22100. Bank of Windsor (Windsor, VT)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
April 1, 1838*
Location
Windsor, Vermont (43.480, -72.385)

Metadata

Model
gpt-5-mini
Short Digest
fb5a6ed1

Response Measures

None

Description

Newspaper reports from April 1838 state the Bank of Windsor 'failed' and discontinued redemption of its bills in Boston (suspension of specie payments). By March 1839 directors report ongoing suspension and inability to fully redeem circulation, indicating the bank remained closed/permanently suspended. No explicit depositor run is described; cause appears to be bank-specific mismanagement/agent failures.

Events (1)

1. April 1, 1838* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Directors discontinued redemption of bills in Boston amid reports of mismanagement by the bank's agents and other circumstances undermining solvency/credit; bills trading at heavy discounts (about 30%). Negotiations to restore credit followed but suspension persisted into 1839 per directors' statement that suspension continued and they tried to redeem circulation from date of suspension onward. 1838 press also reports the bank has failed.
Newspaper Excerpt
The Directors of this Bank gave notice on Wednesday last, that they had discontinued the redemption of their bills in Boston
Source
newspapers

Newspaper Articles (3)

Article from Rutland Herald, April 10, 1838

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Article Text

Another Pet gone.—It is currently reported, that the bank of Windsor has failed, and this will doubtless be cried up by the loco focos as "another Whig bubble burst," when in reality it is nothing more than another example of the contaminating and corrupting effects of the experiment of the administration with the currency. This was one of the pets in this state and once, when the government had any funds, had on deposite of public money $80.000; and thus like all the other pets it was encouraged to exfond its business upon, and the result has been as all the Whig statesmen predicted long ago, bankruptcy and ruin. Let it be remembered that the President of this institution is a leading Jackson-Van Buren man and as a reward his bank was the pension agent, in this part of the state. It is a remarkable fact that the pet banks began the suspension of specie payments and among all the failures of banking institutions of the land none have been so disastrous as those which were under the control of the administration and its friends. How completely have the prophetic warnings of the Wings been fulfilled.—Says the Boston Atlas: "In vain did our distinguished statesmen remonstrate against this system of plunder and expansion. In vain did Mr Adams distinctly prophecy that 'the experiment would end in umversal bankruptcy.' The Whig members were derided throughout the country by the stipendasy presses of the administration as - PANIC MAKERS an the Globe used to assert that the session, daring which the opposition had presumed to stigmatise the seizure of the public treasure as an act derogatory to the constitution and the laws, would be hereafter ridiculed in listory as the panic session, got up by the "bank aristocrate" for the purpose of frightening the people into compliance with their requisitione. Well had it been for the country had the voice of the "panic makers" been heard and respected!" The present state of things is not surprising to the Whigs. It was all foreseen and predicted as the inevitable result of the measures of Gen. Jackson and his supporters, and yet the very men who have been the direct instruments of bringing these troubles upon the country have the hardihood to turn round and charge them upon the Whigs! Just as if the Whigs would again and again, in Congress and out, in the newspapers and in public assemblies have so clearly and so perseveringly foretold and warned the people to prepare for events which they were aiming to accomplish themselves! We appeal to the common sense of every man, whether it is probable that the Whigs would have striven so hard to open the eyes of the community to counteruct their own designs. It is absurd to suppose it. The truth and the whole truth is, that the principles and measures of the loco foco party have directly tended to produce the present state of things in our country, and the Whigs have been continunily resisting them and forewarning them of these results. But they have persevered and the consequences are felt; and now the only hope of the leaders of escaping the wrath of an incensed and injured people is, in falsely persuading them that they are not guilty, but the Whigs. But their efforts will be in vain. The public see the deception attempted to be played upon them and a short time will show that they are not slow to visit the guilty authors of this mischief with the retribution they deserve. Meantime let us not be in despair. Our country will yet be safe when the people can have time to speak through the ballot box. Some more banks as well as individuals are doubtless yet destined to fail; but let us not therefore distrust all. As wise would it be for us to refuse to have confidence in merchants because some have been unfortunate in business, as to denounce all banks because some have been wemanaged or seduced and ruined by a profligate administration.


Article from Rutland Herald, April 10, 1838

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Article Text

Acquital of Dr. Bowen. The trial of Dr Bowen at Boston, on the charge of embezzling a large amount from the Lafayette bank, has resulted in his acquittal. The Boston Daily Advertis r says-This case was given to the jury at 2 o'clock, P. M., and they agreed upon the following verdict at 1 A M. which was returned at the opening of the court this morning The Jury find that the sum of eighty-five thousand nine hundred and forty four dollars was counted and putinto the trunk on the 22₫ 01 April 1837, and that, in the month of August when the money was again coun. ted from said trunk, there was a deficiency from that sum of twenty-one thousand eight hundred and ninety. eight dollars. Butfrom the access of sundry individu als to said trunk while in the Lafayette and Franklin Banks, and from the loose manner in which the whole business was transacted the Jary find the Defendant Not Guilty This verdict was received with consider ble applause which was immediately checked by the officer of the Court The Defendant was then discharged. Bank of Windsor. The Directors of this Bank gave notice on Wednesday last, that they had discontinued the redemption of their bills in Boston This no. tice was soon followed by a visit from an agent of the Suffolk bank, reports of mismanagement on the part of the Windsor bank's agents in Boston, and other circum. stances, which together occasioned a good deal of ex eitement and anxiety Mr Emerson, late President, has retired from all official connexion with the bank ; nd Dr Isaac Green has been elected President Negotia. tions for restoring the credit of the bank and resuining its operations are still in progress in such circumstan. ces the value of its bills are entirely uncertain and the better way for the community is to 1 t them lie still until some definite information shall be had. They were sold here last week, to considerable amount, at 30 per cent discount Mr Bradley, the Bank Inspector appointed by the Legislature, 18 now here by invitation of the Directors. The circumsiances just mentioned may perhaps delay his report.-Vt. Chronicle Death of General Ashley The Boonville Mo. Emigrant of March 28, says: It is with no ordinary emo. tions of regret that we are called upon to perform the unpleasant duty of announcing the death of Gen. Wm H. Ashley, one of Missouri's most distinguished citiZens - He breathed his last on Monday evening, the 26th inst., at his residence, on the Lamine, eight miles above Boonville The Cabinet changes A private letter to the Editor Bays-"The reported changes in the Cabinet, are at least, partly unfounded. The only changes that will be, are the Attorney General and the Secretary of the Navy-the latter retires in April, certain -Bult Pat. not


Article from The Voice of Freedom, March 16, 1839

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Article Text

From the Vermont Chronicle. # BANK OF WINDSOR. The undersigned, Directors of the Bank of Windsor, aware of the difficulties they would have to encounter in attempting to redeem the paper of the Bank, and sensible, too, of the general prejudice existing in relation to its solvency, have nevertheless, from the date of its suspension to the present moment, put forth their most strenuous efforts to acquire the means of taking up its circulation. We have seen with regret, for we have been unable to prevent it, that great sacrifices have been submitted to by the bill-holders. Nothing