7459. Goldsboro Bank (Goldsboro, MD)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
September 15, 1931
Location
Goldsboro, Maryland (39.034, -75.787)

Metadata

Model
gpt-5-mini
Short Digest
f8e14678091f7b70

Response Measures

None

Description

Newspapers report a moderate run in late Sept–early Oct 1931 that led directors to keep doors closed pending State bank examiners (suspension). The bank subsequently went into receivership (receiver in charge by 1932) and paid dividends in liquidation. Dates are taken from article publication dates; exact day of initial closing is reported in the Oct 7, 1931 Inquirer item (failed to open Oct 6, 1931) and the Oct 14, 1931 Smyrna Times follow-up. State bank type inferred from name and state examiner involvement.

Events (3)
1. September 15, 1931 Run
Cause
Bank Specific Adverse Info
Cause Details
Moderate withdrawals over the prior two to three weeks that the bank could not meet from liquid funds; pressure on liquidity rather than an explicitly described rumor.
Measures
Directors kept the bank closed pending arrival of State bank examiners; attempted liquidation of funds to meet withdrawals.
Newspaper Excerpt
due to a moderate run on the bank during the past two or three weeks
Source
newspapers
2. October 1, 1931* Receivership
Newspaper Excerpt
placed in charge of the institution after it went into the hands of receivers (reported Aug 3, 1932). Dividend will be paid depositors ... based on belief that liquidation of the assets ... will continue as satisfactorily since the closing of the bank last Autumn.
Source
newspapers
3. October 6, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Directors closed bank because of inability to liquidate funds to meet sustained withdrawals; examiners were called in and bank did not resume business at that time.
Newspaper Excerpt
The Goldsboro Bank ... failed to open its doors this morning pending the arrival of State bank examiners.
Source
newspapers

Newspaper Articles (5)
1. October 7, 1931 The Philadelphia Inquirer Philadelphia, PA
Article from The Philadelphia Inquirer, October 7, 1931

Click image to open full size in new tab

Article Text

New York Exchange Takes Drastic Step to Stem Bear Raids Continued From Page 19 by Representative A. J. Sabath of today. "I feel is imperative that short selling should cease immediately, the letter said. "The extreme inflation and the present deflation caused by professional short selling is responsible for the closing of 2000 banks, has thrown more than 8,000,000 people out of employment, has sent thousands of business men into bankruptcy and has brought misery and dissatisfaction to the entire Nation. "There is no question that the matter of the prohibition of short selling will be taken up in the next session of Congress. "Before Congress convenes. however, am hoping that you will see the justice and righteousness of my position and restrict short selling of your own volition. Failure on your part to heed my warning may result in demand to suspend all trading on the Stock Exchange until strict regulatory laws are enacted X am confident that legislation concerning this matter will not be difficult to secure. Maryland Bank Closed RIDGELY, Md., Oct. 6.-The Goldsboro Bank, Goldsboro, Caroline county, Md., failed to open its doors this morning pending the arrival of State bank examiners. The explanation for the need of this action on the part of the directors is stated

2. October 14, 1931 Smyrna Times Smyrna, DE
Article from Smyrna Times, October 14, 1931

Click image to open full size in new tab

Article Text

GOLDSBORO BANK CLOSED Institution Second to Be Affected on Shore Last Week The Goldsboro Bank of Goldsiboro, Caroline county, Md., has failed to open its doors since Tuesday morning of last week pending the arrival of State banking examiners. This, it was said, was due to a moderate run on the bank during the past two or three weeks, and the impossibility of liquidating funds enough to take care of withdrawals. The closing of this bank followed closely the closing of the Bank of Queenstown a State depository at Queenstown, making the second bank to be closed on the Eastern Shore last week. Many depositors of the Goldsboro bank who had hoped that the Greensboro Bank would take over Goldsboro bank were keenly disappointed when Dr. W. Winder Goldsborough, president of the Greensboro Bank, denied such reports. Officers of the Goldsboro Bank are: President, J. Spencer Lapham; cashier, J. Ross Bulin; assistant cashier, Mrs. John Sylvester.

3. August 3, 1932 Evening Star Washington, DC
Article from Evening Star, August 3, 1932

Click image to open full size in new tab

Article Text

DIVIDEND PLANNED. GOLDSBORO, Md., August 3 (Special).-A dividend will be paid depositors of the Goldsboro Bank on or about the middle of October, it is announced by C. Raymond Frey, State bank examiner, who was placed in charge of the institution after it went into the hands of receivers. The statement is based, it is said, on the belief that the liquidation of the assets still remaining in the receiver's hands will continue as satisfactorily during the next few months as it has since the closing of the bank last Autumn. The statement means that between $50,000 and $65,000 in cash will be available to depositors between now and the middle of October.

4. February 8, 1933 Smyrna Times Smyrna, DE
Article from Smyrna Times, February 8, 1933

Click image to open full size in new tab

Article Text

BANK HEARING In Court To Recover Instituted by Receiver say in the $50,000 suit of the of the defunct Golds$ against the Maryland Company, a bonding constarted in Talbot county art Monday after the bill has had been amended to with a defense exception, and the the court. suit to The recover receivby $94,000 alleged to have by Robert Jarrell, Jr., the Pass Dulen, convicted ofking the I attempt receiver, bank. statement said to Owen show the as Knotts, plain- coun- that funds. the must be the the sheet and with st Dulin alone Clayton defense clearly had Smith, access estab- counthe former the waything, for law before bank the it amount officials would the bonding comHay defalcations under the King Alyce E. Sylvester, the Goldsboro Bank, was recount witness. club followed She testified in hand- as the bank and the bookkeeping

5. December 12, 1934 The Evening Sun Baltimore, MD
Article from The Evening Sun, December 12, 1934

Click image to open full size in new tab

Article Text

their allottments. It has been through $111,230 LYING the action of receivers in sending letters to the last known addresses of the laggard depositors that they have UNCLAIMED IN 11 found failure to appear in some cases due death. Some Now Wandering BANKS IN STATE Regarding the other apparent plutocrats, various guesses are hazarded. Portion Of Dividends Salvaged From Closed Institutions [Continued From Page 1] cent., involving $692,543.70, amount unclaimed $4,380.83. Dividend Declared Goldsboro Bank, dividend of 242-7 per cent., involving $117,793.41 amount unclaimed $3,386.85. People's Bank of Somerset dividend of 20 per cent., involving $99,029.67 unclaimed $5,982.80 Citizens' Bank of Hurlock dividend of 20 per cent., involving $49,571.41 amount unclaimed $3,935.84. People's Bank of Smithsburg. dividend of 25 per cent. $88,442.60 amount unclaimed $2,621.27 Washington Trust Company of Ellicott City, dividend of 50 per cent., involving $174,608.15, amount unclaimed $679.75. The Deal's Island Bank declared dividend of ten per cent. on December 3. Sufficient time has not elapsed establish any figure of uncollected balances due. For that reason the figures involved in this distribution, the 10 per cent. amounting to $6,419.59, are not included here. In addition to these there are banks that are in the hands of conservators and that have not paid dividends and other banks that were taken over by other banking institutions. There are only few of the latter, one of them having been the Mercantile Savings Bank of Baltimore.