gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
b0a9334f2bcd64d8
Response Measures
Accommodated withdrawals, Capital injected, Full suspension, Books examined
Other: Local governmental depositors (county and city) agreed to extensions/terms and indemnity bonds to protect their deposits; receiver appointed and inventory taken, and later small dividend distributed.
Receivership Details
Depositor recovery rate
66.0%
Date receivership started
1897-06-02
Date receivership terminated
1903-06-17
OCC cause of failure
Losses
Share of assets assessed as good
37.3%
Share of assets assessed as doubtful
45.4%
Share of assets assessed as worthless
17.3%
Description
Government-record receivership date (1897-06-02) used as authoritative though newspaper reports show receiver put in charge earlier.
Events (5)
1.June 14, 1882Chartered
Source
historical_nic
2.October 1, 1896*Run
Cause
Local Banks
Cause Details
Distrust created by failure of the First National of Helena led depositors to withdraw from Merchants National.
Measures
Bank met demands and stated it would hold out till every depositor is paid in full.
Newspaper Excerpt
The run on the Merchants' Nationl bank, which began last week, has almost abated, and the institution is meeting every demand
Source
newspapers
3.February 13, 1897Suspension
Cause
Rumor Or Misinformation
Cause Details
Persistent rumors and resulting continual withdrawals forced the bank to suspend operations.
Newspaper Excerpt
Persistent and relentless withdrawals have largely reduced the bank's available resources, and to better protect depositors we deem it advisable to order the suspension of business for the time being.
Source
newspapers
4.June 2, 1897Receivership
Source
historical_nic
5.June 2, 1897Receivership
Source
newspapers
Newspaper Articles (20)
1.October 27, 1896The Salt Lake HeraldSalt Lake City, UT
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Article Text
HELENA BANKS. A Startling Rumor That Many of Them Were on the Verge of Collapse Is Denied. (Special to The Herald.) BUTTE, Mont., Oct. 26.-The startling rumor that several additional banks in Helena were on the verge of collapse was circulated in business circles today, but the following special received in Butte this evening indicates that the runs on the banks is not so serious as reported: "The run on the Merchants' Nationl bank, which began last week, has almost abated, and the institution is meeting every demand, and claims it will hold out till every depositor is paid in full. The Montana National had a little run for a day or two, but as the depositors soon found out it was invulnerable, and had more money than depositors could possibly call for, they soon got tired and quit. The trouble all grew out of the distrust created by the failure of the First National of Helena, and the methods of the management of that institution. It advertised to pay interest and accented deposits from all over Montana, and as far off as Minnesota, and when it had corralled all the loose money it could expect, it failed because the Northern Pacific drew out a paltry $60,000. "One man in Beaverhead county had $60,000, every dollar he had on earth, deposited in that institution.
2.February 13, 1897San Antonio Daily LightSan Antonio, TX
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ANOTHER BANK. Washington, Feb. 13.-The comptroller of the currency received notice today that the Merchants' National bank of Helena, Mont., has suspended. According to last report the bank had a capital stock of $350,000.
3.February 14, 1897The Bryan Daily EagleBryan, TX
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Moutana Bank Suspends. HELENA, Feb. 18.-The Merchant's National bank here has suspended. Re. ceiver Brown is in charge. According to the last report of the bank it had a capital stock of $350,000; surplus, $70,000; undivided profits, $69,000; due other banks, $123,000; individual deposits, $981,000; United States deposits, $70,000.
Merchants National Bank of Helena. Washington, February 13.-The comptroller of the currency received notice today that the Merchants' National bank of Helena, Mont. had suspended. According to the last report of the bank its capital stock was $850,000, surplus $70,000. undivided profits $69,000, due other banks $123,000. individual deposits $981,000, United States deposits $70,000. Acting Comptroller Coffin said today that for some time he had been looking for this bank to fall, and he believed bad management to be the primary cause. Receiver J. Samuel Brown, now in charge of the First National bank at Helena, has been put in temporary charge. Helena, Mont., February 13.-The Merchants' National bank falled to open its doors this morning. The following notice was posted: "Persistent and relentless withdrawals have largely reduced the bank's available resources. and to better protect Cepositors we deem it advisable to order the suspen. sion of business for the time being. (Signed) "Board of Directors." The suspension was a great surprise to the Helena public. MS the bank was considered to be exceptionally strong and conservatively managed.
