15422. Bank of West Union (West Union, OH)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
October 14, 1839
Location
West Union, Ohio (38.792, -83.544)

Metadata

Model
gpt-5-mini
Short Digest
07a8406ac027c31b

Response Measures

None

Description

Contemporary Ohio papers (July–August 1841) report the Bank of West Union refusing specie payments and being in a state of suspension; an investigating committee (Aug 1841) found only $1,950 specie versus ~$67,745 notes outstanding and accuses officers of having monopolized loans and dissipated specie. No article describes a successful reopening; earlier (1839) coverage already listed the bank as unsafe. Cause is bank-specific mismanagement/possible fraud, and the bank appears to have failed (remained closed). OCR minor errors corrected (e.g., punctuation, 'Benton humbugs' interpreted as political reference).

Events (3)

1. October 14, 1839 Other
Newspaper Excerpt
The following banks in Ohio are either broken or thought to be in an unsafe condition. Beware of their notes:-Bank of West Union; ...
Source
newspapers
2. July 1, 1841* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank refusing specie payments; officers had allegedly removed or dissipated specie that had previously been reported in vaults; committee later found only $1,950 specie versus large circulation, implying mismanagement/self-dealing by officers.
Newspaper Excerpt
He had been to the Bank, and was told that they could do nothing for him. ... it was given out that the Bank was in a state of suspension
Source
newspapers
3. August 17, 1841 Other
Newspaper Excerpt
The investigation Committee ... published a statement, from which it appears, that $67,745, of the notes of the institution are now in circulation and the specie in the vaults amounts to $1950. ... measures are now being taken to secure an early redemption of its paper. (Committee accuses officers of monopolizing loans.)
Source
newspapers

Newspaper Articles (6)

Article from Morning Herald, October 14, 1839

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been stated that the exchange returned, endorsed by the U.S. Bank in New York, had been paid with damages. Thisis, however, not the case; up to last night they had not been settled. Mr. Wilder is now in Philadelphia endeavoring to make some settlement. In the mean time the bank there is extending its discounts, while its accomplice, the Girard Bank, has been obliged, in consequence of the Governor's manifesto, to redeem the smaH bills they have issued in specie. In these assets of the U. S. Bank may be discovered the germ of the irredeemable policy. Stocks have been falling for the last eight months, and every endeavor has been used to create a rally. The U. S. Bank has used every endeavor, by drawing specie, to place herself in such a position that a general suspension would be consequent upon her taking the lead. In such an event, stocks would rise, and their assets'so far recover their values in an inflated currency, as to enable them to clear themselves. The firm position of New York, is the rock on which they split. Nothing but a suspension of the Bank of England can save the institution from utter insolvency. The banks and regular merchants of New York may rejoice at the destruction of a system which has been the prolific cause of all the disasters and fluctuations which they have encountered in the last five years. The artificial action of the U. States Bank has brought about the anomalous position in which we now are placed. The country is overflowing with produce; trade has been small, and the commercial debt due Europe is not large, and yet the banks cannot find means to pay their debts. This arises from no other cause than the great inflation of paper currency which can no longer be sustained, now bro. ken down by its own weight, and cr shing all those who attempted to support it. All others will go through the crisis unharm ed. The commercial and financial character of New York will remain untainted while she will become the focus of all the foreign and internal trade of the United States. The stock holders of the State Bank of Boston have voted to reduce the capital of the Bank from $1,800.000 to 1,200,000 or 33} per cent. The Bank of Grenada (Miss.) is taking measures to wind up its affairs. All the banks in Newburyport have declared a dividend of three per cent. Gloucester three and a half. The following banks in Ohio are either broken or thought to be in an unsafe condition. Beware of their notes:-Bank of West Union; Farmers and Mechanics Bank of Stubenville; Urbana Banking Company; Bank of Chillicothe; Mechanics and Traders Bank of Cincinnati; Mashattan Bank. It is said that the Branch Banks at Lawrencebarg, Richmond and Madison, Indiana, will be arraigned before the next Legislature for alleged misconduct. Sales at the Stock Exchange. $2,000 Corporation Bonds 964, $1,500 do 96 - 85 shares US Bank 70,25 do 70 b30ds, 75 do 70, 50 do 70 b30ds, 50 do 70, 50 do 0tw-20 do Fulton 111-30 do Dry Dock 681-10 de Atlan 85-25 do Mec Bk Ass 61-20 do Ohie Life & Trust 84-107 do Com 94j, 10 do 941-10 do Am Ex 75-320 do Del & Hud 53, 75 do 524, 300 do 521, à do 52), 50 do 52% 125 do 524 nw. 160 do 53 50 do 53 nw, 25 do 50 nw, 15 do 524, 25 do 52g, 50 do 524, 100 do 52% s10ds-180 do N A Trust 441, 75 do 44 25 do 444 nw, 25 do 44j, 50 do 444, 25 do 45, 70 do 45} s10ds-50 do Vicks 32 nw, 75 do 311-15 do Kentucky 661, 150 do 66, 25 do 66 nw. 25 do 66, 50 do 66 Wed-25 do Illi 60 b60ds -5 do Utica & Schen 1171, 50 do 115 $90ds, 50 do 115 90after 10 ds, 50 do 115 s90after15ds-10 do Canton 28, 20 do 27-5 do Mohawk 50, 10 do 49}, 11 do 50, 50 do 494 s30ds-10 do Patter 50-21 do Bost & Prov 99-2,500 do Ex, Phil 91-100 de Harlem R R 37, 50 de 37 s6ms, 100 do 381, 125 do 38, 50 do 39 b30, 50 do 38, 50 do 373, 150 do 37A, 50 do 37} s30, 150 do 38, 50 do 38 nw, 50 do 38 saw, 100 do 38 saw, 50 do 38,110 de 381-20 do Utica & Syra 105.


