Merchants National Bank (Seattle, WA)

Episode Information

Episode UID
298501145
Episode Type
Run โ†’ Suspension โ†’ Closure
Bank Type
national
Bank ID
29850 national
Charter Number
2985
Start Date
May 20, 1895
Location
Seattle, Washington (47.606, -122.332)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
029544c888f4f650

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Clearinghouse loan, Full suspension, Books examined

Clearinghouse involved: Yes (loan, examination, or other measures)

Receivership Details

Depositor recovery rate
77.0%
Date receivership started
1895-06-19
Date receivership terminated
1901-08-19
OCC cause of failure
Losses
Share of assets assessed as good
32.1%
Share of assets assessed as doubtful
57.9%
Share of assets assessed as worthless
10.0%

Description

Receiver appointed June 19, 1895; run traced to circulation of reports about a failed consolidation.

Events (5)

1. June 23, 1883 Chartered
Source
historical_nic
2. May 20, 1895 Run
Cause
Rumor Or Misinformation
Cause Details
Circulation of reports that consolidation with another bank had failed, prompting hasty withdrawals.
Measures
Temporary loan from the clearing house of $25,000 to tide over the crisis; heavy cash payments over the counter ($41,077 paid May 20).
Newspaper Excerpt
It is apparent to me that the bank had been operating in its normal condition up to May 20, when there was a run.
Source
newspapers
3. May 21, 1895 Suspension
Cause
Rumor Or Misinformation
Cause Details
Suspension followed a run triggered by circulated reports about failed consolidation and inability to realize on certain assets.
Newspaper Excerpt
The Merchants bank, of Seattle, Wash., suspended to-day.
Source
newspapers
4. June 19, 1895 Receivership
Source
historical_nic
5. June 19, 1895 Receivership
Newspaper Excerpt
The controller of the currency has appointed Charles H. Baker receiver of the Merchants' National Bank of Seattle, Wash., which suspended payment May 21, 1895.
Source
newspapers

Newspaper Articles (23)

Article from Santa Fe Daily New Mexican, May 21, 1895

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TO-DAY'S CONDENSATION The Merchants bank, of Seattle, Wash., suspended to-day. The bank's capital was $200,000, and at last report it had asseta amounting to $635,000 and a surplus of $25,000. Mrs. Frank Leslie is to sail for England on Saturday to visit her ex mother-inlaw, Lady Wilde, and to do what she can to comfort that lady in her trouble in the disgraceful acandal in which her eldest son, Oscar Wilde, has cut 80 prominent a figure. At St. Joe, Mo., fourteen mad dogs have been killed since Sunday. James Harper was bitten by a rabid animal, and was taken to Savannah for madstonetreatment. John Quinlaven, a boy, was bitten yesterday and was taken to a madstone which adhered for six hours. Mrs. Mary E. Lease and Miss Mary Morrill, both of Wichita, will shortly form a law partnership and open offices in Topeka and Kansas City, Kas. Mrs. Lease practiced law before she went into politics. Miss Morrill is a graduate of the law department of the University of Ann Arbor.


Article from The Dalles Daily Chronicle, May 22, 1895

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Examiner Carson in Charge. WASHINGTON, May 21. - Controller Eckels today received a telegram stating the Merchants' National bank, of Seattle, Wash., had suspended. Examiner Carson was put in charge. The bank's capital was $200,000, and at the last report had assets amounting to $630,000 and a surplus of $25,000. It is understood one of the causes of the bank's failure was too great holding of real estate and securities upon which it did not realize. &


Article from The Herald, May 22, 1895

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A BANK GOES UNDER The Merchants' National of Seattie Closes Its Doors SEATTLE, May 21.-The Merchants National bank closed its doors this morning and will not re-open. President Mackintosh said: "This misfortune is the result of hard times and the inability of borrowers to respond to calls made upon them. The bank will pay all its obligations. We will call upon the stockholders and try not to go through the hands of a receiver. There are really no bad assets and it is only difficult to realize on some of them." WASHINGTON. May 21.-Comptroller Eckels today received a telegram stating that the Merchants National bank of Seattle had suspended. Examiner Carson was put in charge. The bank's capital was $200.000 and at the last report had assets amounting to $635,000 and a surplus of $25,000. It is understood that one of the causes of the bank's failure was too great holdings of real estate and securities upon which it did not realiaze.


