18826. Bank of Portsmouth (Portsmouth, VA)

Bank Information

Episode Type
Suspension โ†’ Closure
Bank Type
state
Start Date
January 1, 1931*
Location
Portsmouth, Virginia (36.835, -76.298)

Metadata

Model
gpt-5-mini
Short Digest
2cc8e51534e5ebf0

Response Measures

None

Description

Article 1 (Cedar Rapids Outlook, 1931-09-03) describes the Bank of Portsmouth as a failed state bank in receivership with a receiver (Frank Lawrence) distributing a 10% salvage to creditors after insolvency and a shortage. This indicates a suspension/closure and receivership (permanent closure). Article 2 (New Journal and Guide, 1932-08-06) discusses a Negro bank in Portsmouth that was closed by the chief bank examiner in January 1931 and later reopened after depositors and community action; the text is ambiguous and may refer to a different (Negro) institution, not necessarily the same Bank of Portsmouth mentioned in Article 1. Because the Bank of Portsmouth is described as failed and in receivership with distributions underway, I classify the episode as a suspension that resulted in closure/receivership. Dates are approximate where the article does not give a precise day; OCR errors in the clips were corrected where obvious (e.g., Receiver, insolvency, shortage).

Events (3)

1. January 1, 1931* Other
Newspaper Excerpt
The local Negro bank closed was of the chief bank examiner January 1931. ... Suffice the bank reopened. ... Hundreds rushed withdraw all their funds. ... ministers ... secured waivers $80,000. ... the bank reopened.
Source
newspapers
2. March 1, 1931* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank described as failed/insolvent with a named shortage (Larkin shortage) and placed in receivership; receiver distributing salvage checks (10%).
Newspaper Excerpt
creditors Four thousand depositor Bank of Portsmouth, the failed State ... Receiver of salvage checks ... distribution ... around $36,000 ... insolvency ... Larkin shortage the wrecked bank.
Source
newspapers
3. September 3, 1931 Receivership
Newspaper Excerpt
Receiver Lawrence will commence to ... distribution ... ten cent per cent distribution checks ... prepared ... distribution ... about $36,000 ... in the hands of the receiver ... efficient manner ... of the defunct ... receiver of the wrecked bank.
Source
newspapers

Newspaper Articles (2)

Article from Cedar Rapids Outlook, September 3, 1931

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Article Text

creditors Four thousand depositor Bank of Portsmouth, the failed State checks in ten week receive are this losses, should salvage on their cent per Frank Lawrence, feel grateful to very State Bank, for of the defunct receiver, which he has efficient manner in the in his hands handled the trust placed Court of HustBain, of the Judge K. following discovery ings, immediately and the insolvency the Larkin shortage the wrecked bank. of his office in the Thursday at Beginning Bank, High and American National Lawrence will comdle streets, Receiver of salvage checks, the distribution mence to something amounting in the aggregate This distribution comes around $36,000. months after remarkably within eight State Bank doors. the of the closing bank failures in in the history of Never has there ever before come Virginia to creditors under year's distribution receivership. of the affairs of the Efficient handling of sharp State Bank, the application down of trust economies, and the holding of every expense brought about the present kind, has sult. For it all, Receiver Lawrence deserves warmest not only from benefited, but those who are directly from the public at large. for the benefit Receiver Lawrence in whose behalf ten State Bank creditors, per cent distribution checks have been be hand at his prepared, will not only on banking hours, beginning during for the distribution Thursday, checks, but for the of those who cannot come in banking time, will remain at his desk until six o'clock to Saturday, March in the evening up he will hold his office which date on National Bank until the American open Bank deposits amountThe total State to something like at the time closed. About the bank's doors were of however, was absorbed $36,000 this, the part of depositors obligations on which, under the statutory to the bank, became an offset law of Virginia, total deposit credits In this way posits. $360,000. Thus the total reduced to were distribution at this ten cent salvage per time of $36,000.


