11092. Commercial Bank (Natchez, MS)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
June 24, 1845
Location
Natchez, Mississippi (31.560, -91.403)

Metadata

Model
gpt-5-mini
Short Digest
cfb65495

Response Measures

None

Description

Newspaper articles from 1844–1845 report the Commercial Bank of Natchez as insolvent, in a 'state of suspension', and convicted in quo warranto proceedings for multiple charter violations. There is no description of a depositor run in these pieces; the coverage documents legal forfeiture and likely permanent closure/forfeiture of the charter.

Events (1)
1. June 24, 1845 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Court found fraudulent subscription of stock, insolvency, refusal to pay specie, and other charter violations leading to forfeiture; bank already in a 'state of suspension' per articles; legal conviction likely precipitating permanent closure.
Newspaper Excerpt
The Supreme Court of Mississippi has decided against the Commercial Bank of Natchez... If the bank does not plead over or appeal, she stands convicted by the judgment of the court on the demurrers of fraudulent subscription of stock; of failing to require one-fifth of the capital to be paid in previous to going into operation; of becoming insolvent by the mismanagement of its officers, and of a fraudulent refusal to pay specie on their notes; of a failure to establish four branches with certain amounts of capital.
Source
newspapers

Newspaper Articles (7)
1. April 10, 1844 The New York Herald New York, NY
Article from The New York Herald, April 10, 1844

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MONEY MARKET. Tuesday, April 9-6 P. M. Sales of stocks to-day exhibit quite an improvement. Norwich and Worcester advanced 1 per cent; Pennsylvania 5's Harlem Ohio 6's Farmers' Trust 1; Mohawk 1; Canton 1; Illinois North American Trust and Long Island closed firm at yesterday's prices. Sentucky 6's advanced 1. The sales were to a moderate extent, but generally at better prices. The Suffolk Insurance Company, of Boston, have declared a semi-annual dividend of five per cent, payable on the 9th inst. The movements in the stock market indicate a still farther depression in prices. Money is daily becoming more valuable; that is, the banks are drawing in their loans, for some purpose, otherwise than preparing for their quarterly reports. The large government loans held by several of the Wall street banks-the control of which regulates the money market-gives them the power to lighten or depress the price of money and the price of almost every stock sold daily in the street. On the movements of these pet institutions, depends the state of quotations, and the activity or depression of the market. The ruling rates for money in Wall street are now 5 a 6 per cent. The banks demand a fraction more, and for regular discounts, on sixty or ninety days obtain their rates. The loans on stocks are usually made on demand, giving only one day's grace for payment. The danger of a call at any moment, keeps the brokers in constant excitement, and in fear of sudden declines in quotations. A very slight panic would destroy the small margin left, by the late falling off in almost every description. The present depression in the market has continued so long, and prices have reached so low a point, that, as soon as the banks have made up their returns, we may reasonably look for an improvement in the stock market, and an advance of all securities. Money will undoubtedly be worth more during the hurry of business, than it has been through the winter.