8410. Merchants National Bank (Baltimore, MD)

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 1413
Charter Number: 1413
Start Date: March 1, 1867*
Location: Baltimore, Maryland (39.290, -76.612)

Metadata

Model: gpt-5-mini
Short Digest: 0ad08316

Response Measures

None

Description

Articles report a large, long-running defalcation (~$300,000) by officers (bookkeeper Wentz and paying-teller Rogers) discovered in early March 1867; press describes the bank as having suspended or broke down and being involved in failures/embezzlements. No article describes a depositor run. I therefore classify this as a suspension (failure) due to bank-specific adverse information (embezzlement) leading to closure/failure. Dates are taken from newspaper publication dates and in-text dates (March 4, 1867).

Events (3)

1. July 10, 1865 Chartered

Source: historical_nic

2. March 1, 1867* Other

Newspaper Excerpt: The Merchants' National Bank of Baltimore will not suspend business. The directors and stockholders are wealthy and will pay up the amounts of defalcation. ... A heavy defalcation in the Merchants' Bank of Baltimore has been discovered ... the defalcation amounts to $300,000. (press also reports the bank broke down from the effects of a series of defalcations.)
Source: newspapers

3. March 4, 1867 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Discovery of a long-running embezzlement/defalcation (~$300,000) by the book-keeper Samuel J. Wentz and paying-teller John H. Rogers (27 years). Led to the bank's breakdown/breach of trust and suspension/closure.
Newspaper Excerpt: A defalcation of $300,000 has been discovered in the Merchants' National Bank of this city ... The frauds run through a period of 27 years. The Bank will meet its liabilities
Source: newspapers

Newspaper Articles (7)

1. May 10, 1866 The Daily Dispatch Richmond, VA

Article from The Daily Dispatch, May 10, 1866

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Elvans, bought the stock, and gave a draft on the Merchants National Bank of Baltimore, where he had no deposits, for $5,000; but when presented, the draft was paid. Mr. Snow then signed over the $5,000 worth of stock to Mr. Huyck, which transfer was never entered on the books of the bank; and now Mr. Snow is responsible for $5,000, when he has no real interest, and has paid no money at all. He thought that a proper sifting of the matter would throw light on a great deal that was mysterious. Other national banks declare an annual profit of $50,000 to $80,000, but this bank declared a profit of only about $30,000, and was doing as good a business as most others. He did not believe that a single statement had been made to the directors by that bank that had not been falsified, and he thought that this might account for the means which enabled Mr. Huyck to board with his family and servants at an expensive hotel, at a cost of at least $10,000 a year, and keep a carriage and horses, which he confessed cost $3,000, on a salary of $2,000 a year. He hoped the Board would take some action in the matter. When banks fail through the dishonesty of its officers, nothing should be left undone to bring the authors of the calamity to punishment, and he had no hesitation in saying that the suspension of the Merchants National Bank was one of the most astounding frauds ever committed on any community. After some little discussion on the subject, without taking any further action, the Board adjourned.

2. July 16, 1866 New Orleans Daily Crescent New Orleans, LA

Article from New Orleans Daily Crescent, July 16, 1866

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Foreign Exchange-The movement in Sterling and Francs has been partially suspended since our last. Offerings of commercial bills were much smaller than had been anticipated, in view of recent heavy shipments of cotton to Europe, and the inquiry at bank was, if anything, still further restricted. Sales were exceedingly light throughout, and the market closed languid at 165@166 for bank Sterling 161@163 for clear bills 154@157 for bill of lading bills ; 3.35f@3.30f. for bank Francs, 3.45£@3.40£ for outdoor Francs. Domestic Exchange-Increased weakness and inactivity are the most prominent features of the movement in Domestic Exchange. The market on Saturday was but very poorly supplied with out door offerings, and the demand at bank for remittance purposes disclosed a material and rather general diminution at somewhat easier rates. The closing figures on Saturday evening were 1@4 F cent. premium at bank, and par@1 For cent. discount out of doors for sight checks on New York, Philadelphia and Boston. Uncurrent Notes and Securities-Transactions in the former have been of a very limited character since our last, but the movement in the latter was active both at the Brokers' Board and upon the street Most of the leading stocks and bonds are still very firmly held, and the tendency of the market is unmistakably to higher figures all round. Cotton-The market was almost at a standstill on Saturday, and sales were restricted to 600 bales, at irregular but not quotably lower prices. In fact no reliable quotations can be obtained for any classification in the present unsettled state of the market, and we can only refer to the rates in our commercial article as approximating figures. Sugar and Molasses-There is a fair supply of imported Sugar and Molasses on hand, but the stock of Louisiana is almost wholly exin hausted. The demand, however, is but little I better than nominit for any description, and to prices for the time being are subjected to considerable fluctuations. h en Western Produce-Flour is still in very limre ited supply and demand at unsteady rates. The stock of Corn in first hands on the landtr ing is entirely exhausted, and the retailers W are demanding higher figures from store. to Oats are in fair supply, but the quality is mostly inferior and the demand continues to SO very light. Bran is dull and drooping at nomithal rates. th da Provisions-Pork is in good supply and th very firmly held at our quotations in the comst mercial column, but the demand for it, except en at retail, is still quite restricted. Bacon, also, wa is dull, but prices disclose an upward tenM deney, influenced by advices from the West and from Europe, and all other articles tio an enumerated under the head of provisions th rule precisely as at the date of our previous summary. th att Strenuous efforts are being made in Washth ngton to secure a pardon for Col. Paulding, in who lost nearly $600,000 of government funds wi y the failure of the Merchants' National Bank, nd who is now in Fort McHenry