Article from Democratic Standard, July 27, 1841

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We are informed that a person went through this place the first of last week on his way from Cincinnati to West Union to procure a change of funds, having about $700 of notes on the Bank of West Union in his possession. He returned the next day with the same funds. He had been to the Bank, and was told that they could do nothing for him. He was a butcher, and had probably dearly earnt the trash that now proved as unavailable as so many rags in his pocket. Now, we would like to know what has become of the $37,347 61 of specie which its officers advertised to be in its vaults on the 31st of December last. We have not heard of their paying more than ten dollars of specie for their notes since that time; but we have frequently heard of their refusals to pay specie; and as it was given out that the Bank was in a state of suspension, comparatively few demands were made upon it. Yet the officers now acknowledge that they have not enough "Benton humbugs" to redeem seven hundred dollars of their ("better currency,") notes! "Statements of the condition" of the Bank were published in October and January; in both of which it was stated that upwards of thirty-seven thousand dollars of specie were in its vaults: and the Bank was represented in other respects to be sound. About the time these statements were published, a large batch of new notes was manufactured and put in circulation. They were sent to Wisconsin and other territories and States by thousands; and it would be difficult to guess to what degree the bank has "expanded;" though, for the benefit the honest note-holders, we could wish it were not beyond its ability to "contract." Quere. Would a branch of Nye's State Bank be any better?


Article from Democratic Standard, August 17, 1841

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Article Text

BANK OF WEST UNION. The investigation Committee appointed by the Bank of West-Union have published a statement, from which it appears, that $67,745, of the notes of the institution are now in circulation and the specie in the vaults amounts to $1950. The capital stock paid in is $80, 000, and Notes and Bills discounted $136,217,93. The committee "take pleasure in presenting the statement to the public" and assure the holders of its notes that the "assets are ample to meet the li. abilities of the Bank," proclaiming at the same time that "measures are now being taken to secure an early redemption of its paper." In this community, West Union Bank Notes have always been in bad repute, from the fact that the the institution was in the hands of a few Brokers in Cincinnati, who used it for the purpose of carrying on their shaving operations. The published report of its condition gave incontestible evidence that those who managed the concern, were its best customers.Take the report of the Bank Commissioners, who made a personal inspection of its affairs on the 28th May 1839, They said the institution had discounted notes to the amount of $134,000, and had a circulation of 180,000,-of this amount three of the officers of the bank had borrowed one hundred and thirty-two thousand dollars and in 1840 four of the offi cers had borrowed one hundred and fifty two thousand dollars and ninety eight cents, in addition, were scattered among twenty one borrowers, in sums under $5000. It will then be seen that the Bank did not aim to accommodate the public,-officers monopolized almost its entire means. The Bank in 1830, exhibited $62,780 in specie to the Commissioners, when they paid it a visit, and reported $10,000 as deposited in Cincinnatti. making an ag gregate of specie at its command of $72, 780, with a circulation of $180,000. In 1840, the Bank Commissioners re f ported the specie an hand at $37,33488 0 and the circulation $125,000. Well the Bank fails in 1841, and the committee appointed to examine its effects S reports the specie on hand at nineteen hundred and fifty dollars, only, and the notes in circulation at $67,745. What has become of the specie reported to be f in the vaults of the Bank a year ago?Whilts other banks have been endeavoring to strengthen themsives and hold on 10 their specie, this institution has parted with thirty-five thousand dollars in coin at a time of general suspension,-denying those who presented her notes for redemp tion at her own counter, beyond a doubt as our other state institutions have done. Let the Committee furnish the public with a detailed account of the assets of the Bank, specifying the particular securities they hold, which will enable them to "redeem" its paper at an "early day" -let them show how they have disposed of $35,000 in specie during the past year When this is done the public will judge whether the combined "attacks of broker" have prostrated the institution, or whether the officers of the bank have not been the principle agents in swindling the pub lic.-Dayton Journal.


