Accommodated withdrawals, Capital injected, Full suspension, Books examined
Notes
Receiver location is reported inconsistently (Frankfort, Ky. vs. Frankfort, Kan.).
Events (6)
1.August 25, 1884Chartered
Source
historical_nic
+6.3 years
2.December 10, 1890Run
Cause
Local Banks
Cause Details
Run triggered by the suspension of the Franklin Bank and the failure/assignment of Kendrick, Pettus & Co.; contagion from local banking and commercial failures.
Measures
Paid out over $60,000 during the run before closing doors.
Newspaper Excerpt
A run on the Farmers' and Merchants' National Bank followed, and the doors were closed.
Source
newspapers
+24 days
3.January 3, 1891Suspension
Cause
Local Banks
Cause Details
Suspension followed the run and ensuing liquidity crisis after other local failures; receiver subsequently appointed.
Newspaper Excerpt
The bank was closed and a receiver appointed January 3, 1891.
Source
newspapers
+4 days
4.January 7, 1891Receivership
Newspaper Excerpt
E. S. Peck ... has been appointed receiver of the Farmers' and Merchants' Bank of this city.
Source
newspapers
+3 months
5.April 21, 1891Reopening
Newspaper Excerpt
The Farmers and Merchants Bank of this city resumed business yesterday. The bank has an abundance of money to meet all claims that may be presented.
Source
newspapers
+2.5 years
6.October 19, 1893Voluntary Liquidation
Source
historical_nic
Newspaper Articles (22)
1.December 11, 1890The Morning NewsSavannah, GA
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CRASHES AT OL A RKES VILLE. A Bank and a Tobacco Firm Forced to Suspend. NASHVILLE, TENN., Dec. 10.-A special from Clarksville, Tenn., says: "The Franklin bank of this city suspended pay ment this morning. The failure was caused by the recent failure of Henry Seafert, of New York, a large tobacconist, with whom the Franklin bank had done a large credit business, The Franklin bank is a private bank, with a capital stock of $50,000. The assets and liabilities of the bank are not known as yet. "Kondick, Pet'us & Co., a large tobacco firm, made an assignment to-day. The suspension of the bank, in which the firm had a large deposit, and the stringency of the money market made it impossible for the firm to meet their obligations. Ia order to protect all their creditors alike, they assigned. The liabilities are $41,000. A statement of their assets has not been made. "The liabilities of the Franklin bank amount to over $200,000, and the assets exceed the liabilities by about $50,000. "The liabilities of Kondick, Pettus & Co. are over $400,000. The nominal assets 0Xceed this amount. "A run on the Farmers' and Merchants' National Bank followed, and the doors were closed. This was caused by the other failures, but that institntion will probably resume business in a day or two."
2.December 11, 1890Wheeling RegisterWheeling, WV
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Financial Failures in Tennessee. CLARKSVILLE, TENN., December 10.The Franklin bank, of this city, suspended payment this morning. The failure was caused by the recent failure of Henry Seafert, of New York, a large tobacconist, with whom the Franklin bank had been doing a largecredit business. Liabilities over $200,000, and assets exceed the liabilities by about $50,000. The directors hope for an early settlement, but the prospects are discouraging. Kendrick, Peetus & Co., a large tobacco firm, made an assignment to-day. Liabilities, over $400,000; nominal assets exceed this amount. The suspension of the bank in which the firm had large deposits, and the stringency of the money market, was the cause of the assignment. A run on the Farmers and Merchants' National Bank followed, and the doors were closed. This was caused by the other failures, but that institution will probably resume business in a day or two. Great excitement exists in business circles.
