12861. Nemaha Valley Bank (Brownville, NE)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
September 1, 1857*
Location
Brownville, Nebraska (40.398, -95.658)

Metadata

Model
gpt-5-mini
Short Digest
9c177376

Response Measures

None

Description

Contemporary newspaper reports (Oct 1857–Feb 1858) list the Nemaha Valley Bank of Brownville as having suspended in September 1857 and thereafter showing no signs of resuming business. Coverage places the suspension in the context of the wider 1857 financial panic; no article describes a depositor run specific to this bank or a later reopening. OCR variants (Brownville/Brownsville) corrected to Brownville (NE).

Events (1)
1. September 1, 1857* Suspension
Cause
Macro News
Cause Details
Suspension occurred during the widespread financial breakdown/panic of 1857 affecting multiple Nebraska banks; reported as shutting in September 1857 with no subsequent revival.
Newspaper Excerpt
The following bank have suspended in Nebraska: Nemaha Valley Bank, of Brownville; ... They shut down on the holders of their bills and depositors in September last, and have since given no evidence of vitality
Source
newspapers

Newspaper Articles (7)
1. October 9, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, October 9, 1857

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their counters the notes of the Merchants' (Independent) Bank of Lynchburg. The Albany Argus of this morning, in alluding to the agreement of the Milwaukee banks to receive the notes of all the Wisconsin banks on deposit, cites the action of the Legislature of New-York, at the time of the suspension in 1837, making such a course obligatory with our banks, and says: We fear that, when it is too late, the banks of this State will see the absolute necessity of some similar arrangement in the present crisis, and mistake, in not adopting it in season to prevent & greater eatastrophe. There may be, indeed there doubtless are, difficulties in the way of carrying out a system of mutually receiving and paying out the currency of all the banks; but we incline to think that an honest effort in that direction by the banks of New-York and this city would surmount them, and that the adoption of such a plan would remove all danger of the suspension of specie payments. It would carry the country banks-solvent, but, under the irability of their debtors to pay, pressed with their redemptions-o the present crisis, and enable the whole banking system of the State gradually to contract and adapt itself to the changing circumstances of the country. If some system of this kind be not adopted, it is not easy to see where the present tendency of things is to stop short of the general suspension of specie payments. " We do not doubt that the banks of this State are, with hardly an exception, solvent. Certainly the bill holders, protected as they are by the securities in the Banking Department, are safe. It is only the stock. holders and the debtors of the banks who are in dan ger of loes. The latter may be ruined by the forced collection of their debts, when 8 gentler process would be better not only for them, but also for their creditors. Forbearance is the only preventive of a serious aggravation of the present difficulties, and it is high time for the city banks to look at this subject and to exercise a wise forecast in the adoption in season of preventive measures. At Philadelphia, The North American says: The money market is without any new feature today, and prime paper goes slow, the best names only passing at 11 @2 per cent per month. There is & steady demand for specie, and the brokers' quatations for gold are from 41 to 6 per cent premium. New York Exchange is selling at 41@54 per cent advance on current bank funds. From The St. Louis Republican. The difficulties about bank issues are now worse than ever. There seems to be an indiscriminating warfare against bank notes, no matter whence issued. Bills of banks which have not suspended, and which probably will not suspend, are refused equally with the bills of banks notoriously broken. The conse. quences are that men find themselves called on to pay in gold and silver at a time when it is almost impossible to get it. We are beginning to see the result in the curtailment of business and the discharge of work. men. The evil will go on in that direction-unless we replenish our currency-until we shall see in St. Louis a scene never before witnessed here; of unemployed men and starving families begging bread. We want some movement which shall either restore the bills of good banks to their former favor as currency, or which shall bring the gold here. by bringing here the produce that commands the gold. Country collections are yet slow and difficult, and it may be that some extraordinary means must be used, if we expect any re. ceipts of produce worth naming for the balance of the season, and would not see trade as stagnant for months to come as it has been for the few weeks that are past. From The Buffalo Courier. For the first time in many years the sound of the hammer and the saw is not heard in our ship-yards. Not a new vessel has been placed on the stocks this Fall, and scarcely a man can beseen in various yards, excepting