2692. City Savings Bank (Atlanta, GA)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: savings bank
Start Date: April 1, 1913
Location: Atlanta, Georgia (33.749, -84.388)

Metadata

Model: gpt-5-mini
Short Digest: 2017c691

Response Measures

Full suspension, Books examined

Description

Small run (gossip/unverified rumors) on City Savings Bank led directors to place the bank in the hands of the State Treasurer (temporary suspension/liquidation request) on 1913-04-01. Examiners found the bank solvent but a receiver (L. F. McClelland) was later appointed; assets were taken over by a new institution (Empire State/Empire Bank) in Oct 1913. The original bank did not resume operations under its name and was effectively closed and reorganized/taken over.

Events (4)

1. April 1, 1913 Run

Cause: Rumor Or Misinformation
Cause Details: Word-of-mouth gossip and unverified rumors triggered a small run and heavy withdrawals.
Measures: Directors decided to turn the bank over to the State Treasurer for liquidation to prevent unequal payments and to conserve cash.
Newspaper Excerpt: The bank faced a small run yesterday, and feared another run to-day. ... The troubles of the City Savings began yesterday because of word of mouth gossip
Source: newspapers

2. April 1, 1913 Suspension

Cause: Government Action
Cause Details: Directors requested the State Treasurer (State Treasury Department) take charge and liquidate after the run; bank temporarily closed and turned over to state control.
Newspaper Excerpt: The City Savings Bank closed its doors this morning. The State Treasurer is in charge. The State took charge at the request of the bank's directors.
Source: newspapers

3. September 24, 1913 Receivership

Newspaper Excerpt: Depositors in the City Savings Bank may expect a dividend within 30 days, according to L. F. McClelland, receiver. ... The City Savings, though solvent, closed its doors in the spring because of a run by alarmed depositors,
Source: newspapers

4. October 12, 1913 Other

Newspaper Excerpt: Empire State Bank will take over the assets of the City Savings Bank, which closed its doors on March 27, according to L. F. McClelland, receiver. The new bank will be opened for business early in November.
Source: newspapers

Newspaper Articles (17)

1. April 1, 1913 Atlanta Georgian Atlanta, GA

Article from Atlanta Georgian, April 1, 1913

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Started by Gossip, Given as Reason for Closing by the Vice President-$50,000 Deposits. The City Savings Bank closed its doors this morning The State Treasurer is in charge The State took charge at the request of the bank's directors. The bank faced a small run yesterday. and feared another run to-day. Cash was almost exhausted. and rather than let those first in line get their money while others would have to wait. the directors decided to close temporarily and let all share alike Officers of all the other financial institutions in Atlanta, when seen by Georgian reporters, declared emphatically that the banking situation in Atlanta will not be affected in the slightest degree by the action of the City Savings Bank. These officials emphasized the fact that there is no cause for any apprehension on the part of the public. Position of At. lanta banks is unusually strong: no other institutions are concerned in the action the City Savings Bank has taken, and the whole affair is merely an incident in banking circles. which will not cause a ripple on the surface of general conditions. Deposits Placed at $50,000. Deposits of the City Savings Bank are estimated by the bank examiners at $50,000. of which $19,000 is in checking accounts and $31,000 in savings accounts, There are 1,700 depositors. Directors declare the bank entirel solvent. Depositors will receive 10 cents on the dollar, and even the stockholders will suffer but small loss if any, according to the bank's off cers. No irregularity is even hinted The troubles of the City Savings began yesterday because of word of mouth gossip, current for several days. No newspaper had given dignity to this gossip by publishing it. and the rumors were spread only b' tongue. Depositors in the City Savings are men who could ill afford any loss. The average balance they carry is very small. It was estimated to-day that 200 checking accounts make up the $19,000 in that department, and that the $31,000 savings are held by 1,500 men, women and children. which makes the average account a trifle more than $20. Beauchamp Explains Act. But there will be no loss, according to the directors. C. S. Beauchamp. Jr., vice-president. issues the following statement "The directors of the City Savings Bank last evening passed a resolution deciding to turn the bank over to the State Treasurer for liquidation. The cause 01 this action was a heavy withdrawal of deposits yesterday. The assets of the bank are entirely adequate to take care of the depositors, but on account of having invested a large proportion of the working capital in purchase-money notes, this working capital could not be converted into cash immediately to meet the demand of checking depositors. The assets of the bank are intact. "The directors wish to state to the public and to the depositors that every dollar of deposits will be paid back, and, in addition to this, that the stockholders themselves have no cause to fear a loss." R. H. McDougall is president of the City Savings Bank; C. S. Beauchamp, Jr., vice-president; W. A. Sims, cashier. The other directors are James L. Wright, S. O. Wickers,

