10066. Merchants National Bank (Helena, MT)

View Charter #2732 on SPMC

Bank Information

Episode Type
Run Only
Bank Type
national
Bank ID
2732
Charter Number
2732
Start Date
July 27, 1893
Location
Helena, Montana (46.593, -112.036)

Metadata

Model
gpt-5-mini
Short Digest
cea4a79b4b654396

Response Measures

Accommodated withdrawals, Public signal of financial health, Capital injected

Receivership Details

Depositor recovery rate
66.0%
Date receivership started
1897-06-02
Date receivership terminated
1903-06-17
OCC cause of failure
Losses
Share of assets assessed as good
37.3%
Share of assets assessed as doubtful
45.4%
Share of assets assessed as worthless
17.3%

Description

Multiple July 27, 1893 newspaper dispatches report runs on Helena banks after the First National and Montana National failed to open; the run was concentrated on the Merchants' National, which paid depositors and stood the run (did not suspend).

Events (3)
1. June 14, 1882 Chartered
Source
historical_nic
2. July 27, 1893 Run
Cause
Local Banks
Cause Details
Run triggered by failure/suspension of the First National and Montana National banks in Helena, which drained currency and sparked withdrawals at other local banks.
Measures
Paid depositors promptly; officers reported confidence and the bank received deposits that outpaced withdrawals.
Newspaper Excerpt
The run is now confined principally to the Merchants' National Bank, which is paying everybody. They are confident that they will be able to stand the run.
Source
newspapers
3. June 2, 1897 Receivership
Source
historical_nic

Newspaper Articles (10)
1. July 27, 1893 Evening Star Washington, DC
Article from Evening Star, July 27, 1893

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Article Text

MONTANA BANKS SUSPEND. Two Helena Institutions With Plenty of Assets, but Unable to Realize. HELENA, Mont., July 27.-The First National and Montana National banks failed to open this morning. A run is now in progress on the other banks of the city. 11 a. -The run is now confined principally to the Merchants' National Bank, which is paying everybody. They are confident that they will be able to stand the run. The two closed banks have ample assets, but cannot realize. S. T. Hauser is president of the First National Bank. The capital stock is $500,000; surplus $100,000; undivided profits $600,000 and average deposits $3,250,000. John T. Murphy is president of the Montana National. The capital stock is $500,000; surplus $100,000; undivided protits $100,000, and average deposits $1,500,000. Other Banks Closed. MIDDLESBORO, Kan., July 27. - The First National Bank of this place closed its doors this morning. The notice upon the door reads: "This bank closed by order of directors. "J. P. SANDIFEE, Cashier." LOUISVILLE, Ky., July 27.-The Sarmers' Bank of Mount Sterling, Ky., suspended payment this morning. EXETER, N. H., July 27.-The National Granite State Bank temporarily suspended payment this morning. The Institution is declared by officials to be perfectly sound, the present embarrassment having been caused by a drainage of the cash supply and delayed remittances from Boston. A resumption of business is expected.

2. July 28, 1893 The Wichita Daily Eagle Wichita, KS
Article from The Wichita Daily Eagle, July 28, 1893

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THE HELENA BANKS SQUEEZED. HELENA, Mont., July 27.-The First National and the Montana National banks failed to open their doors this morning. In consequence a run on the other banks of the city quickly commenced. The two closed banks Lave ample assets, but cannot realize on them. The capital stock of the First National bank is $500,000 and it has a surplus of $100,000, undivided profits of $60,000 and deposits of $3,250,000. The Montana National also has a capital of $500,000, with a surplus of $100,000, undivided profits of $100 000- and average deposits of $1,500,000. The run on the other banks was soon confined principally to the Merchants' National bank. The depositors at this bank were paid promptly. and the officers are confident that they will be able to stand the run.

