20031. Merchants National Bank of West Virginia (Morgantown, WV)

View Charter #1502 on SPMC

Bank Information

Episode Type
Run Only
Bank Type
national
Bank ID
1502
Charter Number
1502
Start Date
July 13, 1887
Location
Morgantown, West Virginia (39.630, -79.956)

Metadata

Model
gpt-5-mini
Short Digest
0af9cc25fc4f04eb

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Books examined

Description

July 1887 episodes describe a depositor run triggered by discovery of large overdrafts and loose bookkeeping. Bank met all demands with outside assistance and continued business; no suspension or receivership reported.

Events (3)
1. August 3, 1865 Chartered
Source
historical_nic
2. July 13, 1887 Run
Cause
Bank Specific Adverse Info
Cause Details
Discovery of large overdrafts (one $15,000, another $8,000) and loose bookkeeping that alarmed depositors.
Measures
Received offers/assistance from other banks (Fairmont, Grafton, Wheeling, Uniontown, Second National of Morgantown); engaged experts to straighten books; paid depositors in full.
Newspaper Excerpt
A gentleman ... says that when he left Morgantown yesterday the institution was doing business as usual. Recently there was somewhat of a run made on the bank by depositors. Exports in examining the books had found that one depositor had overdrawn about $15,000 and another $8,000... help was obtained from outside sources at an opportune moment.
Source
newspapers
3. October 4, 1888 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (3)
1. July 13, 1887 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, July 13, 1887

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Article Text

A SENSATIONAL RUMOR Reaches the City Concerning n Morgan. town National Bank. A report reached the city last evening that the Merchants' National Bank, of Morgantown, had closed its doors. Owing to the fact that the telegraph offices, there had closed no ! confirmation of the report or particulars could be obtained. A gentleman was found, however, who is familiar with the bank, and who says that when he left Morgantown yesterday the institution was doing business as usual. Recently there was somewhat of a run made on the bank by depositors. Exports in examining the books had found that one depositor had overdrawn about $15,000 and another $8,000. This became known and the depositors began to draw out their funds. The bank was in danger, but help was obtained from outside sources at an opportune moment, and the gentleman quoted did not k now of any new developments since.

2. July 16, 1887 The New Dominion Morgantown, WV
Article from The New Dominion, July 16, 1887

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Article Text

The Merchants' National Bank. The little flurry caused a few days ago by reports that were started to the effect that the Merchants' National Bank of this place was considerably embarrassed, has blown over and the bank is doing business as usual. The reports were first started when it became known that the books were not posted and that sundry parties had been over-checking their accounts until the overdrafts aggregated more than twenty thousand dollars. The latter story unfortunately was too true as shown by an examination of the books. The business of the bank seemed to be languishing for some time past and the directors were puzzled to account for it. It is very plain now. It was simply the result of over drafts by customers who paid no attention to their accounts. Numerous reports were soon afloat that made scary depositors uneasy and a little run was made on the Bank, but it has been able to meet all demands and is stronger now financially than it thought itself to be. Several experts have been engaged on the books for a couple of weeks and will soon have everything straightened up. The discovery of the overdrafts adds to the bank's resources just that amount. When it seemed that a run would probably be made proffers of assistance came from Fairmont, Grafton, Wheeling and Uniontown, and the Second National of this place, showing the credit of the Bank to be unimpaired in the estimation of those best able to judge. Little of it was needed, however, and confidence has been fully restored. Not the slightest suspicion of dishonesty against the cashier or any other of the officials is entertained by any one who knows them. The mishap was simply the result of neglect on the part of the bookkeeper. Business is going on as usual and there need have been no fears at all for the solvency and solidity of the institution.

3. July 28, 1887 Virginia Free Press Charles Town, WV
Article from Virginia Free Press, July 28, 1887

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Article Text

There has been trouble in the Merchant's National bank at Morgantown, caused by loose book-keeping, one depositor having overdrawn $15,000 and another $8,000, and several others in smaller sums. Depositors got scared and there was a run but all were paid in full. It is thought the bank will come out all right.Jackson Bugle. It looks very much like bank officers and depositors were loose in their accounts.There ought to be some loose change in such a community.