2883. Farmers & Merchants Bank (Gordon, GA)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
November 27, 1928
Location
Gordon, Georgia (32.882, -83.332)

Metadata

Model
gpt-5-mini
Short Digest
55964f6e

Response Measures

Full suspension, Books examined

Description

Multiple contemporaneous articles report heavy withdrawals (a run) on small Georgia banks following the failure/closing of the Fourth National Bank of Macon. The Farmers & Merchants Bank of Gordon closed after heavy runs on Nov. 27–28, 1928; state examiners/auditors took charge and reopening/reorganization was forecast. Cause classified as correspondent (failure of Fourth National triggered withdrawals).

Events (3)
1. November 27, 1928 Run
Cause
Correspondent
Cause Details
Heavy withdrawals triggered by the failure/closing of the Fourth National Bank of Macon (the Macon bank was reserve agent for these banks), causing a regional financial scare.
Measures
Directors voted to close temporarily to conserve assets; appealed to State Banking Department and auditors/examiners took charge.
Newspaper Excerpt
The institutions were closed after heavy runs Tuesday due to the financial scare that followed closing of the Macon bank.
Source
newspapers
2. November 28, 1928 Suspension
Cause
Correspondent
Cause Details
Bank closed (suspended) following heavy runs induced by the collapse/closing of the Fourth National Bank of Macon; state banking department and examiners took charge with plans to reorganize and reopen.
Newspaper Excerpt
Eight small Georgia banks were closed today as result of the failure Monday of the Fourth National Bank of Macon... The institutions were closed after heavy runs Tuesday due to the financial scare that followed closing of the Macon bank.
Source
newspapers
3. November 29, 1928 Other
Newspaper Excerpt
In each case officers assured depositors of protection and announced that reorganization and reopening would be effected as soon as possible. Heavy withdrawals brought about by a 'financial scare' over the condition of the Fourth National were blamed in every instance.
Source
newspapers

Newspaper Articles (10)
1. November 28, 1928 The Birmingham Post Birmingham, AL
Article from The Birmingham Post, November 28, 1928

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Article Text

EIGHT GEORGIA BANKS CLOSED Institution Drags Small Ones Down United MACON, Nov. 28. Eight small Georgia banks were closed today result of failure bank, Macon, with listed reof more than With the exception the Citizens' bank, of Fort Valley, capitalized at other institutions, Bank of Byronville, Irwinton bank, Bank of Preston, Citizens' Bank company, of Culloden, Bank of Bradley, Farmers' Merchants' bank, of Gordon, Farmers' bank, of at from $15,000 to were closed aftheavy runs due to the scare that followed ing of the Macon bank. All the banks are located in the Georgia peach With Clyde J. Edwards in charge of an audit, and Claude Gilbert, named of the Fourth National plans under today to adjust affairs could be cared for. Exact cause of the run was concealed, altho circles said recent investments had turned out poorly.

2. November 28, 1928 Pasadena Star-News Pasadena, CA
Article from Pasadena Star-News, November 28, 1928

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Article Text

EIGHT BANKS CLOSE IN GEORGIA PEACH BELT Failure of Macon Institution Is Cause of Run on Accounts MACON, Ga., Nov. small closed today as result the failure Monday of the Fourth National Bank Macon, listed resources of more than $11,000.000. With the exception of the CitiBank Fort Valley, talized at the other insti- capiBank Byronville, Irwinton Bank, Bank of Preston, Citizens Bank Company of CulloBank of Bradley, Farmers & Merchants Bank Gordon and Farmers Bank italized from $15,000 to $25,- The institutions closed were heavy Tuesday due financial followed closing the Macon bank. All banks are located in the Geopeach belt. Exact cause the run was conrealed. although financial circles recent investments had turned poorly.

3. November 28, 1928 The Pittsburgh Press Pittsburgh, PA
Article from The Pittsburgh Press, November 28, 1928

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Article Text

NINE BANKS CLOSED Eigh Shut After Collapse of One in Macon. By The United Press. Macon, Ga., Nov. 28.-Eight small Georgia banks were closed today as result of the failure Monday of the Fourth National Bank of Macon, with listed resources of more than $11,000,000. With the exception of the Citizens Bank of Fort Valley, capitalized at $100,000, the other institutions. the Bank of Byronville Irwinton Bank, Bank Preston. Citizens Bank Co. of Culloden, Bank Bradley, Farmers &, Merchants Bank of Gordon and Farmers Bank of were capitalized at from $15,000 to $25,000. The institutions were closed after heavy runs Tuesday due to the financial scare that followed closing of the Macon bank. All the banks were located in the Georgia peach belt.

