19549. First National Bank (Titusville, PA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
622
Charter Number
622
Start Date
April 3, 1866
Location
Titusville, Pennsylvania (41.627, -79.674)

Metadata

Model
gpt-5-mini
Short Digest
624f3ee1

Response Measures

None

Description

The First National Bank of Titusville suspended temporarily after the failure/defalcation at correspondent Culver, Penn & Co.; newspapers report the suspension in early April 1866 and that the bank resumed business shortly thereafter (stockholders made losses good). No explicit bank run is described in these items.

Events (4)

1. December 14, 1864 Chartered
Source
historical_nic
2. April 3, 1866 Suspension
Cause
Correspondent
Cause Details
Failure/appropriation of bonds by correspondent banking house Culver, Penn & Co. led the bank to suspend payments temporarily.
Newspaper Excerpt
The First National Bank of Titusville, supposed at first to be clear of complicity, has suspended.
Source
newspapers
3. April 12, 1866 Reopening
Newspaper Excerpt
The President of the First National Bank of Titusville announces that the losses have been made good by the stockholders, and the bank was opened on Monday for business.
Source
newspapers
4. January 15, 1868 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (6)

Article from The Potter Journal, April 3, 1866

Click image to open full size in new tab

Article Text

-The financial crisis, created in the oil regions by the failure of Culver, Penn & Co., has created a deep feeling of indignation among the people in that quarter. The anxiety of thousands of hard working men who held the notes of the banks affected by this failure is intense, and for a time serious apprehensions of bloodshed were indulged. The Erie Dispatch says that "in some cases it has been found necessary to protect the banking institution of Mr. Culver from demolition. The First National Bank of Titusville, supposed at first to be clear of complicity, has suspended. A day or two more will develop full particulars."


Article from The Evening Telegraph, April 5, 1866

Click image to open full size in new tab

Article Text

Bank shares are unchanged. Farmers' and Mechanics' sold at 125. 206 was bid for North America; 90 for Northern Liberties; 28 for Mechanics'; 52 for Penn Township; 54 for Girard; 76 for Western: 62 for City: 52 for Commonwealth; 60 for Corn Exchange; and 56 for Union. . Canal shares are more active. Lehigh Navigation sold at 53; Delaware Division at 46@461, the latter rate an advance of I: Susquehanna Canal at 13$, a slight advance; and Schuylkill Navigation preferred at 30; 224 was bid for Schuylkill Navigation common; and 114} for Morris Canal preferred. Oil shares continue dull. Ocean sold at 9@91, and Sugar Creek at 24; 2 was bid for Maple Shade, and 3 asked. -The New York Tribune this morning says:"Money on call is more active at 6 per cent., and the rate is steadily hardening. The passage of the Loan bill will probably be followed by movements on the part of the heavy capitalists which will change the character of the money market by bringing the Government into the field as a borrower. The reduction of the army, soon to be made, will require a large amount, which must come from sources outside the Custom House or the Internal Revenue Department. The progress already made towards specie payments has disarranged values and business to such an extent, that the receipts from internal revenue will feel its effects, and the Secretary's calculation that he must borrow money to carry him through the fiscal year be realized. That he will want $112,000,000 is not probable; but that he will be a borrower to an extent sufficient to absorb a large amount of money now loaned on call at 5@6 per cent., is as certain as any future event can be." -The Bank Note Reporter has the following regarding the banks in (the Pennsylvania oil region:Oil City Bank, at Oil City. This bank is a State institution, with a circulation of some $260,000, not scoured by any bonds. We believe the circulating notes of this bank have only a nominal value. Bank ot Crawford County, at Meadville. This is a State bank, with about $050.000 circulation, not secured. It had filed the preliminary papers to reorganize as a National Bank-had deposited some bonds in Washington-but has never received any National Currency. Our impression 18 that the 'Bank of Crawford County" is not as bad a failure as the "Oil City Bank." Venango Bank, at Franklin. This is a free State bank converted into a National. The old circulation 18 about $130,000, secured by 80 Treasury Notes doposited at Harrisburg, and $50.000 National currency secured by deposits in Washington. We believe that the old circu ation will be taken up at its lace, after some delay, probably at Pittsburg. For the present we quote it at 10 discount. The $50,000 National currency will suffer no discredit. Petroleum Bank, at Titusville. This is a free State bank, circulation some $200,000, secured by 7 80 Treasury Notes deposited at Harrisburg. Its notes, we believe, will be taken up at their face, at Pittsburg, after some delay. We quote them at 10 discount. This bank had filed its papers to reorganize as a National bank. Culver, Penn & Co. owned but a small portion of the stock of the "First National Bank" at Titusville, but its New York account was with that house. In the uncertainty of the moment it suspended. It has since resumed business on a solid basis. The losses are not sufficient to impair its solvency. Its managers are of a sound and solid class of local citizens. Its drafts on Culver, Penn & Co. are cashed by the First National Bank of this city. These are all the banksthat are directly hurt by the tuilure of Culver, Penn & Co. Other banks have been placed in the broken lists published in the newspapers. The Cashier of the Bank of Lawrence County writes us that his bank had no business with Culver. Penn & Co, and no loss whatever will be sustained in consequence of the failure. LIST REPEATED. 75 P et. dis. Oil City Bank, Oil City, Pa. 62 $ et. dis. Bank of Crawford County, Pa 10 P ct. dis. Venango Bank. Franklin. Pa Petroleum Bank, fitusville. Pa 10 P ct. dis. All National currency, broken or not par.


