17262. Miami Exporting Company (Cincinnati, OH)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: January 12, 1842
Location: Cincinnati, Ohio (39.103, -84.515)

Metadata

Model: gpt-5-mini
Short Digest: 4fc8ca3d

Response Measures

None

Description

Contemporary reports (Jan 1842) state the Miami Exporting Company exhausted all its means, closed its doors (did not open), made an assignment to the Franklin Bank, and its vault/office was subsequently forced and looted by a mob. There is no clear prior run while the bank was open redeeming; the bank appears to have suspended/closed because it was insolvent and then was pillaged. I therefore treat this as a suspension leading to permanent closure. OCR errors in articles corrected (e.g., Miama -> Miami).

Events (2)

1. January 12, 1842 Other

Newspaper Excerpt: Its vault was then forced, and its contents... a little over twelve hundred dollars in specie, made away with. The windows of this house were instantly battered down, its fixtures pitched into the streets, and such books and papers as had not been removed, destroyed. It made an assignment (next morning).
Source: newspapers

2. January 12, 1842 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank exhausted all its means and refused/ceased payments; officers closed doors and later made an assignment to Franklin Bank.
Newspaper Excerpt: The Miami Exporting Company exhausted all its means day before yesterday; and closed its doors before the usual time. Yesterday it did not open.
Source: newspapers

Newspaper Articles (7)

1. January 15, 1842 Wheeling Times and Advertiser Wheeling, WV

Article from Wheeling Times and Advertiser, January 15, 1842

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sage of Jun. 1°. OF VIOLENCE AGAIN IN CINCINNATI This city has been the scene of another Mub, of most violent and disgraceful character. I: commenced yesterday immediately after breakfast. and con. timed the greater part of day compassing in this time the destruction of the fixtures of the Citreinnati Bank, the Miami Exporting Bank, the Exchange Bank, and Longee's Brokerage, with most of the books, evidences of debt, and papers of each. The Miami Exporting Company exhausted all its means day before yesterday; and closed its doors before the usual time. Yesterlay it did not open.The Cincinnati Bank opend. bat soon fonad it could not possibly stand the "run" upon it, and posted up a notice that it had "suspended for twenty days. This done, an effort was made to elo-e the doors, but failed owing to opposition from without, and in a few minutes its ofliee W 18 taken possession of by the holders of Stabills. Violence commer ced almost immediately, and by half past nine is Lick its fixtures, books a d papers, were scattered through the streets, and the forcing of its voultsattempted. By this time the crowd had greatly encreased in size, and a few bold hands forced the door of the Miami Exporting Company. The win lows of this house wereinsiantly is illered down.its fixture pitched into the streets, and such of its books and papers ashad-not been removed. destroyed. Its vault was then forced, and its contents, com; bosed in parto de faced bills. and a little overtwelve hundred dullars in specie, made away with. There was at this time some cessation of violence; and a vigorous effort was made by the Sheriff, with the Protection squad of the Fire Companies. and ten members of the Citizens Guards under Captain Mitchell, to quell the disturbances, and disperse the mob. Captain Mitchell marched gailantly into the dense mass, now numbering several thousand persons, and as well supported by the small portion of his company that was with him. The Protection Company followed and look position in front of the Exchange Bank, which was threatened, but warded offattack by con inning to reddem. Captain Mitch ell Will so a resisted in his alleapts to preserve the remaining effects o the Cineianati and Miami Ex porting Company Banks from destruction. an GOM pelled to fire. On man was very severely wounded. and two or three others slightly. About the same time the Protection Company exchanged blows with that part of the mob which was pressing upon the Exchange Bank,and knocked several of them down It was soon foand. however, that the force opposed to the mob was entirely too small to offer anything like a successful resistance, and it was drawn off by the Sheriff Efforts were now made by scine of our oldest and most respected citizens, to disperse the crowd. by addressing it en masse, and appealing to those com posing it individually. Thesew ere entirely unsuecessful, and some of those who thus exerted them eives were much maitreated. AI the request of the Sheriff, Judge Este read the riet act and the Sher iff himself addressed the crowd. But all was unaviling. A rush was made for the Exchange Bink-(which had been redeeming its owa paper but refused to redeem the notes of the West Unio (broken) Bank. with which Mr Bates had formerly been connected)-it was violently assailed, and SUG. ridiled as completely as the others had been. The mob had now undisputed possession of th ground. and worked with deliberation. Being through with the Exchange Bank it crossed over the Sire to the Broker's Shop of Mr Lougee, who has lon been obn xious, through his costection with the checks of Otis, Arnold and Company. and other shinplasters. This was deliberately broken open and its contents scattered about and distroyed, a had been those of the three tanks The Mechanics' and Traders' Bank was run upon throughout the day. but redeemed all of paper that was presented-much of it with bankable finds. It was threatened, and after the destruction of Lougee's office surrounded by a fun us populate but escaped. Is flicers had it.e good judgment 1. keep it open after regluar hours. By doing this, an redeeming readily to the las it was saved. A number of brokers, for real or supposed con nection with Shinplaster Manufac ories hertofor were threatened, but not molested. Soon afte dark. the mob had dispersed; and by sixo'clock th the streets were clear and quiet. In the course of the day, seven or di ht arrest were made. These,however, were chile ly of per sons found with money or other effects of the Ban in the mob, or active participators in the outrages Baltimore may now hide her diminished head Cinemati is, beyend any competitor, entitled It the appellation of Mob City.

