15192. Canal Bank (Lockport, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
August 5, 1845
Location
Lockport, New York (43.171, -78.690)

Metadata

Model
gpt-5-mini
Short Digest
f35e7316

Response Measures

None

Description

Canal Bank of Lockport suspended payments on June 15, 1846 (directors' resolution). Contemporary examination (special agent appointed Aug 5, 1845) found assets much lower than reported and compromises of large loans; articles describe suspension and subsequent examination/handling by the comptroller, indicating the bank did not simply reopen. No explicit depositors' run is described, so this is classified as suspension leading to closure/receivership.

Events (2)
1. August 5, 1845 Receivership
Newspaper Excerpt
In the case of the Canal Bank of Lockport, Thomas M. Burt, Esq, was appointed special agent, and commenced the examination on the 5th of August, 1845. ... The resources ... were estimated by the special agent at $78,224 96 ... the amount of loans and discounts have been diminished ... caused by compromising with some of the debtors ... and by surrendering $73,700 in stock notes ... Cash payments were suspended at the bank on the morning of the 15th of June, and before its notes were refused at its agency in Albany. Subsequently six or seven thousand dollars of its notes were paid out to depositors, in violation ... 'the failure of the bank.'
Source
newspapers
2. June 15, 1846 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Directors reported the bank 'has become embarrassed'; later examinations revealed diminished loans, large compromises with debtors, and overstated capital and assets indicating insolvency.
Newspaper Excerpt
At a meeting of the directors of the Canal Bank of Lockport, held ... this 15th day of June, 1846 ... Resolved, That this bank suspend payment for the present, and until the farther order of this board. ... Cash payments were suspended at the bank on the morning of the 15th of June
Source
newspapers

Newspaper Articles (3)
1. June 17, 1846 The New York Herald New York, NY
Article from The New York Herald, June 17, 1846

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Article Text

MONEY MARKET. Tuesday, June 16-6 P. M. The stock market was heavy this morning, and prices fell off a fraction. We look upon this as one of those reactions usual upon a rising market. At the first board, Pennsylvania 5's declined 1 per cent; Farmers' Loan, 1: Morris Canal, 1; Canton, 1; Long Island, $, and Norwich and Worcester, 3. Mohawk and Harlem closed at Saturdays prices, and Reading Railroad Bonds advanced 1. At the second board, there was no material alteration in prices compared with those ruling at the first board. The Erie Railroad Company have given notice that the interest will be paid on the new stock according to the terms of subscription, on application at their office on and after the 1st of July proximo. to The Exchange Bank and the Canal Bank of Lockport, have suspended. Their bills are no longer redeemed at the agencies. The bill for chartering the New Haven and Collinsville Railroad, which passed the Connecticut Senate a few days since, received an almost unanimous vote in the House in its favor, and only waits the signature of the Governor to become a law. This bill increases the stock of the company $900,000, providing that $200,000 shall be subscribed before the road is commenced, and $100,000 expended in eighteen months-shares increased to $100 each. We annex a statement of the condition of the several banks of Ohio, taken from the returns of each bank made to the auditor of the State on the first Monday of May, 1846, showing the movement in the leading department of each Independent Bank, of each branch, and of the old banks, with the aggregate. It will be observed that the movement of the old banks exceeds that of the new. BANKS OF OHIO. Mar 1846.