CONDENSED NEWS Gathered From All Parts of the Country By Telegraph. Herr Mitterwurzer, a comedian well known in America, is dead in Vienna. The State Trust and Savings bank, of West Superior, Wis., suspended Saturday morning. It is reported here that a blockade of Crete by the European powers will be established shortly. The business portion of the town of Malvern, Ark., was destroyed by fire Friday. The loss will aggregate $100,000. W. L. Frost has been appointed receiver for the Commercial Saving bank, a small institution at Leds, a suburb of Sioux City Ia. Mr. Woodman (rep., 111.) Friday addressed the house ways and means committee on support of his bill placing a tax of $50 per thousand on cigarettes. The Turkish porte has informed the powers that Turkey will attack Greece in Thessaly in the event of the powers failing to restrain hostile action on the part of Greece in Crete. In the Michigan legislature Friday Representative Goodell, of Wayne county, gave notice of a bill to prevent monopolies in articles of general necessity and providing a penalty therefor. The Merchants' national bank of Helena, Mont., failed Saturday morning, and Bank Examiner J. S. Brown. now receiver of the First national bank of Helena, leas been placed in temporary charge. : A semi-official note has been issued at Rome stating Italy will not oppose Greece in any action the latter country may take on the Cretan question. It is added that Italy does not wish to serve Turkey in any way. The White Star line steamer Brittanic from New York for Liverpool, arrived at Queenstown at 10:34 o'clock Saturday forenoon. She reports having experienced heavy northeasterly gales and high seas during five days of her passage. Capt Harry Brown, junior member of the firm of W. H. Brown's Sons, whose boats are known all along the Ohio and Mississippi rivers, has retired from the firm. Capt. Sam S. Brown will look after the interests of the company in the future. The Berlin Post Friday evening publishes an article in which it says that war between Greece and Turkey is almost inevitable. The paper adds that Turkey is entitled to allow her troops to cross the Thessalian frontier in view of the action of Greece. The Felloweraft club, which was founded by the newspaper men of Detroit, gave a reception to Gen. Russell A. Alger Friday night. The occasion was the opening of their new club house on Wilcox street, and was attended by a large number of Detroit's most prominent citizens. The London Morning Post Saturday publishes a news agency statement that the powers are unanimous in their condemnation of the attitude of Greece, and that they will not allow her to continue her present course. She must, it is added, abandon the idea of commencing war with Turkey. The fifth annual banquet of the Lincoln club was held in Sweet's hotel, Grand Rapids, Friday evening, and was of more than local interest from the fact that Gonzalez de Quesada, charge d'affaires of the Cuban repub. lic at Washington, was present and made one of the principal addresses. As has been the custom for many years on February 12, the base of the Lincoln statue in Statuary hall, at the national capital, was draped with an American flag, and entwining about the feet of the statue were garlands of
6.February 16, 1897The River Falls TimesRiver Falls, WI
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Has a Good Balance. New York, Feb. 15.-The officers of the Fourth National bank, which is the New York correspondent of the Merchants' National of Helena, Mont., which has suspended, says that the Merchants' has always kept a handsome balance with them and had such a balance at this time.
7.February 16, 1897The Salt Lake HeraldSalt Lake City, UT
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Article Text
Will Appoint a Receiver. Washington, Feb. 15.-Comptroller Eckels said today that it would be necessary to appoint a receiver for the failed Merchant's National bank of Helena, Mon., which closed its doors Saturday.
8.February 17, 1897The Greenville TimesGreenville, MS
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A Receiver Necessary. WASHINGTON, Feb. 15.-Comptroller Eckels says that it will be necessary to appoint a receiver for the failed Merchants' national bank of Helena, Mont., which closed its doors Saturday.
9.February 18, 1897Delaware Gazette and State JournalWilmington, DE
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Bank Suspension. Washington, D. C., Feb. 13.-The comptroller of the currency received notice to day that the Merchants National Bank of Helena, Mont., had suspended.
