17492. Granville Bank (Granville, OH)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
February 1, 1842*
Location
Granville, Ohio (40.068, -82.520)

Metadata

Model
gpt-5-mini
Short Digest
df5f6778

Response Measures

None

Description

Multiple contemporaneous newspaper accounts (Feb 1842) report the Granville Bank was run upon, shut its doors, failed and 'gave up a charter' during the Ohio resumption panic. The run appears driven by the state's Resumption law and general panic about banks (policy-driven contraction), and the bank did not reopen.

Events (3)
1. February 1, 1842* Other
Newspaper Excerpt
forced to yield and give up a charter which was deemed valuable because it was perpetual
Source
newspapers
2. February 1, 1842* Run
Cause
Macro News
Cause Details
Panic and pressure from Ohio's Resumption law and statewide banking panic precipitating heavy withdrawals
Measures
Bank attempted to meet engagements and redeem notes ($130,000 redeemed) but ultimately shut doors; no successful liquidity measure reported
Newspaper Excerpt
Two or three days since the Granville Bank, after ... being run, $130,000 ... redeemed it has been forced to yield and give up a charter
Source
newspapers
3. February 1, 1842* Suspension
Cause
Macro News
Cause Details
Closure/suspension driven by statewide resumption enforcement and resulting panic/withdrawals
Newspaper Excerpt
The Granville Bank shut its doors first, after faithful efforts to meet its engagements
Source
newspapers

Newspaper Articles (5)
1. February 7, 1842 The New York Herald New York, NY
Article from The New York Herald, February 7, 1842

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to her finances, in a most disgraceful situation. Her illicit intercourse with the suspended banks has ruined her reputation, and even now, when the eyes of the community are open to the true state, attempts are still making to sell to the banks a new term of dishonor for the means of meeting temporary wants. In February, 1840, two years since, the State failed and paid its interest finally only by selling to the banks the right of suspension for the money; since then the State has managed to make partial payments of its debts by continuing its disgraceful shinplaster operations. The result is, that after staggering on two years, both the State and the Banks are ruined and yet "ignorant in spite of experience" the executive officers announce semi-officially that they "have great hopes of being able to borrow some money of the Banks!" If they do so the condition must necessarily be longer suspension. The banks cannot resume until the State pays them. Where is the State to get the money? If taxes, simply to pay the interest, are thought to be too onerous, how can sufficient be raised both to pay present interest and arrearages also? It is now two years since the State failed the first time, and the borrowing system has been continued. Is the debt any lighter now? Are the people any more able or willing to pay taxes now than they were then? -Assuredly not yet, the Governor has the absurdity to talk of more borrowing, more suspension, and further postponement of taxation. It is to be hoped that the Legislature will take the proper course, enforce the immediate resumption of the banks, stop all borrowing, levy taxes amply sufficient to meet all demands upon the State, and, if necessary, pass the February dividend altogether, until the taxes can be collected. The spirit now abroad in the community will tolerate no other course and the people will hold strictly accountable, in the words of Mr. Biddle, "those petty politicians who insult them by not daring to ask them to pay their honest debts." The bill now before the Legislature, enjoining immediate resumption, will probably become a law, in consequence of which the banks have postponed for another week the operation of their late arrangement, by which they were to pay out their own notes to-morrow. ### The following is a synopsis of the Bank Bill: Sec. 1. Provides for an immediate resumption of specie payments. 2 That the State Treasurer shall not re-issue the notes under the revenue law of last session, but shall receive them for tolls, taxes, &c., the Auditor General to keep an account of the notes so received and marked as cancelled. 3. The banks accepting the law of last session to be relieved from the obligation to receive the notes so issued by them, in payment of debts, or to pay specie for them, but when the same shall be presented in sums of one hundred dollars, to draw an order on the treasurer in favor of the holder, who will receive State six per ct. stock for the amount. 4. A refusal to pay specie to work an absolute forfeiture of charter, and trustees to be appointed by the proper court. 5. The trustees to give security, &c. and public notice of their appointment. 6. The trustees to make out an inventory of the liabilities and assets of the suspended banks within twenty days. 7. The trustees to be discharged upon final settlement of the affairs of the bank. 8. No bank to be permitted to pay out any but its own paper-a violation of this section to forfeit the charter. 9. Monthly settlements to 'be made by all the banks, and the balance due each other to be paid in gold and silver. 10. No notes to be issued under five dollars. 11. Proxies abolished, except of persons residing more than twenty miles distant, sick persons, or females-and no stockholder whose stock is hypothecated to be allowed to vote at elections of officers. 12. Quarterly returns to be made. 13. An annual list of deposites on unclaimed dividends to be published. 14. The banks all to receive their own notes in payment of debts due to them. 15. Former laws inconsistent with this repealed. In another column will be found a letter announcing the failure of the Granville Bank of Ohio. This institution did not make its returns at the last report. The following is a return of the Bank of Virginia :- COMPARATIVE VIEW OF THE STATE OF THE BANK OF VIRGINIA AND BRANCHES, ON THE 1ST JAN, 18iL, AND 18T JAN, 1842. Jan. 1. 1841. Jan. 1. 1842. Increased Reduced

