6407. Bank of Commerce (Lexington, KY)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
January 6, 1921
Location
Lexington, Kentucky (37.989, -84.478)

Metadata

Model
gpt-5-mini
Short Digest
e9bebd25c6b9f777

Response Measures

None

Description

Multiple contemporaneous articles report a four-hour run on the Bank of Commerce (Lexington, KY) on Jan 6, 1921 provoked by rumors about heavy loans on tobacco. The run was quelled same day by clearing-house examination, public statements of solvency, large deposits and transfers of cash—no suspension or closure is reported.

Events (1)
1. January 6, 1921 Run
Cause
Rumor Or Misinformation
Cause Details
Rumors that the bank was overloaded with tobacco notes/loans and could not meet depositors' claims.
Measures
Clearing-house committee examined books and issued statement of solvency; heavy deposits and cash transfers (including a $100,000 correspondent remittance) bolstered the bank and calmed withdrawals.
Newspaper Excerpt
A four-hour run on the Bank of Commerce ... Rumors that the bank had loaned so much money on tobacco that it could not pay depositors were alleged to have been responsible.
Source
newspapers

Newspaper Articles (10)
1. January 6, 1921 Richmond Daily Register Richmond, KY
Article from Richmond Daily Register, January 6, 1921

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Article Text

Richmond Helps Some Richmond stockholders and depositors in the Bank of Commerce above referred to. showed their loyalty to it and their confidence in its. integrity in no uncertain way Quite a sum of money was sent ever from here to help meet any demands that might be made upon the bank by timid fillks. News came here that all of the banks of Lexington rallied to the assistance of the Bank of Commerce after an examination of its books and paper had shown` that it is in good shape and not invelved in any way. C.H. Berryman president of the Phoenix Hotel Company. is said to have personaliv deposited $20,000 to 'i's accounty in the bank. The Phoenix Amusement Company. which operates the big show houses in Lexington and the theatres here. dropped in the neat little sum of $90,000. Several people prominent in this company are directors and stockholders in the bank and they know il is safe and sound. The "run" is said to have dwindled to small proportions with such a showing Many business men who had not been pat rons of the bank before are said to have placed deposits with it. to show their confidence in the men who are at its head.

2. January 6, 1921 Imperial Valley Press El Centro, CA
Article from Imperial Valley Press, January 6, 1921

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Article Text

START RUN ON LEXINGTON BANK LEXINGTON, Ky., Jan. 6. Alarmed at rumors that the Bank of Commerce, with a capital stock of $300,000 is overloaded with tobacco notes and paper, depositors started a run on the bank today. Several hundred were in front of the bank at noon, the tellers paying out money as fast as they could count.

3. January 6, 1921 Americus Times-Recorder Americus, GA
Article from Americus Times-Recorder, January 6, 1921

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Article Text

RUN STARTS ON TOBACCO BANK. LEXINGTON, Ky. Jan. 6.-Frightened bv rumors that the Bank of Commerce, of Lexington, an institution with a capital of $300,000, was over-loaded with tobacco notes and paper, the depositors started a run on that institution today. At noon a crowd of several hundred persons was before the bank, and tellers were paying out money as fast as they could count it.

4. January 6, 1921 The Rock Island Argus and Daily Union Rock Island, IL
Article from The Rock Island Argus and Daily Union, January 6, 1921

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Article Text

STARTBANK RUN IN LEXINGTON Frightened by Ramor of Financial Overlead of Tobacco Notes De positers Claim Cash. Lexington, Ky., Jan. 6.-Frightened by rumors that the Bank of Commerce of Lexington, an institution with a capital stock of $300,000, was overloaded with tobacco notes and paper, depositors started a run on that institution this morning. A crowd of several hundred persons was in front of the bank at noon and tellers were paying out money as fast as they could count it.

