260. First National Bank (Sylacauga, AL)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
national
Bank ID
7451
Charter Number
7451
Start Date
July 11, 1932
Location
Sylacauga, Alabama (33.173, -86.252)

Metadata

Model
gpt-5-mini
Short Digest
17540adc

Response Measures

Full suspension

Other: Depositors organized a frozen-asset plan and meeting to reopen; sought RFC aid

Receivership Details

Depositor recovery rate
43.6%
Date receivership started
1932-07-27
Date receivership terminated
1940-07-29
Share of assets assessed as good
27.7%
Share of assets assessed as doubtful
39.0%
Share of assets assessed as worthless
33.2%

Description

Newspapers report a run that precipitated the bank closing (suspension) mid-July 1932. By July 28 depositors were organizing a frozen-asset plan and seeking reorganization/reopening, but no clear report of successful reopening is provided, so outcome is uncertain.

Events (5)

1. October 24, 1904 Chartered
Source
historical_nic
2. July 11, 1932 Run
Cause
Rumor Or Misinformation
Cause Details
Articles state rumors had caused a run on the bank the Monday and Tuesday before July 13, 1932.
Newspaper Excerpt
The First National bank of Sylacauga had to close its doors last week in order to safeguard depositors of the bank following a run on the bank.
Source
newspapers
3. July 13, 1932 Suspension
Cause
Rumor Or Misinformation
Cause Details
Bank did not open July 13 following the rumor-driven run earlier that week; closure intended to safeguard depositors.
Newspaper Excerpt
failed to open its doors for business Wednesday morning, July 13, after rumors had caused a run on the bank the previous Monday and Tuesday.
Source
newspapers
4. July 27, 1932 Receivership
Source
historical_nic
5. July 28, 1932 Other
Newspaper Excerpt
At a meeting ... business men and depositors of Sylacauga, discussed plans for aiding in the reopening or reorganization of the First National Bank ... depositors' frozen asset plan ... unanimous standing vote of approval the entire body showed their willingness to cooperate in this undertaking.
Source
newspapers

Newspaper Articles (2)

Article from The Cullman Tribune, July 21, 1932

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Article Text

ALABAMA ITEMS The First National bank of Sylacauga had to close its doors last week in order to safeguard depositors of the bank following a run on the bank. Hundreds of acres in Etowah county planted in corn and cotton were destroyed by the flood waters following the heavy rains of the past three weeks. At Manchester and Camak Mill section north of Jasper, a heavy wind storm hit and did much damage to timber on Wednesday of last week. Winston county farmers will hold a big pienie and spread dinner in the grove at Haleyville, July 28th. An entertaining program of many features has been arranged for the day. The store of Norman Lee at Leesburg, Cherokee county, was robbed of $200 worth of merchandise last Wednesday. The burglars used a truck to burst the back door down. The plant of the Concrete Steel company in Birmingham was destroyed by fire last Wednesday night. Three members of the fire company were injured by the collapse of the building. Loss is near $100,000. The dead body of a 17-year-old boy, Tom D. Carmichael of Montgomery, who attempted to escape arrest for stealing an automobile, was found Friday on a trash pile, near where he was fired upon as he fled in darkness, by officers. Ingalls Iron Works of Birmingham, has been awarded a contract for 1,150 tons of steel for the new postoffice building in Knoxville, Tenn. H. R. Jordan, one of the oldest and best known citizens of Collinsville, died at his home in He that city last Thursday. would have been 98 years old on October 7th. He had been a member of the Baptist church for more than 60 years and served as postmaster of his home town a number of years. As a result of the conditions of the financial condition of his customers, Wiley Littlejohn, a retired merchant of Clanton, cancelled all accounts on his books and made his former customers a receipt in full in hopes of aiding them pull through with their unfortunate conditions financial- Dr. L. H. Ford of Russellville, a leading and popular physician of Franklin county, was killed by Green Duke at the home of Duke near Phil Campbell, Monday afternoon of last week. The two men were brother-in-laws and when they engaged in a dispute the fatal blow was struck by Duke. After binding and placing the night policeman of Childersburg in a car, six bandits robbed four stores, then carried the policeman out of town for a mile and dumped him out on the roadside. The policeman was later picked up by a passing automobile and carried back to town, where he gave an alarm, but the bandits had made good their escape. The Rockwood Alabama Stone company has been awarded a contract to supply all of the finished stone for the courts and interior department of the justice building in Washington, D. C. This contract means the employment of 200 men day and night for seven or eight months.


Article from The Enterprise-Chronicle, July 28, 1932

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Article Text

EFFORTS MADE TO OPEN CLOSED BANK At a meeting held Tuesday afternoon at the Masonic Hall, a group of business men and depositors of Sylacauga, discussed plans for aiding in the reopening or reorganization of the First National Bank which failed to open its doors for business Wednesday morning, July 13, after rumors had caused a run on the bank the previous Monday and Tuesday. Garret Hagan, local attorney, after calling the meeting together, explained the purpose of the meeting to more than 150 men and women. Immediately an election was held with Jno. Ed Wallis elected chairman and Garret Hagan elected secretary. It was brought out in the meeting that two and possibly three methods might be followed in the reopening of the bank. The Government Reconstruction Finance Corporation might lend aid, or if depositors would agree to a frozen asset plan of action. The latter plan seemed to be the most likely method of quick action in the reopening. In an explanation of the depositors frozen asset plan, it was brought out that if every depositor agrees to leave his or her money in the bank for a certain period of time, say six to twelve months, and then at the end of that time only draw a certain percentage and wait for another period of time before drawing more money, with a small amount of additional capital added to the bank, the bank could then reopen its doors immediately. By a unanimous standing vote of approval the entire body showed their willingness to cooperate in this undertaking. Much enthusiasm was shown at this meeting and it is thought by many who attended that it is an important forward step to aid the First National Bank in reopening its doors. Another meeting of the depositors was to be held Thursday afternoon at 2 o'clock, where other depositors and stockholders of the bank were expected to be present. Any one interested in this movement or wishing information may get in touch with Jno. Ed Wallis, chairman, or Garret Hagan, secretary. Sylacauga Advance.