18673. Venango National Bank (Franklin, PA)

View Charter #1176 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
1176
Charter Number
1176
Start Date
March 28, 1866
Location
Franklin, Pennsylvania (41.383, -79.832)

Metadata

Model
gpt-5-mini
Short Digest
225a88f2

Response Measures

None

Receivership Details

Depositor recovery rate
23.4%
Date receivership started
1866-05-01
OCC cause of failure
Losses
Share of assets assessed as good
8.7%
Share of assets assessed as doubtful
5.9%
Share of assets assessed as worthless
85.3%

Description

Multiple contemporary articles report the Venango National Bank (Franklin, PA) as having failed/being in the hands of receivers. The House committee report (New-York Tribune) states failure on or about the 28th of March tied to the failure of Culver, Penn & Co.; later press items (June 1867 and afterward) list it among national banks suspended and in receivers' hands. No explicit run on deposits is described in these items; cause appears to be adverse bank-specific exposures to Culver, Penn & Co.

Events (4)
1. May 20, 1865 Chartered
Source
historical_nic
2. March 28, 1866 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Failure/close connection with the collapse of Culver, Penn & Co.; large indebtedness of Culver, Penn & Co. to the bank (reported >$600,000) and misuse of bonds/collateral led to insolvency when Culver, Penn & Co. failed/was suspended, triggering the bank's failure or receivership as described in committee report and regional coverage.
Newspaper Excerpt
The only other loss of public money deposited in a national bank that has come to the knowledge of the Committee is in the case of the Venango National Bank of Franklin, Pennsylvania, which failed on or about the 28th of March.
Source
newspapers
3. May 1, 1866 Receivership
Source
historical_nic
4. June 11, 1867 Receivership
Newspaper Excerpt
The Venango National Bank of Franklin, Pa., $85,000; ... have failed, and are now in the hands of receivers, with the amount of circulating notes issued to eachThe Venango National Bank of Franklin, Pa., $85,000 (list of failed national banks).
Source
newspapers

Newspaper Articles (19)
1. April 18, 1866 North Branch Democrat Tunkhannock, PA
Article from North Branch Democrat, April 18, 1866

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A Bank Panic, Considerable excitement has been creat ed in business circles during the past few weeks by a report that the notes of a number of Banks had been thrown out by the Banks of Philadelphia. The following were placed ou the rejected list, and were for a short time discredited : Crawford County Bank, Meadville. Oil City Bank, Oil City, Pa. Venango Bank, Franklin, Pa. Petroleum Bank, Titusville, Pa. Tioga County Bank, Tioga, Pa. Lawrence Co. Bank Newcastle, Pa. Clearfield County Bank,Clearfield, Pa. Kittanning Bank, Kittanning, Pa. Octorara Bank, Oxford, Pa. Diamond State Bank, Seaford, Del. First National Bank, Titusville. Pa The suspension of the Banking House of Culver, Penn & Co., at New York, is given as the cause of the discredit of the Banks in the Oil Region. The Panic, has however, in a great measure subsided. The notes of the following discredited Banks are again current : Kittanning Bank, Kittanting. Octorara Bank, Oxford Chester co. Clearfield County Bank, Clearfield. First National Bank, Titusville. Tioga County Bank, Tioga Pa. Bank of Lawrence county Newcastle. The notes of the Venango Bank. Franklin ; and Petroleum Bank, Titusville, are believed to be good. Thompson's New York Bank Note Reporter quotes them at 10 per cent discount. The only Pennsylvania Banks that have really failed, and the notes of which, having no substantial security, may be considered worthless, are : Oil City Bank, Oil City Pa. Bank of Crawford County, Meadville.

