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: 98f7a54d

Response Measures

Capital injected, Full suspension, Books examined

Other: Reorganization/subscription of new capital by local committee; state banking department placed examiners in charge.

Description

Peoples Bank of Berryville experienced heavy withdrawals tied to its connection with the Hudspeth interests; the board closed the bank Dec 18, 1930 to protect depositors. Local committees sought reorganization and stock subscriptions were raised; reopening was expected within days (articles dated Dec 25, 1930). Cause attributed to adverse information about the bank's ownership/associations (Hudspeth).

Events (3)

1. December 18, 1930 Run

Cause: Bank Specific Adverse Info
Cause Details: Persistent and growing withdrawals triggered by the bank's connection with A.T. Hudspeth and his interests, which had caused runs on other banks.
Measures: Board of directors closed the bank to 'protect its depositors'; reorganization committee sought state bank commission approval.
Newspaper Excerpt: the closing of the Peoples Bank of Berryville ... attributed heavy withdrawals ... developing from unrest of depositors ... due to being member of the Hudspeth interests
Source: newspapers

2. December 18, 1930 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Board ordered closure after sustained heavy withdrawals linked to the Hudspeth chain; bank closed outright rather than use state reorganization provisions.
Newspaper Excerpt: The Peoples Bank here failed to Thursday morning of last it being closed by orders of the board of directors to suppress [withdrawals]
Source: newspapers

3. December 25, 1930 Reopening

Newspaper Excerpt: Plans for the reorganization the Peoples Bank which closed last Thursday morning ... it is expected that doors will again be for open business soon ... More than enough money has ready been subscribed to exceed the amount was formerly capitalized at ... the new bank will be owned entirely by citizens ... and will an independent bank.
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

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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.