gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
f454af111915dbc8
Response Measures
None
Description
State banking department took charge after the five-day suspension; later indictments of executives.
Events (3)
1.November 17, 1930Run
Cause
Correspondent
Cause Details
Heavy withdrawals triggered by announcement/receivership of Caldwell & Company, an investment house connected with the bank.
Measures
Directors voted to suspend operations for five days to protect depositors.
Newspaper Excerpt
the closing was forced by heavy withdrawals which followed announcement of the financial condition of Caldwell & Company, Nashville, Tenn.
Source
newspapers
2.November 17, 1930Suspension
Cause
Correspondent
Cause Details
Board invoked five-day statutory suspension after excessive withdrawals (about $4,000,000) following Caldwell & Co. failure.
Newspaper Excerpt
failed to open for business here today ... the board of directors ... has voted to suspend operations for five days to protect depositors.
Source
newspapers
3.November 22, 1930Receivership
Newspaper Excerpt
The banking department has taken charge of the American Exchange Trust Co. of Little Rock ... in the process of being reorganized.
Source
newspapers
Newspaper Articles (24)
1.November 17, 1930The Indianapolis TimesIndianapolis, IN
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Steady Run Blamed By United Press LITTLE ROCK, Ark., Nov. 17.The American - Exchange Trust Company, with deposits in excess of $15,000,000, failed to open for business here today. A notice posted by officers of the bank stated that the institution, in the opinion of its board of directors, still is solvent and has voted to suspend operations for five days to protect depositors. Twenty-eight affiliated banks also are closed. The directors of the institution, which was capitalized at $1,000,000 and on Sept. 24, had assets of $20,005,697, announced that the action was forced "by excessive withdrawals totaling more than $4,000,000 during the last ten days."
Banks Closed Arkansas
Sixteen Institutions Take Advantage of Five Day Law To Protect Depositors.
Little Rock, Nov. 17. teen Arkansas banks were closed for deportation. today for five day period under state law which permits such closure without the state bank commissioner taking over the banks. Fourteen of the banks are of the B. Banks company chain and two are private banks. The largest of the banks to close will probably was the American Exchange Trust the end of the week. company of Little Rock, one of the largest banking institutions in Arkansas. According to an announcement by the board of directors of the American Exchange Trust company the closing was forced by heavy withdrawals which followed announcement of the financial condition of Caldwell & Company, Nashville, Tenn., investment bankers. New York, Nov. 17. According to Walter Taylor, state bank commissioner other banks of the state are expected to take advantage of the five day closing period as means of landmarks on the tecting depositors.
3.November 17, 1930The Oakland Post EnquirerOakland, CA
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Sixteen Banks In Ark. Closed
LITTLE ROCK, Ark., Nov. 17 (INS) Sixteen Arkansas banks were closed today for five-day period under state law which permits such closure without the state bank missioner taking the banks. Fourteen of the banks are of the A. B. Banks company chain and two are banks. The largest of the banks to close was the American Exchange Trust company of Little Rock, of the largest banking institutions In Arkansas. According to an announcement by the board directors of the AmeriExchange Trust company the closing forced by heavy withdrawals which followed announcement of the financial of Caldwell Co., Nashville, Tenn., investment
PLAN TO REOPEN ARKANSAS BANKS Governor Issues Expression of Confidence in Financial Stability Little Rock. Ark. Nov. 18 (AP) Optimism was expressed in statements of Arkansas financial leaders as they laid plans today to reopen some 43 banks which have suspended temporarily or closed. The executive committee of the American Exchange Trust company here, largest and one of the oldest banks in the state, which suspended for five days, was engaged with plans to resume operations. Closing of the American Exchange was followed by suspension of activities by the 42 other banks, the aggregate deposits of which were more than $27,000,000. Seek to Avert Run A. B. Banks, president of the American Exchange, and controlling stockholder in 34 of the 42 other banks scattered over the state, said the boards of directors were trying to obtain pledges of loyalty from their communities and supporting capital to assure freedom of danger from a run. Expressions of confidence in the general ability of the state's financial structure were added by Governor Parnell and Senator Joe T. Robinson to those of bankers. The Little Rock Clearing House association by a statement assured the public that local banks were in sound condition. Hysteria following receivership proceedings against Caldwell and Company, Nashville, Tenn., bankers, until recently interested in the American Exchange, was attributed by directors of the latter as the cause of steady withdrawals which reached about $4,000,000.
