22968. Bank of Watertown (Watertown, WI)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
June 1, 1861*
Location
Watertown, Wisconsin (43.195, -88.729)

Metadata

Model
gpt-5-mini
Short Digest
7f8511eb

Response Measures

None

Description

Articles (1861) describe a short-lived money panic in Watertown after ten Milwaukee banks were thrown out as not current. The Jefferson County Bank declined to receive deposits during the panic but later resumed accepting deposits when the situation calmed — this is a temporary suspension (refusal to receive deposits) with reopening. Cause is driven by distress/discrediting of other/local banks (Milwaukee). Dates approximated from newspaper (June 1861).

Events (1)

1. June 1, 1861* Suspension
Cause
Local Banks
Cause Details
News that ten banks in Milwaukee were thrown out and Wisconsin currency was discredited, producing panic and refusal by banks to take deposits or currency; Jefferson County Bank refused deposits temporarily.
Newspaper Excerpt
On Monday the furor was stronger than ever. ... the Jefferson County Bank and the Bank of Wisconsin declined to receive deposits
Source
newspapers

Newspaper Articles (2)

Article from Watertown Republican, June 28, 1861

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Article Text

dantly sustained by the press since he was here that it is unnecessary to add a single word; unless it be that his moral character is fully equal to his high intellectual position. By all means go and hear him. # A STRANGE PROCEEDING. This community was taken by surprise Tuesday evening upen the arrival of a militarycompany from Milwau- kee, sent hither, as we have been informed, by Gov. Randall. At whose instance it was done, we have been unable to learn. Certain it is that no necessity existed for any such movement. The rumors afloat during the day that a meeting was held at Juneau in the afternoon at which ar- rangements were made for sacking the Banks here in the eve 'ng, a la Milwaukee, were en- titled to no sort of credence. There were excited individuals here, it is true, but none of them had any design on the Banks in Water- town, for they well knew that those institutions could do nothing but follow in the wake of Mil- waukee and take only such money as they took there. It was a great piece of folly to incur the expense, and cut such a figure, as that in- volved in posting a military company out here when there was no greater reason for doing it than in the present instance. We wonder who caused it to be done? Since the above was written we find in the Milwaukee News, of Wednesday, the following item which throws some light upon the matter, but leaves us in the fog as to who was the orig- inator of the canard. The News says: "A telegram was received in this city, about four o'clock yesterday afternoon, stating that a mob had commenced an assault upon the Banks of the city of Watertown, and were en- gaged in sacking the Banks. A request was also forwarded for military companies from this city to assist in quelling the riot. "Two companies immediately started, fully armed with muskets, for the depot of the Wa- tertown road for the purpose of proceeding to Watertown, to assist in quelling the riot. They left by special train about five o'clock, and will use every exertion to restore order." Now the question is, who sent that lying tel- egram? Have we a person here so base as to be guilty of such a proceeding? If so, the public has a right to know his name. # THE MONEY PANIC IN WATERTOWN. This has been a badly excited town since last Satur- day, when intelligence reached here that ten of the Banks in the guaranteed list had been thrown out in Milwaukee and were no longer current. It soon became noised about that the bottom had fallen out of the arrangement cooked up by the Bankers in April, and the consequence was a rushing to and fro of every one who had a dollar of Wisconsin currency in his or her pocket, anxious to pay debts, or buy goods, or in some other way rid themselves of it. On Monday the furor was stronger than ever. Some of the merchants refused to take it on any terms whatever, and closed their doors, while others took it at a discount of from twenty to thirty per. cent., and others still taking it at its face. In the afternoon. the Jefferson County Bank and the Bank of Wis- consin declined to receive deposits, while the Bnk of Watertown stood up to the rack man- fully, taking all that came along from its regular customers, though the business it was doing must have smacked strongly of "biled owl." Tuesday there was less commotion, the mer- chauts depositing with the two first named Banks declining to sell any goods except for specie, while those doing business with the latter institution kept on selling as usual, until four o'clock when they, too, having been noti- fied that deposits would no longer be received there "shut down the gate" and a blockade at once rested upon trade. Thus matters stood until Wednesday morning, when dealers offered to take the bills of thirty-four Banks known as the Farmer's & Miller's list, and business again began to flourish as of yore. In the afternoon, the Banks concluded on receipt of advices from Milwaukee, to take deposits again the same as they had done Monday, throwing out the ten Banks mentioned in another column, in addition to those discredited in December. So matters quieted down once more and trade went along as smoothly as though nothing had happened and the town had not been all excite- ment but twenty-four hours before, reluctant to touch Wisconsin currency with anything but a ten foot pole. # THE HOG LAW. Amongst the multitudes of irrepressible conflicts going on around us the war between the porcine tribe and our city, deserves & passing notice. Agreeably to the doctrine commonly entertained that hogs are not free commoners, our city government years since passed an ordinance prohibiting the brist- ling gentry from running in the streets. This law the City Marshal, who is the official repre- sentative of the city, is sworn to enforce, and in the discharge of his official duty he is clothed with no discrectionary powers, nor is he allowed to know any difference between the hegs of friends or foes, the ordinance is his rule of action, and his oath of office binds him to put it in force. Unlike some of his predecessors, our present Marshal is nobly discharging his duty, and this shows that in this respect cer-


