17707. Sandusky Bank (Sandusky, OH)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
May 25, 1848
Location
Sandusky, Ohio (41.449, -82.708)

Metadata

Model
gpt-5-mini
Short Digest
801dd4e9

Response Measures

Accommodated withdrawals, Full suspension

Description

Newspaper accounts from 1848 describe sustained runs/large daily withdrawals on the Sandusky Bank beginning in May 1848 (state banks and brokers driving redemptions). The bank was reported sold to brokers and then suspended on Jan 3, 1849 and described as 'broken' thereafter, indicating permanent failure. Bank is pre-National era so classified as a state bank.

Events (5)
1. May 25, 1848 Run
Cause
Local Banks
Cause Details
State Banks commenced redeeming and driving a run on the Sandusky (and Norwalk) banks; brokers and the public contributed to heavy withdrawals.
Measures
Stockholders determined to sustain the banks; continued specie redemptions by correspondents and some circulation taken up by Norwalk (related action noted).
Newspaper Excerpt
the run upon the above banks has been to the tune of about twelve thousand dollars per day for the last ten days
Source
newspapers
2. August 30, 1848 Run
Cause
Local Banks
Cause Details
Ongoing distrust and continued redemptions; reports and regional refusals to accept uncurrent money (other Ohio banks and firms refusing uncurrent notes) kept pressure on the bank.
Measures
Bank communications/dispatches attempted to reassure; correspondent houses refused uncurrent money which aggravated situation.
Newspaper Excerpt
there was considerable excitement ... in relation to the reported suspension of the Norwalk and Sandusky Banks. A telegraph from Sandusky dated last night ... says 'all right'
Source
newspapers
3. September 4, 1848 Other
Newspaper Excerpt
The latter concern has been sold to a company of brokers, and the opinion is prevalent that it will soon go by the board. ... the State Bank which drove most of their money home for redemption ... we have no doubt but that the alarm was well founded. These Banks may linger on for a time, but their manifest destiny is to break, and break they will. (Ohio Statesman, cited Sept. 4).
Source
newspapers
4. January 3, 1849 Suspension
Cause
Bank Specific Adverse Info
Cause Details
After months of heavy withdrawals and being sold to brokers, the bank suspended payment (described as 'given up the ghost' and 'broken'); suspension appears driven by insolvency following the prolonged run and sale to brokers rather than a single rumor or government action.
Newspaper Excerpt
The former suspended on the 2nd, and the latter on the 3rd inst., as say telegraphic despatches to the Cleveland papers.
Source
newspapers
5. February 24, 1849 Other
Newspaper Excerpt
The notes of the Sandusky Bank pass at 75@80 cts on the dollar. The notes of the broken Bank of Norwalk are taken at Sandusky, for merchandise, at par.
Source
newspapers

Newspaper Articles (6)
1. May 5, 1848 The Democratic Pioneer Upper Sandusky, OH
Article from The Democratic Pioneer, May 5, 1848

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Article Text

THESE ROTTEN BANKS. It is necessary for the people to look out for a break up among these cursed robbing institutions. The Whigs may tell you it is all a locofoco alarm, as they did about the Wooster bank. The Democrats gave you the alarm in nearly every case in time to save yourselves from the ruin; but the opposition told no danger; the bankers told you all was right, when they knew they were lying. Let us advise you to not keep on hands any length of time, the paper of the Sandusky or Norwalk banks. The following notice from the Ohio Statesman is worthy your attention, for it was through that watchful sentinel that you first received the news about the Wooster burst up: "Sandusky and Norwolk Banks.-We received two letters this morning concerning the above banks. One from Mansfield, stating that the impression is strong there that they cannot survive the run upon them, and that the people should be on the lookout in time. The other letter IS from Cincinnati, stating that placard handbills were posted up in that city a few days ago, warning the people to 'BEWARE' of the 'Sandusky and Norwalk paper.' The letter from Cincinnati is not from a politician, but states that strong suspicions rest on the bankers themselves for getting up this handbill-we mean these connected with the State Bank. This is the opinion of the gentlemen who writes us, and his hopes are, that some information may exist in this city to prove it on them.We give the above information as we get it. It is evident that there is some movement going on that the people know very little about; but the length and breadth, the depth and scope of it we are not able to state. We think our friends, and those who feel free to do so who may not exactly be classed under the terms political and personal friends, for the information they convey us from different points. It enables us to make up a pretty certain judgment, in many instances of what is about to take place, as well as what is going on at the time."