3. July 28, 1893 The Times Richmond, VA
Article from The Times, July 28, 1893

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Three More National Banks Fail. SEATTLE, WASH., July 27.-A Spokane special says: The First National Bank suspended payment yesterday. The Spokane Savings Bank, connected with National, closed at the same a few minutes time. the First In the news was generally known throughout the city, received quietly. There was no at any of President Glover stated effect banks. but was perceptible suspended, the that other the bank has only temporarily and all depositors will be paid in full. HELENA, MONT., July 27.-The First National and the Montana National Banks failed to open this morning. A run then began on the other banks of the city. LOUISVILLE, KY., July 27.-The Farmers' Bank, of Mount Sterling, Ky., suspended payment this morning. MIDDLESBORO, KY., July 27.-The First National Bank, of this place. closed its doors this morning. A notice upon the doors reads: 'This bank is closed by order of the directors. J. P. Sandiford, cashier." PORTAGE, WIS., July 27.-The City Bank closed its doors this evening. The suspension is due to the condition of the money market. PORTLAND, ORE., July 27.-The Portland National Bank and the Northwest Loan and Trust Company, of this city, suspended payment this afternoon. HELENA, MONT., July 27.-The First National Bank has assets of over $1,000,000 in excess of liabilities. The Montana National has $850,000 in excess of Habilicould not get meet the demand. enough ties. They to simply The currency Merchants' National stood three hours' run, and then received in deposits more cash than had been withdrawn. There was no run on the other banks. CHICAGO, July 27.-The clearing-house this evening decided to issue clearinghouse certificates. Business Embarrasements. WALTHAM, MASS., July 27.-On July 1st the American Waltham Watch Company gave its hands a month's vacation. To-day the company announced that the vacation will be extended to August 7th, and when the works are started only half the force will be employed. Along with this announcement comes the statement that the Elgin Watch Company will discharge half its hands August 1st. Each company employs about 3,000 persons. There is consternation in Waltham. BOSTON MASS., July 27.-Ticknor & Co., publishers, 211 Tremont street, are financially embarrassed, and have made an assignment to Charles Fairchild. The to the business of James & Co. when the G. firm Hagood succeeded firm failed, in 1885. Besides its book-publishing business the firm publishes the American Architect. Creditors are well disposed toward Ticknor, though they will have no trouble about the adjustment of affairs. HARRISBURG, PA., July 27.-The American Tube Iron Company, located at Middleton, has gone into the hands of a receiver. The company has no mortor gages, judgments bonded raise indebtedness funds, against it, but could not owing to the stringency in the money market It is one of the largest concerns of the kind in the country, employing fifteen hundred hands. It makes all kinds of wrought iron pipe and tubing. CINCINNATI, O., July 27.-The Deer Creek Cotton Mills, Fifth street and Eggleston avenue, and the Belting factory, on Plum and Canal streets, controlled by Henry Pearce, Sons & Co., shut down indefinitely to-day, throwing 500 hands out of employment. Dull trade is the cause given.

4. July 28, 1893 The Morning News Savannah, GA
Article from The Morning News, July 28, 1893

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TWO HELENA BANKS CLOSE. The Assets of Each Largely in Excess of Their Liabilities. Helena, Mont., July 27.-The First National and Montana National banks failed to open this mornings A run is in progress on the other banks of the city. The First National Bank has assets over $1,000,000 in excess of its liabilities. The Montana Bank has $850,000 in excess of its liabilities They simply could not get currency enough to meet the demands. The Merchants' National stood a three hour's run and then received in deposits more cash than had been withdrawn. There was no run on the other banks.

