First National Bank - Miles City, MT

Bank Information

Episode Type: Run Only
Bank Type: national
Bank ID: 2752
Charter Number: 2752
Start Date: July 26, 1893
Location: Miles City, Montana (46.408, -105.841)

Metadata

Model: gpt-5-mini
Short Digest: d540b549

Response Measures

Accommodated withdrawals, Public signal of financial health, Books examined

Other: Officers personally guaranteed deposits; bank posted announcement refusing hoarding withdrawals and paid legitimate business demands.

Description

In late July 1893 there was a short run by small depositors on the First National Bank of Miles City triggered by the closing/suspension of the Stockgrowers (a local bank). The First National remained open, paid legitimate demands, directors personally guaranteed deposits and refused withdrawals intended to hoard funds. The bank did not suspend and later statements show restored confidence.

Events (3)

1. July 7, 1882 Chartered

Source: historical_nic

2. July 26, 1893 Run

Cause: Local Banks
Cause Details: Run and nervousness were triggered by the closing/suspension of the Stockgrowers Bank and general local bank failures, producing depositors' alarm.
Measures: Officers/directors personally guaranteed deposits, paid demands for legitimate business, and refused payments intended to hoard or remove money from circulation.
Newspaper Excerpt: Scarcely had these notices been posted when the big doors of the Merchants National swung outward ... A run by small depositors at once began on the bank, but lasted only a short time.
Source: newspapers

3. July 1, 1924 Voluntary Liquidation

Source: historical_nic

Newspaper Articles (6)

1. July 28, 1893 The Yellowstone Journal Miles City, MT

Article from The Yellowstone Journal, July 28, 1893

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Article Text

July 26, 1893. Scarcely had these notices been posted when the big doors of the Merchants National swunk outward and the card "bank open" was displayed to the crowd. who vociferously cheered this encouraging sign. A run by small depositors at once began on the bank, but lasted only a short time. Despositors handed new money in one window while those who were scared drew it out of the other. In an hour the crowd had thinned out and the line of men after money scarcely stretched from the paying teller's window to the front door. At 11 o'clock Teller Bowman stated that the deposits had so far exceeded the withdrawals by several hundred dollars. There was no run to speak of on the other banks. though some withdrawals were made by small depositors. The National Bank Examiner will arrive to-morrow to investigate the affairs of the two closed banks. If he thinks advisable both will reopen. It is said the First National will receive $100.000 in cash this afternoon. In addition to the present large reserve in the vaults of the Merchants National Bank there will arrive in the city to-morrow by express over three hundred thousand dollars in currency. which left New York on Tuesday. The Montana National at the close of business yesterday had outstanding liabilities of $900,000. Its assets are $1,750,000, Its capital and surplus are $700,000. The officers say every depositor will be paid in full. As we go to press there is no change in the situation. except that all excitement has subsided and the run on the Merchant's Bank has stopped.

