16949. State Bank (Saugerties, NY)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
October 2, 1851
Location
Saugerties, New York (42.078, -73.953)

Metadata

Model
gpt-5-mini
Short Digest
87010853

Response Measures

Accommodated withdrawals, Public signal of financial health

Description

Newspaper reports (Oct 2–3, 1851) list the State Bank at Saugerties among broken banks taken up by brokers in NYC because of an unusual, unexpected rush of the bank's bills at the New York agency. An agent's notice states the bank is wholly secured by U.S. and N.Y. stock and that bills are redeemable (at the bank and by Washburn & Co.), indicating a temporary liquidity rush rather than insolvency or a formal suspension. No explicit statement that the bank suspended payments or was closed, nor that a receiver was appointed, is present; therefore classified as a run that did not lead to suspension/closure.

Events (1)

1. October 2, 1851 Run
Cause
Rumor Or Misinformation
Cause Details
An unusual and unexpected rush of the banks' bills at their New York agency after a flurry/rumor that certain free banks were not being redeemed; temporary absence of funds at the agency triggered heavy redemptions.
Measures
Agent notice stating bills secured by U.S. and N.Y. stock; redemption available by Washburn & Co. in specie and at the bank at par; brokers to receive bills at current rates.
Newspaper Excerpt
The Bank of Cayuga Lake and State Bank at Saugerties are regularly taken by the Brokers to-day. The New-York Agent of these Banks has published the following notice ... are wholly secured by United States and New-York Stock and redeemed by Washburn & Co.
Source
newspapers

Newspaper Articles (2)

Article from New-York Daily Tribune, October 3, 1851

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Article Text

SECOND BOARD 74 100 Erie R. R 86 $2,000 Erie Conv 5 $60 b30 54 1200 Ports. D. D 200 Read. R. R 50 N. O. Canal B. Co. 90 100 N.J. Min. Co. $60 81 b4 90 66 do 25 5 Hud. Riv. R. R 510 90 50 do 74 100 Erie R.R 64 200 Harlem R. R do 50 opg 75 s30 64 do 100 74 do 25 64 do 50 74 do 25 100 Morris C. Co. b60 14 $30.74 do 100 b30 75 do 100 100 Reading R. R. b30 54 53 do 100 74 do 200 do s3 74. 25 THURSDAY, Oct 2-P. M. The influence of the uncurrent money panic has passed away and stocks have resumed their previously improving tendency. The market has been scarcely so active as it was yesterday, but the transactions show generally higher prices. Erie Stock shows an advance of two Pencent., an advance, owing, however, as much to the favorable statement of the receipts of the road which we published yesterday, as to the subsidence of yesterday's panic. The Convertible Bonds improved Harlem advanced 11 Erie Bands, 1859, H Reading,1 Long Island, 1, and Canton The Money market shows a feeling of gradual ameliortion. No Gold is going this week to Europe, and the declining rates of Sterling Exchange indicate the probability that little or none will go next week. Sterling is offering at 91 @101 P cent. for the best bills, and the supply is likely to be increased largely from the South before the next steamer sails. In Freights there is less offering, and the rates are hardly so firm. To London, 5,000 bushels Wheat was taken at 5d. to Liverpool, Flour at 7@ 7dd. Wheat, and Cotton and Heavy Goods at former rates. The Brokers have generally returned to the discount of our State money for the present, all uncurrent money is bought @@ P cent. higher than usual quotations. John Thompson publishes the following list of Broken Banks I P. M. Oct. 2.-Broken Banks.-List of Banks Already Failed James Bank, Saratoga County Bank of New-Rochelle Farmers' Bank of Mina Western Bank, White Creek Peoples' Bank, Paterson, N.J. Commercial Bank, Perth Amboy The Bank of Salisbury, Md. The Bank of Cayuga Lake, and State Bank at Saugerties are regularly taken by the Brokers to-day. The New-York Agent of these Banks has published the following notice The Bank of Cayuga Lake and State Bank at Saugerties are wholly secured by United States and New-York Stock and redeemed by Washburn & Co. at Peent. discount in specie,at the bank at par.and received by the Brokers at the current rates. The Albany Evening Journal, of last night, states that There was a little flurry in the street this morning, caused by a rumor that the bills of three free banks were not redeemed at their agency in this city. The rumor was true but the absence of funds will only be temporary, and scaused by an unusual and unexpected rush of the bills of these particular banks. They will, weare informed, probably be redeemed as usual, to-morrow. Or if they should not they are just as good as gold, inasmuch as they re secured by anabundance of first rate stocks." In respect to the Commercial Bank at Amboy, The Newark Advertiser states "We understand that an injunction was granted, Saturday last, against the Commercial Bank of New-Jersey. The injunction was served and the assets taken by Receivers on Monday morning. No full investigation of the affairs of the Bank could yet had, but it is the opinion of the officers, and those best acquainted with the matter, that there are assets more than sufficient to redeem the circulation, in which case the holders would do well not to sacrifice their bills too suddenly. The following explanation of the unfortunate occurrence has just been communicated to us: "It is said that the stoppage of this Bank was a perfect surprise upon its officers and Directors. The Mechanics Bank in New-York were its agents for redeeming $10's and upward. On the afternoon of the 24th of September, the same day on which the People's Bank stopped, Thompson's Bank Note Re. porter appeared with a notice pasted on it, that the agents had ceased to redeem the bills of the Commercial Bank also, which was not the case, but it, of course, created anxiety to dispose of the bills. The Mechanics' Bank had that day what was supposed to quite sufficient for all redemptions that were to be anticipated, and had besides in their hands some $40,000 of excellent paper for collection, and as secu-


