Middle District Bank - Poughkeepsie, NY

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: May 28, 1829
Location: Poughkeepsie, New York (41.700, -73.921)

Metadata

Model: gpt-5-mini
Short Digest: 2d6e41b9

Response Measures

None

Description

Multiple contemporary newspaper notices (dated late May/early June 1829) report that the Middle District Bank of Poughkeepsie 'suspend[ed] payment' and 'have concluded to close the business of the bank' (circular dated May 28, 1829). The announcements attribute the action to the 'pressure of the times' — interpreted as macroeconomic pressure rather than a discrete rumor or bank-specific scandal. No explicit receiver is named in the provided articles; closure and application of funds to debts are described. OCR errors in the transcriptions were corrected (e.g., 'suspend pay, ment' -> 'suspend payment'; dates normalized).

Events (2)

1. May 28, 1829 Other

Newspaper Excerpt: They can only say at present, that all the funds of the bank shall be strictly and immediately applied to the payment of its debts, and that a Statement of its creditors and resources will be submitted to the public as soon as possible.
Source: newspapers

2. May 28, 1829 Suspension

Cause: Macro News
Cause Details: Directors attribute suspension and closing to 'the pressure of the times' — broad economic conditions affecting the bank rather than a specific rumor or scandal.
Newspaper Excerpt: The Directors of the Middle District Bank have been constrained, by the pressure of the times, to suspend payment, and have concluded to close the business of the bank.
Source: newspapers

Newspaper Articles (4)

1. June 2, 1829 Phenix Gazette Alexandria, VA

Article from Phenix Gazette, June 2, 1829

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THE MIDDLE DISTRICT BANK - Another bank explosion was heard last evening, from Poughkeepsie, The news was this morning officially confirmed, as will be seen from he following circular: Ib "To THE PUBLIC.-The Directors of the Middle District Bank have been constrained, by the pressure of the times, to suspend pay, ment, and have concluded to close the business of the bank. They can only any a: present, that all the funds of the bank shall be strictly and immediately applied to the payment of is debts, and that & Statement of its creditors and resources will be submitted to the public # 5001 as possible. By order of the Board: J W. OAKLEY, Cash's Dated May 28. 1829.

2. June 4, 1829 The Rhode-Island Republican Newport, RI

Article from The Rhode-Island Republican, June 4, 1829

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American Sunday School Union.-This Society held its 5th anniversary at Phila delphia on Tuesday, before a crowded au dience,-Alexander Henry. Esq. in the chair. Gross receipts during the year, in cluding proceeds of books. $76,800. Gross expenditures, $76,146. The publications of various the amounted to ing of the Society, year, descriptions, 887,999, exclu- dursive of 462,000 reward tickets. Making total in five years of 6,800,890. The number of schools belonging to the Union is 5.901; teachers 52,643; scholars 349,202. The whole number of Sunday scholars in this country and Europe, is supposed to be about 1,567,000. Bank Failures.-The board of Directors of the Middle District Bank at Poughkeep notice that the pressure of the is so as to times sie, give great induce them the business to sus their payments and close of bank. The fun of the are to be say they, to P yment of its debts. and a statement of to be made out in a pend the applied. few days. the their institution affairs The Catskill Recorder states that ru more were in circulation unfavorable to the credit of the Catskill Banks, and says that any distrust as to the measures or bility of the bank to sustain its credit, is en tirely without foundation. Mr. Clay at Home.-The Kentucky Commentator says-a grand assemblage and dinner. in honor of Henry Clay, took place at Fowler's Garden, near Lexington on Saturday,16th There were three or four thousand people on the ground, of of whom about 2,400 eat down to dinner R. H. Mahon, a post master, of Tennes in who was sentenced to ten years some time since. see, prisonment, which for purloin the contents of a letter passe ing through his hands, has been pardoned by President Jackson. It is stated that Stephen Girard has loan the State of Pennsylvania $100,000, fo ed the canal fund, that the Mechanics' bank Philadelphia, loaned for the same fund @20,000-the bank of Pennsylvania $100. 000--and the bank of Philadelphia $50,000. The Massachusette Journal of Tuesday. on the of the late at contains subject the following removals communication Boston:- the fol "Late on Saturday evening last lowing gentleman received a laconic notice, that sent to the venerable and Clough on the much similar respected to 27th from of fur- A pril, that they were dismissed service to the Custom House. Arthur Lithgow, a George Mr. Johnson has a dependent on small spector. officer, ther Col. Inspector. wife Johnson, revolutionary him and for eight their In without a cent to I whole family in tears. F. has a of children. daily Fiske, saw large support. children the Inspector-Mr. family also Lewis help Nathan them. wife De and and Thomas Rice, Major Osgood and James Salt Measurers. Major during the blois, and ed way. Gaugers. his country Weighers whole Osgood of Ridg serv the late war and received several severe the wounds, the effects of which he feelato present time. When the Peace establish- with ment went into operation in 1821, he many other brave men, were discharged from the army. He was immediately ap pointed by Mr. Crawford to the station from which he has been discharged-Mr. Crawford observed to him that it gave pleasure to bestow an office on so worthy a man. The above worthy and unfortunate men the have been removed to make room for minions of that violent and vindictive person David Henshaw. Forgery.-We understand, says the N.Y. Advertiser) that an extensive has been committed by & in by the name Parmele, means off of he has succeeded in Mercantile Forgery this which, city, passing by Druggist his own notes, with a forged endorsement of the name of a near relative, for a large mount. The party guilty of this offence has gone off. and no clue is yet found to the route he has taken.

