1415. Litchfield Bank (Litchfield, CT)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
June 1, 1858*
Location
Litchfield, Connecticut (41.747, -73.189)

Metadata

Model
gpt-5-mini
Short Digest
a2dae06d60ccf999

Response Measures

None

Description

No article describes a depositor run; instead the bank was investigated for mismanagement/fraud, enjoined and receivers appointed in Nov 1858. There were earlier reports in mid-1858 of attempted resuscitation/resumption of payments, but the court injunction and appointment of receivers indicate permanent closure. OCR errors in source texts corrected (e.g., “Litchfield Bark” → Litchfield Bank; dates inferred from publication lines).

Events (3)
1. June 1, 1858* Other
Newspaper Excerpt
The Litchfield Bank, Conn., rumor says, will shortly be able to resume... has redeemed small amounts presented at its counter since its collapse, in New-York.
Source
newspapers
2. November 15, 1858 Receivership
Newspaper Excerpt
Judge Ellsworth ... appointed Messrs. Abijah Catlin and Francis E. Harrison, receivers. Four months were allowed for the presentation of claims.
Source
newspapers
3. November 15, 1858 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank Commissioners' investigation found insolvency, false entries, defalcation, deficient paid-in capital, and fraudulent practices leading to injunction and suspension.
Newspaper Excerpt
The Litchfield Bank had a hearing ... The Bank was enjoined, and Abijah Catlin and E. F. Harrison appointed receivers.
Source
newspapers

Newspaper Articles (15)
1. May 21, 1858 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, May 21, 1858

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FROM OPENING OF NAVIGATION TO MAY 17, 62,012 1356. Flour, bbls 883,199 Wheat. bush Com bush FROM OPENING OF NAVIDATION TO JULY 29,150 1, 1857. Flour, bble.. 217 250 Wheat, bush 433 Corn, bush This shows a large increase in Flour and Wheat, and an equally large fallir g off in Corn. The reason is not yet sufficiently advance to justify the prediction that the comparative increase thus far will continue through the season. It is sife, however, to ealculate 88 long 88 Flour remains at its present low figure, and the money market is such 88 to secure 60 and 90 day credits, that the great bulk of the Flour and Wheat at the West will continue to seek tidewater through the Canals. The annexed abstract of the Connecticut Bank Commissioners' Report gives a very unfavorable report of the management and condition of some of the banks of that State: From The New Haven Journal and Courier. The Commissioners refer in the first place to the financial panic, at the commencement of which our banks bad an out tanding circulation of $10,000,000; the sudden withdrawal of pub is confidence caused & sudden contraction of currency, which proved 8 84 urce of great temporary embarrassment. On the 1st day of July, the circulation of the banks of this State was $10,411,000; on the let of January it W&S reduced to $4,130,265, 8 contraction of over $6 000 000, and most of which took place between the 1st of August and the 1st of November. The ability of the banks to sustain the mselves, without break ng down their custom under a contraction 80 un precedented, exhibited a degree of soundness and stability which must place them bigh in the confidence of the iblie of this and other States. Prior to the general suspension, several banks be. came embarrassed. The Hartford County Bank, &S early ES September, was unable to provi te for an outstanding circulation of $440,000, and an examination showed great mismanagement and duplicity on the part of the directors. Large claims, amounting in one instance to over $80,000, had been entirely concealed by being placed in the na nes of responsible parties, under an agreement that they should be held harm ess. In other instances, large amoun's of debts, the character of which the Commissioners could know nothing about without investigations out of the bank, were represented by the directors to be good and available, when in fact it was evident to them that they were either wortbless or nearly 80. Notwitzstanding this the Directors declared 8 dividen last July, ereupon the Com missioners obtained an injunction and bad receivers appointed. By g bod management, the Bank has been relieved, with the loss of half its capital and has been allowed to 10sume its business with $300,000 capital stock. It is a question of some importance to determine who shall pay the $6,000 or $7,000 in notes of this Bank, stolen by W. S. Carter, a Clerk in the Treasury Department. The Bank of North America, at Seymour, which had been the subject of remark in the previous re. port of the Commissioners, was found, in September last, to have loaned large sums out of the State. on unavailable security, leaving the Bank without the means to redeem its circulation. Its general management was bad, auspended debtir creased. and capital stock impaired. Its immediate liabilities were over $70,000 and they had on hand only $1,072 in specie. An injurction was issued. On the 10th of April the case was aled and it was found the eivers hid reduced the liabilities of the Bank for circulation, posits and balances, down to $48,541. The assets of the Bank now amount to $169,000. The Commissioners say that the Exchange Bank of Hartf had carried A heavy amount of protested paper of a doubtful charae er form series of years. It is their opinion that the bank should have ceased to make dividends more than two years ago A civide nd was passed in January, 1857. but in July of that year a dividend of 4 P cent was declared and paid As this dividend impaired the capital, the Commissioners consider it to have been injudicious and illegal. A further examination developed a defalcation of about $25 000 in the accounts of the Cashier. This developme nt indicated great on the part of the offiand direct rs of the Bank, for the defalcati n had extended through several years, and might have been exposed had the monthly statem ente been examined and tested with their own books. At the time the Bank wasenjoined, its liabilities amounted to 250 000, and their specie funds were reduced down to $ 12 939. ben the Bank resumed specie payment, its liabilities were redue to $141,811, and their available funds amounted to $57,000. It was largely secured against ultimate loss by collate rals. It has from the beginning indulged in the illegal and dangerous practice of buying New York, and in -bruary last it declared a dividend, though it bad on hand over $ 200 000 of pr The Mercantile Bank, at first embarraseed by the failure of its correspondent in New-York, will not sustain losses sufficient to seriously impair itscapital As to the Colchester Bank, the Commissioners, after the char gealn itsadmir istration, by direction of the last Legislature, were still unatisfied with its condition. In September It ceased itsredemptions in Boston and was discredited in York. Its general circulation at that time. by its books was $14,000, of which $6,000 had been redeemed by New York banks but this was evidently not the real condition of affairs. On the 31 of De ember an xamination was again made, and it was found that Cashier S. F. Jopes had caused to be printed fr you the original Plates, by a firm of lithographers in Hartford bills amounting to $101 102 fact which the President Cashier and Directors must have been fully aware. The Commissioners looked upon this transaction as fraudulent. applied for an injenction, and had Jones arrested in New-York; but he was released before the préper papers could be procured from the Governor J. H. Baell, the former President, testified that he had signed a quantity of notes without keeping any record of the amount or number, and that Jones had taken them away, promising to deliver them up, but had never done so. The amount of the irregular issue is supposed to be over but as only $8000 of it has beed presented for redemption it bas probably not beea put extedsively into circulation. The assets of the bank will be suffi fignt to protect its creditore, but the stockholders will auffer largely. It is DOW being wound up by Receivers. The Granite Bank swindle W88 one of the most delibe rate frauds ever undertaken is this State. The first 10 P cent of the capital paid in. was paid back by the Directors, and the payment of the 40 cent was mere pretense, the money used being the bills of broken backs and worthless checks on banks out of the State, and the real ma agers who furbished the means of pay ment to the nominal stockholders in Voluntown, resided out of the State. The bank pretended that it had issued DO bills, but it was found that $23,000 had been signed and could not be pro dused. Outside parties were distributing these bills. The headquarters of the concern were in & drinki g saloon in New York, kept under the name of Prescott & Co. Samuel Wagner of Ohio, Alexander Miller of Buffalo, and Roswell C Peck of Hartford, are II bail for trial before the Superior Court of Windham County, all parties conde ited with the Granite Bank. An in junction was granted on the 10th of last November: its circulation is reduced to $3000 and the assets and unpaid stock will et able the Receivers to protect the public from loss. The Litchfield Bank started irregularly, without bons fide capital The Commissioners checked its operations, and caused & change in its officers, and the payment of a bona fide cash eapital of $50,00, with which i 18 now doing a legisimate business. One of the most flagrant violations of the banking laws of the State, is in the case of the Quinnebaug Back of Norwich, which us Moruly keepsa less amount of specie on hand than the law requires. It also loans too great an amount to individuals and to parties out of he State, and last December it had $725,000 under protest, n which its losses will be large. The Shatucket, Norwich, Uncas, Iron, Norfolk, Winsted. Saugatuck, Farmers (Bridgeport Danbury, Pahquioke, Manufacturers (Derby), in inam, Waterbury, Middlesex County, Middletown, State, Merchants and Manufacturers' (Hartford). Home Meriden, Clinton City (Bridgeport) baling. Commerce Mystic River, Jewelt City, Rockville, Connection: River, and Stafford Banks,

