Old Capital Bank & Trust Company

Bank Information

Episode Type: Suspension → Reopening
Bank Type: trust company
Start Date: November 21, 1930
Location: Corydon, Indiana (38.212, -86.122)

Metadata

Model: gpt-5-mini
Short Digest: c01a6b15

Response Measures

None

Description

Bank (named in sources as both Old Capitol and OCR variant Old Capital) in Corydon closed by directors/placed in hands of state banking department on Nov 21, 1930 after funds were tied up in failed Louisville banks (correspondent exposure). It reopened Dec 4, 1930 under depositor agreement limiting withdrawals (60-day moratorium then staged withdrawals). No discrete misinformation-triggered run described for this specific bank.

Events (2)

1. November 21, 1930 Suspension

Cause: Correspondent
Cause Details: Directors/state banking department closed the bank after millions in funds were tied up in failed Louisville banks, creating liquidity problems.
Newspaper Excerpt: Four Southern Indiana banks in counties bordering the Ohio river were placed in the hands of the state banking department today. They were ... the Old Capitol Bank & Trust company of Corydon.
Source: newspapers

2. December 4, 1930 Reopening

Newspaper Excerpt: Old Capital Bank and Trust Company here was reopened Wednesday ... depositors had agreed they would not withdraw money for 60 days, then withdrawals would be only 10 per cent, and 10 per cent each 30 days thereafter.
Source: newspapers

Newspaper Articles (6)

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 Messenger-Inquirer Owensboro, KY

Article from Messenger-Inquirer, November 21, 1930

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RECEIVER ASKED Louisville, Ky., Nov. 21. (AP)Application for a receiver for the Louisville Trust company was filed today in Jefferson circuit court by Attorney General Cammack. This bank has been in the hands of the state banking department since It failed to open Monday, and W. A. Dicken, deputy state banking commissioner, said it would pay out almost dollar for dollar. FOUR INDIANA BANKS CLOSE Indianapolis, Nov. 21. (P)-Four Southern Indiana banks in counties bordering the Ohio river were placed in the hands of the state banking department today. They were 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 & Trust company of Corydon. SIFT PROMISED Nashville, Tenn., Nov. 21. (AP) Governor Horton, of Tennessee, to. day pledged "full and complete investigation" of all state government departments as result of state financial difficulties which followed the naming of a receivership for Caldwell & Company, investment bankers.

3. November 21, 1930 Waukegan News-Sun Waukegan, IL

Article from Waukegan News-Sun, November 21, 1930

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MORE BANKS CLOSED TODAY Withdrawals On Strength Of Unfounded Rumors Many Closing Orders. drawals, caused in some by unfounded rumors, forced the closing 12 banks in six southern and middle western states today. The total number banks which closed within the last five days was brought 110 result finanin Indiana, Kansas, North Carolina, Missouri, Kentucky and Tennessee. Twenty closings OCyesterday. Dependence larger institutions which failed Little Rock, Ark. Nashville, attributed the cause difficulties for majority the The situation Louisville, Ky. caused four banks southern Indiana close today. False rumors that two Albany, Ind., banks checks, which originated in their refusal to cash vouchers on Louisville caused both suspend yesterday The banks that closed day Crawford County State bank English: State bank; Jackson Township bank Corydon. Junction, and Old Capitol bank and trust company of Corydon. The National bank Asheville, the Citizens bank of Bryson City and the Bank Hazel suspended North today, raising to the total the state all was bereal Failure of Quincy, III., institutions last blamed for eight other closing, was sponsible for Ripley County bank Doniphan, Mo., and the Bank of Edina, Mo., In Kentucky, where eight Louisville others in the are protecting their the Bank Crestwood failed open today. Nine loan tions taken law permitting them require 30 advance notice for withdrawals. The First State Bank and True: company Paris, Tenn., failed open today. The institution, has total resources of $1,000,000. had weathered steady withdrawals over period two weeks previously. (Kans.) bank took similar turned its state department for The bank had The American Exchange Trust company Little suspension precipitated the closing 34 Arkansas banks affiliated with reached stage in its today which indicated it would be reopened new national bank was formed Merchants suspended Monday with deposits of $725,000. FOREIGN EXCHANGES NEW YORK, Nov. eign irregular. DemandBritain France Belgium Germany Holland Norway Sweden 26.8214: Denmark Switzerland Spain 11.24; Greece Austria Tokyo 100.14 Great Britain dollars, other in cents. MERCANTILE EXCHANGE CHICAGO, prices on the Chicago Mercantile exchange: Eggs November refrigerator standard December refrigerator standard Butter: November storage stand29, December storage standard January storage standard CHICAGO CLEARING HOUSE CHICAGO, Nov. (INS) Clearing today: Clearings Balances $5,800,000. NAME MEANT NOTHING SEATTLE name?" asked one policeman other when Frank Hubby, 25, booked charge and of nis family.

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

Article from The Daily World, November 21, 1930

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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. November 22, 1930 The Owensboro Messenger Owensboro, KY

Article from The Owensboro Messenger, November 22, 1930

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failed to open today bringing total number banks to close western North Carolina two days nine. The bank had deposits $2,000,000. RECEIVER ASKED Louisville, Ky., Nov. Application for receiver for the Louisville Trust company was filed today in Jefferson circuit court by Attorney General Cammack This bank has been the hands of the state banking department since failed to open Monday, and Dicken, deputy state banking commissioner, said would pay out most dollar for dollar. FOUR INDIANA BANKS CLOSE Indianapolis, Nov. 21. Southern banks in counties bordering the Ohio river were placed the hands of the state banking department today. They were Crawford County State Bank of English: the Leavenworth State Bank of Leavenworth; the Jackson Township State Bank Corydon and the Old Capitol Bank Trust company of Corydon.

6. December 4, 1930 Fort Worth Star-Telegram Fort Worth, TX

Article from Fort Worth Star-Telegram, December 4, 1930

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INDIANA BANK REOPENS: WITHDRAWALS LIMITED CORYDON, Ind., Dec. Old Capital Bank and Trust Company here was reopened Wednesday after having been closed by its directors since 21. It was announced depositors had agreed they would not withdraw money for 60 days. then withdrawals would be only 10 per cent. and 10 per cent each 30 days thereafter.