269. Peoples Bank (Berryville, AR)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
December 18, 1930
Location
Berryville, Arkansas (36.365, -93.568)

Metadata

Model
gpt-5-mini
Short Digest
30ccb29f2ed49aec

Response Measures

None

Description

Articles (Dec 18–26, 1930) report heavy withdrawals tied to A.T. Hudspeth interests and runs on related banks that precipitated withdrawals at the Peoples Bank, which closed by order of directors on Dec 18. Local committee engaged state bank commission and planned reorganization; reopening was expected (Dec 25). OCR errors in some articles corrected (e.g., 'Hudspeth', 'Green Forest'). Cause is classified as local_banks because the run was driven by association with other failing banks in the Hudspeth chain.

Events (4)
1. December 18, 1930 Run
Cause
Local Banks
Cause Details
Heavy withdrawals driven by association with A.T. Hudspeth interests and runs on other Hudspeth-controlled banks in northwest Arkansas.
Measures
Bank directors closed the bank to protect depositors; contemplated reorganization and solicited new capital.
Newspaper Excerpt
closing ... attributed heavy withdrawals ... developing from unrest depositors. ... three weeks developing from unrest depositors.
Source
newspapers
2. December 18, 1930 Suspension
Cause
Local Banks
Cause Details
Closed by directors after persistent withdrawals tied to runs on other Hudspeth-affiliated banks; state banking department took action and examiners were involved in handling affairs pending reorganization.
Newspaper Excerpt
The Peoples Bank here failed to Thursday morning of last it being closed by orders of the board of directors ... due to ... withdrawals over period several weeks.
Source
newspapers
3. December 25, 1930 Other
Newspaper Excerpt
Plans for the reorganization the Peoples Bank which closed last Thursday morning ... expected that doors will again be open for business soon. ... More than enough money has already been subscribed to exceed the amount was formerly capitalized at ... the stock in the new bank will be owned entirely by citizens ... an independent bank. (Dec 25, 1930).
Source
newspapers
4. December 25, 1930 Reopening
Newspaper Excerpt
Plans for the reorganization ... it is expected that doors will again be open for business soon. ... More than enough money has already been subscribed ... only minor details are to be worked out. (Dec 25, 1930).
Source
newspapers

Newspaper Articles (5)
1. December 18, 1930 The Courier News Blytheville, AR
Article from The Courier News, December 18, 1930

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Article Text

Institutions at and Green Forest Doors Today. LITTLE ROCK Two northwest banks were swept the state's already extended list defunct nancial institutions today the closing of the Peoples Bank of Berryville and the Farmers and Merchants bank of Green Forest. Both members of the twelve of which shut their doors yesterday. The Berryville bank was capitalized with deposits $177,835. and the Green Forrest institution had capital stock of with deposits aggregating $158.- The state banking took immediate action to nince the two banks the hands of department examiners. check complet this merning by Taylor banking commissioner. devosits of the Hudsoeth stitutions to anproximately with canital and surplus gregating action the two banks pending business today attributed heavy withdrawals of The three weeks developing from unrest depositors. Two of the banks closed the Marion County bank of and the Bank of Pyatt. DOYSESS charters and as the Citizens Bank of Yellville. but under senarate names the remaining nine pending yesterday. the First National hank of Harrison and the First National bank of Eureka Springs operate under national banking charters and have been placed in national bank examiner from the office of the The banks closing vesterday and today did no' attempt to take vantage the five day provision provided by state banking laws reorganization of affairs but closed outright. No plans for reprganization have been announced and believed the aftairs of the various will be the First National bank and the Scctland County Savings bank of Laurinburg were closed today. approximately In deposits.

2. December 19, 1930 Winston-Salem Journal Winston-Salem, NC
Article from Winston-Salem Journal, December 19, 1930

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Article Text

Run Causes Bank to Close Peoples Little Ark Berryville and the Bank at Bank and the First Merchants at Green Forest National Bank closed today. Little A. interests twelve who had Northwest Arkansas other banks in yesterday because closed director heavy withdrawals Trust ComAmerican which closed of Little pany State banking departhis caused the with the institutions yesterday and the banks closing today.

