Mechanics Savings Bank (Raleigh, NC)

Episode Information

Episode UID
66002871569
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
6600287 routing
Routing Number
66-0028
Start Date
September 15, 1930
Location
Raleigh, North Carolina (35.772, -78.639)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
41023488014489bc

Response Measures

None

Description

Some article dates and references to reopenings/suspension months are OCR-unclear; timeline reconstructed from multiple reports.

Events (3)
1. September 15, 1930 Run
Cause
Local Banks
Cause Details
Run precipitated by failure/takeover of the Raleigh Banking and Trust Company and spreading withdrawals; depositors gathered to withdraw funds.
Measures
Large deposits were brought in (e.g., $200,000 by Captain O'Berry) and Page Trust Company support; officers invoked 30-day delay on large deposits to stem withdrawals.
Newspaper Excerpt
small run the Mechanics Savings Bank yesterday morning
Source
newspapers
2. December 12, 1930 Suspension
Cause
Local Banks
Cause Details
Invoked 30-day delay on withdrawals to deter heavy withdrawals and conserve funds after runs and local banking disturbances.
Newspaper Excerpt
invoked the thirty day rule on withdrawal of deposits. The bank's doors were open as usual.
Source
newspapers
3. September 27, 1931 Receivership
Newspaper Excerpt
Closing of the Mechanics Savings Bank yesterday ... small run precipitated by the fail. of the Raleigh Trust Company September 15, 1930. ... Small ... placed charge liquidating agent.
Source
newspapers

Newspaper Articles (5)
1. September 17, 1930 The News and Observer Raleigh, NC
Article from The News and Observer, September 17, 1930

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Article Text

SOUND OF not trust financial institution. any going take my money out of the bank and will never put another dollar bank." That the hysterical remark of an excited yesterday morning upon hearing that the Raleigh Banking and Trust Company able to withstand the run on the bank which had been in progress several days, culminating Monday in many withdrawals that its directors impelled to close the doors and welcome the coming of the Page Trust Comto branch of its bank and trust pany open company in its building, that company agreeing to 50 of the deposits of the pay per bank and to pay as much more the wise liquidation of the affairs of the bank justified. There small run the Mechanics Savings Bank yesterday morning, W. Drake, president of the Raleigh Banking and Trust Company, being also president of that bank, which had long close relations with the bigger institution. But, though the Mechanics found necessary to put in effect the right to delay for thirty days on large deposits, its payment officers say received larger sum in deposits than was drawn out. Mr. Drake no longer connected with that institution director president. While it is deplorable when an old banking house closes, and its depositors are inconvenienced, the people of Raleigh rejoice that the situation there had no effect the confidence upon in the other banking institutions which are all officered by men who possess the full confidence of the people, and are regarded among the strongest banking institutions in the South. If there sentiment in the city, such expressed by the excited man quoted above, would have manifested itself yesterday. stead every indication, accompanied by deposits and expressions of confidence, existed. There was no suggestion of doubt to the other banks and people refused to permit the excited few to stampede them. Confidence the foundation of business Because number of depositors, losing dence, forced the closing of one bank, sensible people do not permit themselves to doubt the integrity and the soundness other institutions and other bankers. Undoubtedly the trouble with the Raleigh Banking and Trust Company was due the fact that its president, Mr. Drake, was the head of the Merchants Bank when in trouble after the 1920-21 finangot cial debacle. Justly or unjustly that former record increased the distrust when rumors of weakness spread. But, thanks to their poise and good sense, Raleigh people do not distrust proven men institutions because run closes one bank. leigh banks sound and the directors of the are closed bank are confident that depositors will lose nothing, though they will be inconvenienced because of the liquidation. deposits the first day showed confidence which the management inspires. The Page Trust Company, organized Aberdeen, with ten branches, has grown to one of the biggest and soundest financial stitutions North Carolina. The Pages nated in Wake county. The late Frank Page built three of the largest buildings in Raleigh and was wise and prosperous pioneer. The president of the Page Trust Company, who was Raleigh yesterday, is Hon. Robert Page, distinguished in Washington as the soundest financier on the Appropriations Committee in Congress, and the other officers, all members of the Page family except John R. Nichols, executive and George Roosevelt, are men of proven ability and high standing. Raleigh gives glad welcome the Page Trust Company. Their coming to the Capital City great asset to the city and to the State.