3. June 6, 1829 Daily Richmond Whig Richmond, VA

Article from Daily Richmond Whig, June 6, 1829

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Richmond we SATURDAY MORNING, JUNE 6, 1829. Banks and Bank Failures:- The New York Morning Herald, says:BANK FAILURES.-The board of Directors of the Middle District Bank at Poughkeepsie give notice that the pressure of the times 18 so groat as to induce to and close the them of the suspend bank. their payments business The funds of the institution are to be applied, say they, to the payment of its debts, and a statement of their affairs is to be made out in a few days. A statement from the agents of the New Haven Eagle Bank has appeared in the Connectiont papers. The indebtedness of the bank is about 778,000 dollars, and its effects are about 50,000, besides about 1,200,000 dollars in bad debt, which will :probably never be worth a dollar. The committee say that "the fact that several of the Judges of the Superior Court are interested in the concerns of the bank, had caused some delay in business before the Court," and they were unable to say when the concern will be closed. This is the second Bank failure in New York, in the lapse of a month. It is but just, that they who have caused the wretchedness and failure of 80 many, should in turn experience the evil. Turn and turn about, is fair play. But, a corporation according to Lord Coke. having no soul, it is to be feared, that full retribution does not overtake banks, even when by "the pressure of the times," they are compelled to stop payment. Cromwell told Lord Kimbolton, that it would not be well for England, until there was ne'er a Peer or a Lord in the realin. What the aristocracy is to England, are the banks in our countrypower, separate and apart from the power of the peo. ple. It will not be well for the U. States, until there is never a bank in them. Asample of the feeling and sympathy of banks, is lately furnished in Georgia. The Savannah Mercary, thus speaks of the case: The last Milledgeville papers state, that the Cen tral Bank will commence operations on the 18th of June next. The Statesman saye that notes to the amount of eight hundred thousand dollars has already been received for discount. So there can be no doubt but the institution will soon get rid of its cash. Whether the state as a collective body, or the people individually, will be benefitted by the emission, is another question. Much will depend upon that class of people who are accommodated with loans. But, according to the rules adopted by the Directors for the government of the Bank, the note of a person who has Judgment-debts against him, will be refused, whatever may be the character or credit of the security offered. That is, the person whose property is about to be sold under execution for less than half its value. cannot relieve it by borrowing from this Bank. although he offer the most undoubted security. Consequently, this Bank will not afford any relief ro people in debt. or laboring under embarrassments. But it will rather increase their difficulties. Because it will place in the hands of a few , griping individuals, an extensive fund for the purposes of oppression. The Statesman mentions a circumstance, the facts of which had become public. An individual of Greene county had applied for a loan at the Central Bank, and had already made arrangements with his embarrassed neighbors, to re-loan it 8 out among them, at the rate of 20 1025 per cent.7 And such cases, we have no doubt, will be found to be numerous. To the individual in debt, it will be seen, the Bank can afford no relief. His property must be sold to payhi debts. But it will enable the griping speculator to buy it up, at one quarter or half its value, By giving, therefore, a new impulse to the spirit of 1 speculation and cupidity, it will increase the difficulties of the poorer classes, and place them more p completely in the power of their wealthy neighbors. I The new Treasurer.--The new Treasurer of the U. States our late energetic Councillor of State. h John Campbell, entered upon the discharge of his dutics on the 1st inst. We cannot help thinking how very happy the Councillor must be, and our philanthropy is 60 much gratified in the contemplation, as almost to reconcile us to the extreme impropriety of Clarke's removal, and his appointment. The terrible scratch, and the more terrible convention $ both escaped! three thousand a year! nothing to do but to sign his name eight or ten times a day! the luxuries of the Metropolis all spread out to the watering mouth! and the dear and inestimable privilego of calling upon and looking at the Hero, without lest or molestation Verily, some men are born with silver spoons in their mouths. Councillor Camphell