5. January 7, 1921 The Bridgeport Times and Evening Farmer Bridgeport, CT
Article from The Bridgeport Times and Evening Farmer, January 7, 1921

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Article Text

Depositors started a run on the Bank of Commerce, of Lexington, Ky. an institution with a capitol stock of $300,000, when rumors were current that the institution had been overloaded with tobacco notes and paper.

6. January 7, 1921 Norwich Bulletin Norwich, CT
Article from Norwich Bulletin, January 7, 1921

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Article Text

TOBACCO PRICES CAUSE OF RUN ON EXINGTON KY ⑉9 BANK Run Was Caused by Rumors That the Bank Had Loaned So Much Money on Tobacco That It Could Not Pay Its Depositors-A General Mass Meeting is to Be Held Today to Decide Whether or Not Tobacco Shall Be Planted in 1921. The Bank of Commerce of Lexington Lexington, Ky., Jan. 6.-A four hour was the object of the run today, which run on a Lexington bank, together with for several hours threatened to gain the starting of a grand jury investigation dangerous proportions. Rumors that the of rumors that caused the run, and news bank had loaned so much money on tothat Governor Edwin P. Morrow had bacco that it could not pay depositors, under consideration a series of conferwere alleged to have been responsible. ences to bring about the settlement of the A statement from a clearing house totobacco situation, were the chief degether with heavy deposits by business men and transfers of large sums of cash velopments in the central Kentucky tofrom other institutions to the threatened bacco district today. bank apparently had the effect of quietCounty mass meetings of growers who ing the nerves of the frightened deposiforced closing of most tobacco markets tors before closing time this afternoon in the state early this week when they when withdrawals slackened considerab refused to accept prices offered by the biy. buyers, this afternoon selected delegates Markets throughout the burley tobacco to 3. central mass meeting here tomorrow to decide whether or not tobacco shall district remained closed today with the exception of a few of the smaller ones be pianted in 1921 and to attempt to dewhich did not close when the large warevise means of marketing the 1920 crop houses suspended sales. at a satisfactory price.

7. January 7, 1921 The Pensacola Journal Pensacola, FL
Article from The Pensacola Journal, January 7, 1921

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Article Text

RUMORS CAUSE RUN ON BANK Merchants of Lexington Come to Rescue of Bank of Commerce, Saving Day. GRAND JURY IS CONVENED Will Investigate Origin of Stories That Bank Was in Unsound Condition. (By Associated Press) LEXINGTON, Ky., Jan. 6.-A fourhour run on a Lexington bank, together with the starting of a grand jury investigation of rumors that caused the run and news that Gov. Edwin P. Morrow had under consideration a series of conferences to bring about the settlement of the tobacco situation were the chief developments in the central Kentucky tobacco district today. County mass meetings of growers, who forced closing of most tobacco markets in the state early this week when they refused to accept prices offered by buyers, this afternoon selected delegates to a general mass meeting to be held here tomorrow morning. The meeting is to decide whether or not tobacco shall be planted in 1921 and to attempt to devise means of marketing the 1920 crop at a satisfactory price. The Bank of Commerce of Lexington was the object of the run today, which for several hours threatened to gain dangerous proportions. Rumors that the bank had loaned so much money on tobacco that it could not pay depositors were alleged to have been responsible. The rumors reached the ears of the bank officials last night, it was said, and Cashier Stilse asked that a clearing house committee examine the books. This committee issued a statement today that the bank was thoroughly solvent. Mr. Stilse supplemented this with a statement that all of the bank's paper was fully secured. Those statements, together with heavy deposits by business men and transfers of large sums of cash from other institutions to the threatened bank apparently had the effect of quieting the nerves of the frightened depositors before closing time, when withdrawals slackened considerably. One bank ordered its correspondent in Cincinnati to forward $100,000 in cash to the Bank of Commerce at once, it was stated. The Bank of Commerce, in its financial statemnent of Dec. 31, 1920, showed resources of $3,397,450.97 and deposits of $2,496,695.16. Notes and bills discounted totalled $2,951,486.49. Investigation of the run by the grand jury was ordered late today.