2. January 20, 1842 Richmond Enquirer Richmond, VA

Article from Richmond Enquirer, January 20, 1842

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DOMESTIC. THE BANK RIOT IN 13.-We throw 1 CINCINNATI. together COLUMBUS, (Ohio,) January we can collect swindling from the ever endured. scene to-day, of all disorder, the informati brought about With by a country as high overflow life can make ing any with people all the bounties of Nature peace that and plenty seldom sur extent rounding every happy and com man fire side, people, to an yet we find our of in the midst selves ever witnessed by any other set of as base swindlers a and most worst degraded ever went unhung world. in For the the last five Bank years, robbers- law has ages been of set the at open defiance have by these been exer the the morals Legislative of the power country of the these country, rag barons, in all its has re tions to but enforce the contempt honesty of in magistrates vagaries and of attorneys, the De ceived who denounced them as measures the mere and party legislation. made By in part mocratic this means party-party the whole Whig sustaining party has been these swinddire play most and iniquitous bringing upon the the country people-a these robbed, ling shops, We do hope that restrain their feel swindled, afflictions. and the ruined outrages people- of these will shinplaster outbreaks, gamblers justifiaings under be gained by these our courts of Nothing can think they are since stock, ble as many become may inadequate, if not and laughing punishment, be will much in justice bringing have these criminals lost to our to good justice name and heretofore Have but high moral character Public opinion is getting their attorneys, right on patience. No longer can bankers, outraged people.these subjects. Whig officers impose upon can an no longer be covered Their and high- handed measures cloak of "love for the people, every up under the deceptive of "hard money set their up against horrid crimes will no and honest their Democrat, cries who dares longer expose have its effect in end and alarming misdemeanors, the limid and buying the are corrupt. not yet at an We shall Patience have the n-the plenty more explosions to record, during the open ing of the spring.-Statesman. Bank Another blow up.- From that the these West rot shops paper rioting East, The Canton North and South, are comes going the down news to their lowest ten, degradation Bank up given We learn promises depths For the of third time has by the gentleman Canton just to from redeem that place the ghost. that notes it "of is a course, total wreck like all It the rest, from Biddle This Pretty down. all its is the Bank that was to resume times when these, the indeed! "spe. cic circular out. was The repealed Cincianati Gazette of the 12th has the Look following paragraph: has been felt at Pittsburgh, notes pro- deMoney Panic created here. The ceeding "A partly from the that State Bank of Illinois, Granville Shinplas preciated Farmers were, Bank of Canton, Cincinnati the former notes do, ters.- Bank, The latter do panic c not now could pass, be ascertained. Illinois says: and no na cause for Granville Bank the fell Cleveland per cent. Herald, the that the work Another wind up.- The Commercial Bank of of Lake closing Erie, up the people. -11. its in "We this banking city, learn operations. has also commenced Wind up or resume, say Jun.11.) (From the Cin. Company Enguirer of Bank- Tuesday Ect's Cincinnati Bank Miami Exporting Excitement Riot, &.C. vesterday reMiami Great Exporting Company and closed Bank its doors before This the paper fused payment The of its paper, business for the day. Bank was former usual time of of closing that and the Cincinnati remained closed, notice was in refused morning in the market. The upon the the latter, following when wordswas and a run posted upon suspended the door for 20 days of the An effort Bank, but "This Bank has made to close the doors time large, pre simultaneously had become by this of their the crowd, and which rushed in, demanding redemption pervented paper. persons in the Bank impossible fearing for to their