21448. Bank of Abingdon (Abingdon, VA)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
August 5, 1893
Location
Abingdon, Virginia (36.710, -81.977)

Metadata

Model
gpt-5-mini
Short Digest
70d59709

Response Measures

Full suspension

Other: Receivership later appointed (judge appointed temporary receiver Feb 1894). Bank appears to wind up rather than resume operations.

Description

Banks in Abingdon (Bank of Abingdon and Exchange & Deposit) suspended on Aug 5, 1893 due to inability to make collections and heavy withdrawals amid a currency shortage. Depositors' withdrawals (runs) and suspension occurred same day; later the bank did not reopen and a receiver was appointed Feb 14, 1894. Classification: run led to suspension and eventual receivership/closure.

Events (3)
1. August 5, 1893 Run
Cause
Macro News
Cause Details
Steady withdrawals by depositors and a currency shortage / inability to make collections led to heavy demands for cash.
Newspaper Excerpt
All is quiet, but steady withdrawing of deposits from both banks for several weeks, and inability to collect is the cause.
Source
newspapers
2. August 5, 1893 Suspension
Cause
Macro News
Cause Details
Board ordered temporary suspension because the bank could not make collections to meet depositors' demands (currency famine / heavy withdrawals).
Newspaper Excerpt
The business of this bank is temporarily suspended, by order of the board of directors, because of its inability to make collections so as to meet the demands of the depositors.
Source
newspapers
3. February 14, 1894 Receivership
Newspaper Excerpt
Judge John Paul ... appointed H. E. McCoy ... temporary receiver of said Bank of Abingdon, and the defendants ... were notified to answer on March 16th ... The receiver took charge of the bank's effects this morning.
Source
newspapers

Newspaper Articles (11)
1. August 6, 1893 The Times Richmond, VA
Article from The Times, August 6, 1893

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Article Text

BUSINESS TROUBLES. SEVERAL BANKS ARE COMPELLED TO CLOSE THEIR DOOES. A Number of Manufacturing Establish. ments Are Forced, by Stagnation in All Industries, to Temporarily Shut Down. EAST LIVERPOOL O., August 5.-The Pioneer Pottery Company, at Wellsville, one of the leading industrial establishments of the city, has gone to the wall, assignment having been made at a late hour yesterday. The assets will exceed $75,000, with liabilities somewhat less. About four hundred men are thrown out of employment. LAWRENCE, MASS., August 6.-The Pacific, Washington, Atlantic, Arlington and Pemberton mills have now announced shut downs for from two or four weeks, The Pacific employs 5,000 persons, and the enforced vacation means to them a loss of $75,000. LEWISTON, ME., August 5.-The Lewiston Mills shut down to-day at noon for four weeks. LOWELL, MASS., August 5.-It is announced that the Lawrence Mills will run on half time beginning Monday. Faulkner's Mills have shut down for an indefinite period. Lowell Company's ingrain department has laid 1,000 hands off for a month. WALTHAM, MASS., August 5.-The Boston Manufacturing Company will close its works to-night for two weeks. It was originally intended to run one week and shut down next for about two months, but now the company has adopted the above-mentioned plan. The agent says that he hopes that at the end of two weeks his company will resume business again with a full force and on full time. This is a great improvement over the prospect that has been in view, and the employes of the concern, numbering about 2,600, are much encouraged. CHARLOTTESVILLE, VA., August 5.Special.-The Knitting Mills of Basic City have been closed by Northern creditors, and the entire force of employes have been thrown out of employment. APINGDON, VA., August 5.-SpecialThe following notice was this morning pisted on the closed door of the Exclarge and Deposit Bank here: "The business of this bank is temporarily suspended. by order of the board of directors, because of its inability to make collections so as to meet the Remands of depositors." (Signed T. P. Trigg, president; R E. Bolling, cashier.) The Bank of Abingdon had the following notice on its closed door: "The business of this bank is temporarily suspended, by order of the board of directots, because of its inability to make collections so as to meet the demands of the depositors." It is expected that the banks will resume at an early day if matters are allowed to take their course. CHICAGO, ILL., August 5.-The ColAssociation, Fair hotel, ing umbian a World's Visitors' assigned conduct- today. Assets, $75,000; liabilities, $330,000. Vernette E. Prentice, real estate dealer, assigned to-day to C. C. Conradsen, of Madison, Wis., and Henry Carter, of Chicago. Assets, $37,000; liabilities about $50,000.

2. August 6, 1893 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, August 6, 1893

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Article Text

TWO ABINGDON BANKS CLOSED. Inability to Make Collections the CauseDepositers Will Be Paid. (Special telegram to the Dispatch.] ABINGDON, Va., August 5.-The Exchange and Deposit and the Bank of Abingdon did not open their doors this morning. The following notice was posted in front of each bank: "The business of this bank is temporarily suspended, by order of the Board of Directors, because of its inability to make collections so as to meet the demands of the depositors." Intense but subdued feeling pervades the whole people. It is thought that depositors will be paid in full, as each bank claims to have more than $150,000 in excess of its liabilities.

