20310. Merchants National Bank (Deadwood, SD)

View Charter #2461 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
2461
Charter Number
2461
Start Date
June 11, 1894
Location
Deadwood, South Dakota (44.377, -103.730)

Metadata

Model
gpt-5-mini
Short Digest
eeedb75a

Response Measures

None

Description

Multiple articles report that on June 11, 1894 Merchants National (and Deadwood National) turned assets and deposits over to First National and closed their doors. Causes cited: failure to make money and possession of considerable almost-worthless securities. No run or depositor panic is described in these pieces; this is a consolidation/closure.

Events (1)
1. June 11, 1894 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Failure to make money and possession of considerable almost-worthless securities led the bank to turn assets and deposits to First National and close its doors.
Newspaper Excerpt
The Merchants' National and the Deadwood National turned their assets and deposits over to the First National and closed their doors.
Source
newspapers

Newspaper Articles (6)
1. June 12, 1894 The Times Richmond, VA
Article from The Times, June 12, 1894

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Article Text

National Banks Consolidate. DEADWOOD, S. D., June 11.-The consolidation of three national banks of this city was made Saturday, the Merchants' National and the Deadwood National turning their assets and deposits over to the First National and closed their doors. The First National will carry all checks of the old banks, and nobody will lose a dollar by the deal. Failure to make money and the possession of considerable almost worthless securities are assigned as the causes of the closing of the two institutions.

2. June 12, 1894 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, June 12, 1894

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Article Text

National Bank Consolidation. DEADWOOD, S. D., June 11.-The Merchants National and the Deadwood National banks, of this city, have turned their assets and deposits over to the First National Bank and closed their doors. The First, National will carry all the checks of the old banks, and nobody will lose a dollar by the deal. A failure to make money and the possession of considerable almost worthless securities are assigned as the causes of the closing of the two institutions.

3. June 12, 1894 The Morning News Savannah, GA
Article from The Morning News, June 12, 1894

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Article Text

BANKS GO OUT OF BUSINESS. Two Deadwood Institutions Turn Their Business Over to a Third. Deadwood, S.D., June 11.-The consolidation of three national banks of this city was made Saturday. The Merchants' National and the Deadwood National turned their assets and deposits over to the First National and closed their doors. The First National will carry all the hecks of the old banks and nobody will lose a dollar by the deal. Failure to make money and the possession of considerable almost worthless securities are assigned as the causes of the closing of the two institutions.

4. August 11, 1894 Custer Weekly Chronicle Custer, SD
Article from Custer Weekly Chronicle, August 11, 1894

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Article Text

Sudden Death of Alvin Fox. It was a shocking surprise this morning to learn that Alvin Fox, Receiver of the First National Bank was stricken with apoplexy and was lying at the point of death with absolutely no chance of recovery. This morning he went down to the bank as usual, but returned to the house after a little, telling Mrs. Fox that he did not feel very well. He laid down on a lounge to rest and Mrs. Fox left the room returning in about half hour to find him unconscious. Drs. B. A. and N. M. Wade were at once summoned, but every effort was unavailing and the end came at about 1:30. Alvin Fox died in the 49th year of his age. He was born in Canada, and with his parents moved to South Pass Island, Lake Erie. He was one of the oldest residents of Deadwood, where he was interested with Messrs. Stebbins and Mund in the Merchants National bank which failed last year. He was appointed receiver of the First National bank of Hot Springs last August, and during the time he has lived here made many warm friends. He leaves a wife, two sons, Stuart and George, and a daughter, Birdie, who have the sympathy of the community in their sudden berea s ment-Hot Spriner Herald 4tb.