2. July 17, 1866 New-York Tribune New York, NY
Article from New-York Tribune, July 17, 1866

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PRICE FOUR CENTS. sented that a number of 7.30 bonds sent to Bayne & Co. were still in possession of the bank, while in fact they were beyond its control. This was done to conceal the indebtedness of Bayne & Co. from the Comptroller of the Currency, who, at the time mentioned, owed to the bank $283,586 56, which was, reduced, in the returns, to $20,900, the difference being represented as bonds in the bank. President Hayek, it is suspected made these false statements, in the books of the bank, at night with the assistance of the bookkeeper. It appears by the testimony that a most pernicious system was adopted by the President of the bank, Mr. Huyok, in connection with Mr. Oscar King, one of the directors, and Mr. H. G. Fant, by which they undertook to procure deposits of public money by disbursing officers, for which Mr. Fant and Mr. King received compensation in the nature of interest upon the deposits of those officers, whom they claimed to have influenced to open accounts with the bank. Mr. King was the special friend and bondsman for Paymaster Paulding, Mr. L. P. Bayne, of the house of Bayne & Co., being the other surety on his bond-both of them directors of the bank. It does not appear by any testimony that the officers making the deposits had knowledge of this payment of interest on their accounts, or that they derived any benefit from it. On the contrary, the parties concerned expressly declare that they concealed all knowledge of that fact from the officers whose acts they thus made the source of profit to themselves. Other paymasters, beside Col. Paulding, deposited public moneys in this bank, but Col. Paulding made the deposits with the view of giving assistance to the First National Bank of Washington, which was known to be in trouble, while the other deposits were not made with the same knowledge or purpose. On the 20th of April, the bank was in great difficulty, on account of the impending failure of Bayne & Co., and it was requested by a Mr. Oscar King, that Col. Paulding should make a transfer of $150,000 from the First National Bank. Mr. Huntington, the cashier of this bank, was desired to recommend such transfer, but he declined having anything to do with it, more especially as he learned that Col. Paulding had already a deposit of several hundred thousand dollars in the Merchants National Bank. At the request of Col. Paulding, Mr. Huntington made inquiries respecting the condition of the Merchants' National Bank, and found their assets consisted chiefly of a debt of Bayne & Co.; and to satisfy him in regard to the responsibility of that firm. Mr. Lawrence Bayne was telegraphed by the President, Mr. Huyck, and came from Baltimore that evening to make a representation of the condition of his affairs. The statement of Mr. Bayne was verbal, but so satisfactory that at the close of the interview Mr. Huntington said he was inclined to recommend the transfer, if the statement of Bayne & Co.'s condition could be relied upon as true. On reflection, however, this was not satisfactory; so he consulted the president of his bank, Mr. Henry D. Cooke, who expressly charged him not to make any recommendation or to take any responsibility in the matter. He then said to Colonel Paulding if his checks were presented they would be paid; but he must act on his own responsibility. On that day Colonel Paulding's checks for $200,000 were presented at the First National Bank by Mr. Sherman, cashier of the Merchants' National Bank; and in accordance with Mr. Sherman's request, $50,000 was placed to the credit of Bayne & Co., with Seott, Capron, & Co., New York; $50,000 to the credit of Bayne & Co., with Hoyt, Anthony, Douglass, & Co., of New York; $50,000 in a check on New York, which was delivered afterwards by Mr. Sherman to Oscar King, for Bayne & Co.; the remaining $50,000 was paid in currency, of which $30,000 was used, according to the testimony of the cashier, to make good certain checks given the day previous by the Merchants' National Bank to Bayne & Co; thus making a total of $180,000 of the amount of Colonel Paulding's checks paid directly or indirectly for the benefit of Bayne & Co. The Board of Directors of the Merchants' National Bank were required by the by-laws to meet every Tuesday, but Mr. Sherman, the cashier, says there was no meeting of the Board from the time he went there until the 9th of January last. Mr. Boteler says that since January 1, 1866, when he was appointed Vice President of the bank, there have not been three meetings of the Board of Directors, and whenever a quorum happened to be present. Mr. Huyek told them there was nothing for them to do. A Finance Committee, composed of the President Mr. Huyck; the Vice-President, Mr. Boteler, and the cashier, Mr. Sherman, were authorized to transact all the duties of the Board of Directors, Mr. Boteler, finding that he was not consulted when money was loaned, or other important matters transacted, had a resolution passed by the Board of Directors forbidding money to be loaned except by unanimous consent of the Finance Committee. Notwithstanding this, Mr. Huyck continued to act as though the bank was his own, and neither informed Mr. Sherman nor Mr. Boteler of his transactions. When the bank was organized, the name of Mr. J. B. Stewart appeared as one of the original subscribers to the Merchants' National Bank, for $60,000. M. Stewart never subscribed a cent, in any shape or way. He was represented without his consent, at the organization of the bank, by Mr. Oscar A. Stephens, who also represented him before the Notary Public when the organization certificate was sworn to. As soon as the bank commenced business, Mr. Stewart opened an account at the bank, and made an arrangement to draw for money as he may require it, depositing 950 shares of the Washington, Alexandria and Georgetown Railroad Company as collateral security for any money he might owe the bank; also that he made a special deposit, for safe keeping in the bank, of $169,000 in bonds of the Union Pacific Railroad Company, which he held in trust. In March last he discovered that those bonds had been sent by Mr. Huyck, the President of the bank, to Messrs. Bayne & Co., and by them used as collateral security for loans obtained in various banks in Baltimore, without his knowledge or authority; that he did not know of their abstraction until he went to the Merchants' Bank for the bonds in March, when Mr. Huyck refused to deliver them, or to give him any information in regard to them. Mr. Stewart also testified that after the failure of the bank, and the appointment of a receiver, he was notified to pay his debt to the bank; when he offered to make the payment, and asked for the nine hundred shares of railroad stock he had deposited as collateral security, he found that they had likewise been abstracted, and had been disposed of in the same manner as the bonds. No institution could be safe in the hands of men so reckless and unscrupulous; and the failure of this bank, involving so considerable a loss of public money, must be attributed wholly to the dishonest and criminal conduct of the men who controlled it. The only other loss of public money deposited in a national bank that has come to the knowledge of the Committee is in the case of the Venango National Bank of Franklin, Pennsylvania, which failed on or about the 28th of March. It was a depository bank, with $50,000 in bonds and treasury notes as security for the deposits. The amount of public money in that bank is $223,883 72 to the credit of the Treasurer, and 2.-584 93 to the credit of Mr. McGough, the collector, There is also a draft of that bank on Culver, Penn & Co. for $65,000, which was sent on the 26th of January inst, to transfer that amount of public money from the Venango National Bank to the Sub-Treasury in New York. The draft has never been paid; the bank claims that it is relieved from any responsibility, as the draft was received at the Sub-Treasury in payment of that amount, and was not protested for non-payment. There is said to be sufficient security for this draft in the possession of the Government. The capital of the Venango Nationa' Bank was $300,000 It seems to have been managed for the benefit of Culver, Penn, & Co. of New York, who had nearly all of the funds of the bank, their debt to the bank being over $600,000. Under such circumstances the failure of Culver, Penn & Co. necessarily involved the failure of this bank. The law limiting the maximum of the aggregate loan of any party to 10 per centum of the capital of the bank was wholly disregarded in this case, as it was in the case of Bane & Co. by the Merchants' National Bank. This is excused in both cases by the specious pretence that these debts were not loans, but balances due from the parties. It should be stated that $400,000 of Culver, Penn & Co.'s debt was for Government bonds which, as appeared by the testimony before the Committee, the bank claims were deposited by them for safe-keeping, but were used by them without the authority of the bank. Many of the national banks which were converted from State banks do not make proper exertion to withdraw their old circulation, and in many instances pay it out and take measures to continue it in circulation, thereby receiving the benefit of the old circulation and of the national currency notes received from the Bureau of the Controller. It was stated to the Committee that there were instances of banks having reported to the Controller that the State circulation had been withdrawn again paying it out. In justice to the very large majority of national banks that are honestly conducted, it seems right to give in this report all the testimony the Committee had on this subject, though it is not so definite as they desired. The Committee have also inquired into the affairs of the national banks in Springfield, Mass.; some of the national banks in Providence, R. I.; the Chemung Canal Bank of Elmira, N. Y.; some of the national banks of New Jersey and New-York: the First National Bank of Fenton, Mich.; the National Bank of Michigan, at Marshall, and are of opinion that they are not conducted to the strict letter of the law. In conclusion, the Committee say they have performed the duty assigned to them in the resolution of the House, by an examination into the affairs of the national banks so far as any circumstances that came to their knowledge seemed to demand; they have examined and reported on the facts and circumstances connected with the recent failure of the Merchants' National Bank of Washington; the amount of public money deposited, and by whom, in that bank, and the cause of its failure. The bill to regulate the deposits of public officers, which has been reported and passed, and the amendments reported to the National Currency act, embrace the legislation which the Committee deem necessary, in regard to the national banks, to protect the public and the Government. In regard to the gross abuse of their trusts as a depository of public money by the Merchants' National Bank, the Committee are of opinion that legal proceedings should be had for the punishment of those of its managers who are responsible for that breach of trust; and also such proceedings as may be necessary to recover any portion of the money; and as it was mostly money intrusted to disbursing officers of the War Department, the duty of instituting and conducting these proceedings should be committed to the War Department. The Committee close this report by submitting the annexed resolution: Resolved, That the Secretary of War be directed to institute such

