443. American Exchange Trust Company (Little Rock, AR)

Bank Information

Episode Type: Run → Suspension → Unsure
Bank Type: state
Start Date: November 10, 1930
Location: Little Rock, Arkansas (34.746, -92.290)

Metadata

Model: gpt-5-mini
Short Digest: bdb4949b

Response Measures

Partial suspension

Description

Articles report a heavy withdrawal (~$4,000,000) from the American Exchange Trust Co. after the receivership/failure of Caldwell & Company, prompting the bank to suspend payments and close for the five-day period allowed by Arkansas law (Nov. 1930). Many pieces state banks were expected to reopen; a reorganization proposal for the American Exchange was filed Jan 27, 1931, but no article in the set clearly states the bank fully resumed normal operations prior to later legal troubles of its president. Thus suspension following a run is clear but final outcome (permanent closure vs successful reopening) is ambiguous.

Events (3)

1. November 10, 1930 Run

Cause: Correspondent
Cause Details: Heavy withdrawals attributed to 'hysteria' following receivership/failure of Caldwell & Company (an investment/correspondent interest formerly connected to the Exchange).
Measures: Bank invoked protective suspension; closed for the five-day period permitted by Arkansas law to protect depositors.
Newspaper Excerpt: withdrawals of $4,000,000 from the American Exchange Trust Company within 10 days
Source: newspapers

2. November 17, 1930 Suspension

Cause: Correspondent
Cause Details: Directors attributed the temporary closing to public 'hysteria' and steady withdrawals following the receivership of Caldwell & Company (an affiliated/investment concern).
Newspaper Excerpt: the decision of the board of directors of the American Exchange Trust Company ... suspend payments and close for five days
Source: newspapers

3. January 27, 1931 Other

Newspaper Excerpt: reorganization proposal filed with [state banking commissioner] by a depositors committee of the closed institution; plan for reorganization and opening of the American Exchange Trust Company was being arranged for acceptance and opening of a new bank was discussed in the proposal on Jan. 27, 1931.
Source: newspapers

Newspaper Articles (20)

1. November 17, 1930 Statesville Record and Landmark Statesville, NC

Article from Statesville Record and Landmark, November 17, 1930

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30 SUSPEND Close Doors For Five Days to DeWhich Way They Are Attributed to Public Excitement. Little Rock, Nov. of Banks Company, Arkansas, financial institution, nounced today that 30 banks in the state with which the company filiated have depositors for period five Eight other affiliated banks the they were company open. Company officials said they had not heard early today from eleven others the affiliation what were taking. The decision the board of directors of the AmeriExchange Trust Company, of Rock, largest bank in the suspend payments and close for five days resulting the closing the others, the company announced. Arkansas banking laws provide that bank might payments to depositors for five days and open the end of that period be placed the hands of the state banking department. three exceptions the banks closed are small insticomparatively tutions. Harrison, of the Banks and Company, said he half the banks will The temporary closing the American Exchange Trust Company was attributed by public from the placing Caldwell and Company, investment bankers of Nashville, Tenn., in receivership ember

2. November 18, 1930 The Vicksburg Post Vicksburg, MS

Article from The Vicksburg Post, November 18, 1930

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LEADERS HOPE BANKS Optimism Is Prevalent in Arkansas Financial Situation. SEEK OF THE GENERAL PUBLIC Little Rock Banker Reveals Plans to Return Normalcy. LITTLE ROCK, Ark., Nov. permeated statements Optimism Arkansas financial leaders they plans today reopen some banks which temsuspended or closed yesporarily terday. The executive committee of the American Exchange Trust Comhere, largest and one the pany oldest banks in state which together other banks, the aggregate deposits which were more than Banks, president of the Exchange, and controlling stockholder in of the other banks scattered over state, said the boards directors were trying to obtain pledges loyalty from their communities and capital to assure freedom of danger from run. Resumption of normal business the banks, he said, would folsuch to directors. of stability by assured the public that local are in sound have cash resources relatively small amount bills payable. Hysteria receiver proceedings interested of Caldwell and Company, Nashville, Tenn., bankuntil the American Exchange tributed by directors the latter the cause steady which reached about $4,000,000. The American Exchange Bank's capital was with deposits about as the last bank call in September. CLOSED IN KENTUCKY LOUISVILLE, Ky., Nov. Eight Kentucky financial institutions with resources totalling more than $75,000,000 were closed today. The largest of these the National Bank of Kentucky at Louisville, which was under the control Keyes, the staff of the comptroller the at Its Directors the Bank Kentucky the yesterday deemed necessary because of. "wild concerning its condition. Simultaneously with closing, two affilLouisville Trust Company and the Security Bank, suspended operations. Their directors they were solvent and that they were closed precautionary measure. three institutions affiliated through the holding company Negro Banks Close Two small negro banks Louisthe Mutual Bank and the First Standard Bank. which through the LouisTrust closed. The Bank of St. Helens, Louisville suburb, suspended as precautionary Two banks outside Louisville also closed when it was learned the National Bank of Kentucky suspended. They were the McElwain Meguiar Bank and Trust Company Franklin, and the First National Bank Horse Cave, Ky. The National Bank Kentucky served as correspondent for both. Officers of other leading Louisville statements last night depositors were than als, reported new accounts were opened during the day, and reiterated earlier that the institutions were solvent.