Article from Watertown Republican, September 28, 1892

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Article Text

a number of them, claiming that they were compelled to do so in self defense. Including the three which were discredited some time ago, the list of uncurrent now stands as follows. Here follows a list of twenty-two banks, which we omit for want of space. But this was nothing compared to what transpired later. Panic reigned supreme everywhere, and we cannot better describe the situation than by reproducing an article from THE REPUBLICAN under date of June 28, 1861: THE MONEY PANICIN WATERTOWN.This has been a badly excited town since last Saturday, when intelligence reached here that ten of the banks in the guaranteed list had been thrown out in Milwaukee and were no longer current. It soon became noised about that the bottom had fallen out of the arrangement cooked up by the bankersi in April, and the consequence was a rushing to and fro of every one who had a dollar of Wisconsin currency in his or her pocket, anxious to pay debts, or buy goods, or in some other way rid themselves of it. On Monday the furor was stronger than ever. Some of the merchants refused to takeit on any terms whatever, and closed their doors, while others took it at a discount of from twenty to thirty per cent., and others still taking it at its face. In the afternoon the Jefferson County bank and the Bank of Wisconsin declined to receive deposits, while the Bank of Watertown stood up to the rack manfully, taking all that came along from its regular customers, though the business it was doing must havesmacked strongly of "biled owl." Tuesday there was less commotion, the merchants depositing with the two first named banks declining to sell any goods except for specie, while those doing business with the latter institution kept on selling as usual until 4 o'clock, when they, too, having been notified that deposits would no longer be received there, "shut down the gate" and a blockade at once rested upon trade. Thus matters stood until Wednesday morning. when dealers offered to take the bills of thirty-four banks known as the Farmer's and Miller's list. and business again began to flourish as of yore. In the afternoon the banks concluded, on receipt of advices from Milwaukee, to take deposits again the same as they had done Monday, throwing out the ten banks mentioned in another column, in addition to those discredited in December. So matters quieted down once more and trade went along as smoothly as though nothing had haph pened and the town had not been all a excitement but twenty-four hours bec fore, reluctant to touch Wisconsin currency with anything but a tenc S foot pole. r All this is a historical record made p a thirty years ago of events as they ocO St curred at that time. It is not mere to declamation or clap-trap. There are plenty of our citizens who remember the facts as above narrated. Let the younger class apply to them for information if in doubt. Ask Democrats who were then bankers, merchants or in any kind of business here and they will verify every statement made. Any one desiring a return of those days should vote for Cleveland on his stump-tail money platform. I It will not do to say that such currency would not obtain circulation. S If legalized by the different states, it would soon have the field to itself, W for the better money would be driven into retirement. Every one knows that there could be no other result.