Bank of New Market (New Market, TN)

Episode Information

Episode UID
87043971557
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
8704397 routing
Routing Number
87-0439
Start Date
September 20, 1929
Location
New Market, Tennessee (36.104, -83.553)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
c37e717a68ad9b78

Response Measures

None

Events (2)
1. September 20, 1929 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Prior loan losses from failed farmers and insufficient cash to meet heavy demands prompted suspension and request that state take charge
Newspaper Excerpt
the Bank of New Market, Jefferson county, a state institution ... failed to open for business this morning ... the bank had suspended payment
Source
newspapers
2. October 16, 1929 Receivership
Newspaper Excerpt
Arthur Holtsinger ... was named today as liquidating agent of the Bank of New Market, which failed to open for business ten days ago.
Source
newspapers

Newspaper Articles (3)
1. October 1, 1929 The Knoxville Journal Knoxville, TN
Article from The Knoxville Journal, October 1, 1929

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Article Text

NEW MARKET BANK CLOSES State To Take Charge, But Reopening Is Hoped. NEW MARKET, Tenn., Sept. 20. (Spl). order to protect depositors, the Bank of New Market, Jefferson county, a state institution capitalized at $25,000, failed to open for business this morning, and a request was sent to the state banking department to take charge. Directors and officers believe the bank will be able to resume business in the near future, or in the event that liquidation should be decided on, that depositors will receive their money in full. It was stated that the bank had $88,000 in loans, with about $80,000 in deposits. In addition to this margin of about $8,000. the stock holders are liable for the amount of their holdings, and bond of $15,000 also is posted with the state banking department, signed by six of the directors. With these resources at hand, the officers and directors believe the temporary crisis can bet met satisfactorily and business resumed. A message was sent this morning by Cashier E. A. McSpaden to Mr. Grigsby, of the state banking department at Nashville ask ing that an examiner be sent at once, as the bank had suspended payment. is expected that an examiner will reach here tomorrow. The bank was organized in 1908, the President. being S. M. Vance. While no statement was given out as to the cause of the closing, it is understood that the bank suffered losses several years ago when a few farmers supposed to be wealthy failed. Since then the bank has been struggling to recoup the losses, but in view of rather heavy demands for cash expected within the next few days, it decided to close doors and ask that the state take charge

2. October 17, 1929 The Knoxville Journal Knoxville, TN
Article from The Knoxville Journal, October 17, 1929

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Article Text

New Market Citizens May Raise New Capital. JEFFERSON CITY, Tenn., Oct. 16 (Spl.)—Arthur Holtsinger, clerk and master of the chancery court at Dandridge, was named today as liquidating agent of the Bank of New Market, which failed to open for business ten days ago. Mr. Holtsinger was appointed by H. L. Griggsby, superintendent of banks, who came to New Market today to make final arrangements for winding up the affairs of the bank. E. F. Smith, of Morristown, was named as attorney for the liquidation of the bank. Although steps are being taken by Superintendent Griggsby to liquidate the bank, this will not halt efforts of a number of New Market citizens to raise capital to start another bank to take the place of the Bank of New Market. Committees are seeking to raise $15,000 and Superintendent Griggsby has told these citizens that should the capital be raised he will authorize the liquidating agent to turn over the affairs of the Bank of New Market to the newly organized bank for liquidation. This promise has inspired the business men to greater effort and already a larger part of this capital has been pledged with many more business men and farmers to be seen.

3. October 17, 1929 The Knoxville Journal Knoxville, TN
Article from The Knoxville Journal, October 17, 1929

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Article Text

JEFFERSON CITY, Tenn., Oct. 16 (Spl.)—Arthur Holtsinger, clerk and master of the chancery court at Dandridge, was named today as liquidating agent of the Bank of New Market, which failed to open for business ten days ago. Mr. Holtsinger was appointed by H. L. Griggsby, superintendent of banks, who came to New Market today to make final arrangements for winding up the affairs of the bank. E. F. Smith, of Morristown, was named as attorney for the liquidation of the bank. Although steps are being taken by Superintendent Griggsby to liquidate the bank, this will not halt efforts of a number of New Market citizens to raise capital to start another bank to take the place of the Bank of New Market. Committees are seeking to raise $15,000 and Superintendent Griggsby has told these citizens that should the capital be raised he will authorize the liquidating agent to turn over the affairs of the Bank of New Market to the newly organized bank for liquidation. This promise has inspired the business men to greater effort and already a larger part of this capital has been pledged with many more business men and farmers to be seen.