281. Bald Knob State Bank (Bald Knob, AR)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
November 20, 1930
Location
Bald Knob, Arkansas (35.310, -91.568)

Metadata

Model
gpt-5-mini
Short Digest
6e4c326e

Response Measures

Partial suspension, Books examined

Other: Final takeover by state bank commissioner (receivership) in 1931.

Description

November 1930: the Bald Knob State Bank opened but experienced heavy withdrawals (a run) and was suspended under the five-day provision. By October 15, 1931 the Bald Knob State Bank failed to open and was taken over by the state bank commissioner (permanent closure/receiver). Cause of the initial run appears tied to broader local/state bank failures and suspensions that week.

Events (3)
1. November 20, 1930 Run
Cause
Local Banks
Cause Details
Run occurred amid a wave of nearby bank suspensions and closures in Arkansas during the same week, producing depositor nervousness and heavy withdrawals.
Measures
Officers took precautionary measures; bank suspended under the five-day provision.
Newspaper Excerpt
The Bald Knob State bank. The latter bank opened for business this morning but heavy withdrawals during the first two hours business caused officers take precautionary measures.
Source
newspapers
2. November 20, 1930 Suspension
Cause
Local Banks
Cause Details
Suspension invoked as a precaution after heavy withdrawals/run driven by statewide bank failures and suspensions that week.
Newspaper Excerpt
The Bald Knob State bank opened, but was subjected to run during the morning and suspended at 11 o'clock as precautionary measure. All three Institutions were suspended under the five days provision.
Source
newspapers
3. October 15, 1931 Receivership
Newspaper Excerpt
The Bald Knob State Bank and the Citizen's bank of Bald Knob closed Saturday. Both are in the hands of the state bank commissioner.. The Bald Knob State Bank failed to open for business Saturday and this is believed to have caused a run on the Citizen's bank, which closed about 11 a. m.. Deposits in the two banks totaled $200,000.
Source
newspapers

Newspaper Articles (6)
1. November 20, 1930 The Courier News Blytheville, AR
Article from The Courier News, November 20, 1930

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Article Text

Three More Small Banks Close But Others Are Likely to Reopen. HEBER SPRINGS, ARK., Nov. Arkansas National bank of Heber Springs resumed business shortly after noon today, after having been closed since Monday. During the first half hour business deposits were made and only normal withdrawals were ported. The bank was one of 58 that closed suspended business Arkansas this week. LITTLE Ark., Nov. 20. report that the ArkanNational bank of Heber Springs, of 58 which suspended clospermanently carlier this week, today was inconce state officials that banking conditions were becoming Others' Doubtful Whether other banks would able to open the end of their suspension period question today which puzzled banking department authorities in the right of extending the suspension period Definite word that the American Exchange Trust company, one. the largest and considered the strongest banks in the state, would not open at the close the five day period was had last night. would force them closed. They did Indicate when business might resumed nor did they say they would ask for tension the five day period. Two banks yesterday notified state authorities they had closed temporarily, and third. of Tyronza in Poinsett county, closed permanently. state banking authorities taking over its operations. Three More Close Three more banks were added to the which have suspended business today. They the Bank of Corning. Corning. Citizens Bank, at Bald Knch. and the Bald Knob State bank. The latter bank opened for business this morning but heavy withdrawals during the first two hours business caused officers take precautionary measures. All three Institutions were suspended under the five days provision. The total closed and suspended since last Monday mounted to with the three banks closed today.

