17168. Bank of Chillicothe (Chillicothe, OH)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
April 26, 1841
Location
Chillicothe, Ohio (39.333, -82.982)

Metadata

Model
gpt-5-mini
Short Digest
d5cb4b2c

Response Measures

None

Description

Newspapers report the Bank of Chillicothe stopped paying specie in late April/early May 1841 (suspension). By January–February 1842 the bank had passed resolutions to wind up and its effects were assigned to agents for closing (assignment/receivership). No article describes a depositor run; events are a suspension followed by permanent winding up/assignment. Dates chosen: suspension dated to Monday before the May 4, 1841 newspapers (interpreted as 1841-04-26); assignment reported 1842-02-25. Bank charter type not stated in the articles, so set to unknown.

Events (2)
1. April 26, 1841 Suspension
Cause Details
Bank ceased specie payments after making a large loan to the State (reported lending $581,000 of its paper) and apparently withholding redemption; suspension appears tied to that transaction and liquidity management rather than a panic or rumor.
Newspaper Excerpt
The Bank of Chillicothe stopped paying specie for their notes on Monday last.
Source
newspapers
2. February 25, 1842 Receivership
Newspaper Excerpt
The effects, rights and credits of this Bank, have been assigned to Messrs. Wallace, Wills, and Woodbridge, for the purpose of closing the business of the institution.
Source
newspapers

Newspaper Articles (7)
1. May 4, 1841 Democratic Standard Georgetown, OH
Article from Democratic Standard, May 4, 1841

Click image to open full size in new tab

Article Text

From the Chillicothe Advertiser. SUSPENSION OF THE BANK OF CHILLICOTHE. The Bank of Chillicothe stopped oaying specie for their notes on Monday last. We have at various times, published abstracts from their monthly statements, which have uniformly shown al gradual increase of specie in its vaults, and a diminution of notes in circulation; until the specielin its vaults far more than doubled its circulation. The published monthly statement of the Bank for the first of this month, shows, that at that time the notes in circulation amounted to $66,366 40, and the amount of specie in its vaults was $151,995 37. Wherefore, then the people will ask, does the Bank refuse redee ining its notes, when their means so far exceed the demands that would be made by the note holders? OTA BARGAIN! A BARGAIN!!The State Fund Commissioners have been authorized to borrow about two million and a half of dollars for finishing the public works, and these Commissioners are Whigs. The Bank of Chillicothe has, we understand, agreed to lend to the State of Ohio five hundred and eighty one thousand dollars of their own paper, and forthwith suspended. Now it is very evident, that the Bank could lend half a million or two millions and a half of Bank notes, if it is not compelled to redeem them. The Bank can now have an opportunity of selling one hundred and fifty thousand dollars of specie, at a premium of about 15 per ct., which will make the snug little sum of $20,500. But this is only a little spice money. The interest of the loan (so CALLED) at six per cent., would amount to thirty-four thousand eight hundred and sixty dollars a year.