3. February 21, 1867 The Ebensburg Alleghanian Ebensburg, PA
Article from The Ebensburg Alleghanian, February 21, 1867

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# The Culver Case---Interesting History. A correspondent of the New York Tribune, writing from Franklin, gives the following interesting statement of the causes which culminated in the failure of the firm of Culver, Penn & Co., and which led to the prosecution of Mr. Culver on charges of a criminal nature. We quote: The history of Mr. Culver in his connection with this region for the last six years, of his unparalleled success and of his failure, is the history of the rise, decline and fall of the empire of Petroleum. Suffice it to say that in 1861 Mr. Culver opened a banking office in this town on a small capital, and subsequently others at various points in this region, all of which, very soon, from the exigencies of business, became incorporate banks, under what was known as the Free Banking Law, he retaining the general financial management, and dispensing Presidencies and Directorships as Andrew II. dispenses Consulates and Collectorship of Customs, and probably with quite as large a sense of the "eternal fitness of things." Of these, the Venango bank at Franklin, and the Petroleum bank at Titusville, had a circulation, the former of $600,000, the latter of $900,000, secured by the deposit of a like amount of Government bonds with the Auditor General at Harrisburg. And when Congress passed an act forbidding a re-issue of the notes of State banks after July 1, 1866, these banks about to become National banks, it became necessary to retire their circulation, and to do this gradually was a measure of prudence. Mr. Culver accordingly made arrangements with a National bank at Pittsburg in May, 1865, for the redemption and cancellation of the notes, the funds required to be drawn from Culver, Penn & Co., (the New York branch), and the respective banks certified by drafts on them, which, when forwarded to. Culver, Penn & Co., were charged to those banks. The Government bonds released by the return of the cancelled circulation were to be sent to Culver, Penn & Co., and placed to the credit of the banks. In the meantime, in the year 1864 and 1865, the oil fever had reached its crisis; and speculation rushed on to the confines of madness. This state of things inevitably led to accommodation loans, from the various banking institutions under Mr. Culver's control, secured in the usual manner; and when, in March, 1865, the terrible flood destroyed property in the valleys of this region to the value of millions of dollars, followed immediately by the close of the war, and the consequent check of all speculation, by these combined causes the firm of Culver, Penn & Co., lost very heavily. Shortly prior to this time, the firm became largely interested in an enterprise called the Reno Oil and Land Company, with the object of making Reno the depot for the oil-producing districts; and when the oil business had somewhat recuperated, a railroad was built to carry the purpose into effect, in the face of a determined opposition from rival interests, which made it necessary, at a heavy expense, to choose a circuitous route, and overcome serious engineering difficulties. By the energy and tact of Mr. Culver, however, two rival railroad companies were consolidated with this, under his control, in the winter of 1865-6; and nothing was required but a final meeting, which was appointed for March 29, 1866, to approve the consolidation. In a few days, as he alleges, he would be entitled to receive a large sum, sufficient to meet all his immediate liabilities, in the form of the first mortgage bonds of the consolidated road; but he claims that unscrupulous men, opposed to this project, created a run upon the New York house at this critical period by malicious rumors that it had failed, or was about to fail; and burdened beyond their capacity to bear, on the 27th of March they failed with liabilities estimated at $5,000,000. The consequence was, of course, the failure of the consolidation, and therefore, of the Reno enterprise, to which all Mr. Culver's energies had been lent, and that with which we are more immediately interested-the closing of all the banks which had been controlled by Mr. Culver-among them the Venango National Bank, whose capital, as I have shown above, had passed into his hands during the progress of the retirement of its circulation. Mr. Culver was soon after arrested at the instance of Mr. Hoge, Vice President and Director of the Venango Bank (a member of the Pennsylvania Senate), on a charge of conspiracy to defraud Messrs. Myers and Kinear, the latter the President and both Directors of the bank joining in the charge-all three having made private loans to Mr. Culver to further his railroad enterprise. This arrest was followed by others, on the same charge, but bail to a very large amount was obtained and he was discharged. He was also arrested on a charge of obtaining the bonds deposited at Harrisburg under false pretences; and after giving the required bail was immediately re-arrested upon the

4. June 11, 1867 The Evening Telegraph Philadelphia, PA
Article from The Evening Telegraph, June 11, 1867

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FAILURES OF NATIONAL BANKS. - The following is a list of National Banks that have failed, and are now in the hands of receivers, with the amount of circulating notes issued to each:The First National Bank of Attica, New York, $45,000; the Merchants' National Bank of Washington, D. C., $180,000; the Venango National Bank of Franklin, Pa., $85,000; the Tennessee National Bank of Memphis, Tenn., $90,000; the First National Bark of Newton, Mass., $130,000; the First National Bank of Selma, Ala., $85,000; the First National Bank of New Orleans, La., $180,000. In addition to these, two banks have taken up their bonds and deposited lawful money in the Treasury of the United States to the amount of their outstanding circulation, viz. : - The First National Bank of Carondelet, New Orleans, $25,500; the First National Bank of Columbia, New Orleans, $11,990, making a total of $832,490, which has reverted to the Government, upon the return and destruction of which an equal amount of circulation will be at the disposal of the Comptroller of the Currency for distribution, according to the terms and conditions prescribed in the National Currency act, subject to the same rules that governed the distribution of the amount originally authorized by the act of Congress.

