16935. First National Bank (Saratoga, NY)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: national
Start Date: December 13, 1878
Location: Saratoga, New York (43.067, -73.617)

Metadata

Model: gpt-5-mini
Short Digest: 71039fa6

Response Measures

Full suspension, Books examined

Other: Directors sent for external funds (telegrams) which they returned and then stopped business; receivers appointed by Comptroller/receiver in charge for Commercial Bank.

Description

Depositors ran on the First National Bank in early December 1878 after the publicized defalcation of County Treasurer James H. Wright and reports of losses; directors stopped business after paying out large withdrawals and asked the Comptroller of the Currency to appoint a receiver. Contemporary reports describe the bank as hopelessly insolvent and a receiver was requested/appointed, consistent with a run leading to suspension and closure. OCR variants in articles corrected (e.g., defalcation, suspend).

Events (3)

1. December 13, 1878 Run

Cause: Bank Specific Adverse Info
Cause Details: Public disclosure of the suspension and defalcation of County Treasurer James H. Wright led to reports of losses and complications involving banks; heavy withdrawals ensued.
Measures: Directors examined assets, sent telegrams for funds, returned incoming funds and decided to stop business (suspend payments).
Newspaper Excerpt: A run began on the First National Bank ... $50,000 had been drawn out.
Source: newspapers

2. December 13, 1878 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Directors suspended business after large withdrawals and determination that overdue paper and losses (linked to Wright defalcation and insiders' bad discounts) rendered the bank insolvent or unable to continue operations.
Newspaper Excerpt: the directors concluded to return them and stop business. It is possible the bank may now go into liquidation.
Source: newspapers

3. December 15, 1878 Receivership

Newspaper Excerpt: The directors of the First National Bank have requested the Comptroller of the Currency to appoint receiver.
Source: newspapers

Newspaper Articles (12)

1. December 13, 1878 Evening Star Washington, DC

Article from Evening Star, December 13, 1878

Click image to open full size in new tab

Article Text

Defalcation of a County Treasurer and Consequent Run on Banks. SARATOGA. N. Y.. Dec. 3.-The suspension and defaleation of Jame H. Wright, county treasurer, was made public last Monday. There have been serious reports of loss on the part or the banks and others growing out of complications with Mr. Wright as his bondsmen and endorsers. A run began on the First National Bank on Friday, and continued until $50,000 had been drawn out. After an examination of the assets by the directors, they decided them more than sufficient to meet all liabilities and leave a surplus. Telegrams were sent and funds came this morning in response thereto, bat as the excitement was increasing the directors concluded to return them and stop basiness. It is possible the bank may now go into liquidation. The shrinkage in the value or real estate hereduring the past five years has left a proportion of overdue paper, which has rendered this course advisable, A run began on the Commerclal Bank as soon as the First Nath II il stopped, and now that has also stopped.

2. December 14, 1878 New-York Tribune New York, NY

Article from New-York Tribune, December 14, 1878

Click image to open full size in new tab

Article Text

TWO BANK SUSPENSIONS AT SARATOGA. SARATOGA, N.Y., Dec. 13. -The defalcation of James H. Wright, County Treasurer, was made public last Monday. There have been various reports of losses on the part of the banks. and others, growing out of complication with Mr. Wright. A run began on the First National Bank on Tuesday by the depositors, who drew out $10,000. On Wednesday they drew out $40,000 more. It was decided that the assets of the bank were more than sufficient to meet all liabilities. Telegrams were sent out and funds came this morning in response thereto, but, as the excirement was increasing, the directors concluded to return the funds and stop business. It 18 possible the bank may nov go into liquidation. The B rinkage in the value of real estate be Le during the past five years has left n proportion of overdue paper, which has rendered this course advisable. A run began on the Commercial Bank as soon as the First National stopped, and now that has also sropped.

