21965. Stark Bank (Bennington, VT)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
November 27, 1854
Location
Bennington, Vermont (42.878, -73.197)

Metadata

Model
gpt-5-mini
Short Digest
da4b3e85

Response Measures

None

Description

Stark Bank (Bennington, VT) suspended in late November 1854 after heavy losses/locked-up funds in suspended Ohio banks; it later resumed business (resumed by Oct 13, 1855 with new paid-up capital). No explicit depositor run is described in the articles — they report suspension, discounted notes, and insolvency of correspondents. OCR errors in some articles corrected (e.g., 'Stark Bank' consistently).

Events (3)
1. November 27, 1854 Suspension
Cause
Correspondent
Cause Details
Lost heavily via $112,000 locked up in debts of suspended Ohio banks and other Ohio exposures; notes deeply discounted (50¢ to 40¢ on the dollar).
Newspaper Excerpt
It is stated that the Stark Bank, at Bennington, Vt., which suspended last Monday, may ultimately redeem its bills, the directors being held in bonds to the State to insure that result.
Source
newspapers
2. January 10, 1855 Other
Newspaper Excerpt
STARK Bank, BENNINGTON, VT.-We learn ... the affairs of the institution look exceedingly bad. It has upwards of $112,000 locked up in the debts of suspended Ohio banks, and $48,000 is kept close in a Vermont railroad. The bank was broke through the suspension of the Ohio banks. The bills now sell for forty cents on the dollar.
Source
newspapers
3. October 13, 1855 Reopening
Newspaper Excerpt
RESUMED.-The Stark Bank of Bennington, Vt., which suspended last winter, has resumed business with a full paid-up capital of $100,000, made so by assessment upon stockholders.
Source
newspapers

Newspaper Articles (10)
1. November 20, 1854 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, November 20, 1854

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Article Text

$36,655,598 92 Total for the year The Knickerbocker Fire Insurance Company has declared a dividend of 10 P cent., payable Dec. 1. The Bartlett Mills has declared 4 P cent., and James Steam Mille 3 P cent., payable on demand. We have received a statement of the affairs of the Knickerbocker Life Insurance Company. It will be seen that the assets of the Company amount to $151,413 28, of which $122,500 are invested in first-class bonds and mortgages. The premiums received thus far are $51,937 39, while the losses amount to $4,204 17. The whole amount at risk is $1,247,204. The Company, it is stated, has no connection with the Bank of the same name, beyond having used it as a depository for its floating funds. The amount deposited there was less than $2,500, and that will be repaid to the Company in due time. In our notice of the quarterly statement of the Mutual Life Insurance Company of New-York the number of policies rumored to be running at 1st November was stated at 2,982, whereas it should have been 2,982. Another case of Suffolkcation has occurred, the Stark Bank at Bennington, Vt., having been thrown out at Boston. The notes of the Woodbury Bank, which were thrown out last week, are received at the Mercantile Bank in this City. The Germania Bank of Milwaukee (Messrs. Geo. Papendick & Co.) is reported suspended, but the notes are still taken. Beyond this we hear of no new disasters at the West. The creditors of Messrs. Ellis & Sturges and T.S. Goodman & Co., have petitioned the assignee of those firms to cancel the assignment and retransfer the propery,that those gentlemen may go on with the business of their respective houses, or wind up their affairs, as they think most judicious. The following statement of the affairs of Messrs. Goodman & Co. has been made: EXHIBIT OF ASSETS AND LIABILITIES.:

