Salisbury Bank & Trust Company (Salisbury, NC)

Episode Information

Episode UID
66009471494
Episode Type
Run → Suspension → Closure
Bank Type
trust
Bank ID
6600947 routing
Routing Number
66-0094
Start Date
June 28, 1924
Location
Salisbury, North Carolina (35.671, -80.474)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
4e000bfae99b7995

Response Measures

None

Description

Bank was merged into Wachovia rather than put into receivership; continued under Wachovia management.

Events (2)
1. June 28, 1924 Run
Cause
Rumor Or Misinformation
Cause Details
Two weeks of circulating rumors triggered steady withdrawals that depleted cash reserves.
Measures
Wachovia supplied cash at counters and assurances; merger/takeover to protect depositors.
Newspaper Excerpt
A steady run on the Salisbury Bank and Trust company today failed to make an appreciable dent in the counter full of money which was supplied by the Wachovia Bank and Trust company
Source
newspapers
2. June 28, 1924 Suspension
Cause
Rumor Or Misinformation
Cause Details
Depletion of cash reserves from rumor-driven run led to merger/takeover by Wachovia to prevent depositor losses.
Newspaper Excerpt
At the beginning of business this morning the Wachovia Bank and Trust company... took over the business of the Salisbury Bank and Trust company.
Source
newspapers

Newspaper Articles (2)
1. June 29, 1924 The Charlotte Observer Charlotte, NC
Article from The Charlotte Observer, June 29, 1924

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Article Text

RUN MADE ON SALISBURY BANK; MONEY PLENTIFUL Has Been Taken Over by the Wachovia Bank and Trust and Will Be Continued. Special to The Observer. SALISBURY, June 28. — A steady run on the Salisbury Bank and Trust company today failed to make an appreciable dent in the counter full of money which was supplied by the Wachovia Bank and Trust company, which this morning took over the former bank and gave assurances that no customer should lose a cent. The merger of the two banks was accomplished at a meeting held last night, and the Salisbury Bank and Trust company, which had become embarrassed by a steady run during two weeks, got from under graciously and without loss to a single depositor. President McWhirter attributes the bank's trouble to rumors that were circulated two weeks ago and to the general feeling of uneasiness that has existed since the People's bank closed last June. The Salisbury Bank and Trust company had assets of a million and a half and deposits totaling around a million. The bank will be continued under the management of Wachovia officials.

2. June 29, 1924 News and Record Greensboro, NC
Article from News and Record, June 29, 1924

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Article Text

SALISBURY BANK TAKEN OVER BY THE WACHOVIA Bank and Trust Company President Says Run On Bank Made Merger Necessary. RUMOR BROUGHT IT ON (Special to Daily News.) Salisbury, June 28.—At the beginning of business this morning the Wachovia Bank and Trust company, of Winston-Salem, which already has a branch bank in Salisbury, took over the business of the Salisbury Bank and Trust company. All during the day patrons of the latter bank withdrew their accounts despite assurances from Colonel Fries, of the Wachovia, and other interested citizens that Wachovia was guaranteeing everybody against loss. There was an uneasiness on part of many who remembered the bank trouble of just a year ago when four banks in the county closed. However, there were numerous deposits. Business was carried on under the direction of representatives of the Wachovia bank and it is understood that this will be done for the present with both banks doing business at their old stands. In a statement given out by W. E. McWhirter, president of the Salisbury Bank and Trust company, the cause of the merger is stated in the first paragraph as follows: "About two weeks ago certain rumors, were circulated which affected our bank and during the past two weeks there has been a slow but steady run that depleted our cash reserve to such an extent that it was deemed best in the interest of stockholders and depositors that we merge with the Wachovia Bank and Trust company." The Salisbury Bank and Trust company was organized in 1912 and has had fine business and rapid growth. It had a capital stock of $150,000 and deposits approximating $1,000,000. In a statement made March 31 total resources were given at more than $1,500,000. The Wachovia's assets are placed at $36,000,000 and it is recognized as one of the strongest banking firms in the south. Assurances are given that no customer of the Salisbury Bank and Trust company will lose a penny.