Merchants Exchange Bank (Milwaukee, WI)

Episode Information

Episode UID
5973391091123
Episode Type
Run Only
Bank Type
trust
Bank ID
597339109 hash
Start Date
July 22, 1893
Location
Milwaukee, Wisconsin (43.039, -87.906)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
cc768fd1700864a7

Response Measures

None

Events (1)
1. July 22, 1893 Run
Cause
Local Banks
Cause Details
Runs began after the Milwaukee National and South Side Savings banks failed/closed, triggering heavy withdrawals at other local banks including Merchants' Exchange.
Measures
Posted guarantee notice by leading citizens/stockholders and paid out money freely to meet demands.
Newspaper Excerpt
The run on the Merchants' Exchange, which was the heaviest, subsided in consequence of the posting of a guarantee notice by leading citizens.
Source
newspapers

Newspaper Articles (10)
1. July 22, 1893 Asheville Daily Citizen Asheville, NC
Article from Asheville Daily Citizen, July 22, 1893

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BANK TROUBLES. The Southside Savings bank, Milwaukee, Wis., did not open its doors this morning, and there was a heavy run on the German-American and the Merchant's Exchange banks. The Milwaukee National bank also closed its doors. The Kentucky National bank of Louisville, Ky., closed its doors this morning. This bank's last statement showed $190,000 to the credit of the government. The State National bank of Vernon, Tex., has closed its doors. Every cent of money was paid out except one ten cent piece before the doors closed. The private banking house of J. and L. W. Galbraith, Lampasas, Tex., failed to open its doors yesterday. Liabilities, $60,000; assets, $120,000. The Citizen's bank of Jellico, Tenn., the only banking institution in that place failed to open for business yesterday. The First National bank of Anthony, Kas., closed its doors yesterday. Assets $154,000; liabilities $50,000. The Union bank of Greeley. Col., made an assignment yesterday.

2. July 23, 1893 The Herald Los Angeles, CA
Article from The Herald, July 23, 1893

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THE PANIC AT MILWAUKEE. Several More Banks Compelled to Close Doors. MILWAUKEE, July 22.-The South Side Savings bank closed doors at 10:30 a.m. The Milwaukee National bank failed to open doors this morning. A run followed on all the leading banks in the city. The report of the Milwaukee National bank. July 12th, showed: Resources, $1,965,386; liabilities, deposits, $723,998; due other banks, $196,910; other liabilities, $445,048. Capital stock, $250,000; surplus, $250,000; undivided profits, $99,439. The situation was better in the afternoon. The run on the Merchants' Exchange, which was the heaviest, subsided in consequence of the posting of a guarantee notice by leading citizens. Other banks where the run was heavy were the Second Ward National, in which there were mostly small German depositors, but it has the backing of the big brewers and no danger is apprehended. President Noyes, of the Milwaukee National, has given a statement for publication in which he saye the bank is perfectly solvent, with assets half a million above liabilities, but in the present strained condition of affairs it was thought beet to close the doors.