the few employed in finishing the ferry-boat for the Lake Huron Railway Company. The usual force employed in yards is about fifteen hundred men, not one of whom can be employed there the coming Winter. In many other of the manufacturing branches of business large numbers of hands have been discharged, with no prospect of employment before Spring. There are at this moment more mechanics out of employment in Buffalo than at any time heretofore. From The Missouri Democrat To-day has been blue Monday "-the weather dark and rainy, and the financial sky all portentous and gloomy. About 1 o'clock, the eminent banking house of Jas. H. Lucas & Co., its owners representing property to the amount of three or four millions of dollars, closed its doors. The immediate cause was & steady and disastrous run of this morning, during which about $160 was checked out. The house has been weakened, Iday after day, for a week or two past, by the fears of its depositors; and on Saturday evening, after the suspension of E. W. Clark & Bros. it was anticipated by many that its doors would not open this morning. Up to 11 and 12 o'clock the chief partner of the house was still sanguine of being able to sustain all demands. The suspension closes the doors upon a large amount of deposits, which circumstance will contribute still greater of alarm and embarrassment to the already panic-struck money circles. The solvency of the house, of course, cannot be doubted for a moment, and all creditors, we are confident. entertain no fears about the ultimate realization of their funds. A run upon others of the Main-street houses, and the several Savings institutions of the city is anticipated to-morrow morning. If the run should be heavy, the results would be disastrous; but we are pleased to know that the majority of depositors in several of our remaining institutions are of a kind less excitable, and will not, in any foolish alarm, be guilty of amovement which, when once inaugurated, is sure to defeat the very objects desired to be accomplished. Let your money alone in the bank, and tell your neighbor to do the same. The alarm following the suspension of James H. Lucas & Co. was immediately followed by a slight run upon several other houses, and there was quite a crowd at the State Bank, who were anxiously converting its paper into gold. According to announcement, a meeting was held this morning at the Exchange, to take measures for the adjustment of the currency difficulties. The attendance was very large, and & deep feeling was evident. The proceedings of the meeting will be found in another column. From The Nebraska News. The following bank have suspended in Nebraska: Nemaha Valley Bank, of Brownville: Fontenelle Bank, of Bellevue; Western Exchange Fire and Marine Insurance Co Omaha City. They have merely suspended, and we would not advise bill-holders to fret themselves, or discount notes on these banks at ruinous rates, as they may come up again. The Independent contains the following reported failures, assignments, &c, for the week: Marcus Hull, Hinesburg, Vt., failed and assigned. J. W. Clarke & Co., Bankers, Boston, suspended. Lawrence, Stone & Co., Boston, New York and Philadelphia, Dry Goods Commission Merchants, suspended. S. Frothingham, jr., & Co, Dry Goods Commission," Boston, Butler, suspended. Keith & Co., " Hardware, Boston, suspended. Richardson, Kendall & Co., Dry Goods, Boston, suspended. Dutton, Baldwin & Macomber, Dry Goods Commission," Boston, Sweetzer, suspended. Gookin & Co., Dry Goods." Boston, suspended. Moses Pond & Co., Stoves,' Boston, suspended. Parsons, Cutler & Co, Dry Goods," Boston, suspended; lia. bilities $400,000. Benjamin Howard, Commission," Boston, suspended; liabilities not large, and means supposed to be ample to pay in full. Stephen Bartlett, Sugars, Boston, suspended. Peter C. Jones, Paper, Boston, suspended. Blake. Barnard Co., Agricultural Implements,' Boston,

2. October 10, 1857 The New York Herald New York, NY
Article from The New York Herald, October 10, 1857

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NEBRASKA TERRITORY. ONE SOUND BANK IN THE WEST. [From the Nebraska City News, Sept. 26 The Platte Valley Bank is located at Nebraska City, and thus far it has withstood the financial breakdown, on each side of it, firmly and unfalteringly. Its issue is redeemed in gold every day of the week, (Sundays only excepted,) at tis counter in this city. We believe that the Platte Valley Bank cannot fail. Its circulation is small, it having drawn in its issues gradually for the last six months, and its vaults contain more than enough specie to redeem more than twice the amount of its circulation. Other banks have failed, and others will, but the ci izens of Nebraska City are determined that the Platte Valley shall not go down, and so hardly a day passes but what the officers are tesdered heavy specie deposits by the citizens. Oa the first day of the excitement created by the failures at Omaha City and Bellevue, over ten thousand dollars specie deposits were received. The following banks have suspended in Nebraska:Nemaha Valley Bank, of Brownville. Fontenelle Bank, of Bellevue. Wesern Exchange, Fire and Marine Insurance Company, Omaha City.

