15292. Bank of Norwalk (Norwalk, OH)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
January 24, 1849
Location
Norwalk, Ohio (41.243, -82.616)

Metadata

Model
gpt-5-mini
Short Digest
738986f13b2f1147

Response Measures

None

Description

Newspaper articles from Jan–Jun 1849 report a severe specie run on the Bank of Norwalk, closure of the bank (closed its doors), and subsequent classification as a broken/failed bank (notes trading at heavy discounts). Evidence supports a run leading to suspension and permanent failure. Dates corrected/derived from publication context (closure reported in Jan 1849).

Events (3)
1. January 24, 1849 Run
Cause
Bank Specific Adverse Info
Cause Details
Sustained heavy specie withdrawals (severe run for specie), prior large payouts (between $100,000 and $200,000) and impaired solvency after charter/organizational changes; persistent depletion of specie reserves.
Measures
Paid out large amounts of coin (reported between one and two hundred thousand dollars) in prior months; attempted continued payment of specie but ultimately closed.
Newspaper Excerpt
The Bank of Norwalk closed its doors on Wednesday last... A very severe run for specie has been kept up during the past summer
Source
newspapers
2. January 24, 1849 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closure followed sustained specie run and weakened financial condition; charter and organizational changes noted as contributing to insolvency concerns.
Newspaper Excerpt
The Bank of Norwalk closed its doors on Wednesday last, between the hours of 10 and 11 o'clock A. M.
Source
newspapers
3. June 14, 1849 Other
Newspaper Excerpt
The bills of the Banks which have broken during the last year are selling as follows: Bank of Norwalk, Ohio, 50 cts; ... Bank of Wooster, Ohio, 20 cts.; ...
Source
newspapers

Newspaper Articles (6)
1. January 6, 1849 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, January 6, 1849

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Article Text

COMMERCIAL AND MONEY MATTERS For sales of Stocks, &c. see Fourth Page FRIDAY, Jan. 5-P.M. The Stock market was heavy to-day, and all descriptions fell off at the First Board. After the session, and at the Second Board, there was a better feeling, and the quotations advanced Treasury Notes recov. ered from 74 to 8. New Haven sold at 944, and Erie at 614. In Sterling there is as yet no movement, and the rates are-Sterling 8j @9. France 5 261@5 25, Guilders 404@404 Rix Dols 78f@79. Marks Banco 35 a 35). There is but little doing to day in Freights Grain is 71@71. Flour 2s 6d nominally. Engagements of Corn, in bags, at 6jd; 500 bales Cotton at 5-32d, Id asked Heavy freight 27s 6d. To Glaegow Cotton was engaged at Id, and to Autwerp. de ₽ lb. A slip from Thompson's Bank Note Reporter announces the failure of the Banks of Sandusky and Nor. walk, Ohio. Apprehensions have been felt for some time that these failures would occur, and the circula. tion has been run in within a short time to the amount of 8275,000. The Sandusky and Norwalk are two of the seven remaining chartered institutions, and their char ters are nearly run out. Their condition in November last W88 as follows:

2. January 26, 1849 The Lancaster Gazette Lancaster, OH
Article from The Lancaster Gazette, January 26, 1849

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Individual Liability Bubble Bursied Again! The Bank of Norwalk closed its doors on Wednesday last, between the hours of 10 and 11 o'clock A. M. A very severe run for specie has been kept up during the past summer, and it was supposed and hoped by the business community that after paying out between one and two hundred thousand dollars of coin, the managers of the bank would have kept it in a solvent condition. This bank under its old organization, was one of the very few banks that paid specie during the monetary crisis of 1838, '39 and '40, and maintained an un. tarnished reputation. But when, under the dominion of Locofoco legislation, the charter become subject to alteration, and Bartley's banking law put the Individual Liability security upon it, the old cap. italists determined to wind up its affairs and step out. This they did, and the Bank, under the direction of new leaders, sailed under the Bartley law, until at last like Manhattan, Wooster, St. Clair, and other individual liability Locofoco Corporations, it has gone to the shades, leaving the bill holders the right to purchase as many law suits as they choose. The Bank of Sandusky. like the Bank of Norwalk, was predicated upon that wonderful method of securing the bill holders, viz: the individual responsibility of tie stockholders. The public have now the satisfactory means of determining the value of this kind of security. The money has circulated freely and extensively, and thousands of our farmers, mechanics and laborers have in their pock ets snug little parcels of from one to ten dollars. How satisfactory it must be to them to know that they have the right to go and look up these stockholders, and commence their suits at law. -Norwaik Reflector.

