Peoples Savings Bank - Natchez, MS

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: savings bank
Start Date: March 1, 1929*
Location: Natchez, Mississippi (31.560, -91.403)

Metadata

Model: gpt-5-mini
Short Digest: 7fd39987022f1cf4

Response Measures

None

Description

Article (Sun Herald, 1929-03-19) states an unfounded rumor started a run in March 1929, forcing the Bank of Commerce and its savings department, the People's (Peoples) Savings Bank, to suspend. Accounts were transferred to City Bank & Trust Co. and Britton & Koontz National Bank and checks issued for depositors. Closure/transfer rather than reopening is described. 'People's' spelling in the article corrected to the provided bank name. No explicit receiver named.

Events (3)

1. March 1, 1929* Run

Cause: Rumor Or Misinformation
Cause Details: An unfounded rumor regarding the bank's stability triggered heavy withdrawals and a run in March 1929.
Measures: President Frank J. Duffy put up personal funds and added institution assets to bolster liquidity; checks were written for depositors and accounts later transferred to other banks.
Newspaper Excerpt: were forced to suspend March because an unfounded rumor regarding their stability started a run that could not be checked
Source: newspapers

2. March 1, 1929* Suspension

Cause: Rumor Or Misinformation
Cause Details: Suspension in March 1929 was a direct consequence of the run caused by unfounded rumors; bank's affairs were transferred to other institutions rather than resuming independently.
Newspaper Excerpt: were forced to suspend March because an unfounded rumor ... started a run
Source: newspapers

3. March 19, 1929 Other

Newspaper Excerpt: the formal transfer of accounts to the City Bank and Trust Company and the Britton and Koontz National bank is now effective. Checks have been written for all depositors ... About 2000 checks have been issued and with time certificates deposit, about $450,000 that is being paid immediately.
Source: newspapers

Newspaper Articles (1)

1. March 19, 1929 Sun Herald Biloxi, MS

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Article Text

Depositors in Natchez Bank Are Paid Promptly Natchez, Miss., March 19.-All details in connection with the transfer of the affairs of the Bank of Commerce and its savings department, the People's Savings bank, that were forced to suspend March because an unfounded rumor regarding their stability started a run that could not be checked, have been completed by the state banking department and the formal transfer of accounts to the City Bank and Trust Company and the Britton and Koontz National bank is now effective. Checks have been written for all depositors of the Bank of Commerce and the People's Savings bank and their checks will be honored by the two banks that have assumed responsibility for the deposits About 2000 checks have been issued and with time certificates deposit, about $450,000 that is being paid immediately. Frank J. Duffy, president of the Bank of and People's Savings bank, not only put up personal funds in an effort to check the run but the assets of the institution with additional amounts, making total of $90,000. Had it not been for this depositors would have been compelled to wait the process of liquidation through receivership. In commenting on Mr. Duffy's S. Love, state superintendent of banks, said "The run on the bank and ultimate closing was tragedy, uncalled for, wholly unnecessary, yet it happened. By your efforts and the sacrifice you made personally, the situation was saved. not only appreciate this but it causes me to think more of mankind generally."