6980. Merchants Bank (Boston, MA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
October 2, 1873
Location
Boston, Massachusetts (42.358, -71.060)

Metadata

Model
gpt-5-mini
Short Digest
459bdd21ae4d8739

Response Measures

None

Description

Article 1 (Oct 2, 1873) reports Boston banks, including the Merchants' (Merchants Bank), adopting a precautionary suspension of specie payments/entrancy payments via the Clearing House and issuing loan certificates in response to a drain of greenbacks and New York banks' actions. No run on Merchants Bank is described; this is a collective suspension prompted by systemic currency drain (a macro shock). Article 2 (Nov 24, 1881) mentions the Merchants' bank of Boston refusing to act as custodian for a syndicate, causing distribution of gold coin — not a run or suspension, but noted in events. I do not infer permanent closure; the 1873 action appears as a precautionary suspension likely temporary, so episode classified as suspension_reopening.

Events (2)

1. October 2, 1873 Suspension
Cause
Macro News
Cause Details
Steady drain of greenbacks from Boston banks and threatened increased demands for currency; New York banks picking up checks on Boston banks prompted precautionary suspension of specie/entrancy payments and issuance of loan certificates.
Newspaper Excerpt
a meeting of the Presidents of the several banks was therefore held at the Clearing House ... the Boston banks ... do from this date and until further action adopt the same measure. ... a committee ... have the power to issue loan certificates to the amount of $10,000,000
Source
newspapers
2. November 24, 1881 Other
Newspaper Excerpt
Fifteen tons of gold coin were distributed among the bankers of Boston, owing to the refusal of the Merchants' bank of that city to continue to act as custodian for the syndicate formed at the commencement of resumption.
Source
newspapers

Newspaper Articles (2)

Article from Ellsworth American, October 2, 1873

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Article Text

The Situation in Boston. In view of the steady drain of greenbacks from the banks of this city. and the threatened increase in the demands for currency, it became necessary as a precautionary measure to adop the policy being pursued by the banks in New York. The New York banks have been picking up checks upon Boston banks, and large sums of greenbacks have been sent to that city. It is rimored that séveral parties in State street are engaged in locking up currency. A meeting of the Presidents of the several banks was therefore held at the Clearing House. a 11 o'clock on Saturday, when the following resolutions were adopted by a unanimous vote: Whereas the banks in all the large cities in the United States have deemed it prudeut and expedient to suspend entrency payments for large amounts, therefore Resolved. That the Boston banks, as a precautionary measure for themselves and the mercantile community and to prevent the consequent drain of currency from them. do front this date and until further action adop: the same measure. Resolved, l'hat a committee of five be appointed oy the Chair, who shall have the power to issue loan certificates to the amount of $10.000 000 upon substantially the same basis as issued by the banks inNew York city. The Chairman appointed the following gentlement as that committee: Franklia Haven, of the Merchants'; George C. Richardson. of the Union; B. E. Bates. of the Bank of Commerce; Thomas Lamb. of the New England; A. I. Benyon, of the Exchange; and Josph H. Beal, of the Second National.


Article from The Worthington Advance, November 24, 1881

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Article Text

CURRENT EVENTS. Mr. N. F. Akselson, formerly of the St. Paul Nordvesten, has gone to Sweden, and will return in course of a few months with a bride. Mary Francis McVicker, wife of Edwin Booth, died Sunday at the residence of her parents. The remains were taken to Chicago for interment. James L. Ridgely, of Baltimore, since 1841 grand corresponding and recording secretary of the grand lodge F. of the United States, is dead. The departure for Liverpool of Rev. Dr. Henry Highland Garnett, minister to Liberia, was appropriately celebrated by the colored people of New York. Mrs. Johanna Mannheimer. mother of Mrs. L. Goodkind, and of Messrs. Robert, Emil and Jacob Mannheimer, of St. Paul. died in Chicago on Wednesday at the age of 70. The fine, new and elegant passenger station of the St. Paul, Minneapolis & Manitoba road at Fargo, was opened for business last Saturday It cost in the neighborhood of $3,500 and is one of the best west of St. Paul. Fifteen tons of gold coin were distributed among the bankers of Boeton, owing to the refusal of the Merchants' bank of that city to continue to act as costodian for the syndicate formed at the commencement of resumption. The six healthiest cities of this country are alleged by an eastern paper to be Knoxville, New Haven, Poriland, San Francieco, Cleveland, and Lawrence. The unhealthiest are Charleston, Memphie, Lyon, New York and St. Louis. The stockholders of the St. Paul barvester works have elected the old board of directors as follows: E. M. Dean, C. B. Newcombe, W. B. Dean, C. H. Bigelow, L. E. Reed, H. L Pilkington, D. R. Noyes, Walter Mann, W. Goodhue. In accordance with instruction from the general of the army, dated the 10th inst., Capt. W. E. Dougherty, First infantry, having been relieved from duty as acting Indian agent at Crow Creek agency, will proceed without delay to join his company. Mr. Ducon, cashier of the Corbin Banking company of New York, saye the concern would not lose more than $500 or possibly $1,000 by Tyner, the correspondent of the firm at Albert Lea The banking company has cept on a special man to look out for its interests. NEWS FROM WASHINGTON. Sepator and Mrs. Windom expect to occupy their elegant new house about the 1st of December. The report of the burean of agriculture shows & falling off of 25 per cent. in the crop, as compared with last year. It is underetood that an additional case of embezzlement, amounting to $40,000, has been found against Cant. Howgate, and the matter will be laid before the grand jury. Harrison Johnston of Columbus, Mies., through ex-Secretary of the Treasury Bristow, is asking for a bill of particulars from the government in & suit instituted against him to recover nearly $2,000,000. It is claimed that Johnston as treasury agent failed to account the department for a great quantity of cottou seized. last the At On Monday president resignation. accepted The torney General McVeagh's employes of the department called upon him and made official farewelle, and he turned the department over to the charge of Solicitor General Phillips, who will be acting attorney general until the appointment of a successor to IacVeagh is made. Judge Folger has taken possession of the office of secretary of the treasury. The oath was administered by the notary of the department. After. this formality was over Assistant Secretaries French and Upton introduced the heads of the bureaus and Secretary Folger went right to work signing the official mail for the day. Secretary Windom was present when Secretary Folger took possession. There seems to be a growing impression that Senator Mahone may be tendered a cabinet position, with view of encouraging further risings against the democracy in the south, but Senator Blair, who is a warm friend of Mahone, and has talked with him a great deal about his political aspirations, says he does not believe Mahone would leave the senate with nearly a full term ahead of him to accept a cabinet position. The president issued an order, under the tenure-of-office act, suspending O. A. Haaley, poetmaeter Lit.) Rock, Ark., and directing Inspector Cameron of the St. Louis district to take charge of the office until the VACANCY thus created shall be filled by a new presidential appointment. The order was based upon a special agent's report, alleging that Hadley had taken vouchers from clerks in his office for larger sume than he paid them. The controller of the currency in his annual report will devote considerable space to the Newark National bank failure, especially with its relations to the responsibility of directors. He will take the position that the government cannot stand a bank examiner or a policeman at the door of every bank, and the law contemplates that the directors shall do their duty. Some of the comments upon the negligence of directors and their ignorance of the affairs of the bank will be quite severe. Many wholesale dealers in flour at the east