3. February 24, 1849 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, February 24, 1849

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The bill to restore the charter of the Farmers' Bank of and Mechanics' New-Brunswick has passed the New-Jersey House. Mr. Asa Sprague intends to establish a private bank at Rechester. The notes of the broken Bank of Norwalk are taken at Sandusky, for merchandise, at par. The notes of the Sandusky Bank pass at 75@80 cts on the dollar. The Vermont and Massachusetts Railroad was opened to Brattleboro, 128 miles from Boston, on Tues day last. The length of the road from Fitchburg to Brattleboro, is 10 miles, and It was constructed at a cost of $2,600,000. The agreement which was entered into, three years since, between the Western and Worcester Rail. roads, in regard to the apportionment of the joint busi. ness of the two roads, has been renewed, with some modifications It was feared, at one time, that another appeal would be made to the Legislature to settle the matter, which would have involved considerable trouble and expense to both Companies. The Hudson and Berkshire Railroad Co. have made the annexed report of the position of its affairs nd operations during the past year : $15,321 31 Total receipts for the year 1848 11,209 31 Expenses of repairs and running road $4,112 00 Net earnings Original cost construction, including outfit, & 8575,613 00 Expended on construction during the past year. 232,116 11 $807,729 11 Total cost, Jan 1, 1849 The Bank bill was laid on the table in the Illinois Legislature, by a vote of 36 to 30. At Boston, the Money market has been tightby the call for Specie for New.York and for the of duties. The Banks have ened payment 10@12 curtailed P cent dis counts, and paper in the street sold at Railroad and Manufacturing Stocks were dull. Rail roads were again in market as borrowers. The Annual Report of the Connecticut River Railroad states that it is now completed to the south line of Vermont, 52 miles, at a cost of $1,588,874. The stock amounts to 81,207,870. The receipts of the last year were as follows: For passengers, $88,637; freight, $71,807; mails, express. &c, $4,798-total, $165,242exceeding the receipts of 1847 by $41,290. The expenses have necessarily been swelled by the increase of business. $26,397 have been laid out in building $53,558 have been expended for new cars and engines. These, and other expenses for the year, amount to $78,444. Earnings over expenses, $86,797. After pay. ing interest to the amount of $10,620, and reserving $39,884 for running expenses, two dividends were de. clared of 4 cent each, which absorbed $35,504. The number of passengers carried during the year was 299,865. Number of tons of merchandise, 101,314.Number of bbls of Flour carried from Springfield, 41,173 The Company have 10 engines, which, during the year, have run 147,092 miles. The statement of the collections at the State Bank of Alabama and branches from July 1, 1848, to Jan. 1, 1849, gives the following aggregate : sand $122 836 51