withstand own the themselves, was gonal safety, The and finding leaving it the premises constantly altoget in in run,-run possession of the numbers crowd, and which excitement. were now The fur laid creasing, both in &c., of the street, concern where they were up. broken and shoulder, niture, hold of, counters, and thrown We into saw the one individual couple with the of be had mostly top of a book-cas moving on his off. Being replied asked if "yes, he his hand, whole, he &c. chairs got enough in to make him vouchers, under blanks, foot, books, with supposed torn so. in pieces, Papers, and and trampled indiscretion which caused. nothing Al were degree of excitement of deep wrong could effort have is being mad this but a sense moment, (half vault past or nine,) safe. an The crowd Mr. is Avery large to break under into great the excitement. made The an Sheriff, effort to be heard The and the midst, and carried into the street. is went into was picked up and Bank, standing only tw has coro old Miami but he Exporting barred Company and bolted, and some Lougee, wag upon as doors above, written the many say opposite on the of corner, violence door, has "poor is open others, shut and up, from from paying. apprehension, inability riddled to pay The Exchange The Bank crowd having completely doors of the Miami t 10 Cincinnati clock Bank, broke and took in the it through a steadily similar the Exporting Company of excited people Third has half deen way up to process. The Main mass street, from and there are many increasing is literally blocked The Miami up, Exporting left Compa in Fourth, the corners of Third. presume, had little other of value valuables had ny concern, managers. we Its books specie and and removal. other bank We pa by the been remove occasion for and sent flying open, n most likely through per saw there blank the was checks, air: probably but &c., they &c., no were all thrown .nk-bubbles out and paying mere We Bates d ly The Exchange demands bank have is still been of made West of Union Mr. paper- police and learn this Bank, that for the complied redemption with efforts per force. to quell The the dis any sympathy which constables have been have made persons some have been arrested, expressed The an order, unable but whether to say We hear among no the bystanders. the fraud O in are behalf of the sufferers, completely outraged violence by and de plunder the lesser looked upon as public mind of worthless is so banks, that evil. even This is truly a r, th disperse is plorable state of An things. effort has been and made otherwise to inducing confu o'clock.- by reading the riot act, was the clamor and and thos crowd disperse So great utterly them however, to that the to leave the portion of compelled attempt failed, A ground, nt engaged sion, in it were roughly handled. Company, having pad been somewhat Military the place, and in ing Citizen 's Guards, a few firemen, to some resistance se " raded, were led, of with the buildings after the crowd, and took possession were freely exchanged military. with It is stated now that bein, one inan has to e presume sounded-we It t, veral Blows shots been fired shot. by the The bring alarm the of fire whole IS of the fir of the frau in consequences suffer d corps together. Such are the deplorable the whole community excitement have of los or and wrong, of that shinplasters. are trampled In the under We much foot-pro fea e at and by means suffering, destroye the and laws perhaps life lost who may ha 4 perty that We the earnestly end is not entreat these yet. disorderly the good people proceedings, the authorities- to de n sist-to been concerned regard the in laws. their homes, respect and set their faces, of order lik well by retire peaceably to further transgressions of shinplasters as in their every good citizens, means against of the issuing suppression What is reasonin gained in resort such to violence proceedings question We implore to himself. have The to proper grea by individual and to put this vouchers of these be banks utterly impossible, notes consequence, extent, ty, books been destroyed; for them to it pay may any portion of their