5. July 28, 1893 Wheeling Register Wheeling, WV
Article from Wheeling Register, July 28, 1893

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CONCERNING BUSINESS AND FINANCE. CINCINNATI, O., July 27.-The distillers of Cincinnati and vicinity who will by law be called upon August 5 to pay their share of about $8,000,000 of taxes OM whisky distilled in May and June, 1890, have unanimously addressed a request to Secretary Carlisle to instruct collectors to delay the collection for ninety days. They say the present financial situation is abnormal, and that to withdraw that large sum of money from banks and from circulation at this time, would heighten the present distress and would be of no advantage to the governmdnt. The local bankers have eudorsed the request, and circular letters will be sent to all interested asking them to join the petition. HELENA, MONT., July 27.-The First National and Montana National Banks failed to open this morning. A run is now in progress on the other banks of the city. The run is now confined principally to the Merchants National Bank, which is paying everybody. They are confident that they will be able to stand the run, The two closed banks have ample assets, but cannot realize, S. T. Hausser is President of the First National. The capital stock is $500,000; surplus, $100,000; undivided profits, $600,000, and average deposits, $3,250,000. John T. Murphy is President of the Montana National. The capital stock is $500.000; surplus, $100,000; undivided pronts, $100,000, and average deposits, $1,500.00 WASHINGTON, C., July 27.-The director of the mint has been notified that his counter offer of $0.7020 per ounce has been accepted for 25,000 ounces of silver of yes erday's offerings. The total purchase for the month aggregates 1,932,000 ounces. PORTLAND, OREGON, July 27.-The Oregon National Bank and the Northwestern Loan and Trust Company closed their doors this morning. George B. Markle is president of both institutions. Capital stock of the Oregon National, $200,000; surplus, $40,900; average deposits, $500,000. Capital stock of the Northwestern Loan and Trust Company, $250,000; surplus, $25,000. NEW YORK, July 27.-Lazard Freeres areadvised of a shipment of $1,000,000 gold from Europe. SPOKANE, WASH., July 27.-The First National Bank and Spokane Savings Bank closed this afternoon. They were uable to realize upon securities at the present time. They had a capital of $250,000 and $100,000 respectively. MIDDLESBORO, Kr., July 25.-The First National Bank of this place closed its doors this morning. The notice upon the doors reads: "This bank closed by order of directors." HARRISBURG, PA., July 27.-The Ameri can Tube and Iron Company, located at Middletown, has gone into the hands of a receiver. The company has no mortgages, judgments or bonded indebtedness against it, but could not raise funds, owing to the stringenep of the money market. It is one of the largest concerns of the kind in the country.

