4147. People's Bank (Carmi, IL)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
January 17, 1857
Location
Carmi, Illinois (38.091, -88.159)

Metadata

Model
gpt-5-mini
Short Digest
6b4c82da

Response Measures

None

Description

Multiple articles (Jan 1857) report the People's Bank of Carmi's notes being thrown out and mention a panic triggered by failures of the Gramercy and Shawnee banks whose owners also controlled other banks. There is repeated reference to heavy withdrawals and loss of confidence but no article here reports a formal suspension, closure, receiver appointment, or later reopening for People's Bank — so classified as a run only (contagion from other local banks). 'State' selected because these are 'Free Banks' under state charters.

Events (1)
1. January 17, 1857 Run
Cause
Local Banks
Cause Details
Contagion from failures of Gramercy and Shawnee Banks and their owners' connections; other banks' failures led dealers to 'throw out' these banks' notes and general panic.
Newspaper Excerpt
Of the Illinois Banks, the notes of the following were thrown out: State Stock Security Bank at Danville; People's Bank at Carmi; Prairie State Bank at Washington; Rushville Bank at Rushville.
Source
newspapers

Newspaper Articles (6)
1. January 21, 1857 Weekly Hawk-Eye and Telegraph Burlington, IA
Article from Weekly Hawk-Eye and Telegraph, January 21, 1857

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Article Text

The Bank Pan ic. In regard to the Bank Failures a brief note of which appeared in our paper of yesterday, the probabilities are that the excitement will soon pass over and the notes of the discredited banks enjoy the same confidence as formerly. Of this panic the Democratic Press (Chicago) of Saturday thus speaks: "Dispatches were received here yesterday from New York by one of our Banking Houses, ansouncing that the New York brokers had thrown out the notes of the Gramercy Bank, Ind., Shawnee Bank of Attica, Ind., and the Zimmerman Bank, Canada. As a consequence the notes of the same institution were thrown out here. It is reunored that the same parties who own the Gramercy Bank of Indiana are also the owners of the People's Bank of Carmi, the Prairie State Bank, and the Rushville Bank, all of Illinois, which rumor induced some of the banks of this City to throw out the notes of the above named Illinois institutions yesterday. The Stock Security Bank at Danville, has among its securities $58,000 in California bonds. The Supreme Court of that State having recently decided that those bonds are illegal, some of our brokers, yesterday, refused to receive the bills of the Stock Security on deposit. The People's Bank, at Carmi, is secured by a deposit of the following State stocks: $15,000, Virginia ; $218,000, Missouri; $238000, Louisiana and $29,000 Tennessee. Total securities $500,000. Circulation $464, 515. The Rushville Bank has the following basis of circulation : $88,000, Missouri; $43,500, Louisiana. Total securities $81,500. Circulation $78,300 The following are the bonds pledged by the arity Bank, of Danville: Stock Sec. $55,000, V. orginia; 90, California; 82,000, Missouri; 15,000, Tennes- 45,000, Louisiana 58,00 see. Circulation $183,000. Total securities $200, 470. There was a movement on foot among our bankers yesterday, which we ha've reason to beliere will go far toward, if not eL tirely, restorThere is ing these four banks to sound credit. no reason why this may not be done with all of them except the Stock Security Bank, Dan Fille. As regards the latter if the owners replace the California stocks, with others that are good, or will promptly cancel them, its issues will cer tainly be as good as the average of Illinois Banks. Our advice to the holders of notes on the above banks is to keep perfectly cool, and submit to NO shave. We hope to be able very soon to quote their notes as good at the counters of our Chicago banks. In the meanwhile let our State Legislature proceed cautiously, yet firmly, to make such amendments of our general banking law as oxperience has demonstrated to be necessary.

2. January 23, 1857 Indiana American Brookville, Indianapolis, IN
Article from Indiana American, January 23, 1857

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Article Text

Another Bank Panic! The failure of the Gramercy Bank, Lafayette, and the Shawnee Bank, Attica, under circumstances that reveal fraud, on the part of their owners, if not also corruption on the part of the Auditor of State, has caused another panic in regard to the Free Banks of Indiana and Illinois. No wonder. If these, which sustained the shock of two years ago, go down, what confidence can the public put in any of them? Alluding to the panic in Cincinnati, the Gazette of Monday says: "The notes of the following Indiana Banks were thrown out on Saturday :Central and Farmers' & Mechanics' Bank of Indianapolis; Tippecanoe Bank at Logansport; and Brookville Bank at Brookville. The latter Bank, however, was by some considered good, and some of the houses continued to receive the paper at par. It is owned and managed, we are informed, by good and responsible men.Of the Illinois Banks, the notes of the following were thrown:-State Stock Security Bank at Danville; People's Bank at Carmi; Prairie State Bank at Washington; Rushville Bank at Rushville; Agricultural Bank at Marion; Central Bank at Peoria. The Bank of the Capitol at Indianapolis, the Exchange Bank at Greencastle, Ind., and the Farmers's & Traders' Bank at Charleston, III., are received with distrust. What this excitement will lead to, it is difficult to say." We wish it would lead to an abandonment of the new-fangled patent-Democracy system of banking without capital. If the present Legislature does not do something to protect the people from the flood of spotted paper, called money, we wish they would go into "joint convention" in the penitentiary for two years, and let the people elect Legislators who would do some good.

