20920. Mechanics' Savings Bank (Nashville, TN)

Bank Information

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

Metadata

Model: gpt-5-mini
Short Digest: 0e5705fc

Response Measures

None

Description

Mechanics' Savings Bank invoked its standing rule requiring 60 days' notice of withdrawals (a partial suspension) on 1893-03-27 fearing a run after the failure of the Commercial/Commercial National Bank. Contemporary reports state the bank reopened within a day or two (reports indicate it had resumed business by March 28). No clear depositor run on this bank is described in the articles — action was precautionary and later rescinded.

Events (2)

1. March 27, 1893 Suspension

Cause: Local Banks
Cause Details: Precautionary enforcement of 60-day withdrawal rule triggered by panic/apprehension following the failure of the Commercial (Commercial National) Bank in Nashville.
Newspaper Excerpt: the Mechanics' Savings Bank, fearing a run that it would not be able to meet, took advantage of a standing rule, and required depositors to give sixty days' notice of the withdrawal of deposits.
Source: newspapers

2. March 28, 1893 Reopening

Newspaper Excerpt: All Quiet at Nashville... The Mechanics' Savings bank opened its doors again and received deposits. The rule requiring 60 days' notice will probably be rescinded in two or three days.
Source: newspapers

Newspaper Articles (13)

1. March 28, 1893 The Times Richmond, VA

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A PANIC IN NASHVILLE. TWO MORE BANKS FAIL AND TWO MORE EXPECTED TO SHUT DOWN. Besides the Commercial, the Mechanics' Savings Bank and the Bank of Cominerce Suspend-The Cause Assigned. NASHVILLE, TENN., March 27.-The Bank of Commerce failed to-day, while a other bank, the Mechanics' Savings Bank, fearing a run that it would not be able to meet, took advantage of a 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 night and this morning to prepare themselves, there might have been more trouble. With the exception of the Bank of Commerce, however, all the Nashville banks are perfectly silvent, but, of course, do not keep money on hand to pay off all depositors on sudden demand. Since Saturday, however, the larger banks had secured from one hundred thousand to a half million dollars each. To-day when the doors were opened great stacks of currency were piled up on the teller'r desk and in a plain view inside the vaults. All the Nashville banks are located near College and Union streets, and this morning before 9 o'clock the pavements were crowded mostly, however, by idlers. There were many people itching to see a general run, but they were disappointed. 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 $19,000; profit and loss. $22,000; total, $97,000. as follows:Assets-Notes discounted,$76,000 Liabilities: Capital stock paid in, $27,500; deposits, savings acount, $14,000; deposits, special account, $15,000; general deposits real estate and cash, $21,700; total, $97,700. The fact that it did not open its doors increased the nervous feeling to some extent, and the Mechanics' Saving's Bank directors decided that the best plan for them would be to require depositors to give sixty days' notice of withdrawal as provided in their rules. They therefore announced this would be enforced. It is thought the Mechanics' Bank will resume business as usual in a day or two, as soon as the nervous feeling has been entirely abated. With very few exceptions the people who drew their money from the other were small depositors. Those having large accounts were satisfied of their safety, and interviews to-night with all the leading bankers show their friends have come to the rescue, and that today's deposits are in excess of what was drawn out. At the American National Bank a 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 General W. H. Jackson, owner of Belle Mead. The statement of the Commercial Bank, which failed Saturday, is as follows: Assets-Loans and discounts, $1,600,000. Cash and cash items, $144,000. Due from reserve agents, $2,000,000. Due from other banks, $225,000. Stocks, bonds and other securities, $125,000. Total, $2,294,000. Liabilities, individual deposits, $685,000. Certificates of deposits, $93,000. Bank deposits, $550,000. Rediscounts, $150,000; bills payable, $2,000. Total, $1,678,000. Capital stock, $500,000; surplus, $100,000; undivided profits, $95,000; total, $695,000.

