20086. American State Bank (Gaffney, SC)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: February 13, 1930
Location: Gaffney, South Carolina (35.072, -81.650)

Metadata

Model: gpt-5-mini
Short Digest: 8b60235b

Response Measures

Full suspension, Books examined

Other: Liquidation/receivership followed closure; dividends later paid to depositors.

Description

A sudden heavy run in mid-February 1930 swept away the bank's cash reserve; state bank examiners ordered the institution closed and it was placed in liquidation/receivership (liquidating agent and co-receivers named in subsequent months). Cause appears linked to developments in other local banks/related business failures (First National's loss, Globe Manufacturing receivership) and the death of a local banker which undermined confidence.

Events (4)

1. February 13, 1930 Run

Cause: Local Banks
Cause Details: Run intensified after news connected with First National's loss and the Globe Manufacturing company's receivership (and the death of Maynard Smyth), producing sudden large withdrawals that swept away the bank's cash reserve.
Measures: State bank examiners and directors ordered the bank closed after cash reserve was exhausted; attempted reorganization/last-minute efforts failed.
Newspaper Excerpt: Heavy Withdrawals DevelopSuddenly Sweep Away Cash Reserve of $100,000.
Source: newspapers

2. February 13, 1930 Suspension

Cause: Government Action
Cause Details: State bank examiners took charge and ordered the bank closed after cash reserves were swept away by withdrawals.
Newspaper Excerpt: bank examiners who were making regular ordered the institution closed.
Source: newspapers

3. March 7, 1930 Receivership

Newspaper Excerpt: Five co-receivers serve ... in liquidating the American State Bank were named by the depositors and creditors meeting here today. A. W. Love ... Application for appointment of these men will be made Monday before Judge T. Mauldin here.
Source: newspapers

4. June 28, 1930 Other

Newspaper Excerpt: First dividend checks for persons deposits with the branches American State Bank ... the main bank ... liquidating agent ... First dividend will be 25 ... Major Henry Moore, liquidating agent, has announced.
Source: newspapers

Newspaper Articles (7)

1. February 14, 1930 The Greenville News Greenville, SC

Article from The Greenville News, February 14, 1930

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Article Text

GAFFNEY BANK IS FORCED American State Shuts Doors After Heavy Run-Reorganization Fails GAFFNEY, Feb. 13.-Failure of last minute effort at tion in the face of sudden heavy resulted in closing of the American State bank here The doors were minutes after Pridmore been elected president to D. C. Ross. resigned at special meeting of the cash reserve of proximately $100.000 was swept away in few minutes by the presentation of checks for large amounts. and bank examiners who were making regular ordered the institution closed. Steady withdrawals had been going on for several was stated by officers. Deposits total ling $953 588 when statement condition was issued December had shrunk to around 000 today. according to Mr. Ross. who expressed the opinion that the depositors will not lose penny. became increasingly heavy from the American State er the death of Maynard Smyth president of the First by pistol shot January 14. followed by the discovery that the First Nat ional had suffered loss of 000 Mr. Ross and Mr Smyth both were directors of the Globe Manufac ing company. of Gaffney. which was placed in the hands of a ceiver January 20 on petition alleging that its indebtedness was in excess of $400,000. State Bank Examiner Albert S Fant and W. R. Watkins. his assistant. took charge of the American State today.

2. February 14, 1930 The Greenville News Greenville, SC

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Article Text

Bank Of Chesnee In Examiner's Hands SPARTANBURG, Feb. The Bank of Chesnee, of Chesnee, 20 miles northwest of here placed its affairs in the hands of the state bank examiner at directors meeting at o'clock tonight. The institution lost a number of deposits when the Dollar Savings bank and the Carolina National bank of closed December 30, but the directors were able to restore confidence and stabilize matters until today when the failure of the Rutherford county banks and the American State bank at Gaffney. rendered the situation too acute for the Chesnee bank to continue operations. The deposits, at close of business yesterday, amounted to $228,793.26 showing decrease of about $106,000 since the published statement of December 31, 1929; capital stock of the bank was $50,000. surplus $20,000 and bills payable none.

3. February 14, 1930 The Daily Review Clifton Forge, VA

Article from The Daily Review, February 14, 1930

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Article Text

SECOND BANK CLOSES. Gaffney, First National Bank Gaffney failed to doors today, being the secbank in the city to close two The American State Bank closed Thursday. This leaves only the county, the Merand Planters National, which doing business against heavy today.

4. February 15, 1930 The Washington Herald Washington, DC

Article from The Washington Herald, February 15, 1930

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Article Text

GAFFNEY S. C.. Feb. 14 (U. The second Gaffney bank to close in two days was in the hands of bank examiners tonight. The First National Bank of Gaffney failed open today. Yesterday the American State Bank closed The Merchants and Planters National Bank. the only one remaining open in Cherokee county had withstood a heavy run late today.

