9664. Canton Exchange Bank (Canton, MS)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
November 29, 1931
Location
Canton, Mississippi (32.613, -90.037)

Metadata

Model
gpt-5-mini
Short Digest
e53a4bc22e07b5b6

Response Measures

None

Description

Articles report the Canton Exchange Bank suspended in late November/early December 1931 (closure referenced as suspended a week ago in Dec. 6, 1931 story) due to illiquidity of bond holdings amid a depressed bond market, and then reopened under a new directorate in late March 1932. No run is mentioned.

Events (2)
1. November 29, 1931 Suspension
Cause
Macro News
Cause Details
Bank held $400,000 in high-class bonds (>50% of deposits); depressed bond market prevented converting bonds to cash, producing suspension.
Newspaper Excerpt
The Canton Exchange bank, which suspended a week ago, owns $400,000 of high class bonds, which represent more than 50 per cent of the bank's total deposits, according to A. C. Powell of the state banking department, now in charge.
Source
newspapers
2. March 28, 1932 Reopening
Newspaper Excerpt
J S. Love, state superintendent of banks, announced today that the Canton Exchange bank at Canton, Miss. would reopen under a new directorate on next Monday morning. The bank suspended operations several months ago. It will reopen with resources totalling nearly million dollars ... capital of $110,000, $80,000 surplus and $750,000 deposits.
Source
newspapers

Newspaper Articles (3)
1. December 6, 1931 Clarion-Ledger Jackson, MS
Article from Clarion-Ledger, December 6, 1931

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Article Text

CANTON CANTON, Dec. 5-(/P)-The Canton Exchange bank, which suspended a week ago, owns $400,000 of high class bonds, which represent more than 50 per cent of the bank's total deposits, according to A. C. Powell of the state banking department, now in charge. Powell said that under normal conditions with good bond market the bonds might have been converted into cash in an orderly way or in such quantities as would be to meet deposit demands, but due to depression of the bond market this can not be done. Powell said his analysis of the banking situation resulting from closure, while not complete, gives hope of early adjustment. The bank was handled in such a way as to make the work of auditors easy, he said, and he is hopeful of giving a complete report within a week.

2. December 7, 1931 Sun Herald Biloxi, MS
Article from Sun Herald, December 7, 1931

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Article Text

CANTON BANK HELD $400,000 IN BONDS Canton, Miss., Dec. Canton Exchange Bank, which suspended week ago, owns $400,000 of high class bonds, which represent more than 50 per cent of the bank's total deposits, according to C. Powell of the state banking departnow in charge. Powell said that under normal conditions with good bond market the bonds might have coverted into cash in an orderly way or in such quantities as would necessary to meet deposit demands, but due to depression of the bond market this can not be done. Powell said his analysis of the banking situation resulting from closure, while complete, gives hope of early adjustment. The bank was handled in such way to make the work of auditors easy, he said. he hopeful of giving complete report within week.

3. March 27, 1932 Morning World Monroe, LA
Article from Morning World, March 27, 1932

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Article Text

CLOSED MISSISSIPPI BANK TO BE REOPENED MONDAY JACKSON, Miss., March 26 (P)-J S. Love, state superintendent of banks, announced today that the Canton Exchange bank at Canton, Miss. would reopen under a new directorate on next Monday morning. The bank suspended operations several months ago. It will reopen with resources totalling nearly million dollars under bright prospects as leading central Mississippi financial institution. The bank will have capital of $110.000, $80,000 surplus and $750,000 deposits.