Multiple contemporary reports (Nov 27–29, 1928) state heavy withdrawals at Citizens Bank of Fort Valley following the closing of the Fourth National Bank in Macon; the Fort Valley bank closed its doors 'to preserve assets' and was described later (1930) as having failed in 1928. Cause attributed to baseless rumors after Fourth National's failure. I corrected OCR spacing/typos in articles when extracting quotes.
Events (3)
1.November 27, 1928Receivership
Newspaper Excerpt
State Superintendent of Banks A. B. Mobley today announced the receipt of notice of closing of the Citizens Bank of Fort Valley, Ga.; later sources describe the Fort Valley bank as having failed in 1928 and legal proceedings followed in 1930 concerning its failure and stockholder liability.
Source
newspapers
2.November 27, 1928Run
Cause
Rumor Or Misinformation
Cause Details
Depositors made heavy withdrawals in Fort Valley after news of the closing/failure of the Fourth National Bank in Macon; contemporaneous accounts attribute runs to 'baseless rumors.'
Measures
Directors voted to close the bank for the purpose of conserving its assets; turned affairs over to State Banking Department.
Newspaper Excerpt
Heavy withdrawals followed news of closing of Fourth National in Macon
Source
newspapers
3.November 27, 1928Suspension
Cause
Rumor Or Misinformation
Cause Details
Bank suspended operations (did not open for business Tuesday) following heavy withdrawals induced by news/rumors stemming from the Fourth National Bank's collapse in Macon.
Newspaper Excerpt
Directors ... decided that for purpose of conserving its assets [the bank] should [close] and be turned over to the State Banking department.
Source
newspapers
Newspaper Articles (11)
1.November 27, 1928Hattiesburg AmericanHattiesburg, MS
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FALSE RUMORS CAUSE RUN ON GEORGIA BANK
(By Associated Press) MACON, Ga., Nov. 37.-The run of withdrawals which resulted yesterday in the closing of the Fourth National Bank here, one of the largest financial institutions in central Georgia, was attributed today by officials of the bank to "baseless rumors evidently originating with the collapse last week of negotiations to sell It to a group of Atlanta men."
Directors oz the bank met today with its president, Leon S. Dure, to discuss plans for reorgani: embraeing a proposal of Mr. Dure for new institution capitalized at $750,000 The Fourth National had capitalization of $500,000, resources of 000 and deposits of about $9,000,000. Declaring that there is every assurance that reorganization will be effected soon, Mr. Dure announced that one half of the proposed capital stock for the new bank already had been subscribed without solicitation and added that the new arrangement contemplated would provide "prompt and full payment" to all depositors. Ellis D. Robb, chief national bank examiner for the sixth federal reserve district, said the fourth national had been examined only a few days before the run and had been found solvent
SMALL BANK NEAR MACON FAILS TO OPEN ATLANTA Nov. 27.-State Superintendent of Banks A. B. Mobley today announced the receipt of notice of the closing of the Citizens Bank of Fort Valley, Ga. Fort Valley is in central Georgia near Macon, where the Fourth National Bank closed yesterday after 2 run, and is the center of the Georgia peach growing country. Details of the closing were not immediately available to the banking depart ment.
2.November 27, 1928The Selma Times-JournalSelma, AL
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BANK SUSPENDED
Superintendents of Banks A. B Mobley today announced the receipt of notice of closing of the Citizens Bank of Fort Valley. Ga. Fort Valley is in Central Georgia. near Macon, where the Fourth National Bank closed yesterday after a run. and is the center of the Georgla peach growing country. It was capitalized at $100.000 and had surplus and undivided profits of about $78.000. according to the banking départment.
3.November 27, 1928The Macon NewsMacon, GA
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Valley Bank Closes Doors to Preserve Assets
Heavy Withdrawals Follow News of Closing of Fourth National in Macon
FT. VALLEY. Ga.. Nov. 27. Unusually heavy withdrawal of cash attributed to the closing Monday of the Fourth National bank at Macon resulted Tuesday the pension business by the Citizens bank of Fort Valley here, with deposits Explaining the bank's failure open for business Tuesday mornPresident Edwin Martin said the directors meeting Monday night and Tuesday had considered the situation brought about by steady withdrawals Mondav after word the Fourth National closing had been received and had decided that for purpose of conserving its assets should turned over to the State Banking department. said the bank solvent and that hoped some could be made soon with depositors any losses. The Citizens bank capitalized at $100,000 and had surplus and undivided profits $80,000. Mr. Martin said. The president added that there excitement incident to the withdrawals Monday Other ficers are Davidson and Louis Brown. vice presidents. and Ben cashier. The only other bank Fort Valley the Bank of Fort Valley.
