2709. Georgia State Bank (Atlanta, GA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
July 1, 1926*
Location
Atlanta, Georgia (33.749, -84.388)

Metadata

Model
gpt-5-mini
Short Digest
8056786c

Response Measures

None

Description

Georgia State Bank (Atlanta) closed following the receivership/failure of the affiliated Bankers' Trust Company (a chain effect). Articles report the bank 'closed its doors' when the trust company went into receivership and note tentative plans to reopen by mid-August 1926. No specific depositor run is described; closure appears to be a suspension tied to correspondent/affiliate failure.

Events (2)

1. July 1, 1926* Suspension
Cause
Correspondent
Cause Details
Closed after the affiliated Bankers' Trust Co. went into receivership; many member banks in the trust company chain suspended following that failure.
Newspaper Excerpt
the Georgia State Bank, Atlanta, ... When the latter institution went into receivership the State bank in closed its doors.
Source
newspapers
2. August 14, 1926 Reopening
Newspaper Excerpt
Tentative plans have been announced also for the reopening of the Georgia State bank of Atlanta and its twenty branches.
Source
newspapers

Newspaper Articles (3)

Article from Evening Star, July 16, 1926

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Article Text

ton, Commerce Bank and Trust Co., 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 at Whig. ham. Not Under State Control. Officials of the State Banking Department pointed out that virtually all of the Georgia banks that have closed were members of the Bankers Trust Co. chain. The Bankers' Trust Co., they said, was a. corporation and not under the supervision of the State Banking Department. The banks themselves, however, Judge Orville 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. Judge Park said that Gov. Walker heartily agreed with officials of the State Banking Department that the general banking situation in the State was in better condition than it had been in years. So thoroughly convinced of the fact was Gov. Walker, Judge Park said, that he started on his vacation yesterday. In a statement issued after the appointment of former Gov. Dorsey and Mr. Ottley as receivers for the trust company, T. R. Bennett of the State Banking Department declared the atmosphere was "clearing." "While several additional banks closed their doors today, the number is much less than anticipated,' he declared. "Practically all the banks which have suspended in the last few days were connected with the Bankers' Trust Co., and the failure of the trust company occasioned its suspension. When it is known that the trust company affairs are being prop. erly administered the banks and their customers will have a new feeling of security. Sees Banking as Sound. "I repeat what I said yesterday, that there is nothing wrong with Georgia and her financial institutions. The present flurry is due entirely to causes originating outside the State and does not Indicate any weakness on the part of Georgia banks. . . "In a number of cases there was no necessity of closing the banks even temporarily. The directors simply lost their heads and turned the banks over to the department. In a few days, when the present wave of hysteria has passed. they will realize that they acted hastily and without proper consideration.' Banks Previously Closed. The banks which closed previous to today were: Ball Ground Bank, Bank of Abbeville, Bank of Alapaha, Alma State Bank, Bank of Arnoldsville, Farmers and Traders' Bank, Atlanta; Bartow County Bank, State Bank of Cochran, Madison County Bank, Comer Bank, Bank of Chauncy, Farmers and Me. chanics' Bank, Chipley: Bank of Pow. der Springs, Bank of Plainville, Bank of Lexington, Bank of Roopville, Bank of Hiram, Bank of Hazelhurst, Richland State Bank, Temple Banking Co., City Commercial Bank of Woodbury, Bank of Warm Springs, Twiggs County Bank, Bank of Stapleton, Bank of Palmetto, Commercial Bank of Dallaw, Bank of Leesburg, Bank of Danville, Taylor County Bank, Butler; Bank of Lyerly, Bank of Cusseta, Rockmart Bank, Bank of Smyrna, Fairmount Bank, Macon County Bank, Oglethorpe; Lakewood Bank, Atlanta; Bank of Rochelle, Habersham County Bank, Clarkesville; Cornella. Bank, Cornelia: Cornella Bank, Demarest: Bank of Lula, Bank of Cassville, Bank of Williamson, Bank of Hamilton, Planters' Bank, Donaldsonville, and the Georgia State Bank, Atlanta, with branches in the following towns of the State: Baxley, Bowdon, Bronwood. Chatsworth. Cordell, Cummins. Douglas,


