20918. Mechanics Bank (Nashville, TN)

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: state
Start Date: March 27, 1893
Location: Nashville, Tennessee (36.166, -86.784)

Metadata

Model: gpt-5-mini
Short Digest: 31459984

Response Measures

Partial suspension

Description

Multiple contemporaneous newspaper accounts (dated March 27, 1893) report a small run on Mechanics Bank caused by curb‑stone loungers spreading fears. Directors invoked the 60‑day notice provision and suspended payments; most articles state the bank has assets in excess of liabilities and will probably resume in a few days. Some accounts are more dire (call it a 'close'), but primary consistent evidence indicates suspension with expectation of reopening, so I classify as run → suspension → reopening. President Lewis T. Baxter is reported to have made an assignment (likely a special assignment for benefit of creditors) mentioned in some pieces; no formal receivership is reported for Mechanics Bank in these articles.

Events (2)

1. March 27, 1893 Run

Cause: Rumor Or Misinformation
Cause Details: Curbstone loungers were predicting failures and spreading alarm leading depositors to withdraw funds.
Measures: Directors decided to take advantage of the law requiring sixty days' notice from depositors (effectively suspending payments).
Newspaper Excerpt: a small run was made on the First National... soon it was evident that a run was being made upon it
Source: newspapers

2. March 27, 1893 Suspension

Cause: Rumor Or Misinformation
Cause Details: Suspension enacted after a run driven by street rumors; articles state the bank has assets exceeding liabilities and suspended to protect creditors and stop withdrawals.
Newspaper Excerpt: the directors met and decided to take advantage of the law requiring sixty days' notice from depositors, and suspended payments
Source: newspapers

Newspaper Articles (7)

1. March 28, 1893 Daily Kennebec Journal Augusta, ME

Article from Daily Kennebec Journal, March 28, 1893

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y I NASHVILLE BANKS Experience a Little Rough Weather but the Storm Quickly Disappears. NASHVILLE, Tenn March 27.-Today there was some excitement on the streets where the banks are located, chiefly caused by loungers. who predicted the failure of the principal banks of the city. The business portion of the city was not agitated. t A small run was made on the First National, but the depositors got their money I so rapidly that they became convinced that their fright was an error and in nearly every instance re-deposited Two smaller banks, both doing business under state charters. had savings departI ments connected with them and upon the principal runs made. The bank of Commerce, with deposits amounting to about 850,000. suspended payment and made a general assignment. The directors of the Mechanics Bank deel led to take advantage of the law requir! ing 60 days' notice from depositors and sus1 pended payments. This bank will probably resume in . few days as soon as the restleas feeling disappears. The assets are in excess of the liabilities. ) All the other banks transacted busines I as usual and reported the deposits in excess ) of the withdrawals. The liabilities of the Bank of Commerce are 897.000: capital z stock 827,000. All the leading financial I and business men of the city think the , flurry over. As a result of the suspension , of the Mechanics bank, Lewes E. Baxter, president has as-igned. No other assignments are reported and none anticipated.

2. March 28, 1893 The Indianapolis Journal Indianapolis, IN

Article from The Indianapolis Journal, March 28, 1893

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of the quarrel that began when Mr. Voorhees received such prompt recognition at the White House. SMALL PANIC AT NASHVILLE. Carbstone Loungers Start Runs on the Banks -Two Small Ones Suspend Payments. NASHVILLE, Tenn.. March 27.-To-day there was some excitement on the streets where the banks are located. but the chief exoitement was caused by curbstone loung. ers, who were predicting the failure of the principal banks of the city, and whose conversation made doubting depositors somewhat uneasy. The business portion of the city was not at all agitated, and conducted busiLees as usual. At9 o'clock, the hour the banks open, quite a crowd had gathered at the corner of College and Union streets, in the vicinity of the banks, and when the doors of the banks were opened a small run was made on the First National. but the depositors got their money 60 rapidly that they became convinced that their fright was an error, and in nearly every instance redeposited. At the other large State and national banks' business went on as usual. In all of these banks the deposits during the day exceeded the withdrawals Two of the smaller banks, both doing business under State charters, at an early hour took advantage of the privilegee given them by the law, and required sixty days' notice of the withdrawal of deposits. Both of these banks had savings departments connected with them. and upon these two banks the principal runs were made. One of them. the Bank of Commerce, doing a small business with deposits amounting to about $50,000, suspended payments. though it might have availed itself of the eixty days' notice to depositore. This break is rather a bad one, but only email amounts. The Mechanics' Bank, another small State institution with a savings deposit department and having very many small creditors, opened its doors as usual, but soon it was evident that a run was being made upon it and the directors met and decided to take advantage of the law requiring sixty days' notice from depositors, and suspended payments. This bank will in all probability resume in a few days, as soon as the unquiet feeling disappears, as this bank has assets in excess of its liabilities, and only suspended for the benefit of all creditors. All the other banks transacted business as usual, and report deposits in excess of withdrawals. The feeling of uneasiness produced by the suspension, Saturday. of the Commercial National Bank has almost disappeared.