Article from The Roanoke Times, May 22, 1895

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Suspension of a Government Depository. WASHINGTON, May 21.-Mr. Eckels, the comptroller of the currency, to-day received & telegram stating that the Merchants' National Bank, of Seattle, Wash., had suspended. The bank's capital was $200,000, and at the time of its last report the bank had assets amounting to $635,000 and a surplus of $25,000. The bank was 8 government depository.


Article from Rock Island Argus, May 22, 1895

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Seattle Bank Suspends. W ASHINGTON, May 22.Mr. Eckels, the comptroller of the currency, received a telegram stating that the Merchants' Na. tional bank of Seattle, Wash., had auspended. The bank's capital was $200,000.


Article from The Seattle Post-Intelligencer, May 28, 1895

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Bank Examiners E. L. Carson and Charles Clary, both of this city, yesterday took charge of the Merchants' National bank and on their report will depend the question whether a receiver shall be appointed or the bank liquidate. This will be decided in about thirty days.


Article from The Islander, May 30, 1895

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Washington, May 23.-Controller Eckels today received a telegram stating the Merchants' National bank of Seattle, Wash., had suspended. Examiner Carson was put in charge. The bank's capital was $200,000, and at the last report had assets amounting to $630,000 and a surplus of $25,000. It is understood one of the causes of the bank's failure was too great holdings of real estate and securities upon which it did not realize.


Article from Cottonwood Report, May 31, 1895

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Washington, May 23.-Controller Eckels today received a telegram stating the Merchants' National bank of Seattle, Wash., had suspended. Examiner Carson was put in charge. The bank's capital was $200,000, and at the last report had assets amounting to $630,000 and a surplus of $25,000. It is understood one of the causes of the bank's failure was too great holdings of real estate and securities upon which it did not realize.


Article from Evening Star, June 21, 1895

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Bank Receiver Appointed. The controller of the currency has appointed Charles H. Baker receiver of the Merchants' National Bank of Seattle, Wash., which suspended payment May 21, 1895.


Article from The Silver Blade, June 22, 1895

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Baker Appointed Receiver. Washington, June 19.- Comptroller Eckels has appointed Charles H. Baker of Seattle, Wash., receiver of the Merchants' National bank of Seattle, which failed some weeks ago.


