Merchants National Bank - Devils Lake, ND

Bank Information

Episode Type: Run Only
Bank Type: national
Bank ID: 3714
Charter Number: 3714
Start Date: January 2, 1892
Location: Devils Lake, North Dakota (48.112, -98.876)

Metadata

Model: gpt-5-mini
Short Digest: 5b1337ed

Response Measures

Accommodated withdrawals, Books examined

Receivership Details

Depositor recovery rate: 100.0%
Date receivership started: 1897-01-11
Date receivership terminated: 1897-08-07
OCC cause of failure: Losses
Share of assets assessed as good: 49.6%
Share of assets assessed as doubtful: 43.0%
Share of assets assessed as worthless: 7.5%

Description

Multiple contemporaneous articles (Dec 31–Jan 2, 1892) report a run on Merchants' National in Devils Lake triggered by reports of trouble/failure at the Minot bank (another of A. E. Mears's banks). The run was calmed by assurances, the bank paid depositors and reopened next day; there is no suspension or receivership mentioned.

Events (3)

1. May 24, 1887 Chartered

Source: historical_nic

2. January 2, 1892 Run

Cause: Local Banks
Cause Details: Reports of failure/trouble at the Minot bank (another bank controlled by A. E. Mears) alarmed depositors and triggered withdrawals at the Merchants' National in Devils Lake.
Measures: Officers gave assurances; received additional currency; paid depositors promptly; reopened next day.
Newspaper Excerpt: a report that his Minot bank had failed caused considerable excitement here, and a run on his Merchants' National in Devil's Lake resulted, but was quieted by assurances that the Minot trouble was only a temporary scarcity owing to withdrawal of county funds.
Source: newspapers

3. January 11, 1897 Receivership

Source: historical_nic

Newspaper Articles (4)

1. January 1, 1892 St. Paul Daily Globe Saint Paul, MN

Article from St. Paul Daily Globe, January 1, 1892

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Article Text

A SMALL BANK FAILURE. Over Which Devil's Lake Gets Excited. Special to the Globe. DEVIL'S LAKE, N. D., Dec. 31.Within a few years about ten or twelve banks have bobbed up in this state under the fosterage of E. Ashley Mears. A report that his Minot bank had failed caused considerable excitement here, and a run on his Merchant's National in Devil's Lake resulted, but was quieted by assurances that the Minot trouble was only a temporary scarcity owing to withdrawal of county funds. Local depositors were in a flurry this afternoon. Mears' bank here is custodian of the county funds, with Mears as surety.

2. January 2, 1892 The Madison Daily Leader Madison, SD

Article from The Madison Daily Leader, January 2, 1892

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Article Text

Excited Over a Bank Failure. DEVIL'S LAKE, N. D., Jan. 2.-Within a few years about ten or twelve banks have bobbed up in this state under the fosterage of E. Ashley Mears. A report that his Minot bank had failed caused considerable excitement here, and a run on his Merchants' National in Devil's Lake resulted, but was quieted by assurances that the Minot trouble was only a temporary scarcity owing to withdrawal of county funds. Local depositors were in a flurry. Mears' bank here is custodian of the county funds, with Mears as surety.

3. January 3, 1892 St. Paul Daily Globe Saint Paul, MN

Article from St. Paul Daily Globe, January 3, 1892

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Article Text

BANK RUNNING AGAIN. The Trouble at Minot Is Only Temporary. DEVILS LAKE, N. D., Jan. 2.-Reports of trouble with the Bank of Minot are conflicting. A. E. Mears, president of the bank, is also president of the Merchants' National bank of this city, the National Bank of North Dakota at Fargo, and a number of other banks in this state, and the trouble at Minot will probably affect them all more or less. The officers of the bank here state that the trouble at Minot was caused by Mears refusing to pay his taxes, considering them exorbitant. This incensed the county officials, and the treasurer withdrew his deposits. This alarmed the other depositors, and they commenced withdrawing, causing the bank to run out of funds about an hour before the usual time for closing. They opened up next day, having received more currency, and the bank is running as usual. When the report reached this city depositors in the Merchants' National bank became somewhat alarmed, and about $9,000 was withdrawn. The cashier, however, assured them that there was no cause for alarm. He received any deposits offered, and stated that he had funds to pay all in full, excepting the county, and could pay it in two days should it demand it. The county has about $20,000 in bank at present. A good deal of it will be paid out to the state, city anu townships in a few days. Mears' cashier. Peterson, Mears' son and other officers of the bank are on the county treasurer's bond for $30,000. County Auditor Hale and County Treasurer Lee on hearing reports of trouble made a critical examination of the books, papers, etc., of this bank and concluded that it was sound. The bank has about $80,000 worth of paper and claims not to owe a cent. Certain it Is that its doors were open all day yesterday and every persón demanding his money was paid promptly. It is reported that the cashier of the Minot bank notified his father-in-law some time ago to withdraw his deposit. This. however, the officers here say is not the case, and that the bank just happened to get caught as any other bank in the country is liable to should all depositors suddenly withdraw.

4. January 3, 1892 St. Paul Daily Globe Saint Paul, MN

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Article Text

BANK RUNNING AGAIN. The Trouble at Minot Is Only Temporary. DEVILS LAKE, N. D., Jan. 2.-Reports of trouble with the Bank of Minot are conflicting. A. E. Mears, president of the bank, is also president of the Merchants' National bank of this city, the National Bank of North Dakota at Fargo, and a number of other banks in this state, and the trouble at Minot will probably affect them all more or less. The officers of the bank here state that the trouble at Minot was caused by Mears refusing to pay his taxes, considering them exorbitant. This incensed the county officials, and the treasurer withdrew his deposits. This alarmed the other depositors, and they commenced withdrawing, causing the bank to run out of funds about an hour before the usual time for closing. They opened up next day, having received more currency, and the bank is running as usual. When the report reached this city depositors in the Merchants' National bank became somewhat alarmed, and about $9,000 was withdrawn. The cashier, however, assured them that there was no cause for alarm. He received any deposits offered, and stated that he had funds to pay all in full, excepting the county, and could pay it in two days should it demand it. The county has about $20,000 in bank at present. A good deal of it will be paid out to the state, city and townships in a few days. Mears' cashier, Peterson, Mears' son and other officers of the bank are on the county treasurer's bond for $30,000. County Auditor Hale and County Treasurer Lee on hearing reports of trouble made a critical examination of the books, papers, etc., of this bank and concluded that it was sound. The bank has about $80,000 worth of paper and claims not to owe a cent. Certain it is that its doors were open all day yesterday and every person demanding his money was paid promptly. It is reported that the cashier of the Minot bank notified his father-in-law some time ago to withdraw his deposit. This, however, the officers here say is not the case, and that the bank just happened to get caught as any other bank in the country is liable to should all depositors suddenly withdraw.