3. March 28, 1893 The Roanoke Times Roanoke, VA

Article from The Roanoke Times, March 28, 1893

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Two More Banks Close Their Doors and Other Failures Looked For. NASHVILLE, Tenn., March 27. - This city is in a state of panic and the streets are filled with of hundreds of excited citizens. In addition to the failure of the Commercial National Bank on Saturday two more closed their doors this morning. They are the Mechanics Bank with a capital of $500,000, and the Bank of Commerce, with a capital of $250,000. The greatest uneasiness prevails in financial circles as it is expected two other banks will be compelled to shut down. Over $300,000 are involved in the failure of the three banks mentioned and at least a dozen small banks in djacent town are in tem porary financial straits. The Bank of Commerce made an as. signment this morning, naming John T. Lellyett as assignee. This action was precipitated by the general appre. hersion of a run on the bank which the officers believed would be made. Deposits were not large, aggregating only $50,000, $15,000 of which was small deposits, ranging from $5 upward in the savings department. The president of the bank, J. H. Yarbrough, is not in the city. J. N. Brooks, cashier, said the suspension was due mainly to the failure of certain parties who were largely indebted to the bank to mee: their obligations. Brooks declined to state who the parties were.

4. March 28, 1893 St. Paul Daily Globe Saint Paul, MN

Article from St. Paul Daily Globe, March 28, 1893

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SUSPENDED PAYMENT Two Small Savings Banks at Nashville in Financial Difficulties. They Take Advantage of the Required Sixty Days' Notice. One of Them Will Probably Resume Business in a Few Days. All of the Other Banks Transacted Business as Usual. NASHVILLE. Tenn., March 27.-Today there was some excitement on the streets where the banks are located, but the chief excitement was caused by curbstone loungers, who were predicting the failure of the principal banks of the city, and whose conversation made doubtful depositors somewhat uneasy. The business portion of the city was not at all agitated, and conducted its business as usual. At 9 o'clock. the hour the banks open, quite a crowd gathered at the corner of College and Union streets, in the vicinity of the banks, and when the doors of the banks were opened a small run was made on the First National, but the depositors got their money so rapidly that they became convinced that their was an error. and in nearly every fright instance state and redeposited. At the other large national banks business went on as usual. In all of these banks the deposits during the day Exceeded the Withdrawals. Two the smaller doing of under banks, charters, both at business state an hour took privileges them by reearly given advantage the of law the the and withquired sixty days' notice of drawal of deposits. Both of these banks had savings departments connected with them. and upon these two banks the principal runs were made, one of them, the Bank of Commerce, doing a small business, with deposits amounting to about $50,000, suspended payments, though have of the to sixty it days might provided availed depositors, itself and made a under laws of all This a creditors. today the state general break for small the assignment is benefit amounts. rather bad one, but only for The Mechanics' bank. another small state institution with a savings department and having very many small creditors, opened its doors as usual, but soon it was evident that a run was being made upon it, and the directors met and decided to take advantage of the law requiring sixty days notice from depositors. and suspended payments. This bank will, in all probability. Resume in a Few Days, as soon as the disappears. as this has assets 111 excess of its for liabilities. bank unquiet and only feeling suspended All the benefit of all its creditors. the other banks transacted business as usual, and report deposits in excess of withdrawals. The feeling of uneasiness produced by the mercial there is no to peared, suspension and National bank Saturday has doubt almost of the that disap- Commorrow business will resuine its usual channels and the banks will have no further trouble. The officers of the Mechanics bank suspended are Lewis T. Baxter, president, and John Schardt, cashier. The officers of the Bank of Commerce assigned are J. H. Yarbrough, president, and J. N. Brooks. rashier. The liabilities of the Bank of Commerce are $97,000; capital stock, $27,500. The consensus of opinion of all the leading financial and business men of the city, is that the flurry is over and that the storm has expended its fury. As a result of the suspension of the Mechanies' the made a president, bank. Lewis special T. the assignment Baxter, bank for the benefit of and and none are other today Special are reported creditors. Bank Examiner No other assignments anticipated. J. M. Mcof has and is in city, Knight, Louisville, charge of the reached suspended the Commercial National bank.