2. July 29, 1893 The Yellowstone Journal Miles City, MT

Article from The Yellowstone Journal, July 29, 1893

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fidence in the Banks. Following the closing of the Stockgrowers bank to day. and with a view to excitement that this event may a meeting of have allay caused. any the citizens called and business men of the city was Miles City club rooms at half four to consider a course past at the National of action bank. proposed by the First Promptly at the hour named the meet ing was called to order by W. B. Jordan motion of Dr. Fish. elected chairman of and vell was on Judge the meet Stre assuming the position the but forcibly ing. judge On briefly portrayed the damage the situation as it existed and disaster that would overtake all our local interests if the unreasonable alarm that causes bank runs" should take possession of this community. He was W. B. Jordan president of National bank who followed the First by stated of that the it was the desire and intention of the bank to keep of it open but to officers that institution the do doors this would require the co-operation and sup port of the community. The bank was financially sound. and its stockholders men of well known wealth. He stated that the bank had funds to conduct business in the ordinary way. sufficient easily course Although for pursuing a very conservative the last three months the bank has nevertheless made loans continuously for of its patrons. and be to do so. All that was able the benefit required will still to accomplish this and save this community the distressing effects of having to gointo forced liquidation was the confidence of the people. The plan decided upon by the directhe bank to protect the interests and through it. of tors the of bank. those demands of the community was to pay all made upon it for legitimate business purposes. but to refuse to pay any demands made where it was known and apparent that such demands were-made for the purpose of hoarding the money away. and retiring it from circulation. Prof. Bach followed in an endorsement action of the that he would do all stated of the proposed bank that and he could to aid them in its performance. Mr. Jordan stated that the bank did not ask for any assistance save in the continuance of ordinary business transac tions and the full moral support of the and the latter most of all. known financial community. The well ability of the directorsof the bank was an assurance of its solidity and if this needed any strengthening it was afforded by the fol lowing announcement which the bank had at hour before made public: ANNOU INCEMENT. We are not insensible to the fact that financial condition of the people in in the country. present having banks money banks. however solvent such may liable to be anxious about the of such money. and safety be. are by reason of such anxiety create what is commonly known as "a run on the bank." To the patrons and the depositors of the First National bank of Miles City, we the undersigned. officers and stockof said bank. desire to state that the financial holders we know condition sound. of this bank. to be absolutely safe and that the bank is to pay every if all come at once l'o state depositor able would not be the truth. No bank in the United States, isolated from help from other banks. as we are. could do that. But to the depositors and patrons of this bank is we desire to state that if the patience the bank to be no and know confidence exercised worthy which of. if we run is created or precipitated. and the bank is allowed to pursue its usual course of business we will guarantee. and individually. no shall lose one cent of money personally positor that the dewhich he now hason deposit in the bank. W. B. JORDAN, President. GEO. M. MILES. Vice-President. JOHN CARTER. Director. FRANK C. ROBERTSON. Director. HENRY TUSLER. Director. J. W. STREVELL. Director. Mr. Jordan added that the presenteon dition would be only temporary as in two t weeks the return from beef shipments t would begin to come in and continue until November. R In order to place the matter before the M meeting Mr. Moran moved: li That it is the sense of this meeting that the business men and citizensof of b we. City, approve of the proposed action to National Bank in refusing those that of when they are for the aydepositorson deposit. First olding certificates satisfied is being withdrawn simply of putting it away. or that are desired for amounts the the money sake No actual small need. to be refused payment.

3. July 30, 1893 The Helena Independent Helena, MT

Article from The Helena Independent, July 30, 1893

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STOCKGROWERS BANK. Temporarily Suspends on Account of Money Stringency. Special to The Independent. MILES CITY, July 29.-At noon to-day no. tice was posted on the doors of the Stock. growers bank that the bank was obliged to temporarily suspend on account of the money stringency, but all depositors will be paid in full. The First National kept its doors open all day and some depositors, principally women, made a little run on it after the elosing of the Stockgrowers. After banking hours a meeting of business men was held at the Miles City olub to consider the course of action proposed by the First Ns. tional, which was to pay all demands for legitimate purposes, but to refuse payment when it was evident that the demand was made for the purpose of holding the money. The resolution was approved and imme. diately adopted. A paper has been signed by the officers and directors of the bank, W. B. Jordan, Goo. Miles, Jno. Carter, Frank Robertson. Henry Tusler, and J. W. Strevel, guaranteeing personally and individually, if patience and common sense be exercised, that no depositor shall lose n sent.

4. July 31, 1893 The Yellowstone Journal Miles City, MT

Article from The Yellowstone Journal, July 31, 1893

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CITIZENS' MEETING. A Strong Expression of Confidence in the First National Bank of Miles City, Mont. Following the closing of the Stockgrowers bank to-day. and with a view to allay any excitement that this event may have caused. a meeting of the citizens and business men of the city was called at the Miles City club rooms at half four to consider a course of action by the First past proposed National the meet bank. Promptly at the hour named called to order by W. B. Jordan motion of Dr. Fish. and ing was on Judge meet Stre. vell was elected chairman of the ing. On assuming the position the judge briefly but forcibly portrayed the situation as it existed and the damage disaster that would overtake all our local interests if the unreasonable alarm that causes "bank runs" should take possession of this community. He was followed by W. B. Jordan president of the First National bank who stated that it was the desire and intention of the officers of the bank to keep the doors of it that institution open but to do this would require the CO operation and sup port of the community The bank was financially sound. and its stockholders men of well known wealth. He stated that the bank had sufficient funds to conduct business easily in the ordinary way. Although pursuing a very conservative course for the last three months. the bank has nevertheless made loans continuously for the benefit of its patrons. and will still to able to do so. All that was required accomplish this and save this community the distressing effects of having to go into forced liquidation was the confidence the people. The plan decided upon by the directors of the bank to protect the interests of the bank. and through it. those of the community. was to pay all demands made upon it for legitimate business depurposes. but to refuse to pay any mands made where it was known and apparent that such demands were made for the purpose of hoarding the money if away. and retiring it from circulation. sit deemed necessary until the financial be uation changes. or collections can made.- Prof. Bach followed in an endorsement of the proposed action of the bank and he stated that he would do all that could to aid them in its performance. did Mr. Jordan stated that the bank not ask for any assistance save in the continuance of ordinary business transac- the tions and the full moral support of community. and the latter most of the all. The well known tinancial ability of of directorsof the bank was an assurance its solidity and if this needed any folstrengthening it was afforded by the bank lowing announcement which the had a hour before made public: ANNOUNCEMENT. We are not insensible to the fact that of the present financial condition in the in country. people having money banks. however solvent such banks may the be. are liable to be anxious about of safety of such money. and by commonly reason such anxiety create what is known as "a run on the bank." To the patrons and the depositors of the First National bank of Miles City, we the undersigned. officers and stockholders of said bank. desire to state that this know the financial condition of bank. we to be absolutely safe and sound. To state that the bank is able to pay depositor if all comeat once would every not be the truth. No bank the United States. isolated from help from other banks, as we are. could do that. But bank to the depositors and patrons of this desire to state that if the patience we and we confidence is exercised which know the bank to be worthy of. if the no run is created or precipitated. and bank is allowed to pursue its usual course of business we will guarantee. depersonally and individually. that no positor shall lose one cent of the money bank. which he now on deposit in the W. B. JORDAN, President. GEO. M. MILES. Vice President, JOHN CARTER. Director. FRANK C. ROBERTSON. Director. HENRY TUSLER. Director. J. W. STREVELL, Director. Mr. Jordan added that the presenteon two dition would be only temporary as in weeks the return from beef shipments unwould begin to come in and continue til November. In order to place the matter before the Mr. Moran moved: meeting That it is the sense of this meeting that

