20866. First National Bank (Murfreesboro, TN)

View Charter #1692 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
1692
Charter Number
1692
Start Date
January 25, 1932
Location
Murfreesboro, Tennessee (35.846, -86.390)

Metadata

Model
gpt-5-mini
Short Digest
8a61aebd

Response Measures

Full suspension

Other: Receiver appointed and bank assets liquidated; multiple legal actions by receiver follow.

Receivership Details

Depositor recovery rate
75.0%
Date receivership started
1932-02-01
Date receivership terminated
1938-06-21
Share of assets assessed as good
47.0%
Share of assets assessed as doubtful
31.1%
Share of assets assessed as worthless
21.9%

Description

A brief run on Jan 25, 1932 led to the bank's doors being closed/suspended; a receiver (George E. Farmer) was appointed in early Feb 1932 and the bank remained closed thereafter while the receiver handled assessments, asset dispositions and distributions to depositors. No reopening is indicated in the articles.

Events (8)
1. May 7, 1869 Chartered
Source
historical_nic
2. January 25, 1932 Run
Cause
Bank Specific Adverse Info
Cause Details
Depositors made heavy withdrawals that depleted the bank's cash; receiver later reported cash fell from ~$74,140 to $4,287 between Dec 31 and suspension.
Measures
Bank suspended operations/closed its doors (suspension) and subsequently went into receivership.
Newspaper Excerpt
Run Closes Bank. MURFREESBORO, Tenn., Jan. 25. The First National Bank of Murfreesboro, $200,000 capital, surplus closed today after brief run by depositors
Source
newspapers
3. January 25, 1932 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension followed heavy withdrawals that exhausted available cash despite assets exceeding liabilities on paper; bank closed its doors and suspended payments.
Newspaper Excerpt
The First National Bank of Murfreesboro ... closed today after brief run by depositors
Source
newspapers
4. February 1, 1932 Receivership
Source
historical_nic
5. February 4, 1932 Receivership
Newspaper Excerpt
George ... has been appointed receiver for First National Bank of Murfreesboro ... This change in the status of the bank's affairs ... would not hinder the from resuming operations, should the committee succeed ... making the arrangesaid.
Source
newspapers
6. March 15, 1932 Other
Newspaper Excerpt
First National Bank Receiver Calls on Stockholders For ASK S SPEEDY PAYMENT ... notice of assessment to the stockholders of the First National Bank which went out yesterday ... calls for ... to be paid by April ... extension of three months ... the reopening committee ... reorganization plans of the closed bank were meeting good success.
Source
newspapers
7. March 17, 1932 Other
Newspaper Excerpt
First National Bank Assets Nearly $300,000 More Than Liabilities When Collapse Came, Audit Report Shows ... it will be noted that on December 31, cash and its equivalents, on hand totaled $74,139.98; that amount had been reduced to $4,287.25 by the time the doors of the bank were closed.
Source
newspapers
8. December 24, 1932 Other
Newspaper Excerpt
Makes $8,500,000 Available As Dividends For 59 Closed National Banks ... First National, Murfreesboro, Tenn. listed among institutions getting funds
Source
newspapers

Newspaper Articles (11)
1. January 26, 1932 The Charlotte Observer Charlotte, NC
Article from The Charlotte Observer, January 26, 1932

