15020. Union Bank (Buffalo, NY)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
March 11, 1841
Location
Buffalo, New York (42.886, -78.878)

Metadata

Model
gpt-5-mini
Short Digest
a9933dd2

Response Measures

None

Description

Articles from March–August 1841 report the Union Bank of Buffalo stopped redeeming at Albany and its notes were trading at heavy discount amid a broader Free Bank panic. There is no explicit mention of a depositor run or of permanent closure; suspension of redemption at the Albany redemption point is reported. I classify this as a suspension with likely later resumption (common in these episodes), but reopening is not directly documented in the provided clippings.

Events (2)
1. March 11, 1841 Suspension
Cause
Correspondent
Cause Details
Stopped redeeming at its Albany redemption point amid a broader panic over Free Bank notes and weakened security values held by the Comptroller; inability or refusal to redeem at Albany prompted suspension of redemption there.
Newspaper Excerpt
The Union Bank of Buffalo has also stopped redeeming at Albany.
Source
newspapers
2. August 9, 1841 Other
Newspaper Excerpt
Union Bank, Buffalo ... PROBABLE VALUE ... Union Bank, Buffalo 81% . . . Notes of the U.S. Bank have sold at a depreciation ... The panic in relation to Redback Money, or the notes of our General Local Banks, has not yet subsided.
Source
newspapers

Newspaper Articles (3)
1. March 16, 1841 The Madisonian Washington, DC
Article from The Madisonian, March 16, 1841

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Article Text

New York Correspondence. NEW YORK, March 11, 1841. We are anxiously awaiting the re-opening of our river navigation. The Robert L. Stevens broke through the ice as far up as New Hamburg (74 miles) yesterday. She leaves again at 5 P. M., determined to reach Poughkeepsie at any rate. On Saturday morning at 7, Captain Schultze, of the Napoleon, starts with a full determination to go straight through to Albany. Hon. MINTHORNE TOMPKINS, V. B., has resigned his seat in the State Senate on account of private perplexities. He had over two years yet to serve, having been elected in November, 1839. I presume the seat will be left vacant until next November. The district comprises New York, Richmond, and Kings counties. In our Legislature, a bill has passsed through the Committee of the Whole of the Senate further regulating the business of Banking under our General Law. Each Bank is required to make a detailed annual return of its condition to the Bank Commissioners; or, failing to do so, must be proceeded against as insolvent and wound up. When any Bank is wound up, its must be divided Bank up holders. assets Any voluntarily equitably winding among all its must billleave security with the State for the redemption of share of its circulation as it must two can It such give year's public notice cannot readily before it call with- in. draw such securities and close its business entirely.Any Association embarking in the business of Banking must deposit securities with the State to the amount of $100,000; an individual banker may commence on $50,000.-Such are the main features of the bill, which will almost certainly pass. There is some trouble and a good deal of panic with respect to our Free Banks. The Bank of Western New York at Rochester has stopped redeeming at Albany, as it is required by law to do, (if it does not in this city.) The Albany Evening Journal says its notes in circulation amount to $83,158, against which the Comptroller holds $100,000 Indiana five per cents as security. These could now be sold for not more than $50,000. The Cashier is hard at work to get matters straight again. The Union Bank of Buffalo has also stopped redeeming at Albany. Its circulation is only $46,000, against which the Comptroller holds $44,000 Illinois six per cents and $14,000 New York fives. These must ultimately pay every farthing. The Comptroller will not feel justified in selling these stocks just at present. Gov. SEWARD has been in town for several days, probably on personal business, devolved on him by the untimely death of his brother. He returns very soon to Albany. An Irishman named Henderson was on Tuesday convicted in our Court of Sessions of registering his name illegally in order to vote at the last fall election. He arrived in this country in 1836, and in 1838 he was run through the Marine Court and came out an American citizen, 'A No. 1.' He had no trouble in voting thenceforward, until that terrible Whig Registry Law brought him up all standing. Nothing remarkable in the Money Market. U.S. Bank shares closed at 16 cash, which is an improvement. For the rest, there was very little change, and Produce Markets are dull as ever. HAROLD: Yours,