3. January 20, 1842 Richmond Enquirer Richmond, VA

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frauded,----- you redressing yourselecy? Are you righting your injuries by these means? Are you not of rather destroying the protection of your own property -the protection of the laws,-and giving countenance e and support to a spirit that regards neither property, law nor life? y We have penned the above paragraphs in great haste. At this time, (one o cleck) it is ascertained that one man had his leg broken, and one or two others slightly wounded-no one killed. It is stated that the crowd have possession of the buildings. The Exchange Bank has been taken possession of, and completely riddled after the fashion of the others. We have not learned whether it had stopped payment or not. The Mechanics and Traders Bank still continues payment. It is said to have but little paper out. Attempts are being made to get out a strong force of the military, and dis. perse the crowd; but such is the feeling among those who compose the military, that we know not how it is to be done. Apprehensions are expressed of further violence to-night, which we trust may prove unfound. ed. At present, however, the multitude appear to have complete control. Half-past ne.-The Office of Lougee & Co., has been broken open and gutted. The crowd has much increased, both in numbers and excitement. We earnestly hope that here this violence may be stayed. Whether such will be the case or not, remains to be seen. An exceedingly angry spirit has been caused by the ill-advised attempts to suppress the disturbance by military force. The military, we hear, were compelled to leave the ground, and made to take refuge in the Mayor's office. We must here close our account of these unhappy proceedings, as the paper must go to press. Pray God we may not have worse consequences to record to-morrow. [From the Cincinnati Daily Message, January 12.1 MOB VIOLENCE AGAIN IN CINCINNATI This city has been the scene of another Mob, of a most violent and disgraceful character. It commenced yesterday immediately after breakfast, and continued the greater part of the day, compassing in this time the destruction of the fixtures of the Cincinnati Bank, the Miami Exporting Bank, the Exchange Bank, and Lougee's Brokerage, with most of the books, evidences of debt, and papers of each. The Miami Exporting Company exhausted all its means d before yesterday, and closed its doors before the usual time. Yesterday morning it did not open. The Cincinnati Bank opened, but soon found that it could not possibly stand the "run' upon it, and posted up a notice that it had "suspended for twenty days. This done, an effort was made to close the doors, but failed, owing to opposition from without, and in a few minutes its office was taken possession of by the holders of its bills. Violence commenced almost immediately, and by half past nine o'clock its fixtures, books, and papers, were scattered through the streets, and the forcing of its vaults attempted. By this time the crowd had greatly increased in size, and a few bold hands forced the door of the Miama Ex porting Company. The windows of this house were instantly battered down, its fixtures pitched into the streets, and such books and papers as had not been removed, destroyed. Its vault was then forced. and its contents, composed in part of defaced bills, and a little over twelve hundred dollars in specie, made way with There was at this time some cessation of violence: and a vigorous effort was made by the Sheriff with the Protection squad of the Fire Companies, and ten meinbers of the Citizens Guards under Captain Mitchell, to quell the disturbances, and disperse the mob. Capt. M. marched gallantly into the dense mass, now numbering several thousand, and was well supported by the small portion of his company that was with him. The Protection Company followed, and took position in front of the Exchange Bank, which was threatened, but warded off attack by continuing to redeem. Captain Mitchell was soon resisted in his attempts to preserve the remaining effects of the Cincinnati and Mia. mi Exporting Company Banks from destruction, and compelled to fire. One man was very severely wounded, and two or three others slightly. About the same time the Protection Company exchanged blows with that part of the mob which was pressing upon the ExIt change Bank, and knocked several of them down. was soon found, however, that the force opposed to the a mob, was entirely too small to offer any thing like successful resistance, and it was drawn off by the she. riff Efforts were now made by some of our oldest and most respected citizens, to disperse the crowd by ad. dressing it en masse, and appealing to those composing it individually. These were entirely unsuccessful, and some of those who thus exerted themselves were much maltreated. At the request of the Sheriff, Judge Este read the riot act, and the Sheriff himself addressed the crowd. But all was unavailing. A rush was made for the Exchange ank--(which had been redeeming its own paper, but refused to redeem the notes of the West Union (broken) Bank, with which Mr. Bates had formerly been connected)-it was violently assailed, and soon riddled as completely as the others had been. The mob had now undisputed possession of the ground, and worked with deliberation. Being through with the Exchange Bank, it crossed over the street to the Broker's Shop of Mr. Lougee, who has long been obnoxious, through his connection with the checks of Otis, Arnold and Company, and other shinplasters.This was deliberately broken open, and its contents scattered about and destroyed, as had been those of the three banks. The Mechanics and Traders' Bank was "run" upon throughout the day, but redeemed all of its paper that was presented-much of it with bankable funds. It was threatened, and after the destruction of Lougee's office surrounded by a furious populace, but escaped. Its officers had the good judgment to keep it open after regular hours. By doing this, and redeeming readily to the last, it was saved. A number of brokers, for real or supposed connection with Shinplaster Manufactories heretofore, were threat ened, but not molested. Soon after dark, the mob had dispersed; and by six o'clock the streets were clear and quiet. In the course of the day, seven or eight arrests were made. These, however were chiefly of persons found with money or other effects of the Banks in their possession, and not of the ringleaders of the mob, or active participators in the outrages. Baltimore may now hide her diminished head. Cincinnati is beyond any competitor, entitled to the appellation of Mob City. At held in the Clerk's

