2796. Merchants & Traders Bank (Brunswick, GA)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
May 18, 1893
Location
Brunswick, Georgia (31.150, -81.491)

Metadata

Model
gpt-5-mini
Short Digest
72e7ab57

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health

Description

During the 1893 Brunswick banking panic the Merchants & Traders Bank experienced noticeable withdrawals but remained open and 'held out' while other local banks closed or went into receivership. Triggering events included the suicide of a prominent banker (Ullman) and circulation of rumors about the Oglethorpe and First National banks; Merchants & Traders responded by paying depositors and securing coin to meet demands.

Events (1)

1. May 18, 1893 Run
Cause
Bank Specific Adverse Info
Cause Details
Panic after the suicide of Ullman and circulating rumors about the Oglethorpe and First National banks; failure/closure of those national banks prompted withdrawals at Merchants & Traders.
Measures
Cashier stated readiness to pay any depositor; later actions (recounted) included wiring for and bringing in large quantities of silver to meet withdrawals and paying out depositors.
Newspaper Excerpt
At the Merchants and Traders' bank run was perceptible, and Cashier ... stated their readiness to pay any one who wanted their money.
Source
newspapers

Newspaper Articles (3)

Article from The Atlanta Constitution, May 23, 1893

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Article Text

the I Brewing and Ice Company, her Cumberland in route steamers, half wholesale the firm of Mayer & Ullman, partin grocers and a large stockholder large several big concerns of different Brunswick and elsewhere, and until kinds counted by a majority of the citi- toone of the wealthiest men in this Immediately after the suicide the lethrope bank closed its doors, followed later. by the First National bank a few minutes Ullman's Last Talk President W. E. Burbage, of the First National National bank, a director in the Oglethrope the and Ullman's closest friend, last man who saw him was to the bank with Ullman both chatting o'clock, walked pleasantly. alive. about Shortly He 9 afterwards Burbage came to the National and requested Ullman to First loan "All from the day before. Ullman repay a right, wait a minute," and stepped said, the toilet room. Burbage waiting, into a report which he thought was a chair heard ng. Finally when Ullman did not return fallne went for him, and found his body in ting upright on a bench with a bullet sitthe center of his forehead and blood hole flowing in a rapid stream to a pool that had already formed below. Burbage hurridly spread the news, and it went like wildfire. How Interests Are Affected. The streets soon became crowded with excited citizens. I A slight run commenced on the Brunswick State bank, but Cashier Cunningham and Vice President A. J. met all demands, and Crovatt stated Crovatt 2 f necessary they would remain open that o'clock to pay any who wanted their until noney. 3 At the Mershants and Traders' bank run was preceptible, and Cashier no stated their readiness to pay any one Lane who wanted their money. 3 The Brunswick Saving and Trust Company is also solid and no run was there. The Oglethrope and First National upon as twins, and the two tained were and Ullman, looked presidents, Berbage enter- bank for a Damon and Pythias friendship to one another. President Burbage your correspondent that he believed stated both in banks would pay out when they the money that is due them. Some got banks the largest depositors in both the closed of express the same opinion. the The store of Mayer & Ullman, largest wholesale groceries, closed one of porarily. The firm is composed of Sam temMayer and M. Ullman. The Brunswick brewery will close temporarily and Brunswick cotton factory will close the rarily. President H. T. Kennon tempofactory is perfectly solvent. They says the the First National bank a nominal owe out have had arranged for the amount, pay all their indebtedness. pending money the to settlement of a small matter in court. Rumors affecting the Oglethrope and First National banks have been circulated under cover for several days. and these mors wall. caused a run that forced them to the I'llAt a late hour tonight it is reported that the immediate cause of Ullman's suicide was the receipt of a telegram from Herman Myers, the Oglethrope's that he would not Ullman wired to meet the Savannah, for which correspondent send $15,000 de- at mand of the county any papers he now held. tend receipt of treasurer; Upon nor the exthis, Ullman walked out and shot himself. Myers is here but refuses to talk on the subject. Heavy Life Insurance. Ullman's life was insured for $66,000. The only companies and amounts could be learned tonight are the New York Life, $25,000; Pennsylvania Mutual. $25,000: Mutual Life, $10,000; American Legion and Honor, $5,000. Some Savannahians are Losers. Savannah, Ga., May 18.-(Special.)Savannahians are losers to the extent of about $40,000 through the failure of Brunsvick's two national banks today. This amount, it is learned, was held in stock by various business men here, but none of them will admit the loss. It is said, however, Mr. Herman Myers and Mr. J. P. Wiliams held large blocks of stock in the bank, and are probably among the heaviest All banks money had n drawn Savannah, all the they here out had in losers with- the national banks of Brunswick, as the condition of them was known here to have been shaky for months.


