3003. Citizens Floyd Bank & Trust Company (Rome, GA)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
trust company
Start Date
June 1, 1930*
Location
Rome, Georgia (34.257, -85.165)

Metadata

Model
gpt-5-mini
Short Digest
2fd059bc

Response Measures

Full suspension

Description

Articles report that notations (slips reading bank reported closed) attached by the Philadelphia Federal Reserve to returned checks in June 1930 caused a quiet run that forced Citizens Floyd Bank & Trust Company to close on November 30, 1930. A subsequent court order (Feb 2, 1931) authorized sale of assets to a newly chartered Citizens Finance Company; the bank did not resume independent operations. The misstatement on checks is treated as a misinformation/correspondent-triggered run.

Events (3)
1. June 1, 1930* Run
Cause
Rumor Or Misinformation
Cause Details
Slips attached to checks by the Philadelphia Federal Reserve reading 'Bank reported closed' caused loss of confidence and withdrawals (described as a 'quiet run').
Random Run
Yes
Random Run Snippet
Bank reported closed slips on returned checks; caused run
Newspaper Excerpt
notations made on checks payable to the Citizens-Floyd Bank and Trust Company of Rome. Ga., caused a run on the bank
Source
newspapers
2. November 30, 1930 Suspension
Cause
Rumor Or Misinformation
Cause Details
The earlier notations and ensuing loss of confidence culminated in the bank's closure on November 30, 1930.
Newspaper Excerpt
caused 'quiet run' on the Georgia bank and forced it to close November 30, 1930.
Source
newspapers
3. February 2, 1931 Receivership
Newspaper Excerpt
Assets of the closed Citizens Floyd Bank and Trust company will be sold to the Citizens Finance company under an order issued Saturday by Judge James Maddox, who signed the writ at the request of the banking department
Source
newspapers

Newspaper Articles (6)
1. February 3, 1931 Chattanooga Daily Times Chattanooga, TN
Article from Chattanooga Daily Times, February 3, 1931

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Article Text

NEW FINANCE COMPANY TAKES OVER ROME BANK Chattanooga Times Special. ROME, Ga., Feb. 2.-Assets of the closed Citizens Floyd Bank and Trust company will be sold to the Citizens Finance company under an order issued Saturday by Judge James Maddox, who signed the writ at the request of the banking department The Finance company was granted charter last week and its preliminary work will be under the direction of H. O'Neill and will be transacted at his lumber company office. The business of the closed bank and its former depositors will be finished before the finance company is put The petition signed by Judge Maddox states that the new company will pay depositors of the defunct institution half of the total deposit held in the bank the credit each depositor the time of the bank's The remainder will be liquidated. 25 per cent. as stock in the new finance company and the remainder in per cent. notes to be of eighteen months duration.

2. June 5, 1931 The St. Louis Star and Times St. Louis, MO
Article from The St. Louis Star and Times, June 5, 1931

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Article Text

SUES FEDERAL RESERVE BANK FOR $250,000 LIBEL P )-A. B. Mobley, Georgia state superintendent of banking filed $250,000 suit today against the Philadelphia Federal Reserve Bank, charging libel Mobley charged that notations, "Bank reported closed. made on checks payable to the Citizens-Floyd Bank and Trust Company of Rome. Ga., caused a run on the bank and forced it to close.

3. June 5, 1931 Kirksville Daily Express and Kirksville Daily News Kirksville, MO
Article from Kirksville Daily Express and Kirksville Daily News, June 5, 1931

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Article Text

Sues Federal Reserve Bank For Libel Philadelphia, June 5. (UP) A. B. Mobley, superintendent of banking for the state of Georgia, filed suit in common pleas court today against the Philadelphia Federal Reserve Bank, charging libel. Mobley charged that notations made on checks payable to the CitizensFloyd Bank and Trust Company of Rome. Ga., caused "quiet run" on the Georgia bank and forced it to close November 30, 1930. Mobley asks damages in the amount of $250,000 from the Philadelphia Fedcral Reserve Bank. In the statement of claim it was set up that during June, 1930, four business concerns in Rome gave checks on their local bank which subsequently passed through the Philadelphia bank, the latter returning them as uncollectable small piece of paper being attached with the words "bank reported This action. it was charged. caused loss of confidence in the Georgia bank and withdrawal of deposits and consti-

4. June 5, 1931 The Springfield Press Springfield, MO
Article from The Springfield Press, June 5, 1931

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Article Text

Philadelphia Federal Reserve Bank Sued on Libel Charge $250,000 ASKED DAMAGES IN GEORGIA SUIT State Superintendent Says Firm Forced Closure by Notations. By UNITED PRESS PHILADELPHIA, June 5.-A. Mobley, superintendent of banking for the state of Georgia, filed suit in common pleas court Friday against the Philadelphia Federal Reserve bank, charging libel. Mobley charged that notations made on checks payable to the Citizens-Floyd Bank and Trust company of Rome, Georgia, caused "quiet run" on the Georgia bank and forced it to close November 30, Mobley asks damages in the amount of $250,000 from the Philadelphia Federal Reserve bank. In the statement of claim it was set up that during June, 1930, four business concerns in Rome gave checks on their local bank which subsequently passed through the Philadelphia bank, the latter returning them as uncollectable, small piece of paper being attached with the words "bank reported closed.' This was charged, caused loss of confidence in the Georgia bank and withdrawal of deposits and constituted libel.

5. June 6, 1931 The Washington Times Washington, DC
Article from The Washington Times, June 6, 1931

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Article Text

Philadelphia Bank Is Sued for $50,000 The Philadelphia Federal Reserve Bank, in a $50,000 suit filed in comon pleas court here, is charged by A. B. Mobley, superintendent of banking for the State of Georgia, with a libel which is alleged to have caused a "quiet run" on the Citizens-Floyd Bank and Trust Company, at Rome, Ga., and the closing of the bank. The suit is based on checks passing through the Philadelphia Reserve Bank in 1930, which were returned with a slip of paper attached bearing the words: "Bank Reported Closed."

6. June 6, 1931 Pittsburgh Sun-Telegraph Pittsburgh, PA
Article from Pittsburgh Sun-Telegraph, June 6, 1931

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Article Text

Reserve Member Named in Bank Action PHIL ADELPHIA June The Philadelphia Federal Reserve Bank in suit filed in Common Pleas Court here was charged by B Mobley superintendent of banking for the state of Georgia with a libel which alleged have caused on the CitizensFloyd Bank and Trust Com pany of Rome and the closing of the bank Mobley brought the suit as liquidator the bank asking damages of $50.000 The suit based on checks passing through the Philadelphia Re serve Bank in 1930. which were returned with slip of paper attached bearing the bank reported closed