19177. Second Bank of the United States (Philadelphia, PA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
federal
Start Date
February 27, 1852
Location
Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model
gpt-5-mini
Short Digest
c3610c8c

Response Measures

None

Description

The articles describe the Bank of the United States (Second Bank) as having ceased to exercise banking functions and having assigned its property in trust to creditors, with stockholders voting to pursue a general assignment and appoint trustees to distribute assets. No run is mentioned. This is a suspension/assignment leading to permanent winding up rather than a temporary closure or reopening. Dates use the newspaper references (meeting of stockholders Mar 17, 1852; Supreme Court affirmation Feb 27, 1852).

Events (2)
1. February 27, 1852 Suspension
Cause
Voluntary Liquidation
Cause Details
Bank had ceased to exercise banking functions and assigned its property in trust to creditors; legal actions by the Commonwealth affirmed against the bank; stockholders moving toward general assignment of assets to trustees.
Newspaper Excerpt
The Supreme Court, yesterday, affirmed two judgments ... The bank resisted the claim, on the ground that it had ceased to exercise the functions and franchises of banking, and had assigned all its property in trust for its creditors.
Source
newspapers
2. March 17, 1852 Suspension
Cause
Voluntary Liquidation
Cause Details
Stockholders voted in favor of a general assignment of assets and elected trustees to carry out the assignment and distribution of assets to creditors; discussion of winding up rather than resumption of banking operations.
Newspaper Excerpt
An adjourned meeting of the stockholders ... The committee recommended that application should be made to the Legislature to relieve the bank from all liability to the commonwealth: ... that it was expedient for the stockholders of the Bank of the United States to make a general assignment of its assets to trustees.
Source
newspapers

Newspaper Articles (5)
1. November 13, 1851 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, November 13, 1851

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# LOCAL INTELLIGENCE tion of "Steam in Atlantic-street," remains in sta-quo, the red-flag still waves, and that horseman still charges in front of the locomotive. Messrs. Josiah Lee & Co. of Baltimore, have taken $750,000 Coupon Bonds of the Baltimore and Ohio Railroad at 80. The amount of coal transported over the Delaware and Hudson Canal during the week ending Nov. 8, 1851, was 31,230 Tuns. Quantity previously received 664.805 Total 696.035 Up to the same period in 1850 460.114 Increase this year 235,921 The receipts on the Cleveland, Columbus and Cincinnati Railroad for the month of September last, from passengers and freight, were $72,305 47, which is some $2,500 more than we stated some weeks since, at which time the freight amount was not made up. The estimate for October was $55,000, but they will largely exceed that sum. The receipts of the Little Miami Railroad for the month of October, were $10,056 03 For October 1850, they were 8,471 19 Increase $1,584 84 or 20 per cent. The friends of the Air Line Railroad project between New-York and Boston, will meet at New-Haven on the 13th inst. The friends of this route predict great things for it, and are confident of its success. There is a new movement in this and the Philadelphia market in United States Bank Stock, of which several thousand shares have been recently sold at $1 up to $2 per share. The purchases are supposed to be for Messrs. Hope & Co., of Amsterdam. In relation to this movement The North American says: It is well known that these parties have been purchasing this stock for some time past, for what ultimate object is not known. Other rumors are in the street to the effect that the Bank holds large tracts of land in Illinois, which are likely to be much enhanced in value by the anticipated success of R. J. Walker in obtaining the twenty million loan, on account of the Illinois Railroad, which will pass through these lands. This rumor is of slight importance, as we learn the Bank has disposed of a greater portion of these lands. Those intimately acquainted with the present condition of the Bank assert that the stock is entirely valueless'; but whether this is so, or whether there is some secret movement on foot, or an improved condition of the assets of the Baak, known to but few, we are unable to say. Some parties hint that it is the purpose of the foreign stock-holders to take the charter, and pay in new capital: or to liquidate or compromise the claims against the Bank and thus rescue the assets from the hands of the numerous receivers and assignees, to whom large salaries are now paid. We do not place any confidence in this rumor: but stranger things than this might occur. The Bank of Savannah is about to increase their capital stock, by the sale of stock, to the amount of $500,000. The Boston Journal says: The dull weather and the election have combined to limit stock operations to-day. The upward movements in Norfolk County, Vermont and Massachusetts, and East Boston were continued at First Board, and, as will be noticed in our list of sales, very considerable advances were realized. In other stocks the market was quite inactive and spiritless. The official statement of the earnings of the Ogdensburg Railroad for the month of October, is as follows: Freight $29,526 08 Passengers 10,760 84 Rents 262 54 $40,549 46 In corresponding month of last year 22,732 06 Gain this year, 78 per cent $17,817 40