2. March 28, 1893 Richmond Dispatch Richmond, VA

Article from Richmond Dispatch, March 28, 1893

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NASHVILLE EXCITED. ANOTHER BANK FAILURE MAKES A GENERAL RUN IMMINENT. Timely Precautions, However, Prevent Disaster-A Savings Bank Enforces the Sixty-Day Rule-Statements. (By telegraph to the Dispatch.1 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 a standing rule and required depositors to give sixty days' notice of withdrawal of deposits. It has been a squally day in Nashville, and but for the fact that the banks had time between Saturday night and this morning 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, though of course they do not keep enough money on hand to pay off all depositors on sudden demand. Since Saturday, however, the larger banks had secured from $100,000 to $500,000 each, and to-day. when the doors were opened. great stacks of currency were piled up on the tellers' desks and in plain view inside the vaults. EXCITEMENT AMONG THE PEOPLE. All the Nashville banks are located 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 890 a general run on all the banks, but in this they were disappointed. 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, $07,700. Liabilities-Capital stock paid in, $27,500; deposits. savings account. $14,000; deposits. special account, $15,000; general deposits, $19,000; profit and loss, $22,200; total, $97,700. THE MECHANICS' BANK. The fact that it had not opened its doors increased the nervous feeling to some tent. and the Mechanics Savings-Bank directors decided that the best plan for them would be to require depositors to give sixty days notice of withdrawal, as provided in their rules. They therefore announced that this would be done. It is thought that the Mechanics' Bank will resume business as usual in a day or two. as soon as the nervous feeling has been entirely abated. 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 a notico was dis. played 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 General W. H. Jackson, owner of Belle Meade. COMMERCIAL BANK STATEMENT. The statement of the Commercial Bank, which failed Saturday, is as follows: Assets, loans, and discounts. $1,600,000; cash and cash items. $144,000; due from reserve agents. $200,000; due from other banks, $225,000; stocks. bonds, and other securities, $125,000-total, $2,294,000. Lia. bilities-Individual deposits, $685,000; certificates of deposit. $93,000; bank deposits, $550,000 : re-discounts, $150.000; bills pavable. $200,000 total, $1,678,000. Capital stock, $500,000: surplus, $100,000; undivided profits, $95,000-total $695,000.

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

Article from The Morning News, March 28, 1893

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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.

4. March 28, 1893 The Providence News Providence, RI

Article from The Providence News, March 28, 1893

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THREE BANKS GO UNDER. Citizens of Nashville Are Greatly Excited Over a. Financial Panic. NASHVILLE, March 28.-This city is in a state of panic and the streets are filled with hundreds of excited citizens. In addition to the failure of the First Commermercial National bank on Saturday, two more banks closed their doors yesterday. They are the Mechanics' Savings 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, and it is expected two other banks will be compelled to shut down. 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.

5. March 28, 1893 Evening Star Washington, DC

Article from Evening Star, March 28, 1893

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CLOSED ITS DOORS. Suspension of the Bank of Commerce at Nashville. The Bank of Commerce of Nashville failed yesterday, 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 withdrawal of deposits. It was a squally day in Nashville and but for the fact that the banks had time between Saturday night and yesterday morning to prepare themselves there might ha ve been more trouble. With the exception of the Bank of Commerce, however, the Nashville ba nks are perfectly solvent. but, of course, do not keep enough money on hand to pay off all depositors on sudden demand. Since Saturday, however, the larger banks had secured from one hundred thousand to a half million dollars each and yesterday when the doors were opened great stacks of currency were piled up on the teller's desks or in plain view inside the vaults. All the Nashville banks are located near College and Union streets. and yesterday morning bef ore 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. 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: Capital stock paid in, $27,500: deposits, savings account, 814,000; deposite. special account, $15,000; general deposits, $19,000; 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 Mechanics Savings Banks directors decided that the best plan for them would be to require depositors to give sixty days notice of withdrawal as provided in their rules. They therefore announced that this would be enforced. It is thought that the Mechanics' Bank will resume business as usual in a day or two, as soon as the nervous feeling has been entirely abated. 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 with all the leading bankers show that their friends have come to their rescue. and that the deposits are in excess of what was drawn out. At the American National Bank a 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. owner of Belle Meade. The statement of the Commercial Bank, which failed Saturday. is as follows: Assets, $2,294.000; liabilities. $695,000. Over $3,000000 are involved in the failure of the banks mentioned above. and at least a dozen small banks in adjacent towns are in temporary financial straits.

6. March 30, 1893 The State Republican Jefferson City, MO

Article from The State Republican, March 30, 1893

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A SQUALLY TIME. Nashville, Tenn., Experiences a Panicky Sensation Consequent Upon the Failure of the Bank of Commerce-Advantage Taken of the Notice Rule to Prevent is Ran on the Mechanics' Savings Bank. NASHVILLE, Tenn March 27.-The Bank of Commerce failed yesterday, while another bank, the Mechanics' cavings bank, fearing a run that it would be unable to meet, took advan+ tage of a standing rule and required depositors to give sixty days' notice of withdrawal of deposits. It has been a squally day in Nashville, and but for the fact that the banks had the time between Saturday night and this morning 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, don't keep enough money on hand to pay off all depositors on sudden demands. Since Saturday, however. the larger banks have secured from $100,000 to $300,000 each. and to-day when the doors were opened great stacks of currency were piled up on the teller's desks and in plain view inside the vaults. All the Nashville banks are located 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. All the banks opened for business exeept. 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. It's statement is as follows: ASSETS. $76,000 Notes discounted

