441. American Exchange (Little Rock, AR)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
November 15, 1930
Location
Little Rock, Arkansas (34.746, -92.290)

Metadata

Model
gpt-5-mini
Short Digest
87f15327

Response Measures

Full suspension, Books examined

Other: Clearing House Association withdrew a prior pledge to stem the run; indictments and criminal prosecutions followed.

Description

Contemporary articles report heavy withdrawals/runs preceding the bank's suspension (closed on/about Nov 15, 1930). Attempts to stem the run (clearing house pledge) were withdrawn; the bank did not resume normal operations and later legal actions/indictments followed, consistent with permanent closure/receivership. No explicit reopening is reported in these clippings. Bank type not specified in articles.

Events (3)
1. November 15, 1930 Run
Cause
Bank Specific Adverse Info
Cause Details
Steady withdrawals following receivership proceedings elsewhere and alleged improper loans to officers/directors; connection to A.B. Banks group increased depositor fear.
Measures
Little Rock Clearing House had previously issued a pledge to stem the run but later withdrew it; directors and stockholders sought pledges of loyalty and supporting capital to reassure depositors.
Newspaper Excerpt
the run which preceded the bank's suspension
Source
newspapers
2. November 15, 1930 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank suspended after heavy withdrawals and revelations/allegations that large portion of loans were to officers/directors and affiliated concerns; insolvency alleged in later reporting and indictment of management.
Newspaper Excerpt
it closed for their own protection ... suspended on last November 15, its last day of business.
Source
newspapers
3. * Receivership
Newspaper Excerpt
Hysteria following receivership proceedings ... was attributed by directors of the latter as the cause of steady withdrawals ... indictment upon which Mr. Banks is being tried ... the state would show Mr. Banks ... had used his power ... the indictment ... alleges he assented to acceptance of a deposit ... knowing the bank was insolvent. (summary from multiple clippings).
Source
newspapers

Newspaper Articles (12)
1. November 18, 1930 The Berkshire Eagle Pittsfield, MA
Article from The Berkshire Eagle, November 18, 1930

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PLAN REOPENING OF THE BANKS Continued from First Page banks in state, which for five with plans resume Closing of the American Exchange followed by of activiby the other banks, the aggregate deposits of which were more $27,000,000. Banks, president the in 42 other banks the said the trying obtain of loyalty from their and capital to assure freedom of danger from The Little Rock Clearing House statement the public that local banks were Hysteria following receivership proceedings against Caldwell and comTenn., bankers, recently interested in the American attributed by directors of the latter the cause steady which reached about $4,000,000.

2. November 18, 1930 The Huntsville Times Huntsville, AL
Article from The Huntsville Times, November 18, 1930

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ARKANSASANS Plans To Reopen Lay Banks Suspended Or Closed LITTLE ROCK, Nov. (AP) Optimism statements laid plans today reopen the or closed yesterday. of the The Exchange Trust Co., here largest the oldest the which suspended for employed upon plans to Closing of the American Exchange followed suspension activities by the other banks, the aggregate deposits of which were than Banks, president of the Amand stockholders 34 the 42 other banks over the state, said the boards of directors were trying obtain pledges of loyalty from: their and supporting capital from danger run. of normal business by the banks, he would follow such assurances to in the stability the state's financial by Governor Parnell Joe Robinson to those of bankers.

3. November 18, 1930 The Buffalo News Buffalo, NY
Article from The Buffalo News, November 18, 1930

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PLANS TO REOPEN BANKS BEING Confidence Expressed by Arkansas Financial Leaders in Statements. LITTLE ROCK Ark., Nov. 18 Optimism of financial leaders as they Arkansas laid plans today to reopen some banks which suspended temporarily of the and one of the oldest banks state. suspended five was engaged with plans for to resume operations Closing the American Exchange was followed by of activities by the gate of than president of the American stockholder 34 the 42 other banks scattered over the the boards directors trying to obtain pledges of loyalty from nitles and to assure of danger the general stability of state's financial structure by Gov Parnell and Senator Joe to those bankers. The Little Clearing House association statement sured the public local banks were Hysteria ceedings Co., recently terested in American was attributed by directors the latter the steady withdrawals & reached about Six Banks Close in Kentucky, All Are Declared Solvent LOUISVILLE Nov 18 U.N Six Kentucky two of them Negro-owned operated closed yesterday. that all that the of business protect the interest and The Bank of the Louisville Trust the American Mutual the Securities Bank the Standard and the McElwain & Mequiar Bank Trust company of Frankthe institutions the American Mutual and Standard banks Two Illinois Failures Bring Total to Five Since Friday SPRINGFIELD III. Nov number suspensions in Illinois to five yesterday more bankinstitutions State Auditor announced that the Bartlett Wallace State Clayton and the Timewell bank at Timewell had suspended connection with the failure the State Savings Loan Quincy The 000 and the bank