2. June 22, 1858 Cleveland Morning Leader Cleveland, OH
Article from Cleveland Morning Leader, June 22, 1858

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MORNING LEADER OFFICE, MONDAY, June 21-6 P. M.S Financial, &c. The Money Market for the past week shows no material change, although the offerings of accommodation paper at the Banks have somewhat increased since our last report. The Exchange Bank at Griffin, Ga., and the American Bank at Baltimore, are reported failed. Thompson's Reporter learns that the injunction against the Woodbury Bank, Conn, has been sustained, and the Bank will probably go into liquidation, a receiver having been appointed The appointment of a receiver has depreciated th notes in the market, not so much on account of the fear of an improper application of the assetsof the bank as from the delay in closing up to final dividend a bank in any of the Eastern States. The Litchfield Bank, Conn., rumor says, will shortly be able to resume. Some of the interested parties are in negotiation with the Suffolk Bank, Boston, to make an arrangement to redeem the notes of the bank there instead of New York. Those holding the notes had better not part with them hastily, as there is a fair presumption of their early payment. The Branch of the Bank of the State of Indiana, at Jeffersonville, which suspended last winter. is to be reinstated on the 15th of July. J.S. Harvey is to be President. The time limited for the presentation of the notes of the Merchants' Exchange Bank, Conn., expires on the 24th instant. Mr. Coffin, one of the assignees of the Bank of the Capital at Indianapolis, Indiana, has made a report from which it appears that the total amount of assets are about $9,740. The total deposits are $74,000, leaving due $61,200. He also says th it many notes given in as assets he had never seen, and did not believe they ever existed. LIST OF NEW BANKS. In Itlinois-Narragunsett Bank, Vienna; Garden City Bank, Bank of Prairie du Chien, Bank of Brooklyn, Schujlor; Bank of Cairo, Cattle Bank, Urbana. In Wiscons nNorthern Wisconsin Bank, Aurora; Buffalo County Bank, North Houston. In Georgia-Exchange Bank, Savannah. Iu Louisiana-City Bank, New Orleans. In Maine-Umbeguagns Bank, Banger. In Missouri-City Bank, Exchange Bank, St. Louis. In Canada-Bank of Brantford. The Cincinnati Times of Saturday evening has the fo:lowing:- "The telegraph announces the failure of the American Bank at Ballimore, which closed its doors this morning.This Bank has beenin existence only a few months, and always was regarded as a bogus institution. It had no office in that city we believe, but did what business it transacted, and its notes were redeemed at the Bank of Commerce. Our bankers throw it out nearly two weeks ago, and we think there is little of the paper although it has been extensively circulated throughout the West, which will probably be a large loser. The notes of the Americ in Bank are probably worthless. The monetary market has been and is still very easy for all legitimate business purposes, and the Discount Houses have been desirous to loan freely to their regular customers at 10@12 P cent. First-class namos can be passed at 9a10, but few of this kind are offering. Operations can be made with the bankers and private capitalists as low as 8@9, but there are few applicants for money even at these rates.Call loans could be had at 6@7 P cent but no one wants them. small demand has been experienced for currency, which has been in very largesupply. Monetary matters are exceedingly easy and money is a drug. Capitalists have few opportunities such as they desire to make investments.Currency is accumulating every week at the banking houses while the calls for it are diminishing. Eastern Exchanges have been dull and inactive at previous rates, because no one wishes any more currency The London Economist of June 5, says the money market remains as easy as last reported. In the open market the demand has been perhaps rather more active than of late, but choice bills having two or even three months to run are still freely discounted at 2M@2% P cen'. At the Bank there has consequently been no revival of business. Yesterday it was announced that the rate of the establishment will be P cent for advances until the 14th of July, on government stocks and approved commercial bills not having more than six months to run. This, as is well known, is the recognized practice of the Bank and tends in ordinary times to facilitate the release of the large mass of Treasury deposits which accumulate in Threadneed'e street at this period of the quarter. The regular customers of the institution also find the practice convenient, for while the Bank hasa-fixed rule of not discounting bills with more than 95 days to run, their willingness to make advances upon long bills presents the requisite facilities in another shape. It is not likely however that the formal announcement just made will result in any important additions to the Bank's business, considering the present glutted state of the market. The moderate extent of the demand for money is more worthy of notice because the amount of mercantile bills falling due this day [the 4th] was large.' At the annual meeting of the Copper Falls Mining Company, held at Boston on the 15th inst., the following statem.pt was mane of its business for the year ending the 8:h of June:

3. July 10, 1858 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, July 10, 1858

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SALES BY AUCTION. 95 40 20 Ocean Bank 3,000 Watertown City 6s 60 .101 5 Bank of Commerce 1,000 Clev. & Toledo 100 10 Park Bank 20 Broadway Fire Ins. Co.129 1033 20 Merc'e Marine Ins. Co. 79 25 Phenix Bank 61 134 113 La Crosse & Mii. RR so Manhattan Bank FRIDAY, July 9-P. M. There was & fair degree of activity at the Stock Board today, and the upward movement continued. There appeared to be rather more disposition to act with vigor on the part of some prominent bulle, and the shorts continue to be free buyere. We presume the aggregate of short contracts in the street uncovered is smaller than for many weeks. Many of the bears have got around on the other tack. The movement appears to be almost entirely confined to the street. We can hear of but few orders from the public 4 to buy. The feature of the day was the advance of P cent in Michigan Central consequent upon the favor. able construction put upon the report, an abstract of which was given in THE TRIBUNE this morning. The results, as shown by that report, are much more favorable than has been anticipated, and at the close 59 was bid, against 55 yeaterday. New-York Central W88 in demand at buoyant prices, and Erie was also firmer, 18 being bid for 1,000 shares. The meetings between these roads have as yet resulted in nothing. Reading W88 steady. For the Western shares there was 8 fair demand at advancing ratee. In Bond transactions the movement was rather active, without important charge. La Crosse Land Grants were active, the sales reaching $83,000, and fel off to 33. The free sales recently of these bonde, we have reason to believe, have been from a lot of $200,000 belonging to & railroad iron house. At the Second Board, the main features of the market were the same as in the morning. The tendency of prices was upward, with considerable disposition to buy. After the Second Board the highest prices touched were not sustained, but the market closed with & fair degree of firmness. The latest prices were, Erie, 171@18; Central 83 @ 84; Reading, 461@463; Rock Island, @751; Hudson River, 27@271; Michigan Central, 59; Toledo, 311 @341; Galena, 871@873; Southern, 221@221; Mis'souri 6e, 843@843; Mulwaukee and Mississippi, 20a 201. In Exchange there has been but little done, but the market is firm at 9@9 for leading commercial and bankers' Sterling; France are 5.15@5.111. Freights are unchanged. To Liverpool the engagements are 2,000 bble. Flour at 1s. 41d. @1s. 6d. 37,000 bush. Grain at 4d, in bulk, and 5d. in bags; 2,600 bales Cotton at d.@3-16d.; 50 hhds. Tobacco at t2e. 6d. To London: 50 hf. hhds. Tobacco at 5s. To Bremen: 100 bble. Lard at 20s. A brig from St. Mary's to Curacoa with Lumber at $10, and back with Salt at 10c. ₽ bush. The business of the Sub-Treasury was: Receipts, $382,433 41-$156.000 from Customs; Payments, $497,698 28; Balance, 5,324,008 54. There isan improved demand for Treasury Notes, and further sales of $100,000 41 ₽ cents have been made at 20 @30c. prem. Adrian H. Muller will hold his regular auction sale of stocks to-morrow, at 12 o'clock, at the Merchants' Exchange. S. Draper's next auction sale of bonds and stocks will take place on Monday, the 12th inst., at 121 o'clock, at the Merchante' Exchange. The Etna Fire Insurance Co. of this city has declared asemi-annal dividend, payable on the 15th inst; the Greenwich Savings Bank has declared its usual semi-annual dividend at the rate of 5 ₽ cent ₽ annum or sums of $500 and under, and at the rate of P cent on larger sume; the Mercantile Bank, a semi-annual dividend of 5 ₽ cent, payable on the 15th inst. the Cayugaand Susquehanna Railroad Company,adividend of 41 P cent, payable on demand. The following items are from Thompson's Bank Note Reporter: " The rotes of the Bank of South County and Hop. kinton Bank of Rhode Island will eventually be redeemed at par. "The affairs of the Woodbury Bank, Conn, are progressing slowly in the hands of the receiver. It will probably be eix months before anything definite can be known as to the value of the notes. The Litchfield Bark, Coor., shows symptoms of resuscitation again. We understand it has, from time to time, redeemed email amounts presented at its counter since its collapse, in New-York. All the late broken New-York State secured banks have been would up, and the bill-holders paid in full by Gen. Cook, our prompt and energetic Bank Superintendent. The broken New-Jersey banks of course remain in statu quo, as usual in that State. There are again signs of resuscitation among some of the new Pennsylvania banks that recently flattened out. During the somersets some of these banks have been turning, re much doubt if the officers know who their stockholders are. The backs of North Carolina, with the exception of the State Bank, appear perfectly indifferent to public opinion, and will not resume specie payment. The Provincial Back of Cacada is objected to by