5. August 9, 1893 The Yellowstone Journal Miles City, MT

Article from The Yellowstone Journal, August 9, 1893

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THE course adopted and pursued by the First National Bank of this city to discourage runs on the bank and to restore contidence appears to have been duplicated by all New York banks in relation to Chicago deposits. It has been currently reported for some days past that Chicago banks were refusing New York exchange for the reason that the New York banks refused to pay. The probable explanation comes to us in the following paragraph clipped from a New York special of Monday: New York banks have not and will not refuse to cash Chicago checks when presented in the ordinary course of business. but they will resist any organized attempt to draw heavy amounts of money from here simply for the purpose of strengthening western institutions. This is just what the First National has done. All demands in the ordinary course or business have been paid. but the bank has resisted any attempt to weaken or impoverish it.

6. October 11, 1893 The Yellowstone Journal Miles City, MT

Article from The Yellowstone Journal, October 11, 1893

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Wednesday. October 11, 1893. A STRONG INSTITUTION. To those who are interested in the financial condition of the country-as is most every person at this time-an examination of the financial statement of the First National bank of this city, published in this issue, will be convincing that in this section of the country at least. the financial tornado of two months ago did not prove wholly overwhelming. When it is considered that these statements are called for by the Comptroller at irregular times, and that there is no possibility of preparing for them, it must be admitted that the showing made by the First National Bank of Miles City, of its [condition on October 3rd, is most creditable. A comparison of this statement with the one made in July last, when the financial gale had just struck this part of the country, is very interesting, showing that while our bank was at that time presumably trimmed for the gale, it has, in nautical parlance, shortened sail and trimmed ship very considerably while riding out the storm. Thus, for instance, loans and discounts have been reduced since last July, some $68,000, while the cash available for immediate use has risen from $48,000 to $93,000, or nearly doubled. At the time of the last statement there was but a scant $8,000 in hand above the reserve fund required by law. Now there is $54,000; over 20 per cent in excess of the legal reserve. While it was to be expected that deposits would run down. owing to the very general withdrawal by timorous depositors, the shrinkage is scarcely perceptible, being but $15,000-a falling off from $276,000 in July to $261,000 in October. This difference. we learn. was considerably larger a few weeks ago, but of late confidence seems to have been entirely restored. and new accounts and an increase of deposits are of daily occurrence with Miles City's only bank. While it may fairly be assured that all of banks that were able to weather the storm are possessed of recuperative powers that will enable them to rapidly recover from the strain. it is nevertheless a matter for special congratulation among ourselves that the First National of Miles City has proven so worthy of the confidence that was reposed in it by the people of this county. The financial strength and commercial standing of the directors of the First National bank. both individually and collectively. was undoubtedly the great bulwark of deI fense and protection in the troubulous times of last July. Without the confia dence that these men could inspire by I personally guaranteeing the claims of frightened depositors, the shave would 1 have been much closer. and there might o even have been a temporary closing. but t happily, all trouble is over now and the e skies are fair.