3. November 18, 1930 Imperial Valley Press El Centro, CA

Article from Imperial Valley Press, November 18, 1930

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BANKERS EXPLAIN CLOSING Action Taken As Protection Of Depositors And Will Reopen Soon. LEADER OPTIMISTIC Plan Reorganization And Adjustment During Period Of Suspension. By United Press The closing of 59 banks in contral and south central states generally was considered by leading financiers today as a measure for protection of depositors and predictions were that most of the banks would reopen when their boards were assured the institutions were free from danger of runs. In Arkansas, where 39 banks suspended business temporarily yesterday and four others were closed by the state, an optimistic statement was issued last night by A. B. Banks, president of the American Exchange Trust Company, Little Rock's largest bank. Two other small Arkansas banks closed today on order of the state banking department and a third member of the Banks company, announced it has suspended for five days. Banks, who is a heavy stockholder in outstate Arkansas banks, said he was conferring with local boards and predicted an early resumption of normal business. The recent failure of Caldwell & Company of Nashville, Tenn. was blamed by Senator Joseph T. Robinson for the temporary closing of the Arkansas institutions, while in Missouri and Illinois the closing of six small institutions was considered due upon the previous closing of larger banks. Hysteria Prevails Robinson said the Caldwell & Company failure had created "hysteria" which resulted in withdrawals of $4,000,000 from the American Exchange Company within 10 days and made necessary the temporary closing to protect depositors. Most of the other Arkansas banks which closed were affiliated with the American Exchange Trust, which was the first to close. The Arkansas banking laws provide that an institution may be closed for five days for reorganiation and adjustment and the banks. it was said. took advantage of this law to remove danger of runs until the "hysteria" Robinson spoke of had passed. Besides the 39 banks in Arkansas. six banks were closed yesterday in Kentucky, four in Missouri, two in Illinois and one in Iowa. In practically all cases. it was emphasized that the banks were solvent and that the closings were protective rather than forced actions.

4. November 18, 1930 New Britain Herald New Britain, CT

Article from New Britain Herald, November 18, 1930

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PLAN TO REOPEN ARKANSAS BANKS Governor Issues Expression of Confidence in Financial Stability Little Rock. Ark. Nov. 18 (AP) Optimism was expressed in statements of Arkansas financial leaders as they laid plans today to reopen some 43 banks which have suspended temporarily or closed. The executive committee of the American Exchange Trust company here, largest and one of the oldest banks in the state, which suspended for five days, was engaged with plans to resume operations. Closing of the American Exchange was followed by suspension of activities by the 42 other banks, the aggregate deposits of which were more than $27,000,000. Seek to Avert Run A. B. Banks, president of the American Exchange, and controlling stockholder in 34 of the 42 other banks scattered over the state, said the boards of directors were trying to obtain pledges of loyalty from their communities and supporting capital to assure freedom of danger from a run. Expressions of confidence in the general ability of the state's financial structure were added by Governor Parnell and Senator Joe T. Robinson to those of bankers. The Little Rock Clearing House association by a statement assured the public that local banks were in sound condition. Hysteria following receivership proceedings against Caldwell and Company, Nashville, Tenn., bankers, until recently interested in the American Exchange, was attributed by directors of the latter as the cause of steady withdrawals which reached about $4,000,000.