4. July 19, 1858 The New York Herald New York, NY
Article from The New York Herald, July 19, 1858

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From the Journal of Commerce of Saturday. HARLEM RAILROAD COMPANY. TO THE EDITORS or THE JOURNAL OF COMMERCE. GENTLEMEN-We feel quite satisfied that St. would not be the wish of Mr. O'Conor. who so ably argued the case for this company before Judge Hilton, to have, pending his decision, any ex parte statements or publications which are in perversion of the testimony. and in direct contradiction to the facts-euch as appeared in your editorial columns yesterday Considering the high character of your paper we were not prepared to see in it sneh an article at this time. It would seem, however, from articles published in other juarnals as well as your own. since the argument closed, that the sompany were afraid of their case, and desired to forestall the action of the Court. We undertake to say that the history of the wrongs committed by the railroad company against the city government and the citizens. which will shortly appear, will abundantly satisfy every candid mind that the company. ao far from being entitled to sredence or sympathy, have been aggressive and law defiant from the beginning, and have or ly bolstered up their course by the grossest misrepresentations. PHILIP REYNOLDS, B M. WHITLOOK, Executive GEO. D. PHELPS, Committee A. H. WRIGHT, of Citizens. W. E DOD 3E, P. TEN EYCK. 8. lawrence, Broken [Bank Notes-Litehfield Bank, Ct., redeemed at 5 per cent discount. Bills of all other broken or suspended banks bought on the best terms. GEO. PEYTON, exchange broker, 418 Broadway, corner of Canal street.

5. October 13, 1858 Cleveland Morning Leader Cleveland, OH
Article from Cleveland Morning Leader, October 13, 1858

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FROM NEW YORK. NEW YORK, Oct. 12th, 1858. The notes of the Tiogo County Bank, Pa., were thrown out to day in, Philadelphia. It is reported that the Litchfield Bank, Conn., went into a receiver's hands to-day. The contracts for rebuilding various buildings at Quarantine were awarded to day.

