15023. Walter Joy's Bank (Buffalo, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 15, 1849
Location
Buffalo, New York (42.886, -78.878)

Metadata

Model
gpt-5-mini
Short Digest
71c60c02

Response Measures

None

Description

Multiple newspapers (Nov–Dec 1849 and early 1850) report Walter Joy's Bank of Buffalo suspended payment in mid-November 1849 (one source gives Nov 15) and subsequently closed its doors; circulation was secured by State stocks and redeemed via the Comptroller/agent in New York. The failure appears due to bank-specific insolvency/shortfall (canal toll deposits and a large balance due the State), not a depositor run or rumor.

Events (2)
1. November 15, 1849 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank stopped payment and later closed due to insolvency/shortfall related to canal toll deposits and a large balance due the State; collateral (NY stocks) secured circulation but bank could not continue operations; legal proceedings pending to collect debts owed by the bank to the Canal Fund/State Comptroller were reported afterward.
Newspaper Excerpt
Buffalo, - Nov. 15. Walter Joy's Bank suspended to-day.
Source
newspapers
2. January 7, 1850 Other
Newspaper Excerpt
In the month of November Walter Joy's Bank at Buffalo, suspended payment, and closed its doors. The amount of its circulation was $50,000, which was wholly secured by New York stocks. Arrangements were promptly made to redeem the bills from the stock hypothecated with the comptroller, and they have been paid, without interruption, at the former agency of the bank in this city. The premiums on the stock will yield a surplus of $2,000 to $3,000.
Source
newspapers

Newspaper Articles (7)
1. November 17, 1849 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, November 17, 1849

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COMMERCIAL AND M. For Sales of Stocks. & see Fourth Page FRIDAY. Nov. 16-P.M. The Stock market is heavy to-day without &C. tivity. excepting for Governments, which were wanted at advance. The sales of Fancies were moderate and a: the Second Board everything was heavy. The market for Exchanges has not opened yet, butte supposed that it will at a decline. Sterling is nominal at 9@9 per cent. Francs are 5.25 and duilThe large shipments of Cotton and Tobacco from New Orleans during the next four months n. st keep the supply of bills very large, and keep the rat far below the specie point. In addition to produce the , is also 8 considerable amount of gold dust belonging to American account, which has gone to England from California, and which will supply a quantity of sterling. In Freights there is not much doing, and rates are steady. OF Cotton there is & fair amount of ship. ment at 7-32d, Dead Weight 15a @20s, Flour lasd, Corn sjd, Beef To Havre Id for Cotton The Walter Joy Bank at Baffalo has suspended payment, but its circulation is good, as it is amply 88. eared by State Stocks with the Controller. The notes are still redeemed at the same rate as other State money, by John Thompson, 61 Wall-et. There are also rumors in regard to the Union Bank of Dover.The Pawkatuck Bank in Conn was reported in trouble, but we hear it is only through the indiscretion of the Bank in issuing notes before they had made arrangment with the Suffolk Bank of Boston This is a new inall. tution, and the matter will be erranged in a few days There are rumors about the street of some la e forgeries of paper having been discovered, but the ar. ticulars are kept quiet at present The balance in the Sub-Treasury conti aea to increase. The amount today is $3,916,159; Receipts, $75,090; Payments 52,322. The Asnelot Railroad from the Valley Road to Keene on the Cheshire Road is to be completed within 8 year. This subject. however, will not interfere with the building of the direct River Road from Brattlebor, to Bellows Falls The friends of this webeme have not been inactive during the last few weeks, but have been employed in obtaining subscriptions on the line of road, and obtaining the right of way. Several import ant negotiations in regard to this road are under Way and when closed we shall be able to give the particulars. This road must and will be built, and put New. York In connection with Vermont and New-Hampshire Ira C. Whitehead, W. N. Wood and Benjamin Williamson have been appointed Receivers of the State Bank of Morris. The Morristown Jerseyman intimates that the subject of the failure of the institution will be investigated by the Grand Jury to be empanneled next week. Statement of the Receipts and Exp n es for repaire on the Delaware division of the Pennsy lvania Canel from December 1. 1848. to November 1. 1819.