6. July 28, 1893 New-York Tribune New York, NY
Article from New-York Tribune, July 28, 1893

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TEN MORE BANKS CLOSED. SIX OF THEM ARE IN STATES OF THE FAR NORTHWEST. INABILITY TO REALIZE ON ASSETS THE CAUSE OF THE SUSPENSION OF ALMOST ALL -THE PANK FAILURES FROM MAY 1 TO JULY 22. Seattle, Wash., July 27.-A dispatch from Spokane says: "The First National Bank suspended payment* yesterday afternoon. Its doors closed at 2 o'clock, and the following notice was posted: "Owing to continued withdrawals by the depositors, and inability to realize on securities, this bank has temporarily suspended payment.' "The Spokane Savings Bank, which is connected with the First National, was closed at the same time. In a few minutes the news was generally known throughout the city, but it was received quietly. There was no effect perceptible at any of the other banks. President Glover says that the suspension is only temporary, and that all depositors will be paid in full." Portland. Ore., July 27.-The Oregon National Bank and the Northwest Loan and Trust Company of this city, suspended this morning. Both institntions were started about live years ago. The rapid withdrawal of depesits and inability to realize on securities are given as the cause of the suspension. George B. Markle is president of both institutions. Capital stock of the Oregon National, $200,000; surplus, $40,000: average deposits, $500,000. Capital stock of the Northwest Loan and Trust Company. $250,000; surplus, $25,000. Helena, Mont., July 27.-The First National and Montana National banks failed to open this morning. Runs were started on the other banks of the city, the most extensive being that on the Merchants' National Bank, which paid everybody. The 1WO closed banks have ample assets, but cannot realize. S. T. Hauser Is president of the First National. The capital stock Is $500,000; surplus, $100,000; the undivided profits are $600,000. and the average deposits $3,250,000. John T. Murphy is president of the Montapa National: its capital stock is $500,000: surplus, $100,000: Its undivided profits are $100,000, and its average deposits $1,500,000. Portage, Wis., July 27.-The City Bank closed its doors this morning. The suspension is due to the condition of the money market. Middlesberoigh. Ky., July 27.-The First National Bank of this place closed its doors this morning. The officers of the bank refuse to talk, and it is impossible to get either assets or liabilities. Most of the merchants here were depositors. Washington, July 27.-The First National Bank of Middlesborough, Ky., which closed its doors this morning, had a capital of $50,000, and 1ts individual deposits aggregated usually about $50,000. Mount Sterling. Ky., July 27.-The new Farmers' Bank of this city closed its doors this morning. The failure was caused by an inability to realize on its paper. The deposits are about $200 000. The bank holds first-class paper to the amount of $000,000. The depositors will be paid in full and the officers of thes bank hope to be able to resume business in a short time. The capital stock is $250,000. Exeter, N. H., July 27 The National Granite State Bank temporarily suspended payment this morning. The institution 18 declared by officials to be perfectly sound, the present embarrassment having been caused by a drainage of the cash supply and delayed mit tances from Boston. An immediate resumption of business is expected. Baltimore. July 27.-A summary of the bank fallures from May 1 to July 22, inclusive, shows that 301 banking institutions. with # total capital of $38,951 033, suspended. The Manufacturers' Record" publishes a complete list of closed banks by States, also a table which shows that five-sixths of these fullures and four fifths of the capital involved were in Western and Pacific States, while only 10 per cent of the failures and 11 per cent of the capital involved were in the South. The number of failures In Southern States was thirty-seven. involving $4.392,100: in the Western and Pacific States the number was 251, involving $31,258,933: and in the Eastern and Northern States, thirteen, with $2,600,000 capital.

7. July 28, 1893 The Sun New York, NY
Article from The Sun, July 28, 1893

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ELEVEN MORE BANKS FAIL. Seven in the West. Three in Kentucky, and One In New England, HELENA. Mon.. July 27.-The First National and Montana National banks failed to open this morning. A run is now in progress on the other banks of the city. The run is now confined principally to the Merchants' National Bank. which is paying everybody. They are confident that they will be able to stand the run. The two closed banks have ample assets. but cannot realize. S. T. Hauser 1s President of the First National. The capital stock is $500,000. surplus $100,000. undivided profits $600.000. and average deposits $3,250.000. John T. Murphy is President of the Montana National. The capital stock is $500.000. surplus $100,000. undivided profits $100,000. and average deposits $1,500,000. SPOKANE. Wash.. July 27.-The First National Bank suspended payment yesterday afternoon. Its doors closed at 2 o'clock. and a'notice was posted announcing that. "owing to continued withdrawal by depositors and inability to realize on securities. this bank will temporarily suspend payment." The Spokane Savings Bank. which is connected with the First National. was closed at the same time. In a few minutes the news was generally known throughout the city, but it was received quietly. There was no effect perceptible at any of the other banks. President Glover said that the bank has only temporarily suspended. and all depositors will be paid in full. The bank commenced business in December. 1882. Its paid-up capital is $200,000. PORTLAND. Or., July 27.-The Oregon National Bank and the Northwest Loan and Trust Company. kindred institutions, failed to open their doors this forenoon. Notice on doors says: Owing to withdrawal of deposits and inability to realize on securities this bank is forced to suspend." George B. Markle is President of both institutions. Capital stock of the Oregon National $200,000: surplus. $40,000: average deposits. $500.000. Capital stock of the Northwest Loan and Trust Company. $250,000: surplus. $25,000. MIDDLESBOROUGH, Ky.. July 27.-The First National Bank of this place closed its doors this morning. The notice on the door reads: This bank closed by order of directors." The officers of the bank refuse to talk. and it is impossible to get either assets or liabilities. The effect on business here will be serious, as most of the merchants were depositors. The Coal and Iron. the other bank here. will not be affected. The suspended bank had a capital of $50,000. and its individual deposits aggregated usually about $80,000. MOUNT STERLING. Ky.. July 27.-The new Farmers' Bank of this city closed its doors this morning. The failure was caused by inability to realize on its paper. The deposits are about $300,000. The bank holds firstclass paper to the amount of $600.000. The depositors will be paid in full. and the omcers of the bank hope to be able to resume in a short time. The capital stock is $250,000. This afternoon the Breeders' Bank also closed its doors. EXETER. N. H.. July 27.-The National Granite State Bank temporarily suspended payment this morning. The institution is declared by officials to be perfectly sound. the present embarrassment having been caused by a drainageof the cash supply and delayed remittances from Boston. An immediate resumption of business is expected. PORTAGE. Wis., July 27.-The City Bank closed its doors this morning. The suspension is due to the condition of the money market.

