5645. Farmers & Merchants State Bank (Fairmount, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
June 15, 1893
Location
Fairmount, Indiana (40.415, -85.651)

Metadata

Model
gpt-5-mini
Short Digest
4e3a0ea8

Response Measures

None

Description

Multiple contemporaneous newspaper reports (mid-June 1893) state the Farmers & Merchants State Bank at Fairmount closed its doors and assigned to Philip Matthew (an assignee/receiver). Crowds of farmers threatened to use dynamite but there is no clear description of a depositor run causing the closure. The bank is later listed among failed state banks in an Oct 31, 1893 report, indicating permanent failure. OCR variants (Farmers and Mechanics', Farmers' and Merchants') were corrected to the provided name.

Events (2)
1. June 15, 1893 Receivership
Newspaper Excerpt
closed its doors yesterday and assigned to Phillip Matthew, of Marion, Ind.
Source
newspapers
2. June 15, 1893 Suspension
Cause Details
Article reports the bank closed its doors and assigned to Phillip Matthew; no explicit trigger (e.g., rumor or correspondent failure) is given in the articles.
Newspaper Excerpt
The Farmers and Merchants' state bank of Fairmount, Grant county, closed its doors yesterday and assigned.
Source
newspapers

Newspaper Articles (10)
1. June 16, 1893 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, June 16, 1893

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Article Text

WANTED TO BLOW IT UP. / Farmers Who Lost in This Bank Threaten to Use Dynamite. ANDERSON, Ind., June 15.-The Farmers and Merchants' state bank of Fairmount. Grant county, closed its doors yesterday and assigned. A crowd of farmers rushed for the bank and threatened to use dynamite under it. It had a paid up capital of $50,000, with a surplus of $5000 at the last report. Dollar for Dollar. WESTON, o., June 15.-The Exchange Banking company of this place closed its doors today. The bank has encountered a run and was unable to get help. The directors notified the depositors that they would probably receive dollar for dollar. The Run in Gotham. NEW YORK, June 15. .-The run on the Irving Savings Institution was renewed this morning. A majority of those in line were women. Over twenty accounts were closed in the first hour and $15,000 withdrawn. None of the large depositors were present. Deposits $600,000. ARKANSAS CITY, Kan., June 15.-The first national bank of this city, one of the oldest and strongest financial institutions in the southwest, failed to open its doors this morning. The deposits are said to be $600,000.

2. June 16, 1893 The Herald Los Angeles, CA
Article from The Herald, June 16, 1893

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Article Text

More Collapsed Banks. ANDERSON, Ind., June 15.-The Farmere and Merchants State bank at Fairmount, Grant county, has closed. Quite a number of farmers threaten to use dynamite to blow up the bank. It had a paid-up capital of $50,000. WESTON, O., June 15.-The Exchange Banking company of this place has closed its doors, owing to a run. No statement. ARKANSAS CITY, Kan., June 15.-The First National bank of this city, one of the oldest, and generally believed to be one of the strongest financial institutions in the southwest, failed to open its doors this morning. The deposits are reported to be $600,000. Sr. LOUIS, June 15.-S. Bonham, a banker of Fairfield, Ill., has failed. It is impossible now to give a statement of the liabilities. The deposite were large up to the last few days.

3. June 16, 1893 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, June 16, 1893

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Article Text

Indiana Bank Assigns. ANDERSON, Ind., June 16.-The Farmers' and Merchants' State Bank at Fairmount, Grant county, just north of here closed its doors yesterday and assigned to Phillip Matthew, of Marion, Ind. Quite a crowd of farmers rushed for the bank and threatened to use dynamite under it. Alpheus Henley, J. E. Winslow and Levi Scott are the officers of the bank. It rad a paid-up capital of $50,000 with a surplus of $5,000 at last report.

