Traders Bank - Lynchburg, VA

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: September 1, 1896*
Location: Lynchburg, Virginia (37.414, -79.142)

Metadata

Model: gpt-5-mini
Short Digest: 32db186a

Response Measures

Accommodated withdrawals, Full suspension

Other: Directors made deed of trust / assignment; trustees named; receivership-like assignment

Description

Articles report a run on the Traders Bank in September (1896) that led to a practical suspension of business since that time and culminated in a deed of trust/assignment to trustees on 1897-05-12 (effectively receivership/closure). OCR corrected minor punctuation; bank appears to be a state-chartered local bank (no 'National' in name).

Events (3)

1. September 1, 1896* Run

Cause: Macro News
Cause Details: Continued hard times (broader economic distress) led depositors to withdraw, producing a run in September 1896.
Measures: Directors stood by the bank to extent of their estates; where parties holding certificates desired it, directors personally guaranteed payment; bank paid depositors about $250,000 over eight months.
Newspaper Excerpt: the continued hard times told against it and occasioned a run upon it last September
Source: newspapers

2. September 1, 1896* Suspension

Cause: Macro News
Cause Details: Practical suspension of business beginning with the run in September 1896; bank ceased ordinary operations while assets were being realized.
Newspaper Excerpt: since the practical suspension of business in last September
Source: newspapers

3. May 12, 1897 Receivership

Newspaper Excerpt: At an adjourned annual meeting ... it was decided ... to make a general deed of assignment ... the directors on yesterday made a deed of trust, naming as trustees Captain Charles M. Blackford and Mr. James E. Edmunds. The Traders Bank ... made an assignment on May 12, 1897.
Source: newspapers

Newspaper Articles (4)

1. May 13, 1897 The Times Richmond, VA

Click image to open full size in new tab

Article Text

TRADERS BANK OF LYNCHBURG, The Directors Make a Deed of Trust-The History of Its Tronble, LYNCHBURG, Va., May 12.-Special.At an adjourned annual meeting of the stockholders of the Traders Bank on Tuesday it was decided, in order to prevent any creditors from obtaining any priorities one over another, to make a general deed of assignment, and in accordance with this authority the directors on yesterday made a deed of trust, naming as trustees Captain Charles M. Blackford and Mr. James E. Edmunds. It is thought that the assets will be sufficient to pay the debts in full and leave a surplus for the stockholders. The Traders Bank was organized in 1890, and up to twelve months ago did a large and prosperous business, but the continued hard times told against it and occasioned a run upon it last September. The directors stood by the bank to the extent of their estates and thereby prevented its insolvency, and warded off a disaster from many of Lynchburg's people. Where parties holding certificates desired it, the directors personally guaranteed payment, and in that way gained needed time. In the last eight monthssince the practical suspension of business in last September-the bank has paid depositors about $250.000, and there is now a balance on deposits to be paid of only $50,000, and not a dollar is subject to check, The certificates are nearly all endorsed by the directors. The assets of the bank are placed at $330.000 and the liabilities at $150,000.. The assets are represented in various ways, and time alone will tell exactly how much will be realized on them.

