Article Text
Failure of a National Bank. NEW YORK, July 27.-The National Bank of Unadilla, Oteego County, New York, is reported as having failed with liabilities estimated at $200.000. The cause is assigned to speculation in produce and stocks.
14752. National Unadilla Bank (Unadilla, NY)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- national
- Bank ID
- 1463
- Charter Number
- 1463
- Start Date
- July 27, 1867
- Location
- Unadilla, New York (42.325, -75.312)
Metadata
- Model
- gpt-5-mini
- Short Digest
158157ed43b6f169
Response Measures
None
Receivership Details
- Depositor recovery rate
- 45.9%
- Date receivership started
- 1867-08-29
- OCC cause of failure
- Losses
- Share of assets assessed as good
- 19.0%
- Share of assets assessed as doubtful
- 36.1%
- Share of assets assessed as worthless
- 44.9%
Description
Multiple contemporary newspapers (late July–August 1867) report the Unadilla National Bank as having failed/ suspended with liabilities ~ $200,000 due to speculation in produce and stocks and reckless management by officers; receivership was sought and a receiver (Lewis Kingsley) is referenced in Treasury/Comptroller notices dated Aug 26, 1867. No article describes a depositor run prior to suspension; the sequence is suspension/failure then receivership (permanent closure). OCR variants corrected (Otsego/Oste go/Oteego → Otsego).
Events (4)
1.
July 17, 1865
Chartered
- Source
- historical_nic
2.
July 27, 1867
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Failure attributed to reckless management and heavy speculation in produce and stocks by officers/owners (loss of capital and misuse of special deposits).
- Newspaper Excerpt
- The National Bank of Unadilla, Otsego county, New York, is reported as having failed, with liabilities estimated at $200,000.
- Source
- newspapers
3.
August 26, 1867
Receivership
- Newspaper Excerpt
- Notice is hereby given to all persons who may have claims against The National Unadilla Bank, N. Y. that they are called upon to present the same... to LEWIS KINGSLEY, Receiver of said Bank, at the office of said bank in Unadilla, N. Y. H. R. HULBURD, Comptroller of the Currency.
- Source
- newspapers
4.
August 29, 1867
Receivership
- Source
- historical_nic
Newspaper Articles (17)
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Article Text
National Bank Suspension. NEW YORK, July 27.-The National Bank.of Unadilla, Otsego county, New York, is reported as having failed, with 11. bilities estimated at $200,000. The capital is $150,000. The cause of the failure is attributed to speculation in pro. duce and stocks.
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SPECIAL TELEGRAM TO THE HERALD. TROY, N. Y., July 27, 1867, 7 o'Clock P. M. It appears, upon trustworthy information, that the management of the Unadilla National Bank has been of an exceedingly reckless character. The managers of the bank own a large majority of the stock, and it is understood that they have lost it in extravagant mining and produce speculations. In doing this they have nos only used up the capital of the bank, but have also taken the special deposits, at a very heavy rate of interest, from all the old farmers and other confiding people in the neighborhood. On these special deposits they have paid seven per cent interest, while the usual interest upon such deposits ranges not to exceed five per cent, and oftentimes as low as four per cent. I also learn that many of the merchants in and around that neighborhood have been sending certificates of deposit on this bank to pay their debts in New York, which, having been returned to the bank for New York funds, have remained in the hands of the Unadilla Bank unpaid. It is probable that the holders of these certifcates will be compelled to await the action of the receiver, to be appointed, before they can ascertain what proportion of the assets they will recei ve as dividends For some time the authorities of this bank have struggled to get back under the old State system, to the end that they might administer th eir affairs much more economically and with less popular suspicion. of course the innocent people of all that section of the country are in the highest state of alarm and indignation at the reckless acts of the bank officers. Corresponding banks throughout the country, which have sent the Unadilla items for collection, have in no instance received a response for some time past. Hence it has been found necessary to send special agents to Unadilla to ascertain the true status of affairs. It appears that the government Examining Agent some time since paid the bank are official visit to ascertain their standing, and to learn if they were complying with the National Banking law. It IS understood that the bank was then very deficient in the number of legal tenders which the law required them to have on hand. This shows full well that the law can be violated at any time by all national bank officers. In the case of this failure, as in many other similar instances, is has been ascertained that the legal tender security to be kept in the bank for the benefit and safety of depo. sitors has always been found missing when the receive era are appointed. The assets of the bank are very light compared with the liabilities.
