20608. First National Bank (Columbia, TN)

View Charter #1713 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
1713
Charter Number
1713
Start Date
October 16, 1891
Location
Columbia, Tennessee (35.615, -87.035)

Metadata

Model
gpt-5-mini
Short Digest
540c716d

Response Measures

Capital injected, Full suspension

Other: Successor Columbia Banking Co. assumed liabilities and assets of First National Bank.

Description

Article (1891) describes a 'panic on the 16th of October', large currency withdrawals and falling deposits leading to failure; Columbia Banking Co. assumed the liabilities of The First National Bank and took all the assets, indicating the bank suspended and was taken over/closed. Dates in the 1891 article are internal (Feb, Apr, Oct) and the paper is dated Dec 18, 1891; I set the run date to 1891-10-16 (article references 'panic on the 16th of October'). No explicit suspension date given, and a trustee/assumption by Columbia Banking Co. indicates permanent closure/assignment.

Events (5)
1. September 27, 1870 Chartered
Source
historical_nic
2. July 14, 1885 Voluntary Liquidation
Source
historical_nic
3. October 16, 1891 Run
Cause
Bank Specific Adverse Info
Cause Details
Loss of depositor confidence due to large borrowings, falling off in deposits and heavy withdrawals by express checks; culminated in a panic on Oct 16.
Newspaper Excerpt
The tightness of money and want of confidence created by the necessarily large sum borrowed, causing a general rush, ending in a panic on the 16th of October. A large amount of currency was drawn out on checks sent by express.
Source
newspapers
4. * Receivership
Newspaper Excerpt
We are called on to report the condition of the bank and the causes of the failure...the Columbia Banking Co. assumed the liabilities of The First National Bank and took all the assets of said old bank.
Source
newspapers
5. * Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank was in unsound condition with falling deposits and doubtful assets; corporate successor (Columbia Banking Co.) assumed liabilities and assets, indicating suspension/closure.
Newspaper Excerpt
Columbia Banking Co. assumed the liabilities of The First National Bank and took all the assets of said old bank.
Source
newspapers

Newspaper Articles (2)
1. October 1, 1870 The Evening Telegraph Philadelphia, PA
Article from The Evening Telegraph, October 1, 1870