2. November 20, 1851 The New York Herald New York, NY
Article from The New York Herald, November 20, 1851

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Summary of this Morning's News. There is DO doubt of the final and satisfactory settlement of all the difficulties between Spain and the United States, as will be seen by our special telegraphic correspondence from Washington. Each nation is to salute the other's flag; and the claims of Spain, for the damage done to the property of her subjects in New Orleans, are to be referred to Congress. The affair being thus satisfactorily settled, Mr. Webster and the Spenish minister will dine together to-day, and discuss matters and things over a bottle of wine. We may soon expect the release of the American prisoners, by way of an earnest on thepart of Spain of her good feeling towards the United States. A great deal of misstatement has appeared in the correspondence of the newspapers concerning this matter. The firing at the United States mail steamer Falcon, isexplained, and no cause of difficulty now exists between the two countries. We shall, therefore, hear no more of "war, or rumors of war," from that quarterfor the present, at least. No official intelligence has been received by the government respecting the mutilation of the remains of the Americans who were shot by order of the Captain General, and the Spanish authorities assert that they were tried summarily, as pirates. They justify themselves for so doing, on the ground that they were declared pirates by their own government, and not entitled to the privileges provided for in the treaty between Spain and the United States. The Grand 'ury, at New Orleans, have been charged by Judge Larue to present all persons who are known to have been concerned in the destruction of the property of the Spanish Consul and his countrymen in that city. This is all very correct, and if it had been done before, many of the inflammatory rumors relative to our relations with Spain would have never been set afloat. The new constitution of Virginia has been adopted by & majority of fifty-seven thousand-fully half the votes in the State. The Common School Fund of Pennsylvania, yes. terday, obtained a verdict of $8,500 against the assets of the defunct Bank of the United States. This makes the claim of the State upon the assets of the late bank nearly one million of dollars. We learn from Buffalo that the Grand Jury have found true bills against twenty-five of the participants in the Syracuse riot and slave rescue. Another large meeting was last night convened in Philadelphia, for the purpose of prevailing upon the President to use his friendly influence with the government of Great Britain, with the view of obtaining the release of Smith O'Brien, and others, who were exiled for participating in the recent disturbances in Ireland. The meetings for this laudable purpose, which have lately been held in neighbering cities, may do much towards gaining the liberation of these unfortunate men. Why does not New York follow the example ! Several interesting items relative to the movements of the revolutionists in Northern Mexico, will be found under the telegraphic head. The Hebrew Benevolent Society celebrated their thirtieth anniversary, at the Chinese Museum, last evening. About two hundred guests were present, and the evening passed off most happily. About $2,500 were added to the funds of the society. Teasts were drank, and some of them responded to in elequent terms by the Recorder and a number of the Jewish Rabbi, who were present. The Mayor would have been present, but for the fict that he was under an engagement to entertain the Hungarians at his residence. He therefore sent a letter, and enclosed & subscription. The tenth annual meeting of the New York society for the relief of the widows and orphans of medical men, was held last evening at the City Assembly rooms, Broadway. It was attended by about one hundred and forty members of the faculty, and the invited guests were the Rev. Dr. Henry, representative of the church; the Hon. Charles P. Daly, Judge of the Court of Common Pleas, representative of the legal profession; Doctor B. Franklin Bache, of the U.S. Navy, and Dr. Cuyher, of the U.S. Army. Some happy and appropriate speeches were delivered on the occasion.

3. March 2, 1852 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, March 2, 1852

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U. S. BANK.- An important decision has just been made against this Bank by the Supreme Court of Pennsylvania, sitting at Philadelphia. It is thus noted in the Ledger: The Supreme Court, yesterday, affirmed two judgments of the District Court, in suits brought by the Commonwealth against the United States Bank, to recover the annual bonus secured in the charter to the State, of $100,000 due for nine years. The bank resisted the claim, on the ground that it had ceased to er cise the functions and franchises of banking, and had assigned all its property in trust for its creditors. The Commonwealth insisted that, as the stockholders annually elected directors, and frequently held meetings, they had not given up the franchises granted by the State, and that the bank was therefore bound to pay the annual bonus demanded.The Supreme Court sustained this position, and the State has therefore a settled claim against the bank for $1,300,000.

4. March 2, 1852 The Republic Washington, DC
Article from The Republic, March 2, 1852

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UNITED STATES BANK. The supreme court of Pennsylvania, on the 27th ultimo, as we learn from the Philadelphia Ledger, affirmed two judgments of the district court, in suits brought by the Commonwealth against the United States Bank, to recover the annual bonus secured in the charter to the State, of $100,000 due for nine years. The bank resisted the claim, on the ground that it had ceased to exercise the functions and franchises of banking, and had assigned all its property in trust to its creditors. The Commonwealth insisted that, as the stockholders annually elected direc. tors, and frequently held meetings, they had not given up the franchise granted by the State, and that the bank was therefore bound to pay the annual bonus demanded. The supreme court sus. tained this position ; and the State has therefore a settled claim against the bank for $1,300,000.

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

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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