22735. Merchants Exchange Bank (Milwaukee, WI)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
July 22, 1893
Location
Milwaukee, Wisconsin (43.039, -87.906)

Metadata

Model
gpt-5-mini
Short Digest
55bed70f

Response Measures

Accommodated withdrawals, Public signal of financial health

Description

Multiple articles (Jul 22–23, 1893) report a heavy run on the Merchants' Exchange Bank in Milwaukee triggered by the failure/suspension of the Milwaukee National and South Side Savings banks. The Merchants' Exchange paid out freely and the run subsided after stockholder/leading-citizen guarantees; no suspension or closure of the Merchants' Exchange is reported, so this is classified as run_only. Bank type not specified in articles.

Events (1)
1. July 22, 1893 Run
Cause
Local Banks
Cause Details
Run was sparked by the Milwaukee National Bank failing to open and the South Side Savings Bank closing, causing runs on leading Milwaukee banks including the Merchants' Exchange.
Measures
Posted guarantee signed by leading citizens/stockholders which helped subside the run; paid out money freely and officers expressed confidence in meeting demands.
Newspaper Excerpt
The run on the Merchants' Exchange, which was the heaviest, is subsiding, consequent of a guarantee notice of the leading citizens and other banks.
Source
newspapers

Newspaper Articles (10)
1. July 22, 1893 Asheville Daily Citizen Asheville, NC
Article from Asheville Daily Citizen, July 22, 1893

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BANK TROUBLES. The Southside Savings bank, Milwaukee, Wis., did not open its doors this morning, and there was a heavy run on the German-American and the Merchant's Exchange banks. The Milwaukee National bank also closed its doors. The Kentucky National bank of Louisville, Ky., closed its doors this morning. This bank's last statement showed $190,000 to the credit of the government. The State National bank of Vernon, Tex., has closed its doors. Every cent of money was paid out except one ten cent piece before the doors closed. The private banking house of J. and L. W. Galbraith, Lampasas, Tex., failed to open its doors yesterday. Liabilities, $60,000; assets, $120,000. The Citizen's bank of Jellico, Tenn., the only banking institution in that place failed to open for business yesterday. The First National bank of Anthony, Kas., closed its doors yesterday. Assets $154,000; liabilities $50,000. The Union bank of Greeley. Col., made an assignment yesterday.

2. July 22, 1893 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, July 22, 1893

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The Milwaukee Panic. MILWAUKEE, July 22.-The Milwaukee National bank failed to open its doors this morning. A run is now in progress on all the leading banks of the city. The report of the Milwaukee Na. tional bank on July 12th showed Resources, $1,965,386; liabilities-deposits, $723,995; due other banks, $196,910; other liabilities, $445,048; capital stock, a quarter of a million; surplus a quarter of a million; undivided profits, $99,489. THE SOUTH SIDE SAVINGS BANK. The South Side Savings bank closed its doorsat 10:40 o'clock. The report made on the first Wednesday this month showed: Resources, $1,158,965. Liabilities-due depositors, $1,021,465; due others, $25,000; capital stock, $100,000; undivided profits, $12,500. The situation seems better this afternoon. The run on the Merchant's exchange which was the heaviest, is subsiding, consequent of a guarantee notice of the leading citizens and other banks. The run was heavy in the Second Ward National and which has mostly small German depositors. But it has the backing of big brewers and no damage is apprehended. President Noyes of the Milwaukee National has given a statement for publication in which the bank 18 shown to be perfectly solvent with assets of half a million above the liabilities but in the present condition of strained affairs it was thought best to close the doors.

3. July 22, 1893 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, July 22, 1893

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crushed and burned in a horrible manner and was dead when extricated. Among the failures reported to-day are the Citizens' Bank of Jellico, Tenn; the First National Bank of Anthony, Kon.; the Milwaukee National Bank and South Savings Bank of Milwaukee: the Union Bank of Greeley, Col ; the private banking house of J. and L. Galbraith at Lampasas, Tex.; the State National Bank of Knoxville, Tenn.; the Kentucky National Bank of Louisville; and the State National Bank of Vernon, T.x. There is a heavy run on the German American and Merchants' Exchange Banks of Milwankee. At Shooting Park on the outskirts of Milwaukee, Wis., two thousand five hundred turners from all parts of the United States c ngregated yesterday, and the twenty-sixth annual bundesturufest WAS inaugurated. A duel, that resulted fatally to both the participants, took place in the outskirts of Victoria. Mex., on Thursday between a young law student and a young business man. The quarrel was over a young woman. Weather permitting Edw. Hanlan and Jacob Gaudaur will row at Orillia, Ont., this afternoon for the championship and a stake of $2,000.

