Atlantic Bank - New York, NY

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: November 20, 1881
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: b479214c

Response Measures

None

Description

Article (dated 1881-11-20) reports Atlantic Bank's entire capital was 'swamped' by its cashier (Taintor) through speculation, 'then the doors were closed' and the cashier was later sentenced. This describes a bank failure/closure due to internal embezzlement/speculation. No run is mentioned in the text.

Events (1)

1. November 20, 1881 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Cashier Taintor speculated in Pacific Mail stock and exhausted the bank's entire capital ($300,000), leading to closure.
Newspaper Excerpt: The entire capital of this institution ($300,000) was swamped by its cashier (Taintor), who was deeply engaged in stock speculation. He dabbled in Pacific Mail till all was gone and then the doors were closed.
Source: newspapers

Newspaper Articles (1)

1. November 20, 1881 The Dallas Daily Herald Dallas, TX

Article from The Dallas Daily Herald, November 20, 1881

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Article Text

# BANKS THAT WERE ROBBED. Wholesale Plunder of Money Institutions by Cashiers, Directors and Burglars-No Punishment-Hundreds of Thousands Gone Beyond Recall The New York correspondent of the Hart- ford Times sends to his paper an interesting account of the many bank swindles and de- falcations which have occurred in this city. After writing of the overdraft which Bald- win, the defaulting cashier of the suspen- ded Mechanics' National Bank of Newark, claims to have granted Nugent, the corres- pondent says: Business men when extremely short use every effort to obtain the privilege of over- draft, which when granted generally leads to ruin. I well remember the instance of Paying Teller MeGutcheon of the Ocean Bank, who yielded to such an appeal and certified a check for a friend. The appeal was continued, and in hope of obtaining the money thus wrongfully lent other fa- vors were granted. At last the amount be- came so large that the teller became the slave of his former friend and was obliged to keep up the accommodation until the in- evitable explosion took place. The bank lost $90,000 and the teller was ruined. The Grocers' Bank was robbed by its pay- ing teller, George Clark. No punishment could be inflicted. The Tradesman's Bank was robbed by one of its clerks of $40,000. The criminal was shattered by dissipation and died in the hospital. The Fourth Na- tional Bank also occupied a place in the list, the loss being about $30,000. The paying tel- ler of the American Exchange Bank wound up his career by robbing the bank of $90,000. The City Bank is one of the best managed of these institutions, its president being Moses Taylor, whose fame as a financier is widely extended. Yet in this admirable concern the heaviest defalcation ever known in this city took place. The cul- prit's name was Leverich. He came of high family, and showed his dignity by the extent of his peculation, which was more than $400,000. It was admitted that noth- ing could be done, and there the matter ended. Paying Teller Ellis, of the Park National Bank, robbed the latter of $61,000 with equal impunity. One instance of a bank clerk's punish- ment for peculation, is found in the case of the Fulton Bank. The note clerk, who was the son of the cashier, spent $60,000 of bank funds. The thief actually got four years in State prison. One of the most curious bank defalcations of the day occurred in the Gallatin National Bank. A leading em- ploye had for a long time used the bank funds for the purchase of "business paper." He was an expert judge of credit, and found the traffic very profitable. One day, how- ever, his account was found short. He at once admitted the fact, and turned out a quantity of "gilt-edged" to balance the discrepancy. The Artisans' Bank was robbed by its di- rectors, and so was the Ocean Bank. The latter had suffered severely from depreda- tions of its paying teller, and was after- wards "cracked" by burglars. It might have survived, but the directors concluded to finish the work, and this they did in a very effectual manner. Their method was to discount loans on fictitious securities, such as paper railroad bonds, and the result was, that in the hands of a receiver, the stock was only worth ten per cent. Such was the history of a bank whose capital was entirely paid in, the amount being a half million. The Grocers' Bank was robbed in the same manner, and the shareholders found themselves the victims of sharp prac- tice on the part of those to whom they had committed their interests. Having referred to a case of punishment among defaulting clerks, I may add to it the sole instance of penalty inflicted on a dishonest cashier. This was found in the Atlantic Bank. The entire capital of this institution ($300,000) was swamped by its cashier (Taintor), who was deeply engaged in stock speculation. He dabbled in Pacific Mail till all was gone and then the doors were closed. The outraged stockholders succeeded in placing the thief under a four years' sentence in the penitentiary. As an additional illustration of the loose method of banking in this city, it may be added that ten savings banks have failed within a few years. The term "failed" is used conven- tionally. The correct statement is that they have been robbed by their officers and three millions of the earnings of the have in this manner been wasted. For this atrocious series of crimes no penalty has been inflicted, nor indeed has any arrest been made.