2527. Bank of Preston (Preston, GA)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
November 27, 1928
Location
Preston, Georgia (32.066, -84.537)

Metadata

Model
gpt-5-mini
Short Digest
8c75ac7f87ab1731

Response Measures

None

Description

Contemporary accounts report heavy withdrawals (a run) on small Peach-Belt banks including the Bank of Preston following the failure/closing of the Fourth National Bank of Macon and ensuing rumors. The Bank of Preston closed (suspended) after heavy withdrawals on Nov. 28, 1928; state examiners/auditors took charge and reopening/reorganization was forecast. OCR errors in some articles (e.g., 'Byromville'/'Byronville') were corrected where obvious.

Events (3)
1. November 27, 1928 Run
Cause
Rumor Or Misinformation
Cause Details
Heavy withdrawals at local banks (including Bank of Preston) caused by a 'financial scare' and baseless rumors connected with the collapse/closing of the Fourth National Bank of Macon.
Measures
Directors voted to close/suspend to preserve/conserve assets; State Banking Department/examiner took charge; auditors appointed to adjust affairs.
Newspaper Excerpt
The institutions were closed after heavy runs Tuesday due to the financial scare that followed closing of the Macon bank.
Source
newspapers
2. November 28, 1928 Suspension
Cause
Rumor Or Misinformation
Cause Details
Closure/suspension was a defensive measure following runs sparked by news/rumors about the Fourth National Bank of Macon; State Banking Department took charge and reopening was anticipated.
Newspaper Excerpt
Eight small Georgia banks were closed today as result of the failure Monday of the Fourth National Bank of Macon ... The institutions were closed after heavy runs Tuesday due to the financial scare that followed closing of the Macon bank.
Source
newspapers
3. November 29, 1928 Other
Newspaper Excerpt
The affairs of eight middle Georgia banks were in the hands of the State Banking Department ... officers assured depositors of protection and announced that reorganization and reopening would be effected as soon as possible.
Source
newspapers

Newspaper Articles (10)
1. November 28, 1928 The Birmingham Post Birmingham, AL
Article from The Birmingham Post, November 28, 1928

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Article Text

EIGHT GEORGIA BANKS CLOSED Institution Drags Small Ones Down United MACON, Nov. 28. Eight small Georgia banks were closed today result of failure bank, Macon, with listed reof more than With the exception the Citizens' bank, of Fort Valley, capitalized at other institutions, Bank of Byronville, Irwinton bank, Bank of Preston, Citizens' Bank company, of Culloden, Bank of Bradley, Farmers' Merchants' bank, of Gordon, Farmers' bank, of at from $15,000 to were closed aftheavy runs due to the scare that followed ing of the Macon bank. All the banks are located in the Georgia peach With Clyde J. Edwards in charge of an audit, and Claude Gilbert, named of the Fourth National plans under today to adjust affairs could be cared for. Exact cause of the run was concealed, altho circles said recent investments had turned out poorly.

2. November 28, 1928 The Pittsburgh Press Pittsburgh, PA
Article from The Pittsburgh Press, November 28, 1928

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Article Text

NINE BANKS CLOSED Eigh Shut After Collapse of One in Macon. By The United Press. Macon, Ga., Nov. 28.-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 $11,000,000. With the exception of the Citizens Bank of Fort Valley, capitalized at $100,000, the other institutions. the Bank of Byronville Irwinton Bank, Bank Preston. Citizens Bank Co. of Culloden, Bank Bradley, Farmers &, Merchants Bank of Gordon and Farmers Bank of were 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 were located in the Georgia peach belt.

3. November 28, 1928 Evening Courier Camden, NJ
Article from Evening Courier, November 28, 1928

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Article Text

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

4. November 28, 1928 The Brooklyn Daily Times Brooklyn, NY
Article from The Brooklyn Daily Times, November 28, 1928

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Article Text

EIGHT MORE BANKS CLOSE IN GEORGIA Failures in Peach Belt Due to Collapse Yesterday of $11,000,000 Institution. Macon, Ga., Nov. small Georgia banks closed today as the failure Monday of the Fourth National Bank of Macon, with listed resources of more than $11,000,000. With the exception of the Citizens Bank Fort Valley, capitalized at the other institutions, the Bank of Byronville, Irwinton Bank, Bank Preston, Citizens Bank Company Culloden, Bank of Bradley, Farmers Merchants Bank of Gordon, Farmers Bank of Byron were capitalized at from $15,000 to The institutions were closed after heavy runs due the financial that followed closing of the bank. All he banks located in the With Clyde Edwards in charge of an audit, Gilbert, named receiver of the Fourth National here, plans under today to adjust affairs so creditors cared for Exact cause of the run concealed, although circles recent turned out poorly.