4. September 22, 1928 Poughkeepsie Eagle-News Poughkeepsie, NY

Article from Poughkeepsie Eagle-News, September 22, 1928

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A HISTORY OF BANKING IN POUGHKEEPSIE How Early Institutions Obtained Charters; An Account of Pioneer Banks and Their Later Development By Edmund Platt) The first general act for the 1h. of the "free" banking act under any reputable group of men with the requisite capital could organize bank. passed by the Legislature of the State of New York 1838 Before that time each bank chartered by special act of the email banks to chartered in the early days, but only one of them is artil in existence under the same name -The Farmers and Manufacturers Bank. The act chartering this bank was passed April 26. 1834. after having been held up in the Legisla of the year before by one vote as the following editorial from the first issue of "The Intelligencer and New regret that we are compelled to announce to the numerous friends of the Farmers and Manufacturers Bank at this place. that the bill to Incorporate that Bank was loast in the Senate on Friday by a single vote. 21 to 22 votes world have been sufficient. We can account for the loss of this bill in no other way than that those who voted against it were for It can hardly be possible that any enlightened member of the Legislature can suppose that the extensive mercantile and manufacturing business carried on in this county. suf. ficient circulating medulm can be furnished by our present banks. with a capital in both of but 100.000 dollars. We hope the bank will not be discouraged by this result. but will persevere until an institution so much wanted is obtained. As this Item shows. It required a dwo-thirds vote at that time to pass bank charer bill, and only seven votes were necessary to beat It in the State Senate. The two banks in existence at that time were the Dutchess County Bank chartered in 1825. and the 1830. The Poughkeepsie Bank was merged with the City Bank (estab. dished 1860) to form the Poughkeepsie Trust Company: which through this succession may fairly be called the oldest bank in the city, though not now under the orige. inal name. The Merchants Bank was organized to succeed the Dutchese County Bank in 1845 but le not the same institution. The Dutchess County Bank became involved in the speculations of the Improve ment Party, which did so much to build up the village in the 1830's early and was voluntary liquidation the expira of It paid all note holders and full about 30 per to The Merchants Bank not only took father of Walter Fon many The Farliest Banks The first incorporated bank in Bank of the Company keepsie branch of the Bank Manhattan Company of New the York. It had President of own but there to be no dence of local directors. No record showing just when has been found It established or when went but here out of when the Middle District Bank began and Its business may have been sold to the Middle Dis. trict Bank It was assessed on vari as late but ous was certainly not In active business The Bank of the Manhattan one the leading company in New York today and some of the facts of early historynotably the trick by which Aaron Burr and his friends obtained the charter from the Legislature as water well known but its present officers appear to have no records of its branches. one of which was in In all prob ability it had more than these two branches. for the records of one of the oldest Albany banks show that efforts were made the Bank the Marihattan Company to take over and operate it as branch The Middle District Bank was or ganized to operate in what was then called the middle senatorial district and its charter provided for branch In Kingston and for the election of Ulster County represent atives on the board of directors It continued in business on the north side of Main Street until Its failure on May 28. 