3.December 11, 1890Sacramento Daily Record-UnionSacramento, CA
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FAILURES. More Institutions Unable to Stand the Stringency of Money. NASHVILLE. December 10th -A special from Clarksville, Tenn., says: The Franklin Bank of this city suspended this morning. The fail ure was caused by the recent failure of Henry Seafert of New York, with whom the bank had been doing much credit business. The liabilities amount to over $200,000; assets, $250,000. The prospects for settlement are discouraging. Kendrick, Pettus & Co., a large tobacco firm, also assigned to-day. The suspension of the bank and the stringency of the money market made it impossible for the firm to meet its obligations. The liabilities are over $400,000. The nominal assets exceed this amount. A run on the Farmers' and Merchants' National Bank followed, and the doors were closed. I his was caused by the other failures, but that institution will probably resume in a day or two. Business circles are greatly excited. GROCERY FIRM ATTACHED. DENVER, December 10th.-The grocery and importing house of John H. Carleton has been closed on attachments aggregating $24,000. The liabilities are $24,000; assets unknown.
4.December 11, 1890The Seattle Post-IntelligencerSeattle, WA
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CAPITAL AND LABOR. Financial Troubles Lead to Failures and Strikes. PANIC IN A TENNESSEE TOWN. Its Leading Business Men Insolvent-More Eight-Hour Demands to Be Enforced Next Spring. CITY OF MEXICO, Dec. 10.-The Commercial telegraph line closed its doors yesterday at Vera Cruz. It is reported to be bankrupt. It is rumored that the government will take up the line. DENVER, Dec. 10.-The grocery and importing house of John H. Carleton has been closed on attachments aggregating $24,000. The liabilities are $244,000; assets unknown. NASHVILLE, Dec. 10.-A special from Clarksville, Tenn., says: The Franklin bank, of this city, suspended this morning. The failure was caused by the recent failure of Henry Seafort, of New York, with whom the bank had been doing much credit business. The liabilities amount to over $200,000; assets, $250,000. The prospects for a settlement are discouraging. Kendrick, Pettus & Co., a large tobacco firm, also assigned today. The suspension of the bank and stringency of the money market made it impossible for the Lrm to meet its obligations. The liabilities are over $400,000, and the nominal assets exceed this amount. A run on the Farmers' and Merchants' bank followed, and the doors were closed. This was caused by the other failures, but that institution will probably resurue in a day or two. Business circles are greatly excited. CHICAGO, Dec. 10.-The assignee of the Chicago Safe and Lock Company, in which the missing millionaire, B. H. Campbell, held the chief interest, uled an inventory today, which was a great surprise. At the time of the failure it was announced that the assets would amount to $700,000. An inventory shows their total to beonly $127,000. New YORK, Dec. 10.-The suspension of Hamilton & Bishop was unnounced on the stock exchange this morning. Hamilton & Bishop are bankers and brokers. They made an assignment with $37,000 preferences. The failure is considered unimportant. ARKANSAS CITY, Kan / Dec. 10.-It is said that the American bank, which failed yesterday, will not resume. About $190,000 is due the depositors. It is understood that the federal authorities will take charge.
5.December 11, 1890Evening StarWashington, DC
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Tennessee Banks Suspend. The suspension of the Franklin Bank : of Clarksville, Tenn., yesterday was followed by the assignment of Kendrick, Pettus & Co., tobacco dealers. Two or three hours later the Farmers' and Merchants' National Bank suspended payment. The Franklin Bank was a private institution, with a capital stock of $52,000. Kendrick, Pettus & Co.'s liabilities are $410,000. Their assets are not known.
6.December 17, 1890The Port Gibson ReveillePort Gibson, MS
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Article Text
Clarksville, Tenn., thrown into great excitement Wednesday by the failure of the Franklin bank, and Kendrick, Pettus & Co., wholesale tobacco dealers. Run upon Farmers and Merchants bank ensued, and after paying out over $60,000, that house also closed its doors.
