17527. Lancaster, Ohio Bank (Lancaster, OH)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: February 25, 1842
Location: Lancaster, Ohio (39.714, -82.599)

Metadata

Model: gpt-5-mini
Short Digest: 94d1c5f3

Response Measures

None

Description

Contemporary articles (Feb–Mar 1842) report the Lancaster Bank 'assigned its effects' and that receivers were appointed; by July it is explicitly 'in the hands of receivers' and remains under receivership in October. No article describes a depositor run prior to suspension — the failure appears driven by the statewide resumption law crisis and general bank insolvency. Thus this is a suspension with permanent closure/receivership.

Events (3)

1. February 25, 1842 Suspension

Cause: Macro News
Cause Details: Assignment and suspension occurred in the wake of the Ohio Resumption law and statewide banking distress; banks were yielding to the storm and some 'assigned' their effects after passage of the resumption bill.
Newspaper Excerpt: Intelligence reached the city ... of the assignment of the assets the Lancaster Bank.
Source: newspapers

2. March 6, 1842 Receivership

Newspaper Excerpt: The gentlemen to whom the Lancaster Bank assigned its effects are Gen. Samuel F. Maccracken, George Ring, and H H Hunter, Esqs. ... The Lancaster (Ohio) Bank is in the hands of receivers (July account).
Source: newspapers

3. October 28, 1842 Other

Newspaper Excerpt: Although the paper of this Bank is quoted at a discount ... the resources of the Bank are ample ... it will be seen, that the amount in circulation is small, and would be promptly redeemed in specie, were it not for the law, which prohibits the Receivers from doing so now.
Source: newspapers

Newspaper Articles (9)

1. February 25, 1842 Carroll Free Press Carrollton, OH

Article from Carroll Free Press, February 25, 1842

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From the Ohio State Journal. BANK MATTERS. The resumption bill passed both houses and became a law on Monday.On Tuesday it was announced upon the authority of the Statesman, that things already began to exhibit a quieter as in pee!!" Oh, yes! "Order reigns was the anthe subjugation of the North, strife the blood of nonneed the fearful Warsaw!" Autocrat despatch of her though The Poland, that patriotic banks in to sons had saturated the soil. into ruins, and as despair the public mind, soit'es are tumbling upon the the State chief of the gang who have strewn with the wrecks of its former prosperity exclaims, **THINGS ALREADY BEEGIN TO ASSUME A QUIETER ASPECT!" We learn further through the same the the tide is already in our favor." Some turning reliable source, specie the South. came last week to Cincinnati, from (probably some of the yellow boys, that to flow up the Mississippi, as eight or ten years were 09 predicted since attribu by and that event is to be to the magical influence of the resumption the effect seems to have several weeks How Benton.) ted cause passage by bill, preceded fortunate although of that the the for the people of the after three has finaliy come to a deliverance. No calves and eight this ricus rition, it is measure, months doubt legged such State double partu. pigs, globe abundant during the next season-and allowing to of the Banks and ping headed will initiation the Curren the drop an cy, by this superlatively "democratic" Legislature A convention of Delegates from most of the Banks in the State, assembled the here yesterday to consult upon course which will be best to enable them to sustain each other during the approaching crisis. We had heard of nothing last evening of the result their deliberations. Intelligence reached the city yester- of day, of the assignment of the assets the Lancaster Bank. The Hamilton Bank was assigned a week or more as was also the Chillicothe bank. It not improbable that some have been assigned the passage of the bill We hear so many rumors it since, tion banks is of in resumption anticipa- that other about matters from day to day, difficult to know to is on. Yesterday, we from Cleveland an depend bank way extremely bill contained the learn. what Bank the endorsement unfavorable to of though there 18 of Monday on Cleveland the Herald the nothing subject. ir The Mansfield Shield and Banner says. in a postscript, on Wednesdav, that the Cleveland bank has bursted" People out of the State, particularly North, where specie is abundant. at no conception of the of the currency the entire business procan able Nearly the form condition of transacted deplora of the Ohio. market in this city. is plasters, and so as to be almost in vision and shin dirly these illegible the ragged south The Farmer's and Workingmen in part of the county. place the most con in the shinplasters of the Corof Idence poration Lancaster-based upon the pub no for their redemption. but Jie fining faith of that town They are preforred to most bank paper. At Dayton business on the Canal i s'mest emirely suspended, from the in ability of the produce merchants 1 find any money that the collectors will receive for tolls They even refuse the notes of the Franklin Bank of hiscity though the Sta'e is indebted 10 th Bank in the sum of nearly half a mil lion of dollars. Urbana money changes hands at abou