6. October 20, 1858 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, October 20, 1858

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California, with letters to the 20th ult., but no papers. The third mail arrived to-night, having made the distance in twenty-five days. The mail brings Fort Smith dates to the 8th, which confirm the report of a battle between the United States troops and the Camanches. The dates from Santa Fe are to the 27th ultimo. Another battle had been fought with the Indians, in which six were killed and two soldiers wounded. Two thousand sheep were recovered. WASHINGT N, Oct. 18.--It is said that Geo. Jerez will immediately communicate with the Government of Nicaragua, relative to the non-success of his mission, and ask for further instructions. He was emphatically informed by Mr. Cass that whatever may be done by France or any other foreign power, our government would protect the transit route to the fullest extent and at all bazards. Some friends of the administration, occupying high political position, express themselves as favorable to a direct application to Congress for an appropriation to conduct 8 negotiation for the purchase of Cuba. The receipts of the Post Office Department for the quarter ending on the 30th of June, were $1816,000. CHICAGO, Oat. 16 -The returns from MinDesota come in slowly. The following only have been received: Hennepin countyThe whole Republican ticket elected. Scott county-Two Democrate and two Republicans elected to the Legislature. Ramsey county-The entire Democratic ticket elected. Washington and Dakotah countiescarried by the epublicans. CINCINNATI, OCE. 17.--Oa Friday night, a fire broke out in the building occupied by Pooge & Pragere, commission merchants; James Wilson, storage-house, and W. M. Morgan, pattern shop, on Columbia street. Messrs. Pooge & Pragere's loss $1,600, but are fully insured; W. M. Morgan's loss 18 $500, and James Wilson's is about $1,000, on which there is no insurance. NEW HAVEN, CONN., Oet. 18.-The report that the Litenfield County Bank bad passed into the hands of receivers is premature.— The Journal of to-day says the Back Commissioners were at Litchfield during the past week, but their investigations have not yet been brought to a close. NEW ORLEANS, Oct. 18.-The fever report from the Charity Hospital shows 8 very favorable decrease in the number of deaths for the twenty-lour hours ending at SIX o'clock last evening, being only nine. Deaths by fever in the city, on Saturday 30. PHILADELPHIA, Oct. 18.-The Reading Gazette announces the appointment of J. Glancy J nes as Minister to Austria. (?) Judge Porter has resigned his commission as supreme judge, which be held by the appointment of G.v. Packer. NEW ORLEANS, Oct. 16.-Emigrants by hundreds continue to arrive here, notwithstanding the yellow fever. OSWEGO, N. Y., Oct. 18.-There are now twenty-three vessels on the lakes, bound to this port, with 71 820 bushels of corn, and 245,565 bushels of wheat. During three days last week 214.491 bushels of wheat, 52,573 of corn, and 36,355 of barley arrived here. NEW ORLEANS. Oct. 18. -Brazos dates to the 14th inst., confirm the defeat of Viduarri by Miramon. The battle lasted four days near Abuabuco. The former retreated to Monterey, and was preparing to attack Gen. Miramon. CINCINNATI, Oct. 18.-The famous balloon race came off at four o'clock this afternoon, between Messrs. Goddard and Steiner.They intend remaining up three days. Mr. Bellman, of the Gazette, preceded them in a small balloon.

7. October 21, 1858 Litchfield Enquirer Litchfield, CT
Article from Litchfield Enquirer, October 21, 1858

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The New York papers say the Litchfield Bank is in the hands of Receivers. Not exactly. The Bank Commissioners are examining into its affairs, and will doubtless acquaint Judge Ellsworth with the condition in which they find matters, and leave it for His Honor to make such further order as may be deemed right and proper.

8. November 4, 1858 The Weekly Pioneer and Democrat Saint Paul, MN
Article from The Weekly Pioneer and Democrat, November 4, 1858

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Th e Tioga County Bank, Pa., was thrown out by its redeeming agent in Philadelphia (the Girard Bank,) and afterwards taken again. The Litchfield Bank, Conn., has been placed in the hands of a Receiver by the Bank Commissioners. Call loans command in New York 3a5 per cent. per annum, and commmercial paper of known character is readily negotiated at current rates. The following is a list of broken banks, whose bills are bought in New York market, and the price which they bring :

9. November 16, 1858 Worcester Daily Spy Worcester, MA
Article from Worcester Daily Spy, November 16, 1858

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Litchfield, Ct., Bank Insolvent. HARTFORD. Nov. 15.-The Litchfield Bank had a hearing before Juhge Ellsworth, in this city, this afternoon. The Bank Commissioners made a report showing the bank to be insolvent, and not in & condition to go on. The bank was enjoined, and Abijah Catlin and E. F. Harrison appointed receivers. Four months are allowed for presentation of claims against the bank. The affairs of the bank are at present in a bad condition, but the receivers are practical business men, in whose hands every dollar that can be made available will be received for the benefit of the creditors.

10. November 18, 1858 Litchfield Enquirer Litchfield, CT
Article from Litchfield Enquirer, November 18, 1858

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The Litchfield Enquirer. Litchfield, Conn., Thursday, Nov. 18,1858. THE LITCHFIELD BANK.-There was a hearing in chambers, before Judge Ellsworth, in this city yesterday afternoon, of the application for an injunction and the appointment of receivers of the Litchfield Bank. The Bank Commissioners made a report signed by all of them, setting forth the condition of the bank. They stated that many of the statements put forth by the bank in September last were untrue ; that all of the reported hypothecated bills of the bank, not in the hands of the Connecticut banks, were afloat; that the losses of the bank will not be less than $20,000, some $10,000 of which has been lost in a settlement of the much talked of Beeman debt in New York. There will be a large depreciation in the value of the assets. Messrs. Ball & Hazelton claim to have got clear of the bank, or rather to have in their hands an equivalent to all they put in. The Commissioners show that the affairs of the bank are in a bad way, in fact beyond the reach of any ordinary remedies for its resuscitation. They asked for an injuuction and the appointment of re ceivers. On the part of the bank it was asked that a temporary injunction should be granted, on condition that within ten days the bank should be strength ened by the payment of $50,000, and in case of failure the injunction be permanent. The Judge refused to grant an injunction on such terms, but on the other hand, he enjoined the bank and appointed Messrs. Abijah Catlin and Francis E. Harrison, receivers. They accepted the appointment, gave the required bonds, and will at once assume their duties. As far as the public, and all interested in an honest and judicious settlement of its affairs, no better men could have been appointed to the place. At a meeting early in the month, of the bona fide stockholders, these gentlemen were suggested for the place. Four months are allowed for the presentation of claims to the receivers. [So much from the Hartford Courant. The receivers are good men, who will secure to the creditors of the bank all that can be made available. We will not speculate as to the value of the assets, some of which will doubtless be subject of litigation. We hope enough will be received to pay bill-holders, but of that there seems to he some doubt.]

