Union Trust Company - Little Rock, AR

Bank Information

Episode Type: Suspension → Reopening
Bank Type: trust company
Start Date: February 28, 1933
Location: Little Rock, Arkansas (34.746, -92.290)

Metadata

Model: gpt-5-mini
Short Digest: 5d5f7ac4

Response Measures

None

Description

Article (dated 1933-02-28) reports Little Rock clearing house and new Arkansas law authorized limited withdrawals ($15 or 5%) for all local banks including Bank of Commerce. This is a suspension/limited-payment plan imposed under state legislation and clearing house agreement; no run or permanent closure is reported. Classified as suspension_reopening because banks remained operating under restrictions and were not closed or put in receivership in the article.

Events (1)

1. February 28, 1933 Suspension

Cause: Government Action
Cause Details: State legislature passed emergency law authorizing restrictions of withdrawals; clearing house implemented limited-withdrawal plan for Little Rock banks.
Newspaper Excerpt: the Little Rock clearing house association announced all banks in the city would begin operating today under a plan of limited withdrawal of deposits ... withdrawals on all accounts, savings and checking, would be restricted to $15 on accounts up to $300 and to five per cent on accounts exceeding $300.
Source: newspapers

Newspaper Articles (1)

1. February 28, 1933 Imperial Valley Press El Centro, CA

Article from Imperial Valley Press, February 28, 1933

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Article Text

By LESLIE HARROP United Press Staff Correspondent CLEVELAND, Feb. 28.-Hurriedly enacted banking legislation lent hope to Ohioans today that a serious financial crisis had been averted. Acting under suspension of the rules, the Ohio legislature at Columbus last night passed two bills extending state control over banks. They were designed to counteract the effects in Ohio of banking moratoriums in other states. The bills, sponsored by Governor George White, became laws shortly before midnight. At the same time the governor signed a third emergency bill authorizing the superintendent of the state building and loan department to liquidate unsound and insolvent building and loan associations. The banking bills were passed by unanimous vote within an hour after their introduction in the house of representatives. One law permits the state superintendent of banking to authorize individual banks to restrict withdrawals, when such action becomes necessary, for a period not to exceed 120 days. The second emergency law amends present statutes to permit the banking superintendent to take possession of a bank upon the request of its board of directors. It provides further that the superintendent may reopen a bank under conditions approved by a court of common pleas. While bankers today awaited the effect of the new legislation upon public opinion, depositors in a score of cities continued uncomplainingly their attempts to adjust personal, household and business finances to a situation in which at least 95 per cent of their deposits were "frozen" under limited withdrawal restrictions. By R. BOYDEN UNDERWOOD United Press Staff Correspondent LITTLE ROCK, Ark., Feb. 28. Taking immediate advantage of a grant of rights by the state legisbatsure, the Little Rock clearing house association announced all banks in the city would begin operating today under a plan of limited withdrawal of deposits Marion Wasson, state bank commissioner, issued a statement saying the action was taken "to protect the banking structure and to prevent any preferences being given to any class of depositors." A night of strenuous activity by all bank staffs. including that of the federal reserve bank, and the clearing house association preceded the formal announcement. The association announced withdrawals on all accounts, savings and checking, would be restricted to $15 on accounts up to $300 and to five per cent on accounts exceeding $300. Six banks-all operating in the city-were affected. They were the Bank of Commerce, the Bankers Trust company, the People's Trust company, the Twin City bank, the Union Trust Company and the W. B. Worthen bank. A bill passed by the legislature late yesterday and signed by Gov. J. M. Futrell last night authorized restrictions of withdrawals and provided for a state banking board of five members to be appointed by the governor. The board must approve all bank charters and amendments to charters, and must survey state banking laws and recommend charges 14) protect interests of depositors.