22038. Bank of Royalton (Royalton, VT)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
November 23, 1855
Location
Royalton, Vermont (43.816, -72.546)

Metadata

Model
gpt-5-mini
Short Digest
6c94385b

Response Measures

None

Description

The bank's bills were 'thrown out' by the Suffolk Bank/clearing house for a short time (reports around Nov 23, 1855), but this was caused by the failure/closure of its Boston correspondent (Grocers' Bank), not by insolvency of the Royalton bank. Bills were again received regularly after a one-day suspension; no depositor run is described.

Events (1)

1. November 23, 1855 Suspension
Cause
Correspondent
Cause Details
The Grocers' Bank in Boston (acting as agent/correspondent) failed/was closed, causing the Suffolk Bank to refuse/throw out Royalton's bills temporarily; the interruption to acceptance lasted one day and then bills were received regularly again.
Newspaper Excerpt
the Suffolk Bank has discredited or thrown out the notes of the following New-England Banks, viz: ... Bank of Royalton, Vermont
Source
newspapers

Newspaper Articles (3)

Article from New-York Daily Tribune, November 24, 1855

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Article Text

The business of the Clearing house was $17,897,000. The demand for currency which existed in the early part of the season, at the West, for the purpose of moving the crops, induced some of the Eastern banks to extend themselves largely, and the currency having returned more rapid'y than was convenient, the comeoquence has been difficulty in redemptions and discredit at the Suffotk Bank. The continued decrease is the specie line of the Boston banks had prepared us for some trouble in that quarter, but we did not look for so large is brood of bank discredits at one time. Aa Extra from Thompson's Reporter says: THOMPSON'S BANK NOTE REPORTER OFFICE, Friday Evening, Nov 23, 18% Telegraphs from Boston inform us that the Suffolk Bank has discredited or thrown out the notes of the following New-England Banks, viz: Orono Bank, Maine; Searsport Bank, Maine; Ellsworth Bank, Maine; Barl of Royalton, Vermont; People's Bank, Vermont; Monson Bank, Mass.; Rhode Island Cen tral Back. The Rank of Royalton" above is & chartered bank, and should not be confounded with the South Royalton Bank," which is a free and wed secured bank. The Monson Bank" above should not be confounded with the Mousam River Bank," of Maine. Itroes not follows that these banks fail; indeed we shall be disappointed if the Suffolk Bank does not, in & very few days, again take a large proportion of them. The holders of notes of the above backs will be wise not to sacrifice by & precipitate sale, for we cannot conceive that any bank which was sound a year ago can be insolvent now. At the Metropolitan Bank the Rhode Island Central. Searsport, Ellsworth and Royalton Banks are thrown ont. The brokers were buying the notes only at a large discount, but holders did not appear disposed to sacrifice them. There was a good deal of excitement to day in Beeton, which, if it degenerates into a panio, will doubtless increase the above list. The Orono, Searsport and Ellsworth Banks were correspondents of the Grocers' Bank of Boston, the embarrassment of which caused its refusal to receive the notes of those banks from the Suffolk, as It has heretofore done. In the case of the Grocers' its circulation is being rapidly redeemed and its deposits have frun down to $100,000. It pays promptly, If wound up it is believed there will be Fitt e or no loss to the stockbo ders. Judging from the last report of the Boston banks $2,100,000 only of coin with a line of loans of over $51,000,000, the specie too being almost the entire basis of the operations of all the New. England banks it is very evident there must be considerable contraction before a safe position can be attained. The aid rendered by the Suffolk Bank to its country correspondent bar be is shown by the fact that the discount line has run down to $1,185,000 only 181 . cent more than its capital, while the deb's due to it from other banks have increased to $1,985,000 or 981 P cent more than its capital and the amount due by the Suffolk to other banks is reduced to 6 fraction loss tban half & million of dollars. The earnings of the Indianapolis and Cincinnati Railroad for Oe ober were: $29,895.79 Mail end Express $1,202,08 Passengers 16 753 33 331 Freight $47,851.20 Total $33,944.78 For October, 1854 $13,906 47 Increase The price of Panama Railroad stock has risen cent within a short time, in consequence of the improved prospecte for a large dividend in January. The receip's in October were $120,000, and the November business, it is supposed, will be about the same The earnings for July, August, September and October were $382,057-leaving about $225,000 to be earned in November and December to meet the estimate of Col. Toten. The freight business, especially in express freight, is continually increasing, and the coal transportation has largely exceeded the estimates of the company. The Pacific Steamship Company will dispated, on the 12th January next, & freight steams from San Francisco, teuching of be ports all along the coast to Pasama,


Article from Vermont Watchman and State Journal, December 7, 1855

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Article Text

Bank Troubles. Banks. - We learn that the following Banks are thrown out at the Suffolk Bank, in this city: Orono Bank at Orono, Ellsworth Bank'at Ellsworth, and Searsport at Searsport, Me.; Royalton at Royalton, and The Peoples' at Derby Line. Vt.; Rhode Island Central at Greenwich, R. I. The New England Banks who have exported their issues to the West to winter, are receiving them back a little before the contract provided.-Boston Courier. The community were thrown into some excitement, a few days ago, by a report that bills on the Bank of Royalton, the People's Bank at Derby and some others, were not received at the Suffolk Bank in Boston, in cons. quence of a failure on the part of said Banks to redeem their paper. It soon appeared, however, that there was no real trouble with the Banks themselves-that the whole difficulty arose from the failure of the Grocer's Bank in Boston, acting as agent for the Royalton and other Banks. The bills of Royalton and Derby are now received regularly, there having been a suspension of only one day. These institutions are sound. - Journal. w Since the above occurrence, the Grocers' Bank (Boston,) has been closed by the Massachusetts Bank Commissioners. Billholders, however, are advised that the bills will eventually be redeemed.


Article from The Caledonian, December 8, 1855

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Article Text

BANK TROUBLES.-The whole difficulty in regard to the People's Bank of Derby, and the Bank at Royalton, arose from the failure of the Grocers' Bank in Boston, acting as agent for the above and other Banks. The bills of Royalton and Derby are now received regularly, there having been a suspension of only one day. The Grocers' Bank is closed under an injunction. The examination of Mr. George M. Webber, as candidate for the pastorate of the South Congregational Church in this village, took place on Tuesday evening of this week. The examination was satisfactorily sustained. The ordination took place on Wednesday. The exercises were as follows: Invocation and reading of the Scriptures, by Rev. Mr. Barnum; Prayer by Rev. Francis Warriner ; Sermon by Rev. Mr. Sweetser: Consecrating Prayer, by Rev. Wm. Scales; Charge to the Pastor, by Rev. W. W. Thayer; Right Hand of Fellowship, by Rev. W. B. Bond; Charge to the People. by Rev. A. Boutelle ; Prayer, by Rev. H. Wellington Benediction, by the Pastor.