Bank of Maxton (Maxton, NC)

Episode Information

Episode UID
66023871498
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
6602387 routing
Routing Number
66-0238
Start Date
October 6, 1924
Location
Maxton, North Carolina (34.735, -79.349)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
b904cdbc5a1ff5de

Response Measures

None

Description

Temporary receiver was named and a new People's Bank opened as receiver for the failed bank.

Events (5)
1. October 6, 1924 Run
Cause
Bank Specific Adverse Info
Cause Details
Heavy withdrawals following prolonged weak condition since 1920 (deflation and low cotton prices) precipitated the run.
Measures
Closed doors; state examiner called; reorganization contemplated.
Newspaper Excerpt
closed its doors yesterday following a heavy run by depositors.
Source
newspapers
2. October 7, 1924 Receivership
Newspaper Excerpt
A temporary receiver, W. S. Coursey, has been named for the bank. No final reorganization has been effected.
Source
newspapers
3. October 7, 1924 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed after run and officials arranged for a temporary receiver and examination by state bank examiner.
Newspaper Excerpt
A temporary receiver, W. S. Coursey, has been named for the bank.
Source
newspapers
4. November 22, 1924 Reopening
Newspaper Excerpt
The People's Bank opened for business this morning ... The new bank is receiver for the Bank of Maxton that closed October 6
Source
newspapers
5. December 21, 1925 Other
Newspaper Excerpt
People's Bank of Maxton, receivers for the Bank of Maxton, which failed last year.
Source
newspapers

Newspaper Articles (11)
1. October 7, 1924 The Salisbury Post Salisbury, NC
Article from The Salisbury Post, October 7, 1924

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Article Text

MAXTON BANK IS THOUGHT SOLVENT Chief Bank Examiner To Make Investigation of Books; Bank Closed Yesterday. Raleigh, Oct. 7.—Clarence Latham, chief bank examiner of the state corporation commission, has gone to Maxton to make an examination of the books of the Bank of Maxton which closed its doors yesterday following a heavy "run" by depositors. Officials of the bank informed Mr. Latham that they thought the closing of the bank was temporary and that the depositors will not lose, adding that a reorganization was on foot. Liabilities of the bank, according to figures of the corporation commission, amount to approximately $622,750, divided as follows: Capital stock $72,750; borrowed money $350,000; deposits $200,000. For assets, it was stated, the bank has between five and six hundred thousand dollars of outstanding loans which with other property is believed to be sufficient to make the institution solvent. The Bank of Maxton was organized in 1900 with a capital of $20,000. This was increased from time to time until the present capital stock is $72,500.

2. October 7, 1924 The News and Observer Raleigh, NC
Article from The News and Observer, October 7, 1924

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Article Text

BANK OF MAXTON CLOSES ITS DOORS Follows Heavy "Run" On Bank By Depositors; State Bank Examiner On Scene Following a heavy "run" by depositors, the Bank of Maxton closed its doors yesterday morning at 11 o'clock and Clarence Latham, chief bank examiner of the State Corporation Commission went to Maxton from Raleigh to make an examination. Officials of the bank think that the close is temporary and that the depositors will not lose. Officials state that a reorganization is on foot. Liabilities of the bank amount to approximately $622,750 divided as follows: capital stock $72,750; borrowed money $350,000; deposits $200,000. For assets the bank has between five and six hundred thousand dollars of outstanding loans which with other property is believed to be sufficient to make the institution solvent. The Bank of Maxton was organized in 1900 with a capital of $20,000 This was increased from time to time until the present capital stock is $72,750. Immediate cause of the closing of the doors of the bank was heavy withdrawals of funds by depositors, but the bank had been in bad condition since 1920 due to deflation and the low price of cotton at that time. Eighteen months ago W. S. Coursey was appointed president at the recommendation of the Corporation Commission and during his tenure of office reduced the liabilities of the bank by more than three hundred thousand dollars. Before his appointment as president of the bank Mr. Coursey had been with the auditing company of Scott-Charnley, of Charlotte. He was employed by the Corporation Commission on several auditing jobs one of which was the Central Bank of Raleigh. Other officers of the bank are Lacy Williams, cashier and vice-president and Wayne Williams, assistant cashier.