3. January 23, 1857 Daily Nashville Patriot Nashville, TN
Article from Daily Nashville Patriot, January 23, 1857

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THE Indiana AND ILLINOIS FREE BANKS.The Cincinnati Gazette of the 19th says: The failure of the Gramercy and Shawnee Banks of Indiana have caused a great deal of confusion among our money dealers, with reference to the Free Banks of Indiana, Illinois and Wisconsin, all of which, just now are looked upon with suspicion. The notes of the following Indiana Banks were thrown out to-day: Central and Farmers and Mechanics' Bank of Indianapolis; Tippacanoe Bank, Logansport; and Brookville Bank, Brookville. The latter bank, however, was by some considered good, and some of the houses continued to receive notes at par. It is owned and managed, we are informed, by good and responsible men. Of the Illinois Banks, the notes of the following were thrown out: State Stock Security Bank at Danville; People's Bank at Carmi; Prairie State Bank at Washington; Rushville Bank at Rushville; Agricultural Bank at Marion; Central Bank at Peoria. The Bank of the Capitol at Indianapolis, the Exchange Bank at Greencastle, Ind., and the Farmers' and Traders' Bank at Charleston, Ill., are received with distrust. What this excitement will lead to it is difficult to say. All the Free Banks will sustain a heavy run, but those that intend to comply with the new law and continue business will probably be able to sustain their credit. The chief cause of all this trouble lies in the fact that the owners of the Gramercy and Shawnee Banks withdrew their bonds from the Auditor of State prior to their failure, leaving nothing in the hands of the State officer to redeem their cireulation.

4. January 28, 1857 The Cadiz Democratic Sentinel Cadiz, OH
Article from The Cadiz Democratic Sentinel, January 28, 1857

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# NEWS ITEMS. It is said that Santa Anna is intrieguing with Spain to place a Spanish Prince as Monarch over Mexico. We learn that the Farmers and Mechanics' Bank of Indianapolis has failed. For the year ending March, 1856, the tax on dogs in England yielded about one million dollars. Ex Governor Shannon has removed from Ohio to Lecompton, Kansas, and opened a law office. A Mr. Alexander, of Woodford, in Kentucky, recently paid $15,000 for the celebrated race horse, Lexington. The Etna Fire insurance Company has declared a semiannual dividend of 5 per cent., payable on the 15th ult. The new Post Office, at Cincinnati, opened on the 12th inst., contains over twenty-seven hundred boxes, at three, five and six dollars per year. The Toledo Times says they are sinking a well in that city which will be 2,500 feet deep. It will be the deepest well in the world. Sing Sing Prison is at present the hom of about nine hundred prisoners, of whom about eight hundred are men and boys, and nearly one hundred are women. MONTRELIER, January 15. Samuel Prentiss, Judge of the U. S. District Court of Vermont, and for many years, U. S. Senator, died here this morning. Francis S. Edwards, of New York, is said to be the member of Congress who offered Mr. Paine $1,500 for his vote. He is a Republican-Know Nothing in politics. A man named Lyons, who said he was from Wheeling, was found lying on the ice of the Ohio, near Steubenville, on Sunday night, nearly perished from freezing. The Philadelphia North American says that within the limit of three blocks on Third street, in that city, $24,000,000 worth of goods was sold during the last year. Mr. Grosvenor, a stock actor at the Broadway Theatre for several years, recently married a daughter of the celebaated Robert Schuyler. So says the Boston Post. WILMINGTON, January 14. The Democratic members of the Legislature met in caucus last night and nominated the Hon. James A. Bayard and Martin W. Bates for United States Senators from this State. The Louisville papers say the last bushel of coal has now disappeared from the coal yards, and the suffering among the poor for want of fuel is very great. A FORMER TIME. Distinctly marked tracks of men, birds and animals, all of gigantic size, it is said, have been discovered recently at Barnesville, Ohio, which have caused much curious speculation. We learn that the Ohio and Mississippi rail road will be entirely completed by the first of March. Cars will run directly through from Cincinnati to St. Louis on that day. UP-HILL LEGISLATION. -The St. Louis Democrat says the price of board at Jefferson City, Mo., is raised this winter to $30 a week. The pay of the members of the Legislature amounts to only $21. An article on education in France, published in the Constitutional, states that in the year 1855, more than 400,000 young girls-850,000 children from six to thirteen years of age, received no kind of instruction whatever. The Elitors of the State are under many obligations to the Editors of the Mansfield Herald, and the Mansfield Shield and Banner, for the attention and kindness bestowed upon them, during the late Convention. The Washington correspondent of the New York Tribune mentions a singular fact. He says: "The President gives a farewell dinner to-morrow to the whole diplomatic corps and their families, the ladies of which are all American but one." A Washington letter states that Mr. Cad-mowalader, member of Congress from Philadelphia, who recently made a speech against Know-Nothingism, was shot at in the evening while walking on 14th street, and the ball passed close to his head. FATAL DUEL. It is reported that a duel took place on Saturday weeek, near Columbia South Carolina, between Messrs. Bryan and Pope, two members of the House from Charleston. At the first shot Byran was killed, and Pope shot through the thigh. ST. LOUIS, Jan. 19. The Territorial legislature of Kansas was organized on the 12th. Thomas Johnson was chosen President of the Senate and W. G. Mathias Speaker of the House. The Governor's Message was to delivered on the 13th, NEW FIBM. The proprietorship of the Monroe House, says the Wheeling Argus, has been changed, by the inception of a gentleman named Heslip. The firm is now Barrett & Heslip, and both gentlemen being experienced in the business, the house cannot fail to transact even an increase upon its old and well established business. HONZ WMA CORRY. We understand, saye the Statesman, that this gentleman, whose illness we alluded to some days ago, is labouring under an attack of small pox. We hope Mr Corry will early recover from this most painful disease, and resume his seat in the House, where he can so illy be spared. CHICAGO, Jan. 17. Several city banks yesterday threw out the notes of the People's Bank Carmi, Rushville Bank, Prairie State Bank ane Washington Stock Security Band and of Danville, all Illinois. The latter is partially secured by California bonds. Others owned by Gramercy Bank, Lafayette. Total circulation $825,000. Securities $900,000