2. November 20, 1930 St. Louis Post-Dispatch St. Louis, MO
Article from St. Louis Post-Dispatch, November 20, 1930

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Article Text

Central Bank and Trust Co. Largest in North Carolina Acts to "ConResort, serve Assets." FIVE OTHERS IN STATE SUSPEND President of First National Bank in Horse Cave, Ends Life After Saying He Erred in Closing. By the Associated Press The Central Bank Trust Co., largest financial institution in this immediate section, failed to open business today and noon other western North Carolina had closed their doors Capitalized $1,000,000, the Central Bank Trust Co. on Septhe date the last tember bank had deposits of approximately Other banks closing were the Bank here including its branch at Oteen Veterans' the First Bank Trust Co., the American Bank Trust Citizens National Bank Henand the Bank of LowThe closings Hendersonville left without banking facilities After the First Bank and Trust Co. there failed to open runs immediately developed on the American Bank and Trust and the Citizens' National Depositors stood in long lines in an effort to draw their The American remained open only minutes. Its officers, closing issued statement saying the action had been for protection of depositors and because of the run. Citizens closed an hour officers declared the institution The First Bank and Trust Co., had and of according to its last statement The American Bank and Trust reported deposits of approximately The National was capitalized of and of given by the directors Central Bank and closed anticipation of heavy the statement said, taken conserve depositors and only became that During the past days bank been forced heavy funds primary the clos. today said by John State Bank Exam. iner. to be the collapse real estate values from Two More Louisville Banks Close; Brown Displaced Nov Election of Henry Vogt, Louisville James president the formally nounced today The holding company the Nation. Bank of Kentucky, which closed Monday announced the Bancokentucky is continuing to do business under authority of its board of directors. who accepted resignation Brown president the National Bank of Kentucky, in hands Federal receiver. closing of which followed of business by other Kentucky banks The latter affiliated with one of the closed Monday Bankers Trust Louisville institution announced today had placed its affairs in the hands of the State Banking Coinmission for liquidation was opened this morning and decision shortly after noon. The Avery Building which holds mortgages many houses and lots. announced take advantage of the State law permitting not to make any for 30 days added "excellent financial con. Directors of the Union Central Bank of Louisville, an industrial toan bank organized two ago, announced would not open morning This bank. which has deposits of cleared through the Louisville Trust Co. suspended operations Mon day George Ewald president of Central Bank said he thought the depository fully solvent. Four More Arkansas Banks Suspend: Total for Week 62. By LITTLE ROCK, Ark., Nov 20. Suspension of four more banks in Arkansas reported to the State Banking Department today, bringing the this to Arkansas National Bank Heber Springs, which suspended Tuesday. reopened today. Those suspending today were the Bank of Ozan at Ozan and the Bank of Strawberry at Strawberboth for five days, and banks Bald Knob, the Bald Knob State Bank and the Citizens' continued today by directors of many of the

3. November 20, 1930 The Atlanta Journal Atlanta, GA
Article from The Atlanta Journal, November 20, 1930

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Article Text

Six North Carolina Banks Close Doors To Conserve Assets ASHEVILLE N C., Nov. 20.-(P)The Central Bank and Trust Company largest financial institution in this immediate section failed to open for business Thursday and by noon five other western North Carolina banks had closed their doors Capitalized at 1,000,000. the Central Bank & Trust Company on September 24 the date of the last bank call had Its were given at that time $21,753,000 Other banks closing were the BiltOteen Bank here, including its branch at Oteen Veterans Hospital the First Bank & Trust Company the American Bank & Trust Company Hendersonvill the Citizens National Bank Hender sonville and the Bank of Lowell, John Mitchell, state bank examiner was notified of the Central Bank & Company's failure to open and was expected to send an examiner here immediately to take charge of A statement given out by the board of directors said the bank was closed in anticipation of a heavy run A notice posted on the door of the First Bank & Trust Company Hendersonville said the institution had been placed in the hands of the State Banking Department for liquidation of $204.261 and deposits according to its last stateof condition The American Bank & Trust Comsmallest three banks had deposits approxmiately $160. 000 The Citizens National capitalat $100,000 had surplus of deposits $70 000 at the last It was at MITCHELL BLAMES COLLAPSE OF BOOM IN REAL ESTATE RALEIGH N C. Nov. the closing of The primary the Central Bank and Company North Mitchell state bank exam the estate the section from a highly In statement issued here he said the of boom. -powered their largely in Asheville ville inflated was real The impossible for failed banks to liquidate their receivables sufficient volume to meet demands of depositors situation is purely local one does not in any reflect in the generally and should no Bankers Trust Closes 20 The Trust Company capitalized at $500 Thursday after the Central Bank of the Bank Canezville suspended The BankTrust brought thirteen the number banks which have suspendKentucky Monday six of them are in Louisville 62 Closed: One Reopens LITTLE ROCK Ark banks in Arkansas was reported to the State Banking Department Thursday bringing the week to The Bank at Heber Springs suspended Thursday Those Tuesday suspending Thursday the Bank of Ozan at Ozan the Bank of Strawberry both for five and two banks Bald Knob State Bank and