7. March 30, 1893 Wood County Reporter Wisconsin Rapids, WI

Article from Wood County Reporter, March 30, 1893

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TWO MORE BANKS FAIL. Great Excitement Caused By Further Financial Crashes at Nashville. NASHVILLE, Tenn.. March 27.-This city is in a state of panic and the streets are filled with hundreds of excited citizens. Following the faiure of the Commercial National Bank on Saturday, two more banks closed their doors this morning. They are the Mechanies' Savings 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 that two other banks will be compelled to shut down before the close of business hours this afternoon. 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.

8. March 30, 1893 Goldsboro Weekly Argus Goldsboro, NC

Article from Goldsboro Weekly Argus, March 30, 1893

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Three Banks Fail. NASHVILLE, March 27.- - The Bank of Commerce made an ass signment this morning, naming John T. Lellyett as assignee. This action was precipitated by a general apprehension of a run on the bank, which the officers believed would be made. The 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, Mr. J. N. Brooks, cashier, said the sus. pension was due mainly to the failure of certain parties who are largely indebted to the bank to meet their obligations. Brooks declined to state who the parties were. The city is in a state of panic and the streets are filled with hundreds of excited citizens. In addition to the failure of the Commercial National Bank on Saturdav two more banks closed their doors this morning. They are the Mechanics' Savings 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. Three million dollars are involved in the failure of the three banks men. tioned above, and at least a dozen small banks in adjacent towns are in temporary financial straits.

9. March 30, 1893 The Western Sentinel Winston-Salem, NC

Article from The Western Sentinel, March 30, 1893

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BIG PANIC IN NASHVILLE. Three Bank Failures Since Last Saturday Morning. MORE THAN $3,000,000 INVOLVED. The Commercial National Bank Closed its Doors Last Saturday-Yesterday the Mechanics' Sayings Bank and the Bank of Commerce Followed Suit-Other Failures Threatened. NASHVILLE, Tenn., March 27.This city is in a state of panic and the streets are filled with hundreds-of excited citizens. In addition to the failure of the Commercial National Bank on Saturday, two more banks have closed their doors. They are the Mechanics' Savings 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 that two other banks will be compelled to shut down. Over $3,000,000 are involved in the failure of the three banks mentioned above. At least a dozen small banks in adjacent towns are in temporary financial straits. NASHVILLE, Tenn., March 27.-The Bank of Commerce made an assignment this morning, naming John T. Lellyett, as assignee. This action was precipitated by a general apprehension of a run on the bank which the officers believed would be made. The deposits are not large, aggregating only $50,000, $15,000 of which was in small deposits, ranging from $5 up. ward in the savings department. The president of the bank, J. H. Yarborough, is not in the city. Mr. J: N. Brooks, the cashier, said the suspension was due mainly to the failure of certain parties, who are largely indebted to the bank, to meet their obligations. Mr. Brooks de clines to state who the parties were.

10. March 31, 1893 The Goodland Republic Goodland, KS

Article from The Goodland Republic, March 31, 1893

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All Quiet at Nashville. NASHVILLE, March 39.-Money matters were in good shape Tuesday and all traces of Monday's panic had disappeared. About the usual business was transacted, and confidence seemed to be restored. The Mechanics' Savings bank opened its doors again and received deposits. The rule requiring 60 days' notice will probably be rescinded in two or three days. Leads T. Baxter resigned the presidency and J. M. Merriwither was elected president.

11. April 6, 1893 Goldsboro Weekly Argus Goldsboro, NC

Article from Goldsboro Weekly Argus, April 6, 1893

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Three Banks Fail. NA2HVILLE, March 27.-The Bank of Commerce made an ass signment this morning, naming John T. Lellyett as assignee. This action was precipitated by a general apprehension of a run on the bank, which the officers believed would be made. The deposits were not large, aggregating only $50,000 $15,000 of which was small de= posits, ranging from $5 upward in the savings department. The President of the bank, J. H. Yar~ brough, is not in the city, Mr. J. N. Brooke, cashier, said the sus. pension was due mainly to the failure of certain parties who are largely indebted to the bank to meet their obligations. Brooks declined to state who the parties were. The city is in a state of panic and the streets are filled with hundreds of excited citizens. In addition to the failure of the Commercial National Bank on Saturday two more banks closed their doors this morning. They are the Mechanics' Savings 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. Three million dollars are involved in the failure of the three banks men. tioned above, and at least a dozen small banks in adjacent towns are in temporary financial straits.

