294. Bank of Blytheville (Blytheville, AR)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
March 10, 1920
Location
Blytheville, Arkansas (35.927, -89.919)

Metadata

Model
gpt-5-mini
Short Digest
236fbbfe

Response Measures

None

Description

The Bank of Blytheville was closed by State Bank Commissioner W. T. Maxwell on March 10–11, 1920, turned over to the commissioner/receiver, and later audit showed a large deficit and indictments for embezzlement. Articles reassure depositors but later detail insolvency and assignment to the commissioner; no run on the bank is described.

Events (2)
1. March 10, 1920 Suspension
Cause
Local Shock
Cause Details
Slow realizations on collections (especially cotton collections) and inability to realize securities immediately; liquidity/collection problems prompted commissioner to close the bank on March 10–11, 1920; audit later showed large deficit and insolvency due to bad loans and possible embezzlement by officers, but immediate stated cause was slow realizations on collections (cotton).
Newspaper Excerpt
the day the bank closed its doors ... the bank was taken over by the commissioner
Source
newspapers
2. March 11, 1920 Receivership
Newspaper Excerpt
turned the institution over to W. T. Maxwell, state bank commissioner. ... B. A. Lynch, of Blytheville, was appointed deputy bank commissioner immediately after the bank was taken over by the commissioner.
Source
newspapers

Newspaper Articles (6)
1. March 12, 1920 The Log Cabin Democrat Conway, AR
Article from The Log Cabin Democrat, March 12, 1920

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Article Text

BLYTHEVILLE BANK TOPAYOUTINFULL Blytheville, Ark., March 12.-Depositors of the Bank of Blytheville, which was closed by State Commissioner W. T. Maxwell yesterday, will be paid in full and the bank will reopen for business within a short time, it was announced today. The assurance was also given at a meeting late yesterday, by President Pyles of a rival bank here. Cashier H. B. Wilhite and Assistant Cashier W. O. Anthony have turned over individual securities aggregating over $800,000,which is said to be more than double the amount of securities upon which the bank was unable to realize and which forced it to suspend business temporarily.

2. March 12, 1920 The Courier-Index Marianna, AR
Article from The Courier-Index, March 12, 1920

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Article Text

Blytheville Bank Closes Its Doors Blytheville, March 11.-The Bank of Blytheville, the oldest bank here, closed its doors today and turned the institution over to W. T. Maxwell, state bank commissioner. The cause was given as slow realizations on collections, especially cotton collections. The cashier, B. H. Wilhite, and assistant cashier, W. O. Anthony, turned over all their holdings, both as individuals and as a firm. They are connected with many financial matters jointly. It is said there is no shortage in the accounts of the bank. The securities are ample to meet every obligation, it is said. The officers exto have on their pected yesterday received account collections in St. Louis. Being overdrawn, their checks were protested, and a bank examiner was sent here to look over the bank's accounts. The amount the cashier and his assistant turned over exceeds $800,000, and this is said to be far more than double what the securities represent on which the bank could not realize immediately. No statement has been made by the officers. The state commissioner is checking up the accounts, and nearly all the securities are said to be giltedged. President Pyles of the Farmers Bank and Trust Company, addressed a meeting at the chamber of commerce this afternoon, reassuring the depositors that the bank would open soon, and that every dollar would be paid in full. Osceola, Wilson and Memphis are said to have sent a considerable amount to the other banks here this morning to thwart any run which might be made on them by those who might become alarmed, and no fears were felt tonight of a possible run. Mr. Pyles said the bank probaly would reopen in a few days. The last financial statement of the bank showed over $1,000,00 in assets, and the report for this month was due on the day the doors closed. The bank was to have let the contract for a $100,000 new bank building today.