5. November 18, 1930 Springfield Leader and Press Springfield, MO

Article from Springfield Leader and Press, November 18, 1930

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CLOSED BANKS TO BE OPPENED Resumption of Normal Business Predicted by Head of Arkansas Chain By International Service LITTLE ROCK, Ark., Nov. 18All of the banks included in the A B. Banks company chain that closed here yesterday for five-day period are solvent and will reopen soon. A. B. Banks. president of the American Exchange Trust company of Little Rock. the largest bank to close, said Of the 43 banks closed 34 are of the A. B. Banks chain. The others are private banks. three of which were closed by the state banking department Normaley Predicted An early resumption of normal business was predicted by Banks who said he was conferring with local boards of the A. B. Banks chain here. Total deposits of 000,000 are involved in the closing of the institutions, which is permitted under state law for the five-day period. The first bank to close yesterday was the American Exchange Trust company. This action was taken, officials said. to protect the interests of depositors, and followed 4,000,000 run on the bank. With the of the "closing of the American Exchange Trust company other banks of the A. B. Banks chain followed suit until the closings assumed wholesale proportions, including the private banks that closed. Asks Public Calmness The Little Rock Clearing House association lent an optimistic outlook to the situation in statement that asked the public to remain calm, assuring that the closed banks are in sound condition and predicting reopening of the institutions Banks in statement to depositors said the banks are preparing to withstand a possible run when reopened, but said he did not believe the anticipated runs would mate"Public hysteria," due to the failtire of Caldwell and company, Nashwas blamed by the United States Senator Joseph T. Robinson for the temporary closing of the banks When the "hysteria" has passed. bank officials said. return to normal business by the closed institutions will come about

6. November 18, 1930 Evening Herald Courier Bristol, TN

Article from Evening Herald Courier, November 18, 1930

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ARKANSAS CLOSED BANKS Executive Committee Of American Exchange Trust Company Employed Upon Plans To Resume Operations Ark. Nov Optimism permented state. ments of Arkansas financial leaders they laid plans today to reopen the banks which term porarily suspended closed yester The executive committee of the Exchange Trust Company here, largest and the oldest banks the state which suspend for days, was employed upplans resume operations Closing the American Ex. change followed by suspension activities the other banks, the aggregate deposits which more than Banks, president of the American and stockholder the other banks over the state, said the boards were trying to obtain pledges loyalty from their and supporting capital to assure freedom of danger from Resumption of normal business the banks he said, would follow directors Expressions confidence in the stability the state's andial were added by Governor Parnell and Senator Robinson those bankers The Little Rock Clearing House Association statement assured the public local banks are sound condition, have large cash sources relatively small amount payable. Hysteria following receivership proceedings against Caldwell and until recently interested In the American Exchange, was attributed by directors the latter the cause steady withdrawals which reached about $4,000,000 The Exchange's capital $1,500,000. with deposits about $17,000,000 as of the last bank call. BROOKLYN POLICE HAVE MEMPHIS, Nov. CANDIDATE FOR "MEANEST Robert Haverty, World War aviator, MAN" has the new 105th squadron NEW YORK, Nov. the National Guard, Brooklyn police have candidate which be removed from Nashfor the title of the "meanest man." ville He is Ethward Brownell, 45, who The was announced arrested yesterday charge W. Boyd. swindling poor families in who came here to confer with the coach racket. Posing as an agent Memphis and city the Brooklyn bureau char cials. Boyd said the aquad itles, police said, Brownell took ron will be removed here within ten orders and advance payments for days. coal at bargain prices, promising the head the house job for REDS INVESTIGATING BODY good measure, and failed to make TO MEMPHIS deliveries. MEMPHIS, Nov. Brownell, who said he used formation there no effective jobless himself, gets communistle activity here awaited hearing today. members of the congressional committee investigating this country's LEVINE HELD AS SUSPECTED Reds. IN VIENNA VIENNA, Nov. 18-(UP) Charles Levine, Europe his flight with Clarence D. Chamberlin in 1927. was held suspected counter here today Levine was arreated Semmering as was board train for Venice. Italy, police said. was alleged that he had visited better for engraver whom he offered large sums for the French coins. The engraver reportthe incident the police, and also was arrested. According Levine shadowed for several days at Semmering fashionable Austrian watering place. He came with CUTICURA IS police said, and visited the SOLD AT vine then arrested and sep. his