4. July 23, 1893 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, July 23, 1893

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$286,012.46; due creditors on time, $735,452; due others not included under above holdings, $25,000; total, $1,158,965.17. G. C. Trumpff was president of the Southside Savings Bank and J. B. Koetting cashier. Runs which started on all the banks early in the day were still in progress this afternoon. The crowds at several of the banks had increased in consequence of the spread of the news that the Southside Savings Bank and Mil waukee National Bank had failed. Therun on the Merchants' Exchange Bank was probably the heaviest, but the crowd at the Second Ward Bank was not so large. The Merchants' Exchange Bank paid out money freely, and its officers said they were confident they would be able to meet every demand. The depositors in the Second Ward Bank are mainly German working people, whoseemed to have become panio-stricken, despite the fact that the bank 18 backed by wealthy brewers, who have given a personal guarantee for everything in the bank. The air was full of rumors of failures and impending failures in mercantile circles, but up to noon no suspensions had occurred. President Trumpff, of the South-side Savings Bank. said depositors had been making very large withdrawals during the past month. while collections had been impossible. The officials and directors decided that they could do business no longer under the circumstances and concluded that in the interests of the patrons and themselves it would be better to suspend without further delay. While they hope to be able to resume after the storm has blown over, they are not able to state anything definite. The closing of the Milwaukee National Bank was a surprise even to some of the stockholders. J. M. Pereles, who owns a block of the stock. says there 18 no reason why the bank should have closed except that the officers vereafraid to stand a run. A statement a few days ago showed that the bank had assets in excess of liabilities amounting to between $500,000 and $600,000. People who were not posted could not believe that the bank, which was one of the oldest in the city. had failed and scores of people walked into the entrance, read the brief notice announcing the bank's suspension, and walked out again. The run on the Merchants' Exchange Bank began subsiding later in consequence of the posting of a guarantee signed by Charles Pfister, the Vogels, John Black, Julius Gall and other wealthy stockholders. A repetition of the guarantee, made at the time of the Plankinton Bank tailare, by Captain Pabst and other brewers, will doubtlees be made at the Second-ward Savings Bank. Bernard and Jacob Gross, comprising the firm of Gross Brothers, soap manufacturers. have confessed judgment in the sum of $21,014. on notes made April 30. 1892, and May 18,1892, in favor of Leopold Gross.

5. July 23, 1893 The Morning News Savannah, GA
Article from The Morning News, July 23, 1893

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MILWAUKEE'S BANKS. A Couple of Failures and a Heavy Run on Others. Milwaukee, Wis., July 22.-Reports sent out from this city to the effect that the German American Bank had succumbed to a run was without foundation. The German American is exceptionally sound and it has experienced no run whatever. It could not be better prepared than it is to meet a run. The false report concerning it was due to the failure of another southside bank. The Milwaukee National bank closed its doors this morning, The South Side Savings bank did not open its doors this morning. There was a heavy run on the German American and Merchants' Exchange banks.

6. July 23, 1893 The Morning Call San Francisco, CA
Article from The Morning Call, July 23, 1893

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AND LOUISVILLE. MILWAUKEE A National Bank Fails in Each of These Cities. MILWAUKEE, July 22.-The Milwaukee National Bank failed to open its doors this morning. The report of the bank made July 12 shows the following: Resources, $1,965,386; liabilities. deposits, $723,998; due other banks, $196,910: other liabilities, $445,048; capital stock, $250.000; surplus, $250,000; undivided profits, $99,439. When it became known that the Milwaukee National had suspended a run was inaugurated on all the leading banks of the city. The Southside Savings was unable to stand the strain and closed its doors at 10:30 A. M. The report of this bank, made the first Wednesdav in this month, showed: Resources, $1,158,965; liabilities due depositors $1,021,465, due others $25,000; capital stock, $100,000; undivided profits, $12,500. The situation changed for the better as the day wore on. The run on the Merchants' Exchange, which was the heaviest, subsided in consequence of the posting of a guarantee notice by the leading citizens. The other bank where the run was heavy was the Second Ward National, in which were mostly small German depositors; but it has the backing of the big brewers, and no danger is apprehended. President Noyes of the Milwaukee National has given a statement for publication, in which he says the bank is perfectly solvent. with assets of $500,000 above liabilities, but in the present strained condition of affairs it was thought best to close the doors. LOUISVILLE, Ky., July 22.-The Kentucky National Bank, capital $1,000,000. has failed. There is no statement and no excitement. The other banks are considered all right. It is thought the bank will be able to resume shortly. The bank is a Government repository. In the statement published July 16 Governmen: deposits were placed at $191,731; deposits of United States disbursing officers, $138,268; cash on hand, over $85,000; deposits subject to check. $311,695; loans and discounts, $1.719,966. There was no excitement and no one would have suspected that a bank had closed up but for the crowd of loafers on the sidewalk. The suspension has been expected, as the bank has a large amount of paper, which, though gilt-edged, could not be realized on. President Fetter said to an Associated Press representative that he had full confidence in the solvency of the bank, and believed that business would be resumed as soon as an examination had been made by the Bank Examiner and the bank's condition passed upon by the Comptroller. KNOXVILLE, Tenn., July 22.-The State National Bank failed this morning. The notice on the door says: "The bank is closed for liquidation. The depositors will be paid in full." The cause of the suspension is the withdrawal of $20,000 yesterday. Last night the other banks offered $40,000 assistance, but it was not accepted. The run began at the opening

