3582. Mercantile Bank & Trust Company (Benton, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust
Start Date
October 3, 1927
Location
Benton, Illinois (37.997, -88.920)

Metadata

Model
gpt-5-mini
Short Digest
d1c3d7ee896f6a57

Response Measures

None

Description

The bank was closed by state finance officers (Oct 3, 1927) and did not reopen; by Jan 1928 it was described as defunct and in the hands of a receiver (Benton State Bank). Articles describe closure due to delayed settlement/frozen loans related to coal loans; no contemporaneous run is reported.

Events (2)
1. October 3, 1927 Suspension
Cause
Government Action
Cause Details
Closed by state finance officers after failure to negotiate an $85,000 loan and problems with frozen/coal loans; directors said settlement might have tided the bank over.
Newspaper Excerpt
There is but slight possibility that the, Mercantile Bank and Trust Co., closed By State Finance officers yesterday, will be permitted to reopen.
Source
newspapers
2. January 13, 1928 Receivership
Newspaper Excerpt
The bank, now in the hands of the Benton State Bank as receiver, failed last September allegedly as a result of frozen loans. Depositors ... appointed a committee ... to employ counsel and bring suit(s).
Source
newspapers

Newspaper Articles (2)
1. October 4, 1927 Effingham Daily Record Effingham, IL
Article from Effingham Daily Record, October 4, 1927

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Article Text

LITTLE POSSIBILITY THAT BENTON BANK WILL REOPEN Benton, III., Oct. 3.-There is but slight possibility that the, Mercantile Bank and Trust Co., closed By State Finance officers yesterday, will be permitted to reopen. The closing of the institution is attributable to the delayed settlement of the failure of the institution to negotiate a $85,000 loan from a St. Louis bank. Directors of the institution have stated that an early settlement of the coal situation probably would have tided the bank over the danger period and might accompanied by the necessary are that depositors will lose heavily a result of the fai ure. Benton banks failed to materialize yes terday. Both institutions had obtained large cash reserves from associate banks and were ready for an emergeney. Withdrawals Saturday greater than usual, but there is no in dieation of "runs" on either bank. Good Resolution A good resolution will make any

2. January 13, 1928 Sterling Daily Gazette Sterling, IL
Article from Sterling Daily Gazette, January 13, 1928

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Article Text

DEPOSITORS TO SUE BANK THAT FAILED Benton. III., Jan. 13.-(By United Press.)-Depositors of the defunct Mercantile Bank and Trust Company appointed a committee in meeting here empowered to employ counsel "and bring auit or suits or whatever may be necessary for our Interests." The bank. now In the hands of the Benton State Bank as receiver, failed last September allegedly as a result of "frozen loans.' Depositors Included a large number of coal min-