12460. American Exchange Bank (Cape May Courthouse, NJ)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 20, 1854
Location
Cape May Courthouse, New Jersey (39.083, -74.824)

Metadata

Model
gpt-5-mini
Short Digest
31b0461a768c6769

Response Measures

None

Description

Contemporary reports (Jan 1854) state legal proceedings were commenced and that the American Exchange Bank 'has been closed by law.' A subsequent notice (June 1855) records an injunction restraining the bank from exercising its privileges and directing redemption of its notes at the State Treasury. There is no description of a depositor run in the articles; the closure appears to be by court/government action. OCR inconsistencies (e.g., 'Cape May Court House' appears also as 'Cape May Court House' and 'Court House') were corrected. Dates correspond to the newspaper publication dates reporting the actions.

Events (2)
1. January 20, 1854 Suspension
Cause
Government Action
Cause Details
Legal proceedings commenced against the bank; closed by law per report of NJ Bank Commissioners (reported Jan 1854).
Newspaper Excerpt
Legal proceedings have been commenced since the last report against the American Exchange Bank, Cape May Court House. The American Exchange Bank has been closed by law.
Source
newspapers
2. June 7, 1855 Other
Newspaper Excerpt
An injunction having been issued from the Court of Chancery restraining the American Exchange Bank at Cape May Court House from exercising any of the privileges or franchises granted under the State act, the notes will be redeemed at the Treasury office at Trenton, on and after July 20.
Source
newspapers

Newspaper Articles (4)
1. January 20, 1854 The New York Herald New York, NY
Article from The New York Herald, January 20, 1854

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Article Text

The receipts the office or the Assistant Treasurer of this port to-day, were $244,085 86; paid, $155,480 17; be. Jance, $3,317,473 41. The committee appointed by the Board of Brokers have reported that the first issue of bonds by the New York Dentral Railroad Company given for the premium on the stock of companies forming the constitution, shall hereafter be known as the New York Central Railroad bonds The issue given for subscription to the stock of the Lake Shore and Great Western Railroad companies shall hereafter be known as New York Central Railroad subscription bonds. The bonds are all of the same date, and mature in 1880. The Albany Atlas of last evening says :The Board of Directors of the New York Central Railroad Company will meet here on Friday next to declare their dividend from the carnit gs of the road from the 1st of May to the 1st of February, last. The earnings of the road will amount to & net sum sufficient to declare six per cent, and leave a handsome sum after paying interast OD the debt, and laying aside the sinking fund of 1) per cent. What the dividend will be is of course unknown, though it will certainly not be less than four per cent, which will probably be the measure of the semi annual divi dends. It will be paid in cash on the 1st of February proximo. The report of the New Jersey bank commissioners to the Legislature furnishes the following information reistive to the banks under the general laws of the State:The City Bank at Cape Island has closed its busineas, and the Bank of Cape May Company has been started ia its place. Its stock in generally owned in the county, and it is doing a bona fide business. A new bank called the Mechanics' and Traders' Bank has been established in Jersey City since the last report, which is also bona fide, and apparently sound and healthy The Hudson County Back, Newark City Bank, Borden town Banking Company, and Central Bank, at Hightown conduct & legitimate business. and deserve the confidence of the community. The Hudson Company, the Borden town Banking Company, and the Central, have applied for an obtained an increased amount of stock. &The Ocean Bank at Bergen Iron Works, the Delaware and Hudson at Tom's river, the Merchants' Bank at May's landing, the Atlantic at Cape May Court House. the Far. mers' at Freehold, and the Tradesmen's at Flemington, are in process of liquidation. Legal proceedings have been commenced since the last report against the American Exchange Bank, Cape May Court House, the Bank of America do, and the Traders do. The American Exchange Bank has been closed by law. The proceedings against the other banks have been suspended, they having complied with the law. The case of the Merchants' Bank at Bridgeton is still before the Chancellor The Commissioners cannot say as to the character of the Public Stock Bank, Belvidere, the Passaic County Bank at Paterson, the Wheat Growers' at Newton, the Bank of North America at Flemington, and the America Bank Treaton; but no legal complaint has been made concerning them. The Commissioners recommend the enastment of a supplement to the general law, with the following fea tures 1. No bank to have notes from the Treasurer till a certificate is given that their capital stock is paid in, in spesie. 2. No bank to organize till $30,000 is placed with the State Treasurer. 8. No bank to receive notes till the Bank Commission are certify to their possessing a Lona fide banking house. 4 Three directors to be residents of the place where the bank is located. 5. Annual statements hereafter to be made to the Bank Commissioners. 6. Stockholders to file certificates that they are bona fide owners of the stock registered in their names 7. The Commissioners' approval of the location of B bank to be necessary to its going into operation. The eighth annual report of the Macon and Western ,Railroad Company gives the following statement of receipts and disbursements for the year 1853 :MACON AND WESTERN (GEO.) RAILROAD.