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NATIONAL BANK FAILURES. It is reported that the National Bank at Unadilla, in Otsego County, New-York, has failed, with liabilities said to amount to $200,000. The bank was chartered about 12 years ago, under the old Safety Fund law of this State, and about two years since it took its na. tional character, with a capital of $150,000, and power to increase to $250,000. Its officers were Arnold B. Watson, President, and Clark J. Hayes, Cashier. The President, it is said. owned $100,000 of the capital, and the balance was in the hands of the Cashier and some relatives in Albany. It is reported that the assets of the bank will not go far toward meeting its liabilities. The assignment of the Unadilla National Bank is a general one, and the institution is still kept open according to law, though doing no business. A receiver from Washington has been applied for, and will probably arrive in a few days. The owner of $20,000 of the stock in Albany is a son of Mr. Watson, the President of the bank. It is stated by the President and Cashier that had the bank closed some months ago something would have been saved, as it is the losses will, I am told, be total. The newly appointed receiver of the Newton National Bank, Mass., lately defunct. has collected the liabilities and forwarded the amount to Washington. The discount notes amounted to about $110,000, of which nearly $90,000 has been collected. The balance, $10,000, is considered good, and $10,000 doubtful or bad, including in the latter category $2,500 of forged paper of William H. Lane. The authorities having charge of the bank propose, in case it is wound up, to resist the payment of the checks obtained through the cashier, Mr. Dyer. The Auburn Advertiser prints the following respecting the collapse of the Weetsport Bank: "We are informed that the failure is in consequence of dabbling in stocks by a prominent officer of the bank, who, finding himself in a close corner, pledged everything available in order to carry the speculations along while awafting a rise in stocks. and effecting an insurance to the amount of $30,000 on his life to be used as 'collateral." The failure sweeps the entire capital of the bank-$100,000. We understand a receiver is to be appointed at once to wind up its affairs."
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Bank Failure. NEW YORK, July 27. The National Bank of Unadilla, Otsego county, N. Y., is reported as having failed, with liabilities estimated at $200,000. Capital $150,000. The cause is assigned to speculation in produce and stocks. NEW YORK, July 28. The liabilities of the suspended Unadilla National Bank are estimated at $200,000. The President, it is said, owns $100,000 of the capital and the *balance was in the hands of the Cashier and some relatives at Albany. The reported assets of the Bank will not go far towards meeting its liabilities.
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TROY, N. Y., July 28, 1867, 10:30 Clock P. M. The assignment of the Unadilla National Bank is a general one, and the institution is still kept open according to law, though doing no business. A receiver from Washington has been applied for, and will probably arrive in a few days. The owner of $20,000 of the stock in Albany is a son of Mr. Watson, the president of the bank. It is stated by the president and cashier that had the bank closed some months ago something would have been saved, as it is the losses will, I am told, be total. As I telegraphed last night, great distress prevails in all the country surrounding Unadilla, my information showing that one woman, a widow, has become crazed by her losses, and that another has attempted to commit suicide. The losses cover a wide extent of country, and will be desolating in their effects.