5. June 11, 1867 The New York Herald New York, NY
Article from The New York Herald, June 11, 1867

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Steward. Cornelius Vanof Smith Barker, Jr., and John H. Vanderbilt, Vice derbilt was re-elected President, W. ary. President, and Augustus Scheil, Secre banks that have The following is a list of national rs, with the Bive failed and are now in the bands of rec. First Na. amount of circulating notes issued to eac National, tional, Attica, N. Y., $45,000; Merchants FrankWashington, D. C., $180,000; Venango Nationa Tenn., lin, Pa., $85,000; Tennessee National, Memphis, 200; $90,000; First National, Newton, Mass., $130, First National, Selma, Ala., $85,000; First N tional, New Orleans, La, $180,000. In addition to these two banks have taken up their bonds and deposited lawful money in the United States Treasury to the amount of outstanding circulation, viz:-First National Carondolet, New Orleans, $25,500; First National Columbia, New Orleans, $11,990-making a total of $832,490 reverting to the government, upon the return and destruction of which an equal amount of circulation will be at the disposal of the Comptroller of the Currency for distribution. The Sub-Treasurer in this city reports:Total receipts $1,465,816 Total payments. $1,563,316 For customs. 229,000 Balance 134,015,419 495,000 For gold notes The Chicago Clearing House statements of the past two weeks compare as follows:Balances. Clearings. $11,540,292 Week ending June 8 $1,002,558 9,207,614 Week previous 992,819 The following is a statement of the value of the imports entered at the port of Boston during the month of May:Value. Species of Goods, Wares and Merchandise. Imports-Dutiable, entered tor consumption $1,411,579 2,544,749 Imports-Dutiable, warehoused $3,956,328 Total paying duty Free 289,188 Total imports $4,245,516 Merchandise withdrawn from warehouse for $1,727,877 consumption The earnings of the undermentioned railroads during May of this and last year compare as follows:1867. 1866. $329,078 $316,432 Toledo, Wabash and Western 365,196 333,952 Michigan Central Cleveland and Toledo 210,783 180,675 51,710 55,133 Virginia and Tennessee Atlantic and Great Western 451,447 459,370 A St. Louis journal says:or the notes of the old "Bank of the State of Missouri, " which went out existence in 1857, and whose currency was barred in 1860, there 18 still afloat about $60,000 worth. The now existing Bank of the State of Missouri, lately organized as the "National Bank of the State of Missouri" agree to redeem this issue together with all of their own afloat, now amounting to about $50,000. The receiver of the Cataract City Bank of Paterson, N. J., notifies holders of the notes of that bank that all such notes must be presented for redemption to the Treasurer of the State of New Jersey, at Trenton, on or before November 30, 1867, and that holders and owners thereof who fail to present the same will be barred from all right to have the notes redeemed.

6. June 12, 1867 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, June 12, 1867

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FAILURES OF NATIONAL BANKS.-The followis a list of national banks that have and are now in the hands of receivers, the amount of circulating notes issued each The First National Bank of Attica, Y., 845,000; the Merchants National Bank Washington, D. C. $180,000; the Venango National Bank of Franklin, Penn., $35,000; Tennessee National Bank of Memphis, Tenn $90,000; the First National Bank of Newton Mass., $130,000; the First National of Selma, Ala. $85,000; the First NaBank tional Bank of New Orleans, La., $180,000. In addition to these, two banks have taken up their bonds and deposited lawful money in the Treasury 01 the United States to the amount of their outstanding circulation-viz. : The First National Bank of Carondelet, New Orleans. $25,500 the First National Bank of Co. lumbia. New Orleans, $11,990; making a total $582,490 which has reverted to the Governupon the return and destruction of equal amount of circulation will be althe disposal of the Comptroller of the Currency for distribution, according to the terms and conditions prescribed in the national currency net. subject to the same rules that governed the distribution of the amount origimally authorized by the act of Congress.-New 1 to

7. June 15, 1867 The Tri-Weekly Standard Raleigh, NC
Article from The Tri-Weekly Standard, June 15, 1867

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FAILURES OF NATIONAL BANKS-The following is a list of national banks that have failed and are now in the hands of receivers, with the amount of circulating notes issued to each : The first National Bank of Attica, N. Y., $45,000; the Merchants National Bank of Washington, D. C., $180,000; the Venango National Bank of Franklin, Penn., $35,000; the Tennessee National Bank of Memphis, Tenn., $90,000; the First National Bank of Newton, Mass., $130,000; the First National Bank of Selma, Ala., $85,000; the First National Bank of New Orleans, La., $180,000. In addition to these, two banks have taken up their bonds and deposited lawful money in the Treasury of the United States to the amount of their outstanding circulation-viz.: The First National Bank of Carondelet, New Orleans, $25,500; the First National Bank of Columbia, New Orleans, $11,990; making a total of $832,490 which has reverted to the Government; upon the return and distruction of which an equal amount of circulation will be at the disposal of the Comptroller of the Currency for distribution, according to the terms and conditions prescribed in the national currency act, subject to the same rules that governed the distribution of the amount originally authorized by the act of Congress.New York Times.

8. June 17, 1867 The New York Herald New York, NY
Article from The New York Herald, June 17, 1867

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The National Bank Currency. (Washington correspondence Boston Advertiser, June 9.] The story that a secret arrangement had been made between the Secretary of the Treasury and certain national banks, under which the banks are to receive new circulating notes in place of broken bank bills that they may redeem and present at the Department, is denied by authority. If any banks are buying up bills of defunct national banks they do it of their own motion and at their own risk, and speculation in these bills is not countenanced by the Department. The following is a list of the national banks that have failed and are now in the bands of receivers, with the amount of circu lating notes issued to each:Circulation. $45,000 First National Bank, Attica, N. Y Merchants' National Bank, Washington, D. C 180,000 85.000 Venango National Bank, Franklin, Pa 90.000 Tennessee National Bank, Memphis 130.000 First National Bank, Newton, Mass. 85,000 First National Bank, Selma, Ala. 180,000 First National Bank, New Orleans, La In addition to these the First National Bank of Carondelet, Mo., with a circulation of $25,500. and the First National Bank of Columbia, Mo., with a circulation of $11,999, have taken up their bonds and deposited lawful money in the United States Treasury to the amount of their outstanding circulation. Here is an aggregate of $832,499, which has reverted to the government, upon the return and destruction of which an equal amount of circulation will be at the disposal of the Comptroller of the Currency, for distribution according to the terms and conditions prescribed in the national currency act, subject to the same rules as governed the distribution of the amount originalty authorized by Congress. Quite a number of national banks have been organized to which the Comptroller has not yet given any circulation, because the amount provided for by law is already out, and there are many others that have received only part of the amount to which they would under other circumstances be entitled.

