17701. Bank of Sandusky (Sandusky, OH)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
May 9, 1845
Location
Sandusky, Ohio (41.449, -82.708)

Metadata

Model
gpt-5-mini
Short Digest
215e0f1a

Response Measures

None

Other: Banks temporarily refused to take Bank of Sandusky notes; brokers bought discounted notes until panic subsided.

Description

In May 1845 there was a note/panic in Cincinnati causing refusal and heavy discounting of Bank of Sandusky notes after the failure of the Bank of St. Clair and rumors tying the Smiths to local Ohio banks. Articles state the panic subsided and the banks resumed taking the notes; no suspension or closure of the Bank of Sandusky is reported.

Events (1)
1. May 9, 1845 Run
Cause
Local Banks
Cause Details
Panic triggered by failure of the Bank of St. Clair and its agents and rumors that the Smiths were connected with Sandusky (holders refused or discounted its notes).
Measures
Some banks refused the notes; a broker purchased discounted notes; later banks resumed receiving Sandusky notes and the panic subsided.
Newspaper Excerpt
On Thursday the notes of the Bank of Sandusky were refused by the Cincinnati Banks.
Source
newspapers

Newspaper Articles (5)
1. May 13, 1845 American Republican and Baltimore Daily Clipper Baltimore, MD
Article from American Republican and Baltimore Daily Clipper, May 13, 1845

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Article Text

BANK PANIC. There is quite a panic existing among the Banks of Cincinnati on account of the failure of the Bank of St. Clair, at Detroit, and its agent at Cleveland. On Thursday the notes of the Bank of Sandusky were refused by the Cincinnati Banks. The Banks of Norwalk and Wooster were also in bad repute, from the same cause. The Bank of St. Clair had about $300,000 in circulation at the time of its failure, which is now almost valueJess. Its agent, at Cleveland, Mr. Smith, was also doing an extensive business.

2. May 14, 1845 Richmond Palladium Richmond, IN
Article from Richmond Palladium, May 14, 1845

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Article Text

Sandusky, Norwalk and Wooster Banks. The Cincinnati Gazette of the 9th says that tho holders of the notes of the above Banks bc. came more and more alarmed yesterday. There was quite an excitement during the day, and men. pressed forward to sell or otherwise convert their notes. The broker who had the courage to buy the day before, continued his purchases yesterday at an increased discount, while the Trust Co., as heretofore, took in the Wooster notes of all do. nomination, and those of the Sandusky and Norwalk Banks less than five dollars. The other Banks received the Wooster notes. Wo know no reason for discrediting the notes of these Banks, nor do we believe any exists; consequently the broker, who had the courage to buy, will reap all the profit of this panic, and the people bear the loss. The Gazette of the same date received a Norwalk paper of the 6th, from which it appears that there is no ground whatever for alarm concerning the notes of that Bank on account of any connection of the Smiths with it. Tho Norwalk Reflector says: BANK OF NORWALK.--A report having been put in circulation that Jesso Smith was a largo stockholder in this Bank, quite a number of the holders of its notes, yesterday presented them to the Bank and received the specie for them. We are authorized by the Cashier to state, that not one dollar of the stock of this Bank is owned by Mr. Smith. that he has no interest whatever in the Institution, and that his failure will not affect its solvency in the least. This Bank, we have not the least doubt, is abundantly able to redeem all its liabilities when called upon and holders of its notes need not bo alarmed a. bout their redemption. The Gazette of the 10th states that the Bank note panic has subsided, and all is quiot again as usual. The Banks now take tho notes of all denominations of the Banks of Sandusky. Norwalk and Wooster. The result is what might have been predisted. Holders of small amounts of notes have been frightened into the sale of them at a loss. for the benefit of the broker purchasing. In the present case only one broker purchased the discredited notes. He dealt fairlysaying to all, that he believed the notes good, but if they were determined to sell, ho would buy; and he has probably made a handsome sum by it. It way a bad move, on the part of some of our banks, to reject the paper. Under the new Bank Law, the Banks will be required each to take the notes of all the other Banks of the same kind: thus, the Branch of the State Bank must tako the notes of all the other branches. The Independent Banks must take the notes of all the other Independent Banks while they continue to pay specie. This will prevont these panics, and make the circulation good to the holder. We hope soon to have a currency of these new Bank notes.

3. May 15, 1845 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, May 15, 1845

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Article Text

Increase 52,311 55 The Detroit brokers are paying 50 to 6212 cents per dollar for the St. Clair money, and the merchants are taking It at fifty cents. The panic at Cincinnati in relation to the Bank of Sandusky and Norwalk has subsided. and the Banks were receiving the notes of these institutions. RATES OF DISCOUNT AT THOMPSON'S OFFICE, 52 WALL-ST. Uncurrent Money. Broken Bank Money.

