18063. Mechanics Bank (Memphis, TN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
December 27, 1905
Location
Memphis, Tennessee (35.150, -90.049)

Metadata

Model
gpt-5-mini
Short Digest
271062b57a335dbf

Response Measures

None

Description

Multiple contemporary reports (Dec 27, 1905) state the Mechanics Savings Bank suspended along with Merchants' Trust Company and American Savings Bank & Trust. Cause given as overloans on discounts (bank-specific overexposure). Articles describe the institutions going into liquidation or having a receiver appointed for the trust company; the Mechanics' institution is described as suspended/going into liquidation, so I classify this as a suspension that resulted in closure. OCR variations in receiver name (Edmondson / Edmunson / Edmondson) corrected to John P. Edmondson in notes above.

Events (1)
1. December 27, 1905 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Directors cited over-loans on discounts and excessive spreading out of advances; Merchants' Trust's losses on discounts forced suspension of allied institutions.
Newspaper Excerpt
the American Savings Bank and Trust company, and the Mechanics' Savings bank, smaller institutions allied with the first named concern, have gone into liquidation.
Source
newspapers

Newspaper Articles (13)
1. December 26, 1905 The Daily Sentinel Grand Junction, CO
Article from The Daily Sentinel, December 26, 1905

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Article Text

THREE BANKS CLOSE DOORS. Special to The Sentinel. Memphis, Tenn., Dec. 27.-Three banking institutions failed to open their doors for business today. The Merchants Trust company capitalized for $200,000 and the American Savings bank and Trust company, and the Mechanics' Bank, two institutions allied with the first named were the banks that failed to open. John C. Edmonason was appointed as receiver. The cause of the suspension of business was overloans on discounts. The deposits amounted to $625,000.

2. December 27, 1905 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, December 27, 1905

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THREE BANKS FAN AT MEMPHIS TODAY The Merchants' Trust Company Closes Its Doors and Receiver Is Appointed OTHERS CARRIED WITH American Savings Bank and Trust Company and the Mechanics' Savings Bank, Institutions Connected I With the Failed Bank, Forced to Suspend -Will Pay Depositors.

3. December 27, 1905 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, December 27, 1905

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THREE BANKS FAIL Merchants' Trust and Allied Institutions Closed at Mem. phis, Tenn. EXPECT TO PAY ALL DEBTS Trouble Over Losses and DiscountsCauses Little Excitement in Financial Circles. Memphis, Tenn., Dec. 27.-The Merchants' Trust company has closed its doors and a receiver has been appointed. Felix T. Pope is president. The institution has a capital of $200,000. The American Savings Bank & Trust company and the Mechanics' Savings bank have suspended. These are small institutions allied with the Merchants' Trust company. According to a recent statement the Merchants' Trust owed depositors $605,000. Pay All Obligations. The cause of the suspension of the Merchants' Trust is said to have been over loans on discounts. One director said to the Associated Press the three institutions had ample assets and could pay dollar for dollar. The suspension of the three institutions caused little excitement in financial circles. The American Savings bank, according to a recent statement, owed depositors $625,000.

4. December 28, 1905 Albuquerque Morning Journal Albuquerque, NM
Article from Albuquerque Morning Journal, December 28, 1905

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Article Text

THREE BANKS GO TO WALL BIG MEMPHIS INSTITUTIONS PASS INTO LIQUIDATION Memphis, Tenn. Dec. 27. - Three institutions failed to open their doors for business today. The Merchants' Trust company with a capital stock of $200,000. The American Savings Bank & Trust company, and the Mechanics Savings bank, smaller institutions allied with the first named concern, have gone into liquidation. The following notice was posted on the doors of the Merchants' Trust company: "This bank is closed by order of the board of directors and will go into liquidation. FELIX T. POPE. (Signed) "President." Another notice reads: "This bank has gone into liquidation. John P. Edmunson has been appointed receiver." The cause of the suspension of the Merchants' Trust company is said to have been over-loans on discounts. One of the directors said to a representative of the Associated Press that the three institutions had ample assets, and would pay dollar for dollar. When the officers of the Merchants Trust company decided to suspend business, Chancellor Heiskell was asked to appoint a receiver for the institution and named John F. Edmondson, a Memphis lawyer. The Merchants' Trust company recently absorbed the Memphis National bank, and it is stated, owns the controlling stock of the American Savings Bank and Trust company. The latter institution has practically absorbed the Mechanics' Savings bank. The suspension of the three institutions caused little excitement in financial circles.