3. July 23, 1893 Wheeling Sunday Register Wheeling, WV
Article from Wheeling Sunday Register, July 23, 1893

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CONCERNING BUSINESS AND FINANCE. MILWAUKEE, WIS., July 22.-Runs which started on all the banks early in the day were still in progress this afternoon. The crowds at several of the banks had increased in consequence of the spread of the news that the South Side Savings Bank and Milwaukee National Bank had failed. The run on the Merchants Exchange Bank was probably the heaviest, but the crowd that was at the SecondWard Bank was nearly as large. The Merchants' Exchange Bank paid out money freely and its officers said they were contident they would be able to meet every demand. The air was full of rumors of failures and impending failures in mercantile circles, but up to noon no suspensions had occurred. President Trumpff, of the South Side Savings Bank, said depositors had been making large withdrawals during the past month, while collections had been impossible. The officials and directors decided they could do business no longer under the circumstances, and concluded that in the interests of the patrons and themselves it would be better to suspend without further delay. While they hope to be able to resume after the storm has blown over, they are not able to state anything definite. The closing of the Milwaukee National Bank was a surprise, even to some of the stockholders. J. M. Perees, who owns a block of the bank's stock, says there is no reason why the bank should have closed except that the officers were afraid to stand of run. A statement of a few days ago showed that the bank had assets in excess of liabilities amounting to between $500,000 and $600,000. People who were not posted could not believe the bank, which was one of the oldest in the city, had failed, and scores of people walked into the entrance, read the brief notice announcing the bank's suspension, and walked out again. KNOXVILLE, TENN., July 20.-The State National Bank closed this morning. The notice posted on the doors stating "The bank has closed for liquidation. Deposiand tor will be paid in full. Liabilities assets not known outside. MILWAUKEE, WIS., July 20.-Judge Noves, president of the Milwaukee National Bank. has given out the following statement for publication: This bank consider perfectly solvent. It has $300,000 assets above liabilities. In ordinary times it would pay all depositors in full within three months, leaving a surplus of two hundred cents on the dollar for distribution among the stockholders, The reason for closing to-day is the one that has been so much repeated in the last sixty days that the public know it without being told. The shrinkage and withdrawal of deposits and the inability of customers to meet their obligations to the bank led the directors to the conclusion that it is best for the interest of all concerned to close the doors at this time. Fortunately depositors in this bank are such that no one will be seriously injured bv delay in obtaining their money. A meeting of the stockholders will doubtless be called soon to vote on the question of a resumption of the business or of going into voluntary liquidation. The Controller of Currency has been notified of the situation." LOUISVILLE, Ky., July 22.-The Kentucky National bank, capital $1,000,000, has suspended payment. No statement. There is no excitement, and all others regarded as all right. MILWAUKEE, WIS., July 22.-The South Side Savings bank opened as usual this morning, but closed their doors at 10:30. The report of the bank, made on the first Wednesday of this month. is as follows: Assets, loans and discounts, $781,325.30; due from brokers on call loans, $65,000; over-drafts, $3,948; United States and other bonds on hand, $15,000; banking house and fixtures, $7,974.02; due from banks and bankers, $7,916.38; cash items, nickels and pennies, $735.21 checks on clearing house, $40,825.73; specie, $23,720; United States and other National bank notes, $162,520; total, $1,158,965.17. Liabilities, $100,000; undivided profits, $12,500; due depositor on demand, $286,012.46; due creditors on time, $785,452.71; due all others not included under above headings, $25,000; total, $1,158,965.17. RUSSELL, KAS., July 22.-The First National Bank of this place closed this morning and was taken possession by C. M. Sawyer, on order of the comptroller of currency. No statement is made. NEW YORK, July 22.-The weekly statement of the associated banks shows the following changes: Reserve, increase, $3,012,550; loans, decrease, $4,808,300; specie increase, $1,584,400: legal tenders, increase, $503,700; deposits, decrease, $3,697,800; circulation, increase, $129,000. The banks are now $1,256,550 below the requirements of the 25 per cent. rule.

