430. Bank of Knobel (Knobel, AR)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
November 19, 1930
Location
Knobel, Arkansas (36.320, -90.602)

Metadata

Model
gpt-5-mini
Short Digest
e6acd94e

Response Measures

None

Description

Bank of Knobel invoked the five-day suspension law on/around Nov 19, 1930 amid public hysteria after the closing of the American Exchange Trust Company. The bank then reopened by Nov 24–25, 1930. Cause is treated as contagion from other banks' failure/panic rather than a bank-specific insolvency or discrete misinformation event.

Events (2)
1. November 19, 1930 Suspension
Cause
Local Banks
Cause Details
Suspended under the five-day law amid public hysteria following the closing of the American Exchange Trust Company and related statewide bank closings; part of contagion of other banks' distress rather than a specific internal failure.
Newspaper Excerpt
Officers of Knobel Bank Joe Sellmyer president and Henry Sellmyer is cashier of the Bank Knobel, located Knobel, which suspended for five-day period about ten o'clock this morning.
Source
newspapers
2. November 24, 1930 Reopening
Newspaper Excerpt
Reopening of four banks suspended last week ... Those reopened were ... Bank of Knobel at Knobel. ... The State Banking Department said reports of additional banks reopening were expected later in the day.
Source
newspapers

Newspaper Articles (4)
1. November 19, 1930 Paragould Soliphone Paragould, AR
Article from Paragould Soliphone, November 19, 1930

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Article Text

MANY ARE NEAR HERE Financial Leaders of Arkansas Strike Optimistic Plans The Press Little Rock. Nov. nancial leaders struck an timistic note today as negotiations went forward for the re-opening of most of the 52 banks in the state which have closed or have suspended business during the past Nine additional small stitutions closed under the five-day suspension law or were taken over by the State department today, one of these being in the so-called B. Banks group. Banks Makes Statement Although the institutions are known the Banks group and Mr Banks stockholder in most of them, he explained that they were separate units and unaffiliated with American Company here. Mr. Banks is conferring as rapidly possible with the various other bank boards with the view to reopening within the five-day period or reorganizing. or reopening soon. Officials said that most of the banks closed meaon of "public hysteria" following the closing of the American Exchange Trust Company yesterday The banks suspending for five days were: the Bank Waldo in the Banks group, and the following independents: People's Bank of Waldo, the Citizens State Bank Monette the Bank of Knobel and the Bank of Manila. The Bank of Leachville, the Bank of Pollard and the Bank of Lepanto taken over by the State Banking department for liquidation. Senator Joe Robinson and Govcrnor Parnell confidence in the soundness of the state's financial structure and asked for public co-operation. Rock Clearing Association issued on the soundhess of the Little Rock banks. Officers of Knobel Bank Joe Sellmyer president and Henry Sellmyer is cashier of the Bank Knobel. located Knobel, which suspended for five-day period about ten o'clock this morning.

2. November 24, 1930 Brownsville Herald Brownsville, TX
Article from Brownsville Herald, November 24, 1930

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Article Text

FOUR ARKANSAS BANKS RE-OPEN LITTLE ROCK, Ark., Nov. 24.(P)-Reopening of four banks suspended last week and suspension for five days of three additional banks were reported to the State Banking Department today. Those reopened were the Peoples Bank at Waldo, Bank of Manila at Manila, Bank of Knobel at Knobel and The Citizen's State Bank at Monette. Those suspending were The Bank of Maryland at Maryland; Cross County Bank at Wynne, and Bank of Glenwood at Glenwood, all small institutions. The closing reported today brought to seventy the number which have suspended or closed for liquidation in the past week. Of these, five have reopened, including the four reported today. The other was the Arkansas National Bank at Heber Springs which resumed business last week after closing for two days, The State Banking Department said reports of additional banks reopening were expected later in the day, as several others were known to be prepared to resume business. The unprecedented number of bank closings in the last week followed suspension of the AmericanExchange Trust company of Little Rock. A. B. Banks, president of the American Exchange. or a company of which he is head, A. B. Banks and company. holds an interest in many of the other institutions which have closed.

3. November 25, 1930 The San Francisco Examiner San Francisco, CA
Article from The San Francisco Examiner, November 25, 1930

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Article Text

Five Arkansas Banks Reopen for Business LITTLE ROCK reopening five banks. suspended and the pension for five days three others, reported the State Banking Department today. Those reopened the Peoples Bank Waldo, the Bank of Bank of Knobel. the Citi State Bank Monette. and the Viola State Bank. Those suspended were the Bank Maynard. Cross County Bank Wynne. Bank of Glenwood. small institutions. Today's closings bring to seventy the number which have suspended. closed for liquidation, in Arkan during the last week.

4. November 25, 1930 The Commercial Appeal Memphis, TN
Article from The Commercial Appeal, November 25, 1930

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Article Text

SIX MORE ARKANSAS BANKS REOPEN DOORS Financial Situation Is Rapidly Clearing. -Suspension of three small banks today was offset by the reopening of six of those temporarily closed last week and consolidation of two operating institutions, the latter effective immediately Arthur T. Lewis, president of the National Bank of Fayetteville, an. nounced the First National had merged with the Arkansas Nation. al Bank. The new institution has assets of more than 000 exclusive of the First Savings Bank. owned by First National stock. holders. Banks opening today after five day were the Bank of Waldo and the Peoples Bank Waldo, at Waldo: Bank of Manila at Manila Bank of Knobel, at Knobel: Citizens State Bank at Monette, and Viola State Bank at Viola. John V. Hancock, cashier of the Citizens State Bank at Monette in his report to the state banking department said there was "sub. stantial of deposits upon reopening and that deposits today in excess of original withdrawals. Banks suspending for five days The Bank of Maynard. Maynard Cross County Bank, at Wynne, and the Bank of Glenwood. at Glenwood. Last week the Arkansas Nation al Bank at Heber Springs reopened after for two days Addition of the suspending banks today to the number of state institutions closed or suspended the past week The first was the hange Trust at Little Rock which was held responsible for the other Additional reopénings were expected as the legal five day suspension period expired. Many of the banks took advantage of the law to and avoid runs morning Cross County Bank. oldest banking institution in Cross County suspended payment of deposits for five days. Heavy withdrawals during the past 10 days made it necessary to payment in order to conserve the asets. According to statement of D. H. Hamilton, of the bank payment with legal reand the assets on hand should pay the depositors 100 per cent. The officers are R. Block. president: R. Martin, vice president: H. Hamilton, cashier, and C. J. Coffin, assistant cashier.