City Bank (Fountain City, TN)

Episode Information

Episode UID
87071971597
Episode Type
Suspension → Reopening
Bank Type
state
Bank ID
8707197 routing
Routing Number
87-0719
Start Date
January 20, 1933
Location
Fountain City, Tennessee (36.032, -83.937)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
188e842bf87a41fe

Response Measures

None

Description

Closed by directors to avoid 'hysteria'; active reorganization efforts planned to reopen.

Events (2)
1. January 20, 1933 Suspension
Cause
Rumor Or Misinformation
Cause Details
Directors ordered temporary closure to avoid hysteria and a possible run despite the bank being solvent.
Newspaper Excerpt
The City bank of Fountain City, a suburb of Knoxville, was closed today by order of the directors, but Richard Hale, cashier, said the bank would reopen within a few days.
Source
newspapers
2. January 25, 1933 Other
Newspaper Excerpt
The City Bank of Fountain City ... will either be reorganized or placed in the hands of receiver; plan provides for sale of all controlling interest and restrictions on withdrawals to keep deposits in the bank.
Source
newspapers

Newspaper Articles (7)
1. January 20, 1933 The Chattanooga News Chattanooga, TN

Article Text

KNOXVILLE BANK CLOSED THURSDAY East Tennessee National in Hands of Comptroller. Knoxville, Jan. 20.—(Special.)—Some surprise has been expressed here over the decision Thursday night of the directors of the East Tennessee National bank not to open for business Friday morning, for it is currently reported that the Reconstruction Finance corporation had brought to Knoxville and had offered to the East Tennessee National an additional $2,000,000 of cash, and that the East Tennessee had declined to accept it. According to the report, the R. F. C. had indicated its willingness to loan this additional $2,000,000 cash without any increase in the collateral pledged with it by the East Tennessee National. Inasmuch as the East Tennessee had in its vaults at the time of closing approximately $1,000,000 of cash on hand and due from banks, the added Reconstruction cash would have given it a total of $3,000,000 cash, or a cash reserve of a third of its outstanding deposits of $9,000,000. When this report became current, Knoxville observers concluded that the closing of the bank probably was more the result of the bankers' disappointment over the slow drainage of deposits as it was over any immediate condition of its banking situation, or inability to maintain a liquid position to meet current withdrawal demands. A second financing operation is reported under way in Knoxville for the Reconstruction Finance is reported about to advance the Fidelity Trust company $4,000,000 cash on real estate mortgages. According to the report, when the loan is completed, the Fidelity will pay its participating certificates holders 50 per cent of the face of their certificates in cash, and will issue new certificates for the full amount of the remainder. If this operation is consummated, it will release to participation certificate holders $4,000,000 in cash, which would very materially cushion the effect of the East Tennessee closing its doors. Officials at Knoxville's Hamilton National bank were kept busy throughout the banking hours opening new accounts for depositors. There has been comparatively little excitement in Knoxville financial circles. The City bank of Fountain City, a suburb of Knoxville, was closed today by order of the directors, but Richard Hale, cashier, said the bank would reopen within a few days. "We believe it best for the interest of depositors to close the bank for a short time," he said. The bank has deposits of $86,000. Sevierville Bank Closes. Sevierville, Jan. 20.—(A. P.—The Bank of Sevierville, capitalized at $50,000 and having deposits of $167,222.71, closed today for fifteen days.

2. January 20, 1933 The Knoxville News-Sentinel Knoxville, TN

Article Text

FOUNTAIN CITY CLOSED BANK Directors Fear Hysteria; Say Institution is Solvent and Will Be Re-Opened. City Bank of Fountain City was order of its board closed today by of directors. would for believed interests of our deposthe best itors to close the bank and avoid any hysteria," said Cashier Rich"Our bank is not conard Hale. with the East National. We had no Tennessee funds there. liquid than bank is more since its organization, any time bank superintenand the state night we had no dent told last said Mr. Hale. for alarm,' cause The directors nanted commitof Mr. Hale, Astee composed and Dr. Carl bury Wright to work out all future policy for the bank. will know within day or shall said when re-open, two Mr. Hale. depositors have large the wise thing that was to agreed do. and we have heard complaints. of the board was taken Action Mr. Hale yesterday, said. Wednesday this Deposits on over he totaled in hand and due while cash from banks liabilities exceeded tal assets and