10.February 19, 1897Shoshone JournalShoshone, ID
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Salt Lake City, Feb. 15.-A special to the Salt Lake Tribune from Helena, Mont., says: The suspension of the Merchants National bank on Saturday the 13th Inst., may bring about a public Investigation to Inquire more closely Into the factsleading up to the failure. This Inquiry will not be by process of law, but by Indignant citizens. With the exception of a certain class, the fallure of L. H. Hershheld banks is looked upon as one of the reatest outrages perpetrated on the citizens of this State. Ever since the First National bank of this city falled, rumors have been current not only In this city but throughout the State that the Merchants' was unsound. The First National failed six months ago, and these rumors have not been allowed to die in the meantime. The result was that money was continu. ally withdrawn by the effect of the rumors and by persuamon, until the time came when Mr. Hershneld was compelled to close to save his depositors, who will get 100 cents on the dollar. President Marlowe of the Montana National bank of this city says the Merchants' bank is perfectly sound and need not have shut down had It been left alone for a week or two and been given an opportunity to realize on its assets, The fact that It stood a run for six months shows that It was sound In the first place. The citizens of Helena are Incensed that some of its citizens would circulate rumbers and be so persistent in this as to break a bank. When once the t investigation is started, no stone will be unturned to find out who started the rumors, and to punish the origin tors. t
11.February 19, 1897Shoshone JournalShoshone, ID
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TALKED A BANK TO DEATH Persistent Rumors Led to a Co stant Run. Helena Citizens will Have an Investigation of the Canses Leading to the Merchants' National FailureOutrageous Proceedings if True.
Merchant's National to Resume. Helena, Mont,, Feb. 18.-President L. II. Hershfield of the suspended Merchants National bank, has decided to open that institution again as soon as the formalities prior to such a step can be gone through with. How long it will be before he can resume business again is not definitely known. It may be within six weeks, possibly three months. A receiver has to be appointed first then an inventory of the bank has to be made and the report submitted to the comptroller of the currency at Washington, and the outline of the lines upon which he proposes to open up again and continue business submitted and accepted by that official. It is stated upon good authority that Eckels is willing to let the bank resume.
13.February 25, 1897The Sauk Centre HeraldSauk Centre, MN
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MINOR ITEMS OF INTEREST. The Merchants' National bank of Helena, recently suspended, is to resume shortly. The Missouri legislature has passed a law which prohibits any persons from solemnizing marriages who is not a citizen of the United States. Freight handlers. of the Flint and Pere Marquette line at Ludington, Mich., to the number of 400 are on a strike for a restoration of former wages. Judge Long of the Michigan supreme court, was renominated by acclamation by the Republican state convention, as was also W. J. Crocker of Adrian, for regent of the University of Michigan.
14.February 26, 1897Little Falls Weekly TranscriptLittle Falls, MN
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MINOR ITEMS OF INTEREST. The Merchants' National bank of Helena, recently suspended, is to resume shortly. The Missouri legislature has passed a law which prohibits any persons from solemnizing marriages who is not a citizen of the United States. Freight handlers of the Flint and Pere Marquette line at Ludington, Mich., to the number of 400 are on a strike for a restoration of former wages. Judge Longof the Michigan supreme court, was I' nominated by acclamation by the Republican state convention, as was also W. J. Crocker of Adrian, for regent of the University of Michigan.
HELENA BAN KTO RESUME. The Merchants National WIII Be in Operation in June. Helena. Mont., Feb. 25. -- The Merchants National bank will resume business again in it short time. The bank is not in a bad condition. and only that which would eventually break any bank. a constant run extending over a period of four or live months. forced it to close its doors. President Hershfield has gone East where he has the promise of sufficient funds to put the bank on its feet and place it in it position 10 pay any de mands.
MERRITT INDICTED CHARGED WITH PERJURY IN THE BURNS.SHELTON CASE. The Reverend Administrator Cleared-An Insane Boy-Mr. Hershfield Hopes to Reopen the Bank. Special Dispatch to the Standard Helena, April 16.-Lawrence G. Merritt, witness in the suit brought by Mattie E. Burns to remove Rev. John H. Shelton as administrator of the James M. Smith estate, has been indicted by the Lewis and Clarke grand jury for perjury, During the trial in January Merritt swore that be saw Shelton and his lawyer, Frank D. Miracle. in possession of a $20,000 certifieate of deposit on the Merchants National bank in favor of James M. Smith, and that they took the certificate away, No accounting was ever made of the certificate and it was alleged that Rev. Mr. Shelton has defrauded the estate of the money. Merritt swore positively to having seen the certificate and described It minutely on the stand. It was proved by the defense, through the officers and books of the bank. that no such certificate had ever been in existence. The indictment was returned yesterday but the answer was not made until this morning. Merritt was released this afternoon on $750 bonds. He was ordered to plead Monday. Victor Lewis, a 10-year-old lad, who has lived with his mother in Helena all his life. was adjudged hopelessly Insane today in the district court and ordered sent to Warm Springs. He has been demented for years and is now a chattering limatic. Epilepsy was the cause of the malady. L. H. Hershfield president of the suspended Merchants National bank, arrived home to-day from Washington, where he had a long conference with the comptroller of the treasury. He feels very confident that the bank will be opened in the near future. He has a plan which he says will be entirely successful if It will meet with the co-operation of depositors. He will offer to pay the depositors 15 per cent. on the resumption of business and IS per cent. thereafter every four months until paid. If the depositors will consent to that arrangement the bank will reopen.