4. June 14, 1849 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, June 14, 1849

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Article Text

The main increase is in local travel, a portion of which is to be ascribed to the opening of the Nashua connection. The freight item has also improved—all of which is evidence of a sound improvement in the condition of the Company. The sale of surplus dépôt lands at Worcester to the Worcester and Boston Road for $58,000 has enabled the Company to pay off a considerable amount of debt. The bills of the Banks which have broken during the last year are selling as follows: Bank of Norwalk, Ohio, 50 cts; Bank of Sandusky, Ohio, 37 cts.; Canal Bank, Albany, 90 cts.; Bank of Wooster, Ohio, 20 cts.; New Hope Delaware Bridge, 20 cts; Atlas Bank, real estate notes, 70 cts. N. Y. stock notes, 95 cts; Erie Bank, Pa. 85 cts.; Hamilton, R. I. 25c. We annex a list of the latest counterfeits, from Thompson's Bank-Note Reporter: Threes, on the Mechanics' Bank, of New-Haven—vignette, three female; Tens, on the Bank of Waterville, N Y—vignette, Declaration of Independence; Tens, on the Camden Bank, N J; Tens on the Tolland County Bank, Conn; Fives, on the Troy City Bank, Threes, on the Camden Bank, N Y; Threes, on the Bank of Westfield, N Y; Tens, on the Claremont Bank, N H; Threes, on the Stamford Bank, Mass; Threes, on the Otego County Bank; Fifties, on the State Bank, Newark; Twenties, on the Cumberland Bank, Md; Fives, on the Troy City Bank; Twenties, on the Stark Bank, East Bennington, Vt; Fives, on the Franklin County Bank, Malone, N Y—altered from Ones, by the pasting operation. Hon. Jas. K. Moorhead has been elected President of the Cincinnati and Louisville Telegraph Co. The Stock market is running upward at Philadelphia as well as here. Almost all descriptions are in speculative demand. The Governor of Connecticut has signed the bill chartering the Hartford County Bank. The Farmers' Bank of Bridgeport has passed both Houses.

5. January 31, 1850 Burlington Hawk-Eye Burlington, IA
Article from Burlington Hawk-Eye, January 31, 1850

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Just as we expected!!! When our Low Water neighbers turned out Financiers, and made a futile effort to run a tilt gainst Clark's paper, and read puerile lectures on currency to their readers, we knew they must render themselves, and the whig party even, in a measure, ridiculous. The aim of the Whig party should be to establish in our State a banking system, with all checks and safeguards necessary to secure entire solvency and proper management. As the experiments heretofore made seem to indicate, all expedients have failed, and the solvency of banks has seemed to be the result of honest and judicious management, and not legislative restriction. If there be any exception, it is in New York. The State Branch system of Ohio never has and never will have the entire confidence of financiers. Whether the banks of that State are good or not, nobody can tell here or there. If any one personally knows the managers he can form an opinion satisfactory to his own mind, but after all, actually knows nothing. And yet the bulk of the currency of Iowa is Ohio paper. How much tter-would be a currency of our own, under our own control? The Keokuk Register published a statement of the condition of the Ohio Banks-as they said-to "head the advocates of Clark's paper !" This statement shows that the immediate liabilities of those banks exceed their immediate means $7,022,131, and that neither the editors at Keokuk nor the people of Ohio know any thing about the actual value of Ohio Bank paper. They show by their statement that their immediate means are not sufficient to meet their liabilities. But say these astute financiers of the Keokuk Register-we took our statement "from the Cincinnati Gazette-the oldest and most influential Whig paper in the State-the editor of which remarks, 'that the Banks of no State in the Union are stronger and more impregnable.' The fact that their immediate liabilities exceed their immediate means seven millions and more, does not prove to be true, what the Gazette says as to the solvency of these banks; but the fact that the oldest Whig paper in Ohio says so, satisfies the financiers of the Regis. ter, that such is the fact. Now weare pretty much of the same opinion-but for a very different reason. We do not think, with the Register, that the statement proves anything, except the inability of the Ohio Banks to pay; but when the editors of the Cincinnati Gazette assure us that we may have confidence in Ohio Banks-we are disposed to contide in the editors of that paper, because we believe they are honest and well informed. So in regard to Clark's paper. Men, as honest and well informed, assure us, and give us confidence. We cannot descend to the slang of the Register. We desire to reason and be met in the same way.If "billingsgate" suits better the appetites of the readers of the Register, we can forgive it. But in justice to Clark & Co., we must copy one remark of the Register, as follows make no objection whatever to the regular business of Clark & Co., in the Exchange and Broker line; that is entirely legitimate, and had they confined their operations to that, no one would have just cause of complaint." So far as we have been able to ascertain, the business of Clark s Co. in this place, has been, wholly confined to the business of buying and selling, of exchange, and to notes of foreign banks. We do not know of a single loan-nor, do we believe one to have been made. It is regretted by business men that their paper cannot be borrowed. And the reason why it cannot, is owing to the fact that it is worth 1 per cent. more at St Louis, than any paper in circulation in Iowa, (except Missouri Bank,) and will therefore return upon them as fast as issued. Is this the case with Ohio paper ? No! It is usually sent here in greatest abundance just before a failure as all know, who remember the rotten concerns-the bank of Cincinnati-bank of Gallipolis-bank of Norwalk-bank of Sandusky-bank of Steubenville-bank of West Union--bank of Wooster--Farmersbank of Canton--Farmers Bank of New Salem--Farmers and Mechanics bank of Chillionthe-Farmers and Mechanics bank of Cinbank of Wooster-Jefferson bank of New Salem, etc., etc., etc. All of which, Ohio newspapers, called gou. until they were broken, and Iowa footed the bill! In conclusion, we recommend the editors of the Register to abandon the wind-mill operation of one Sancho Panza, and to devote their energies to the Rail Road from Dubuque to Keokuk. Which will be built "if they only have time" !!! Gentlemen, you must tarry in Jericho a little longer I I

