Farmers & Merchants Bank (Benton Harbor, MI)

Episode Information

Episode UID
1459237391599
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
145923739 hash
Start Date
March 1, 1933*
Location
Benton Harbor, Michigan (42.117, -86.454)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
5f42463260ff6c8e

Response Measures

None

Description

Bank closed by the March 1933 national banking moratorium and later placed in receivership; county funds remained frozen.

Events (3)
1. March 1, 1933* Suspension
Cause
Government Action
Cause Details
Closed by the March 1933 national banking moratorium/holiday imposed by federal authorities
Newspaper Excerpt
the governor's bank holiday followed by the national bank holiday closed the Farmers & Merchants bank
Source
newspapers
2. June 29, 1933 Other
Newspaper Excerpt
county cash tied up in banks closed by the moratorium, was in the Farmers & Merchants bank
Source
newspapers
3. November 18, 1933 Receivership
Newspaper Excerpt
Mr. Payne, as receiver, having charge of the old Farmers and Merchants bank in Benton Harbor
Source
newspapers

Newspaper Articles (4)
1. June 29, 1933 The Herald-Press Saint Joseph, MI

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. June 29, 1933 The Herald-Palladium Benton Harbor, MI

Article Text

HENNES HURLS 'LIAR' AT SUP. L. K. PRESTON (Continued from Page One) it will be over my head," Preston replied. Chairman Katzbach stopped the battle here. Urges Formal Inquiry During the morning session yesterday, Supervisor Preston urged the appointment of a committee to investigate why $436,000 of the $529,417 in county cash tied up in banks closed by the moratorium, was in the Farmers & Merchants bank. He said he had heard a lot of ugly rumors that the judiciary committee was dominated by some person, and that one of the members of the judiciary committee was heavily obligated to the bank. Pressed for "facts," he admitted what he had heard was only "rumor and hearsay." Supervisor Hennes told the board the judiciary committee had followed the dictates of the board in distributing the county's funds in the various banks on the basis of capital stock and surplus, and gave the F. & M. bank the floating account for checking of $100,000. He explained that the county had been piling up an account in the bank to meet approximately $318,000 worth of bonds and interest due on March 15 and April 1, because the other banks objected to having deposits of county funds made and then drawn out within a few weeks. The governor's bank holiday followed by the national bank holiday closed the Farmers & Merchants bank before the bonds and interest were paid. The discussion grew out of a suggestion from Supervisor John Warman of Watervliet township, chairman of the finance committee, that the county lease or purchase one of the closed bank buildings, and move the treasurer's office out of the courthouse and make him custodian of all tax money collected. He suggested such an institution could handle all county, township, school and city funds, and the cost of operation split on the basis of the yearly deposits of each taxing unit. The county, he said, could join the clearing house association to enable the clearing of checks. Such a system, he suggested, would protect the county from further bank closings. Harvey Defends Bank Attorney W. P. Harvey, attorney for the Farmers & Merchants bank, rose in defense of that institution before the board of supervisors this morning, and denied he had influenced the judiciary committee in depositing county funds there. This was in reply to charges made by Supervisor Preston before the board yesterday that Attorney Harvey, as attorney for the bank, had dominated the judiciary committee. "I will say this, in view of statements which have been made, that upon my honor as an attorney and a citizen, that never at any time has the judiciary committee called upon me for advice as to where it should place the county funds. I did draw up the resolution for the committee apportioning the funds according to capital and surplus after it was decided this should be done. "Had I not been consulted about where to put the county's money, however, I should not have hesitated to advise putting the money in the F. & M. bank. "I exercised no power or influence over the committee. I appreciate the compliment Mr. Preston pays me, but I am not worthy of it," Attorney Harvey said. Questioned By Preston "I didn't intend to say anything. I came here today to behave myself," Supervisor Preston said. "I would like to have Mr. Harvey answer a few questions. Do you know what bonds the F. & M. bank has?" "I know the municipal, government bonds, and real estate bonds, but not in detail," replied Attorney Harvey. "Do they have any bad bonds?" "I don't know whether they do or not." "Do you know why the government charged off $100,000 of the bonds held by the bank?" "When?" "In March, after the holiday." "I do know this: The government inspectors passed the bank's bonds on December 31, 1932, and they did not change in value between then and March 4," Attorney Harvey replied. Blames U. S. Policy In response to a question by Supervisor Clarence Bartz as to the relationship as to when part of the county funds might be released from the bank, Attorney Harvey said the delay was due to the federal government. "It is unfortunate that there is available approximately a million dollars in cash which could be returned to the depositors if the bank had funds there for payment of certain bonds which were due on March 15. The bank was entirely ready to be paid when the government closed the bank. It is deposited with the federal reserve. "It is my opinion that there is a struggle between two departments. One that Washington should run the bank, and one should be run controlled by the stockholders and depositors. "I am not a director of the F. & M. bank, but I have been attorney for the bank for 30 years. For 40 years that the bank has run, the Farmers & Merchants bank has stood every test. It stood three bank runs, when every other bank in Benton Harbor and St. Joseph closed. It was passed by the government examiners on December 31, and it had the full confidence of the board and of its officers. "Why a bank prepared to meet every normal demand should be forced to be closed, Washington will have to answer. "And now to answer your question as to when the county is going to have some of its funds, the county will get it when Washington decides to release it, and not before." Accepts Compromise The board of supervisors this morning voted unanimously to accept a compromise from the Fidelity & Surety Co., involved a settlement of a $10,000 check deposited in the City National Bank of Niles at the time it closed in October, 1931. The surety company will pay $5,000 in a full release from the county.

3. November 18, 1933 The Herald-Press Saint Joseph, MI

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.

4. May 31, 1934 The Herald-Press Saint Joseph, MI

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.