2. March 16, 1841 The Madisonian Washington, DC
Article from The Madisonian, March 16, 1841

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Article Text

New York Correspondence. NEW YORK, March 13, 1841. The navigation of the Hudson will probably re-open within three days. Yesterday afternoon we had a wet snow-storm, with a little rain at the close, and a furious gale toward morning. The wind blew strong from the South till 9 o'clock, which was very favorable to the breaking up of the firm ice still remaining. This morning the steamboat Utica, Capt. Schultz, left our city fully determined to force her way through to Albany if possible. It is an even chance that she gets through to-morrow. Among her passengers were Gov. SEWARD, Messrs. FILLMORE, MARVIN, and MORGAN of Congress, and Mr. LORD, President of the New York and Erie Railroad Company. So severe was the gale that I presume the Eastern boats did not venture out from either Stonington or Norwich last night; so we have no mail from Boston. The Whigs of CONNECTICUT have re-nominated all their present Members of Congress in the several Districts. So emphatic an expres sion of approbation is seldom afforded, but in this case it was riehly deserved. The Loco-Foco majority in NEW HAMPSHIRE is about as usual. The vote is much lower than that of last fall. The Whigs made no earnest effort. : The panic in relation to Redback Money, or the notes of our General Local Banks, has not : yet subsided. The great mass of those not specially discredited, if located North and West of Albany, are either bought by the Brokers at 3 a 5 per cent discount, or refused altogether. The following are considered decidedly under the weather, viz; Binghampton, Farmers', Seneca Co.; Millers' Clyde; Farmers and Mechanie's, Batavia; Manhatten Exchange; North American; North : U. S. Trading and Banking; and tenth Ward, New York; Staten Island, Port Richmond; Union, Buffalo; and Western New York, Rochester. All these are sold at 30 to 50 per cent discount except tenth Ward, which is held at 10 per cent. As many as twenty others are not bought by the Brokers, but no failure or misconductis alleged against them. The Woolgrowers of this City and Willoughby of Brooklyn have been discontinued, but their notes are redeemed at par. Some damage was done to the shipping in our port by the gale last night, but nothing serious. It is reported, however, that a large ship is ashore on Sandy Hook. We shall hear of further disasters. Money is still tight, but Exchanges are deci$ dedly improving. On Boston, par; Philadelphia, 3 1-2 a 3-4; Baltimore 3 1-2; Richmond 5; Charleston 2 1-2; Savannah 4 a 1-2; Augusta 14 a 15; Mobile 10 1-2 a 11; New Orleans 7 1-2 a 8; Nashville 15; Louisville and Cincinnati 9. Bills on England, 7 a 7 1-2. Stocks are higher to day. U. S. Bank 17. The Revenue collected at our Port in 1839 amounted to $13,964,031 : in 1840 to but $7,557,441. A brilliant prospect ahead ! I The Markets are without change, but there IS I a better feeling, and a strong, steady demand for t cotton to go abroad. e HAROLD. Yours, e

3. August 9, 1841 New-York Tribune New York, NY
Article from New-York Tribune, August 9, 1841

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Article Text

.. Sales at the Stock Exchange. August 64 142 175 do Farmer's Trust 87 275 hares U. S. Bank 7 do Amer Ex Bank b30ds 143 do 871 do 175 do do 25 147 b 3ds do 51 100 do 14 50 do Vicksburg $60dys 64 do 5 do Mohawk RR 100 do 14) 30da 631 100 do do 30ds 143 25 do do 52 25 do Paterson 100 do do 108 b10ds 524 25 do Del & Hud nxt cash 108 160 do do 18 14 do NJR Road 50 do do 108 60ds 21 33 50 do Harlem RR 50 do GO 1081 do do b60d 50 24) 35 do do 108 do 24 00 do do 50 do b10ds 108 do s30ds 50 233 it 100 do do 50 do I. I-RRd 8 25 do N A Trust 30d 521 wk next do 50 do do do 8 25 523 30d do 100 do do 81 100 do 660dx 524 wk .nt 25 do do Sales after the Board. 143 175 do Harlem <60ds 23) 75 do U. S. Bank 141 50 do do Commercial and Money Matters. Saturday. P. M. About 2500 shares of all descriptions of stock were sold to-day, which is larger than the average amount of business for some days. The usual fluctuations were observed. U.S. Bank improved are per cent, Paterson 1, Harlem 1. N. Jersey 1, N. A. Trust 3, Ameriean Exchange Bank Canton fell off 1, Mohawk 1. Farmer's Trust 1, I. Island i. In State Stocks the sales were very limited: 553 $1,000 Indiana Bonds 56 5,000 do do 841 1,500 Water Loan, 1870 Indiana Bonds sold at an advance of 123 per cent. and the Water Loan of 1 per cent. Ezchange.--Foreign.-We quote bills OC London 81a81, and on Paris 5,25a5,271, which is a decline ou both descriptions. The demaad for the Western has not been very large. The rates in domestie are slightly improving. We understand the Great Western carried out about $80,000 in specie. The interest due on the 1st instant on the Illinois Bonds will be paid at the Bank of the United States. A large number of the merchants of Augusta, Georgia, have held a meeting and agreed to receive and pay out no Bank notes but at their specie value, and have pledged themselves to sustain no one for the legislature who is not pledged to repeal the 4 per cent. law. At a public meeting at Columbus, Ohio, it was resolved "that after the 7th inst. no paper should be received as money of lews denomination than one dollar, nor issues of the Bank of Circleville, chartered in 1818, the Bank of Steubenville, West Union, Bank of Cincinnati, Exchange Bank of Cincinnati, Manhattan Miami Exporting Co. and Mad River and Lake Erie Railroad, nor any issues of incorporated towns or turnpike companies, nor any other unauthorised paper. The Philadelphia Inquirer says: "The notes of the U.S. Bank have sold at a depreciation of 25 per cent. This we believe to be a worse condition than has heretofore existed since the suspension of the Bank. The truth is, the Bank is considered by many in almost a hopeless condition, and those who have so long anticipated some improvement, begin to despair. No change in the money market. Good paper can be readily negotiated at from 7 to 9 per cent. per anBUIRD" The Commercial Advertiser contains the following statement of the probable value of the suspended Free Banks. The estimate is furnished by the Comptroller. PROBABLE VALUE.-pr. ct. 86 Cattaraugus Co. Bank-Notes secured by stocks 76 By stocks and real estates 58 Bank of Western New-York 65 Mechanics' Bank. Baffalo 72 Union Bank, Buffalo 81 Bank of Commerce, Buffale 78 Bank of America, Buffalo-Stock notes 75 Stock and real estate 76 Phonix Bank, Buffalo 72 Eric County Bank-Stock notes 50a60 Stock and real estate 86 United States Bank of Buffalo 83 Merchant's Exchange Bank-Stock notes 67 Stock and real estate 73 Binghamton Bank-Stock notes 72 Stock and real estate 98 Bank of Lodi-Stock notes Stock and real estate par The Binghamton Bank, although located nominally at Binghamton, was get up in Wall street.