Henry County Bank - Martinsville, VA

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: state
Start Date: March 1, 1893*
Location: Martinsville, Virginia (36.692, -79.873)

Metadata

Model: gpt-5-mini
Short Digest: acec5d3f

Response Measures

Capital injected, Full suspension, Books examined

Other: Reorganization / capitalization increase to $100,000 and payment of depositors dollar-for-dollar.

Description

Articles report a several-weeks-long withdrawal of deposits (a steady but not sensational run) preceding a 10-day suspension on March 7-8, 1893 for an expert examination of the books. Subsequent articles (Mar 28 and Apr 14, 1893) state the bank will resume business/has been reorganized and will pay depositors in full, indicating reopening/reorganization rather than permanent closure.

Events (4)

1. March 1, 1893* Run

Cause: Bank Specific Adverse Info
Cause Details: Declining confidence driven by careless bookkeeping, hazy condition of books, and resignation of cashier John A. Brown (alleged intemperance); depositors gradually withdrew funds over several weeks.
Measures: Cashier resigned; John T. Penn made temporary cashier; directors employed an expert to examine books and appointed committee of shareholders to investigate.
Newspaper Excerpt: The fact of declining confidence for more than week caused a steady but not sensational run on the bank, and as most depositors withdrew their deposits
Source: newspapers

2. March 7, 1893 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Directors suspended payment for ten days to allow an expert/shareholders' committee to examine tangled/hazy books after cashier's resignation and prior withdrawals; suspension intended to investigate condition and reorganize if solvent.
Newspaper Excerpt: To enable the board of directors of the bank to complete an examination and ascertain the condition of the bank, it has been resolved that business be suspended for ten days
Source: newspapers

3. March 28, 1893 Reopening

Newspaper Excerpt: The Henry County Bank, which suspended some weeks ago, will in a few days, we understand resume business without any loss to depositors and with an increased capital.
Source: newspapers

4. April 14, 1893 Other

Newspaper Excerpt: The directors of the Henry County Bank, at Martinsville, which closed its doors several weeks ago, assisted by other prominent citizens of the town and county, have organized new bank. The authorized capital is to be $100,000. The arrangement contemplates an immediate settlement of the tangled affair of the Henry County Bank, and the prompt payment, dollar for dollar, of all liabilities to depositors and other creditors.
Source: newspapers

Newspaper Articles (4)

1. March 8, 1893 The Roanoke Times Roanoke, VA

Article from The Roanoke Times, March 8, 1893

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Article Text

CLOSED ITS DOORS. The Henry County Bank of Martinsville Suspends operations for Ten Days MARTINSVILLE, March 7.-(Special)The Henry county bank (a State bank) closed its doors last night. Persons who passed the bank early this morning saw a notice posted on the door which reads: "To enable the board of directors of the bank to complete an examination and ascertain the condition of the bank, it has been resolved that business be suspended for ten days The notice is signed by H. C. Lester, president of the bank. Yesterday Cashier John A. Brown tendered his resignation, which was accepted, and John T. Penn made temporary cashier. Opinion here is almost unanimous that the assets of the bank make it solvent and that depositors will lose anything. The temporary suspension of the bank is no surprise at Martins ville, as for several weeks confidence in the safety of the institution has been waning, and depositors have gradually withdrawn their money. At a meeting of the stockholders ten days ago it was decided that in view of the unsatisfac tory condition of the books an investigation by a committee of the share. holders, aided by an exper`, sl onkú be at once made. This examination has been going on for several days. The committee ascer. tained yesterday that careless methods and bookkeeping had so befogged the situation that mo e time was thought necessary, and that the ends sought would be more quickly reached by a temporary suspension. The committee and other persons sufficiently informed are of the opinion that there is no doubt of the solvency of the bank. At the expiration of the ten days' suspension the opinion is unanimousally expressed that the bank will resume operations with plenty of means and with a reorganization that will quickly restore confidence. It is not believed by the directors that the cashier has been at all crooked, but that the hazy condition of the bank books and affairs generally is due to his emphasized habit of drink. He is a large shareholder and has been, st all times, regarded as a man of thorough honesty and withal of brightest capacity. In sending in his resignation he made no comment on the situation further than to say that on account of impaired health he could no longer give due at tention to his duty and asked the board to appoint his successor withont delay. He is now said to be a patient of the Keely Institute at Greensboro, N. The fact of declining confidence for more than week caused a steady but not sensational run on the bank. and as most depositors withdrew their deposits, it is improbable that any will lose much if at all. The stockholders are generally men of means and good standing President H. C Lester is the richest than in this part of Virginia and has declared that the bank will open its doors just as soon as the committee completes its investigation and arrives at the true condition of affairs. The bank has a capital of only $18,000 with a surplus of about as much more, but there is hardly a bank in the country which has done so extensive a business on so small a capital. At one time in the last year its statement showed deposits in excess of $100,000. The suspension has caused no run on the only other bank in town: and its of ficers say they are prepared for any sort of emergency.