8. January 7, 1921 Pueblo Chieftain Pueblo, CO
Article from Pueblo Chieftain, January 7, 1921

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Article Text

TOBACCO SITUATION CAUSES BANK RUN Lexington, Ky., Jan. 6.-A four hour run on a local bank together with the starting of a grand jury investigation or rumors that caused the run and news that Governor Edwin P. Morrow, has under consideration conferences to bring about the settlement of the tobacco situation, were the chief developments in the Central Kentucky tobacco district today. County mass meetings of growers who forced the closing of most state markets this week, when they refused to accept prices offered today selected delegates to a general mass meeting to be held here tomorrow. The meeting is to decide whether or not tobacco shall be planted in 1921 and to attempt to devise means of marketing the 1920 crop. The Bank of Comn erce was the object of the run. Rumors that the bank had loaned so much money on tobacco that it could not pay depositors were alleged to have been responsible. It was said the rumors reached bank officials last night and Cashier F. G. Stiltz, asked that a clearing house committee examine the books. This committee issued a statement today that the bank was solvent. Mt. Stiltz supplemented this with the statement that all the bank's paper was fully secured. These statements, together with heavy deposits by businessmen and transfers of large sums of cash from other institutions to the bank apparently quieted depositors before closing time and withdrawals slackened. The bank, in its statement of December 31, showed resources of $1.397,450.97 and deposits of $2,496,695.16. Notes and bills discounted totaled $2.951,486.49. Markets thruout the Burley tobacco district remained closed today except a few of the smaller ones which did not close when the large warehouses suspended sales.

9. January 7, 1921 New-York Tribune New York, NY
Article from New-York Tribune, January 7, 1921

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Article Text

Tobacco War Causes 4-Hour Run on Bank Heavy Deposits by Business Men and Transfers of Cash Save Lexington Institution From Disaster Investigation Is Ordered Governor Plans Parleys to End Fight Over Prices; Growers to Meet To-day LEXINGTON, Ky., Jan. 6.-- A fourhour run on a Lexington bank, together with the starting of a grand jury investigation of rumors that caused the run, and news that Gevenior Edwin P. Morrow had under consideration a 01. ries conferences to bring about the settlement of the tobacco situation were the chief developments in the central Kentucky tobacco district to-day. County mass meetings of growers who forced closing of most tobacco markets in the state early this week when they refused to accept prices offered by buyers, this afternoon selected delegates to a general mass meeting to be held here Lo-norrow morning. The meeting is to decide whether or not tobacco shall be planted in 1921 and to attempt to devise means of marketing the 1920 crop at a satisfactory price. The Bank of Commerce of Lexington was the object of the run to-day which for several hours threatened to gain dangerous proportions. Rumors that the bank had loaned so much money on tobacco that it could not pay depositors, were alleged to have been responsible. Bank Declared Solvent The rumors reached the ears of the bank officials last night, it was

10. January 7, 1921 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, January 7, 1921

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Article Text

Run on Lexington Bank in. Wake Tobacco Wrangle Lexington, Ky., Jan. 6.-A four-hour run on the Lexington Bank of Commerce, together with the starting of a grant jury investigation of rumors that caused the run and news that Governor Morrow had under consideration a series of conferences to bring about the settlement of the tobacco situation, were the chief developments in the central Kentucky tobacco district today. County mass meetings of growers, who forced closing of most tobacco markets in the state early this week when they refused to accept prices offered by buyers, have selected delegates to a general mass meeting to be held here tomorrow. The meeting is to decide whether or not tobacco shall be planted in 1921 and to attempt to devise means of marketing the 1320 crop at a satisfactory price. The Bank of Commerce, in its statement of December 31, 1920, showed resources of $3,397,450.97 and deposita of $2,496,695.16. Notes and bills discounted totalled $2,951,605.16.