7805. Old Merchants National Bank & Trust Company (Battle Creek, MI)

View Charter #7589 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
7589
Charter Number
7589
Start Date
March 14, 1933
Location
Battle Creek, Michigan (42.321, -85.180)

Metadata

Model
gpt-5-mini
Short Digest
381341a17bba6bd7

Response Measures

Capital injected, Full suspension, Books examined

Other: Comptroller-appointed conservator and formal reorganization/appointment of conservator to take charge of assets.

Description

Articles show the Old Merchants N.B. & Trust reopened after the March 1933 bank holiday (licenses to reopen), then experienced heavy withdrawals/rumors that forced appointment of a conservator and temporary closing on 1933-06-13. Subsequent reporting (July/August) discusses runs, rumors, investigation, and partial release of deposits and formation of a new bank—indicating the institution was reorganized/closed and replaced rather than a simple resumption of normal operations. I therefore classify this as a run leading to suspension and eventual closure/reorganization. Dates reflect newspaper publication dates; OCR errors in articles were corrected for clarity.

Events (7)
1. February 1, 1905 Chartered
Source
historical_nic
2. March 14, 1933 Reopening
Newspaper Excerpt
Among banks permitted to reopen were: ... Old Merchants National Bank Trust Savings Bank, United Savings ... National Bank Trust Co.
Source
newspapers
3. June 13, 1933 Run
Cause
Rumor Or Misinformation
Cause Details
Widespread untrue rumors in the city led to heavy withdrawals and a run on the bank.
Measures
Directors closed the bank for the day and requested appointment of a conservator; assets were 'impounded' pending reorganization.
Newspaper Excerpt
Following unprecedented withdrawals on the part of depositors, Old-Merchants National Bank Trust company this morning requested the Comptroller of Currency appoint conservator ...
Source
newspapers
4. June 13, 1933 Suspension
Cause
Government Action
Cause Details
Bank requested conservator be appointed by the Comptroller of the Currency; operations were suspended and assets placed under conservatorship.
Newspaper Excerpt
Withdrawals... Old-Merchants National Bank Trust company this morning requested the Comptroller of Currency appoint conservator to charge of its assets pending reorganization.
Source
newspapers
5. July 22, 1933 Other
Newspaper Excerpt
Investigation of rumors which had been prevalent in Battle Creek which caused run on the bank and the Central National bank last week and the fore part of this week.
Source
newspapers
6. August 25, 1933 Other
Newspaper Excerpt
An additional $7,000,000 will be made available with the opening of the new bank and the release of 100 per cent of the deposits of the City National and 50 per cent of the deposits of the Old Merchants National banks.
Source
newspapers
7. June 11, 1934 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (4)
1. March 14, 1933 The Cincinnati Enquirer Cincinnati, OH
Article from The Cincinnati Enquirer, March 14, 1933

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Article Text

RELEASES ARE GRANTED To Banks In Indiana And Mich- igan Cities. Chicago, March Federal Reserve Bank of Chicago tonight that permission had been given for the reopening of banks in cities tomorrow the Seventh District. Licenses reopen were granted banks five Illinois cities, five three Indiana cities, seven three Iowa cities, seven in four Michigan cities and six in three Wisconsin Among banks permitted to reopen were: Indiana: Fort National Bank Trust National Bank, Merchants National Bank, Fletcher Trust Company. Terre Haute First Bank. Michigan: Battle National Bank Trust Co., City National Bank Trust Old Merchants National Bank Trust Savings Bank, United Savings Kent Bank. National Bank Trust Co.

