Run on Bank

Chattanooga
Depression Scrip

Chattanooga
Money
Overview 1893 Scrip 1907 Scrip 1933 Background St. Elmo B & T Hamilton NB
American Trust Back of Bk Scrip Hill's Grocery Events Time Line List of Scrip Bibliography

Chattanooga National Bank

First National reorganized as Chattanooga National
In December of 1932 the 1st National Bank of Chattanooga deposits decreased and withdrawals accelerated sharply. On December 31, 1932, the bank directors spun off the highly depreciated real estate holding as a separate company and changed the bank to the Chattanooga National Bank. Headlines on the name of the front page of the Chattanooga Times newspaper on New Years Day proclaimed "NEW CHATTANOOGA BANK WITH CAPITAL OF $3,000,000 OPENS TUESDAY MORNING". W. E. Brock took over as President of the newly formed bank. The newly formed bank took over the strictly banking functions of the 1st National Bank. A large half page advertisement on page 3 of the Chattanooga Times listed the new officers, assets and liabilities and proclaimed the new bank had $2,500,000 of new money and cash paid in. It also indicated a million and a quarter dollar reserve had been set up to secure the new bank against any losses from assets taken over from the 1st National Bank. It also indicated the 1st National Bank building was written down from $1,500,000 to $1,000,000 in line with current real estate values. An advertisement in January 2nd paper proclaimed a success of the new bank "TODAY $102,057.54 will be credited to the accounts of our Happy Throng of Savings Depositors".

Chattanooga National Scrip
The governor of Tennessee declared a volunteer "banking holiday" on March 1, 1933. American Bank and Trust, Chattanooga National and Hamilton National remain open for business but did not accept checks from banks that were closed. After a day of heavy withdrawals Chattanooga National decided to observe the "banking holiday". It remained closed during the national "banking holiday".

Chattanooga National Bank ordered $250,000 in depression scrip; $50,000 in $1 scrip, $100,000 in $5 scrip and $100,000 in $10 scrip from Brandon Printing Company on Wednesday March 8, 1933 and stared issuing it on Friday March 10th.

Chatt NB $1 script

The Chattanooga Times reported Friday March 10th, that "The scrip will issued individually (today) by the Chattanooga National Bank...and will be in denominations of $1, $5 and $10." The National Bank Depression scrip reverse for each denomination is identical for all banks. "The Standard Catalog of Depression Scrip in the 1930s Including Canada & Mexico" does not list any scrip from Chattanooga National but this Crisp Uncirculated (CU) $1 note, Two Fine (F) and a two Very Fine (VF) $1 notes are known as of 2/17/2015. None of the five notes are canceled. The scrip is signed by W. H. DeWitt, cashier.

Chattanooga National Closes
Tuesday, March 14th the Chattanooga Times reported the Chattanooga National will open today. "The authorization for the Chattanooga and Hamilton to reopen was sent by telegraph from Gov. E. R. Black of the Atlanta Federal Reserve Bank." However the Times reported Wednesday, "The Chattanooga National was closed yesterday morning with a public announcement that the license to reopen had been withdrawn by the federal reserve.." Chattanooga National was put in receivership. The newspaper reported on March 18 that the bank was open on a limited basis and would redeem the Chattanooga NB scrip. Eventually it paid 108% of claims of 1st National and 88% of claims of the Chattanooga National.


Chattanooga
Money
Overview 1893 Scrip 1907 Scrip 1933 Background St. Elmo B & T Hamilton NB
American Trust Back of Bk Scrip Hill's Grocery Events Time Line List of Scrip Bibliography

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