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Doors of Grayson County State Bank Closed Tuesday Financial Institution of Long Standing Halts Operations At Order of Board of Directors Monday Night BANK BOOKS ARE NOW BEING AUDITED The Grayson County State Bank, founded here by R. C. Hazelip in 1886, closed its doors Tuesday morning, March 11, at the order of the board of directors, following meeting of the board Monday night. A notice posted on the door, stating that the bank was closed, awaiting action of the State Banking Department, which was notified early Tuesday morning of the step taken. Tuesday night, after the arrival of W. A. Dicken, deputy banking commissioner of Frankfort, and D. Archibald, bank examiner of Louisville, second meeting of majority of the directors was held, and the organization turned over to the State Banking Department. complete audit of the bank's books be made, work on which started Wednesday morning. It will be several days before the audit completed after which the bank will be placed in the hands of a liqudatagent who will take care of the collection of loans as they fall due. Gayle Prather, cashier and vice president of the bank, emphasized the fact that the closing was voluntary action by the directors and that there would be no shortin the funds. "There is no shortage and the bank's books balance,' asserted Mr. Prather, who attributes the finantrouble to frozen loans, crop failures, depressed business conditions, as well as the fact that much has out of the bank money gone into investments outside of the county "Inability to obtain more cash from city banks collateral was the immediate difficulty," the cashier said Tuesday. There had been some withdrawal of accounts recently, but no run on the bank. Deposits had fallen to $360,000 from over $400,000 at the beginning of the year. The bank has $370,000 out on loans and a number of notes past due. trouble started in farm loans during the World War," the cashier said. "There number of second mortgages. In 1927 the stockholders voluntarily made 100 per cent assessment to relieve the isting condition when the bank was