2. January 21, 1854 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, January 21, 1854

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Article Text

The Bates Manufacturing Company has declared a semiannual dividend of 4 cent, payable Feb. 1. The Bay State Mills have also declared 4 ₽ cent. The report of the New Jersey Bank Commissioners to the Legislature furnishes the following information relative to the Banks under the General Banking Law of the State: The City Bank at Cape Island has closed its business, and the Bank of Cape May Co. has been started in its place. Its stock is generally owned in the County, and it is doing a bona fide business. A new Bank, called the Mechanics and Traders' Bank, has been established in Jersey City since the last report, which is also bona fide, and apparently sound and healthy. The Hudson County Bank, Newark City Bank, Bordentown Banking Co., and Central Bank, at Hightstown, conduct a legitimate business, and deserve the confidence of the community. The Hudson Co., the Bordentown BankCo., and the Central, have applied for and obtained an increased amount of stock. The Ocean Bank, at Bergen Iron Works, the Delaware and Hudson at Tom's River, the Merchants' Bank at May's Landing, the Atlantic at Cape May Court House, the Farmers' at Freehold, and the Tradesmen's at Fleming ton, are in process of liquidation Legal proceedings have beer commenced since the last report against the American Exchange Bank, Cape May Court House: the Bank of America do., and the Traders' do. The American Exchange Bank has been closed by law. The proceedings against the other Banks have been suspended. they having complied with the law. The case of the Merchants' Bank, at Bridgeton, 18 still before the Chancellor. The Commissioners cannot any as the character of the Public Stock Bank, Belvidere the Passaic County Bank, at Paterson: the Wheat Growers', at Newton; the Bank of North America, at Flemington, and the America Bank, at Trenton: but no legal complaint has been made concerning them. The Commissioners recommend the enactment of a supplement to the general law, with the following features: 1. No Bank to have notes from the Treasurer till a certificate is given that their capital stock is paid in, in specie. 2. No Bank to organize till $30,000 is placed with the State Treasurer. 3. No Bank to receive notes till the Bank Commission ers certify to their possessing a bona fide banking house. 4. Three Directors to be residents of the place where the Bank is located. 5. Annual statements hereafter to be made to the Bank Commissioners. 6. Stockholders to file certificates that they are bona fide owners of the stock registered in their names. 7. The Commissioners' approval of the location of a bank to be necessary to its going into operation. The annual meeting of the Troy and Boston Railroad was held at Troy on Tuesday. The whole cost of the road to the 1st of October was $1,080,405. The stock paid in amounted to $437,830, leaving $69,410 to be collected. The total debt was $694,757, of which $235,757 was floating. The