4. November 18, 1930 The Buffalo News Buffalo, NY
Article from The Buffalo News, November 18, 1930

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DIVIDENDS HELD SAFE BY ASSOCIATED GAS PLANS TO REOPEN BANKS BEING LAID Utility Holding Company Is Confidence Expressed by ArCreating New Class of kansas Financial Leaders Preference Stock. in Statements. By HILTON HORN ADAY. The Associated Gas & Electric Co., holding company operating and controlling extensive utility properties in Western New York. announced today that creating class cumulative stock. which is to be offered to of A stock on the basis one new preference share for two Class shares. The new stock is entitled dividends at rate of 84 annually, with extra dividends not exceeding Class stock of the company widely held of the company utilities the the market value of the stock, many stockholders are said to have feared the possibility of of regular priority The in letter to stockholders today, assures holders that the management believes dividends are safe. and that will be earned margin for the year 1930 The give Class who entertain to the future. on opportunity an investment less subject market fluctuations new stock being created. The regular dividend on the stock will be preferred over dividends on the Class B and will be the dividend the Class A stock is There are close to 4,000,000 shares of the Class stock outstanding. On the New York curb market. the stock currently quoted around 20. compared with a high for the year of 461/2 Government Buys Wheat re-entry of government agencies into the wheat pit development which being watched closely in grain circles in Buffalo The buying been carried by the Grain Stabilization corporation with the of wheat prices in futures market this country The buying sufficiently powerful Monday to keep the Chicago price wheat ten cents bushel higher than in Winnipeg In other words, prices in this country were put on purely domestic basis. This in wheat prices and who have followed the market are in seeing effective will be the government's preventing the price from going as in other countries Expert traders do not believe that this disparity in prices in the United with prices in and will continue for any of time Prices will seek their own levels, pointed because large interests will take the opportunity of buying heavily in the foreign markets and selling the higher prevailing on the Chicago Board of Trade LITTLE ROCK Ark., Nov. 18 Optimism expressed statements of Arkansas financial leaders as they Add cents laid plans reopen some 43 banks which suspended tempoThe of the Trust of the oldest suspended Nearby banks in the for five was engaged with plans Nearby to resume at Closing the American Exchange was by of activi- new ties by the banks, the aggreLonghorn gate of were more than FOWL A. B. Banks, president of the AmeriFair can and stockholder in 34 the 42 other banks scattered over the said the boards of directors were to obtain pledges of commu- 43-47 nities and supporting to assure 24 of run. Expressions of in the general stability of the state's financial each and structure Gov Parnell and Senator to those of bankers. The Little Rock Clearing and House by sured the public local banks were in sound Hysteria proceedings against Nashville. until recently terested in the American Exchange was attributed by directors of the latter as the which Six Banks Close in Kentucky, All Are Declared Solvent LOUISVILLE Ky. Nov. 18 (U.N Six Kentucky two of them gro-owned and closed yesterday that all that the of business was protect the interest of creditors and The National Bank of Kentucky the Louisville Trust the American Mutual bank. Securiand the of and the McElwain Me. quiar Bank company Frank. lin. the institutions affected Negroes the American Mutual and Standard banks Two Illinois Failures Bring Total to Five Since Friday The in Illinois Friday increased to five yesterday when more state institutions State that the Bartlett WalState Clayton and the Timewell at Timewell had suspended with the failure the State Savings Loan Trust company of The Timewell bank had deposits $150. and bank $500,000 Illinois Failure Causes 4 Missouri Banks to Close JEFFERSON 18 banks Northeast Misclosed their All the closings were direct the Twenty last week of the Savings Loan The institutions surplus funds the Illinois and closed to The The Downing State Schuyler of The Labell of Lewis deposits $203,000 The bank of La Grange Lewis county deposits of ARTICHOKES Rutledge Exchange bank of BEANS Scotland county deposits of BANKS CLOSES Nov the Bank of Scranton had deposits of approximately $400,000

