386. Merchants & Planters (Helena, AR)

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: November 17, 1930
Location: Helena, Arkansas (34.530, -90.592)

Metadata

Model: gpt-5-mini
Short Digest: a4ac99cf

Response Measures

None

Description

The Merchants & Planters Bank in Helena suspended payments Nov 17, 1930 citing fear of a run tied to statewide unrest after Caldwell & Co. receivership. Bank declared solvent and intended to resume in five days. By Jan 2, 1931 articles report reorganization completed and a new national charter (reopening) planned. I classify this as a suspension (precautionary) with later reopening.

Events (3)

1. November 17, 1930 Other

Newspaper Excerpt: In our opinion all depositors will be paid in full... The Merchants and Planters Bank is solvent, R. L. Deal, vice president and manager, said this morning.
Source: newspapers

2. November 17, 1930 Suspension

Cause: Macro News
Cause Details: Public hysteria and excessive withdrawals statewide following the receivership/financial difficulties of Caldwell & Company (investment bankers), precipitating precautionary suspensions in affiliated Arkansas banks; bank cited 'fear of a run' as reason for suspending payments.
Newspaper Excerpt: The Merchants and Planters Bank today failed to open its doors and at the same time announced suspension of payment on checks drawn against deposits, 'with the intention of resuming payment within five days.'
Source: newspapers

3. January 2, 1931 Reopening

Newspaper Excerpt: Plans for the reorganization of the Merchants and Planters, which has been closed for a month and a half, have been virtually completed. The federal comptroller has granted it new charter as a... bank and will be reopened...
Source: newspapers

Newspaper Articles (12)

1. November 17, 1930 The Houston Chronicle Houston, TX

Article from The Houston Chronicle, November 17, 1930

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30 ARKANSAS CHAIN BANKS DROP PAYMENT Institutions May Be Reopened at End of Five Days Under Laws of State. By Little Rock. Ark. Nov. 17.-Offcials of the B. Banks Company, Arkansas financial institution, announced today that 30 banks in the state with which company affiliated suspended payments to depositors for period of five Eight other affiliated banks advised the B. Banks Company were The company officials said they had not heard early today from others the affiliation as to what action they were taking. Mostly Small Banks. The decision of the board of directors of the American Exchange Trust of Little Rock, the largest bank in the state, suspend payments and close for five days resulted in the temporary closing of the others, the banks anArkansas banking laws provide bank depositors for five days and reopen the end period placed hands of the state department. With exception of the AmeriExchange Trust Company the Merchants and Planters Trust Company of Pine Bluff and the Merchants and Planters Bank at Helena, closing are comparavice of the B. Banks Company, said expected least half" the would The temporary closing of the American Exchange Company attributed by the direcpublic from of investment bankers Nashville. Tenn. November statement by the American Exchange Trust Company the suspension was "forced upon by excessive drawals than 000 during the past 10 days, fol-

2. November 17, 1930 The Bismarck Tribune Bismarck, Mandan, ND

Article from The Bismarck Tribune, November 17, 1930

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ARKANSAS BANKS SUSPEND PAYMENT 30 Institutions Affiliated With Big Firm Expected to Reopen, However Little Rock, Ark., Nov. 17.-(P)Officials of the A. B. Banks and company, Arkansas financial institution, announced today 30 banks in the state with which the company is affiliated have suspended payments to depositors for a period of five days. Eight other affiliated banks advised the A. B. Banks company they were remaining open. The company officials said they had not heard early today from 11 others in the affiliation as to what action they were taking. The decision of the board of directors of the American Exchange Trust company of Little Rock, the largest bank in the state, to suspend payments and close for five days resulted in the temporary closing of the others, the Banks company announced. Arkansas banking laws provide a bank may suspend payments to depositors for five days and reopen at the end of that period or be placed in the hands of the state banking department. With the exception of the American Exchange Trust company here, the Merchants and Planters Trust company of Pine Bluff, and the Merchants and Planters bank at Helena, those closing are comparatively small institutions. J. J. Harrison, vice president of the A. B. Banks and company, said he expected "at least half" of the banks would reopen. A statement by directors of the American Exchange Trust company said the suspension was "forced upon us by excessive withdrawals totaling more than $4,000,000 during the past 10 days, following the announcement of financial difficulties of Caldwell and company, investment bankers of Nashville, Tenn. "The affairs of Caldwell and company are remote from Arkansas and nothing but an excited public mind could have forced the closing of this strong bank."