4.November 28, 1928Pasadena Star-NewsPasadena, CA
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EIGHT BANKS CLOSE IN GEORGIA PEACH BELT
Failure of Macon Institution Is Cause of Run on Accounts
MACON, Ga., Nov. small closed today as result the failure Monday of the Fourth National Bank Macon, listed resources of more than $11,000.000. With the exception of the CitiBank Fort Valley, talized at the other insti- capiBank Byronville, Irwinton Bank, Bank of Preston, Citizens Bank Company of CulloBank of Bradley, Farmers & Merchants Bank Gordon and Farmers Bank italized from $15,000 to $25,-
The institutions closed were heavy Tuesday due financial followed closing the Macon bank. All banks are located in the Geopeach belt. Exact cause the run was conrealed. although financial circles recent investments had turned poorly.
5.November 28, 1928Evening CourierCamden, NJ
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GEORGIA BANK'S FAILURE MAKES 8 OTHERS CLOSE Ga., Nov. 28 Georgia closed today result of the failure Monday of the Fourth National Bank of listed resources of more than With of the Citizens $100,000, Bank of Fort Valley, capitalized other the Bank of Irwinton of Preston, Company Culloden, Bank of and of Gor don and Bank of Byron were capitalized at from $15,000 to $25,000. The closed after runs Tuesday due to the financial that closing All the banks cated in the Georgia
6.November 28, 1928The Times-NewsTwin Falls, ID
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MACON, GEORGIA. BANKS COLLAPSE rescue Eight Institutions Fall When He Run Starts on Them After Breaking of $11,000,000 Bank the
MACON, Ga., Nov. 28 Eight small Georgia banks were closed today as result of the failure Monday of the Fourth Notional Bank of Macon, with listed resources of more than $11,000.000
With the exception of the Citizens Bank of Fort Vallev, espitalized at $100,000. the other stitutions, the Bank of Byronville. Irwinton Bank, Bank of Preston, Citizens Bank Company of Culloden, Bank of Bradley, and Merchants Bank of Gordon. Bank Byron were capitalized at from $15,000 to $25,000. The institutions were c'osed afheavy runs Tuesday due to the financial scare that followed closing of the Macon bank. All the banks are located in the Georgia peach belt. Exact cause of the run was concealed. although financial circles said recent investments had turned out poorly.
7.November 28, 1928The Ogden Standard-ExaminerOgden, UT
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EIGHT BANKS CLOSE WHEN ONE FAILS
MACON, Ga., Nov. Eight small Georgia banks were closed today as result of the failure Monday of the Fourth National bank of Macon. with listed resources of more than With the exception of the Citizens' bank of Fort Valley. capitalized at $100,000. the other institutions. the Bank of Byronville, Irwinton bank, Bank of Preston, Citizens Bank company of Culloden, Bank of Bradley, Farmers and Merchants' Bank of Gordon, and Farmers' Bank of Byron capitalized at from $15,000 to $25,000. The institutions were closed after heavy runs Tuesday due to the financial scare that followed closIng of the Macon bank All the banks located the Georgia peach belt. Exact cause of the run was con. cealed, although financial circles said recent investments had turned out, poorly.
