5343. American Bank & Trust Company (New Albany, IN)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
trust
Start Date
November 20, 1930
Location
New Albany, Indiana (38.286, -85.824)

Metadata

Model
gpt-5-mini
Short Digest
2fd7e1b6a7f2f315

Response Measures

None

Description

Articles report heavy withdrawals (a run) tied to failures of Louisville banks and runs on nearby New Albany banks; directors closed the bank Nov 20, 1930 to protect depositors and it reopened Dec 1, 1930 after meeting state banking department requirements. Cause attributed to funds tied up in failed Louisville banks and contagion from other local bank failures.

Events (3)
1. November 20, 1930 Run
Cause
Correspondent
Cause Details
Heavy withdrawals triggered by failures of Louisville banks and runs on nearby New Albany institutions; funds tied up in Louisville failures.
Measures
Directors closed the bank to safeguard/protect its resources and depositors (suspended operations).
Newspaper Excerpt
E. Elsey President of the American Bank and Trust Co. said his bank was entirely solvent but had to close to protect depositors because of run.
Source
newspapers
2. November 20, 1930 Suspension
Cause
Correspondent
Cause Details
Closed by directors after runs and because significant funds were tied up in failed Louisville banks; contagion from regional failures led to suspension.
Newspaper Excerpt
Directors ... decided to request the state banking officials to take charge; closed by directors to safeguard its resources after financial conditions here were disturbed by a series of bank closings in Kentucky.
Source
newspapers
3. December 1, 1930 Reopening
Newspaper Excerpt
The New Albany American Bank and Trust company re-opened here today after having been closed since November 20. It was closed by directors to safeguard its resources ... Officials said the institution has met all requirements of the Indiana state banking department.
Source
newspapers

Newspaper Articles (8)
1. November 21, 1930 The Daily Reporter Greenfield, IN
Article from The Daily Reporter, November 21, 1930

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Article Text

Crash Because Their Funds Are Tied Up in Louisville Failure. INDIANAPOLIS. Nov. 21 Six southern Indiana with millions of dollars assets, closed today as the result of recent failures of large banks in LouisKy. The institutions. which were closed during the last hours. located New Albany, English. Corydon, Corydon Junetion and Leavenworth. "These banks crashed because hundreds of thousands of dollars of their funds were tied up in the Louisville banks that failed." LuthSymons, State banking commissioner, said today. SouthIndiana institutions cleared through the Louisville banks.' The State banking department head said that approximately twenty Southern Indiana banks cleared through Louisville instituThe American Bank & Trust New Albany, bank with sources nearly was the largest bank that was closed. After run on the Liberty State Bank, another New Albany instttution with resources of about $340.000. that bank was closed by the board of directors. This resulted in another run on the American Bank & Trust Company, which led directors to close the institution. However, officials of the six other banks in New Albany of the that the situation would be relieved today. They said the stitutions are solvent. Another large institution to close was the Old Capitol Bank Trust Company Corydon with resources about The Crawford County State Bank English, which also crashed, had assets of approximately $1,000,000. closed were Leavenworth State Bank, of Leavenworth, Crawford county, with and the small Jackson township bank at Corydon Junction.

2. November 21, 1930 The Herald-Mail Hagerstown, MD
Article from The Herald-Mail, November 21, 1930

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Article Text

BANKS WESTERN NORTH CAROLINA CLOSE Real Estate Boom Blame for Failure of Institutions Asheville, N. C., Nov. 20, With the real estate boom of a few years ago held responsible by the State Banking Department, the Central Bank and Trust Company here failed today, causing four other banks in western North Carolina to close their doors, and tying up towal deposits of more than $22,000,000. The Bank of Lowell, at Lowell, Gaston county, also closed today, but its closing was said to have no connection with the western North Carolina situation. Whether any of the banks would reopen was in doubt tonight. The Central Bank and Trust Company alone had deposits of more than $18,000,000 at the time of its last statement of condition on September 24. The other banks closing were: The Bank in Biltmore. Asheville suburb, with deposits of $615,051; the First Bank and Trust Company, Hendersonville, deposits, $1,207,628; the Citizens National Bank, Hendersonville, deposits, $1,077,397. and the American Bank and Trust Company, Hendersonville, deposits, $111,638. Four Banks Close Louisville, Ky., Nov. 20, (A).Two Louisville banks were closed today and two just across the Ohio river at New Albany, Ind., as a result of financial' difficulties following Monday's closing of the $54,000,000 National Bank of Kentucky. As the total of Kentucky banks closed was brought to twelve, plus the two New Albany banks, nine building and loan associations in Louisville took advantage of the law permitting them to require 30 days' notice for withdrawals. This was announced as purely precautionary measure nad the institutions were described as in good condition. The banks closing today were the Liberty State Bank, deposits. $286.000, and the American Bank and Trust Company, deposits. $2,430,000. both of New Albany. and two in Louisville, the Bankers Trust Company, deposits. $965,000, and the Union Central, deposits. $500.000. The two New Albany banks had no connection with any Louisville bank. Suspension Report Little Rock, Ark., Nov. 20, Suspension of four more banks in Arkansas was reported to the State Banking Department today, bringing the total this week to 62.