11. November 18, 1858 The New York Herald New York, NY
Article from The New York Herald, November 18, 1858

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An Injunction against a Connecticut/Bank. INTERESTING DEVELOPEMENTS IN BANKING-FALSE INTRIES ON THE BOOKS-A DEFALCATION-$10,000 IN CASH AND $40,000 IN SECURITIES GIVEN UPBANK NOTE DETECTORS PAID NOT TO BLOW THE BANK," ETC., ETC. [From the Hartford Evening Press, Nov. 16.] The Bank Commissioners, having given the Litchfield Bank a thorough investigation, petitioned for a permanent injunction, and a hearing was yesterday afternoen had before Judge Ellsworth, in chambers. Lucius G. Peck, Esq. attorney for the Bank CommisBioners, read a petition, of which the following is a synopsis:It says that it was averred by the officers of the bank, at the former hearing, that there were only $2,300 in bills in circulation, but the Commissioners find that the actual amount is now $32,000. That the amount pledged to the Hurlbut Bank, as security for a loan, was but $10,000, instead of $15,000, as was averred by the officers of the bank at the first hearing, the remaining $5,000 being in the hands of a broker in New York, who had put the same in circulation with the knowledge of the officers of the bank. but without the knowledge of the directors, and that no record of these transactions was made upon the books of the bank. They also find that the bank had no security or voucher, and received no interest for these large loans of its currency. That the bank cannot redeem its circulating notes, either at its counter or elsewhere. They also find that instead of $89,750 out-of the $100,000 of its capital stock having been paid in, as stated at the former hearing, only 89 shares of the capital stock, amounting to $8,900, had been paid in full to said bank in cash-that510 shares (which was a majority of the stock) were in the hands of E. H. Hazleton & Co. and Daniel Ball, both of Michigan, for which they had paid, in cash, $10, 000, and the remainder in promissory notes. The 212 shares were owned by nineteen persons, upon which they had paid $10,220, leaving 189 shares in the names of thirteen persons, and for which no cash had been paid; making in all, at the time of the former hearing, the actual amount paid in, $29,120 out of $89,750. They also find that many of the entries relating to payments of money for capital stock, many of the entries relating to interest for notes discounted and for expenses of the bank, were false and fraudulent. That in some instances expenses were twice charged, that all the books were 80 kept that a defalcation by the cashier could not be easily detected or its amount ascertained. That they believe there is a large defalcation or deficiency in the assets of the bank over and above the losses which are accounted for. That $900 in specie had been abstracted from the vaults of the bank. They also represent that the $43,000 of the Beman debt, which was claimed to have been fully secured, was sold for $31,500, no part of which has yet been realized; and that of the other assets of the bank very little has been realizedsor made available since the last hearing. The Commissioners further say that since the order of the Court passed on the 3d of September last, the President of the bank, without the knowledge of the directors. surrendered to E. H. Hazleton & Co. and Daniel Ball, both of Michigan, their negotiable notes amounting to $27,500, and their other obligations amounting to $13,500, and refunded to them $10,000 in cash or available assets, which large sums were payments for $51,000 of the capital stock purchased by them before the bank was first enjoined. The President and the Mesars. Hazleton and Ball do not agree as to the present condition of these assets. The Commissioners further represent that they believe large sums of money have been paid to bank note detectors in New York to induce them to so report the bills as to give them currency and an enhanced and fictitious value to the capital stock. That according to a memorandum, furnished by the cashier, there has been paid $833 66, as follows:-'Monroe, $33 66; Dye, $166 67; Tay for, $133 33: same parties $500 more, which was added to the engraver's bill, which accounts for the bill as it stands. The cashier, E. L. Houghton, also states that Rumsey (the first owner of the bank) agreed to pay these detectors $1,000 "not to blow the bank." That of the Board of Directors, Messrs. Welch, Wessels, Gold and Kellogg, did not assume any responsibility, and did not engage in the management of the bank, which was entirely controlled by the other officers and directors. That within the last few weeks, and since Messrs. Hazleton and Ball have withdrawn, the charter of the bank, or controlling portion of its capital stock, has been offered for sale in New York, and this with the knowledge of the officers of the bank. They also represent that the general circulation of the bank now amounts to $31,606; and the circulation held by banks as collateral for debts due them of eighteen thousand dollars, $24,500-making the circulation liable for $49,606. The Commissioners believe that if the bank is revived and allowed to resume business, the public will be in danger of sustaining loss thereby. They therefore pray that a permanent injunction may be issued and receivers appointed. Judge Ellsworth said that he found that the large amount of $50,000 was still out of the bank and in the hands of the public. He did not believe that there was a single bona fude subscription to the bank at first. It was an institution which bore but a very slight resemblance to what its charter was intended to create. In the present state of its affairs no one will say that the bank ought to proceed. If he could see anything that could be brought about to put it into legitimate shape, he would entertain Mr. Hellister's motion with pleasure, but he could not see a single method pointed out to relieve it. These gentlemen have been to see one man and another about raising funds to put it in good standing again, but there is no vote of stockholders here to ask for this. or express any faith in M. He should, then, appoint receivers for the bank, and order it to close its operations. Mr. F. E. Harrison, of New Haven, and the Hon. Abijah Catlin, of Harwinton, were accordingly appointed receivers. Four months were allowed for the presentation of claims.