4. November 28, 1928 The Brooklyn Daily Times Brooklyn, NY
Article from The Brooklyn Daily Times, November 28, 1928

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Article Text

EIGHT MORE BANKS CLOSE IN GEORGIA Failures in Peach Belt Due to Collapse Yesterday of $11,000,000 Institution. Macon, Ga., Nov. small Georgia banks closed today as the failure Monday of the Fourth National Bank of Macon, with listed resources of more than $11,000,000. With the exception of the Citizens Bank Fort Valley, capitalized at the other institutions, the Bank of Byronville, Irwinton Bank, Bank Preston, Citizens Bank Company Culloden, Bank of Bradley, Farmers Merchants Bank of Gordon, Farmers Bank of Byron were capitalized at from $15,000 to The institutions were closed after heavy runs due the financial that followed closing of the bank. All he banks located in the With Clyde Edwards in charge of an audit, Gilbert, named receiver of the Fourth National here, plans under today to adjust affairs so creditors cared for Exact cause of the run concealed, although circles recent turned out poorly.

5. November 28, 1928 The Ogden Standard-Examiner Ogden, UT
Article from The Ogden Standard-Examiner, November 28, 1928

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Article Text

EIGHT BANKS CLOSE WHEN ONE FAILS MACON, Ga., Nov. Eight small Georgia banks were closed today as result of the failure Monday of the Fourth National bank of Macon. with listed resources of more than With the exception of the Citizens' bank of Fort Valley. capitalized at $100,000. the other institutions. the Bank of Byronville, Irwinton bank, Bank of Preston, Citizens Bank company of Culloden, Bank of Bradley, Farmers and Merchants' Bank of Gordon, and Farmers' Bank of Byron capitalized at from $15,000 to $25,000. The institutions were closed after heavy runs Tuesday due to the financial scare that followed closIng of the Macon bank All the banks located the Georgia peach belt. Exact cause of the run was con. cealed, although financial circles said recent investments had turned out, poorly.

6. November 28, 1928 Transcript-Telegram Holyoke, MA
Article from Transcript-Telegram, November 28, 1928

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Article Text

EIGHT MORE BANKS CLOSED IN GEORGIA Shut-Down of Fourth National in Macon After Run Forces Others to Appeal to State Two Declared Insolvent. Ga., Nov. the closing the Fourth National Bank Macon after run, eight other financial institutions have turned their affairs over the State Banking said that the closing of the Macon bank forced the others shut down. The banks involved are the Farmers' Bank of Byron, the Citizens' Bank Fort Valley, the Irwinton Bank of Irwinton. the Bank of Byromville. the Bank of Bradley. the Farmers and Merchants Bank of Gordon. the Bank of Culloden and the Bank Preston. The State Bank Examiner will take charge at once and every effort be made reorganize and reopen the banks soon What caused the run on the Macon bank not known. One report lays to rumors regarding the dropping of negotiations for the sale of the Fourth National to syndicate of lanta financiers. The Citizens' Bank of Fort Valley declared by its officers be solvent and the suspension attributed to desire to conserve assets. President Martin said had cap. ital of $100,000 surplus and undivided profits of $80,000. There on the bank yes. terday following of the run on the Fourth National of Macon. The Byron Bank had capital stock of deposits of about $15. 000. H. Weaver president. Officers said that the bank was solvent and that the closing was made to The Fourth National Bank of Maone of the largest institutions in middle Georgia. was organized nineago and had capital stock of $500,000. of more than and deposits of about At one time during the about people on hand. The police any disorder. President Leon Dure today that plans being pushed rapidly. and that the would suffer hardship result of the closing. new be formed at once It stated. to take over the existing to the Georgia and pay all positors in full, provided they select this course. Meantime, Ellis D. Robb, chief na tional bank of the Sixth District, had taken over the affairs of liquidation and received will named.

7. November 29, 1928 The Anniston Star Anniston, AL
Article from The Anniston Star, November 29, 1928

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Article Text

EIGHT SMALL GEORGIA BANKS CLOSE DOORS Failure Of Fourth National Of Macon Brings Collapse To Others small Georgia banks were closed today as result of the failure Monday of the Fourth National bank of Macon. with listed resources of more than $11,000,000. -With the exception of the citizens bank of Fort Valley, capitalized at $100,000 the other institutions, the Bank of Byronville, Irwinton bank, Bank of Preston Citizens Bank company of Culloden Bank of Bradley, Farmers and Merchants Bank of Gordon, and Farmers Bank of Byron were capitalized at from $15,000 to $25,000. The institutions were closed after heavy runs Tuesday due to a financial scare that followed closing of the Macon bank. All the banks were located in the Georgia peach belt. With Clyde J. Edwardson in charge of an audit. and Claude Gilbert named as receiver of the Fourth National here. plans were under way today to adjust affairs so creditors could be cared for, Exact cause of the run was concealed, although financial circles said recent investments had turned out poorly. There are 47 public swimmingbaths in London and 3,995,915 people bathed in them in 1926-the last year for which complete figures are available.