17.June 20, 1897The Anaconda StandardAnaconda, MT
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CAN DO NOTHING FOR 'EM Sheriffs Must Transport Their Prisoners to the Pen. CAN'T USE STATE FUNDS Because the Legislature Made No Provision to Cover Such Expenses Something New in Injunction Line. Special Dispatch to the Standard Helena, June 19.-Sheriff C. C. Proctor of Cascade county, who refused to transport convicted persons to the state penitentiary unless the state or county paid the traveling expenses, will find no comfort in the reply of Secretary of State Hogan to hs appeal asking the state board of examiners to allow warrants to be drawn in payment of such claims of sheriffs. Secretary Hogan says that the board can do nothing for the sheriffs, who must put their hope in Providence and the Sixth legislative assembly, as the last legislature failed to make the usual provision for the payment of such claims by means of an appropriation. The secretary says that the law prohibits the issuance of warrants where there is no appropriation to cover their payment unless there is a specific provision of law directing that warrants be issued. In conclusion Seeretary Hogan writes: "There is therefore nothing which the board of examiners can do, but to audit the claims and transmit them. with their approval. to the next session of the legislative assembly. I can assure you that the board regrets the neglect of the legislature to make an appropriation COVering those claims. but we are unable to do anything further in the matter.' Lewis and Clarke county was treated to a new experience in the injunction line to-day. Mrs. Alice B. was December married last Simon, to Joseph who Simon, one of the proprietors of the Cosmopolitan hotel in this city, secured an order from the district court enjoining her husband from deserting her. She brought an action this afternoon alleging that her husband had threatened to leave her unless she went back to her home in Montreal and remained there. She said that her husband had refused to support her in the hope and expectation that she would bring an action for divorce against him. Judge Smith ordered Mr. Simon to show cause why he should not give security for his wife's support. The proceedings will probably end in action for divorce. It looks now as if the suspended Merchants' National bank. which is now in the hands of a temporary receiver, would be able to resume business under conditions imposed by the comptroller of the currency. The county board of commissioners to-day directed Treasurer Garratt to sign an extension of the time allowed the bank in which to pay a deposit of $25,700 belonging to the county. It is believed the city will also accept the terms imposed by the bank and the comptroller as to its deposit of $37,000. which was in the bank when it suspended. The county will be proteeted by an indemnity bond. State Treasurer Collins and State Auditor Poindexter have issued instructions to all county treasurers in Montana to comply with the section of the law which provides for monthly settlements with the state. All moneys in possession of county treasurers belonging to the state must be turned over to the state treasurer before the first Monday in each month for the previous month. In consequence of the new order the state treasurer will be able to call in warrants more frequently and thus quite a large amount of interest in the aggregate will be saved to the state.
18.November 10, 1897San Antonio Daily LightSan Antonio, TX
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SOME BANK CHANGES. Helena, Mont., Nov. 10.-J. Samuel Brown, receiver of the First National bank, has resigned and Eugene T. Wilson, receiver of the Merchant's national, was put in charge of the affairs of both institutions.
1 and 2, Owsley block. Teleph Ladies' or gents' gold filled $10 up. Rubenstein Co., 73 Eas E. T. Wilson, receiver of th chants' National bank of Heler town. Hon. I. D. Rossiter of Sheridan time frienda in Putto and consult
The Money Received. Special Dispatch to the Standard, Helena, Dec. 6.-Receiver Wilson has received the checks for the 5 per cent. dividend declared by the comptroller in favor of the depositors of the Merchants' National bank of Helena, and will commence their distribution to-morrow.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