6. April 16, 1851 The Spirit of Democracy Woodsfield, OH
Article from The Spirit of Democracy, April 16, 1851

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de Bank of Xenia do Bank of Zanesville do Beltnont Bank of St. Clairsville do Columbiana Bank of New Lisbon Commercial Bank of Scioto, Portsmouth Commercial Bank of Lake Erie, Cleveland do Farmers and Mechanics Bank, Steubenville do Franklin Bank of Columbus do Franklin Bank Cincinnati do Mechanics and Traders' Bank, Cincinnati de Muskingum Bank, Putnam BROKEN BANKS. 10 dis Bank of Hamilton 50 die Bank of Norwalk 70 dis Bank of Sandusky 80 dis Bank of Wooster All other banks either broken or fraudulent. COUNTERFEITS ON OHIO BANKS The following is a list or counterfeits on the vent banks of this State. We have deemed it: useless to publish the counterfeits on those banks whose charters have expired, or which have failed. Bank of Massillon-I's vignette steamboat and railroad cars, which is not on the genuine. 10's, new issue; unlike the genuine; vignette steamboat, s'oop and ship undersail City Bank of Cleveland, Cleveland.-3's, the fig ure 3, across the bill is not distinct. Clinton Bank of Columbus-10'saltered from2's easily detected. Commercial Bank of C'incinnati-3's letter A beautifully executed. and likely to deceive the best judges. In the centre of the nate a large figure 3, the medallion part of which, in the genvine. is beautifully wrought, whilst in the counterfeit, it is faint and but partially tormed. No. tice also, that the female upon the left of the bill in the genuine has a string of beads aronnd her neck, the counterfeit has no beads. The genuine notes of the old bank of this name having been mostly all redeemed, it will be best to refuse all notes dated previous to 1845. Dayton Bank letter A. regularly countersigned by the Register. It is half an inch shorter than the genuine The flourish over the letter A" should be the same as over "No." in the counterfeit it is just the reverse-engraving inferior to the genuine Franklin Bank of Zanesville, Zanesville.--3's, letter A; the figure 3 across the bill is very indistinct Lafayette Bank-1's vignette a steam boat; on the left an Indian holding up his right hand. 5's, letter C., badly executed. Cashr's name engraved whale face of the bill lighter than genuine 5's, let. B., vig signers of the Declaration of Independence, most beautifully engraved, and good paper. Gano, Cashier: Carlisle. President. Observe the head of Lafayette; in the genuine there is flourish or hair stroke, which is delicate and nearly touches the marginal border in which the head is encircled, whilst in the counterfeit it is coarse breaks off abruptly, and lacks the 16th of an inch of touching. Notice also the flourish above the word Cashiet which, in the genuine turos up and nearly touches the word Cincinnati whilst in the counterfeit it turns down. 10's. spurious They have for vignette view of the ocean, and an eagle resting upon a shell. 10's letter vignette an eagle standing in a car, wings expanded. The engraving good, but paper bad. The bank has DO such plates. 10' spurious. The vignette is two children seat ed, on the right end a full length portrait of Gen. La Fayette Payable to H. Peachen, Thomas String and other persons, and of different dates. The medallion head, with the word TEN stamped on it is very rough and indistinct. 