22068. St Albans Bank (St Albans, VT)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
August 6, 1883
Location
St Albans, Vermont (44.811, -73.083)

Metadata

Model
gpt-5-mini
Short Digest
9cc83526

Response Measures

None

Description

Contemporary reports (Aug 1883) state the St. Albans Bank suspended/closed after speculative losses by its president (Barlow). Newspapers later refer to an ex-receiver (Hendee) and trustee litigation, indicating permanent closure and receivership. No contemporaneous report of a depositor run (one article explicitly says an expected run did not take place).

Events (2)

1. August 6, 1883 Suspension
Cause
Bank Specific Adverse Info
Cause Details
President Barlow's large railway speculation/losses and heavy endorsement obligations (Barlow and Brainerd), which impaired the bank's solvency.
Newspaper Excerpt
The St. Albans, Vt., bank closed its doors Monday. ... The St Albans Bank was obliged to suspend because its President had undertaken a big deal in the securities of the Southeastern railway.
Source
newspapers
2. December 3, 1883 Receivership
Newspaper Excerpt
The Southeastern Railway trustees have entered suit against ex-Governor Hendee of Vermont, receiver of the St. Albans Bank, lately failed, to recover $8000 of first mortgage bonds ... deposited with the bank for safety before its suspension.
Source
newspapers

Newspaper Articles (5)

Article from The Indianapolis Journal, August 8, 1883

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Article Text

The St. Albans Bank Failure. ST. ALBANS, Vt., Aug. 7.-President Brainard, of the Trust Company says depositors will not lose much. The last statement showed 2,100 depositors, with deposits of $600,000. Several railroad men, including Governor Fairbanks, held a conference today at Barlow's residence. The statement that the comptroller approved of the bank's loan to the Southeastern road was incorrect. The comptroller thought it was too large, and suggested its reduction. The First National Bank prepared for the expected run, which did not take place.


Article from The Press, August 9, 1883

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Article Text

The St. Albans, Vt., bank closed its doors Monday. Mr. Barlow, the president, became involved in a railway speculation, and in sinking carried the bank down with him. The Trust company of St. Albans has also failed, because its president, Lawrence Brainerd, is a heavy indorser of Barlow's paper. Both men have assigned all their property.


Article from Public Ledger, August 14, 1883

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Article Text

IT is speculation and overtrading that causes the panies and the financial troubles of the country. The Commercial Gazette says: Of the five National Banks which were embarressed last week four of them owed their trouble to speculation. The St Albans Bank was obliged to suspend because its President had undertaken a big deal in the securities of the Southeastern railway. The Elmira Bank was seriously embarrassed by the run upon it qwing to & report, which was not denied, that its President had lost $50,000 in a pork speculation. The suspension of the First National Bank of Indianapolis was due, in partial least, to the heavy drafts upon it by depositors who had margins to meet in Chicago, and the Indiana Banking Company suffered in the same way. The banks themselves regard with great suspicion any man upon whom there is the slightest taint of speculation, and they must expect the public to scrutinize with equal severity the acts of those with whom they deposit their money.


Article from The Portland Daily Press, December 3, 1883

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Article Text

GENERAL NEWS. Counterfeit $5 gold pieces, issue of 1869, have been discovered in circulation. Mrs Calvin Crocker of Springfield, Mass., about 65 years of age, while crossing the Boston and Albany Railroad at Pittsfield, Saturday, was struck by a locomotive and instantly killed. She worked for the Kellogg Steam Power Company and leaves a husband and family. The steam canaljboat Courtier, one of the last boats through the Erie canal this season, has arrived at Port Hunter from Buffalo, coveriog the distance, 301 miles, in five days, the fastest time on record. The Southeastern Railway trustees have entered soit against ex-Governor Hendee of Ver mont, receiver of the St. Albans Bauk, lately failed, to recover $8000 of first mortgage bonds of the road, deposited with the bank for safety before its suspension. Charles H. Thissell, a milkman, residing in Dracut, Mass., was found hanging in his barn Saturday morning. He was about fifty years old and had been married, but did not live with his wife.


Article from The Middlebury Register and Addison County Journal, December 7, 1883

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Article Text

# State News. The Bates House at Rutland is soon to be sold by auction. A foot of snow fell, up in Lamoille county, last Friday. St. Albans has a new opera hall which will seat 700 persons. Twenty of the 241 towns in the State have women school superintendents. The House of Correction at Rutland has 58 inmates-51 men and 7 women. There have been 35 cases of diptheria at Waterbury and three deaths from the disease. Gilman L. Grant of Stockbridge was crushed to death under a load of wood, Nov. 24. A daughter of P. Gilrain, aged 5 years, was killed at Rutland the other day by the overturning of a mortar box, which fell upon her. George Knowlton of Rochester fell from his barn the other day, striking upon his head and shoulders. injuring him very severely, but not fatally. Charles T. Ennis, a colored St. Albans barber, was found dead, on a recent morning, near the railroad shops in that place. Heart disease is supposed to have been the cause. Frederick Billings has increased his gift to the University of Vermont at Burlington for a library building from $75,000 to $100.000. The foundation is already laid and the building will be put up in the spring. It will be of sandstone. C. L. Hinds and wife of Chester went to Cambridgeport to spend Thanksgiving and when they returned discovered that their nephew, Howard Hinds, who has lived with them the past two months, was missing with between $100 and $500 left in the house. Edward Sheple's store at Waterbury was broken into early Sunday morning. The safe was drilled and the handle blown off, but not opened nor any money taken, except a dollar or two out of the change drawer. Two men were tracked to the 4 a. m. train, where the trail was lost. Norman Taylor, the locally noted Plymouth pie-eater, who trained himself for a runner over his native hills, has at last won a professional sawdust race, a 50-mile go-as-you-please at Philadelphia, Thursday. Taylor had made 66 miles at 20 minutes short of the 12 hours and the other contestants gave up. Taylor is 53. The trustees of the Southeastern railway have instituted an action against ex-Governor Hendee, receiver of the St. Albans bank, to recover $800,000, representing that amount of bonds of the Montreal, Portland & Boston railway placed with the bank for safe keeping, which the receiver now refuses to deliver. This story comes from Bennington: The immortal story of "the frogs and the boys" was admirably exemplified the other day as a painter stood on the top-most rounds of a 40 foot ladder, and looking down from his dizzy height, saw a small boy tugging hard away in the endeavor to pull down the ladder. If the urchin enjoyed the prospective fun of seeing a mangled painter come tumbling to the earth, the knight of the brush was stirred by an exactly opposite sentiment. Presently about one pint of Atlantic lead of the consistency of cream descended upon our youthful hero's cranium. A snap bug could not have cleared the circle of danger with any more alacrity than did the whitened and bespattered meddler. With a sorry glance at his jacket, he dashed around the nearest corner exclaming, "I'll tell ma!"