2. February 28, 1842 New-York Tribune New York, NY

Article from New-York Tribune, February 28, 1842

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The Lajayette Bank is authorized to receive its notes for any debts due it. A Receiver will be appointed on the second Tuesday in March. It is supposed that Mr. Robinson, the President, will be appointed, in which case there is reason to believe that the deposites and circulation will be paid off by the 1st June next. It is the opinion of those well informed on the subject, yet disinterested, that the stockholders will eventually receive about 33j per cent. Twenty-two of the Ohio Banks have resolved to resume on the 4th March next, as required by the act. The Commercial Bank of Scioto was one. The Franklin Bank of Columbus did not agree. Its bills are thrown out by the Cincinnati Banks. The charter of the Urbana Bank has been repealed. The Lancaster Bank is paying its notes, one-fourth in specie and three-fourths in certificates, currency or drafts. The following are the Banks which have resolved to resuine on the 4th of March The Franklin, Lafayette and Commercial Banks of Cincinnati; Banks of Dayton, Xenia, Scioto, Circleville, Marietta, Muskingum, Zanesville, Massillon, Sandusky, Wooster, St. Clairsville, Norwalk, Geauga, Western Reserve. New Lisbon, Mount Pleasant, Clinton of Columbus, and Farmers' and Mechanics' of Stenhensille

3. 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

4. March 6, 1842 The New York Herald New York, NY

Article from The New York Herald, March 6, 1842

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Newark. [Correspondence of the Herald.] NEWARK, Ohio, Feb. 28, 1842. # Great Temperance Jubilee-Passage of the General Bankrupt Law in the Ohio Legislature-A Rattling Among the Dry Bones of Certain Banks-Three Candidates for Governor in the Field-The Banks Ahead of the Resumption Bill-Operation of the Bankrupt Law. &c. Since my letter of February 14, the friends of temperance in the county of Licking, of which this city is the seat of justice, celebrated the success they have met with in the excellent cause in which they are engaged, by one of the most enthusiastic jubilees I ever beheld. The immense number of persons congregated in Newark on that occasion, was marshaled in a procession, almost interminable, by Brigadier General Wilson and Bishop Pier; and, after marching around our principal square, and through several streets, that portion of the multitude able to procure admission into the spacious church occupied by the First Presbyterian Society, listened to several spirit stirring addresses, on the subject which had called the people together. A great county Washington Temperance Society was formed, and the Hon. Geo. M. Young, the Mayor of our city, was elected its president. The number of members of the five different temperance societies in Newark was stated to be 1,820. The greatest enthusiasm prevailed among those present, and all went away satisfied that the glorious cause was going on "Conquering and to conquer." The bill to regulate banking in Ohio has passed both branches of the Legislature. It applies a host of new restrictions, and guards to all banking institutions to be hereafter incorporated, and if none should happen to be incorporated will not produce the slightest effect. There is no probability of any being incorporated during the present session. Bills have passed the House of Representatives repealing the charters of the Farmers' and Mechanics' Bank of Cincinnati, the Farmers', Mechanics' and Manufacturers' Bank of Chillicothe, the Bank of New Lisbon, and the Ohio Insurance Company. The object of passing these bills is, I suppose, to prevent the revival of these defunct institutions, and to demonstrate the power vested in the legislature to repeal charters of this kind-the majority contending that they are not contracts. A bi'l is also before the House to repeal the charter of the Mechanics' Saving Institute of Columbus, an institution now in operation. His excellency Governor Corwin has at length yielded to the solicitations of his friends, to become again a candidate for governor; and he was accordingly nominated by acclamation at the Whig State Convention, on the 22nd instant. We have therefore three candidates in the field, his excellency Governor Corwin, ex-Governor Shannon, and the Hon. Leicester King, (abolition;) and if the Tyler men, who hold their State Convention on the 13th of April, should not conclude to vote for Corwin, we may have a fourth. There are reports in town that the Commercial Bank of Scioto and the Bank of Sandusky have made assignments. The gentlemen to whom the Lancaster Bank assigned its effects are Gen. Samuel F. Maccracken, George Ring, and H H Hunter, Esqs. Nearly all the banks of this State, now in operation, will be enabled to resume under the new Resumption Bill on the 4th of March-the insolvent banks having either failed or assigned their effects. It is to be hoped that after the 4th of March we may obtain a currency worthy of the name. Messrs. Latham and Hubbard, Bank Commissioners, are in Cleveland examining the condition of the banks in that city, which recently failed. The Ohio Legislature has passed a resolution to adjourn on the 7th of March. There have been no claimants of the benefit of the Bankrupt Act in this immediate vicinity. I observe, however, that four persons in Cleveland, three in Columbus, one in Steubenville, and one in Clarke county have made application. I have ho doubt that the number of bankrupts in Ohio is exceedingly small. My letter to you of February 14, on the subject of Animal Magnetism, &c., I observe is published in the Newark Advocate of Febuary 26. L. OCCIDENTE.