9. June 19, 1867 The Weekly North-Carolina Standard Raleigh, NC
Article from The Weekly North-Carolina Standard, June 19, 1867

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FAILURES OF NATIONAL BANKS- The following is a list of national banks that have failed and are now in the hands of receivers, with the amount of circulating notes issued to each : The first National Bank of Attica, N. Y., $45,000; the Merchants National Bank of Wash ington, D. C., $180,000; the Venango National Bank of Franklin, Penn., $35,000; the Tennessee National Bank of Memphis, Tenn., $90,000; the First National Bank of Newton, Mass., $130,000; the First National Bank of Selma, Ala., $85,000; the First National Bank of New Orleans, La., $180,000. In addition to these, two banks have taken up their bonds and deposited lawful money in the Treasury of the United States to the amount of their outstanding circulation-viz.: The First National Bank of Carondelet, New Orleans, $25,500; the First National Bank of Columbia, New Orleans, $11,990; making a total of $832,490 which has reverted to the Government; upon the return and distruction of which an equal amount of circulation will be at the disposal of the Comptroller of the Currency for distribution, according to the terms and conditions prescribed in the national currency act, subject to the same rules that governed the distribution of the amount originally authorized by the act of Congress.New York Times.

10. June 20, 1867 Baton Rouge Tri-Weekly Gazette & Comet Baton Rouge, LA
Article from Baton Rouge Tri-Weekly Gazette & Comet, June 20, 1867

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LIST OF SUSPENDED NATIONAL BANKS.-The following is a list of national banks that have failed are now in the hands of the receiver, with amount of circulating notes is sued to each : First National Bank, Attica, New York, circulation $45,000; Merchants' National Bank Washington, D. C., $150,000; Venango National Bank Franklin, Pa., $85, 000; Teonessee National Bank, Memphis, $90,000; First National Bank, Newton, Mass., $130,000; First National Bank, New Orleans, $180,000. In addition to these, the First Na. tional of Carondelet, Missouri, with a circulation of $25,000, and First National of Columbia, with a circulation of $11,990, have taken up their bonds and deposited lawful money in the United State Treasury to the amount of their outstanding circula tion. Here is an aggregate of $832,490 which has reverted to the Government, upon the return and destruction of which an equal amount of circulation will be at the disposal of the currency for the currency for distribution according to the terms and conditions prescribed in the National Currency act, subject to the same rules as governed the distribution of the amount originally authorized by Congress. Banks Without Circulation.-Quite a number of national banks have been organized, to which the Controller has not yet given any circulation because the amount provided for by law is already out, and there are many others that have received only part of the amount to which they would, un der other circumstances, be entitled. There is a pressing demand for more currency west of the Mississippi, and more particularly in Kansas, which he is anxious to meet, and he will do 80 as soon as a sufficient amount of these broken banks have been restored.

11. July 13, 1867 Dallas Herald Dallas, TX
Article from Dallas Herald, July 13, 1867

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FAILURES OF NATIONAL BANKS.The following is a list of National Banks that have failed and are now in the hands of the receivers, with the amount of circulating notes issued to each: The First National Bank of Atticit, New York, $45.000; the Mer. chants' National Bank of Washington, D. C., $180,000; the Venango National Bank of Franklin, Pennsylvania, $85,000; the Tennessee National Bank of Memphis, Tennessee, $90,000; the First National Bank of Newton, Massachusetts, $130,000; the First National Bank of Selma, Alabama, $85,000; the First National Bank of New Orleans, Louisiana, $180,000. In addition to those, two banks have taken up their bonds and deposited lawful money in the Treasury of the United States to the amount of their outstanding circulation, viz: The First National Bank of Carondelet, New Orleans, $25,000; the First National Bank of Columbia, New Orleans, $11,990, making a total of $832,490 which has reverted to the Government, upon the return and destruction of which an equal amount of circulation will be at the disposal of the Comptroller of the Currency for distribution. according to the terms and conditions prescribed in the National Currency Act, subject to the same rules that governed the distribution of the amount originally authorized by the act of Congress.

12. July 19, 1867 The Jasper Weekly Courier Jasper, IN
Article from The Jasper Weekly Courier, July 19, 1867

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NO. 23. The following is a list of Na. tional Banks that have failed, and are DOW in the hands of receivers, with the amount of circulating notes issued to each:-First National, Atica. New York, $45,000; Merchants' National, Washington, D. C., $180,000; Venango National; Franklin, Pa., $85,000; Tennessee National, Memphis, Tenn., $90,000; First National, Newton, Mass., $130,000; First National Selma, Ala., $85,000; First National New Orleans, La., $180,000. In ad dition to these, two banks have taken up their bonds, and deposited lawful money in the United States Treasury to the amount of outstanding circulation, viz: Firat National, Columbia, $11,990-making a total of $832. 490 reverting to the Government, upon the return and destruction of which an equal amount of circulation will be at the disposal of the Comptroller of the Currency for distribution.

13. October 10, 1867 Clearfield Republican Clearfield, PA
Article from Clearfield Republican, October 10, 1867

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NATIONAL BANKS SUSPENDED.-The following National Banks have passed into the hands of Receivers: Croton National Bank, N. Y. National Bank of W bitestown, Oneida county, N. Y. Atlas Bank, of Providence, R. I. Unadilla National Bank, Unadilla, New York. Kingston National Bank, Kingston, New York. Farmers' and Citizens' National Bank, Brooklyn, N. Y. First National Bank, Utica, N. Y. First National Bank, Medina, N.Y. First National Bank, Columbia, N.Y. Venango National Bank, Franklin, Pennsylvania. Merchants' National Bank, Washington, D. C. Tennessee National Bank, Memphis, Tennessee. First National Bank, New Orleans, Louisiana. First National Bank, Carondelet, Missouri. First National Bank, Selma, Alabama.