3. December 14, 1878 The Sun New York, NY

Click image to open full size in new tab

Article Text

e GREAT PANIC IN SARATOGA. DISASTERS FOLLOWING THE COUNTR TREASURER'S DEF ALCATION. The Last Two Banks: the Town Doors-One of Them Believed to be Hope. lessly Insolvent-Business at a Standstill. SARATOGA, Dec. 13 A perfect panic prevails here. The suspension and defalcation of James H. Wright, County Treasurer, was made public last Monday. Since then there have been various reports of losses on the part of the banks and others growing out of the complications with Mr. Wright as his bondsmen and endorsers. which have led to disastrous consequences. The run which was begun on the First National Bank on Tuesday resulted to-day in the closing of that bank. When the fact became known depositors swarmed into the Commercial National Bank, and the officers. knowing that they could not stand the drain. decided to suspond. The banks had a capital of $100,000 each, divided into 1,000 shares of $100 each. The First National Bank was generally considered sound. its stock selling at $120. The institution. however, is hopelessly insolvent, the directors admitting that the capital stock will be used up in making good the deficiency. The appointment of a receiver has been asked for. The Commercial Bank has not been considered extra strong since the Congress Hall failure, by which it lost $60,000. The officers claim that the bank is solvent and can resume if the people will attempt to restore confidence. The general opinion prevails. however, that the bank must go to the wall. Business is at a standstill, all of the merchants having deposits in one or the other of the banks. They are unable to purchase drafts or exchanges. and have no funds to meet maturing obligations. The town and village authorities are in a sad predicament. The Receiver of Taxes is required by law to make a deposit every twenty four hours. and consequently all the funds exceeding aretied up. There is not a banking institution left. every one of the four banks having closed in a little over a year. It is generally believed that the failures will cause several of the leading citizens to suecumb. Startling developments are promised. It is said that one of the directors of the Commereial Bank recently confo ssed judgement in favor of his wife for several thousand dollars. The most suspicious circumstance connected with the failure was the filing to-day of a bill of sale and chattel mortgages. amounting to $20,000. by Jacob H. Farrington and John S. Leake, directors of the First National Bank, in favor of John L. Barber, the First National Bank. Isane H. Farrington, Luteretia E. Farrington. and others. These instruments were dated Dec. 9 and 10. It is rumored that others of the directors have put their property out of their hands, and it is feared that there is good ground for the rumor. Ex-Congressman Marvin is President of the First National Bank, and will sustain a heavy loss. The receiver of the broken Union Savings Bank was to have sold a lot of securities to-morrow. but, as the funds of persons who could purchase them are tied up. the sale was postponed. Theamount due depositors in the Commercial Bank. at the closing of the bank to-day. was $163,305.68. to meet which there was a cash balance on hand of $19,196.18. At the First National Bank the amount due depositors is $145,640.34. and the cash on hand $6,843.07. The First National has paid out $68,000 since Tuesday, and the Commercial $31,000. The bank officials attribute the failures to the great shrinkage of values since 1873. There is reason to fear that some of the directors have been the best onsto;ners of the banks.

4. December 14, 1878 The New York Herald New York, NY

Article from The New York Herald, December 14, 1878

Click image to open full size in new tab

Article Text

MORE CRIPPLED BANKS. SARATOGA, N. Y., Dec. 13, 1878. The suspension and defalcation of James H. Wright, County Treasurer, was made public last Monday. There have been various reports of loss on the part of the banks and others growing out of complications with Mr. Wright as his bondsmen and indorsers. A run began on the First National Bank on Tuesday and $10,000 were drawn out. On Wednesday it continued until altogether $50,000 had been drawn out. In the meantime Cashier Leake sent for his brother, for many years cashier of a bank in Troy, and had him make n thorough examination of the assets with the directors. They decided that the assets of the bank were more than sufficient to meet all liabilities and leave a surplus. Telegrams were sent and funds came this morning in response thereto, but as the excitement was increasing the directors concluded to return them and stop business. It is possible the bank may now go into liquidation. The shrinkage in the value of real estate here during the past five years has left a proportion of overdue paper, which has rendered this course advisable. A run began on the Commercial Bank as soon as the First National stopped, and now that bank has also stopped.