5.November 18, 1930Kingsport TimesKingsport, TN
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TO ARKANSAS BANKS
Optimism permeated Arkansas financial leaders as they plans today some of the 43 banks to reopen which temporarily suspended closed The executive committee of the American Exchange Trust Company here, largest and one of the oldest banks in the state which suspended for five days, was employed upon plans to resume erations. Closing of the American Exchange was followed by suspension of activities by the 42 other banks, the aggregate deposits of which more than 000.
B. Banks, president of the American Exchange, and controliing stockholder in 34 of the 42 other banks scattered over the state, said the boards of directors trying to obtain pledges of loyalty from their communities and supporting capital to assure freedom of danger from run. Resumption of normal business by the banks, he said, would folsuch assurances to directors. Expressions of confidence in the general stability of the state's financial structure were added Governor Parnell and Senator Joe T. Robinson to those of bankers. The Little Rock clearing house association by a statement assured the public that local banks are in sound condition, have large cash resources and latively small amount of bills payable. following receivership proceedings against Caldwell and company, Nashville: Tenn., bankuntil recently interested in the American Exchange, was attributed by directors of the latter as the cause of steady withdrawals which reached about 000,000. The American Exchange's capital was $1,500,000, with deposits about $17,000,600 as of the last bank call. Mr. Banks said the banks side Little Rock which closed independent units in affiliated with the American Exchange Trust Company, "although Mr. Banks president of the Little Rock institution. know the people of these towns are gravely interested to know when the banks will be reopened," he added. "That will be determined by the local boards with whom am conferring as rapidly as possible."
RE-ORGANIZING BANKS
Little Rock, Nov. timism was expressed in statements Arkansas financial leaders as they plans today to re-open some banks which have suspended temporarily closed. The executive committee of American Exchange Trust company here, largest and one of the oldest banks the state, which suspended for five days, was engaged with plans resume operations.
7.November 18, 1930Press-TelegramLong Beach, CA
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Plan to Reopen Arkansas Banks Being Evolved
LITTLE ROCK, Ark. Nov. 18.-(P)-Plans for re-opening fortythree banks which have suspended temporarily or closed were being worked out today by financial experts of the State. Closing of the American Exchange Trust Company, largest and one of the oldest banks in the State, which suspended for five days, was followed by suspension of activities by the forty-two other banks, the aggregate deposits of which were more than $27,000,000.
Kentucky Banks Close LOUISVILLE Ky., Nov. 18.-(P) -Eight Kentucky financial Institutions with resources totaling more than $75,000,000 were closed today
8.November 18, 1930The Atlanta JournalAtlanta, GA
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ARKANSAS BANKS ASK FOR PLEDGES OF PUBLIC'S FAITH
Loyalty From Affected Communities Sought to Assure Safety
LITTLE ROCK Ark., Nov. Opt permeated statements of Arkansas financial leaders as they laid to re-open of the banks which temsuspended or Monday The the American Exchange Trust Company largest and of the oldest banks in the state which for days. was employed upon plans operations Closing of the American Exchange was by activities the -eight banks. Banks, president of American rolling stockholder in of the other banks scattered the state, said the boards directors try. ing of loyalty from their and capital to assure freedom of danger Resumption of normal business by the banks, he shid. would follow such to Expressions of confidence in the of the financial added by nor Parnell and Senator Joe T. RobThe Little Rock Clearing House Asthe public that local banks are in sound cash resources and relatively small amount of bills Hysteria following proceedings against Caldwell & Co. until cently the Ex change was attributed by directors of the latter as the cause of steady withdrawals which reached about The Exchange Bank's capital was deposits of about as of the last call September
EIGHT CLOSED KENTUCKY BANKS INVOLVE $75,000,000 LOUISVILLE Kentucky more nan closed Tuesday The larg. est was the National Bank of at the of a Paul C. Keyes. of the staff of the comptroller the at Washing ton Its approximate $60, 000 Directors of the National Bank of Kentucky the suspension Monwas of wild its condition. with its closing two the Louisville Trust Company and the Security Bank Their disaid solvent and that as precautionary measure The institutions are affiliated the banks in Louisthe American Mutual Savings and the First Standard Bank, cleared through the Louisville closed. The of St Louisville subalso as precautionary banks outside Louisville also closed when the Na. tional Bank of Kentucky had sus. McElwain Me. & Ky. Bank at Ky. National Bank of as correspondent Officers of other leading Louisville Monday night deposits new were opened during the the were solvent.
