410. American Trust Company (Little Rock, AR)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
trust
Start Date
November 17, 1930
Location
Little Rock, Arkansas (34.746, -92.290)

Metadata

Model
gpt-5-mini
Short Digest
5f490d09c683083a

Response Measures

None

Description

Newspaper accounts from mid-November 1930 report heavy withdrawals (a run) at the American Trust Company in Little Rock that forced the bank to 'fail to open' and invoke the five-day suspension provision. State officials and the bank's executive committee worked to obtain support and reopen; articles on Nov 18–26 describe negotiations and reopenings. Cause is attributed to rumors/public excitement tied to the Caldwell receivership and associated wild rumors that precipitated withdrawals.

Events (3)
1. November 17, 1930 Run
Cause
Rumor Or Misinformation
Cause Details
Excessive withdrawals (over $4,000,000 in ten days) attributed to public excitement and wild rumors following the Caldwell receivership and related panic.
Measures
Bank posted notice that board declared it solvent and invoked Arkansas five-day suspension of payments; sought pledges of support and additional capital.
Newspaper Excerpt
Steady Run Blamed ... The American Trust Company, failed to open for business today ... the action forced by excessive withdrawals totaling more than $4,000,000 during the last ten
Source
newspapers
2. November 17, 1930 Suspension
Cause
Rumor Or Misinformation
Cause Details
Temporary suspension under state five-day rule in response to heavy withdrawals and panic sparked by rumors related to Caldwell & Co. receivership.
Newspaper Excerpt
The American Trust Company ... failed to open for business today. notice posted by officers ... to suspend for five days to depositors.
Source
newspapers
3. November 18, 1930 Reopening
Newspaper Excerpt
leaders struck note of optimism today as negotiations went forward for the opening of most of the 49 banks in Arkansas which have closed ... including American Trust Co., with view to reopening within the five day period or re-organizing and re-opening soon.
Source
newspapers

Newspaper Articles (6)
1. November 17, 1930 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, November 17, 1930

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Article Text

DOORS OF FOUR BANKS CLOSED 65 Millions Are Listed in Combined Resources: Others Shut. United LOUISVILLE Louisville Security bank and the American Mutual Savings bank, the latter operated doors today after the National Bank of Kentucky and the Louisville Trust Company failed for business. The Security bank was afffiliated with the National Bank, which over by the federal controller currency The Negro bank was affiliated with the Louisville Trust Company, which placed in the hands the state banking commissioner. The four banks combined list All solvent, it said that them and protect creditors, depositors concerned. Closing of banks was scribed financial circles outgrowth of rumors circulated following Caldwell Nashville, Tenn., largest investment house in the south Brown, president of National reiterated plans for group merger Caldwell abandoned the brokerage went into the hands receiver. Steady Run Blamed United LITTLE ROCK, Ark., Nov. The American Trust Company, failed to open for busihere today. notice posted by officers of the that the the its board of solvent and has to susfor five days to depositors. affiliated banks also closed. The of the institution. which and Sept. 24, had assets of $20,005,697, that the action forced "by excessive withdrawals totaling more than $4,000,000 during the last ten

2. November 17, 1930 Statesville Record and Landmark Statesville, NC
Article from Statesville Record and Landmark, November 17, 1930

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Article Text

30 BANKS SUSPEND Close Doors For Five Days to Determine Which Way They Attributed to lic Excitement. Little Rock, Ark., Nov. c'als Banks Company, Arkansas, financial institution, nounced today 30 banks the state with which the company filiated have suspended period five days. Eight other affiliated banks adthe company they were remaining open. Company officials said they had not heard today from eleven others the affiliation to what action they were taking. The the board of directors of the AmeriExchange Trust of Rock, largest bank to suspend payments and close for five days resulting in the temporary closing the others, the company Arkansas banking laws provide that bank might payments to depositors for days and open the of that period or be placed hands of the state banking department. three exceptions the banks closed are small institutions. Harrison, of the Banks and Company, he expected least" half of the banks will re-open. The temporary closing the American Trust Company attributed by the direcpublic from the placing of Caldwell and Company, bankers Nashville, Tenn., in receivership November

3. November 18, 1930 Moberly Monitor-Index and Moberly Evening Democrat Moberly, MO
Article from Moberly Monitor-Index and Moberly Evening Democrat, November 18, 1930

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Article Text

Expect to Open Most of Closed Arkansas Banks LITTLE ROCK, Ark. Nov. 18 leaders struck note of optimism today as negotiations went forward for the opening of most the 49 banks Arkansas which have closed suspended within the past two days. additional small institutions close. under five days' suspension law taken charge by the state banking detoday. One of these was the called banks group were most of those closing or yesterday after the Trust Little Rock suspended for days. Banks said he was conferring rapidly possible with of the including American Trust Co., with view to ening within the five day period or re-organizing and re-opening soon.