3. July 19, 1866 Chicago Tribune Chicago, IL

Article from Chicago Tribune, July 19, 1866

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Total time of the failure of the Merchante tional Bank for some time previously the house of Payne s Co., in Haltimore was Indebt the bank for an amount nearly equal amount of poolie money deposited In the bank This house was the principal debtor and had al must all the available fund of the bank. without having given, or been required to give, any secarity whatever for their dent The remaining facts stated by the report are al ready familier to the publicand need not be repeat ed here. The commiteee remark in regard to the character of the officere of the banks Noming could be safe in the banas of men to reckless add superupulous and the failure of THIS bar Involving a loss nablic moniy. mu+1 be autibated wholly to the dishonest and criminal conduct of the men controlled The committee have reported a bill, which has become a last, to lake from diebnrang officers all control in the selection of bank in which to keep the public funds Intru-ted 10 them The Treasury Department has given construction to the law. appears by recent circular, which was not contempla. the committee, and seems to take a-ay much of Ite efficiency be report proceeds to review the frauds and mis management discovered in several other banks, and various swindles that are being perpetrated Some of the Michigan canke are discovered to be regular wild CS* concerns. as follows (The only other love of public money deposited in a national bank that has come to the o viedre of the committee in the care of the Veuan.ro National pahk Franklin which fatled on or about the of Marco. It depository bank with $50,000 honds and Treasury the rily depo-Its for amount of public money ID that nank the credit of the unr. and 12.58L93 to the credit of Mr. touch. the collector. There that bank on ulv.r. for $03,000 which on the 26th of January la to transfer that amount of from the nango National Hank 10 the in York never been paid 1b bar claims that leased from any re+ponsining the diaft was curved at the reasury in payment ot that amount. and was not prote ted for There levald be sufficient security for this draft posite ion of the Government the Venango National Bank was (310 000 Inscrone to bare been managed for the bench of Lulter. Penn & Co. of who bad nearly funde the bank their debt the has 1 being over $600.000 Under such cir coms'aros be Jahire of Culver, Penn +arily involved the talture of this bank The huming the waximum of the aggregate loan of any party to centum of the capital of the hank wholly in this care the Co. by Bsyne Merchant National Bank This excused in both CAREN the specions these Here not loans, but talas CC due from the parte It honta ba elated hat $400,000 of Univer. Penn & for Government bonds, which as appeared by the timony before the committee the bank deposited by them for eafe-kerpine. but were used them without e authority of the bank Many of the national banks which were converted from State bank do not make proper exertion to withdraw their old circulation. and in many stances pay out and take measures to continue in circulation. thereby receiving the benefit of the old circulation and of the national conency notes It receivid nom the bureau of the Comptroller. was stated to the committee that there were In elance of barks having It ported to the Comutrol 1bat the Sta's circulation had been withdrawn again paying it ont. lu Justice to the very lance majority of national bauk that are hote-il con ancied If Ferms right to give in this n-port all the Icelinony the committee bad on tbis subject though it Is not PO definite as they instruct One of the National banks ID Springfield. Mass represented 10 have an arrangement with all officer in a bank in Bo-ton to receive their State bank currency and nut It again in circulation by lostlog it some of the National banks in Provi derce. continue make loans of their State hank notes for circulation the chequeg Canal Bank of Eimira. N. continues to Issue State DO'CH and quite common practice of N. tions) banks in New Jer cy and in the Interior of the State of New York, to pay out their Stitchank notes. Some National banks do no legitimate banking business. but apbrar have been organized for the benefit of the circulation Banks of this character are mont owned by broker or private banke. and are carried on in conjunction wut burefice bu IDEAS. It was stated to the commit tee that rank of this clasp. the First National Bank of Fenton Sitch with capital of $30,000 was cepository for public money: and on the 25th of May law. when It was examined. the only account on lie books was that of E Spinner Treasurer of the United State* credited $17,063.13 for which the Governia nt held $30,000 of U. bond-as fecunty The National Bank of Michigan, at Marshail. and another National Bank Lan-ing both in Michiran. are represented to be simular character to the bank a Fenton, but neither of incm are deposItones. The committee satisfied that the ext ting law does not corfer correct and prevent many of tho'e objectionable practices and abuse of the halking privilege conferred by the law. to which their attention has been called by the tests mony before them The bill which the committee have reported to awerd the ta lonal currency act. contains many provisions to remedy the of the existing and to to the Comptroller of the Currency more power to restrict banks which be knows to be improperly managed The committee addressed circular to the Treas any of the United gnd Sub-Treasury even authorized Depository of public mopey ask. log for a return to them the amount of public moley in charge on the 1st of May to the child ot the Treasurer of the United States or the credit of any disburring office or sent of the to United States stating separately whether in coln or in currency and the bame of each ficer or agent. with the amount to his credit Those returns have all been received except one from the Georgia National Bank at Atlan's The amount of money under control of disbarring off cere appears by the returns to be larger than is neCERTIFY The will to regulre the deposits of public off CCTF, which has been reported and passed and the amendme: reported to the national currency act embrace the which the committee deem Decemsry in recard national banks, to protect the public and the Government. In regard 10 the grose abuse of their trust depository of pubuc coney by the Merchants tional list. the committee are of opinion that legal process dinre should be had for 1b punishment of tno-e of its mnagers who are responsible for the breach of true). and 8160 >uch proceeding as may be tecessary to recover any portion of the money and, as mostly money intrasteil disbursing officers of the War Department. the daty of inst be tunne and conducting these proceedings should committed to the War Department Tbe committee clo c this report by rubmitting the ALCEX relation Resolved, That the Secretary of War be directed to inti nte such legal procerdings as may be deemed necessary for the panisment of the man acer of the ercoal National Bank and otneta whom sy have aloud and abetted them in commit breach trust by misapplying the public money intracted to them for safe-seeping and also such proceeding as may be necessary to recover any portion of said money Buffalo and Chicago Banking. the