4. July 23, 1893 The Morning Call San Francisco, CA
Article from The Morning Call, July 23, 1893

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AND LOUISVILLE. MILWAUKEE A National Bank Fails in Each of These Cities. MILWAUKEE, July 22.-The Milwaukee National Bank failed to open its doors this morning. The report of the bank made July 12 shows the following: Resources, $1,965,386; liabilities. deposits, $723,998; due other banks, $196,910: other liabilities, $445,048; capital stock, $250.000; surplus, $250,000; undivided profits, $99,439. When it became known that the Milwaukee National had suspended a run was inaugurated on all the leading banks of the city. The Southside Savings was unable to stand the strain and closed its doors at 10:30 A. M. The report of this bank, made the first Wednesdav in this month, showed: Resources, $1,158,965; liabilities due depositors $1,021,465, due others $25,000; capital stock, $100,000; undivided profits, $12,500. The situation changed for the better as the day wore on. The run on the Merchants' Exchange, which was the heaviest, subsided in consequence of the posting of a guarantee notice by the leading citizens. The other bank where the run was heavy was the Second Ward National, in which were mostly small German depositors; but it has the backing of the big brewers, and no danger is apprehended. President Noyes of the Milwaukee National has given a statement for publication, in which he says the bank is perfectly solvent. with assets of $500,000 above liabilities, but in the present strained condition of affairs it was thought best to close the doors. LOUISVILLE, Ky., July 22.-The Kentucky National Bank, capital $1,000,000. has failed. There is no statement and no excitement. The other banks are considered all right. It is thought the bank will be able to resume shortly. The bank is a Government repository. In the statement published July 16 Governmen: deposits were placed at $191,731; deposits of United States disbursing officers, $138,268; cash on hand, over $85,000; deposits subject to check. $311,695; loans and discounts, $1.719,966. There was no excitement and no one would have suspected that a bank had closed up but for the crowd of loafers on the sidewalk. The suspension has been expected, as the bank has a large amount of paper, which, though gilt-edged, could not be realized on. President Fetter said to an Associated Press representative that he had full confidence in the solvency of the bank, and believed that business would be resumed as soon as an examination had been made by the Bank Examiner and the bank's condition passed upon by the Comptroller. KNOXVILLE, Tenn., July 22.-The State National Bank failed this morning. The notice on the door says: "The bank is closed for liquidation. The depositors will be paid in full." The cause of the suspension is the withdrawal of $20,000 yesterday. Last night the other banks offered $40,000 assistance, but it was not accepted. The run began at the opening

5. July 23, 1893 The Daily Morning Astorian Astoria, OR
Article from The Daily Morning Astorian, July 23, 1893

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the leading banks in the city. The South Side Savings Bank closed its doors at 10:40. The situation seems better this afternoon. The run on the Merchants' Exchange, which was the heaviest, subsided in consequence of the posting of a guarantee notice of leading citizens. The Second Ward National. in which are mostly small German depositors, has the backing of the big brewers, and no danger is apprehended. President Noyes, of the Milwaukee National, has given a statement for publication in which he says the bank is perfectly solvent, with assets of half a million above its liabilities: but in the present strained condition of affairs it was thought best to close the doors.