5. February 15, 1930 The Gaffney Ledger Gaffney, SC

Article from The Gaffney Ledger, February 15, 1930

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Article Text

AMERICAN STATE BANK CLOSES DOORS THURSDAY Heavy Withdrawals DevelopSuddenly Sweep Away Cash Reserve of $100,000. EXAMINER INVESTIGATING AFFAIRS Fant Says Full and Complete Statement Will Be Made Soon Work is Finished. as sudden run by few large depositors following steady withdrawals over the past few weeks forced The American State Bank to close 10:30 o'clock The institution was en over by State Bank Examiner Albert Fant and his assistants. Mr. Fant yesterday issued the following statement: American State Bank Gaffney, and its branches Blacksburg and Cowpens, hands the State Banking Department for period thirty days, during which time the fairs will thoroughly gone and an audit made, when completed the depositors creditors, well the public advised condition its necessarily will be several before statement Mr. Fant said. Closing Unexpected. The closing of American State shock to the general public. Outside appear ances indications of the that progress. One entered the build and made deposits. One these Settlemyer, known business man, said later that he barely had time walk block after his deposit before the doors locked. stated later that was made deposits during the hour and half the bank was Thursday morning their money back without delay. While the depositors anything several the larger presented for ranging from $5,000 $25,000 within few minutes. cash reserve approximately which vaults opening was swept away. Directors bank examiners promptly dered bank closed. Ross Ten minutes before the bank Colonel organized the bank than years ago and who been president tenhis resignation meeting directors. resignation was Grocery Company. was elected succeed Colonel Ross. in perate effort Reports of large withdrawals. however, made impossible to continue operat- large withdrawal Thurs morning had total deposits from December around $450,000 when the bank Colonel Ross said. The statement dition issued that time showed with capital stock aggregating The American State ganized by Mr. Ross little years ago. He resigned the of the presidency First National start the bank. new six seven years the ago American State took the Carolina another which operated here for time and which got ficulties, about three years the American State branch Blacksburg year ago the bank opened Storm Relief. Columbia Feb. Foster introduced the House tonight proposcreate storm relief for Spartanburg The commission would composed the auditor, the treasurer the colspecial tax lector. The would application for relief from county taxes due the county year from who tained at least products Woodruff last Banker Sentenced. Charlotte, Feb. After submitting charge of $48,000 from American Trust Company Howard Davenport, forvice-president of the bank. today sentenced to seven years the state trail Superior court afternoon, the case Judge passed the

6. June 28, 1930 The Gaffney Ledger Gaffney, SC

Article from The Gaffney Ledger, June 28, 1930

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Article Text

PLANS DIVIDEND CHECKS TO BE MAILED SOME. To Depositors in Branches and These Residing Outside the County; Others to Call. First dividend checks for persons deposits with the branches American State Bank Blacksburg Cowpens the main bank Gaffpersons reside Cherokee county will be mailed July the who proven claims, Maj. Henry Moore, liquidating agent, has announced. Gaffney Cherokee county people having accounts with the main bank requested by the agent call the bank building here next Tuesday, soon convenient, dividend The first dividend will be 25 payable proved their claims on before June The American State Bank had approximately 3,300 claim counts when closed February Approximately claims have been according Moore. reserve will care for claims that may the future, when time final dividend money hand will be pooled distributed pro to proven credMajor Moore said the decision the dividend checks depositors residing outside of Cherokee county and to depositors the and Cowpens had made by the receivers these the necessity making the bank. that the depositors living Gaffney be glad for their checks.

7. August 16, 1931 Battle Creek Enquirer Battle Creek, MI

Article from Battle Creek Enquirer, August 16, 1931

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Article Text

Ask Additional Bank Receivers Five Co-Receivers in Gaffney Failure to Be Asked of Judge Mauldin. Gaffney. S. C., March 7.-Five COreceivers serve without pay in liquidating the American State Bank were named by the depositors and creditors meeting here today. They are A. W. Love, Kings Creek: Dr. Till Martin. Cowpens; and Dr. C. Jefferies. W. A. Turner and J. N. Lipscomb, Gaffney Application for appointment of these men will be made Monday before Judge T. Mauldin here. Each will be required to give $25,000 bond Albert H. Fant. State bank examiner. reported the bank has $507.800.32 on deposit, loans totalling $538.604 16. and resources of $680.970.31 including approximately $80.000 cash on hand A dividend of 12 to per cent can be paid depositors without delay, Mr. Fant said. A detailed report on the management of the bank will be submitted to the Cherokee County Grand Jury which meets March 17, Mr. Fant stated.