2. June 20, 1846 The New York Herald New York, NY
Article from The New York Herald, June 20, 1846

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Article Text

MONEY MARKET. Friday, June 19-6 P. M. There was a general improvement in prices to-day, without transactions to any great extent. Pennsylvania 5's went up 3 per cent: Reading Railroad Bonds, 1; Farmers' Loan, 3; Morris Canal, Canton, Long Island, 1; Harlem, Norwich and Worcester, Reading Railroad, 3. At the second board prices were firm, with very moderate sales. It is the general impression in that street that there must be within the next thirty or sixty days, a very great speculative movement in stocks, and consequently an advance in prices of fifteen or twenty per cent in some of the fancies. We cannot but coincide with this opinion, as we see nothing in the political or commercial world, likely to prevent very prosperous and very easy times. As soon as things get settled down upon the present basis. and they get once more regulated, we may expect much better times than we have had within the past two years. The officers of the Canal Bank of Lockport, one of the institutions of that place, which has recently stopped payment, have issued the following card to the public:At a meeting of the directors of the Canal Bank of Lockport, held at the banking house in the Village of Lockport, this 15th day of June, 1846, the following preamble and resolution were unanimously adopted :Whereas, from various causes and casualties, this bank has become embarrassed, and whereas, farther efforts to sustain its credit, or meet its engagements, at this time, would, in the opinion of this board, be fruitless, and tend to the prejudice of the creditors of the bank, therefore, Resolved, That this bank suspend payment for the present, and until the farther order of this be ard. A true copy from the minutes O. BALLARD, Assistant Cash'r. The directors confidently believe that the bank has abundant assets to meet all its engagements to the pnblic, if moderate time be allowed; and they hope that the creditors of the bank will make no sacrifices of their claims, but patiently await the result of measures already commenced, to resume business within the time allowed by law, or the speedy winding up of the affairs of the institution. The arrival of the steamship Caledonia at Boston from Liverpool, gives us advices from all parts of Europe five days later than those received by the Great Western. The news both politically and commercial, is highly favorable and interesting. It was anticipated that the reception of the accounts from this side, in relation to our difficulties with Mexico, would have a depressing influence upon the principal money markets of Europe, in consequence of the immense interest the capitalists of England, France and Holland have in Mexico; but when the steamer left, the depression was slowly wearing away. Upon the announcement that the Government of Great Britain contemplated offering its mediation, for the settlement of the difficulties between the United States and Mexico, an improvement was clearly visible, and we have no doubt the advices by the steamer of the 19th inst.--which leaves Liverpool to-day-will be of the most favorable character, in regard to this matter. All negociations for a new Mexican loan had ceased, and a decline in the old bonds had been experienced. The Liverpool cotton market had slightly improved, prices were firm; with an upward tendency, and the 'ales were to some extent to the trade. The improvement is principally attributed to the state of our affairs with Mexico; but we have no doubt that the accounts which from time to time reach Liverpool from this and our Southern markets, in relation to the extent of the crop now coming to the Southern seaport depots, have had a very great effect in sustaining prices and stiffening the market. The fact that the present crop will be at least three hundred and fifty thousand bales less than that of last year, could not possibly have had a contrary effect. All the produce markets of Great Britain were, under exlisting circumstances, in a very encouraging condition, notwithstanding the unsettled state of prices, growing out of the uncertainty which for a time surrounded the corn bill. The slight decline in prices, was, without doubt, caused by the doubt many interested entertained, in relation to the operation of the new bill. We annex a statement exhibiting the condition of the banks of New Orleans, according to reports made to the board of currency, on the 30th ult. BANKS OF NEW OBLEANS.

3. January 4, 1848 The New York Herald New York, NY
Article from The New York Herald, January 4, 1848

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Article Text

the gentlemen who have certified to these burnings, un- less from the naked fact that a fraud has been commit- ted by somebody. "The books show an excers of notes destroyed, of $33 930, being of every denomination except two's, but chietly of the denominations of one, five and ten do- lars." In the case of the Canal Bank of Lockport, Thomas M. Burt, Esq, was appointed special agent, and com- menced the examination on the 5th of August. 1845.- The resources, which were estimated by the bank at $131,765 39, were estimated by the special agent at $78,224 96. The report states that "the amount of loans and discounts have been diminished from $283749 on the first of May, 1846, to the sum of about $89 000.- This large difference has been caused by compromising with some of the debtors to the bank; one of $64 000, another of $12,000; and by surrendering $73.700 in stock notes, so called, which have for several years past been included with the loans and discounts of the bank in its quarterly reports"**"The stock notes were given by G W. Rogers, the cashier of the bank, in December, 1941, when a like amount of stock was issued to him, with the view, as is stated, of disposing of it for cash, and thus increasing the active capital of the bank. A small amount only was thus disposed of, and the resi- due, $73,700, was transferred to the bank in February, 1842, by Mr. Rogers, but his notes given therefor, were not cancelled or withdrawn until after the failure of the bank The capital stock is now stated on the books of the bank at $156,000, instead of $230,000, as here- tofore. "Cash payments were suspended at the bank on the morning of the 15th of June, and before its notes were refused at its agency in Albany. Subsequently six or seven thousand dollars of is notes were paid out to depo- sitors, in violation of the 5th section of the act entitled "An act relating to the redemption of bank notes," passed May 4, 1840," At the time the bank was examined, it had a circula- tion of $138,630, and about $10,000 of its notes in the bank. The securities in the hands of the Comptroller at that time were as follows: Bonds and mortgages,. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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