1829. The Kingston branch was duly opened and was the first incorporated bank in that place. This was the only bank fail ure that ever occurred in Pough keepsie. and the records seem show that note holders and depost tors were paid almost in full The old time banks all issued notes borrowers generally took their funds in notes or cash Instead of obtaining deposit credit on the books of the bank. and drawing checks Country banks issued all the notes they could keep out and their deposits were comparatively small. At the time of its failure the Middle District Bank had de posits of $21,886 in Poughkeepsie and $10.106 in Kingston. with notes circulation amounting to $140. Evidently there run on this bank before for Senate committee had reported in January at and notes deposits $45,288 There was no organized system of state examination and local com. citizens to examine the bank failure. The taken at par for time after the committee made its report but after went down to and probably 75 cents the dollar The Middle District Bank and the Just after the passage by the Legis of the Safety Fund Act. but of course not under its pro visions This Act the first system of bank examinations and provided that each bank should contribute to fund which in care of failure was to be used to pay note holders and depositors It did not apply to banks in exist and not originally intended to guarantee deposits but effort to make sure that the notes of the banks that came under Its provisions would always be taken at par and regarded as safe In this the Act was completely suc. cessful until the Commissioners ruled that the fund could be used to pay depositors well as note holders. when some large failures notably in Buffalo. partially broke It down few years after the Panic of 1837. The Poughkeepsie Bank was the first organized under the Safety Fund here. but the Dutchess County Bank came under the 8ye tem in 1836 when Its charter was amended increasing its capital. The Merchants Bank (1845) was the first Poug bank organ. ized under the Banking Act of and followed by the The Act of 1838 provided for bond secured and furnished the model for the National Banking Act passed in 1863 The City Bank the last State Bank organized before the of the National Banking Act under which all banks, cept the Savings Bank nation name Indicates. was first bank in organized under the National Banking Act. but was the last bank organized in the city The older banks did not tionalize until the National Banking Act had been revised in 1865. per mitting them to retain their of: names with the word "National added There have been various propo sals for bank mergers in Pough keepsie. but the only merger which has ever taken place was the ger of the Poughkeepsie Bank and th City Bank in 1901 to form th Poughkeepsie Trust Company. This reduced the number of commercial banks from six to five as at present The Trust Company in the only bank in the city doing business under state charter and the only bank organized under state charter since the Civil War and the passage of the Nation al Banking Act. therefore has always been reckoned National bank is true also of most of the river towns The Vassar Bank or ganized under state charter La out side the city limits. but some future may take it in Bank and It also of the oldest It has about of deposits. in spite of the fact that the law has always limited the amount that can be deposited on Interest by any one person This limit $3.000 down to the spring of 1920 when it was ralsed to $5,000 and in April 1926 to the present limit of $7,500 Its large deposits do not. therefore. Include any large sums from or wealthy but represent the ac cumulated savings in email sums almost as many people as the total population of the city The Savings Bank was chartered April 16, 1831. but was not opened for business until May 4th. The following notice. from The Intelligencer and Republican April 24. 1833, indicates that an amendment to the original charter was deemed necessary: Poughkeepsie Savings An amendment to the charter of this Institution having been obtained It is now organized and the persons compose the of agers: sar. Tunis Van Kleeck Thomas W The Bank be opened for the reception of deposits on Saturday the day of May from M at the of A HENRY A. LIVINGSTON A. RAYMOND Treasurer As this indicates the Bank was only first from four eight dently at first not open day in week Colonel Henry Living ston. the first president lived in the old Livingaton house where the horse shoe now located and member of old Colon. ial family which supplied many able men both in and in state and national affairs few the Savings Bank occupied the Middle District Bank build ing on Main Street, but in 1853 was moved to the present site in Market street.