5. March 31, 1842 The Ohio Democrat New Philadelphia, OH

Article from The Ohio Democrat, March 31, 1842

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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

6. April 15, 1842 Carroll Free Press Carrollton, OH

Article from Carroll Free Press, April 15, 1842

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THE CURRENCY, Notes of the following Ohio banks are known to be good, viz. F. & M. Bank of Steubenville, Ohio Life & Trust, Franklin, Cincinnati, St. Clairsville, Massilon, Mt. Pleasant, New Lisbon, Norwalk, Dayton, W. Reserve, Zanesville, Muskingum, Circleville, H. Lawrance cashier, Geauga, Marietta, Clinton Bank of Columbus. The following banks have resumed specie payments, as well as those above named, and it is believed they will be able to continue redeeming their notes with specie, VIZ. Commercial & Lafayette banks, Cin cinnati, Xenia; Sandusky, Scioto, and Bank of Wooster. Notes of the following banks are more or less current, at from 75 10,874 on the dollar. They remain partially or entire. ,ly suspended, viz. Lancaster, Chilicothe, Franklin Bank of Columbus. Theseare Banks to which the State is largely indebted. The following are broken Banks, the paper of which passes in some of the stores for from 50 to 75 cents on the dol lar, viz. Hamilton, Cleveland, Urbana, Canton, Granville, Illinois (State Bank) also Indi. ana State scrip. Indiana State Bank, Kentucky notes, Virginia and Pennsylvania notes generally, are current at par, that is at currency car, but all 8 to 10 per cent, below.specie. The above statement will be corrected weekly.-Steub. Her, From the Morning Chronicle, April 9 Bank Note List. SPECIE STANDARD Corrected for the Morning Chronicle by SIBBETT & JONES, EXCHANGE BROKERS, South West corner of Wood and Fourth Streets, Pittsburgh, Pa.

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

Article from The Ohio Democrat, April 21, 1842

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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