12. June 1, 1859 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, June 1, 1859

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An adjourned term of the Supreme Court of Connecticut is to be held at Litchfield on the 28th of June, by Judge Butler, for the consideration of the report of the receivers of the Litchfield Bank. The suits brought by the receivers upon stock and other notes will not come on until the regular trial term in Sep. tember. The New-Haven Journal and Courier states that there is a probability of the bill to incorporate the ereditors of the St. Louis, Alton and' Chicago Railroad Company over the veto of the Governor. The Chicago, Iowa and Nebraska Railroad will be opened in two weeks, from Clinton, Iowa, opposite the western terminus of the Chicago Union Air Line Railread, to Ceder Rapids, on the Cedar River, 85 miles in distance. The Cleveland" Directors of the defunet La Crosse Road have elected the following officers: President. Newcomb Cleveland of Waskegan, IIL. Vice-President, Henry C. Cabell of Richmond, Va. Treasurer. CiceroCome stock of Milwaukee, Wis. Secretary S. R. Kane of Milwaukee, Wis. The "Cleveland" ticket received 28,500 votes. Mr. Mitchell, who held proxies for 30,000 shares opposed to Cleveland, did not vote on the ground that the Company had no legal existence after the road had been sold out under the Third Mortgage. The Milwaukee Sentinel of the 23d, states: The interior backers who met in convention at the Newball House, though not approving of any general system of central redemption at this time, concluded to accede to the proposition of the Milwaukee bankers relative to the redemption of their notes in this city in exchange on New-York, at a premi im of 1 P cent less than the current selling rate, until the next annual meeting of the Bankers' Association. They also very unamimously resolved not to take Illinois currency, except at the same discount placed upon it by the banke18 of this city. The advanced rates of bills on New-York and London at New-Orleans have not been fully sustained. The Crescent of the 22d (evening) says: "The grand fulcrum of our commerce, exchange, gave decided symptoms on Saturday last of breaking down from the high rates then ruling. Yesterday there was a decline, to-day there was another. There were sales, however, of checks on New-York over the connter at v cent, in large sums, and 1 in small amounts; these figures did not last long, 88 double A 1 signatures were offered freely in the middle of the day at P cent premium; checks over the counter at the same, with one day's sight selling the prem. We have also to quote the closing rate of sight at 1@1 prem.; sixty days' sight, choice at 1@17 cent dis., good, 1@1f, fair 11@1 and 11; though, at the same time bills at the latter figure will be paid as promptly as the very best of gilt edges. In Sterling there was a marked decline, clear bills were taken at 1104 @ 1101 and 1101; we quote extreme rates from 110@1103. Bills with shipping documents were taken 1091; we quote from 1081@109 Franes inactive; we quote actual sales at 5.05 for sight, 5.061, 5.15@5.081 for the general run of signatures."

13. June 2, 1859 Litchfield Enquirer Litchfield, CT
Article from Litchfield Enquirer, June 2, 1859

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The adjourned Term of the Superior Court to be : held here on the 4th Tuesday of June, is for the consideration of the Report of the Receivers of the Litchfield Bank. The suits brought by the Receivers upon stock and other notes, will not come on until the September term.

14. July 14, 1859 Litchfield Enquirer Litchfield, CT
Article from Litchfield Enquirer, July 14, 1859

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LITCHFIELD BANK -Judge Butler neta an rajourne ed term of the Superior Court in this place on the 8th inst. to hear and determine upon the repore of the Receivers of this Bank in reference to the claims to them against the Bank. The the nature and amount of prereporting presented the claims Receivers seuted to them, and citing the parties to appear and shew cause why the whole or any portion of them should be allowed. The principal claims presented favor of the three by had been discounted for of were whom in paper Connecticut the Banks ben the Litchfield Bank previous to making their redemption at the Suffelk Bank in Boston. These were indorsed by several of the directors, and with was circulation of the as collateral to a larger amount them security deposited than Bank the loan made which it is secure event the said notes were not at them in by the them, supposed would paid These notes were given at 60 and 90 days, and the notes were due the Bauk was under modified and the the maturity. before a injunction, agents placed of Bank sold the Litchfield York to be good, first having to parties supposed Bank claims and the in New notes still being unpaid and the second not due. The directors sent an equal amount of the New York notes to be discounted or collected to take up the former notes given by the Bank, and release the circulation held by them as collateral security for the of these notes, and it was supposed an obstacle to the would_remove payment this resumption of of the the Litchtield Bank. The sudden failure of some agents of the Litchfield dank in New York to redeem the general circulation held by brokers there, with other causes, brought a final injunction on the Bank in November last, and the notes deposi ted with the Connecticut Banks, a portion of which were discounted and the remainder held for collection against Van Cleef & Smith [the New York par were not due, and under the their uncertain. The ties,] payment Connecticut circumstances of the Banks, retained in their vanIts most preof the Bank, together therefore, vious notes with these circulation, notes left with them and the hypothecated that the latter belonged to the circulation of the Bank and came under general the impression the into largest the first class of claims. The Bank having amount of hypothecated bills surrendered them to the Receivers and took a certificate for hypothecated the grade of dethe Count Another of termined circulation, by leaving Bank claim disposed to be to a broker, and it was presented to the Receivers, they aware its their unbroken circulation being of of the source. The third disposed of theirs to one directors of the Bank, who, through a friend in New York sold it to the brokers there this also came into the pessession of the Receivers and was supposed to be identified by them through the Cashier of the Bank. There were, therefore, some general legal questions involved in common for the several bank claims presented, but each Bank had disposed of its circulation in a different manner, which placed them in an aspect more or less favorable for allowance-on The counsel for the claimed the claims presented were than that that account. much Receivers be larger rejected the debt, and the excess must 88 of to other creditors. an original act justice That sale, the and hycirculation was sold at private in at much below the of the at the and without any pothecated one bills instance time, giving selling price notice to the Bank or its Receivers, and therefore not valid that they therefore became responsible for the full amount of the bills lodged with them. That under a recent decision in another state, they had no right to dispose of the circulation of the the Bank was in the hands of Receivers, and such by their own for the full amount hyBank became by while responsible disposition volition of such they pothecated circulation. And lastly, if all the above claims were not sufficient to invalidate their allowance with the Court, they could only be allowed with other creditors the original debt with interest, and must deduct therefrom the money received by them for the sale of the bills to parties who could only be allowed their value. And, therefore, they were bound to release the balance of securities in their hands. The counsel for the Banks denied that they had several claims by the had made by the forfeited which they their hypothecated Bank disposition to biils, contending that on the failure of the pay the original notes they had a right to sell the circulation and other securities lodged with them as collateral for the payment the bills with security hypothecated them of should the notes. be regard- That ed as general circulation," and without unfavorable discrimination being exercised towards them that they did not regard notice necessary, as the conditions had not been fulfilled by the borrowers, and therefore the legal sale of hypothecated circulation as understood by Banks fully justified the course they had taken in the matter. We do not propose to recapitulate the arguments of the nor to do to lecounsel counsel, engaged in the Justice In the the eminent of gal case. course the trial many nice legal questions were suggested for the consideration of the Court, who treated them with great fairness and impartiality, for which the learned is as he in this Judge distinguished, high court of and equity sitting does case as a we have great confidence that he will do justice to all parttics interested. He adjourned the Court until the last Tuesday in August, when he will deliver his opinion on the several legal controverted questions involved in this complicated case In the meantime the Receivers are endeavoring to collect the notes against the New York parties, and should they be successful they will undoubtedly induce the Banks to give up their circulation on the payment of the Van Cleef notes and other claims; and should this leave a sufficient amount of funds

