Commercial Bank - Albany, NY

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: October 13, 1835
Location: Albany, New York (42.653, -73.756)

Metadata

Model: gpt-5-mini
Short Digest: 0d2e0af4

Response Measures

Public signal of financial health

Other: Directors issued a public statement assuring solvency and promising to pay on demand; described discovery/rumor of embezzlement by cashier Bartow.

Description

Newspaper reports (Oct 1835) describe the disappearance/embezzlement by the cashier (Bartow), rumors and flight of funds and public excitement. Directors issued a statement (Albany, Oct 13, 1835) assuring solvency and that payments would be made on demand; there is no clear statement that the bank suspended or closed. Classified as a run_only driven by bank-specific adverse information (embezzlement).

Events (1)

1. October 13, 1835 Run

Cause: Bank Specific Adverse Info
Cause Details: Discovery/rumors of a large defalcation by the cashier (absconding of cashier Mr. Bartow) and reports of substantial sums abstracted, producing distrust and flight of funds.
Measures: Directors issued a public statement assuring capital and surplus, noting payments of notes, drafts and deposits would be made on demand; public reassurance of solvency.
Newspaper Excerpt: THE COMMERCIAL disappearance of Henlate Cashier of the Commercial Bank ... has naturally created much excitement, ... and given rise to concerning its solvency.
Source: newspapers

Newspaper Articles (1)

