The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
F.R. DISTRICT___ 5
BANKS CLOSED fiURING ItABCH I t
. , tlK. -X A SPECIAL HOLIDAY IECL*. J) BY
xVIL AyrHORITIES
^ 7 0.3 ( s . /
Name and location of ’bank
Date
bank
closed
All banks closed - President’s
proclamation - 3-5-33
Date bank
resumed
operations
Duration of holidav
Number of
From
days
To
Reproduced from the Unclassified I Declassified Holdings of the National Archives
"
BANKS WHICH DURING
MARCH
R. ’'TSTRICT
5________
1933, WITHOUT ACTUALLY CLOSING, OBTAINED DEPOSITORS* WAIVER
AGREEMENTS, OR WHICH RESTRICTED DEPOSIT WITHDRAWALS
Name and location of "bank
Obtained
depositors*
waiver
agreements
Effective
date
U-7A
2/C
Demand
Time deposit
deposit
withdrawals *
withdrawals
restricted
restricted
beyond terms
*
by-laws*
Period during
which effective
Limit on withdrawals placed by
Commissioner of Banking on all
banks in West Virginia as of
3/2/33.
* Either with or without signed agreements of depositors.
(B-868)
I
Reproduced from the Unclassified I Declassified Holdings of the National Archives
P.
DISTRICT
5
BANKS WHICH DURING February 1933, WITHOUT ACTUALLY CLOSING, OBTAINED DEPOSITORS* WAIVER
AGREEMENTS, OR WHICH RESTRICTED DEPOSIT WITHDRAWALS
-
Name and location of bank
Obtained
depositors'
waiver
agreements
Effective
date
Demand
Time deposit
deposit
withdrawals
restricted
withdrawals
restricted
beyond terms
*
of bv-laws*
Period during
which effective
N ONE
♦Either with or without signed agreements of depositors.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
P. ", DISTRICT
D
BANKS CLOSED DURING February 1933, UNDER A SPECIAL HOLIDAY DECLARED BY CIVIL AUTHORITIES
Name and location of bank
Date
bank
closed
Date bank
resumed
operations
1
Duration of holiday
1 1 Number of
From
| days
To
y-ih *7*A/. C1
All banks in State of Maryland
2/25/33
* "On February 24, the Governor of Maryland issued a proclamation declaring
Saturday, February 25, a legal holiday, and issued a similar proclamation
for each succeeding business day during the remainder of the month. ■
Reproduced from the Unclassified / Declassified Holdings of the National Archives
F.
JANUARY,
D* .RICT_____ 5
'
BANKS WHICH DURING/1933, WITHOUT ACTUALLY CLOSING, OBTAINED DEPOSITORS* WAIVER
AGREEMENTS, OR WHICH RESTRICTED DEPOSIT WITHDRAWALS
IIAME AND LOCATION OF BANK
Obtained
depositors*
waiver
agreements
Effective
date
Demand
Time deposit
deposit
withdrawals
withdrawals restricted
restricted "beyond terms
*
of bv-laws*
Period during
which effective
N O N E
♦Either flth or without signed agreements of depositors.
{&/
Reproduced from the Unclassified I Declassified Holdings of the National Archives
F e d e r a l R e s e r v e Ba n k
of
Ric h m o n d
November 9, 1952
v
Jf
H I 0,* D
ih'
I Mr. E. L. Sinead, Chief
Division of Bank Operations
Federal Reserve Board
Washington, D. C.
Dear Mr. Smead;
Mr. Hoxton has requested me to make reply to your tele
gram of the 3rd (Trans* 1524).
There are a great many non-member State banks in the
Carolina^ which have at some time during the year operated on the socalled moratorium basis. We do not however, have definite information
concerning these cases* They come to our attention from time to time
through the newspapers. No file or record has been kept of such cases.
We have made a careful study of the member banks in this
district which appear to come within the scope of your telegram referred
to above, and I give you herewith all of the available information con
cerning each case.