14. November 22, 1867 Indiana American Brookville, IN
Article from Indiana American, November 22, 1867

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List of Broken National Banks. The following is a list of the National Banks that have suspended and passed in. to the hands of receivers: Croton National Bank, New York, National Bank of Whitestown, Oneida county, N. Y. Atlas Bank of Providence, R. I. Unadilla National Bank, Uuadilla, N. Y. Kingston National Bank, Kingston, N. Y. Farmers' and Citizens' National Bank, Brooklyn, N. Y. First National Bank, Utica, N. Y. First National Bank, Medina, N. Y. First National Bunk, Columbia, N. Y. Venango National Bank, Franklin, Pa. Merchants' National Bank, Washington, D C. Tennessee National Bank, Memphis, Tennessee. First National Bank, New Orleans, La. First National Bank, Carondelet, Mo. First National Bank, Selma, Ala. The notes of these Banks are not affect. ed in value.

15. December 2, 1872 New-York Tribune New York, NY
Article from New-York Tribune, December 2, 1872

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curity, or as collateral security, for any loan of money, or for a consideration shall agreeAto withhold the same from use, or shall offer or receive the custod or promise of custody of such notes as security, or as collateral security or consideration, for any lloan of money." 5th of April last the Controller was advised that bank On the in the City of New-York, with a capital of $1,000,000, a and whose average exchanges at the Clearinghouse did not exceed $300,000, was that morning creditor at the Clearing-house for $4,770,000. A8 it was evident that this large credit was not the result of legitimate business, the examiner was directed to make an exam ination of the bank, which was immediately done, 114 connection with a member of the Clearing-house committee. From the examination, which was thoroughly and carefully conducted, it appeared that deposits had been made in that bank, by one individual, upon the morning of April 5 to the amount of $4,100,000, the whole of which was drawn out upon the same day, upon the checks of the depositor, in legal-tender notes. The president of the bank denied that the bank had any interest in these trans actions, and there was no evidence of any loan, or of ad. vances in any shape. upon these deposits. These traus actions were the subject, subsequently, of an investiga tion by the Bank Committee of the House of Represent tarives, and, although it was clear that the spirit of the law had been violated, no evidence could be obtained to warrant the commencement of a suit for the recovery of the penalty prescribed in the act referred to. The in vestigation undoubtedly had the effect to prevent the repetition of similar transactions; no offenses of this been kind, on the part of any national bank, having since brought to the attention of the Controller. The New-York Clearing house Association subse quently passed a resolution declaring "that the Clearinghouse Committee be and is hereby directed, whenever it appears, in its judgment, that legal-tender notes have been withdrawn from use through the agency of any bank, members of the association, to make an immediate examination of the bank in question, and should there appear to be complicity on the part of the bank or its officials, to suspend said bank from the Clearing house until action of the association shall be taken there on." The withdrawal of currency for illegitimate purposes has, however, since been accomplished without the assistance of the banks. The rigid enforcement of the resolution of the Clearing-house will prevent complicity on the part of banks in such transactions; and it the New-York Stock Board and the leading banking houses will unite with the Clearing-house, and refuse to transact business with unserupulous men. who do not hesitate to embarrass legitimate business for the parpose of increasing or diminishing the values of stocks or bonds in which they are temporarily interested, they can do more to prevent such operations team any Congress enactment. INSOLVENT BANKS. Twenty-one national banks, organized in 11 different States, with an aggregate capital of $1,236,100, have failed since the organization of the system in 1863 The total circulation of these banks was $2,942,793. of which $2,441,430 has been redeemed in full, leaving a belance still outstanding of $501,363, which will also be redeemed, upon presentation to the Treasurer of the United States, from the avails of United States bonds held as security for that purpose. Of these banks, five have been finally closed (two during the past year), baying paid dividends to their ereditors. Six national banks have fatted during the past year. New-York: Of these, the Union Square National Bank, the Fourth National Bank, Philadelphia, and the Waverley National Bank, New-York, have paid their creditors in full-a settlement, it is believed, without a precedent prior to the establishment of the national system. The Eighth National Bank, New-York, has paid dividend of 50 per cent; the Ocean National Bank, New-York, a dividend of 70 per cent; and the receiver of the Ocean National Bank, and of the First National Bank of Fort Smith, Ark., estimate that the creditors of both these banks will últimately receive a dividend of 100 cents on the dollar. The Venango National Bank of Franklin, Penn.: the Merchants' National Bank of Washington. D. C. the First National Bank of Selma, Ala., and the First National Bank of New-Orleans, were United States depositories. e-final dividend in favor of the creditors of the First National Bank of Vicksburg has been unexpectedly delayed by the recent presentation of a claim of the United States for money alleged to have been illegally deposited by the Collector of Internal Revenue of that district, in the year 1868. Since that time no lesses have occurred to the Government by deposits made in the national banks, although many millions of dollars have been continually on deposit with banks which are designated as depositories. The three a first-named banks, at the time of their failure, had large amount of Government funds on deposit. SURPLUS AND SPECIE-EXTENDING THE LIMIT OF SURPLUS. The law requires that every national bank shall carry one-tenth part of its profits to surplus-fund account before the declaration of a dividend, until the same shall amount to 20 per cent of its capital stock. This wise provision has been generally observed. and the returns show that the banks now have a surplus of more than $100,000,000, and considerably more than onefifth of their capital in surplus account. The act also limits the liabilities of any association, person, com pany, or corporation, for money borrowed, to one-tenth of the capital stock paid in. The Controller recommends that this limit be extended to one-tenth of the capital and surplu. which will have a tendency to 10. crease the surplus fund beyond the limit required by the law. The following table will exhibit the aggregate amount of specie held by the national banks at the dates mentioned, the coin, coin certificates, and checks payable coin held by the national banks of the City of New York being stated separately. The country banks have not heretofore separated coin in their reports: -Held NationalsBanks in New- City.-