3. October 7, 1924 The Greensboro Record Greensboro, NC
Article from The Greensboro Record, October 7, 1924

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Article Text

MAXTON BANK TO BE INVESTIGATED Examiner Latham Goes to Delve Into Affairs of Closed Bank RALEIGH, Oct. 7.—Clarence Latham chief bank examiner of the State Corporation commission, has gone to Maxton to make an examination of the books of the bank of Maxton, which closed its doors yesterday following a heavy "run" by depositors. Officials of the bank informed Mr. Latham that they thought the closing of the bank was temporary and that the depositors will not lose, adding that a re-organization was on foot. Liabilities of the bank, according to figures of the corporation commission, amount to approximately $622,750, divided as follows: capital stock, $72,750; borrowed money, $350,000; deposits, $200,000. For assets, it was stated, the bank has between five and six hundred thousand dollars of outstanding loans which with other property is believed to be sufficient to make the institution solvent. The Bank of Maxton was organized in 1900 with a capital of $20,000. This was increased from time to time until the present capital stock is $72,500.

4. October 8, 1924 Asheville Citizen-Times Asheville, NC
Article from Asheville Citizen-Times, October 8, 1924

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Article Text

MAXTON BANK TO BE INVESTIGATED RALEIGH, Oct. 7.—Clarence Latham, chief bank examiner of the State Corporation Commission, has gone to Maxton to make an examination of the books of the Bank of Maxton which closed its doors yesterday following a heavy "run" by depositors. Officials of the bank informed Mr. Latham that they thought the closing of the bank was temporary and that the depositors will not lose, adding that a reorganization was on foot. Liabilities of the bank, according to figures of the Corporation Commission, amount to approximately $622,750, divided as follows: Capital stock $72,750; borrowed money, $350,000; deposits, $200,000. For assets, it was stated, the bank has between five and six hundred thousand dollars of outstanding loans which with other property is believed to be sufficient to make the institution solvent. The Bank of Maxton was organized in 1900 with a capital of $20,000. This was increased from time to time until present capital stock is $72,500.

5. October 8, 1924 The Charlotte Observer Charlotte, NC
Article from The Charlotte Observer, October 8, 1924

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Article Text

COURSEY NAMED RECEIVER FOR THE BANK OF MAXTON Institution May be Found to be Solvent Upon Thorough Investigation. Special to The Observer, MAXTON, Oct. 7.—The excitement due to the closing yesterday of the Bank of Maxton is somewhat abated today. A temporary receiver, W. S. Coursey, has been named for the bank. No final reorganization has been effected. The rumor is that one is in process. No wrongdoing is attached to the officials. May Be Solvent. RALEIGH, Oct. 7.—(By the Associated Press.)—Clarence Latham, chief bank examiner of the state corporation commission, has gone to Maxton to make an examination of the books of the Bank of Maxton, which closed its doors yesterday following a heavy "run" by depositors. Officials of the bank informed Mr. Latham that they thought the closing of the bank was temporary and that the depositors will not lose, adding that a reorganization was on foot. Liabilities of the bank, according to figures of the corporation commission, are approximately $622,750, divided as follows: Capital stock, $72,700; borrowed money, $350,000; deposits $200,000. For assets, it was stated the bank has between $500,000 and $600,000 of outstanding loans, which, with other property, is believed to be sufficient to make the institution solvent. The bank of Maxton was organized in 1900 with a capital of $20,000. This was increased from time to time until the present capital stock is $72,500.