4. January 20, 1842 The Ohio Democrat New Philadelphia, OH

Article from The Ohio Democrat, January 20, 1842

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GREAT EXCITEMENT. VIOLENT OUTBREAK OF POPULAR FEELING. This morning when it became known generally that Miami Bank had failed, the sovereign people began to assemble in great numbers before the Banking houses. The officers of the Bank of Cincinnati, fearing a run upon that institution, and of violence posted up a notice on the door, 'Suspended for 20 days.'-The crowd, as soon US this was discovered, rushed into the Bank and broke every thing they could lay their hands upon; threw the books, &c. into the street-lore out the vault (which was emply, except books,) and destroyed the whole. The cry was then raised 'for the old cow,' alias the Miami Exporting Company, the banking house of which is the second house above the Cincinnati Bank. The 'people' then entered the Miami bank and did for what was left of the effects of that institution 'even as they had done unto the other.' Every thing of value was thrown into the street, amid the shouts of the assembled thousands, and destroyed. The excitement is very great, and where or when the violence will end we know not. While we now write (noon) the work of destruction is going on. We have no time to commeut upon these extraordinary proceed= ings. To-morrow we shall give further particulars. Sheriff Avery accompanied by four or five constables appeared at the scene of action about eleven o'clook, but the only result of his exertions, that we have heard of, was that of knocking down a sick man, with a blow of a club, who happened to be passing along Third street at the time. It is said that the Miami Bank had made an assignment of its effects and debts to the Frank lin Bank this morning early.