2. May 14, 1897 The Roanoke Times Roanoke, VA

Article from The Roanoke Times, May 14, 1897

Click image to open full size in new tab

Article Text

FAILURE IN LYNCHBURG. The Traders Bank Assigns and Goes Into Hands of Receivers. At an annual adjourned meeting of the stockholders of the Traders' Bank. on Tuesday, it was decided, in order to prevent any creditors from obtaining any priorities one over another, to make a general deed of assignment, conveying to trustees all the assets of the bank to secure its creditors. and in accordance with this authority the directors on yesterday made a deed of trust, naming as trustees Capt. Charles M. Blackford and Mr. James E. Edmunds. It is thought that the assets will be sufficient to pay the debts in. full and leave a surplus for the stockholders. The Traders' Bank was organized in 1890, and since that time, up to some twelve months ago, did a large and prosperous business, but the continued hard times told against it and occasioned a run upon it last September. The directors stood by the bank to the extent of their estates and thereby prevented its insolvency and warded off a disaster from many of Lynchburg's people. Where parties holding certificates desired it, the directors personally guaranteed payment, and in that way gained needed time. In the last eight months. since the practical suspension of business in last September, the bank has paid depositors about $250,000, and there is now a balance on certificates of deposit to be paid of only $50,000. These certificates are nearly all endorsed by the directors. The assets of the bank are estimated at $330,000 and the liabilities at about $150,000. It will take time to realize on the assets, but it is said that they will be ample to pay every dollar of the indebtedness and leave a good balance to be distributed among the stockholders. The capital stock of the bank is $150,000.-Lynchburg News. THE BEST REMEDY FOR RHEUMATISM. From the Fairhaven (N. Y.,) Register. Mr. James Rowland, of this village, states that for twenty. five years his wife has been a sufferer from Rheumatism. A few nights ago she was in such pain that she was nearly crazy. She sent Mr. Rowland for the doctor, but he had read of Chamberlain's Pain Balm and instead of going for a physician he went to the store and secured a bottle of it. His wife did not approve of Mr. Rowland's purchase at first, but nevertheless applied the Balm thoroughly and in an hour's time was able to go to sleep. She now applies it whenever she feels an ache or a pain and finds that it. always gives relief. He says that no medicine which she had ever used did her as much good. The 25 and 50 cent size bottles for sale by H. C. Barnes. "He puts up prescriptions." Just received a large line of enamel

3. June 7, 1897 Alexandria Gazette Alexandria, VA

Article from Alexandria Gazette, June 7, 1897

Click image to open full size in new tab

Article Text

VIRGINIA NEWS. The Radford democrats on Saturday elected delegates to the State conven. tion instructed to vote for Tyler for governor. Manassas had another dreadful thunder storm on Saturday. The rain came down in torrents, and the lightning struck the corner af Dr.T. Wolfe's house, and splintered it pretty badly. Mr. L. W. Bunch, a prominent merchant of Charlottesville, died suddenly at his place of business on Saturday night. He was about fifty-five years of age and leaves a wife and five children. The postoffice building at Magnolia, also used as a store, was burned at 3 o'clock Saturday morning. The fire started from the explosion of a lamp left in an unoccupied room to keep away burglars. All the mails were consumed. Stamps and cash were in the safe. The loss is covered by insurance. James Hancock, president of the defunct Traders' Bank of Lynchburg, which recently wentinto the hands of a trustee, made an individual assignment on Saturday. His liabilities, consisting principally of notes, are estimate at $32,250. Robert Kinnier, jr., also made an assignment. Simon Strauss, clothier, assigned on Saturday. Liabilities, about $15,000. All of Lynchburg.

4. October 12, 1897 Richmond Dispatch Richmond, VA

Article from Richmond Dispatch, October 12, 1897

Click image to open full size in new tab

Article Text

IN THE HILL CITY. THE FORMER CASHIER OF THE TRADERS' BANK INDICTED. Charged With Making False Statements to the Auditor of Public Accounts-The Lynchburg Fair-GoodGovernment League Fight. LYNCHBURG, VA., October 11.-(Speclal.)-Thomas F. Stearnes, now a resident of Newport News, and cashier for the Collector of the Port, was indicted by the grand jury in the Corporation Court today on the charge of feloniously making false statements to the Auditor of Public Accounts as to the financial condition of the Traders' Bank, of which he was cashier from its organization until Januuary 1, 1897, when he resigned. There were three indictments altogether. one charging him with placing on July 14, 1896, the resources, loans, and discounts at $414,500.13, when they should have been $402,830.75, and on the same date placing the checks and drafts on other banks at $6,328.44, when there should have been none at all. The second indictment charges him with making a false statement on February 28, 1896, placing the liabilities of the directors at $126,896, instead of at $260,249.11. The third indictment sets forth that Stearnes made a false statement as to the amount of legaltender notes and national bank notes, making it $14,266, instead of $10,266. The Traders' Bank made an assignment on May 12, 1897. The grand jury is still in session, and other indictments are expected. Mayor G. W. Smith has decided to make an effort to prevent fallen women from riding the bicycle on the streets of the city. To that end he has arrested two of the best known of the women who have lately taken to the wheel, and will try them in to-morrow morning's court, on the charge of loitering on the streets. The Lynchburg Fair begins to-morrow. The Good Government League is fighting to prevent the sale of liquor and the running of gambling machines on the grounds, and from present indications the matter will be carried into court.