10942. Canton Exchange Bank (Canton, MS)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
November 28, 1931
Location
Canton, Mississippi (32.613, -90.037)

Metadata

Model
gpt-5-mini
Short Digest
0bb21c94

Response Measures

None

Description

The articles describe a suspension in late Nov/early Dec 1931 (article dated Dec 5/Dec 7 says the bank suspended a week ago) and a reopening announced March 26, 1932 (reopening Monday). No article mentions a depositor run; suspension caused by illiquid bond holdings and depressed bond market. Classified as suspension_reopening.

Events (2)
1. November 28, 1931 Suspension
Cause
Macro News
Cause Details
Bank held $400,000 of high-grade bonds (over 50% of deposits) that could not be converted to cash because of depression of the bond market; illiquidity led to closure.
Newspaper Excerpt
The Canton Exchange bank, which suspended a week ago, owns $400,000 of high class bonds, which represent more than 50 per cent of the bank's total deposits, according to A. C. Powell of the state banking department, now in charge.
Source
newspapers
2. March 28, 1932 Reopening
Newspaper Excerpt
J S. Love, state superintendent of banks, announced today that the Canton Exchange bank at Canton, Miss. would reopen under a new directorate on next Monday morning. The bank suspended operations several months ago. It will reopen with resources totalling nearly million dollars ... capital of $110,000, $80,000 surplus and $750,000 deposits.
Source
newspapers

Newspaper Articles (3)
1. December 6, 1931 Clarion-Ledger Jackson, MS
Article from Clarion-Ledger, December 6, 1931

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Article Text

CANTON CANTON, Dec. 5-(/P)-The Canton Exchange bank, which suspended a week ago, owns $400,000 of high class bonds, which represent more than 50 per cent of the bank's total deposits, according to A. C. Powell of the state banking department, now in charge. Powell said that under normal conditions with good bond market the bonds might have been converted into cash in an orderly way or in such quantities as would be to meet deposit demands, but due to depression of the bond market this can not be done. Powell said his analysis of the banking situation resulting from closure, while not complete, gives hope of early adjustment. The bank was handled in such a way as to make the work of auditors easy, he said, and he is hopeful of giving a complete report within a week.

2. December 7, 1931 Sun Herald Biloxi, MS
Article from Sun Herald, December 7, 1931

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Article Text

CANTON BANK HELD $400,000 IN BONDS Canton, Miss., Dec. Canton Exchange Bank, which suspended week ago, owns $400,000 of high class bonds, which represent more than 50 per cent of the bank's total deposits, according to C. Powell of the state banking departnow in charge. Powell said that under normal conditions with good bond market the bonds might have coverted into cash in an orderly way or in such quantities as would necessary to meet deposit demands, but due to depression of the bond market this can not be done. Powell said his analysis of the banking situation resulting from closure, while complete, gives hope of early adjustment. The bank was handled in such way to make the work of auditors easy, he said. he hopeful of giving complete report within week.

3. March 27, 1932 Morning World Monroe, LA
Article from Morning World, March 27, 1932

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Article Text

CLOSED MISSISSIPPI BANK TO BE REOPENED MONDAY JACKSON, Miss., March 26 (P)-J S. Love, state superintendent of banks, announced today that the Canton Exchange bank at Canton, Miss. would reopen under a new directorate on next Monday morning. The bank suspended operations several months ago. It will reopen with resources totalling nearly million dollars under bright prospects as leading central Mississippi financial institution. The bank will have capital of $110.000, $80,000 surplus and $750,000 deposits.