Farmers & Merchants Bank (Green Forest, AR)

Episode Information

Episode UID
81034571572
Episode Type
Run → Suspension → Reopening
Bank Type
state
Bank ID
8103457 routing
Routing Number
81-0345
Start Date
December 18, 1930
Location
Green Forest, Arkansas (36.335, -93.436)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
37614dbfe6210608

Response Measures

None

Description

Closings tied to Hudspeth chain contagion; bank later reorganized and reopened under a new name.

Events (3)
1. December 18, 1930 Run
Cause
Local Banks
Cause Details
Heavy withdrawals prompted by association with the Hudspeth chain and runs on related banks after the American Exchange Trust Co. failure.
Measures
Suspended operations and placed in hands of banking department pending reorganization; later reopened under new bank.
Newspaper Excerpt
Gradual withdrawals since Nov. 17 ... heavy withdrawals of The three weeks developing from unrest depositors.
Source
newspapers
2. December 18, 1930 Suspension
Cause
Government Action
Cause Details
State banking department took the bank into custody following heavy and constant withdrawals.
Newspaper Excerpt
failed to open for business and had been taken in charge by the Banking Department for liquidation.
Source
newspapers
3. January 24, 1931 Reopening
Newspaper Excerpt
The Citizens State Bank is the name of new bank which opened in Green Forest, Saturday, January 24. The new bank is a reorganization of the Farmers and Merchants Bank, which suspended on December 18 ... The bank was in no way insolvent, but was forced to close its doors because of the general unrest of the public.
Source
newspapers

Newspaper Articles (5)
1. December 18, 1930 The Courier News Blytheville, AR
Article from The Courier News, December 18, 1930

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Article Text

Institutions at and Green Forest Doors Today. LITTLE ROCK Two northwest banks were swept the state's already extended list defunct nancial institutions today the closing of the Peoples Bank of Berryville and the Farmers and Merchants bank of Green Forest. Both members of the twelve of which shut their doors yesterday. The Berryville bank was capitalized with deposits $177,835. and the Green Forrest institution had capital stock of with deposits aggregating $158.- The state banking took immediate action to nince the two banks the hands of department examiners. check complet this merning by Taylor banking commissioner. devosits of the Hudsoeth stitutions to anproximately with canital and surplus gregating action the two banks pending business today attributed heavy withdrawals of The three weeks developing from unrest depositors. Two of the banks closed the Marion County bank of and the Bank of Pyatt. DOYSESS charters and as the Citizens Bank of Yellville. but under senarate names the remaining nine pending yesterday. the First National hank of Harrison and the First National bank of Eureka Springs operate under national banking charters and have been placed in national bank examiner from the office of the The banks closing vesterday and today did no' attempt to take vantage the five day provision provided by state banking laws reorganization of affairs but closed outright. No plans for reprganization have been announced and believed the aftairs of the various will be the First National bank and the Scctland County Savings bank of Laurinburg were closed today. approximately In deposits.

2. December 19, 1930 St. Louis Post-Dispatch St. Louis, MO
Article from St. Louis Post-Dispatch, December 19, 1930

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Article Text

HEAVY RUN CAUSES CLOSING OF BANK AT MT. VERNON, ILL. Deposits at Time of Last Call Were $741,151 — Withdrawals of $40,000 in One Day. Special to the Post-Dispatch. MOUNT VERNON, Ill., Dec. 19.—The Jefferson State Bank failed to open its doors this morning, but it is thought it will be able to liquidate. In its report Sept. 30, the bank showed time and call deposits of $741,151. Heavy withdrawals in the last few weeks caused the bank to close. Withdrawals yesterday amounted to $40,000. Fourth Missouri Failure in Last Two Days. By the Associated Press. JEFFERSON CITY, Dec. 19.—The Bank of Canton, at Canton, in Lewis County, with total resources of $330,936, was closed today by its board of directors and placed in the hands of the State Finance Department, following heavy and constant withdrawals, it was announced here. The bank's last statement to the department showed deposits of $268,898 of which $12,696 were public funds; loans, $196,632; capital stock, $20,000; surplus, $13,000; undivided profits, $3529; bills payable, $25,000. G. L. Martin is president and S. F. Hoerer cashier. The Union Savings Bank at Monroe City, in Monroe County, with $445,095 resources was the first to close. Its notice to the Finance Department was followed by a notice from the Bank of Osage County, at Linn, and the State Bank of Collins, in St. Clair County. The Bank of Osage had $244,155 resources; $216,280 loans; $15,000 capital stock; surplus $10,000 and $25,000 bills payable. J. Pull Jones was president and T. A. Dubrouillet, cashier. No reason for the closing was given. The State Bank of Collins had $81,046 resources; $60,910 loans; $10,000 capital stock; $1200 surplus; $2099 undivided profits and $12,820 bills payable. W. J. Bard is president and O. E. Simms cashier. No reason for the closing was given. The Finance Department has not assigned an examiner for either the Linn bank or Collins bank. Heavy withdrawals were given as the reason for the closing of the Monroe City bank. The bank's last statement listed $261,880 loans, $60,000 capital stock, $6000 surplus, $3504 undivided profits, $311,570 deposits, $8000 bills payable and $14,397 other liabilities. J. D. Robey was president and G. E. Chipman cashier. Bank at Keithsburg, Ill., Fails With $430,000. Special to the Post-Dispatch. KEITHSBURG, Ill., Dec. 19.—The Citizens State Bank of Keithsburg with deposits of $430,000 closed yesterday. It was the only bank in town. Three Banks Fail in Northwest Arkansas; 13 in Two Days. Special to the Post-Dispatch. LITTLE ROCK, Ark., Dec. 19.—Three more banks in Northwest Arkansas, two state and one national, closed yesterday, bringing the number of depositories which have suspended in that section the past two days to 13. State Banking Commissioner Walter E. Taylor announced that the People's Bank at Berryville and the Farmers' and Merchants' Bank at Green Forest, with which A. T. Hudspeth is connected, failed to open for business and had been taken in charge by the Banking Department for liquidation. The First National Bank at Green Forest also closed and has been placed in charge of Federal examiners. Closing of the two institutions leaves Green Forest without a bank. The People's Bank at Berryville had deposits of approximately $177,000, according to its report to the Banking Department Sept. 24, and the Green Forest State Bank's deposits on that date totaled $158,660. Gradual withdrawals since Nov. 17 when the American Exchange Trust Co. of Little Rock closed, was assigned as the cause for closing the two banks. Hudspeth was a director in the Little Rock bank. State Senator F. O. Butt is president of the People's Bank at Berryville and Hudspeth is vice president. Bank With Deposits of $1,117,000 Closed at Canastota, N. Y. By the Associated Press. CANASTOTA, N. Y., Dec. 19.—Joseph A. Broderick, State Superintendent of Banks, today announced he has taken possession of the State Bank of Canastota, here, as a result of what he said appears to be unsound financial conditions. "Material losses on loans and investments," said Broderick, "have impaired the condition of the bank and rendered it advisable that this action be taken in order to conserve the assets in the interests of depositors." On Sept. 24, the bank reported gross deposits of $1,117,814. Elizabeth, N. C., Bank, With $1,094,225 Liabilities, Closes. By the Associated Press. ELIZABETH, N. C., Dec. 19.—The Savings Bank and Trust Co. of Elizabeth City, N. C., failed to open its doors for business today. Future action would be governed by the State Board of Bank Examiners, it was said. Officials said the