3. June 7, 1855 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, June 7, 1855

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Article Text

The price of passage on either of the steamers which left San Francisco on the 16th, was $250 in the First Cabin, $175 in the Second Cabin and $120 in the Steerage. The State Treasurer of New-Jersey has given notice that an injunction having been issued from the Court of Chancery restraining the American Exchange Bank at Cape May Court House from exercising any of the privileges or franchises granted under the State act, the notes will be redeemed at the Treasury office at Trenton, on and after July 20. The foreign news had a favorable effect on Cotton to-day, and there was considerable business done at an advance of f@ic. P lb. Breadstuffs are lower under the news. Flour fell off 12}@182c. Sales of State at $9 75 @ $10. Wheat was also easier. Corn was quite heavy at 3@4c. decline. Beef and Pork are firm. The commercial advices from Europe are very favorable. An enormous business had been done in Cotton at better prices. Money continued very abundant, and gold was pouring in from all quarters. In two days nearly two millions and a half of dollars had been received, and over £600,000 was known to be on the way from Australia. The previous week showed a large gain of the precious metals over the shipments. The average stock of bullion held by the Bank of England in both departments during the month ending the 14th of April was £15,057,161, being an increase of £1,542,855 as compared with the previous month, and an increase of £874,543 when compared with the same period last year. The News of the 23d, received by the Washington, says: "The English funds experienced a further rise of no less than I P cent to-day, and closed at the best point of the day. The rise was mainly caused by the reduction of the rate of interest on the June Exchequer Bills from 24d. to 2d. P cent per day, and other indications of the increasing abundance of money, coupled with continued investments on the part of the public, which have caused stock to be again in much demand for immediate transfer, despite the creation from the new loan. An installment of 15 P cent fell due to-day on the loan, absorbing the large sum of £2,400,000, but it seemed to exercise no influence whatever on the money-market, which continues extremely easy. To a considerable extent this payment had been made in anticipation. One-fourth of the Government loan has now been paid up, amounting to four millions sterling, yet the downward tendency in the value of money continues unchecked. In the Stock Exchange money is 80 plentiful at present that there is little or no immediate employment for it even at the morely nominal rate of 1 to P cent on Governisent securities. In view of the moderate requirements of trade, and the large arrivals of gold, which are also retained in this country, a further reduction in the Bank of England rate of discount is looked for. This state of things produces a general desire to invest, and all good securities are consequently in demand. At the same time few sellers offer, and thus a material upward movement is established in prices, with comparatively limited transactions, and with little speculative aid." After this date Consols advanced to 91f@91}, being 2 P cent improvement on the last quotations. There must be a prevailing impression in London that the prospects of peace are favorable. From Birmingham it is mentioned that the suspension of Messrs. Davies, ironmasters, of West Bromwich, for £200,000, has been followed by that of Messrs. Toy & Son, tubemakers at the Soho Works, for £60,000. In both cases it is hoped arrangements will be made to avoid bankruptcy. Several minor concerns have also stopped. The Auditor of the State of Indiana notifies those holding the circulating notes of the Merchants' Bank at Lafayette, Merchants' Bank at Springfield, Green County Bank at Bloomfield, Government Stock Bank at Lafayette, Laurel Bank at Laurel, Bank of Connersville at Connersville, Wabash Valley Bank at Logansport, Bank of T. Wadsworth of Hartford at Michigan City, to return the same to the office for cancellation on or before the 15th day of July next, that the outstanding circulation may be determined as accurately as possible and a pro rata dividend thereon declared. Certificates for the amount returned will be issued, and the dividend on the respective banks paid upon Presentation of the certificates at the Auditor's office after the 15th of August next. The Philadelphia Ledger says: We have a report by telegraph from Lancaster of the failure of the Lancaster Savings Institution. The deficit is stated at $300,000, and the assets at about $120,000. A charge of embezzlement it is said is preferred against one of the parties interested.