5. January 2, 1931 Hope Star Hope, AR
Article from Hope Star, January 2, 1931

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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-

6. June 28, 1931 The Daily World Helena, AR
Article from The Daily World, June 28, 1931

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LOCAL CLUB HAS HARD SCHEDULE FOR THIS WEEK SEAPORTERS PLAY SIX GAMES IN AT PONTOTOC JULY THIRD AND FOURTH *Beginning with the Blytheville game today the Seaporters play six games in eight days against some of the strongest teams in the tristates. Wednesday and Thursday the strong Dumas Independents will be here for a pair. Then, Friday and Saturday the locals go to Pontotoc, Miss., to oppose the Artesia nine. These games will be in the nature of affair owing to the fact that practically the entire personnel of the Seaporter roster played part of last season Pontotoc. Sunday the fifth the fast Buntyn, Tenn., team will invade Fairgrounds for a single game, Buntyn has poison in these parts having won thirteen and lost but two contests this season. This afternoon's game starts at three-thirty. McDuffy and Berry will be the locals battery with Gore and Bettison a probability for the visitors. For lubricating line shafts on railroad cars and automibiles, pump is being produced that brings up the oil by suction. A vise operated by a foot release leaves both hands of the bench worker free to manipulate his material. on last November 15, its last day of business. For the state, Prosecuting Attorney Carl Haley said evidence would show fully half of the $12.000,000 in loans of the American Exchange were to officers and directors and their interests, and largely because of this, it was inBalley said the state would show Mr. Banks, as president of the American Exchange, had used his power to set up a "succession of leaning towers,' by which he described the various financial enterprises of Mr. Banks. He said the collapse of one sent all crashing45 affiliated banks, two insurance companies and other interests. The indictment upon which Mr. Banks is being tried alleges he assented to acceptance of a deposit of $672.15 on last November 15, knowing the bank was insolvent. Senator Robinson asserted the defense would show the American Exchange had on hand $2,500,000 the day it closed, and it would have reopened had not the Little Rock Clearing House Association withdrawn a pledge it previously had issued to stem a run which preceded the bank's suspension. In his statement, Bailey asserted he was the prime mover behind the investigation which resulted in the indictment, and that "sinister influences" had played no part in his decision to Investigate. Senator Robinson's statement was largely a tribute to Mr. Banks' 50 years as a business man in Arkansas. "Mr. Banks staked eyery dollar he had to keep that bank open, Senator Robinson said, "and by it, he and his family were impoverish- the even have did not Mr. Banks ed. for counsel. to pay money

7. July 5, 1931 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, July 5, 1931

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ARKANSAS FINANCIAL LEADERS OPTIMISTIC LITTLE ROCK, Ark., Nov. (/P). -Optimism was expressed in statements financial leaders laid plans today to reopen some banks which have suspended temporarily closed. The committee of the Exchange Trust company here, largest and the oldest banks state, which suspended for engaged with plans to resume Closing the American exchange by suspension of activities by the 42 banks, the a.g. of which were more than $27,000,000. Banks, of the the other over the said the directors trying obtain loyalty from their supporting capital assure freedom of danger from Expressions of confidence in the general stability of the state's finanGoverand inson those bankers. The Little Rock Clearing by condition. Hysteria following receivership proceedings against Caldwell and bankers, erican Exchange, was directors of the latter as the cause steady which reached about $4,000,000.

8. July 7, 1931 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, July 7, 1931

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ARKANSAS FINANCIAL LEADERS OPTIMISTIC LITTLE ROCK, Ark., Nov. (/P). -Optimism was expressed in statements financial leaders laid plans today to reopen some banks which have suspended temporarily closed. The committee of the Exchange Trust company here, largest and the oldest banks state, which suspended for engaged with plans to resume Closing the American exchange by suspension of activities by the 42 banks, the a.g. of which were more than $27,000,000. Banks, of the the other over the said the directors trying obtain loyalty from their supporting capital assure freedom of danger from Expressions of confidence in the general stability of the state's finanGoverand inson those bankers. The Little Rock Clearing by condition. Hysteria following receivership proceedings against Caldwell and bankers, erican Exchange, was directors of the latter as the cause steady which reached about $4,000,000.