CO RECEIVER IS APPOINTED FOR ALDWELL & COMPANY for the Railway entered his investment bank for ing house He and Lee Douglas. Nash Thursday night, will enjoy Mr Smith named co-receiver Monday by Federal Judge John. Gore application of AtGeneral Smith who torney pointed out that Caldwell & Co. was interested in the closed of Tenwhich the had on de$3 000 the time was tak by the superintendent further appears,' the attorney the may be in other respects dithe of Caldwell & ns for reasons later pointed out the had and Mr Douglas reason of the large far the best hat Mr Douglas said he weland tha had asked informally for and said in state Douglas in acthe be pursued and possible the tion for the benefit of all its credistatement follows The of the will & Co. work the rapidly as for the creditors Major for the ership has assumed the duties office this morning. and he and Mr Douglas in complete policies to be will utmost together during the entire period of the World naturally under stand one another's ideas During the Mr. Smith was chairman of the Council of National Defense, for Tennessee and Mr. Douglas was United States district attorney Nashville, and in these capacities they were closely assoCLEARING HOUSE TAKES OVER TWO BANKS AT CINCINNATI CINCINNATI The & Trust Company and the Pearl Market Bank & Trust was held by the Company Tuesday from trol into the hands of the Cincinnati Clearing House Association it was anounced by the clearing house Eight of the largest banks in Cincinnati issued a simultaneous state-
9.November 19, 1930Imperial Valley PressEl Centro, CA
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TOTAL OF 69 BANKS CLOSED IN SIX STATES CHICAGO. Nov. 19. U.P.-Curtains were drawn and closing signs hung today on the doors of 69 banks in six central and south central and south central states as boards of directors held conferences to determine when most of them might be reopened without danger of experiencing runs. The list of banks which had closed or suspended business since Monday morning was raised yesterday when 13 small Arkansas institutions joined with 40 others which previously had taken advantage of a state law allowing them to close for five days for reorganization. The list of closings then was: Arkansas. 52; Kentucky, 8; Missouri, 4; Illinois, 2: Iowa, 1; and Indiana, 1. Practically all of the closings in Arkansas and Kentucky resulted from fear of runs after the failure of Caldwell & Company at Memphis Tenn., led to withdrawais of more than $4,000,000 on the American Exchange Trust Company at Little Rock. The closings in Missouri and Illinois also were due to failure of larger institutions, all having deposits in two large Quincy, Ill. banks which failed. In practically all cases, directors announced the closings were purely for the protection of depositors and predicted the institutions would reopen within five days after suspending business.
SUSPENDED BANK GROUPS
Arkansas Institutions Balk Runs During Hysteria Reign.
