4076. Bank of Aurora (Aurora, IL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
November 22, 1860
Location
Aurora, Illinois (41.761, -88.320)

Metadata

Model
gpt-5-mini
Short Digest
17b67eba

Response Measures

Full suspension

Other: Bank appears to have closed doors and gone into liquidation after run and being 'thrown out' by Chicago banks; later ordered to withdraw circulation by Bank Commissioners.

Description

Newspapers from Nov–Dec 1860 report the Bank of Aurora's bills were thrown out by Chicago bankers after a call for additional securities. Reports mention a run and that Hall & Brother (owners) failed to open doors (run/closure). By Feb 20, 1861 the bank did not respond to the auditor's demand and was ordered to withdraw its circulation (effectively permanent closure/liquidation). Dates are drawn from article publication dates; OCR errors corrected (e.g., 'Bank of Napierville' -> 'Naperville').

Events (3)

1. November 22, 1860 Run
Cause
Correspondent
Cause Details
Chicago bankers/brokers 'threw out' the bank's notes after an auditor's call for additional securities, provoking heavy withdrawals.
Measures
Closed doors to the public (did not open for business); owners later recorded assignments and moved toward liquidation.
Newspaper Excerpt
the Bank of Aurora ... was thrown out ... there was a hasty examination of funds on hand ... during Monday they sustained a decided run.
Source
newspapers
2. November 27, 1860 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank was unable to meet the auditor's call for additional specie/securities and, after sustaining a run, closed its doors (practical suspension of payments).
Newspaper Excerpt
Messrs. Hall & Brother ... failed on Tuesday morning to open their doors for the transaction of business. During Monday they sustained a decided run.
Source
newspapers
3. February 20, 1861 Receivership
Newspaper Excerpt
This time expired on the 20th of February. Most of the banks responded promptly to the call, but the following did not, and the Bank Commissioners have ordered them to withdraw their circulation ... Bank of Aurora ... did not respond and the Bank Commissioners have ordered them to withdraw their circulation . . . probably most will be able to redeem their notes when their stocks are sold, but ... we advise our readers to have nothing to do with them . . . . (Mar 7, 1861 article).
Source
newspapers

Newspaper Articles (8)

Article from Cleveland Morning Leader, November 22, 1860

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Article Text

LIST OF BANKS UPON WHICH THE CALL IS MADE. American Exchange Banks. $16.231 Bank of Aurora 32,486 Bank of Chester 6.466 Bank of Commonwealth 9.218 Bank of Napierville 2,500 Bank of Pike County 5.126 Bank of Quincy 94.582 Citizens Bank 6,516 Corn Exchange Bank 22.602 Farmers' aud Traders Bauk 7.607 Grand Prairie Bank 6,383 Grayville Bank 40,901 Lafayette Bank 4,944 Merchants' and Drovers' Bank 4,542 Morgan County Bank 6.743 National Bank 8,700 Prairie State 2,043 Railroad Bank 5.057 Reed's Bank 3,060 Southern Bank of Illinois, Grayville 22,444 State Bank of Illinois 30,738 Of these not all will respond to the call; and our city bankers knowing the condition of each, have agreed to throw out the notes of the following banks to-day. LIST OF BANKS/ THE NOTES OF WHICH ARE THROWN OUT! American Exchange Bank, Bank of Aurora, Bank of the Commonwealth, Bank of Raleigh, Corn Exchange Bank, National Bank, State Bank of Illinois. Of course, so decided a step as this will create much excitement among the holders of these notes, and many, fearing a still further depreciation, will make haste to get rid of what they have on hand at any rate which they may be offered. Our advice to all is not to be precipitate. The value of the re-jected bills is not determined. It will fluctuate from day to day with the rise and fall of the stock market. If the political troubles of the day are surmounted, before the time comes for closing these banks up, their notes will again be at par. In any event, they have intrinsic worth; and in every case it will be wiser, where the necessities of the holder do not compel him to realize, to hold on and wait the progress of events. It is believed that every bank named in the list, save the seven, will make good its secu-rities and go on without trouble. At the present, the seventy banks not embraced in this call, are solvent; and we have reason to believe that whatever may happen their notes will be kept good. They are secured by bonds not yet much depreciated-mainly those of the State of Illinois and the United States-and they have ten per cent margins -that is an excess of securities over circula-tion-which entitles them to the continued confidence of the public. On the rejected notes, the people who hold them must charge the losses to that little State of South Caro-lina, whose threats of secession are at the bottom of all this trouble. Chicago Tribune, 20th. In addition to the above, the Tribune has an article upon the banks of that State, which is of much interest and value. It advises all to keep cool and keep their temper. It is hard to be obliged to pay five to ten per cent. for exchange, but this is better than not get-ting it at all. No panic will ensue if the hol-ders of western money will exercise their good sense in the present crisis. The call is made upon the above, to be responded to within thirty-five days, to put up additional securities, or, what is equivalent, to withdraw that amount of circulation, the entire sum called for being less than $300,000. The coupons for the semi-annual interest on the bonds in the hands of the Auditor will be due in forty-five days, and these will be re-tained wherever the banks are short in their margins. Many of the banks are secured by Missouri stocks, and the assurance is given that already three-fourths of the money ne-cessary for the payment of the interest due in Jannary is in New York, and the balance will be there in good time. The Tribune says "we see no cause, therefore, for any anxiety or alarm in regard to the currency of Illinois." A strong belief is expressed that the Wiscon-sin banks will keep their currency good, and that, although Illinois and Wisconsin curren-cy may be, for a few weeks, worth only from ninety to ninety-five cents, yet it will pass freely in the payment of debts, as in 1857-'58, and that exchange will soon be again below two per cent.


