Stock Yards Bank - Louisville, KY

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: November 21, 1930
Location: Louisville, Kentucky (38.254, -85.759)

Metadata

Model: gpt-5-mini
Short Digest: a1786253

Response Measures

Public signal of financial health

Description

Article (1930-11-21) describes false rumors circulated by A. & P. that the Stockyards Bank had closed, producing several days of financial stress and long lines of depositors. The bank publicly announced it was in excellent condition and there is no mention of a suspension or receivership for this bank in the article. The rumor is a concrete false report (warrant filed), so this is classified as a run driven by misinformation.

Events (1)

1. November 21, 1930 Run

Cause: Rumor Or Misinformation
Cause Details: A. & P. (Great Atlantic and Pacific Tea Co.) allegedly circulated a false report to store managers that the Stockyards Bank had closed, triggering several days of financial stress and long lines of depositors.
Random Run: Yes
Random Run Snippet: A.&P. notified managers Stockyards Bank had closed; report found false.
Measures: Bank publicly announced it was in excellent condition; authorities filed a warrant against the A.&P. local manager for circulating false rumors.
Newspaper Excerpt: The Great Atlantic and Pacific Tea Co. and its local manager...were charged with willfully circulating false rumors about the Stockyards Bank here...the tea company notified its local store managers yesterday the Stockyards Bank had closed.
Source: newspapers

Newspaper Articles (1)

1. November 21, 1930 Evening Star Washington, DC

Article from Evening Star, November 21, 1930

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Article Text

WARRANT FOLLOWS FALSE BANK RUMOR A. & P. Tea Co. Accused of Circulating Story-Ninth Failure in Carolina. By the Associated Press. LOUISVILLE, Ky., November 21.The Great Atlantic and Pacific Tea Co. and its local manager, Albert Ivison, were charged with willfully circulating false rumors about the Stockyards Bank here. today. The action followed five days of financial stress which closed nine banks in this county, six in other parts of the State and six along the Southern Indiana border. Under Kentucky law it is a felony willfully to circulate false rumors that would embarrass a bank, and the Stockyards Bank announced it was in excellent condition. Its warrant charged the tea company notified its local store managers yesterday the Stockyards Bank had closed. At Ivison's office it was said he would make an explanatory statement. The Kentucky banks to close, beginning with the closing Monday of the $ 4,000,000 National Bank of Kentucky, was brought to 15 by failure of the Hopkins County Bank of Madisonville to open. On petition of Attorney General Cammack a receiver was appointed for the Louisville Trust Co., affiliated with the National Bank of Kentucky, which is in Federal receivership. The center of banking activity here moved over to the post office today and a shift in post office personnel was necessary to handle the long lines of depositors. Meanwhile officials of other banks said that while there was more than usual activity at most of them, they were in condition to meet demands. PUTS LOSS AT $50,000.