9. July 7, 1931 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, July 7, 1931

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ARKANSAS FINANCIAL LEADERS OPTIMISTIC LITTLE ROCK, Ark., Nov. (/P). -Optimism was expressed in statements financial leaders laid plans today to reopen some banks which have suspended temporarily closed. The committee of the Exchange Trust company here, largest and the oldest banks state, which suspended for engaged with plans to resume Closing the American exchange by suspension of activities by the 42 banks, the a.g. of which were more than $27,000,000. Banks, of the the other over the said the directors trying obtain loyalty from their supporting capital assure freedom of danger from Expressions of confidence in the general stability of the state's finanGoverand inson those bankers. The Little Rock Clearing by condition. Hysteria following receivership proceedings against Caldwell and bankers, erican Exchange, was directors of the latter as the cause steady which reached about $4,000,000.

10. July 7, 1931 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, July 7, 1931

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ARKANSAS FINANCIAL LEADERS OPTIMISTIC LITTLE ROCK, Ark., Nov. (/P). -Optimism was expressed in statements financial leaders laid plans today to reopen some banks which have suspended temporarily closed. The committee of the Exchange Trust company here, largest and the oldest banks state, which suspended for engaged with plans to resume Closing the American exchange by suspension of activities by the 42 banks, the a.g. of which were more than $27,000,000. Banks, of the the other over the said the directors trying obtain loyalty from their supporting capital assure freedom of danger from Expressions of confidence in the general stability of the state's finanGoverand inson those bankers. The Little Rock Clearing by condition. Hysteria following receivership proceedings against Caldwell and bankers, erican Exchange, was directors of the latter as the cause steady which reached about $4,000,000.

11. September 2, 1931 The State Journal Frankfort, KY
Article from The State Journal, September 2, 1931

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FLEES TO CANADA SAYS NOTE LEFT ON CLOSED BANK Manages Nine Financial Institutions In State of Arkansas DEPOSITS TOTAL $2,000,000 Farmers Go to One of Banks and Demand Their Deposits HARRISON. Ark., Sept. (By A. P.) search for A. T. Hud speth. prominent Arkansas instituted today after nine of his banks closed following receipt of letter from him addressed "To the Public." assuming blame for the clos ngs and saying that "when this is in print. I'll be in Canada." A warant of arrest charging Hud speth with acceptance of deposits nowing his banks to be insolvent was ssued by Prosecuting Attorney Jack Holt, who also sought a special grand session to probe activities of Closing of the banks left two north Arkansas counties without banking facilities. Deposits of the nine institutions were slightly more than $2.- All closed last November following runs which bank officials said were brought about by Hudspeth's connection with the A. B. banks group. Hudspeth was a director in the state's largest bank the American Exchange it Little'Reck- the closing of which was followed by the suspension or Hosing of 146 other banks in Arizan The nine institutions (Continued On Page Three)

12. September 2, 1931 The Atlanta Constitution Atlanta, GA
Article from The Atlanta Constitution, September 2, 1931

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SEARCH IS INSTITUTED MISSING BANKER HARRISON, Ark., Sept. A nationwide T. Hudspeth. prominent Arkansas financier, was instituted today after nine of his banks closed following receipt letter from the Public, blame the closings and saying this is in warrant of arrest charging Hud. speth with acceptance deposits, knowing banks to be insolvent. by Prosecuting Attorney Jack Holt, sought special jury to probe activities of Hudspeth. Closing the banks left two north Arkansas counties without banking facilities. Deposits of the nine institutions were slightly more than $2,000,000. The banks closed were: Citizens Bank and Peoples Savings both of son First Marshall Citizens bank, American Exchange. Bank Pass: Bank of Lead Hill, Lead Hill: Bank Arkansas, ton, and the Bank Flippin, at FlipAll closed last November following which officials brought about by Hudspeth's the B. Banks group. Hudspeth was director in state's American Exchange Little closing of which was by of 146 banking institutions Arkansas. The nine tutions involved today reopened during the last months. Hudspeth's assumed blame condition of his banks, 'although tried hard letter he had $100,000 his home here to for benefit depositors. that affairs properly managed "the banks will pay dollar owed. cannot express my feelings.' the continued. only life out, my folks and quite my friends will affected years to come. Canada before this is in print, but Harrison will never my mind well as the places in which interested. Holt said he did not believe Hudspeth had gone to He police many cities, to the search. most of the banks in this involved. Holt said there was much "expression of resentment against Hudspeth. Besides his banking Hudspeth in many busiof this H. Daugherty. examiner from the state took charge the institutions. pending arrival of other officials from Little Rock.