Mechanics National Bank - Nashville, TN

Bank Information

Episode Type: Run Only
Bank Type: national
Bank ID: 2200
Charter Number: 2200
Start Date: March 27, 1893
Location: Nashville, Tennessee (36.166, -86.784)

Metadata

Model: gpt-5-mini
Short Digest: b61ffe8b

Response Measures

Public signal of financial health

Description

Article (dated March 27, 1893) describes a panic in Nashville after the failure of the Bank of Commerce. Mechanics' National Bank experienced nervousness/withdrawals but remained open and was expected to resume normal business; no suspension or receivership for this bank is reported. Cause attributed to contagion from another local bank's failure.

Events (3)

1. October 31, 1874 Chartered

Source: historical_nic

2. January 13, 1880 Voluntary Liquidation

Source: historical_nic

3. March 27, 1893 Run

Cause: Local Banks
Cause Details: Nervousness and withdrawals triggered by the failure/assignment of the Bank of Commerce in Nashville.
Measures: Bank remained open; larger banks displayed currency and prominent citizens pledged support; no suspension invoked by Mechanics National Bank.
Newspaper Excerpt: It is thought that the Mechanics' National Bank will resume business as usual in a day or two as soon as the nervous feeling has abated.
Source: newspapers

Newspaper Articles (1)

1. March 28, 1893 The Morning News Savannah, GA

Article from The Morning News, March 28, 1893

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Article Text

A PANIC AT NASHVILLE. TWO MORE BANKS FORCED TO CLOSE THEIR DOORS. One of Them a Small Concern and the Other Took the Action Merely 88 a Precaution Against a Run - The Other Banks in the City Believed to be Able to Meet all Demands. NASHVILLE, TENN., March 27.-The Bank of Commerce failed to-day, while another bank, the Mechanics' Savings Bank, fearing a run that it would not be able to meet, took advantage of the standing rule and required depositors to give sixty days' notice of the withdrawal of deposits. It has been a squally day in Nashville, and but for the fact that the banks had time between Saturday and to-day to prepare themselves there might have been more trouble. With the exception of the Bank of Commerce, however, all the Nashville banks are perfectly solvent, but, of course, do not keep enough money on hand to pay off all depositors on a sudden demand. Since Saturday, however, the larger banks had secured from $100,000 to $500,000 each and to-day when their doors were opened great stacks of currency were piled up on the tellers' desks and in plain view inside the vaults. All banks are near College and Union streets, and this morning before 9 o'clock the pavements were crowded-mostly, however, by idlers. There were many people expecting to see a general run on all the banks, but in this they were disappointed. COLLAPSE OF THE COMMERCIAL All the banks opened for business except the Bank of Commerce, which at 10 o'clock posted a notice of assignment. This bank had about decided to make an assignment last week. Its statement is as follows: ASSETS. Notes discounted $76,000 Real estate and cash 21,700 Total $97,700 LIABILITIES. $27,500 Capital stock paid in 14,000 Deposits savings account 15,000 Deposits special account 19,000 General deposits Profit and loss 22,200 Total $97,700 The fact that it had not opened its doors increased the nervous feeling to some extent, and the directors of the Mechanic's Savings Bank decided that the best plan for them would be for them to require of depositors sixty days' notice of withdrawal, as provided in their rules, They, therefore, announced that this would be enforced. It is thought that the Mechanics' National Bank will resume business as usual in a day or two as soon as the nervous feeling has abated. LARGE DEPOSITORS NOT SCARED. With very few exceptions the people who drew their money from the other banks were small depositors. Those having large accounts were satisfied of their safety. and interviews to-night with all the leading bankers show that their friends have come to their rescue and that to-day's deposits are in excess of what was drawn out. At the American National Bank notice was displayed in the window that a dozen of the wealthiest men in Nashville, whose names were signed thereto, pledged their personal estates to secure all depositors. One of the signers to this was Gen. W. H. Jackson, the owner of the Belle Meade. The statement of the Commercial Bank, which failed Saturday, is as follows: ASSETS.