Merchants National Bank, Philadelphia, PA (Charter 2462)
Merchants National Bank, Philadelphia, PA (Chartered 1880 - Liquidated 1910)
Town History
Philadelphia is located in Philadelphia County, in the southeast corner of Pennsylvania. It is currently the sixth-most-populous city in the United States and the most populous city in the state of Pennsylvania. It is also the second-most populous city in the Northeastern United States, behind New York City.
Philadelphia is one of the oldest municipalities in the United States. William Penn, an English Quaker, founded the city in 1682 to serve as capital of the Pennsylvania Colony. It grew on the steep banks of the Delaware River into a hub of international trade and monetary influence. The royal post-office was established in this city by Franklin. Mail would pass uninterrupted from Crown to Republic, the one royal department which did so. The Colonies used the old expresses and mail routes leading up to and through the revolution. Philadelphia played an instrumental role in the American Revolution as a meeting place for the Founding Fathers of the United States, who signed the Declaration of Independence in 1776 in Carpenters' Hall, and the Constitution at the Philadelphia Convention of 1787 in Independence Hall.
Philadelphia was the second Capitol after New York City during George Washington's presidency. On April 2, 1792, the United States Mint opened its doors here with David Rittenhouse, former treasurer of Pennsylvania, the first director. The American Philosophical Society was the first scientific society in the land and still meets in the hall Franklin secured for it. Former townships and boroughs of Bristol, Richmond, Kensington, Germantown, Manayunk, Northern Liberties, Southwark, to name a few, were consolidated into Philadelphia in 1854 which then occupied all of Philadelphia County.
During the National Bank Note Era (1863-1935), the population of Philadelphia was 674,022 in 1870, growing to 1,950,961 in 1930. Its highest population was 2,071,605 in 1950, and the current population is estimated at 1,584,064 (2019).
Philadelphia had 70 National Banks chartered during the Bank Note Era, and 62 of those banks issued National Bank Notes. Philadelphia also had 27 Obsolete Banks that issued Obsolete Bank Notes during the Obsolete Bank Note Era (1782-1866).
Bank History
- Organized February 9, 1880
- Chartered March 6, 1880
- Liquidated August 3, 1910
- Consolidated with 2731 (1) (First National Bank, Philadelphia, PA)
On February 3, 1880, it was reported that the action of the shareholders of the Mechanics National Bank in displacing Mr. George H. Stuart from the presidency of that institution, induced the friends of that gentleman to start a bank on their own account and make Mr. Stuart its president. The bank would have a capital not exceeding $500,000, and would be called the Merchants' National Bank, or such other name as might be agreed upon. It was some ten days ago, after declining several offers, that Mr. Stuart consented to his friends joining in the new enterprise. Without any publicity, or any very Special effort the subscriptions commenced the first day with over $100,000, and coming in daily for more or less the past week, amounted yesterday to some $150,000, making the total sum of $500,000, all subscribed. There were eleven subscriptions of $25,000, one of $30,000, and one of $20,000, with a large number of $10,000. The committee had already leased the building on Fourth Street, one door below Chestnut, owned and recently occupied by the Provident Life and Trust Company, and as soon as the necessary arrangements were completed the bank would open for business. The building was admirably adapted for banking purposes, having every convenience for directors' offices and clerks, and an excellent fire and burglar proof vault put in by the owners for their own use at a large expense.
On January 14, 1902 the stockholders elected the following directors: F.W. Ayer, Charles M. Swain, Frederick M. Simons, Charles E. Hires, Thomas D. Richardson, Thomas Y. England, Frederick McOwen, G. Martin Brill, Horace F. Whitman, William H. Arrott, John C. Dawson, Thomas H. Wilson, and Sylvester S. Marvin. The directors unanimously elected F.W. Ayer, president. Hartman Baker was the cashier.
In July 1902, The Merchants National Bank announced the opening of its foreign exchange department, have direct connections with all parts of the British Empire, the Continent of Europe, and the Orient. The department was under the direction of Mr. Francesco Ebell, formerly with the Deutsche bank, Berlin, and later with the National City Bank, New York. The growing appreciation of the facilities offered by the Merchants National was evidenced by the growth in deposits as reported to the Comptroller of the Currency. F.W. Ayer was president, Hartman Baker, cashier and Thomas W. Andrew, assistant cashier.
| Date | Deposits |
|---|---|
| July 14, 1896 | $2,733,272.58 |
| May 14, 1897 | $3,703,220.43 |
| May 5, 1898 | $4,628,858.75 |
| April 5, 1899 | $8,417,696.26 |
| April 26, 1900 | $12,747,548.24 |
| April 24, 1901 | $14,547,717.00 |
| April 30, 1902 | $15,310,934.50 |
In less than six years the deposits increased more than five-fold. The net assets likewise grew from $791,884.78 on July 14, 1896 to $1,184,652.47 on April 30, 1902.