2. April 1, 1913 Atlanta Georgian Atlanta, GA

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Lack of Cash to Meet Demands, Started by Gossip, Given as Reason for Closing by the Vice President-$50,000 Deposits. The City Savings Bank closed 19 doors this morning. The State Treasurer is in charge. The State took charge at the request of the bank's directors. The bank faced a small run yesterday, and feared another run to-day. Cash was almost exhausted. and rather than let those first in line get their money while others would have to wait, the directors decided to close temporarily and let all share alike. Officers of all the other financial institutions in Atlanta. when seen by Georgian reporters, declared emphatically that the banking situation in Atlanta will not be affected in the slightest degree by the action of the City Savings Bank. These officials emphasized the fact that there is no cause for any apprehension on the part of the public. Position of Atlanta banks is unusually strong: no other institutions are concerned in the action the City Savings Bank has taken, and the whole affair is merely an incident in banking circles, which will not cause a ripple on the surface of general conditions. Deposits Placed at $50,000. Deposits of the City Savings Bank are estimated by the bank examiners at $50,000 of which $19,000 is in checking accounts and $31,000 in sayings accounts There are 1,700 depositors Directors declare the bank entirely solvent Depositors will receive 100 cents on the dollar and even the stockholders will suffer but small loss, if any. according to the bank's officers. No irregularity is even hintéri. The troubles of the City Savings began yesterday because of word of mouth gossip. current for several days. No newspaper had given dignity to this gossip by publishing it. and the rumors were spread only by tongue. Depositors in the City Savings are men who could ill afford any loss. The average balance they carry is very small. It was estimated to-day that 200 checking accounts make up the $19,000 in that department. and that the $31.000 savings are held by 1.500 men. women and children. which makes the average account a tritle more than $20. Beauchamp Explains Act. But there will be no loss. according to the directors. C. S. Beauchamp. Jr., vice-president. issues the following statement: "The directors of the City Savings Bank last evening passed a resolution deciding to turn the bank over to the State Treasurer for liquidation. The cause 0, this action was a heavy withdrawal of deposits yesterday. The assets of the bank are entirely adequate to take care of the depositors, but on account of having invested a large proportion of the work: ing capital in purchase-money notes, this working capital could not be converted into cash immediately to meet the demand of checking depositors. The assets of the bank are intact. "The directors wish to state to the public and to the depositors that every dollar of deposits will be paid back, and, in addition to this, that the stockholders themselves have no cause to fear a loss." R. II. McDougall is president of the City Savings Bank: C. S. Beauchamp. Jr.. vice-president; W. A. Sims, cashier The other directors are James 1. Wright, S. O. Wickers, G. Hunt F M Loveless and J. M. Speer The bank was organized about fifteen months agu, to do a savings business It took over the savings deposits of the Guarantee Trust and

3. April 2, 1913 The Times Dispatch Richmond, VA

Article from The Times Dispatch, April 2, 1913

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BANK'S DOORS CLOSED Officers Say Run In Caused by Unverified Rumors. Atlanta, Ga., April 1.-The City Savings Bank, of this city, at the request of its directors. to-day went into the hands of the State Treasury Department. following a small run on the institution yesterday. The bank was organized fifteen months ago to do a savings business. At that time the institution took over the savings deposit of the Guarantee Trust and Banking Company, which at that time retired from the general banking business. R. H. McDougall is president of the City Savings Bank. Officers of the institution declare that the bank's 1,700 depositors will receive 100 cents on the dollar. The last report of the institution to the State Treasurer, January 27, 1313, showed its capital stock paid in amounted to $43,129.94--authorized capital $50,000. Deposits of the institution are said to amount to $19,000 in checking accounts and $31,000 in savings accounts. Officers of the institution contend that the small run Monday was caused by unverified rumors.

