National Mechanics Bank - Baltimore, MD

Bank Information

Episode Type: Run Only
Bank Type: national
Bank ID: 1413
Charter Number: 1413
Start Date: March 8, 1867
Location: Baltimore, Maryland (39.290, -76.612)

Metadata

Model: gpt-5-mini
Short Digest: 60621467

Response Measures

Capital injected, Books examined

Other: Directors issued statement to pay depositors; Comptroller of the Currency involved in arranging recapitalization.

Description

Defalcation (embezzlement) discovered March 8, 1867; some secret withdrawals and an anticipated heavy run are reported, but subsequent reports state directors (with Comptroller involvement) preserved capital and avoided liquidation/receivership. No suspension or permanent closure is reported.

Events (1)

1. March 8, 1867 Run

Cause: Bank Specific Adverse Info
Cause Details: Large, long-running defalcation (embezzlement) by bank officers (paying teller and clerk) discovered; stock and gold speculations implicated and substantial shortfall reported.
Measures: Directors issued a notice of ability and readiness to pay depositors on demand; took prompt action with Comptroller of the Currency; capital temporarily reported as reduced to $400,000 then increased to original $600,000 to avoid liquidation and receivership.
Newspaper Excerpt: A defalcation of about three hundred thousand dollars was discovered yesterday in the National Mechanics' Bank ... Some depositors in the secret withdrew their deposits on Saturday. A heavy run is anticipated by others tomorrow.
Source: newspapers

Newspaper Articles (4)

1. March 9, 1867 Sunbury American Sunbury, PA

Article from Sunbury American, March 9, 1867

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Article Text

HEAVY DEFALCATION OF BANK OFFICERS. BALTIMORE, March 8.-A defulcation of about three hundred thousand dollars was discovered yesterday in the National Mechanics' Bank of this city, situate at the corner of Calvert and Fayette streets, opposite Barnum's Hotel. C. R. Coleman is Cashier, and Michael Warner President. G. M. Rogers, paying teller, and Samuel H. Wentz, clerk, both old officers of the bank, and always highly esteemed in the community, are charged with a defalcation which has been running for several years through false entries. Stock and gold speculations are supposed to be the cause. There is but little chance for reimbursement. Both men have families, and heretofore they were much estcemed. The Directors will issue a card to-morrow announcing their ability and readiness to pay all depositors on demsnd. The issues being national, are secured. The stock, of course, will be seriously affected, but it is believed the bank will not be much interrupted in its business. This institution lost considerably some months ago by Bayne & Co., and some eighteen years since by the defulcation of Dick Turner, who, after getting out of prison, became a noted balled singer. Wentz is now in jail. Rogers was released on bail. The defulcation was first discovered by a government agent. The investigation of the defalcation is still progressing. LATER. Mr. Rogers, the paying teller of the Mechanics' Bank, is a brother-in-law of Mr. Warner, the president, and was confidentially intrusted with everything. He is about fifty years old, and has an interesting family. It is believed he is less implicated in the defalcation than Wentz, who 18 also old and a man of family, and has always been highly respected and above suspicion. It is now supposed that the defalcation has been going on for twenty years, but the most extensive operations are of a recent date. The bank's capital is six hundred thousand dollars. Some depositors in the secret withdrew their deposits on Saturday. A heavy run is anticipated by others tomorrow. This was considered among our best banks.

2. April 3, 1867 The Daily Gate City Keokuk, IA

Article from The Daily Gate City, April 3, 1867

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Article Text

LATEST BY TELEGRAPH Midnight Report. FROM WASHINGTON. WASHINGTON, April 2. The President to-day communicated to the Senate a large number of nominations. The only business concluded in executive session was the rejection of Joseph C. G. Kennedy, Commissioner of Agriculture, and of Henry J. Commager, Postmaster at Toledo, Ohio. The Committee on Foreign Relations have not yet come to any conclusion on the Rus. sian treaty. The National Mechanics' Bank of Baltimore has, by the prompt and judicious action of its Directors, brought about by the Comp. troller of the Currency, been enabled to report to its stockholders an unimpaired capital of $400,000, and is thus saved from the necessity of liquidation and the appointment of a receiver. Its capital has, by a vote of the Board of Directors, been increased to the original amount, $600,000. The public debt statement will be forth. coming on Thursday. The coin balance in the Treasury is $107,000,000, including about $15,000,000 of gold certificates. The receipts of customs during March were unusually large, about $16,000,000. The internal revenue receipts appear to be comparatively small, about $15,000,000. The Secretary of the Treasury, in reply to a resolution, has sent to the Senate a letter to the effect that the suggestion of a revision of the mint laws is a subject well worthy of consideration, there being many particulars in which the existing law 18 unable to meet the requirements of commerce and the greatly increased production of ballion. Many amendments have recently been proposed, among which are propositions for the mint to relinquish the refining of gold and silver and leave that business wholly to private enter prise, and the repeal of the coinage charge Without expressing any opinion on these sub jeets at the present time, he transmits & com munication from Louis T. Garrett, of San Francisco, formerly an officer of the branch mint, and now connected with an extensive refining establishment. He says a complete abrogation of all taxes and restrictions upon mining enterprise, and the repeal of all charges at the mint, would tend to develop the country and enhance its products. Brevet Brigadier General lidball, Major of the 22d Artillery, has been ordered to report to the Commanding General of the Depart ment of the Pacific for assignment.