2. February 10, 1842 New-York Tribune New York, NY
Article from New-York Tribune, February 10, 1842

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95 Asa Whitney Jonas Earll, Jr 91 S. Newton Dexter James Hooker. David Hudson. David Bisseil .92 George H. Boughton Benjamin EROS. 192/Samuel B. Ruggles: George W Little .92 Henry Hamilton Stephen Clark Whereupon the candidates agreed upon by the Loco-Foco Members in Caucus were all duly elected. The bill repealing those sections of Anact to prevent Illegal Voting* &c. require a Registration of Voters has passed the Assembly. The Senate. by a party vote, has refused to adjourn on the 31st of March. VIRGINIA Democratic State Convention was held last week at Richmond, Va. The Address that the of Specie to the next Payments near proposes by meeting the Banks of of the Resumption that State Legislature-in be postponed December ! Ex-Congressmen Dromgoole and Gen. T. H. Bayly, two eminent Sub-Treasury champions-the latter turned Loco-Foco from pure love to the Hard Money policy-were prominent advocates of this indefinite postponement. Gen. Bayly stated, during a recent debate on the Retaliatory Law of the last Legislature imposing certain onoreus and vexatious restrictions on the ships and commerce of this State, that a correspondence had been carried on with certain Loco-Focos of this State, who had excused their party from attempting to overrule Gov. Seward's course in regard to Virginia's claim of alleged fugitives from justice, on the pretext that Gov. S. would not heed were to pass any. We presume their resolutions they dread will of if also the they be Governor's restrained, by a corresponding Veto, from repealing the law granting Trial by Jury to persons charged with owing themselves to other people. The verb to shuffle' is destined to be conjugated through all its moods and tenses by our new masters at Albany this winter. DR. LARDNER'S LECTURE.-The Lecture of Dr. Lardner at the Park Theatre last evening was remarkably well attended, and was, as all of hix been, highly interesting and instructive. Its main subject was the Planets, and its prominent features*were, of course, essentially the same as those of his_former lecture on the same topic, which we have already published. But its order. language and illustrations were SO different as to make it entirely a different discourse He brought forward several very beautiful and striking illustrations of the method of estimating the distances, magnitudes and weights of the several bodies of the Solar System, and alluded in a very interesting manner to the wonderful discoveries of LINNEUS, fortified by the investigations of DECANDOLLE, that flowers have cycles corresponding precisely with the alternation of day and night, closing and opening unvaryingly as the Earth turns upon its axis. Several of his finest transparencies were likewise exhibited. OHIO.-A letter from our corre-pondent at Columbus, (which we cannot make room for this morning, announces the passage of the Senate's Bank Resumption bill on its third reading in the House by a vote of 38 to 30-one Whig voting with the majority. The Whigs proposed and urged a Gradual Resumption, commencing on small notes in in August. May, and becoming overruled. complete and July and but were our friend the most violent from the deconsequences apprehends sudden disastrous contraction and and struction of Currency which must ensue. Let us wait and see. Our friend announces the utter failure of the Granville Bank, of which the notes are now selling for fifty per cent. in goods. It had redcemed $130,000 of its notes before it gave up the ghost. The Urbana Bank was under strong suspicion, and in the state of feeling which prevails, was certain to go by the board, if it had not already done 30. All is confusion, panic and terror. K Mr. Bradford's Oration last evening at the Broadway House on occasion of the Anniversary of the Birth of General Harrison, was a chaste and beautifully written eulogy on the character and services of the eminently distinguished subject of his discourse. Mr. B. very succinctly sketched the Revolutionary services and ran rapidly through the career down of a subsequent to the period public his of death. General enchaining Harrison, crowded audience for above an hour. A mere incidental allusion to the great Harry of the West produced a spontaneous three times three, with most deafening applause. The Oration was preceded and followed by patriotic edes composed for the occasion. and sung by an efficient choir. IG Mr. B. JESUP. the excellent host of the Pacific Hotel, writes us to state. in reference to a communication in our last, that his Hotel is in no sense a political one, but that men of all parties are alike welcome and alike well treated. Of course they are-no one could understand his jocular eulogist differently. K A Public Meeting of Scotchmen and others sympathising with the terrible destitution of the suffering poor of Paisley and other manufacturing towns of Scotland, will be held at the Society Library this evening. We trust there will be a generous attendance. As EXPRESS.-A Wisconsineditor acknowledge es the receipt of Congressional documents .. in ad vance of the mail" in consequence of a flock of wolves chasing the post-rider across the prairies.