2. March 9, 1893 The Times Richmond, VA

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Article Text

BANK SUSPENDS PAYMENT. An Expert Examining the Books-Daring Attempt at Assassination. MARTINSVILLE, VA., March 8.-Special.-There has been considerable excitment in town to-day over the action of the Henry County Bank in suspending payment. John A. Brown, the cashier of the bank, on yesterday resigned, and today the bank is in the possession of an expert looking over the books and accounts, and it is announced that payment is suspended for ten days. Until the examination is made it is impossible to state the condition of the bank, but it is hoped by the friends of the institution that it will be able to resume business, and pay its indebtedness in full. Mr. John Miller, of Danville, is the expert employed to investigate the condition of the bank, and, is is stated, if he finds its condition favorable, he will be appointed cashier. There was a very dastardly attempt at assasination here last week. It appears that some one called at the house of Mr. W. T. Hodnet, on Church street, about 2 o'clock at night, stating he had a letter for Mr. Hodnet, who came to the front door unarmed with a lamp in his hand. When he opened the door the party on the outside fired at Mr. Hodnet, the ball striking the door-facing, when the attempted assassin fled. So far no clue has been found as to the perpetrator of the deed. We understand to-day that Congressman Swanson has definitely decided on a primary at Martinsville to decide on the postmaster, and requested the county chairman to call a primary, but he called his executive committee together, and they decided against calling a primary as inexpedient, and so the matter rests. The town council has let to contract the water works for the town at a cost of $25,000, and the town bonds were floated at par: but we are afraid we will have a white elephant on our hands when the plant is put in.

3. March 29, 1893 The Times Richmond, VA

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Loss by Fire Adjusted-Other News. MARTINSVILLE, VA., March 28.-Special.-The loss occasioned by the fire here on the 21st of March has been adjusted to the satisfaction of all parties, and the loss outside of the insurance will not exceed $5,000. I suppose the burned buildings will be replaced at an early day, but no arrangement has been made SO far for SO doing. Mr. 8. J. Griggs, United States commissioner, of this place, was taken with pneumonia on Sunday last, and died on the morning of the 24th at his home on Broad street. Judge Dupuy, of Roanoke, has been in Patrick for the last ten days holding a special term of the circuit court for Judge Whittle in order to dispose of some old ejectment suits pending there. The Henry County Bank, which suspended some weeks ago, will in a few days, we understand resume business without any loss to depositors and with an increased capital. Tobacco sales here are very heavy, and prices remain firm.