7. November 18, 1930 Kingsport Times Kingsport, TN

Article from Kingsport Times, November 18, 1930

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TO ARKANSAS BANKS Optimism permeated Arkansas financial leaders as they plans today some of the 43 banks to reopen which temporarily suspended closed The executive committee of the American Exchange Trust Company here, largest and one of the oldest banks in the state which suspended for five days, was employed upon plans to resume erations. Closing of the American Exchange was followed by suspension of activities by the 42 other banks, the aggregate deposits of which more than 000. B. Banks, president of the American Exchange, and controliing stockholder in 34 of the 42 other banks scattered over the state, said the boards of directors trying to obtain pledges of loyalty from their communities and supporting capital to assure freedom of danger from run. Resumption of normal business by the banks, he said, would folsuch assurances to directors. Expressions of confidence in the general stability of the state's financial structure were added Governor Parnell and Senator Joe T. Robinson to those of bankers. The Little Rock clearing house association by a statement assured the public that local banks are in sound condition, have large cash resources and latively small amount of bills payable. following receivership proceedings against Caldwell and company, Nashville: Tenn., bankuntil recently interested in the American Exchange, was attributed by directors of the latter as the cause of steady withdrawals which reached about 000,000. The American Exchange's capital was $1,500,000, with deposits about $17,000,600 as of the last bank call. Mr. Banks said the banks side Little Rock which closed independent units in affiliated with the American Exchange Trust Company, "although Mr. Banks president of the Little Rock institution. know the people of these towns are gravely interested to know when the banks will be reopened," he added. "That will be determined by the local boards with whom am conferring as rapidly as possible."

8. November 18, 1930 Montpelier Evening Argus Montpelier, VT

Article from Montpelier Evening Argus, November 18, 1930

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RE-ORGANIZING BANKS Little Rock, Nov. timism was expressed in statements Arkansas financial leaders as they plans today to re-open some banks which have suspended temporarily closed. The executive committee of American Exchange Trust company here, largest and one of the oldest banks the state, which suspended for five days, was engaged with plans resume operations.

9. November 18, 1930 The Fresno Bee Fresno, CA

Article from The Fresno Bee, November 18, 1930

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CENTRAL STATES BANKS REOPEN, ASSERTSOFFICIALS products. Seven food product companies were acquired in 1929. It makes paint and varnish, chemicals and pigments, and food. The first two classes are sold to building. automobiles, radio, railway equip and 5.40 in doz 1st. 1929 Oranges lug seasor date value 16th sales Natures ANGELES Lindsay Blue 4.60 fruit. Lemons East 12 Navels Good Lemons TRACTOR'S FIRST SHIPMENT SAN FRANCISCO, Nov. first shipment of the new $5,000,000 order for Russian farm equipment required twenty-two cars. SHARES CALLED IN SAN FRANCISCO, Nov. 18.-(P) Airplane stockholders have been requested to turn in shares to the Security First National Bank of Los Angeles, to receive in exchange shares of the Kinner Airplane and Motor Corporation, Ltd., no par The new company will have 199,934 shares after the of the 100,000 per shares, on tenfor-one basis. Fractional shares of the new concern will not be issued. STEEL INQUIRIES REVIVE Pacific Coast inquiries for steel are reported showing some revival. Prospect held out for a gradual recovery from the longdemoralized condition RESERVE LOANS INCREASE Loans and investments of prin cipal banks of the twelfth 000 during the week The gain was entirely in the banks own use of funds of which $5,000. 000 went securi ties and $7,000,000 into other legal bank AIR FIRM REPORTS DEFICIT LOS Nov. A deficit of $101,313 after deprecia tion and taxes for the nine months of 1930 against net operating deficit of $2,224 year ago was re ported by the Kinner Airplane and Motor Corporation. Including the operating loss carried over from last year. the company had deficit as of September 30th 1930 of $140,877 Stockholders were being advised to deposit shares for conversion into the new $10 par value stock issue, the exchange basis being one share of new stock for each ten shares of old stock which was on a $1 par value FRUIT MARKETS (B)/ The United Press) LITTLE ROCK (Ark.) Nov. 18 BAY FRUITS The closing of fifty-nine banks in central and south states generally was considered by leading financiers to-day as for protection of depositors and predictions were that most of the banks would reopen when their boards were assured the institutions were free from danger of SALES IN FALL OFF In Arkansas, where thirty-nine SAN FRANCISCO, Nov. 18.-(P) suspended business temporSales of Broadway Department arily yesterday and four others Stores, Inc. of Los Angeles for the were closed by the state, an optifiscal year ending October 31st mistic was issued last were $18,532,000 falling moderately night by A. B. Banks, president of short of the the previous the American Exchange Trust Comyear, which was $18,983,000 pany Little Rock's largest bank Two other Arkansas banks MAIL ORDER FIRM DIVIDEND closed to-day on order of the state banking department and third tors of Sears, and Com- member of the Banks pany a per stock announced it has suspended for dividend would be paid February five days 1st, 1931 and an identical dividend Is Heavy Stockholder May 1st. 1931. to Banks, who is heavy record January 10th and April 10th in outside Arkansas banks, said respectively The company paid he was concerned with local boards stock dividends during per and predicted an early resumption each of the 1930 quarters. of normal The recent failure of Caldwell and Company Nashville, Tenn. ANGELES FRUIT was blamed Senator Joseph T Robinson for the temporary ing of the Arkansas institutions while in Missouri and Illinois the closing of six small institutions also was due to the preclosing larger banks Robinson said the Caldwell and Company had created hysin withdrawals of $4,000,000 from the American Exchange Trust Company within ten days and made necessary the temporary Most of the other Arkansas banks which closed were affiliated with the American Exchange Trust, which was the first close. All Held Solvent Besides the thirty-nine banks in Arkansas, six banks were yesterday in Kentucky four in Missouri two in Illinois and one Iowa. practically all cases it was emphasized the banks were solvent and that the closings were rather than forced Navels actions. The closing of banks Lisko Downing, La Salle La Grange and by the closing last week of two Quincy Ill banks, with which the Missouri had deposIted surplus funds. The two Illinois banks at Clayton and Timewell Val also were closed as result of the the institutions LIVESTOCK MARKET In Kentucky the closing of six banks at Louisv and Franklin LOS ANGELES LIVESTOCK also was said to a protective YORK DRIED FRUIT measure prevent runs which threatened because of rumors followed the failure of Caldwell and at Nashville HAY MARKET LOS ANGELES HAY POULTRY MARKETS