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Article Text

WORLD BULLETINS Wet Salesmen Visit Finns. 25.-(P)-A small army agents of foreign wine houses has invaded Helsingfors as consequence of the recent vote against continuation of prohibition. Many Return to Work. ALBANY N. Jan. 25. (AP) Seventeen hundred men returned to work in the west A1bany locomotive shops the New York Central railroad today. Jobs For 400 More. BUFFALO, N. Y., Jan. 25. (AP) The Consolidated Aircraft corporation announced today it would on additional employes within the next few months as result orders which assured full production during 1932. Run Closes Bank. MURFREESBORO, T n n., Jan. 25. The First National Bank of Murfreesboro, $200,000 capital, surplus closed today after brief run by depositors Edith Gould Gets Divorce. RENO, Nev., Jan. 25. The former Edith C. Gould was Carroll Livingston New York artist, on grounds of mental cruelty. She given enstody of three minor children. Sixty Chickens Martyred. CLARKSBURG. Tenn., Jan. 25 (UP)-Sixty chickens were martyred here when Mrs. Ray Ford lost her $125 diamond ring. Someone suggested chicken might have swallowed it and every of the flock was killed without result. The fowls were dressed and peddled from door to door. Night Club Gamblers Robbed. MIAMI, Fla., Jan. Hidden behind women's brown silk stockings tied around the lower part of their faces four armed men held up gamblers Hialeah night club early today and escaped with $600. Goat Swallows $10. CLARKSBURG, Tenn., Jan. 25 -(UP)-Henry Mathis' goat swallowed ten dollar bill he dropped. The bill was recovered in mortem performed immediately and was exchanged at bank Sheriff Must Answer. ALBANY. N. Y., Jan. 25 (UP)-Governor Roosevelt tonight announced he has called upon Sheriff Thomas M. Farley New York county to answer charges filed by Judge Samuel Seabury. council to the Hofstadter investigating committee. Flaming River Dammed. HARRODSBU RG, Ky. Jan. 25 Flaming oil that flowed down creck through Harrodsburg late today was dammed be. fore it reached the Standard Oil plant with 40,000 gallons of gasoline. Several oil tanks were stroyed and number of small houses. More Than 1,000 Killed. NEW YORK. Jan. The New York Sun said today unconfirmed private dispatches received from Salvador told of the killing over the of 1,000 more persons in the uprising laid to Roosevelt to See Smith. Franklin D Roosevelt and former Governor Alfred E. Smith are to have friendly meeting here February 12, was revealed tonight. The meeting was regarded the gesture of friendliness the Georgian Shares Estate. NEW YORK Jan. 25.-(P)Louis Bercksman of Augusta Ga., $25,000 from the es. tate of Samuel D. McGorkey, who died September 30. 1930 transfer tax appraisal filed today showed. Bay State Budget Cut. Governor Joseph B. Ely submitted his 1932 budget to the legislature and in it for per salary cut for all state employes $2.000 more annually. He estimated saving of $570,000 would result. May Reduce Reward. OKLAHOMA CITY Jan. Oklahoma may to reduce the 000 reward offered for the arrest of Charles Arthur (Pretty Boy) Floyd to $500 cause the state's extraordinary protection fund almost hausted Gov. illiam Murray indicated Floyd is charged with numerous bank robberies and killings. Smith Heads Marine Body. Berrish Smith, president of the national council of American shipbuilder, today was elected chairman of the executive board of the American marine standards committee. Board members for 1932 include Homer L. Ferguson. Newport News, Va Ilsley Estate $200,000. An estate valued at more than $200.000 listed in the will Mrs. Agnes Boeing Ilsley ho with her maid January 13 on her estate at Middleburg Va. The document was admited to probate today. Levee Threatened. Jan. -Danger of break of the imminent today as flood waters pounded the old levee where it was tied in the new levee R. and land said the situation

2. February 4, 1932 The Rutherford Courier Smyrna, TN
Article from The Rutherford Courier, February 4, 1932

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Article Text

First National Receiver Appointed the time for The Courier to with this issue nounced that George prominent banker Nashville, has been appointed receiver for First National Bank of Murfreesboro Mr. Farmer also receiver for the Phoenix National Bank at Columbia, and of best known bank men in the country This change in the status of the bank's affairs would no hinder the from resuming operations, should the committee succeed making the arrangesaid.

