How the Haynes Bank in Caroleen Stayed Solvent

A number of years later (in the early 1950s) I learned from the postmaster at Caroleen exactly how the Haynes Bank in Caroleen survived the stock market crash, run on banks, and bank failures in the 1930s. It seems that when the people in Caroleen learned that the stock market had collapsed and that banks were failing, they began to line up to draw their money out of the Haynes Bank - apparently to put it in a “safer place.” For the people of Caroleen such a safer place was the United States government, so they would take the money out of the bank, carry the money across the street, and put the money into US Savings Bonds. The banker and the postmaster worked out a “deal.” As the people in the lines asked for their money, the banker would give all their money to them. When they took the money into the post office and bought bonds, the postmaster would take the money out the back door and across the street back into the bank. There wasn’t much money in the town, but it circulated rapidly for about 2 or 3 days. The folks waiting in line finally realized that if they really wanted their money from the bank, the bank could and would give it to them. They then decided there was no use in wasting a day waiting in line if the bank was secure enough to have the money and give it to them. With confidence restored, the run on the bank ceased, and the Haynes Bank was a very safe place for your money - according to my grandmother. —Leon Neal