8. July 7, 1842 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, July 7, 1842

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A dividend of six per cent, and an extra dividend of two per cent, have been declared by the New-York Life Insurance and Trust Co. The Caledonia brings us advices of an easy state of the money market in England. The rate of discount was 4 a 4 per cent. There was a very trilling demand for American Stocks. Small sales have been made of Louisiana bonds (Union Bank) 63 per cent, Pennsylvania 45 a 461, Indiana Ohio 75 The following are the nominal quotations: Alabama 50 per cent. Illinois 19, Maryland 50, New-York Fives 76 per cent, U. S. Bank shares 15 shillings. considerable number of entries have been made at the Custom House, but as the process of appraisement requires much time, the payment of duties has not yet been reached. The Journal of Commerce says, in relation to these duties The instructions to the Collectorare as wehave already stated. to charge twenty per cent on the fair cash value of the goods here. Whether this is the right interpretation of the law. remains to be seen. The President, so long as doubts existed, was bound to adopt the interpretation most favorable to the country. The merchants will, on the contrary, no doubt, assume the interpretation most favorable to themselves The Courts alone can determine authorita. tively, which will, no doubt, be done as speedily as practicable." Bicknell's Philadelphia Reporter says: All continues quiet in the monetary world of Philadelphia. The rates have been stationary for some weeks Good paper is readily discounted out of doors at from 9 to 12 per ceat. All the suspended Banks continue closed for general business, exceptithe Mechanics'. which hasrresomed specie payments. The prospect is rather lavorable with regard to relief notes, Several of the Banks of the interior have determined to accept the law just passed by the Legislature. Business is very limited, and there is little short paper of an unquestioned character in the market. The Banks complain that they have not enough to do; that is to say, enough of the right kind of notes are not submitted to them. Out of doors, however, complaints are serious in many circles. U.S. Bank notes, 50 a 53; Girard, 45 50; Pennsylvania, 7a8; Relief, 10; Penn Township, 14 a 17: Manufacturers & Mechanics', 14 a 17; Moyamensing, 10a12 Sales at the Stock Board were light, but it was supposed that more would be done soon. Sales 4000 Tennessee Bonds at 60}; 260 County Fives, 1830, 75; 3750 State Fives, 1864, 40," The James River and Kanawha Company have by resolu. tion absolved Gen. Hamilton from all blame in his capacity as agent, and express their confidence in him. The total amount of receipts on the Georgia Railroad for the year ending April 1, 1812, was $248,255 The Merchants of Greenville, Geo., have adopted the Macon Specific, and after the 15th will reject all depreciated notes in payment of debts, except at their value in specie. This is the right course. At Savannah the exchange market is very dull. Some of the Banks were checking on New-York at per cent. The following Banks in New-Orleans continued to pay specie at the last accounts, viz: The Union, the Mechan ies & Traders', the Bank of Louisiana, and the Gas Bank. They, however, have but few bills in circulation. The Board of the State Bank of Indiana has disapproved the course adopted by two of the branches, (the Eransville and Bedford, which refuse to redeem with specie their own notes if they be long to persons residing out of the State!) refusing to pay their notes when presented by the Banks of other States, and has taken prompt measures to compel these branches to fall into the line with the others. The Leuisville Gazette advises the holders of Shawneetown Bank bills not to be alarmed. as, under the worst aspect of the case, the paper is worth 90 cents on the dollar. A meeting has been held at St. Louis to take into consideration the practicability of making all future moneyed ope. rations on a specie basis. As an instance of monstrous folly, we men ion that the new banking house just finished at Springfield for the bank. rupt Bank of Illinois cost $16,500. The Lancaster (Ohio) Bank is in the hands of receivers. The loss to bill-holders, it is supposed, will not be large. The Dayton Bank is also winding up, and the Cashier is ready to pay 25 per cent on the stock. Markets. ASHES Sales to-day about 100 bbls. Pots at $5 25. and 30to 40 Pearls at $5.50. COTTON-The market is still very stagnant. The news has as yet had no effect. FLOUR- The market was swept this morning of what few parcels were left afloat. at $6.00 for Genesee; $5 95 for flat Ohio and Michigan: 5 75 a 5 811 for round. Few sales of rather superior brands Genesee were sold at $6 061. but could not be repeated. The sales to day amount to about 1500 bbls. Since these operations the tow boats have arriv-

9. October 28, 1842 Carroll Free Press Carrollton, OH

Article from Carroll Free Press, October 28, 1842

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LANCASTER OHIO BANK. The Lancaster Gazette says: "Although the paper of this Bank is quoted at a discount from 10 to 20 per cent. in the Cincinnati and Columbus tables, it will be seen from a statement of the Receivers, as published in our paper that the resources of the Bark are ample not only for the redemption of the bills but the ultimate payment of all of the stock, leaving an actual surplus of $95,394 86. It will also be seen, that the amount in circulation is small, and would be promptly redeemed in specie, were it not for the law, which prohibits the Receivers from doing so now. There IS not a doubt but that every dollar of this paper will be redeemed, so soon as the receivers are permitted to pay out their coin."