3. November 17, 1930 New Britain Herald New Britain, CT

Article from New Britain Herald, November 17, 1930

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THIRTY ARKANSAS BANKS CLOSED 5 DAYS BY ORDERS (Continued From First Page) could have forced the closing of this strong bank." Soon after Caldwell & Company was placed in receivership, Mr. Banks anounced the Caldwell & Company's interest in the American Exchange Trust Company had been bought by Little Rock capitalists. The Pine Bluff bank was the second largest in the group and the Helena institution the third largest Banks was a director and a former president of the bank. The American Exchange Trust Company in Little Rock had deposits of approximately $15,000,000 OD September 24, the date of the last bank call. The Pine Bluff bank on September 24 had deposits of approximately $2,638,000 and the Helena bank at the close of business Saturday had deposits of $726,000. officials said. List of Institutions The banks in which Mr. Banks and assistants are interested and which suspended business today for five days were announced by the company as follows: The bank of Altheimer, Altheimer: North Arkansas Bank. Batesville; Bank of Bauxite, Bauxite; Benton Bank and Trust Company, Benton: Arkansas State Bank, Carlisle; Bank of Carthage, Carthage; Farmers Bank, Casa: Bank of Clarendon, Clarendon: Farmers Bank, Dardanelle: Hampton State Bank, Hamnton: Cleburne County Bank. Heber Springs: Merchants and Planters Bank, Helena; Bank of Houston, Houston: Merchants and Planters Bank, Hunphrey: Cleveland County Bank. Kingsland; Chicot Trust Company, Lake Village: AmericanExchange Trust Company, Little Rock: First State Bank, Morrilton: Arkansas Trust Company, Newport: Bank of Pangburn. Pangburn: Perry State Bank, Perry: Merchants and Planters Bank and Trust Company, Pine Bluff: Bank of Star City, Star City: Victoria Bank, Strong: First State Bank. Stuttgart: Citizens Bank Thornton. and Bank of Wabbaseka Wabbaseka; The Arkansas Bank and Trust Co., Hope: Peoples Bank McRea: and the Endora Bank and Trust Co., Endora. The following banks affiliated with the A. B. Banks and Company remained open for business, the company announced: The Bank of Fordyce and the First National Bank, Fordyce; Bank of Harrisburg, Harrisburg: First National Bank, Mineral Springs: Bank of Stephens, Stephens, and Bank of Waldo, Waldo. Efforts were being made at Junction City to merge the first National Bank and the Merchants and Farmers Bank. and open one of them today, officials said.