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set forth by the Tribune of this morning as follows:"Money is easy on call at 4@5 per cent., with some loans at 3 per cent. Commercial paper sells at 6@7 for prime and 8@9 for second grades. Long engagements are still out of favor, and capital is kept in strict control. Some of the largest lenders report nothing of consequence under 8 per cent. on call. There are some orders for currency from the West, and Western banks holding Governments as temporary investments are still selling to strengthen their balances in New York. The failure of the Unadilla Bank excites little surprise. Such items, though infrequent just now, will be more abundant before Congress meets again." -A despatch from Troy says: "The assignment of the Unadilla National Bank is a general one, and the institution is kept open, according to law. though doing no business. A receiver from Washington has been called for, and will probably arrive in a few days. The owner of $20,000 of the stock in Albany is a son of Mr. Watson, the President of the bank. It is stated by the President and Cashier that had the bank closed some months ago something would have been saved; as it Is, the loss will probably be total. Great distress prevails in all the country surrounding Unadilla. The losses cover a wide extent of country, and will be desolating In their effects." I-The New York bank statement shows an increase in deposits, loans, circulation, and legaltenders, with a decrease in specie. The movement shows an increase of obligations and a decrease in the reserve. The reserve is still ample, but commercial affairs are steadily making demands upon the capital of the Atlantic cities, which will test them severely. PHILADELPHIA STOCK EXCHANGE SALES TO-DAY Reported by Dehaven & Bro., No. 40 S. Third street FIRST BOARD. a 44 109 $100025-20s '62 1 00 sh Ocean Oil reg 3:44 do $500 do 109 100 do boo.. 81/2 1000 1071/2 $500 US7-80s..Jy Is.. 67 sh Leh N stk 99% 451/6 $200 City 68, New 59 Is.. $800 15 sh Leh V R. do.. New 993 $1700 do..N..6 ctf 53% 100 sh Reading 993/4 29 6 sh Sp & Pine 14 100 sh Hestonville 100 do b60.. 33/2 100 sh NY & Mid 14% -Messrs. Jay Cooke & Co. quote Government securities, etc., as follows:-U. S. 6s ot 1881, 110@1101; old 5-20s, 111|@1I1}; 5-20s, 1864, 1091@1091; do., do., July, 1081@108}; do., 1867, 108|@108; 10-40s, 102@ 102); 7.30s, Aug., 107{@107}; do., June, 1071@ 1072: do., July, 107@107#: Gold, 1404@140. -Messrs. William Painter & Co., bankers, No. 36 S. Third street, report the following rates of exchange to-day at 12 o'clock:U. S. 6s, 1881, 110@110; U. S. 5-20s, 1862, 111|@111; do., 1864, 109|@109}; do., 1865, do. new, 108|@108}; 5s, 10-40s, 101 ₫ @1021; U. S. 7.30s, 1st series, 1071@1074; do., 2d series, 107J@1078; 3d series, 107₫ @1074; Compound Interest Notes, December, 1864, 117. -Messrs. De Haven & Brother, No. 40 South Third street, report the following rates of exchange to-day at P. M.: U. S. 6s of 1881, 110 @110; do. 1862, 111|@111}; do.. 1864, 1091@ 109g; do., 1865, 109t@109&; do., 1865, new, 1081@ 108); do., 1867, new, 108|@108]; do 5s, 10-40s, 102@102/; do. 7.30s, Aug., 107@108; do. June,1073@107.; do., July,1074@1074; Compound Interest Notes, June, 1864,119.40; do., July, 1864, 119:40; do. August, 1864. 119@1194; do., October. 1864, 1171@118}; do., December, 1864, 117s@117g: do., May,1865, 1161@1164; do., Aug., 1865, 115@115&: do., September, 1865, 115@1151, October, 1865, 1141@115; Gold, Silver, 133@134₫.