Article from Marshall County Republican, November 22, 1860

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MADE. $16,231 American Exchange Bank Bank of Aurora 32,485 Bank of Chester 6,466 Bank of Commonwealth 9,218 2,500 Bank of Naperville 5,126 Bank of Pike County 24,582 Bank.o Quincy 5,515 Citizens Bank 25,602 Corn Exchange Dank Farmers' and Traders' Bank 7,607 6,383 Grand Prairie Bank 49,901 Grayville Bank I 008 4,944 Lafayette Bank Merchants' and Drovers Bank 4,542 2,743 Morgan County Bank National Bank 8,709 Praisie State 2,043 5,056 Bailroad Bank 3,066 Reed's Bank 22,444 Southern Bank of III., Grayville State-Bank of Illinois 30,638 Of these not all will not respond to the caH₂and our city bankers knowing the condition of each, have agreed to throw out the notes of the following banks to-day: INST BANKS THE NOTES OF WHICH ARE THROWN [OUT. American Exchange Bank, Bank of Aurora Bank of the Commonwealth, (Bank of Raleigh, Corn Exchange Bank, National Bank, State Bank of Illinois: course, so decide a step as this will create much excitement among the holders of these notes, and imany, fearing a stil further depreciation. will make haste to get rul of what they have on hand at any referrhich they may be offered. Our adavice.to all is not to: be precipitation The and of the rejected bills is not determined will fluctuate from day to day with the atide and fall of the stock market. If the political troubles of the day are surmountTest) before the time comes for closing these (Tianks пр, their notes will again be at par. lbs any event, they have intrinsie worth; Midin every case it will be wisor, where (the necessities of the holder do not compel him to release, to hold on and wait the proagress of events. It is believed that every bank named in the list, save the seven, will make good its securities and go on without trouble. At the present, theseventy banks not embraced this call, are solvent; and we have reason Itd believe that whatever may happen their Onotes will be kept good. They are secured They bonds not yet muchidepreciated-maindy: those of the State of Illinois and the United States-and they have ten per cent margins-that is an excess of securities over circulation-which entitles them to The continued confidence of the public. On the rejected notes, the people who hold them charge the losses to that pestilent little State of Sonth Carolina, whose starents of secession are at the bottom of call this trouble. The same paper of yesterday, in its mo818 ney article, says: As might be expected we have bad today decidedly feverish money market The action of our city banks in throwing out seven of the Illinois banks took most people by surprise, and produced a panic among those least able to bear it. Parties here believe that most if not all the banks in the State will promptly respond to the call for additional securities. If so their bills will be perfectly good. Rates of exchange and for gold will doubtless rule high for some time to come; but we doubt not the bills of our Illinois and isconsin banks will pass from hand to hand as usual. Asto the bills of the banks thrown out here, no rate has been fixed upon them. Till the securities are put up, or something more definite is known about them, we presume they will in a day or two be bought by the brokers at from fifteen to twenty-five per cent discount. The latter figure was the highest any one would offer to-day. 001.21 Relief for Kansas. 228 We are pleased to learn from the Laoporte papers that a meeting has been held 201 that city a collection taken un and a