5. March 28, 1893 The Morning Call San Francisco, CA

Article from The Morning Call, March 28, 1893

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BANK FAILURES. General Uneasiness Over the Nashville Panic. NASHVILLE, Tenn., March 27. - There was much excitement to-day on the streets where the banks were located. Considerable uneasiness had been felt as to the result of Saturday's developments, and when the banks opened a small run was made on the First National, but the depositors got their money so rapidly that they became convinced that their fright was an error, and in nearly every instance redeposited. At other large State and national banks business went on as usual. Two of the smaller banks, both doing business under State charters, took advantage early of the privileges given them by law and required sixty days' notice for the withdrawal of deposits. Both these banks had savings departments, and upon these two banks the principal runs were made. One of them, the Bank of Commerce, doing a small business, with deposits amounting to about $50,000, suspended payments and made a general assignment under the State law for the benefit of all creditors. This break is rather a bad one. Another small State institution, the Mechanics' Bank, with a savings department, and having many creditors, opened its doors as usual, but as soon as il was evident that a run was being made, the directors decided to take advantage of the law requiring sixty days' notice from depositors and suspended payments. This bank will, in all probability, resume in 8 few days, as it has assets in excess of Its liabilities, and only suspended for the benefit of all its creditors. The liabilities of the Bank of Commerce are $97,000; capital stock, $27,500. Lewis T. Baxter, the president, made a special assignment to-day for the benefit of the bank and his other creditors. No other 23signments are reported and none are anticipated.

6. April 1, 1893 Perrysburg Journal Perrysburg, OH

Article from Perrysburg Journal, April 1, 1893

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PANIC DOWN SOUTH. Intense Excitement in Nashville, Tenn.Three Banking Institutions Have Failed with a Total Involved of Over $3,000,000-More Failures Anticipated. NASHVILLE, Tenn., March 28.-Monday there was great excitement on the streets where the banks are located. At 9 o'clock, the hour the banks open, quite a crowd had gathered at the corner of College and Union streets, in the vicinity of the banks, and when the doors were opened a small run was made on the First national, but the depositors got their money so rapidly that they became convinced that their fright was an error and in nearly every instance redeposited. Two of the smaller banks, both doing business under state charters, atan early hour took advantage of the privileges given them by the law and required sixty days' notice of the withdrawal of deposits. Both of these banks had savings departments connected with them and upon these two banks the principal runs were made. One of them, the Bank of Commerce, doing a small business with deposits amounting to about $50,000, suspended payments, though it might have availed itself of the sixty days' notice from depositors. It made a general assignment under the state laws for the benefit of all creditors. This failure is a bad one. The Mechanics' bank, another state institution with a savings department and having many small creditors, opened its doors as usual, but soon it was evident that a run was being made upon it, and the directors met and decided to take advantage of the law requiring sixty days' notice from depositors and suspended payments. This bank will in all probability resume in a few days. The liabilities of the Bank of Commorce are $97,000; capital stock, $27, 000. As a result of the suspension of the Mechanics' bank Lewis T. Baxter, the president, made a special assignment Monday for the benefit of the bank and other creditors. The excitement growing out of the failure of the Commercial national bank in this city Saturday night continues to be intense. There are many rumors afloat and it is expected that there will be some startling developments when the affairs of the bank come to be inquired into by the official examiner. Criminal prosecution may follow. Other institutions of the city are thought to be involved in the collapse of the Commercial bank and that of Dobbins & Dazey, which was the primary cause of the troubles. More failures are apt to follow. Over $3,000,000 is involved in the failure of the three banks mentioned above, and at least a dozen small banks in adjacent towns are in temporary financial straits.

7. April 1, 1893 The Bottineau Pioneer Bottineau, ND

Article from The Bottineau Pioneer, April 1, 1893

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Nashville's Bank Flurry. Nashville, Tenn., March 28.-The financial panic was resumed here this morning, and hundreds of depositors withdrew their money, but in nearly every instance redeposited. as they saw that there was no cause for alarm. Two small banks, the Mechanics' and the Bank of Commerce, availed themselves of the sixtyday law. One, and probably both, will resume business. The excitement,to-night had subsided, and no more trouble feared.