17808. Bank of West Union (West Union, OH)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
July 1, 1841*
Location
West Union, Ohio (38.792, -83.544)

Metadata

Model
gpt-5-mini
Short Digest
82e837ac

Response Measures

None

Description

Newspaper articles from July–August 1841 report the Bank of West Union refusing specie payments, being described as 'in a state of suspension', and later described as having 'failed' in 1841. Committee statement shows only $1,950 specie on hand and large officer loans; articles accuse officers of diverting/specie disposal. No explicit description of a depositor run is given; cause appears to be bank-specific malfeasance/insolvency. No explicit receivership assignment mentioned in these pieces, but the bank is reported to have failed.

Events (2)
1. July 1, 1841* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Officers had large borrowings and specie reported previously (≈$37,000) had dwindled to $1,950; accusations that officers/insiders diverted specie and loans concentrated among officers led to insolvency and suspension.
Newspaper Excerpt
it was given out that the Bank was in a state of suspension
Source
newspapers
2. August 1, 1841* Other
Newspaper Excerpt
The investigation Committee ... published a statement ... specie in the vaults amounts to $1950 ... the committee 'take pleasure in presenting the statement to the public' ... measures are now being taken to secure an early redemption of its paper.' Day ton Journal commentary accuses officers of swindling the public and asks for detailed account of assets and disposition of $35,000 specie during past year.
Source
newspapers

Newspaper Articles (2)
1. July 27, 1841 Democratic Standard Georgetown, OH
Article from Democratic Standard, July 27, 1841

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Article Text

We are informed that a person went through this place the first of last week on his way from Cincinnati to West Union to procure a change of funds, having about $700 of notes on the Bank of West Union in his possession. He returned the next day with the same funds. He had been to the Bank, and was told that they could do nothing for him. He was a butcher, and had probably dearly earnt the trash that now proved as unavailable as so many rags in his pocket. Now, we would like to know what has become of the $37,347 61 of specie which its officers advertised to be in its vaults on the 31st of December last. We have not heard of their paying more than ten dollars of specie for their notes since that time; but we have frequently heard of their refusals to pay specie; and as it was given out that the Bank was in a state of suspension, comparatively few demands were made upon it. Yet the officers now acknowledge that they have not enough "Benton humbugs" to redeem seven hundred dollars of their ("better currency,") notes! "Statements of the condition" of the Bank were published in October and January; in both of which it was stated that upwards of thirty-seven thousand dollars of specie were in its vaults: and the Bank was represented in other respects to be sound. About the time these statements were published, a large batch of new notes was manufactured and put in circulation. They were sent to Wisconsin and other territories and States by thousands; and it would be difficult to guess to what degree the bank has "expanded;" though, for the benefit the honest note-holders, we could wish it were not beyond its ability to "contract." Quere. Would a branch of Nye's State Bank be any better?

2. August 17, 1841 Democratic Standard Georgetown, OH
Article from Democratic Standard, August 17, 1841

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Article Text

BANK OF WEST UNION. The investigation Committee appointed by the Bank of West-Union have published a statement, from which it appears, that $67,745, of the notes of the institution are now in circulation and the specie in the vaults amounts to $1950. The capital stock paid in is $80, 000, and Notes and Bills discounted $136,217,93. The committee "take pleasure in presenting the statement to the public" and assure the holders of its notes that the "assets are ample to meet the li. abilities of the Bank," proclaiming at the same time that "measures are now being taken to secure an early redemption of its paper." In this community, West Union Bank Notes have always been in bad repute, from the fact that the the institution was in the hands of a few Brokers in Cincinnati, who used it for the purpose of carrying on their shaving operations. The published report of its condition gave incontestible evidence that those who managed the concern, were its best customers.Take the report of the Bank Commissioners, who made a personal inspection of its affairs on the 28th May 1839, They said the institution had discounted notes to the amount of $134,000, and had a circulation of 180,000,-of this amount three of the officers of the bank had borrowed one hundred and thirty-two thousand dollars and in 1840 four of the offi cers had borrowed one hundred and fifty two thousand dollars and ninety eight cents, in addition, were scattered among twenty one borrowers, in sums under $5000. It will then be seen that the Bank did not aim to accommodate the public,-officers monopolized almost its entire means. The Bank in 1830, exhibited $62,780 in specie to the Commissioners, when they paid it a visit, and reported $10,000 as deposited in Cincinnatti. making an ag gregate of specie at its command of $72, 780, with a circulation of $180,000. In 1840, the Bank Commissioners re f ported the specie an hand at $37,33488 0 and the circulation $125,000. Well the Bank fails in 1841, and the committee appointed to examine its effects S reports the specie on hand at nineteen hundred and fifty dollars, only, and the notes in circulation at $67,745. What has become of the specie reported to be f in the vaults of the Bank a year ago?Whilts other banks have been endeavoring to strengthen themsives and hold on 10 their specie, this institution has parted with thirty-five thousand dollars in coin at a time of general suspension,-denying those who presented her notes for redemp tion at her own counter, beyond a doubt as our other state institutions have done. Let the Committee furnish the public with a detailed account of the assets of the Bank, specifying the particular securities they hold, which will enable them to "redeem" its paper at an "early day" -let them show how they have disposed of $35,000 in specie during the past year When this is done the public will judge whether the combined "attacks of broker" have prostrated the institution, or whether the officers of the bank have not been the principle agents in swindling the pub lic.-Dayton Journal.