6. July 23, 1893 The Sun New York, NY
Article from The Sun, July 23, 1893

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MORE BIG BANKS CLOSED. THE MILWAUXEE AND KENTUCKY NATIONAL BANKS QUIT. Runs Throughout the Day In MilwankeeThe South Side Savings Also Goes Us der-Both Milwaukee Banks Were Com sidered Sound-The Kentucky National Has Been in Straits Two Years-0 her Suspensions In the South and Went MILWAUKEE. July 22.-Two more banks failed to-day. and there were runs on the leading banks of the city. especially the German-American and Merchants' Exchange. The Milwaukee National Bank did not open its doors this morning. and the South Side Savings Bank suspended at 101/2. The Milwaukee National. of which C. J. Bradley is President had A capital of $250.000, and was considered one of the soundest instie tutions in the city. Its failure created much surprise. The July 12 report of the condition of the bank showed total resources. including loans. discounts. overdrafts, and unsecured accounts. bonds to secure circulation due from other banks. etc., of $1,965,385.76. Liabilities were placed at the same figures, including Individual deposits subject to check. $413,836: demand certificates of deposits. $310.161: due other national banks and bankers. $198,890. George H. Noves was President, G. McClure. oashier. and George H. Noyes and J. H. and J. D. Imbusch. directors. The officers of the South Side Savings Bank are President G. A. Trumpff and Cashier J. B. Koetting. each of whom holds $50,000 of stock in the bank and are the only stockholders. The semi-annual statement made July 1 placed the liabilities at $1,158,955.17. Of this $286,012. 48 was due to depositors on demand and $735,452.71 on time. President G. C. Trumpff in referring to the trouble said: "Since the Plankinton Bank closed we paid out in savings and certificates over $350,000 besides large drafts made on us by commercial customers. We have since July 15 paid out in savings over $120,000 besides other certificates. When the Commercial Bank closed we had a hiu run here and paid out every cent We had in the house yesterday. The savings depositors and the commercial depositors commended to check against us heavily. and in addition to the money we had on hand we were compelled to raise $6,000 to satisfy the demands of the day. We made very good connections during June and July. and our coinmercial creditors did everything to give us hearty support. We could not collect money enough. however. to pay all demands which were made on us. and therefore were compelled to suspend. I shall move for the appointment of a receiver as soon as possible. and then shall he able to make n statement for our creditors. In sofar as I am able to say at this time the condition of the bank is good." The Milwaukee National acted as the clearing house. and the Wisconsin National was promptly named to take its place in this eapacity. The news of the trouble in these two institue tions. together with the failure of the Commercial Bank and H. IM. Beniam yesterday. started runs on A number of the other banks. Crowds gathered in front of the GermanAmerican. Merchants' Exchange. and Second Ward banks. but by noon the excitement had in a measure subsided. and A general feeling of confidence in the security of these places of deposit prevailed. A notice was posted on the doors of the Merchants'Exchange Bank which said the undersigned, directors of the bank. were personally responsible for moneys UAposited. The notice was signed by five die rectors. This had a quieting effect. and by means of a few policemen the erowd was considerably lessened. The depositors in the Second Ward Bank are mainly German working people. who seemed to have become pania-stricken. despite the fact that the bank is backed by Milwaukse's wealthy brewers. who have given n personal guarantee for everything in the bank. The closing of the Milwaukee National was a surprise, even to some of the stockholders

7. July 23, 1893 New-York Tribune New York, NY
Article from New-York Tribune, July 23, 1893

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MILWAUKEE STILL EXCITED. TWO MORE BANKS CLOSED AND RUNS MADE ON MANY OTHERS GENERAL SURPRISE AT THE SUPPENSION OF THE MILWAUKEE NATIONAL-RUNS ON TWO INSTITUTIONS CHECKED BY STOCKHOLDER GUARANTEES. Milwaukee, July 22.-The Milwaukee National Bank failed to open its doors this morning. The South Side Savings Balik failed at 10:30°a. m. Runs, which started on all the banks early in the day, were still in progress this afternoon. The crowds at several of the banks had increased in consequence of the spread of the news that the South Side Savings Bank and Milwaukee National Bank had failed. The run on the Merchants' Exchange Bank was probably the heaviest, but the crowd at the Second Ward Bank was nearly as large. The Merchants Exchange Bank paid out money freely. and its officers said they were confident that they would be able to meet every demand. The depositors in the Second Bank are mainly German working people, who seem to have become panic-stricken, despite the fact that the bank is backed by Milwaukee's wealthy brewers, who have given a personal guarantee for everything in, the bank. The run on the Merchants' Exchange Bank subsided later, in consequence of the posting of a guarantee signed by Charles Pfister, the Vogels, John Black, Julius Goll and other wealthy stockholders. The closing of the Milwaukee National Bank was a surprise even to some of the stockholders. J. M. Pereles, who owns a block of its stock, says there is no reason why the bank should have closed except that the officers were afraid to stand a run. A statement a few days ago showed that the bank had assets in excess of the liabilities amounting to between $500,000 and $600,000. People who were not posted could not believe that the bank, which was one of the oldest in the city, had failed, and scores of men walked into the entrance, read the brief notice announcing the bank's suspension and walked out again. Judge Noyes, president of the Milwaukee National Bank, has given out the following statement for publication: This bank I considered perfectly solvent. It has $500,000 assets above liabilities. In ordinary tinics it would pay all depositors in full within three months, leaving a surplus of 200 cents on the dollar for distribution among the stockholders. The reason for closing to-day is the one that has been so much repeated in the last sixty days, and the public know it without being told. The shrinkage and withdrawal of deposits and the inability of customers to meet their obligations to the bank led the directors to the conclusion that it is for the best interest of all concerned to close the doors at this time. Fortunately deposits in this bank are such that no one will be seriously injured by delay in obtaining his money. A meeting of the stockholders will doubtless be called soon to vote on the question of a resumption of business or of going into voluntary liquidation. The Controller of the Currency has been notified of the situation. The officers of the South Side Savings Bank are: President, G. A. Trumpff: cashier, J. B. Koetting. They each hold $50,000 of stock in the bank, and are the only stockholders. The semi-annual statement made on July 1 places the liabilities at $1,158,965.17. Of this the sum of $286,012 46 was due to depositors on demand, and $735,452 on time. There was a run on this bank during the flurry in June, at which Tme a large number of depositors gave notice of the proposed withdrawal of their money at the end of thirty days. President Trumpit said depositors had been making large withdrawals during the last month, while collections had been impossible. The officials and directors decided that they could do business no longer under the