10. November 18, 1930 Press-Telegram Long Beach, CA

Article from Press-Telegram, November 18, 1930

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Plan to Reopen Arkansas Banks Being Evolved LITTLE ROCK, Ark. Nov. 18.-(P)-Plans for re-opening fortythree banks which have suspended temporarily or closed were being worked out today by financial experts of the State. Closing of the American Exchange Trust Company, largest and one of the oldest banks in the State, which suspended for five days, was followed by suspension of activities by the forty-two other banks, the aggregate deposits of which were more than $27,000,000. Kentucky Banks Close LOUISVILLE Ky., Nov. 18.-(P) -Eight Kentucky financial Institutions with resources totaling more than $75,000,000 were closed today

11. November 18, 1930 Winston-Salem Journal Winston-Salem, NC

Article from Winston-Salem Journal, November 18, 1930

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Many In Country CloseDoors; Might Open Arkansas Hit Hard With 39 Institutions Going Down There Eight Kentucky Banks Closed Illinois and Iowa Also Dealt Hard Blow by Closing of Banks (By the Associated Thirty banks in Arkansas to depositors five and other small were closed yesterday liqudation. Eight banks in Kentucky measure in the weeks closed Five Sat- Is Optimistic An optimistic the was taken by Robertson Tennessee of banks said banking Trust of Little banks said their opinion bank solvent and that can be found to resume operaMost of the suspended Arkansas banks affiliated Banks sociated American Ex Trust Company With the three were Public Hysteria Directors closing public result from placing of Caldwell Nashville Tenn investment bankers, in receivership November statement said affairs of and remote from and an excited public mind could forced the closing of this The American Exchange Trust the The bank was and had surplus May Reopen The banks acted under Arkansas State permits them the of five days to their affairs to the State Bank Closing of the National Bank of Kentucky at had Three)