Article from New Journal and Guide, August 6, 1932

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Article Text

The FEW more examples of what have been witnessing and the world agreeing that the Negro child child cannot boast long line of distinguished achievement stretching three, five, seven hundred members have not learned to work together for common that eagerly begin will eagerly duck for shelter from any to seeing the enterprise to end. But consider this Negro who has come manhood right before Carter Woodson and association for the study of Negro history appeals the country support. The appeal upon most Instead collecting the dollars they ask, they secure paltry to exist But they stop the disgust? They do They keep with the good work. Funds funds, they make the needed sacrifices and on with the work. go Also, there is the Virginia College. Vernon Johns has made plain him that he coming institution that balance hand the insistent creditors. But he portunity historic lege. he perfectly good job secure remuneration of about hundred dollars accepts the presidency of the Seminary promise of thousand dollars Immediately he beset individwho do all within their power make his task Does resign huff and issue lengthy release the being ready to attempt higher education? through whimpering until both friends opponents come admire his spirit his support. Our local Negro bank closed was of the chief bank examiner January 1931. The conditions he down and which had to be met the institution to reopen sure financial interests that this spelled the end of Negro bankfor this they tually began dicker plan for taking over the But property. hundred and Negroes all walks of life joined their efforts appealing the great mass depositors face the uation with Suffice the bank reopened. Then followed watchful waiting could actually stay Nereally their fidence restored. The deposito forty the these have passed without the least sign In spite of been denied the having their monies eighteen months, did they rush check them all they had the They did They courageously displayed their dence their officers and other making only the most servative their privilege check. And now comes the from Washington, photostatic copy which the the Bank. have started anybody's bank. Hundreds rushed withdraw all their funds. Did that bank's officials and and the They their president, Dr. John staged comeback that imagination. plead with the panic-driven while proper officials cashing their checks and the troller the charge receiver. hours the close banking hours they held spirited meeting and secured waivers $80,000. The local paper with extra edition advising faith and The ministers courage. followed the same course from their pulpits that Sunday. And behold! since Prudential and doing business. Negro ington rallying as has not done since the days the riot when they had fight for their homes and Thank God for this knows how fight when his back against the wall, occasion and snatch In of Hovey Editor, Journal and Guide: Allow hearty express my Dr. Gordon Hancock for fine on Union University in recent The that said, for Union and Clark, unanimously endorse, hesitate to sound single note. But the in the ointment" the that Hovey catered the color the South. In state admits that the sinuation adduced hearsay evidence. Such evidence, though, most cases gerous insidious. that Dr. Hovey held membership two white Richmond. those conceived in Negrophobia, they dedicated the position that Negro rights which the white bound Some of the men who made those clubs now the Interracial Committee. Some trustees Union. Now claim that Dr. Hovey had perfect concept bi-racial situation. man among white perfect Do not all through glass As illustration of how this question, Washington charged and season, with the crime of catering southern ment. maledictions been heaped upon head of Dr. Robert Moton. And George Schuyler others the editor The Lines" in the same But did Dr. Hovey cater the South the race question? Here the facts: early years the when iment South Dr. George Rice Hovey, the the eminent theologian, Alvah Hovey, graduate Brown University and of Newton Seminary came time almost any kind tion adjudged to be too good for the Negro. He and the temerity and audacity address himself to the giving higher education slaves the citadel the Confederacy. He came when King and Joshua making in ington, "look forth the and Corey Jones making Richmond stitute as "bright the and Tefft Carrie Dyer Hartshorn "terrible with banners." For ten years during the presidency Hovey, student Virginia Union. There tended for the highest and the scholarship and for students. There him, characteristic Hovey fashion, greet his students both campus and on the streets of by tipping his hat. Portsmouth, Va. No Cause For Panickiness Editor, Journal and Guide: During the past few months files have notations many the affairs of enterprises and, regrettable may the phrase, the hands of Receiver,' has become quite miliar. the laymen are not miliar with procedure they should be, the above phrase dicates them something terrible: something complete failure; and creates panicky and unstable towards Negro busiin general. This should into the hands of the Receiver," does not complete failure. Many the greatest enterprises the country, particularly transportation systems; the general utility corporations, have time another been the hands the receiver pending and ternal adjustment and tion affairs. ailing person goes doctor sanatorium for treatment. Some not go until their physical condition forces such action but the person goes when discovers first ailing symptom. Just with degree of largely acuteness the and This not time for the people, Negroes especially, become terical first signs seeming business In fact should just the opposite. We should study deeply and prejudice of facts concerning the and throw towards the individuals needing their aims and efforts worthy of MITCHELL