14892. Farmers Bank (Canton, OH)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
September 1, 1841*
Location
Canton, Ohio (40.799, -81.378)

Metadata

Model
gpt-5-mini
Short Digest
e5f657c9ce4bba70

Response Measures

None

Description

Newspaper accounts from Jan–Apr 1842 report the Farmers' Bank of Canton sustained a months-long run, suspended redemption in mid-Jan 1842, and by spring 1842 is listed among 'broken & suspended' banks with its notes heavily discounted (50¢). Evidence indicates a run preceded suspension and the bank did not resume normal operations.

Events (3)
1. September 1, 1841* Run
Cause
Bank Specific Adverse Info
Cause Details
Sustained a prolonged run attributed to loss of confidence and alleged specie depletion and questionable management by directors (specie sent away); not described as a false rumor.
Measures
Board appointed an independent committee (Judge Belden, D. A. Starkweather, J. D. Brown) to examine the bank's condition and directors attempted to collect debts and convert assets to redeem notes.
Newspaper Excerpt
the Bank has sustained itself against a constant run for the last four months
Source
newspapers
2. January 14, 1842 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension followed a prolonged run and apparent shortage of specie; directors claimed means were ample but could not immediately redeem circulation.
Newspaper Excerpt
has been obliged temporarily to suspend the redemption of its bills
Source
newspapers
3. March 31, 1842 Other
Newspaper Excerpt
Farmers Bank of Canton, 50 dis (notes worth 50 cents on the dollar); listed among broken & suspended banks by Apr 1842 accounts showing it as broken or suspended and heavily discounted
Source
newspapers

Newspaper Articles (8)
1. January 14, 1842 Carroll Free Press Carrollton, OH
Article from Carroll Free Press, January 14, 1842

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CARROLLTON FRIDAY JAN. 14, 1842 FARMERS' BANK OF CANTON. This institution has again failed to redeem its bills! The Directors however claim that their available resources will enable them to redeem every dol lar of their paper. "So mole it be."We observe that some of the merchants of Canton have given notice, that they will receive-Canton paper for goods, &c. at par From this we infer that there still exists about Canton, at least, the belief that the bank will redeem its is. sues. The Repository of yesterday morning has the following notice of the failure: FARMERS' BANK OF CANTON. We regretthe nocessity we are under, of announcing to the public. that the Farm. ers' Bank of Canton, after sustaining itself against a constant run for the last four months, during the first three or four weeks of which, there was a perfect pan. ic, has been obliged temporarily to EUS. pend the redemption of its bills. We are authorised, however, by the Board of Directors to state, that its means are ample to redeem all its circulation: And that it will pursue the most vigorous course possible, in collecting its debts & converting its other means, For the purpose of satisfying the public, that the bill-holders will sustain no loss, the Board of Directors have appoint ed R committee of competent and disinterested persons, consisting of Judge Belden Hon. D. A. Starkweather, and J. D. Brown, Esq. to examine into the condition of the Bauk, and their report will be published as soon after it 18 com pleted as possible.

2. January 24, 1842 New-York Tribune New York, NY
Article from New-York Tribune, January 24, 1842

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3,000 Indiana Bonds Messrs. Pepoon & Boffman have been appointed agents for the redemption of the notes of the Back of Lansing burg. We were misinformed in relation to the injunction said to have been laid on the sale of Illinois Bonds by the Me chanies' Banking Association. Due notice was given of the sale, and no injunction has been laid. We have seen private letters from Columbus, Georgia, which state that the populace were much excited against the Banks, and had threatened an attack upon the Bank of Columbus The Columbus Guards were prepared to resistant such exhibition of violence. It will be seen by reference to a letter from our correspredent at Columbus, that a Bill has passed one branch of the Legislature of that State to enforce the resumption of specie payments after the 4th of March next. The Farmers' Bank of Cauton, Ohio, has suspended payment. The Banks of Baltimore in answer to the queries of the Legislature Committee in relation to resumption, sn. nounce their readiness to resume. excepting the Fracklin, which is winding up, and the Farmers' and Mechanics.Most of the Banks, however, think August is early enough and that it would be injudicious to resume without Peansylvania and Virginia. LONDON MONEY MARKET.-The President's Message and the Speech of the King of the French. as well as the appointment of Lord Ashburton had had a very favorable effect upon the money market. and nearly every description of stock was buoyant. Money was more plenty. On the 3d inst. Consols were 893 for the account. The premium upon Exchequer Bills was 17s. on India Bonds, premium 5x-the highest point they have touched for some time. MARKETS.-The duty on Wheat had been advanced to 23s. Sd., ou Flour 13% 3d. per bbl. Wheat had declined about 1d. per bashel in bood. The transactions were limited. The receipts of Foreign Grain and Fleur had been heavy. The stock of Cotton at Liverpcol on the 31st HIL. was 499.930 bales. The demand was very active, both for consumption and speculation, and American wysquoted at an advance of R per lb. The sales for the six days preced. ing the sailing of the steamer reached 27,000 bales, and the market continued to have a buoyant feeling. The accounts from America were looked upon as being favorable for trade and a good feeling as :0 the future business was generally entertained by commercial men. At Manchester the feeling was also better. and an improvement both in demand and prices was looked for.Yarus had slightly advanced, and Cloths were held much more firmly.

