455. Exchange Trust Company (Little Rock, AR)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
trust company
Start Date
November 17, 1930
Location
Little Rock, Arkansas (34.746, -92.290)

Metadata

Model
gpt-5-mini
Short Digest
5d4453ab

Response Measures

Partial suspension

Other: Bank later remained closed and was under criminal/prosecutorial investigation (federal assistance sought).

Description

Articles describe heavy withdrawals/depositors gathered (a run) and the bank invoking Arkansas law to suspend payments for five days beginning Nov 17, 1930. Suspensions were described as precautionary following the failure/receivership of Caldwell & Company which created 'hysteria.' Later reporting (Jan 1931) refers to the Exchange Trust Company as closed and under investigation, suggesting it did not simply reopen — hence classified as suspension followed by closure. No explicit mention of a receiver being appointed in the provided articles; federal investigation is noted.

Events (3)
1. November 17, 1930 Run
Cause
Local Banks
Cause Details
Panic/hysteria triggered by the failure/receivership of Caldwell & Company (a large investment firm) caused heavy withdrawals from Exchange Trust.
Measures
Depositors' withdrawals and crowding; directors invoked state law permitting a five-day suspension of payments.
Newspaper Excerpt
Depositors gathered the streets near the bank and gazed silently ... signs had temporarily; reported heavy runs by depositors.
Source
newspapers
2. November 17, 1930 Suspension
Cause
Local Banks
Cause Details
Temporary suspension invoked as a precautionary measure due to 'hysteria' following Caldwell & Company's failure and resulting heavy withdrawals.
Newspaper Excerpt
The decision of the board of directors of the Exchange Trust Company, Little Rock ... suspended for five days.
Source
newspapers
3. January 31, 1931 Other
Newspaper Excerpt
Prosecuting Attorney Carl E. Bailey has disclosed that he has sought intervention of federal authorities in an investigation of the affairs of the closed Exchange Trust Company, of Little Rock.
Source
newspapers

Newspaper Articles (9)
1. November 17, 1930 The World-News Roanoke, VA
Article from The World-News, November 17, 1930

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Article Text

Serves As Host Pastor Richard pastor Baptist church, serving as host pastor at the one hundred and seventh session of the Baptist General Association which will First church present without pastor. its correspondents and that its dewould be In Louisville slightly than numbers of patrons at the other banks but nothing officials that the public would not become excited. Crowds around the National Bank Kentucky and the Louisville Company delayed traffic and special police were on duty. Little Rock, Nov. Banks Arkansas nounced banks in State the company filiated suspended for five days. Eight other affiliated banks advised the Banks and Company they remaining officials said they had heard early from as they taking. The decision of the board of directors of the Exchange Trust Company, Little Rock. the largest bank the to pay ments and five the temporary closing others, the Banks company Banks, president the AmerTrust Company terested the other affiliated banks Arkansas banking laws provide bank suspend to defor five days and re-open hands of the State Banking DeWith exception of the American Exchange Trust here the chants and Planters Trust Company Pine Bluff and the Merchants and Planters Bank Helena, those closing pected least half" the banks will temporary closing of the AmeriExchange Company was tributed by the public citement from the placing Caldwell and bankers in receivership Issues Statement. statement directors the American Exchange the suspension "forced upon by cessive than during the past days following the financial difficulties Caldwell and The Caldwell and Company for Arkansas and nothing the closing of this strong bank, Soon after Caldwell and Company was placed Mr. Banks announced the Caldwell and Company interest Exchange Trust Company been bought The Bluff was the second largest in the group and the Helena third Banks director the former and presithe Helena The Trust Comin Little Rock had September the the last bank call. The Bluff 24. had deposits the Helena the business Saturday had deposits $276,000. officials The banks in which Mr. Banks and which pended business today five by the company follows The Bank of Altheimer Bank Benton and Trust Arkansas Bank Farmers Farmers Dardanelle; Hampton State Hampton: County Heber Springs: and Planters Bank, Helena: Houston, HousMerchants Planters Bank, County Bank Chicot Trust Company Village: Exchange Trust Company, First State Arkansas Trust

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

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Article Text

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 Chattanooga News Chattanooga, TN
Article from The Chattanooga News, November 18, 1930

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CALDWELL FOR FAILURE OF Officials Expect 46 Suspended Institutions Reopen. Six Closed in Kentucky. (By United Press. The closing banks central and south states generally was considered by leading finantoday measure for and were that the would the from danger In banks day and by issued Banks, presthe Exchange Trust company, Little Rock's largest bank. Banks. who heavy stockholder local boards an early resumption norbusiness. The recent failure of Caldwell Co. Senator Joseph for temporary closing the institutions, while and the was due the clos. ing of larger Created "Hysteria." Robinson failure had created which resulted $4,000.000 from American Trust company ten days made necessary the temporary closing protect Most the which the first an may for for and justment and the was this law remove danger of runs until the "hysteria" Besides the banks in In banks solvent and closings protective rather forced closing of Downing La Salle, La two Quincy banks. surplus funds The Illinois banks, Clayton and