3. May 28, 1920 The News Scimitar Memphis, TN
Article from The News Scimitar, May 28, 1920

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Article Text

BLYTHEVILLE BANK HAD DEFICIT OF NEARLY LLION Assets on Day of Closing Totaled $927,404.63, According to Audit Just Submitted to State Commissioner. LITTLE ROCK, Ark May 28 (Spl.)A detail of the audit of the Bank of Blytheville, Ark., filed with the state bank commissioners by Homer K. Jones & Co. of Memphis, certified public accountants and auditors, shows the total deficit of the institution to have been $896,244.96 on March 10, the day the bank closed its doors. On that day the bank had total cash on hand and on deposit in banks $38,330.63: customers' overdrafts, $127, 974.06; loans and discounts, $730, 90.78; real estate and office equipment, $5,200. and other current assets, making a total of $927,404.63. On that date the bank had a total current liability of $1,677,738.29. The capital account is $73,707. In addition the general deposit ledger shows accounts greater than the actual accounts in the customers' ledger by $72,204.30, which amount may or may not be claimed. The aggregate total liability was, therefore, $1,823,649.59, which leaves a deficit of $896,244.96, subject to the possible reduction of $72,204.30 in the event same is not finally proved. J. F. Wilhite, president; B. H. Wilhite, cashier, and W. O. Anthony, assistant cashier, assigned to the bank commissioner a considerable amount of property to be sold and the proceeds applied to the bank's assets. The audit covers a period of 26 months and 10 days and required 107 days for its completion, as a cost to the bank of $1,612.50. B. A. Lynch, of Blytheville, was appointed deputy bank commissioner immediately after the bank was taken over by the commissioner. The time for filing claims expires June 1.

4. June 4, 1920 The Prescott Daily News Prescott, AR
Article from The Prescott Daily News, June 4, 1920

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Article Text

REESE NOW UNDER BAIL OWES RUINED BLYTHEVILLE BANK $179,000 IS CHARGE-BIG AMOUNT WAS ADVANCED TO FINANCE PROMOTION SCHEME. Blytheville, Ark., June3.-James A. Reese, who it is alleged is indebted to the defunct bank at Blytheville to the amount of $179,000, has been rearrested on a charge of grand larceny and is now out under $10,000 bail. Reese was first arresteed on a warrant sworn out before a magistrate's court and made bail to the amount of $2,500. When he failed to appear at a hearing forfeiture was declared. This was set aside, however, when Reese appeared later and he was again arrested. Reese was a friend of B. H. Wilhite, cashier of the bank. When representatives of the state bank commissioner closed the doors of the institution on March 10 personal obligations of Reese totaling more than $150,000 were found. Reese, it is understood, had no account with the bank and the transactions, it is said, were between himself and Wilhite. Checks carried as cash items were the only record the bank had of Reeses debt. Wilhite is said to have advanced Reese the money to promote the manufacture of a machine to thread pipes. Wilhite and W. O. Anthony, assistant cashier, are under bond of $40,000 on indictments charging embezzlement, accepting deposits knowing the bank to be insolvent and making false entries. Wilhite and Anthony had invested heavily in farm lands, oil well properties, and had financed a number of schemes. They assigned a large amount of real and personal property after the institution had been ruined. An audit of the affairs of the bank concluded several days ago indicated that there was a deficit of $896,000 on the day Deputy Bank Commissioner B. A. Lynch took charge.

5. January 5, 1921 The Prescott Daily News Prescott, AR
Article from The Prescott Daily News, January 5, 1921

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Article Text

GOV. WILL HEAR PETITION OF BANKER FOR PARDON Little Rock, Jan. 5.-Governor Brough announces that he will give a public hearing at 10 a. m. next Monday to the petition for the pardon of W. O. Anthony, cashier of the Bank of Blytheville, who recently pleaded guilty to a charge of embezzlement and was sentenced to a term of five years in the penitentiary. The petition for his pardon is endorsed by the receiver of the bank, the chairman of the depositors committee and a large number of county officials and depositors of the bank. It is claimed that Mr. Anthony did not profit from the transaction and that he was in fact only a tool of others. It is said that he has a splendid position offered him in Texas in the event that a pardon is granted.

6. January 6, 1921 Daily Picayune Prescott, AR
Article from Daily Picayune, January 6, 1921

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Article Text

HEARING FOR PARDON A hearing on pardon petitions for W. O. Anthony, sentenced to five years' imprisonment for complicity in looting the Bank of Blytheville, will be held in the governor's reception room at 10 o'clock Monday. The governor said yesterday that he had petitions and requests from the chairman of the depositors' association, the present receiver of the bank, and numerous county officials and other citizens. The petitions allege that Anthony did not profit by his actions, that he is suffering from varicose veins and that he can give valuable information in clearing up the affairs of the defunct bank. Anthony was sentenced on his plea of guilty.