3. January 25, 1842 New-York Tribune New York, NY
Article from New-York Tribune, January 25, 1842

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The demand for Foreign Exchange is not very active. Sterling City Bills are selling at a a31: Southern Et a 7j: France 324 a 531+ Philadelphia Exchange is getting worse. WE quote Philadelphia 61 a St: Baltimore 34 a 4: Virginia 61 & 68: Mobile 14} a 15; New-Orleaus 8th Nashville 141 a 15; Louisville 94 a 10: St. Louis 14 a 15; Cincinuati 13. The Buffalo Commercial says that the exertions on the part of those persons interested :0 the resuscitation of the Commercial Bank of Buffalo have preved ineffectual.They have returned from Albany without accomplishing their objects; and the Bank will probably gointo the bands of a receiver immediately. We shall soon look out for the Bank Commissioners) Report. We hope to see it B searching one-one that will "peak out and be afraid of nothing but of concealment. In looking over the Report of last year we notice that the important item of the individual liabilities of the Directors of the Commercial Baak of this city is oritted. Even at thislate day we would like to be informed of the reason of this omission. Will our friend, Mr. Starr. in formust The Farmers' Bank of Canton has stopped paymentThe Canton Repository states that the Bank has sustained itself against a coastant run for four months, and expres. 508 the opinion that her means are ataple to reedem all its circulation." subject only to the delay necessary for collecting." The Mohawk and Hudson Railroad have declared a dividend of three per cent. New-York Markets. ASHES-The market continues inactive, but prices are without change. The nominal rates are? 00 for Pots, 6.00 for Pearls. COTTON-The foreign advices are considered favora. able, and about 800 bales have sold at full prices. and in some instances at a sli. hi advance. FLOUR-There 13 a fair demand for Eastern markets and home use, but the inquiry for export has subsided.The market is heavy at 9: for Genesee. Southern dull and without change Georgetown 6 a 6184 Brandywine 612; a 6 25. GRAIN-The only sale reported is 2,100 bushels old Southern Corn at 64c. weight. 90 days, addition interest.There is very little Corn in market. Nothing doing in other descriptions. The Wheat saved from the Frankfort is not on the market VEL. New-York fattle Market. Reported for The New-York Tribune. MONDAY, Jan.24.1842 At market 900 head of Beef Cattle, including 200 left over last week 200 of which were from the Soath. and the balance from this State 70 Milch Cows and 1,200 Sheep and Lambs. The sales of Beef were very limited. Only 600 head taken at 41 a $7-averaging 851 the 100lbs. MILCH COWS-5J were taken at $25 to $40 each. and dull. SHEEP AND LAMBS were mostly taken-Sheep at $1 75 to $5; Lambs at $1.25 to $3.50 each. HAY-The market has been well supplied, and sales were made at St to 91 cents per 100ths.