4. April 2, 1913 The Pensacola Journal Pensacola, FL

Article from The Pensacola Journal, April 2, 1913

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Run on Atlanta. Bank Causes it to Close Doors BY ASSOCTATED PRESS. Atlanta, April 1.-The City Savings bank, at the request of the directors, today went into the hands of the state, treasury department, following a small run yesterday. The bank was organized fifteen months ago. R. H. McDougall, the president, declared the creditors would receive a hundred cents on the dollar.

5. April 2, 1913 The Sentinel=record Hot Springs, AR

Article from The Sentinel=record, April 2, 1913

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BANK TO LIQUIDATE. Atlanta, Ga., April 1.-The city savings bank of this city, at the request of its directors, today went into the hands of the state treasure department following a small run on the institution yesterday. The officers declare that all depositors ill receive 100 cents on the dollar.

6. April 2, 1913 Atlanta Georgian Atlanta, GA

Article from Atlanta Georgian, April 2, 1913

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Fearing Repetition of Yesterday's Run, Directors Ask State Treasurer to Take Charge, Declaring That None Will Lose a Penny. Lack of Cash to Meet Demands, Started by Gossip, Given as Reason for Closing by the Vice President-$50,000 Deposits. The City Savings Bank closed its doors this morning. The State Treasurer is in charge The State took charge at the request of the bank's directors. The bank faced a small run yesterday, and feared another run to-day. Cash was almost exhausted. and rather than let those first in line get their money while others would have to wait, the directors decided to close temporarily and let all share alike Officers of all the other financial institutions in Atlanta, when seen by Georgian reporters, declared emphatically that the banking situation in Atlanta will not be affected in the slightest degree by the action of the City Savings Bank. These officials emphasized the fact that there is no cause for any apprehension on the part of the public. Position of Atlanta banks is unusually strong: no other institutions are concerned in the action the City Savings Bank has taken, and the whole affair is merely an incident in banking circles, which will not cause a ripple on the surface of general conditions. Deposits Placed at $50,000. Deposits of the City Savings Bank 1 are estimated by the bank examiners at $50,000. of which $19,000 is in checking accounts and $31,000 in savings accounts There are 1,700 depositors. Directors declare the bank entirely solvent. Depositors will receive 100 cents on the dollar, and even the stockholders will suffer but small loss, if any. according to the bank's officers. No irregularity is even hinted. The troubles of the City Savings began yesterday because of word of mouth gossip. current for several days. No newspaper had given dignity to this gossip by publishing it, and the rumors were spread only by tongue. Depositors in the City Savings are men who could ill afford any loss. The average balance they carry is very small. It was estimated to-day that 200 checking accounts make up the $19,000 in that department, and that the $31,000 savings are held by 1,500 men, women and children, which makes the average account a trifle more than $20. Beauchamp Explains Act. But there will be no loss, according to the directors. C. S. Beauchamp. Jr., vice-president, issues the following statement: "The directors of the City Savings Bank last evening passed a resolution deciding to turn the bank over to the State Treasurer for liquidation. The cause of this action was a heavy withdrawal of deposits yesterday. The assets of the bank are entirely adequate to take care of the depositors, but on account of having invested a large proportion of the working capital in purchase-money notes, this working capital could not be converted into cash immediately to meet the demand of checking depositors. The assets of the bank are intact. "The directors wish to state to the public and to the depositors that every dollar of deposits will be paid back, and, in addition to this, that the stockholders themselves have no cause to fear a loss." R. H. McDougall is president of the City Savings Bank: C. S. Beauchamp. Jr., vice-president: W. A Sims. cashier The other directors are James 1. Wright, S. O. Wickers, J. G Hunt E' M. Loyeless and J. M. Speer The bank was organized about fif. teen months ago, to do a savings business It took over the savings deposits of the Guarantee Trust and

7. April 2, 1913 Atlanta Georgian Atlanta, GA

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# EXAMINERS FIND # BANK PAPER O. K. Effort Will Be Made to Avoid the Apopintment of Receiver for City avings Bank. Directors of the City Savings Bank met this morning in the office of the State Treasurer, and went over the loans of the institution. The bank's paper was found to be excellent, and the bank to be in good shape. Near- ly every loan was declared to be good. A meeting of the stockholders will be held as soon as possible, and at this meeting a decision will be reach- ed as to what course to pursue. An effort will be made to avoid a re- ceivership, which it is feared might be expensive. Under the scrutiny of the examin- er, paid-in capital stock shrank to $14,383.44. Loans past due, however, had been reduced since January 27 from $11,000 to $3,041.50. Much of the bank's paper is very small loans, which is regarded as en- couraging. Cash on hand yesterday was but $1,016.74, indicating that the run of Monday amounted to $3,000 or $4,000. A remarkable state of affairs was shown in that the City Savings owed no other banks a cent, and had no bills payable.