2. June 13, 1933 Battle Creek Moon-Journal Battle Creek, MI
Article from Battle Creek Moon-Journal, June 13, 1933

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Article Text

WENDELL BANK CONSERVATOR Withdrawals Have Forced Notice Stating That Heavy Of Is Posted At Request To Comptroller Currency Entrance As Institution Is Temporarily Closed By Resolution Of Board. Wendall Smith today was appointed conservator by Comptroller bank O'Connor for National Currency Washington, this afternoon. this city, announced board. chairman of Mr. of Smith, chairman committee the bank. With appointment conthe executive of the bank for the convenience the public on reopening similar that which prevailed during the bank moratrust basis, torium, expected tomorrow morning. Following unprecedented withdrawals on the of depositors, Old-Merchants National Bank Trust company this morning the quested the Comptroller Currency appoint conservator to charge of its assets pending reorganization. Notice to this effect posted at the bank entrance at the usual hour for opening. The closing of the bank came time when plans were temporary for which had the approval of Wilperfected reorganization, chief of the district examiners, from ChiTaylor, Stoddard, Washington, C., representing the Howard Corporation Michigan; and Howard Preston both of Chicago, of the Federal Delaney, deputy governors All these officials were with the Bank. plan which, by the way, is not likely to be materially affected by today's action. To Preserve Assets. All sorts rumors spread around the city, few of them based on facts, and withdrawals of deposits became serious deterrent. Directors of the bank, after series protracted sessions, decided that, order to preserve the assets of the bank. these withdrawals must checked before they destroy its liquid The decision not to open for business today reached soon after o'clock and came without warning to of those doing business with the institution. Money already on deposit, of course, remains "frozen' until organization plans are approved. stated today that depositors likely to lose their money. but will "impounded" untill reorganization is effected. Official Charge. William Taylor, of Chicago, is in charge affairs today He did come here to play part in closing of the bank, to papers in the An unexpected situation developed, which would have been in no serious had not been for the withdrawals being made by positors, amounting to sitent "run" on the bank. Many of these were from where banks not open, and the bank continued to until directors considered the interests the loyal depositors in danger and cided it better to close tempor- What Statement Shows. The last available statement of the bank showed sources of of which 686,504 cash or due from banks. This proud figure continued until bank moratorium set in. Frightened positors began withdrawing money, until several million dollars were despite Rooseappeal against hoarding. Smith, chairman the board. made the following statement today: Governor Comstock proclaimed the moratorium OldMerchants National Bank and Trust in very fortable said Mr. Smith. "Deposits were on the upward climb all during the months of December, January and February At the opening on March the moratorium, deposits were at the high mark. bank was the in the entire state license resume business first morning after the torium lifted. The license was based on the last examopen ination of National Bank Examiner Walker. whose report of the bank's condition on file in The bank has the same ton. at the present time, with exceptions, when the last was completed in Octoamination Withdrawals "Business was resumed usual, with the exception of anti(Please Turn to Next Page.)

3. July 22, 1933 Marshall Evening Chronicle Marshall, MI
Article from Marshall Evening Chronicle, July 22, 1933

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Article Text

JURY PROBE OF Prosecutor Has Made Investigation of Situation in Food City There that Prosepossibility cuting Attorney William Kearney of Albion may petition Judge Blaine Hatch to call grand jury Investigation into the Battle Creek banking situation No such petition has been filed date Prosecutor Kearney Battle Creek Thursday making investigation of rumors which had been prevalent in Battle Creck which caused run on the bank and the Central National bank last week and the fore part of this week. Mr Kearney in doubt to whether there sufficient basis for calling grand jury probe ports that depositors of the OldMerchants bank wanted an investigation to why the federal ernment that bank open after the federal bank day and then allowed It to close heavily discounted facts in connection to be that the bank permitted to open beacuse was good condition but that subsequent to the reopening after the bank holiday. heavy withdrawal funds not only on the part of small deppositors but also on the part of large depositors and particularly on the part of depositors whose deposits were large that withdrawal left their the bank in vulnerable The real and only basis for grand probe of the Battle jury Creek situation the spreading untrue rumors which caused the the other two banks there. Unquestionably the Central National and the City Bank of Battle Creek have evidence of the source of these rumors Whether they push the matter remains on Page

4. August 25, 1933 Battle Creek Moon-Journal Battle Creek, MI
Article from Battle Creek Moon-Journal, August 25, 1933

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Article Text

Final Push In New Bank Stock Campaign Is On Strenuous efforts are being made by members of the workers' committee complete the $750,000 stock subscription campaign for the proposed National Bank of Battle Creek by Saturday night. Although detailed report on the amount of stock remaining to be sold has been made. it was believed to be about 350 shares, representing $43,750. Officials of the bank committee. in discussing prospects for the pro. posed banking institution. pointed out that approximately $11,000.000 will be available in the community for potential deposit in the bank upon its opening. Approximately $4,000,000 in deposits were paid out to depositors since the original Michigan bank holiday, and an additional $7,000,000 will be made available with the opening of the new bank and the release of 100 per cent of the deposits of the City National and 50 per cent of the deposits of the Old Merchants National banks, they declared Bank organization workers com pared this total of approximately $11,000,000 with the fact that in Jackson only 30 per cent of the impounded $30,000,000 deposits have been made available, while in Grand Rapids $6,000,000 was made available on $12,000,000 of deposits. The workers also pointed out that with the $250,000 subscription to bank stock made by the Kellogg interests, the remaining amount of $500,000 required locally amounted to only per cent of the impounded assets.