4. April 14, 1893 Highland Recorder Monterey, VA

Article from Highland Recorder, April 14, 1893

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Article Text

VIRGINIA NOTES. The Latest News Gleaned From Various Parts of the State. TRAIN hands on the Richmond and Petersburg Railroad discovered a white man ground a short distance track upon the in Chesterfield county, eight miles from from lying the apparently inves. however, it was stranger Petersburg, tigation, asleep. found Upon that the was dead with an ugly wound back Close was a covered with which the of knotty the fatal stick head. by blood, heavy with and blow had been given. The murdered man must have been knocked senselese by the blow and recovering from the shock and finding that he was in a dying condition, turned over upon his back, for it was in this position that he was found. He had but one arm and appeared to be twenty-one years of age, and was neatly dressed in a black sack coat and dark pants. Nothing was found ou his person by which he could be A James H. on of arrested white tramp, suspicion named being Deaton, identified. connected was with the murder, but he was afterward discharged. BISHOP A. M. RANDOLPH, of the Southern has decided in strong effort was made Norfolk. Episcopalians Diocese of A Virginia, to locate by the of Petersburg to get him to locate there. THE present oyster law went into operation September, 1892. The revenues from it since to $25,000, which is amount received for the double that time the amount preced- nearly ing year under the old law, and several counties have not yet made their reports. It is estimated that after all these are in the receipts under the new law will reach $45,000. Considering the severity of the recent winter it is thought that these figures will be quite satisfactory. MRS. ANNIE LAMPLER, of Alexandria, comnitted suicide by taking two ounces of laudanum, death ensuing in a short time. Despondency caused by ill-health was the cause bf the deed. Miss JENNIE LLOYD, a young woman liv'ng few miles south of Bedford City, while sitting in front of a fire fell asleep. Her clothing became ignited and she was 80 badly burned that her recovery is impossi ble THE fine residence of Mr. T. W. Harvey, of Spring Mills, Campbell county, was destroyed by fire with its contents. The barn and other outbuildings, five or six in number, were also destroyed. DURING terrifle thunder-storm Willie and George, aged thirteen and seventeen, sons of James Crane, who lives near Fall Creek, nine miles from Danville, were instantly killed by lighting. They were in a barn cutling provender for horses when the storm same up. Lightning struck the barn, and the boys' neck was found to be broken and their bodies badly bruised and blackened. AT Montvale, a village on the Norfolk and Western, ten mile# east of Roanoke, Newton H. Hazlewood, Jr., son of Newton H. Hazlewood. Sr., assistant auditor of the road, was run over by train. In company with some small boys the young man was on his way from Bedford City to Montvale on a freight train, which passed his home at a rapid rate of speed. In jumping off he was thrown under the train, and both feet were 80 badly mashed that it was necessary to amputate them at the ankle joint. The injured youth is eighteen years old and is resting comfortably. Two attempts at robbery were made iit Fredericksburg, one at the residence of Mrs. Medora Little, where the burglar entered by forcing open the back door. The ladies screamed for help, and the robber became alarmed and fled, having secured only a small quantity of silverware, most of which he dropped in his flight. The other attempt Was at Mrs. Bradford's where the thief threatened the life of chambermaid who was Bitting up with sick baby. The maid rushed for a pistol and the robber made his escape. A county medical society has been, organ Ized at Charlottesville, with Dr. W. C. N. Randolph president. The State Medical Society meets in October. THE directors of the Henry County Bank, at Martinsville, which closed its doors several weeks ago, assisted by other prominent citizens of the town and county. have organized new bank. The authorized capital is to be $100,000. The arrangement contemplates an immediate.settlement of the tangled affair of the Henry County Bank, and the prompt payment, dollar for dollar, of all liabilities to depositors and other creditors. MRS. AMISTEAD TAYLOR, who lived near "Oakwood," Fauquier county, was strickett a with paralysis several months ago, and has been in feeble health ever since. Last Wednesday, during the absence of the family, she attempted to get something from the mantlepiece in front of an open fireplace IN and her clothing took fire, and before assistance could reach her she was 80 badly up burned as to cause her death a few hours afterward. THEODORE MITCHELL, a miller, met a horrible death at his mill, near Dumfries, Prince W illiam county, a few days ago. As he was passing a running shaft a bolt on the shaft caught in his boot straps, his leg was wound around it, the bones being crushed, and his body was then drawn between the shaft and near by, and the life He a gasped post two crushed out. or three times after being discovered. MRS. BEALE, one of the lady assistants of the Virginia board of World's Fair managers, turned in to Colonel Buford, the prestdent, $1,700, which she had collected from entertainments given in different parts of the was assisted the some of the was obtained liary, State. and She money by ladies' auxby the sale of souvenirs, COL. C. R. BARKSDALE'S farm-house at 'Brown Hiil,' in Halifax county, was burned Tes to the ground. THE Virginia board of World's Fair man-