2. November 28, 1849 Windham County Democrat Brattleboro, VT
Article from Windham County Democrat, November 28, 1849

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A COME OUTER :-Benjamin F. Wallace, Esq, (brother of ex-Governor Wallace,) who edited a Tayfor campaign paper last summer, called the "Rough and Ready Banner," at Marion, Ind., now publishes an address to the public, in which he eschews whiggery, and comes out a democrat! A very sensible thing BANK FAILURE.-The Buffalo Express of Friday says the Walter Joy Bank of that city stopped payment on Thursday, and is to be closed up. The Express advises bill holders to submit to no loss, as the circulation is based upon State stocks and will be redeemed at par. Flour and Grain.-Reducing the wheat to flour, received by the canal at Albany up to the 14th, and there appears an aggregate increase of 20,033 bbls. of flour over the receipts of last year. The receipts of corn have gone up from 2,206,000 bush. to 4,915,000 bush. Mortality among the Californians.-We are inform. ed by a gentleman who was in New Bedford the past week, that of the number who had left that place for California-from eight hundred to one thousand-intelligence had been received of the decease of over fifty.-Hartford Courant. Mr Churchill of Troy writes from California in a very discouraging strain. He says there are 5,000 in San Francisco who do not earn one cent per day, and that the merchants refuse to hire clerks for a longer period than a month, because they know that ere long they can hire any number for the cost of their bare subsistence. At New Market, Baltimore Co., Md., Joseph Eaton was chastising one of his children with great severity, when Andrew Turner interfered to save the child, when he was attacked by Eaton, who cut open his abdomen with a large butcher's knife, inflicting such injury as renders his recovery almost impossible. Eaton is in prison. The Picayune says that an old miser, a planter, died at Attakapas, La., lately, who was worth in money, land and negroes, at least $200,000. He had his coffin made before his death, of rough, unhewn t planks, in which were found after his death, some two or three thousand dollars in gold. Secreted in the ceiling of his house was $45,000 in gold, and in f an iron chest, also, a very large amount in gold and paper. A Tragical Incident.-A European correspondent of the N. Y. Literary World, says that a short time since, a party of Spanish soldiers at Rome, being smitten with the beauty of a Roman wife, and finding all their arts of seduction fail, determined to carry her off. They secretly entered her dwelling at night, cut off her means of retreat, and were about to forcibly abduct the victim, when her husband, to whom she was tenderly attached, to save her honor, plunged a dagger into her heart-thus re-enacting the tragedy of Virginius ! CHOLERA AT TARIFFVILLE-We learn from the Hartford Times that two cases of cholera occurred in Tariffville, Ct., a few days since. The victims were Joseph Beach and Benjamin Ball, the latter dying at Thompsonville where he had gone to give information of Mr Beach's death. SNOW IN VIRGINIA.-Week before last there was a fall of more than two feet of snow in the glades and on the mountains in the western part of Allegany county, Va. The trees not having lost their foliage were, throughout extensive tracts of country, borne down by the weight of the super-incumbent snow, thus blocking up the roads. The people of Worcester have elected the editor of the Spy to go to the Legislature, and elected us to stay at home. That shows very plainly which they can spare best :-Palladium. DREADFUL ACCIDENT IN INDIA.-At an idolatrous festival, held at the top of a high rock, which was attended by an immense concourse of people, a sudden panic occurred, and the multitude from above pressing upon those below, upwards of 400 were suffocated or trodden to death. The Lynn News states that more than three hundred persons have gone to California, from that town. NEW CoUNTERFEIT.-Fives on the new State Bank, Hartford, Con., have appeared in New York. The closing of the New York Canals has been postponed to Dec. 5, as the late freshet has impeded the forwarding of produce and other freight. Threatened Assassination.-Judge Daly of New York has received an anonymous letter saying that there is a conspiracy to assassinate him in consequence of his course towards the Astor Place rioters recently tried before him. The supposed object of the note is to deter Judge Daly from presiding at the trial of some other of the same rioters, which is to take,place in a few days. We trust it will have no such effect,

3. November 29, 1849 Jeffersonian Republican Stroudsburg, East Stroudsburg, Milford, PA
Article from Jeffersonian Republican, November 29, 1849

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Article Text

The Walter Joy Bank at Buffalo has suspended payment, but its circulation is good, as it is amply secured by State Stocks with the Controller.The notes are still redeemed at the same rate as other State money, by John Thompson, 64 Wall st. There are also rumours in regard to the Union Bank of Dover

4. December 26, 1849 The Minnesota Pioneer Saint Paul, MN
Article from The Minnesota Pioneer, December 26, 1849

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MORE Roguery.-Buffalo, - Nov. 15.Walter Joy's Bank suspended to-day.