4. February 24, 1842 The Ohio Democrat New Philadelphia, OH
Article from The Ohio Democrat, February 24, 1842

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COMMUNICATION. To the Editors your of the two Democrat: last numbers I proposed Brown, certain Gents-In Messrs. Belden, Stark weather & directors of questions to voluntarily appointed by the concerns. the committee of Canton, to investigate its the F. were not intended to create any Those Bank questions the hope ad. excitement against the bank; but with have tenditional candid and free answer to them would have that a such excitement. That Committee have not ded to allay to replyto them-perhaps reference they to denot seen proper now to do 80; at least not in of in the means Yet I conceive that by pursuing a course informatails. indicated by those questions much elicited. vestigation value to the community might be the tion of in the Onio Repository." over and answer sign A writer Director does come ward shipped ture respecting of ..A "that $10,000 we 111 are specie' bound said to believe to be that the the to Pittsburg. Repository 1 tink 18 a veritable director knows of all writer in the Brother Saxion," who much at bank, masmuch and as has the interests of the bank perthe directors, not have permitted an unauthorized celheart, would 'a director' has done, through the then son to speak Repository- as How stands the case with senuinns of the accused in the Ohio Statesman bank was specie on the failure. or a ding off this had The that 'premeditated;' 'aDirector' after after the denies, close failure but of been was not gent away till business! mays that it on the last day the bank did Bank on Banking hours true that at the closing of the must And is it the directors did not know the last the next morningf And that faul and shut of up such an impending catasrrophe of day' then that they they without other sent knowledge specie" to Pittsburg to obtain $11,000 which at off "that where with to redeem their circulation; it possible funds amounted to $127,255? And IS time hours the next day the avails of the $10,000 covered that that before that Banking they could for had not Mr. dis- be J. season for that day' operations? before the realized in letter to Lancaster was written the bank A. Saxton's on the next day, announcing that bauk payment on the morning of-that would stop to me from the statement of 'A It appears sent off under I do opened was circumstances director' 'next And day. very that that specie' indicative of a contemplated failure. quite strongly that the President and Cashier bank were could not suppose believe for a moment that the so soft as to sustain itself for an hour en its the notes of other on next and day $12,190in banks against $894 then on in a specie, not sufficient to pay the deposites that the directors could not have run. It No, was supposed without hand. could sustain itself the 'next day' 'its the bank or its avails, and it nowhere appears that those 'that specie werein bank on that 'next day, nor that aavails' vails or any part of them were counted by the Committoe. confession of 'a Director' however establishes DemoThe which has long been asserted by the habit of one fact party, viz. that Banks have been in the depreciated cratic off their specie and selling it for has at a premium. This sort of on the banks to add largely to their the farmers have been shaved to an sending currency enabled and financiering director' income amount is mis. paper, equal to the premium. I think a satis. fully in his supposition that the public would be if taken their claims paid in good currency, and fied could dispose of their specie so as to means $1000 it would to the bank to available have that increase extent their the public.' It strikes me that this operation benefit ten per cent off the holders of all Canton pa= shaved 'the avails' of 'that specie. It also seems aper I believe it, that the holders of to me, Canton Bank would rather have 75 in gainst paid the and by 'Glaims' received paid dollar in 'that specie, than to be cents at and further I think very 'avails' are now at a still greater that 'the avails those on the par, does probable discount. net those 'avails' consist of 'A Director' of What I have nothing to say as to the confidence tell public us. 'once' reposed in the directors of that Bank, the will intentionally de any thing to prevent their renor so much of the public confidence as they may gaining But question much if the farmers who have deserve. of their paper for wheat during the past be disposed to restore them to taken season, so will much directors entire confi- have dence when they Sr. that these same been at pains to their specie exchanged into a curless valuable wherewith to pay off those himself- notes. rency a for each man to answer for a confess I have very little This for my is part question dollars, confidence and who in , who promises to pay me ten re= man de but insists that in offering me nine dol lara has done all he should do; and moreover fuses he to so, dollars, tells & to my teeth that this is the 'avails' of ten t that me he has got the other dollar in his pocket. I should be mighty apt to believe that Integrity and specie payments were simultaneously suspended. o I close now by asking 'A Director," or the whole board of directors if you please, a few questions. , Did not the Cashier or some Directors of the Farmers Bank of Canton very shortly before it bursted, call the t attention of its customers or some of them to the ma e king of further loans. or make offers to do their paper to any extent they might wish? Was not this don e within a week of the failure? I respectfully ask 'A r Director' to State the character of the $5,550 00 stocks h -against whom are your Stock bonds 67,645 00'-for was laid down in the case Ohio vs. your least 60 I am informed? all s as bank the (at Law debtors for the for amoun stock are liable to the creditors of the bank $ due. Is it afact that your bank has busines as stock in, and yet the large amount h upon paid been In statements doing above made mentioned has never been paid in? to the has not your an t not they or one mad e cashier public asserted-have authorities, of President more? them as oath stock in was 200,000 or I t would not detract from the those officers I will explain. not fee a that paid hope you 'confidence' justly do Gazette due disposed to join in the cry of the Massillon gainst you and "fall a cursing you like a very drab, h scullion,' but would fairly express my doubts and ac d cept for and with very great gratifi caton an or a it myself expl anation, neighbors, contradiction wherever in may have misapprehended the matter; out preser e circumstances full explanations are due to the public n If you have erred confess it like men and Christiansand thereby enable the public to be on their guard a gainst the effects of similar mistakes in others. NECKAR e h Another Fiscal Agent has Keen delivered in Con