2. May 7, 1841 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, May 7, 1841

Click image to open full size in new tab

Article Text

(From the ( Ohie) Chillicothe Advertistr.) SUSPENSION OF THE BANK OF CHILLICOTHE. The Bank of Chillicothe stopped paying specie for their notes, on Monday last. We have, at various times, published abstracts from their monthly statements, which have uniformly shown a gradual increase of specie in its vaults, and a diminution of notes in circulation: until the specie in its vaults far more than doubled its circulation. The published monthly statement of the Bank for the first of this month, shows, that at that time, the notes in circulation amounted to $66, 40, and the amount of specie in its vaults was $151,995 37. Wherefore, then the people will ask, does the bank refuse redeeming its notes, when their means so far exceed the demands that would be made by the note-holders? If A BARGAIN!! A BARGAIN - The State Fund Commissioners have been authorized to borrow about TWO MILLIONS AND A HALF OF DOLLARS for fi. nishing the public works, and these Commissioners are Whigs. The Bank of Chillicothe has, we understand, agreed to lend to the State of Ohio FIVE HUNDRED AND EIGHTY.ONE THOUSAND DOLLARS of their own paper, and forthwith suspended. Now, it is very evident, that the Bank could lend half a million or two millions and a half of Bank notes, if it is not compelled to redeem them. The Bank can now have an opportunity of selling one hundred and fifty thousand dollars of specie, at a premium of about FIFTEE% per cent, which will make the snug little sum of TWENTY THOUSAND FIVE HUNDRED DOLLARS. But this is only a little spice money. The interest of the loan (so called) at six per cent., would amount to THIRTY-FOUR THOUSAND EIGHT HUNDRED AND SIXTY DOLLARS A the a very easy method of money. are ice quick YEAR. Why, say making people, that Why is not and al. lowed to issue notes and draw interest on them, and suspend in like manner? The Whig doctrine is, that what would be dishonesty and swindling in an individual, is converted into a fair, upright and honest business transaction by the sacred charter of a bank.But, say the people, is it right that we should be taxed to pay interest to these bankers for mere paper promises, which the banks refuse to redeem Certainly, say the Whigs, bankers cannot get money fast enough by honest banking, to live in a splendid and expensive style, style suitable to their high station in society. How comes that to pass? say the people. We thought by their building log cabins in the midst of the cities, that they intended to live in a plain and economical manner like us farmers. You are very much mistaken, say the Whigs. The building of log cabins was only to gain the election-and enable bankers and speculators to swindle the people. They are all pulled down now. If we had known that, say the people, we would never have have voted for them. But we will not trust these Whigs, when they go round the country making speeches again. The Cashier of the Girard Bank of Philadelphia has received from George G. Hall, Esq., Cashier of the Commercial Bank of New Orleans, a letter on the sub. ject of the late extensive swindling operations, from which the following is an extract: "[ wrote to you on the 12th instant advising you that I had no knowledge of what you referred to in relation to Mr. Draper. I find that imposition has also been attempted on the Bank of America, New York. Two certificates of deposite of this bank issued to a Mr. Robert D. Mackey for small sums, were presented to us yesterday, and this morning for payment, altered in a very ingenious manner to 13,000 dollars each, one of

3. January 6, 1842 The Ohio Democrat New Philadelphia, OH
Article from The Ohio Democrat, January 6, 1842

Click image to open full size in new tab

Article Text

Messrs. D. Tod, and others. IMPORTANT DECISION-MAKING BANKERS TOE THE MARK. The Court in Bank now in session at Columbus, has made an important decision in relation to Bank notes. In the case of Atwood, V. Bank of Chilocothe, Judge Hitchcock, 'Held, that in action against a Bank for the recovery of its notes or bills, it is sufficient to declare, for money had and received, and on trial, the plaintiff may give in evidence any notes or bills of the Bank which he may then have in possession, and recover the amount thereof, under the act of January 28, 1821, and in such case, if the Bank has suspended specie payment, the plaintiff is entitled to interest on the notes or bills from the time of suspension.' The Ohio Statesman remarks-'A few such decisions will bring the banks to a resumption or liquidation very soon If a person sues a bank in Ohio, for the rew covery of its notes, he can, on trial, give in evidence, any notes of the bank he has in possession at the time, and recover interest from the time the bank suspended. Holders of suspended bank paper will bear this in mind. It entitles them to back interest on all such paper. If a bank has been in a state of suspension for two years, it will entitle the holder to one dollar and twelve cents; at the bank counter, for each dollar the holder may have in his possession-and at the same rate for a longer or shorter period. This should make a vast difference in the value of such suspended paper, and in the end, will return to the people, a vast deal of the losses sustained by the swindling process of suspension, carried on so impudently by these rag mills of oppression and demoralization."