7. July 23, 1893 New-York Tribune New York, NY
Article from New-York Tribune, July 23, 1893

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MILWAUKEE STILL EXCITED. TWO MORE BANKS CLOSED AND RUNS MADE ON MANY OTHERS GENERAL SURPRISE AT THE SUPPENSION OF THE MILWAUKEE NATIONAL-RUNS ON TWO INSTITUTIONS CHECKED BY STOCKHOLDER GUARANTEES. Milwaukee, July 22.-The Milwaukee National Bank failed to open its doors this morning. The South Side Savings Balik failed at 10:30°a. m. Runs, which started on all the banks early in the day, were still in progress this afternoon. The crowds at several of the banks had increased in consequence of the spread of the news that the South Side Savings Bank and Milwaukee National Bank had failed. The run on the Merchants' Exchange Bank was probably the heaviest, but the crowd at the Second Ward Bank was nearly as large. The Merchants Exchange Bank paid out money freely. and its officers said they were confident that they would be able to meet every demand. The depositors in the Second Bank are mainly German working people, who seem to have become panic-stricken, despite the fact that the bank is backed by Milwaukee's wealthy brewers, who have given a personal guarantee for everything in, the bank. The run on the Merchants' Exchange Bank subsided later, in consequence of the posting of a guarantee signed by Charles Pfister, the Vogels, John Black, Julius Goll and other wealthy stockholders. The closing of the Milwaukee National Bank was a surprise even to some of the stockholders. J. M. Pereles, who owns a block of its stock, says there is no reason why the bank should have closed except that the officers were afraid to stand a run. A statement a few days ago showed that the bank had assets in excess of the liabilities amounting to between $500,000 and $600,000. People who were not posted could not believe that the bank, which was one of the oldest in the city, had failed, and scores of men walked into the entrance, read the brief notice announcing the bank's suspension and walked out again. Judge Noyes, president of the Milwaukee National Bank, has given out the following statement for publication: This bank I considered perfectly solvent. It has $500,000 assets above liabilities. In ordinary tinics it would pay all depositors in full within three months, leaving a surplus of 200 cents on the dollar for distribution among the stockholders. The reason for closing to-day is the one that has been so much repeated in the last sixty days, and the public know it without being told. The shrinkage and withdrawal of deposits and the inability of customers to meet their obligations to the bank led the directors to the conclusion that it is for the best interest of all concerned to close the doors at this time. Fortunately deposits in this bank are such that no one will be seriously injured by delay in obtaining his money. A meeting of the stockholders will doubtless be called soon to vote on the question of a resumption of business or of going into voluntary liquidation. The Controller of the Currency has been notified of the situation. The officers of the South Side Savings Bank are: President, G. A. Trumpff: cashier, J. B. Koetting. They each hold $50,000 of stock in the bank, and are the only stockholders. The semi-annual statement made on July 1 places the liabilities at $1,158,965.17. Of this the sum of $286,012 46 was due to depositors on demand, and $735,452 on time. There was a run on this bank during the flurry in June, at which Tme a large number of depositors gave notice of the proposed withdrawal of their money at the end of thirty days. President Trumpit said depositors had been making large withdrawals during the last month, while collections had been impossible. The officials and directors decided that they could do business no longer under the

8. July 23, 1893 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, July 23, 1893

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MILWAUKEE TROUBLES, The Milwaukee National Fails to Open Its Doors. MILWAUKEE, July 22.-The Milwaukee National bank failed to open its doors this morning. A run is now in progress on all the leading banks of the city. The report of the Milwaukee National bank on July 12 showed: Resourcee, $1,965,386; liabilities-deposits, $723,998; due other hanks, $196,910; other liabilities, $445,048; capital stock, $250,000; surplus, $250,000; undivided profits, $99,439. The South Side Savings bank closed its doors at 10:40 o'clock. The report made on the first Wednesday of this month showed: Resources, $1,158,965. Liabilities, due depositors, $1,021,465; due others, $25,000; capital stock, $100,000; undivided profits, $12,500. The situation seems better this afternoon. The run on the Merchant's exchange, which was the heaviest, is subsiding, consequent of a guarantee notice of the leading citizens and other banks. The run was heavy on the Second Ward National, which has mostly small German depositors. But it has the backing of big brewers and no damage is apprehended. President Noyes of the Milwaukee National has given a statement for publication in which the bank is shown to be perfectly solvent with assets of half a million above the liabilities, but in the present condition of strained affairs it was thought best to close the doors.

