Southern Bank - Bainbridge, GA

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: July 22, 1859
Location: Bainbridge, Georgia (30.904, -84.575)

Metadata

Model: gpt-5-mini
Short Digest: 02ec525c

Response Measures

None

Description

Article reports the directors suspended the Southern Bank of Georgia amid disputes over bonds, alleged misrepresentation and inability to redeem circulation. No run is described. The piece is ambiguous about permanent closure or receivership; however suspension is clearly reported and later discussion implies serious insolvency, so I classify as suspension_closure while noting closure/receivership is not explicitly stated in the text.

Events (1)

1. July 22, 1859 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Directors suspended the bank after disputed bond transactions, alleged misrepresentations by Underwood, and inability to redeem the bank's circulation; concerns about solvency and fraud were reported in affidavits and testimony.
Newspaper Excerpt: the Directors suspended Southern By Mr Georgia was Bank
Source: newspapers

Newspaper Articles (1)

1. August 5, 1859 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, August 5, 1859

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Article Text

LA W INTELLIGENCE. SUPREME COURT-CHAMBERS CLERKE. August 4.-Before Jastice FINANCIAL OPERATIONS. The Tyroue and Lock Haven Schenck Raflroad Com any agt. Allen the defenddischarge To-day, case. a motion who is charged was made with to obtaining bile in of bonds the of ant the in this plaintiffe. Bank of which Georgia be The paid defendant for in worthlees founded averred were that entrae, the .ffiSouthern which the order of arree was of the of the 17th the day of June last. Dr. Underwood the the bonds On road came this city to Schenck and and that davits Ra following Company: were true droumstances negotiate President case: of the Company to the at amount No. 14 of Hapover street, and Scheuck the together 200,000. currency Underwood to met the bonds and my for teem of in the the value, offered Bank of Grorg's at 80 per cent par of of the Southern condition that Underwood as the for the redempon express purchase President the the Company, ouid circu ate and provide Mr. Schenek Railread endretcy for the epa of ax mouths the Bank had tion of such the charter of the Bank. and axid that of $9,000. which be agreed to h wever, refered to sall said to the Underwood, would take from $ 00,000 to $30,000 k then etren'ation produced it protect. houds at Schen 80 protect per cent, saying that of the bank for the space of six months. value of the circulation Underwood 85 per cent on the par therefore stood. to the give currency named. The agreement currency in bones in to for the redemption of the of six Underwood was and elsewhere, for the Scheack agreed New-York, Philaderphia, provide space the by depositing funds to redeem the of same. $1,00 at months, the currency to the amount bank redeemed agreed to protect 10 Georgia Assoon as the forwarded w bank at Batubridge, of $1,000, the BAMB were to be Underto the amount with a sight draft of the same amount, which drafts Underweed. on sight If moderwood failed to notes to pay from psysuch his liability wood was the th Schenck whete be relieved eed to proOD presentation, such r may 12 Ge rg'a. Scheack al. issued at The conto redeem $9.(00eirculation of the bank already the the above particulars was signed by 17th the of the bank and the Bonds of the tract tect on embodying June last. Company, the and parties there were The plates and the parties agreed to go that to city issue of the to Philad. Iphia, bargain, pr video the amount of the be deconsumer the Schenck had represented, which fact was to bebank. was as engraver's certificate. It was termined the by parties the that the only moneys of the bank to be put This twoen Underwood. also agreed into was to be delivered by Scheuck to to decirculation was carried out Mr. Under also who agreed would rearrange ment in the hands of John Thompson. posit and quote the bank in his bank-note he went, the same, Schenck went to Georgia, but before was advised not to enter into the of drem f.w days after. Underwood $10,000 arrangement, circulation detector. A Mr. be prepared to redeem and protect the and get tem unless was Underwood agreed to protect the notes months, the bank. the detectors. At the expiration of six the Board quoted in to redeem the circulation, Schenck that the bonds could be made the bank, complete agreed provided available. of Mr. was 80 inquired of Scheock as to the locality exUnderwood told that it was sixty miles from any rattroad, was and on being his astisfacti n. Mr. Underwood, before the bargain of the pressed jaid the matter before the Board of Road who expressed statement, it appeared that the in completed Scheuck's their assent. Directors suspended Southern By Mr Georgia was Bank, whien, though it had of law, Back of had not absolutely been wound up by process These the erisis, he charged Underwood was well aware De of which fact to in the affidavits of Schenck Messra aworn two others. In rebuttal, the stateme ts Taylor, facts are other side Forest, proand affidavit of Underwood, who denied the nothing about duced an defendant, and stated that be kne for made by k the till the 221 of July last, was he saw Mr. Th was ompson good for the Ba who then told sim that the Bank $300,000 the first time, the r ad is now worth from and nothing. Mr. that he isa member of the Society of Friends, Lever had $500,000; U. sayathat he to confidence ie the promises of men; that know bac every transacted any business in New-York, and did not stitutioo; before Southern Bank was a good, safe and legali of Schence but what the had given the bonds believing the statemen's deuied that he that he to the value of the bank notes; he Underwood's to be true, as to redeem the currency asstated Mr. of the road. ever agreed corroborated by the Chief Engineer keep statement Mr. Schenck was tostified had circulated that Underwood some of the had bill's failed before to providing the his agreement, their their were in great pecuniary forced sale for Railroad Company eir and ulation; that the road was not difficulty; completed that and worth over 25 per cent, and at a failure, bonds were not fetch not over 10 per cent; that, owing to such he would be would was afraid to return home, fearing that Underwood circumstances so excited the mind of mobbed: was induced to make complaint of fraud against to ave himself. that there Bank Underwood Note Schouck DoThe co mel for the plaintiff bank as baving asserta that failed, every except Dye's which tector quot bank d at the one per cent. and such Detector was the one Underwood to diequoted the occasion of the representations to motion used OD the by counsel, the Judge denied the was in After argument order of arrest, it not appearing that the bank to renew the a charge t with privilege to the defendant solvent. The solvent condition, affidavits showing that the bank is Judge motion The counsel reduced upon for the bail the defendant from $150,000 states to that $100,000. be will be enabled to prove the solvency Before of the bank. Jratice INGRAHAM. John Stacom. Elizabeth is one of the officers in the Court of General from Sessions The deft. of this city His wife recently moved obtained to have a divorce his child bim OD the around institution of adultery, of St. Vincent and be DePaul. His deserted wife's affi- and placed in the that OD the 10th of February last which he to supdavit shows leaving her but $11 with in abandoned child. her, Since that time he has been living months open port her with prostitute in Mercer street. A If few she would ago, sue adultery from a him an offer to the effect that herself and she received divorce from him, be would make provisi for but she for a This was pted and the divorce was granted, and that she child. has failed to make any provision for her, child is but alieges be a mubsit nce by sewing. She says her solace she has three forced years to get of age and that her society is the only left. decided that the divorce having been granted against of the The husband, Judge he had no claim to the custody or disposition the child. He therefore denied the motion. DECISIONS. Henry H. Morange agt. Peter Morris.-Motion the excepallow the debt or to move for a new trial if necessary. on be granted Special to Term, and that the judgement, costs of modeemed tion at for that purpose on payment The in other respects, to T. Stewart et al. agt. H. tion. Alexander opened judgment, stand. of $10, S. state Crocker when and far as to require def-ndant to to abide Motion to whom grauted, the payment so was made, plaintiff's costs, $10, event.