Commercial Bank of Lake Erie

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: November 22, 1844
Location: Cleveland, Ohio (41.499, -81.695)

Metadata

Model: gpt-5-mini
Short Digest: 9e22b3af

Response Measures

None

Description

Newspaper reports state the Commercial Bank of Lake Erie is fully closed with a distribution of assets to stockholders and liabilities to be met by Joseph S. Lake (who gave bonds). No article describes a depositor run; this is a failure/closure reported in mid-1845. I conservatively set bank_type to unknown because the name does not explicitly indicate 'state' or 'national' in this pre-National Bank era.

Events (1)

1. November 22, 1844 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank affairs were 'fully closed' and assets distributed to stockholders (creditors/liabilities outstanding); indicates insolvency/failure rather than a rumor-driven run or government suspension.
Newspaper Excerpt: The Cleveland Herald states that the affairs of the Cominercial Bank of Lake Erie are now fully closed, and a distribution of its assets has been made to the stock. holders of nearly sixty cents on the dollar. The liabilities of the Bank, not paid by the Special Commissioners, have been assumed by Joseph S. Lake, of Cleveland, who has given bonds for the payment of all the liabilities which will be presented within five years from the 22d of November, 1844.
Source: newspapers

Newspaper Articles (2)

1. July 12, 1845 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, July 12, 1845

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Article Text

COMMERCIAL AND MONEY MATTERS. (For Commercial and Money M atters, see Last Page.) FRIDAY, P. M. The sales at the Stock Board were moderate, and prices at the close were rather better. Holders of good stocks are firm. The demand for Government 6s was good and 114, ex. coupon, was bid for a large amount.We understand there is a considerable order in market for Goverment 68 for English account. Sterling Exchange is firm but the demand is moderate, We quote 9% for best bills. Francs 530@5 27). The Brooklyn and Jamaica Railroad has declared a dividend of four ₽ cent, payable on the 25th inst. The Auburn and Rochester Railroad Company a semi-annual dividend of four P cent. payable on the 1st of August. The Cleveland Herald states that the affairs of the Cominercial Bank of Lake Erie are now fully closed, and a distribution of its assets has been made to the stock. holders of nearly sixty cents on the dollar. The liabilities of the Bank, not paid by the Special Commissioners, have been assumed by Joseph S. Lake, of Cleveland, who has given bonds for the payment of all the liabilities which will be presented within five years from the 22d of November, 1844. The stock of the Northern Railroad has all been trken up, the officers are to be chosen next week, and operations on the road will be commenced without delay. About $700,000 was taken in Boston, and the remainder on the line of the road. The engineers and parties that are engaged in surveying the route for the Canandaigua and Corning Railroad, have nearly completed their survey, and will soon make a report. Sales of Stocks at Boston, July 10-At the Brokers' Board.-50 shares Long Island Railroad, solOds. 69; 50 do do, 69: 50 do do, 8010ds, 681 : 100 Wilmington R. Road, 131; 100 do do, 13 100 do do, bolw, 13 50 do do do, 13. solw: 1250 do do, 13: 25 Norwich and Worcester Railroad, 701; 75 do Reading Railroad, 281; 1 do Hamilton Manufacturing Company, 105g: 125 E. Boston Company 13t. [By Stephen Brown,] 5 shares New-England Bank, 1041: 4 Lowell Railroad, 191@19} ₽ cent adv 5 Portland and Saco Railroad. 1031; 50 Boston and Worcester Railroad, 118@118} : 20 West. ern Railroad, 102) 25 Eastern Railroad, N H. 108: 25 Boston and Sandwich Glass Co, div off, 891 4 Hamilton Manufacturing Co, 51@51 P cent adv: 49 Boston Exc Co. new. $460; 4 do do, old, div off. $460@465; $1000 Maine Six ₽ cent, 1847, P centadv. On Thursday at the Brokers' Board, at Boston, over 1600 shares of Wilmington Railroad stock were sold at from 8131 to $13,"(under the influence of a panic.) This stock has been much depressed recently, in consequence of a false rumor. that the semi-annual interest on the two millions of bonds alleged to be due on the 1st of Augustwould not be paid. The interest due at that time is $24. 000, and it is presumed that it will be promptly met as heretofore. The gross earnings last year were $531,715 and the expenses were $274,425-leaving $257,290 to pay the interest on $3,203,892. Shares issued to stockholders 29,332 at $50 1,466,600 590,250 Do. to pay for Newcastle R. R 13,805 at $50 43.137 2,156,850 Total number of shares 560,781 The same number of shares at $13 each is $1,596,069 The discount is consequently There was a rise of $3 a share in this stock yesterday at Philadelphia. The reason given for the rise was the rumor that an arrangement had been effected between the Railroad and Chesapeake and Delaware Canal, which would allay opposition in the carriage of passengers.This rumor, however, was subsequently contradicted, and the consequence was, the stock closed heavy at 14}. The following was the Commerce of Boston in June last, as compared with June, 1844: 1844 1845. Value of Imports for June, Dutiable 1,224,529 $1,073,535 166,807 Free 284,315 24,478 60,467 Specie Total 1,264,820 1,569,311 Excess in June, 1844 $304,491. 1845. Amount of Duties for June, 1844. American 8260,030 03 $311,287 40 54,333 52 106,041 8 Foreign Total $314,363 55 $417,329 9 27 $102,965 7 Excess in June, 1844 The

