2216. Bank of Adairsville (Adairsville, GA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
July 16, 1926
Location
Adairsville, Georgia (34.369, -84.934)

Metadata

Model
gpt-5-mini
Short Digest
a14a3c3aa381ffdc

Response Measures

None

Description

Bank of Adairsville was listed among Georgia banks that closed in July 1926 following the bankruptcy/failure of the Bankers' Trust Company chain (a fiscal agent/correspondent failure). By Sept 14, 1926 the bank is listed among 15 banks that reopened as separate, independent institutions. No article explicitly describes a depositor run on this specific bank.

Events (2)
1. July 16, 1926 Suspension
Cause
Correspondent
Cause Details
Closed following the bankruptcy/failure of the Bankers' Trust Company chain, which served as fiscal agent/correspondent for these banks.
Newspaper Excerpt
The latest banks reported closed include ... Bank of Adairsville; ... Officials of the state banking department pointed out that virtually all of the Georgia banks that have closed were of the Georgia Trust company chain.
Source
newspapers
2. September 14, 1926 Reopening
Newspaper Excerpt
The 15 banks that have already been reopened are: ... Bank of Adairsville ... Fifteen Georgia banks which were closed with the failure of the Bankers' Trust Co. of Atlanta, have re-opened as separate and independent institutions.
Source
newspapers

Newspaper Articles (2)
1. July 16, 1926 New Britain Herald New Britain, CT
Article from New Britain Herald, July 16, 1926

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Article Text

GEORGIA BANKER TAKES OWN LIFE (Continued from First Page) total number that have suspended operations this week to 83 in the two states. The state banking department attributed their closings also to the bankruptoy proceedings of the Bankers Trust company. Petition for a receivership was brought several days ago in superior court here where a board of recelvers was designated and a temporary injunction granted restraininz officers of the company from allaring in any manner the status of the banks The petition was brought by the bank of Umatilla. Fla. Yesterday the federal court assumed Jurisdiction on the plea of tour Atlante creditors. Former Governor Hugh M. Dorsey and J. K. Ottley, president of the Fourth National Bank were appointed recelvers for the company. The state banking department said that many of the banks that closed had only temporarily ceased business pending reorganisation and rearrangement of financing after the bankruptcy proceedings of their fiscal agents. The latest banks reported closed include the State Bank of Palatka, Fla., and the Bank of Lake Helen, Fla. 13 Banks Closed The 18 banks closing announced today are: Bank of East Point; Exchange Bank of Sycamore; Peoples' Bank of Soperton: Commerce Bank and Trust company; Bank of Adairsville; Farmers and Merchants' Bank at Rebecca: Merchants and Planters' Bank at Villa Rica: Merchants and Farmers' Bank at Sylvester; Bank of Pineview: Merchants and Farmers' Bank at Tennile; Turner County Bank at Ashburn; Bank of Stockbridge, and Merchants and Planters' Bank Whigham. Officials of the state banking department pointed out that virtually all of the Georgia banks that have closed were of the Georgia Trust company chain. The Bankers' Trust company, they said, was a corporation and not under the supervision of the state banking department. The banks themselves, however, Judge Geille Park, of Macon, chief counsel for the Georgia Bankers' association, said, are under the jurisdiction of the state banking department and not within that of the federal court.

2. September 14, 1926 Evening Star Washington, DC
Article from Evening Star, September 14, 1926

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Article Text

15 GEORGIA BANKS RESUME BUSINESS 12 Others to Reopen This Week as Independent Institutions, Official Says. By the Associated Press. ATLANTA. September 14.-Fifteen Georgia banks which were closed with the failure of the Bankers' Trust Co. of Atlanta, have re-opened as separate and independent institutions, and 12 others will be re-opened within the next week, State Banking Department officials here announced. The total resources of the reopened banks within the next week will be one-third of that of all the Georgia banks that closed this Summer, W. J. Davis. general agent for the State Banking Department. declared. The total resources of the closed banks. he pointed out. was $18,000,000. while that of the re-opened banks will be $6,000,000. The 15 banks that have already been reopened are: State Bank of Cochran. Bank of Hazelhurst. Bank of Stapleton. Rockmart Bank. Habershaw Bank of Clarkesville. Cornelia Bank. Demorest Branch of Cornelia Bank. Bank of Lulu. Merchants and Planters: Bank at Whigham. Exchange Bank at Sycamore, Bank of Adairsville. Farm ers and Merchants' Bank at Rebecca. Planters, Bank Pavo. Turner Coun tv Bank at Ashdown. and Lakewood Bank of Atlanta. The latter, while not a member of the Bankers' Trust Company chain. was forced to close on account of a run after the trust company's failure. Mr. Davis pointed out.