444. American Exchange Trust company (Little Rock, AR)

Bank Information

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

Metadata

Model: gpt-5-mini
Short Digest: 224dec5e

Response Measures

Full suspension

Description

Series of articles (Nov 17–26, 1930) report heavy withdrawals (~$4,000,000) following the announcement of Caldwell & Co.'s financial difficulties, prompting the American Exchange Trust Company to suspend payments for five days. Later articles report plans to reopen and several Arkansas banks resumed business; the company was described as engaging committees to resume operations. Thus a run led to a five-day suspension and subsequent reopening. A later 1931 trial alleges insolvency, but contemporaneous coverage documents reopening plans.

Events (3)

1. November 17, 1930 Run

Cause: Local Banks
Cause Details: Heavy withdrawals triggered by publicity about the financial difficulties/failure of Caldwell & Company in Nashville, which spurred depositor nervousness.
Measures: Bank's board voted to suspend operations/payments for five days to protect depositors.
Newspaper Excerpt: 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.'
Source: newspapers

2. November 17, 1930 Suspension

Cause: Local Banks
Cause Details: Suspension declared after excessive withdrawals tied to the Caldwell & Co. failure and related public panic.
Newspaper Excerpt: decision of the board of directors of the American Exchange Trust company of Little Rock ... to suspend payments and close for five days
Source: newspapers

3. November 26, 1930 Reopening

Newspaper Excerpt: ARKANSAS BANKS RESUME BUSINESS ... forced to close or suspend. ... forced by the suspension of the American Exchange Trust company at Little Rock and reporting banks resuming operations this week; other articles note plans to re-open and that many banks resumed by Nov. 26.
Source: newspapers

Newspaper Articles (9)

1. 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."

2. November 17, 1930 News-Record Neenah, WI

Article from News-Record, November 17, 1930

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Article Text

Grade's Panatorium, Main street, Menasha, broken into Sunday night and several articles wearing apparel stolen. Included the loot were pair of men's pants, shirt and eral other articles. The thief used jagged piece break apparently hurling the from distance, in order gain entrance to the building. The concrete found was inside the building this morning when Mr. Grade opened the store and police notified. The burglary is the last of eral reported police during the past several weeks. Articles of wearing apparel stolen time from the ago Clothes Shop, 184 Main street, Menasha, followby another burglary nights the Exley market, Main street, Menasha. Nothing missed from the meat market, according to Exley, although possible that small amount of meat may have been taken. its resources for creditors." Little Rock, American Exchange Trust company, with deposits in excess of failed to open for business here day. notice posted by officers the bank stated that the institution, in the opinion of its board of directors, was still solvent and had voted suspend operations for five days to prótect depositors.

3. November 18, 1930 The Bee Danville, VA

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Child Slain Missionary, by Savages LAY PLANS TO This photo shows Rev. and Mrs. Arthur F. Tylee, of Memphis, Tenn., and their two-year-old daughter, Marian, all of whom were attacked by savage Indians in the Brazilian jungle, where the WHICH CLOSED Rev., Tylee was stationed Presbyterian missionary. Rev. Financial Leaders Optimistic As Action Is Taken to Re-Open Institutions LITTLE ROCK, Ark., Nov. -Optimism expressed in statements of Arkansas financial leaders laid plans today to re-open some 43 banks which have suspended temporarily or closed. The committee of the 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 Closing of the American Exchange followed by suspension activities by the other banks, the aggregate deposits which more than $27,000,000. Banks. president of the American Exchange, and stockholder in of the 42 other banks scattered over the state. the boards of directors trying obtain pledges of loyalty from their and capital to assure freedom of danger from Expressions of confidence in the general stability of the state's finanstructure were added by Governor Parnell and Senator Robinson to those bankers. The Little Rock Clearing association by assured the public that local banks are in sound condition. Hysteria proceedings against Caldwell and pany, Tenn., bankers. until recently interested the American Exchange was attributed by directors latter the cause steady withdrawals which reached about BANKS CLOSE LOUISVILLE Nov Eight Kentucky financial institutions totaling more than were closed today The largest of these was the National Bank Kentucky Louisville, which under the control of receiver, Paul Keyes, the staff the comptroller the currency Its resources approximate Directors of the National bank of Kentucky said the suspension yesterday deemed necessary because of "wild rumors' concerning its condition. with its clostwo affiliated institutions, Louisville Trust company and Security bank. suspended operations Their directors said they were vent and that they were closed precautionary measure The three institutions are affiliated through the holding company. small negro banks in Louisville, the American Mutual bank the First Standard bank which cleared through the Louisville Trust company later The bank St. Helens, Louisville urb. also suspended as precautionbanks outside Louisville also closed when it learned the National bank of Kentucky They were McElwain pended. Megular and Trust Company Franklin, and the First National bank at Ky The Nationbank of Kentucky served as corfor both Officers of other leading Louisville banks statements last night declaring yesterday's deposits were greater than ported new accounts were opened during the day, and reiterated earlier statements that the institutions were Tylee, the little girl and nurse were massacred, and Mrs. Tylee, also missionary, was wounded.

