Mechanics Bank (Memphis, TN)

Episode Information

Episode UID
3869462291272
Episode Type
Suspension → Closure
Bank Type
savings
Bank ID
386946229 hash
Start Date
December 27, 1905
Location
Memphis, Tennessee (35.150, -90.049)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
7251df9c3de970cf

Response Measures

None

Description

Mechanics' institution suspended alongside Merchants' Trust; some sources imply liquidation but reopening status for Mechanics' is not clearly reported.

Events (1)
1. December 27, 1905 Suspension
Cause
Local Banks
Cause Details
Suspended because allied with/affected by failure and overloans at the Merchants' Trust Company; fear of run and relation to failed institution prompted suspension.
Newspaper Excerpt
the American Savings bank and the Mechanics' Savings bank, smaller institutions, and allied with the first-named concern, have gone into liquidation.
Source
newspapers

Newspaper Articles (13)
1. December 26, 1905 The Daily Sentinel Grand Junction, CO
Article from The Daily Sentinel, December 26, 1905

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Article Text

THREE BANKS CLOSE DOORS. Special to The Sentinel. Memphis, Tenn., Dec. 27.-Three banking institutions failed to open their doors for business today. The Merchants Trust company capitalized for $200,000 and the American Savings bank and Trust company, and the Mechanics' Bank, two institutions allied with the first named were the banks that failed to open. John C. Edmonason was appointed as receiver. The cause of the suspension of business was overloans on discounts. The deposits amounted to $625,000.

2. December 27, 1905 Albuquerque Evening Citizen Albuquerque, NM
Article from Albuquerque Evening Citizen, December 27, 1905

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Article Text

MEMPHIS BANKS SUFFER FAILURE Merchants' Trust Company of That City Closes Its Doors. TWO SMALLER GO WITH IT Same Old Story of Over Loans on Discounts and Small Cash in Vaults. Memphis, Tenn., Dec. -The Merchants' Trust company has closed its doors and a receiver has been appointed. The institution has a capital of $200,000. The American Bank & Trust company and the Mechanics' Savings bank have suspended business. These are small institutions, allied with the Merchants' Trust company. The cause of the failure of the Merchants' Trust company is said to have been overloans on discounts. The Merchants' Trust company recently absorbed the Memphis National bank, and it is stated, owns a controlling interest in the American Savings Bank & Trust company. The latter institution has practically absorbed the Mechanics' Savings bank. The suspension of the three institutions caused but little excitement in financial circles.

3. December 27, 1905 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, December 27, 1905

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Article Text

Memphis, Tenn., Dec. 7.-The Merchants' Trust Company has closed Its doors and a receiver has been appointed. Felix T. Pope is president. The institution has a capital of $200,000. , The American Savings Bank and Trust Company and Mechanics' Savings' Bank, have suspended. These are small institutions, allied with the Merchants' Trust Company. The cause of the suspension of the to Merchants' Trust is said be on over loans on Macounts. One of the directors said to the Associated Press the three institutions had ample assets and could pay dollar for dollar. Suspensions of the three institutions caused little exc citement in financial circles. The American Savings bank, according to a recent statement owed depositors 4 25,000.

4. December 27, 1905 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, December 27, 1905

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Article Text

THREE BANKS FAN AT MEMPHIS TODAY The Merchants' Trust Company Closes Its Doors and Receiver Is Appointed OTHERS CARRIED WITH American Savings Bank and Trust Company and the Mechanics' Savings Bank, Institutions Connected I With the Failed Bank, Forced to Suspend -Will Pay Depositors.

5. December 27, 1905 Las Vegas Daily Optic Las Vegas, NM
Article from Las Vegas Daily Optic, December 27, 1905

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Article Text

Fail. Memphis. Memphis, Tenn, Dec. 27.-The merchants Trust company has closed its doors and a receiver. nas been appointed. The institution has a capital of $200,000. The American Bank n Trust company and Mechanics' Sav. inzs bank have also suspended bust. ness. These are small Institutions al. lied with the Merchants' Trust company. The cause of the suspension of the Merchants' Trust company is said to have been over loans on discounts. The Merchants Trust company recently absorbed the Memphis National bank, and, It is stated, owns the con frelling stock of the American Sav. ings Bank & Trust company. The lat. incer WHON has practically absorb. ed the Mechanics' Savings bank. The suspension of these three institutions caused some little excitement in finanBanks Owe Over a Million. New York Dec. 27.-The American

6. December 27, 1905 The Providence News Providence, RI
Article from The Providence News, December 27, 1905

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Article Text

THREE MEMPHIS BANKING COS. HAVE SUSPENDED MEMPHIS, TENN., DEC. 27.-THREE FINANCIAL INSTITUTIONS FAILED TO OPEN THEIR DOORS FOR BUSINESS TODAY. THE MERCHANTS TRUST COMPANY, WITH A CAPITAL STOCK OF $200,000, THE AMERICAN SAVINGS BANK AND TRUST COMPANY, AND THE MECHANICS SAVINGS BANK, SMALLER ISSTITUTIONS, AND ALLIED WITH THE FIRST NAMED CONCERNS, HAVE GONE INTO LIQUIDATION. THE CAUSE OF THE SUSPENSION OF THE MERCHANTS TRUST COMPANY IS SAID TO HAVE been OVER LOANS ON DISCOUNTS. ONE OF THE DIRECTORS SAID THAT THE THREE INSTITUTIONS HAD AMPLE ASSETS AND WOULD PAY DOLLAR FOR DOLLAR.

