11608. Farmers Atlantic Bank (Ahoskie, NC)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
January 31, 1930
Location
Ahoskie, North Carolina (36.287, -76.985)

Metadata

Model
gpt-5-mini
Short Digest
4e557002

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Capital injected, Full suspension, Books examined

Description

The bank suspended business for receipt of deposits and payment of checks on January 31, 1930 after heavy withdrawals. Newspaper reports describe depositors refraining from withdrawal, collection efforts, and plans to organize a new bank to take over and liquidate the old institution — indicating the suspended bank did not resume normal business and was being wound up. No clear evidence of a specific misinformation incident (no corrected false telegram etc.), so the run is classified as rumor/ panic-driven rather than a discrete 'random' misinformation event.

Events (5)
1. January 31, 1930 Run
Cause
Rumor Or Misinformation
Cause Details
Heavy withdrawals by depositors in late January that drove the cash reserve below legal limits; described as widespread withdrawals and depositor nervousness rather than a discrete scandal or fraud.
Measures
Agreement of depositors to refrain from withdrawal, officers and stockholders worked to build cash reserve through collections and securing funds; assistance from neighboring bankers and collections of notes to pay bills payable.
Newspaper Excerpt
withdrawal of deposits January 31 when its cash reserve went below the legal limit due to withdrawal of heavy deposits by an customer
Source
newspapers
2. January 31, 1930 Suspension
Cause
Rumor Or Misinformation
Cause Details
Bank suspended after heavy withdrawals left its cash reserve below legal requirements; suspension described as response to depositor withdrawals and liquidity shortage.
Newspaper Excerpt
Farmers-Atlantic Bank, which suspended business for the receipt of deposits and payment of checks the latter part of January
Source
newspapers
3. March 13, 1930 Other
Newspaper Excerpt
Collection of notes due the bank is still being made at the FarmersAtlantic Bank, which suspended business ... The money thus collected is being used principally to reduce the bills payable by the bank to other larger banks. ... the corporation commission being willing to assist ... if possible to do so without liquidation . . . .
Source
newspapers
4. August 7, 1930 Other
Newspaper Excerpt
Depositors of the FarmersAtlantic Bank, which suspended business January 31, have held meetings this week to discuss the proposition of organizing another bank for the purpose of taking over and liquidating the [old bank]. Depositors offered stock in new institution.
Source
newspapers
5. November 13, 1930 Other
Newspaper Excerpt
amount of money in the Farmers-Atlantic Bank to the credit of Mr. Hoggard when the bank suspended business in January, and for which settlement has not been made.
Source
newspapers

Newspaper Articles (5)
1. February 13, 1930 The Herald Ahoskie, NC
Article from The Herald, February 13, 1930

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Article Text

Cecil Barnes Held in Newport, Tenn., After Failing to Pay for Gasoline TOOK LONG TRIP BANK STATUS IN BORROWED CAR DEPOSITS When Luther Farmers, jovial Officials Hopeful of Resuming Normal Business in Short Time farmer and filling station propriehere, Monday afternoon lent his big Buick sedan to Cecil Barnes, young man who also erates filling station near Luther did not expect that Barnes preparing to take as long NINETY PERCENT found out Tuesday night SIGN AGREEMENT telephone message from the chief of police of Newport, Tenn., informed him that his car Have Been at Work on Proband Barnes being held in that lem of Building Up town on charge of buying gasoReserve line and attempting to get away without paying for According the telephone With 90 percent of the deto Farmer, young Barnes sage posits of the bank insured stopped at filling station at Newwithdrawal by just across the North port, lina line in Tennessee, and had agreement of depositors, ofborrowed car filled up with ficials of the Farmers-Atline and attempted get away lantic Bank, which suspendwithout paying the proprietor. and payment of checks and overtaken arrested count 28 miles out of that town. receipt of deposits January Police there that the car 31 when its cash reserve stolen and telephoned back went below the legal mit due for information. Farmer was surprised when to withdrawal of heavy delearned that his car was in posit by an cusHe thought it was safely tomer, are hopeful of makAhoskie in its garage. Young the of Mr. and an announcement within Barnes, son Barnes here, had borrowed short time of a resumption the car for short time Monday of the regular business of afternoon with Farmer's consent the bank. and had promised to put it the night when he had finish- Officers, directors and stockHaving no use the holders have been at work automobile during Tuesday, throughout the week to build did not look into the garage cash reserve through collecand did not suspect other than of outstanding obligations that his Buick was safely stored due the institution and compleaway. tion of the agreement of deposiYoung Barnes was well thought refrain from withdrawal in Ahoskie and his action their funds. They have been (Continued on Page 4) successful such an extent that 90 percent of the total deposits have been protected against withdrawal and the cash on hand built considerably. In the meantime the loyalty of patrons of the institution that been such influential faein the business life of this community and the cooperation accorded by other institutions continued, making solution of Bank's difficulty sectional problem. The outward aspects of the situntion remains the same, with the bank accorded clean sheet solveney by the State bank aminers and the unusual situation 90 percent of its deposits protected by the faith of its customers against withdrawal, but through the work of the officers stockholders during the past in securing the cash with to operate the officials in charge are confident that there be definite made within short time. Although no statement could be all of them expressed themhopeful that the instituwould be reopened for the of its affairs. Mr. Bowers, representing the Commercial Bank of Baltimore, whose president was in Ahoskie week to confer with the local bankers over the situation, spending this week in Ahoskie to assist with the work straightenout the tangle. takes only time and patience in situation this kind. We hope to have definite statement for short time. In the meantime, requires time and patience."