5. March 31, 1842 The Ohio Democrat New Philadelphia, OH
Article from The Ohio Democrat, March 31, 1842

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SPECIE PAYING BANKS. Western Reserve Bank, Farmers and Mechanics Bank Steubenville, Columbiana Bank of New Lisbon, Bank of Mt. Pleasant, Belmont Bank of St. Clairsville, Bank of Marietta " Zanesville, " Muskingum, " Circleville (old) Ohio Life Ins. & Trust Co. Bank of Norwalk, Deyton Benk, Bank of Geauga, " Wooster, " Massillon, Sandusky, Xenia, Franklin Bank of Cincinnati, Lafayette. is " Commercial Commercial Bank of Scioto, Glinton Bank of Columbus, The Columbus Statesman, contains a 'Specie basis Bank Note Table," in which the value of the following suspended andbroken Bank notes, is thus rated: Franklin Bank of Columbus, 18 discount, 20 dis. Bank of Chillicothe, 25 dis: Lancaster Ohio Bank, 50 dis Bank of Hamilton, 50 dis Farmers Bank of Canton, 50 dis Con mercial Bank of Lake Erie, 60 dis Bank of Cleveland, 62 dis Bank of Granville, 75 dis Urbana Banking Co. INDIANA. 10 dis State Bank'& Branches, 50 dis State Scrip, 5s MICHIGAN. 10 dis Bank of St. Clair, Indorsed by Smithe 10 dis

6. April 21, 1842 The Ohio Democrat New Philadelphia, OH
Article from The Ohio Democrat, April 21, 1842

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BROKEN & SUSPENDED BANKS. Farmers Bank of Canton, Franklin Bank of Columbus, Bank of Chillieothe, Com. Bank of Lake Erie, Bank of Cleveland, Lancaster Ohio Bank, Bank of Granville, Bank of Hamilton, Urbana Bank ing Co. The five banks to the left, are broken, and their notes worth. from 25 to 50 cents OII the dollar. The four to the right are suspended, and worth from 70 to 80 cents. The notes of the Indiana State Bank, and Bank of St. Clair, Michigan, endorsed by the Smiths, are still in circulation. But we advise the public to be on their guard Some hard things are being said about these wo banks

