18964. Bank of the United States (Philadelphia, PA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
May 1, 1841*
Location
Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model
gpt-5-mini
Short Digest
354a7430

Response Measures

None

Description

Articles (1852) describe the Bank of the United States as having 'finally suspended operations' in 1841 and stockholders moving to make a general assignment of assets and appoint trustees in 1852. No run is described; the institution remains suspended with trustees and assignment activity consistent with permanent closure/receivership. Bank charter/legal disputes and assignment motivate the suspension and impending winding up. OCR errors corrected ('eperations' -> 'operations').

Events (2)
1. May 1, 1841* Suspension
Cause
Voluntary Liquidation
Cause Details
Bank had suspended operations in 1841 and subsequently made partial assignments; 1852 meetings of stockholders recommend general assignment of assets and surrender of corporate powers to wind up the institution under trustees.
Newspaper Excerpt
when the bank finally suspended eperations.
Source
newspapers
2. March 25, 1852 Other
Newspaper Excerpt
Mr. Randall's resolution in favor of a general assignment... five trustees under the general assignment were elected: Anthony F. Schwab, Morton C. Rogers, James Cooper..., Charles Macalister, and Daniel L. Miller, Jr. Adjourned to meet on the first Monday in May. The report... recommended that application should be made to the Legislature to relieve the bank from all liability to the commonwealth: that they had prepared an act of assembly for the purpose of closing the trusts and effecting a speedy distribution of the assets of the bank, and that a committee of seven be appointed to proceed to Harrisburg for that purpose. The bank has in its corporate capacity, made three assignments, but they do not, separately or together, constitute a general assignment. Of the two millions, four instalments, amounting to $400,000, yet remain due. It is supposed that the right to exact the last mentioned sum will cease if the bank shall surrender its corporate privileges. It is admitted that some doubt may exist; but this consequence seems to be equitable, and most probably is law. By the charter. the bank agrees to pay a bonus equal to about $9,000,000. If they had obtained their charter on the same terms which were granted to other banks, the sum of $168000 per annum would have been the utmost extent of the bonus they should have paid for their charter. Ten years ago it was known from the books of the bank, that 197,551 shares, or nearly two-thirds of the capital stock, was held by foreigners, and that over thirteen millions of dollars were due to creditors in Europe, for which depreciated and repudiated State stocks were pledged. The meeting recommended a general assignment and elected five trustees to carry it out. (NEW YORK HERALD, Mar 25, 1852).
Source
newspapers

Newspaper Articles (2)
1. February 18, 1852 The New York Herald New York, NY
Article from The New York Herald, February 18, 1852

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Article Text

will take out nearly three hundred thousand dollars in specie, the bulk of which will be American gold. This to pretty large shipment for Boston, and shows the pres sure of precious metals outwards. The Pacific, from this port for Liverpool, on Saturday, the 21st last, will take out upwards of a million in specie. There have been several failures among the dry goods trade within the past week. and we believe, in every instance, it appeared that California operations was the cause. During the past year more than one hundred failures in this and other Northern cities have been caused entirely by losses incurred in the California trade There are doubtless many more left tottering, who will go down almost any day. These explasions have no effect upon general business, and are soon forgotten. An adjoursed meeting of the stockholders of the Bank of the United States was held in Philadelphia on Mon. day, the 16th inst. The report of the committee previcusly appointed was read and adopted The resolu tions deem it inexpedient, at the present time, to make a general assignment of the remaining assets of the institution, and euggest the propriety of asking the Legisla* ture to relieve the corporation from the liability of the payment of the annual bonus due the State. A committee of seven was appointed to carry the resolutions into effect, and the meeting adjourned to some evening in the first week of March. It appears, from the report read at the meeting, thatThe original charter provides that during the first 20 years. the bank, in addition to the other aums. shall pay $100,000 per annum to the commonwealth for the school fund. amounting in the whole to two millions of dollars. The bank has in its corporate capacity, made three assignments, but they do not, separately or together. constitute a general assignment. and since the act of 5th May, 1841. perhapsnone but the stockholders could execute such an assignment By the 8th section of the act (if the 5th May, 1841. it is provided that the stockholders may, at any regular meeting, make a general assignment, and from that time the corporate powers of the said bank shall cease and determine Of the two millions, four instalments, amounting to $400.000, yet remain due. It is supposed that the right to exact the last mentioned sum will cease if the bank shall surrender its corporate privileges It is admitted that some doubt may exist; but this consequence seems to be equitable, and most probably is law. By the charter. the bank agrees to pay a bonus equal to about $9.000,000. If they had obtained their charter on the same terms which were granted to other banks, the sum of $168000 per annum would have been the utmost extent of the bonus they should have paid for their charter. Notwithstanding the exorbitant amount the commonwealth have already received to the damage of the creditors and stock. holders of the bank, Fundry officers of the commonwealth have employed private counted to recover the annual instalments of $100.000, with interest, which have become due since the year 1841, when the bank finally suspended eperations. This sum will amount to $2,000,000 and upward.

