American Savings Bank

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: January 1, 1906
Location: Memphis, Tennessee (35.150, -90.049)

Metadata

Model: gpt-5-mini
Short Digest: 0a7a0dc4

Response Measures

None

Description

Articles (early January 1906) report the American Savings Bank (Memphis) failed to open its doors after officers of the affiliated Merchants' Trust Company applied for a receiver. The closure is presented as part of a group failure/closure of three allied Memphis institutions; Merchants' Trust was placed in liquidation. There is no clear description of a depositor run on the American Savings Bank itself (reports say the other two 'took precautions, anticipating a run'), so I classify this as a suspension/closure tied to failures of an affiliated bank (local bank distress) and receivership actions.

Events (1)

1. January 1, 1906 Suspension

Cause: Local Banks
Cause Details: Closed after application for a receiver for affiliated Merchants' Trust Company; affiliated institutions shut doors as precaution and Merchants' Trust went into liquidation; closures tied to consolidation/affiliated bank failure rather than an independent run.
Newspaper Excerpt: The Merchants' Trust Company, the American Savings Bank and the Mechanics' Savings Bank failed to open their doors for business in the morning.
Source: newspapers

Newspaper Articles (5)

1. January 1, 1906 The Topeka State Journal Topeka, KS

Article from The Topeka State Journal, January 1, 1906

Click image to open full size in new tab

Article Text

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. 7-Coe Co., Minneapolis; liabilities, $200,000. Apr. 3-Ladoga, Ind., bank; assets $80,000, liabilities $109,000. 24-Canton, O., state bank closes Lexington, Okla., First national bank falls. 26-Barberton, O., First national bank Jun. 2-Ladysmith, Wis., First national bank closed. 19-Fyfe & Munson, Chicago, placed in receiver's hands. 23-Vicksburg, Mich., exchange bank. 26-Knight, Donnelly & Co., Chicago. 28-Terre Haute, Ind., national bank closed doors. Jul. 5-Spring Valley, Ill., and Toluca, III., national banks close. 6-Hagerstown, Ind., Commercial bank; liabilities, $125,000. 19-Spring Valley, O., bank closes. 20-City national bank, Kansas City, Mo. Aug. 3-West Liberty, Ky., bank closes. 21-Western bank, Louisville, Ky.; due to overloans. Sep. 19-Minot, S. D., national bank closes doors. Oct. 6-Peoria (I11.) 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 Savingsand Equitable company in liquidation. Local clearing house guarantees payment of $26,000,000. Public and private accounts involved. 27-Merchants Trust company, American Savings bank and Mechanics Savings bank, Memphis, Tenn., close doors; first named in liquidation.

2. January 2, 1906 The Morris County Chronicle Morristown, NJ

Article from The Morris County Chronicle, January 2, 1906

Click image to open full size in new tab

Article Text

BANKS IN MEMPHIS FAIL Trouble Ascribed to Too Ambitious Consolidation. Generally Believed That Depositors Will Be Paid and That the Stockholders Will Not Lose Heavily. Memphis, Tenn.-The Merchants' Trust Company, the American Savings Bank and the Mechanics' Savings Bank failed to open their doors for business in the morning. The three institutions are related and an application for a receiver on the report of the officers and directors of the Merchants' Trust Company late at night caused the other two to take precautions, anticipating a run. No depositors will lose, so all the officers say. Heavy withdrawals of deposits from the Mercliants' Trust Company, which corporation conducted a Savings Bank feature in addition to its interests in the other banks named, caused the reeeivership application to be filed. The officers of the Merchants' Trust Company and the American Savings Bank and Trust Company gave out statements. The Mechanics' Savings Bank, claiming to be intact, made no statement. Merchants' Trust Company assets, $3,665,055; liabilities, $2,132,319. American Savings Bank assets, $7,643,193.82; liabilities, $614,178.88. The deposits of these two will go over two millions and the Merchants' Bank will add half a million more. Felix Pope, President of the trust company, says that all the depositors will be paid in full, though the stockholders may lose a heavy percentage. President Pope is a large stockholder and a director in the other two, and speaks for them also. The reason assigned for the failures is the over confidence and consequent liberal branching out of the Merchants' Trust Company, which recently absorbed the Memphis National Bank. taking over all of its liabilities without getting all of its directors, stockholders and depositors, who were among the conservative business men of Memphis. Afterward the trust company took over the American Savings Bank and an interest in the Mechanics' Savings Bank, without interesting the leading men of the two institutions. C. W. Schulte, President of the Memphis Clearing House. who is also President of the State National Bank of Memphis, said that every other financial institution here was amply able to take care of itself and ascribed the foregoing reasons as the cause of the present failures. The presidents and cashiers of other leading banks here were in line with the Clearing House President in their statements. At a late hour in the afternoon W. A. Percy, attorney for the Merchants' Trust Company, on behalf of the directors said: "All depositors will be paid in full. No one, save possibly the stockholders. of either institution will suffer any loss. I do not think the latter will lose more than twenty per cent. in the liquidation proceedings, if so much." It is possible that the corporations involved may be placed on a sound footing and reorganized with even less loss to the stockholders. At the close of business at night only $50,000 was in the vaults of the Merchants' Trust Company. No report was made as to the cash on hand of the other two banks.