5. January 22, 1842 The Radical Bowling Green, MO

Article from The Radical, January 22, 1842

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CINCINNATI RIOT. The correspondence of the Louisville Journal gives the following conclusion of the late excitement and riots in Cincinnati: CINCINNATI, January 12, 1842. My letter yesterday closed with the attack on the Miami Exporting Company. The bank closed on the previous afternoon, iveminutes before the usual time; having redeemed all the paper presented, and was exhausted. In the evening it made an assignment. The next morning, the notes of the Miami and of the Bank of Cincinnati having been refused in market, the holders began to collect at the doors of their offices, and when the Cincincinnati opened a regular run commenced. The officers soon saw that they could not continue to pay, and posted up on the door a placard, with the words :-"This Bank has suspended for twenty days," and attempted to close the doors. This was resisted by the crowd, which thronged in and the officers of the bank retired leaving the whole concern in the hands of the mob, which then commenced the work of destruction, throwing counter, books desk, papers, and money into the street. Having finished the Cincinnati Bank, the mob assailed to Miami, which had not opened, and served it in the same manner. The vault was broke open, and a large amount of bills taken out, together with some specie. Several of the men, having pocketed some thousands of paper, were arrested as they were making off. During all this time, the office of John Bates, the Exchange Bank, was crowded with the holders of that paper, which was promptly redeemed. A number of persons, however, appeared with West Union Bank paper, (a bank which failed some time since, but with which Bates had been connected, and to whose paper he had given currency, )and demanded with threats its redemption. This was uniformly refused, except by one of the clerks, who, for a short period, from intimidation, redeemed some of it. Whilst these things were going on, several at tempts were made to stop them. S.P. Chase, Esq., the owner of the property, assisted by the sheriff and two or three others, placed themselves between the mob and one of the banks, but were compelled after encountering with great firmness the violence of the assailants, to withdraw. The next effort was made by Charles Fox, Esq., who called on the orderly citizens to support him, and proceeded to the very midst of the rioters to read the riot act. He was imediately pulled down, and struck at from around him, but covered by Wm. M. Corry, Esq. and Mr. Buckingham, at much hazard, until borne back from the crowd. The sheriff rode through the throng, commanding them to disperse. There were five thousof them, altogether,but perhaps not more than one hundred active operators. He was answered with threats, which he treated with defiance. The next attempt to suppress the disorder was with military force. A party of the Citizens' Guards, in uniform. headed by Captain Mitchell, advanced with great gallantry with bayonets fixed, and swept the crowd from the pavement on Third street and on Main, and formed in front the places of attack on Main. The mob retreated into the street, and commenced an assault on the troops and a considerable number of the Fiue Guard, which had followed to sustain them with the long staves of that corps, (which is designed for protection in time of fire.) The mob hurled the fragments of the desks and counters, besides brick-bats and stones, at the troops, and were answered with the discharge of one or two muskets. The troops and fire guards were then commanded to retire, and were followed by the mob with missiles, which were again answered with the discharge of a few muskets. One of the mob had his leg broken, and two or three otherwise wounded by the fire, and several were knocked down by the staves of the Fire Guard. The troops were considerably bruised. The confliot between the troops and the mob, in front of Bates' office, compelled the officers of to as a that safety. ing through concern The mob their retire, then windows, commenced the flying endangered missils, regular dash- their destruction of everything within; and having finished, next proceeded to destroy the office of Lou-