8. July 23, 1893 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, July 23, 1893

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Sundry Banks Suspend. [By telegraph to the Dispatch.] MEMPHIS, TENN., July 22.-The Citizens' Bank of Jellico, Tenn., the only banking institution in that place, failed to open for business yesterday. No figures known. GREELEY, CoL., July 22.-The Union Bank made an assignment yesterdav. It 18 thought the step was voluntarily taken to avoid a contingency that might arise should some creditor take advantage of the attachment law. The bank is perfectly solvent and not a depositor will lose a dollar. VERNON, TEX., July 22.-The State National Bank of Vernon closed its doors yesterday. Every cent of money was paid out, except ten cents, before the doors were closed. The failure was due to inability to realize on securities. The directors state that depositors will be paid in full. LOUISVILLE, Kr., July 22.-The Kentucky National Bank, this city, closed its doors this morning. Capital stock $1,000,000. paid up. This bank is also a government depository and its last statement showed $190,000 to the credit of the government. The loans and discounts outstanding amounted to $1,719,966, and the surplus was $108,500. MILWAUKEE, WIS., July 22.-The SouthSide Savings Bank did not open its doors this morning. There is a heavy run on the German-American and Merchant's Exchange banks. KNOXVILLE, TENN., July 22.-The State National Bank closed this morning atter opening four minutes. A notice was posted on the door saying: This bank has closed for liquidation. Depositors will be paid in full." MILWAUKEE, WIS., July 22.-The Milwaukee National Bank closed its doors this morning. LAMPASAS, TEX.. July 22.-The private banking-house of J. & L. W. Galbraith failed to open its doors yesterday having made an assignment to J. I. Campbell. Liabilities $60,000; assets. $120,000. A run on the First National Bank started, but it was fortunately in a position to withstand all demands. The depositors in Galbraith's Bank will be paid in full. TOPEKA, KAN., July 22.-The First National Bank of Anthony closed its doors yesterday. Assets, $154,000; liabilities, $50,000. RUSSELL, KAN., July 22.-The First National Bank, of this place, closed this afternoon and was taken possession ot by C. M. Sawyer on the order of the Comptroller of the Currency. No statement is made.

