512. Peoples Bank (McRae, AR)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
November 17, 1930
Location
McRae, Arkansas (35.113, -91.822)

Metadata

Model
gpt-5-mini
Short Digest
856c320d

Response Measures

None

Description

Peoples Bank, McRae is listed among banks that 'closed' in the statewide wave (Nov 17, 1930). A Nov 21, 1930 dispatch states the bank expected to reopen under a reorganization plan (stockholders to pay $12,000; depositors asked to keep 85% of deposits for 12 months). Cause appears related to exposure to the Arkansas Trust Company/Newport (correspondent failure) rather than an isolated depositor run.

Events (2)

1. November 17, 1930 Suspension
Cause
Correspondent
Cause Details
Exposure to deposits the bank had in the Arkansas Trust Company at Newport and broader contagion from other suspended institutions (statewide wave). The Nov 21 report ties reopening plan to stockholders paying amount equal to deposits held in Arkansas Trust Company at Newport when that institution suspended.
Newspaper Excerpt
The banks included ... Peoples bank. McRae ... list of the 43 banks that closed yesterday
Source
newspapers
2. November 21, 1930 Other
Newspaper Excerpt
A dispatch from McRae said the Peoples Bank at that place expected to reopen Saturday or Monday, under a proposed agreement that stockholders pay in $12,000, an amount equal to deposit the bank had in the Arkansas Trust Company at Newport when the latter suspended. Depositors also were being asked to agree to maintain 85 per cent of their deposits in the bank for 12 months, or as long as necessary to stabilize the institu-
Source
newspapers

Newspaper Articles (2)

Article from Paragould Daily Press, November 18, 1930

Click image to open full size in new tab

Article Text

BANK SITUATION OVER THE STATE MORE FAVORABLE Continued From Page One) Clearing House Association including banks in Little Rock and North Little Rock, are excellent condition statement issued last night by officers of the association said. Bank in Greater Little Rock have large cash resource the and the total bills are less than $200 "They are ready and able to take care 01 the banking and credit need the conof the in the sound financial of Arkansas also was excondition Senator Joe Robinson and Gov Parnell Robinson attributed the Senator closing in the to wave of hysteria that followed in the wake financial dif 111 which Caldwell & vestment of became involved information leads me to believe the mind of depositors that connections with Caldwell & had impaired its assets 01 the 43 bank that closed yesterday banks not with the A Banks but majority them were in group institutions In must their have resulted from on deposi The banks included the Bank of at Branch: State bank of Fouke and the Peoples Trust Company which were taken by State Banking Commission Grant County bank Sheridan: Peoples bank. McRae Izard County bank. Guion: Peoples State bank DeValls Bluff the Exchange Bank and Trust Company Dermott and the Arkansas National bank at Heber Springs, which suspended payments for The Merchants & Planters bank at Humphrey affiliated with A B Banks was taken over by the State Banking Commission State banks suspending for fiveday period affiliated with A B Banks were Merchants and Planters bank Pine Bluff American Exchange Trust Company. Little Rock: First State bank Morrilton: First State bank Stuitgart: Benton Bank Trust Co., Benton: Bank of Bauxite Bauxite Cleburne County bank. Heber Springs North Arkansas bank Batesville: Arkansas State bank Carlisle: Arkansas Trust Company Newport Arkunsas Bank and Trust Company. Hope Merchants and Planters bank Helena; Eudora Bank & Trust Co. Eudora: Chicot Trust Company Lake Village Bank of Clarendon Clarendon: Bank of Altheimer Altheimer: Cleveland County bank. Kingsland: Bank of Houston. Houston: Hampton State bank Hampton: First State bank Osceola Bank of Carthage. Carthage Perry State bank Perry Victoria bank Strong Parmers Bank Casa: Leola State bank Loola Merchant and Planters bank Junction City Farmers bank, Darand Citizens bank Thornton and the Bank of Pordyce Pordyce list of the 43 banks that closed vesterday their deposits and capital follows ing Americ an Exchange Trust Company Little Rock State Bank of Fouke depo. $14 579 capital capital People bank deposit $96 capital Bank of deposits capital $25,000 North Arkansas bank Bateaville de have Bank of Bauxite deposits 436 of capital Benton Bank and Trust Company posits cipital 000 Bank of Carthage able Parmer bank deposits 248 capital $10,000 Bank of Clarendon deposits or capital capital $50,000 Endora Bank and Trust Company deposits Hampton $194,318.02 capital 000 State deposits 231 capital Cleburne County bank deposits and bank deposits 000 Bank $99 and Company Hope 49 capital Houston deposits capital Planters bank Hum phrey capital Cleveland bank Company bank Trust Company Newport capital State bank capital $50,000 of Perry State bank deposits People Bank and Trust deposits State Bank $10,000 County


Article from Jonesboro Daily Tribune, November 21, 1930

Click image to open full size in new tab

Article Text

FINANCES ARE CLEARING UP IN ARKANSAS Opening of Bank at Heber Springs and Reorganization Plans Restore Confidence over Arkansas Following Bank Suspensions LITTLE ROCK, Ark., Nov. Additional encouragement to Arkansas' banking situation was given today by the state banking department, when Walter E. Taylor, commissioner, announced that information coming into his office indicated that more of the 63 suspended institution than he at first anticipated. are working out reorganization and reopening plans. Mr. Taylor said that reports indicated that many of the institutions had progressed with their reorganization plans to the extent of expecting open for business during the later part of this week or carly next week. He expressed the belief that the situation in the state would show great improvement during the coming week. The National Bank of Arkansas of Heber Springs was the first to resume business. This institution reopened its doos yesterday morning after authority had been received from Comptroller of Currency W Pole at Washington. The national bank examiner reported that the institution was in position resume business Directors of the American change Trust Company of Little Rock today continued their conferences to consider reopening plans. Just when and how the local institution can reopen has been determined. Five More Suspend Officials of the American Exchange stated that reorganization requiring the co-operation of the depositors were well under way and it was hoped that the bank could be reopened soon. The bank will be taken over Saturday by the state bank commissioner pending completion of the reorganization Five banks were added to the list of those suspending. The Bank of Corning at Corning suspended Wednesday afternoon. The Citizens Bank at Bald Knob did not open this morning, five day suspension. The Bald Knob State Bank opened, but was subjected to run during the morning and suspended at 11 clock as precautionary measure. The five brought the total banks suspending or closing up to 63, Two small institutions, the Bank of Ozan at Ozan, Hempstead Counand the Bank of Strawberry Strawberry, Lawrence County, both independent banks, announced suspensions for -days. The Bank of Strawberry suspended last Monday, but the first report of the action was not received at the state banking department until this morning. The Bank of McNeil at McNeil suspended for five days Thursday afternoon, and the Bank of Tyronza was taken over by the state bank department. A dispatch from McRae said the Peoples Bank at that place expected to reopen Saturday or Monday, under a proposed agreement that stockholders pay in $12,000, an amount equal to deposit the bank had in the Arkansas Trust Company at Newport when the latter suspended. Depositors also were being asked to agree to maintain 85 per cent of their deposits in the bank for 12 months, or as long as necessary to stabilize the institu-