3. November 21, 1930 The Lewiston Daily Sun Lewiston, ME
Article from The Lewiston Daily Sun, November 21, 1930

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Article Text

TWO MORE KENTUCKY BANKS ARE CLOSED Two Others Just Across the River from Louisville Also Suspend 13 Banks Closed This Week; Loan and Building Associations Take Precautions Louisville, Ky., Nov. 20-(P)-Two Louisville banks were closed today and two just across the Ohio river at New Albany, Ind., as a result of financial difficulties following Monday's closing of the $54,000,000 Na. tional Bank of Kentucky. This brought the total of Kentucky banks closed to 13, plus the two New Albany banks, and nine building and loan associations in Louisville took advantage of the law them to require 30 days' permitting notice for withdrawals This was announced as purely a precautionary measure and the institutions were described as in good condition. The banks closing today were the Liberty State Bank, deposits $286, 000, and the American Bank and Trust deposits both of New Albany, and two in Louisville, The Bankers Trust Co., deposits and Union Central, deposits $500,000. The two New Albany banks had no connection with any Louisville bank E. Elsey President of the American Bank and Trust Co. said his bank was entirely solvent but had to close to protect depositors because of run this M. E. Gable, President of the Liberty State Bank, said his concern was solvent but had to turn its fairs over to the Indiana State Bank ing Commissioner because "wild rumors" caused run. Bankers Trust Co., directors announced its affairs had been turned over to the Kentucky Banking Commission for liquidation to conserve

4. November 21, 1930 The Daily World Helena, AR
Article from The Daily World, November 21, 1930

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Article Text

LENGTHY HEARING First Hearing Ever Held Before Woman Justice in Phillips County Results in Binding Two White Men and White Woman to Grand Jury on Robbery Charges Mrs. Little Holley, 'her husband. Marion Holley, and another white man, Herman Howery, were held to the April term of he Phillips county grand jury on charges of robbery and receiving stolen proprty following spirited preliminary hearing that began before Mrs. C, M. Young, St. Francis township justice of the peace, this morning and continued until 1:30 clock this afternoon The hearing was the first that has been held before a justice of the peace in St. Franci stownship ince April, 1917, when the Municipal Court was established to take over the judicial functions of St, Francis township. Today hearing was brought before Mrs. Young newly appointed justice, on a change of venue secured through a writ of mandamus on an appeal from a decision of Municipal Judge EX M. Pipkin. Incidentally, it was the first time in the history of Phillips county that a hearing has been held before a woman justice. Ethel Holley. 21-year-old daughter of Mr. and Mrs. Holley, arrested November with the other defendants, was ordered returned to her home to take care of a younger brother while "Judge" Young takes her case under advisement. Mrs. Young said after the hearing that she would require the girl to visit Mis Ethel Perry, county probation officer. once each week until the grand jury meets next April to consider the charges against the The other three were ordered recased under 000 bond each. but was considered unlikely that fither of the trio would be able to furnish the required bond, necesstating their resuming the stay in the Phillips county jail where they have been held since their arrest weeks ago. motion for continuance on the that valuable witness for the absent was overruled at the start of the hearing this morning when prosecution attorneys agreed to allow submisJon ofa summary of that witness's treflmony by the defense attorney. man named Smith, who has strangely disappeared was blamed by he defendants for the large quantity of stolen property found in on the Helena Atlanta. Ga., Nov. Eugene R Black, governor of the Atlanta Federal Reserve Bank, said today with resources of approximately ten billion dollars in southern banks there should be confidence that fundamentally our banking situation is sound." "And with our agriculture, our industry and our banking resources there should be no uneasiness as to our general situation.' he said. Mr Black. by virtue of his position as governor of the Sixth Fed CIDL Reserve District. is in close and intimate touch with the banking and business situation not only in his district but throughout the South Prior to his connection with the reserve bank he was one of the leading Atlanta bankers. His statement follows "At this time by reason of the closing of a number of southern banks it may be well to consider our fundamental situation. We have just harvested our various crops. All of these crops were large and yielded large cash returns. Our tobacco and cotton crops were larger than last year, and the cash returns from them were very large. The millions received from these crops are distributed in all the southern states from Texas to Virginia. "Our industries are on a sound basis and their products yield a cash return twice as large as our agricultural products. Our problem of unemployment is probably less active than in any other section "Our agricultural banks have largely liquidated their indebtedness to us and their city correspondent banks. Our city banks have very large resources and are abundantly able to handle the financial problems of the South. "With resources of approximately. ten billion dollars in Southern banks there should be confidence that fundamentally our banking situation is sound, and with or agriculture, our industry, and our banking resources there should be no uneasiness as to our general situation. Indianapolis, Nov Six SouthernIndiana banks counties bordering the Ohio rive: were placed in the hands of the tate banking department today it was announced by Luther The institutions which closed their doors were the Liberty Statt Bank, and the American Trust Company. both of New Albany: the Crawford County State Bank of English: the Leavenworth State Bank of Leavenworth: the Jackson Township State Bank of Corydon Junction. and the Old Capitol Bank and Trust company of Corydon. Directors of the New Albany in stitutions met Date yesterday, fol lowing heavy withdrawals. and decided to request the state banking officials to take charge The other four banks failed to open today Closing of the six banks came as the aftermath of the failure of group of Louisville banks a few days age Approximately $4,500,000 in deposits are said to be tied up in the six institutions Several bank examiners were sent to the banks today by Symons.