4. November 19, 1930 The Billings Gazette Billings, MT

Article from The Billings Gazette, November 19, 1930

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SUSPENDED BANK GROUPS Arkansas Institutions Balk Runs During Hysteria Reign. Little Rock, Ark., Nov. Thirteen small Arkansas banks Tuesday were added the list of closed or suspended institutions in the state. Tuesday curtains drawns and signs hung on banks m every state these, have taken advantage state law permitting suspension for five and eight have been taken by the state Tuesday's suspensions, nine number, accounted for by officials in the same manner those of "Closed to protect the depositors, the statements "We probably reopen within five days. The State Bank Viola, the Bank of the Bank and the Pollard, the four inwere and taken over the state banking partment said, cial statements, been affected by the closing the American Exchange Trust company of Little Rock. Banks, president of the AmeriTrust company, the largest institutions in his with the outstate banks which he holds large interests. He reiterated his earlier reassuring statements the small banks would reopen their boards had obtained pledges from the munities, by outside capital, against Most officials felt any attempt to one the early might be met by heavy run Financial leaders agreed that difficulties Caldwell Co., Nashville, Tenn., bankers, who placed in the hands of receiver last were responsible for the of financial hysteria. after Caldwell & Co. receivership. than $4,000,000 withdrawn from the American change Senator Joseph T. Robinson pointed out.

5. November 22, 1930 New Britain Herald New Britain, CT

Article from New Britain Herald, November 22, 1930

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EPIDEMIC OF BANK CLOSINGS SPREADS Financial Institutions in Trouble Now in Eight of States Chicago. Nov. 22 (UP)-The epidemic of bank closings had extended today into eight central and southern states with business suspended or ended outright in a total of 115 institutions, most of them small. For many of the banks it was the last day they could remain closed under the state law allowing them to suspend business for five days for reorganization. Predictions were made that many of the banks would reopen soon. The five day period will end for a number of them on Monday and for still others on Tuesday of next week. Arkansas, where the closings started, led in number of closings, with other institutions under business suspension or closed in Kentucky, Missouri, Indiana. Kansas. Illinois, North Carolina and Tennessee. Beginning Monday of this week with the closing of the American Exchange Trust company at Little Rock, Ark., the number of suspensions grew rapidly. with numerous additions each day. Banking officials said the closing of the large Little Rock institution was due to heavy withdrawals brought on by the failure two weeks before of Caldwell and company at Nashville, Tenn. Most of the other suspensions in Arkansas were in sympathy with the American Exchange Trust company move. In Kentucky and Indiana the closings also were considered due to rumors of impending runs that followed the Caldwell and company failure. Several banks in Louisville were closed in sympathy with the Caldwell and company failure and other banks in Kentucky and Indiana then were closed in sympathy with the Louisville closings. In Missouri and Illinois, also. the closing of small banks was attributed to the previous failures of larger most cases. were about institutions. closings In brought by the the failure of two large banks at Quincy, III., with which the smaller banks in neighboring communities were (Continued on Page Two:

