4105. Mercantile Bank & Trust Company (Benton, IL)

Bank Information

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

Metadata

Model
gpt-5-mini
Short Digest
0ed60119

Response Measures

None

Description

The Mercantile Bank & Trust Co. in Benton was closed by State Finance officers (Oct 3, 1927) and later placed in the hands of a receiver (reported Jan 13, 1928). Articles mention larger-than-usual withdrawals but explicitly state there was no run. Cause of suspension was closure by state authorities after failure to obtain a large loan/frozen loans. OCR typos in Article 1 (e.g., fragmented sentences) were corrected for meaning.

Events (2)
1. October 3, 1927 Suspension
Cause
Government Action
Cause Details
Closed by State Finance officers after failure/delay in negotiating an $85,000 loan (frozen loans) and related liquidity problems.
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.
Source
newspapers

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

Click image to open full size in new tab

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

Click image to open full size in new tab

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-