3. November 21, 1857 The Council Bluffs Nonpareil Council Bluffs, IA
Article from The Council Bluffs Nonpareil, November 21, 1857

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Broken Banks-Read! E WILL TAKE FOR THE NEXT THIRTY DAYS W the bills on the following Broken and Suspended Banks, at 50 cents on the dollar, for merchandize: Nemaha Valley B'k, Brownville; Agricultural B/k, N. Y. Dairyman's Bank, N. Y.; Worthington Bank, N. Y.; Niagara River Rank, N. Y.; Hollister Bank; Oliver Tee's Bank; Ontario Bank; Bank of Orleans: Hugenot Bank; Bank of Medina; Hamilton Exchange Bank; Oneida Central Bank, and Bank of Tecumseh. And the following at 25 cents on the dollar-Reciprocity Bank; Sackett's Harbor Bank; Troy City Bank; Tompkins Co. Bank, and Yates Co. Bank. Fontenelle Bank, of Believue, 40 cents. REMEMBER-for 30 days only. n27-1m MCBRIDE & BOWEN.

4. February 15, 1858 Daily Iowa State Democrat Davenport, IA
Article from Daily Iowa State Democrat, February 15, 1858

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From the Chicago Times. Nebrasks Brnks. is a just and universal hostility in against Nebraska money. But, in to several good banks in Nebraska, the following article from the Nebraskaian: NEBRASKA BANKS. the first bank of issue was organNebraska, we depreciated it as an event, believing, as we did, ultimate effect would be an injury people. We have always taken the of opposition to all banks, believing at variance with the first priciples of economy. Indeed, so strong was in the Territory, and in the first Assembly against banks, that who asked for the first bank charnot ask for a charter granting emprivileges as a bank, but effected their object by procuring a charter insurance company, authorized to redeposites, and "under such regulations be prescribed by the laws of said to issue certificates therefor."this clause, the company proceeded ganize a regular bank of issue, and in imilitude of bank bills, put in e.reulacertificates of deposit toa large amount. company (Western Fire and Marine Incontinued from its organization up ptember last, to enjoy a high degree of when it burst up and disclosed the that it had done business for a long solely on credit, its capital stock havwithdrawn by its owners, One of issue having been instituted, it becomparatively easy, through the agen"a weak need Governor, to procure charter of others. Accordingly, the eeding legislature chartered FIVE banks; was followed last winter by the creamore. two of advantage of a general law of the in relation to corporations, two banks have also been put put in opeThis law, however, was repealed he legislature of last winter, which puts to any more creations in that diOwing to the failures that have and a consequent general feeling the creation of any more banks, no attempt was made in the late legiswhich has just expired, to procure more charters. It may, therefore, be lown as a fixed fact that no more banks be created in Nebraska. the above ten banks, three have failed, now in a failing condition, and one: is giving premonitory symptoms of judging from a recent act of the uatulating Legislature at Florence by it is authorized to suspend for six and without requiring it to have specie in its vault, to issue three dollars to every one of capital stock. We to the Platte Valley Bank, at NebrasOne of the before-mentioned three Bank of Fontenelle, at Beilevue,) is a cock in the pit, and sleeps the sleep knows no waking. The Nemaha ValBank, at Brownville, and the Western and Marine Insurance Co., at this place to be only suspended. They shut on the holders of their bills and dein lost and have since

