The Merchants National Bank of Helena was originally founded by Lewis H. Hershfield as a private bank in Virginia City, Montana Territory, under the name L.H. Hershfield & Co. Lewis H. Hershfield was born in Oneida County, New York, on August 21, 1836. After spending a few years in St. Louis, Missouri, working for a wholesale notion house, he moved to Leavenworth, Kansas, in 1859. He stayed there only briefly, moving on west to follow the Pikes Peak gold rush to Colorado with an ox train of goods. Hershfield remained in Central City, Colorado, until 1864 when Montana's gold rush called him north. In Salt Lake City he loaded 26 wagons with trade goods and travelled to Virginia City, arriving July 3, 1864. He sold his merchandise to Monroe Salisbury for gold dust which he used to set up a gold trading business. This he eventually formalized as the banking house of L.H. Hershfield & Co. When the gold excitement shifted to Helena, Hershfield left his partner A. Hanauer in control of their Virginia City business in November 1865, and centered his own efforts in establishing a bank in Helena. At first he located his Helena bank on Bridge Street, but as that location declined in importance he opened a branch bank on Main Street. Thus for a brief period during 1867, L.H. Hershfield & Co. operated three banks. However, the Bridge Street office was closed in late 1867 and the Virginia City office in August 1868. In 1867 Lewis Hershfield's younger brother Aaron Hershfield came to Helena to work in the bank. The following year, when Hanauer closed the Virginia City office, Aaron was brought into the business as a full partner to replace Hanauer, and the name of the business was changed to L.H. Hershfield & Bro. Lewis served as president and Aaron as cashier until Aaron resigned in 1895. In 1882 the Hershfields received a national charter for their bank under the name Merchants National Bank, with an increased capitalization of $150,000. They also began expanding their investments into mines, and into various banks around the state. At various times they held interest in the Bank of Northern Montana in Fort Benton, the First National Bank of White Sulphur Springs, the First National Bank of Kalispell, and the State National Bank of Miles City. Aaron Hershfield was especially active in these outside investments, serving as an officer of several of the banks. In February 1897, faced with the rapid withdrawal of money by depositors following the failure of the First National Bank of Helena, the Merchants National Bank suspended operations and accepted a receivership. Eugene T. Wilson was appointed as receiver for both the Merchants and the First National Bank. Wilson completed the lengthy process of winding up the banks' affairs in 1903. Believing the Hershfield brothers to be criminally liable in their management of the bank, Wilson supported an indictment which was filed against them. However, in August 1900, Judge Hiram Knowles directed their acquittal due to lack of evidence. Lewis H. Hershfield died in New York City on December 4, 1910, and his brother Aaron died in the Lewis and Clark County poor farm on June 27, 1918.