5. December 28, 1905 Ottumwa Tri-Weekly Courier Ottumwa, IA
Article from Ottumwa Tri-Weekly Courier, December 28, 1905

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Article Text

THREE ALLIED INSTITUTIONS AT MEMPHIS, TENN., WILL LIQUIDATE Memphis, Tenn., Dec. 27.-The Merchants' Trust company has closed its doors and a receiver has been appointed. Felix T. Pope is the president of the institution, which has a capital of $200,000. The American Savings Bank and Trust company, and the Mechanics' Savings. bank have also suspended. These are small institutions allied with the Merchants' Trust company. Overloans Cause Trouble. The cause of the suspension of the Merchants' Trust is said to have been overloans on discounts. One of the directors said to the Associated Press that the three institutions have ample assets and can pay dollar for dollar. The suspension of the three institutions has caused little excitement in financial circles. The American Savings bank, according to a recent statement, owed its depositors $625,000. According to a recent statement the Merchants' Trust owed its depositors $605,000.

6. December 28, 1905 The Vinita Weekly Chieftain Vinita, OK
Article from The Vinita Weekly Chieftain, December 28, 1905

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Article Text

THREE FINANCIAL CONCERNS FAIL Memphis Institutions Pass Into the Hands of a Receiver Too Much Speculation. Associated Press Memphis, Tenn., Dec. 27-Three financial institutions failed to open their doors for business today, viz: Merchants Trust Company, with a capital of two hundred thousand dollars, the American Savings bank and trust company and the Mechanics savings bank. Smaller Institutions allied with the first named concerns have gone into liquidation. The cause of suspension of the Merchants' Trust company is said to have been over-loans on discounts. One of the directors said to the Associated Press that their institution had ample assetts, and would pay dollar for doilar. John P. Edmondson, a Memphis lawyer, has been appointed receiver.