5. February 17, 1858 The New York Herald New York, NY
Article from The New York Herald, February 17, 1858

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The Nebraska Banks, [Fr the Omaha Nebraskian, Feb. 41 When the first bank of issue was organized in Nebraska we deprecated it as an unfortunate event believing as we did, that its ultimate effect would be an Injury to the peo. pie. Indeed, 80 strong was the feeling in the first year of the Territory, and in the first Legislative Assembly against banks, that the party who asked for the first charter dare not ask for a charter granting emphatic privaleges BS n bank, but effected their object by procuring & charter for an insurance company, authorized to receive deposits, and "under such regulations as might be prescribed by the laws of said company to issue certificates therefor. Under this clause, the company proceeded to organize R regular bank of issue, and, in the similitude of bank bills, put in circulation certificates of deposit to a large amount. This company-Western Fire and Marine Insurance-continued from its organization up to September last, to onjoy a high degree of credit, when it burst up and disclosed the fact that it had done business for a long time on credit, its capital stock having been with drawn by its owners. Que bank of issue having been instituted, it became comparatively easy, through the agency of a weak kneed Governor, to procure the charter of others Accordingly, the succeeding Legisla ture chartered five banks. This was followed last winter by the creation of two more. Taking advantage of A general law of the Territory in relation to corporations. two other banks have been put in operation. This law, however, was repealed by the Legislature of last winter. which puts a quietus to any more creations in that direction. Owing to the failures that have occurred, and a consequent general feeling against the creation of any more new banks, no serious swempt was made in the late Legislature, which has just expired, to procure any more new charters It may, therefore, be set down as a fixed fact that no more banks will be created in Nebraska. or the above ten banks three have failed, one is now in a failing condition, and one other is giving premonitory symptoms of dissolution, judging from a recent act of the absquatulating Legislature, at Florence, by which M in authorized to suspend for six months, and without requiring it to have any specie in its vault, to issue three dollars of paper for every one of its capital stock. We allude to the Platte Valley Bank, at Nebraska City. One of the before mentioned three (the Bank of Fontenelle, at Bellevue) is a dead cock in the pit, and sleeps the sleep that knows no waking. Nemaha Valley Bank. at Brownsville, and the Western Fire and Marine Insurance Company, at this place, claim to be only suy. pended. They shut down on the holders of their bills and depositors in September last, and have since given DO evidence of vitality at their respective places of doing business in Nebraska. We understand, however. that their currency bas been kept in circulation in Illinois by certain parties interested in them there. The Bank of Florence has been for some time in discredit although it has continued to redeem its issues, provided not over fifty dellars was offered at one time Its bills have also been forced into circulation in eastern Iowa by the credit of Cook. Sargent A Co., of Davenport They are not taken in the Territory at all, and it may be considered a defunct institution.

6. July 8, 1858 Nebraska Advertiser Auburn, Brownville, Calvert, NE
Article from Nebraska Advertiser, July 8, 1858

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Banking in Nebraska. We are opposed to granting any more Bank Charters in Nebraska, and in favor of wiping out all heretofore granted, that have closed their doors; and, further, around those that have sustained themselves, we are in favor of throwing such guards, protections, or restrictions as will give confidence to the bill-holder. We are opposed in the first place to granting Bank Charters in Nebraska, because the United States law, passed July 1st, 1836, Section 1, which reads as follows, is yet in existence, and such grants, therefore would be unconstitutional. "Sec, 1. No act of any of the Territories of the United States incorporating any institution with Banking powers or privileges, hereafter to be passed, shall have any force or effect whatever until approved and confirmed by Congress." We are not prepared to say we are opposed to Banking in toto, and in every form, or by any principle whatever. There is perhaps, owing to the nature of the business of our country, a demand for something of the kind. But where and when they do exist, the most ample security should be given the bill-holder; and the Banker or Bankers should be money lenders not money borrowers. We are opposed to more Banks in Nebraska, because we have not the home capitol to engage in a legitimate safe, reliable and healthy system of Banking, and the consequence would be as has been, that non-resident operatives, unknown, unreliable men conduct affairs, and upon regular "wild cat" principles, and in the end the people are most shamfully swindled out of their hard earned means. As shedding further light and in substantiation of the forgoing idea, we give place to the following extract from a communication in the St. Louis Republican, written by a resident of this Territory evidently well posted. He says: "The Nemaha Valley Bank, located at Brownville, and which is suspended, is wholly ownedin the State of Illinois. A part of the Stock of Platte Valley Bank, located at Nebraska City, is owned in the Territory, the balance in Missouri and Illinois. The Fontenelle Bank of Bellvue, located at Belleve, which is hopeS lessly defunci and the grossest swindle of the whole is wholly owned in Illinois and Iowa. The Western Exchange Fire, and Marine Insurance commonly called the Western Exchange Bank,) iccated at Omaha City, and which is also suspended S is at present wholly owned at Galva, Iir linois, and was formerly owned in Iowa and Ill. The Bank of Nebraska, located at Omaha, is wholly owned in Iowa. The Bank of Florence, which has also suspended is also owned in Iowa. The Bank of De Soto, located at De Soto, is owned in Wisconsin, and the Bank of Tekamah, located at Tekamah, and which has recently suspended, is owned in Indiana and Missouri. These are all the d banks in the Territory--all others have no legal existence whatever. Here then are the facts-these institutions are not owned or controlled by the citizens of Nebraska, (except the controlling influence of one of them-the Platte Valley) d but are managed by the citizens of other states, and are made the vehicles of the grossest frauds upon community-and ]then the whole charge of fraud, corrupis tion and swindle, and all that is mean, to dishenest and dishonorable, is heaped on or the citizens of Nebraska! Is this fair ?