4. January 17, 1842 The New York Herald New York, NY
Article from The New York Herald, January 17, 1842

Click image to open full size in new tab

Article Text

190.000 3,560 Notes of Banks, 11,014 Due Banks, Due from 18.068 5295 Deposites, 131.381 7,734 Other resources, Other liabilities, $376 $376,699 The Lebanon Miami|Bank, which stopped lately, has made an assignment of all its assets to E. W. M'Guire, of Lebanon, for the benefit of the ereditors. Three other banks have passed resolutions to wind up their affairs, viz: the Bank of Zanesville, the Commercial Bank of Lake Erie, and the Bank of Chillicothe. This last is one from which the State obtained a loan of $591,000 during the past year, and the institution is to make an offer by which the State will be able to pay the bank in the cur rency receivable by the State. The debt is now payable in New York. The ship ashore reported to be the Morrison, turns out to be the Frankfort, from New Orleans. The Treasury note bill authorising the issue of $5,000, 00 of Treasury notes in lieu of so much of the $12,000,000 loan of the extra session. has passed the House of Repre sentatives. Of all the means proposed to borrow money now that the mismanagement of the government finan cesrenders borrowing necessary, this is, perhaps, in the present state of the market, the least objectionable mode in which it can be done. The necessity for bor rowing at all at such a juncture as this, is greatly to be deplored, and the more so, that the government should have impaired its own credit by divesting itself of the proceeds of the public lands, which should have been appropriated to the discharge of the debt. The increase of the amount outstanding will no doubt cause a fall in the value of those upon the market, more particularly as there is no means of judging of the issue of the pre sent financial difficulties of the government. There is yet no way pointed out to remedy the deficient revenue and the prespect is that of yearly adding to the present debt. which is embracing thenew issue of $18,000,000 Under the new tariff, the customs may yield $15,000,000, and if the distribution act remains in force, this is all the revenue to meet $30,000,000 of annual expenditure. With this prospect ahead, nothing can save the government credit, or enable it to obtain money on any terms, but to recall the proceeds of the public lands, appropriate it to meet the interest and principal of the debts contracted, and then levy imposts promptly to meet fully an economical expenditure. The state of the markets and of American credit at home and abroad, make rigorous measures imperative. The government is already on the same tack that has destroyed State credit, and blast. ed American reputation abroad. The excitement in relation to the Bankrupt Law is increasing. Movements are making in favor of repeal in all sections of the country. A resolution is before the Lesgislature of Indiana to instruct the Senate and House of Representatives to vote for a repeal of the Law. In the debate upon the subject the following strong language was used by a member :As the law stands, it is worse than nothing. If its provisions extended to Banks and Corporations- that when they suspend specie pay otherw verted themselves into engines for swindling the community-he could rejoice to see it go into open ation But, while these insinuations are not embraced in are the compulsory provisions of the Bankrupt Law, and suffered to practice the most stupendous fraud upon the with impunity- while their favorites, the great country who have been furnished with the credit speculators, fraudulent necessary to enable them to carry on their operations by those institutions, are alone to be benefit al its operations, and by a summary process are lowed baby to absolve themselves from all obligations to pay their honest debts-he felt that he could not too strongly advocate its repeal. Sir, theonly effects of the law proposed to be repealare 1st. Any scoundrel who may have been en gaged ed in exclusive speculations, and ho has been enabled to live in splendor for years upon the hard earnings of the honest working portions of the community, and whose dubts have moltiplied and wollen than ex tentas su' joi himto ergent and repeated solicitations the demands against him, which so such gentlepay is always an intolerable grievance- may volunta man rily go before court, and by giving up what little he had not squandered of the property of others then in his opehands, swear is all he has, and by this one grant ration. pay all his debts at once, and that without money or other valuable consideration. As a matter of interest to the holders of Indiana bonds, we annex from the report of Milton Stapp, late Fund Commissioner, the numbers of the bonds in dispute. Those issued to Sherwood :410 BONDS DUE FROM SHERWOOD. Dollar Bonds. Sterling Bonds. Bank loan dollar boads, numbers from 1 23 to 23, Internal improvement dollar bonds, from 5 4.452 to 456, 4,457. 4,458. 4,459, 4 460, 18-from 4,519 35 to 4,347. 4 549, 4,550. 4,552, 4,553, 4,534, 4,557, to 4,562, 11 4,564, 7 4,566. 4,567 4,668, 4,575. 4,579, 4,579, 4,580, 6 4,682, 4,597, 4,698, 4,599. 4,600, 87 Sterling internal improvement bonds, num20 bers from 1,771 to 1,790, 1,901. to 1,906, 1.910, 1,911, 1,919, 1,926, 24 to 1.940. 1951, to 1,950, 1,970, to 1,979, 2,001, 2,003, 34 to 2015, 29 2018,102.021. 2.073, 2.080. 178, to 200. 87 2,276 te 2,300 2,302 to 309 601 to 2,654, 13 2.656.2667 658 2,665 2674. 20 2.684 to 2700, 806 to 2,807 2,808, 16 2,826 to 2,839, 2,841, 2,877, 243 Bank loan sterling bonds, number's from 363 to 390. 28 52 Numbers from 849 to 900, SO Bonds, 410 The following are the bonds sold the Circleville Bank, as numbered Wabash and E. Canal bonds, (which had been returned in the pace of Internal Improvement bonds hv pothecated. numbers 2,389. 2,990,2403 2,422, 2 437 439. 2471. 2.472. 2,473 4 474.2475 2,476. 247722,188, 2,489, 2,490, 2,491, 492, 2,493, 21 2.494, and 2,495 improvement bonds numbers 2,422 2.435 Internal 2,437, 2,438,2,471, 2,472. 2,473. 2,474. 2,475 5.2,476 2,477, 2,498, 2.489, 2490. 2,491. 2 492. 2,493, 2494, 495. 3 433, 3,435. 3,435, 3,437 3,816, 29 3,820, 3,821, and 3,822, 50 The followin are the bonds retained by Danforth Internal Improvement bonds. numbers 2 993, 3,419, 3 420, 3,793, 3.796, 3 808. 3 810, 3811, 3,815, 3.823. 3.824, 3 825, 3,826 3527, 3,812. 3,829. 3.830, 3.831. 3 632, 3,833, 3 834, 3,828, 3.835. 3837, 3 938. 3.839. 3 840, 3 841, 3,843, 35 3,844, 3 845, 4,299. 4264. 4,576, 4,577. Madison Railroad bonds, numbers 143, 145, 146, 147. 148, and 150, 4 Others numbers not known, 45 The following are the bonds issued to th Morri Canal :Internal Improvement bonds, Nes. 4345 to 4,352 4,421 4,440 4.461 477 4,479 to 4.500, 4,563. 82 4.569 4,874 4,583 to 4,583. 4,595 to 4 596, Madison Railroad bonds, Nos. 149. 164,165 166. 167. 169, 170.171.179. 212,213. 214, 308, 409, 416,417, 418, 421, 422, 423, 424, 426, 431. 435, 446, 29 453 and 456, 11] Died. Sunday, 16th inst. WILLIAM H. HUDSON agel 32