2. May 25, 1848 Indiana State Sentinel Indianapolis, IN
Article from Indiana State Sentinel, May 25, 1848

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Article Text

NORWALK AND SANDUSKY BANKS.-We understand (says the Cleveland Plaindealer of Tuesday) that the run upon the above banks has been to the tune of about twelve thousand dollars per day for the last ten days and at last advice continued unabated. It appears the State Banks commenced the run and the Brokers and the people have contributed to help it along. The Stockholders are determined to sustain them and as yet show no signs of "caving." The only difficulty seems to be that they are men extensively engaged in other business than banking and do not like to withdraw their funds from other channels of enterprise where perhaps it yields them a better dividend. It is no doubt inconvenient, very, for corporations accustomed to it, not to have the privilege of extending their charter over every species of enterprise, monopolizing every branch of lucrative business at the expense of private capital; and when they are thus profitably engaged it is hard to be compelled to return to the legitimate-objects of their creation. The St. Clair Bank found it so and more recently the Wooster and Erie Banks have found it so. These wheat buying, Steamboat and Rail Road building banks never die a natural death; convulsions generally ending their Post. "Klay koone kalculate Kentucky and Karolinia kuite koonish, and konsequently konklude on karrying them for the koon kandidate. Koon kaikulations 1 kannot always be konsidered korrect."