5. December 15, 1878 The New York Herald New York, NY

Article from The New York Herald, December 15, 1878

Click image to open full size in new tab

Article Text

SARATOGA BANKS. THE FIRST NATIONAL ASKS FOR A RECEIVERTHE COMMERCIAL WILL PROBABLY RESUME BUSINESS. SARATOGA, N. Y., Dec. 14, 1878. Everything is quiet here to-day. and business men are trying to get along until banking facilities are again to be had. The directors of the Commercial National Bank held a meeting this morning and carefully examined their assets and liabilities, and are satisfied that the bank is entirely solvent. They are making preparations which they believe will enable them to resume at an early day. The directors of the First National Bank have requested the Comptroller of the Currency to appoint receiver.

6. December 16, 1878 New-York Tribune New York, NY

Article from New-York Tribune, December 16, 1878

Click image to open full size in new tab

Article Text

TELEGRAPHIC NOTES. ABDALLAH DEAD. MANCHESTER. N. H., Dec. 15.-The well-known stallion Abdallah died vesterday of cancer. CORNELL COLLEGE SHOWS GREAT SPIRIT. ITHACA, N. Y., Dec. 15.-In consequence of what 1s considered discourteous treatment, Cornell withdraws the challenge to Harvard for a race next season. THE TRIAL TRIP OF A CRUISER. Philadelphia, Dec. 15.-The steamship Africa. purchased for the Russian Government. left the ship-yard of Cramp & Sons yesterday on a trial trip. She will return on Monday. INVESTIGATION OF A LIFE-SAVING STATION. LONG BEANCH, N. J., Dec. 15.-An investigation relative to Lite-Saving Station No. 6. at Deal Beach, has been ordered at Washington, on charges of cowardice and neglect of duty on the part of the keeper. HUNTINGTON TO HAVE THE PENITENTIARY. HUNTINGTON, Penn., Dec. 15.-It is ascertained that $10,000. the full amount necessary to purchase all the property required by the State Commission for the location of the Middle Penitentiary at this place, had been raised. THE NEW CAPITOL A PROPER PLACE TO MEET. ALBANY, N. Y., Dec. 15.-Attornev-General Schoonmaker, in a letter to the Clerk of the Senate, reiterates the opinion that no fuit er action is necessary to make the new Capitol the place for the meeting of the next Legislature. SARATOGA WITHOUT A BANK. SARATOGA, N. Y., Dec. 15.-Business men are trying to get along here until banking facilities are again to be had. The directors of the Commercial National Bank are satisfied that the bank 18 entirely solvent. The directors of the First National Bank have requested the Controller of the Currency to appoint a receiver.

7. December 17, 1878 New-York Tribune New York, NY

Article from New-York Tribune, December 17, 1878

Click image to open full size in new tab

Article Text

TELEGRAPHIC NOTES. A SARATOGA BANK TO BE REVIVED. SARATOGA, N. Y., Dec. 16.-There 18 a probability that the stockholders of the First National Bank will resolve to make up deficiencies and go on. ORDERED NOT TO USE NICKEL PLATING PATENTS. BOSTON, Dec. .-Judge Lowell granted an injunction to-day in the case of the United Nickel Company. et al., agt. The American Nickel Plating Works, et al. This bill was brought under ten patents taken out by Isaac Adams, jr., and assigned to the plaintiffs. THE CHEERLESS DEATH OF A DRINKING MAN. NEWBURYPORT, Mass., Dec. 16.-The death of Joseph Jones causes excitement in Seabrook, N. H. It is evident the man was murdered. The deceased was a drinking man. His wife. supposing him to be drunk when be reached home, put a pillow under his head, and left him at midnight lying ou the floor. Four hours later he was dead. blood flowing from his mouth and nose, caused by & blow at the base of the brain.

