14961. City Bank (Buffalo, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
*
Location
Buffalo, New York (42.886, -78.878)

Metadata

Model
gpt-5-mini
Short Digest
5d1026fc

Response Measures

None

Description

Articles (1842 and 1846) describe City Bank of Buffalo as insolvent with a receiver (ex-Gov. Marcy) and assets to be realized for creditors. No article describes a depositor run; the bank is in receivership/closed. Exact suspension/receivership dates are not given in the snippets.

Events (2)
1. * Receivership
Newspaper Excerpt
It is worthy of remark that while ex-Gov. Marcy has been receiver of the City Bank of Buffalo, more than two years, without paying its creditors one dollar of their claims. Deducting $50,000 to be realized from the assets of the City Bank of Buffalo, ... making the total loss to that Fund equal to ... . (New York Herald, 1846-08-19). (OCR corrected.) }
Source
newspapers
2. * Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank was insolvent and placed in receivership; assets to be realized to pay creditors.
Newspaper Excerpt
It is worthy of remark that while ex-Gov. Marcy has been receiver of the City Bank of Buffalo, more than two years, without paying its creditors one dollar of their claims.
Source
newspapers

Newspaper Articles (2)
1. February 10, 1842 New-York Tribune New York, NY
Article from New-York Tribune, February 10, 1842

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Article Text

Moderate business doing in Francs, mainly at 5 283; Sterling 8 a 81; Southern bills 7 a 71. Inland bills are rather more plenty. The rates are without material change. We quote- Philadelphia 7; Baltimore 21 a 3; Virginia 81; N. Carolina 5: Mobile 124; New-Orleans 6 a 61; Louisville 9 a 95; Cincinnati 13 y 184: St. Louis 17 a 18. We cannot learn that there are any grounds for the report of the failure of the Bank of Virginia: on the contrary we have seen a letter from a respectable house in Richmond which says" In reply to your inquiries we state that our Banks ARE COoD." Still it is possible that the Bank has fallen into discredit. The notes were at 10 per cent discount in Baltimore on Monday. THREE HUNDRED SHARES TRADESMEN'S BANK WERE SOLD AT AUCTION TO-DAY AT THE FOLLOWING RATES: 12 shares Tradesmen's Bank 110 25 do do 105 10 do do 103 253 do do 102 The Neptune Insurance Company of Baltimore has declared a dividend of nine dollar per share. It is worthy of remark that while ex-Gov. Marcy has been receiver of the City Bank of Buffalo, more than two years, without paying its creditors one dollar of their claims. Mr. R. M. Blatchford, who was appointed receiver of the Commercial Bank in November last, has already declared a dividend of thirty per cent. Ex-Gov. Marcy was appointed by the Chancellor; Mr. Blatchford by the Bank Commissioners. Erce signum. The report made to the Senate of Maryland in relation to specie payments fixes the January 15 next, as the day for resumption; that in the meantime the Banks be allowed to issue small notes redeemable in specie when not presented in sums over $5. The entire Resumption bill has passed the Pennsylvania House of Representatives on second reading, and ordered to be printed. The James River Company have presented a memorial to the Virginia Legislature, asking for a loan of $250,000 of State Stock for the purpose of redeeming the State Stocks in the hands of Messrs. Morrison & Co. of London, pledged with them by Gen. Hamilton, to the amount of $470,000 for loan of $100,000 to the Company. By this Morning's Mail we learn that the Maryland Senate have passed a resolution that they will fix no day earlier than the first of August next for any other than a partial resumption of specie payments.

2. August 19, 1846 The New York Herald New York, NY
Article from The New York Herald, August 19, 1846

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Article Text

Total $3,150.000 86,279 42 2,447,997 41 There is yet to be paid from the Safety Fund $86,000 on account of the Clinton County Bank, with interest at five per cent from 1842, and $74.00 on account of the Bank of Lyons. Deducting $50.000 to be realized from the assets of the City Bank of Buffalo, and from some mortgages received from the Clinton County Bank, it will leave $134.000 to be drawn from the Safety Fund making the total loss to that Fund equal to $2,581, 997 41. A portion of this sum has been paid to the credi tors of insolvent Safety Fund banks. in 6 per cent stock issued under chapter 114 of the laws of 1845, and for the reimbursement of which the future contributions of the Safety Fund are pledged. The payment of the interest and principal of the stock issued and to be issued, will absorb the entire contributions of half of one per cent annually on the capital of all the Safety Fund banks, du ring the continuance of the present charters of those institutions. The cash paid into the treasury by the banks on acaount of the Safety Fund, from 1831 to $1,188,422 76 1845, amounts to 36.363 23 Revenue of fund added to capital $1,224,795 99 Making a total of When eight or ten of the Safety Fund banks had suspended payment of their debts, an act was passed, chap. ter 247 of the laws of 1842, authorizing the banks which did not suspend, to commute for their payments to the Safety Fund for six years in advance, by paying three per cent on the capital, in the bills of the suspended banks, and a rebate of interest was allowed to the contributing bank, from the date of payment to the time when the annual contributions of half of one per cent would be payable. Sixty-four banks availed themselves of the provision for commuting, and paid to the Treasur er $477,609 in the notes of broken banks, on which they were allowed a rebate of $74,186 44. The future contributions to the Safety Fund which were not commuted for, under the act, chapter 247 of the laws of 1842, have been anticipated by the issue of stock for the payment of the debts of the nine banks which failed prior to 1843, as provided for by the act, chapter 114 of the laws of 1845. The Safety Fund, therefore, is used up and mortgaged for liabilities already incurred, and there is no provision which can be made available for the redemption of the notes of Safety Fund banks which may become insolvent hereafter. The original Bank Fund act of 1829, (chapter 94) pro* vided for the payment of all debts of insolvent Safety Fund banks from the Bank Fund: The act of 1842 (chapter 247, sec. 8) provides that the act of 1829 "shall be so amended that wherever the word debts' occurs, the same shall be stricken out, and the words circulating notes' inserted." This releases the Safety Fund from the payment of any of the liabilities of insolvent banks, except those created by the issue of circulating notes. A history of the operation of the laws of 1842, and 1845, and their effect on the Safety Fund, may be seen by reference to the Comptroller's annual reports for 1843, and 1846. The annexed table exhibits the amount of the securities deposited with the Comptroller, by the banks esta. blished under the free banking law, which have suspended, the average per cent and the aggregate amount realized, the circulation at the time of suspension, and the amount of notes now outstanding. It will be be perceived that only in one instance was par realized on the sales of the securities. SUSPENDED FREE BANKS-VALUE OF SECURITIES AND AMOUNT REALIZED-CIRCULATION AT TIME OF SALE AND AMOUNT OUTSTANDING.