3. January 5, 1906 The Penn's Grove Record Penns Grove, NJ

Article from The Penn's Grove Record, January 5, 1906

Click image to open full size in new tab

Article Text

BANKS IN MEMPHIS FA Trouble Ascribed to Too Ambitious Consolidation. Generally Believed That Depositors Will Be Paid and That the Stockholders Will Not Lose Heavily. Memphis, Tenn.-The Merchants' Trust Company, the American Savings Bank and the Mechanics' Savings Bank failed to open their doors for business in the morning. The three institutions are related and an application for a receiver on the report of the officers and directors of the Merchants' Trust Company late at night caused the other two to take precautions, anticipating a run. No depositors will lose, so all the officers say. Heavy withdrawals of deposits from the Merchants' Trust Company, which corporation conducted a Savings Bank feature in addition to its interests in the other banks named, caused the receivership application to be filed. The officers of the Merchants' Trust Company and the American Savings Bank and Trust Company gave out statements. The Mechanics' Savings Bank, claiming to be intact, made no statement. Merchants' Trust Company assets, $3,665,055; liabilities, $2,132,319. American Savings Bank assets, $7,643,193.82; liabilities, $614,178.88. The deposits of these two will go over two millions and the Merchants' Bank will add half a million more. Felix Pope, President of the trust company, says that all the depositors will be paid in full, though the stockholders may lose a heavy percentage. President Pope is a large stockholder and a director in the other two, and speaks for them also. The reason assigned for the failures is the over confidence and consequent liberal branching out of the Merchants' Trust Company, which recently absorbed the Memphis National Bank, taking over all of its liabilities without getting all of its directors, stockholders and depositors, who were among the conservative business men of Memphis. Afterward the trust company took over the American Savings Bank and an interest in the Mechanics' Savings Bank, without interesting the leading men of the two institutions. C. W. Schulte, President of the Mem. phis Clearing House, who is also President of the State National Bank of Memphis, said that every other financial institution here was amply able to take care of itself and ascribed the foregoing reasons as the cause of the present failures. The presidents and cashiers of other leading banks here were in line with the Clearing House President in their statements. At a late hour in the afternoon W. A. Percy, attorney for the Merchants' Trust Company, on behalf of the directors said: "All depositors will be paid in full. No one, save possibly the stockholders. of either institution will suffer any loss. I do not think the latter will lose more than twenty per cent. in the liqui-dation proceedings, if so much." It is possible that the corporations involved may be placed on a sound footing and reorganized with even less loss to the stockholders. At the close of business at night only $50,000 was in the vaults of the Merchants' Trust Company. No report was made as to the cash on hand of the other two banks.

4. January 6, 1906 Morris Tribune Morris, MN

Article from Morris Tribune, January 6, 1906

Click image to open full size in new tab

Article Text

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.

5. January 12, 1906 The Springdale News Springdale, AR

Article from The Springdale News, January 12, 1906

Click image to open full size in new tab

Article Text

dividends by the great Industrial combinations on Jan. 1 aggregating $150.000,000 the banks had been hoarding their reserves to such an extent that the interest rate on call money rose to 90 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 latter 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. capi Italized for $100,000,000, operates sev eral hundred elevators in Illinois, Iowa, Nebraska, Kansas, Minnesota and the Dakotas. The American Farmers' 1111 ion has an extensive membership in Texas, New Mexico, Nevada, Indian Territory and Oklahoma. A new name is to be chosen for the combined associations.