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THE FAILURE OF THE UNADILLA BANK. The Albany Argus of yesterday morning says: Rumors affecting the stability of the Unadilla Bank, owned by two gentlement of this city and its two officers in Unadilla, have for some days been current. We are now advised that Messrs. Watson and Haya have made an assignment for the equal benefit of their creditors to F. A. Sands and D. P. Loomis, of Unadilla, and a Receiver for the Bank will doubtless be appointed. This Bank was generally supposed to be in a sound condition, but this opinion would doubtless have been modified if it had been understood that it was in the habit of paying as high as seven per cent on deposits. This bank was last year merged from an individual into a National bank, and continued doing business under that system, with a partial change of owners, until the 8th of June last, when notice appeared in The Unadilla Times, signed by the cashier of the bank, to the effect that its affairs were being closed up, and creditors were requested to present their claims for payment. At the same time an editorial item in The Times stated that the institution was about returning to the old State system of banking. The Cooperstown Journal is informed that about a week previous to this the Government Examining Agent paid the Unadilla National a visit while on his tour through this part of the State, and found its affairs in an rinsatisfactory condition. The legal tender reserve was short of the required amount, and in some other respects the requirements of the Department at Washington may not have been complied with. These facts were reported to headquarters, and that fact became known to the NewYork agency of the bank, where it lost credit in consequence. The Freeman's Journal, in an article written before the announcement of the assignment, says: The affairs of the bank could not remain in this condition any length of time and escape the appointment of a receiver. Its managers then adopted the course we have stated, but did not themselves state, in connection with the advertisement alluded to, their intention to return to the State system. The creditors of the bank, to a larger number than was anticipated, presented their demands; looked-for aid did not arrivo in sufficient amount to meet the emergency; reports unfavorable to the condition of the bank, and to the pecuniary responsibility of some of its owners, began to circulate; holders of certificates of deposit on the Unadilla Bank also sought payment; personal claims were pressed; and finally suits began to be brought, which it is thought might have been avoided had the bank officers shown a fair balance sheet and statement to their creditors, who demanded something more than the mere assurance on the part of the bank owners that they were not only solvent but able to pay everything and retain a handsome property if not crowded. The Bank and individual liabilities are large, probably not as large as some have estimated, but they may exceed a quarter of a million. Since these difficulties commenced some claims have been paid. Many more are held by parties living in Unadilla, Butternuts, Oneonta, Delaware County, and elsewhere. Some of the certificates of deposit bear date several years ago, yearly interest having been paid on them. The assets are said to consist of Bank and other stocks, real estate near home, and in Buffalo and elsewhere-to what amount none of the creditors that we have conversed with ventured an opinion. The Bank officers say they are worth considerably more than the amount of their indebtedness, and can pay off all claims if prompt assistance can be had, or if allowed proper time." The notes of the National Unadilla Bank are redeemed at the New-York State National Banken Albany.
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National Bank Troubles. The Unadilla National Bank of New York, which has suspended, had a capital of $150,000, owned by the President, Arnold B. Watson, and Cashier Clark J. Hayes, and their relatives. Its liabilities amount to $200,000. Its embarrassments are said to be due to somebody's fast living and wild speculations. The Receiver of the Newton, Massa. chusetts, National Bank, has collected and forwarded to Washington the list of its liabilities. The discount notes amounted to $110,000, $90,000 of which have been collected, and $10,000 more are considered good.
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Suspension of a National Bank. NEW YORK, July 27.-The National Bank of Unadilla, Ostego county, New York is reported A8 having failed, with liabilities estimated at $200,000. The capital is $150,000. The cause of the failure 18 assigned to speculation in produce and stocks. NEW ORLEANS, July 9.-Governor Flanders returned to this city last evening. Five deaths from yellow fever and seventeen from cholera occurred last week. The weather is clondy, with light showers. General Berrizobal is having earthworks around Matamoras leveled and the ditches filled up. Fort Callegio, commanding the road from Brownsville, is already gone. Nine forts are also in be razed. These forts were built by the French and General Mejia. ST. Lours, July 29.-A despatch from Ellsworth, Kansas, three miles from Fort Harker. says there were fifteen cases of cholera there on Saturday and five deats. The town is almost deserted, and those who remain in it expect an Indian raid.
