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A MONTANA BANK SUSPENDS. The Merchants' National Bank of Great Falls Fails to Open.
Merchants National Bank (Great Falls, MT)
Episode Information
- Episode UID
443401123- Episode Type
- Run → Suspension → Closure
- Bank Type
- national
- Bank ID
-
44340national - Charter Number
- 4434
- Start Date
- July 1, 1893*
- Location
- Great Falls, Montana (47.500, -111.301)
Metadata
- Model
- gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
fb4ce45b0ea484a9
Response Measures
Full suspension
Receivership Details
- Depositor recovery rate
- 38.0%
- Date receivership started
- 1893-07-29
- Date receivership terminated
- 1900-01-06
- OCC cause of failure
- Losses
- Share of assets assessed as good
- 26.7%
- Share of assets assessed as doubtful
- 31.0%
- Share of assets assessed as worthless
- 42.4%
Description
The bank experienced a run ('heavy drain') for several weeks prior to its suspension on July 24, 1893, and subsequent receivership.
Events (6)
1.
October 7, 1890
Chartered
- Source
- historical_nic
2.
July 1, 1893*
Run
- Cause
- Macro News
- Cause Details
- Heavy drain of deposits over several weeks during the Panic of 1893; also tied to illiquid loans to sheepmen.
- Measures
- The bank attempted to realize on assets but could not do so fast enough to meet withdrawals.
- Newspaper Excerpt
- could not realize fast enough to meet the heavy drain of the last few weeks.
- Source
- newspapers
3.
July 24, 1893
Suspension
- Cause
- Macro News
- Cause Details
- Inability to meet heavy withdrawal drain due to illiquid assets (sheepmen loans) during systemic panic.
- Newspaper Excerpt
- The Merchants' National bank of this city closed its doors today at 1 o'clock
- Source
- newspapers
4.
July 29, 1893
Receivership
- Source
- historical_nic
5.
July 29, 1893
Receivership
- Newspaper Excerpt
- The controller of the currency today appointed receivers... Louis G. Phelps, receiver of the Merchants' Natonal Bank of Great Falls, Montana.
- Source
- newspapers
6.
October 16, 1893
Other
- Newspaper Excerpt
- Will Hanks, president of the suspended Merchants' national bank of this city, was arrested tonight for embezziement
- Source
- newspapers
Newspaper Articles (16)
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Great Falls Bank Closes. Special to the Globe. GREAT FALLS, Mont., July 24.-The Merchants' National bank of this city closed its doors today at 1 o'clock, and the following notice was posted: "This bank is closed and depositors must await a receiver. We have assets amply sufficient to pay all liabilities. "THE BOARD OF DIRECTORS." The last regular statement showed the bank was low on cash. It was carrying sheepmen heavily, and could not realize fast enough to meet the heavy drain of the last few weeks. Five other banks here are not apprehensive, and some of them. had heavy deposits todav. The capital stock was $100,000; sasets and liabilities are not given.
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Bank Receivers Appointed. The controller of the currency today appointed receivers of insolvent national banks as follows: Charles T. Cates, Jr., receiver of the State National Bank of Knoxville, Tenn.; Louis G. Phelps, receiver of the Merchants' Natonal Bank of Great Falls, Montana.
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Bank Receiver. WASHINGTON, July . 29.-Comptroller Eckels has appointed Louis G. Phelps receiver of the Merchants' National bank of Great Falls, Mont.
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have claims against "The Merchants NOTICE is hereby given to all persons who National Bank of Great Falls," Montana, that the same must be presented to Louis G. Phelps, Receiver, with the legal proof thereof, within three months from this date or they may be disallowed. Great Falls, Aug. 4, 1893. L.G. PHELPS. Receiver.
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Got Another One. Helena, Mont., Oct. 17.-Will Hanks, president of the suspended Merchant's National bank at Great Falls, has been arrested on the charge of embezzlement. He was subsequently released on $5,000 bail.
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Montana Bank President Arrested. GREAT FALLS, Mont,, Oct. 16.-[Special.] -Will Hanks, president of the suspended Merchants' national bank of this city, was arrested tonight for embezziement on complaint of D. G. Phelps, the receiver. He was released on giving $5,000 bonds.
