Bank of Yanceyville: Overly Optimistic 1909 Construction Plans

Bank of Yanceyville: Overly Optimistic Construction Plans

While the lot was purchased September 1909 and a request for construction bids issued October 1909, the bank building was not completed until 1923. Query what happened. See US financial conditions summary below.

"The Bank of Yanceyville this week purchased a lot between Florance's [became Dime Store] and Hooper's [W. H. Hooper & Son] stores, and will at once proceed to erect a handsome home for itself of concrete foundation, glass and pressed brick front. 

"Outside of the Courthouse, it will be the prettiest building in town, being modern in all respects. Every citizen who has a hope and faith in the future of this good old town will rejoice at this progressive move on the part of our wide-a-wake bank. -- Yanceyville Sentinel."

Reprinted in The Twice-a-Week Dispatch (Burlington, North Carolina), 8 September 1909.

Photograph: Construction in 1922/1923. Click image to see a larger version. Note the empty lot to the right on which the Yanceyville Drug Store was built.

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Here are the US economic conditions during the period, which provides context.

Panic of 1907

The first global financial crisis of the century, the Panic of 1907—also called the Knickerbocker Crisis—was a three-week collapse of the stock market that caused a number of financial institutions to close their doors. A failed takeover attempt of United Copper by two speculators led to a run on Mercantile National Bank, the financier of the venture. The 13-month recession eventually led to the creation of The Federal Reserve system in 1913.

Panic of 1910–1911

The fallout from the Sherman Antitrust Act, which saw a number of major companies dissolved, including Standard Oil, helped set off the Panic of 1910-11. The two-year downturn saw commercial and industrial activity falter, and the national product grew by less than 1%. The country recovered in 1912, thanks to a good farming season accompanied by poor harvests in Europe.

Recession of 1913–1914

The fallout from the panics of 1907 and 1910-11 set off another nearly two-year recession marked by income and production declines. The first Balkan War in 1912 put a strain on the world's economy and set the stage for World War I, with the consequences being felt in the U.S. a year later. The Federal Reserve was created in 1913 to control the country’s monetary system, and helped to stabilize the economy before the start of World War I.

World War I 1914-1918

When the war began, the U.S. economy was in recession. But a 44-month economic boom ensued from 1914 to 1918, first as Europeans began purchasing U.S. goods for the war and later as the United States itself joined the battle.

Post-World War I Recession

Production declined at the end of World War I, along with a surge in unemployment from soldiers returning home, creating a brief seven-month recession from 1918-19. The influenza pandemic of 1918 put a strain on the world’s economy as well, killing 675,000 people in the U.S. and 50 million worldwide. The U.S. ramped up natural resource production in 1919, doubling overall output in the next four years to help fill the needs of a war-ravaged Europe.

Depression of 1920–1921

The economy limped into the Roaring Twenties, with 1920 representing the most deflationary year in American history. Prices fell nearly 37% and gross domestic product dropped 38%, as federal budget cuts made in an attempt to pay down war debt set off a deep financial depression. The tide turned as people began spending money on newer appliances like refrigerators, washing machines, and radios.