6. November 25, 1930 Chattanooga Daily Times Chattanooga, TN

Article from Chattanooga Daily Times, November 25, 1930

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at Walo, Bank of Manila at Manila, Bank Knobel Knobel, the State bank at Monette and the Viola State Viola. Those pending the Bank Maynard Maynard, County at and Bank Glenwood at Glenwood, all small The closings reported today brought to seventy the number which have pended closed for liquidation in the six have reopened, the five today The other the National bank Heber Springs, which resumed business last week closing for two The state banking department said reports of additional banks reopened several were known to be prepared to resume busiThe unprecedented number of bank closings in the past week suspension the American Exchange Trust company, Little Rock. Banks, of the American Exwhich he head, Banks holds interest in many of the other institutions which have closed. Bank Closes. JACKSON, Miss., Nov. 24 Bank of Sallis failed to open for business Saturday J. S. Love, superintendent of state banks, announced the closing the Sallis bank, which is in Attala county. Deposits were estimated at $75,000, with resources $200,000. Friday last week the Bank of Collins, at Collins, closed its doors.

7. November 25, 1930 The Capital Journal Salem, OR

Article from The Capital Journal, November 25, 1930

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HYSTERIA HELD CAUSE OF BANK SUSPENSIONS Little Rock. Ark., (LP) Hysteria due to the business depression were blamed by A. B. Banks, Arkansas financier, for closing of 67 banks in the state and placing of two large insurance companies in the han dsof receiver. The two insurance companies, the Accident Insurance company and the Home Fire Insurance company which operated in 13 states under Bank's supervision, were placed in receivership Monday and declared insolvent. Many of the 67 banks. which either suspended business for five days or were closed last week, were associated with the Bank's chain. Eight of the banks reopened Monday. Eimo E. Walker, Little Rock insurance man, was appointed receiver for the two insurance companies, capitalized at $750,000 each. Walker posted a $100,000 bond to act for each company. He immediately instructed agents to place customer's insurance carried with the organizations in other companies. The Home Life Insurance company, third member of the Bank's group, was unaffected by the action. It is my opinion that nothing but the tragic and hysterical run resulting in the temporary closing of the American Exchange Trust company here could have destroyed the values built so laboriously into the Accident Insurance and Home Fire Insurance companies over so long a time." Banks sadi. "Receivership of the two companies was made necessary by the closing of the various banks in Arkan$8.8 in which these two companies held stock. The insurance companies could not survive during the period of reorganization although every bank should finally be put back on its feet without a less to depositors." and is always a popular affair for the families of the Summit neighborhood, who come with baskets and visit all day with neighbors and friends. Scotts Mills-Miss Mary Myers underwent a major operation for sinus trouble Saturday morning at the Deaconess hospital at Salem. She is getting along nicely and was able to return to her home here Sunday evening. Ireland is warring on salacious

8. November 26, 1930 Star Tribune Minneapolis, MN

Article from Star Tribune, November 26, 1930

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ARKANSAS BANKS RESUME BUSINESS pended last to banking today had for these of banks in the state which or within week have resumed opera tions. Those resuming business today were the Bank of the Bank of and the Bank of Stamps towns of the same names The closings came aft en suspension of the American Exchange Trust company at Little Rock, whose A. B. Banks is interested in many of the other institutions forced to close or sus pend. MISSOURI BANK CLOSED. First National Bank of Caru was closed this by its directors after run. It said during the last few days had amounted to $100,000. MORNING EDITION NEW GE.3675 KING CO. EARL Rainville GL 2355 Bertch Gleason GE. 7867 John M. Lady Lost and Found

9. June 28, 1931 Jonesboro Daily Tribune Jonesboro, AR

Article from Jonesboro Daily Tribune, June 28, 1931

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Parker Returns From Banks Trial In Capital Herbert Parker, witness in the A. B. Banks bank trial at Little Rock, returned home last. night. He will return to Little Rock again Monday, when the trial will be resumed. Mr. Parker was called as witness as he is liquidating agent of the bank of Osceona. Banks went on tr:al this week, facing six cvharges. Two of the charges are that he received funds knowing that the American Exchange Trust company was insolvent. He was head of a chain of banks throughout the state.