4. November 18, 1930 The Decatur Daily Decatur, AL
Article from The Decatur Daily, November 18, 1930

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Article Text

PLANS Public Support Institutions Is Requested RESUMPTION OF BUSINESS SET Optimism Again Throughout Dixie Section LITTLE ROCK, Ark., Nov. permeated statements of financial leaders they laid plans today to some of the banks which temporarily suspended or closed yesterday. The executive committee of the American Trust Co. here, largest and one of the oldest banks the state, which for five days, was employed upon plans to resume Closing of the American Exchange was followed by suspension of tivities by 42 other banks. the aggregiate deposits of which were more than Banks, president of the American Exchange, and controlling stockholders in the 42 other banks scattered over the state, said the boards directors were trying obtain pledges loyalty from their and supporting capital from danger run. Resumption of normal business by the banks, he would follow assurances to directors. Expressions of confidence in the general stability of the state's nancial structure were added Parnell and Senator Robinson to those of bankers. CO-RECEIVER Tenn., Nov. general agent the Central Railway, tered today upon his duties receiver for Caldwell Co., investment banking house. He and Lee Douglas, Nashville who was receiver last Thursday night, will enjoy equal authority. EIGHT ARE CLOSED LOUISVILLE Nov. Eight Kentucky institutions with than closed today The largest these was the NationBank of at Louisville, which was under the control of Paul Keyes, of the staff the conptroller of the Washington. Its resources proximate Directors the National Bank Kentucky said the suspension yesterday deemed necessary because "wild rumors" concerning its with its closing, two affiliated stitutions, the Louisville Trust pany and the Security bank, suspended operations. Their directors said they were solvent and that they were closed precautionary measure. three affiliated through tucky, holding company. Two small negro banks in Louisville, the American Mutual Savings bank and the First Standard bank, which cleared through the LouisTrust company, later closed. (Continued Page Seven)

5. November 26, 1930 Paragould Soliphone Paragould, AR
Article from Paragould Soliphone, November 26, 1930

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Article Text

Three Additional for Business Open Reopening Institutions Are Bank of Ozan, Bank of McNeil and Bank Of Stamps Little Nov. additional banks that last today bring to ten the number reopenings among the closed suspended banks during past week. Those reopening today The Bank Ozan, the Bank and the Bank of Stamps. The Little Rock, Nov. banks that suspended payments last week reported to the state Banking Department yesterday and teight 10 more not officially reported to resume operation yesterday or today. General improvement in banking conditions throughout Arkansas was noted. despite the suspension three additional banks yesterday. They are Bank of Maynard Maynard, the Cross County bank Wynne the Bank Glenwood Glenwood, to total capital approximately $9,000. The Cross County bank, the largest the three, was capitalized $60,000. Its deposits of September 24 amounted $560,000. Deposits the Bank Glenwood were said be $168.000 and the Bank of Maynard $85,000. Banks reported by the Banking Department as yesterday included the Bank of Waldo and the Peoples bank Waldo. The Bank Manila, the State Monette and the Viola State bank Deposits amounting to $10,000 were made at the Bank Manila during the first hours of business yesterday morning. Depositors have signed time certificates agreeing to withdraw their funds installments at Intervals of nine, 12 and 15 months. Other banks scheduled to reopen yesterday today were the Grant County bank at Sheridan, the Bradley County bank at Hermitage, the Bank Harrisburg, Citizens bank Bald Knob, the Bank of McNeil, Columbia county. and the Bank of Ozan, Hempstead county. Steps toward reorganization of many closed last week being taken yesterday, additional openings probably will be ported during the week, officials the state Banking Department three small banks that yesterday make total that have stopped payments closed for liquidation the American Trust Company of Little Rock shut its week. majority the banks that have closed affiliated through Banks John chief bank examtner the state Banking Department, yesterday with an inventory collateral held by the Exchange Trust Company R. W. Rightsell, vice president the American Exchange Trust Company and manager the mortgage department announced that perowing interests or principal on notes held by the department are pected to make payments promptly They will receive notes coupons. Persons owning real estate notes held by the mortgage loan department receive payments when collections made. Mr. Rightsell said. The will look after collections, partment and taxes affecting loans carried when the bank suspended, but no loans will be made. MORGAN HONORED Oxford, England, Nov. Morgan received his degree Doctor of Civil Laws, the honor conferred England's oldest university

6. January 3, 1931 The Atlanta Constitution Atlanta, GA
Article from The Atlanta Constitution, January 3, 1931

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Article Text

A. B. BANKS' SCHEDULE FILED WITH REFEREE ROCK. Jan. assets and liabilities B. Banks & in receivership, was filed today Joe Schneifederal referee Assets 853.36 were down liabilities of Included the assets were stocks worth $1,058 635 $210. due on open promissory notes and and $2,500 in estate. schedule listed $802,077 secured in secured and 764 due in The schedule listed creditors as National bank. New due $300,000 secured by to taling the Company $244,000. of 700 is secured: Interstate Company of New Orleans. Perry State and the J. G. Patillo Deposits banking tal majority of the stocks cluded in the company's schedule of assets banks. Stocks listed as assets of the company also include $98,000 the Lumber 000 in Arkansas Vancouver Lumber and in the Adams Newell Lumber Company, of Miss. The petition was filed in United States district here December following the failure during of about 90 banks in this which with the American Trust Company here, of which Mr. Banks