2. January 24, 1846 The Spirit of Democracy Woodsfield, OH

Article from The Spirit of Democracy, January 24, 1846

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Article Text

# FOR GOVERNOR OF OHIO, DAVID TOD, of Trumbull. # THE CONSTITUTIONAL CURRENCY. In our paper of last week, we published the proceedings of the Democratic 8th of January Convention, which put in nomination, as the Democratic candidate for Governor of Ohio, the able advocate of equal rights-DAVID TOD. On the first page of to-day's paper will be found the proceedings of the Democratic Editorial State Convention, for which we bespeak an attentive perusal. The democracy of this county are well aware, that, when the democratic party of Ohio raised the "bank reform" banner, in 1838, they were triumphantly victorious at the ensuing elections. The people were well satisfied, from past experience, that the old villanous banking system needed much reformation, in order to secure them from the almost daily loss of thousands of dollars; a loss resulting as well from the total failure of these rascally shaving shops, as from a partial depreciation in the nominal value of their "promises to pay." In accordance with the views and doctrines, at that time advocated, the democratic members of the General Assembly, at subsequent sessions of the Ohio legislature, passed laws which, it was supposed, would have the effect to make bankers honest men; or, in other words, to prevent the old system of bank swindling of "contractions to-day, and expansions to-morrow"- from ever being again fastened upon the people of this State. Laws were enacted making stockholders liable in their individual capacity for the debts of a bank, in case of failure, as well as other laws equally salutary. When these laws were passed, it was thought that the people would, thereafter, be secured from losses by bank failures, and bank suspensions; and that all banks thereafter chartered would have engrafted in their charters these salutary provisions. But how have the people been disappointed in their hopes and expectations? Would bankers accept of charters with the individual liability clause? No. The determination of the moneyed aristocracy of this State was to grind down the people by enormous taxes, by bank failures, and bank suspensions, until they should be brought to tamely submit to any banking proposition that might be brought forward. The result has been, that by "deception, corruption, and accident," the bank power of the State has once more gained the ascendency in our legislative halls. Immediately, all the salutary measures, demanded by the people, were repealed; and a system of banking enforced upon the people only equalled by the old defunct banks of Gallipolis, West Union, and a host of others. Who does not recollect, and, not only recollect, but, by experience, know the thousands, and we might safely say millions, lost to the people of Ohio, by the explosion of such dens of iniquity as the Bank of Cincinnati, German Bank of Wooster, Bank of Steubenville, Bank of Granville, Bank of Urbana, Bank of Gallipolis, Bank of West Union, Miami Exporting Company, new Bank of Circleville, Lebanon Miami Bank, Bank of Cleveland, Commercial Bank of Lake Erie, Commercial Bank of Scioto, and a long list of others in this State, together with the losses sustained by the failure of the banks of the States of Illinois, Michigan, and others; and we might particularly mention as "last though not least," the Bank of St. Clair, familiarly known as the *Red-dog* bank? Have the people, we ask, forgotten all their losses occasioned by the failure of these institutions? No. They feel that forbearance will soon cease to be a virtue; and will, ere long, speak in tones of thunder to those nabobs of the bank-paper-mills, whose only rule of action seems