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Embezzlement Charged. GREAT FALLS, Mon., Oct. 18.-Will Hanks, ex-president of the suspended Merchants National bank, has + been ar rested on the charge of embexzlement. Complaint was made by Receiver L. G. Phelps, and charges that Hanks converted to his own use 50 shares of Case cade bank stock.
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Embezzlement Charged. GREAT FALLS, Mon., Oct. 18.-Will Hanks, ex-president of the suspended Merchants National bank, has been arrested on the charge of embezzlement. Complaint was made by Receiver L. G. Phelps, and charges that Hanks converted to his own use 50 shares of Cascade bank stock.
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Embezzlement Charged. GREAT FALLS, Mon., Oct. 18.-Will Hanks, ex-president of the suspended Merchants National bank, has been arrested on the charge of embezzlement. Complaint was made by Receiver L. G. Phelps, and charges that Hanks converted to his own use 50 shares of Cascade bank stock.
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Embezzlement Charged. GREAT FALLS, Mon., Oct. 18.-Will Hanks, ex-president of the suspended Merchants National bank, has been arrested on the charge of embezzlement. Complaint was made by Receiver L. G. Phelps, and charges that Hanks converted to his own use 50 shares of Cascade bank stock.
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Embezzlement Charged. GREAT FALLS, Mon., Oct. 18.-Will Hanks, ex-president of the suspended Merchants National bank, has been arrested on the charge of embezzlement. Complaint was made by Receiver L. G. Phelps, and charges that Hanks converted to his own use 50 shares of Cascade bank S ock.
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A Great Falls dispatch of Oct. 16 says that Will Hanks, president of the Merchants National bank, which recently suspended, was arrested this evening on a complaint sworn out by L. G. Phelps, receiver of the bank, on the charge of embezzlement. He was released on $5,000 bond. \
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HANKS NOW TURN The Defendant's Story of His Connection With the Merchants Bank of Great Falls. HIS ASSETS WERE ABOUT $120,000. The Reasons Given for Nogotiating the Different Notes and the Transfer of His Ranch. R cross-examination of Dr. was A. concluded The the treasury expert, court yesBarrett. in the United States was government terday and then the against will through with its case with misapprowhom it charges the MerHanks, $25,000 of the funds of Falls priating National bank, of Great opening chants' Carter then made the said that Lawyer statement for the defense. He of rectihad pursued a course Falls Hanks community of Great He tude in the man might be proud of. Merthat any the organization of the the subspoke of in 1890. and of make chants bank who falled to scribers to the stock Hanks was their subscriptions of good prosperous circumstances all as an then credit in and regarded by man. good young business the enterprising of the subscribers to good When some the bank falled to make order to stock subscriptions, of Hanks, in in his their the organization understa put facilitate it was the the own note to which, be carried along until parties. Ing. was sold to other stock should be carried along until the This note Hanks sales of closed. reducing it as when bank made. Then. in 1891, withdraw. stock were Wells decided to Hanks stock. George and R. other directors of the This bank acdecided to take $10,125 up his note in the needed Chicounted for the Later the bank negocago money bank and the $28,000 note was Cartiated. At the beginning Hanks' of indebtedness 1893, Lawyer to $20.- the property bank ter claimed. individually did not exceed worth $120.000. 000. while Then he there had came over session the of country events. most unexpected of long standing, in one with common ample e Houses involved Merchants bank, assets, destructive became ruin. became The involved difficulties and of Great Falls, which beset bank. in the country. general Depositors of sity the withthe through fear or July 1893. the either their deposits. In condition human a con drew Merchants' had foresight reached could dition not have bethe that anticipated control It of was Hanks. transact Mr sactions Carter yond then reviewed with the all bank the and held that and Hanks were had perfectly the legitimat credit of the but institution, of meant, they not to harm to assist it in the course Lobenbusiness Downing and Valentine witnesses for the heimer C. P were the first examined mainly near defense the They value were of considered Hanks' ranch worth acre as to Falls. One knew of Hanks refor Great the other $25,000 on it. fusing $150am to give an testified option to good Hanks repBoth utation witnesses for integrity being now called to the stand. it had The defendant At this point was the prosecution to stand indictment announ ced that counts of the and the charging on the false entries, and harging not to abstraction. four charging conviction on the