4. June 16, 1893 The Sun New York, NY
Article from The Sun, June 16, 1893

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Article Text

BANKS IN TROUBLE. The First National of Arkansas City, Kan., Closes Its Doors. ARKANSAS CITY. Kan.. June 15.--The First National Bank of Arkansas City. Kan.. closed its doors to-day. It was organized June 30. 1885. with a capital stock of $50,000. which it afterward increased to $125,000. When examined in December. 1892. it had a capital of $125,000 and surplus and profits as shown by its books mounting to about $90,000. but the Examiner's report showed that excessive loans and discounts to the amount of $180,000 had been made to ten parties. and that loans and discounts to the amount of $60,000 had been made to the President. William Steeth. the cashier. H. P. Farrar. and the assistant cashier. F. W. Farrar. The Examiner estimated that losses to the extent of $140,000 had been sustained by the bank. and the Comptroller. in criticising the report then made. directed the bank to use its surplus and profits to charge off $90,000 of this estimated loss. and gave notice of an assessment of $50,000 upon the bank to make good the impairment of capital shown to this amount. The bank WAS again examined on April 20. and the Examiner. being still of the opinion that the capital was impaired by losses sustained upon its Assets. the Comptroller thereupon notifled the bank that the assessment must be paid in by the shareholders without further delay. The closing of the bank is due to the fact that having most of its resources tied up in loans and other investments which could not be converted into cash. it was unable to respond to the demands of depositors, the bulk of the deposits being payable on demand. The President and the cashier appear to have been the main managers of the bank. and to their conduct of affairs in a large measure is due the condition which brought about the collapse of it. This afternoon Comptroller Eckels appointed Hiram Walworth of Plattsburgh, N.Y., receiver of the bank. ST. LOUIS, June 15.-8. Bonham. banker. at Fairfield. Ills., has failed. INDIANAPOL'S June 15.-The Comptroller of the Currency has extended the time for reopening the Capital National Bank until Monday next. at which time it will resume. The bank now has $500.00 in its vaults, and the directors announce that it will have $750,000 with which to open its doors. sufficient to pay every depositor on sight. ANDERSON. Ind.. June 5.-The Farmers' and Merchants State Bank at Fairmount, Grant County, just north of here. closed its doors yestorday and assigned to Philip Matthew of Marion. Ind. Quite a crowd of farmers rushed for the bank and threatened to use dynamite under it. Alpheus Henley. J. E. Winslow, and Lovi Scott are its officers. It had a paid-up capital of $50,000. with a surplus of $5,000 at the last report. CHICAGO. June 15.-Atn meeting of thestockholders of the Chemical National Bank yesterday it was decided to resume business. Steps were taken toward reorganization WESTON. O., June exchange Banking Company of this place has closed its doors. The bank had a run and was unable to get help. The directors have notified depositors that they will probably receive dollar for dollar. BOSTON. June 15.-Receiver Trask of the Order of the Unity has discovered a defleit in the treasury accounts of the order amounting to between $18,000 and $20,000. He also reports the destruction or concealment of important books and vouchers. Charles A. Klinnton. Suprame Treasurer of the order. through whose hands all the money passed. has been missing from his residence in Somerville for nearly a fortnight and cannot be found.

5. June 16, 1893 The Evening Herald Shenandoah, PA
Article from The Evening Herald, June 16, 1893

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Article Text

Indiana Bank Assigns. ANDERSON, Ind., June 16.-The - Farmers' and Merchants' Stat Bank at Fairmount, Grant county, just north of here closed its doors yesterday and assigned to Phillip Matthew, of Marion, Ind. Quite a crowd of farmers rushed for the bank and threatened to use dynamite under it. Alpheus Henley, J. E Winslow and Levi Scott are the officers of the bank. It rad a paid-up capital of $50,000 with a surplus of $5,000 at last report.

6. June 23, 1893 Hot Springs Weekly Star Hot Springs, SD
Article from Hot Springs Weekly Star, June 23, 1893

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Article Text

FARMERS MAD. Anderson, Ind., June 16.-The Farmers and Mechanics' State Bank at Fairmount, Grant county, just north of here, closed its doors yesterday and assigned to Phillip Matthew of Marion, Ind. Quit. a crowd of farmers rushed for the bank and threatened to use dynamite under it. Alpheus Henley, J. E. Winslow and Levi Scott are the officers of the bank. It had a paid up capital of $50,000, with a surplus of $5,000 at the last report.