3. August 7, 1893 Morning Journal and Courier New Haven, CT
Article from Morning Journal and Courier, August 7, 1893

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Bank Suspensions Reported. NEW YORK, Aug. 6.-Bank suspensions are reported as follows: First National bank of White Sulphur Springs, Mont.; Central National, Greencastle, Ind.; Bank of Abingdon and Exchange and Deposit bank, Lynchburg, Va.; Exchange bank, Wheeling, W. Va; Marston, Larson and Davis, bankers at Lake Crystal, Minn.

4. August 10, 1893 The Comet Johnson City, TN
Article from The Comet, August 10, 1893

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Bank Failures at Abingdon. The Bank of Abingdon and the Exchange and Deposit bank of Abingdon, Va., suspended Saturday morning Liabilities and assets unattainable. Heavy demands on the part of depositors and poor collections the cause. It is expected that the banks will resume at an early day if matters are allowed to take their course.

5. August 15, 1893 The Progressive Farmer Raleigh, Winston-Salem, Winston, NC
Article from The Progressive Farmer, August 15, 1893

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will be taken from circulation by the loss in wages. Other mills will follow their example, and some which are nominally running have many idle looms. The shortage in currency is the immediate cause of the shut down. In many and perhaps in the majority of cases the poor state of trade is the greater cause and the one which will more potently affect the length of time the mills will be idle. Julius Keene, cabinet dealer; John B McGeorge, stock and bond broker; South Brooklyn Dock and Warehouse Company the Worthington Company Bowman & Co., and a number of other large concerns failed in New York City on the 4th. RICHMOND, Va., Aug. 5.-A Lynchburg special says: The bank of Abington and the Exchange and Deposit bank both closed down this morning. All is quiet, but steady withdrawing of deposits from both banks for several weeks, and inability to collect is the cause. Both banks are entirely solvent. The Boston Manufacturing Co., of Waltham, closed its works to night for two weeks. The agent says he hopes that at the end of the two weeks his company will resume business again with a full force and on full time. This is a great improvement over the prospect that had been in view and the employees of the concern, numbering about 2,600, are much encouraged. The Pacific, Everett, Washington, Atlantic, Arlington and Pemberton mills, of Lawrence, have now announced shutdowns for from two to four weeks. The Pacific employs 5,000 persons and the enforced vacations means a loss to them of $75,000. In addition to Bennett Mill No. 1 and Potomska Mill No. 1, one mill of the Howland corporation and-all of the Wamsutta mills will suspend operations for an indefinite time. The Wamsutta shut down this noon and the Howland will close next week. PITTSBURG, Pa, Aug. 5.-The La Belle Steel Works, one of the largest steel works in Alleghany, was closed to day in all but three departments, which will be kept in operation until present orders are finished. The reason given is scarcity of orders. All employees, 600 in number, will be paid in full on August 12. The Liggate Spring and Axle Works in Allegheny have closed down indefi nitely. Nearly all of the Cambria Iron Company mills in Jamestown shut down yesterday and fully three thousand men are idle. Four hundred of the Gautier steel workers are idle, while the balance are working onethird time. There is no intimation as to when work will resume. MATTOON, III., Aug. 5.-All of the machinists and boiler makers in the Peoria, Decatur and Evansville shops in this city quit work yesterday on account of a ten per cent reduction of their wages, Efforts are being made to enlist the trainmen in the strike, which, if successful, will result in a suspension of traffic over the road. Some time ago Superintendent Starbuck asked the engineers and conductors to submit to a reduction of wages, but the proposition was refused. It is now considered that in case the shopmen are not put back to work the trainmen will strike also. CEDAR RAPIDS, Iowa, Aug. 5.-An order has been issued from the general offices of the Burlington, Cedar Rapids and Northern road to the effect that beginning with to day the clerks will not work on Saturdays and that there will be a corresponding reduction of all salaries. The time at the shops has been cut down to eight hours each day and the men who have been doing extra work have been laid off.

6. August 24, 1893 The Times Richmond, VA
Article from The Times, August 24, 1893

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ABINGDON'S CLOSED BANKS. Confidence of the People In Their Capacity and Integrity.-A Bountiful Season. ABINGDON, va,, August 23.-The people are still very gloomy over the closing of the banks, many of them having had the savings of a lifetime deposited in them. Most of the depositors. however, have an abiding confidence in the integrity and ca. pacity of the bank officers and directors, and believe they will eventually get all their money. The Bank of Abingdon will endeavor to wind up its business and will hardly attempt to open up again, but the Exchange and Deposit Bank is making an effort to resume business, and deposi. tors representing much more than one-half its indebtedness have already signed a pa per looking to that end. As it is conceded that the bank will be able to pay its obligations dollar for dollar. parties owing will be permitted to discharge their indebtedness with any outstanding certificates against the bank that they may be able to obtain. In anticipation of this kind of a settlement much paper has already exchanged bands. The Exchange and Deposit Bank has assets in excess of liabilities of more than $150,000. The Bank of Abingdon has more than $200,000. Only the currency famine and the eagerness of depositors to get hold of their money caused the suspension of these banks, but it 18 a great misfortune, all the same. Our section has been blessed with a fair season and bountiful harvests. Only the lack of money to pay taxes and buy groceries is wanting to make us a contented people.