Article from The Salt Lake Herald, July 18, 1895

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Jamaica. He said he was going to New York at once to strengthen in that city a favorable feeling toward the revolution ists. EL PASO, Texas, July 17.-Sigmund Weisel, aged 35, a merchant well known through the southwest, was accidentally killed today at Carlisle, N. M. He was formerly manager of the merchandise de partment of the Arizona Copper com pany at Clifton. NEW YORK, July 17.-The Herald to day says: The resignation of the Rt. Rev Mgr. Dennis J. Connell from his office of rector of the American college at Rome has started considerable speculation as to the future of this American prelate and about his successor in the resigned position. SEATTLE, Wash., July 17.-The depositors of the Merchants' National bank are preparing to begin criminal proceed ings against the officials and are raising funds or the pufrpose. They claim to have abundant evidence and will proceed under a state law making it a felony for bankers to receive deposits when they know the bank is insolvent. MILWAUKEE, July 17.-D. H. Hogan, the first book-maker arrested at State Fair park, has been held for trial under $2,000 bond. He declined to give the bond and went to jail. It is reported that the book-makers will retaliate by arresting the members of the civic federation who bought tickets on the races to secure evidence. DENVER, July 17.-Jennie John, an 11year-old girl, was arrested here tonight on instructions from Rock Springs, Wyo., where she is wanted as a witness against her father, who was recently taken into custody on a charge of raping the child. When his case came to trial, she had disappeared. The child WE dressed in boys clothing when arrested. BOSTON, July 17.-The first delegate convention of the Massachusett's People's party opened today in this city. Massachusetts stood twenty-second in the list of states casting Populistic votes in the last election. was voted to make the state organization permanent, and J. P. Gardner, of Danvers. was elected president of the convention. WASHINGTON, July 17.-The comptroller of the currency has declared dividends in favor of the creditors of insolvent national banks as follows: Thirty per cent, the First National Bank of Texarkana, Texas: 20 per cent, the Washington National Bank of Tacoma. Wash. 5 per cent, the Chemical National Bank of Chicago. WASHINGTON. Juy 17.-The navy department was informed today that President Criscom, of the International Steamship company, saied today for England where he will remain until the next trip of the St. Louis, making arrangements for the trial of that ship to ascertain her fitness to become one of the auxiliary naval ships entitled to the provisions of the subsidy act. SAN FRANCISCO, July 17.-Maud Lamont, the sister of the unfortunate victim of the brutal Emmanuel church murder, has returned here from Montana to testify for the prosecution in the forthcoming trial of Theodore Durrant. The police believe she will prove a valuable witness. She was her sister's most constant companion during the eisure hours of the murdered girl, and also knew Durrant. ROCHESTER, N. Y., July 17.-The parochial school connected with the church of the Holy Cross at Charlotte burned at 2 o'clock this afternoon. Warrants have been issued for the arrest of the janitor, John Cronin, and his sister Nora. both of whom are in the employ of Father John M. Fitzgerald. There is much feeling among the church members, who are divided into factions. BRA IL, Ind., July 17.-George A. Knight, one of the best known lawyers in the state, while sitting in his home last night, heard a noise in an upstairs room. Search was made and the gate was heard to shut on the outside. Mr. Knight saw a man disappearing in the darkness. He shot and fatally wounded hi best friend, John Wehrle, the county KEY WEST, Fla., July 17.-The cruiser Montgomery, with the board of survey of the Nicaragua canal, sailed today for New York. They were to have disembarked here and taken the steamer Mascot to Tampa, but where prevented by the state quarantine regulations from SO doing. The cruiser Atlanta arrived from Havana today and was placed in qurantine. DENVER, July 17.-A special to the Times from Hahn's Peak says: A committee from Snake river passed through her today bound for Hayden and Steamboat Springs to plead with the people to allow the sheep to be driven into California Park. J. E. Edwards, the Wyoming sheep man, will meet the Snake river men, Robert McIntosh and G. W. Arnold. at Steamboat Springs. The settlers will not agree to have the sheep driven and pastured in Routt county. GALESBURG, Ill., July 17.-A sensation prevails here in Pythian circles over the order asking the Catholic Knights of Pythias to renounce the organization. College City lodge, the strongest one here, has many Catholic members, and a number of them are averse to leaving their organization. A prominent Knight who conferred with Mgr. Satolli in Washington says a movement is on foot to secure a rehearing by the pope and a revocation of the decree. KANSAS CITY, July 17.-Miss Sarah Mead, 32 years old, a former school teacher of Greenwich. Conn., who met Dr. J. L. alker. of Des Moines, Ia., in this city by appointment on June 5. and was married to him on the same day in Kansas City, Kas., has discovered that her husband is false and that she has been the victim of most creul desertion. Her husband has deserted her, and worse still. he has taken her gold watch and $1,200 in money, leaving her more than 1,500 miles from home with only $10. JEFFERSONVILLE, Ind., July 17.During the storm last night, lightning struck the three towers of the prison, and the greatest excitement among the convicts, 850 in number, followed. The prisoners had just been locked in their respective cells when the storm was raging SO furiously and thus a panic was averted. The guards had no sooner left their posts of duty than the lightning did its work. Had they remained a minute later the chances are that they would have been killed. ANDERSON, Ind., July 17.-This section was again visited by a destructive wind and rain storm today. Trees. small buildings and large roofs suffered most. At Alexandria, twelve miles north, a new business block was blown down, some buildings unroofed and flooded. North of here many fields of corn were levelled. The Big Four accommodation train arriving here at 8 o'clock had all the glass


Article from The Progressive Farmer, July 30, 1895

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UN-"SOUND MONEY" MEN. I These Are the Men Who Have Been Clamoring for "Sound, Honest Money" The bank at Norborne, Ohio, and the Carrolton county bank, are both in the hands of receivers. Depositors have begun criminal pro. ceedings against the Merchants National bank, unsound, at Seattle, Washington. L T. Parrish, cashier of the bankst Orrick, Mo, has gone, and $20,000 cold, hard, clammy dollars left the same day. C. D. Davies, manager, of the bank at East Peru, Iowa, has escaped with $28,000 belonging to depositors. The bank du People, at Montreal. Canada, has closed its doors. On July 5th it reported $6,520,869 deposits, and it is believed that this has all been stolen. An Ioway banker escaped with $28,000 a few days ago. He carried the money in a valise. This amount in silver would weigh something like 1,600 pounds, hence you can readily see that such money don't suit bankers No wonder they claim it is not good abroad. But it is good at home. S B Andrews, cashier of the defunct First National bank, Texarkana, Texas, is under a bond of $10,000 for making false returns to the comptroller of the Treasury of the United States.