First National Bank.
Burlington. N. C.
Suspended Dec. 16
,
195^
The National Bank of Burlington was organized to
take over the business of the First National Bank of Burlington and
opened for business on May 13, 1932.
On May 2nd the National Bank
Examiner said that the plan was to organize a new bank with a capital
and surplus of $150,000, which bank was to assume 70% of the liability
to assenting creditors, and to purchase from the suspended bank assets
equivalent to the liabilities assumed.
Under date of April 9, 1952 the Receiver of the
First National Bank of Burlington made a tentative balance sheet show
ing the deposits to be assumed by the new bank to be paid as follows:
10$
10$
10$
20$
20$
cash on date of opening
six months from date of opening
twelve months from date of opening
eighteen months from date of opening
twenty-four months from date of opening
Making 70$ in all. The balance, or 50$ of the astting deposits was to be trusteed for the benefit of the depositors,
deferred payments to bear interest at 3$ per annum.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Mr. Smeaa #2
Elkins National Bank, Elkins, N. C. Suspended Jan. 20, 1952
We have no definite proof at hand but the manager of our Transit
Department seems to have it clear in his mind that for two or three days
prior to the suspension of this bank payments to depositors were very
much restricted.
First National Bank of Henderson, N . C.
^
S
Suspended Jan. 2, 1932
This bank was succeeded fcy the First National Bank in Henderson,
which bank opened for business October 4, 1932 • National Bank Examiner1s
report on July 19, 1932 referred to a re-orgination plan of the old First
National Bank, under which plan the depositors were to waive 3,0$ of their
deposits and the balance to be assuned as follows:
10$ on date of re-opening
20$ payable Nov. 1, 1933
20$ payable Nov. 1, 1934
20$ payable Nov. 1, 1935
All of the deferred payments to bear interest at 3$ per annum
Commercial National Bank,
High Point. N. G . Suspended Jan. 18, 1932
For some time prior to the suspension of this bank payment upon
checks sent to it by the Federal Reserve Bank was refused and tickets attached to the returned checks. During this time they used two different
tickets and on January 7 the bank sent a letter to its depositors which
explained the peculiar situation which existed and stated that it had
frozen its deposits, but that all deposits made on, and after January 7th
would be subject to check in full as only old deposits were frozen.
,¥1
For your information I enclose herewith a copy of the letter re
ferred to and a copy of «-$ie tickets which were used Iy the bank when return
ing checks unpaid. It is our understanding that withdrawals of savings deposits
were restricted on January 2, and that about January 4 all deposits were re
stricted on a percentage basis.
Ticket No. 1 was used until about January 7, then ticket No. 2 was
used by the bank when returning checks. We did not undertake to decide which
checks the bank would pay from day to day, so we made it a rule to send all
chedcs we received drawn on the Commercial National Bank direct to that bank
and received payment for such checks as they paid and returned others to the
endorsers.First National Bank,
Wilson, N. C.-
Suspended Dec. 30, 1951.
In a letter from the President of the closed bank we were furnish
ed with a copy of an agreement which the depositors were asked to sign. This
agreement provided that the depositors should waive their claims to 25$ of their
depositjs and that the balance be assumed ty the new bank payable as follows:
Reproduced from the Unclassified / Declassified Holdings of the National Archives
Mr. Suead #3
10$ cash upon re-opening
15%
5$
20$
10$
15$
payable
payable
payable
payable
payable
in
in
in
in
in
six months
12 months
18 months
24 months
36 months
All deferred payments to bear interest at 3$ per annum.
The National Bank of Wilson,which succeeded the First National
Bank,opened for business July 15, 1932 and we have no reason to suppose
that the agreement with the depositors of the First National Bank was
later changed from the terms cited above.
First National Bank, Luray, Va.
Suspended Oct. 6 , 1931
According to the information obtained from the examiner’s report
the shareholders surrendered their old stock and made a voluntary contribu
tion of $20,000. The capital was increased to $50,000 and the depositors
accepted certificates for 80$ of their balances and were given participating
certificates in the doubtful assets for the other 20$. This bank was re
stored to solvency and reopened February 25, 1932.