Article from The Cecil Whig, June 17, 1893

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Article Text

1 From the special correspondent of THE WHIG. f Brunswick's Bursting Boom. BRUNSWICK, GA, June 8, 1893. e DEAR WHIG:-I think it was some three ) years ago I wrote you some account of the boom that had started in Brunswick. e Capalists from New York came down here, purchased two or three hundred acres of I town lands, laid out building lots, started the Brunswick Company, induced citizens to take stock in the same, built a magnificient hotel at a cost of 165,000 dollars, built e street railways, had the stock listed at the stock exchange at New York, sold lots at exhorbitant prices, induced people to build, started a boom of speculation and in fact set people crazy as to the future of Bruns. wick. Lots valued at 300 dollars before the $ boom, rapidly sold for one to two thousand, with few exceptions, and all lseemed anxious to speculate in town lots. To accommodate P borrowers, four banks were] started, two f National, the First National bank and the Oglethorpe National Bank, and two State banks, the Brunswick State Bank and the Merchants and Mechanics Among and foremost of the speculators were the presi dents of the Oglethorps National Bank, the First National Bank and the Brunswick State Bank, who it appears now were using the funds of their respective institutions in private speculations, and 80 the thing went on. And now comes the inevitable result. Five or six weeks ago faint rumblings of the storm began to be heard and telt. A few conservative men who had not participated in kite flying, began to set their houses in order. Well the burst came. Talk about your western cyclones, the worst of them were but gentle zephyrs in comparison to the cyclone that struck this town three weeks ago. leaving ruin and desolation in its track. Three weeks ago the president of the Oglethorpe National Bank entered it at 9 a. m., had a short talk with his compeer and associate the president of the First National, then passed into a private room and blew his own brains out. The bank immediately closed its doors (which it would have done at any rate.) As soon as the President of the First National Bank reached his bank he closed its doors and they both remain closed. The failure of the two prominent banks caused a run on the two State Banks, and one week later the Brunswick State Bank went under. The Merchants and Traders Bank still holds out and may weather the storm. We all hope it may, but the feeling of distrust is so prevalent in this community that no one can estimate for the future. The U.S. bank examiners are in charge of the two National Banks and the probabilities are they will be put in the hands et receivers. An effort is being made by the stockholders and directors of the Brunswick State Bank to reopen it and make a fresh start with new officers, but the general impression is that they will all go into the hands of receivers. If so, then great distress and suffering must accrue in the course of winding up these institutions, and it will be a long time before depositors get paid off, if ever. am pleased to be able to say that the Cecil delegation located here escaped the fury of the storm with but slight damage and are safely anchored in port with sails all set for coming breezes. Of course business is in a measure paral. yzed for the present and every thing looks dark. But when the effects of storm have passed away, it will start up again on better and firmer grounds and the sad experience of the last few years will be remembered as a costly lesson to profit by in the future. CECIL Yours,


Article from The Morning News, November 11, 1897

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Article Text

CASHIER LANE RESIGNS. Brunswick to Lose One of It's Most Level Headed Financiers. Brunswick, Ga., Nov. 10.-A. H. Lane, vice president of the Merchants' and Traders' Bank, has resigned. By unanimous vote of the directors, he has consented to manage the bank's affairs until Jan. 1. He retires from active business temporarily to devote some months to travel. For nearly ten years he has occupied a prominent position financialy and socially in this section. During the panic of 1893, Mr. Lane became one of the most striking figures in local banking circles. When the crash came, locally, that sent three banks to the wall, accompanied by a tragedy which startled the business world, he was the most -conspicuous figure. His personal guarantee of aid to carry tottering institutions through the panic served largely to allay fears. When an onslaught was made at that time on the Merchant's and Trader's Bank by anxious depositors, Mr. Lane wired to Savannah for $50,000 in silver, and secured it before bank hours by using a special engine. The morning of its arrival he rode through the streets of Brunswick in a double team express wagon loaded with the coin, and followed by a crowd of cheering citizens, and aided the teller in paying it out. His ready command of cash and utter disregard of the panicky feeling, served largely to restore confidence in local business circles and brought depositors in the remaining solid institutions to their senses. Mr. Lane has banking connections in Savannah and Valdosta, which are towers of strength. Locally he owns the Hotel St. Simons and other investments, which yield handsome profits. His decision to leave Brunswick is greatly regretted.