16999. Bank of Trumansburg (Trumansburg, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
May 13, 1871
Location
Trumansburg, New York (42.542, -76.666)

Metadata

Model
gpt-5-mini
Short Digest
2242f9cb

Response Measures

None

Description

Articles report the Bank of Trumansburg's failure due to the president Asa B. Clark's large speculative losses in gold. A receiver had been appointed and presented a statement at a creditors' meeting (13th inst.). There is mention that depositors had trouble getting money earlier in February, but the accounts center on insolvency from bad speculation rather than a rumor-driven run. Date for receiver/creditors' meeting taken as 1871-05-13 (13th inst.).

Events (1)
1. May 13, 1871 Suspension
Cause
Bank Specific Adverse Info
Cause Details
President Asa B. Clark engaged in large gold speculations and losses (purchases and carrying costs) leading to insolvency; liabilities exceeded assets and a receiver was appointed.
Newspaper Excerpt
On the 13th inst. concealment of the unsound condition of the bank was no longer possible and at that time the Receiver, previously appointed, laid before a meeting of the creditors a statement.
Source
newspapers

Newspaper Articles (2)
1. May 28, 1871 The New York Herald New York, NY
Article from The New York Herald, May 28, 1871

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Article Text

A BANK GONE UP. The Tompkins county. N. Y. Sentinel comes to us with along account of the failure of the Bank of Trumansburg. Some time in February last persons who had money in the bank experienced difficulty in getting it. Suits were commenced, which Asa B. Clark, the President succeeded in getting discontinued. On the 13th inst. concealment of the unsound condition of the bank was no longer possible and at that time the Receiver, previously appointed, laid before a meeting of the creditors a statement. By this statement in substance was conveyed the fact that Clark (President), bought gold to tue amount of $27,000 at forty-nine cents premium, and bought over $70,000 at about forty to forty-five per cent premium. Paid for carrying gold interest from five to seven per cent. Brokers commission from one-eighth to onequarter per cent. The bank lost by the depreciation 111 gold over $50,000. Many poor people who were depositors are robbed of all they had. From a statement of account obtained from the American Exchange Bank, through which he made his purchases of gold. it 19 found that Clark made loans of that bank as follows:-November 1, 1863, $54,000; November 9, 1869, $47,000; May 26, 1870, $12,000: June 1, 1870, $2,000. This makes $115,400 loans through that one New York bank since the last of 1868. From the figures in possession of the receiver it is evident that Clark has fought the tiger or gold to the extent of some $148,000. The speculations in gold began some time in 1867. At the meeting of the creditors on the 13th inst. it was found that the liabilities of the bank were probably over $52,000. All the claims were not presented at that time and some claims have been found which were not upon the books of the bank. Against these liabilities is the banking house and lot and nitures and a small amount of currency, some good notes, more very poor ones, and other insignificant property, which, after all is adjusted and expenses paid, may amount to $2,500. Says the sentinel:-It will be seen from this statement, carefully made from all the facts we have access to, that this man Clark, who has been considered upright and honest, has deliberately indulged in gold gambiing with money which he had no moral right to use-money nard earned and belonging to men and women who can illy afford to lose it. This money is lost, with no prospect of repayment. The reports of the condition of the bank, as published in our paper for the last five years, do not bear the same look as when viewed without the light of recent developments. Among those who have been friends of Mr. Clark, to-day there are few who will own to being such.

2. June 3, 1871 New Orleans Republican New Orleans, LA
Article from New Orleans Republican, June 3, 1871

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Article Text

A Bank Gone Up. The Tompkins county, New York, Sentinel comes to us with a long account of the failure of the Bank of Trumansburg. Some time in February last persons who had money in the bank experienced difficulty in getting it. Suits were commenced, which Asa B. Clark, the president, succeeded in getting discontinued. On the thirteenth instant concealment of the unsound condition of the bank was no longer possible, and at that time the receiver, previously appointed, laid before a meeting of the creditors a state ment. By this statement, in substance, was conveyed the fact that Clark (president) bought gold to the amount of $27,000 at forty-nine cents premium, and bought over $70,000 at about forty to forty-five per cent premium; paid for carrying gold interest from five to seven per cent; broker's commission from one-eighth to one-quarter per cent. The bank lost by the depreciation in gold over $50,000. Many poor people who were depositors are robbed of all they had. From a statement of account obtained from the American Exchange Bank, through which he made his purchases of gold, it is found that Clark made loans of that bank as follows: November 1, 1868, $54,000; November 9, 1869, $47,000; May 26, 1870, $12,000; June 1, 1870, $2000. This makes $115,000 loans through that one New York bank since the last of 1868. From the figures in possession of the receiver it is evident that Clark has fought the tiger of gold to the extent of some $148,000. The speculations in gold began some time in 1867. At the meeting of the creditors, on the thirteenth instant. it was found that the liabilities of the bank were probably over $52,000. All the claims were not presented at that time, and some claims have been found which were not upon the books of the bank. Against these liabilities is the banking house and lot and fixtures and a small amount of currency, some good notes, more very poor ones, and other insignificant property, which, after all is adjusted and expenses paid, may amount to $2590. Says the Sentinel: "It will be seen from this statement, carefully made from all the facts we have access to, that this man Clark, who has been considered upright and honest, has deliberately indulged in gold gambling with money which he had no moral right to use-money hard earned and belonging to men and women who can illy afford to lose it. This money is lost, with no prospect of repayment. The reports of the condition of the. bank, as published in our paper for the last five years, do not bear the same look as when viewed without the light of recent developments. Among those who have been friends of Mr. Clark, to-day there are few who will own to being such."