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The Unadilla Bank Failure. From the Albany Argus, August 3. The Unadilla Times of Wednesday makes some disclosures affecting the management of this bank, which, if true, look very much like a huge and deliberate swindle on the part of those who owned and controlled it. We do not know how far these parties have made themselves liable to a criminal prosecution for the manner in which the farmers of Otsego and other counties have been cheated out of their hard earnings by alleged stock gambling, but for crimes of far less magnitude than are here charged against the Unadilla Bank managers, the State prisons have closed their doors for years on many less "respectable" financial operators. We hope the matter will be probed to the bottom, and it there has beenferiminal mismanagement, that it will be exposed and punished. These developments show that, while the national bank system has inspired the farmers with increased confidence, in the iallacious belief that it furnishes greater security for their deposits as well as for circulating notes, it has at the same time furnished a cloak for bankers to carry on their dishonest speculations for many months without exciting suspicion. After referring to the assignment of Messrs. Watson & Hayes to Messrs. Sands & Loomis, the Times says:This step necessarily involves the question or their ability to pay the depositors not only of the old Unadilla Bank, but also those of the Unadilla National Bank. Since the organization of the latter institution large amounts of money from a wide section of country have been flowing into its capacious vaults for safe keeping. Widows and orphans contributed their mites, while the fortunate possessor of thousands freely added to the already overflowing fountain, all alike attracted by the glitter of equipage and by extravagant boastings of accumulating wealth. To avoid the unpleasant exhibit which the books of the bank would present with the record of such enormous amounts placed to the credit of depositors, it seems to have been the policy of the bank officers to give the notes of Watson & Hayes, instead of certificates of deposit, for sums left with them, many persons not recognizing the difference. The amount of their liabilities, we are informed, has not yet been ascertained, but are variously estimated from a quarter to halt a million dollars. The assets are said to consist of bank stocks, real estate near home and in Buffalo, undeveloped gold diggings in Nevada, oil investments in Pennsylvania, and innumerable moonshine speculations with promises of corresponding remunerative returns. Such is the kind of property from which creditors are to extract dividends for their deposits, in most cases the production of honest industry and laborious toil. As yet no receiver has been appointed for the bank.
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CURRENCY AND THE NATIONAL BANKS.-The following list embraces some of the suspensions and failures of National Banks since January, 1867: MARCH 2.-The National Bank of Newton, Massachusetts, failed, with liabilities amounting to $110,000. The National Bank of Hudson, New York, discovered an embezzlement by the cashier to the amount of $50,000. The concern revived after several weeks suspension, and resumed business. MARCH 4.-First National Bank of Medina, Missouri, failed, with liabilities of $82,000. The Mechanics' National Bank of Baltimore, broke down from the effects of a series of defalcations, carried on for a long time by two officers of the institution. JULY 25.-The Weedsport (Cayuga County) National Bank closed doors, its liabilities being $125,000. JULY 26.-The National Bank of Unadilla, Otsego County, failed, its liabilities being $200,000. JULY 27.-The Pequonnock National Bank of Bridgeport, Connecticut, suspended business and offered a reward of $500 for the fugitive cashier, W. Hamilton Barnum, who absconded with $50,000.
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-Chicago is eating frogs voraciously this season, and has already consumed 100,000, with the expectation of tripling the number next year. At the Southern House and leading hotels they are regularly announced on the bill of fare, and readily accepted as a relief from the detestable "blue beef." -Longfellow always sends to the printer very clear copy. His MSS. are all written in lead pencil upon large sheets of a good quality of book-paper each sheet contains never more than two four line verses. The manuscript of his translation of Dante, if bound would make several immense volumes. -The loss by the suspension of the National Bank of Unadilla, N. Y., will be somewhere between a quarter and half a million dollars, and the assets of the concern will not yield ten cents on a dollar. All the hard earned savings of poor people in the town and vicinity are gone, and the excitement is great. Speculation of the most loose and unguarded character was the cause of the failure. -The Japanese in Paris have taught the cooks at the Grand Hotel how to "bake" ice creams. Freeze your ice as hard as possible, wrap it quickly in a very thin crust of pastry and put it in the oven. The pastry will be baked before the ice cream melts (for the pastry is a good non-coductor of heat;) serve hot and you may enjoy the pleasure of eating hot pastry and ice cream at the same time. -Do not watch your feelings. They are no guide to go by. Do not think a cause you do not feel right this morning that you are far from God, or because you do do feel right that you are near to God. You cannot judge of your state by watching your emotions. You are to judge of your condition by the whole carriage and direction and flow of your life. If you are going toward God, you will know it; if you are living a life of benevolence, you will know it; if you are in the daily performance of your duty, you will know it; and that is enough. Take the whole course, take the journey's drift, and not any particular stage. This is a thousand times better than any other method.
