15157. First National Bank (Hudson, NY)

View Charter #396 on SPMC

Bank Information

Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
396
Charter Number
396
Start Date
March 2, 1867
Location
Hudson, New York (42.253, -73.791)

Metadata

Model
gpt-5-mini
Short Digest
e3b25b24

Response Measures

None

Description

Articles report the First National Bank of Hudson closed its doors March 2, 1867 for examination after discovery of a large cashier defalcation (~$50,000). Comptroller agents were placed in charge for investigation and newspapers state it is expected the bank will pay losses and resume business. No contemporaneous reports of depositor runs are mentioned. Classification: suspension (due to bank-specific embezzlement) with expectation of reopening.

Events (3)
1. April 21, 1864 Chartered
Source
historical_nic
2. March 2, 1867 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed after discovery of large embezzlement/defalcation by the cashier (reported about $50,000); directors closed doors pending full examination and Comptroller agents were placed in charge for investigation.
Newspaper Excerpt
The First National Bank of this city was closed to day for examination of accounts, it being alleged that ... the cashier ... is a defaulter to a large amount.
Source
newspapers
3. March 4, 1867 Other
Newspaper Excerpt
The First National Banks of Newton, Mass., and Hudson, N. Y., have been placed in charge of agents of the Controller of the Currency for investigation. It is expected that the First National Bank of Hudson, N. Y., will pay all its losses and go on.
Source
newspapers

Newspaper Articles (9)
1. March 3, 1867 The New York Herald New York, NY
Article from The New York Herald, March 3, 1867

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BANK TROUBLES, DEFALCATIONS AND ERAUDS. First National Bank of Hudson. N. Y. HUDSON, N. Y., March 2, 1867. The First National Bank of this city was closed to day for examination of accounts, it being alleged that Peter S. Wynkoop, the cashier, is a defaulter to a large amount. The directors of the bank are investigating the matter, and will report the amount of deficiency as soon as ascertained. The cashier makes a clean breast of it, and acknowledges that he has lost heavily by speculations in fancy stocks. The following notice was posted on the doors of the bank to-day:The board of directors of the First National Bank of Hudson are pained to inform the public that owing to known defalcations of the cashier of that institution they are compelled to close its doors until a full examination of its condition can be made. Notwithstand. ing the frank confession of the late cashier it is impossible at this moment, from the absence of proper data, and the state of the cashier's mind, to determine what is the actual amount of the defalcations; but from present appearances they are thought to be such as to imparir only a minor part of the capital. The board have every confidence in assuring depositors that they are amply secured. Bill holders, of course, have nothing to fear. Valuables deposited for safe keeping are believed to be untouched. Every means in the power of the board will be used to relieve depositors from their unfortunate situations. At the earliest mement a statement of the affairs of the bank will be made. J. W. FAIRFIELD, President. An investigation into the affairs of the bank shows as embezzlement of about $50,000. A further examina. tion will doubtless increase the amount. Hasbrouck, the defaulting cashier, was taken into custody this evening at the instance of the president of the bank and lodged in jail. The above bank has a paid in capital of $200,000, and power to increase to half a million. Its notes are no. deemed at the Ninth National Bank of New York city. First National Bank of Newton, Mass. BOSTON, March 2, 1867. There is great trouble in financial circles here. E. Porter Dyer, Jr., the cashier of the First National Bank of Newton, Mass., is short $110,000 The President of the bank gave notice that the cashier came to Boston yesterday at eleven o'clock and has not since been heard of. The paid in capital of the bank is only $150,000, but it has authority to increase its stock to $300,000. It redeems in New York at the National Park Bank. Swindling the Dollar Savings Bank of Pitte. burg, Pa. Relative to the embezzlement of some $15,000 CODEmitted by A. V. H. Elder, general bookkeeper of the Dollar Savings Bank at Pittsburg, the Post of that city has the following:The occasion of the discovery of the fraud was as follows:-A gentleman, whose name we forbear making public, received a small patrimony, amounting to some $700, which he deposited in the Dollar Savings Bank for safe keeping. The sum was correctly entered upon the depositor's bankbook, but upon the credit book in the bank it was set down $200, the bookkeeper pocketing the other $500. In a short time the depositor wished to check for $200, whereupon the teller asked him if he would not have his account balanced. He replied in the negative, stating that he still had some $500 on deposit, when be was requested to leave his book for settlement. This was done. The discrepancy was discovered and suspicion aroused. The directors were informed, other pass books were sent for and accounts settled, in which similar errors were found to exists. A thorough investigation took place, and deficits to the above amount were found. State Bank of Massachusetts-Over Half a Million Dollars Involved. BOSTON, March 2, 1867. There was considerable excitement in State street this morning occasioned by the development of the irregularities in transactions of the cashier of the State Bank in regard to certification of checks as "good" bearing the name of Mellen, Ward & Co., brokers, who suspended payment yesterday. These checks were presented at the Clearing House at the morning settlement by the various banks holding the same and were thrown out by the State Bank, on which certifications were made. The directors of the institution declare that they never entered into, or agreed to any arrangement made with the city banks for the certification of checks, and such action of their cashier was wholly unauthorized by them. The sum involved in these transactions is upwards of half a million dollars. Other parties besides those mentioned are also implicated in these diffculties.