3. December 25, 1930 The Star Progress Berryville, AR
Article from The Star Progress, December 25, 1930

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Article Text

Closing of Hudspeth Interests North Arkansas Causes Withdrawals on Bank Here. The Peoples Bank here failed to Thursday morning of last it being closed by orders of the board of directors to surpress which had developed caused twelve banks of the Hudspeth chain in Marion, Boone, Carroll and Searcy counties closing on Wednesday. It is said that this bank is vent but that was not in position to withstand run, evidences which had been shown for eral days prior to its closing, due to being member of the Hudspeth interests, and it neces. sary for it to close for the protection of its depositors. While awaiting the re-organization of this bank, has hampered business some extent, however, Berryville has not been without banking facilities at any time the First National Bank has mained open during this period of financial unrest. The closing of the Peoples Bank came as surprise to many citizwho had seen the two Berryville institutions remain open through the period of bank closings over the state, and was believed that the banks of Berryville, and Carroll county would the financial storm felt generally in the state and nation. is understood that persistent and growing tendency toward withdrawals had been reducthe cash in this bank for days. Some depositors had also been reducing their balances in the bank to the point where closing for short time was the only remedy. The situation in this part of Arkansas, differs from closings in other parts of the state, wherein the assets of the bank remained tact through conservative management, and withdrawals alone can be blamed for the situation. Over 90 Arkansas banks have suspended or closed for liquidation since November 17, when the ican Exchange Bank and Trust Company at Little Rock, closed. About have reopened or re-organized. The banks involved in this suspension are: Citizens Trust Co., Harrison. First National Bank, Harrison. American Exchange, Leslie. First National Bank, Eureka Springs. Bank of North Arkansas, Ever- Citizens Bank, Yellville. Citizens Bank, St. Joe. Bank of Lead Hill, Lead Hill. First State Bank, Marshall. Bank of Alpena Pass, Alpena. Marion County Bank, Flippin, Bank of Pyatt, are branches of the Citizens Bank at Yellville. closed when the parent bank suspended. The First National Bank and the Farmers Merchants Bank Green Forest, which were also closed Wednesday, were independently owned, the controlling stocks owned by citizens of this county. Out of the six banks operating Carroll County, only two remain open, the First National here and the Bank of Eureka Springs. understood that the closed institutions will again in open short time.

4. December 25, 1930 The Star Progress Berryville, AR
Article from The Star Progress, December 25, 1930

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Article Text

Committee Meets With State Bank Commission to Seek Re-organization of Local Institution Which Closed Last Week. Plans for the reorganization the Peoples Bank which closed last Thursday morning, due to continuwithdrawals over period several weeks, have almost been completed, and it is expected that doors will again be for open business soon. The exact date can be given just but sured that will be but time. committee composed Gregson, Dr. B. Brown, Ruh, Basore and Lem Kendall, went Little Rock, Sunday and appeared before the State Bank Commission Board Monday make arrangements for its opening and assured mission for its More than enough money has ready been subscribed to exceed the amount was formerly capitalized at, and only minor details are be worked out. The stock in the new bank will owned entirely by citizens Berryville's trade territory and will an independent bank. The confidence of the people in the banks here has been demonstrated by number of unsolicited persons asking to buy stock in the re-organized bank, and they have assured the present bank officials that they have utmost confidence them. The closing of the bank tributed to "nerves" rather than general conditions of the town and county, and the fact that the organization of the bank assuris something that the people be well proud of as the condition of the banks in community reflection of business conditiens in general.

5. December 26, 1930 The Producers News Plentywood, MT
Article from The Producers News, December 26, 1930

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Article Text

TWELVE BANKS GO BROKE WEDN'SDAY Little Rock, Ark., Dec. 18.-The Peoples Bank at Berryville and the Farmers and Merchants Bank and the First National Bank at Green Forest closed today. A. T. Hudspeth, Little Rock financier, who had interest in 12 other banks in northwest Arkansas which closed yesterday because of heavy withdrawals was a director of the American Exchange Trust Company of Little Rock which closed last month. State banking department officials said his connection with the institutions caused the runs on the banks closing yesterday and today.