Article from The San Francisco Call, August 11, 1895

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To Prosecute Seattle Bank Officials. SEATTLE, WASH., Aug. 10.-The depositors' committee of the Merchants' National Bank, which suspended recently, has employed Colonel James Hamilton Lewis as counsel, and will begin criminal prosecution against the officials of the institution on charges of receiving deposits when they knew the bank was in a failing condition.


Article from The Salt Lake Herald, September 12, 1895

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SEATTLE'S BANK TROUBLES. SEATTLE, Wash., Sept. IL-Receiver Baker's investigation of the affairs of the Merchant's National bank, which suspended on May 20, bas satisfied him that the charges which have been freely circulated to the effect that it was looted by the officers are unfounded. He finds that the failure was due to an abortive attempt at consolidation, which led to a run. The officers had very, little money in the bank and had drawn out little or nothing for weeks preceding the failure.


Article from The Seattle Post-Intelligencer, September 12, 1895

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THE BANK WAS NOT LOOTED. Receiver Baker Disposes of Rumors Regarding the Merchants' National. Ever since the Merchants' National Bank was forced to suspend on May 20, charges have been affoat that the officers of the bank figured in a conspiracy to loot it and defraud the stockholders, but Receiver Charles H. Baker, after a thorough examination of the causes which led to the suspension, has come to the conclusion that these charges are unfounded. Mr. Baker said yesterday: "It is apparent to me that the bank had been operating in its normal condition up to May 20, when there was a run. It opened that morning with a cash balance of $22,204.43. which was augmented before business commenced by a loan from the clearing house of $25,000, which was intended as temporary relief and was thought to be more than sufficient to tide over any crisis. This loan was secured by a block of notes and other securities of the Merchants' National. Before 3 o'clock of that day this had been drawn down to $2,123.63. "For several days prior to the suspension, negotiations had been on foot for consolidation with the National Bank of Commerce. This was known tothedrectors of the two banks, and to members of the clearing house. When finally negotiations failed, It was reported on the street that the consolidation had been attempted in order to save the Merchants' National, but that, the attempt having falled, the bank was in an unsafe condition. The knowledge of the proceedings being held by some twenty individuals, it soon became more or less general information, resulting in the hasty withdrawal of deposits. I am led to believe that certain depositors 'got the tip,' but that such did not come from a representative of the Merchants' National, but probably from a member of the clearing house. "There is little question that the reports so circulated caused the run on the bank, for the sums paid over the counter May 20 aggregated $41,077, while for twenty days prior to that date the average total checks drawn each day was less than $6,000. The largest checks drawn May 20 were three in number, and aggregated $18,000. They were drawn by the city treasurer. the county treasurer and the Union Electric Company. There was also on the morning of that date shipped to the assistant United States treasurer at San Francisco $10,000 as an excess United States deposit. The balance was drawn out in 150 checks, representing various sized sums. "It seems, however, as though without a marked improvement in the general business situation this failure would have been inevitable, sooner or later. The bank is loaded up with a good deal of overdue paper, particularly that known as Stinson paper' (about $60,000), upon which it would have been a slow process to realize." The officers of the bank were: Angus Mackintosh, president; William T. Wickware, cashier; H. F. Meserve. assistant cashier: S. G. Graves, teller. In running through the accounts of the officers, the receiver states that he noticed they carried very little money in the bank, and that they had drawn no checks to amount to anything for a good many weeks. In closing the interview, Mr. Baker said: "I am unable to discover as yet that there has been any past irregularity in the management of the bank. or that the failure in any way inures to the benefit of its officers." Mr. Baker says that there are about 600 claims altogether, and that very few of that number are outstanding, and have not been proved.


