Bank of Gallipolis - Gallipolis, OH

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: January 18, 1841
Location: Gallipolis, Ohio (38.810, -82.202)

Metadata

Model: gpt-5-mini
Short Digest: 35dbb2f6

Response Measures

None

Description

The notice (dated January 18, 1841) announces a suspension of business due to discovery of large fraud and over-issue by former officers. The article describes internal corrective actions (removal of president and cashier) and efforts by directors to remedy the situation, suggesting an intent to resume operations rather than immediate permanent winding up. There is no mention of a depositor run.

Events (1)

1. January 18, 1841 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Discovery of an unprecedented system of fraud by former officers and a large over-issue of the bank's circulation; officers removed by directors.
Newspaper Excerpt: It becomes our painful duty to announce to the public that in consequence of an unprecedented system of fraud, practiced by the former officers of this institution, and which has just come to light, we have been compelled to suspend business.
Source: newspapers

Newspaper Articles (1)

1. February 16, 1841 Democratic Standard Georgetown, OH

Article from Democratic Standard, February 16, 1841

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Article Text

TO THE PUBLIC. BANK OF GALLIPOLIS, January 18, 1841. It becomes our painful duty to announce 10 the public that in consequence of an unprecedented system of fraud, practiced by the former officers of this instr tution, and which has just come to light, we have been compelled to suspend business. There can be no doubt that a large over issue of the circulation of this Bank has been made, and most ingeniously concealed from the Directors, until within a few days past. The extent of the fraud is not yet ascertained, but it is feared that it will prove to be enormous. We have every reason to apprehend, that agents are still traveling over the Western country, engaged in putting these fraudulent issues into circulation, and we deem it ourduty to warn the public against them. As soon as suspicion was excited in the minds of the Directors, the late President and Cashier were promptly removed, and the Board of Directors are now doing all in their power, not only to ferret out the frauds which have been committed, but to alleviate the sufferings of the innocent and unfortunate vic. tims. Very Respectfully, Your obedient servants, L. B. MENAGER, President. J. J. COOMBS, Cashier.