7. December 28, 1905 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, December 28, 1905

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THREE MEMPHIS BANKS GO DOWN Assets Said to Be Ample to Pay the Depositors. RESULT OF SPREADING OUT FAILURE CAUSED LITTLE OR NO EXCITEMENT. EMPHIS, Tenn., Dec. 27.-Three institutions failed to open their M doors for business today. The Merchants' Trust company. with a capital stock of $200,000; the American Savings bank & Trust company, and the Mechanics' Savings bank, smaller institutions allied with the first named concern, have gone- into liquidation. The following notice was posted on the doors of the Merchants' Trust company: "This bank is closed by order of the board of directors, and will go into liquidation. (Signed.) "FELIX T. POPE. "President." Another notice reads: "This bank has gone into liquidation. John P. Edmonson has been appointed receiver.' Assets Are Ample. The cause of the suspension of the Merchants' Trust company is said to have been over-loans on discounts. One of the directors said to a representative of the Associated Press that the three institutions had ample assets and would pay dollar for dollar. When the officers of the Merchants' Trust company decided to suspend business, Chancellor Heiskell was asked to appoint a receiver for the institution, and named John P. Edmonson, a Memphis lawyer. The Merchants' Trust company recently absorbed the Memphis National bank, and, it is stated, owns the controlling stock of the American Savings Bank & Trust company: The latter institution has practically absorbed the Mechanics' Savings bank. The suspension of the three institutions caused little excitement in financial circles. A Run Was Feared. It was later learned that the American Savings Bank & Trust company had actually absorbed the Mechanics' Savings bank several days ago. It was stated today that the suspension of this institution is only temporary and that its affairs are in good shape. Officers say that the suspension was decided upon because they feared a run when the doors were opened this morning, the public generally being aware of the bank's relation to the Merchants' Trust company. At the latter institution it was announced that a thorough reorganizatio would be made, and hope was expressed that the company would again open its doors for business in a short time. A condensed statement of the condition of the Merchants' Trust company at the close of business Dec. 26 was given out, as follows: Total assets, $3,665,055: indebtedness of every character to depositors, $2,132,319; all other obligations exclusive of capital stock, $889,058; cash actually on hand, $30,000. Aided by Clearing House. C. W. Schulte, president of the Memphis Clearing House association, made the following statement in behalf of the association: "Fifteen days ago the Merchants' Trust company applied for help to the Memphis Clearing House association. The Clearing House association appointed a committee to investigate the matter. The committee went over the assets of the Merchants' Trust company as carefully as the limited time allowed, and the association advanced through the Merchants' Trust company the sum of $160,000. "Subsequent investigation revealed the fact that while it was the opinion of the members of the Clearing House association that the depositors of the concern are safe, yet it would take an extraordinarily large sum to pay all the demands. "In the interests of the city and depositors and of the various institutions of the city, which for the last month have anticipated some such movement, it was deemed wisest totallow the concern to close its doors. Other Banks Safe. "Representatives of the large banks of New York, Chicago and St. Louis are in the city with great quantities of money in furtherance of the legitimate business interests of the city. "It is deemed advisable that no undue excitement be indulged in. Old and experienced bankers and members of the Memphis Clearing House association have the situaiton well in hand. No danger is apprehended and the commercial interests of the city are competent to meet any sttuation that is liable to arise." Major G. W. McRae. president of the Memphis Savings bank, said: "I believe the-liquidation to be a result of taking on too much business by the Merchants' Trust company, too much spreading out and too large advances in purchasing other properties."

8. December 28, 1905 The Cairo Bulletin Cairo, IL
Article from The Cairo Bulletin, December 28, 1905

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Article Text

BANKS FAILED TO OPEN THE DOORS Three Memphis Banks Go Down With a Crash GO INTO LIQUIDATION OVERLOANS AND DISCOUNTS SAID TO BE RESPONSIBLE.INSTITUTIONS CLAIM THEY WILL PAY OUT. Memphis, Tenn., Dec. 27.-Three financial institutions of this city failed to open their doors today. They are the Merchants' Trust company, capital stock two hundred thousand: the American Savings (bank and Trust company and the Mechanics' Savings bank. The two last are smaller institutions allied with the first named institution. John P. Edmondson, a well known attorney. was appointed receiver of the Mechanics' Trust company. Overloans and discounts are said to be the reason for the action of the directors. Felix T. Pope is president of the Merchants' Trust company. which recently absorbed the Memphis National bank and later secured a controlling 'nterest stock of the American Savings bank and Trust company. A director of the institution told al representative of the American Press today that the banks were solvent and would pay dollar for dollar. The arfairs of the American Savings and Trust bank are said to be in excellent shape and its suspension is only temporary. The public, however, knew its relation to the Merchants' Trust company, and its officers say that to avoid 1 run on the institution today they closed its doors. They hope to reorganize and begin business again in and Co., and allaeeinsegteraEshrd two weeks. Off'cers of the Merchants' Trust company say they expect to reorganize. Statements how the assets of all the institution to be a little less than four million dollars, with liabilities considerably under that sum. The deposits in the two institutions are over two millions. The Merchants' Trust company, so the directors say, will pay dollar for dollar. Rumor, however, says only 80 per cent. on the dollar will be paid. The American Savings will undoubtedly pay out in full. The capital of the Merchants' Trust company is $200,000. The American Savings bank's capital, counting the capital of the Merchants' Savings bank is $100,000.