On Jan. 9, 1906, stockholders elected the following directors: F.W. Ayer, Frederick McOwen, G. Martin Brill, William H. Arrott, John C. Dawson, Thomas H. Wilson, Sylvester S. Marvin, E.C. Irvin, Charles Emory Smith, Cyrus H.K. Curtis, Hartman Baker, David Nimlet, and William A. Law. On the 12th the officers elected were F.W. Ayer, president; Hartman Baker, vice president; and William A. Law, cashier.
At the beginning of January 1910, the officers were F.W. Ayer, President; Wm. A. Law, vice president; Thomas W. Andrew, cashier; and Freas B. Snyder, assistant cashier. The bank had Capital Surplus and Profits of $1,875,000. On January 11, 1910, F.W. Ayer declined re-election as president and William A. Law, an officer of the bank since 1903 and vice president for the past three years, was unanimously elected to the presidency. F.W. Ayer was made chairman of the board of directors, an office newly created, and continued as a director.
J.W. Sparks & Co. planned a move to the Bourse before the end of the year to make room for the Merchants National Bank. The bank desired to enlarge its quarters in the Mariners' and Merchants' Building at Third and Chestnut Streets and occupy the entire first floor.
In July 1910, after a partial hearing before Judge Kinsey yesterday in Common Pleas Court No. 1, the mandamus suit of Morris Baker, a stockholder in the Merchants' National Bank, was compromised by counsel for the officers and Board of Directors of that institution concerning the right of the complainant to obtain a list of the stockholders of the bank. Baker, who owned twenty shares of the Merchants' stock, objected to the terms upon which that bank was recently consolidated with the First National Bank, and he sued for a writ of mandamus to compel the Board of Directors to allow him to examine the accounts of the bank, to inspect the correspondence which passed between the board and the First National Bank relative to the merger and to procure a list of all the stockholders in the Merchants' Bank.
According to his petition, one of the conditions of the transfer of the Merchants' National Bank business is that the Merchant stockholders are to receive half a share of First National Bank stock for each share of the Merchants stock and also $50 for each share of the stock. Baker complained that the notice sent out by the Board of Directors relative to the liquidation of the Merchants' National Bank was insufficient, and that stockholders were not given an ample opportunity to inquire into the equity and fairness of the merger to the Merchant stockholders. A meeting of stockholders for the purpose of ratifying the action of the Board of Directors had been called for August 3, but in the meantime Baker desired a chance to examine the minutes of the board's meetings, and the correspondence between it and the First National Bank, and the contracts made with the latter bank. He also desired a list of the stockholders so that he could communicate with them relative to their views on the merger.
When the case was called by Judge Kinsey the attorney for the Merchants' National Bank explained that the plan of merger had been assented to by over two-thirds of the stockholders, and that over 8,300 of the 10,000 shares had been voted in favor of the transfer of the business to the First National Bank. The national banking laws, he said, permitted such a consolidation of national banks where two-thirds of the stockholders assented. The meeting of August 3 for ratification of the order of the board, he said, was a mere formality, as a large majority of the stockholders had already assented to the merger. As to the petitioner's request to inspect the records and accounts of the bank. Attorney Dechert pointed to a by-law of the institution that expressly prohibited such an examination, and he contended that under the national banking laws such, an inspection could only be obtained where the petitioner alleged bad faith on the part of the officers or board of directors, wrongdoing or fraud. In the absence of such charges, he urged that the court was without jurisdiction to issue a writ of mandamus.