-The opening of the canal will enable immense quantities of to reach market, on which advances will be re. and which will find employment for a quired, produce used in large stock amount of capital heretofore laying idle, or speculations. Millions of dollars will be absorbed in this way, and pass into circulation through the interior, most of which will eventually find its way back for the purchase of merchandise and for the regulation of exchanges. The moment the bulk of the vast amount of produce in the interior begins to move towards the seaboard, the money market in this and other large cities will tighten and the rate of interest advance. This will in return produce a more legitimate state of trade, and in a measure do away with the symptoms of speculation that have from time to time made their appearance. Most of the staple productions of the country command good remunerating prices, and so far, the supplies have corresponded with the demand. The flour and provision trade is unusually active, with large stocks of articles that come under the latter head, and increasing receipts from the south. The opening of the canals of this State will, doubtless, largely increase the supplies of flour and grain. The present stock of flour in first hands is quite small for the season. With the demand that usually exists on the opening of navigation, it will require heavy receipts to keep up the stock and supply the demand. All these things will find legitimate employment for capital, and it will be used to develope and bring out the true wealth and resources of the country, instead of creating fictitious values to fancy stocks, and instigating speculation in worthless securities, ruining all who are drawn into the whirlpool of excitement produced by the corners that are so by the skilfully managed bulls of Wall street. The meeting of the stockholders of the Merchants' Exchange was privately held in the Directors' room of the Merchants' Bank, instead of in the Exchange, as noticed. It appears that several judgments against the Company will soon reach maturity, amounting to about $20,000. One of $6,000 falls due in a few days. The meeting was called to provide for the payment of these demands, the funds for which are to be raised by subscription, each stockholder giving what he pleases. One house subscribed $3000, and the whole amount raised reached about $10,000. On the payment of these judgments, the bonds of the Company will be extended several years. It is supposed the Company will eventually make such arrangements with their creditors, so that with the reduction in the rate of interest, and the improvement in the receipts from rents, they will again obtain possession of the building. The receipts of specie at New Orleans on the 31st ult. amounted to $73,083, of which $44,218 were from New York. An injunction has been regularly served upon the Assignees of the Union Bank. Mississippi, enjoining and restraining them from) the collection of any debts or claims due that institution until the suit pending in the Circuit Court of Hinds County shall be finally determined. An has also been issued against the Commercia Miss., and legally served on decided steps will bring these a ult. injunction Bank These of Natchez, banks to the bear- 14th ing and result in winding them up as speedily as possible for the interest of the stockholders.