4. March 4, 1867 Public Ledger Memphis, TN

Article from Public Ledger, March 4, 1867

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BY TELEGRAPH. THE NOON DISPATCHES SAN FRANCISCO, March 4.-The sever est storm of the season is prevailing along the entire Pacific coast. There have been no stages across the Sierra Nevada for two weeks. WASHINGTON, March 4.-In the Senate, Sunday evening, the Indian Bureau Con ference reported that they were unable to agree. The Conference report of the Fertifi cation Appropriation bill was agreed to. The joint resolution relative to the water power for the Rock Island arsenal was passed. The House reassembled at 8 o'clock last evening. Stevens made a personal explanation, denying that there was any truth in the recent publication regarding the conversation between Ashley, Bingham and himself, wherein Gen. Grant's name had been involved. The Judiciary Committee has reported the impeachment preamble and resolutions under which impeachment was had even the ordered, saying approached if the final completeness, investigations Committee would not feel authorized to present the result to the House at this late period of the session unless the charges had been so entirely negative as to admit of no discussion, which the committee think not the case. Noaffirmative report could be properly considered in the expiring hours of this Congress All charges not having been fairly investigated against the President, it deemed inexpedient to submit beyond the statement, sufficient testimony not being adduced to justify the demand for further prosecution. The Investiga tion Committee regret the inability to definitely dispose of the subject. The House Committee on Public Lands reported adversely on the memorial of the Kansas Legislature for a grant of land for a freedmen's university, and also on a memorial of the Governor and Legislative Assembly of Utah foradonation to aid the common school fund. The Senate amendments to the Defi ciency bill were not concurred in. A conference is asked. Rogers, on a minority impeachment report, says there is not a particle of evidence before the Committee to sustain any of the charges which the House charged the Committee to investigate and the case is wholly without a particle of evidence whereupon the impeachment could be founded. Rogers says that most of the evidence taken is of a se condary character, such as would not be admitted in any court of justice, and he sees no good in continuing the investigastion. The Judiciary Committee, in regard to the Surratt case, says that due deliber ance in his pursuit and arrest was not exercised by the Executive Department The Senate confirmed a large number of appointments-names uot given. HOUSE-Mr Washburn, from the For tification Appropriation Conference made a report and agreed to the Presi dent's message received relative to the removal of the Protestant Church from Rome. A joint resolution was passed refund ing certain National Banks taxes ille gally collected. BALTIMORE, March 4.-A defaication of $300,000 has been discovered in the Merchants' National Bank of this city Samuel J. Weatz, book-keeper, aged 3 and John H. Rogers paying teller, 25 years of age were arrested, but were re. leased on giving bail for $10,000 each The frauds run through a period of 27 years. The Bank will meet its liabilities BOSTON, March 4.-Miller, Ward & Co.'s failure amounts to nearly one million dollars The First National Bank of Newton ville has suspended; loss, two hundred thousand dollars. Nearly double its capital money was lost in stocks. Ju lius T. Hartwell, cashier of the sub treasury,concerned in these transactions has resigned. The Government losse are nothing Smith, cashier of the State Bank, has resigned.

5. March 5, 1867 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN

Article from Memphis Daily Appeal, March 5, 1867

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LATEST BY TELEGRAPH [WESTERN ASSOCIATED PRESS REPORTS.] Noon Dispatches. SAN FRANCISCO, March 4 The se verest storm of the season is prevailing along the entire Pacific coast. There have been no stages across the Sierra Nevada for two weeks. W WASHINGTON, March 4. -In the senate, Sunday evening, the Indian bureau conference reported that they were unable to agree. The conference report of the fortification appropriation bill was agreed to. The joint resplution relative to the water power for the Rock Island arsenal, was passed. The house reassembled at eight o'clock last evening. Stevens made a personal explanation, denying that there was any truth in the recent publication regarding the conversation between Ashley, Bingham and himself, wherein Gen. Grant' s