Attorneys who represented Baker maintained that the averments of the petition were sufficient under the law to warrant the court in granting its writ of alternative mandamus. They cited numerous decisions in support of this contention, and while he admitted that the petitioner had no right to inspect the accounts of the bank for the purpose of disclosing private business to a rival concern, he urged that under the circumstances in the present case the petitioner should be given that privilege. At this point the opposing counsel had a conference at side bar with the judge at the conclusion of which Mr. Dechert stated, "I now understand that the petition for a mandamus will be withdrawn provided the defendant concedes the right to Mr. Baker to take a copy of the official list of stockholders kept at the bank. I shall arrange for that to be done." 26 Jul 1910, Tue
On August 3, 1910, Morris Baker's prepared opposition to the merger of the Merchants' National Bank with the First National Bank came to nothing yesterday, for the stockholders of the former institution stood firmly by the management at yesterday's meeting in the Merchants and Mariners' Building and ratified the deal by the assent of 9121 shares, Mr. Baker mustering only 140 shares in the way of dissent. Out of 217 shareholders, 174 were represented in person or by proxy. It was also noted that the board of directors of the merged institutions, under the name of the Franklin National Bank, should consist of 18 members, an increase of seven over the previous make-up of the First National directorate. Seven of the old Merchants' board were admitted as follows: F. Wayland Ayer, William A. Law, Frederick McOwen, David C. Nimlet, Sylvester S. Marvin, Elihu C. Irvin and Cyrus H. K. Curtis.
The officers of the merged First National were J. Tatnall Lea, president, Wm. A. Law, first vice president, Kenton Warne, second vice president, Thomas W. Andrew, cashier and Charles H. James and Freas B. Snyder, assistant cashiers.
Official Bank Title
1: The Merchants National Bank of Philadelphia, PA
Bank Note Types Issued
A total of $5,700,260 in National Bank Notes was issued by this bank between 1880 and 1910. This consisted of a total of 410,044 notes (410,044 large size and No small size notes).
This bank issued the following Types and Denominations of bank notes:
Series/Type Sheet/Denoms Serial#s Sheet Comments Series 1875 4x5 1 - 25100 Series 1875 3x10-20 1 - 10852 Series 1875 50-100 1 - 9157 1882 Brown Back 4x5 1 - 30000 1882 Brown Back 3x10-20 1 - 24000 1882 Brown Back 50-100 1 - 9203 1882 Date Back 4x5 1 - 2243 1882 Date Back 3x10-20 1 - 1136
Bank Presidents and Cashiers
Bank Presidents and Cashiers during the National Bank Note Era (1880 - 1910):
Presidents:
- George Hay Stuart, 1880-1888
- William T. Wood, 1889-1889
- Andrew Culbertson Sinn, 1890-1893
- Francis Wayland Ayer, 1895-1909
- William Adger Law, 1910 (a featured biography is available)
Cashiers:
- Charles H. Biles, 1880-1884
- Hartman Baker, 1885-1904
- William Adger Law, 1905-1906 (a featured biography is available)
- Thomas Winter Andrew, 1907-1909
Other Bank Note Signers
- There are currently no known Vice President or Assistant Cashier bank note signers for this bank.
Wiki Links
- Pennsylvania Bank Note History
- General information on Philadelphia (Wikipedia)
- General information on Philadelphia County (Wikipedia)
- General information on Pennsylvania (Wikipedia)
Sources
- Philadelphia, PA, on Wikipedia
- Don C. Kelly, National Bank Notes, A Guide with Prices. 6th Edition (Oxford, OH: The Paper Money Institute, 2008).
- Dean Oakes and John Hickman, Standard Catalog of National Bank Notes. 2nd Edition (Iola, WI: Krause Publications, 1990).
- Banks & Bankers Historical Database (1782-1935), https://spmc.org/bank-note-history-project
- The Philadelphia Inquirer, Philadelphia, PA, Tue., Feb. 3, 1880.
- The Philadelphia Inquirer, Philadelphia, PA, Thu., July 3, 1902.
- The Philadelphia Inquirer, Philadelphia, PA, Sat., Jan 18, 1902.
- The Philadelphia Inquirer, Philadelphia, PA, Wed., Jan. 13, 1906.
- The Philadelphia Inquirer, Philadelphia, PA, Sat., Jan. 15, 1910.
- The Philadelphia Inquirer, Philadelphia, PA, Tue., June 14, 1910.
- The Philadelphia Inquirer, Philadelphia, PA, Thu., Aug. 4, 1910
- The Philadelphia Inquirer, Philadelphia, PA, Mon., Nov. 28, 1910.
- ↑ King, Moses. Philadelphia and Notable Philadelphians. New York: Blanchard Press, Isaac H. Blanchard Co., 1901., p. 8a.