2. December 2, 1854 Daily American Organ Washington, DC
Article from Daily American Organ, December 2, 1854

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BY THIS MORNING'S MAILS. PORTLAND, Dec. 1.-The train from Island Pond for this city, on the Grand Trunk Railway, when near Thompson's mills, in the town of Starks, met with a serious accident. The snow plough slipped off the track and stopped the train, when at the same moment, down came a freight train which ran into it, smashing the cars badly and injuring eight or ten persons severely. Two of the passenger cars took fire, and were consumed. Mr. Corser, the superintendent of the road, has gone to the scene of the disaster with several surgeons, in a special train. BOSTON, Dec. 1.-The Rev. Theodore Parker, in his thanksgiving discourse yesterday, said he had received many honors during his life-time, but his arraignment on Wednesday was the highest honor he had yet received from his fellow men. It is stated that the Stark Bank, at Bennington, which suspended last Monday, may ultimately redeem its bills, the directors being held in bonds to the State to insure that result. The notes of the bank now sell at fifty cents on the dollar. There are reports current that the bank lost largely in Ohio. Philadelphia, Dec. 1.-The friends of Dr. Beale are obtaining hundreds of signatures to the petitions in circulation for the exercise of executive clemency in his case. Much public feeling exists in relation to the matter, principally on the side of mercy in consideration for the family of the unhappy man. BOSTON, Dec. 1.-The annual thanksgiving festival yesterday was universally observed, and, apparently, much enjoyed in this city. The churches were moderately well attended, and the theatres and other places of amusements crowded in the evening. HARRISBURG, Nov. 30.-Gov. Bigler, who has been very ill during the past few days, is much better. He has been laboring for some time past under a serious attack of the liver complaint, which is gradually wearing away his constitution. NEW YORK, Dec. 1.-The weakness is spreading East among the mushroom banks. The Union Wheat Growers' Bank of New Jersey reported failed to-day. BUFFALO, Dec. 1.-The steamer Ontario has been lost on the Lakes. The snow is a foot deep in Niagara county. RICHMOND, Dec. 1.-Dr. Thompson, charged with the murder of Miss Pharr, at Covington, has been acquitted. The jury was out about one hour. BUFFALO, Dec. 1.-Wm. Darry was hung in this city this morning for the murder of his wife.

3. December 2, 1854 The New York Herald New York, NY
Article from The New York Herald, December 2, 1854

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Article Text

Another Railroad Collision. SEVERAL PERSONS INJURED-THE CARS ON FIRE. PORTLAND. Dec. 1, 1854. As the train from Island Pond for Portland, on the Grand Trunk Railroad, was nearing Thompson's Mills, in the town of Starks, this morning, the snow plough got off the track and stopped the train. At that moment the down freight train came along and ran into it, smashing the cars badly, and injuring eight or ten persons Severely. Two passenger cars took fire and were consumed. Mr. Corser, the superintendent of the road, has gone to the scene of the disaster, with surgeons, &c., in a special train. NORTHUMBERLAND, (N. H.,) Dec. 1-9 M. Ten persons are injured, mostly by fractures of the bones and dislocations of the limbs. Their wounds, however, are not considered dangerous by the physicians. Good surgical aid is in attendance at the scene of the disaster from Portland and other places. Mrs. Taylor, who had been visiting at Lancaster, is badly burned, and lies in a critical condition. Four others of the sufferers only remain at Stark, the rest having been removed by their friends. Among the injured are Wm. Burns, of Lancaster whose leg is fractured; Wm. "H. McCullis, of Bangor, whose arm has been dislocated; and the Rev. Mr. Baxter, of Wilton, Me., whose collar bone was broken. The train consisted of one passenger car, to the rear of which was attached a box car, which was driven half way through the passenger car by the collision. The train stopped in consequence of the: locomotive becoming unshackled, and not by getting off the track. From Boston. THE EOASTINGS OF THE REV. THEODORE PARKER-THE STATE BANK OF BENNINGTON-WEATHER, ETC. BOSTON, Dec. 1, 1854. The Rev. Theodore Parker, in his discourse yesterday, said that he had received many henors during his lifetime, but his arrai nment in the United States Court on Wednesday was the highest honor he had yet received from his fellow men. It is stated that the Stark Bank at Bennington, Vt., which suspended last Monday, may ultimately redeem its bills, the directors being held in bonds to the State to insure that result. The bills now sell for fifty cents on the dollar. The current reports are that the bank lost largely in Ohio. The weather here was very clear and cold to day. At sunrise the thermometer stood at twenty three, and at noon thirty degrees. The ground is covered with snow a few miles in the interior.

4. December 4, 1854 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, December 4, 1854

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Article Text

Iti is stated that the Stark Bank at Bennington, Vermont, which suspended last Monday, may ultimately redeem its bills, the Directors being held in bond to the State, to insure that result. l'he-notes of the Bank now sell at 50 cts. on the dollar. There are reports current that the bank lost largely in Ohio.