8. July 28, 1893 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, July 28, 1893

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HELENA BANKS. The First National and Montana National Close Their Doors. HELENA, Mont., July 27.-The First National and Montana National banks failed this morning. A run is in progress on the other banks. The run is now confined principally to the Merchant's National, which claims to be able to stand. The closed banks have ample assets but could not realize. S. Houser is president of the First National, capital stock, $500,000; surplus, $100,000; undivided profits, $600,000; and average deposits $3,250,000. John T. Murphy is president of the Montana National. It has a capital stock of $500,000; surplus $100,000, undivided profits $100,000; average deposits $1,500,COO. It is claimed the assets are $1,300,000; liabilities $000,000. Officers say eventually they will pay in full. The First National paid out over $1,000,000 the past week and the Montana paid out nearly $500,000. The other banks are standing the run well, the heaviest is on the Merchants National but big depositors came to the rescue and deposited faster than it was paid out, and the excitement is subsiding. The failed banks are among the oldest and strongest in the city. Both had ample assets but could not realize fast enough. C. W. Camon, 0. M. Halter and S. C. Ashley, all leading capitalists, have made personal assignments.

9. July 28, 1893 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, July 28, 1893

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HELENA IN TROUBLE. wo of the Largest Banks in Mon< tana Close-Business Difficulties of All Kinds. HELENA, Mont., July 27.-Financial coubles reached Helena, Mont., today' nd resulted in the closing of two of the iggest banks in the state. They are he First National and Montana Naonal. The First National is the pioneer ank, of which S. T. Hauser is presient. Its directory includes some of he wealthiest men in Montana. For iree weeks there has been a steady rain on the banks, and on Wednesday fter the day's business was over there as very little cash on hand. Last ight the directors met and unanihously decided that it was he duty of the stockholders to support nmediately a voluntary liquidation, nd that the bank temporarily suspend. n conformity with this the bank did ot open this morning, and the followig notice was posted on the door: "We re compelled to suspend business under ie stringency of the money market nd from the heavy drafts on deposits. ithout being able to make correspondig reduction of loans. Our assets are mple, but we cannot command the curency to continue payments." A stateent up today shows assets of $3,771,80; liabilities, $2,590,762. The bank ad a capital of $500,000, and its busess extended all over the Northwest. John T. Murphy is president of the Iontana National. It was regarded as trong as the First National, but was ot SO old. It had a capital of $500,000, -'18 10 assess SMO Is statement the pu 50,000, liabilities $900,000. The diectors desire a voluntary liquidation, nd its closing was due to the same auses as forced the suspension of the irst National. When the banks opened lain street was crowded with people, e largest number being about the lerchants' National. There was a teady run on this bank for three hours, ut it came out all right, the offiers saying they gained more cash uring the day. There was no run on e other banks. President Edgerton, i the Second National, says he made a ight gain in deposits. Cashier Baird, : the Helena National, says there was o run on that bank. as does Cashier ohnson, of the American National. here was no run on either of the two avings banks. The unanimous opinion that the people have gotten over the xcitement, and that the banks now oing business will be able to keep ben. Assignments today were the homas Pointer Drug company, S. C. shby, A. M. Holter and C. W. Cannon, II personal. No mercantile failures ave been reported. MIDDLESBORO. Ky., July 27.-The irst National bank of this place closed S doors this morning. LOUISVILLE, Ky., July 27. - The armers' Bank of Mt. Sterling, Ky., spended payment this morning. CINCINNATI, July 27. - The Deer reek cotton mills at Fifth street and ggleston avenue, and a belting factory ; Plum and Canal streets, controlled y the Henry Pearce Sons company, nut down indefinitely today, throwing 0 hands out of employment. Dull ade is the cause given. PORTAGE, Wis., July 27.-The City ank of Portage closed its doors today. was capitalized at $25,000. H. Breeze, -secretary of state, was president of e bank. The directors of the bank