16. December 3, 1872 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, December 3, 1872

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notes, which will probably go to the Supreme Court for final adjudication. An assessment has been made upon the shareholders of the National Bank of Bethel, of 15% per cent, which, if collected, will pay the creditors in full, without interest, up to the date of the appointment of the Recoiver. A dividend of more than 30 per cent will also soon be declared in favor of the creditors of the First National Bank of Nevada. The affairs of the Eighth National Bank of New York, and of the First National Bank of Rockford, Illinois, are involved in litigation, and the date of the final closing of their affairs is uncertain. The Venango National Bank of Franklin, Pennsylvania; the Merchants' National Bank of Washington, District of Columbia; the First National Bank of Selma, Alabama, and the First National Bank of New Orleans, were United States depositories. The final dividend in favor of the creditors of the First National Bank of Vicksburg has been unexpectedly delayed by the recent presentation of a claim of the United States for money alleged to have been illegally deposited by the Collector of Internal Revenue of that district, in the year 1868. Since that time no losses have occurred to the Government by deposits in the National Banks, although many millions of dollars have been continually on deposit with banks which are designated as depositories. The three first-named banks, at the time of their failure, had a large amount of Government funds on deposit. The fifth section of the act of March 3, 1797, provides "that when any revenue officer or other person hereafter becoming indebted to the United States, by bond or otherwise, shall become insolvent; or where the estate of any deceased debtor, in the hands of executors or administrators, shall be insufficient to pay all the debts due from the deceased, the debt due to the United States shall be first satisfied; and the priority horeby established shall be deemed to extend as well to cases in which a debtor, not having sufficient property to pay all his debts, shall make a voluntary assignment thereof, or in which the estate and effects of an absconding, concealed, or absent debtor shall be attached by process of law, as to cases in which an act of legal bankruptcy shall be committed." The Treasurer of the United States claims, under this act, that all deposits in these banks at the time of suspension, belonging to the United States, whether deposited to its credit directly, or to the credit of its disbursing officers, with interest thereon from the date of the failure of the bank, are entitled to priority of payment. In the case of the First National Bank of New Orleans, other questions have arisen. At the date of its suspension the bank was in charge of officers of the Government, who were also engaged in the settlement of the accounts of a defaulting ex-Assistant Treasurer of the United States. The nominal balance to the personal credit of this individual upon the books of the bank was $815,779.10, and a certified check for this amount was taken from him, and about $94.000 collected upon it. The Government holds this check, and claims that the balance uncollected shall have priority in payment, the same as if that amount had been on deposit to the credit of the United States. The creditors of the bank, on the other hand, claim that, at the time of the suspension, the bank held legal offsets, and that there was really no balance upon the check held by the Government. The Receiver concurs in this opinion, and if the claim should be presented to him in the usual way for settlement, it would be disallowed. Unsuccessful attempts have been made to obtain a final decision in the Supreme Court of the United States upon these questions, owing, in part, as is believed, to defects in the present act. A large amount of funds has been on deposit with the Treasurer for the last three years, which will be distributed among the creditors as soon as a decision of the Court can be obtained upon these points. Section 50 of the Fational Currency act provides that the Comptroller shall make a ratable dividend upon all claims which may be proved to his satisfaction or adjudicated in a court of competent jurisdiction; and this is the only existing provision in reference to the method of procedure in the proving of claims against an insolvent bank. The law should be so amended as to define the duties of the Comptroller and of the Receiver in proving claims and in prescribing the mode and manner of referring conflicting interests to the proper tribunal for final arbitrament. A bill for this purpose was introduced into the last Congress, reported by the Bank Committee, and referred to the Judiciary Committee of the House of Representatives. The passage of this bill will facilitate the settlement of the affairs of these banks, and simplify the method of procedure in all cases of insolvent banks. An amendment is also suggested giving authority for the return of the assets of an insolvent bank to an agent of the shareholders upon their unanimous request, after full payment shall have been mode to the creditors of the bank. Where dividends are delayed by reason of protrasted litigation, provision should also be made for the investment of the funds on deposit with the Treasurer in interest-bearing securities. # SURPLUS AND SPECIE. The law requires that every National Bank shall carry one-tenth part of its profits to surplus-fund account before the declaration of n dividend, until the same shall amount to 20 per cent of its capital stock. This wise provision has been generally observed, and the returns show that the banks now have a surplus of over one hundred millions of dollars, and considerably more than one-fifth of their capital in surplus account. The act also limits the liabilities of any association, person, company, or corporation, for money borrowed, to one-tonth of the capital stock paid in. The Comptroller recommends that this limit be extended to one-tenth of the capital and surplus, which will have a tendency to increase the surplus fund beyond the limit required by the law. Banks have hitherto been in the habit of reporting, as specie, checks payable in coin. The result is to give an erroneous aggregate of tho amount of coin held by the banks, the вато amount being reported by the bank holding the coin and the bank holding the check. In the present statement, and in all future statements, the item of coin will include only actual coin and United States coin certificates which are payable on demand at the Treasury. # SHINPLASTERS. The State of Alabama has issued for some years past, in the form and similitude of bank notes, of five different denominations, certificates which read as follows: "The State of Alabama: Receivable as five dollars in payment of all dues to the State. Montgomery, May 1, 1867 (Signed) Governor. (Signed) Com. of Public Ac'ts." On the reverse: "Receivable in payment of taxes and all dues to the State. Issued under the provisions of the act entitled 'An act to provide for the issue of certificates or receipts by the State,' approved Feb. 19, 1867. The credit and faith of the State of Alabama are pledged for the redemption of this certificato or receipt, as provided for in such act." A circular was also issued by the Governor of Alabama, on July 24, 1867, and is still in circulation, which states that an opinion has been ob-