8. April 2, 1913 Atlanta Georgian Atlanta, GA

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EXAMINERS FIND BANK PAPER 0. K. Effort Will Be Made to Avoid the Appointment of Receiver for City Savings Bank. Directors of the City Savings Bank met this morning in the office of the State Treasurer, and went over the loans of the institution. The bank's paper was found to be excellent, and the bank to be in good shape. Nearly every loan was declared to be good. A meeting of the stockholders will be held as soon as possible, and at this meeting a decision will be reached as to what course to pursue. An effort will be made to avoid a receivership, which it is feared might be expensive. Under the scrutiny of the examiner, paid-in capital stock shrank to $14,383.44. Loans past due, however, had been reduced since January 27 from $11,000 to $3,041.50. Much of the bank's paper is very small loans, which is regarded as encouraging. Cash on hand yesterday was but $1,016.74, indicating that the run of Monday amounted to $3,000 or $4,000. A remarkable state of affairs was shown in that the City Savings owed no other banks a cent, and had no bills payable.

9. April 3, 1913 Atlanta Georgian Atlanta, GA

Article from Atlanta Georgian, April 3, 1913

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EXAMINERS FIND BANK PAPER 0. K. Effort Will Be Made to Avoid the Appointment of Receiver for City Savings, Bank. Directors of the City Savings Bank met this morning in the office of the State Treasurer, and went over the loans of the institution. The bank's paper was found to be excellent. and the bank to be in good shape. Nearly every loan was declared to be good. A meeting of the stockholders will be held as soon as possible, and at this meeting a decision will be reached as to what course to pursue. An effort will be made to avoid a receivership, which it is feared might be expensive. Under the scrutiny of the examiner, paid-in capital stock shrank to $14,383.44. Loans past due, however, had been reduced since January 27 from $11,000 to $3,041.50. Much of the bank's paper is very small loans, which is regarded as encouraging. Cash on hand yesterday was but $1,016.74, indicating that the run of Monday amounted to $3,000 or $4,000. A remarkable state of affairs was shown in that the City Savings owed no other banks a cent, and had no bills payable.

10. April 3, 1913 The Times Dispatch Richmond, VA

Article from The Times Dispatch, April 3, 1913

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BANK DECLARED SOLVENT State Examiner Says It Is in Excellent Financial Condition. Atlanta, Ga., April 2.-State Bank Examiner W. J. Speer, who yesterday took charge of the City Savings Bank, of Atlanta, upon the request of the institution's officials, to-day declared that the bank is solvent and in excellent financial condition. The affairs of the bank were turned over to the State Treasury after a small run on the institution Monday. In a statement made public to-day the State Bank Examiner announces that the assets of the Institution are $97,340, with liabilities amounting to $57,421.

11. April 3, 1913 The Daily Missoulian Missoula, MT

Article from The Daily Missoulian, April 3, 1913

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RUN ON SMALL BANK. Atlanta, Ga., April 8.-The City Savings bank of this city, at the request of its directors, went into the hands of the state treasury department today following a small run on the institution yesterday. Officers of the institution declared that the bank's 1,700 depositors will receive 100 cents on the dollar. The last report of the institution showed paid-in capital stock of $43,129.94. Deposits are said to be $50,000.

