Farmers Bank of Orleans

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: January 26, 1842
Location: Gaines, New York (43.285, -78.215)

Metadata

Model: gpt-5-mini
Short Digest: 01e29b1a

Response Measures

Full suspension

Other: Article describes coordinated action by brokers/agents to 'club together' and run the bank by paying specie for its notes, 'flooring' and shutting the Farmers' Bank of Orleans at Gaines.

Description

Contemporary report (Buffalo correspondence dated Jan 26, 1842) describes brokers 'commencing a run' which 'shut the bank' and 'succeeded in flooring the Farmers' Bank of Orleans' — an organized attack that led to closure. No evidence in the excerpt of a reopening or receivership date, so classified as run → suspension → closure. Bank type set to 'state' (pre-National Bank era; name suggests state-chartered).

Events (2)

1. January 26, 1842 Run

Cause Details: Coordinated scheme by brokers/agents who purchased paper and ran the bank to 'floor' it (organized attack rather than a simple rumor).
Newspaper Excerpt: they club together, purchasing the paper of some sinking concern in this part of the state, and commencing a run, shut the bank
Source: newspapers

2. January 26, 1842 Suspension

Cause Details: Bank was shut after an organized run engineered by brokers/agents who manipulated and purchased its paper; appears to be closure following the run.
Newspaper Excerpt: commencing a run, shut the bank, and then enriching themselves by purchasing the paper already afloat at a heavy discount, they have succeeded in flooring the Farmers' Bank of Orleans, at Gaines
Source: newspapers

Newspaper Articles (1)

1. February 3, 1842 The New York Herald New York, NY

Article from The New York Herald, February 3, 1842

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Article Text

Buffalo. [Correspondence of the Herald.] BUFFALO, January 26, 1842. British Steamers-How to Break Banks-Steamboat Combination-Theatricals-Fashionable Marriages Herald and Lancet. Dear BENNETT:As was to be expected, the report of the destruction of the British steamers Minos and Toronto, proved untrue; the report having gained ground from the fact that the Canadian authorities received information that a move was contempla. ted in that quarter, a large body of troops was ordered for Grand River for their protection. It would amuse you, were you here, to see how nearly our brokers follow in the footsteps of their illustrious predecessors in Wall street; in fact, they imitate, in all respects, except on a small scale; they purchase all uncurrent money, receiv ing therefor a much greater discount than is charged by the veriest blood sucker in Wall street. Another way they have of raising the wind these hard times, a system of finance outdoing the great Biddle himself, is this: they club together, parchasing the paper of some sinking concern in this part of the state, and commencing a run, shut the bank, and then enriching themselves by purchasing the paper already sfloat at a heavy discount, they have succeeded in "flooring" (as,they term it,) the Farmers' Bank of Orleans, at Gaines; and by the same means, are endeavoring to ruin the Bank of Orleans, a safety fund bank. As yet they meet wi poor success. They employ agents, who visit shops, &c., paying specie for the notes of the bank. The odious steamboat combination is again formed for the coming season, so that the directors will say which boat shall, and which shall not run; all, however, drawing according to the number of shares they are put in at. This combination is odious for several reasons: it imposes ou the publie the old prices, besides throwing out of employ several hundred men, who, if all the boats run, would find employ ment. The fact is, there are too many ats wholly unfit for the lake navigation; the owners seeking this mode to get what they can by laying them up. A man, or set of men, owning a first class boat, and two or three old ones, puts them all in the combination; so that he draws pay for the whole. This can only be remedied by eastern people, who, if they come here and build first class boats, will drive those here to terms, thus securing to the travelling public what is need. ed. There are some elegant boats on these waters, which will always pay. Yet the vast amount of sailing craft will forever check the too rapid build ing of steam vessels, the increase of which must be of the very best kind. Two new boats will be out early in the spring, one at To edo, called the Tolede;" another here; also, timber is getting out for another at Conneaut, o io, to be built under the direction of Capt. H. Whitaker, an old lake navigator, which promises to be something splendid. Not much doing yel; weather very mild; season uncommonly gay; another brilliant Assembly at the American on Wednesday evening last-was well attended; ladies all beautiful Also, a ball at the Theatre on Friday evening; a perfect jam. Several grand parties have taken place-one at Mr. L.'s. on Eagle street; a splendid affair. Another at Mr T.'s, on Washington street; ver gay. One at Mrs. K.'s on Seneca street, in honor of Miss N. from Cleveland, was very rich. Miss N. stood beside the lady of the house, smiling on each now comer, dressed beautifully, d splaying her splen. did figure to the beat advantage; her dark eyes and drooping eye Jashes, in fact, her whole appear. ance, carried al! hearts away, particularly that of a young efficer, who appeared much smitten. She merited well the name given her, the Goddess Minerva Nothing in the matrimonial line. Several com. ing off. One, a young lawyer, report says, isto lead to the altar, the coming year, the beautiful Miss T. of Washington street. Nothing could be better. The Herald" continues its career, and carries all before it. Mr Hawks doing every thing for it; he disposes of large quantities; he also sells the Lancet' The triumph of the prese is appreciated here, I can assure you. We did fear we were to loose the Lancet," but thanks to your Court of Chancery, we are again pleased with the sight of W. it. Farewell.