16211. Erie Bank (Erie, PA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 8, 1850
Location
Erie, Pennsylvania (42.129, -80.085)

Metadata

Model
gpt-5-mini
Short Digest
c582c062686eb1ab

Response Measures

None

Description

Articles indicate Erie Bank had previously suspended, had resumed by Jan 1850 (but weak), was refusing specie and only partially open by Nov 1850, and by 1854 its charter had expired and it was being wound up. No explicit depositor run is described; sequence is suspension(s) leading to permanent closure/liquidation (charter expiration). OCR errors corrected where obvious (e.g., 'resumed' in Art.1).

Events (4)

1. January 8, 1850 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank had previously suspended payments (prior to Jan 1850) and only recently resumed, appearing weakened after suspension.
Newspaper Excerpt
Erie Bank has resumed, but does not seem as well as it did before it suspended
Source
newspapers
2. November 14, 1850 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Refusing specie and operating only briefly each day indicates effective suspension/illiquidity due to the bank's adverse condition.
Newspaper Excerpt
The Erie Bank has been refusing to pay specie on its notes for some time past, unless on small amounts... the Bank keeps up a small show of appearances by keeping their doors open one or two hours per day.
Source
newspapers
3. July 22, 1854 Other
Newspaper Excerpt
The Charter of the Erie Bank, Erie, Pennsylvania, expired some year or more since... large amounts of its bills are still in circulation... would not be if the Bank was honestly winding-up.
Source
newspapers
4. * Other
Newspaper Excerpt
Multiple articles document progressive insolvency and winding up rather than a depositor run or government receivership; no receiver or takeover is mentioned.
Source
newspapers

Newspaper Articles (3)

Article from The New York Herald, January 21, 1850

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Article Text

ERIE, (PA.,) Jan. 8, 1850. Statistics of Erie-An Old Veteran Turned Adrift Railby the Cabinet-The Northeast and Eric road, &c. Seeing you had no correspondent from here, I have picked up a few items, hoping they may valu- interest some of the numerous readers of your able Herald. This place is beautifully situated on the south side of a large bay, capable of holding the whole lake marine three times over, with an average bar depth of 16 to 20 feet of water, except on the the entrance, which has 10 feet at the shoalest at with a population of 10,000, ten churches, blast turplace, woollen factory, two cupulo and one manufactoone three tanneries, and many minor private nace, and some very splendid public and Reed, ries, buildinge-particularly that of Gen. C. M. at a cost steamboat proprietor, estimated superior to the great seventy thousand dollars, and The marof about private residence west of Albany. still stands, any Branch of the United States Bank ble monument of the impoverished thousands governa grand town having its share. The general custom ment -this now owns it, and occupies it as a house. Erie Bank has resumed, but does not seem alThe well as it did before it suspended, that Gen. Reed though, to go as the general impression here is, backs this it. place that Com. Chauncey the selected brave It build was the gallant fleet which, under them ours, on to Perry, met the 10th enemy September, and made 1813. The adjacent Law. the memorable Niagara still slumber in an action; inrence where and they were sunk after the their remains bay, are made from Daniel numerable canes resident of the town, (Capt. and The oldest was employed by Com. Chauncey, fleet, and Dobbins.) commence the building of the first stick ordered 10 did cut, with his own hands, the He is a subactually that went into the fleet. reads it with scriber of timber to your paper, He and afterwards says he was appointed great satisfaction master in the navy, and but ordered was not to in the the Failing of the schooner Ohio, ordered by Com. command having previously been for supplies action, (then Capt.) to proceed to Erie a very hazardPerry the fleet, at that time considered he performed to for important duty, which officer, ous and satisfaction of his commanding after the the perfect safely at Put-in Bay shortly of and arrived He resigned in 1826, in consequence the Lakes, action. force being discontinued on in the rethe naval was appointed Captain with honor and afterwards marine service, where he served who dismissed venue election of Gen. Harrison. by President until the afterwards re-instated Presidential him, but immediately was after taking the the advent of this chair, Polk, where he continued until who dismissed party" let administration, it be to their shame, to office, dismiss who, an him. And officer from a paltry between the old and faithful Taylor himself, stood the frontier; who like General and the inhabitants of Lakes, and savage fee navigator, living, of the of 20,000 and has the lived oldest to see cities where of nothing a population but the hut occupant, of the trapper in opposition to the 20,000 grow and Indian up, were remonstrance then the sole of a large and majority Northeast of his political and Erie opponents. railroad, with which the is Buf- to connect The at the New the York New State York and line Erie railroads, to fale and Erie and is being vigorously pushed done in has been let, which and I understand letting, must (1st be October completion, months from the time of charter. sincerely last.) 18 in order to secure should the they not, it will Phila- be hope they will succeed; New York, as then the have been very disastrous will be to able to do what they 18. "to delphiens for the last twenty years-that as they trying to do back-door of Pennsylvania," the Lake. shut up the the state bordering on shut up term this strip of that if they do not extend They are fully New aware York and Boston along will the souththe their door," iron arms through borders here of and the Lakes, and conern and western Ohio and Michigan roads. transports- thereby neeting with the of the great travel lines and when once depriving them be done OR these in the stock tion which will contractors are paid completion. completed. of the company, The and New may Yorkers retard on its their discount, guard. This Let them should buy put up which the stock would at immediately a small I give am paying cash in for it it, and insure its completion. it will not be confidence it the charter is once circumstances lost, and satisfied obtained under as present favorable one. The road the will out- not advantages as the thousand dollars at much less. cost more and if than done with fifty cash, would two cost tracks, one of side, They have three the rails other making six, to accomodate have escaped both four feet and As this seems these to suggestions eastern roads. 1 have thrown out that chose to interest your you notice, and other matter city presses can do so, knowing your As that themselves in the the interest of our city. The reediness to advocate not pass it by silently. out of New Yorker, [could the road would be entirely consideration a productiveness of when we take into throughout the place the United productiveness to States, question, where of their other natural roads advantages are not half as good.