Little Rock, Ark., Nov. Thirteen small Arkansas banks Tuesday were added the list of closed or suspended institutions in the state. Tuesday curtains drawns and signs hung on banks m every state these, have taken advantage state law permitting suspension for five and eight have been taken by the state Tuesday's suspensions, nine number, accounted for by officials in the same manner those of "Closed to protect the depositors, the statements "We probably reopen within five days. The State Bank Viola, the Bank of the Bank and the Pollard, the four inwere and taken over the state banking partment said, cial statements, been affected by the closing the American Exchange Trust company of Little Rock. Banks, president of the AmeriTrust company, the largest institutions in his with the outstate banks which he holds large interests. He reiterated his earlier reassuring statements the small banks would reopen their boards had obtained pledges from the munities, by outside capital, against Most officials felt any attempt to one the early might be met by heavy run Financial leaders agreed that difficulties Caldwell Co., Nashville, Tenn., bankers, who placed in the hands of receiver last were responsible for the of financial hysteria. after Caldwell & Co. receivership. than $4,000,000 withdrawn from the American change Senator Joseph T. Robinson pointed out.
11.November 21, 1930Jonesboro Daily TribuneJonesboro, AR
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FINANCES ARE CLEARING UP IN ARKANSAS
Opening of Bank at Heber Springs and Reorganization Plans Restore Confidence over Arkansas Following Bank Suspensions
LITTLE ROCK, Ark., Nov. Additional encouragement to Arkansas' banking situation was given today by the state banking department, when Walter E. Taylor, commissioner, announced that information coming into his office indicated that more of the 63 suspended institution than he at first anticipated. are working out reorganization and reopening plans. Mr. Taylor said that reports indicated that many of the institutions had progressed with their reorganization plans to the extent of expecting open for business during the later part of this week or carly next week. He expressed the belief that the situation in the state would show great improvement during the coming week. The National Bank of Arkansas of Heber Springs was the first to resume business. This institution reopened its doos yesterday morning after authority had been received from Comptroller of Currency W Pole at Washington. The national bank examiner reported that the institution was in position resume business Directors of the American change Trust Company of Little Rock today continued their conferences to consider reopening plans. Just when and how the local institution can reopen has been determined.
Five More Suspend Officials of the American Exchange stated that reorganization requiring the co-operation of the depositors were well under way and it was hoped that the bank could be reopened soon. The bank will be taken over Saturday by the state bank commissioner pending completion of the reorganization Five banks were added to the list of those suspending. The Bank of Corning at Corning suspended Wednesday afternoon. The Citizens Bank at Bald Knob did not open this morning, five day suspension. The Bald Knob State Bank opened, but was subjected to run during the morning and suspended at 11 clock as precautionary measure. The five brought the total banks suspending or closing up to 63, Two small institutions, the Bank of Ozan at Ozan, Hempstead Counand the Bank of Strawberry Strawberry, Lawrence County, both independent banks, announced suspensions for -days. The Bank of Strawberry suspended last Monday, but the first report of the action was not received at the state banking department until this morning. The Bank of McNeil at McNeil suspended for five days Thursday afternoon, and the Bank of Tyronza was taken over by the state bank department. A dispatch from McRae said the Peoples Bank at that place expected to reopen Saturday or Monday, under a proposed agreement that stockholders pay in $12,000, an amount equal to deposit the bank had in the Arkansas Trust Company at Newport when the latter suspended. Depositors also were being asked to agree to maintain 85 per cent of their deposits in the bank for 12 months, or as long as necessary to stabilize the institu-
12.November 21, 1930The Belleville News-DemocratBelleville, IL
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15 MORE BANKS IN SIX STATES
(Continued Page weathered steady withdrawals period of two weeks previously. The Cleburne (Kans.) State Bank took similar action and turned account over to state banking partment for liquidation. The bank had The American Exchange Trust Company, Little Rock, Ark whose suspension precipitated the closing Arkansas banks affiliated reached stage in its reorganization today which indicated would be reopened soon. national bank was formed Helena. Ark., to take over the Merchants Planters bank which suspended Monday with deposits of
TURTLE SOUP. Ready o'clock Saturday. 502 South Charles Street.