9. July 23, 1893 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, July 23, 1893

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Sundry Banks Suspend. [By telegraph to the Dispatch.] MEMPHIS, TENN., July 22.-The Citizens' Bank of Jellico, Tenn., the only banking institution in that place, failed to open for business yesterday. No figures known. GREELEY, CoL., July 22.-The Union Bank made an assignment yesterdav. It 18 thought the step was voluntarily taken to avoid a contingency that might arise should some creditor take advantage of the attachment law. The bank is perfectly solvent and not a depositor will lose a dollar. VERNON, TEX., July 22.-The State National Bank of Vernon closed its doors yesterday. Every cent of money was paid out, except ten cents, before the doors were closed. The failure was due to inability to realize on securities. The directors state that depositors will be paid in full. LOUISVILLE, Kr., July 22.-The Kentucky National Bank, this city, closed its doors this morning. Capital stock $1,000,000. paid up. This bank is also a government depository and its last statement showed $190,000 to the credit of the government. The loans and discounts outstanding amounted to $1,719,966, and the surplus was $108,500. MILWAUKEE, WIS., July 22.-The SouthSide Savings Bank did not open its doors this morning. There is a heavy run on the German-American and Merchant's Exchange banks. KNOXVILLE, TENN., July 22.-The State National Bank closed this morning atter opening four minutes. A notice was posted on the door saying: This bank has closed for liquidation. Depositors will be paid in full." MILWAUKEE, WIS., July 22.-The Milwaukee National Bank closed its doors this morning. LAMPASAS, TEX.. July 22.-The private banking-house of J. & L. W. Galbraith failed to open its doors yesterday having made an assignment to J. I. Campbell. Liabilities $60,000; assets. $120,000. A run on the First National Bank started, but it was fortunately in a position to withstand all demands. The depositors in Galbraith's Bank will be paid in full. TOPEKA, KAN., July 22.-The First National Bank of Anthony closed its doors yesterday. Assets, $154,000; liabilities, $50,000. RUSSELL, KAN., July 22.-The First National Bank, of this place, closed this afternoon and was taken possession ot by C. M. Sawyer on the order of the Comptroller of the Currency. No statement is made.

10. July 23, 1893 Fort Worth Gazette Fort Worth, TX
Article from Fort Worth Gazette, July 23, 1893

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BUSINESS. Milwaukee Banks. MILWAUKEE, Wis., July 22.-The Milwaukee National bank failed to open its doors this morning, and runs immediately began upon other leading banks in the city. The report of the condition of the bank made July 12, showed resources, including loans and discounts, of $1,404,341.78 and a total of $1,965,385.76. Liabilities, including the capital stock of $250,000, and surplus of $250,000; undivided profits, $99.439.32; individual deposits subject to check, $413,836.72. and demand certificates of deposits of $310,161.55; or a total of $1,965,385.76. George H. Noyes is president of the bank, and J. McClure cashier. The South Side Savings bank opened as usual this morning, but closed its doors at 10:30. The report of the bank made the first Wednesday of this month shows resources, total, $1,158,905.17. with Habilities including capital stock of $100,000: undivided profits, $12,500; due depositors on demand, $286,012.46: due depositors on time, $733,452.71. or a total of $1,158,965.17. G. C. Trumpf is president, and J. B. Koetting, cashier. The crowds at the several banks increased in consequence of the spread of the news that the South Side Savings bank and the Milwaukee National bank had failed. The run on the Merchants' Exchange bank was the heaviest, but the crowd at the Second Ward bank was nearly as large. The Merchants' Exchange bank paid out money freely and the officers are confident they will be able to meet every demand. Depositors in the Second Ward bank are mainly German working men, who seem to have become panic-stricken despite the fact the bank is backed by Milwankee's wealthy brewers, who have given their personal guarantee for everything the bank contains. President Trumpf of the South Side Savings bank says the depositors have been toaking very large withdrawals during the past month. while collections have been small and deposits Hght. The officials and directors décided they could not do business long under the circumstances and concluded, in the interest of their patrons and themselves. that it would ba better to suspend without further delay. The run on the Merchants' Exchange bank subsided in consequence of the posting of a guarantee signed by Charles Pfister, the Vogels, John Black, Julius Goll and other wealthy stockholders. A repetition of the guarantee made at the time of the Plankinton bank failure by Captain Pabst and other brewers was made at the Second Ward Savnies bank. The crisis is now doubtless passed in Milwankee, as today's failures cleared the air of all menace for some time to come.