1. October 23, 1835 Richmond Enquirer Richmond, VA

Article from Richmond Enquirer, October 23, 1835

Click image to open full size in new tab

Article Text

DOMESTIC. the New York Commercial.] DEFALCATION. [From No small stir was created RUMORED this morning, by rumors from Albany in of Wall street cashier of the Commercial Bank the and the discovery of a large deficit in in city, flight of the by its the funds folthat were in some degree confirmed The rumors brief paragraph from the Albany Daily Adverti- antiser, lowing bearing date of this morning, but published in cipation reported yesterday that the Commercial Bank to "It Albany was had discovered that a portion of its funds, a of considerable amount, had been abstracted.' The reports are numerous, and doubtless greatly of various exWe were told in Wall street from sums having aggerated. been abstracted from the bank, varying Bank to 200,000. It was also reported that the $110,000 America had been overdrawn by the absconding But cashier of of the Commercial Bank-Mr. Bartow. such is not the fact. far the Bank of America is apprised of the facts been So the case, as the drafts upon them appear to have received regular of transactions; the checks having been the ordipaid through the regular channels, and in thus and course of business-and we may add, that, the last far, nary fraud has been discovered by the officers of in mentioned no Bank. If, then, there has been any fraud. connexion with the business of the Bank of America and the Commercial Bank, the cashier of the latter must has charged remittances to the former which he have pocketed instead of remitting. It is also rumored, that the Commercial Bank has stopped. Such could not have been the fact until this morning because, nothing in the affairs of the Bank was dreamed of, at Al- of wrong until yesterday morning and the first symptom the bany, distrust was occasioned, not by any discovery, but by long and unaccounted for absence of the cashier. Anany the paper of the Commercial Bank-its drafts-and checks-are event, taken at the Bank of America, as usual. The erroneous statements published in some of the York papers, in relation to the affairs of the CommerN cial Bank in this city, have called out the following statement from the Directors, which we copy from Argus. the Eve. Albany Journal of yesterday: THE COMMERCIAL disappearance of Henlate Cashier of the Commercial Bank of did A1ry Bartow, has naturally created much excitement, connected as it the bany, astonishment of the Directors and persons various sur with that Institution, and given rise to concerning its solvency. In consequence of Com- of mors publication of an article in the Journal Bank the of New York, stating the capital of the by merce, $240,000, and an embezzlement of $210,000 the at late Cashier, the Directors decm it proper to apthe public, that the capital of the bank actually $79,263, paid prise is $300,000, together with a nett surplus of dimaking in the total amount of capital $376,263. The rectors are not apprised of defalcations to the amount an of $130,000; which, if it should be that sum, will leave unimpaired capital of $249,263. Although a partial loss thus sustained by the stockholders, the directors assur- are enabled, is from the examinations made, to give the others. that in no event can injury or loss accrue to ance, Besides, by the terms of the charter of this Bank, the stockholders are individually responsible to double be- the amount of the original capital, being $600,000. The einess of the Bank will not be suspended, and all notes, drafts and deposites will be paid on demand. JOHN TOWNSEND, President. WILLIAM WALKER, V. Presit GEORGE W. STANTON, Jons L. SCHOOLCRAFT, WILLIAM NEWTON, LEWIS BENEDICT, JAMES HORNER, Jous GOTT, SETH HASTINGS, Directors. N. -The other directors are at present absent from the city. Albany, October 13, 1835. EXCITEMENT IN NEW York.-Extensive Fraud.Wall street, says the Commercial Advertiser of Tuesday, in an uproar yesterday afternoon, caused by the unwelcome was discovery that jobber in fancy stocks had suddenly evacuated Flanders, leaving certain checks upvarious banks, to the amount of $41,000, which he had on given as so much cash, in the morning, atterly unprovided The individual for is a young Englishman, calling himWilding, who has figured to some extent in the stock self market lately, as well as in Broadway, where he velvet made quite show every day with green frock coat, red diamonds low-crowned hat, and a great store of and waistcoat, safety chains. In the-course of the morning, he purchased stocks of one dealer to the amount of $30,000, and 11,000 of another, giving his checks in payment; but he forgetting to make deposits to meet those checks, made sale of the scrip without a moment' delay, fingered the proceeds, amounting to 41,000 dollars, and instantly bolted. The roguery was discovered, of course, on preventing the checks-the myrmidons of the police were the roused to the chase-and at 11 o'clook last night, gentleman was civilly ushered into the presence of the magistrates, having been arrested somewhere in the up per part of the city. He had removed from his lodgings, with bag and baggage, but his movements were neither rapid nor secret enough to evade the pursuit of the keen ministers of the law. A large part of the money was found upon his person. The strangest part of this affair is the readiness of the brokers to suffer so large an amount of money to pass out of their hands, with no better security for repaythan the checks of an miknown dandy boy- fowithout connexious, or guarantees any reigner ment who been known, of even kind by for his integrity, and has sight, only a few months in Wall street. In the card published in the morning papers ansouncing his fraud and offering a reward for his apprehension, he is represented as no more than "about twenty years old. Tourno,O. October 2. GOVERNOR HORNER BURNT IN EFFIGY We learn that the new Governor of Michigan has not been very cordially received by the Wolverines, having been burnt in effigy streets of Detroit a few nights after his arrival at that city.-We presume, having refused to continue the mad policy of the late not-headed Secretary, he has incurred the displeasure of .the.sovereign people. of Detroit. We have received no papers from that city since our-last.--Gazatte. NILES, Berrien Michigan,) Oct. 3.-Mr. John S. Horner, of Virginia, our new Secretary and Acting Governor, arrived in Detroit a few days since. He is said to be a very gentlemanly man, and determined to sustain the interests of Michigan Our citizens East appear willing and determined to sustain him. We have always been prepossessed in fayor of the Virginia character, and feel satisfied that Mr. Horner will ably support himself and the integrity of Michigan. We understand that a committee waited qp ;him on Tuesday last, for the purpose of ascertaining his views in regard to the rights and interests of Michigan, which we have no doubt they found to be,correct. Query-H Governor Lucas gained any thing by the exchange? He must recollect we still have a Virginian for a Governor.-Gazette. ELECTION IN MICHIGAN.- By the Detroit Journal, of Oct. 8th, we have returns from that city, which show ,that Gov. Mason has been, in all probability, chosen without opposition throughout the territory. Whether efection before the territory is admitted as a State