2. March 4, 1867 New-York Tribune New York, NY
Article from New-York Tribune, March 4, 1867

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CRIME. BANK DEFALCATIONS. FIRST NATIONAL BANK OF HUDSON, N.Y BY TELEGRAPH TO THE TRIBUNE. HUDSON N.Y., March 2.-The First National Bank of this city was closed to-day for examination of accounts, it being alleged that Peter S. Wyukoop, the cashier, is a defaulter to a large amount. The directors of the Bank are investigating the matter, and will report the amount of deficiency as soon as ascertained. The cashier makes a clean breast of it, and acknowledges that he has lost heavily by speculations in faney stocks. The following notice was posted on the doors of the Bank to-day: The Board of Directors of the First National Bank of Hudson a: pained to inform the public that owing to known defalcations of the cashier of that institution they are compelled to close its doors until & full examination of its condition can be made. Notwithstanding the frank confession of the late cashier, it is impossible at this moment, from the absence of proper data. and the state of the cashier's mind, to determine what is the actual amount of the defalcations; but from present appearances they are thought to be such as to impair only a minor part of the capital. The Board have every confidence in assuring depositors that they are amply secured Billholders. of course, have nothing to fear. Valuables deposited for safe keeping are believed to be untouched. Every means in the power of the Board will be used to relieve depositors from their unfortunate situation. At the earliest moment a statement of the J. W. FAIRFIELD. President." affairs of the bank will be made. An investigation into the affairs of the bank shows an embezzlement of about $50,000. A further examination will doubtless increase the amount. Hasbrouck, the defaulting cashier. was taken into custody this evening at the instance of the President of the bank, and lodged in jail. The above bank has a paid-in capital of $200,000, and at power to increase to $500,000. Its notes are redeemed the Ninth National Bank of New-York City. STATE BANK OF MASSACHUSETTS. BOSTON, March -The failure of Mellen, Ward & Co. has given rise to various rumors. The whole loss resulting from the suspension of this firm is said to be nearly $1,000,000. The First National Bank of Newtonville, of which Edward Carter, a member of the suspended firm, was a Director, has closed its doors, having, It is reported, suffered to the extent of $200,000; nearly twice the amount of its capital. Mr. Carter was elected President of the Copper Falls Mining Company some weeks ago; since which there have been operations for a 'corner" in the stock, which carried the price up rapidly from 60 to 75. The failure of the firm threw their stock on the market, and, of course, the prospects of a "corner" disappeared, the price tumbling to 29, and 283@30 at the close. The Merchants' Bank holds $625,000 of the certified checks of the State Bank, which were certified as good by Charles H. Smith, the Cashier, and the Second National Bank holds $125,000. There will probably be litigation as to the banks upon which this loss shall fall. Julus F. Hartwell, the Cashier of the Sub-Treasury, who has been concerned in these transactions, has resigned. The Government, however, does not lose a dollar. Mr. Smith, the Cashier of the State bank, has also resigned. BANK DEFALCATION IN BALTIMORE BALTIMORE, March 3.-A heavy defalcation has been discovered in the Mechanics' National Bank of this city. It runs through a period of 27 years, and was discovered finally last week by Government Inspector Callender, and amounts to 8300,000. The persons implicated are: Samuel H. Wentz, general bookkeeper, who has been an officer in the institution 35 years; and John H. Rogers, paying teller, an officer for 25 years. Both were arrested on Saturday, but were released on bail of $10,000 each. This is the third heavy embezzlement which has occurred in the same bank within the period in which this has been going on. Both of the accused are men of family; the former is quite an elderly man and has a large family. The Mechanics' is one of our largest banks, and much excitement prevails in consequence of the affair. The Bank will however be sustained and continue to meet all its liabilities.