7. December 27, 1905 The Minneapolis Journal Minneapolis, MN
Article from The Minneapolis Journal, December 27, 1905

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Article Text

THREE MEMPHIS BANKS CLOSE THEIR DOORS Memphis, Dec. 27.-Three financial institutions failed to open their doors for business today. The Merchants' Trust company, with a capital stock of $200,000, the American Savings Bank & Trust company, and the Mechanics' Savings bank, smaller institutions, and allied with the first-named concern, have gone into liquidation. The cause of the suspensions of the Merchants' Trust company is said to have been overloans on discounts. One of the directors said that the three institutions had ample assets and would pay dollar for dollar. The suspension of the three institutions caused little excitement in financial circles.

8. December 28, 1905 The Vinita Weekly Chieftain Vinita, OK
Article from The Vinita Weekly Chieftain, December 28, 1905

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Article Text

THREE FINANCIAL CONCERNS FAIL Memphis Institutions Pass Into the Hands of a Receiver Too Much Speculation. Associated Press Memphis, Tenn., Dec. 27-Three financial institutions failed to open their doors for business today, viz: Merchants Trust Company, with a capital of two hundred thousand dollars, the American Savings bank and trust company and the Mechanics savings bank. Smaller Institutions allied with the first named concerns have gone into liquidation. The cause of suspension of the Merchants' Trust company is said to have been over-loans on discounts. One of the directors said to the Associated Press that their institution had ample assetts, and would pay dollar for doilar. John P. Edmondson, a Memphis lawyer, has been appointed receiver.

9. December 28, 1905 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, December 28, 1905

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Article Text

THREE MEMPHIS BANKS GO DOWN Assets Said to Be Ample to Pay the Depositors. RESULT OF SPREADING OUT FAILURE CAUSED LITTLE OR NO EXCITEMENT. EMPHIS, Tenn., Dec. 27.-Three institutions failed to open their M doors for business today. The Merchants' Trust company. with a capital stock of $200,000; the American Savings bank & Trust company, and the Mechanics' Savings bank, smaller institutions allied with the first named concern, have gone- into liquidation. The following notice was posted on the doors of the Merchants' Trust company: "This bank is closed by order of the board of directors, and will go into liquidation. (Signed.) "FELIX T. POPE. "President." Another notice reads: "This bank has gone into liquidation. John P. Edmonson has been appointed receiver.' Assets Are Ample. The cause of the suspension of the Merchants' Trust company is said to have been over-loans on discounts. One of the directors said to a representative of the Associated Press that the three institutions had ample assets and would pay dollar for dollar. When the officers of the Merchants' Trust company decided to suspend business, Chancellor Heiskell was asked to appoint a receiver for the institution, and named John P. Edmonson, a Memphis lawyer. The Merchants' Trust company recently absorbed the Memphis National bank, and, it is stated, owns the controlling stock of the American Savings Bank & Trust company: The latter institution has practically absorbed the Mechanics' Savings bank. The suspension of the three institutions caused little excitement in financial circles. A Run Was Feared. It was later learned that the American Savings Bank & Trust company had actually absorbed the Mechanics' Savings bank several days ago. It was stated today that the suspension of this institution is only temporary and that its affairs are in good shape. Officers say that the suspension was decided upon because they feared a run when the doors were opened this morning, the public generally being aware of the bank's relation to the Merchants' Trust company. At the latter institution it was announced that a thorough reorganizatio would be made, and hope was expressed that the company would again open its doors for business in a short time. A condensed statement of the condition of the Merchants' Trust company at the close of business Dec. 26 was given out, as follows: Total assets, $3,665,055: indebtedness of every character to depositors, $2,132,319; all other obligations exclusive of capital stock, $889,058; cash actually on hand, $30,000. Aided by Clearing House. C. W. Schulte, president of the Memphis Clearing House association, made the following statement in behalf of the association: "Fifteen days ago the Merchants' Trust company applied for help to the Memphis Clearing House association. The Clearing House association appointed a committee to investigate the matter. The committee went over the assets of the Merchants' Trust company as carefully as the limited time allowed, and the association advanced through the Merchants' Trust company the sum of $160,000. "Subsequent investigation revealed the fact that while it was the opinion of the members of the Clearing House association that the depositors of the concern are safe, yet it would take an extraordinarily large sum to pay all the demands. "In the interests of the city and depositors and of the various institutions of the city, which for the last month have anticipated some such movement, it was deemed wisest totallow the concern to close its doors. Other Banks Safe. "Representatives of the large banks of New York, Chicago and St. Louis are in the city with great quantities of money in furtherance of the legitimate business interests of the city. "It is deemed advisable that no undue excitement be indulged in. Old and experienced bankers and members of the Memphis Clearing House association have the situaiton well in hand. No danger is apprehended and the commercial interests of the city are competent to meet any sttuation that is liable to arise." Major G. W. McRae. president of the Memphis Savings bank, said: "I believe the-liquidation to be a result of taking on too much business by the Merchants' Trust company, too much spreading out and too large advances in purchasing other properties."