9. December 29, 1905 Gainesville Daily Sun Gainesville, FL
Article from Gainesville Daily Sun, December 29, 1905

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THREE INSTITUTIONS FAIL TO OPEN DOORS Cause Of Suspension Overloans On Discounts. RECEIVER IS APPOINTED A Have Ample Assets and Will Pay Dol. lar for Dollar-Suspension Caused Little Excitement In Financial Cir. cles-Had $200,000 Capital Stock. Memphis, Tenn., Dec. 28.-Three Anancial institution failed to open their doors for business today. The Merchants' Trust company. with a capital stock of $200,000: the American Savings Bank and Trust company, and the Mechanics' Savings bank. smaller institutions. and allies with the first named concern, have gone into liqui. dation. The following notice was posted on the doors of the Merchants Trust company: "This bank is closed by order of the board of directors, and will go into 11. quidation. (Signed) Felix T Pope, president." Another notice read as follows: "This bank has gone into liquida tion. Jonn P. Edmondson nas been appointed receiver." The cause of the suspension of the Merchants' Trust company is said to have been over loans on discounts. One of the directors said to a repre. sentative of the Associated Press that the three institutions had ample assets, and would pay dollar for dollar. When the officers of the Merchants' Trust company decided to suspend bus. iness. Chancellor Helskell was asked to appoint a receiver for the institu tion. Hon. John P. Edmendson, one of the best known lawyers In Memphis, was named as receiver. The Merchats' Trust company recently absorbed the Memphis National bank. and, It is said. owns the controlling stock of the American Sav. ings Bank and Trust company The lat. ter institution has practically absorb ed the Mechanics' Savings bank The suspension of the three Institutions caused little excitement In finan. clal circles.

10. January 3, 1906 Willmar Tribune Willmar, MN
Article from Willmar Tribune, January 3, 1906

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MISCELLANEOUS Three Memphis (Tenn.) financial institutions failed to open their doors for business. The Merchants' Trust company, with a capital stock of $200,000, the American Savings Bank and Trust company and the Mechanics' Savings' bank, smaller institutions and allied with the first named concern, have gone into liquidation. The suspension of the three institutions caused little excitement in financial circles. Dr. R. A. Torrey, the noted evangelist of Chicago, was welcomed home from Europe by 6,000 persons and he predicts a widespread revival in the United States the coming year. Sarah Bernhardt appealed to the French ambassador to the United States against the discrimination of the theatrical trust against her as a citizen of France. Clearings for Chicago banks have passed the $10,000,000,000 mark, the figure set by officials of the clearing house for the year's business. A trusted clerk of the First National bank of Mamaroneck, N. Y., is said to have confessed to robbing the institution of $8,000. The municipally operated ferry between New York and Staten island costs New York city $500 a day, that being the excess of expenses over receipts. b Two children of Mr. and Mrs. George Fayette burned to death at Miller's Mill, Mich., a little girl four years old and a boy one year old. The mother had locked them in the house alone. [t is supposed the little girl set fire to the house with matches. Eight men were killed by a fall of 1,000 tons of ore from a slip on the 1,300-foot level of the Newport mine in Ironwood Mich. Mrs. Drusilla Hall Johnson, the daughter of a soldier of the American revolution, died at her home in Northampton, Mass., aged 100 years. Supreme Court Justice Gaynor, of Brooklyn, handed down a decision in which he declares that the supreme council of the Royal Arcanum has no right to put into effect rates for the assessment of members different from those at which they were admitted into the order. The international livestock exposition in Chicago closed with a record attendance for the week, 557,743 persons attending. The pope, who is a warm admirer of Prseident Roosevelt and the American nation, will send a wedding present to Miss Alice Roosevelt. A concerted effort to establish a lasting world peace is to be made by the civilized nations under the dominating guidance of President Roosevelt, Henry Wulff, former Illinois state treasurer, has been indicted by the graud jury in Chicago on a charge of promoting a lottery. -

