7823. Farmers & Merchants Bank (Benton Harbor, MI)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
March 1, 1933*
Location
Benton Harbor, Michigan (42.117, -86.454)

Metadata

Model
gpt-5-mini
Short Digest
ca6006b0e0eac5ba

Response Measures

None

Description

Articles describe the Farmers & Merchants Bank of Benton Harbor being closed by federal authorities during the national bank moratorium in March 1933 and placed in receivership/conservatorship; later items describe receiver actions and dividend payments. No mention of reopening — instead receivership and liquidation/distributions occur, so classify as suspension leading to closure/receivership. Bank type not explicit in text.

Events (3)
1. March 1, 1933* Suspension
Cause
Government Action
Cause Details
Closed by federal authorities during the national bank moratorium in March 1933 (government action/closure).
Newspaper Excerpt
the government closed the bank... the federal bank inspectors passed the & M. bank on December 31, 1932...when the government closed the bank.
Source
newspapers
2. November 18, 1933 Receivership
Newspaper Excerpt
When W. Payne winds up the details of his work as ... for the old Farmers and Merchants bank in Benton Harbor ... Mr. Payne, as receiver, having charge both trusts. ... Expected Before Holidays ... ten per cent dividend ... for the American national depositors ... Mr. Payne, as receiver, having charge both trusts. ... the costs of the conservatorship ... under Payne ... will be borne by the old bank. (Nov. 18, 1933 article).
Source
newspapers
3. May 31, 1934 Other
Newspaper Excerpt
Seeks to Collect Frozen Tax Money in Benton Harbor Bank ... the $59,324.72 which was on deposit in the Benton Harbor bank at the time of the national bank moratorium in March, 1933. (May 31, 1934 article).
Source
newspapers

Newspaper Articles (3)
1. June 29, 1933 The Herald-Press Saint Joseph, MI
Article from The Herald-Press, June 29, 1933

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Article Text

but am not worthy of it," Attorney Harvey Preston Replies "I didn't intend to say anything came here today to behave myself," Supervisor Preston declared. "But would like to have Mr. Harvey answer few If he can. Do you know what bonds the F. bank has?" "I know the municipal, government bonds, and real estate bonds, but not in detail," replied Attorney Harvey. "Do they have any Chinese bonds?" don't know whether they do or not." "Do you know whether the government charged off $400,000 worth of bonds held by the bank?" "When?" "In March, after the bank closed." "I do know this: The federal bank inspectors passed the & M. bank on December 31, 1932, and that the bonds which were passed then did not change in value between then and March 4," Attorney Harvey replied. Blames U. S. For Delay In response to by Supervisor Clarence Bartz of Lincoln township as to when part of the county's funds might be released from the bank, Attorney Harvey said the delay was due to the federal "It is that there now is approximately million dollars in which could be returned the depositors. The county had funds there for which to pay certain bonds which came due on March 15. The bank had that cash ready to be paid when the government closed the bank. It was deposited with the federal reserve. "It my opinion that there is struggle between two political ideas. One that Washington should control the bank, and one that should be controlled by the stockholders and depositors. am not director in the F and M. bank, but have been attorney for the bank for 30 years. In the 40 years that the bank has existed, the Farmers and Merchants bank has stood every test. went through five runs, when every other bank in Benton Harbor and St. Joseph collapsed. It was passed by the federal bank examiners on December 31, 1932. It had the full confidence of the people and its officers.' "Why bank prepared to meet every normal demand upon should be closed, Washington itself must answer. "And now to answer your question as to when the county may expect to have some of its funds released. You will get it when Washington sees fit to release it, and not before. Accept Compromise The board of supervisors this morning voted unanimously to accept compromise from the American Surety Co. involving a dispute over

2. November 18, 1933 The Herald-Press Saint Joseph, MI
Article from The Herald-Press, November 18, 1933

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Article Text

AMERICAN NAT'L BANK DIVIDEND SOON IS HINTED Depositors in B. H. Bank May Get Payment Before Holidays When W. Payne winds up the details of his work as tor for the old Farmers and Merchants bank in Benton Harbor in day he's going to turn his couple dividend distributions for the benefit of more bank depositors. ten per cent dividend is in prospect for the of the American National of Benton Harbor, and similar distribution in prospect the depositors of the Buchanan Mr. Payne, as receiver, having charge both trusts. Expected Before Holidays It's expected that the two dividends will be before the holidays, although Mr. Payne will hazard no guess as the got to get all through with this job (referring to the M. before turn my attention to other matters," he said today. However, it is known the ten per cent dividend for the American tional depositors, who have already had 35 per cent, has been in prospect for some time. of the sister city's preferred claim against the American recent transaction, has hurried along the chances another American National With his duties over as the conservator, Payne goes back receivership duties in Joseph, Benton Harbor and He the only national bank receiver the state who has three trusts While he was in charge of the hired R. formerly trust officer of the American National later with the Benton Harbor State, to take charge of the Buchanan trust. recently landed job with the federal land bank at Paul and has gone there, while his place has been filled at Buchanan L. Gose, of Denver, Colo. The costs of the conservatorship of the under Payne, will be borne by the old bank. The retiring conservator says this operating cost will be amply sustained by the earnings of the M. while was closed, interest other earnings going on even though the bank was practically standstill outside of its trust business. Thus the cost of the not have come out of assets which Payne turns over to the trust committee for liquidation for the benefit of the old M. depositors.

3. May 31, 1934 The Herald-Press Saint Joseph, MI
Article from The Herald-Press, May 31, 1934

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Article Text

SUIT OF COUNTY TO GET $29,000 IS HEARD TODAY Seeks to Collect "Frozen" Tax Money in Benton Harbor Bank Circuit Judge Charles E. White was today hearing testimony in the suit filed by Berrien county against George Larkworthy, Benton Harbor city treasurer, and the Standard Accident Insurance company to determine whether the bonding company is liable for $29,000 of "frozen" state and county taxes in the Farmers & Merchants bank of Benton Harbor. The suit was filed many months ago, and the city of Benton Harbor named as one of the defendants. Judge White, however, dismissed the city of Benton Harbor as a party defendant. The county seeks to prove that the Standard Accident Insurance company, the-surety on Treasurer Larkworthy's special tax collection bond given for the protection of state and county taxes collected by the sister city treasurer, is liable for the remaining of the $59,324.72 which was on deposit in the Benton Harbor bank at the time of the national bank moratorium in March, 1933. Since then one-half of the amount has been paid The county 15 represented by Attorney R. E. Barr, Attorney H. S. Gray and Prosecuting Attorney Harvey W. Holbrook. Attorney Wilbur M. Cunningham, Benton Harbor city attorney, counsel for Larkworthy and the Standard Accident Insurance company is represented by Attorney Edward Moseman, of Detroit, and the law firm of Mason, Alexander, McCaslin & Cholette.