13.November 23, 1930Evening StarWashington, DC
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REORGANIZATION PLANNED. Arkansas Banking Department to Aid in Effecting Re-Opening. LITTLE ROCK, Ark., November 22 (P).-Progress in attempts at reorganization was reported by several of the 67 banks closed in Arkansas during the week, but the State banking department received no reports today of re-openings. The banking department has taken charge of the American Exchange Trust Co. of Little Rock, as well as several others in the process of being reorganized. The department has announced it will assist in the reorganization of any of the suspended institutions and will do all possible to enable them to reopen soon. No additional closings were reported to the banking department today. Under Arkansas law banks that suspended payments to depositors may reopen at the end of five days or be placed in the hands of the State banking department for liquidation.
FUNDS CLAIMED BANK
Arkansas Bank Report Made; Note Suit Is Filed.
LITTLE ROCK, Dec. statement affairs the closed American Exchange Trust Co., filed in circuit court today by bank closed from the Bank at now Two other Nashville banks, the Fourth and First National banks, the statement said. statement assets and liabilities balanced The was filed accordance with state law after the state took over the bank it is liquidated or reorganized. Two Arkansas banks were named debtor institutions the American from the Exchange Bank Trust Co: of EH Dorado and owing from the and Plant Bank and Trust Co. of Pine Bluff. An inventory of assets listed unand overdrafts of Liabilities listed bills and deposits in Cash on hand listed assets amounted to cash items and items in transit $90,054.98.
LOUISVILLE. Ky., Dec. James Brown of the National Bank Kentucky and former president of the BancoKentucky company, was named defendant to suit filed in circuit asking judgment suit avers was signed by The suit was filed by Joseph S. Laurent for BancoKentucky Co., whose bill said the long past Brown publisher of the here. that on November 28. Brown preferred and common stock in the Herald Post to cusfor the benefit Paul Keyes, receiver for the Bank of Kentucky, to cure the was being asserted against Mr. Brown by the bank's receivers Receiver Laurent asked in the that the hold the Herald stock all creditors in to the amount of their respective demands.
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.
16.January 3, 1931The Courier NewsBlytheville, AR
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Appeals to Depositors of American Exchange
LITTLE ROCK. Jan. 3. Charles T. Coleman. Little Rock attorney actively engaged in efforts to reorganize the closed American Exchange Trust company here. has issued an appeal to all depositors of the institution to register with the depositors protective association immediately. Such registration indicates approval of the committee's plan to reorganize the bank by establish ment of new institution to tak: over the assets and liabilities of the American Exchange company guarantees depositors at least per cent of their funds. Nearly 3,000 depositors already have registered.
17.January 27, 1931The Daily WorldHelena, AR
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SEVERAL DAYS REQUIRED TO COMPLETE PLANS FOR OPEN AMERICAN EXCHANGE
Little Rock, Ark., Jan -Several days may be required to arrange a final agreement on acceptance of a plan for reorganization of the American Exchange Thust Company and opening of the institution, it was said here today by Walter E. Taylor, state banking commissioner, following receipt of a reorganization proposal filed with him by a depositors committee of the closed Institution The first draft of the proposed reorganization called for opening of a new bank with a capital stock made for $2,500,000 in toans from St. Louis and New York banks which would be made available do positors immediately upon opening new bank
18.April 29, 1931The Daily WorldHelena, AR
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INDICTED FIVE GIVE BONDS TO PULASKI COURT
FORMER EXECUTIVES OF AMERICAN EXCHANGE BANK POST BONDS WITH SHERIFF
Little Rock. April of $5,000 each were posted with Sheriff Williams yesterday for the five former executives of the defunct American Exchange Trust Co., who were indicted by the Pulaski Coungrand jury Monday after an inquiry which extended over two
At Fordyce, where A. B. Banks, who was president of the closed institution, is making his home, the bond required for his appearance in court here was filed with Sheriff R. Benton of Dallas county. He notified Sheriff Williams that he had approved the bond. Although H. Stanley, formerly executive vice president of the American Exchange, was out of the city, friends prepared bond for him, and it was agreed that his attorney would sign it for Mr. Stanley, who left several days ago en route to Ashland, Wisc., where he will live. The bonds for John M. Davis, who was chairman of the board of the bank; R. H. Thompson, vice president, and C. Conway, vice president and secretary, were approved by Sheriff Williams yesterday morning. Each of the former bank officers was indicted separately on eight charges and all were accused jointly in two indictments. They are alleged to have received deposits into an insolvent bank and to have been accessories to the receiving of such deposits. Two of the bills against Mr. Banks charge him with being an accessory and one of the indictments against all the accused ex-bank officers makes similar allegation. Investigation was said to have proved that deposits totaling $948,were accepted at the AmeriTrust Co. November can Exchange the bank 15, the last day suspended November 17 for five of which at the expiration days, commissioner took the state bank charge.