5. November 28, 1928 The Times-News Twin Falls, ID
Article from The Times-News, November 28, 1928

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Article Text

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.

6. November 28, 1928 Transcript-Telegram Holyoke, MA
Article from Transcript-Telegram, November 28, 1928

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Article Text

EIGHT MORE BANKS CLOSED IN GEORGIA Shut-Down of Fourth National in Macon After Run Forces Others to Appeal to State Two Declared Insolvent. Ga., Nov. the closing the Fourth National Bank Macon after run, eight other financial institutions have turned their affairs over the State Banking said that the closing of the Macon bank forced the others shut down. The banks involved are the Farmers' Bank of Byron, the Citizens' Bank Fort Valley, the Irwinton Bank of Irwinton. the Bank of Byromville. the Bank of Bradley. the Farmers and Merchants Bank of Gordon. the Bank of Culloden and the Bank Preston. The State Bank Examiner will take charge at once and every effort be made reorganize and reopen the banks soon What caused the run on the Macon bank not known. One report lays to rumors regarding the dropping of negotiations for the sale of the Fourth National to syndicate of lanta financiers. The Citizens' Bank of Fort Valley declared by its officers be solvent and the suspension attributed to desire to conserve assets. President Martin said had cap. ital of $100,000 surplus and undivided profits of $80,000. There on the bank yes. terday following of the run on the Fourth National of Macon. The Byron Bank had capital stock of deposits of about $15. 000. H. Weaver president. Officers said that the bank was solvent and that the closing was made to The Fourth National Bank of Maone of the largest institutions in middle Georgia. was organized nineago and had capital stock of $500,000. of more than and deposits of about At one time during the about people on hand. The police any disorder. President Leon Dure today that plans being pushed rapidly. and that the would suffer hardship result of the closing. new be formed at once It stated. to take over the existing to the Georgia and pay all positors in full, provided they select this course. Meantime, Ellis D. Robb, chief na tional bank of the Sixth District, had taken over the affairs of liquidation and received will named.

7. November 29, 1928 Evening Star Washington, DC
Article from Evening Star, November 29, 1928

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Article Text

GEORGIA UNRAVELS BANKS' SUSPENSION Affairs of Eight Institutions in Hands of State-Reopening Is Forecast. By the Associated Press. MACON, Ga., November 29.-The affairs of eight middle Georgia banks were in the hands of the State Banking Department behind closed doors yesterday as a sequel to the closing of the Fourth National Bank of Macon Monday. The Macon bank was their Federal Reserve agent. In each case officers assured depositors of protection and announced that reorganization and reopening would be effected as soon as possible. Heavy withdrawals brought baout by a "financial scare" over the condition of the Fourth National were blamed in every instance. Meanwhile, the directorate of the Fourth National was busy arranging conferences looking toward reorganization and capitalization at $750,000 instead of $500,000 as at present. Claude Gilbert of the Insolvency Division of the United States Treasury Department has been designated as receiver by the controller of the currency. Auditors working under Ellis D. Robb, chief national bank examiner of the Sixth Federal Reserve District, continued their survey of the bank's books. In Peach Crop Area. The largest of the eight institutions closing yesterday was the Citizens' Bank of Fort Valley, capitalized at $100.000. The others had capital listed between $15,000 and $25,000. Macon and Fort Valley are among the larger shipping centers in Georgia's extensive peach growing section. While officers of the Fourth National yesterday were issuing a statement which said a two-hour run Monday was due to "baseless rumors" connected with the collapse of negotiations for sale of the institution to Atlanta financiers, the city commission was passing a resolution of confidence in its officers and directorate. The resolution urged all citizens to adopt an attitude of confidence and co-operation. Besides the Fort Valley Bank. the other institutions which are closed are the Irwinton Bank. Irwinton: Bank of Byronville: Bank of Bradley: Farmers' and Merchants' Bank of Gordon: Citizens' Bank of Culloden: Bank of Preston, and Farmers' Bank of Byron. Business Man Cut. An altercation over the closing of the Fort Valley Bank yesterday was responsible for knife wounds which today confined George Slappey, business man of that city, to his bed. Dr. W. S. White, mayor of Fort Valley. was the other participant. several witnesses said. No charges have been placed against the mayor. The encounter was said to have been preceded by a "friendly argument" over policies of the city in depositing municipal funds. Neither was interested in the management of the bank.

8. November 29, 1928 The Valdosta Daily Times Valdosta, GA
Article from The Valdosta Daily Times, November 29, 1928

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Article Text

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, 1928 The Altus Times-Democrat Altus, OK
Article from The Altus Times-Democrat, November 29, 1928

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Article Text

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, 1928 The News Paterson, NJ
Article from The News, November 30, 1928

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Article Text

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