2. March 25, 1852 The New York Herald New York, NY
Article from The New York Herald, March 25, 1852

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Article Text

Bank of the United States. An adjourned meeting of the stockholders of the Bank of the United States was held on the 17th inst. at the Merchants Exchange, Philadelphia, for the purpose of receiving the report of the committee appointed at the last meeting. and for the transaction of other business in relation to the institution. The attendance was unusually large. and deep interest was evidently felt in all the proceedings. On motion of Mr. WM. L. HIRST. Mr. Macalister was elected to the chair, and Mr. E. D. Ingraham was chosen secretary. The SECRETARY then read the report of the committee. recommending that application should be made to the Legislature to relieve the bank from all liability to the commonwealth: that they had prepared an act of assembly for the purpose of closing the trusts and effecting a speedy distribution of the assets of the bank. and that a committee of seven be appointed to proceed to Harrisburg for that purpose. Mr. RANDALL moved that the report be adopted. This motion was seconded. and carried unanimously Mr. RANDALL then offered a resolution to the effect that it WAS expedient for the stockholders of the Bank of the United States to make a general assignment of its assets to trustees. and that the stockholders now present. represented. do now decide on that question, according the scale of votes allowed in elections of directors Pending this question considerable discussion arose between different parties. and particularly in reply to some remarks in reference to the charter. Mr. SCHWAB. of the committee. observed that. though be now. and formerly. supported Mr. Randall's resolutions. be did not fully agree with him in his present remarks on corporated rights. which. at the present stage of matters. were entirely irrelevant. and had nothing to do with the object of this meeting Representing 110.000 shares held in Holland. 10.000 in Great Britain. and over 8.000 owned in New York and South Carolina. Mr. Schwab wanted the Legislature to do justice-that they should be told. if you had fulfilled your contract with the bank. by paying the interest of $300.000 per annum due on State stocks, the bank would have fulfilled her's with the Commonwealth. It was surprising to him. that when the recent claims of the Commonwealth were not an no Philadelphia lawyer. generally 80 tamous for shrewdness and ingenuity. was to be found hoavailed himself of that defence. Mr. S. complained that the trustees were eating up the means of the bank. and thus the property of the foreign stockholders who had trusted to American honor. He was adverse to any cessation of corporate powers, and in favor of a general assignment; but relying. at the same time. on the honor and integrity of the Legislature. to do what was right under the circumstancesremembering that the State was partly the cause of the suspension of the bank. Ten years ago it was known from the books of the bank. that 197.551 shares. or nearly two-thirds of the capital stock. was held by foreigners. and that over thirteen millions of dollars were due to creditors in Europe. for which depreciated and repudiated State stocks were pledged. Yet their opinion, on any subject referring to the affairs of the bank. was never consulted. and consequently the best assets of the institution were set aside for the benefit of the Philadelphia banks. and other preferred creditors in this country. At former meetings. by distributing the stock amongst the partisans of the latter. Mr. Schwab's efforte were always defeated. particularly by a motion of Mr. Gibbons. who held full four shares since the 6th of April. 1841. in his name. and who then pretended to proteet the best interests of the bank. The same gentleman is now acting as counsel for the commonwealth. in direct opposition to the very same interest he once so zealously defended. Mr S. complained that sufficient notice of meetings or of dividend= due to creditors was not given to foreign creditors or stockholders. in order that their interests might be protected. and also that. in relation to a certain eight millions of dollars in property. held by the bank. Measrs Hope & Co. of Amsterdam. and others. had. for the last nine years. not been able to get any information. The impression generally prevailing. that the interests of the creditors and those of the stockholders were opposed to each other. did not appear to him correctly taken. The stockholders assistance to the creditors is perhaps more needed than the latter are aware of Yet. as representative of the former. he was willing to give it as much as it was in his power, considering it far preferable to trust in the good feelings and equity of those creditors. with some of whom he was personally acquainted. than in the exertions of the present trustees. whose only object it was to perpetuate their salaries In conclusion. Mr. S. remarked that if it was the object of people to depreciate the supposed value of the assets of the bank. with aview thereby to escape further investigation, he would assure those parties that whether the value of the stock was twenty dollars per share. or that of blank paper, neither would prevent him from publishing to the world an account of one of the greatest robberies ever recorded in the annals of history Mr. Randall's resolution in favor of a general assignment. was then put to a vote. and resultedAyes-730 voter representing 9.604 shares Naus-126 votes. representing 3.160 shares. So Mr. Randall's resolution was passed. On motion of Mr. RANDALL. an election was gone into for five trusteer under the general assignment The following gentlemen were elected:-Authory F Schwab. Moiton C. Rogers. James Cooper (of Pottsville), Charles Macalister. and Daniel L. Miller. Jr Several resolutions. in reference to the power of said trustees. &c. were proposed by Mr. Randall. which were unanimously carried Mr. SCHWAI offered a resolution that anotice of stockholders' meetings. or whenever a dividend out of the assets of the bank should be declared. should be published in two Philadelphia daily newspapers. the NEW YORK HERALD. the London Times. and the Amsterdamer Handelsbled. at least three callendar months previous to such meeting being held or such dividend being payable. which was unauimously adopted. On motion of Mr. WALLON. it was Resolved. That when this meeting adjourn. it do ad. journ to meet on the first Monday in May. Adjourned