4. November 18, 1930 The News and Observer Raleigh, NC
Article from The News and Observer, November 18, 1930

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SOUTH Chain Institutions in Arkansas Suspend For Five-day Period RUN STATE TOTAL Senator Robinson Says Suspensions Merely Precautionary Measure and Directly Due To Caldwell and Company Difficulties; Six Banks in Kentucky Close banks affiliated with Banks Company, Little Rock, advantage today of state law which permits temporary closing for five days suspension payment deposits. Three banks addition closed by the State Banking Department. Joseph Robinson blamsituation hysteria financial difficulties Caldwell Company Nashville, Tenn. the banks solvent," Senator Robinson said. "Arkansas financially, soon excitement incident the closthe banks has subsided, the state will return normal condithe reopen." Officials Banks group nounced the closing had caused fear hasty withdrawals. The Exchange Trust Company, of Little Rock, the the Banks institutions doors. the largest the State. Depositors gathered the streets near the bank and gazed silently the signs had temporarily. Others Cease. Within hour came word from Pine Bluff, that the Merchants and Planters Bank and Trust Company there, and smaller bankArkansas had failed to open their doors today. Then messages were received from Helena that the and Planters Bank there had closed. Officials they vent, but were closing protect positors. Almost coincident with this advice the from the Branch Bank the Banks group, taken over by the Dethe list mounted. The number for few then then and finally the closing banks other parts the State reached here. Five Days. The state law the banks remain closed five days. At of time they either must reopen for business place selves the hands of the State Banking Departmet. Banks, the wealthiest Arkansas, night ordered officials the filiated banks to come to Little Rock conference. It understood that he would was some definite plan, effect before the end of the fivesuspension allowanee. Little Rock did Other business usual today, reported heavy runs by depositors. Caldwell and Company, Nashthe financial difficulties upon which Senator Robinson blamed placed the today's closings, receiver last week. The hands of the largest investfirm was one the South. concerns SIX BANKS SUSPEND IN BLUE GRASS STATE Louisville, Ky., Nov. Kentucky owned operated, closed that solvent, that the suspension business protect the interests creditors and depositors." National Kentucky, Louisville Trust the American Mutual Savings Bank, the Bank Standard Securities all Louisville, and the Bank, and Mequiar Bank and Trust Elwain the Company, stitutions affected. Negroes operate American Mutual Standard banks. Financial circles here held that banks were forced close bethe cause of rumors growing the collapse Caldwell Company, Nashville, Tenn., largest investment the South. There concern connection between any closed banks and the company, however, merger once had though group discussed. QUIET AGAIN IN TENNESSEE BANKS Nashville, Tenn., Nov. uneventful day passed quiet, today Tennessee state officials and state uation federal working upon affairs four closed their doors in the last came from Attorney Smith what steps in his efforts recover $4,840,000 cash and securities ported from assets Bank of Tennessee, of four into receivership. inventory yet has been filed in failure Knoxville, the Bank and Trust Company, Turn

5. February 1, 1931 The Atlanta Constitution Atlanta, GA
Article from The Atlanta Constitution, February 1, 1931

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THREE ARKANSAS BANKS REOPENED LITTLE ROCK Ark., Jan. banks in Arkansas today bringing to 47 the number which have resumed since last November 17. State Banking Commissioner Walter E. Taylor said today The Merchan & Planters bank at Arkadelphia, reorganized by electing Roy Golden president and reopened after been closed since De cember 20. The Bank of Oxford in Izard county closed since November 17, also reopened. The Bank of which pended several weeks ago, reopened today under an agreement of depositors to "freeze" their accounts over a period of months. S. L. is president, and J. B. Swift executive vice president. U. AID IS SOUGHT IN PROBE OF BANK LITTLE ROCK. Jan. Prosecuting Attorney Carl E. Bailey has disclosed that he has sought intervention of federal authorities in an investigation of the affairs of the closed Exchange Trust Company, of Little Rock. He has been in with the department of justice and other government agencies, he said, and though he declined to make public nature. he said he had received couraging responses. NEW BANK TO OPEN Fla., Jan. 31. (AP) Amos today officially approved the opening of new Merchants & Farmers bank, of next Monday. The new bank capitalized at $25,000 and has surplus of $7,500 undivided profits of and serve D. is president, and J. Vickers, cashier. SEEK TO REORGANIZE BANK AT KNOXVILLE KNOXV Tenn., Jan. Mitchell Long, Knoxville attorney, said today that negotiations are under way for the organization of new national bank in 'Negotiations have been held between local persons and group headed by R. Preston. of Chattanooga, with view to organizing a new national he said. "However, the organization is only the preliminary stages and no definite announcement can be made this PLANS MADE TO REOPEN BANK IN TENNESSEE E. Leach, chairman of the depositors' committee of the First State Bank & Trust Co., here, said today plans were being made to reopen the bank ruary 10. The bank suspended business several weeks ago. oHTo AND CAROLINA BANKS FAIL TO OPEN Jan. The Planters bank of Sharon failed to its doors today, completion of an audit the state ing The bank listed deposits of $127,000 NEW Jan. State bank here, capitalized at and with of failed to open its doors this morning.

6. 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.

7. 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.

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

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Article Text

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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Article Text

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.