3. February 11, 1842 New-York Tribune New York, NY
Article from New-York Tribune, February 11, 1842

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C Failure,&c.&c. Correspondence of The Tribune. COLUMBUS, Feb. 4.1842 The bill to enforce the Resumption of Specie Payment by the Banks of this State, was vesterday ordered to be engrossed for a third reading. by a vote so decisive that no question remains of its passage. The bill in the House is not the same that passed the Senate some two weeks back. but the main point of difference between the two political parties, is not changed. The majority iu both Houses are determined upon the when the Banks shall resume. viz: the 4th of March. That point is day day fully settled. The Whigs proposed a gradual Resumption-their principal measure requiring the payment of specic on the small notes in May, and going up to lives and tens in July and August. Great efforts have been made by the Bank interest of the LocoFucu party out of doors, to induce the Radical leaders to adupt the principle of Gradual Resumption, but the most influential of the Destructives have successfully resisted the scheme, and I believe with a full conviction of the consequences which must follow. It is their determined purpose to destroy the Banks, and wind them up under the Bank Commission Law, which, it is calculated. will give them the Distribution of a considerable amount of Spoils among their adherents. In this design. however, I am inclined to believe that they all will be foiled. I deem it highly probable that those Banks that will be unable to resume atonce, on a day so early as the 4th of March, have are this assigned, and when the bill to enforce Resumption shall finally become it law. the fact will be divulged. So you will understand that a general liquidation of debts is to be made the ensuing summer. The Banks must press their debtors with all their power-the million of dollars of specie now in their vaults must be carried off, and the four millions of paper. now in circulation, must all be taken in. You can judge of the evils which are in store for this doomed State. better than ! can portray them. We are already experiencing a foretaste of the ill- that are to come. Two or three days since the Granville Bank. after it thirty days up the ghost. It of its but being run, $130,000 finally gave paper, much had extended. redeemed it has been forced to yield and give up a charter which was deemed valuable because it was perpetual. Its notes, which a few days since were considered currency- can't phrase-are HOW worth fifty cents in goods. Yesterday our city was rumors that the Warren Bank, which has a circulation of or rife with kept up $300,000 and to-day more, had exploded, or was about to do so, you cannot put it off for any thing. Still I cannot learn that the Bank has actually discontinued the redemption of its notes-of course in the notes of a other Banks. But that result must follow, as natural consequence of the prevailing panic. of the Legislature have passed a to censure John Quincy resolution Both Houses Adams, in Congress for presenting a "dissolution" petition In the House, the mover of the resolution called the previous question upon it, and it was crammeid down the throats of the party, without any opportunity to discuss it. In the Senate, it produced the stormiest debate, and the most bitter personal recrimination that has ever been witnessed in this country. The session and debate were continued till 12 o'clock at night. at which time the Speaker and another member of the majority were dragged from their beds to record their 17 votes. It passed by a strict party vote of 19 to in a full Senate. The Legislature will probably adjoura on the 28th of Feb. or the 7th of March. There is 11 good doal of dissatisfaction in the State toward the course pursed here. which will exhibit itself in the course of the next canvass. The weather continues remarkably mild. We have had heavy rains for a few days past, and the streams are all full. We have had no appearance HILDEBRAND. of winter for three weeks. l'. S. The Resumption bill has just passed the House, 7 P. M. 38 to 30-one Whig voting with the entire body of the Loco-Focos.

4. February 15, 1842 New-York Tribune New York, NY
Article from New-York Tribune, February 15, 1842

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Banks and Currency in Ohio. Correspondence of The Tribune. CINCINNATI, Feb. 3, 1842 Our Money Market is in a most appalling state. Within ten days the Granville Bank has failed. and the Urbana is not much better: its small bills be ing in doubtful standing. totally uncurrent. and refused by all the brokers. The larger bills are taken sparingly by our City Banks in payment of debts. though refused on deposites, and it is thought will be discarded by Banks and brokers in the course of the week. Last Saturday was a trying day for our merchants. and all others who had Bank payments to make. on account of the dubious course pursued by our Banks in rejecting the bills of several of the interior Banks, viz: the Bank of Wooster. Cleaveland. and Commercial Bank of Lake Erie, except in payment of debts. and then only in small proportions. as in case of the Urbana. There is, consequently, a complete panic with reference to the Country Banks, and no one knows what to take. To show you with what a vile currency we are cursed. it is only necessary to mention the fact. that no less than twenty-seven Banks and shinplaster factories have failed within the last four years whose bills have formed almost the native currency of the city from different periods of two

