7214. Pendleton Bank (Falmouth, KY)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
October 1, 1931*
Location
Falmouth, Kentucky (38.677, -84.330)

Metadata

Model
gpt-5-mini
Short Digest
28f8e8d8

Response Measures

Borrowed from banks or large institutions, Full suspension, Books examined

Other: State Banking Commissioner placed affairs in his hands; liquidator appointed.

Description

Articles report a silent run on the Pendleton Bank several weeks before it closed; the bank closed its doors in November (reported Nov in a 1931-era article) and was placed in the hands of the State Banking Commissioner. A liquidator appointment was announced in April 1932 with effective action in May. No reopening is reported; the bank was being liquidated.

Events (3)
1. October 1, 1931* Run
Cause
Bank Specific Adverse Info
Cause Details
A 'silent run' with heavy withdrawals as notes were slow to pay and drought-related farm distress reduced liquidity; bank borrowed funds to meet withdrawals
Measures
Bank borrowed money (from correspondents/other sources) to meet withdrawal demands
Newspaper Excerpt
Several weeks before the bank closed there [was a] silent run and the bank had to borrow money to meet these demands
Source
newspapers
2. November 1, 1931* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Following heavy withdrawals and poor collections (slow notes) and drought-related strain on loans, the bank closed and was turned over to the State Banking Commissioner
Newspaper Excerpt
The Pendleton Bank closed its doors Nov. and the affairs of the bank placed in the hands of the State Banking Commissioner
Source
newspapers
3. May 1, 1932* Other
Newspaper Excerpt
Light appointed bank liquidator ... The closing of the Pendleton Bank ... affairs of the bank placed in the hands of the State Banking Commissioner ... majority of depositors must be secured before Courtney is ousted; Hon. Martin Light appointed to take place in May (appointment to liquidate bank). (Falmouth Outlook, Apr 29, 1932). (edited OCR corrected).
Source
newspapers

Newspaper Articles (2)
1. November 19, 1931 The Cynthiana Democrat Cynthiana, KY
Article from The Cynthiana Democrat, November 19, 1931

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Article Text

MONEY TAKEN BACK CINCY George W. Berger, President of the First National Bank, and a number of armed guards in two cars conveyed $100,000 to a Cincinnati bank on last Friday afternoon. The money was safely delivered to the depository of one of the largest banks in that city. This large sum of money was conveyed to Falmouth in an armored car on Wednesday of last week to meet any run on the bank following the closing of the Pendleton Bank. While this money was in Falmouth it was guarded during the night by special local guards. It was possibly the largest sum of money that ever slept in Falmouth over two nights. It developed that there was no need for this money to be brought to the First National, as there was no run made on the bank. This shows that the people of Falmouth and Pendleton county are very conservative in matters of this kind. It was well known that the First National Bank caried $186.000 in cash money of its own to meet any emergency or legitimate demand for money. There was as much money deposited in the First National Bank on Wednesday as was withdrawn.-Falmouth Outlook.

2. April 29, 1932 The Falmouth Outlook Falmouth, KY
Article from The Falmouth Outlook, April 29, 1932

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Article Text

Light Appointed Bank Liquidator Majority of Depositors Must Be Secured Before Courtney Is Ousted. Courtney, bankcommissioner for the Pendleton Bank, received on official notice last Friday from Dorman, State BankCommissioner, Frankfort, that he would be relieved of duties on May and that Honorable Martin Light McKinneysburg, this county, was appointed take place. No charges preferred against Mr. Courtney. On other hand. his work and he asked to render service Mr. Light that he could. It seems that monkey wrench was thrown into this arrangement on Sat urday Mr. Light's appointment up majority the in the Bank signified the this The faction in bank clamoring for the of Mr. Courtney got busy Tuesday morning to secure signatures appointment Mr. The faction favorable to Mr Courtney holding the position petitions Both factions go Frankfort and against removal of Courtney Mr Pendleton Counmen and farmers. He has had in understand will experienced man him liquidating the the This assistant resident Falmouth The Pendleton Bank closed its doors Nov. and the affairs the bank placed in the hands of the State Banking Commissioner that time, Wilson Alvin Courtney appointed Special Deputy Banking Commissioner year salary $225 per month He has served in this for the past months. Covington the Bank salary of $250 the streets that will also this position and a local attorney will get the The closing of the Pendleton Bank that has Falmouth and Pendleton County more than 3,000 accounts this bank the time deposits of more than 300,000. Several weeks before the bank closed there silent run and the bank had to borrow monmeet these demands, owing to notes very slow The borrowed money bank amount collected notes During the drouth 1930 the bank the for to food and feed and this crippled the bank fo: ready cash