20558. Atwood Banking Company (Atwood, TN)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
January 8, 1927
Location
Atwood, Tennessee (35.973, -88.678)

Metadata

Model
gpt-5-mini
Short Digest
30031a16

Response Measures

Full suspension

Other: Depositors paid in full from state receivership funds nearly two years after suspension.

Description

Articles report that friends of the cashier, resentful after a boy's firecracker incident and ensuing court dispute, withdrew deposits causing a run that closed the bank on Jan 8, 1927. The bank went into state receivership for almost two years and paid depositors in full Nov 1928. There is no indication the bank resumed normal operations as an open bank; payment came through the state department in receivership.

Events (3)
1. January 8, 1927 Run
Cause
Bank Specific Adverse Info
Cause Details
Resentment/ill-feeling after a youth's firecracker arrest and the cashier not being re-elected led friends to withdraw deposits
Newspaper Excerpt
friends of the cashier withdrew deposits, causing a run that closed the bank
Source
newspapers
2. January 8, 1927 Suspension
Cause
Government Action
Cause Details
Bank closed and placed in receivership under the state banking department following the run/closure
Newspaper Excerpt
The bank failed on Jan. 8, 1927 ... in the hands of the state department
Source
newspapers
3. November 24, 1928 Other
Newspaper Excerpt
the Atwood Banking company ... today paid depositors and creditors 100 cents on the dollar and expects to pay interest on accounts and have substantial fund remaining for stockholders. H. Grigsby, state superintendent of banks, announced here Saturday.
Source
newspapers

Newspaper Articles (2)
1. November 25, 1928 The Knoxville Journal Knoxville, TN
Article from The Knoxville Journal, November 25, 1928

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Article Text

Bank "Busted" By Firecracker Pays Depositors, Money Is Left NASHVILLE. Tenn. Nov. (Spl.) The bank that "busted" because of the innocent shooting of a Christmas firecracker. the At wood Banking company, of Atwood, today paid depositors and creditors 100 cents on the dollar and expects to pay interest on accounts and have substantial fund remaining for stockholders. H. Grigsby, state superintendent of banks. announced here Saturday. The firecracker that caused the bank's failure is one of the most unique cases in the banking history. and almost two years or receivership has been because of the Christmas celebration of youth. Atwood had an ordinance against shooting firecrackers, and as the ier was arrested for exploding aday fun. 24, big 'cracker' during the Christmas holidays. The youth tried be fore magistrate and the father of the boy put up a bitter fight in the magistrate's court. the case causing ill-feeling among persons associated with the bank This ill-feeling continued in the directors' meeting and the cashier was not re-elected. In resentment. friends of the cashier withdrew deposits, causing a run that closed the bank This 100 per cent payment marks the second complete refund from banks in the hands of the state department within the month and the third in the history of the The bank failed on Jan. 8, 1927 after the firing of that shortly

2. November 25, 1928 Chattanooga Daily Times Chattanooga, TN
Article from Chattanooga Daily Times, November 25, 1928

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Article Text

BANK THAT BROKE FROM BOY'S PRANK PAYS UP IN FULL NASHVILLE Nov. The that "busted" because the innocent shooting of Christmas firecracker, the Atwood Banking company. of Atwood, Tenn. Saturday paid depositors creditors 100 on the dollar and expects to interest on accounts and substantial fund remaining for stockholders, H. Grigsby, superintendent of banks, announced here Saturday The firecracker explosion that caused bank's failure cases the of the state's banking most years of receivership because Christmas celebration of youth. Atwood had an ordinance against and the the son bank's cashier arrested explod"cracker" during the Christmas holidays. The youth tried magistrate and the father of the boy put up bitter fight in magistrate's court, the ill feelamong persons connected ing with the bank. This feeling continued in the directors meeting and the cashier not resentment friends of the cashier withdrew causing run that closed the bank's doors Jan 1927 This 100 per cent. payment marks the fund banks in the hands of the state department within the month, and the third in the hisof the banking department. The bank failed shortly after the firing of that costly firecracker innocent holiday fun.