Merchants & Farmers Bank - Washington, DC

Episode Information

Episode UID: 15011071496
Episode Type: Suspension → Closure
Bank Type: state
Bank ID: 1501107 routing
Routing Number: 15-0110
Start Date: August 19, 1924
Location: Washington, District of Columbia (38.895, -77.036)

Metadata

Model: gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest: be94d2556e22bfbd

Response Measures

None

Description

Bank was closed by directors and placed in liquidation for being unprofitable and inability to obtain a federal charter.

Events (1)

1. August 19, 1924 Suspension

Cause: Voluntary Liquidation
Cause Details: Directors decided to liquidate because the bank could not obtain a federal charter and was unprofitable
Newspaper Excerpt: The Merchants and Farmers Bank, of Anacostia, ... has closed its doors
Source: newspapers

Newspaper Articles (1)

1. August 19, 1924 The Washington Herald Washington, DC

Article from The Washington Herald, August 19, 1924

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Article Text

ANACOSTIA BANK WILL LIQUIDATE Merchants, Farmers, Unable to Get Federal Charter, Find Its Activities Unprofitable The Merchants and Farmers Bank, of Anacostia, No. 1205 Good Hope road, has closed its doors, it was learned last night. Because the bank could not obtain a Federal charter, deposit accounts were withheld. As an unprofitable enterprise, directors decided to liquidate, according to Sergeant F. M. Dent, of the Eleventh police precinct, one of the stockholders. ANOTHER BANK CLOSES. Suspension of business by the Anacostia bank follows the closing yesterday of the Union Laborers Bank, a colored institution, with offices at Fourteenth and T streets northwest. Deposits of more than $2,000 made through the Wheeler Banking system are included in the liabilities of the Union Laborers Bank, according to David B. Wheeler, head of the Wheeler Banking system. These deposits represent savings of persons connected with the Wheeler Banking system, Wheeler said. Practically all deposits by persons outside the Wheeler organization have been withdrawn since June 1, Wheeler said. NO ANACOSTIA LOSSES. None of the depositors of the Anacostia bank will lose money, according to Sergeant Dent, who said all losses would be borne by stockholders. The bank was incorporated under the laws of Delaware for $100,000. Emil Schmidt, who runs a foundry in Twining City, was president. The bank was in business for about two years. The liquidation came as the result of the mutual agreement of the directors and stockholders that, as the bank was not making money and could not obtain a charter, the best thing to do was to withdraw from business. It is understood that what remains of the capital of the bank, after the depositors have received their money and stockholders who wish to have withdrawn, will be applied to organization of a finance company and building association, to be incorporated under the laws of Maryland for $100,000. Bank stockholders will be asked to invest their money in the new organization. It is said many will do so. $40,000 IN DEPOSITS. James W. H. Howard, president of the Union Laborers Bank, with offices at Fourteenth and T streets northwest, said last night: "Every effort will be made to protect depositors." Howard estimates that deposits of the bank, made mostly by colored depositors, total something between $30,000 and $40,000. The exact amount will not be known, however, until a complete audit of books has been made. Most of the deposits, it is believed, were for small amounts. A meeting of trustees will be held Thursday night, when a date will be set for a meeting of stockholders of the bank. At the stockholders' meeting the course to be followed by the institution will be decided. According to Howard, the bank closed its doors because of inability to earn a sufficient return upon the money invested. The bank is capitalized at $10,000, and was operating under the laws of Arizona. It is not under the supervision of the United States Treasury Department. The Union Laborers Bank is the second institution not under Treasury supervision which has closed its doors in the District this summer. The other organization was the East End Bank, located at 1401 H street northeast. Treasury Department officials are preparing to make a strong plea before Congress this winter for amendment of the District banking laws, so as to give the United States Government supervision over every banking institution in the city of Washington. "PROFITLESS VENTURE." Howard declared last night he was absolutely positive there had been no misappropriation of funds or any irregularity linked with the closing of the bank. One profitless venture, Howard pointed out, was the establishment of a branch in the Southwest section. This has been closed for several months and all activities centered at the U street office. Trustees of the bank are James W. H. Howard, J. A. Edwards, J. Finley Wilson, Nathan Straughters and Mamie Straughters. Frank Morrison, secretary of the American Federation of Labor, emphatically denied yesterday any connection between the local Union Laborers Bank and the organized labor movement. He said: "I don't believe a single one of the officers are members of the labor organization. The Mt. Vernon Savings Bank is the only bank in Washington with a labor indorsement."