10'3, letter B. dated January t 1845. W. w Gano, cash., with pale ink, G. Taylor Prest. Paper rather dark general appearance good. 20's, close imitation of genuine;let. B. dated Jan 4, 1844, pay C. Conahan: the toes of the female in the vignette imperfect, and the right hand of the Indian on the left end of the bill imperfect. 100's spurious. The genuine bills have ared back. Ohio Life Insurance and Trust Co. 5's, spuri. ous. Vignette a drove of cattle and a locomo. tive and cars in the distance. Sandusdy City Bank-3's letter A. Description about the same the description of the counter: feit 3's on the Commercial Bank of (Cincinnati. State Bank of Ohio-5's, engraving coarse. The bill contains the red back: and on the back of the genuine it reads State Bank of Ohio; on the counterleit it reads State of Ohio. 3's. 5's and 10's, alt from l's and 2's; hold them up to the light and the alteration can be detected 100's, none higher than 50's issued. 1's, letter D, imitation of genuine, engraving course; apparently lithographed; signatures lithographed; filling and date very pcorly done. 5's, letter B payable at the Union Bank, Massil lon. Paper and engraving course 5's, poorly done. The head of Franklin.on the left end of the bill is badly engraved and the left ayo is omitted 10's, vignette a man on the left and a female on the right; railroad cars in the distance on the left; large X in the centre of the vignette eagle at the bottom. The words State Bank of Ohio' larger than the genuine 10g, general appearance calculated to deceive, but ou examination and comparison with the genuing, will be found crude, and imperfect in detail. The prominent figures in the counterfeitare lacking in expression and careful minute, ness. Faces, hands, implements, &c., in the central vignette, are blurred and indistinct. Portrait of Gen. Harrison on left hand end, ob. scure and undecided; in the genuine the figure is distinctly relieved from the back ground, the coat showing dark in color against it The dog's head on the bottom part, between the signatures, is rough and coarse, and the scrolls containing the words "Mutual Liabily' on eith. side, are faint. and smaller than the genuine. The figure of Minerva on the right side, perhaps one of the best tests of comparison; in the genuine, the spear in the right hand of the figure, touches the letter T in Ten. above; while in the counterfeit it is midway between the letters T. and E: and on the breast-plate face is distinctly seen in the centre. The word Ten, under the figure, is pale and weak in sbad. ing, but dark and plain in the genuine. 1s, various branches: a good imitation. Detest by the star or_areola (on the back) at the end of the bar enclosing the words "State Bank of Ohio;" being set in the centre asquare block, which is not so in genuine Western Reserve bank-10's letter D. (Murray, Draper & Fairman's plate,) badly executed. Date unknown. The wor is Western Reserve Bank on the left, and 'Ohio' on the right margin; on the genuine notes they are the reverse. Signed Zalman Fitch. ono OTHER BANK PAPER. The principal part of the circulation in this see. ion of the State, in addition to Okio paper, is on he banks of Indiana, Kentucky, Western Penn2 ylvania, and Wheeling, Va., which passes.gener.