name had been involved. The judiciary committee has reported the impeachment preamble and resolutions under which impeachment was ordered, saying if the final in investigations had even approached completeness, the committee would not feel authorized to present the result to the house at this late period of the session unless the charges had been so entirely negative as to admit of no discussion, which the committee think is not the case. No affirmative report could be properly con sidered in the expiring hours of this congress. All charges not having been fairly investigated ngainst the president, it is deemed expedient to submit beyond the statement; sufficient testimony not being adduced to justify the demand for further prosecution The investigation committee regret the inability to defi nitely dispose of the subject. The house committee on public lands reported adversely on the memorial of the Kansas legislature for a grant of land for a freedmen's university, and also on a memorial of the governor dona- and legislative assembl of Utah for tion to aid the common school fund. The senate amendments to the defiA ciency bill were not concurred in. conference is asked Rogers, on a minority impeachment report, says there is not a particle of evidence before the committee to sustain of the charges which the house any charged the committee to investigate and the case is wholly without a particle of evidence whereupon the impeachment could be founded Rogers says that most of the evidence taken is of a secondary character, such as would not be admitted in any court of justice, and he sees no good in continuing the investigation, The judiciary committee, in regard to the Surratt case, says that due deliberance in his pursuit and arrest was not exercised by the executive department. number The senate confirmed a large of appointments -names notgiven. House. Mr. Washburn, from the fortification appropriation conference, presimade a report and agreed to the dent's message received relative to the removal of the Protestant church from Rome. A joint resolution was passed refunding certain national bank taxes illegally collected. BALTIMORE, March 4.-A defalcation the $300,000 has been discovered in of Merchants' national bank of this city Samuel J. Wentz, book -keeper, aged thirty five, and John H. Rogers, arrested, paying teller, aged twenty five, were were released on giving bail for $10,000 each. The frauds run through a period of twenty- seven years. The Lank ita liabilities. will meet March 4 Miller, Ward & dollars. Co.'s BOSTON, failure amounts to nearly one milThe First national bank of Newton has suspended loss, two hundred its ville dollars. Nearly double capital money thousand was lost in stocks. Julius T. Hartwell, cashier of the sub-treasury re concerned in these transactions, has are The government losses State nothing. signed. Smith, cashier of the bank, Minister has resigned. King deniesthat an American papal chapel had been removed by the and that outside of the walls, holdauthorities the minister had hired the villa for ing their the services. senate, a communication was In stating that the total abandoned amount presented from captured and $25, received was $34,000,000, whereof Agents 100.000 remain property as net proceeds. to resuch have been ordered store any holding unlawfully taken private prop erty upon due proof thereof. 4 Cowans' WASHINGTON March Austria was nomination as minister to tabled. A bill to prevent the perversion Senate. of the mails to fraudulent purposes passed. A joint resolution of thanks to Cyrus W. Field was resolution passed. was passed for the paying com A senators from the conof mencement Tennessee of the thirty-ninth gress. resolution was passed directing what Gen report to the senate desti amount Howard is to necessary to relieve the tute in The khe south senate bill establishing States House service between the United passed mail the Hiawauir islands was for the and senate's joint resolution of an inter The and construction isthmus of oceanic survey canal through the s Darien, was passed report on southern railroads to Maynard's incomplete, and it was proposed refer it to NEW YORK, the says nextcongress March 4. that Miramon A Mexican told Confede- some eorventlement respondent that the Southern in hand with the Fates were yet hand Gen. Hindman and that that the was might work fully together. March 4. Imperialists, establishments corresponding with them, The success- presdent minister WASHINGTON, will sign the bankrupt bill. to France Dix's nomination as two thirds of the was confirmed by over but Cowan's was was so iercely enators assailed present, that Buckalew foreed to have it tabled.