12. April 4, 1913 The Richmond Climax Richmond, KY

Article from The Richmond Climax, April 4, 1913

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Judge J.M. Benton, at Winchester, refused to dismiss the indictment against M. C. Smith charging him with perjury. Senator Bradley sent $100 to Governor McCreary as his personal contribution to rel eve the suffering of Kentucky flood victims. Henry W. Kiel, Republican, was elected Mayor of St. Louis, by 2,139 p urality over Dr. John H. Simon, Democrat. Gov. Sulzer, of New York, accuses Chairman Barnes, of the Republican State Committee, with meddling with the Assembly. While catching logs in Kentucky river at High Bridge, Sam Green was thrown from his boat and drowned. His body has not been found. Six of a family who lost their lives in the flood at Dayton, Ohio, were buried in a single grave at Williamstown, this State. Mrs. Woodrow Wilson paid a visit to the Bureau of Engraving and Printing and investigated the employment conditions with relation to girls. Commissioner Harlan reports that Colorado railroads issued more than 7,000 free passes in one month and that public officials are among the grafters. The Prison Board has appointed Dr. W.® C. Caywood, of Winchester, physician at the Frankfort Reformatory to succeed Dr. E. H. Maggard resigned. Welcomed by 3,000 students of Yale University, former President Taft arrived at New Haven to take up his duties as professor of law in Yale University, Directors of the City Savings Bank. of Atlanta, placed its affairs in the hands of the State treasurer department following a small run on the previous day. Thirty quarts of nitroglycerine, believed to have been buried by Ortie E. McManigal, were found by road commissioners examining a highway near Muncie, Ind. "Senator James has notendorsed Mayor Wallace, of Danville, or anyone, to my knowledge, for the Collectorship," wires Private Secretary Richardson from Washington. The Tennessee Senate concurred in a House resolution ratifying the Federal constitutional amendment providing for the election of U. S. Senators by popular vote. Senators James and Bradley appealed to the War Department and the Red Cross tor quick aid at Catlettsburg. at which point 3,000 people are reported homeless, due to the flood. Over 5,000 barrels of whisky were plunged into the Ohio river when warehouse E of the Rugby Distilling Co., at Louisville, collapsed, as the result of the high waters. M. J. Farris, Jr, sold to Millard F. Allen six Jersey heifers for $200. C. R Martin bought a bunch of butcher cattle from W. T. Robinson at $5.50.Danville Advocate. Dayton is planning to ask the Federal Government to loan that city $20,000,000 to $40,000,009 for reconstruction purposes. The damage done by the flood is estimated at $150,000,000. Thus far there are 15 more known dead from the flood at Chillicothie, O. The waters have receded, but the afflict ed districts are in need of relief in the form of food and clothing. Joseph C. Phillips, a wealthy farmer and stockman of Marion county, died at his home near Lebanon. He was 55 years old. His wife was Miss Alice Winchester, & daughter of Hon. Boyd Winchester, of Louisville, Four republican members of the lower House of the Tennessee Legislature left the State after foiling an attempt by democratic regulars to kidnap them in order to have a quorum during action on the election bill affecting the veto power. Testifying at Winchester in the case of M. 0, Smith. charged with having perjured himself in one of the Callahan

13. September 24, 1913 Atlanta Georgian Atlanta, GA

Article from Atlanta Georgian, September 24, 1913

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# City Savings Likely # To Pay Dividend Soon. Depositors in the City Savings Bank may expect a dividend within 30 days, according to L. F. McClelland, receiver. "Preparations now are being made to submit a statement of condition to the judge," said Mr. McClelland Wednesday. "Collections have been as good as looked for and there will be no untoward delay in making the first payment." The City Savings, though solvent, closed its doors in the spring because of a "run" by alarmed depositors,

14. September 24, 1913 Atlanta Georgian Atlanta, GA

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15. October 12, 1913 Atlanta Georgian Atlanta, GA

Article from Atlanta Georgian, October 12, 1913

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# Empire Bank Takes Over City Savings Receiver Announces That New Financial Institution Will Open for Business in November. The new Empire State Bank will take over the assets of the City Savings Bank, which closed its doors on March 27, according to L. F. McClelland, receiver. The new bank will be opened for business early in November. McClelland planned to request the court's permission to pay a dividend to depositors in the City Savings Bank, but this was abandoned when it was decided to reorganize. The new bank will be operated by an entirely new set of directors, and with outside capital, it is said.

16. October 12, 1913 Atlanta Georgian Atlanta, GA

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New Bank to Take Over City Savings Empire State Asks Charter and Will Assume Obligations of Failed Institution. The business of the City Savings Bank, on East Alabama street, which closed on March 27 and later went into the hands of a receiver, will be

17. October 12, 1913 Atlanta Georgian Atlanta, GA

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New Bank to Take Over City Savings Empire State Asks Charter and WIII Assume Obligations of Falled Institution. The business of the City Savings Bank, on East Alabama street, which closed on March 27 and later went into the hands of a receiver, will be