6. February 2, 1842 The Camden Journal Camden, SC

Article from The Camden Journal, February 2, 1842

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us take by way of illustration, the the case of a student. He commences study of the dead languages, but presently a friend comes and tells him that he wasting his time, and that instead of obhe had much better employ himself in new ideas. solete words, acquiring the He mathe- chan. ges his plan and sets to work at Then comes another him with a grave ann asks matics. sapient friend, face, who whether he intends to become a professor in a college; because if he does not, he the is his time, and that for of life, common business misemploying arithmetic science. He enough of mathemetical throws up his Enclid and addresses himself to some other study, which in its turn is again relinquished onsome equally wise & thus hislife is spent his You cannot ging suggestion; plans. but perceive in chan- ef the folly of this course; and the worst fect of it is the fixing on your mind a habsufficient of itself to blast your the it ofindecision, fairest prospects. Now having take tacourse wisely but firmly; and ken it, hold upon it with heroic resolution and Pyrenees will bend bewhole empire at feet, while and fore lie the you-the Alps your those of who learning set but stopped to will out with you, the change their unplans, are yet employed in very business of changing their plans. motto be perseverance. profitable Letyour Practice of its it and you will be convinced upon value by the distinguished eminence to which it will conduct you. ? MOB IN LOUISVILLE, Ky.-The disgraceful mob which broke out at Cincinati, has extended to Louisville. We copy the following from the Louisville Advertiser of the 13th inst. Riot.-Much alarm was causd in this city the receipt of the news from Cincinati on yesterday morning. The fact of the destruction of the banking house of the Miami Exporting Company, of which Mr. Lougee was understood to be principal manager, and his exchange office, directed attention to the establishment of Lougee and Moore, ('Louisville Savings Bank') on the corner of Wall and Water streets in this city. It appears that Mr. Moore, in anticipa- of tion of trouble, withdrew every thing yesterday morning, and concealed him. at also. The doors not being open self usual business hour, increased assemble- the interest the felt, and a crowd soon But little excitement existed-nearly see ed. all being more spectators who came to were was to be done. There the several, what however, gathered round doors, who appeared bent on mischief. few minutes past ten' a shutter was a forced At a from one of the windows, when soon followed. The window was the doors, when the crowd ed books, letters, papers, chairs, the tables, and soon, in fact, the entite contents of office were flying into the streets amidst shouts of the mob. No effort was made to arrest these proceedings, until Mr. Turner. our gallant efficient City Marshal, arrived, who got into and the office and commenced tumulthe principal rioters into the street. ing Being aided by Messrs. Colgan Coske, and and others, the room was soon cleard, quiet, in a great degree; restored. We have not ascertained whether the destroyed were of value, but we papers not, as such were doubtless rcpresume moved with the funds. The entire loss cannot be great. We are persuadedEthat, had Mr. Moore opened his office at the usual hour, and attended to his business in the ordinary there would have been but little excitement way, and no violence. A run might have been expected under the circumstan. but the fear of being called upon to ces, redeem his paper, ought not to have drihim from his post, We have reason ven to believe that he had bad advice from Cincinnati! But notwithstanding his ill-advised course, there was no excuse for the outrage committed by the mob. We can conceive of but few cases in which a resort to mob-law can be excused, or even tolcommunity: and this

