1458. Eagle Bank (New Haven, CT)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
June 1, 1828*
Location
New Haven, Connecticut (41.308, -72.928)

Metadata

Model
gpt-5-mini
Short Digest
d18eaa8b9645a70b

Response Measures

None

Description

The articles describe the failure/closure of the Eagle Bank of New Haven (discussion in June 1828 legislative debate about its failure; June 1829 notice of the bank's indebtedness and stoppage of payments; and an October 1, 1829 notice of a court-ordered 50% payment to depositors). There is no explicit description of a depositor run in the excerpts; the bank appears insolvent and placed under court/receiver arrangements with partial distribution to depositors, consistent with suspension leading to permanent closure/receivership.

Events (3)
1. June 1, 1828* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank judged insolvent: large indebtedness and bad debts (articles cite about $778,000 indebtedness, effects about $50,000, and $1,200,000 in bad debt). Court and legislative discussion about misconduct by directors and losses; bank suspended payments or failed to open for business under pressure of the times and insolvency was reported in 1829 coverage.
Newspaper Excerpt
the failure of the Eagle Bank...the failure of the Eagle Bank
Source
newspapers
2. June 6, 1829 Other
Newspaper Excerpt
A statement from the agents of the New Haven Eagle Bank has appeared... The indebtedness of the bank is about 778,000 dollars, and its effects are about 50,000, besides about 1,200,000 dollars in bad debt, which will probably never be worth a dollar. ... unable to say when the concern will be closed.
Source
newspapers
3. October 1, 1829 Receivership
Newspaper Excerpt
there will be paid to the depositors in the Eagle Bank, on and after the 1st of October, fifty per cent of the original amount of their several deposits.
Source
newspapers

Newspaper Articles (4)
1. June 5, 1828 The Litchfield County Post Litchfield, CT
Article from The Litchfield County Post, June 5, 1828

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Connecticut Ligislature. HOUSE OF REPRESENTATIVES Bill to prevent the sale of foreign lottery tickets introduced by the Committee. Petition of Wm. D. Foster respecting pay table orders, granted without debate. Much was said respecting this petition last year. Mr. Eaton, the officer over Bill by in levying executions,shall providing that but the when charge officer his fees, the levy shall be valid, shall forfeit threefold the amount of his whole charges, read a second time. Mr. T. S. Perkins respecting nuiswhen the title of question, an be made to ances, Bill by appeal may land &c. the is Superior in Court, read second time. City Bank New-Haven.-Mr. Kibbe moved the bill on the table, as petitions were to be to for lay banks heard; the time other that to Wed- hear nesday next be assigned as them. Mr. T. Pitkin said this was an exception to the for It be added to the would general not principle granting banking stockhold- capital, banks. but a priviledge to the ers in fault for the He wished we now Eagle who extending Bank. were not the might failure of act. with some of is not comMr. them Parish replied guilty either of warmth, acts of of who of omission. The cause the failure is their was that this was claimed as a mission surprise or gross negligence. It favorable From with exception to the general principle. one section of the State of 20,000 inhabit$200,000 banking capital, where are is a petition a has more on ants, many but this and manufactories, company brought for ruin bank all the ever in the He saw no any more in the State. State capital than New-Haven. necessity counterfeiters of If the obto restore the rights to ows and to ject banking and was orphans the College, ruined there widwould be some claim. But no; the rich want an opportunity to make another experiment. Mr. T. Pitkin replied, the committee have examined the claim and reported favorably. If had considered the to blaim would have so. they they said be stockholders the last If they blame, he would one to He would his to the an opportunity to substitute were favor objection, to them. give his therefore charge. gentlemen withdraw Mr. Parish replied, he intended no direct allegation, but the stockholders had not seen so closely to the business as they ought. Mr. Kibbe withdrew his motion. Mr. Kimberly moved, as the house was thin, the bill lie on the table till 2 o'clock, which was carried. a committee to consideration the Resolution for propriety of disfranchising take into Geo. and for a him and the the introduced by & perjury Eagle Hoadly, Bank, against instituting Mr. Cashier Chappell, suit of on motion of Mr. M' Curdy,laid on the table, by a vote of 76 to 50. City Bank in New-Haven.--Mr. Hungerford, from the Committee, spoke at length in favor of granting the Bank. The Bank was to new but the the Bank were to have the taEagle be a one, stockholders privileges owned in of of king as many shares as they that bank; but their shares are but one half as great, so their subscription can be only half the of stock He it was said amount extremely owned unjust in the to that failure transfer Bank. the crime of those concerned in of the Bank, to the stockholders. The committee after a full examination are fully conthat are no censure. vinced, then adverted they deserving the conduct of of He to Mr. that at first was a of trust in any of his small Hoadly official breach proceedings he from concealing the guilty directors; of but he had once it was to go on in after necessary violated farther and this farther trust, order conceal it, constantly in hopes, that at restore taken and clandestinely last to he might appropriated. these funds thus All this the had no means have been and Undoubtedly stockholders they injured, of relief. knowing. if to have some The only is. can relief be them without injury to the ? ought question possible, public The granted committee For, in the banin this city, after esking say, capital yes. first this place bank it the is will not be so great as was before the failure of the Eagle amount of was then now. tablished, capital wanted. Bank. it If that amount of banking is $500,000 while there is $3,000,000! city, The whole only Why capital in should Hartford in there this be there is not in business. it the this difference? nearly Again, is this proposed Bank difference this to transfer the of the to thus save the great institution, and agency Eagle public From the such expense of the present agency. the committee were othis bank to considerations, pinion that ought be incorpora- of the ted. Mr. Chappel moved to amend the bill, so as the directors of the bank, at the time failure, from any in The directors are to for this to bank. of prevent the having banks, blame, note share according to the rules of no can be discounted without the consent of three directors. said, there was a provision in bill to meet their no perMr. the Kimberly objection; failure that of son who had any agency in the the bank, should be allowed to subscribe; and further the previous directors were also much