Article from New-York Daily Tribune, November 29, 1850

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Article Text

cond Board the market was firm and stocks in demand. About 75,000 Government 6's, 1867, were bought at 1161-part for foreign account. Certificates to No 7,200 are now payable at the Mint. In Exchanges there is nothing of importance doing, and rates were nominally as before, 9@93 for Sterling, 5.25@5.20 for Francs. The supply of Bills is good. In Money there is no change to notice. The rates on paper are 1 to 1 ₽ cent. higher within ten days, as the supply is larger than it was from the South. On call the market is abundantly supplied and rates without change. The receipts at the Sub-Treasury are 857 588. Payments, $39,235. Balance, $3,221,169. The Merchants' Bank have declared a half yearly dividend of 5 P cent, payable 2d Dec. Thompson's Bank Note Reporter has the fol lowing letter in relation the Erie Bank: We learn from an authentic source that the Watertown and Rome Railroad, extending from Rome to Cape Vincent on the St Lawrence, opposite the City of Kingston, U. C., is fast progressing to completion. Business on the portion now in operation more than meets the anticipa. tions of the friends and projectors of the Road and what is rather uncommon, the cost of the enterpise promises to come within the estimates, or not materially exceeding them. Such is the opinion of the Directors. The Road, when completed, will be ninety-seven miles in length. The laying of the rail commences at Rome, to be carried on continuously to its Northern terminus. About one-half the estimated cost of the whole work, $625,000, has been paid out. All the right of way, with small executions-grading, bridging, culverts, &c., are in sufficient forwardness to allow the rail to be laid as far as Watertown, seventy-three miles, by the 4th July next and a large amount of work done between Watertown and Cape Vincent, including piers for a bridge across Chaumont Bay. The cars are now running thirty-five miles, and will be forty-two miles in all this month; three locomotives, twen. ty-nine freight and baggage cars, and business for twice the number of cars; dépôt buildings at Rome in a fair state for operations, and turn-table complete; five-ninths, or more than half the rail paid for, and the whole balance contracted, to be delivered in the spring, at £4 17s 6d. A pier for the use of shipping, 500 feet in length, has just been contracted to be built at Cape Vincent the approaching winter, on very reasonable terms. ERIE, PA., Nov. 14, 1850. J. THOMPSON, Esq.-Dear Sir: The Erie Bank has been refusing to pay specie on its notes for some time past, unless on small amounts, of say $10 or $15. The Bank keeps up a small show of appearances by keeping their doors open one or two hours per day. But few of its notes are circulating in this vicinity; however, there must be a lot of it out somewhere. We send you the above, not that we ever lost anything by this Institution, but that the public may be aware. Yours truly. The Pennsylvania Railroad Company gives notice that an adjourned Special Meeting of the Stockholders will be held at the office of the Company, on Monday, December 9th, for the purpose of accepting the supplement to the charter approved 26th April, 1850, and of increasing the capital stock to $10,000,000. The Albany Evening Journal says : The amount received for tells on all the New-York State Ca$171,098 nale during the 3d week in November, is 151,106 10 Same period in 1849 $16,992 Increase in 1850 The aggregate amount received for tolls from the commencement of navigation to 22d November, in$8,198,706 01 clusive, is 18,196,412 50 Same period in 1849 $2,293 5 Increase in 1850 Amount of tolls received on all the New-York State