4. June 11, 1855 The New York Herald New York, NY
Article from The New York Herald, June 11, 1855

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Article Text

I Total $63,245,655 63,373,976 128,321 The cash receipts of the Morris Canal for the week ending on Saturday, 2d inst., were $8,816, against $7,570 for the corresponding work last year, being an increase of $1,276. The receipts for the year up to the 26th alt. were $51,312. against $45,458 to same date last year, being an increase thus far this year of $5,854. At a meeting of the Western Railroad stockhold ers, held on Tue day, the 5th inst., it was decided, by the large majority of two to one, not to accept the act of the Legislature which authorizes the company to issue six per cent bonds, to pay for the purchase of the Hudson and Berkshire Railroad, and construct a second track from Springfield to Albany. After this vote was decided, a reconside. ration was called for, on a "stock vote," and carried. The question or acceptance was then taken and decided in the affirmative. The Courier says:The opponents of this measure have used great exer. tionsto defeat it, but finding themselves in the minority, submit to the result in the cheerful spirit of true republicanism. doubtedly more The increasing. than c line un. formed without the completion of the second track, and the managers express the confident belief that there will be no curtailment of the regular dividends. The sinking fund already amounts to $30 per share, and the stock ought fetch par, including the July dividend. The state Treasurer of New Jersey has given no. nce that an injunction having been issued from the Court of Chancery restraining the Americau Exchange Bank at Cape May Court House from exerclaing any of the privileges or franchises granted under the State act, the notes will be redeemed at the Treasury office at Frenton. on and after July 20. The gross receipts of the Hudson River Railroad Company during the eight months ending May 31, 1855, amounted to $1,345,252 05, against $1,199,954 53 for the corresponding period the previous year, showing an increase of $145 297 52. The Newark Advertiser gives the following sy nopsis of the decision of the Chancellor of New Jersey in the case of the Morris and Essex Railroad. The company will probably appeal, as the points at issue are of the greatest importance:The Chancellor appears to have given much time and attention to the subject, which is not only important to this city, but of very general importance, inssmuch as it is deemed to settle the law in the case. The opinion, we are informed, is very erudite, and exhausts the subject. The court comes to the conclusion that no railroad company, in the absence of legislative permission, has a ight to lay its railway along any public highway, in town or country, with the consent of the proper authorities-it indeed, any other than legislative authority can effectually be given in the premises. If a company does, without such authority. thus lay down its track, the track becomes at once a public nuisance or obstruction to the street or highway, and as such may forth with be removed. The Chancellor, we understand, retains the injunction for a short time, to afford the complainants an opportunity to appeal from the decision, if they shall see fit to do so. The opinion and judgment of the court fully sustain the action of the city authorities in the matter and but . short time will elapse before the final adjudication of the matter will have taken place, even though an appeal be taken. Should no appeal be taken, however, in & rea. sonable time, the injunction will be removed. of course, and the Common Council permitted to remove the track. In this case it may be done, in fact, at the expense of the parties claiming to own the track, for it is provided, we believe, by section 5 of the ordinance, entitled "An ordinance to remove obstructions from the streets and for other purposes." that the Street Commissioner, Mayor. or any or either of the members of the Common Council, may order any article or thing whatsoever which they may deem an obstruction or nuisance in or upon any street of the city, to be removed, and if it be not removed forthwith, then to remove and seil the same, and out of the proceeds of the sale reimburse the city for the expense of the removal of the obstruction. We understand that the Chancellor has made no order yet to remove the track, and the city will not move fur. ther in the matter till official authority to do so is recoived. The receipts of the Beaver Meadow Railroad and Coal Company, since the commencement of the sea$54,429 58 son to the 2d inst, amount to 36,022 To correspending date last year $18,406 79 Increase (over 50 per cent) The coal tonnage for the past week was 14,641 tons, against 11,072 tons in the corresponding week last year. The State Auditor of Indiana notifies holders of the circulating notes of the Merchants' Bank at Lafayette, Merchants' Bank at Springfield, Greene County Bank at Bloomfield, Government Stock Bank at Lofayette, Laurel Bank at Laurel, Bank of Connersville at Connersville, Wabash Valley Bank at Logansport, Bank of T. Wadswortb, of Hartford, at Michigan City, to return the same to the office for cancellation, on or before the 15th day of July next, that the outstanding circulation may be determined as accurately as possible, and a pro rata dividend thereon declared. Certificates for the amount returned will be issued, and the dividend on the respective banks paid upon presentation of the certificates at the Auditor's office, after the 15th of August next. The Lancaster Daily says, in relation to the failure of the Lancaster Savings Instititution, through its Treasurer, Mr. Boughter:The amount of defalcation is reported to be $300,000. Before his arrest Mr. Boughter had assigned over to the trustees all his real estate and other property, amounting in value to $120,000, leaving an unbalanced deficit estimated at $180,000. The capital stock of the institution was $50,000, all paid which, taken from $180,000, leaves $130,000 to be lost by the depositors. The depo. aits are set down at $550,000; and from this statement it is estimated that the depositors will realize from 75 to 80 per cent on their deposits. Some seem inclined to believe that they will eventually realize the whole, and that the institution will be again put into operation. The Auditor of the State of Obto has just issued his report for the last fiscal year. The revenue and expenditures were as follows:-FINANCES OF OHIO-RECEIPTS AND DISBURSEMENTS. Receipts. Taxes of 1853, and delinquencies of pre$2,851,571 vious years. 477,264 26 Canal tolls, fines, water remts, &e 39,813 13 Dividends on railroads and other stocks 106,250 82 Surplus revenue-principal and interest 149,748 51 Proceeds of sales of school lands 93,455 Other sources 762,830 57 Balance in State Treasury Nov. 15, 1853