TENNESSEE STATE NEWS. / Three Failures at Clarksville. CLARKSVILLE, Dec. 10.-Clarksville business circles have been much agitate& all day over several failures. At an early hour this morning the Franklin Bank of this city suspended payment, with about $200,000 liabilities and assets about $50,000 above this amount. The recent failure of Henry Seabert, a large New York tobacconist, with whom the Franklin Bank did a big credit business, is announced as the reason for the failure. As a result of this suspension, Kendrick, Pettus & Co., tobacconists, made a full assignment, with-liabilities over $400,000. The nominal assets, which consist of real estate, notes and accounts, are said to exceed the liabilities. The following, issued by the firm, gives the cause of the assignment: "Owing to the failure of a large creditor in New York of the Franklin Bank, that institution WAS FORCED TO SUSPEND, and because of the suspension of the bank, in which we had large deposits, and on account of the stringency of the money market, we found we could not meet our obligations, and, to protect our creditors, we have assigned. KENDRICK, PETTUS & Co." About i o'clock in the afternoon the Farmers' and Merchants' National Bank closed its doors. Large sums of money owed by Kendrick, Pettus £ Co. was the cause of its t ouble.
8.December 19, 1890Hopkinsville KentuckianHopkinsville, KY
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Latest From Clarksville. There have been no further failures at Clarksville. The Farmers & Merchants Bank threw up the sponge on the 15th and will not attempt to resime. Its directors published a card saying its affairs had passed into the hands of a Receiver and exonerating the cashier. Mr. J. W. Faxon, from personal blame for the failure. The errors in management were jointlv assured and shared by all of the directors, viz: Geo. S. Bowling, J. J. Crusman, H. T. Drave. J. J. Garrott, Phil Lieber and G. W. Jesup. The depositors will get their money after a time, but the stockh olders will lose heavily, if not totally. The situation was quiet and more settled yesterday. The other big, warehouse that has been shaky has not failed, but is still in a very close place. Unless it is crowded by creditors it may pull through.
9.January 7, 1891Deseret Evening NewsSalt Lake City, UT
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Receiver Appointed. CLARKVILLE, Tenn., Jan. 7.-E. S. Peck, a banker of Frankfort, has been appointed receiver of the Farmers' and Merchants' Bank of this city. Nothing is stated in regard to the affairs of the bank.
BANKRUPTS. CHICAGO, Jan. 7.-Justice Hamburger today held Banker Kean in $3.000 bonds to the grand jury, for receiving deposits when he knew he was insolvent. CLARKSVILLE, Tenn., Jan. 7.-E. S. Peck, a banker of Frankfort, Ky., has been appointed receiver of the Farmers and Merchant's bank in this city.
11.January 8, 1891Richmond DispatchRichmond, VA
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The Clarksville (Tenn.) Bank Failure. (By telegraph to the Dispatch.) NASHVILLE. TENN., January 7.-A Clarksville (Tenn.) special says: E. Speck, a banker of Frankfort, Kan., has been appointed receiver of the Farmers and Merchants Bank in this city. Nothing can be stated concerning the winding up of the business of the bank until the receiver arrives and matures his plans.
12.January 8, 1891The Morning NewsSavannah, GA
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A CLABKSVILLE BANK FAILS. A Banker from Kansas Named as Its Receiver. NASHVILLE, TENN., Jan. 7.-A Clarks. ville, Tenn., special says: "E. S. Peck, a banker of Frankfort, Kan., has been appointed as receiver of the Farmers' and Merchants' Bank in this city. Nothing can be stated concerning the winding up of the business of the bank until the receiver arrives and matures his plans."
13.January 8, 1891The Morning CallSan Francisco, CA
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Receiver Appointed. CLARKVILLE (Tenn.). Jan. 7.-S. Peck, a banker of Frankfort, has been appointed receiver of the Farmers' and Merchants' Bank of this city. Nothing is stated in regard to the affairs of the bank.