11. January 5, 1906 Morgan County Democrat Versailles, MO
Article from Morgan County Democrat, January 5, 1906

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Business Failures Jan. 3-First national bank of Faribault, Minn., closed; receiver appointed. 9-Brott cotton mills, Massachusetts, capital $1,200,000. 27-Standard Rope & Twine Co., N. Y., for $12,000.000. 29-Pan-American bank. Chicago: assets $17,200, liabilities $75,900. Mar. 5-Arnold Brewing Co., Saulte St. Marie, Mich.; liabilities $85,000; assets $65,000. Apr. 3-Ladoga, Ind., bank; assets $80,000. liabilities $109,000. 26-Barberton. O., First national bank Jun. 2-Ladysmith, Wis., First national bank closed. 19-Fyfe & Munson, Chicago, placed in receiver's hands. 26-Knight, Donnelly & Co., Chicago. Jul. 5-Spring Valley, Ill., and Toluca, III., national banks close. 6-Hagerstown, Ind., Commercial bank: liabilities. $125,000. Aug. 3-West Liberty, Ky., bank closes. Sep. 19-Minot. S. D., national bank closes doors. Oct. C-Peoria (III.) national bank closes because of Dougherty indictments. Nov. 1-Kingfisher (Okla) national bank closed by comptroller of currency. Dec. 18-John R. Walsh's three banks in Ch'cago. Chicago National. Home Savings and Equitable company in liquidation. Local clearing house guarantees payment of 826,000,000. Public and private accounts involved. 27-Merchants Trust company, American Savings bank and Mechanics Savings bank. Memphis, Tenn., close doors; first named in liquidation.

12. January 6, 1906 Morris Tribune Morris, MN
Article from Morris Tribune, January 6, 1906

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KEEPING TAB ON THE WORLD Concluded from page 7. Porto Rican Freight War. The Peck Steamship company is competing with the New York and Porto Rico company for trade with Porto Rico and already the freight rates have been cut 25 per cent. The island has had an extra good sugar crop, amounting to 200,000 tons. $150,000,000 For American Telephone. The issuance of convertible bonds to the amount of $150,000,000 was authorized by the stockholders of the American Telephone and Telegraph company. Call Money at 90 Per Cent. In anticipation of the payment of dividends by the great industrial combinations on Jan. 1 aggregating $150,4000,000 the banks had been hoarding their reserves to such an extent that the interest rate on call money rose to 00 per cent, after which it fell again to 25 per cent. Secretary Shaw refused to give any government aid in relieving the stringency. Three Memphis Banks Fail. The Merchants' Trust company, the American Savings bank and the Mechanics' Savings bank, three allied institutions of Memphis, Tenn., have been closed following application for a receiver for the trust company. The Alter claimed ample assets to cover all liabilities, and the officers said depositors would not lose, Biggest Farmers' Combination. F. E. Andrews, attorney for the National Farmers' exchange, announces that the amalgamation of the National Farmers' exchange and the American Farmers' union is about perfected. The new organization will be the greatest society of farmers in the United States. The National Farmers' exchange, capitalized for $100,000,000, operates several hundred elevators in Illinois, Iowa, Nebraska, Kansas, Minnesota and the Dakotas. The American Farmers' union has an extensive membership in Texas, New Mexico, Nevada, Indian Territory and Oklahoma. A new name is to be chosen for the combined associations.

13. January 9, 1906 Wausau Pilot Wausau, WI
Article from Wausau Pilot, January 9, 1906

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THREE MEMPHIS BANKS FAIL. Closing of Institutions Causes No Disturbance in City. Memphis, Tenn., experienced the closing of three banks Wednesday without feeling the least disturbance in financial circles. The Merchants' Trust Company, anticipating a heavy run, preliminary intimation of which was given by the withdrawal of many deposits Tuesday afternoon, was the immediate cause of the suspension of that bank and the appointment of John P. Edmondson, a lawyer, as receiver. The American Savings Bank and Trust Company, which is dominated by the directorate of the Merchants' Trust Company, fearing that the failure of the other institution would cause a run on its own deposits, also suspended payment until the affairs of the Merchants' Trust Company shall have been adjusted. The American Savings Bank and Trust Company, it develops, absorbed the Mechanics' Savings bank at Main and Calhoun streets and took charge of the latter company's business. It is stated by the officials of both institutions that the depositors with be fully protected and paid dollar for dollar. The stockholders of the Merchants' Trust Company, it is said, will suffer to the extent of 20 per cent on the capital invested.