6. October 8, 1924 The Herald-Sun Durham, NC
Article from The Herald-Sun, October 8, 1924

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Article Text

BANK OF MAXTON IS FORCED TO CLOSE UP Raleigh, N. C., Oct. 7.—Following what was described as a "heavy run" by depositors, the Bank of Maxton closed its door Monday, according to word received here. Clarence Latham, chief bank examiner, went to Maxton Monday afternoon to make an examination of the bank's condition. It was stated that officials of the bank contemplate a re-organization and believed the present condition to be temporary. The institution was

7. October 8, 1924 News and Record Greensboro, NC
Article from News and Record, October 8, 1924

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45 ENROLL FOR WORK IN EVENING CLASSES Students in Night School Will Pursue 89 Commercial Courses—Others Will be Offered Registration of students in the night classes at the high school reached a total of 45 individuals Monday evening when the session opened for the fall. Eighty-nine courses in business English, commercial arithmetic, shorthand and typewriting and bookkeeping will be offered this year. If any subject is requested by as many as 10 persons, those in charge of the school will try to arrange a period and teacher for the class. At the first meeting there were apparently none who desired any courses except those pertaining to training in office work and business. Last year a course in millinery was given by Miss Graham of North Carolina college and it is hoped by the directors of the session that enough interest will be manifested in this subject again this year to warrant having a class in millinery. The classes will convene at 7:30 o'clock every Monday, Wednesday and Friday evening, the periods will be 45 minutes long, and the session will close at 9:45 o'clock. It is expected that many more individuals than the number now enrolled will take advantage of this opportunity to improve their education before the week is out. There is still time for such persons to register and receive the benefit of the courses offered at the night school. Mrs. Eliza Kimball Dead. (Special to Daily News) Saxapahaw, Oct. 7.—Mrs. Eliza Kimball, a highly respected woman of South Alamance, died at the home of her daughter, Mrs. J. H. Moore, last Saturday and was buried at Cane Creek church on Sunday. The funeral was conducted by Rev. H. L. Isley. She is survived by one daughter, Mrs. J. H. Moore, and one son, John Kimball. Her husband preceded her to the grave many years ago. Early in life Mrs. Kimball connected herself with Pleasant Hill Christian church. Her long life of 84 years was spent in the Master's service. Latham Goes To Maxton. (By Associated Press.) Raleigh, Oct. 7.—Clarence Latham, chief bank examiner of the state corporation commission, has gone to Maxton to make an examination of the books of the bank of Maxton which closed its doors yesterday following a heavy "run" by depositors. Officials of the bank informed Mr. Latham that they thought the closing of the bank was temporary and that the depositors will not lose, adding that a re-organization was on foot. Far East Tea Room Opens On West Market Street The Far East tea room, 113 1/2 West Market street, was opened for public inspection yesterday. The room is suggestive of the orient with its soft draperies of Japan and China. Only Chinese dainties and foods are served. This food is prepared by Chinese cooks. Music is rendered during the day and evening. The place opens every morning at 11 o'clock and closes at one hour after midnight. Un Seen is proprietor of the tea room and George Lin Fun is manager.

8. October 9, 1924 The Robesonian Lumberton, NC
Article from The Robesonian, October 9, 1924

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Article Text

OFFICIALS THINK CLOSING OF BANK OF MAXTON TEMPORARY Also That Depositors Will Not Lose—Reorganization on Foot. As stated in Monday's Robesonian, the Bank of Maxton at Maxton closed its doors Monday morning at 11 o'clock following a heavy "run" by depositors. Tuesday's Raleigh News and Observer states that Clarence Latham, bank examiner of the State Corporation commission, went to Maxton from Raleigh Monday to make an examination. Officials of the bank think that the close is temporary and that depositors will not lose. Officials state that reorganization is on foot. Liabilities of the bank amount to approximately $662,750 divided as follows: capital stock $72,750; borrowed money $350,000; deposits $200,000. For assets the Bank has between five and six hundred thousand dollars of outstanding loans which with other property is believed to be sufficient to make the institution solvent. The Bank of Maxton was organized in 1900 with a capital of $20,000. This was increased from time to time until the present capital stock is $72,750. Immediate cause of the closing of the doors of the bank was heavy withdrawals of funds by depositors, but the bank had been in bad condition since 1920 due to deflation and the low price of cotton at that time. Eighteen months ago W. S. Coursey was appointed president at the recommendation of the Corporation Commission and during his tenure of office reduced the liabilities of the bank by more than three hundred thousand dollars. Before his appointment as president of the bank Mr. Coursey had been with the auditing company of Scott-Charnley, of Charlotte. He was employed by the Corporation Commission on several auditing jobs one of which was the Central Bank of Raleigh. Other officers of the bank are Lacy Williams, cashier and vice-president and Wayne Williams, assistant cashier. Temporary Receiver Named. Maxton, Oct. 7.—The excitement due to the Bank of Maxton failure for over a half a million dollars yesterday is somewhat abated today. A temporary receiver, W. S. Coursey, has been named for the bank. No final reorganization has been effected. The rumor is that one is in process. No wrong doing is attached to the officials. The assets of the bank is considered of a strong nature and it should have no difficulty, it is said, in paying all depositors in full. Giants 3 Games, Senators 2. The 6th game of the world series is being played in Washington today. The New York Giants won Monday's game, 6 to 4, the Washington Senators won Tuesday 7 to 4, New York won yesterday 6 to 2, these 3 games being played in New York.