12. November 18, 1930 The Atlanta Journal Atlanta, GA

Article from The Atlanta Journal, November 18, 1930

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ARKANSAS BANKS ASK FOR PLEDGES OF PUBLIC'S FAITH Loyalty From Affected Communities Sought to Assure Safety LITTLE ROCK Ark., Nov. Opt permeated statements of Arkansas financial leaders as they laid to re-open of the banks which temsuspended or Monday The the American Exchange Trust Company largest and of the oldest banks in the state which for days. was employed upon plans operations Closing of the American Exchange was by activities the -eight banks. Banks, president of American rolling stockholder in of the other banks scattered the state, said the boards directors try. ing of loyalty from their and capital to assure freedom of danger Resumption of normal business by the banks, he shid. would follow such to Expressions of confidence in the of the financial added by nor Parnell and Senator Joe T. RobThe Little Rock Clearing House Asthe public that local banks are in sound cash resources and relatively small amount of bills Hysteria following proceedings against Caldwell & Co. until cently the Ex change was attributed by directors of the latter as the cause of steady withdrawals which reached about The Exchange Bank's capital was deposits of about as of the last call September EIGHT CLOSED KENTUCKY BANKS INVOLVE $75,000,000 LOUISVILLE Kentucky more nan closed Tuesday The larg. est was the National Bank of at the of a Paul C. Keyes. of the staff of the comptroller the at Washing ton Its approximate $60, 000 Directors of the National Bank of Kentucky the suspension Monwas of wild its condition. with its closing two the Louisville Trust Company and the Security Bank Their disaid solvent and that as precautionary measure The institutions are affiliated the banks in Louisthe American Mutual Savings and the First Standard Bank, cleared through the Louisville closed. The of St Louisville subalso as precautionary banks outside Louisville also closed when the Na. tional Bank of Kentucky had sus. McElwain Me. & Ky. Bank at Ky. National Bank of as correspondent Officers of other leading Louisville Monday night deposits new were opened during the the were solvent. CO RECEIVER IS APPOINTED FOR ALDWELL & COMPANY for the Railway entered his investment bank for ing house He and Lee Douglas. Nash Thursday night, will enjoy Mr Smith named co-receiver Monday by Federal Judge John. Gore application of AtGeneral Smith who torney pointed out that Caldwell & Co. was interested in the closed of Tenwhich the had on de$3 000 the time was tak by the superintendent further appears,' the attorney the may be in other respects dithe of Caldwell & ns for reasons later pointed out the had and Mr Douglas reason of the large far the best hat Mr Douglas said he weland tha had asked informally for and said in state Douglas in acthe be pursued and possible the tion for the benefit of all its credistatement follows The of the will & Co. work the rapidly as for the creditors Major for the ership has assumed the duties office this morning. and he and Mr Douglas in complete policies to be will utmost together during the entire period of the World naturally under stand one another's ideas During the Mr. Smith was chairman of the Council of National Defense, for Tennessee and Mr. Douglas was United States district attorney Nashville, and in these capacities they were closely assoCLEARING HOUSE TAKES OVER TWO BANKS AT CINCINNATI CINCINNATI The & Trust Company and the Pearl Market Bank & Trust was held by the Company Tuesday from trol into the hands of the Cincinnati Clearing House Association it was anounced by the clearing house Eight of the largest banks in Cincinnati issued a simultaneous state-

13. November 19, 1930 Imperial Valley Press El Centro, CA

Article from Imperial Valley Press, November 19, 1930

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TOTAL OF 69 BANKS CLOSED IN SIX STATES CHICAGO. Nov. 19. U.P.-Curtains were drawn and closing signs hung today on the doors of 69 banks in six central and south central and south central states as boards of directors held conferences to determine when most of them might be reopened without danger of experiencing runs. The list of banks which had closed or suspended business since Monday morning was raised yesterday when 13 small Arkansas institutions joined with 40 others which previously had taken advantage of a state law allowing them to close for five days for reorganization. The list of closings then was: Arkansas. 52; Kentucky, 8; Missouri, 4; Illinois, 2: Iowa, 1; and Indiana, 1. Practically all of the closings in Arkansas and Kentucky resulted from fear of runs after the failure of Caldwell & Company at Memphis Tenn., led to withdrawais of more than $4,000,000 on the American Exchange Trust Company at Little Rock. The closings in Missouri and Illinois also were due to failure of larger institutions, all having deposits in two large Quincy, Ill. banks which failed. In practically all cases, directors announced the closings were purely for the protection of depositors and predicted the institutions would reopen within five days after suspending business.