Article from The Daily Gate City, November 22, 1860

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Banks Thrown Out. The Marine Bank of Chicago telegraphed to G. C. Anderson & Co. of this city, on the 19th, that the notes of the following banks would be thrown out on the 20th : Bank of Aurora, West Aurora, III. " National Bank, Equality, " State Bank, Sbawneetown, " Am, Exchange Bank, Raleigh, " Corn Exchange Bank, Fairfield, B'k of Commonwealth, Robinson, " Bank of Raleigh, Raleigh, This telegram was received here on yes. terday morning, and, of course, the Bankers of the city followed suit. The news spread rapidly, and there was a hasty examination of funds on band by almost every one, and for once those who bad nothing felt happy. The notes of these banks are well secured, and the law requires additional security in case, and as fast as the, stocks on: which they are based, depreciate. No one ought to be scared into suffering a shave. The Chioago brokers are, doubtless, trying this game to speculate on the fears of the people. Holders of this currency ought to reinember the lesson of 1857. When the panie Game then, Illinois currency was unnecessarily run down, and thrown out at Chiengo, doubtless, for spooulating purposes then as now. Then our Bankershad to throw it out. People got scared and suffered all sorts of abaves, and very many bastened to convert Illinois and Wisconsin currency into Keokuk City Scrip for safety-save the mark : In a few weeks the panic subsided, a few banks liquidated-bearly every one of these paying not less than 95 cents on the dollar. The reet righted up, without any material change in the basis of security, and all again went on as smooth as ever. We think it will be about 80 now.


Article from Watertown Republican, November 23, 1860

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The Money Panic, There is considerable trouble just now with Illinois currency. The Auditor of that state has made a call upon twenty one of the banks there for additional securities to make good their circulation, as follows American Exchange Bank, Bank of Aurora, Bank of Chester, Bank of Commonwealth, Bank of Naperville, Bank of Pike County, Bank of Quincy, Citizens' Bank, Corn Exchange Bank, Farmers' and Traders Bank, Grand Prairie Bank, Grayville Bank, Lafayette Bank, Merchants' and Drover's Bank, Morgan County Bank, National Bank, Prairie State, Railroad Bank, Reed's Bank, Southern Bank of Illinois Grayville, State Bank of Illinois. Of the above it is believed that seven will not respond, hence their bills have been thrown out by the Chicago banks, as also by those of this State. The following are the seven banks above alluded to American Exchange Bank, Bank of Aurora, Bank of the Commonwealth, Bank of Raleigh, Corn Exchange Bank, National Bank, State Bank of Illinois. In reference to this action of the Chicago banks,, the Tribune of Tuesday says Of course SO decided a step as this will create much excitement among the holders of these notes, and many, fearing a still further depreciation, will make baste to get rid of what they have on hand at any rate which they may be offered. Our advice to all is not to be precipitate. The value of the rejected bills is not determined. It will fluctuate from day to day with the rise and fall of the stock market. If the political troubles of the day are surmounted, before the time comes for closing these banks up, their notes will again be at par. In any event, they have intrinsic worth and every case it will be wiser, where the necessities of the holder do not compel him to realize to hold on and wait the progress of events It is believed that every bank named in the list, save the seven, will make good its securities and go on without trouble. At present, the seventy banks not embraced in this call are solvent ; and we have reason to believe that whatever may happen their notes will be kept good. They are secured by bonds not yet depreciatedmainly those of the State of Illinios and the United States-and they have ten per cent margins-that is an excess of securities over circulation-which entitles them to the continued confidence of the public. The banks in this city at the present writing (Thursday) are taking the discredited bills, except those of the seven banks last mentioned, at a discount of ten per cent. but there is no telling how long this will last. We think not a great while. Our advice to all having any of them is to hold on. The flurry will soon be over and the banks and their bills will be as sound as ever ; at least such is our opinion. Who is He ? The Monroe State Rights some time since made a statement which we regarded at the time as a groundless assertion, that some $70,000 had been raised at the east for the purpose of buying up newspapers and otherwise operating on public sentiment in this State, against the Farm Montgagors. Being driven to the wall and compelled to give its authority for the rumor it has been the means of setting afloat it now says: "About one year ago, Senator M. M. Davis. of Portage, had a conversation with a gentleman in Watertown who is intimately related (a brother) to one of the leading operators, who lives in New York: and this latter gentleman stated to his Watertown brother that an assessment had been made on the holders of the railroad farm mortgage bonds, for the purpose of operating on the leading men and presses in Wisconsin, irrespective of party. This assessment, the gentleman said, amounted to over seventy thousand dollars. We will give the names of the gentlmen above referred to, when we get the consent of Hon. M. M. Davis to do SO. Noman will doubt the veracity of Senator Davis. We have the above information from him personally.' The matter now is put in a tangible shape and we trust that Senator Davis will at once speak out and give to the public all the facts that he has in his possession