3. March 15, 1932 The Daily News-Journal Murfreesboro, TN
Article from The Daily News-Journal, March 15, 1932

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Article Text

ASSESSMENT SPECIAL COMMITTEE First National Bank Receiver Calls on Stockholders For ASKS SPEEDY PAYMENT Reorganization Group To Continue with ReopenPlan. The notice of assessment to the stockholders of the First National Bank which went out yesterday and which contained in an in issue of the came great surprise to the reopening mittee as well local citizens and right the time when reorganization plans of the closed bank were meeting good success. Three of the special reorganization committee this morning when interviewed by representarefused to comment on the notice by George Farmer, receiver for the bank, which calls for 000 to be paid by April However, extension of three months grantin the payment of of (Continued on

4. March 17, 1932 The Rutherford Courier Smyrna, TN
Article from The Rutherford Courier, March 17, 1932

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Article Text

First National Bank Assets Nearly $300,000 More Than Liabilities When Collapse Came, Audit Report Shows PRESSES OPINION THAT HEAVY RUN EXPERIENCED BY FIRST NATIONAL BANK WOULD SWAMP MOST ANY BANK Through the kindness of George Farmer, for the First National Bank of Murfreesboro The Courier has been supplied with a statement of the condition of the institution at the time it collapsed on January 25, of this year. The receiver's statement, in brief, is as follows: 436.21 142,866.00 Total $1,402,373.90 Due to his position, Mr. Farmer could not enter into a discussion of the showing which he very kindly had prepared for publication. In an column the sworn statement of the conditi of the bank as of December 31, just 25 days before the failure, is as matter of information and for comparison. It will be noted that on December 31, cash and its equivalents, on hand totaled $74,139.98; that amount had been reduced to $4,287.25 by the time the doors of the bank were closed. The difference is approximately $70,000. On December 31, resources totaled When the receiver took charge the resources amounted to $1, showing decline of $231,165.97. An entirely disinterested financier, after noting the receiver's report, as published in The Nashville Tennessean, and comparing it with the bank's statement of December 31, has expressed the opinion there are but few banks that could withstood the run on its that the First Naional Bank of had, evidently experienced between December 31 and the date on which it suspended. He attributes the suspension the institution to the depositors, and believes that the bank would have pulled through all right had its cash balance been permitted to remain at normal It shown by the receiver's statement that at the time the First National closed assets totaled $74,139.98 more than the liabilities. In this connection, it is pointed out that the bills receivable at the time of the failure, $1,501,553.07. no doubt include loans made on good risks, some of which may not yet be due, and that in other cases collections might be difficult, due to present economic conditions. The disinterested financier shows that there is nothing else that bank can do but suspend when demand is made upon it for more money than it can immediately realize from its papers. These loans, he shows, are intended to bring in interest, the bank's main source of revenue, and some of hem may run for years. That while bank may be ordinarily solvent. a run that would entirely deplete its cash assets could make its suspension inThe above information and comment did not come through any official of the First National Bank. Not one of them has had anything to say, for publication, as to what put their bank in its present condition. THE FIRST NATIONAL BANK OF MURFREESBORO, IN THE STATE OF TENNESSEE, AT THE CLOSE OF BUSINESS ON DEC. 31. 1931 RESOURCES 1. Loans and discounts 2. Overdrafts 3. United States Government securities owned 4. Other bonds, stocks, and securities owned 6. Banking house, furniture and fixtures Real estate owned other than banking house 8. Reserve with Federal Reserve Bank 9. Cash and due from banks 10. Outside checks other cash items 11. Redemption fund with U. S. Treasurer and due from U. S. Treasurer Total LIABILITIES 15. Capital Stock paid in 16. Surplus 17. Undivided profits-net 18. Reserve for dividends, contingencies, etc. 19. Reserve for interest, taxes. and other expenses accrued unpaid $1,516,728.29 655.44 20. Circulating notes outstanding 8,750.00 22. Demand deposits 453,928.78 23. Time deposits 726,171.77 26. Bills payable and rediscounts 340,866.00 31. Other liabilities 73.08 Total $1,927,419.36 State of Tennessee, County of Ruther- I, C. B. Bell, cashier of the abovenamed bank, do solemnly swear that the above is true to the best of my knowledge and belief. B. Bell, Subscribed and sworn to before me this 8th day of January, 1932. H. L. Fox, Notary Public Correct-Attest Jno. M. Butler, C. N. Haynes, G. S. Ridley, directors. ASSETS Bills receivable $1,501,553.07 Cash on hand 4,287.25 Assets other than bills receivable and cash on hand 190,413.07 Total $1,696,253.39 LIABILITIES Liabilities unsecured $1,049,071.69 Deposits secured by pledge of assets of the bank aggregating $3,000 as collateral Rediscounts secured by pledge assets the bank aggregating $104.590.00 as collateral Bills payable secured by pledge of assets of the bank aggregating $441,136.02 as collateral 210,000.00 90,500.00 142,921.50 21,234.30 22,000.00 54,864.85 73,824.12 315.86 4,375.00 $1,927,419.36 $ 200,000.00 100,000.00 582.97 10,010.00 5,000.00