14. November 19, 1930 The Times Shreveport, LA

Article from The Times, November 19, 1930

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MORE BANKS IN Dearmont Named to Post Vacated Thirteen Small Institutions Are by L. S. U. Prexy Added to Suspended or Closed List Tuesday Little Rock, Ark., Nov. 18 (LP).Thirteen small Arkansas banks Tuesday were added to the list of closed suspended institutions in the state Tuesday night curtains were drawn and signs hung on 53 banks in every section of the state Of these. 45 have taken advantage of state law permitting suspension of business for five days. and eight have been taken over by the state banking department. Tuesday's suspensions, nine in number. were accounted for by officials in the same manner as those of "Closed to protect the depositors," the statements said. "We probably will reopen within five days The Viola State bank of Viola, the Bank of Lepanto. the Bank of Leachvile and the Bank of Pollard, the four institutions which were closed and taken over by the state banking department Tuesday were said in official statements. to have been affected by the closing Monday of the American Exchange Trust company of Little Rock. B. Banks. president of the American Exchange Trust company, one of the largest financial institutions in the state, Tuesday continued his conferences with boards of the out-state banks in which he holds large He reiterated his earlier reassuring statements that the small banks would reopen soon as their boards had obtained pledges from the communities. or by outside capital, against run Most officials felt any attempt to open one of the suspended banks as early as Wednesday might be met by heavy run Financial leaders agreed that difficulties of Caldwell and company. Nashville, Tenn., bankers. who were placed in the hands of a receiver last week, were responsible for the wave of financial hysteria. In few days after Caldwell and company receivership. more than $4,000,000 was withdrawn from the American Exchange Trust company. Senator Joseph T. Robinson pointed out. Lafayette, Nov. 18 (P).-Dr. W. S. Dearmont, professor of psychology and education at Southwestern Louisiana institute here, has been named by Dr. E. L. Stephens, president of Southwestern, as dean of the college of education subject to ratification by the state board of education. Doctor Dearmont succeeds Dean J. M Smith who has been elected president of Louisiana State university Both Doctor Smith and Doctor Dearmont have taken up their new duties. Doctor Dearmont has been connected with Southwestern since 1922.

15. November 21, 1930 The Asheville Times Asheville, NC

Article from The Asheville Times, November 21, 1930

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ARKANSAS AND KENTUCKY ARE CHIEF VICTIMS Failure of Caldwell Co. in Tennessee Is Start of Financial Troubles. By The United Press of 72 banks in central closing states considered leading depositors and boards the their institutions were free from danger of where 39 banks Arkansas, business temporarily three others were closed week and optimistic statement Friday Banks, the president Company. Little Rock's largest who is heavy stockholder outstate said he with local boards and conferring an early resumption of predicted normal recent failure of Caldwell and The Nashville, blamed Company by Joseph Robinson for the temporary closing institutions, while Missouri the Illinois the closing institutions also was due upon the previous closbanks. Robinson the Caldwell and Company failure had created which resulted $4,000,000 from the American Ex change Trust company within ten days and necessary the tempoprotect depositors. other banks closed with the Exchange Trust, which the first laws prothat an may be closfor five days for the banks, took this law remove danger of runs Robinson spoke of had the western North Carothe in the and one in Iowa. In practically cases, was that the were solvent and that the were protective rather than lings actions. The closing of banks at Downing. Salle, La Grange and Rutledge, about by the closing last two large Quincy, banks, with the Missouri institutions had deposited surplus The Illinois banks, Clayton and Timewell, result of the failure In the of six and was said to protective necessary to prevent uns which because umors that followed the failure Caldwell and Company at Nashville, Caldwell Company Receivership NASHVILLE, Tenn., Nov. bankruptcy proceedwere United States Court against Caldwell and Federal receivers apweek under general bill the affairs. Caldwell has until and Company December answer of three purported creditors the company hopelessly insolvent and been for months." The inpetition declared Caldwell and committed an act to appointment unthe general creditors' bill. The petition also some the well and of poorly and some is unsecured. The added: further shown that said comin the its within the past four months committed and additional of bankruptcy in switching handling this comhas associated with many trading and interests and in the of its business has been con. able and has diverted switched from itself to different ones these subsidiary companies and doing created many preferences, acts of bank- petition was filed Dyer the for $18,818.99. by the petibe balance due on the bonds the county Caldwell others filed dge Douglas, and Rutreceivers, the suit. in the total for the week to ording mmissioner French, state nine, finance Tenn. Bank Its Doors

16. January 27, 1931 The Daily World Helena, AR

Article from The Daily World, January 27, 1931

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SEVERAL DAYS REQUIRED TO COMPLETE PLANS FOR OPEN AMERICAN EXCHANGE Little Rock, Ark., Jan -Several days may be required to arrange a final agreement on acceptance of a plan for reorganization of the American Exchange Thust Company and opening of the institution, it was said here today by Walter E. Taylor, state banking commissioner, following receipt of a reorganization proposal filed with him by a depositors committee of the closed Institution The first draft of the proposed reorganization called for opening of a new bank with a capital stock made for $2,500,000 in toans from St. Louis and New York banks which would be made available do positors immediately upon opening new bank