2. May 14, 1844 The New York Herald New York, NY
Article from The New York Herald, May 14, 1844

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MONEY МАНКЕТ. Tuesday, May 14-6 Р. М. A few more days like this, would produce a great panic in Wall street. Long Island declined 4 per cent; Stonington, 5 do; Norwich & Worcester, 4); Pennsylvania d's, ; Farmer's Loan, 1; Vicksburg, 1; Mohawk, 1]; Canton, improved, 2 percent; Reading Railroad, 14; Illinois; Ohio 6's, closed firm at yesterday's prices. The sales were not very large. The ups and downs in the stock market present movements more curious than important. The great fluctnations in fancy stocks are of very little conse-quence. The advances resemble bets, and they have as little influence on the markets as the same excitement in political matters. A party of politicians around Tammany Hall. betting upon the success of any candidate for office, have just about as much effect on the movements of trade as the fluctuations of fancy stocks in Wall street State stocks have-throughout the speculations that have been so great in fancies-remained firm and steady. They have not varied more than two or three per cent, except Illi-nois, which has been used more for speculation than others. A letter, published some time since, from the commissioner of Illinois, now abroad, in relation to the negociations going on in London regarding a loan, has been generally condemned as having a tendency to de-preciate that stock in this market, without there existing any real canse for a decline. The commissioner does not get much credit for what honesty he possesses. The let-ter has knocked down the stock, at all events, and its re-covery depends a great deal upon further accounts from Europe. The Committee for the Tontine Buildings, Wall street, has declared a dividend of fifty dollars per share, paya-ble on demand The Marine and Fire Insurance Company of Richmond, Va, has declared a dividend of 18 per cent for the past year. Bills of the Central Bank, Geo.. amounting to $181,216, were burned on the 4th of May, leaving in active circula tion only about $100,000. On the 6th inst the Angusta and Savannah banks commenced receiving bills of the Central Bank at par. Foreign Exchange rules very high. Prime bills on Lon-don cannot be bought for less than 1081 a 109 On Paris 8274f. The high rates current for foreign exchange at this season, is something very unusual Our imports so far, this season, have been large, and our exports small. This has reduced the balance of trade in our favor, and created a scarcity of foreign bills. The Tremont Insurance Company, of Boston, has de-clared a semi-anzual dividend of twelve per cent, payable on demand. The receiver of the Phenix Bank, Charlestown, Mass, will, on and after Monday, pay a dividend of fifty per cent on all the duly authorised claims against the bank. The Commercial Bank of Natchez, Planters' Bank of do, Commercial Bank of Manchester and the Missis-sippi Union Bank, all of Mississippi, have beer ter-bidden to sue their debtors, by a writ of injunction. This is a very proper move, and will settle the affairs of these institutions very promptly. The annual report of the Treasurer of the Lowell, Mass. Saving Institution, presents a very favorable view of the affairs of the institution, and the industry and economy of the depositors. The funds of the institution amonnt to $575,166, standing in the names of 3113 depositors, average a little more than $185 each. When we consider that the depositors in this Bank are principally operatives in the manufactories of Lowell, we have the best evidence in the world of their condition and prosperity. The num-ber comprises about one quarter of those engaged, conse-quently we have the gratify ing fact that one out of every four employed in the mills of that city, have accumulated a sum, that in sickness or distress, will relieve their wants. This fact is also evidence that the wages of the operatives are remunerating. LOWELL SAVINGS INSTITUTION. Funds. $575,165 Ne of depositors. Av deposite of ca. 3.112 INVESTMENTS $18) Massachusetts scrip $115,000 City of Charlestown, $80,000 Cityf Lowell, 98,000 Cambridge, 20,000 Medford, 6,000 Middeexounty, 15,000 Bond and mortgage, $101.000. The best method to become acquainted with the true condition of the laboring classes, is to examine of the affairs of the different saving institutions of the country. In a time of prosperity the deposits and deposi-tors will increase, and in adverse times, the reverse of this will be experienced. There can be ne better index of the times than this. During the late session of the Legislature of this State a bill was introduced to impose a tax of one tenth of a mill for the payment of the unfunded canal debt of the State. This debt, at the present time, amounts to abont twelve hundred thousand dollars. RECAPITULATION OF THE UNPUNDED CANAL DEBT. For arrearages to Contractors $167,946 40 Do do Engineers. 19,909 00