Article from The Weekly Pioneer and Democrat, November 30, 1860

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$885,700 Less decrease in do 6 Missouri $547,000 00 5 do 96,000 00 Virginia do 6 3,000 00 Virginia do 6 Ohio 55,000.00 do 6 Illinois 39,540 00 9,000 00 Pennsylvania5 do 48,951 50 Specie 798,491 50 $87,208 50 Since this report, the Comptroller has made a call on the banks for additional securities, which has been promptly responded to. At Chicago, ou Thursday last, the sale of exchange advanced to seven and eight per cent., and in some cases, was sold as high as ten per cent. The Democrat of the 22d, says: Messrs. Hall & Brother, of Aurora, owners of the Bank of Aurora, and National Bank of Illinois, and also of the Arctic Bank, and Hall & Brother's Bank of Wisconsin, failed on Tues. day morning to open their doors for the trans. action of business. During Monday they sustained a decided run. Being undoubtedly very weak from the call for specie, which has for the past two weeks been very heavy, they could not have been able to comply with the call from the Auditor. and being natural solictous of retaining as many deposits as possible, they closed their doors. This will finish the banks in which they are interested. One of their depositors, who had almost $12,000 with them to his credit, hearing that they had a run, and that they closed their doors in consequence, went to the office of the Recorder's Clerk early on Tuesday morning to record two judgment notes against them. To his consternation he found that they (Hall & Brother) had been there as early as 4 A. M., and recorded their assignment. A despatch dated Boston, November 22, says: No serious results have yet attended the financial pressure, and remittances from the hottest part of the South continue to come in as usual. The statements of repudiation by Southern creditors are untrue. So far as this city is concerned, should the emergency require it, the directors of all the Boston banks propose to discount to the amount of five million dollars, which wlil make money easy in this city. The Wheeling, (Va.,) Washington, (D. C..) Norfolk, Richmond and Petersburg, and the Baltimore banks, suspended specie payment on the 22d. The Charleston banks are hard pressed, but refuse to suspend until the New York banks do.


