4213. Southern Bank of Illinois (Grayville, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
February 20, 1861
Location
Grayville, Illinois (38.258, -87.994)

Metadata

Model
gpt-5-mini
Short Digest
293f82f01dc2a823

Response Measures

None

Description

Contemporary newspapers (Mar 1861) list the Southern Bank of Illinois at Grayville among Illinois banks that failed to meet a commissioners' requirement and were ordered to withdraw their circulation (time expired Feb 20, 1861). No article describes a depositor run or later reopening; the action was by bank commissioners, implying suspension and likely permanent closure.

Events (1)
1. February 20, 1861 Suspension
Cause
Government Action
Cause Details
Failed to deposit required additional securities by the Feb 20 deadline; Bank Commissioners ordered withdrawal of its circulation.
Newspaper Excerpt
the following did not, and the Bank Commissioners have ordered them to withdraw their circulation... Southern Bank of Illinois at Grayville
Source
newspapers

Newspaper Articles (2)
1. March 6, 1861 The Cadiz Democratic Sentinel Cadiz, OH
Article from The Cadiz Democratic Sentinel, March 6, 1861

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Article Text

Markets, Trade, &c Look out for worthless Bank paper. No less than SIXTEEN of the Illinois Banks have gone by the Board. They are: "The Bank of Baleigh, Bank of Anrora, State 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." "Also suspension of Wisconsin Banks! The following Wisconsin Banks suspended to. day: Artic and Eauclair Banks, Wisconsin and Rail road Bank, Illinois. The latter institution had a circu.ation of nearly $94.000." This is a nice list to look at by those poor people who have nothing else in their pockets, except the paper of these Banks. Had a thief stolen this much money the whole police force of the country would have been in full cry after him. The extreme frontier was a rich field for these Bankers to operate in, and there will be the most grieonsv losses, because they can afford to loose but little. When shall we have release from such sponging on the public credulity. / Crisis.

2. March 7, 1861 The Cass County Republican Dowagiac, MI
Article from The Cass County Republican, March 7, 1861

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Article Text

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.