3. December 25, 1930 The Star Progress Berryville, AR
Article from The Star Progress, December 25, 1930

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Article Text

Closing of Hudspeth Interests North Arkansas Causes Withdrawals on Bank Here. The Peoples Bank here failed to Thursday morning of last it being closed by orders of the board of directors to surpress which had developed caused twelve banks of the Hudspeth chain in Marion, Boone, Carroll and Searcy counties closing on Wednesday. It is said that this bank is vent but that was not in position to withstand run, evidences which had been shown for eral days prior to its closing, due to being member of the Hudspeth interests, and it neces. sary for it to close for the protection of its depositors. While awaiting the re-organization of this bank, has hampered business some extent, however, Berryville has not been without banking facilities at any time the First National Bank has mained open during this period of financial unrest. The closing of the Peoples Bank came as surprise to many citizwho had seen the two Berryville institutions remain open through the period of bank closings over the state, and was believed that the banks of Berryville, and Carroll county would the financial storm felt generally in the state and nation. is understood that persistent and growing tendency toward withdrawals had been reducthe cash in this bank for days. Some depositors had also been reducing their balances in the bank to the point where closing for short time was the only remedy. The situation in this part of Arkansas, differs from closings in other parts of the state, wherein the assets of the bank remained tact through conservative management, and withdrawals alone can be blamed for the situation. Over 90 Arkansas banks have suspended or closed for liquidation since November 17, when the ican Exchange Bank and Trust Company at Little Rock, closed. About have reopened or re-organized. The banks involved in this suspension are: Citizens Trust Co., Harrison. First National Bank, Harrison. American Exchange, Leslie. First National Bank, Eureka Springs. Bank of North Arkansas, Ever- Citizens Bank, Yellville. Citizens Bank, St. Joe. Bank of Lead Hill, Lead Hill. First State Bank, Marshall. Bank of Alpena Pass, Alpena. Marion County Bank, Flippin, Bank of Pyatt, are branches of the Citizens Bank at Yellville. closed when the parent bank suspended. The First National Bank and the Farmers Merchants Bank Green Forest, which were also closed Wednesday, were independently owned, the controlling stocks owned by citizens of this county. Out of the six banks operating Carroll County, only two remain open, the First National here and the Bank of Eureka Springs. understood that the closed institutions will again in open short time.

4. December 26, 1930 The Producers News Plentywood, MT
Article from The Producers News, December 26, 1930

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Article Text

TWELVE BANKS GO BROKE WEDN'SDAY Little Rock, Ark., Dec. 18.-The Peoples Bank at Berryville and the Farmers and Merchants Bank and the First National Bank at Green Forest closed today. A. T. Hudspeth, Little Rock financier, who had interest in 12 other banks in northwest Arkansas which closed yesterday because of heavy withdrawals was a director of the American Exchange Trust Company of Little Rock which closed last month. State banking department officials said his connection with the institutions caused the runs on the banks closing yesterday and today.

5. January 29, 1931 The Madison County Record Huntsville, AR

Article Text

Green Forest Bank Reopens With New Home Green Forest, Jan. The Citizens State, Bank is the name of new bank which opened in Green Forest, Saturday, January 24. The new bank is a reorganization of the Farmers and Merchants Bank, which suspended on December 18, following the closing of a chain of banks in Northwest Arkansas known as the Hudspeth chain, on December 17. The bank was in no way insolvent, but was forced to close its doors because of the general unrest of the public, the bank's officials having strong evidence that heavy withdrawals would be made by the depositors and force them to close. Thus, their movement of suspending business pending reorganization was a move calculated to serve the funds of the bank and its depositors. Officers elected for the new institution are: Lum AnderJ. J. Erwin, president; Logan Stafcashier, and assistant cashall the whose balance $25 have signed not to withdraw for period of time: one-fourth in nine one-fourth in twelve months. one-fourth in 18 months and one-fourth in 24 months.