Article from The Ottawa Free Trader, December 1, 1860

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Ottalva freeCrader. OTTAWA, ILL., DEC. 1, 1860. Bank Matters. The general tone of the "great commercial centers," such as New York, Baltimore, St. Louis, New Orleans, &c, is that of a better feeling in money matters. The market for breadstuffs which is, in such times, a good index of the feeling in money matters, shows a visible improve ment. Stocks, another important indicator, also show an improvement within the week, SO that it may safely be concluded that the worst is past. About here the main difficulty and trouble arise from the uncertainty which continues with reference to the banks of our own State. Their bills constitute al. most our entire circulation, and while some are almost wholly discarded by business men, and others looked upon with suspicion, it is difficult to keep the whole of business in motion with such a precarious circulating medium. In addition to the seven banks announced in our last as having been thrown out by the bankers and brokers of Chicago and this city, two others are now named-theGrayville Bank, and the Bank of Southern Illinois; SQ that the full list of Illinois Banks "not bankable" is now as follows: American Exchange Bank, Bank of Raleigh. Bank of Aurora, Bank of Commonwealth, National Bank, Corn Exchange Bank, State Bank-Shawneetown. Bank of Southern Illinois, Grayville Bank. Wisconsin money, which also constitutes an important part of our circulation, is taken without hesitation. Of the Banks of that State the Chicago Tribune of Wednesday says: The Wisconsin law is better than that of Illinois, for the reason that the Wisconsin Banks are bound to redeem their issues under a penalty. It is humiliating, but the truth may as well be told, that Wis consin currency in our own city has borne premium for the past week or ten days over that of Illinois of from 1 to 3 per tent. Exchange in Milwaukee for Wisconin currency has been cheaper by about the same figures. This is a condition of things which we again call uponour Legisature to remedy. The thirty days in which our "short" anks must put up their additional securiies are rapidly passing away, and thus far re have heard of none that has responded There were rumors in town that four of hem had deposited additional securities n Wednesday, but our bankers, who 'ould be likely to be informed of such a .et on the instant, have no such informaon. Of the above nine, the Bank of Aura, however, is the only one that has yet ven notice that it will not respond to the ill for additional securities, but prefers to into liquidation.


Article from The Cass County Republican, March 7, 1861

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ILLINOIS MONEY THROWN OUT. Our readers will remember that at the time of the panic when stocks depreciated, a number of the Illinois banks were required to deposit a certain amount of additional securities for the circulation then outstanding, and a certain time given them to fulfil the requirement. This time expired on the 20th of February. Most of the banks responded promptly to the call, but the following did not, and the Bank Commissioners have ordered them to withdraw their circulation. The following is the list:-Bank of Raleigh, Bank of Aurora, State Bank of America, Exchange Bank, National Bank, Corn Exchange Bank, Bank of Commonwealth, Southern Bank of Illinois at Grayville, Bank of Chester, Bank of Pike County, Bank of Quincy, Grand Prairie Bank, Farmers and Traders' Bank, Railroad Bank, Merchants and Drovers' Bank, Citizens' Bank and Morgan County Bank. Probably most of these banks will be able lo redeem their notes at par, when their stocks are sold, but as this will take some time, and as there is nothing sure about it, we advise our readers to have nothing to do with them.


Article from The Emporia News, April 13, 1861

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ILLINOIS BANKS. The telegraph brings us uews that the Chicago bankers and brokers have thrown out the bills of thirty-two of the Illinois banks. The reason for this panic is not stated. The banks in question have a circulation of about three and a half millions, secured by Missouri, Tennessee and Louisiana State stocks. At the present market rate of the bonds in question, the securities of the notes are worth from 85 to 90 cents on the dollar. The following is a complete list of the banks thrown out: American Exchange Bank. Bank of Albion. Bank of Aurora. Bank of Carmi. Bank of Chester. Bank of the Commonwealth. Bank of the Federal Union. Bank of Napierville. Bank of Quincy. Bank of Raleigh. Bank of the Republic. Bank of Southern Illinois. Bank of Belvidere. Bank of Benton. Canal Bank. Commercial Bank of New Haven. Corn Exchange Bank. Citizens' Bank. Edgar County Bank. Farmers' and Traders' Bank. Farmers' Bank, New Canton. Grand Prairie Bank. Grayville Bank. Illinois State Bank. Kane County Bank. Merchants' and Drovers' Bank. Mississippi River Bank. Morgan County Bank. National Bank. New Market Bank. Pike County Bank. Pamet Bank. Prairie State Bank. Railroad Bank. Southern Illinois Bank, Shawnee Bank. State Bank of Illinois, Shawneetown. State Stock Bank. Taunton Bank. Union County Bank. Union Bank. WISCONSIN BANKS. The notes of the following Wisconsin banks have also been thrown out: Eau Claire, Arctic Bank, Hall & Bro's Bank. Citizens' Bank,