11380. 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: a8b13629

Response Measures

Accommodated withdrawals

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

On July 27, 1893 two Helena banks (First National and Montana National) failed to open, producing a run concentrated on the Merchants National. Merchants paid out during the run, received more deposits than withdrawals, and was reported able to stand the run (no suspension or closure of Merchants is reported).

Events (3)

1. June 14, 1882 Chartered

Source: historical_nic

2. July 27, 1893 Run

Cause: Local Banks
Cause Details: Run was triggered by the failure/closure (failure to open) of the First National and the Montana National banks in Helena, causing depositors to seek funds from other local banks including Merchants National.
Measures: Paid out deposits during the run; after about three hours received deposits exceeding withdrawals and continued to pay customers.
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 27, 1893 San Antonio Daily Light San Antonio, TX

Article from San Antonio Daily Light, July 27, 1893

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Two More Banks Flicker. HELENA, Mont., July 27.-The First National and Montana National banks, failed to open this morning and a run is now in progress on the other banks of the city. At 11 o'clock this morning 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 it cannot be realized. S. T. Houser is president of the First National; 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 bank; capital stock is $500,000; surplus $100,000; undivided profits $100,000 and average deposits $1,500.000.

3. July 27, 1893 Deseret Evening News Salt Lake City, UT

Article from Deseret Evening News, July 27, 1893

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FINANCIAL FAILURES. A Run on Helena, Montana, Banks Today. 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 new confined principally to the Merchants' National, which claims to be able to stand. The closed

4. July 28, 1893 The Helena Independent Helena, MT

Article from The Helena Independent, July 28, 1893

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AT THE OTHER BANK. Short Run at the Merchants but None at Other Institutions. At 10 o'clock yesterday morning there were probably 1,000 people in front of the Merchants National bank. The majority were there from curiosity, but there were also a large number of people who wanted their money, and a considerable number who had money to put in. When the doors opened a cheer went up, and then the scramble to get inside began. 'I here were a number of inrge deposits, and a great besieging by holders of certificates of small amounts. The rush Insted for two hours. From 12 to one little business was transnoted. From the latter hour until three o'clock considerable business was done, but there was nothing like the early crowding. Later in the afternoon the officers said as a result of the day's business their deposits had exceeded the withdrawals, They expressed the opinion that the worst was over so far as they were concerned. and they felt the utmost confidence in their ability to meet all calls upon them. At the other banks there was no excitement whatever. The American did not do its average business nt the paying teller's window. A number of prominent business houses that bad been doing business at the First and Montana opened accounts at the American, and the bank's deposits at the close of business were away aboad of their payments. But one account was withdrawn during the day, and that for only A few hundred dollars. The party who took his money ont forgot that he had n check ont, and later in the day it came in. Assistant Cashier Cope onshed is, and mailed the former depositor a notice that his account was overdrawn. The American not only had cash enough to pay its own depositors, but it also answered ealls from several state banks. It also

5. July 28, 1893 The Times Richmond, VA

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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.

6. 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.

7. 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.

8. July 28, 1893 Fort Worth Gazette Fort Worth, TX

Article from Fort Worth Gazette, July 28, 1893

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Montana Banks. HELENA, Mont., July 27.-The First National and the Montana National banks failed to open this morning. A run is now in progress on other banks of the city. 11 a. m.-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 can not realize. S. T. Hauser 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 profits, $100,000, and average deposits, $1,500,000.

9. 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.

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

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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." жепош 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 чотчм 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