Bank of the State - Little Rock, AR

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: January 1, 1840*
Location: Little Rock, Arkansas (34.746, -92.290)

Metadata

Model: gpt-5-mini
Short Digest: da6ef97e

Response Measures

None

Description

Article describes suspension of specie payments by banks in the South/West and notes that the principal bank at Little Rock resumed specie payments on October 1, 1840. No run is described; this is a suspension followed by reopening/resumption. OCR errors in the article (spacing and punctuation) were corrected when extracting dates and phrases.

Events (2)

1. January 1, 1840* Suspension

Cause: Macro News
Cause Details: General suspension of specie payments across banks in the South and West prompted the bank to suspend specie payments
Newspaper Excerpt: The general suspension of specie payments by the banks in the whole south and west, seemed, to the conductors of ours, to create a necessity to follow that example
Source: newspapers

2. October 1, 1840 Reopening

Newspaper Excerpt: On the first of October, 1840, the principal bank at Little Rock resumed specie payment.
Source: newspapers

Newspaper Articles (1)

1. April 20, 1876 The Russellville Democrat Russellville, AR

Article from The Russellville Democrat, April 20, 1876

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Article Text

NO. 13. five per cent. discount." On the , 1 first of October, 1840, the principal bank at Little Rock resumed 8 specie payment. "At that time its circulation $ amounted to $32,340, and its 1 specie $69,117.75. The branches so far from imitating this proD ceeding denounced it as unwar8 rantable, affirming that, in a case I like this, the bank and its branches should all act together, and t that a resumption could with pro$ priety be brought about only by an order of the general board. In about a month afterward, news was received that the North American Trust and Banking company, had again dishonored the drafts drawn upon it. This increased still more the embaraassment of the branches. On the 2d of November, 1840, the general Assembly commenced its third session. Governor J. S. Conway made, in his farewell address, the following remarks: "The subject of the suspension of specie payment by our banks is one which the people through out the state have justly manifested much concern, and many of us have doubtless suffered considerble inconvenience in consequence of the suspension. The resumption of specie payments by the parent bank of the State institution at this place has contributed but little to relieve us from the inconvenience complained of, as but a very inconsiderable quantity of its paper is in circulation. For the good of our people and credit of our State, I most ardently hope the time is at hand when each bank ing institution within our limits will be so conditioned as to be able to redeem with the hard dollars all its notes as they may be presented for payment. I am not in possession of any information relative to either institution which enables me to know at what probable period they will be thus happily conditioned. The general suspension of specie payments by the banks in the whole south and west, seemed, to the conductors of ours, to create a necessity to follow that example, for the preservation of our more infant institutions. The general. assembly will doubtless give this. subject a full, fair and impartial investigation, and [adopt such measures as will require the banks to resume at the earliest possible. period, without endangering the interests of the state and usefulness of the institution; and to. prevent a recurrence of the evil, measures commensurate with the importance of the subject will doubtless be adopted.