5. December 24, 1932 The Greenville News Greenville, SC
Article from The Greenville News, December 24, 1932

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Makes $8,500,000 Available As Dividends For 59 Closed National Banks MERRY CHRISTMAS FOR MANY IS ASSURED First National At Spartanburg Among Institutions Getting Funds WASHINGTON, Dec comptroller of the currency played Santa Claus today, ordering more than eight and half million dollars distributed immediately to the depositors of 59 closed national banks. The amount was the largest disbursed in any month recent times and compared with $3,000,000 in vember. It brought the total for the year paid depositors to $106.000,000. The receivers of the institutions will make the payments. The comptroller, making special efforts to give merry Christmas to the borrowed some of the money from the Construction Finance corporation. This was done by pledging good assets of some of the suspended banks. The money will be repaid when affairs the banks are further liquidated. The money is available for distribution now and should be paid the depositors by tomorrow night. Awalt. the acting comptroller said that any of them did not get would be because the depositor failed to call for his check Awalt later announced 58 of the banks, to give the name of one which had been merged with another bank. He said the money for the divie dends had been going ahead since early in the month the last of had been sent from the today. Southern banks included: Wayne National, Goldsboro, North Carolina; Houston National, Dothan, First National, First National, Murfreesboro, Tenn. First National, Thomasville,

6. April 26, 1933 Nashville Banner Nashville, TN
Article from Nashville Banner, April 26, 1933

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City of Murfreesboro Named in Bank Suit George E. Farmer, receiver of the First National Bank Murfreesboro filed in United States Court seeking on note for held him as part the The named the City of corporation Beesley and Sara Beesley as defendants. The note is secured by deed of trust the City of and it to Beesley who later became bank the petition set The deed was originally W. Hender son and certain real estate Mason now by the Murfreesboro office building. the bill stated The plaintiff have the and the proceeds applied the debts of the bank The English House of Commons ginated 1265

7. September 22, 1933 The Rutherford Courier Smyrna, TN
Article from The Rutherford Courier, September 22, 1933

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Butler Property Offered for Sale By Bank Receiver George W Farmer receiver for the First National Bank, in his capacity as trustee, has offered for sale three of land conveyed to him in defauit of the indebtedness of John M. Butler listed on he sale notice, the offered for sale includes the acant Vogue building on East Main and the property between the and he Hermitage laundry, two on the west side of the square, warehouses on the west side the city occupied H. Hale and Sons. The indebtedness as listed includes Hardware company, $5,000: Mrs Lena M. Butler, note, $6,000; Nashville and American Trust comas guarantor on note, $20,000; American National Bank, individually note, $33,500; First National Bank, note held by National association, Nashville, Howse and Butler, note, $7,stock assessment, $27,000; enrser on James M. Butler note, $13,200; Hudmon Seed company, notes $1,000 and $2,500 respectively; Shawnee Mill and Grain Co., Inc., endorsed by M. $1,900; also indebtedness to State of of Rutherford, City of Murfreesboro, and Nashville. Chattanooga and St. Louis company, by bond secure payment of deposits in First National Bank,