6. March 16, 1867 Prescott Journal Prescott, WI

Article from Prescott Journal, March 16, 1867

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MISCELLANEOUS. Several streets in Memphis are to be paved with the Nicholson pavement. The Maine legislature adjourned sine die on the 2d. The receipts of Internal Revenue for the week ending the 2d were $4,661,222. The tow boat Columbus, at Hudson, New York, was burned on the 2d, involving a loss of $20,000. The Minnesota legislature failed to pass the brohibitory liquor law. which it had under consideration for some time. A Fenian meeting was held in Albany, N. Y., on Wednesday evening, and & collection taken up as usual. Snow fell in Toledo, on the night of the 6th, to the depth of three inches. On the same night snow fell in Cairo. The levees twelve miles below Mem. phis broke Wednesday night, and the whole country below there is inundated, The levee at Helena, Arkausas, broke on Tuesday night at ten o'clock, washing away the lower part of the town and inundating the whole town. The Minnesota Legislature has passed a bill providing for a sinking fund for the payment of the two and a half million dollars of state railroad bonds of 1857. The Merchants' National Bank of Baltimore will not suspend business. The directors and stockholders are wealthy and will pay up the amounts of defalcation. The First National Bank of Hudson, N. Y., closed its doors on Saturday. Th cause of the failure was the defalcation of the cashier to & large amount. The banking house of Miller, Ward & Co., of Boston, failed on the 2ad. The loss involved in the failure will reach nearly $1,000,000. A heavy defalcation in the Merchants' Bank of Baltimore has been discovered The parties implicated are Wentz, the book-keeper. and Rogers, the paying-teller. The defaication amounts to $300,000. The bill which passed the House Monday morning, appropriating $50,000 additional for the Paris Expositions was not engrossed in time to be presented to the Presieent for his signature.

7. August 5, 1867 Daily Ohio Statesman Columbus, OH

Article from Daily Ohio Statesman, August 5, 1867

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Failures and Suspensions of National Banks. The following list embraces some of the suspensions and failures of National Banks in the Northern States since March 1, 1867: March 2.-The National Bank of Newton, Mass failed with liabilities amounting to $110,000. March 2.-The National Bank, of Hudson, N. Y), discovered an embezzlement by the cashier to the amount of $50,000. The concern revived after several weeks suspenson, and resumed business. March 4-First National Bank of Medina, Mo.. failed with liabilities of $82,000. March 40-The Merchants National Bank of Baltimore, broke down from the effects of a series of defalcations, carried on for a long time by two officers of the institution. July 25.-The Weedsport Bank (Cayuga county) National Bank closed doors, its liabilities being $125,000. July 26.-The National Bank of Unandilla, Otsego county, failed, its liabilities being $200,000.