nine said if that he would ask for conv Col. Sanders ask that the Judge was the instructed case to acquit. the and motion Knowles jury be said Col. he Sanders would took an exHe ception. then began his testimony. in Craw ford Hanks with his birth the story O., in 1860, and time gave he settled Falls went county of his life down in to 1885. the and started into the the in Great He r wards business and Tribune. esta and Insurance granized the Cas- of bank. real in the spring He of 1890 owned Later one-elghth he helped cade the stock the of that Merchants bank. was bank subscribed All the stock organize of the to the Merchants opening of tion the came bank. a to When prior the time for subscribers organiza did not re- in spond. the of stock was not number and of one large block taken. Cashier of it part particular his note to carry to carry the Wells put in put in his note was that as and Hanks underst erstanding disposed of the rest. The stock was taken from fast as the should be then traced to amount of received the notes. reduced Hanks until it got by either his note $2,500. it was when it was replaced dow the Benson note Hanks said his 160 prop- acre half On Jan 1891. sisted of his interest erty holdings near Great coal Falls land a Color at Nelthe 320 acres of townsite and Columbia to in in the Fris Falls townsi Great addition in the hart Highland park interest himself of inFalls the Fullerton insurance worth busing $5,000 worth sixth $2,500; nd F in the Liberty the Goodric mine drich Lumber 25,000 shares comthe have pany, worth in $1,250: Cornucopia some Mining realized comor which in which he 40 would cents share 18 and 20 and the third time he did sell for Baltimore, and Six Little Jodes inmarter the House worth $3,000; Maginnia Maiden the bond 25,000 on shares of the Prosp and silver share; 50,000 Helt company Mining a 10 share had of com the Mining Savage cents to worth Bear Paw, in the intere Altoget his up that 1, on 1893, March his in 1894 him that half the other half of the Hershtie de he said of the 150 acres Hershfield the MerH the note By doing NO bank of Helena relief from the Hel- All at Great get Falls bank
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Will Declare a Second Dividend. Great Falls, April 29.-L. G. Phelps, receiver of the Merchants' National Bank, to-day brought suit against John A. Largent and William Ulm to recover $295, a balance alleged to be due on a note. The receiver expects to make a certain collection within a few days and will then be able to declare a 10 per cent dividend. This will be the second dividend since the bank suspended in July, 1893. The first was 10 per cent.
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Fifteen per cent of the school children of Flathead county will have their books furnished them, according to the vote just taken on the question of free text books. The ranges are in excellent condition and stock rolling fat in the famous Judith basin. The Cascade county commissioners have ordered suit brought against the bondsmen of ex-Treasurer McClelland, for county funds deposited with the defunct Merchants' National bank of Great Falls. There is said to be a shortage of over $30,000 in that connection. Since the planting of so many trees in Billings the increase in the number of singing birds of all kinds is remarkable. Now the lawns and shrubbery are full of the creatures, and the citizens are treated to one of nature's concerts every morning. The growth of the grain in the past three weeks has been wonderful. Fields where two or three weeks ago there seemed to be hardly a blade of grain, are now covered with tall, thrifty oats. In the cleared lands below Frenchtown, in the vicinity of Hudson and down as far as Nine Mile, the grain is splendid and the ranchmen are happy, according to reports received at Missoula. The Ashley Lake Irrigating Company is at work on what will be the largest irrigation enterprise in Flathead county so far. The ditch will be about nine miles in length and will cover some 6000 acres of land northwest of town. It is taken from Ashley creek near the site of old Flathead City, and runs around the foothills to the northwest. As judged by this year's assessment, Teton county is more prosperous now than last year. The assessment as returned by the county assessor to the seate board of equalization shows an increase over that of last year of $144,396. The total assessment as returned is $1,749,726, of which $1,053,444 is taxed against personal property and $696,282 against real estate. The assessment book of Yellowstone county has just been completed. It shows a gain over last year of $260,639. The total personal property returned, including money, is $1,575,753; real estate and improvements, $1,812,477; total, $3,388,230. To this total will be added the amount assessed to the several railways running through the county by the state board of assessment. This amount is not known at present, but last year it was as follows: Rocky Fork, $5500; Big Horn Southern (Burlington), $188,360; Northern Pacific, $286,902.