Article from Chicago Tribune, April 5, 1866

Click image to open full size in new tab

Article Text

In Cinemnati there is a good demand for money, and bankers were able to supply the wants of their customer and DO change in the general fca ures of the market was observable. Rates of intere-t, on first-class and good paper. in the regu!ar way, range from 8 to 10 per cent and in the open market 12@15 for good and fair names. There was a continued good demand for exchange, and the market raled firm at 50@75 prem. buying, and 1-10 prem. selling. -The New York money market 14 more active, but per ccnt is the full market rate for call loans on mixed collaterals. First-class business notes are discounted at BII and a half to seven per cent, and good names. auctioneers' and others, range from eight to ten per cent. The gold market is steady, and loans command 10 3-16 per cent premium. The absorption of gold by government for custor e-due- IS gradually lessening the quantity on the market available for deliveries. The foreign exchange market is dull and heavy. Prime bankerr' eterling sixty day bills were sold to-day at 10614 to 106% and the arking rates are 106% to 106 good bankers' range from 1064 to 106% -The value of the imports at Boston for the week ending March 31 was $1,000,000. and the duty upon them will probably be pearly $800,000. -The Third National Bank of Buffalo has been designated as a Government depository during the week just closed. The total number is now four hundred. The only national bank authorized during the veek ending March 31, 1866, 18 the Miners' National Bank of Salt Lake, Great Salt Lake. Total number of national banks now in existence 1,644. Amount of national currency Issued during week endmg March 31, 1866, $1,430,500. Amount of national currency previously issued $262,610,370. Total to date $264,247,170. -The May gold interest on the United States fivetwenty bonde, amounts to something more than twenty millions of specie dollars, which will proosbly be anticipated and paid in April, as the coin is on hand in the Treasury, and will not be wanted for any other purpose. -The failure of fome of the banks in the oil regions, growing out of the suspension of Calver Penn & Co., is still an object of general comment. It appears that the Petrolenm Bank, is not a na. tional bank, and never obtained a permit, notwith standing the fact that the eign Petrolenm National Bank" is conspicuously posted upon one side of the building. -The Crawford County Bank, at Meadville, applied for a permit, but never fulfilled the condition of the act by depositpor bonds, and never issued national bank notes. The same fact is true of the Oil City Bank. Venaugo County Bank, and the Lawrence County Bank -01 City and Veuango notes are selling at T1tusville at from twenty-five to fifty cents on the dollar. Some of the C.awford County Bank notes are sclting at fifteen cents per dollar. The Titusville Herald, ot a recent date, saye: **The failure of Culver, Penn & Co., though tak ing the general public by eurprise, was not alto geiber unexpected by shrewd financiere. and there were predictions of their early suspension a week ago. The Collector of Internal Revenue here rcmoved his deposits from the Petroleum Bank on the 19th nit, but on the same day purchased a draft for $16,000 on Culver, inn & Co, which was protested on reaching New York. "Ata meeting of the directors of the First Na. tional Bank evening, a despatch was received from c. C. Dofield, Esq., cashier, now in New York anying toat the bonds of the bank deposited with Colver. Penn & Co., as a special deposit. had been appropriated by them. In consequence there of the First National Bank will be compelled to suspend payment for a short time. The Dank has assets sufficient to meet all deposits, which we are assured will be done as speedify as possible. The unexpected defalcation of Culver. Penn & Co., in the matter of these bonus, which was not known till after banking hours yesterday, changes the whole aspect of the situation. But we accept the assurance of the President that the suspension will be temporary. The New Orleans money market proper continues without any material change. operations in it being mainly confined 10 mortgage loans at 10@15 and 13 per cent. per aunum. and temporary loans on collaterals at 8 per cent per annum, in bank, and 1@1% percent per month in the open market. -The following are the name of the banks in which Mr. Culver and Culver, Penn & Co. are interceted, and which will be crippled. for a time at least, through the suspension of the latter firm: Culver. Brooke & Co., Philadelphia; 3d National Bank, New York City; National Bank of Crawford county, Meadville, Pa.: Traderman's National Bank, Pit sburrh. Pa.; Venango National Bank, Franklin, Pa.; 2d National Bank, Eric, Pa.: etNational Bank, Oil City, Pa: 1st National Bank, Corry. Pa; Citizens' National Bank, Loran. o. The following exhibite the traffic of the Great Western Railway of Canada for the week ending 30th March, 1866: Passengers $32,013.29) 30,157.71 Freight and live e*ock Natis and sundrice 1,952.71 Total $61,123.71 52,259.811 Corresponding week last year Increase 11,663.861