5. February 25, 1842 Carroll Free Press Carrollton, OH
Article from Carroll Free Press, February 25, 1842

Click image to open full size in new tab

Article Text

BANK OF CHILLICOTHE. The effects, rights and credits of this Bank, have been assigned to Messrs. Wallace, Wills, and Woodbridge, for the purpose of closing the business of thesinstitution. In a recent publication, these gentlemen say, "That the means of the bank are estimated at about $480,000 over all its liabilities, and that one item alone of these means, to wil: The debt due by the State, reimbursable within the present year, exceeds the whole circulation of the bank by the sum of $218.000, and as the notes of the bank are receivable as specie in pay. ment of taxes, tolls and all other dues to the State, the holders thereof should feel a perfect confidence that every note is a true representation of the . sum promised."

6. March 31, 1842 The Ohio Democrat New Philadelphia, OH
Article from The Ohio Democrat, March 31, 1842

Click image to open full size in new tab

Article Text

SPECIE PAYING BANKS. Western Reserve Bank, Farmers and Mechanics Bank Steubenville, Columbiana Bank of New Lisbon, Bank of Mt. Pleasant, Belmont Bank of St. Clairsville, Bank of Marietta " Zanesville, " Muskingum, " Circleville (old) Ohio Life Ins. & Trust Co. Bank of Norwalk, Deyton Benk, Bank of Geauga, " Wooster, " Massillon, Sandusky, Xenia, Franklin Bank of Cincinnati, Lafayette. is " Commercial Commercial Bank of Scioto, Glinton Bank of Columbus, The Columbus Statesman, contains a 'Specie basis Bank Note Table," in which the value of the following suspended andbroken Bank notes, is thus rated: Franklin Bank of Columbus, 18 discount, 20 dis. Bank of Chillicothe, 25 dis: Lancaster Ohio Bank, 50 dis Bank of Hamilton, 50 dis Farmers Bank of Canton, 50 dis Con mercial Bank of Lake Erie, 60 dis Bank of Cleveland, 62 dis Bank of Granville, 75 dis Urbana Banking Co. INDIANA. 10 dis State Bank'& Branches, 50 dis State Scrip, 5s MICHIGAN. 10 dis Bank of St. Clair, Indorsed by Smithe 10 dis

7. April 21, 1842 The Ohio Democrat New Philadelphia, OH
Article from The Ohio Democrat, April 21, 1842

Click image to open full size in new tab

Article Text

BROKEN & SUSPENDED BANKS. Farmers Bank of Canton, Franklin Bank of Columbus, Bank of Chillieothe, Com. Bank of Lake Erie, Bank of Cleveland, Lancaster Ohio Bank, Bank of Granville, Bank of Hamilton, Urbana Bank ing Co. The five banks to the left, are broken, and their notes worth. from 25 to 50 cents OII the dollar. The four to the right are suspended, and worth from 70 to 80 cents. The notes of the Indiana State Bank, and Bank of St. Clair, Michigan, endorsed by the Smiths, are still in circulation. But we advise the public to be on their guard Some hard things are being said about these wo banks