15. September 1, 1859 Litchfield Enquirer Litchfield, CT
Article from Litchfield Enquirer, September 1, 1859

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The Litchfield Enquirer. THURSDAY, SEPT. 1, 1859. LITCHFIELD BANK -Atan adjourned term of the Superior Court on Tuesday, Judge Butler gave his decision on the several points raised in relation to the Report of the Receivers of the Litchtield Bank, From this decision which is somewhat lengthy we copy the following: I am therefore of the opinion, and do advise and order, that the Receivers allow the claim of the Hurlbut Bank to a dividend npon the Bills presented, such dividend not to exceed the principal and interest of the loan but that no such dividend be paid in the event the bank shall obtain payment from the other collateral in their possession, nor be paid till they surrender such other collateral. As to the Bridgeport City Bank, I cannot therefore under the circumstances hold this (i. e. the sale of $7,500 of the bills of the Litchfield Bank,) to have been a legal sale to Middlebrook, nor is it for the interest of the Bank, or the parties that I should do SO. It tends to complicate the matter without benefitting either. If I should hold this sale valid I should held the Bank thereby had cancelled their indebtedness, and were bonud to return I the other colaterals in their possession. should hold that if the Receivers were compelled to pay to Middlebrook, as dividend an amount exceeding the indebtedness for which the bills were pledged and the interest thereon, that they would be entitled to recover the excess from the Bridgeport City Bank. I therefore am of the opinion that the pretended sale to Middlebrook was not actnal, or, without notice, legal; that the Bank are still the holders in law of the bills ; and that they are entitled to the benefit of the presentation made by Middiebrook, and to a dividend npon them, not exceeding the amount of their debt and interest; but that the Receivers should not pay such dividend in the event satisfaction should be obtained from the collateral in their hands, nor until collateral, if uncollected, shall be surrendered. The conduct of the Connectient Bank was illegal. Upon the principles herein before alluded to, they were entitled to pnt the bills in circulation, if they elected to do so, to the nominal amount of their debt and interest ; but were accountable for them at their fixed nominal value. For the excess, over and above the amount of their debt and interest, they will be liable to the R ceivers, if the Receivers should be obliged to pay and should pay a sum exceeding such debt and interest, but without such payment, or at least a fixed obligation to pay, by the declaration of a divideed, I do not think the Receivers have any claim, inasmuch as the bills are surrendered to them by the holders who purchased them. but for such surrender they thereby would have an immediate right of action for the tortions disposition of the excess In my judgment having disposed of their bills at their fix d nominal value, exceeding the amount o" the indebtedness of S the Bank, that indebted e sis thereby calc lled. Their claim upon the other collaterals in their hands, with the exception of so much of the Van Cleef & Smith notes as were discounted and credited before the sale of the bills, is gone, and that collateral with the exception as aforcsaid, should be given up and it is the duty of the Receivers to recover it. And the Bank will be liable to the Receivers for the excess of the bills so tortously disposed of ; and if e the Receivers shall be compelled to pay Morse, Thompson and others, now holding the bills, an amount exceeding the debt of the Litchfield Bank to the Connecticut Bank and interest, less the paper discounted and credited on the notes, and the Receivers will have a right, and it will be their duty, to recover such excess of dividend from the Connecticut Bank by a proper action instituted therefor.