8. October 18, 1933 The Daily News-Journal Murfreesboro, TN
Article from The Daily News-Journal, October 18, 1933

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BANKRUPTCY BILL FILED NASHVILLE Petition Filed Involuntary By American National Bank NOTES BASIS OF ACTION Counsel For Former Banker Says Other Creditors Were Satisfied Involuntary bankruptcy proceedings filed against John M. Butler, president of the closed First National Bank, yesterday afternoon, the American National bank of Nashville, basing the action on unpaid notes of which were endorsed by Mr. Butler. The notes were made connection Nashville business firms in which Mr. Butler was interested. The papers filed on the Murfreesboro man deputy U. Marshal of Nashville and Mr. Butler expected to file an answer within the next few days. Attorney Comments According to Mr. Butler's attorney, Granvill Ridley, the American National Bank was the only creditor not satisfied when Mr. Butler gave mortgage on all his property. Bangkok indicate "Mr. Butler gave mortgage to Mr having joined Farmer, First National Bank receiver, Mrs. Lena Butler, N. Haynes, the American National Bank, and to secure bonds, but the American National Bank the only one not satisfied the others refused to join in the petiRidley stated. After Mr. Butler files his answer the case will be taken before Federal Judge Gore for the hearing.

9. October 18, 1933 The Daily News-Journal Murfreesboro, TN
Article from The Daily News-Journal, October 18, 1933

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JOHN IN BANKRUPTCY BILL FILED AT NASHVILLE Petition Filed Involuntary By American National Bank NOTES BASIS OF ACTION Counsel For Former Banker Says Other Creditors Were Satisfied Involuntary proceedings were filed against John Butler, president of the closed First National Bank, yesterday afternoon, the American National back of Nashville, basing the action notes of $30,000 which were by Mr. Butler. The notes were made in connection with Nashville business firms in which Mr. Butler was interested. The papers were filed on the Murfreesboro man by deputy U. B. Marshal of Nashville and Mr. Butler is expected to file an answer within the next few days. Attorney Comments According to Mr. Butler's attorney, Granvill Ridley, the American National Bank was the only creditor not satisfied when Mr. Butler gave mortgage on all his property. "Mr. Butler gave mortgage to Mr Farmer, First National Bank receiver, Mrs. Lena Butler, Haynes, the American National Bank, and to secure all bonds, but the American National Bank is the only one not satisfied as the others refused to join in the petition," Mr. Ridley stated. After Mr. Butler files his answer the case will be taken before Federal Judge Gore for the hearing.

10. March 12, 1934 The Daily News-Journal Murfreesboro, TN
Article from The Daily News-Journal, March 12, 1934

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Mason Court Deal To Bring New pected Suit Against City Further legal action against the expected as the result of the sale of Mason Court Friday. The city bought the property from Mrs. Daisy Henderson and Beesin turn bought from the ley assuming the notes and paying $4,000 cash which was profit. Mrs. Henderson then sold the notes to the First National bank when the bank closed the notes were still there, uncollected. The notes were for and the brought only the bank's receiver is expected to sue,the city for the remainder as the city's name still the note. The city will fight the action on the grounds that the bank had sufficient time to collect from Mr. Beesley in the event necessary action had been taken. The receiver sued the city several months ago on th notes and this action resulted in the sale and the bank now expected to try and collect the difference.

11. December 6, 1934 The Tennessean Nashville, TN
Article from The Tennessean, December 6, 1934

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Bank's Receiver Wins Suit On One of Three Notes Hearing of a suit brought by George E. Farmer as receiver of the First National bank of Murfreesboro to collect three notes amounting to $10,000 from J. L. Barker of Rutherford county was held Wednesday before U. S. Judge John J. Gore. Farmer, through his attorney, Maj. H. Shofner of Nashville. asked the court to set aside conveyances of land by Barker to other parties on the grounds that they were fraudulent and were made in an attempt to avoid liability on the notes. The court denied this petition. holding that there was not suffiin connection with the conveyances. Notes on which Barker was sued were of $5,000, $4,000 and $1,000 value. At the of the hearing jury returned in favor Farmer on the $4,000 note and is expected report on the other two this morning. Barker's attorneys are J. D. Richardson of and Barrett Melton of Woodbury.