5. January 7, 1850 The New York Herald New York, NY
Article from The New York Herald, January 7, 1850

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Two individual bankers have given notice of their intention to close up their business, and have returned a portion of their circulation, viz.:-Warren County Bank, Franklin County Bank. Only one bank failure has coeurred during the last year. In the month of November, Waiter Joy's Bank at Buffalo, suspended payment, and closed its doors. The amount of its circulation was $50.000, which was wholly secured by New York stocks. Arrangements were promptly made to redeem the bills from the stock hypotheented with the comptroller, and they have been paid, without interruption, at the former agency of the bank in this city. The premiums on the stock wiil yield a surplus of $2.000 to $3.000. In 1848, the esnal toils collected at Black Rook were depoelted in this bank. The unusual amount of toils received at the Black Rock office in that year. created a larger deposite than the Canal board origi-rally contemplated. The balance due to the State at the time of the failure was $60,000. As early as April last, some apprehensions were felt by the commission-ers of the Canal Fund, as to the safety of the bank, and decisive measures were adopted to obtain farther secu-rity for the payment of the deposite. Collateral secu-rities, which are estimated to be ample, weto assigned to the State, and although some delay will be experi-enced in realizing the funds, no doubt is entertained of the ultimate payment of the whole debt The expenses of the Free Bank Department during the last fiscal scal year, amounted to $12,980 87. for which drafts are made on the several banks according to law. it will be perceived, from the foregoing statements, that there has been a large increase in the business of the department New securities were deposited to the amount of more than two and a half millions; and the actual increase of circulation was $1.186,913. The labors devolved upen this branch of the office, are peculiarly arduous and responsible, as may be inferred from the large amount of new notes prepared and issued: the return of mutilated bills to be examined and destroyed; the exchange and withdrawal of old and the deposites of new securities; the superintendence and collection of principal and interest, and the affairs of the insolvent banks, to which may be added the correspondence and accounts resulting from these various transactions. The clerks employed in this service have labored with an efficiency and fidelity worthy of public acknowiedgment. In view of the importance of the trust confided

6. January 8, 1850 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, January 8, 1850

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Increase of circulation from Dec. 1, 1848, to $1,186,913.00 Dec. 1. 1849 The following new Banking Associations and Individual Bankers have commenced business under the General Bank ing Law. during the year, viz: ASSOCIATIONS Merchants' Exchange Bank New York Broadway Bank. New York Bank of Pawling, Pawling Commercial Bank, of Whitehall, Whitehall Watertown Bank and Loan Company, Watertown. INDIVIDUAL BANKERS-Dutchees County Bank, Amenia, Hartford Bank, Hartford, Washington County Oswego County Bank, Granby: Putnam Valley Bank, Putnam Co. Two individual bankers have given notice of their inteution to close up their business, and have returned a portion of their circulation, viz: Warren County Bank, Franklin County Bank Only one bank failure has occurred during the last year In the month of November Walter Joy's Bank at Buffalo, suspended payment and closed its doors. The amount of the circulation was $50,000. which was wholly secured by New-York stocks Is 1848, the canal tolls collected at Black Rock were deposited in this bank The balance due to the State at the time of the failure was $60,000. As early as April last, some apprehensions were felt by the Commissioners of the Canal Fund as to the safety of the bank. and decisive measures were adopted to obtain further security for the payment of the deposit. Collateral securities which are estimated to be ample were assigned to the State, and although some delay will be experienced in realizing the funds, no doubt is entertained of the altimate payment of the whole debt In view of the importance of the trust confided to the Chief Register, the Controlier has deemed it his duty to increase the salary of that officer to $1,500 per annum. To the Chief Register is confided the custody of nearly tweive millions of productive securities the receipt and transmisaion of money to Sit enormous amount, and daily transac tions of the utmost importance to the banks and the public. The Controller would deem it unwarrantable to commit the afairs of the Department to an agent whose time is of less value than the compensation paid to the present capable incumbent INSURANCE COMPANIES By the act of April 10, 1848. to proviue for the incorporation of insurance companies, the Controller is required, in certain cases, to grant certificates of authority to agents of insurance companies incorporated in other States, to trans act the business of insurance in this State. The Controller finds it exceedingly difficult, under the present law, to as certain the se rency of such foreign companies Cases of fraud Have already occurred under the authority of certifificates greated upon what appeared good evidence of solverry, and the Controller strongly urges a revision of the law STATE PRISONS. The Controller is gratified to state that 8 decided improve ment is perceptible in the management of the Sing Sing Prison. A considerable saving is shown, which is believed to resuit from a judicious economy in expenditures. The amount drawn from the Treasury for the support of this prison, during the last fiscal year. was $28,414 07. showing a large reduction of expenses as compared with some previous years. The whole amount of earnings, during the year, was $58, 668 31, and the entire expenditures $82,725 N including $858 83 paid on old infebredness The statement of the Auburn Prison exhibite an improve ment in its financial condition, and furnishes evidence of & skilful and economical administration It will be seen that the balance on Lind is $10,837 80, and that the earnings for the year exceed the expenditures $6,430 20. The Clinton prison, continues to require heavy ad vances from the Treasury. The disbursements for the last fiscal year, were $11,123 47. of which sum $3,000 was a special appropriation for previous indebtedness. The receipts for earnings during the years, amount to $9,210 97., whilst 960,502 12 has been drawn from the Treasury The Comptroller is advised by the Inspectors, that the prospecial of this prison are improving, and that the amount required for his support will be considerably diminished the coming year. Of the amount advanced in the last fiscal war $22,619 52, was expended in the construction of machipery for the manufacture of iron are by convict labor. and other permanent improvements; and in the payment of old debts reducing the expenses for ordinary support to $37,646 m No farther appropriation is required for build ing purposes, and it is estimated that the amount needed for the ordinary support of the prison, for the next year, will not exceed suspen AUCTION TUTIES The revenue from this source declines last year it was $33,025 16. which is $10,876 09 less than the previous year Freude have occurred, but the law of April 11, 1849 authorlising investigation of the books and accounts of an clinbeers, will check them NEW ARSENAL IN NEW YORK The whole amount paid for the erection of the new building is $73,194 a little more needed $30,000 expected to be realized from the sale of the old Arsenal ground, is wanting but the City Corporation will make it up. ACCOUNTS BETWEEN TREASURY AND CITY AND COUNTY OF NEW YORK City and County of New York owes the Treasury $113, THE 21 on account of State Tax, being the balance of & tax doe from Mutual Insurance Companies of that City That tax has been pronounced illegal but the City will appeal