10. November 5, 1893 The Sun New York, NY
Article from The Sun, November 5, 1893

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t trick of the Republican City hour of the sale was changed. epresentative alone was there to it in the warrants at a discount of The Democratic managers went 9 to Cruse and asked him to give ants for another sale. 80 that could be present and make the I for their value. Cruse consente our that e should pay him the difference int. said Dan Hanley. the Chairma a Democrat and a miltionaire. is for $200 at a time like this ess is business. me good mon." ะถะตะฟะพัˆ our 102 eq pay TIOMSUR 414 terly indifferent to the comments : of neighbors. On the day when anks closed he rode in an open vn Main street and passed a run on the Merchant's National. ed in the usual broadcloth suit. hirt front, with its guard of a massi ch chain. and silk hat. He e carriage wearing what one of ed A double- barrelled grin. ir fists nt him. swore in the oaths r extraordinary occasions and it he might be forced to change queezing men out of business. 11" 07 Image UGARIN U SW PI 1qnd B holding 10 MINI usdo SUM 9 on meeting. Then he relented to releasing some of the attachmen asurancethat his bank would be these IIIM our up 9.11 quiquent 10 sp nd other historic usurers. When : near to its height in Helena a wel erchant who is rated at from 0.000 wanted to borrow $4,000. get it from any of the national bank re refusing to lend. 80 he went ank and stated his business. e not lending." said the cashier. tht. said the merchant as he door. not reached Broadway when he ck by a shout from the bank. wanted to say." said the Treasure Cruse is willing to let you have four percent. a month-as an . He says that you have always best friends." r was declined on the spot. for said that an assignment was his taste than an obeisance to "II red stories are told about his Last July Mgr. Satolli. Dr. O'Gorma gton University. Archhishop Irelan p Grace of St. Paul visited Helena intinental tour. Whether Cruse. er. searching a barren country easure. ever dreamed that Col. onaire banker. would entertain legate. is not to be known: but it of Satollihimself that few entertait his experience ever equalled that Commy Cruse. Everything not jo required SUM 11 10A0 persond SHAL ั‡ะพั‚ั‡ะผ lece. was as perfect as money n Montana. The gossips of Heler when it was all over Cruse kissed ablectate our resenter puw 'pu otograph of himself to the Pope. in occasions, he finds great deligi g to certain Helena people the financial prosperity dates back nd of the mysterious gold float. e Montana Club's annual reception el. along with others. became influence of what is known as s punch. Some one said somethin ded the old man's sensitive his position in society. He flash. and turning on one of the nes have been mentioned. said: yez. ye would ha' been walkin' . but for Tommy Cruse." , turned on another and another. ch with a sharp touch of his Scotel asm. Not one had a word to say. lated the truth. Notone would at on the sale of his mine if the 'MOU smoul ou se menth SD MOU t contradiction of the old adage, the nd faro players never know when e has shown hard sense by keepin von. Other Montana citizens d in mines. real estate. and railwa $ after making a stake. Cruse locke r part of his money in Governmer 1 placed the balance in such safe