3. January 1, 1845 The Arkansas Banner Little Rock, AR
Article from The Arkansas Banner, January 1, 1845

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Now, the bank charter, New sir, it intention clear of that the the the fall should below specie instrucstandard. for the 600 tions bonds, for the sold and the which that it granted let its own I refer paper you to which the were only legacy, in of the for the report at are these structions by written A.H. Davies, in states, sale spoken before stated, own report and of the Bank. He substance, govern page reast n 44 of their President that these instruc- in sellof of the commissionerstate ing bonds Arkansas, percent, to this issued the institution at capital. 500,000 first are to bearing of the an interest to form of six a permanent part of its for deprecia. as fest permanent. of the Bank which exchange was instructionaving out further in capital bank paper The same that, objects go direct ted as possible? the accomplishment.org commissioners, of interest the of specie, of the view the necessary to the supply that the Bank Eastern specie bonds, realized sale of the search after they essentially Bank and with either regard credit. 500 deny or Eastern question, and truth, credits, if Eas- had the from the in witnesses their this that the speak, were derived asked committee. all they 10 J. D. for not and would have and specie of bonds sold sold for This legacy. tern funds from the the 500 bonds committee, the have then, committee by Legislatureport, the Becamithsonian made issue upon with a matter blending about the to Beers, monies the with depreciated legacy. of which the last they arising made from the no paper bonds sold taken for the to attention in the state, same succeeded Smithsonian will again, sir, instructions, call your in making which make sale delay, such as Bank, clause you have you will, funds without by deposite, institu- in the to when of the disposition bonds, of the will enable checks this of the plans some to safe realize them part of OB our present checks at such extion Cashier. It is a and sell will our enable us specie, to draw for them, West, as at par for less than points in the Eastern funds amount of not the comand change to our provide an kind of funds for and if you 200,000 of of that our operations: of your own, hasten mencement any operation will do so." can, the exchange, by you that these for instructions the bank, contemplation the Now, sit, you see specie to basis sell all their west.- eastand also avow for the specie at neither points in made home.- eastern ern specie funds to hasten The nor brought were authorised if the the exdeposites one, " they This is true, funds needed, have the had been in the bank; Now, but, sir, I adthat they witnesses, by and Says change shown exchange. required by of were the the funds not. specie obtained when sir, I asked did the mit that some whether the and Williamson, but you the funds questions, negotiation of Sevier answered answers yes; embrace the par value; at these sales-but if had asked for the produce will bear in derived mind from these both centlemen funds wheth- obwould committee bank obtained specie legacy, was they obtained. if tained er the for the Smithson Specie that any matter, by asking How it not have said evade this value, &.c. sir, it But, sir, they did not obtain obtained? Why, that that par their own of the 1 was manifest, from out the stand? is the bank loaning value matter capital showing, of bank. those The was by sir, how does of this the very best cents on the Now, paper fifty paper,dollar, and borrowers, value a of large the they is portion but is can worth forty pay will in nothing. or never bank Arkansas be received Then paid Davies and this sir, for consequently.19 that the of which Mr. But, permanene of of all the is dodging by This Sevier spoke this is have this the told committee par in instructions, his half the capital in tale, the and instructions.ru by body quoting leaving the the out question, relying general report, to shield Col. instructions, and which fidelity and special instructions. the trying final to these in the judgment leave to their sir, re- all on confidence Commissioners: and Sc. Now, pose negotiation, (necessary in these of kind), of the by their sioners discretion do of missions the to general the violate the provisions resolutions powers, any authorise part of the of the Charter, were the special erebound. Commis- Central the illto Board, structions? or the which all the officers legitimate instruc- which this their These, very law sir, formed poor subterfuge save this their mall, viposition tions. committee What are driven that to he did not this olate and sustain the instructions) curious upon to the I have been a little myself, went of Sylvez Sir, and to satisfy examined the files from the time of subject, Bank and and find that say the 9th southern and rose this to the time such and June, State funds ter's Reporter. negotiation purchased Pricultural, commenced, these funds western rose Com- 7 and in in 20 to by value, were say Banks, Planter's, payable discount, at Natchez, up the to broat which bank paper kers 8, for our this suspended or more was mercial that time because from they Commissioned more were sound purchased Now, command valuable; sir, was had this really become because such a large with Corcoran, the othor was it the agreement his friends, cell for