FINANCIAL MATTER. Farmers & Merchants Banks Will Possibly Resume. The committee of directors have been busy the past two days looking through the affairs of the Farmers & Merchants bank, and they find the situation a great deal better than the most sanguine had expected. The stockholders have all been notified to meet here next Tuesday, when the question of resuming business will be determined. There is scarcely a doubt that the bank will open up again. Some of the largest stockholders, who have suffer+ d greatest in the wreck are without the means to increase their holdings, but they will have no difficulty in hypothecating their stock as collateral for the money, as confidence has been restored, and the stock, which could not have been sold two weeks ago at twenty five cents on the dollar could not now be bought at seventy-five cents. Receiver Peck says that the wrecking of this bank was the greatest outrage that has been practiced upon the community; that there was no cause whatever for it. It was simply a big scare and thoughtless, recklessness that caused the run on the bank and great has been the sacrifice. But for this run Hancock, Hallums & Co. would have pulled through and would have saved others. who were forced to go down with them. Mr. Peck has endeared himself to all connected with the bank. He has shown himself to be not only a business man of the highest order, but a gentleman of integrity and unselfish motives. Our people did not expect lavors whatever. They knew the receiver would wind up the bank at a salary of about $2,500 a year-a good fat piece of pie-and he was not expected to throw it away. But his first step was to look through the af fairs of the bank and then he commenced stiffening the spinal columns of the stockhold rs, telling them that it was a shame to let the bank go under when they could so easily reinstate it and save their stock and the community, which would necessarily suffer by winding it up. He told them how to proceed and urged every man to pull off his coat and go to work. They took courage and did as he directed, and now the pros. pects are that the bank will soon be stronger than it ever was. Mr. Peck
15.January 22, 1891Oxford EagleOxford, MS
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A Clarksville (Tenn.) Bank. F. S. Peck. a banker of Frankfort, Ky has been appointed receiver of the Farmers' and Merchants' Bank in Clarksville, Tenn. Nothing can be stated concerning the winding up of the business of this bank until the re ceiver arrives and matures his plans.
16.April 22, 1891Richmond DispatchRichmond, VA
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A Broken National Bank Resumes. (By telegraph to the Dispatch.) NASEVILLE, TENN.,. April 21.-A Clarksville (Tenn.) special says: The Farmers and Merchants Bank of this city resumed business yesterday. The bank has an abundance of money to meet all claims that may be presented. No large depositors have withdrawn their money. The cashier says that they are receiving deposits and expect to go on. This bank breaks the record, being the first national bank that ever resumed after having passed into the hands of a receiver.
Loosening up Business. A prominent business man remarked this morning that the reopening of the Farmers and Merchants Bank had already loosened up business greatly and relieved much of the presure on the other banks, that this policy would amount to the saving of at lest $100,000 to the community and was another feather in Clarksville's cap for good business capacity, it being the first national bank that was ever reopened after suspension.
18.April 24, 1891Evening StarWashington, DC
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To REOPEN FOR BUSINESS.-The controller of the currency has revoked the commission of the receiver of the Farmers and Merchants' National Bank of Clarksville, Tenn., and has permitted the association to reopen for business. The bank was closed and a receiver appointed January 3, 1891. The stockholders have, by voluntary assessment, made good the impairment of capital stock, and it resumes business in an entirely solvent condition. Mr. E. T. Peck, late receiver, has been elected cashier.
19.April 24, 1891The Columbia HeraldColumbia, TN
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The suspended Farmers' and Merchants' National Bank of Clarksville has elected fffeers, and will resume business to-day. The Bank Examiner says the concern's affairs have been straightened out, and that its condition LB all that could be desired.
20.April 30, 1891Iron County RegisterIronton, MO
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Resumed Business. The Farmers' and Merchants' national bank of Clarksville, Tenn., recently placed in the hands of a receiver, has resumed business.
21.May 2, 1891Southern StandardMcMinnville, TN
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If you have headache try Preston's "Hed-Ake." The Farmers and Merchants Bank of Clarksville, which suspended and went into the hands of a receiver some months ago, resumed business last Monday, and is said to be the first case of the kind on record in the United States.
Bank Examiner Campbell.
J. O. Campbell, of Birmingham, Ala., is in the city inspecting the national banks. Mr. Campbell is the bank examiner who had charge of the Farmers' and Merchants' Bank when it suspended payment, and while he was here he made many friends, who are glad to see him on his return. He will be in the city only a day or two.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
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Farmers & Merchants National Bank · Episode ID 324101092