3. April 3, 1867 Daily Davenport Democrat Davenport, IA

Article from Daily Davenport Democrat, April 3, 1867

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Article Text

WASHINGTON, April 2. The President today communicated to the Senate a large number of nominations. The National M chanies Bank of Balti, more has, by the prompt and judicious ACS tion of its directors through the Comptroller of the Currency, been enabled te report to its stockholders an unimpaired capital of $400,000. and is thus saved from the nes cessity of liquidation at the hands of the receiver. Its capital has, by a vote of the Board of Directors, been increased to its original amount. The public debt statement will be forthcoming Thursday. The balance of coin in the treasury is $107,000,000, including about $15,000,000 of gold. Certain receipts from the customs during March, are unusually large-sixteen million. Internal revenue receipts are a comparatively small amount--fifteen millions. The Secretary of the Treasury in answer to a resolution, has sent to the Senate a letter to the effect that the suggestion of a revision of the mint laws i. a subject well worthy of consideration, there being many particulars in which the existing laws are unadapted to the requirem nts of commerce and the greatly increased production of bullion Many amendments have recently been proposed, among which are the propositions for the mint to relinquish the the refining of gold and silver and leave that business wholly to a private enterprise; and the re 101 of the coinage change. Without ex pressing any opinion upon these subjects at the present time, he transmits a communicasion from Louis A. Garrett, of San Francisco, formerly an owner of the branch mint, and now connected with extensive silver refining, He says a complete abros gation of all taxes and restrictions upon mining enterprises, and the repeal of all charges at the mints would tend to develope the country and enhance its products. Official news from San Louis Potosi to the 11th, is received. The expected battle near Queretaro had not taken place yetEscobedo was appointed to the command of the concentrated armies of the north, west and center. Trevino has succeeded Escobedo as com mander of the army north. Maximillian and troops were at Queretaro city. The liberals occupied Laestareiena de Los Vacas, 9 miles west of Qneretaro on the Gelega road, Santa Rosa. 10 miles north on San Louis road, Cuerta Delchero 8 miles east on the road to the City of Mexico and Adjurto, close to South City, and therefore surrounded on all sides and communication entirely cut off. Maximilian attempted to send reconnoiter ing parties out, but they invariably went over to the Liberals, stating that the troops inside were very much demoralized,and that all the natives would join the liberals as soon as they have an opportunity. The Imperialists had about 3,500 men in the City of Mexico, under Jabra. Most of them, however, have been forcibly taken into the service and cannot be relied on. Gens Diego, Alvarez, Rivr, Palacco, Mar tinez, Losio, Neles and others, invest very closely the City of Mexico, and it had already been isolated from the interior. Puebla was defended by 2,000 men under Noriego, and Gen. Diaz, with 8,900 men had begun his operations to take it. Should Maximilian be captured at Quere! tara, as is confidently expected he will, Mex: ico and Vera Cruz will surrender without firing a single shot more. 1 The Secretary of the Treasury has desig nated Helena, Mentana, as the port of entry I for the collection district of Montana and . Idaho.

4. April 6, 1867 The New York Herald New York, NY

Article from The New York Herald, April 6, 1867

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Article Text

CURRENCY $8,288,000 Six percent bonds 31,983,51.1 Three year com. int. notes 234,683,850 Three year 7-30 notes 451,926,331 Total fatured debt not presented 11,354,979 for payment DEST BEARING NO INTEREST. 47,332,003 United States notes 1,212,042 Fractional currency 2,925,440 Gold certificates of deposit Total 43,194,521 AMOUNT IN TREASURY. Coin 43,886,777 25,748,854 Currency Total 18,137,923 Amount of debt less cash in - 182,218,446 Treasury The following gentlemen have been elected directors of the Pittsburg, Fort Wayne and Chicago Railroad Company for 1867-68:-Goorge W. Case, Pittsburg, Pa. Springer Harbaugh, Pittsburg, Pa; J. Edgar Thomson, Philadelphia, Pa; John L Dawson, New Geneva, Fay. ette county, Pa; J. F. D. Lanier, New York; Louis H. Meyer, New York; Samuel J. Tilden, New York: Pliny Hoagland, Fort Wayne, Indiana; Jesse L. Williams, Fort Wayne, Indiana; Kent Jarvis, Massillon, Ohio; R. R Springer, Cincinnati, Ohio; Hon. John Sherman, Mansfield, Ohio; W. B. Ogden, Chicago, Illinois. George W. Cass is President and Thomas D. Messler Assistant President. The National Mechanics' Bank of Baltimore, which has for the past month been the subject of investigation, has been enabled to report to its stockholders an unimpaired capital of $400,000, and is thus saved from the necessity of liquidation at the hands of a receiver. Ata stockholders' meeting on the 28th of March, by a more than two-thirds vote, the capital was reduced to $400,000, and by a corresponding vote immediately increased to $600,000, the original amount. The following railroad earnings for Ma C1 are reported:-