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Asheville Bank Closes With Others In Western North Carolina ASHEVILLE, N Nov 20 Central Bank and Trust financial in this section, failed to for business open and five other today noon western North Carolina banks had closed their doors at $1,000,000, the Central Bank and Trust 24, the date of the last bank call, had deposits of Its sources given at that time $21,753,000. Other banks closing were the bank here, including its branch at Osteen Veterans Hospital; the First Bank and Trust company, the American Bank and Trust company, the Citizens National Bank, and the Bank of Lowell. John Mitchell, state bank examiner, notified of the Central Bank Trust company's failure to open and expected to send examiner here immediately to take charge of it. statement given out by the board of directors said the bank was closed in anticipation of heavy To Guard Depositors "This action," statement said, "was taken solely conserve the interests of the depositors and only after became apparent that such step was wise. During the past days the bank been forced to withstand heavy of funds." Wallace R. Davis, civic leader, president of the bank. He was reported his home this mornbut could not be reached. Brown, chairman of the board directors, refused amplify statement given out by the rectors. notice posted on the door of the First Bank and Trust company, said the stitution had been placed the hands of the State Banking department for liquidation. was capitalized $150,000, had surplus $204,261 and deposits according to its last statement of condition. Heavy runs developed early in the morning on the American Bank and Trust and the company Citizens National Bank at Hendersonville and they soon closed. The American Bank and Trust company, smallest the three banks, had deposits of $111,638. The Citizens National, capitalized $100,000, had surplus of $150,000 and deposits of $1,077,397. The Bank of was capitalized at $50,000; and $25,000 surplus; undivided profits of $168; and deposits of $615,051 its main office at Biltmore and branch The Bank Lowell, in Gaston county, had deposits of $70,000 the time of its last statement. capitalized at $20,000. Officials the Lowell bank said its closing had no connection with other suspensions today, blaming its shrunken deposits result of failure of Lowell yarn mills to run full time of late. Bankless The closing of the three banks Hendersonville left that city approximately 8,000 residents without banking facilities. Other banks in Asheville said this afternoon that they had some withdrawals, but were condition to meet demands their depositors might make of them. REAL ESTATE CAUSE RALEIGH, N. C., Nov. primary cause of the closing the Central Bank and Trust company, of Asheville, other Western North Carolina banks today named by John Mitchell, state bank examiner, the collapse of ren estate values the section from a "highly in flated plane." In the statement issued here he said: "The unfortunate closing of the Central Bank and Trust company, Asheville, N. this morning has resulted in the closing of the following banks: First Bank and Trust company, American Bank and Trust Co., Hendersonville; Biltmore-O Bank, which latter bank was closely affiliated with the Asneville institution. And, so, the Sitizens aNtional bank, not member the system. The Bank of Lowell also closed later in the day. Real Estate Boom "In order that unnecessary hysteria the part of the public on not develop, the department may feels that should call attention to the contributing and primary the failure of the Cencauses of tral Bank and Trust company of "Immediately preceding the collapse of the Florida real estate boom, large number of highpowered real estate operators transferred their activities from Florida largely Asheville and The result of their activities produce highly inflated plane real estate values. The result collapse in real estate, well other values, made impossible for the failed banks quidate their receivables in sufficient volume meet demands of depositors. Purely Local "This situation is purely local one and does not in any way reflect conditions the state generally and should cause no uneasiness concerning the solvency other banks within the state. of September 24, the date the call report of condition, North Carolina banks held cash reserve of million dollars and secondary reserve consisting of marketable securities in the amount of thirty. five dollars. which lustrative of strength of the state's financial institutions."