Article from The Ohio Democrat, October 6, 1842

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Read the following, You who have been swindled by the bursting of the Cleveland Banks: From the Cleveland Plain Dealer. "Harris of the Cleveland Herald, sa's he is authorized by Standart Griffith & Co., to say that they will carry whigs to the newark Convention, on their line of boats without charging a profil" "We are authorized to say that Standard, Griffith & co now owe the defunct banks of this city FIFTY THOUSAND DOLLARS; and instead of devoting the profits of their businees to party purposes, they had better pay their honest debts. It is by means of a few political cormorants, that these banks are now insolvent, and the honest bill-holdere suffering a ruinous depreciation of their faithless promises to pay. The "Co," of this concern has not yet settled his indebtedness to the bank of Cleveland occasioned by the transportation of that brig to Columbus in the winter of 1840." SUCH IS THE WAY, citizene of Tuscarawas county, these banks and bankers have acted and will act again if you give them them the power. Had it not been for the thousands and tens of thousands expended in the campaign of 1840 by Griswold's Canton Bank, German Bank of Wooster, Stokeley's Bank of Steubenville, Granville, Gallipolis, Urbana, West Union, &c. &c. you and your brother citizens of Ohio, would not have suffered as you have done by the bursting up of these banks. THERE IS NO MISTAKE But that the excitement now got up is the whole and sole result of a combination of bank swindlers, who want to live and roll in luxury, by cheating and defrauding the laboring part of the people out of their hardfearnings. THINK YOU These Bunk Lords would come down from their fine houses and talk to you now, if they had not a design of cheating and swinding, & pressing and extorting from you the proceeds of your labor as they have done before? No, indeed they would not. Did you ever see them after election offering you their hands, or speeking to you on politics! No. THEN BEWARE How you trust them, for they are but creating an exciemout to deceive you, and put you off your guard, while they lay their plans to bring upon you another suspension of specie paymente, and the evils which follow-general burst up of Banks-worthless notes on your hands, Sheriff's writs against you, your property sacrificed, and your family and children turtied naked on the world. BELIEVE IT NOT When the Federal leaders tell you the: the legislature was broken up; our government destroyed; to prevent Gerrymandering! Evidence has been given you clear as noon day hat they determined last winter to resign at the extra etssion, and has prevent the Demo-


Article from The Spirit of Democracy, January 24, 1846

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# FOR GOVERNOR OF OHIO, DAVID TOD, of Trumbull. # THE CONSTITUTIONAL CURRENCY. In our paper of last week, we published the proceedings of the Democratic 8th of January Convention, which put in nomination, as the Democratic candidate for Governor of Ohio, the able advocate of equal rights-DAVID TOD. On the first page of to-day's paper will be found the proceedings of the Democratic Editorial State Convention, for which we bespeak an attentive perusal. The democracy of this county are well aware, that, when the democratic party of Ohio raised the "bank reform" banner, in 1838, they were triumphantly victorious at the ensuing elections. The people were well satisfied, from past experience, that the old villanous banking system needed much reformation, in order to secure them from the almost daily loss of thousands of dollars; a loss resulting as well from the total failure of these rascally shaving shops, as from a partial depreciation in the nominal value of their "promises to pay." In accordance with the views and doctrines, at that time advocated, the democratic members of the General Assembly, at subsequent sessions of the Ohio legislature, passed laws which, it was supposed, would have the effect to make bankers honest men; or, in other words, to prevent the old system of bank swindling of "contractions to-day, and expansions to-morrow"- from ever being again fastened upon the people of this State. Laws were enacted making stockholders liable in their individual capacity for the debts of a bank, in case of failure, as well as other laws equally salutary. When these laws were passed, it was thought that the people would, thereafter, be secured from losses by bank failures, and bank suspensions; and that all banks thereafter chartered would have engrafted in their charters these salutary provisions. But how have the people been disappointed in their hopes and expectations? Would bankers accept of charters with the individual liability clause? No. The determination of the moneyed aristocracy of this State was to grind down the people by enormous taxes, by bank failures, and bank suspensions, until they should be brought to tamely submit to any banking proposition that might be brought forward. The result has been, that by "deception, corruption, and accident," the bank power of the State has once more gained the ascendency in our legislative halls. Immediately, all the salutary measures, demanded by the people, were repealed; and a system of banking enforced upon the people only equalled by the old defunct banks of Gallipolis, West Union, and a host of others. Who does not recollect, and, not only recollect, but, by experience, know the thousands, and we might safely say millions, lost to the people of Ohio, by the explosion of such dens of iniquity as the Bank of Cincinnati, German Bank of Wooster, Bank of Steubenville, Bank of Granville, Bank of Urbana, Bank of Gallipolis, Bank of West Union, Miami Exporting Company, new Bank of Circleville, Lebanon Miami Bank, Bank of Cleveland, Commercial Bank of Lake Erie, Commercial Bank of Scioto, and a long list of others in this State, together with the losses sustained by the failure of the banks of the States of Illinois, Michigan, and others; and we might particularly mention as "last though not least," the Bank of St. Clair, familiarly known as the *Red-dog* bank? Have the people, we ask, forgotten all their losses occasioned by the failure of these institutions? No. They feel that forbearance will soon cease to be a virtue; and will, ere long, speak in tones of thunder to those nabobs of the bank-paper-mills, whose only rule of action seems


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