First National Bank (Scottsville, KY)

View Charter #8599 on SPMC View balance sheet

Episode Information

Episode UID
859901484
Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
85990 national
Charter Number
8599
Start Date
August 16, 1923
Location
Scottsville, Kentucky (36.753, -86.191)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
bcb343d8ef14c4cd

Response Measures

Borrowed from banks or large institutions, Fed/other loan, Full suspension, Books examined

Description

Closed by National Bank Examiner after heavy depositor run linked to long-term loans.

Events (4)
1. March 18, 1907 Chartered
Source
historical_nic
2. August 16, 1923 Run
Cause
Bank Specific Adverse Info
Cause Details
Depositors withdrew funds after discovery of large long-term loans made during local oil boom that were illiquid/uncollectable.
Measures
Appeal sent to a national institution for funds; money was forwarded but insufficient to stop withdrawals.
Newspaper Excerpt
During the oil boom ... Wednesday depositors began drawing money from the bank.
Source
newspapers
3. August 16, 1923 Suspension
Cause
Government Action
Cause Details
Closed by the National Bank Examiner after heavy runs and inability to meet withdrawals due to illiquid long-term loans.
Newspaper Excerpt
The First National Bank of Scottsville ... was closed by National Bank Examiner W. M. Morgan today.
Source
newspapers
4. November 8, 1923 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (4)
1. August 17, 1923 The Daily Independent Maysville, KY
Article from The Daily Independent, August 17, 1923

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Article Text

DOORS OF BANK CLOSED; DUE TO TO LONG LOANS Allen County First National Bank Closed By Bank Examiner Following Run On Bank — Shortage Due to Long Time Loans. Bowling Green, Ky., August 16.—The First National Bank of Scottsville, Allen county, was closed by the National Bank examiner, W. M. Morgan, today. The carrying of too many long time loans was said to have been responsible for the closing which was said to have been capitalized for $50,000 and had deposits in excess of $600,000. During the oil boom in Allen county it was said the officials of the bank made a number of long time loans, which, while pronounced to be good, they were unable to realize on when needed. Wednesday depositors began drawing money from the bank. An appeal was sent to a national institution for funds. The money was forwarded but it did not prove to be sufficient to stem the tide and the examiner ordered the institution closed at once. N. S. Guy is president of the bank.

2. August 17, 1923 The Tennessean Nashville, TN
Article from The Tennessean, August 17, 1923

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Article Text

Scottsville, Ky., Bank Closed by U. S. Officer (By Associated Press.) Bowling Green, Ky., Aug. 16.—The First National Bank of Scottsville, Allen county, was closed by National Bank Examiner W. M. Morgan today. The carrying of too many long-time loans was said to have been responsible for the bank's closing which was said to be capitalized at $50,000 and had deposits in excess of $600,000.

3. August 21, 1923 The Columbia News Columbia, KY
Article from The Columbia News, August 21, 1923

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Article Text

First National bank at Scottsville has been closed on account of heavy runs upon it by William Morgan, National Bank Examiner.

4. August 24, 1923 The Leitchfield Gazette Leitchfield, KY
Article from The Leitchfield Gazette, August 24, 1923

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Article Text

BANK'S DOORS CLOSED Run by Depositors on Scottsville Bank Causes Step, "Slow Notes" Responsible (Elizabethtown News) The First National Bank at Scottsville, Ky., which had been one of the largest country banking institutions in Southern Kentucky, was closed yesterday by the national bank examiner, following a "run" by depositors. The bank was actively in charge of Pusey Gardner, cashier, a son of Mr. and Mrs. T. S. Gardner of this city. The run began mildly several days ago, and money was procured from Nashville in an effort to stem the tide, but depositors were at the bank in such crowds yesterday morning that the doors were closed thirty minutes after they had opened for the day's business. Long-time loans, at present uncollectable, made during the oil boom at Scottsville several years ago, are responsible for the bank's closing, according to newspaper dispatches. The national bank examiner said that the institution had $30,000 loaned which he thought could not be collected. It has a capital stock of $50,000 and deposits of more than $600,000. The institution is fully solvent, it is stated, and will pay out as soon as it can recover on its assets.