7. January 31, 1850 Burlington Hawk-Eye Burlington, IA
Article from Burlington Hawk-Eye, January 31, 1850

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Just as we expected!!! When our Low Water neighbers turned out Financiers, and made a futile effort to run a tilt gainst Clark's paper, and read puerile lectures on currency to their readers, we knew they must render themselves, and the whig party even, in a measure, ridiculous. The aim of the Whig party should be to establish in our State a banking system, with all checks and safeguards necessary to secure entire solvency and proper management. As the experiments heretofore made seem to indicate, all expedients have failed, and the solvency of banks has seemed to be the result of honest and judicious management, and not legislative restriction. If there be any exception, it is in New York. The State Branch system of Ohio never has and never will have the entire confidence of financiers. Whether the banks of that State are good or not, nobody can tell here or there. If any one personally knows the managers he can form an opinion satisfactory to his own mind, but after all, actually knows nothing. And yet the bulk of the currency of Iowa is Ohio paper. How much tter-would be a currency of our own, under our own control? The Keokuk Register published a statement of the condition of the Ohio Banks-as they said-to "head the advocates of Clark's paper !" This statement shows that the immediate liabilities of those banks exceed their immediate means $7,022,131, and that neither the editors at Keokuk nor the people of Ohio know any thing about the actual value of Ohio Bank paper. They show by their statement that their immediate means are not sufficient to meet their liabilities. But say these astute financiers of the Keokuk Register-we took our statement "from the Cincinnati Gazette-the oldest and most influential Whig paper in the State-the editor of which remarks, 'that the Banks of no State in the Union are stronger and more impregnable.' The fact that their immediate liabilities exceed their immediate means seven millions and more, does not prove to be true, what the Gazette says as to the solvency of these banks; but the fact that the oldest Whig paper in Ohio says so, satisfies the financiers of the Regis. ter, that such is the fact. Now weare pretty much of the same opinion-but for a very different reason. We do not think, with the Register, that the statement proves anything, except the inability of the Ohio Banks to pay; but when the editors of the Cincinnati Gazette assure us that we may have confidence in Ohio Banks-we are disposed to contide in the editors of that paper, because we believe they are honest and well informed. So in regard to Clark's paper. Men, as honest and well informed, assure us, and give us confidence. We cannot descend to the slang of the Register. We desire to reason and be met in the same way.If "billingsgate" suits better the appetites of the readers of the Register, we can forgive it. But in justice to Clark & Co., we must copy one remark of the Register, as follows make no objection whatever to the regular business of Clark & Co., in the Exchange and Broker line; that is entirely legitimate, and had they confined their operations to that, no one would have just cause of complaint." So far as we have been able to ascertain, the business of Clark s Co. in this place, has been, wholly confined to the business of buying and selling, of exchange, and to notes of foreign banks. We do not know of a single loan-nor, do we believe one to have been made. It is regretted by business men that their paper cannot be borrowed. And the reason why it cannot, is owing to the fact that it is worth 1 per cent. more at St Louis, than any paper in circulation in Iowa, (except Missouri Bank,) and will therefore return upon them as fast as issued. Is this the case with Ohio paper ? No! It is usually sent here in greatest abundance just before a failure as all know, who remember the rotten concerns-the bank of Cincinnati-bank of Gallipolis-bank of Norwalk-bank of Sandusky-bank of Steubenville-bank of West Union--bank of Wooster--Farmersbank of Canton--Farmers Bank of New Salem--Farmers and Mechanics bank of Chillionthe-Farmers and Mechanics bank of Cinbank of Wooster-Jefferson bank of New Salem, etc., etc., etc. All of which, Ohio newspapers, called gou. until they were broken, and Iowa footed the bill! In conclusion, we recommend the editors of the Register to abandon the wind-mill operation of one Sancho Panza, and to devote their energies to the Rail Road from Dubuque to Keokuk. Which will be built "if they only have time" !!! Gentlemen, you must tarry in Jericho a little longer I I

8. February 17, 1898 The Stark County Democrat Canton, OH
Article from The Stark County Democrat, February 17, 1898

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REPUBLICANS DIFFER. It seems the Republican members of the house committee on banking and currency cannot agree on a general plan of monetary reform. There are 11 Republicans on this committee and they s utterly despair of ever agreeing upon a full and comprehensive arrangement. The same committee in the last two congresses labored in the same line, but could not agree. In the present committee there is a wide difference of opinion on a financial policy, but the Republican members are fighting it out there. Their financial contests and quarrels are thus kept private. Upon the important question of retiring the greenbacks, after considerable discussion the vote was 6 for, to 5 against, being pretty evenly divided. On extending the powers of the banks the vote was 9 to 2 as report goes; the nine favoring that the banks be allowed to issue credit currency without special security, or special limit, that is, a currency based on a windy bank promise. Before the war in the state bank arrangements we had lots of that sort of swindling experience. Some of us remember the "Wild Cat Banks" west, and have a distinct recollection of the Farmers' Bank of Canton, the German Bank of Wooster, the Bank of Wooster, and others in all parts of the state. These institutions got their promises to pay into circulation among the people, and in a brief time the institutions suspended and down went their paper which was out among the people being the only "money" in circulation. During the past year 170 banks failed in this country, showing that these hardtimes affect banks as well as other businesses. In such times few escape feeling the pressure. The currency committee of the house it is thought will ultimately report a bill as the NewsDemocrat has said in accord with the gentle suggestions of the President. These three points are to lock up in the treasury greenbacks and treasury notes which were redeemed in gold until such time as they may be paid out for gold; to give the national banks power to issue circulation up to the par value of bonds deposited as security, instead of 90 per cent as now, and reduction of tax from one per cent to one-half of one per cent. Of course all this is in the interest of the banks, not of the people at all. The people, the great, toiling, business I people are of little consideration with t these Republican magnates. Their docI trine is, take care of the rich and let the ( rich take care of the poor.