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Article Text

FROM WASHINGTON. Important Treasury Orders. Despatch to the Associated Press. WASHINGTON, Oct. 1.-New fractional currency will be forwarded by express from tife Treasurer's office under Government contract with Adams Express Company to any point within the territory covered by that contract, at the expense of the department, an amount of $500 or more, but not exceeding $1000 or an even multiple thereof by lesstha $500 on the following terms, viz. -In return for defaced and mutilated fractional currency of States notes series and United of 1869: United States notes of former issues, whether mutilated or not, and notes of banks which have failed or gone into liquidation, on the receipt of certificates of deposit to the credit of the Treasurer of the United States issued by Assistant Treasurers and designated depositaries of the United States, and national banks designated as depositaries, and on the receipt and collection of drafts on banks and bankers in Boston, New York, Philadelphia, and Washington. The Government contract with the Adams Express Company extends to and includes, all points accessible through established express lines reached by continuous railway connections within che United States, but does not extend beyond St. Paul, Minn., without direction. The restriction as to the amounts of remittances which may be made at the expense of the department under this circular extends to all remittances to or from the Treasurer, under Government contract with the Adams Express Company, and'have been prescribed for the reason that any fraction of one thousand dollars forwarded under that contract is charged as one thousand. Whenever any remittance less than five hundred dollars is forwarded from or to the treasurer under contract, the amount of the express charges thereon at contract rates is deducted from the remittance on the return therefor at the Treasurer's office, and similar deductions are made for any excess less than five hundred dollars over one thousand dollars or an even multiple thereof. The above regulations do not affect the right of postmasters, collectors of internal revenue, and their deputies to forward United States currency by express to the Treasurer for redemption in sums of one hundred dollars or more, at the expense of the department, under circular No. 4 of 1869. All packages forwarded under the contract should be plainly marked "forwarded under Government contract with Adams Express Company." Naval Orders. Lieutenant R. D. Hitchcock and Assistant Surgeon Homer T. Low are ordered to the North Atlantic fleet. First Assistant Engineer James H. Chasmar and Second Assistant William E. Sibley are ordered to iron-clad duty at Key West. Second Assistant Engineer Francis C. Burchard is ordered to the Congress. Captain William N. Jeffers is detached as a member of the Examining Board, and ordered to duty at the department. Lientenant. Commander L. J. Naile is detached from signal duty# and placed on sick leave. Lieutenant-Commander William H. Brice is detached from the receiving ship at Philadelphia and ordered to iron-clad duty at Key West. Army Orders. The following First Lieutenants of the army, unassigned, are relieved from duty as Indian agents, and placed on waiting orders:-William W. Mitchell, George Atcheson, and J. M. Kelly. The Freshet. The Chain Bridge above Georgetown has been washed away by the flood in the Potomac, and railroad travel between Washington and Alexandria is suspended by the insecurity of the bridges over the Potomac, several of the piers having been displaced. The Orange and Alexandria, Chesapeake and Ohio, and South Side Consolidated Railroads are seriously injured. Nearly all of the bridges have been carried away. Large quantities of flour, in barrels, and other. property, have been recovered while floating on the Potemac. Appointment H. R. Clum, of New York, has been promoted to the chief clerkship of the Indian Bureau and is now Acting Commissioner. National Banks Authorized. Despatch to the Associated Press. WASHINGTON, Oct. 1.-During the week ending yesterday, certificates were issued authorizing the following national banks to commence business: -First National Bank, Columbia, Tennessee: certificate issued Sept. 27: capital $100,000: John Frier. son, President, John B. Childress, Cashier. National Bank of Menosha, Wisconsin: certificate issued September 30: Capital, $50,000: Robert Shield, President, Henry Hewitt, Jr., Cashier. Salem National Bank, Salem, III., certificate issued September, capital 50,000, Josiah J. Bennett, President, Benjamin F. Marshall, Cashier. The following applications have been ap. proved:-Holden Mo., Smith. Cheney, and others: San Antonio, Texas, W. A. Bennett and others; Enfanta, Alabama, C.P. Wheeler and others: Osceola, Iowa, H. C. Zigler and others; St. Clair, Michigan, W. B. Barron and others; harlotte, Michigan, E. S. Lacy and others; Evansville, Wisconsin, M. Bennett and others; Mason, Michigan, H. L. Henderson and others: South Bend, John Brownfield and others: Lewistown, Illinois, G.S. King and others; Tuscola, Illinois, Wyethe, Cannon & Co. Payments for September. Civil and miscellaneous, $4,578,824-86; War, $4,594,548.08; Navy, $1,515,997.07; Indians and pensions, $6,543,969 Tota $17,233,359 12