Article from New-York Daily Tribune, July 24, 1854

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Article Text

Line, has $200,000 gold on freight. The Pittsburgh Copper Company (Cliff) have declared a dividend of $8 P share, payable at the office of J. W. Clark & Co., Boston. The week closes with an abundantly easy Money market or those who have satisfactory securities. Very large amounts, millions in the aggregate, are in the hands of arge lenders unemployed for want of satisfactory borrowers. Many of the leading stock houses will not take ders to buy stocks excepting for cash, which tends materialy to reduce the demand for loans. Meanwhile borrowers for railroad purposes have been almost entirely driven out of the market, leaving a large vacuum which has not been filled by other borrowers, and consequently capital continues to accumulate, and the effect is seen in the reduction of rates of interest. Railroads have for the last year, more than any other cause, sustained the rates of interest in the street. When Erie, or Hudson River, or Illinois Central acceptances were on the market continually at 12@ P cent., but little commercial paper could be placed at better rates. Now capital is withdrawn from this avenue of investment, and first-class paper goes at 86 P cent., with a demand exceeding the supply. Railroad acceptances even of the best class are sold only in small quantities and with great difficulty at 16 P cent. As far as the Money market is concerned, the explosion of Robert Schuyler was an advantage to the street, as it withdrew a borrower who was always ready to take any amount of money without much regard to the rate of interest. There is also a general contraction of engagements going on, and an indisposition to enter into new ones, which must materially assist in the eontinuance of an easy Money market until the lessons of the past month are forgotten and we get a full head of steam on again. The Bank report will probably show a further increase of coin to-morrow. The Sub-Treasury has taken about $600,000 this week more than it has disbursed, while the foreign shipments in the bank week were less than $200,000. These disbursements have been more than made good, probably, by receipts from the Mint, & million, we hear, came over on Thursday or Friday, and the Mexican fund will this week count three millions, while in the previous statement, it having been in bank only four days, it averaged in the statement but two millions. The Ohio and Indiana Railroad will be completed by the 15th of September next, when there will be a continuous railway from New York, via Philadelphia and Pittsburgh, to Fort Wayne in Indiana. The means to complete this road have been secured at home by par ties interested along and near the line. About 25 miles of the Fort Wayne and Chicago Railroad, commencing at Fort Wayne, where it joins the Ohio and Indiana Road, will be completed and in operation by the 1st of November next. Twenty miles further, to Warsaw, will be ready for the rails at an early day next spring, and will be completed as fast as the rails are received from Wales. Iron or the entire line to Chicago (150 miles) has been purchased, and is now in the course of arrival. This road will be completed to Chicago within fourteen months from this date. It may be satisfactory to those interested to know that the management of this read is in excellent hands, and is being constructed with prudence and economy. Since the month of December last the stock subscriptions to the Fort Wayne and Chicago Road have been increased from $1,205,000 to $1,600,000 by parties interested in its completion. Thompson's Bank Note Reporter has the following items: The Country Banks, judging from the movements of currency, are in sound condition, and we do not apprehend any failures at present. Some of the New England Banks hold large