8. December 19, 1878 The Democratic Press Ravenna, OH

Article from The Democratic Press, December 19, 1878

Click image to open full size in new tab

Article Text

HE DEMOCRATIC PRESS. SAMUEL D. HARRIS EDITOR AND PUBLISHER. RAVENNA, THURSDAY, DEC. 19, 1878, The Press for $1.50 a Year, in advance. THE Blaine resolution with the Thurman amendment, passed the Senate. The First National Bank and the Commercial Bank of Saratoga, New York suspended on the 13th inst. SOME of the Republican papers notice the absence of any remarks about Civil Service Reform in Hayes' message. THE Republican party is in a minority in every State in the Union except three, and, yet they boast that the financial policy of the Administration has been approved by the people. GILBERT O. SHOVE, the Greenback candidate in the Cuyahoga District has backed out of the contest of the seat of Amos Townsend and withdrawn his charges and specifications. THE Stark County Democrat suggests Major McKinley as a suitable candidate for King of Bulgaria in case Grant declines the honor. Why not? Isn't he a bigger man than old Grant? THE name of Hon. E. B. Eshelman, of the Wayne County Democratic, is mentioned as a candidate for State Auditor in the contest next fall. No more capable man could be selected for the place. A MAINE Republican Congressman now in Washington, says Ladd and Murch, the two Greenback Congressmen elected in that State in September, will act with the Democrats in the next Congress. GOVERNOR Wade Hampton had his leg amputated below the knee on the 10th inst.; and on the same day the Legislature of South Carolina elected him U. S. Senator from that State. The vote for him at the Senate was unanimous and only two against him in the House. CONGRESS will adjourn on Friday till the 6th of January to enable the members to enjoy the holidays. What a pity it is the people can not all take a recess, abandon all wordly care and enjoy themselves for a couple of weeks about this season, as well as their "servants."

9. January 12, 1879 The Sun New York, NY

Click image to open full size in new tab

Article Text

SARATOGA'S CROOKED FINANCIERS. How a Bank was Earned by One of Its DIrectors and Its Cashier. SARATOGA, Jan 11.-An examination of the inventory of the liabilities and assets of Jacob H. Farrington of this town. who recently made an assignment for the benefit of his creditors, affords an illustration of the probable cause of the suspension of the First National Bank. Mr. Farrington was a director in the bank. and in addition to carrying on A wholesale liquor store was joint proprietor in the United States Hotel Livery Company with John S. Leake, a codiroctor and cashier of the same bank. From the inventory it appears that Mr. Farrington is linble as maker. endorser. or partner of J. S. Leake, on discounted paper to the First National Bank, to the amount of $48,366.49 to the Commercial National Bank of Saratoga, $4,167.45: to the First National Bank of Ballston Spa, $2,702: and to the First National Bank of Orwell, Vt., $2,000. A very small portion only of this large amount is secured, and notes aggregating over $15,000 have already been protested, and suits have been instituted to recover. The manner in which Farrington and Leake obtained money does not place those gentlettien in an enviabie light. They were the United Stat 8 Hotel Livery Company. and notes were made in the name of the company endorsed by Farrington and Leake, and discounted at the bank where both were directors and one of them cashier. By the terms of the assignment. several creditors are preferred and when they are paid there will be little or nothing left. According to the schedule of assets. Mr. Farrington was the owner of real estate valued by him at $32,150. but probably not worth more than $20,000. on which there are mortgages amounting to $84,225. of which the last mortgiure of $15,000 is given to the bank to see cure some of the notes. All his other prop. erty is heavily encumbered. It is quite possible that criminal proceedings will be instituted against Farrington on account of representations which he made as to his business standing when he obtained some of the money. Taking all things into consideration it 18 not surprising that a bank should suspend when the cashier allows a co-director and business partner to have a line of discounts amounting to almost one-half of the capital stock, with scareely any security. Mr. Farrington's total liabilities are $75,556.90. of which $57,235.94 is discounted paper. One of the worst features in the whole case is the manner in which the money was obtained from the Ballston Bank. Alter the Saratoga Bank had been depleted. Leake endorsed Farrington's note for $2,000, and, as Cashier of the Saratoga Bank. wrote a letter to the Ballston Bank representing Farrington as a wealthy man. Accepting Leake's statement as correct, the money was loaned, and when the note matured it was protested. Notes exceeding $4,000 were made and endorsed by A. W. Hagaman. a porter employed by Farrington.