First National Bank. Parkersburg, West Virginia, Suspended
Nov. 3, 1931
This bank had capital, surplus and undevided profits of $1,500,000.
All I know of the terras on which the Peoples National Bank of Parkersburg
succeeded the First National Bank is that taken from an appraisal report ty
the National Bank Examiner as of March 31, 1932. Tijis plan proposed that the
new bank would assume the deposits of the old bank on the following terms:
15$ payable Dec. 15, 1932
15$
n
June 15, 1933
15$
"
Dec. 15, 1933
15$
n
June 15, 1934
15$
"
Dec. 15, 1934
15$
«
June 15, 1935
10$
»
Dec..15, 1935
The Peoples National Bank opened for business on July 5, 1932 and
we suppose assumed the deposit liabilities of the First National Bank on the
terms set forth in the appraisal referred to above. The examiner did not say
whether these deferred payments would bear interest.
Eirst National Bank, Philippi, West Va.
The National Bank examiner in his report of examination of this
bank as at the close of business October 26, 1932 made the following cpmmcnts:
nDepositors Agreement^
•i
In consideration that other depositors of the First National Bank
of Phiilippi, West Virginia, whose deposits represented either by savings accounts
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Mr. Sinead #4
or by certificates of deposit, aggregate 90 percent of the money on
time deposits with said bank at the close of business October 22, 1931,
will leave their money on deposit with said bank for a period of two
years from date, I a depositor, agree to do the same, and the said
bank agrees to pay me interest on the same in cash when due and to ad
vance or loan to me, on said time deposits, sufficient funds to pay the
taxes on my property when due.
This the 22nd day of October 1951.”
,f (Above applies only to savings accounts)^
The First National Bank did not suspend operations but as will
be noted above, is operating under an agreement with its depositors. The
date of the agreement referred to is the date on which the Citizens Nat
ional Bank of Philippi suspended operations.
First National Bank,
Richwood, West Va.
Suspended Oct. 2, 1931
Succeeded by the Cherry River National Bank which opened for
business July 16, 1932. I have no information as to any agreement enter
ed into between the new bank and the depositors in the old bank.
First National Bank. Ripley. Y/est Va, Suspended Nov. 5, 1931
Restored to solvency and reopened on April 19, 1932. Nothing
is known as to how the bank was restored to solvency and we do not know
whether deposits were frozen.
National Exchange Bank. Weston. West Va.
Suspended Oct. 3, 1931
This bank was succeeded by the Weston National
opened for business on Sept. 15, 1932. The National Bank
his report of September 1, 1932 referred to the fact that
reorganization provided for the assumption of deposits by
as follows:
Bank which
Examiner in
the plan of
the new bank
Depositors to waive 50% of their balances, the remaining 70%
to be payable as follows:
10%
10$
20%
25%
35$
in cash at reopening
December 1, 1932
December 1, 1933
December 1, 1934
December 1 , 1935
This is all of the information on the subject referred to in
your telegram which is available in the bank and in accordance with my
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Mr. Sinead #5
telephone conversation with you concerning this matter, we have not made
any outside investigation of cases other than the ones reported above and
have not made inquiiy of the banks listed above to verify the terms of
agreement which I have set forth as being the only information which we
have in each case.
If I can be of any further assistance to you in this matter
please let me know.
Very truly yours
Reproduced from the Unclassified I Declassified Holdings of the National Archives
T h e C o m m e r c ia l N a t io n a l B a n k
H igh P o in t ,
N. C.
iLfj
January 7, 1932.
TO THE DEPOSITORS OF THE COMMERCIAL NATIONAL BANK:
Due to the recent bank failures in this vicinity and elsewhere, there
exists considerable unrest among the people, and many are endeavoring to
withdraw their deposits from perfectly solvent banks, thereby jeopardizing
the interests of their loyal depositors and friends.
