8522. Goldsboro Bank (Goldsboro, MD)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
October 1, 1931*
Location
Goldsboro, Maryland (39.034, -75.787)

Metadata

Model
gpt-5-mini
Short Digest
66f9be54

Response Measures

Full suspension, Books examined

Other: Receivership and litigation for alleged defalcations followed closure; dividend later paid from liquidation proceeds.

Description

Contemporary articles report a moderate run in the 2–3 weeks prior to early October 1931, the bank failed to open pending state examiners (suspension), and subsequently went into receivership (closed) with receiver actions and lawsuits continuing into 1932–1933. Dates are derived from newspaper publication dates (Oct 1931) and statements that the bank closed 'last Autumn' before Aug 1932 receiver statement.

Events (4)
1. October 1, 1931* Receivership
Newspaper Excerpt
the bank 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 since the closing of the bank last Autumn.
Source
newspapers
2. October 1, 1931* Run
Cause
Bank Specific Adverse Info
Cause Details
Moderate run on the bank over the prior two to three weeks that depleted liquid funds and made it impossible to meet withdrawals.
Measures
None specified beyond closing pending arrival of State bank examiners; later placed in receivership.
Newspaper Excerpt
this 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.
Source
newspapers
3. October 6, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank failed to open (suspended payments) because of inability to liquidate funds after a recent run; directors awaited state examiners' arrival.
Newspaper Excerpt
The Goldsboro Bank, Goldsboro, Caroline county, Md., failed to open its doors this morning pending the arrival of State bank examiners.
Source
newspapers
4. February 8, 1933 Other
Newspaper Excerpt
BANK HEARING In Court To Recover Instituted by Receiver ... suit to recover $94,000 alleged ... by the receiver ... defunct Goldsboro Bank ... witness testimony ... bookkeeping ... defalcations.
Source
newspapers

Newspaper Articles (4)
1. October 7, 1931 The Philadelphia Inquirer Philadelphia, PA
Article from The Philadelphia Inquirer, October 7, 1931

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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

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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

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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

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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