3. August 31, 1848 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, August 31, 1848

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Article Text

COMMERCIAL AND MONEY MATTERS For sales of Stocks, &c. see Fourth Page. WEDNEsDAY,August 30-P.M There is a lack of speculation in the Street, and even under the present easy money market it is impossible for the buils to get up any important rise. A fancy is worked up 1 or 2 per cent occasionally, but there are then so many sellers that it drops immediately back again. We think it will be a long time before the Street will witness such inflations of the bubbles as we have had in former times The Bill market closed dull at 9@91 for first class bills. Good bills were sold at @9 per cent The supply was good and the demand moderate The amount of business by the steamer has not been large. There is considerable activity in Freights, and the market is firm. Some four or five vessels were taken up at 9d@9fd for Ireland. Engagements of Corn to Liverpool were made at 6d Flour at 15d @ 18d, and 300 or 400 bales Cotton at 3-16d. The Money market continues very easy, and pa per goes at less rates than last week. First-rate paper sells at 7@9 per cent, and fair names at 10 12 per cent. On Government securities, loans are easily negotiated at per cent. The late rise in Norwich is the result of measures adopted by the new President and Directory to place the affairs of the Company in a better position.Those which have been consummated and others which are under consideration have already made an important difference in the value of the stock. The Nashua travel is beginning to affect the revenues of this road.A stage line is established between the finished portion of the Nashua and Worcester and the Norwich, and passengers by arrangement are ticketed through Yester day, eighteen passengers came through to New York from Nashua. There was considerable excitement in the street to-day, among the uncurrent money dealers, in relation to the reported suspension of the Norwalk and Sandusky Banks A telegraph from Sandusky dated last night to a party interested says " all right' so that nothing had then happened. Similar discredit was thrown upon these banks last Spring but they withstood the storm. The Norwalk Bank then took up $200,000 of circulation, more than two-thirds of the whole amount out. A later dispatch from Cincinnati states that the Lafayette and Commercial Banks, and the Ohio Life and Trust Co., refused to day to receive any uncurrent money. We have not a large faith in the Ohio banking system but we think that the time is not yet. The following is the comparative receipt of coal at Philadelphia for two years past. Total. Railroad Canal. 1,088,810 827,794 261,014 1848 976,805 128,210 348,596 1847 121,904 182,804 Excess 1848 20,800 Decrease 1848 It will be seen that the increase from the Schuylkil mines is 112,004 tons, the canal having more than doub. led its last year's business while the railroad has slightly fallen off-say 20,000 tons. On the Lehigh Navigation, up to the 1st inst. the increase of coal forwarded is 16,664 tons. The increase on the Delaware and Hud. son Canal, up to July 22, is 32,353 tons. The aggregate increase of coal thrown on the market through the four channels named, over the corresponding period of time last year, is 159,961 tons. The increased amount brought on the market up to the 1st Sept. probably will be not less than 200,000 tons. The steamer to-day for Liverpool took 816,000 in coin, not 80 much probably as was brought in the pocket on her passengers when she arrived. The City Controller invites proposals for a 6 per cent. loan, on the credit of the City, $15,900 redeemable Feb. 1, 1854, and $60,000 Feb. 1, 1855. The importation of dry goods for two weekshas been nearly as follows Week end. W'ol's Cot. Silks. Flax'n. Mis. Total. 19,576 338,068 402,973 7.060 36,591 $1,055,368 Aug. 24 $19,262 172,716 437,826 56,866 46,656 $1,033,326 These goods are taken briskly on arrival, and many desirable styles are sold, to arrive. The importations are less than last year, as indicated in the weekly duties, which have been for this year and last, for August, as follows: 17th Total. 26th 12th Week end. Aug. 5th. 697,000 564,000 988,000 $3,216,610 967,610 1847 510,206 510,101 $2,013,775 551,655 441,813 1848 186,899 $1,202,835 15,794 Decrease 525,803 436,435 This shows a decline of more than 50 per cent. for the Fall business; yet the supply of goods generally is probably good. The ship Serampore cleared at Boston Custom House for the Sandwich Islands with an assorted cargo valued at $89,182, including some $15,000 worth of Do. mestics. Active measures are being taken for the completion of the Indianapolis and Peru, and the Lafayette and Indianapolis Railroads. Markets CAREFULLY REPORTED FOR THE TRIBUNE, WEDNESDAY, August 30. ASHES-Are in moderate request and steady Sales 150 bbis a for Pots and 5 871/@5 94 for Pearls. Export from 1st to 29th August: 1847 1848. bbls. 942 Pots 2,095 105 none Pearls COTTON The market is heavy. The sales to day are 1,000 bbis, and the market shows be define since the steamer. Receipts, Exports, and Stocks of Cotton, at the following place at the dates annexed: Stockson Rec'drance Total Ex. Stockon

4. September 13, 1848 Portage Sentinel Ravenna, OH
Article from Portage Sentinel, September 13, 1848

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Article Text

Banks. We copy the following from the Ohio Statesman of Sept. 4: As yet, we are without'any certainty as regards the Norwalk and Sandusky Banks. The latter concern has been sold to a company of brokers, and the opinion is prevalent that it will soon go by the board. Both these Banks have been long suspected of preparing to fulfill their destiny. But a few months since, the impression was very general that they were in a very fair situation so to do, and n run was made upon them by the State Bank which drove most of their money home for redemption, and for a time it measurably disappeared from circulation. We find the channels of circulation again filled with their promises to pay, and again the keen sighted Bank. ers, ever on the watch to save themselves, paying out this money from their counters, so as to rid themselves of it. This was the case in Cincinnati, and from it the public took the alarm, and we have no doubt but that the alarm was well founded. These Banks may linger on for a time, but their manifest destiny is to break, and break they will. Reports prejudicial to the Clinton Bank, of this city are rife throughout the country. Here no alarm is felt. How the report originated, or what its origin was we know no'. The Journal of this city says there is no cause for it. Some time since a vindictive war was waged between State Banks and the old and Independent Banks, and charges were freely made by those connected with the two latter, of an attempt on the part of the State Board of Control to burst up all the Banks not under their man. agement. The charges against the Clinton Bank may be but the carrying out of a part of this plan. The planter's Bank at Kingston, Canada, stopped payment on the 28th ult. Bills of this bank have been plenty as blackberries, throughout Northern Ohio and New York State for the past six months. It was almost the only currency in circulation in Buffalo at the time of its suspension.

