Farmers & Merchants Bank (Lawrence, MI)

Episode Information

Episode UID
74070571371
Episode Type
Run → Suspension → Closure
Bank Type
private
Bank ID
7407057 routing
Routing Number
74-0705
Start Date
March 31, 1914
Location
Lawrence, Michigan (42.219, -86.051)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
cb1484108c8f58f4

Response Measures

None

Description

OCR corrected obvious errors (e.g., 'beak' -> 'bank').

Events (3)
1. March 31, 1914 Run
Cause
Rumor Or Misinformation
Cause Details
Idle gossip and a rumor (denied merger with New Home bank) prompted depositors to withdraw funds from distant points.
Measures
President Welch closed the doors and posted sign saying institution would open Monday.
Newspaper Excerpt
Idle gossip started a run on the Farmers & Merchants' bank of Lawrence ... farmers drove from points many miles distant to withdraw their deposits.
Source
newspapers
2. March 31, 1914 Suspension
Cause
Rumor Or Misinformation
Cause Details
Closure resulted from inability to meet heavy withdrawals triggered by rumors about insolvency/merger.
Newspaper Excerpt
Unable longer to meet the unprecedented demand for cash, President Welch closed the doors and hung out a sign stating that the institution would be opened Monday.
Source
newspapers
3. April 1, 1914 Receivership
Newspaper Excerpt
has closed its doors and gone into the hands of receivers ... Mosler, of this place, receiver, brought investigation of the condition, stated today that he believed every depositor would ... be paid in full.
Source
newspapers

Newspaper Articles (2)
1. March 31, 1914 The Detroit Times Detroit, MI
Article from The Detroit Times, March 31, 1914

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Article Text

GOSSIP ENDS IN FAILURE OF BANK Lawrence Institution Closes Its Doors After "Run"-Can Meet All Demands PAW PAW, Mich., March 31(Special)-Idle gossip started a run on the Farmers & Merchants' beak of Lawrence,one of the oldest and SUD posedly. best-established banks in this section, which resulted in the closing of the institution and the appointment of a receiver. Mosler. of this place, receiver, brough investigation of the condition, stated today that he believed every depositor would rull HYWOOK prost of the. bank, is prostrated by the disaster which has overcome institution. Several Lawrence men recently started a bank to be known as the New Home bank and it was reported at that time that the private institution would be merged with it. This report was denied Friday, and a rumor that the old bank was insolvent started. Farmers drove from points many miles distant to withdraw their de posits, neighbors having telephoned them the report of the bank's alleged condition. Unable longer to meet the unpreco dented demand for cash, President Welch closed the doors and hung out a sign stating that the institution would be opened Monday. He falled to open for business Monday morning, and a receiver was appointed. The new bank was to have opened Monday, but workmen were unable to open the big safe and it may be nov. eral days before the institution is ready to do business.

2. April 3, 1914 The Owosso Times Owosso, MI
Article from The Owosso Times, April 3, 1914

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Article Text

RUN CAUSES BANK TO CLOSE New Institution Said to Be Partly Re. sponsible for Trouble. Paw Paw, Mich., April 1.-Farmers and Merchants Bank of Lawrence, Van Buren county. a private institution managed by James L. Welch. has closed its doors and gone into the hands of receivers. A new organization, the New Home State bank is alleged to have been partially responsible for a run on the Welch bank which was unable to meet liabilities of $10,000. The assets are about the same. It is believed the depositors will be paid in ruil.