2. March 13, 1930 The Herald Ahoskie, NC
Article from The Herald, March 13, 1930

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Article Text

BANK CONTINUES TO SEEK A WAY OUT Collection of notes due the bank is still being made at the FarmersAtlantic Bank, which suspended business for the receipt of deposits and payment of checks the latter part of January, Since the suspension of business, the bank has collected a substantial sum and continues to add more to its total as each day passes. The money thus collected is being used principally to reduce the bills payable by the bank to other larger banks. Satisfactory progress is being made in collections, and many borrowers are turning to other sources for their line of credit and are rallying to the local bank, hoping to curtail their obligations to such an extent that the bank's indebtedness may be substantially reduced. No announcement has come from officers about the reopening of the bank. The matter apparently stands where it did a week ago, with the corporation commission being willing to assist in this situation by giving the bank sufficient time in which to work self out if possible to do so without liquidation.

3. July 17, 1930 The Herald Ahoskie, NC
Article from The Herald, July 17, 1930

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Article Text

Folks In This County Borrowing Considerable Less Money From Banks; Profits This Year Lower MURFREESBORO LAGS More than $25,000 in taxes for 1929 are still not settled for by the six tax collectors in the county. Of this amount, Murfreesboro township has by far the largest percentage of taxes unaccounted for. Winton comes second in the list of townships, while Harrellaville, usual, is all but paid up for last year. Only $388.98 is outstanding in that township. Ahoskie has the third largest total of uncolalthough its percentage of uncollected taxes next to the lowest in the county. The figures supplied by County Accountant J. Northcott are: Ahoskie, $3,974.74; Harrellsville, Maneys Neck, $3,136.98; Murfreesboro, $10,850.37; St. Johns, $3,258; Winton, $4,006.37. Total uncollected, $25,615.19. Banks Are Tight With Their Money, According to Commission Reports DEPOSITS SUFFER LESS THAN MOST ITEMS Suspension of Business At Ahoskie Bank is Reflected in Comparative Figures for This and Last Year; Shows Decreased Loans, Less Money Borrowed and Operating Expense Account of $9,500 Hertford County banks just aren't putting out the money in 1930; the reports of the county's five banks. only four of which are lending money at all, plainly show this fact if nothing else. In about the same proportion, this county's banks are not showing the usual "paper" profits. Profits as shown in the reports pub18. lished in this paper are just about one-third what they were 12 months ago. Only three of the banks show any undivided profits at all. Money loaned out or paper rediscounted by the county's banks has been almost cut half since last year this time. Less than one million dollars credit in loans and rediscounts have been out by the four operating banks. Unmistakable evidences suspension of business by the Farmers-Atlantic Bank of Ahoskie is reflected in the comparative figures of this and last Less money is loaned, profits year. are cut two-thirds, and bills payable half. have been reduced by more than Only in department has there remained anything like last year's totals, and that is in total deposits, which have dwindled from in 1929 to $1,this year. The report of the Farmers-Atlantic Bank in which there is great interest because of the uncertainamong large majority of bank's stockholders and depositors of the future shows an operating deficit of almost $10,000, the exact figures being Loans and discounts have been reduced almost half, and money owed the bank has dwindled down less than $70,000. In these figures are seen evidences of what has been going on within since the bank suspended taking deposits and paying checks. Borrowers have been paying the bank at rapid clip despite the stringent times, and the bank has been in turn paying off its indebtedness. Total resources are considerably lower, indicating that those in charge have largely put the bank back where figures more nearly represent true values. The inflation has been taken out gradually, being done through the painful process of paying up. Many and depositors will study the report of this bank as it appears in this isbecause many have been anxious to know something of the operations since the last report three months ago. Officers in charge of the bank have made no public statement of what steps they intend to pursue in the future, whether the bank shall open continue its present poIn the reports come from some sections of the State of banks reopening for business and after temporarily closing making readjustments.