4. May 15, 1845 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, May 15, 1845

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Article Text

COMMERCIAL AND MONEY MATTERS. (For Commercial and Money Matters, see Last Page.) STOCK EXCHANGE-Second Board-May 14. $40,000 Penn 5s 73 81 96 Vicksburg 50 Nor & Wor 45 742 75 Canton Co 75 do 742 75 Stonington 860 371 WEDNESDAY P. The upward tendency of the Stock Market continues, and the feeling to-day was very buoyant. The bulls have the advantage just now, and seem disposed to keep it. The fancies improved 1 to I per cent. The demand is considerable for foreign bills, and the rates tend upward. Sterling we quote 93 a 92: Francs 525; Amsterdam 397 a 40, Hamburg 351 a 352 Premen 79. The supply of bills is moderate. The Money Market is well supplied, and the rate of interest is 5 a 6 per cent. Mest of the loans are made at 6 per cent and good short paper is done at the same rate. The receipts of the Mehawk Railroad continue to be larger than last year, and promise to make the aggregate of the years business large. The receipts of the week ending May 7th, were Passengers $1,068 136 35 Freight Total $1,804.35 1,463 Same time last year Excess in 1845 S341 35 The receipts in the same week of 1843 were $1,415. The receipts on the Tide Water Canal to 10th $23,127 72 May, 1845 20.816 16 Do. to same date lost year Increase $2,311.56 The Detroit brokers are paying 50 to 6212 cents per dollar for the St. Clair money, and the merchants are taking it at fifty cents. The panic at Cincinnati in relation to the Bank of Sandusky and Norwalk has subsided. and the Banks were receiving the notes of these institutions. RATES OF DISCOUNT AT THOMPSON'S OFFICE, 52 WALL-ST. Uncurrent Money. Broken Bank Money. 20 Bank of Osweco Eastern bankable in Bost tal 20 1 Commercial, Oswego Albany, Troy, Sch. &c 20 Western New-York in Commercial, Buffalo 20 No Clinton County Jersey 20 Watervielt 1/4 Philadelphia 30 Baltimore United States, Philadel 25 1 Brockport, N. Y Virginia 121 Hamilton, N. Y 2A Ohio, Indiana and Ky 20 2 Wisconsin and Iowa Bank of Lyons 3 Bk. of III. at Shawneetown 65 Michigan 50 14 Illinois State Bank N. Carolina & Georgia 75 I South Carolina Union, Florida 11 Southern Life and Trust 85 Mobile 14 New-Orleans Thompson's Bank Note Reporter for this week contains a valuable directory of Wall-st, with both the new and old numbers. The total Canal Tolls received from the commencement of navigation to the 8th May have been as fol1845. 1844. lows: 20 days. 23 days. $323,819 $346,837 On all the canals 115,859 123,490 At Alb'y & Troy (on up freight) 230,978 $200,329 At all other offices on down do The daily average of the receipts in each year for the time stated is as follows $15,079 $16,190 On all the canals 5,037 6,174 On up freight $10,016 10,042 On down freight Showing a decrease for the 23 days of $1,137 per day, on merchandize or up freight, and an increase of S26 per day on down freight. The time of opening of the books of the Montreal and Portland Railroad is fixed for 30th June. $1's of Eagle Bank, Boston, altered to fives, exceedingly well done, are in circulation. The genuine five's have a spread eagle, and cupids sporting In a flower arbor, whereas the one's have the eagle without the cupids and arbor. Counterfeit 5's of the Madison Co. Bank have been detected. Letter A.J. reneyck. President. Chas. D. Miller. Cashier. The whole bill has a scratchy appearance, and is wholly unlike the genuine fives of that Bank, the centre vignette of which is a female resting on an anchor, the right, a drove of cattle, and the left, the coat of arms of the State. The Cleveland papers state that the Smiths have paid most of their depositors, and are engaged in arranging their assets. The failure both of the St. Clair Bank and the Smiths are regarded as very bad ones. The Evening Post has the following paragraph. It is probably some ruse of the bears in the stock: We understand that the trustees for the boxdholders of the Norwich and Worcester Railroad Company, to whom the income of the road is pledged, feel themselves called upon to interfere and prevent any dividend or disbursement a ntil a sufflcient sinking fund is provided for the payment of the bonds."

5. May 24, 1845 Iowa Territorial Gazette and Advertiser Burlington, IA
Article from Iowa Territorial Gazette and Advertiser, May 24, 1845

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Article Text

The Money Panic in Cincinnati.-The Cincinnati Atlas of the 8th, says: In consequence of the failure of the SMITHS, who are said to own the Bank of St. Clair, Michigan, to meet the payment of certain drafts drawn by them on New York, the notes of the Bank of St. Clair, have been refused by our merchants and others, and have been subjected to a heavy discount. A rumor also became current in the city yesterday, that the Smiths were in some way connected with the Banks of Sandusky, Norwalk and Wooster-and all holding the notes of these banks. seemed anxious to get rid of them, by deposit in bank or otherwise. Some of the banks refused to receive them, and the panic became general. The brokers continued until after business hours to receive them at a aiscount of 10 per cent. We could not ascertain that there was any substantial reason for discrediting the notes of our Ohio banks, and think this panic will only prove a havest to the brokers. There is no information that the banks have failed, or refused to redeem their notes in specie which we believe they are better able to do than the banks of Indiana, whose notes are scattered all over the whole Mississippi valley. While remarking upon this subject, we feel ourselves bound in justice to notice the fact, that the Citizens' Bank, which paid out in the morning notes which were subsequently discredited, promptly exchanged them during the day for other current notes,