9. November 23, 1924 The News and Observer Raleigh, NC
Article from The News and Observer, November 23, 1924

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MAXTON'S NEW BANK STARTS BUSINESS Is Receiver For Institution That Closed On October 6 Maxton, Nov. 22.—The People's Bank opened for business this morning under flattering auspices. The first day's business was very satisfactory, the deposits exceeding expectations. The directors of the bank are: J. K. Kinard, G. B. Sellers, E. H. Evans, A. J. McKinnon, J. F. McDonald, H. A. Barnes, T. W. Williams, J. W. Carter. G. B. Sellers is president, E. H. Evans and A. J. McKinnon vice-presidents, and Z. Griffith, cashier. The new bank is receiver for the Bank of Maxton that closed October 6th.

10. November 23, 1924 News and Record Greensboro, NC
Article from News and Record, November 23, 1924

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Article Text

People's Bank At Maxton Has Satisfactory Opening (Special to Daily News) Maxton, Nov. 22.—The Peoples bank opened for business this morning under flattering auspices. The first day's business was very satisfactory, deposits exceeding expectations. The directors of the bank are: J. K. Kinard, G. B. Sellers, E. H. Evans, A. J. McKinnon, J. F. McDonald, H. A. Barnes, T. W. Williams, J. W. Carter. G. B. Sellers is president, E. H. Evans and A. J. McKinnon, vice-presidents, and Z. Griffith, cashier. The new bank is receiver for the Bank of Maxton that closed October 6.

11. December 21, 1925 The Robesonian Lumberton, NC
Article from The Robesonian, December 21, 1925

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W. R. McNEILL GETS JUDGMENT AGANIST A MANTON BANK Robeson County Persons Principals in Case in Scotland County Court. Laurinburg, Dec. 21.-A case on the civil docket of Superior court at Laurinburg in which Robeson county parties were principals, was of special interest. W: R. McNeill was the plaintiff in a suit against the People's Bank of Maxton, receivers for the Bank of Maxton, which failed last year. It appears that the Bank of Maxton had borrowed from Mr. McNeill $10,000 in Liberty bonds, and had given him as security mortgage on some real estate in the town of Maxton together with some other credits. The Bank of Maxton in turn took the $10,000 in government bonds and used them as collateral to SC. cure a loan of $9,000 at another bank. In course of time the Bank of Maxton was closed. Attorneys for Mr. McNeill are said to have advised him to pay the loan of $9,000 which the Bank of Maxton was owing and redeem his $10,000 in Libcrty bonds. He did this and paid the $9,000 plus $180 interest. and got back his $10.000 Liberty bonds. But still he was out the $9,180. and he brought suit against the People's Bank 03 Maxton, receivers for the Bank of Maxton. to recover. The court awarded him judgment in that sum. He still holds the mortgage on the Maxton real estate and has recovered his Liberty bonds. but is out $9,180 for which the court gave him a judgment.