19.June 29, 1931The Montgomery AdvertiserMontgomery, AL
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M'DADES DIVIDE TWO WITH B.A.C.
Trial Of Banker Resumes Today
Entry In Independent Loop Wins Shutouts In First Tilt Of Doubleheader
The McDade Tinners inaugurated their into the Independent splitting twin bill League with the Boys Athletic Club, taking the first game and dropping the second, The first featured by the game airtight James, who three The Phillips the and supplythe punch for the losers. scores:
LITTLE ROCK, ARK., June The State will resume its attempt morrow the trial Banks, accepted $672 deposit in the closed American Exchange Trust Company knowing to be insolvent. Banks president the bank. Little Rock bank have testified they last 15, the American Exchange in slow doubtful and capital before the bank could safely The State introduced them fort prove the was the time the $672 posit accepted. The bankers, Alfred and testified on cross that which preceded the bank's closing probably was First Game responsible more than any factor McDade the shrinkage assets. Sam Wilson, liquidating agent, will James and DeRamus the State's next witness when the trial Mosely
Second Game McDade Howard and Mosely: Barker, James, James and
The other doubleheader between the Trojans and Athletics ended the opening tilt, but final, Durden and Haynes led the hitting Trojans the first while and hit best winners. nightcap turned to pitcher's between Collum Trojans and Rainwater and Mock, of the
20.July 2, 1931The Daily WorldHelena, AR
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STATE FINISHES TESTIMONY IN THE BANKS CASE
TESTIMONY TENDS TO SHOW McCALL KILLED GEO. GRIFFIN TO STOP TESTIMONY
Little Rock, July state today completed presentation of its tesimony against A. B. Banks, on trial charged with accepting a deposit when he knew the American Exchange Trust Company to be insolvent. Two witnesses were heard in defense of the former American Exchange president. Both testiifed as to his bank stock-holdings and operations. George Hays, former special examiner of banks affiliated with the B. Banks group, testified Mr. Banks owned stock in the institutions having a par value of $1,000,000 before the crash last Nov. 15. Hays said Mr Banks often remov d slow or doubtful paper from the institutions and substituted paper to stabilize them. W. P. Gulley, member of the discount committee of. the American Exchange, testified as to efforts of its officers to obtain funds with which to withstand the run which preceded the bank's closing. Several officers of closed banks in the state were the last state
21.July 4, 1931The Houston ChronicleHouston, TX
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ARKANSAS BANKER IS GIVEN PRISON TERM IN FAILURE
By Little Rock, Ark., July 4.-A. Banks, president the closed American Exchange Trust Company of Little Rock, until few months of Arkansas' financiers, convicted today of accepting deposit in an inselvent bank. The jury fixed his prison. $5000 appeal to the Four officials of the closed bank indicted. Banks also under similar indictment at with small insur agency years out into and came head big insurancegroup. He founded the Home Insurance Companies Arkansas, which the lapse banking interests last Banks tributed the interests which vestment house of Tennessee, held in Banks went on trial week ago The Mrs. Lillie Rothschild in the Exchange Trust the day before bank The closing bank was fol. by the failure of more banks in Arkansas Mr. Banks interested and in the lapse of his insurance partner of the late Senhis made brief argujust to tell the State of answer the last remark Mr. Lewis, "That all at Phillipi. Would Forfeit Security the bridges are opened before the monies are paid, then the curity the goes, goes They mated their out this that that can not sue the let that bridge opened. capriciof legislator court has plenary jurisdiction the value which under the receivership of this
Attitude of Commission. The whole attitude of the highcommission, as it. is like that bird which always flies backwards. it's wants to see where Mr. Balley then rose and told my brief bridge would that he repudiate the but Johnson not the majority of the Brief in the Terral Toll Bridge Company similar preceding presented.