10. February 16, 1879 The New York Herald New York, NY

Article from The New York Herald, February 16, 1879

Click image to open full size in new tab

Article Text

TELEGRAPHIC NOTES. The fourth annual State fair of Florida opens on Tuesday next at Gainesville. A fire Friday night at Enterprise, Miss., caused a loss of $60,000; insurance, $40,000. Ira Stewart, living near Hermon, N. Y., was shot and killed Friday night by George Stewart, his insane son. Six dwelling houses on King and Niagara streets, Toronto, were burned yesterday morning. Loss, $15,000. Aaron Arnold, while chopping wood near Forest, Ohio, Friday, was instantly killed by a tree falling upon him. Governor Fremont is to represent Arizona at Washington to resist the creation of an Indian reservation on Salt River. The oil refinery or J. R. Timmons, at Smith's Ferry, Ohio, was burned yesterday. Loss, $10,000; no insurance. Baxter's block. at Lima, Ohio, was destroyed by fire on Friday. The loss is estimated at $10,000; insured for $2,000. The Licking county, Ohio, Commissioners are investigating the charges against County Clerk S. S. Wells, of overcharging in his cost bills. A fire at Bedford, Ohio, yesterday, destroyed Mar le's grocery, Hine's hardware store and the Post Office. Loss, $10.200; insurance, $4,300. The total loss caused by the sinking of the sixteen houses belonging to the Reading Coal and Iron Company will be between $30,000 and $40,000. The Commercial Bank of Saratoga is in charge of L. M. Price as receiver. The First National Bank will probably resume business with new capital this week. Albany county bonds for $87,000 sold yesterday at prices ranging from 104% to 106 9-16. Comptroller Olcott bought $30,000 worth on account of New York State. A youth named Charles Boyer was detected yesterday at Fredericksburg, Va., taking mail matter from the Post office lock boxes. He was sent before the Grand Jury. The jury in the case of Charlie Woods (colored), on trial at Memphis for the murder of Mrs. W. C. C. Foster. yesterday found a verdict of murder in the first degree. The business portion of Bedford, a suburb of Cleveland, Ohio, was almost entirely destroyed by fire yesterday morning. The loss is from $10,000 to $12,000; insurance, $4,300. The Virginia House of Delegates has made the bill providing for a settlement of the State debt a special and continuing order for Thursday next. The Senate begins the consideration of the same bill on Monday. A mass meeting at Prescott, Arizona, Friday night, denounced the bill just signed by the Governor requiring Maricopa and Varupai counties to furnish money to build a railroad as a job and as ruinoua to those counties. Patrick Smith, one of the four negroes charged with the murder of John C. Lacy, in New Kent county. Va., last month, has been convicted and sentenced to be hung on the 15th of March. Julius Christian, enother of the gang. is being tried, and the two others will be tried next week.

11. February 17, 1879 New-York Tribune New York, NY

Article from New-York Tribune, February 17, 1879

Click image to open full size in new tab

Article Text

BARATOGA BANKS. SARATOGA, N. Y., Feb. 16.-The Commercial Bank 18 in charge of L. M. Price, as receiver. The First National Bank will probably resume business with new capital next week.

12. May 22, 1880 New-York Tribune New York, NY

Article from New-York Tribune, May 22, 1880

Click image to open full size in new tab

Article Text

BANK OFFICIALS INDICTED. SARATOGA, N. Y., May 20.-John S. Leake and Stephen H- Richards, cashiers, respectively, of the First National Bank and the Commercial National Bank, both of which suspended in this city in December. 1878 have been indicted by the United States Grand Jury for within abstraction and embezzlement of the funds of said banks. Jacob H. Farrington. a director of the First National Bank, and a partner of Leake, was also 111dieted.