4. November 17, 1930 The Belleville News-Democrat Belleville, IL

Article from The Belleville News-Democrat, November 17, 1930

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47 BANKS ARE CLOSED (Continued from Page Planters Bank Trust Company Pine Bluff, of which Banks director; the Merchants PlantBank of Helena, and seven small institutions in southeast Arkansas. The Pine Bluff bank had deposits Sept. of $2,638,790. CLOSE IN LOUISVILLE Louisville, Ky., Nov. 17. The Louisville Security Bank and the American Mutual Savings Bank, the latter and operatclosed today after the National Bank of Kentucky and the Louisville Trust Company failed to open for business. The Security bank was affiliated with the National Bank which was taken over by the Federal Comptroller of Currency. The Negro bank affiliated with the Louiswas Trust Company which the hands of the State placed The four banks combined list aggregating institutions were declared the solvent, but that necessary close them to conserve the sources and protect creditors, positors all others concerned." BANK CLOSED Louisville, 17. The National Bank Kentucky, capitalized and an filiated the Louisville Trust Company, failed to open today and the former taken over tion Bank notice posted by the Board Directors and signed by Russell Mooney, National Bank Examiner, said the National Bank was solvent but that had been closed resources for creditors." The National Bank claimed of James Brown, president of the and owner of Louisville newspapresident. The bank was ganized in 1834 the Bank Kentucky. operated numerous branches. The notice posted by Mooney bank under the direction the Comptroller of Currency. charge of Russell Mooney, National Bank Examiner. closed by order of the Board of Directors, Nov. MORE CLOSE Pine Bluff, Ark., Nov. Merchants Planters Bank and Trust Company of Pine Bluff, and smaller banking tions in southeastern Arkansas, open their doors today. The smaller institutions were: Bank of Star City, Bank of Altheimer, Bank Trust Comthe Bank Wabbaseka, First pany, State Bank of Stuttgart, Chicot Trust Company of Lake Village, and the Merchants & Planters Bank of Humphreys. HELENA BANK CLOSED Helena, Ark., Nov. 17. The Merchants Planters Bank of Helena, closed today. Officials announced they regardthe institution solvent but closing to protect depositors. TWO IN ILLINOIS Springfield, Nov. more state banks failed open their today bringing the number state banks to since Friday five. All connection with the failure of the State Savings Loan and Trust Company, Quincy, which suspended Saturday. had capitol stock of million dollars and deposits talling $6,000,000. The banks which closed today Bartlett Wallace State and the Timewell State Bank Timewell Both banks correspondents the Quincy bank. The Bartlett and Wallace State Bank, according its last report had capital stock of $50,000 and approximately $500,000 in James Moffett president and Fred cashier. The Timewell State Bank was capitalized $25,000 and had posits of approximately $150,000 Its president is Chapman. Manny cashier. Announcement of the banks' closing was made here by State AudiOscar Nelson Two Quincy Banks, said to have been affiliated with the Savings Trust and Loan Company, the financial institution Quincy, also forced to close their

5. November 17, 1930 The Indianapolis Times Indianapolis, IN

Article from The Indianapolis Times, November 17, 1930

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Arkansas Bank Closes Ark., Nov. 17. The Merchants Planters bank of Helena, its doors today they regarded as solvent, closing to protect depositors. Eight Close Doors PINE BLUFF, Ark., Nov. and Bank Trust Company of Pine Bluffs. smaller banking failed open their doors today.

6. November 17, 1930 The World-News Roanoke, VA

Article from The World-News, November 17, 1930

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Serves As Host Pastor Richard pastor Baptist church, serving as host pastor at the one hundred and seventh session of the Baptist General Association which will First church present without pastor. its correspondents and that its dewould be In Louisville slightly than numbers of patrons at the other banks but nothing officials that the public would not become excited. Crowds around the National Bank Kentucky and the Louisville Company delayed traffic and special police were on duty. Little Rock, Nov. Banks Arkansas nounced banks in State the company filiated suspended for five days. Eight other affiliated banks advised the Banks and Company they remaining officials said they had heard early from as they taking. The decision of the board of directors of the Exchange Trust Company, Little Rock. the largest bank the to pay ments and five the temporary closing others, the Banks company Banks, president the AmerTrust Company terested the other affiliated banks Arkansas banking laws provide bank suspend to defor five days and re-open hands of the State Banking DeWith exception of the American Exchange Trust here the chants and Planters Trust Company Pine Bluff and the Merchants and Planters Bank Helena, those closing pected least half" the banks will temporary closing of the AmeriExchange Company was tributed by the public citement from the placing Caldwell and bankers in receivership Issues Statement. statement directors the American Exchange the suspension "forced upon by cessive than during the past days following the financial difficulties Caldwell and The Caldwell and Company for Arkansas and nothing the closing of this strong bank, Soon after Caldwell and Company was placed Mr. Banks announced the Caldwell and Company interest Exchange Trust Company been bought The Bluff was the second largest in the group and the Helena third Banks director the former and presithe Helena The Trust Comin Little Rock had September the the last bank call. The Bluff 24. had deposits the Helena the business Saturday had deposits $276,000. officials The banks in which Mr. Banks and which pended business today five by the company follows The Bank of Altheimer Bank Benton and Trust Arkansas Bank Farmers Farmers Dardanelle; Hampton State Hampton: County Heber Springs: and Planters Bank, Helena: Houston, HousMerchants Planters Bank, County Bank Chicot Trust Company Village: Exchange Trust Company, First State Arkansas Trust