amounts of Railroad paper, and some of them lost a good deal by Schuyler, Dwight and Chittenden. The contraction that commenced a year ago, however, will save many of them from breaking. The notes of the Cochituate Bank, Boston, Mass., must be presented to the Receivers before the 1st of August next, in order to share in the dividend. The Charter of the Erie Bank, Erie, Pennsylvania, expired some year or more since. We notice that large amounts of its bills are still in circulation-this would not be if the Bank was honestly winding*up. Land W arrants are scarce and higher Buying Selling. $192 $188 160 acre Warrants 96 94 80 acre W arrants 48 47 40 acre Warrants The transfer books of the Harlem Railroad will not probably be opened until after the stockholders' meeting on the 1st of August. The New-Haven examination has not yet been completed. We do not hear of any new discoveries. There has been an absurd paragraph going the rounds that $500 reward had been offered for the arrest of Robert Schuyler. No reward has been offered, but it is understood that measures have been taken which may lead to the arrest of the criminal. The following is the Report of the Superintendent of the New-York Central Railroad to the Stockholders, as to its business for the fifteen months, which will end on the 31st day of July, inst.: NEW-YORK CENTRAL RAILROAD OFFICE, ALBANY, Saturday, July 22, 1854. To the Stockholders of the New-York Central Railroad Company At a meeting of the Directors of the Company, held this day, the annexed report of the Superintendent, as to its business for the fifteen months, which will end on the 31st day of July, instant, was presented. The classification of the Superintendent's accounts had previously been examined by a committee consisting of Messrs. Richmond, Boody and Wilkinson, who found the same satisfactory. From this statement, it appears that the net earnings of the road, up to the 31st inst., after deducting the first dividend, show a balance of $1,216,367 23, out of which & dividend of four per cent., amounting to $952,024, has accordingly been declared by the Board, payable as hereinafter stated. A circular containing a statement of the affairs of the Company having been submitted to the stockholders on the 31st May last, at the time the option of subscribing for $3,000,000 of the Convertible Bonds of the Company Was offered to them, it is unnecessary to recapitulate the frets it contained. As the stock of the Company was at that time above par, it was thought to be due to the stockbolders to give them this option. Had this not been done. the issue could have been readily disposed of at par at that time. The continued and increasing pressure on the money market, combined with other and most extraordinary causes, has prevented these bonds from being taken. This unlooked for state of things, which no human sagacity could have foreseen, certainly not at the early day at which this issue was resolved upon, has entirely disappointed the Directors in their financial arrangements, and instead of finding themselves in funds for the prosecution of the improvements on the road, has left them no alternative but to loan to the construction account the current income of the Company, after paying its ordinary expenses, in order to meet the engagements arising from the work it had undertaken. The amount thus loaned will be refunded out of the first sales which may hereafter be made of the Convertible Bonds. The accumulations of capital now going on will, it is be lieved, before long, begin to seek an investment, and it is confidently hoped that a sufficient amount of these bonds for this purpose will be disposed of at an early day. As soon as the requisite amount shall have been received from this source or otherwise, the dividend of 4 + cent., declared 86 above-mentioned, will be paid to the persons who are