17. August 9, 1878 The Cambria Freeman Ebensburg, PA
Article from The Cambria Freeman, August 9, 1878

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Co., the commonwealth holds the bond of Mr. & Rawle, with undoubted security for its payment. The reason for its not being paid on the 6th of May by Mr. Rawle was that there was yet in the hands of the assignee some property undisposed of. As soon as the affairs of the bank are wound up by the assignee Mr. Rawle will pay the balance into the treasury. The other five broken banks were marked upon the books of the Treasury when I took charge of it us "certified to the Attorney General" for collection, which took them out of this department, and no responsibility for their collection or settlement belongs to the Treasurer. I: is but just to add that in the case of the Bank of Commerce. Erie, that suspended during the term of Hon. En Slifer as Treasurer, and the Venango National Bank, Franklin, that suspended during the term of Hon. W. H. Kemble as Treasurer. that both gentlemen claim they were authorized depositaries of the State and that the moneys lost in them were deposited by the County Treasurers under authority of law. In the case of G. F. Mason & Co., Towanda, Inland Insurance and Deposit Company, Laneaster, and the Bank of Brandywine, West Chester. which suspended during the term of Hon. Robert W. Mackey as Treasurer, there is on file in this office, for the use of the commonwealth. the bond of Hon. R. W. Mackey, with unquestioned security, conditioned for the payment of whatever amount banks. may not be received from the assets of said The item of $248,000, "advanced to members of the Legislature," WAS deducted from!their Warrants by me when paid at the close of the session and proper vouchers have been filed in the Auditor General's office for the same. With the exception of the $20,872.48 in the six broken banks. as herein explained, the balance as turned over to me by Mr. Rawle was in the several banks as certified by them to the Auditor Treasurer. General and was subject to my check as I found no notes, checks, due bills or other evidences of debt owing from any individual, firm or corporation to the Treasurer or the commonwewlth other than those contained in the foregoing list. I herewith append statement of the balance in the Treasury at the close of business on the 31st of July, 1878. showing the amount of assets to be $1,225,943.36. Of this st.m there was in the general fund $313,861.26 and in the sinking fund $912,062.10. The amount of money in the sinking fund not appropriated to payment of outstanding loans that have been called for redemption and are due and payable the 1st of August and Ist of October, 1878, is $20,570.24. There will be due on the 1st of January and February, 1879, interest on the public debt amounting to $605,000 00. Or this amount there is in the treasury now but $29,570.24, and the balance will have to be provided for by the colfund. lection of revenues belonging to the sinking BALANCE IN THE TREASURY. JULY 31. 1878

18. August 14, 1878 Clearfield Republican Clearfield, PA
Article from Clearfield Republican, August 14, 1878

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Total $20,872 All of which institutions had failed. For the item of $1,721.60, DougherS, ty Bro. & Co., the Commonwealth holds the bond of Mr. Rawle, with undoubted security for its payment. The reason for its not being paid on the 6th d a of May by Mr. Rawle was that there was yet in the hands of the assignee some property undisposed of. As soon r as the affairs of the bank are wound up by the assignee Mr. Rawle will pay the balance into the Treasury. The other five broken banks were marked upon the books of the Treas. ury when I took charge of it as "cer) tified to the Attorney General" for collection, which took them out of the department, and no responsibility for their collection or settlement belongs to the Treasurer. e It is but just to add that in the case of the Bank of Commerce, Erie, that suspended during the term of Hon. Eli Slifer as Treasurer, and the Venango National Bank, Franklin that suspended during the term of Hon. W. H. Kemble as Treasurer, that both gentlemen claim that they were authorized depositaries of the State and that the moneys lost in them were deposited by the County Treasurers under authority of law. In the case of G. F. Mason & Co., Towanda, Inland Insurance and Deposit Company, Lan. caster, and the Bank of Brandywine, : West Chester, that suspended during the term of Hon. Robert W. Mackey 0 as Treasurer, there is on file in this 0 office, for the use of the Common0 wealth, the bond of Hon. Robert W. 0 Mackey, with unquestioned security 0 conditioned for the payment of what0 ever amount may not be received from a the assets of said banks. n The item of $248,000, "advanced to a members of the legislature" was deducted from their warrants by me when paid at the close of the session and proper vouchers have been filed in the Auditor General's office for the same. With the exception of the $20,872.48 in the six broken banks as herein explained, balance as turned over to me , by Mr. Rawle, was in the several banks as certified by them to the Anditor General and was subject to my check as Treasurer. I found no notes, checks, due bills or other evidences of debt owing from any individual firm or corporation to the Treasurer or the Commonwealth 1. other than those contained in the fore. at going list. e, or I herewith append statement of the balance in the Treasury at the close of d business on the 31st of July, 1878, showing the amount of assets to be 0 $1,225,943.36. Of this sum there was in the general fund $313,861.26 and in the sinking fund $912,032.10. The amount of money in the sink-

19. August 14, 1878 The Somerset Herald Somerset, PA
Article from The Somerset Herald, August 14, 1878

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Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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All of which institutions had failed. For the item of $1,721 60, Daugherty, Bro. & Co., the commonwealth holds the bond of Mr. Rawle, with undoubted security for its payment. The reason for its not being paid on the 6th of May by Mr. Rawle, was that there was yet in the hands of the assignee some property undisposed of. As soon as the affairs of the bank are wound up by the assignee Mr. Rawle will pay the balance into the treasury. The other five broken banks were marked upon the books of the Treasury when I took charge of it as "eertified to the Attorney General" for collection, which took them out of this department, and no responsibility for their collection or settlement belongs to the Treasurer. It is but just to add that in the case of the Bank of Commerce, Erie, that suspended during the term of Hon. Eli Stifer as Treasurer, and the Venango National Bank, Franklin, that suspended during the term of Hon. W. H. Kemble as Treasurer, that both gentlemen claim they were authorized depositaries of the State and that the moneys lost in them were deposited by the County Treasurers under authority of law. In the case of G. F. Mason & Co., Towanda, Inland Insurance and Deposit Company, Lancaster, and the Bank of Brandywine, West Chester, which suspended during the term of Hon. Robert W. Mackey as Treasurer, there is on file in this office, for the use of the commonwealth, the bond of Hon. R. W. Mackey, with unquestioned security, conditioned for the payment of whatever amount may not be received from the assets of said banks. The item of $248,000, "advanced to members of the Legislature," was deducted from their warrants by me when paid at the close of the session and proper vouchers have been filed in the Auditor General's office for the same. With the exception of the $20,872 48, in the six broken banks, as herein explained, the balance as turned over to me by Mr. Rawle was in the several banks as certified by them to the Auditor General and was subject to my check as Treasurer.