7. November 17, 1930 The Daily World Helena, AR

Article from The Daily World, November 17, 1930

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MERCHANTS AND PLANTERS BANK TODAY PAYMENT STOPPED ON CHECKS DRAWN ON DEPOSITS, BUT BANK DECLARED SOLVENT FOR FIVE DAYS Directors Announce Intention to Resume Payment Within Five days-Statement Says "In Our Opinion Depositors Will be Paid in Full-Run on Bank Was Feared. The Merchants and Planters Bank today failed to open its doors and at the same time announced suspension of payment on checks drawn against deposits, "with the intention of resuming payment within five days." Fear of a run on the bank by depositors because of general unrest throughout the state was assigned as the cause for the action. The Helena bank was one of the banks in Arkansas in which A. B. Banks, Little Rock capitalist, is interested that made similar announcements today. "In our opinion all depositors will be paid in full," the announcement on the door of the Merchants and Planters Bank said. "The Merchants and Planters Bank is solvent," R. L. Deal, vice president and manager, said this morning, "but in order to assure equal protection to all our depositors, we have decided on the action we have taken." The statement issued by the bank today reads as follows: "Because of the general unrest now existing over the entire state, at a meeting of the board of directors it was decided that under the authorization of Section 717, Crawford and Moses Digest, of the Statutes of the State of Arkansas, this bank suspended payment of checks drawn against deposits, with the intention of resuming payment within five days. "We have in cash, bonds and sight exchange over two hundred thousand dollars ($200,000) which is more than the legal requirements, but for the protection of depositors in that the interest of each and every one may be placed on an equal basis this action was taken. "Below is a statement of the condition of the bank at the close of business November 15, 1930. "In our opinion all depositors will be paid in full." The statement was signed by the following: A. B. R. L. Deal, vice president; J. W. Clopton, S. C. Moore, J. A. Hudson, V. Solomon, A. L. Wells, C. C. Agee, and G. Burke The official statement of the condition of the bank at the close of business Saturday was as follows: Assets Loans and discounts, $662,583.39. Overdrafts, $191.22. Bonds and securities, $72,306.80. Real Estate, $33,057.03 Furniture and fixtures, $4,400. Cash and exchange, $148,201.96. Total, $920,800.40. Liabilities Capital stock, $150,000. Surplus, $30,000. Unidivided profits, $13,946.81. Bills payable, none. Deposits, $726,853.59. Total, $920,800.40.

8. November 18, 1930 Evening Star Washington, DC

Article from Evening Star, November 18, 1930

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# 39 ARKANSAS BANKS CLOSED. Tennessee, Missouri and Illinois Institutions Suspend Payments. By the Associated Press. Approximately 39 banks in Arkansas Monday suspended payments to depositors for five days and two other small banks were closed for liquidation, while during the last two weeks four Tennessee banks have closed. Five Illinois banks have closed since Saturday. Four small banks in Missouri closed Monday. An optimistic view of the Tennessee situation was taken by D. D. Robertson, Tennessee superintendent of banks, who said "our banking troubles are over." Directors of the American Exchange Trust Co. of Little Rock, largest of the suspended Arkansas banks, said in their opinion the bank was solvent and with the "co-operation of our depositors a plan can be found to resume operations." Most of the suspended Arkansas banks were affiliated with A. B. Banks & Co., which was associated with the American Exchange Trust Co. With the exception of three, all were comparatively small. The three were the American-Exchange, the Merchants & Planters Trust Co., Pine Bluff, and the Merchants & Planters Bank of Helena. Directors of the American Exchange Trust Co. attributed the closing to public hysteria resulting from the placing of Caldwell & Co., Nashville, Tenn., investment bankers, in receivership November 7. A directors' statement said "the affairs of Caldwell & Co. are remote from Arkansas and nothing but an excited public mind could have forced the closing of this strong bank." The American Exchange Trust Co. announced deposits of $15,014,589.41 on the date of the last bank call. The bank was capitalized at $1,000,000 and had a surplus of $500,000. The banks acted under an Arkansas State law which permits them at the end of five days to reopen or turn over their affairs to the State Banking Department. Officials of A. B. Banks & Co. expressed the belief that more than half the banks would reopen. The four banking houses which have closed in Tennessee during the last two