Article from The Democratic Sentinel and Harrison County Farmer, October 8, 1851

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Article Text

Broken Banks. The brokers have generally returned to the discount of our State meney; for the present, all uncurrent money is bought Aa1 per cent, higher than usual quotations. J. Thompson publishes the following list of broken banks: 2 P. M., Oct. 2.-Broken Banks.-List Banks already failed-James Bank, Sarmers' Bank of Mina; atoga of County; Bank of Western New-Rochelle; Bank, White FarCreek; People's Bank, Patterson, N. J.; Commercial Bank, Perth Amboy; The Bank of Salisbury, Md. The Bank of Cayuga Lake, and State Bank of Saugerties are regularly taken by the brokers to-day. The New-York Agent of these Banks has published the following notice: The Bank of Cayuga Lake and State Bank at Saugerties are wholly secured by U. S. and N. Y. Stock and redeemed by Washburn & Co., at 1/4 per cent. discount in specie, at the bank at par, and received by the brokers at the current rates. The Albany Evening Journal, of last night states that 'There was a little flurry in the streets this morning, caused by a rumor that three free banks were not redeemed at their agency in this city. The rumor was true; but the absence of funds will only be temporary, and is caused by an unusual and unexpected rush of the bills of these particular banks. will, we are informed, probabe redeemed as bly They usual, to-morrow. Or if they should not be, they are just as good as gold, inasmuch as they are secured by an of first rate stock." In to the Bank at abundance respect Newark Advertiser Commercial states: Amboy, the "We understand that an injunction was granted on Saturday last, against the Commercial Bank of N. J. The injunction was served, and the assets taken by the receivers on Monday morning. No full investigation of the affairs of the bank could yet be had, but it is the opinion of the officers, and those best acquainted with the matter, that there are assets more than sufficient to redeem their circulation, in which case the holders would do well not to sacrifice their bills too suddenly. The following explanation of the unfortunate occurrence has just been communicated to us: "It is said that the stoppage of this bank was a perfect surprise upon its officers and directors. The Mechanics' Bank in N.Y. were its agents for redeeming $10's and On the of the same on upward. September, afternoon day of the which 24th Bank the People's Bank stopped, Thompson's Note Reporter appeared with a notice pasted on it, that the agents had ceased to redeem the bills of the Commercial Bank also, which was not the case, but it, of course, created anxiety to dispose of the bills. The Mechanic's Bank had that day what was supposed to be quite sufficient for all redemptions that were to be anticipated, and had besides in their hands some $40,000 of excellent paper for collection, and as security, belonging to the Commercial Bank. The morning of the 25th found them in possession of about $4,000 cash, and early after bank hours a draft for $5,300, held by a broker interested with Thompson, it was said, was presented, drawn the day before by cashier at of the Wall Amboy, street in and ignorance the the difficulty in panic about banks. "The President of the Amboy Bank had not at that hour, reached town-yet the Mechanic's Bank, notwithstanding their knowledge of this fact, and their large securities, not only dishonored the draft, but sent notes to all the banks in the city that they had ceased to redeem the Amboy bills. In this situation the President arrived in the city; but of course the panic so created could not be allayed, and any bank must have suspended under such circumstances. "We further learn that the people of Amboy sympathize greatly with the bank and its directors. The occurrence is indeed, for their sake, to be greatly regretted, for a n more useful institution did not exist in the State, and its officers were deservedly popular. n We understand that the most responsible e Director of the bank has alienated that portion of his real estate which is situated ni New Jersey.