674e5b7f2229310

Response Measures

None

Receivership Details

Depositor recovery rate
30.2%
Date receivership started
1889-12-13
Date receivership terminated
1892-04-26
OCC cause of failure
Fraud
Share of assets assessed as good
1.3%
Share of assets assessed as doubtful
67.8%
Share of assets assessed as worthless
30.8%

Description

Contemporary reports (Nov 1889) state the National Bank of Shelbyville suspended operations after related failures (Frankel at Shelbyville and Buchanan at Huntsville). Officers paid out deposits and refused new business; later (Mar 1890) receiver filed bills to wind up affairs. Cashier later indicted (May 1890). No article describes a depositor run prior to suspension — the action appears to be a suspension followed by permanent winding up/receivership.

Events (5)
1. October 29, 1874 Chartered
Source
historical_nic
2. November 2, 1889 Suspension
Cause
Local Banks
Cause Details
Suspension attributed to the Frankel failure at Shelbyville and Buchanan failure at Huntsville, which undermined the bank's position; officers paid out deposits and refused to take more.
Newspaper Excerpt
The National bank of Shelbyville, Tenn., has suspended on account of the Frankel failure at Shelbyville and Buchanan failure at Huntsville, Ala.
Source
newspapers
3. December 13, 1889 Receivership
Source
historical_nic
4. March 22, 1890 Receivership
Newspaper Excerpt
Under instructions from the Comptroler of the Currency bills have been filed ... to wind up the affairs of the National Bank of Shelbyville, which suspended some months ago. The bills, three in number, are filed in the name of J. M. Melton, receiver of the bank ... (Huntsville Gazette, 1890-03-22).
Source
newspapers
5. May 10, 1890 Other
Newspaper Excerpt
B. R. Whitthorne, late cashier of the National Bank of Shelbyville, Tenn., was indicted ... One indictment charges Whitthorne with perjury in swearing to false reports to the Comptroler of the Currency. The other charges him with attempting to defraud the bank. The National Bank of Shelbyville suspended several months ago ... liabilities ... in the neighborhood of $70,000.
Source
newspapers

Newspaper Articles (6)
1. November 7, 1889 The Russellville Democrat Russellville, AR
Article from The Russellville Democrat, November 7, 1889

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Article Text

Bank Suspension. One of the surprises in financial circles in Nashvile, Tenn., and that vicinity recently was the suspension of the National Bank of Shelbyville, of which Hon. Edward Cooper is president and Brom. B. Whitthorne cashier. This bank had been considered a solvent institution, but for several weeks its paper had been allowed to go to protest. A few days ago the officers of the bank saw that failure was inevitable. They paid out all deposits to depositors and refused to take more. They also began to take up the paper of the bank, substituting personal notes secured by mortgage. Mr. Whitthorn has mortgaged his entire personal estate to save the creditors and stockholders of the bank. No creditor will lose a dollar.

2. November 7, 1889 The Brookhaven Leader Brookhaven, MS
Article from The Brookhaven Leader, November 7, 1889

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Article Text

Bank Suspension. One of the surprises in financial circles in Nashvile, Tenn., and that vicinity recently was the suspension of the National Bank of Shelbyville, of which Hon. Edward Cooper is president and Brom. B. Whitthorne cashier. This bank had been considered a solvent institution, but for several weeks its paper had been allowed to go to protest. A few days ago the officers of the bank saw that failure was inevitable. They paid out all deposits to depositors and refused to take more. They also began to take up the paper of the bank, substituting personal notes secured by mortgage. Mr. Whitthorn has mortgaged his entire personal estate to save the creditors and stockholders of the bank. No creditor will lose a dollar.

3. November 9, 1889 Huntsville Gazette Huntsville, AL
Article from Huntsville Gazette, November 9, 1889

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Article Text

Bank Suspension. One of the surprises in financial circles in Nashvile, Tenn., and that vicinity recently was the suspension of the National Bank of Shelbyville, of which Hon. Edward Cooper is president and Brom. B. Whitthorne cashier. This bank had been considered a solvent institution, but for several weeks its paper had been allowed to go to protest. A few days ago the officers of the bank saw that failure was inevitable. They paid out all deposits to depositors and refused to take more. They also began to take up the paper of the bank, substituting personal notes secured by mortgage. Me. Whitthorn has mortgaged his entire personal estate to save the creditors and stockholders of the bank. No creditor will lose a dollar.

4. November 9, 1889 The Ohio Democrat Logan, OH
Article from The Ohio Democrat, November 9, 1889

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Article Text

On Account of the Frankel Failure. NASHVILLE, Tenn., Nov. 2.-The Na. tional bank of Shelbyville, Tenn., has suspended on account of the Frankel failure at Shelbyville and Buchanan fail. ure at Huntsville, Ala. All liabilities have been paid and the only losers are the officers of the bank, who have given personal notes to secure depositors and other creditors.

5. March 22, 1890 Huntsville Gazette Huntsville, AL
Article from Huntsville Gazette, March 22, 1890

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Article Text

A Tennessee Bank Failure. Under instructions from the Comptroler of the Currency bills have been filed in the United States Circuit Court at Nashville, Tenn., to wind up the affairs of the National Bank of Shelbyville, which suspended some months ago. The bills, three in number, are filed in the name of J. M. Melton, receiver of the bank, and the defendants are banks in Nashville, Cookeville, Sparta, Newbern, Petersburg, Tullahoma, McMinnville and Bellbuckle, Tenn., Louisville, Ky., Leadville, Col., Athens, Ala., and Exchange Bank of Springfield, Mo., and individuals in several States.

6. May 10, 1890 Huntsville Gazette Huntsville, AL
Article from Huntsville Gazette, May 10, 1890

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Article Text

Ex-Cashier Whitthorne Indicted. B. R. Whitthorne, late cashier of the National Bank of Shelbyville, Tenn., was indicted in two cases by the grand jury of the United States Court, in session in Nashville. One of the indictments charges Whitthorne with perjury in swearing to false reports to the Comptroler of the Currency. The other charges him with attempting to defraud the bank. The National Bank of Shelbyville suspended several months ago, and bills were recently filed by the receiver looking to a settlement of its af. fairs. The liabilities of the bank are in the neighborhood of $70,000.