3. January 25, 1933 The Knoxville News-Sentinel Knoxville, TN

Article Text

HOPE TO OPEN BANK AGAIN Directors Reveal Plan To Sell Stock, Restrict Withdrawals of Funds. The City Bank of Fountain City, which closed temporarily last Friday, will either be reorganized or placed in the hands of receiver, Dr. Carl R. Martin, acting presisaid today. The plan for reorganization provides for the sale of all controlling interest of the bank's 1250 shares. These shares had par value of $20 and book value, at the time the bank closed, of $23.10. They will be offered $15 and the stockholders agreed to give $5 per share to the bank' funds, thus taking $10 share for their stock At the same time will be to obtain an from depositors to permit their funds to remain in the bank. to be drawn out at the rate of certain per cent month This plan was worked out yes. terday at meeting of the board of directors. "We shall make immediate attempts to carry it Dr. Martin said. "If it fails, the bank will be placed in the hands of a receiver.

4. January 27, 1933 The Knoxville Journal Knoxville, TN

Article Text

STATE DEMANDS DEATH AS PENALTY FOR WARD; 'RUN' REVERSED Maynardville Bank Gains After Reopening. Jan. Maynardville State bank, which suspended last was reopen today and immediately deposi tors rusbed the deposit more $6,000 posited cording to Beeler, dent bank suspended to avoid any might follow the closing of the East tional and will remain open said Beeler have ample meet every demand expect continue did in past bank has capital stock $15,000, of plus and deposits $40,633. and solid these figures Beeler said further. This the first of four "suspend banks City Bank Fountain City, Citizens Bank Trust Rutledge, and Bank Sevierville are the others, and officers of all three have voiced tentions of reopening within 15 days.

5. January 27, 1933 The Knoxville News-Sentinel Knoxville, TN

Article Text

CALL MEETING FOR BANK Depositors Will Be Asked to Buy Stock, Raise $6000 Saturday Night. meeting called today of depositors and stockholders of the City Bank of Fountain City for m. tomorrow at the Central Baptist Church. at which efforts will be made to effect organization of the bank that can The plan, Dr. Carl M. Martin, acting said, calls for the of enough stock to raise $6000 cash The bank stock, which had par value of will be sold for half that amount. Depositors will be asked to buy the stock, Dr. Martin said The bank had on deposit when closed It had sets of which in loans, and $21,000 in cash the re-organization plan approved and the money raised, the bank will open in week or ten days, Dr. Martin said. state bank and does not carry double liability for stock. holders, John W Green will and speak He not connected the bank but interested in it citizen of Fountain The meeting will decide wheththe bank is to be re-opened or placed in receivership.

6. February 4, 1933 The Knoxville News-Sentinel Knoxville, TN

Article Text

Will Know Tonight About F. C. Reopening "We'll know by tonight if the City Bank of Fountain City will reopen be liquidated by receiver, Andy Lowe, member of the seeking to reopen the said today. and o'clock tonight one or more representatives of state banking department will come out here and go over the cards of depositors who have signed for reopening the bank. enough of them have signed up by that time to raise the $9000 needed and to insure against run on the bank if does reopen, all right. we've done our best, and if the people don't the bank reopened that's up them to say.

7. February 7, 1933 The Knoxville News-Sentinel Knoxville, TN

Article Text

BANK'S FATE UNCERTAIN Reorganization Committee Can't Be Sure Plan Will Go Over still working on the proposition and cannot yet give assurance that the bank will chairman of committee seeking to re-open the City Bank of Fountain City, today. The committee has worked for more than week trying sign sufficient number depositors take stock the bank and not withdraw their deposits faster per cent month representative of the state banking department said today, "there some holdouts and unless they sign up, the bank will not re-open. We them two or more try obtain the Failing. liquidation of the bank will proceed.