Article from Bedford Inquirer, April 6, 1866

Click image to open full size in new tab

Article Text

BANK SUSPENSION.-The failure of the Banking House of Culver, Penn & Co., in New York, has it is reported, caused a suspension of the following banks in this State: Venango Bank, Oil City Bank, Petrolum Bank, Lawrence County Bank, Crawford County Bank and First National Bank of Titusville. The Notes of the First National are good and it is stated by the Auditor General that the notes of the Venango Bank and the Petroleum Bank, State institutions are also secure by deposits of National securities at Harrisburg.


Article from Cleveland Daily Leader, April 12, 1866

Click image to open full size in new tab

Article Text

The local money market is quiet. There is only a moderate discount demand, and with the gradual improvement in trade balances are working up and the market is steadily approaching an easier condition.Eastern Exchange remains very close, and no improvement is likely before the compiete opening of navigation. Rates are firm at par buying and 1-10 premium selling. The Buffalo papers give the particulars of the suspension of E. S. Rich's Bank of Exchange, of that city. The liabilities are understood not to exceed $100,000, and the assets, it is stated, will be fully adequate to meet all claims against the bank. The notes of the bank are secured, and will be redeemed either in Buffalo or Albany. The suspension, says the Courier, is in consequence of embarrassments occasioned by large investments in manufacturing enterprizes which have failed to prove remunerative. Some of the banks that were injured by the failure of Culver & Co. have resumed business again. The President of the First National Bank of Titusville announces that the losses have been made good by the stockholders, and the bank was opened on Monday for business. The wholesale trade of the city is gradually improving, though no general activity can yet be recorded. Flour is quiet, but good grades are firm steady. The market was aull for Wheat to-day, and we could hear of no transactions; but prices remain steady, and the higher grades, which are in very light stock, are firm. Corn is in good demand and le better; the market is lightly supplied. Oats are active and firm. Rye and Barley continue inactive and nominal. There is an improving demand for Groceries, and dealers report a fair trade atsteady prices. Provisions are in moderate trade demand and steady. All articles of Produce are steady at previous prices, and generally in good demand. Highwines quiet and unchanged. Petroleum is steadier, but dull.


Article from North Branch Democrat, April 18, 1866

Click image to open full size in new tab

Article Text

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.