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MASONIC-WASHINGTON CENTENIC NIAL LODGE, NO 14, F. A. A. M.-A Special Communication of the Lodge will be held on WEDNESDAY EVENING. 11th instant, at 71/2 clock, the Regular Communication having been dispensed with in consequence of the death of Bro. GEORGE C. WHITING. M. W. Grand Master. se10-1t THOS. THOMPSON, Sec'y. SEPTEMBER 7TH, 1867, Washington D.C. IC The CAMP MEETING at Goodhope will continue until the 14th or 15th. if nothing happens. s7-3t* REV. W. H. WATERS. Pastor. TREASURY DEPARTMENT. IC Office of Compivoller of the Currency, WASHINGTON, August 26, 1837. Notice is hereby given to the holders of the cir culating notes of The National Unadilla Bank." N Y. that such notes will be paid in lawful money of the United States upon presentation of the same to the Treasury of the United States. H. R. HULBURD, au27-T.It Comptroller of the Currency. TREASURY DEPARTMENT. Office of Comptroller of the Currency. WASHINGTON. Aug. 26, 185. Notice is hereby given to all persons who may have claims against The National Unadilla Bank,"N Y. that they are called upon to present the same. and to make legal proof thereof, to LEWIS KINGSLEY. Receiver of said Bank, at the office of said bank in Unadilla, N. Y H. R. HULBURD, au 27 7.13t Comptroller of the Currency.
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NATIONAL BANKS SUSPENDED.-The following National Banks have passed into the hands of Receivers: Croton National Bank, N. Y. National Bank of W bitestown, Oneida county, N. Y. Atlas Bank, of Providence, R. I. Unadilla National Bank, Unadilla, New York. Kingston National Bank, Kingston, New York. Farmers' and Citizens' National Bank, Brooklyn, N. Y. First National Bank, Utica, N. Y. First National Bank, Medina, N.Y. First National Bank, Columbia, N.Y. Venango National Bank, Franklin, Pennsylvania. Merchants' National Bank, Washington, D. C. Tennessee National Bank, Memphis, Tennessee. First National Bank, New Orleans, Louisiana. First National Bank, Carondelet, Missouri. First National Bank, Selma, Alabama.
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National Banks Suspended. The following National Banks have passed into the hands of Receivers : Croton National Bank, New York. National Bank of Whitestown, Oneida co., New York. Atlas Bank of Providence, Rhode Island. Unadilla National Bank, Unadilla, New York. Kingston National Bank, Kingston, New York. Farmers' and Citizens' National Bank, Brooklyn, N. Y. First National Bank, Utica, N. Y. First National Bank Medina, N. Y. First National Bank, Columbia N. Y. Venango National Bank, Franklin, Pa Merchants' National Bank, Washing ton. D. C. Tennessee National Bank, Memphis, Tenn. First National Bank of New Orleans Louisana. First National Bank, Carondelet, Mo. First National Bank, Selma, Alabama Mrs. Jesse Craig of Island Falls, Maine made, in six weeks this summer, 50 pounds of cheese.
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List of Broken National Banks. The following is a list of the National Banks that have suspended and passed in. to the hands of receivers: Croton National Bank, New York, National Bank of Whitestown, Oneida county, N. Y. Atlas Bank of Providence, R. I. Unadilla National Bank, Uuadilla, N. Y. Kingston National Bank, Kingston, N. Y. Farmers' and Citizens' National Bank, Brooklyn, N. Y. First National Bank, Utica, N. Y. First National Bank, Medina, N. Y. First National Bunk, Columbia, N. Y. Venango National Bank, Franklin, Pa. Merchants' National Bank, Washington, D C. Tennessee National Bank, Memphis, Tennessee. First National Bank, New Orleans, La. First National Bank, Carondelet, Mo. First National Bank, Selma, Ala. The notes of these Banks are not affect. ed in value.