5. January 10, 1849 Portage Sentinel Ravenna, OH
Article from Portage Sentinel, January 10, 1849

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Article Text

Norwalk and Sandusky Banks. These two swindling shops, which have been struggling in the agonies of death for months past, have finally given up the ghost and gone to join the innumerable caravan of public pluderers that have gone before. The former suspended on the 2nd, and the latter on the 3rd inst., as say telegraphic despatches to the Cleveland papers. What amount will be lost to the public through the swindling operations of these banks, it is difficult to tell. Those who who have been caught with their trash in their pockets have no reason to complain of the Democratic press; for months past they have been warning the people to beware of the rotten trash, and for so doing, the federal papers have thundered forth their curses upon them, pronouncing their warnings "loco foco lies," and declaring that these banks were "perfectly safe!" But they have gone, and somebody has been plundered by them. But the end is not yet.

6. February 24, 1849 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, February 24, 1849

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The bill to restore the charter of the Farmers' Bank of and Mechanics' New-Brunswick has passed the New-Jersey House. Mr. Asa Sprague intends to establish a private bank at Rechester. The notes of the broken Bank of Norwalk are taken at Sandusky, for merchandise, at par. The notes of the Sandusky Bank pass at 75@80 cts on the dollar. The Vermont and Massachusetts Railroad was opened to Brattleboro, 128 miles from Boston, on Tues day last. The length of the road from Fitchburg to Brattleboro, is 10 miles, and It was constructed at a cost of $2,600,000. The agreement which was entered into, three years since, between the Western and Worcester Rail. roads, in regard to the apportionment of the joint busi. ness of the two roads, has been renewed, with some modifications It was feared, at one time, that another appeal would be made to the Legislature to settle the matter, which would have involved considerable trouble and expense to both Companies. The Hudson and Berkshire Railroad Co. have made the annexed report of the position of its affairs nd operations during the past year : $15,321 31 Total receipts for the year 1848 11,209 31 Expenses of repairs and running road $4,112 00 Net earnings Original cost construction, including outfit, & 8575,613 00 Expended on construction during the past year. 232,116 11 $807,729 11 Total cost, Jan 1, 1849 The Bank bill was laid on the table in the Illinois Legislature, by a vote of 36 to 30. At Boston, the Money market has been tightby the call for Specie for New.York and for the of duties. The Banks have ened payment 10@12 curtailed P cent dis counts, and paper in the street sold at Railroad and Manufacturing Stocks were dull. Rail roads were again in market as borrowers. The Annual Report of the Connecticut River Railroad states that it is now completed to the south line of Vermont, 52 miles, at a cost of $1,588,874. The stock amounts to 81,207,870. The receipts of the last year were as follows: For passengers, $88,637; freight, $71,807; mails, express. &c, $4,798-total, $165,242exceeding the receipts of 1847 by $41,290. The expenses have necessarily been swelled by the increase of business. $26,397 have been laid out in building $53,558 have been expended for new cars and engines. These, and other expenses for the year, amount to $78,444. Earnings over expenses, $86,797. After pay. ing interest to the amount of $10,620, and reserving $39,884 for running expenses, two dividends were de. clared of 4 cent each, which absorbed $35,504. The number of passengers carried during the year was 299,865. Number of tons of merchandise, 101,314.Number of bbls of Flour carried from Springfield, 41,173 The Company have 10 engines, which, during the year, have run 147,092 miles. The statement of the collections at the State Bank of Alabama and branches from July 1, 1848, to Jan. 1, 1849, gives the following aggregate : sand $122 836 51