5. March 1, 1842 New-York Tribune New York, NY
Article from New-York Tribune, March 1, 1842

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Important from Obio-The and winding Resumption Law-Banks assigning up-No.Money State and Gloomy Convention-COR Prospects Great WIN nominated-His Whig Election sure. Correspondence of The Tribune. O., The bill became a law a week since. Resumption COLUMBUS. Feb.21,1342 The Loco-Foc finally succeeded in keeping their men up to the rack on the question of fixing the 4th of March for forcing the Banks into Resuming on all their liabilities, although two or three of them in the Senate were inclined to adoptmildmeasures. Don't understand me as representer ing the Whigs of this State as forming all anti-Resumption party. There is not one Whig in the Legislature in favor of continuing the state of things which ha- existed so long. one day longer than is indispensably necessary to save the Banks from certain destruction. They all voted for graduated Resumption-to begin in May and pay on every thing by August or September. Two or three of in the Senate. where their majorto 17-proposed in vote ity the is Loco-Foco: two-19 with of the the entire Whig force in favor ef a modification bill passed in the House, but the Whigs declined any arrangement that did not embrace the condition that the proposition to be substituted for the bill should receive as many Loco-Foco as Whig votes. The Loco-Focos caucused on the subject two night< into the ** small hours." but the Radicals. who are bent on real Bank destruction. defeated the scheme, and the Whigscompelled them to shoulder the whole responsibility of a measure which every one foresees is to be attended with the most disastrous consequences. In the mean time the agitation of the subject has precipitated the results anticipated in a good number of instances. The Banks are yielding to the storm all over the State. The Granville Bank shut its doors first, after faithful efforts to meet its engagen up ants. The Urbana Bank went by the board next. These two Banks had out a circulation of nearly half a million, which was instantly depreciated one half! Think of that. ye NewYorkers, who used to grumble over a discount of one half of one per cent. on country paper About the same time the Chilicothe Bank nssigned, but there is I presume no danger or apprehension of loss here. The Bank was in admirable condition until it maden loan of $400,000 or $500,000 to the State. Next. the Hamilton The Bank, near Cincinnati, assigned its effects. Lancaster Bank, a heavy concern. has also assigned. and to-day it is reported that the Bank at Marietta has taken the same course. To the number thus breaking up are to be added both the Banks at Cleveland. The consequences of all this derangement and confusion are seen in the almost There total inspension of all kinds of business. is no money in circulation, except the notes of insolvent Banks, shinplaster and the orders of Turnpike and Railroad companies. The latter have a local circulation, and in some instances are considered the best kind of money to be obtained. Under these circumstances, a Convention of Delegates from nineteen Banks has just been held in this city. You will see the proceedings in our city papers, but the plan proposed to meet the crisis is to make the attempt to redeem their liabilities according to the provisions of the Resumption law, and to davise a system of making frequent settlements between them selves by sending their paper to this city to be exchanged and retired from cirThere are few who have any faith in this some ten or twelve of the culation. plan, though for Banks time which have kept up no circulation some past will be able to weather the point, with or without such arrangement. But I think you can safely calculate upon al influx of about one million of specie, to be drained from Ohio within the next ninety days. To-morrow. you will recollect, is the day for our State Convention to nominate a Governor. The city is full of Delegates to-night, who are quartered upon our citizens generally. I have conversed with many of them. who all repthe condition of the Whig party as resenting unite in being all that we can desire. They all concur in saying that the people are universally diagusted with the Loco-Foco Legislation of the winter, and that examples faith of a renunciation of the party are nu- in merous. Several Counties ere named to me. which it is confidently affirmed that the Whig strength will be greater next fall than it was in 1840. Gov. CORWIN has yielded to the solicitations of his friends and will accept the nomination, although he has been anxious to retire from the canvass. This ensures 115 the State beyond any reasonable question. We can elect a majority of and thus secure a Whig Senator in of Allen. I the place Legislature, Earthquake shall not close this letter until to-morrow. TUESDAY, Feb.22 We have just got through with our State ConIt exceeded our most sanguine and has inspired our expectations, vention. greatly friends CORWIN with was the highest degree of enthusiasm. aclamation, and will too. renominated twenty by be elected, His by ton to thousand majority. great and deserved popularity makes him a powerful lender. and the Loco-F ocos are as well satisfied of the doom that awaits them now as they know the result of the contest in 1840 Yours. N. E. Boundary.-Gov. Davis has sent a Mesto the Legislature of Massachusetts with resage ference to the N. E. Boundary question. He thinks propose 11 conventional boundand in that case he wishes to ary, that England may Mussachusetts be prepared for its consideration. and suggests the