3. March 5, 1867 New-York Tribune New York, NY
Article from New-York Tribune, March 5, 1867

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THE BANK DEFALCATIONS. WASHINGTON, March 4.-The First National Banks of Newton, Mass., and Hudson, N. Y., have been placed in charge of agents of the Controller of the Currency for investigation. It is expected that the First National Bank of Hudson, N. Y., will pay all its losses and go on. The Mechanics' National Bank of Bank of Baltimore will not suspend business. The Directors and stockholders are wealthy, and will pay up the amount of defalcation. The defalcation of this bank commenced more than 20 years ago, but had been skillfully covered up and concealed, but was finally brought to light by an official examination, made by an agent of the Controller of the Currency. Mr. Huilburd acts promptly, and will carry out the law to the extent of his powers under the law. FINANCIAL DISTRUST IN BOSTON.) BY TRIEGRAPH TO THE TRIBUNE. BOSTON, March 4.-The Journal of this evening says: There is a general feeling of distrust on the street so far as regards the transactions of brokers and bankers, the recent failure having brought to light such Fross irregularities that even well-established and high-toned houses suffer from the suspicion which is naturally created. The First National Bank of Newton appears to have been completely cleaned out, and many eases of individual suffering are related. It appears probable that one or two other banks, besides those emmierated, have been subjected to loss, and $20,000 was taken out of one individual whose friendship made him an easy dupe. We are happy to hear that there is every prospect that the whole affair will be made the subject of legal investiga tion. THE HUDSON DEFALCATION-CORRECTION HUDSON, N. Y., March 4.-The New-York pape erroneously publish the name of P. 8. Wyukoop am of the defaulting cashier in this city. Justice to A Wynkoop requires that this mistake should be correcte Joseph Hasbrouck is the defaulter, of the First Nation Bank. Mr; Wynkoop has had no connection with thi bank for a long time past.

4. March 5, 1867 Daily Davenport Democrat Davenport, IA
Article from Daily Davenport Democrat, March 5, 1867

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WASHINGTON. W ASHINGTON, March 4.-The First Na. tional Bank of Newton, Mass., and the First National Bank of Hudson, New York, have been placed in charge of the Comptiolier of the Currency for investigation, It is espected that the last named Bank will pay all losses and go on. The Merchants' National Bank of Baltimore will not suspend business. The Directors and stockholders are wealth and will pay up the amount of defalcationIt is not probable tHat any formal sage*will be sent to Congress by the Presio dent. en short a time having elepsed since

5. March 6, 1867 Evening Star Washington, DC
Article from Evening Star, March 6, 1867

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GOVERNMENT SECURITIES. WASHINGTON, March 6, 1867. Jay Cooke & Co fornish the following quotations of Government securities: Buying. Selling. U. S. 6'8 Coupon, 1881 109 110 % U. S. Five Twenties, 1862 109 109 X U. S. Five Twenties. 1864 107 % 107% U. S. Five Twenties. 1865 108 107 % 107 U. S. Five Twentiee, Jan&J'y, '65. 106 x U. S. Ten Forties 97 98 106 TT N. Seven Thirtier, August 105 1/2 U.S. Seven Thirties, June 105 % 105% U. S. Seven Thirties, July 105 x 105% NEW YORK FIRST BOARD SALES. 10.40's Coupons 109% 97% 5.20's. 1862 109 105% 7.30's, August 5.20's, 1864 107% 7.30's, June 105 Y 5.20's, 1865 1071/2 105 7.30's. July Gold 5.20's. Jn &Jy, '65. 106% 135 THE NATIONAL BANK FAILURES - The Comptroller of the Currency has received re. ports from special agents in charge of the First National Bank of Newton, Massach asetts. and the First National Bank of Hudson, New York. which banks were lately com pelled to suspend business. and into the affairs of which the Compireller has ordered 10 vestigations to be made. The information is to the effect the affairs of the banks, and especially of the one at Hudson, are in a much more faverable condition than was a first thought, and it is supposed that the First National Bank of Hudson will, in a short time, pay off its losses and resume business operations. The Mechanics' National Bank of Baltimore, will not suspend business. although the losses are very heavy. The directors and stockhold. ers are wealthy men. and will pay up the amount of the defalcation. The defalcation in this bank commenced more than twenty years ago, but bad been skilfully concealed until brought to light by the official examination of an agent of the Comptroller ot the Currency, who has acted promptly in this matter, and will carry out the provisions of the law to the extent of his ability.