4. June 24, 1845 The New York Herald New York, NY
Article from The New York Herald, June 24, 1845

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$294,593 Loss to the original stockholders The stock is now selling, in this market at 72, at which rate 16,535 shares would make $1,190,520, to which add debts, &c., making the amount $2,012,257, or $158,186 less than the amount charged to construction account. The Supreme Court of Mississippi has decided against the Commercial Bank of Natchez, upon the quo war ranto Act. There were eleven charges of forfeiture against the bank, several of which had been demurred to by her attorneys; and the State had demurred to three of the rejoinders of the bank. The result is that the demurrers of the State to the rejoinders of the bank have all been sustained and the demurrers of the bank to the replications of the State have all been overruled with one immaterial exception-involving the right of the bank to issue bills of exchange-the court deciding tha it had the right. If the bank does not plead over or ap. peal, she stands convicted by the judgment of the court on the demurrers of fraudulent subscription of stock; of failing to require one-fifth of the capital to be paid in previous to going into operation; of becoming insolven+ by the mismanagement of its officers. and of a fraudulent refusal to pay specie on their notes; of a failure to es. tablish four branches with certain amounts of capital. being four distinct causes of forfeiture. If the bank pleads over, we learn that two other causes of forfeiture will be assigned, to wit: the payment of dividends in specie to the stockholders of the bank while in a state of suspension, and the fraudulent issue of notes or bills commonly known as "blue backs," at a time when the bank was insolvent and had no means with which to re. deem the same. We annex a table giving an account of the imports of the principal articles of foreign and colonial merchandise, into Great Britain for the first three months of the year 1845, compared with the imports for the corresponding pe. riod in1843 and 1844. The import of wheat has been much smaller this year than in either of the last two, being only 13,497 quarters against 90,492 in 1844, and 31,110 in 1843, while the quantity taken for consumption has been much larger, being this year 46,722 quarters, against only 8,603 in 1814 and 6,738 quarters in 1843. The stock in the warehouses though undoubtedly large. has been rapidly diminishing. In the face of this diminution in the stock on hand, there is a prospect of a bad harvest throughout the United Kingdom. Of other kinds of grain, both the import and consumption exhibit a great increase over former years. The trade in salted provisions shows no progress as far as the importation is concerned. There has been a considerable increase in the importation of butter and cheese over last year and the year previous. The increase in the trade in these arti cles between Great Britain and the United States within the past two years, has been much greater than this table indicates, as the importations from this country are rapidly driving out of the English markets, similar articles heretofore supplied from the Continent, and even many of the favorite marks manufactured in the kingdom. Cheese from the United States sells in some of the largest markets of England, cheaper than that of a domestic manufacture, and has been pronounced su. perior to any from any section of the world. The quantity of tobacco imported into the kingdom this year, was somewhat less than last, but still enormously in excess of 1843. The quantity cleared for consumption this year was considerably in excess of either of the former years; the quantity re-exported is less than in former years, and both consumption and export put together are hardly equal to the quantity imported; the stock has, therefore, increased 105,529 lbs. The quantities o cured provisions imported into the United Kingdom were as follows: of salted beef 60,633 cwt in 1843, and 106,766 cwt in 1844; of salted pork 27,118 cwt in 1843 and 30,780 cwt in 1844; of hams of all kinds 6,919 cwt in 1843, and 6,732 cwt in 1844 and of bacon 448 cwt in 1843 against 36 cwt in 1844. Of the 106,766 cwt of salt beef imported in 1844, 2,107 cwt came from Russia, 1,255 cwt from Denmark, 930 cwt from Prussia, 5,042 cwt from the Hanseatic towns, 76,660 cwt from the United States of North America, 10,596 cwt from the British settlements in Australia, and 10,016 cwt from the British colonies in North America. Of the 30,780 cwt of salt pork concurrently imported, 24,342 cwt came from the United States, 2,236 cwt from the British North Ameri_ can colonies, and 2,709 cwt from the Hanse towns. Of the 6,732 cwt of hams imported in 1844, 2,616 cwt came from the Hanseatic towns, and 2,704 from the United States. PRINCIPAL ARTICLES IMPORTED INTO GREAT BRITAIN FOR THE FIRST THREE MONTHS OF 1843, 1844 AND 1815. 1012 1046

