Merchants National Bank - San Diego, CA

Bank Information

Episode Type: Run Only
Bank Type: national
Bank ID: 4886
Charter Number: 4886
Start Date: June 23, 1893
Location: San Diego, California (32.715, -117.157)

Metadata

Model: gpt-5-mini
Short Digest: 4db41d97

Response Measures

Accommodated withdrawals, Books examined

Description

Article (The Record-Union, 1893-06-24) reports Merchants' National Bank in San Diego was crowded with depositors and paid out large sums but remained open and enabled business as usual. The run appears driven by contagion from failures and runs at other local banks (Farmers' Exchange, First National, and banks in Los Angeles). No suspension or closure of Merchants' National is reported.

Events (3)

1. March 13, 1893 Chartered

Source: historical_nic

2. June 23, 1893 Run

Cause: Local Banks
Cause Details: Contagion from runs/failures at other local banks (run on the Farmers' Exchange Bank, failures in Los Angeles) prompted depositors to withdraw funds.
Measures: Paid out large amounts in cash over the counter; remained open to transact business as usual.
Newspaper Excerpt: The new Merchants' National Bank, which is crowded with depositors, is enabling business to be transacted as usual. There were individual deposits of $261,000: demand certificates of deposit, $89,470. In the last five days between $100,000 and $200,000 in cash have been paid out over the counter.
Source: newspapers

3. December 18, 1922 Voluntary Liquidation

Source: historical_nic

Newspaper Articles (1)

1. June 24, 1893 The Record-Union Sacramento, CA

Article from The Record-Union, June 24, 1893

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Article Text

to suspend payment for the present. Should no satisfactory arrangement for an early continuance be affected the depositors will soon be paid in full, with interest, and the assets, if properly handled, will yield the shareholders $2,000,000 o 200 per cent. on the par value of the capital stock. The stock is held in wealthy hands representing millions of money and the liability is such on each shareholder as to prelude the possibility of loss to depositors. Our present liabilities outside of foreign capital and surplus are only about $1,600,000, and considerable of this is subject to reduction by offsets." PRESIDENT M'DONALD SHOCKED. NEW YORK, June 23.-Dr. R. H. McDonald, President of the Pacific Bank, who is in this city, was shocked when he heard to-day that his bank had closed. He said: "Though President of the bank, I have not been active in its management for some time. I am sufficiently familiar with the affairs of the institution, however, to feel confident that there is no chance for any of the depositors lose anything. I think it will liquidate for almost the amount of its capital and surplus, $1,000,000 and $800,000 respectively. The bank had gone into no speculative enterprises up to the time of my departure. Of the local business we had a fair percentage, with an extraordinary number of correspondents out in the country. It was heavy drafts made by country banks, I presume, which forced the suspension." " CONFIDENCE RESTORED AT SAN DIEGO SAN DIEGO, June 23.-Confidence is being rapidly restored intbank matters. E. S. Babcock, President of the Coronado Beach Company, announced this morning that he will accept checks on the Banks of Commerce and on the First National Bank at their full face value for various lines of merchandise and supplies carried on in the company's warehouse and for books of tickets of the street-car and motor lines. The Bank Examiner is making good progress in examining the Bank of Commerce and expects to conclude this afternoon. The plan for percentages-10 per cent. on resuming, 10 more in sixty and ninety days-is considered as good as adopted, and it is expected the bank will be open Monday. The new Merchants' National Bank, which is crowded with depositors, is enabling business to be transacted as usual. There were individual deposits of $261,000: demand certificates of deposit, $89,470. In the last five days between $100,000 and $200,000 in cash have been paid out over the counter. The run on the Farmers' Exchange Bank resulting in the closing of its doors, caused the excited depositors to call for their money at the First National. Monday night the craze had subsided and it was thought that the bank had weathered the storm, but when SO many banks failed in Los Angeles and other places on Wednesday and Thursday, a run on the First National Bank started in anew. The resources of this bank, backed as they are by men of wealth, are fully ample to pay depositors dollar for dollar, and it will be but a short time before it will reopen its doors. This bank and the Farmers' Exchange have pursued a liberal but careful policy in supporting the principal industries of this community, and the citizens are deploring the misfortune that has befallen them. Had not a similar craze been operating in Los Angeles, the First National Bank would have found no difficulty in obtaining cash to meet all demands. The President of the bank, Joseph Brown, stated shortly after closing that the bank would resume business in a short time A notable feature of the run on bank has been that irrehave last sponsible this parties throughout stories several the five been on street the and pay days depositors discrediting circulating advising bank's fellows everybody ability have the to to draw his money. These been openly denounced by others, but to no effect. The craze was on, and nothing, seemingly, could stop it. Everybody concedes the ability of the First National to meet all its obligations, and now there is little or no excitement on the streets. Theother banks- the San Bernardino National and Bank of San Bernardino-areconsidered impregnable, and no further trouble is anticipated. COULD NOT STAND THE RUN. SAN BERNARDINO, June 23. The First National Bank of San Bernardino, which has withstood the run for the last five days with such fortitude, was to-day compelled, shortly after having opened to the to and to to the stringency money depositors "Owing doors, post following close of the its notice doors: and the unusual of the last this deposits market during five withdrawal days, bank is forced to close its doors temporarily." The officers of the bank are: Joseph President; H. O. H. Kohl, are: rectors President; Brown, Joseph Brown, B. Cashier. Garner, H. Brink- Its di- Vice- J. meyer, J. W. Hall, O. H. Kohl, W. Curtis, L. D. Crandall, H. B. Garner, J. Flanders and John M. James. a $100,It a has surplus paid-up capital $25,000 stock and of 000, fund of undivided profits of $7,995. BANK OF MADERA. MADERA, June 23.-The Bank of Madera failed to open its doors this morning.