17. June 29, 1931 The Montgomery Advertiser Montgomery, AL

Article from The Montgomery Advertiser, June 29, 1931

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M'DADES DIVIDE TWO WITH B.A.C. Trial Of Banker Resumes Today Entry In Independent Loop Wins Shutouts In First Tilt Of Doubleheader The McDade Tinners inaugurated their into the Independent splitting twin bill League with the Boys Athletic Club, taking the first game and dropping the second, The first featured by the game airtight James, who three The Phillips the and supplythe punch for the losers. scores: LITTLE ROCK, ARK., June The State will resume its attempt morrow the trial Banks, accepted $672 deposit in the closed American Exchange Trust Company knowing to be insolvent. Banks president the bank. Little Rock bank have testified they last 15, the American Exchange in slow doubtful and capital before the bank could safely The State introduced them fort prove the was the time the $672 posit accepted. The bankers, Alfred and testified on cross that which preceded the bank's closing probably was First Game responsible more than any factor McDade the shrinkage assets. Sam Wilson, liquidating agent, will James and DeRamus the State's next witness when the trial Mosely Second Game McDade Howard and Mosely: Barker, James, James and The other doubleheader between the Trojans and Athletics ended the opening tilt, but final, Durden and Haynes led the hitting Trojans the first while and hit best winners. nightcap turned to pitcher's between Collum Trojans and Rainwater and Mock, of the

18. July 4, 1931 The Houston Chronicle Houston, TX

Article from The Houston Chronicle, July 4, 1931

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ARKANSAS BANKER IS GIVEN PRISON TERM IN FAILURE By Little Rock, Ark., July 4.-A. Banks, president the closed American Exchange Trust Company of Little Rock, until few months of Arkansas' financiers, convicted today of accepting deposit in an inselvent bank. The jury fixed his prison. $5000 appeal to the Four officials of the closed bank indicted. Banks also under similar indictment at with small insur agency years out into and came head big insurancegroup. He founded the Home Insurance Companies Arkansas, which the lapse banking interests last Banks tributed the interests which vestment house of Tennessee, held in Banks went on trial week ago The Mrs. Lillie Rothschild in the Exchange Trust the day before bank The closing bank was fol. by the failure of more banks in Arkansas Mr. Banks interested and in the lapse of his insurance partner of the late Senhis made brief argujust to tell the State of answer the last remark Mr. Lewis, "That all at Phillipi. Would Forfeit Security the bridges are opened before the monies are paid, then the curity the goes, goes They mated their out this that that can not sue the let that bridge opened. capriciof legislator court has plenary jurisdiction the value which under the receivership of this Attitude of Commission. The whole attitude of the highcommission, as it. is like that bird which always flies backwards. it's wants to see where Mr. Balley then rose and told my brief bridge would that he repudiate the but Johnson not the majority of the Brief in the Terral Toll Bridge Company similar preceding presented.

19. June 16, 1932 The Charlotte News Charlotte, NC

Article from The Charlotte News, June 16, 1932

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Banking Magnate Is Saved For Year Little Rock. Ark. June hanging former for the deposits bank was suspended Janreprieve issued today Governor Parnell explained he acted because officials American Exchange Trust company. which Banks headed. not been tried disposition their cases desired before former finanbegins his term. Banks have started serving his sentence penitentiary today. his friends pressing the governor for full pardon. About 40 affiliated banks controlled after closing of the company November, 1930. Two his insurance companies failed and another was taken by another firm. The movement tides lengthening part second every century.

20. June 17, 1932 The Springfield News-Leader Springfield, MO

Article from The Springfield News-Leader, June 17, 1932

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PARNELL AWARDS BANKS REPRIEVE Governor Explains Five Other Bank Officials Are Still To Be Tried A prison sentence hanging over A. former banking and for the ceptance of deposits in an was suspended until next January in reprieve issued today by Governor Parnell The governor explained he acted five other officials of the American Exchange Trust company which Banks headed have not been tried and disposition of their cases is desired before the former financier begins his term. Banks was to have started his in the today Hundreds of friends are pressing the for governor full pardon About 40 affiliated banks controlled by him soon the closing of the American change Trust Novemcompany 1930 of his and another by another firm.