7. January 23, 1868 Nebraska Advertiser Auburn, Brownville, Calvert, NE
Article from Nebraska Advertiser, January 23, 1868

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good a record as could be kept-we shall commence with No. 1, Vol. 1, and give it by the volumns of that paper. The business of this city as appears in No. 1, was as follows: Attorneys: Thompson & Buxton and D. L, McGary. Land Agenis: R. W. Furnas and O. F. Lake. Physicians : A. S. Holladay and E, M. McComas. Milliner: Miss. Mary Turner. Architect and Builder: C. W. Whee. ler. Carpenter and Joiner: T.S. Ricketts. Blacksmiths : Jas Gibson and S. B. Miller. Merchants: B.B. and J. D. N. Thompson and Wm. Hoblitzell & Co., R. T, Rainey clerking for the latter. Surveyor: A. L. Coate. Brownville Steam Saw Mill: H. F. Lake, Jesse Noel and Henry Emmerson. At this date Dr. McPherson had excavated the lot on which the Star Hotel now stands, and was preparing to erect that building. Thompson & Co., were excavating the lot on the corner south. Westfall and Marlatt were preparing to burn brick, and Mr. Fagan to burn lime Mr. McAthron had arrived with a Nursery stock. And the City Council had levied a tax of 5 mills on the dollar to grade the streets and alleys of the city The ferry, run by Messrs. Plasters and Baker, was doing a "Land Office business," and bright were the prospects before all. June, 1857.-During this month Dr. Holladay finished. and T. Whyte began his residence on the bill. The Brownville School District was organized, Capt. Thurbur Suptintendent, and a Board of Education chosen, consisting of 4. J. Benedict, R. W. Furnas and Homer Johnson Dr Holladay opened up the first stock of Drugs and Medicines Messrs. Williams & Monroe opened a Daguerrean Gallery McPherson's first Hall was up and ready for a big dance on the 4th of July. July.-A 12 inch vein of Stone Coal was discovered in digging a well for Col Thompson, on a corner lot, and propererty "ris," especially "corner lots;" the Air Line R. R. from the Mississippi to the Missouri river, was discussed at this early period with lively interest. August.-J. S. Minnick circulated a petition in this city to-build the old Long Bridge, and raised the money a company was organized and the bridge finished that Fall. Westfall & Marlatt had the first kiln of brick burned. J. P. Samsell, Merchant Taylor, opened his shop. September.-Geq. W. Bratton opened a Cabinet shop Wm. Rossel opened a Boot and Shoe Shop. October.-The_Nemaha Valley Bank commenced the erection of its building its safe landed; the fixtures for the steam mill landed on the levee; McAllister, Dozier & Co. opened up a stock general merchaneise; W. T. Denset up a Boot and Shoe Shop. November.-Dr. McPherson opened out and sold a stock of goods at quetion in his new building; Williams and Bacon received a contract for grading Main Street to western limits; the Nemaha Valley Bank commenced business. December.--Hoblitzel & Co.commenced packing pork Thomas Williams stuck out a legal shingle; the first lyceum was organized Seigel and Greenbaum opened a Clothing Store; Mrs. Thur. bur and Mr. Hanna gave the first Concert, in the parlor of the Nebraska House; the Ferry changed hands, Coleman, Finney and Brown. buying it; on the 18th the Thermometer indicated 35 degrees below zero, whisky froze. January. 1857-C. G. Dorsey opened a Real Estate Agency R. Brown hung out a Land Agency sign. February -A. S. Holladay, as Mayor, gave Warrantee Deeds to lots in the city of Brownville; R. W. Furnas published the first book printed in Brownville-the "Pre-emptor's Guide; the Brownville and New Ft. Kearney R. R. Co. was organized. March-Finny and Coddington bought he Ferry; the Brownville Stone and Stone Coal Company capital stock $50,000, was organized tri-weekly mail from Rockport established; South (now middle) Brownville laid off in lots;