The Commercial National Bank of High Point, N. C., is SOLVENT and open
for business, but the only way it can remain so, under present conditions, is
to limit all withdrawals of deposits now in the bank.
Our depositors have manifested great confidence in the stability of
The Commercial National Bank, as evidenced by the fact that they have not
unduly withdrawn their deposits, and we appeal to their future confidence to
stand by us as they have in the past.
This bank will not permit the deposits of its customers and friends to
be unduly jeopardized by the withdrawals of those who are actuated by fear.
All depositors shall share alike.
This bank will continue to do business and assist in preserving the
property of our people. Your money is safer with us for one hundred cents on
the dollar than it would be in the hands of strangers on a forced liquidation.
After careful deliberation and consultation with leading bankers, we
are not permitting withdrawal of deposits in this Bank until conditions have
righted themselves, and therefore, have adopted the following plan:
The deposits in this bank are frozen until further notice, but both
savings accounts and Certificates of Deposit will earn interest as usual.
All deposits made on and after this date will be subject to check or
withdrawal in the usual way both as to checking and savings accounts. We,
therefore, invite a continuance of the support of our present depositors,
and any new ones who wish to do business with us.
The economic conditions under which we have lived during the past few
months are unprecedented and worldwide, therefore, we feel that this step
is justifiable, in that the conveniences of the individual depositor may well
be counted as of less importance than the good of an entire community.
We earnestly request the cooperation of every depositor to the end that
no one will suffer any loss. The success or failure of this plan is largely in
your hands. The plan has been adopted by many banks in the United States, and
they are successfully functioning under it.
BEAR IN MIND THAT ALL DEPOSITS MADE IN THIS BANK ON AND AFTER THIS
DATE WILL BE SUBJECT TO CHffCK IN FULL AS HERETOFORE, AS IT IS ONLY THE
OLD DEPOStTS WHICH ARE TEMPORARILY FROZEN.
By order of the Board of Directors
The Commercial National Bank of
High Po i n t , N. C.
By
J. ELWOOD COX, President.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
^
Temporarily we have decided to exercise our right
and require checks for payment to be presented at
our counter by the holder.
W e are restri&ing payment to specified percentages
of the depositors’ account.
T H E CO MME RC IAL N A T IO N A L BANK
H I G H P O I N T , N . C.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
m
0
. 3
(
5
All deposits in this Bank made prior to January 7, 1932, are frozen until further
notice, and no checks are being paid against same.
THE COMMERCIAL NATIONAL BANK,
High Point, N. C.
in
Reproduced from the Unclassified I Declassified Holdings of the National Archives
1
'^ p (k*o
""T"
C T j
/
At jn S\
r
3 ^ 3
P^-C,i r 6
(P(TJ~
i
/ . m
n
# C?
^ 0~UsuC$^
/
*%/ fn i± *
r ^
/,
o o o
;
Reproduced from the Unclassified I Declassified Holdings of the National Archives
<r. 3 kA
c/
BANKS WHICH DURING 1932, WITHOUT ACTUALLY CLOSING, OBTAINED DEPOSITORS’ WAIVER
AGREEMENTS, OR WHICH RESTRICTED DEPOSIT WITHDRAWALS
~
¥ 70. 3 ^
Name and location of bank
Time deposit
Ob tained
Demand
withdrawals
depositors * deposit
waiver
withdrawals restricted
agreements restricted beyond terms
*
of by-laws*
Period during
Effective
which effective
date
NONE
♦Either wi|;h or without signed agreements of depositors.
(B-S08 )
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DISTRICT NO. 5 - RICHMDMD
BAMS CLOSED DURING 1932 UNDER A SPECIAL HOLIDAY DECLARED BY CIVIL AUTHORITIES
Name and location of bank
Date
bank
closed
NONE
Duration of holiday
Date bank
resumed
Number T' prom i To
operations j of days
@FedFRASER