4. August 7, 1930 The Herald Ahoskie, NC
Article from The Herald, August 7, 1930

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Article Text

MAKING EFFORTS ORGANIZE BANK AT AHOSKIE Depositors Offered Stock in New Institution MEETINGS ARE HELD TWO DAYS THIS WEEK Plan to Organize and Liquidate the FarmersAtlantic Bank Depositors of the FarmersAtlantic Bank, which suspended business January 31, have held meetings this week to discuss the proposition of organizing another bank for the purpose of taking over and liquidating the Walter Curtis, officer in charge of the suspended bank, has directed the meetings and presented the proposition to those depositors that have shown an interest in the movement. At least two meetings have been held, one Monday night and another Tuesday afternoon. Conferences looking to solution of the present unsatisfactory bank condition have been held regularly for quite while and discussion of the methods thought be best for the bank and community has been thoroughly developed. It is the virtual decision officers in charge of the that some change looking to the ultimate relief of the present situation must be made within the next few weeks, certainly during the early fall moonths. The tentative plan calls for the subscription of stock in new bank, name to be decided upon, amount equal to one-third an that on deposit in the FarmersAtlantic Bank; that is, each depositor in the old bank subscribe of his money now on deposit as stock to institution, the subscription for stock to be October Others not paid by depositors in the old bank are also being asked to subscribe stock to banking institution. Some have signed the subscription blanks but the great majority of depositors who have attended the meetings have asked for few days time to consider the proposition. The Tuesday afternoon meeting was adjourned to day certain allow time for depositors to talk the matter over and decide upon the course they shall pursue. There has been no general meeting of depositors or stockholders, the former being called to meet in sections according to the amounts they had on deposit when the bank closed in January. The stockholders have not been called into meeting yet, although believed that they generally will be presented with proposition similar to the depositors if the latter show any signs of accepting the new plan and organiz- old bank to the ing new operate to liquidate it. one, or Signs of restlessness over the situation as now exists have been unmistakable during recent (Continued on Page

5. November 13, 1930 The Herald Ahoskie, NC
Article from The Herald, November 13, 1930

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Article Text

Bondsmen Have Meetings In The Past Week Decided Opinion That Were Better to Settle With Court Suit SECURE EXTENSION OF TIME FOR ANSWERING Legal Opinion Is That Check for $1,000 Should Have Cleared Bank conferences have been held within the past week by bondsmen of Hoggard, Ahoskie township collector, with the idea of making a settlement with the county commissioners, who have, through their attorney, Thad A. Eure, of Winton, instituted suit against the bondsmen for approximately $3700, it being the amount of money in the Farmers-Atlantic Bank to the credit of Mr. Hoggard when the bank suspended business in Januand for which settleary, ment has not been made to the county for 1929 taxes covered by bond on which the county is suing. At conference last Thursday night, bondsmen present numberall but four or five were majority opinion that settlement should be made by each bondsman, though discussion had of letting the courts decide whether the bondsmen were liable for slightly more than $1,000 the amount, which was forwarded Winton seven days before bank closed and which check had cleared when the bank closed. Legal opinion had been sought on the point, and the opinion given that legal diligence had not been employed in realizing on the check before the bank closed. Thursday's meeting adjourned until Tuesday night, when the cussion was resumed. Attorney Carlton Cherry, representing Mr. Hoggard, had, in the meantime, secured 15-day extension time in which to file answer county's suit. The concensus opinion was that, although strong belief that the mailed days before the bank closed should not be lost by bondsmen, it were better to effect settlement without litigation possible and avoid the wrangle that would ensue. Having gained an extension time for filing answer, the now have until December and in the meantime, the commissioners will have another regular Monday in Decemthe matter may straightened out by payment obligation. Besides Mr. Hoggard, there two other tax collectors in the county who have not yet been to furnish bond for collecof 1930 taxes and who the new tax books. They are the Winton and Maneys Neck township collectors. Taxpayers settling with Northcott, to the board, until the two make bond and are the new books. D. Curtis collecting taxes in Ahoskie township.