9. July 23, 1893 Fort Worth Gazette Fort Worth, TX
Article from Fort Worth Gazette, July 23, 1893

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BUSINESS. Milwaukee Banks. MILWAUKEE, Wis., July 22.-The Milwaukee National bank failed to open its doors this morning, and runs immediately began upon other leading banks in the city. The report of the condition of the bank made July 12, showed resources, including loans and discounts, of $1,404,341.78 and a total of $1,965,385.76. Liabilities, including the capital stock of $250,000, and surplus of $250,000; undivided profits, $99.439.32; individual deposits subject to check, $413,836.72. and demand certificates of deposits of $310,161.55; or a total of $1,965,385.76. George H. Noyes is president of the bank, and J. McClure cashier. The South Side Savings bank opened as usual this morning, but closed its doors at 10:30. The report of the bank made the first Wednesday of this month shows resources, total, $1,158,905.17. with Habilities including capital stock of $100,000: undivided profits, $12,500; due depositors on demand, $286,012.46: due depositors on time, $733,452.71. or a total of $1,158,965.17. G. C. Trumpf is president, and J. B. Koetting, cashier. The crowds at the several banks increased in consequence of the spread of the news that the South Side Savings bank and the Milwaukee National bank had failed. The run on the Merchants' Exchange bank was the heaviest, but the crowd at the Second Ward bank was nearly as large. The Merchants' Exchange bank paid out money freely and the officers are confident they will be able to meet every demand. Depositors in the Second Ward bank are mainly German working men, who seem to have become panic-stricken despite the fact the bank is backed by Milwankee's wealthy brewers, who have given their personal guarantee for everything the bank contains. President Trumpf of the South Side Savings bank says the depositors have been toaking very large withdrawals during the past month. while collections have been small and deposits Hght. The officials and directors décided they could not do business long under the circumstances and concluded, in the interest of their patrons and themselves. that it would ba better to suspend without further delay. The run on the Merchants' Exchange bank subsided in consequence of the posting of a guarantee signed by Charles Pfister, the Vogels, John Black, Julius Goll and other wealthy stockholders. A repetition of the guarantee made at the time of the Plankinton bank failure by Captain Pabst and other brewers was made at the Second Ward Savnies bank. The crisis is now doubtless passed in Milwankee, as today's failures cleared the air of all menace for some time to come.

10. July 24, 1893 The Madison Daily Leader Madison, SD
Article from The Madison Daily Leader, July 24, 1893

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SHUT THE BANKS. Milwaukee National and South Side Savings Banks Close Their Doors. Withdrawal of Deposits and Inability to Realize on Securities the Cause. First National Bank of Louisville, With $1,000,000 Capital, Also Assigns. MILWAUKEE, July 24.-The Milwankee National and the South Side Savings banks have closed their doors. The Milwaukee National acted as the clearing house and the Wisconsin National was promptly named to take its place in this capacity. The news of the trouble to these two institutions, together with the failure of the Commercial bank and William H. M. Benjamin Friday, threw the city into a small panic and runs were at once started on a number of the other banks. Crowds soon gathered in front of the German-American, Merchants Exchange and Second ward banks, but at noon the excitement had in a measure subsided and a general feeling of confilence in the security of those places of deposit prevailed. The city, however, was full of wild rumors, impossible to verify, and probably for the most part without foundation. Responsible For Deposits. At 11 o'clock notice was posted on the doors of the Merchants Exchange, on which there had been a heavy run: "The undersigned directors of the Merchants Exchange bank are personally responsible for moneys deposited in this bank." Signed by Rudolph Nunnemacher, Reid Vogel, Jr., Julius Golt, Charles F. Pfister, Frank J. Kipp. This had a quieting effect and by means of a few policemen the crowd was considerably lessened. The statement on the doors of the Milwaukee National was simply: "By order of the board of directors this bank is closed." The statement o the condition of this bank on July 12 last gave the liabilities as $1,965,383.76 Of this the capital amounted to $200.000, the surplus fund $250,000, undivided profits $99,439.32 national bank notes outstanding $89. 250; deposits $1,045,898.33; notes and bills discounte.1 $230,798.11. Statement of President Noves. George H. Noyes is president of the bank, and J. McClure cashier. President Noyes, in referring to the condition of the Milwaukee National bank, said: "This bank I consider perfectly sound. It has $500,000 in assets above the liabilities. In ordinary times it would pay all depositors in full within three months, leaving a surplus of 200 cents on the dollar for distribution among its stockholders. The reason for the closing is the one that has been so much repeated in the last 60 days, that the public know it without being told. The shrinkage and withdrawals of deposits and the inability of customers to meet their obligations to the bank have