Article from The Seattle Post-Intelligencer, August 13, 1896

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MERCHANTS' BANK DIVIDEND. Receiver Baker Pays $74,029.95 to the Creditors. Charles H. Baker, receiver of the Merchants' National bank, has posted a notice that he is now prepared to pay a divIdend of 30 per cent to creditors of the bank whose claims were proved prior to the order of the comptroller of the currency, dated June 24, declaring the dividend. The comptroller's checks, aggregating $74,029.95, 559 in number, drawn on the assistant United States treasurer, have Just been received from Washington City, and will be distributed to depositors upon presentation of their receiver's certificate. The Merchants' National bank suspended a year ago and Charles H. Baker was appointed receiver by Comptroller Eckles. The liabilities were about $260,000, and the assets were nominally more, but upon careful examination and appraisement by the receiver a deficiency of assets of $150,000 was declared to exist and an assessment for that amount was levied upon the shareholders of the bank. the collection of which is now being enforced through the courts here and in New York and Providence. Thirty per cent. is the largest single dividend ever paid by a bank in liquidation in the Northwest, and in fact very few have paid that much altogether. The distribution of this amount of money locally at this time will tend to relieve the financial situation very materially. The dividend as first declared and as reported through the Associated Press was 25 per cent, but when Mr. Baker went to Washington City recently he urged the comptroller to declare 30 per cent, which was done upon his assurance that that amount would be collected. The receiver was asked yesterday If the bank would eventually pay out in full. He replied: "I can tell you better after the financial question is settled. If I have to pay in a depreciated currency It will take twice as long as otherwise, for there will be no corresponding law to compel the shrinkage of liabilities in a corresponding ratio, and the depositors being a credftor class will naturally insist upon having par value money. If the proposed silver coinage law were already enacted It might be my privilege as receiver to take the $74,000 in gold. which is to my credit as receiver in the United States treasury, and exchange it for silver metal, which I could get coined into 148,000 silver dollars. If I could work off this money on the depositors the bank could pay 60 per cent instead of 30 per cent., but this scheme would have a screw loose In It apparent to anyone and would be like the perpetual motion machine, which men have gone crazy over trying to Invent. As receiver, I very much regret that It is not also contemplated to remonetize real estate and shingle mills. which would thus enable me to pay depositors in full at once and 100 per cent. to the stockholders. In fact, I have understood that a very strong effort had been made to include a horse plank with silver, but failed on the ground that horses had been demonetized by bloycles and not by gold. As receiver. I am inclined to espouse the silver cause, because the bank Is interested in a Colorado silver mine listed as valueless, but as a eltIzen I oppose unsound dollars, even though they assume that what they are short in weight is made good by the assuring stamp they bear, In God we trust.' A return of prosperity will enable this bank to pay out in full, and that means solid gold."


Article from The Seattle Post-Intelligencer, August 13, 1896

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Notice to Depositors. A dividend of 30 per cent. to depositors of the Merchants' National bank is now payable at room D Bailey building. For the convenience of working people who have claims against the bank I will open the office Friday evening from 7 to 8. CHAS. H. BAKER, Receiver.


Article from The Seattle Post-Intelligencer, August 14, 1896

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Notice to Depositors, A dividend of 30 per cent. to depositors of the Merchants' National bank is now payable at room D Balley building. For the convenience of working people who have claims against the bank I will open the office Friday evening from 7 to 8. CHAS. H. BAKER, Receiver.


Article from New-York Tribune, July 8, 1899

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Judgment for $43,108 was entered yesterday against Daniel H. Gilman, a broker at No. 42 Broad-st., in favor of Archibald W. Frater, receiver of the Merchants' National Bank of Seattle, Wash., on five notes made between October, 1892, and March, 1895.


Article from The Seattle Post-Intelligencer, September 14, 1900

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In the federal court A. W. Frater, receiver of the Merchants National bank, has been ordered on his petition to settle with persons holding tax liens on certain West Seattle property of the bank.


Article from The Seattle Star, March 6, 1917

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BANK GIVEN BIG TIDE LAND TRACT WASHINGTON, March 6.-A dispute over R $200,000 tract of Seattle tide land between the insolvent Merchants' National Bank of Seattle and Charles H, Baker, its former receiver, was decided today by the supreme court in favor of the bank.


Article from Rogue River Courier, March 6, 1917

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INSOLVENT BANK WINS SEATTLE TIDE LAND CASE Washington, Mar. 6.-A dispute over a $300,000 tract of Seattle tide land between the insolvent Merchants National Bank of Seattle and Charles H. Baker. its former receiver, was decided today by the supreme court in favor of the bank.


Article from Daily Capital Journal, March 6, 1917

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Washington, March 6.-A dispute over a $300,000 tract of Seattle tide land between the insolvent Merchants National Bank of Seattle and Charles H. Baker, its former receiver, was decided today by the supreme court in favor of the bank.