7. June 23, 1893 Idaho County Free Press Grangeville, ID
Article from Idaho County Free Press, June 23, 1893

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Article Text

MONEY TROUBLES. Measure of Relief Proposed by the New York Clearing House. NEW YORK, June 15.-In view of the serious drain upon the banks here, caused by demands from the interior, the clearing house committee proposes that every clearing house center in the country issue clearing house certificates, which would make available for use between banks a vast amount of perfectly good assets which are now uncurrent. In the opinion of sagacious and conservative bank officers of this city, this would be a long step toward a reetoration of confidence. Receiver Appointed, SEATTLE, Wash., June 15.-The Ranier electric railway and power company and the Seattle consolidated street railof way a receiver company through have gone failure into to the dispose hands of bonds. D. T. Denny, the principal owner, to protect all his creditore has given trust deeds, and deeds and mortgages on all his property. His assets are much larger than his liabilities. Big One In Arkansas City. ARK ANSAS CITY, Kan., June 15.-The First national bank, of this city, one of the oldest and generally believed to be one of the strongest financial institutions in the southweet, failed to open its doors this morning. The deposits are reported to be $600,000. Threaten to Use Dynamite. ANDERSON, Ind., June 15.-The Farmers & Merchants' state bank at Fairmount, Grant county, is closed. Quite a number of farmers threaten to use dynamite and blow up the bank. It had a paid up capital of $50,000. Flood's Case With the Jury. SAN FRANCISCO, June 15.-The trial of J. W. Flood, charged with embezzlement of $164,000 from the Donabue-Kelly banking company, closed today and the jury retired. Temporary Help. NEW YORK, June 15.-The Clearing association has decided to issue six per cent loan certificates to tide those banks which need help over the present financial trouble. Dismond Dealers Assign. NEW YORK, June 5.-C. Cotier & Son, diamond dealers, assigned today. Their liabilities exceed $100,000, and their assets are equal in amount. Couldn't Stand the Pressure. WESTON, O., June 15.-The Exchange banking company of this place has closed its doors, owing to a run. One in Illinois. Sr. Louis, Mo., June 15.-S. Boneham, a banker of Fairfield, Ills., has failed.

8. June 24, 1893 The Bottineau Pioneer Bottineau, ND
Article from The Bottineau Pioneer, June 24, 1893

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Article Text

FARMERS MAD. Anderson, Ind., June 16.-The Farmers and Mechanics' State Bank at Fairmount, Grant county, just north of here, clcsed its doors yesterday and assigned to Phillip Matthew of Marion, Ind. Quit. a crowd of farmers rushed for the bank and threatened to use dynamite under it. Alpheus Henley, J. E. Winslow and Levi Scott are the officers of the bank. It had a paid up capital of $50,000, with a surplus of $5,000 at the last report.

9. July 19, 1893 The Indiana State Sentinel Indianapolis, IN
Article from The Indiana State Sentinel, July 19, 1893

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Article Text

New Bank at Fairmount. MARION, July 14.-Special.-A new bank has been organized at Fairmount by Nixon and Jonathan Winslow, with Will Winslow cashier. The Farmers, and Merchants' bank, which recently suspended at that place, will not resume business for some time.

10. February 14, 1894 The Indiana State Sentinel Indianapolis, IN
Article from The Indiana State Sentinel, February 14, 1894

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REPORT ON STATE BANKS IS MADE BY THE BANK DEPARTMENT OF THE AUDITOR'S OFFICE. It Shows the Number of State Banks Organized During the Year, the Number of Failures-Two Trust Companies, Both of This City, Have Been Incorporated. The annual report of the bank department of the state auditor's office has been printed. It is for the fiscal year ending Oct. 31, 1893, and shows that during the year the following state banks have been incorporated, making a total of eighty-seven in the state: Monroe county state bank of Bloomington, Citizens' bank of Clinton, Garrett banking company of Garrett, State bank of Indiana at Indianapolis, Citizens' state bank of Knox, Logansport state bank, State bank of Lowell, Union loan and trust company of Richmond, Parke bank of Rockville, State bank of Veedersburg, Williamsport *state bank of Williamsport. The financial panic of last spring compelled the following banks to close their doors and their affairs are being wound up: State bank of Churubusco, Clay county bank of Clay City, Farmers' and Merchants' bank of Covington, Farmers' and Merchants' bank of Fairmount, Farmers' and Merchants' bank of Geneva, Farmers' bank of Otterbein, Commercial bank of Oxford, Bank of Russiaville, Bank of Spiceland. The Delaware county bank at Muncie reorganized as a national bank and the Citizens' bank at Knox sold its business to a private bank. These changes have left eighty-seven banks operating under state law at the date of this report. These failures are the first that have occurred since the enactment of the present state bank law in 1873, and were largely owing to alliances with financial schemes, the practicability of which were always doubted by this department, and which has made all the effort that it could to prevent them. The law, however, does not give the auditor of state sufficient authority to stop practices by banks which seem to him unsafe. The failure of these banks. with two or three exceptions, will not cause loss to depositors. The report shows that the savings banks, of which there were five at the close of the year, are in a. perfectly solvent condition, but suffered, like all other banks. in the withdrawal of deposits during the spring and summer. Whenever necessary, the provisions of the law under which they are operating and their by-laws, requiring notice of withdrawals, were taken advantage of, thus preventing a sacrifice of their securities. Two trust companies have been organized under the law passed by the last general assembly providing for their incorporation. They are the Indiana trust company and the Union trust company, both of Indianapolis. Statements of their condition are submitted. showing their exact assets and liabilities at the close of the fiscal year.