Breckinridge Bank - Cloverport, KY

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: January 1, 1932*
Location: Cloverport, Kentucky (37.833, -86.633)

Metadata

Model: gpt-5-mini
Short Digest: 6c05c99d

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions

Description

Article describes a run on the Breckinridge Bank in January 1932 when two other county banks closed. The bank imposed withdrawal restrictions (Vincennes plan) and borrowed funds but did not suspend or close permanently; by July 1933 it had reduced bills payable and was operating. Bank name printed as Breckinridge-Bank of Cloverport in the article; standardized to Breckinridge Bank.

Events (1)

1. January 1, 1932* Run

Cause: Local Banks
Cause Details: Run occurred concurrently with closure of two other county banks, triggering heavy withdrawals.
Measures: Borrowed $50,000; invoked Vincennes plan restricting withdrawals to 5% on checking accounts and prohibiting withdrawals on savings.
Newspaper Excerpt: they had to borrow in January 1932 to tide them over in the run on the bank, at the time when two other banks in the county closed their doors.
Source: newspapers

Newspaper Articles (1)

1. July 12, 1933 The Breckenridge News Cloverport, KY

Article from The Breckenridge News, July 12, 1933

Click image to open full size in new tab

Article Text

REPORT OF THE CLOVERPORT BANK The semi-annual report of the Breckinridge-Bank of Cloverport as of July 1, 1933, carries some interesting figures to those who are connected with the bank and depositors as well. It is recalled that a year ago, the bank had bills payable of $50,000. due to money they to borrow in January 1932 to tide them over in the "run" on the bank, at the time when two other banks in the county closed their doors. That was a hectic time, but, our local bank managed to pull through by resorting to the Vincennes plan wherein they restricted the withdrawals to 5 percent on checking accounts and no one was allowed to draw on their savings. It seemed terribly hard at first, but we all got used to it, and now we tell with great deal of satisfaction of how me managed to pull through on a working capital of less that fifty dollars. January 1932 was much more harassing time to this bank than the national banking holiday. But, thanks to those who are operating the bank, it is coming through safely The statement as of July 1, shows that the bills payable have been reduced to $38,664.67 Somethings like $12,000. has been earned and paid out by the bank in a year's time. This doesn't sound like drop in the bucket to persons used to dealing in millions, but to those of us who live in a bankrupt community, it is something to boast of. We, who have daily contact with the employees of the bank know how they have worked in order to cut down the operating expenses; their salaries have been cut to the bone and they have been careful in making loans; and have weighed every transaction with care and thought, at the same time trying to give the service that every bank should give its patrons. It has been no small job. Truly, we are happy to see our local bank getting on its feet again, and those who are responsible for its operations are to be commended. They are all our home folks, people in whom we have the greatest confidence, and, we believe we speak for thousands when we say, we do appreciate them.