6. March 6, 1867 The New York Herald New York, NY
Article from The New York Herald, March 6, 1867

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Trouble Among the National Banks. The suspension of the First National Bank of Newtop, Mass., and the First National Bank of Hudson, N. Y., as well as the difficulties of the Mechanics' National Bank of Baitimore, and of other national banks, the facts regarding which we have published beretofore, show that with all the privileges these institutions hold, and with all their boasted security, they are not as secure as people imagine. They make enormous profits, it is true, and should be sound enough, but they are no more exempt from rascality and reckless speculation than the veriest wild cat banks that ever existed. Indeed, these institutions being invested with the title of "national banks," the people are more easily deceived and cheated by them. The public is actually misled through Congress having given them a national name and something of a national character. while the governm nt is in no way responsible for them. True, there is a deposit of securities for the redemption of their circulation; but in a great financial crisis and general breaking up of the banks these securities might become so depreciated that a heavy loss would fall either upon the people directly or upon the government. The Comptroller, of the Currency saysi the government would be bound to make up the loss in such a case, though we think that is doubiful. Whether this be so or not the people would suffer either directly or indirectly. In any case, however, the government is not responsible for their business; they may take deposits and ruin their confiding customers as readily as any bogus lottery concern gan, though they are called "national banks." It is time, therefore, that the people should understand the character of these institutions. It is time they should look out and be prepared for a more general smish among the banks when they see one after another breaking up. The whole system is wrong. deceptive and a gross fraud upon the people. The more we look into it the more surprised we are at the stapidity and recklessness of Congress in giving it a legal existence, with such monstrons privilegés and power. The Bank of England, with all its services to the State, never had anything like the privileges the national banks have. We give them the profits on a circulaison of three hundred millions, worth over twenty millions a year, which properly belong to the government, and which the government unight save by simplysubstituting legal tenders for national bank notes. Besides this the government shields them with its credit. What do they give in return for all this? Nothingliterally nothing-not even a safe and stable system of banking On the contrary, they are the leeches that draw in the life blood-the industrial gains-of the whole community. Worse than that, they are both a monstrous monopoly and dangerous political machine. If permitted to continue their existence it will hot be long before they will absorb the wealth and control the deslinies of the repubic. The law creating them should be repealed, when, if they should choose to continue their panking business, they might do so on legal tenlers and under proper regulations, prescribed by Congress. We need not run into a loose or wild system if the present one should be abol-

7. March 8, 1867 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN
Article from Memphis Daily Appeal, March 8, 1867

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Extremely rieh silver bearing ledges have been discovered in Nevada. The receipts of the internal revenue for the last week were $4,561,252. The First national banks of Newton, Mass., and of Hudson, N. Y., are placed in charge of agents of the controller of the currency, for investigation. It is expected the First national bank of Hudson, N. Y., will pay all its losses and go on. The Mechanics' national bank of Baltimore, it is stated, will not suspend business. The directors and stockholders are reported wealthy, and will pay up the amount of the defalcation. The New York bank statement for the week stands as follows :