7. August 24, 1893 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, August 24, 1893

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ABINGDON'S CLOSED BANKS. Confidescefthe People Is Their Capacity and Integrity.-A Bountiful Season. ABINGDON, Va., August 23.-The people are still very gloomy over the closing of the banks, many of them having had the savings of a lifetime deposited in them. Most of the depositors, however, have an abiding confidence in the integrity and capacity of the bank officers and directors, and believe they will eventually get all their money. The Bank of Abingdon will endeaver to wind up its business and will hardly attempt to open up again. but the Exchange and Deposit Bank is making an effort to resume business, and depositors representing much more than one-half its indebtedness have already signed a paper looking to that end. As it is conceded that the bank will be able to pay its obligations dollar for dollar, parties owing will be permitted to discharge their indebtedness with any outstanding certificates against the bank that they may be able to obtain. In anticipation of this kind of a settlement much paper has already exchanged hands. The Exchange and Deposit Bank has assets in excess of liabilities of more than $150,000. The Bank of Abingdon has more than $200,000. Only the eurrency famine and the eagerness of depositors to get hold of their money caused the suspension of these banks, but it is a great misfortune, all thesame. Our section has been blessed with a fair season and bountiful harvests. Only the lack of money to pay taxes and buy groceries is wanting to make us a contented people.

8. September 1, 1893 Highland Recorder Monterey, VA
Article from Highland Recorder, September 1, 1893

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Abingdon's Closed Banks. The people are still very gloomy over the closing of the banks, many of them having had the savings of a lifetime deposited in them. Most of the depositors, however, have an abiding confidence in the integrity and capacity of the bank officers and directors, and believe they will eventually get all their money. The Bank of Abingdon will endeavor to wind up its business and will hardly attempt to open up again, but the Exchange and Deposit Bank is making an effort to resume business, and depositors representing much more than one-half its in-lebtedness have already signed a paper looking to that end. As it is conceded that the bank will be able to pay its obligations dollar for dollar, parties owing will be permitted to discharge their indebtedness with any outstanding certificates against the bank that they may be able to obtain. It anticipation of this kind of a settlement much paper has already exchanged hands. The Exchange and Deposit Bank has assets in excess of liabilities of more than $150,000. The Bank of Abingdon has more than $200,000. Only the currency famine and the eagerness of depositors to get hold of their money caused the suspension of these banks, but it is a great misfortune, all the same.

9. February 17, 1894 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, February 17, 1894

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JUDGE PAUL'S ACTION A SURPRISE. He Appoints n Bank Receiver When Suit Was Entered in State Court. ABINGDON, VA., February 16.-(Speclal.)-Judge John Paul on the 14th instant, at Harrisonburg, Va., on petition of J. E. and N. A. Foster, of Jefferson, N. C., and S. D. Jackson, of Tennessee, depositors in the suspended bank of Abingdon, appointed H. E. McCoy, president of the Dominion National Bank of Bristol, temporary receiver of said Bank of Abingdon, and the defendants (bank directors, bank officers, and trustees) were notified to answer on March 16th at Lynchburg and show cause, If they can, why this receivership should not be made permanent. The receiver took charge of the bank's effects this morning. This action of Judge Paul was a surprise, as the trustees of the bank have already instituted suit in the Circuit Court of Washington county, convening all the parties in Interest. and asking that the trust be executed under the direction of this court. It is thought when Judge Paul learns that the State Court has taken jurisdiction he will not interfere.

10. May 11, 1894 The Times Richmond, VA
Article from The Times, May 11, 1894

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An Important Decision, ABINGDON, VA., May 10.-Special.-In the suit of Joel Foster and others against the Bank of Abingdon and others, which failed here last August, Judge Paul, in the United States Court, yesterday delivered an opinion, dissolving the injunetion granted in the cause and discharging the receiver. The affairs of the bank by this decision is again in the hands of the trustees, and will be proceeded with in the Circuit Court of the State.

11. October 5, 1894 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, October 5, 1894

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Two Bank Questions Decided. ABINGDON VA., October 4.-(Special) The Circuit Court is now in session at this place, Judge John A. Kelly presiding. There are a number of cases pending growing out of the rediscount of paper of the Bank of Abingdon (now suspended) by bank elsewhere. Two questions of considerable interest to lawyers and the community have been decided-viz., that a bona-fide holder of usurious negotiable paper is not exempt from the plea of usury; and second, that a national bank which discounts paper already tainted with usury is amenable to the State usury laws, and that its rights are not to be determined by the act of Congress with regard to usury by national banks.