5. December 1, 1930 Kingsport Times Kingsport, TN
Article from Kingsport Times, December 1, 1930

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Article Text

BANK RE-OPENS NEW ALBANY, Ind., Dec. 1. (P)-The New Albany American Bank and Trust company re-opened here today after having been closed since November 20. It was closed by directors to safeguard its resources after financial conditions here were disturbed by a series of bank closings in Kentucky. Officials of the bank said the institution has met all requirements of the Indiana state banking department.

6. December 2, 1930 The Des Moines Register Des Moines, IA
Article from The Des Moines Register, December 2, 1930

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8 BANKS CLOSE GRAIN MEN FIGHT AND ONE OPENS Merger Negotiations Have Part in Two Suspensions. (By The Associated Press.) Eight banks in the United States closed their doors Monday, merger negotiations given as the cause in two instances. One bank reopened after a period of susThe First National bank of Blytheville, Ark., did not open. An announcement said it had closed "pending a merger with the Farmers Bank and Trust company At Stephens, Ark., the Peoples bank suspended for five day period. Officials said the closing was for reorganization or possible consolidation with the Bank of Stephens Three State Banks Close. Closing of three state banks in Illinois was reported to State Auditor Oscar Nelson at Springfield The banks were the Johnson City State bank, the Rock Grove State bank and the Marine Trust Bank of Carthage A Marion III., dispatch said the Marion First National bank had closed. The action was taken it was reported to protect depositors against heavy withdrawals At Chatham Va., the Chatham Savings bank. one of the oldest financial institutions in Pittsylvania county failed to open for business The bank. capitalized at $100,000 was closed by order of the state banking department. One Connecticut Closing. Distribution of Christmas club checks totaling $30,000 was halted when the Central Fairfield Trust company of Norwalk, Conn., was suspended by means of restraining order issued by state bank commissioner The bank's difficulties, the commissioner indicated. were largely the result of heavy shrinkage in commercial deposits which forced liquidation of quick The New Albany American Bank and Trust company at New Albany Ind. reopened after having been closed since Nov. 20.

7. December 2, 1930 Tulsa World Tulsa, OK
Article from Tulsa World, December 2, 1930

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The bank withstood heavy runs Friday and Saturday. Directors of the Johnson City bank said their decision to close was in anticipation of run because of the situation in Benton and Marion. The other banks that failed to open today in widely separated were the State Bank of Rock and the Marine Trust bank of Carthage. INDIANA BANK RESUMES OPERATIONS NEW ABBANY. Ind., Dec. 1 (A. P. New Albany American Bank and Trust company reopened here today after having been closed November 20. It was closed by directors sufeguard its resources after financial conditions here were disturbed by series of bank closings in Kentucky. CHATHAM. VA BANK IS CLOSED The Chatham Savings bank one of the oldest financial institutions in Pittsylvania county, failed to open for business today. The bank was capitalized at 000 note pinned to the door said the bank was closed by order of the state banking County officers said approximately $25 000 of county money on deposit was protected by bond. ANSAS BANK SUSPENDED The Peoples bank here suspended today for five day period. Officials said the closing was for or possible dation with the bank of Stephens. for the proposed merger are in progress, it announced.

8. September 14, 1931 Vidette-Messenger of Porter County Valparaiso, IN
Article from Vidette-Messenger of Porter County, September 14, 1931

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Article Text

NEW ALBANY BANK CLOSED Sept. American Trust Bank and Trust company at New Albany, Ind., with total of more than $1,000,000, was ordered closed by the state banking department Thursday State Banking Commissioner Luther Symons left for New Albany person to take of the charge affairs. This bank, of which Elsby president, suspended shortly after the failure of the National Bank Kentucky about year ago, but later was reopened. on the bank was said have resulted in the second closing institution.