5. January 29, 1857 Fayetteville Observer Fayetteville, TN
Article from Fayetteville Observer, January 29, 1857

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The Indiana and Illinois Free Banks The Cincinnati Gazette says: The failure of the Gramercy and Shawnee Banks of Indiana, have caused a great deal of confusion among our money dealers with reference to the Free Banks of Indiana, Illinois, and Wisconsin, all of which, just now, are looked upon with suspicion. The notes of the following Indiana Banks were thrown out to-day: Central and Farmers & Mechanics' Banks of Indianapolis; Tippecanoe Bank, Loganport; and Brookville Bank, Brookville. The latter bank, however, was by some considered good, and some of the houses continued to receive its notes at par. It is owned and managed, we are informed, by good and responsible men. Of the Illinois Banks, the notes of the following were thrown out: State Stock security Bank at Danville; People's Bank at Carmi; Prairie State Bank at Washington: Rushville Bank at Rushville; Agricultural Bank at Marion; Central Bank at Peoria. The Bank of the Capitol at Indianapolis, the Exchange Bank at Greencastle, Ind., and the Farmers' and Traders' Bank at Charleston, Ili., are received with distrust. What this excitement will lead to it is difficult to say. All the Free Banks will sustain a heavy run, but those that intend to comply with the new law and continue business will probably be able to sustain their credit. The chief cause of all this trouble lies in the fact that the owners of the Gramercy and Shawnee Banks withdrew their bonds from the Auditor of State prior to their failure leaving nothing in the hands of the State officer to redeem their circulation.

6. February 5, 1857 Belmont Chronicle Saint Clairsville, OH
Article from Belmont Chronicle, February 5, 1857

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THE BANKS-Itwas our intention to have given the circulation and securities of the Illinois and Indiana Banks that are discredited, but the storm has prevented our doing 80 this week. The troubles in I Ilinois and Indiana have been precipitated by the Gramercy Bank, which concern, or its backers, owned several other banks, which, of course, all went over like a row of bricks. The Gramercy Bank owners, we see are at the head of one of the branches of the Bank of the State of Indiana." The discredited banks, as far as we are posted, are: Gramercy Bank, Lafayette, Ind.; Shawnee Bank, Attica, Ind.; People's Bank. Carmi, Ill.; Stock Security Bank, Danville, III.; Prairie State Bank, Washingtor, III.; Rushville Bank, Rushville, III. The Exchange Bank, Bangor, Me.. has gone into the hands of Receivers-Tomb of the Capulets."-Thomps Bank Note Reporter.