8. November 29, 1928 Evening Star Washington, DC
Article from Evening Star, November 29, 1928

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Article Text

GEORGIA UNRAVELS BANKS' SUSPENSION Affairs of Eight Institutions in Hands of State-Reopening Is Forecast. By the Associated Press. MACON, Ga., November 29.-The affairs of eight middle Georgia banks were in the hands of the State Banking Department behind closed doors yesterday as a sequel to the closing of the Fourth National Bank of Macon Monday. The Macon bank was their Federal Reserve agent. In each case officers assured depositors of protection and announced that reorganization and reopening would be effected as soon as possible. Heavy withdrawals brought baout by a "financial scare" over the condition of the Fourth National were blamed in every instance. Meanwhile, the directorate of the Fourth National was busy arranging conferences looking toward reorganization and capitalization at $750,000 instead of $500,000 as at present. Claude Gilbert of the Insolvency Division of the United States Treasury Department has been designated as receiver by the controller of the currency. Auditors working under Ellis D. Robb, chief national bank examiner of the Sixth Federal Reserve District, continued their survey of the bank's books. In Peach Crop Area. The largest of the eight institutions closing yesterday was the Citizens' Bank of Fort Valley, capitalized at $100.000. The others had capital listed between $15,000 and $25,000. Macon and Fort Valley are among the larger shipping centers in Georgia's extensive peach growing section. While officers of the Fourth National yesterday were issuing a statement which said a two-hour run Monday was due to "baseless rumors" connected with the collapse of negotiations for sale of the institution to Atlanta financiers, the city commission was passing a resolution of confidence in its officers and directorate. The resolution urged all citizens to adopt an attitude of confidence and co-operation. Besides the Fort Valley Bank. the other institutions which are closed are the Irwinton Bank. Irwinton: Bank of Byronville: Bank of Bradley: Farmers' and Merchants' Bank of Gordon: Citizens' Bank of Culloden: Bank of Preston, and Farmers' Bank of Byron. Business Man Cut. An altercation over the closing of the Fort Valley Bank yesterday was responsible for knife wounds which today confined George Slappey, business man of that city, to his bed. Dr. W. S. White, mayor of Fort Valley. was the other participant. several witnesses said. No charges have been placed against the mayor. The encounter was said to have been preceded by a "friendly argument" over policies of the city in depositing municipal funds. Neither was interested in the management of the bank.

9. November 29, 1928 The Marshall News Messenger Marshall, TX
Article from The Marshall News Messenger, November 29, 1928

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Article Text

Eight Georgia Banks Fail To Open Wednesday Atlanta Nov Eight small Georgia banks today result the Monday the Fourth National Bank with listed than With the exception of the zens Bank Fort capital the other Bank of Preston. Citizens Bank Company Culloden: Bank Farmers and Mer Bank of Gordon: and Farm Bank of Byron from $15,000 to $25,000 institutions closed ter heavy runs Tuesdav due the financial that followed the Macon bank All the banks located the eGorgia belt FOUND NOT GUILTY Texas. Nov. 28. Police Chief Pat Sullivan, against whom charges of inefficiency were preferred by Fire and Police Commissioner Frank Mellina, found "not guilty" by City Council. He will retain his position.

10. November 29, 1928 The Valdosta Daily Times Valdosta, GA
Article from The Valdosta Daily Times, November 29, 1928

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Article Text

THE DANGER OF FALSE RUMORS The failure of seven middle Georgia banks to open for business following the closing of the Fourth National Bank of Macon has caused widespread apprehension on the part of depositors and is just another evidence of what rumors will do. The closing of the Fourth National was made necessary because of a rumor A run followed and the bank found it impossible to conserve its assets without shutting its doors. As soon as this happened depositors in all the surrounding section were struck with sudden fear and their various banks closed for safety's sake. Those which closed include the Bank of Byromville, capitalized at $15,000; Bank of Bradley, capitalized at $15,000; Bank of Preston, capitalized at $15,000; Farmers and Merchants Bank at Gordon, capitalized at $25,000; Citizens Bank at Fort Valley, capitalized at $100,000. According to C. E. Martin, president of the Fort Valley bank; the directors voted to close following heavy withdrawals on Monday. Mr. Martin also declared the bank was solvent and the institution was closed only to preserve its assets. The bank was founded in 1909 and had approximately $330,000 on deposits. In the last financial statement of the bank the institution's undivided profits were given at $80,000. All of the other banks were considered in good condition before the closings and as an evidence of the veracity of that belief. the presidents declare that they will all be ready to re-open within a short time. Each one of the closings was attributed to runs induced by the news of the closing of the Fourth National Bank at Macon and the others in succession. The Fourth National was the approved reserve agent for the other banks and officials are certain that as soon as the affairs of the Macon institution are readjusted all the banks will be open and in good condition. With the auditors at work, the directors of the Fourth National are holding conferences with view to working out plans to rclieve the situation for the creditors of the institution. One of the plans being discussed has to do with the organization of a new bank to take over the affairs of the Fourth National and start out anew. This new bank, should it be organized, would have capital stock of $750,000. It has been shown that the whole affair was brought about through a baseless rumor. Such rumors are hard to suppress once started for there is no rumor quite so interesting to a depositor as the alleged condition of his bank. The closings tend to cast an inaccurate reflection upon the financial situation in Georgia to people in other states. The majority of the people who learn of the closings will probably only read a small part of the news and will form a false conclusion as to the reported state of affairs. The whole trouble starts with the original rumor. In hundreds of cases such rumors of a bank's condition are untrue and some depositors might avert many unfortunate circumstances if they could learn enough about the banking business to keep their heads and work to prevent runs.