272. Bank of Valley Head (Valley Head, AL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
May 28, 1929
Location
Valley Head, Alabama (34.569, -85.615)

Metadata

Model
gpt-5-mini
Short Digest
996c70dc

Response Measures

None

Description

Articles (May 28–29, 1929) report the Bank of Valley Head was closed by the state banking superintendent because of frozen loans and gradual shrinkage; a liquidating agent (Judge Faucett) was appointed. No bank run or depositor panic is described. OCR errors in the first article were corrected (e.g., 'Valley bank closed today by direction' clarified as state-ordered closure and cashier 'Luther Graves' found unconscious in the vault).

Events (1)

1. May 28, 1929 Suspension
Cause
Government Action
Cause Details
Closed by the state bank department/superintendent after discovery of frozen loans, gradual shrinkage of assets and inability of president to keep bank open; liquidating agent appointed.
Newspaper Excerpt
Valley bank closed today by direction ... state department ... closed the Bank of Valley Head ... closed on account having 'frozen' loans ... liquidating agent, Judge Faucett, appointed.
Source
newspapers

Newspaper Articles (2)

Article from The Huntsville Times, May 28, 1929

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Article Text

COMMENCEMENT BLOUNTSVILLE UNIVERSITY Degrees Are Conferred Upon Senior Class Of More Than Three Hundred Degrees upon more 300 members today marking the close the The by awards by Dr. George Den president crowd that thronged Morgan Hall and the Because the large number of graduates celving program as has been the custom recent Governor the guest night which Henry Carnegie New York. delivered the principal ad Denny chimes, housed in the presented the yesterday Jerome chairman the Denny Chimes ecutive presented Carrilon tower to Governor Graves turn the presentation to Dr. Denny The was over station At the alumni banquet last night officers Vane King president; McQueen. first Dr. John president: Elbert Douglas, vice president representing medical school graduates: Washington for Hill secretary New the alumni Daniel Mobile: MontJr., Ozark Luther Tuskegee: Gordon Gadsden: William From the congressional districts: Robert Alto 97. TemJerry and Dr. Ensley. memfrom David Crawford. '98. Smith, Atlanta. '96, members national at large. The Algernon Sydney Sullivan annually by York Society students such mind conduct spirit for awarded Ella Haughton Quinton addition New York award. Davidson carried off five other prizes. He received the key Delta Sigma highest in during his the school of awarded similar prize for highest scholarship the the commerce the Phi loving cup the in the school and the Life prize for the best essay on William Haleyville, captain the 1928 the loving the best the Smith won his letter football Other winners were William prize James Permutt Bay Shore, winners Sterne company's prizes the freshman classes respectively: Victor Scharnagel. SimpEufaula. Book ComDonald Sanford. BirTheta award: WarNew Conn. Tau prize: Nanisch Reid, WoodBiblical of New Ga., York Clara Chi Omega William bile. Inge Hill. Montgomery. Alpha Munford. Gammedal: Horton Saunders prize: Charles AppleJoseiah and the William Wood Company More students places honor roll for excellence in scholarship. Cashier Graves Found Unconsious In Vault, In Serious Condition May The bank of today following finding day of Luther Graves, cashier, in the vault of the Graves still today and in serious Wittmeler of the was here the Thomas, director state check the affairs the bank the reopenits doors soon as possible. person connected with the bank were difficulover was the vault had while apparently came trying to The bank $15,000 surplus of Closed VALLEY bank Valley Head closed today by direction action was because gradual shrinkage and frozen loans from which the turned state department for Auditors were here today upon orders Judge Thomas, state bankdepartment director, to investithe the and if the can be reThe bank was capitalised at 000 surplus of Judge May Judge Thomas. state tendent banks. issued formal today with the closing the Bank and the Bank of ValHead. Regarding the Blountaville bank. he "In to the unfortunate the Blountsville yesterday. have obtained from Wilson. former state bank examinwho through my reported to the he confer Wittmeler. its other officials: "Luther cashier. was found the dition. and the where the been opened This being bank operated by Mr. closed cause the anytake charge during his anticipate reopening this bank just charge bank Other officials the bank serving in more or less an honorary capacity and are not position training the "This has loans been under supervision past several months. as soon as one department's the will facts pertaining reason this time why this bank should not reopened soon as an expert can safe and responsible placed in disposition to crewas the bank lending every connection with the closing of the Valley Head bank. Judge Thomstated: Following communication with Lowry. president the Bank Head. find the bank was of many frozen loans fact that unable care for the that were on The and gradual convinced the president that would impossible keep the open longer. He at once called the directors together and passed resoluclose the the state superintendent of sent one of my exJudge Fawcett, liquidating agent, the bank Head. have learned that excellent the being opened an date in and better financial than exprior to its closing. Valley Head an aggressive little most essential that this bank reopened on sound financial


Article from The Montgomery Advertiser, May 29, 1929

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Article Text

TWO BANKS IN ALABAMA CLOSE (Continued From Page One) one of my examiners to into the details then can tell true pertaining condition, but see reason this time this should not can safe and some one take charge. There was no to this bank. The the town are cooperating them "Frozen" Loans. From telephone with Lowry, president the Bank Valley Head, Judge Thomas found bank closed on account having and the not able of the that were falling day. "The and gradual the stated, the president he not able keep doors open. ed the together and passed resolution the turn its assets to the banks. my examiners and Judge Faucett, the liquidagent, to the Bank Valley that are some the being date and than was prior to closing. has but and that this bank can be, in strong and substantial way."