2. September 19, 1930 Goldsboro News-Argus Goldsboro, NC
Article from Goldsboro News-Argus, September 19, 1930

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Article Text

This outing will be on the banks of Stoney Creek at the farm of county welfare officer, "Bob" Edwards, and will be for the members of the league and their invited friends. Plays Mexico HAMILTON COLLABORATES ON UNIVERSITY BULLETIN T. T. Mamilton, who several years ago was principal of the Goldsboro high school, is one of the authors of a new bulletin issued by the University of Illinois. As assistant in the bureau of educational research. Mr. Hamilton, with Walter S. Monroe and V. S. Smith, issued the bulletin on "Locating Educational Information in Published Sources. 62 CASES TREATED IN ORTHOPEDIC CLINIC Sixty-two patients were brought to the Orthopedic clinic held in Goldsboro Thursday. About onethird of the cases-given attention were new ones. Patients were here from many sections of eastern North Carolina including counties as far distant as Washington, Beaufort, Craven, Harnett, Vance, and North hampton. The clinic is held the third Thursday in each month and is a branch clinic of the orthopedic hospital at Gastonia. ANOTHER BACK PORCH THIEF A second back porch thief has been reported this week to Golasboro police. Some one Thursday afternoon entered the rear porch of the J. C. Pate home on E. Walnut Street and took supply of groceries. On Wednesday someone took eggs and groceies from the back porch of the E. G. Porter home in the same neighborhood In both cases residents of the nouses were away Entrance to the Pate home was made by cutting the screen and unfastening the hook to the door. CAPT. O'BERRY STOPS RUN ON RALEIGH BANK It took Captain Nathan O'Berry, Goldsbore, state treasurer is put "running" out of minds of a crowd gathered in front of the Mechanics Savings bank of Raleigh closely allied with the Raleigh Bank and Trust Co., which was this week taken over by Page Trust Co., Aberdeen. One of the football stars you'll be first to hear of this fall is "Stumpy" Taliaferro, above, because he's go ing to be in the lineup of the Louisiana College eleven when it meets the National University of Mexico at Pineville, La., October 4, in the first international intercol. legiate football game of the season, He was a leading seorer in the south last year. Captain O'Berry shouldered his way through the crowd of depositors to announce that he had brought $200,000 to place in the bank. This ended the pending run on the bank. The depositors knew as much or more money would be placed in the bank than they would draw out.

3. December 12, 1930 The Muskegon Chronicle Muskegon, MI
Article from The Muskegon Chronicle, December 12, 1930

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Article Text

PRICE OF PORK IS SLIGHTLY ON MUSKEGON MART Hay and Forage Quotations Stationary but Ground Feeds Cheaper Warm weather and increased suphome price of pork down slightly in Muskegon today. During December many producers to slaughter their hogs at stage of when the carwill be its prime usually creates of demand. Heavy weight dressed, are cheaper the higher limit 1c per pound, and 180 pounds are one-half cent lower at and forage quotations have stationary several weeks, but ground feeds have edged downslightly. now from $2.20 mixed dairy feed per and scraps to per cwt. 30 DAY RULE ON DEPOSITS USED BY N. C. BANK N. C., Dec. Mechanics Savings bank of Raleigh today invoked the 30-day rule on deposits and were being the depositor the funds untouched for days. The bank's doors statement Sept. 24 listed deposits at Bank Fails to Open Asheville bank of West Asheville failed to today. notice the door plained the was closed the board of directors conserve assets for the benefit of defailure three weeks ago of the Central and Trust largest bank this have closed Buncombe bank of West Asheville was at 24, listed deposits of $497,000. Stage Run on Bank Mass., the discovery of the body treasurer the bank building run of depositors developed. Within short time some 200 persons thronged banking seeking to withdraw depo issued by officers the bank that the Funds and in by banks in this to bridge the note by Warren his could be to that would lose at the end of the year and position engendered conlistening to stories of misstantly Find Banker Suicide Arlington, Tenn., Dec. cashier of the Bank of John found in an automowas yesterday with fatal near in his The bank placed in charge of a state bank statement of the published A May 19, showed $162,174.22 and deposits of $123,500.75. Arraigned For Larceny Lowville, Cannon, whose resignation president of the Lyons Falls National bank was acepted last night, here today on charges of grand and forgery in with the at the bank. He pleaded not guilty. Everett Hughes, former cashier of the bank, after that staged imaginary holdup the same bank Sept. tenced Dec. serve from five years in Auburn prison. He pleaded guilty charge of larceny the theft of $37,882 from bank funds. Brokers Enjoined Syracuse Howell, and one of the est firms of its nature in central New York, in inissues, today joined by the court from further The firm had no affiliation with the New York Stock exchange. Charges of appropriation to their own use of $300,000 were included in the complaint. It has not been established that there was any crimliability. Banker Kills Self Columbus, Dec C. Willard, vice president of the Huntbank and vice president and of the ColumSavings bank, ended his life in Columbus Athletic club yesterby shooting Willard had to a retiring room the fourth floor. He moved his and vest and then entered the adjoining bath where fired bullet into his head The body was found about 10 minutes later.

