Southern Bank & Trust Company

Bank Information

Episode Type: Suspension → Closure
Bank Type: trust company
Start Date: March 22, 1918
Location: Valdosta, Georgia (30.833, -83.278)

Metadata

Model: gpt-5-mini
Short Digest: 429b072d

Response Measures

None

Description

Bank suspended all payments March 22, 1918 and turned affairs over to state bank authorities for liquidation. Article describes a mistaken draft on the wrong Atlanta correspondent that was turned down, which generated unfounded rumors and a threatened run; no reopening is mentioned and liquidation is explicit, so classify as suspension leading to closure.

Events (1)

1. March 22, 1918 Suspension

Cause: Correspondent
Cause Details: A draft drawn in error on the wrong Atlanta bank (not its regular correspondent) was turned down; that mistake sparked unfounded rumors about solvency and threatened withdrawals, precipitating the suspension and liquidation.
Newspaper Excerpt: The doors of the Southern Bank and Trust Company of this city were closed today...the suspension is for the purpose of protecting the interests of the depositors...turning the affairs of the institution over to the state bank authorities for liquidation.
Source: newspapers

Newspaper Articles (1)

1. March 24, 1918 The Cordele Dispatch Cordele, GA

Article from The Cordele Dispatch, March 24, 1918

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Article Text

VALDOSTA BANK CLOSES TO PROTECT RESOURCES REPORTED MISTAKE IN DRAWING DRAFT STARTS RUMORS AND THREATENS RUN VALDOSTA, Mar. 22.-The doors of the Southern Bank and Trust Company of this city were closed today, following a conference of the officers and directors held last night. A notice posted on the bank doors this morning sets forth that the suspension is for the purpose of protecting the interests of the depositors, the determination having been reached that this could best be done by turning the affairs of the institution over to the state bank authorities for liquidation. Unfounded rumors affecting the bank's solvency, with a threatened run on its resources, are given as the cause. The bank's capital stock is $100,000, with total resources of $1, 803, 788.15, acording to statement rendered the state bank examiner on March 18. Its resources exceed its liabilities by approximately $200,000. The deposits are $1,550,000. Loans and discounts are approximately $1,100,000 The bank's troubles, it is stated, began a few days ago when a draft drawn by it through error on an Atlanta bank was turned down. The wrong bank instead of its regular correspondent and was turned down with out explanation or notice. Following this came rumors from abroad affecting the bank, with a threatened heavy loss of business.