2840. Cornelia Bank (Cornelia, GA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
July 15, 1926
Location
Cornelia, Georgia (34.511, -83.527)

Metadata

Model
gpt-5-mini
Short Digest
95e0d645

Response Measures

None

Description

Cornelia Bank was one of many Georgia state banks that closed mid-July 1926 after the bankruptcy/receivership proceedings against Bankers' Trust Company of Atlanta, which functioned as the financing/correspondent for a chain of banks. The bank was listed closed around July 15, 1926 and is explicitly listed among 15 banks that reopened by Sept 14, 1926. No specific depositor run on Cornelia Bank is described in the articles; the cause of suspension is failure of its correspondent/financing agent (Bankers' Trust).

Events (2)
1. July 15, 1926 Suspension
Cause
Correspondent
Cause Details
Closed following bankruptcy proceedings against Bankers' Trust Company of Atlanta, which served as financing agent/correspondent for a chain of banks
Newspaper Excerpt
The Georgia banks listed as closed ... Cornelia Bank Cornelia, ...
Source
newspapers
2. September 14, 1926 Reopening
Newspaper Excerpt
The 15 banks that have already been reopened are: ... Cornelia Bank. Demorest Branch of Cornelia Bank. ...
Source
newspapers

Newspaper Articles (3)
1. July 16, 1926 The Miami Herald Miami, FL
Article from The Miami Herald, July 16, 1926

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Article Text

NAME BANK RECEIVERS Take Charge of Trust Company In Georgia Heading Chain; 19 More Banks Close. [BY THE ASSOCIATED PRESS.] TLANTA, July 15.-Fifteen addiA tional state banks In Georgia and four state banks in Florida tonight were listed as having closed their doors following bankruptcy proinstituted the ers Trust Company This brought the total number of banks closed In Georgia this week to 64. Receivers for the Bankers Trust Company named today. The finan cial circles attributed to the proceedings the trust company, which the financcompany for string of 120 chain banks. The four Florida banks were reported to have been of the system. Many banks, the department said, would as as other financing arrangements be made The Georgia banks listed as closed Taylor County Bank, Butler: Bank Lyerly, Bank Bank, Bank of Smyrna, Fairmount Bank, Macon Bank of OgleBank of Atlanta, Bank of Rochelle, Habersham Bank Clarkesville, Cornelia Bank Cornelia, Bank Lula, Bank Cassville, Bank of Williamson and the Cornelia Bank of Demarest. The four Florida banks closed were the Bank Eustis, Bank Bank and the Bank of Umatilla, each of which through posted on their doors announced that they temporarily for the proand K. Ottley of the Fourth Naof The Bank of Umatilla Tuesday inagainst Trust Company of Atlanta for more than $400,000. applying for receivfor Former Hugh M. Dorsey tional Bank of designated for the Bankers Trust Company The trust served as financial for 120 banks, Baker, its told court, but did not receive deposits subject to check.

2. July 16, 1926 The Commercial Appeal Memphis, TN
Article from The Commercial Appeal, July 16, 1926

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Article Text

BANKS STILL POPPING IN STATE OF GEORGIA Fifteen Additional Crashes Bring Total to 64. FLA, HELPS CAUSE ALONG Four Institutions in Palmetto State Post III-Omened Notices on Bank Blayed the Part of Blind Samson. ATLANTA, Ga., July (AP) Fifteen additional state banks in Georgia and four state banks in Florida tonight are Tisted as having closed their doors following the bankruptcy proceedings instituted against Bankers Trust Company of Atlanta. This brought the total number of banks in Georgia to 64. The closings generally among financial circles were attributed to the bankruptcy proceedings against the Bankers Trust Company, which was the financing company for a string of 120 banks. The four Florida banks were reported to have been members of the system. Many of the banks, the department probably would reopen as soon other financing arrangements could made. Officials the belief that number of them would be found be good shape, having turned their affairs over to the department pending re-organization and the completion of other financing plans. List Banks. The Georgia banks listed today. tocapitalization and total resources and liabilities as County Butler $15,000 and Bank Cusseta Mart and of $16,300 Bank Macon Atlanta Bank of Roch$25,000 and HaberCornelia Bank. and of Lula, Bang and Cornelia Bank, Demarest, statement was four Floriad reported The the Citizen Bank EusBank Mount Dora, Bank Bank through notices posted they their temporarily protecUmatilla Tuesday inThe Bank against the Bankers suit Trust for obtaining injunction ficials of the company any which it acted as financing agent. oning of Trouble. In its suit. the Umatilla Bank leged the hundred from the bank distributed the money among Georgia another FloriThe alleged company had their Bankers Trust being Atlanta creditors of the the federal Siblev Samuel nouncing would udge appoint receiverresisted federal creditors show that the the deposits that federal The Uma- foretilla joined that the Atlanta company committed when the bank was They also cited the in superior court. the that company. trust amenwithout an amendment its Agent for 120 Banks. for 120 told banks. court. but not receive deposits subjected to banks closed Trust closed on TuesBennett of the state that former added confidence to the situaJudge his decision (Continued on Page Two.)

3. September 14, 1926 Evening Star Washington, DC
Article from Evening Star, September 14, 1926

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Article Text

15 GEORGIA BANKS RESUME BUSINESS 12 Others to Reopen This Week as Independent Institutions, Official Says. By the Associated Press. ATLANTA. September 14.-Fifteen Georgia banks which were closed with the failure of the Bankers' Trust Co. of Atlanta, have re-opened as separate and independent institutions, and 12 others will be re-opened within the next week, State Banking Department officials here announced. The total resources of the reopened banks within the next week will be one-third of that of all the Georgia banks that closed this Summer, W. J. Davis. general agent for the State Banking Department. declared. The total resources of the closed banks. he pointed out. was $18,000,000. while that of the re-opened banks will be $6,000,000. The 15 banks that have already been reopened are: State Bank of Cochran. Bank of Hazelhurst. Bank of Stapleton. Rockmart Bank. Habershaw Bank of Clarkesville. Cornelia Bank. Demorest Branch of Cornelia Bank. Bank of Lulu. Merchants and Planters: Bank at Whigham. Exchange Bank at Sycamore, Bank of Adairsville. Farm ers and Merchants' Bank at Rebecca. Planters, Bank Pavo. Turner Coun tv Bank at Ashdown. and Lakewood Bank of Atlanta. The latter, while not a member of the Bankers' Trust Company chain. was forced to close on account of a run after the trust company's failure. Mr. Davis pointed out.