8.November 29, 1928The Valdosta Daily TimesValdosta, GA
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THE DANGER OF FALSE RUMORS The failure of seven middle Georgia banks to open for business following the closing of the Fourth National Bank of Macon has caused widespread apprehension on the part of depositors and is just another evidence of what rumors will do. The closing of the Fourth National was made necessary because of a rumor A run followed and the bank found it impossible to conserve its assets without shutting its doors. As soon as this happened depositors in all the surrounding section were struck with sudden fear and their various banks closed for safety's sake. Those which closed include the Bank of Byromville, capitalized at $15,000; Bank of Bradley, capitalized at $15,000; Bank of Preston, capitalized at $15,000; Farmers and Merchants Bank at Gordon, capitalized at $25,000; Citizens Bank at Fort Valley, capitalized at $100,000. According to C. E. Martin, president of the Fort Valley bank; the directors voted to close following heavy withdrawals on Monday. Mr. Martin also declared the bank was solvent and the institution was closed only to preserve its assets. The bank was founded in 1909 and had approximately $330,000 on deposits. In the last financial statement of the bank the institution's undivided profits were given at $80,000. All of the other banks were considered in good condition before the closings and as an evidence of the veracity of that belief. the presidents declare that they will all be ready to re-open within a short time. Each one of the closings was attributed to runs induced by the news of the closing of the Fourth National Bank at Macon and the others in succession. The Fourth National was the approved reserve agent for the other banks and officials are certain that as soon as the affairs of the Macon institution are readjusted all the banks will be open and in good condition. With the auditors at work, the directors of the Fourth National are holding conferences with view to working out plans to rclieve the situation for the creditors of the institution. One of the plans being discussed has to do with the organization of a new bank to take over the affairs of the Fourth National and start out anew. This new bank, should it be organized, would have capital stock of $750,000. It has been shown that the whole affair was brought about through a baseless rumor. Such rumors are hard to suppress once started for there is no rumor quite so interesting to a depositor as the alleged condition of his bank. The closings tend to cast an inaccurate reflection upon the financial situation in Georgia to people in other states. The majority of the people who learn of the closings will probably only read a small part of the news and will form a false conclusion as to the reported state of affairs. The whole trouble starts with the original rumor. In hundreds of cases such rumors of a bank's condition are untrue and some depositors might avert many unfortunate circumstances if they could learn enough about the banking business to keep their heads and work to prevent runs.
9.November 29, 1928The Altus Times-DemocratAltus, OK
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EIGHT GEORGIA BANKS CLOSED
MACON. Ga. Nov. Eight small Georgia banks were closed today as result of the failure Monday of the Fourth National Bank of with listed resources of more than With the exception of the Citizens bank of Fort Valley, capitalized $100,000. other institutions. the bank of Byronville and Bank of Irwinton: Bank of Preston. Citizens Bank company of Culloden. Bank of Bradley, Farmers and Merchants Bank of Gordon. and Farmers bank of Byron were capitalized at from $15,000 $25,000 The institutions were closed after heavy runs Tue day due to the financial scare that followed closing of the Macon bank
10.November 30, 1928The NewsPaterson, NJ
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EIGHT MORE BANKS CLOSED IN GEORGIA
Shut-Down of Fourth Nation-
Merchants Bank of Gordon, the Bank of Culloden and Bank of Preston The State bank examiner will charge once and every effort will be made to reorganize and reopen the banks as soon as possible. What caused the run on the Macon not known. One reports lays to rumors regarding the dropping egotiations for the sale Fourth National to syndicate of Atlanta The Citizens Bank of Fort Valley is declared by its officers to be vent and the suspension to desire to conserve assets. President Edwin Martin said had capital of $100,000 and and surplus undivided profits of There was run the bank fol. lowing news of the run in the Fourth The Byron bank had capital stock
11.July 19, 1930The Macon NewsMacon, GA
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PEACH COUNTY BANK CASE DECIDED
Supreme Court Upholds Decision on Seizure of Davidson Deposit
ATLANTA July 19. holder of an insolvent bank cannot set off his individual deposits against his legal responsibility to other depositors. the Georgia Supreme court ruled Saturday affirming decision of the Peach Superior court When the Citizens' bank of Fort Valley failed in 1928, each stockholder 100 per cent to pay depositors. E. Davidson owned 20 shares of capital stock and had more than 000 on deposit in the bank. The state issued an execution on the $2,000 and used the money to help pay deDavidson contended the state ob. tained the money under duress and sued for its return. The Peach court held the execution was legal and was Incidentally Davidson had his other deposits in the Fourth National bank at Macon. closed its doors the day before the Fort Valley bank The conviction of Marshall Phillips of Laurens for the murder of Leo Blackshear was upheld Phillips was sentenced to life last January and appealed The decision of the Coffee superior court, which found John Henderson guilty of the murder of Robert Mc Queen last year. also was affirmed Henderson was sentenced to life im-