4. December 13, 1930 The Des Moines Register Des Moines, IA
Article from The Des Moines Register, December 13, 1930

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Article Text

BANK INVOKES 30 DAY RULING Raleigh, N. C., Institution Keeps Doors Open. RALEIGH, N. C. (/P)-The Mechanics Savings bank of Raleigh Friday invoked the thirty day rule on withdrawal of deposits. Officials announced no deposits were being accepted unless the depositor would leave the funds untouched for thirty days. The bank's doors were open as usual. Its last statement, as of Sept. 24, listed deposits at $660,058.49. Asheville, N. C., Bank Closes. ASHEVILLE, N. C. The Bank of West Asheville failed to open Friday. A notice on the door explained the institution was closed "by order of the board of directors, to conserve assets for the benefit of depositors. The bank was capitalized at $25,000 and listed deposits of $497,000. Close St. Paul, Ark., Bank. LITTLE ROCK The closing of the Bank of St. Paul, at St. Paul, Ark., was announced Friday. The bank had capital and surplus of $13,000 and deposits of $31,000: Tyrone, Pa., Bank Suspends. TYRONE, PA. The doors of the Farmers and Merchants National bank here were closed Friday and notice was posted that the action was taken in the interests of depositors. Citizens State, Colman, S. D. COLMAN, S. D. (A)-An examiner of the state banking department took charge of the Citizens State bank here Friday, after the board of directors had decided to close. The bank was capitalized at $10,000. Heavy Run Causes Closing. CHRISTOPHER, ILL. The Christopher State bank failed to open for business Friday. Steady withdrawals of deposits for the last several weeks prompted directors to order the institution closed, for the protection of depositors. Reorganization Underway. GAYVILLE, S. D. (P)-By order of its board of directors, the Security State bank of Gayville has closed its doors, pending a reorganization. The bank had deposits of approximately $425.000 and capital and surplus of $59,000.

5. September 27, 1931 The News and Observer Raleigh, NC
Article from The News and Observer, September 27, 1931

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Article Text

MECHANICS Failure Means Further Depletion Raleigh Banking & Trust Co. Resources Closing of the Mechanics Savings Bank yesterday. after successful battle since the run upon precipitated by the fail. of the Raleigh Trust Company September 15. 1930. means depletion the sets the Raleigh Banking Trust Company. which to date has paid depositors. Both banks were headed by Drake time of the crash larger which owned of Mechanics' 600 shares par value. listing them among resources book value of 350.71. Closing of the Mechanics only means that in all probability this item wiped but the Raleigh Banking and Trust Company liable judgment for that being the par holdings. under the stockholders' cent liability statute. Pay New Depositors. The closing will affect was reopened May under old depositors' the amount about $8,000 close those accounts. but positors other creditors December 12, when the bank originally suspended. must their in the usual course of Gurney Hood. State Commissioner Banks, yesterday that the State had the bank for that Small, who credhaving done very effective in the liquidation defunct banks Washington. Elizabeth City. was placed charge liquidating agent. audit being made for An now liquidating agent. On June 30 this year. the last call the bank showed deposits for period since the reopening $25,891.77. but this figure included balances old depositors had signed well new posits. deposits paid others will their turn liquidation with the balances. the bank closed on May showed total of $579. loans and discounts stocks bonds $166,697 cash $11,834.44. Deposits $314,591. The bank had savings deposits secured deposits the State North Carolina amount ing $80,434.45. Bills represents money borrowed from banks preferred claim. $39,616.72. The bank capitalized surplus of $50,000 and divided profits $24,008.29. Waltere Durham, who had been (Please