8. March 13, 1867 Bloomsburg Democrat Bloomsburg, PA
Article from Bloomsburg Democrat, March 13, 1867

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FROM WASHINGTON, Washington, March 4th,1867. THE NEW CONGRESS. Thirty-ninth Congress expired to-day the The the House, Conat o elect for the but roll The twelve of was members immediately clock M. In called, Fortieth names. and all gress four answered to their Colfax three or farce was then enacted for Speakorganization candidate of the Radicals 127 er, The was and, the of course was elected, remainder receiving were votes out 157 cast. S. S. Marshall, of Illinois, given Democratic to Hon. candidate. Before Brooks, the voting of the commenced, Mr. for Speaker York, obtained the floor, and, that in the a New foreible speech, showed parallel brief but session of Congress has no been present history of the country having days af in the within a month and nine it, and convened the passage of the law authorizing no Represeventeen ter in addition to that fact, there States are of the sentatives Union-only from twenty, a bare majority, submitted being In conclusion, he Democratic represented. signed by all the He a protest," against such an organization. journal, members to have it entered upon the could not asked Clerk decided that he Speaker. but entertain the it, pending the election of A CAUCUS. Radical members of the Representa- House will The caucus in the Hall of of nomihold a this evening for the purpose tives candidates for Door-keeper, is Sergeant a great nating and Postmaster There dozens of at-Arms for these positions, and members scramble are busy to-day besieging the canaspirants advocate their claims. Among Radito for Door-keeper, is a defeated Illinois, cal didates candidate for Congress from named Lippincott. DURATION OF THE SESSION. general impression is that few the present weeks The will not last more than a the imsession The intention seems to be to refer Commitquestion to the regular committee peachment the Judiciary, or a special to authorprefers the latter-and the recess -Butler committee to sit during session. of ize Congress said and to report at the next THE PRESIDENT AT THE CAPITOL. Star says: The President, accompa- Colonel The his private Secretaries, Mornied by Colonel Johnson. and Colonel this mornMoore, left the Executive Mansion to the row, about ten o 'clock and proceeded in signing ing where he was engaged and Capitol. the adjournment of Congress, half bills returned until to the White House about past twelve. CRIPPLED NATIONAL BANKS. THE First National Banks New of Newton, York, Massachusetts, The and Hudson, of the been placed in charge of for agents investigahave Comptroller of the Currency that the First National tion. of It is Hudson, expected New York, will pay Na- all Bank and go on. The Mechanics suspend business. its tional losses Bank of Baltimore will not Washington, March 5. NO MESSAGE. Dawes, from the committee President appoint and ed Mr. yesterday to wait on the of the two houses inform him that quorum were ready to receive any assembled be pleased to communication had and he might committee make, had to-day that the the Presiannounced their duty, and that make dent discharged said he had no communication to to Congress at present. THE NEW MEMBERS. a few prominent exceptions, with the the pres- last, With is about on a par so far made for the better, worse, last have ent House been it goes. if In that some were instances possible. but changes in more Con- The for the of the Republican side is out. Judge Hale, of of ablest gress, man seems to be New a gentleman York, deleHis successor ability. The Maryland the last. gation very ordinary is rather an improvement upon RADICAL CAUCUS. Radicals will hold another caueus take into to The night, at the Capitol. to should be morrow the business which sesconsideration by them during the present that the transacted Congress It is believed recess sion questions of of impeachment and of a will be discussed. THE VACANT OFFICES. new nominations will be fill vacancies made by the rejections. The Many President of the Senate Postmaster-Gen to caused by that not less than $2,000,000 are eral states in the hands of clerks of postoffices now destitute of postmasters. ERTY. SUIT FOR RECOV ERY OF CONFISCATED PROPin the Henry B. Tyler, and formerly who, during a Major the war, Marine corps, the Confederate army, commenced has through a served in Brent and Merrick, the posMessrs. John D. Defrees, for suit against west half of Lot 6. in Square session of will the be recollected that the the property war, 445. wa.libelled It by the Court during the life inunder the confiscation act, to the deand, the plaintiff was sold the first terest of This is believed to be and it will suit fendant. of the kind instituted here, be an interesting case. Washington, March 6. CONGRESS. houses adjourned to-day, about half o without ap past of importance. anxious Both business 12 clock, having Members transacted to any restless, and pear to be growing the citv. either by a recess or get away adjournment from The question, the caucus however, this un will probably be settled relative by strength of the advocates evening, when and the opponents of the impeachment scheme will be tested. THE TARIFF BILL friends of the tariff bill are the anxious ComThe it, but in the absence of such action to revive Ways and Means, that mittee of good. It is quite likely until would the whole do no subject will be postponed the next regular session. VOTE FOR CHAPLAIN. The Globe THE of this morning says that Rev.

9. March 16, 1867 Prescott Journal Prescott, WI
Article from Prescott Journal, March 16, 1867

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MISCELLANEOUS. Several streets in Memphis are to be paved with the Nicholson pavement. The Maine legislature adjourned sine die on the 2d. The receipts of Internal Revenue for the week ending the 2d were $4,661,222. The tow boat Columbus, at Hudson, New York, was burned on the 2d, involving a loss of $20,000. The Minnesota legislature failed to pass the brohibitory liquor law. which it had under consideration for some time. A Fenian meeting was held in Albany, N. Y., on Wednesday evening, and & collection taken up as usual. Snow fell in Toledo, on the night of the 6th, to the depth of three inches. On the same night snow fell in Cairo. The levees twelve miles below Mem. phis broke Wednesday night, and the whole country below there is inundated, The levee at Helena, Arkausas, broke on Tuesday night at ten o'clock, washing away the lower part of the town and inundating the whole town. The Minnesota Legislature has passed a bill providing for a sinking fund for the payment of the two and a half million dollars of state railroad bonds of 1857. The Merchants' National Bank of Baltimore will not suspend business. The directors and stockholders are wealthy and will pay up the amounts of defalcation. The First National Bank of Hudson, N. Y., closed its doors on Saturday. Th cause of the failure was the defalcation of the cashier to & large amount. The banking house of Miller, Ward & Co., of Boston, failed on the 2ad. The loss involved in the failure will reach nearly $1,000,000. A heavy defalcation in the Merchants' Bank of Baltimore has been discovered The parties implicated are Wentz, the book-keeper. and Rogers, the paying-teller. The defaication amounts to $300,000. The bill which passed the House Monday morning, appropriating $50,000 additional for the Paris Expositions was not engrossed in time to be presented to the Presieent for his signature.