4. November 21, 1930 Jonesboro Daily Tribune Jonesboro, AR
Article from Jonesboro Daily Tribune, November 21, 1930

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Article Text

FINANCES ARE CLEARING UP IN ARKANSAS Opening of Bank at Heber Springs and Reorganization Plans Restore Confidence over Arkansas Following Bank Suspensions LITTLE ROCK, Ark., Nov. Additional encouragement to Arkansas' banking situation was given today by the state banking department, when Walter E. Taylor, commissioner, announced that information coming into his office indicated that more of the 63 suspended institution than he at first anticipated. are working out reorganization and reopening plans. Mr. Taylor said that reports indicated that many of the institutions had progressed with their reorganization plans to the extent of expecting open for business during the later part of this week or carly next week. He expressed the belief that the situation in the state would show great improvement during the coming week. The National Bank of Arkansas of Heber Springs was the first to resume business. This institution reopened its doos yesterday morning after authority had been received from Comptroller of Currency W Pole at Washington. The national bank examiner reported that the institution was in position resume business Directors of the American change Trust Company of Little Rock today continued their conferences to consider reopening plans. Just when and how the local institution can reopen has been determined. Five More Suspend Officials of the American Exchange stated that reorganization requiring the co-operation of the depositors were well under way and it was hoped that the bank could be reopened soon. The bank will be taken over Saturday by the state bank commissioner pending completion of the reorganization Five banks were added to the list of those suspending. The Bank of Corning at Corning suspended Wednesday afternoon. The Citizens Bank at Bald Knob did not open this morning, five day suspension. The Bald Knob State Bank opened, but was subjected to run during the morning and suspended at 11 clock as precautionary measure. The five brought the total banks suspending or closing up to 63, Two small institutions, the Bank of Ozan at Ozan, Hempstead Counand the Bank of Strawberry Strawberry, Lawrence County, both independent banks, announced suspensions for -days. The Bank of Strawberry suspended last Monday, but the first report of the action was not received at the state banking department until this morning. The Bank of McNeil at McNeil suspended for five days Thursday afternoon, and the Bank of Tyronza was taken over by the state bank department. A dispatch from McRae said the Peoples Bank at that place expected to reopen Saturday or Monday, under a proposed agreement that stockholders pay in $12,000, an amount equal to deposit the bank had in the Arkansas Trust Company at Newport when the latter suspended. Depositors also were being asked to agree to maintain 85 per cent of their deposits in the bank for 12 months, or as long as necessary to stabilize the institu-

5. November 21, 1930 Chattanooga Daily Times Chattanooga, TN
Article from Chattanooga Daily Times, November 21, 1930

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Article Text

the Bald Knob State bank and zens bank. Conferences were being continued directors of stitutions plans to Deposits aggregating than 000,000 are involved the suspension of the

6. October 15, 1931 The Newark Journal Newark, AR
Article from The Newark Journal, October 15, 1931

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Article Text

Two Bald Knob Banks Are Taken Over by the State The Bald Knob State Bank and the Citizen's bank of Bald Knob closed Saturday. Both are in the hands of the state bank commissioner.. The Bald Knob State Bank failed to open for business Saturday and this is believed to have caused a run on the Citizen's bank, which closed about 11 a. m. The Bald Knob State Bank was organized 30 years ago by C. M. Eganbright, who afterward moved to Judsonia. T. J. Campbell was president and E. R. Wynn cashier. The Citizens Bank was organized in 1925. Bing Moody was president and John Q. Adams cashier. Deposits in the two banks totaled $200,000.