12. April 7, 1893 Hot Springs Weekly Star Hot Springs, SD

Article from Hot Springs Weekly Star, April 7, 1893

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GENERAL DOMESTIC NEWS The trial of the armored cruiser New York was an unprecedented success, the vessel breaking the record of first trials and developing the fact that she is the fastest vessel of her class afloat. The New York Times has been sold by the Jones-Morgan interests to a syndicate said to be headed by Chas. R. Flint. Considerable life insurance money appears to have gone into the purchase. The price paid is reported to be $950,000. The sale includes only the newspaper plant. Nashville, Tenn.. is in a state of panic, and the streets are filled with hundreds of excited citizens. In addition to the failure of the Commercial National Bank, for $260,000. two more banks have closed their doors. They are the Mechanics' Savings Bank, with a capital of $500,000, and the Bank of Commerce, with a capital of $250,000. A SO far unaccounted-for phenomenon was seen in the western sky at San Francisco and as far south as San Diego. It had the appearance of a large electric light, but flashed, flickered. changed colors -one moment being brilliant red, another white. then green. then blue -moving slowly from north to south. then gradually sank below the hills. A bank robbery. partaking of the daring shown at the famous Coffeyville affair last October. was enacted at Caney, Kan. The only thing missing to make it more closely resemble the robbery in which the Daltons took part. was that nobody was hurt. The bandits got $4,000, and a good start on their pursuers and perhaps will never be captured. Caney is a small town close to the Indian territory linc. O. W. Potter, the millionaire iron manufacturer who was sued by Ernest W. Dunnavant. an ex-newsboy who claimed $100,000 because, as he alleges, Potter had him railroaded to the penitentiary to keep him away from Gertrude W. Potter, the daughter of the millionaire, has broken his silence on the ca c. He denies that he had anything whatever to do with the prosecution of Dunnavant.

13. April 25, 1893 The Progressive Farmer Raleigh, Winston-Salem, Winston, NC

Article from The Progressive Farmer, April 25, 1893

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N. R. P. A. EDITORIAL NOTES President Butler will speak at Tarheel, April 28th, Elizabethtown, April 29th. Don't fail to hear him. Bro. Cyrus Thompson. State Alli ance Lecturer, will have several appointments in Wake and Johnston counties after the 10th of May. *** We understand that the last legislature made it unlawful to sell pistols, bowie knives, cartridges, etc., to minors. Cigarettes are also included. *** Still more prosperity. A receiver has been appointed for the Alabama National bank at Mobile. The second Australian bank failure amounts to $65,000,000. Still the prosperity goes on. The Mechanics' Savings Bank, of Nashville, assigned on the 16th. This is the fourth bank that has gone under there in the past three weeks The Governor of South Carolina is now in Kentucky laying in a supply of "snake bite medicine." When he gets home again, he will say to the Governor of North Carolina: "It is a long time," etc. *** The sentiment in favor of the free coinage of silver is growing even in England. In a recent test vote in the House of Commons, the silver vote amounted to 148, an increase since 1890 of more than 200 per cent. *** When writing to the State Business Agent or Secretary-Treasurer, sending money or about other matters, enclose your subscription or renewal for THE PROGRESSIVE FARMER and it will be turned over to us promptly. *** An Australian bank failed the other day with liabilities amounting to $40,000,000. Great prosperity must be getting in its work over there. Yet the daily papers declare that no reform is needed. "Nero fiddled while Rome burned." *** A cotton mill to cost $700,000 will be built in Columbia. That is all right. We want to see hundreds of cotton mills built, and wish them prosperity, but at the same time we want to see the farmers getting fair prices for raising the cotton. *** Rev. F. L. Reid, editor of the Raleigh Christian Advocate, has been selected to fill the place of Dr. Dixon as President of the Greensboro Female College. Doubtless the College will prosper under his management, and its high character be fully sustained. Cleveland claims that free coinage would mean more money and more money means panic and disaster. Then why not burn up all the money and allow the country to enjoy a little whiff of prosperity? Cleveland is the champion heavy weight prevaricator of America. *** A week or two ago we mentioned the fact that Sterling Morton, the new Secretary of Agriculture, claims that he raisea 1,500 bushels of corn on twenty acres and made fifty campaign specches the same summer. We expressed the opinion then that if he didn't make a better Secretary than Jerry Rusk, ho would to be a bigger