20972. Union Bank & Trust Company (Nashville, TN)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
trust company
Start Date
March 28, 1893
Location
Nashville, Tennessee (36.166, -86.784)

Metadata

Model
gpt-5-mini
Short Digest
b33beba6

Response Measures

Partial suspension

Other: Directors invoked state law to require 60-day notice from depositors (partial suspension).

Description

Articles (Mar 28, 1893) describe a panic in Nashville after the failure of the Commercial National Bank; the Union Bank & Trust officers saw a run imminent and directors resolved to invoke the state banking law permitting a 60-day notice for withdrawals (a partial suspension). There is no clear article saying Union Bank fully reopened later, so I mark the outcome as unsure.

Events (2)
1. March 28, 1893 Run
Cause
Local Banks
Cause Details
Run triggered by news of the failure of the Commercial National Bank in Nashville, which produced panic and raids on other banks.
Measures
Directors resolved to invoke the state banking law allowing banks to demand a 60-day notice from depositors before withdrawals.
Newspaper Excerpt
The officers soon saw that a run which they could not stand was imminent.
Source
newspapers
2. March 28, 1893 Suspension
Cause
Local Banks
Cause Details
Partial suspension of immediate withdrawals (invoking 60-day notice) in response to the run caused by the failure of Commercial National Bank.
Newspaper Excerpt
The directors resolved to take advantage of the state banking law, which gives banks organized under it the privilege to demand a 60-day notice from depositors before they can withdraw their deposits.
Source
newspapers

Newspaper Articles (4)
1. March 30, 1893 Connecticut Western News North Canaan, Salisbury, Canaan, CT
Article from Connecticut Western News, March 30, 1893

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Article Text

NASHVILLE'S PANIC. Thousands of Excited Citizens Almost Mob the Bank. NASHVILLE, March 28.-The streets in the vicinity of the banking houses of this city echoed all day the vociferations of a panic stricken throng. Never before were such scenes witnessed here. The failure of the Commercial National bank on Saturday afternoon did not become generally known until after dusk. Nothing else was talked about, and it was known to half the town that a raid would be made on the money piles of the various institutions that would make some of them tremble if not topple over into financial ruin. The First, Fourth, American National, Merchants, Mechanics Savings Bank and Trust company and the Union Bank and Trust company, all of College City. and the City Savings bank, the Capital City bank and the Nashville Safe Deposit Trust and Banking company, just around the corner of Cherry, on Union street, opened up their doors. It was rumored later that the Mechanic's had been caught in the commercial collapse. The officers soon saw that a run which they could not stand was imminent. The directors resolved to take advantage of the state banking law, which gives banks organized under it the privilege to demand a 60-day notice from itors before they can withdraw their deposits.

2. March 30, 1893 Freeland Tribune Freeland, PA
Article from Freeland Tribune, March 30, 1893

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Article Text

NASHVILLE'S PANIC. Thousands of Excited Citizens Almost Mob the Bank. NASHVILLE, March 28.-The streets in the vicinity of the banking houses of this city echoed all day the vociferations of a panic stricken throng. Never before were such scenes witnessed here. The failure of the Commercial National bank on Saturday afternoon did not become generally known until after dusk. Nothing else was talked about, and it was known to half the town that a raid would be made on the money piles of the various institutions that would make some of them tremble if not topple over into financial ruin. The First, Fourth, American National, Merchants, Mechanics 'Savings Bank and Trust company and the Union Bank and Trust company, all of College City. and the City Savings bank, the Capital City bank and the Nashville Safe Deposit Trust and Banking company, just around the corner of Cherry, on Union street, opened up their doors. It was rumored later that the Mechanic's had been caught in the commercial collapse. The officers soon saw that a run which they could not stand was imminent. The directors resolved to take advantage of the state banking law, which gives banks organized under it the privilege to demand a 60-day notice from depositors before they can withdraw their dc. posits.

3. April 6, 1893 The Monmouth Inquirer Freehold, NJ
Article from The Monmouth Inquirer, April 6, 1893

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Article Text

NASHVILLE'S PANIC. Thousands of Excited Citizens Almost Mob *the Bank. NASHVILLE, March 28. - -The streets in the vicinity of the banking houses of this city echoed all day the vociferations of a panic stricken throng. Never before were such scenes witnessed here. The failure of the Commercial National bank on Saturday afternoon did not become generally known until after dusk. Nothing else was talked about, and it was known to half the town that a raid would be made on the money piles of the various institutions that would make some of them tremble if not topple over into financial ruin. The First, Fourth, American National, Merchants, Mechanics Savings "Bank and Trust company and the Union Bank and Trust company, all of College City. and the City Savings bank, the Capital City bank and the Nashville Safe Deposit Trust and Banking company, just around the corner of Cherry, on Union street, opened up their doors. It was rumored later that the Mechanic's had been caught in the commercial collapse. The officers soon saw that a run which they could not stand was imminent. The directors resolved to take advantage of the state banking law, which gives banks organized under it the privilege to demand a 60-day notice from depositors before they can withdraw their de posits.

4. August 10, 1893 The Morning News Savannah, GA
Article from The Morning News, August 10, 1893

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Article Text

A NASHVILLE BANK CLOSES. Its Assets Three Times as Large as Its Deposits. Nashville, Tenn., Aug. 9.-The First National Bank of this city suspended after banking hours this afternoon. A statement has not yet been given cut. After the suspension of the First National this afternoon, the directors of the Fourth National had a meeting. Those present represented several millions of property, and signed a guarantee pledging themselves and their individual estates to the payment of all deposits. They further state that the bank is able to meet all of its obligations. The directors of the City Savings Bank had a meeting to-night and unanimously decided to suspend payment for sixty days. The suspension is caused by the stringency of the money market. The bank is considered solvent and will pay depositors and stockholders in full. Its deposits aggregate $40,707.90. Its assets are $151,499,92, 90 per cent. of which is good. The directors of the bank have personnally pledged themselves and their estates to the payment of all deposits in full. Edgar Jones, president of the Union Bank and Trust Company, says in an interview with a reporter that his bank will open as usual to-morrow. John M. Speery, president of the Merchants' National, in an interview, says his bank will also open to-morrow, as usual. THE OLDEST IN THE SOUTH. The First National was the oldest banking institution south of the -Ohio, having been established in 1863. It had a capital of $1,000,000 and a surplus fund and undivided profits of $100,000. The suspension is in no sense due to losses made by the bank It is solvent and will not only pay its creditors doMar for dollar, but its stockholders much more than par. Up to the failure of the Commercial National of Nashville, the First National had larger deposits than any bank in Nashville. Its deposits aggregated $2,000,000. At the close of business this afternoon its total deposits had fallen below $1,000,000. The bank examiner, Mr. Plumlee, who happened to be in the city, took immediate charge. If allowed, it is thought the bank will resume business in sixty days. The last statement, made July 15, 1893, gave the deposits, géneral and special, at the For $1,534,941.11. past few months there has been a steady draw from the bank by depositors, and to-day, being unable to realize on their securities in New York, the bank closed. The capital stock is $1,000,000 and the assets shown by the last statement $8,047,983.31. The news of the failure of the First National, coming as it did after banking hours, did not spread generally over the city until late this afternoon, and to-night it has been the general talk e in the clubs, hotels and on the streets. The officers and stockholders are among the leading men of the city-business world. It is conceded that the failure is a square one. Herman Juslin is president and John P. Williams, vice president, and W. H. Grantlad, cashier. While an uneasy feeling prevails, it is not believed that there will be much of a run on the other banks to-morrow.