5. September 14, 1895 The Herald Los Angeles, CA
Article from The Herald, September 14, 1895

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Article Text

TOO FREE WITH THE PEN, And Now Finds Himself in Serious Trouble FOR ARRESTED FORGERY Prominent Throughout the West in Business Circles w. R. Stebbins of Kansas City Charged With Having Used Another Man's Signature SALT LAKE Sept. 13.-A special to the Tribune from Cheyenne, Wyo., says: W. R. Stebbins, who has been well known in banking and business circles throughout the west for the past twenty years, was arrested here this morning by Sheriff Armstrong of Crook county on the charge of forgery. The sheriff started north at once with his prisoner, who will have a hearing at Sun Dance early next week. Mr. Stebbins' home is in Kansas City, Kan., where he is connected with the American Loan and Trust comDany. He has large property interests here, owning the Cheyenne postoffic e building. He has been connected as a stockholder or officer in the Merchants' National bank of Deadwood, S. D.: the Stebbins, Post & Co. bank of Cheyenne; the First National bank of Sun Dance; the Stock Growers National of Miles City; Cheyenne National and California National of San Diego, all of which have failed but without loss, it is alleged, to Stebbins. It 18 charged that Mr. Stebbins owne ed a block of stock in the First National of Sun Dance from its organization. To conceal his ownership of the bank stock Mr. Stebbins transferred it to a Kansas City man named Mills. The bank was then prospering and paying dividends on the stock. It is alleged that in order to secure the dividends on the stock transferred to Mills, Stebbins made out a power of attorney to the addition of Sun Dance, signed Mills' name to it and sent the document to A. D. Dunn. It authorzed him to vote the stock and collect the dividends. It is also alleged that Mills was in ignorance of this transaction. Later the bank failed and went into the hands of Receiver Milo A. Adams, who levied an assessment on all stockholders for the benefit of the banks' creditors. Both Mills and Stebbins denied owning the stock referred to and an investigation which followed resulted in the discovery of the forgery. Besides his connection with western banks, Mr. Stebbins is connected with the banking firm of Christic & Janney of New York. Suits against him by representatives of the broken banks have been commenced in New York city. Wyoming and Kansas City. Mr. Stebbins and his family have traveled abroad considerably, and he is regarded as personally being very wealthy.

6. September 15, 1895 The Seattle Post-Intelligencer Seattle, WA
Article from The Seattle Post-Intelligencer, September 15, 1895

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Article Text

All His Banks Failed, but, It Is Said, Without Loss to Him. Salt Lake, Sept. 13.-A special to the Tribune from Cheyenne says: W. R. Stebbins, who has been well known in banking and business circles throughout the West for the past twenty years, was arrested here this morning by Sheriff Armstrong, of Crookston, on a charge of forgery. The sheriff started north at once with his prisoner, who will have a hearing at Sun Dance early next week. Mr. Stebhins' home is in Kansas City, Kan., where he is connected with the American Loan and Trust Company. He has large property interests here, owning the Cheyenne postoffice building. He has been connected as a stockholder or officer with the Merchants' National Bank of Deadwood, S. D.; the Stebbins, Post & Co. Bank of Cheyenne; the First National Bank of Sun Dance: the First National Bank of Spearfish: the Stock Growers' National Bank of Miles City: the Cheyenne National Bank and the California National Bank of San Diego, all of which have failed, but without loss, It is alleged, to Stebbins. It is charged that Mr. Stebbins owned a block of stock in the First National Bank of Sun Dance from its organization. To conceal his ownership of the bank stock Mr. Stebbins transferred it to a Kansas City man named Mills. The bank was then prospering and paying dividends on the stock. It is alleged that in order to secure the dividends on the stock transferred to Mills, Stebbins made out a power of attorney. signed Mills' name to It and sent the document to A. D. Dun. It authorized him to vote the stock, receipt for and collect the dividends. It is also alleged that Mills was in ignorance of this transaction. Later the bank failed and went into the hands of a receiver, Milo A. Adams, who levied an assessment on all the stockholders for the benefit of the bank's creditors. Both Mills and Stebbins denied owning the stock referred to, and an investigation followed. resulting in discovery of the forgery. During his connection with Western banks he has also been connected with the banking firm of Christie & Janney, of New York. Suits against him by representatives of the broken banks have been commenced in New York city, Wyoming and Kansas City. Mr. Stebbins and his family have traveled abroad considerably, and he is regarded as being very wealthy.