5. June 27, 1845 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, June 27, 1845

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READING RAILROAD. Business. Tonnage. Week ending June 21, 18438.340 98 4,75 " " " 22, 184411.429 92 9.179 " " " 21, 184525,261 61 22.502 The Trenton State Journal states that Archibald W. Burns, Cashier of the Mechanics' Bank of Burling- ton, was removed from that post, and George Gaskill ap pointed in his stead. Counterfeit one dollar notes, letter D, on the Mo hawk Bank at Schenectady, have made their appearance at Buffalo. The engraving is coarse and ragged, and the general appearance of the bills bad. A slight examina- tion only needed to distinguish them from the genuine. The Customs receipts of the first quarter of the present year, at Philadelphia, ending April 1, 1845, for du ties at the Collector's office, amounted to $642,634 85, and those for the second quarter ending July 1, 1845, are estimated at $520,000. The Directors of the South Carolina Railroad have declared a dividend of $2 25 per share for the last six months. The Pittsburg Gazette says sixty-five tons, part of a lot of Railroad Iron for the Miami Railroad, arrived on Saturday from the Great Western Iron Works, and was shipped on the Ohio Mail. and H. Kinney. The whole amount required by the Company will be about 700 tons, all of which will be furnished by the Great Western Works. The case of the Commercial Bank, of Natchez, which was carried to the Supreme of Mississippi, was decided a few days since under the quo warranto act. There were eleven charges of forfeiture against the bank. If the bank does not plead over or appeal, she stands convicted by the judgment of the Court onthe demurrers of fraudulent subscriptions of stock-of fail ing to require one-fifth of the capital to be paid in previ ous to going into operation-of becoming insolvent by the mismanagement of its officers, and of a fraudulent refusal to pay specie on their notes--of a failure to estab- lish four branches with certain amounts of capital, being four distant causes of forfeiture. If the bank plead over, two other causes of forfeiture will be assigned, to wit: the payment of dividends in specie to the stock holders of the bank while in a state of suspension, and the fraudulent issue of notes or bills commonly known as 'blue backs' at a time when the bank was insolvent and had no means with which to redeem the same. In the Circuit Court of Adams county, on the 10th inst in the case of the State vs. the Planters' and Agriculture Banks, the pleadings presented the question whether a continued state of suspension caused a forfeiture of their charters. The Court, says the Mississippian, on demur- rer to the replication of the State, alledging this fact, de- cided that such continued suspension of specie payments amounted to a violation of the charters of banks. It is understood the counsel of the Banks will take an appeal to the High Court. Application has also been made for the appointment of a Receiver for the Union Bank. The application comes from two or three Tennessee Banks and other creditors of that prostrate institution. At New Orleans Exchange was as last quoted, Sterling 91 @10, Francs 5 27½@5 25, on the North, Sight bills ¼@½ prem. At Louisville Eastern Exchange 1 per cent prem. at the banks, and 1 ¼ cent out of doors and abundant Money is plenty, and nearly all the good business paper offered at the banks is taken.

6. July 10, 1845 Indiana State Sentinel Indianapolis, IN
Article from Indiana State Sentinel, July 10, 1845

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At Natchez, Mississippi, the opinion of Judge Cage has been given against the Commercial Bank, against which there were eleven charges involving forfeiture. The Bank stands, convicted by the judgment of the court on the demurrers of fraudulent subscription of stock; of failing to require one-fifth of the capital to be paid in previous to going into'operation of becomming insolvent by the mismanagement of its officers, and of a fraudulent refusal to pay specie on their notes; of a failure to establish four branches with certain amounts of capital, being four distinct causes of forfeiture. If the bank pleads over we learn that two other causes of forfeiture will be assigned, to wit: the payment of dividends in specie to the stockholders of the bank white in a state of suspension, and the fraudulent issue of notes or bills, commonly known as "blue backs," at a time when the bank was insolvent and had no means with which to redeem the same.

7. August 12, 1845 The Kalida Venture Kalida, OH
Article from The Kalida Venture, August 12, 1845

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03 At Natchez, Mississippi, the opinion of Judge Cage has been given against the Commercial Bank, against which there were eleven charges involving forfeiture. The Bank stands convicted by the judgment of the cour on the demurrer, f fraudulent subscription of stock; of failing to require one fifth of the capital to be paid in previous to going into opération; of becoming insolvent by the mismanagement of its officers, and of a fraudulent refusal to pay specie on their notes; of a failure to establish four branches with certain amounts of capital, being four distinct causes of forfeiture. If the bank pleads over we learn that two other causes of forfeiture will be assigned, to wit: the payment of dividends in specie to the stockholders of the bank while in a state of suspension, and the fraudulent issue of notes or bills, commonly known as " blue backs," at a time when the bank was insolvent and had no means with which to redeem the same.-Cin. Enquirer.