9. November 18, 1930 The Daily Sentinel-Tribune Bowling Green, OH

Article from The Daily Sentinel-Tribune, November 18, 1930

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Blame Public Hysteria For Closing of Doors LITTLE ROCK, Ark., Nov. hysteria" was blamed day for 39 Arkansas banks suspending business for five-day period Four other banking houses closed for reorganization liquidation. The five day suspenesion mitted under state law. A majority the 39 banks taking advantage the act were affiliated through B. Banks and company of Rock. The combined deposits, including those of change Trust company of Litle Rock given as more than September. Board members of the American Exchange Bank, largest banking institution in the state, said they were forced to suspend payments due hysteria which followed receiverof Caldwell and Company, Nashville, Tenn., investment house. Heavy withdrawals yesterday forthe move, it was announced. Three banks in the group to close had deposits $18,000,000. They included the Merchants and PlantTrust company Pine the Merchants and Planters bank of Helena and the American Exchange. LOUISVILLE, Ky., Nov. 18. (INS) -Business was suspended at eight Kentucky banks having resources of Among them was the National Bank of Kentucky old stitution for which named by the Federal Controldepartment. The Louisville Trust company and the Security Bank closed their doors precautionary measure, accordto the directors. Both tutions are solvent. directors said. Other institutions to suspend business were the American tual Savings Bank and the First bank, both clearing thru the LoLuisville Trust company; the Bank of St. Helens, Louisville suburb; the bank and Trust Company of Franklin. and the First National Horse Cave. CINCINNATI, Nov. 18. (INS)The Cincinnati Clearing House Association today took over control of the Bank and Trust the Brighton Bank company and and Trust company. The association, taking over the two financial institutions, announced that it had bought the holdings of certain interests, outside in the two banks The seven signing the declared they standing behind the and Brighton institutions. The transfer of control over the two banks to the clearing house followed "runs' which sociation were attributed to the suspension institutions in Kentucky which sequel to the closturn. was the National Bank of of This latter bank corresfor number of banking pondent houses in the Bluegrass through holding company linked to the others. two banks in Covington, Ky., across the Ohio river from experienced heavy as they opened for soon this They were the and the Central of which, like the Brighton banks in relations with the National Bank of Kentucky. Other banking institutions of Covington announced that they standing behind the Peoples and the Central Savings Banks. The statement of the clearing house association members the signatures of offimade over of seven Cincinnati banks. were: The First National Bank, the Second National Bank. bank, the Lincoln National the Atlas National Bank, the Provident Savings Bank and Trust company and the Western Bank and Trust company.

10. November 21, 1930 The Birmingham Post Birmingham, AL

Article from The Birmingham Post, November 21, 1930

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Arkansas Institutions ReAffairs arrange Ark., Nov. 21. LITTLE Resumption of business Arkansas banks which number suspended operations likely today following appeared conference here. Most cheerful of reports the word that American change Trust Co. of Little Rock whose suspension precipitated the temporary closing of 34 outstate banks which Co. interested. expected business reopen Yesterday, two day conference, officials the bank indicated would impossible to open the bank they not when saying plans would be reorganization complete. Banks in which the B. Banks company were and which failed or are gradually re-organizing themAt Helena, in eastern Arkansas citizens operated bank officers and they plan open national bank take over assets of the Merchants and Planters which Monday with deposits reopening of the First State bank is being con sidered. PARIS, Tenn. Nov. first State Bank Trust Co., one the oldest Paris banks, failed open doors morning following the steady withdrawal accounts amounting more than $200,000 during the past two weeks financial unrest that has Tennessee. RALEIGH, N. Nov. Closing of eight western North Carolina banks to the number financial institutions which halted operations this state this year. State bank officials attributed Thursday's developments to collapse of the real estate boom of 1926. The insitutions were Asheville, Hendersonville and vicinity.