2. December 18, 1891 The Columbia Herald Columbia, TN
Article from The Columbia Herald, December 18, 1891

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Article Text

Banking Co. assumed the liabilities of The First National Bank and took all the as sets of said old bank. The capital stock of The Columbia Banking Co. was fixed as shown in the minutes, at $150,000.00 Shortly after the organization of The Columbia Banking Co. J. C. Wooten had to his credit $50,000 and over as depositor of The Columbia Banking Co., for which J. C. Wooten received interest, part of the time, at 4 per cent and part at 5 per cent. It is due Mr. Wooten to state that the erasure in the stock subscription is explained by Mr. Wooten to have occurred shortly after the subscription was made-h believes the day it was made; but Mr. Frierson did not recollect when it occurred. The capital stock of this bank was advertised at $100,000, but unless this $50,000 is calculated, it does not appear it was all taken. But it appears that after making this subscription they concluded to just take the stock of The First National Bank and count this only, and dividends were paid only on this stock. But there has been no change of the stock of The First National Bank and none of these facts known to the public, and no stock issued by The Columbia Banking Co. to any one-not even one dollar. The following are the directors of The Columbia Banking Co.: J. M. Mayes, J. C. Wooten, Lucius Frierson, T. W. Keesee, Jno. M. Allen, H. B. Titcomb. J. M. MAYES, President. J.C. WOOTEN, Vice- Prest. LUCIUS FRIERSON, Cashier. No meeting of the directors, as shown on minutes, after July 18, 1886. W 0 find Mr. Wooten, Vice President. kept usually on deposit, from Sept. 1885 to June 1889, from $50,000 to $68,000. On June 21st 1889, it was reduced to $39,000, and on February 1890, was reduced to $24,000. On Feb. 7th, 1891, he had about $28,000 to his credit and loaned to Lucius Frierson and Columbia Banking Company $26,438.02. This was from money on deposit in Columbia Banking Co's Bank. As security for this he received a mortgage on what is known as the S. D. Frierson farm and the Rye House and lot and a number of good notes of the Columbia Banking Co. The farm is the property of the Columbia Banking Co.; was paid for by its assets, be ing claim against D. B. Cooper; and this mortgage of Mr. Wooten was not regis tered until after the assignment, and we think belongs as a part of the trust. That although it stood in name of Lucius Frierson it was or should have been well known to Mr. Wooten that it was paid for by the funds of the bank, that the loan was to the bank and it was the property of the bank. Subsequently, viz, about the 22nd of April 1891, some of the notes being taken up, Mr. Wooten made another loan and settlement with The Columbia Banking Co., the debt being then reduced to $17,500, and $21,000 of notes being placed as collateral. This did not take up the debt of $15,000 mort rage, SO there is outstanding to J. C. Wooten the $15,000 and $17,500, as shown it Some of the notes have been exchanged for other notes in the bank. We find Mr. Frierson' 8 total indebted ness of every kind and description, included in this all corporations of which he is a party and all endorsements, is e about the sum of $28,000. We find that Mr. Mayes has on deposit about $2,700, but is endorser on f several papers in bank. We find nothing irregular about the books of the bank, and although there are small overdrafts of the two clerks, e in fact very small overdrafts, their ac 8 counts are clean, and their salary would probably cover these overdrafts. We find nothing suspicious or irregular about the books of the bank, and no at shortage in accounts, the books being neat and well kept. We see no use to have an expert. We have worked day of and night for fully ten days, and have examined the affairs of the bank as d carefully as we can, and think we have gotten at the facts. Of course there might arise other liabilities by endorse ment that we can not see, and the ac10 count between The Bank of Columbia 00 reconciled. and Columbia Banking Co., must be g ANOTHER STATEMENT OF ASSETS AND LIABILITIES. Amount of assets found as $122,278 41 aper our report 77,000 27,720 Solvent Interest and unpaid stock 88 31,000 Dividends paid out n $257,998 as Interest on dividend paid 55,580 00 10 out se $263,578 41 S. This leaves a large amount of doubtrt ful assets for the stockholders, as the above will pay depositors. rAs Mr. Wooten has asubscription and holds the claims against the bank, one might be set off against the other d leaving all the property held by him to d belong to the bank. We are called on to report the condition of the bank and the causes of the 11 failure. We say: ce 1st. The condition of the First National Bank was not good. of 2nd. The stock subscribed to the Coed lumbia Banking Co., was not paid. 3rd. The tightness of money and want bc of confidence created by the necessarily or large sum borrowed, causing a general rush, extending back for a long time. ending in a panic on the 16th of October he 4th. A large amount of currency was drawn out on checks sent by express. 5th. It appears there was a great fallon ing off in deposits. The last 30 days show ng the ing $25,000 bank. more drawn out than put in or There is also an asset in the form of 78, some walnut in North Carolina, not es counted in this estimate. The state ment of the condition of this bank by rt officers, as required by law, has not in been published so far as we can find As Mr. Wooten was director we do not think he could withdraw his deposit nd to injury of the other depositors. As will be seen from the communica nt, tion of Mr. Frierson he has expressed iswillingness to resign his trusteeship the depositors desire to have some on more competent to bring suit against the stockholders and directory, for the reason he has set forth. nd We the committee advise this resig he nation be accepted and Mr. R. C. Church be substituted as trustee. Mr. Church ast did not make this suggestion, but W or the committee find him an efficient and competent man and he is now wel acquainted with the affairs of the bani ur from close investigation. We also ad a vise that Mr. Frierson be continued ve assistant to Mr. Church. ng JOSEPH TOWLER, Ch'm. W. H. WILSON, Sec'y. er ROBERT C. CHURCH. WM. J. WEBSTER. D. A. Davidson. he W. M. Cathey. ked, asMr. Frierson Resigns His Trusteeship on Co. are lumbia To the Banking committee of examination Co Gentlemen: Since my qualification a m Trustee, it has trequently come to her that in the settlement of the trust, me might stand in an awkward position that confronting myself as truste