Bank of Ray City, GA through Optimism and Depression

The Citizens Bank of Ray City was among the first businesses to advertise in the town’s newspaper, The Ray City News, when it began circulation in 1929.

The Citizens Bank, Ray City, GA – 1929 newspaper advertisement from the Ray City News

In a newspaper clipping from the Jan 3, 1929 issue of the Ray City News the stockholders of the Citizens Bank of Ray City were pleased with the financial reports.

In a newspaper clipping from the Jan 3, 1929 issue of the Ray City News the stockholders of the Citizens Bank of Ray City were pleased with the financial reports.

Ray City News
Ray City, GA
January 3, 1929

 Bank Stockholders Hold Annual Meet

    The stockholders of the Citizens Bank of Ray City held their annual meeting on December 18th – illegible text –
    Examination of the – illegible text – well pleased at the report.
    The same officers and directors were elected for the new year.

In 1929, the Citizens Bank of Ray City, was optimistically advertising for new depositors.

When the stock market crashed, the bank managed to remain in business.  In fact, in July of 1930, the Atlanta Constitution reported that the banks of Berrien County, including the Ray City bank were financially sound.  But by the end of December 1930 the Citizens Bank of Ray City had failed.

 MORE BANKS CLOSED IN SOUTHERN STATES
New York Times.  Dec 21, 1930.

ATLANTA, Ga., Dec. 20 (AP) – A. B. Mobley, State Superintendent of Banks, announced today his department had been asked to take over the affairs of the Union Banking Company of Douglas, operating branches at Braxton and Nichols, the Toombs County Bank at Lyons and the Citizens Bank of Ray City. Cause of the closings was not stated.

“After that bank failed other banks were opened but they all  suffered from the nation’s economic troubles and none were successful. Until, in 1949, H.P. Clements opened a private bank and named it the Bank of Ray City.  It was a state chartered bank operated by Mr. Clements and his son-in-law,  Lawson Fountain. In later years Mr. Clements was forced to retire due to ill health. ”

Bank of Ray City

Bank of Ray City

The Bank of Ray City in 1972. In 1973 the bank was acquired by the Citizens Bank of Nashville. Georgia, and is now the Ray City office of that bank. The old bank building pictured above has since been demolished.

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Bank of Ray’s Mill

The Bank of Ray’s Mill and the Bank of Milltown

In 1905, local investors including some with Ray’s Mill connections formed the Bank of Milltown.  The bank was  chartered March 14, 1905 and the bank opened for business March 21, 1906.

GOSSIP AT THE CAPITOL
Atlanta Constitution. Feb 7, 1905 pg. 7

 Application was filed with Secretary of State Philip Cook yesterday for a charter for the Bank of Milltown, at Milltown, in Berrien county. The capital stock of the new bank is to be $25,000 and the incorporators are J.V. Talley, W.L. Patton, P.T. Knight and L.J. Clements, Jr.

The Bank of Ray’s Mill was organized around 1908 with George W. Varn as president and Lewis M. Marshall as cashier. Its directors were J.H.P. Johnson, J.H.SwindleC.O. Terry, Y.F. Carter, Harmon Gaskins, and Frank Fountain. Wallace Johnson, son of J.H.P  Johnson, began working for the bank when he was fourteen years old.  Lewis M. Marshall served as the bank’s cashier until he was succeeded in the early 1920’s by John D. Luke who held the position until the bank failed during the great depression – probably around 1931.  In 1909 the bank’s name was changed to Citizens Bank of Ray City.

The Annual report of the Treasurer and State Bank Examiner of the State of Georgia for the year ending 1910, still lists the bank as the Bank of Ray’s Mill, with a capital of $15,000 dollars.  That sum would have been about $6 million in 2007 dollars.