6130. American Bank & Trust Company (New Albany, IN)

Bank Information

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

Metadata

Model
gpt-5-mini
Short Digest
2f2d4f32

Response Measures

Full suspension, Books examined

Other: State banking commissioner took charge; liquidation mentioned for some banks.

Description

Newspapers from Nov 20-21, 1930 report heavy withdrawals (a run) on the American Bank & Trust Company of New Albany after large Louisville bank failures tied up its funds; directors closed the bank and state banking officials took charge. Cause attributed to funds tied up in failed Louisville correspondent banks rather than mere rumor. The bank appears to have been closed and placed in the hands of the state banking department.

Events (3)
1. November 20, 1930 Run
Cause
Correspondent
Cause Details
Heavy withdrawals triggered by large amounts of the bank's funds tied up in recently failed Louisville banks (correspondent/clearing relationships).
Measures
Directors closed the institution to protect depositors; requested state banking officials to take charge.
Newspaper Excerpt
This resulted in another run on the American Bank & Trust Company, which led directors to close the institution.
Source
newspapers
2. November 20, 1930 Suspension
Cause
Correspondent
Cause Details
Bank closed after runs caused by financial contagion from Louisville bank failures which had tied up the bank's funds; state banking department took charge.
Newspaper Excerpt
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... the American Bank and Trust Company, deposits. $2,430,000. both of New Albany.
Source
newspapers
3. November 21, 1930 Other
Newspaper Excerpt
Directors of the New Albany institutions met yesterday, following heavy withdrawals, and decided to request the state banking officials to take charge. Several bank examiners were sent to the banks today by Symons.
Source
newspapers

Newspaper Articles (5)
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. 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.