7. February 3, 1851 The New York Herald New York, NY
Article from The New York Herald, February 3, 1851

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Total the close or the year $1,031,511 71 Of this balance there 18 deposited in banks $817,483 $ 39 Invested in Bank Fund Stock 209,431 33 Due from the General Fund 4,596 99 $1,031,511 CONDITION OF THE CANAL FUND. During the year, the sum of $185,216 72 has been received for that amount of the bank tund stock on hand at the beginning of the year; and the sum ot $72,059 31 has been received in bank fund stock for the debt due from the Watervliet Bank, which closes the account with that bank. The sum of $130,500, invested in Comptroller's bonds at the beginning of the year, has been realized in money. The amount of the loan to the city of Albany, remaining unpaid at the commencement of the year, $30,000 75, has been paid. Of the deposites in banks, $817,483 39, (see Doc. No. 55, annexed) the sum of $656,220 31 18 represented as available, and the sum of $161,263 08, as unavailable, at the close of the fiscal year. The Canal Bank of Lockport has paid the sum, $4,621 18, due from it at the date of the last report. The legal proceedings for the collection of the moneys due from Walter Joy's Bank of Buffalo, are still pending. Confidence is yet entertained that the sum will finally be secured. Judgments have been obtained against the sureties of the Canal Bank of Albany-John K. Paige, Thaddeus Joy and Edward Artcher; but no expectation is entertained that any considerable portion of the debt can be collected from them. No dividend has yet been paid by the receiver from the assets of the bank. The debt of the Lockport Bank, $23,450, though not diminished since the last report, is considered undoubtedly secure. The debt of the Brockport Bank, $3,71550, being a total loss, will not be reported hereafter as constituting any portion of the canal fund. The deposites classed as available are believed to be entirely safe, being with institutions of good standing and credit, and secured by personal ebligations, in which full confidence is placed. REVENUES AND EXPENDITURES OF THE FISCAL YEAR. Statement of the revenues of the State canals, and the expenses of collection, superintendence, and ordinary repairs, during the fiscal year ending the 30th September, 1850. (Art. 7, sec. 1, of the constitution.) RECEIPTS. Tolls $3,390,476 63 2,604 74 Rent of surplus water 93,090 93 Interest of current canal revenue, &c Revenues $3.486,172 30