22.July 5, 1931Evening StarWashington, DC
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ARKANSAS BANKER IS GUILTY IN FRAUD 4. B. Banks, Head of Closed Trust Company, Sentenced to Year in Prison. By the Associated Press. LITTLE ROCK, Ark., July 4.-A. B. Banks, president of the closed American Exchange Trust Co. of Little Rock and until a few months ago one of Arkansas' foremost financiers, was convicted today of accepting a deposit in an insolvent bank. The jury fixed his sentence at one year in prison. Banks went on trial a week ago. The charge was that he assented to accepsance of a $672 deposit from Mrs. Lillie Rothschild in the American Exchange Trust Co., last November 15, the day before the bank closed. The closing of the bank was followed by the failure of more than 40 other banks in Arkansas in which Mr. Banks was interested, and likewise resulted in the collapse of his insurance companies. Faces Second Count. Mr. Banks' bond of $5,000 was allowed to stand, pending an appeal to the State Supreme Court. Four other officials of the closed bank were indicted with Banks. He was the first to be tried. He also is under a similar indictment at Osceola, growing out of the failure of a bank there of which he was president. Beginning his business career with a small insurance agency at Fordyce, Ark., 38 years ago, Banks gradually branched out into banking as well as insurance, and became head of a big insurance banking group. Blames Caldwell Failure, He founded the Home Insurance Companies of Arkansas, which were carried under with the collapse of his banking interests last November. On the witness stand yesterday, Banks attributed the run on the American Exchange Trust Co. to the interests which Caldwell & Co., investment house of Tennessee, held in it. He asserted the failure of the Tennessee concern wiped away the depositors' confidence. Caldwell & Co., in 1929, purchased a large stock ownership in the American Exchange Trust Co., and also controlling interest in the Home Insurance Companies of Arkanasas.
23.June 16, 1932The Charlotte NewsCharlotte, NC
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Banking Magnate Is Saved For Year
Little Rock. Ark. June hanging former for the deposits bank was suspended Janreprieve issued today Governor Parnell explained he acted because officials American Exchange Trust company. which Banks headed. not been tried disposition their cases desired before former finanbegins his term. Banks have started serving his sentence penitentiary today. his friends pressing the governor for full pardon. About 40 affiliated banks controlled after closing of the company November, 1930. Two his insurance companies failed and another was taken by another firm.
The movement tides lengthening part second every century.
24.June 16, 1932The Sedalia DemocratSedalia, MO
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REPRIEVE GRANTED CONVICTED BANKER
By The Associated Press.
LITTLE ROCK, Ark., June 16.—A year's prison sentence hanging over A. B. Banks, former banking and insurance magnate, for the acceptance of deposits in an insolvent bank, was suspended until next January 2 in a reprieve issued today by Governor Parnell.
The governor explained he acted because five other officials of the American Exchange Trust Company, which Banks headed, have not been tried and disposition of their cases is desired before the former financier begins his term.
Banks was to have started serving his sentence in the state penitentiary today. Hundreds of his friends are pressing the governor for a full pardon.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
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American Exchange Trust Company · UID 9451003891571