5. December 4, 1854 Richmond Daily Whig Richmond, VA
Article from Richmond Daily Whig, December 4, 1854

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POSTSCRIPT. LOSS OF A STEAMER-DEEP SNOW. Buffalo, Dec. 1.-Tte steamer Outario has been lost on the Lukes. The BLOW is foot deep in Niogara county. ACQUITTAL. RICHMOND, Dec. 1.-Dr. Thompson, charged with the murder of Miss Pharr, at Covington, has been acquitted. The jury was out about one hour. SAILING OF THE CANADIAN. PORTLAND, Dec. 1.-The steamer Canedian sails for Liverpool, ing. from this port, at dayl ght on Saturday mornILLNESS OF GOV. BIGLER. HARRISBURG, Nov. 30.-Gor. Bigler, who has been very ill during the past few days, is much better. He has been laboring for some time past under a serious attack of the stitution. liver complaint, which is gradually wearing away his con. SAILING OF THE STEAMSHIP PROMETHEUS. NEW ORLEANS, Nov. 80.-Steam communication between this city and California via Nicaragua has been resumed. The steamship Prometheus sailed to-day, and took.out about 100 passengers for California. ANOTHER bank FAILURE. NEW YORK, Dec. 1.-The weakness is spreading East among the mushroom Banks. The Union Wheat Growers' Bank of New Jersey reported failed to-day. THEODORE PARKER-THE STARK BANK. Besron, Dec. 1.-Tbe Rev. Theodore Parker, in his thank-giving discoure yesterday, said he had received many bonors during his lifetime, but his arraignment on Wednesday was the highest honor he had yet received from his fellow-men It is stated that the Stark Bank, at Bennington, which suspended last Monday, may ultimately redeem its bills, the dir ctore being held in bonds to the State to Insure that result. The notes of the bank now sell at BU cents on the dollar. There are : eports current that the bank lost largely in Ohio. ARRIVAL OF CONGRESSMEN. NEW YORK, Dec. 2.-Senators Steward and Summer, and Representatives Sage, Pringle, Simmonds, and Thompron have arrived here en route for Washington. ONE WEEK LATER FROM CALIFORNIA. NEW YORK, D.c. 2.-The steamship Star of the West, with one week's later news from California, is below. and will be up about two o'elock. THE MARKETS. NEW. YORK, Dec. 2.-The money market is quiet.Stock tions. have declined, more or less, with one or two excepBrerdstuffs-There W18 quite a penic in the flour msrket to day, and it declined 25c per bbl. We note sales of Sout ern at $8,254$8.75. Wheat is dull at previous prices-supply very fairCoru is du'l r, with sales of 30,000 bushels mixed at 87s 88 cents. Rye and Oats unchanged. Provisions timer-sales Mess Pork at $13418,12. Bacon dull. Lard 10a10 1 3 cents. Whiskey 43 to 45 c 8. in hhds and bble. RAILROAD ACCIDENT. PORTLAND, Dec. 1.-The train from Island Pond for this city, on the Grand Trunk Railway whom near Thompson's mills, in the town of Starks met with a serious accident,The snow plough slipped off the track and stopped the tiain when, at the same moment, down came the freight train which ran into it smashing the care badly and injuring eight or ten persons severely. Two of the passenger CS18 took fire and were consumed. Mr. Corser, the superintendent of the road, has gone to the scene of the disaster with several surgeons, in a special train. DR. BEALE. PHILADELPHIA, Dec. 1.-The friends of Dr. Beale are obtaining hundreds of signatures to the petitions in circulation for the exe cise of executive clemency in his case. Much public feeling exists in relation to the matter, prinexpelly On the side of mercy in consideration for the family of the unhappy man. THANKSGIVING. B. STON, Dec. 1.-The annual thanksgiving festival yesterday WHS universally observed, and, apparently much enjoyed in this city. The churches were derately well atded, and the theatres and other places of amusements crowded in the evening.

6. December 5, 1854 Minnesota Weekly Times Saint Paul, MN
Article from Minnesota Weekly Times, December 5, 1854

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EDITED BY C. H. PARKER. An Additional List of Broken and Discredited Banks. MERC'S & MECHS' B'K, Springfield, - ILLS. " ROCKFORD B'K, " PHENIX B'K CHICAGO, " RAILROAD B'K, DECATUR, VT. STARK B'K BENNINGTON, FARMERS' JOINT STOCK B'K, CANADA. MONETARY. Nothing of interest has transpired in this city, with reference to money matters, within the past week. There is undoubtedly no great financial pressure upon the masses, particularly upon our business men. The panic about Atlanta and Macon money here has ended in smoke, as to Atlanta and repudiation as to Macon. The former is received as usual by Messrs. Borup & Oakes, while the latter is no longer taken by Messrs. Mackubin & Egerton the reputed correspondents of the owner of said money. The rates of interest, are unchanged 2 1-2 per cent are asked on Real Estate 3 per cent on 1st class paper, 2 per cent in call loans. The Minnesota money market may be therefore called easy. The recent mails have brought no intelligence in relation to Ind. currency. Notwithstanding some of the Wisconsin and Illinois Banks are discredited, I have full confidence in their ability to pay, and the news from Galena is that all of said banks will again resume payment. The community will be safe in rejecting all bills of Banks now in our list. At present, in addition to those mentioned in said list, I refuse all Tennessee money, Ohio State Stock, all Virginia excepting North-Western and Exchange Banks, and all Kentucky except Bank of Kentucky and Bank of Louisville.