Article from New Britain Herald, August 14, 1926

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Article Text

ASK GUARDIAN TO END BANK MUDDLE S Manley, Atlanta Banker, Declared Mentally Incapable IS BLAMED FOR FAILURES Georgian Accused of Using Bank's Money for Own Purposes-Claims Against Him Amount to Over Two Million Dollars. Atlanta, Ga., Aug. 14. (AP) A guardian to administer the affairs of W. D. Manley, Atlanta banker, who has been indicted in connection with the recente losing of the Farmers and Traders bank of which he was president is sought in a hearing scheduled today. The petition for guardianship was filed by Joe Patterson. Manley's sonin-law, who alleges the banker is not mentally capable to conduct his affairs. A warrant issued yesterday for Manley charges that he allowed the Farmers and Traders Bank to "be come fraudently insolvent" July 12. The bank was capitalized at $25,000. $2,000,000 In Claims Manley is confronted with litigation in connection with the defunct Bankers Trust Company of which he was president. The Trust company recently was thrown into receivership and many small banks throughout Georgia and Florida, for which it was fiscal agent were closed. Receivers for the Trust company have b charged that Manley transferred a more than $500,000 in personal assets to the W. D. Manley and Co., Inc., to defraud his creditors who 1 have claims of more than $2,000,000 C against him. o It is further charged that Manley endorsed notes for approximately $900,000 for various banks in the t chain. o An answer filed by Mrs. Manley for her husband, denies the charges. The answer states that the n transfer of assets was made several months before the petition in bankruptcy was filed by the trust comd pany and that the "poor health and mental condition" of Manley made it necessary to place his private interests into a corporation in which they might be more efficiently handled. Meanwhile the Georgia state banking department, into whose hands were thrown the affairs of 83 small banks which closed, has announced that 20 of the institutions will open within the next two weeks. Several of the banks have a t already opened again. The Florida banking department has made a similar announcement to the Geor+ gia department. S Tentative plans have been anC nounced also for the reopening of a the Georgia state bank of Atlanta S and its twenty branches. The Geore gia state banks of which Manley t also was president, was capitalized a at $500,000 and was affiliated with r the Bankers' Trust company. When the latter institution went o into receivership the state bank in closed its doors. t


Article from Evening Star, August 14, 1926

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Article Text

WARRANT ACCUSES MANLEY OF FRAUD Georgia Banker Also Said to Have Transferred Funds. Guardian Asked. By the Associated Press. ATLANTA, August 14.-A guardian to administer the affairs of W. D. Manley, Atlanta banker, indicted in connection with the recent closing of the Farmers and Traders' Bank, of which he was president, is sought in a hearing scheduled for today. The petition for guardianship was filed by Joe Paterson, Manley's sonin-law, who alleges the banker is not mentally capable to conduct his affairs. A warrant issued yesterday for Manley charges that he allowed the Farmers and Traders' Bank to become "fraudulently insolvent" July 12. The bank was capitalized at $25,000. Manley also is confronted with litigation in connection with the defunct Bankers Trust Co., of which he was president. The trust company recently was thrown into receivership and many small banks throughout Georgia and Florida, for which it was fiscal agent, were closed. Receivers for the trust company have charged that Manley transferred more than $500,000 in personal assets to the W. D. Manley & Co., Inc., to defraud his creditors who have claims of more than $2,000,000 against him. It is further charged that Manley indorsed notes for approximately $900,000 for various banks in the chain. An answer filed by Mrs. Manley, actIng for her husband, denies the charge. The answer states that the transfer of assets was made several months before the petition of bankruptcy was filed by the trust company and that the "poor health and mental condition" of Manley made It necessary to place his private interests into a corporation in which they might be more efficiently handled. Meanwhile the Georgia State bank. Ing department, into whose hands were thrown the affairs of 83 small banks which closed, has announced that 20 of the institutions will open within the next two weeks. Several of the banks have already opened again. The Florida banking department has made a similar announcement. Tentative plans have been announced also for the reopening of the Georgia State Bank of Atlanta and its 20 branches. The Georgia State Bank, of which Manley also was president, was capitalized at $500,000 and was affiliated with the Bankers Trust Co. When the latter institution went into receivership the State bank closed its doors.