2. June 6, 1829 Daily Richmond Whig Richmond, VA
Article from Daily Richmond Whig, June 6, 1829

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Richmond we SATURDAY MORNING, JUNE 6, 1829. Banks and Bank Failures:- The New York Morning Herald, says:BANK FAILURES.-The board of Directors of the Middle District Bank at Poughkeepsie give notice that the pressure of the times 18 so groat as to induce to and close the them of the suspend bank. their payments business The funds of the institution are to be applied, say they, to the payment of its debts, and a statement of their affairs is to be made out in a few days. A statement from the agents of the New Haven Eagle Bank has appeared in the Connectiont papers. The indebtedness of the bank is about 778,000 dollars, and its effects are about 50,000, besides about 1,200,000 dollars in bad debt, which will :probably never be worth a dollar. The committee say that "the fact that several of the Judges of the Superior Court are interested in the concerns of the bank, had caused some delay in business before the Court," and they were unable to say when the concern will be closed. This is the second Bank failure in New York, in the lapse of a month. It is but just, that they who have caused the wretchedness and failure of 80 many, should in turn experience the evil. Turn and turn about, is fair play. But, a corporation according to Lord Coke. having no soul, it is to be feared, that full retribution does not overtake banks, even when by "the pressure of the times," they are compelled to stop payment. Cromwell told Lord Kimbolton, that it would not be well for England, until there was ne'er a Peer or a Lord in the realin. What the aristocracy is to England, are the banks in our countrypower, separate and apart from the power of the peo. ple. It will not be well for the U. States, until there is never a bank in them. Asample of the feeling and sympathy of banks, is lately furnished in Georgia. The Savannah Mercary, thus speaks of the case: The last Milledgeville papers state, that the Cen tral Bank will commence operations on the 18th of June next. The Statesman saye that notes to the amount of eight hundred thousand dollars has already been received for discount. So there can be no doubt but the institution will soon get rid of its cash. Whether the state as a collective body, or the people individually, will be benefitted by the emission, is another question. Much will depend upon that class of people who are accommodated with loans. But, according to the rules adopted by the Directors for the government of the Bank, the note of a person who has Judgment-debts against him, will be refused, whatever may be the character or credit of the security offered. That is, the person whose property is about to be sold under execution for less than half its value. cannot relieve it by borrowing from this Bank. although he offer the most undoubted security. Consequently, this Bank will not afford any relief ro people in debt. or laboring under embarrassments. But it will rather increase their difficulties. Because it will place in the hands of a few , griping individuals, an extensive fund for the purposes of oppression. The Statesman mentions a circumstance, the facts of which had become public. An individual of Greene county had applied for a loan at the Central Bank, and had already made arrangements with his embarrassed neighbors, to re-loan it 8 out among them, at the rate of 20 1025 per cent.7 And such cases, we have no doubt, will be found to be numerous. To the individual in debt, it will be seen, the Bank can afford no relief. His property must be sold to payhi debts. But it will enable the griping speculator to buy it up, at one quarter or half its value, By giving, therefore, a new impulse to the spirit of 1 speculation and cupidity, it will increase the difficulties of the poorer classes, and place them more p completely in the power of their wealthy neighbors. I The new Treasurer.--The new Treasurer of the U. States our late energetic Councillor of State. h John Campbell, entered upon the discharge of his dutics on the 1st inst. We cannot help thinking how very happy the Councillor must be, and our philanthropy is 60 much gratified in the contemplation, as almost to reconcile us to the extreme impropriety of Clarke's removal, and his appointment. The terrible scratch, and the more terrible convention $ both escaped! three thousand a year! nothing to do but to sign his name eight or ten times a day! the luxuries of the Metropolis all spread out to the watering mouth! and the dear and inestimable privilego of calling upon and looking at the Hero, without lest or molestation Verily, some men are born with silver spoons in their mouths. Councillor Camphell