11. November 21, 1930 The Knoxville News-Sentinel Knoxville, TN

Article from The Knoxville News-Sentinel, November 21, 1930

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BANKS CLOSED IN TWO American National of Asheville Fails to Open for Business Today. United of the American National Bank of Asheville, Citizens Bank Bryson City which merge with Bryson City Bank and with the Bryson City Bank day brought to 10 the total number of banks closed in North Carolina since Thursday morning. These three banks closed today. Ten of the institutions are Western North Carolina. The other one, the Bank of Lowell, located in Gaston County. Its fallconnected with that of the banks in the Asheville district. While considerable money was brought in aid the American National Bank here, its directors decided late last night that was sufficient justify opening today face probable tracted withdrawals. Jenkins, president and state textile mill operator, made effort to prevent closing down, pledging personal fortune several million dollars. The however, did not feel rectors, justified in accepting his sonal money. To Aid Rebuilding mass meeting of 1000 citizens last night pledged their personal means toward rebuilding the lossand fostering confidence in the financial structure Western North Carolina. similar meeting at Brevard took the same action. The American National Bank capitalized and has deposits of approximately $2,000,State bank officials attributed Thursday's developments to collapse of the real estate boom of 1926. List Given The other institutions involved. their last posted assets and liabilities: Central Bank Trust Asheville, resources deposits First Bank Trust Hendersonville, resources deposits, American Bank Trust Co., Hendersonville, resources deposits, Bank, Asheville, resources deposits, Bank of Liecester, resources $224,640; deposits, Clay County Bank. Hayesville, resources $78,075; Bank Lowell, Lowell, resources $139,188; Citizens Natitonal Bank, Hendersonville, capital and surplus deposits Closed First The Central Bank Trust Co. closed first after series heavy withdrawals. Others felt the feet and followed Still other banks buttressed their business with Federal Reserve funds. One consolidation occurred at Asheville. John Mitchell, chief state bank examiner. issued statement declaring the failures were due to the collapse of real estate boom in western North Carolina, and asserting there no cause whatever alarm about stability of other banks. Prior to yesterday, 27 state banks closed this year, six reopening for business. The last call showed 321 state banks and 84 branches in operation. POLICE GUARD BANK By guards were around the Central Bank Trust Co. building and the home of president, Wallace Davis, today, cautionary possible mob from angry positors and TO RESUME OPERATIONS LITTLE ROCK, tion business number Arkansas banks which suspended operations week appeared likely today following conference Most of reports word American Exchange Trust Little Rock, whose suspension precipitated temporary closing 34 out-state banks which the B. Banks Co. was interested, expected to reopen for business soon. Yesterday, following two-day conference, officials the bank indicated would be impossible to open the bank saying they could tell when reorganization plans would be complete. Banks in which the Banks Co. interested and which failed suspended are gradually reorganizing selves. At Helena in Eastern Arkansas, citizen's committee had cooperated with bank they plan open new bank take assets of the Merchants and Planters Bank, which suspended Monday with deposits Morrillton reopening of the First State Bank is being considered. CLOSE IN INDIANA Ind. Six Southern banks were closed today by voluntary action of their directors, the State Banking announced Officials of the department said the closings resulted from disturbed banking conditions in Louisville, The closed institutions were the New Albany Liberty State Bank, the Bank Trust New the Crawford

12. January 2, 1931 Hope Star Hope, AR

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Last Helena Bank Closes on Friday Phillips County Without Bank-New National to Open, However HELENA (A) Phillips county was without bank Friday morning when Insterstate National bank, asked he federal comptroller to take charge the Bank of Marvell this was turned over to the state banking commissioner the latter bank days. The Interstate National notified Helena depositors that it had closed for their own protection. The only other bank in Helena, the Merchants & Planters, was closed November 17 along with the suspension of the American Exchange at Little Rock. A. B. Banks was president of the Merchants & Planters. The Bank of Marvell had deposits of $200,000, capital of $50,000, and surplus of $10,000. The Interstate National had deposits if $1,700,000 and capital of $250,000. Plans,for the reorganization of the Merchants and Planters, which has been closed for a month and a half. have been virutally completed. The federal comptroller has granted it new charter as a' pation bank and will be reopened as the Phillips Coun-