10. December 28, 1905 The Pensacola Journal Pensacola, FL
Article from The Pensacola Journal, December 28, 1905

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Article Text

Two More. Memphis, Dec. 27.-The American Savings Bank and Trust Company and the Mechanics' Savings Bank have suspended business. These are small institutions allied with the Merchants' Trust Company.

11. December 28, 1905 The Cairo Bulletin Cairo, IL
Article from The Cairo Bulletin, December 28, 1905

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Article Text

BANKS FAILED TO OPEN THE DOORS Three Memphis Banks Go Down With a Crash GO INTO LIQUIDATION OVERLOANS AND DISCOUNTS SAID TO BE RESPONSIBLE.INSTITUTIONS CLAIM THEY WILL PAY OUT. Memphis, Tenn., Dec. 27.-Three financial institutions of this city failed to open their doors today. They are the Merchants' Trust company, capital stock two hundred thousand: the American Savings (bank and Trust company and the Mechanics' Savings bank. The two last are smaller institutions allied with the first named institution. John P. Edmondson, a well known attorney. was appointed receiver of the Mechanics' Trust company. Overloans and discounts are said to be the reason for the action of the directors. Felix T. Pope is president of the Merchants' Trust company. which recently absorbed the Memphis National bank and later secured a controlling 'nterest stock of the American Savings bank and Trust company. A director of the institution told al representative of the American Press today that the banks were solvent and would pay dollar for dollar. The arfairs of the American Savings and Trust bank are said to be in excellent shape and its suspension is only temporary. The public, however, knew its relation to the Merchants' Trust company, and its officers say that to avoid 1 run on the institution today they closed its doors. They hope to reorganize and begin business again in and Co., and allaeeinsegteraEshrd two weeks. Off'cers of the Merchants' Trust company say they expect to reorganize. Statements how the assets of all the institution to be a little less than four million dollars, with liabilities considerably under that sum. The deposits in the two institutions are over two millions. The Merchants' Trust company, so the directors say, will pay dollar for dollar. Rumor, however, says only 80 per cent. on the dollar will be paid. The American Savings will undoubtedly pay out in full. The capital of the Merchants' Trust company is $200,000. The American Savings bank's capital, counting the capital of the Merchants' Savings bank is $100,000.

12. December 28, 1905 New-York Tribune New York, NY
Article from New-York Tribune, December 28, 1905

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Article Text

THREE MEMPHIS BANKS FAIL. Receiver Appointed for Merchants' Trust Company and Allied Institutions. Memphis, Dec. 27.-Three financial institutions failed to open their doors for business to-day. The Merchants' Trust Company. with a capital stock of $200,000: the American Savings Bank and Trust Company, and the Mechanics' Savings Bank, smaller institutions and allied with the first named concern, have gone into liquidation. The cause of the suspension of the Merchants' Trust Company is said to have been overloans on discounts. One of the directors said that the three institutions had ample assets and would pay dollar for dollar. When the officers of the Merchants' Trust Company decided to suspend business Chancellor Heiskeil was asked to appoint a receiver for the instition, and named John P. Edmondson, a Memphis lawyer.

13. January 9, 1906 Wausau Pilot Wausau, WI
Article from Wausau Pilot, January 9, 1906

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Article Text

THREE MEMPHIS BANKS FAIL. Closing of Institutions Causes No Disturbance in City. Memphis, Tenn., experienced the closing of three banks Wednesday without feeling the least disturbance in financial circles. The Merchants' Trust Company, anticipating a heavy run, preliminary intimation of which was given by the withdrawal of many deposits Tuesday afternoon, was the immediate cause of the suspension of that bank and the appointment of John P. Edmondson, a lawyer, as receiver. The American Savings Bank and Trust Company, which is dominated by the directorate of the Merchants' Trust Company, fearing that the failure of the other institution would cause a run on its own deposits, also suspended payment until the affairs of the Merchants' Trust Company shall have been adjusted. The American Savings Bank and Trust Company, it develops, absorbed the Mechanics' Savings bank at Main and Calhoun streets and took charge of the latter company's business. It is stated by the officials of both institutions that the depositors with be fully protected and paid dollar for dollar. The stockholders of the Merchants' Trust Company, it is said, will suffer to the extent of 20 per cent on the capital invested.