3. October 1, 1829 Litchfield Enquirer Litchfield, CT
Article from Litchfield Enquirer, October 1, 1829

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GENERAL SUMMARY. A southern editor (observes the Williamstown Advocate) says, that the reason why the dogs who barked so loudly at the late administration are silent now, is, they have each got a bone in his mouth-and no dog can bark when his mouth is full. We think the big dog Duff Green is an exception-il he cannot bark at his enemies, he will turn round and growl at his friends. Sharks.-Another shark, of the great white species, has recently been taken in the Mississippi in the neighborhood of Natchez, supposed to have been driven up that stream by the steam boats. An enormous bear, weighing 540 pounds, was killed in the town of Adams, Mase. on the 12th Sept. It is said there are several still remaining in that neighborhood. The Williamstown Advocate states that for several nights previous to the 23d, the Aurora Borealis had been/uncommonly brilliant. We noticed the appearance here, but not so bright as on many former occasions. Two daughters of a Mr. Adams were killed by lightning in Richmond, Va. on the 31st of August. A sister who was in the same bed with them was uninjured. Eagle Bank.-A notice appears in a New-Haven paper, that agreeably to an order of Court, there will be paid to the depositors in the Eagle Bank, on and after the 1st of October, fifty per cent of the original amount of their several deposits. Gen. Scott.-The Nashville Republican, in reference to the late decision of the President on the subject of brevet rank, remarks-" The DECISION is against the position assumed by Gen. Scott, and though the country will, of course, be deprived of the services of that officer, his friends will be compelled to acquiesce in the justice and necessity of the DECISION." The same paper adds, that "no other alternative is now left him," but to resign.-Niles. Green County Bank.-I will be perceived by the order of the Chancellor, that a dividend of Sixty-five cents on every dollar of the claims against this bank, presented to the receiver to the 1st inst. has been declared, and will be paid to the Catskill Bank.-Argus. A man by the name of Ivey Wilkins, of Currituck County, N.C., who has been in the habit of abusing his wife, murdered her last week. He made a coffin, and was about interring the body, when he was overtaken by a jury of inquest. He ran, and before he e would suffer himself to be taken, had one of his legs e nearly shot off.-ib. a Confirmations.-The Rt. Rev. Bishop Brownell, in n his recent visitation has administered the holy rite of d Confirmation in the following parishes, viz :-In the t parish of Salem, to 26 persons-Waterbury 26-Watertown 15-Woodbury 10-Washington 3-Newis Preston 12-New-Milford 8-Sharon 14-Kent 4e Salisbury 13-Milton 8-Northfield 6. In all 146 perg sons.-Episcopal Watchman.

4. August 9, 1837 Martinsburg Gazette Martinsburg, WV
Article from Martinsburg Gazette, August 9, 1837

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# AN AMAZON. The New Haven Gazette, says: At Fairhaven, on the 3d ult., Mr. William Potter was engaged with several other persons in hauling a cannon to a proper station, and otherwise preparing for a salute on the morning of the 4th. This mis-spending of time gave some offence to his good lady, and after every thing became quiet, she went out and spiked the gun-so that next morning when the bell rung, and her husband and others repaired to the gun, they found it in unspeakable condition. This lady, a number of years ago, (then single) at the time the Eagle Bank failed, in which institution she had some interest, threatened to chastise Mr. Hoadly, the President of that Bank, and actually came into the city and sought opportunity to carry her intentions into execution. She was abundantly able to do him what she called "equal and exact justice." Mrs. P. is generally a good wife and good neighbor-but likes her own way sometimes.