7. October 23, 1875 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, October 23, 1875

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# THE CURRENCY. A PLEA FOR THE GREENBACK. To the Editor of The Chicago Tribune: CHICAGO, Oct. 20. In your page of the 2d instant I demonstrated the "legality of greenbacks during their existence," and showed how the Federal Court, by decrees, had settled the principle of law in reference thereto, that "whatever is necessary is authorized," and I now say that the constituted authorities, backed by Congress and the people, have furnished us a currency for which the entire nation is both liable and responsible, -a security attaching to no other circulating medium previously issued in the United States of America. In illustrating this, let me group the facts bearing on it, within my own time and recollection. The charter of the last United States Bank being about to expire, Congress, in 1832, passed an act of renewal which Gen. Jackson vetoed. It subsequently obtained a charter from Pennsylvania: on the popularity of Nicholas Biddle, its President, flourished on a big scale for a time, but ended in utter ruin and bankruptcy. Soon after the veto the Government deposits were placed in private-stock and State banks throughout the country, which, discounting freely to the public, led to speculation in endless variety. All sorts of operations were fostered, and the entire community ran headlong into debt for wild land, town-lots, timber, mulberry-trees for silk-worms, fancy hogs, etc., etc. This continued without check until 1836, when the Government issued the then-famous "Specie Circular" to the Land-Offices, requiring all payments in gold and silver. During that year, as the first alarm came the failure of the Bank of Maryland, in Baltimore, with an extended circulation and deposit account. It was mobbed by its creditors, the riot lasting several days, and closed by the tearing-down of the elegant brick mansion on Monument Square, worth thousands of dollars, owned by Reverdy Johnson, the great lawyer, he being a stockholder, as was claimed, of said bank. [Let me here note, as a warning to all cities that encourage mobs by a loose system of police-regulations, that the City of Baltimore was sued and compelled to pay Mr. Johnson for his property.] From this date, failures continued to be numerous; and, in May, 1837, there was a general suspension of specie-payments by all the banks throughout the country. This is known in history as the panic of 1837. Business everywhere was in a chaotic state, and so continued, without any apparent mode of relief, until 1839, when the banks, by concerted action, made an effort to resume; but, after a brief period, all again suspended, except the New York and Eastern banks, and those of New Orleans, Charleston, Savannah, and a few other points. Thus a standard of value was established for cotton, naval stores, pork, and produce, at the leading points East, North, and South, but leaving the West, so far as its home transactions in trade, in a terrible condition. Then commenced the wild-cat-currency era,-"red-dog," "blue-pup," "Brandon," and all manner of paper-circulation. In the meantime, the Van Buren Administration, which was nearing its close, was held responsible by the people for good times which never came; and the community, with one accord, swept the country with "hard-cider" and "coon-skins," electing "Tippecanoe and Tyler too," in 1840. This was the first inroad made into the old Democratic ranks, virtually, since the retirement of Washington, except the memorable Adams and Clay bargain in 1825. The new President took charge of affairs, and Congress in 1841, in special session, passed at once the Bankrupt law, following with a United States Bank Charter, which was vetoed by Tyler, Harrison having died shortly after his inauguration. The Ohio and Indiana banks were required by law to resume on the 4th of March, 1842, which was obeyed by the few solvent ones in Cincinnati, Cleveland, Columbus, Dayton, etc., and by the State Bank and branches of Indiana, but the greater number, with their thousands of debtors, closed their affairs in a Bankrupt Court, the Bank of Cincinnati and the Miami Exporting Company's being mobbed by an indignant people, claiming to be swindled creditors. As time passed on, Chicago and the then Far West began to grow into importance, and the Wisconsin Insurance Company, of George Smith and Alexander Mitchell, and like institutions, with some chartered banks of Illinois, -mixed largely with Indiana and other wild-cat stock-banks, -formed the currency in the States bordering on and doing business with Chicago, Toledo, Detroit, Cleveland, and other places, and this state of things continued until the next big warning, in August, 1857, when the "Ohio Life & Trust Company" astounded the country by its proclaimed insolvency; following which closely came the failure again of the banks in New York City and throughout the Union. This last general suspension virtually wound up the attempt at furnishing a circulating medium for the country, so far as there was any united effort to that end by the few solvent banks, scattered as they were wide apart throughout the Union; and the various institutions, wherever situate, limped along through the panic of 1857 to 1862, and this brings us down to the beginning of the greenback and bond era, made necessary by the War. Special attention is called to the fact that, during the past forty years, the longest continuous period that specie-payments have been maintained is eighteen years, -1839 to 1857, -and this only by a few highly-favored institutions in the principal seaports, which from their position dictated to the balance of the country; and yet they yielded like the veriest wild-cats, when their solvency was questioned by a demand for payment by their creditors. Such has been the result of all the currency furnished to this great American people down to 1862, which was based on State, real-estate, and individual security, and in the palmy days of specie-payments, which, in addition, one-third of the amount of circulation was in gold and silver. But we have seen that, when the confidence of the community was gone or temporarily withdrawn from any institution, or, as in the great panics, from all of them, down they went. Our entire Government circulation (greenbacks and National Banks) is called $800,000,000; our population, 45,000,000; making less than $18 to each person, and not to exceed $30 to each voter. Surely, we can all comprehend the safety and convenience of such a system. I have refrained from all dogmas as to the science of banking and the art of maintaining specie-payments without the specie, and confined myself to the history of the various currencies used by this great trading country since 1830, -all within my own personal recollection; and repeat, what I started to demonstrate, that our greenbacks, as a currency, have a backing, legal and substantial, which never attached to any other previously issued in the United States. N. P. I. # "GREENBACKS-ONE HUNDRED." To the Editor of The Chicago Tribune: CHICAGO, Oct. 22. The Inter-Ocean heads the news of the day, in its editorial items, with the information that, "At the Board of Trade (Chicago), greenbacks opened at 100, and closed at 100." Now, let it report that in London, Paris, Vienna, Berlin, St. Petersburg, Constantinople, and in all the commercial cities of the Orient, and at San Francisco, "Gold opened at 100, and closed at 100,"