7. December 26, 1854 Minnesota Weekly Times Saint Paul, MN
Article from Minnesota Weekly Times, December 26, 1854

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It is stated that the Stark Bank, at Bennington, Vt. which suspended a short tim since, may ultimately redeem its bills, the direct ory being held in bonds to the State to insure that result; The bills n ow sell for fity cents on the dollar. The current reports are that the Bank lest largely in Ohio. The receiving teller of the Market Bank proves a defaulter to the extent of $25,000, of which the Bank hopes to get back $10,000. The teller's name is Sackett. H.s practic: has been to keep his books in a state of incorrectness as regards the footings, purposely to ward off observation.

8. January 10, 1855 The Weekly Portage Sentinel Ravenna, OH
Article from The Weekly Portage Sentinel, January 10, 1855

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STARK Bank, BENNINGTON, VT.-We learn from a large stockholder in this bank that the affairs of the institution look exceedingly bad. It has upwards of $112,000 locked up in the debts of suspended Ohio banks, and $48,000 is kept close in a Vermont railroad. The bank was broke through the suspension of the Ohio banks. Its circulation is about $100,000, and we fear the assests will be found somewhat minus. We are now naying but 40 cents on the dollar for the bills. -Thompson's Reporter, Dec. 30. The fate of the funds "locked up in the debts of suspended Ohio banks," reveals one of the "tricks of trade," and affords à beautiful commentary upon the banking system. The Stark Bank forwarded its notes to the Canal B ink of Cleveland, for circulation in this State, and the latter institution, it seems, by way of redeeming its promise to furnish a "home currency," put them in circulation, but forgot to make due return 10 its Vermount cousin. Perhaps a few more of the New England.banks would like to be accommodated in like manner. Who's the next customer!- Exchange.

9. January 27, 1855 The Caledonian Saint Johnsbury, VT
Article from The Caledonian, January 27, 1855

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THE STARK BANK. MESSRS. EDITORS:-Your correspondent. "H," having seen a noti e going the rounds of the papers, to the effect that the resascitation of the Stark Bank, at Bennington, depends upon the solvency of twoofthe recently suspended Ohio banks. in an article upon "Banks and Banking." published in the CALEDONIAN, of Jan. 20th. inquires 'how it came to pass that the usually sound currency of your state is thus dependent upon the tender mercies of wild-cat banks ?" and further inquires if Vermont laws sanction such doings? In reply to these queries permit me to say that there is an exception to one of the legal requirements of the state, by which that requirement may be evadud, and thus our currency become temporaily dependent upon the "tender mercies" of the institutions before mentioned. The law delegates certain powers to bank directors, but designates the discount of no particular variety of paper, requiring that no individual, either directly or indirectly, shall be indebted to any bank for a sum of money greater than ten per cent of its paid in capital, "except upon bills of exchange." Ordinarily, the interest of Directors in protecting their own property is a sufficient guaranty for the safety of a bank ; but when those directors are themselves borrowers of money, there is no effectual hindrance to placing the bank under their control, at the mercy of a few individuals at least. In the case of the Stark Bank, alluded to had the law, limiting indebtedness to ten per cent of capital, been so framed as to admit of no evasion of its spirit, that bank would not have failed, even in these hard times, and while the ultimate redemptions of its notes, as well as those of other banks in the state, is made certain by other requirement, it is deeply to be regretted that by a general banking law so loosely framed, Vermont suffers the credit of its sound institutions to be impaired by the mismanagement of the officers of one or two banks, and that mismanagement $0 managed, that the Commissioner could not, in this case, make it public-let us hope that this officers suggestion may be acted upon by the next Legislature and that we

10. October 13, 1855 The Weekly Portage Sentinel Ravenna, OH
Article from The Weekly Portage Sentinel, October 13, 1855

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RESUMED.-The Stark Bank of Bennington, Vt., which suspended last winter, has resumed business with a full paid-up capital of $100,000, made so by assessment upon stockholders.-N. Y. Tribune.