4634. Prairie State Bank (Chicago, IL)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
January 1, 1857*
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
7937621e

Response Measures

Full suspension

Other: Bank notes were widely thrown out by other banks/merchants; articles link panic to failure of Gramercy Bank.

Description

Newspaper articles (Jan–Feb 1857) report the Prairie State Bank's notes were thrown out and the bank was discredited following the Gramercy/Shawnee failures; this indicates a depositor/market run/withdrawal pressure driven by contagion from other bank failures. One article (Jan 22) contains a parenthetical note implying the Prairie State Bank had failed, creating some ambiguity, but no clear report of a suspension, receivership, or reopening appears in the articles provided. The provided bank location (Chicago, IL) conflicts with multiple articles that reference Prairie State Bank at Washington, Ill. I mark bank_name_unsure=true for that reason and retain the provided city per instructions.

Events (1)
1. January 1, 1857* Run
Cause
Local Banks
Cause Details
Contagion from failure of the Gramercy Bank and Shawnee Bank — panic led other banks' notes to be thrown out and heavy withdrawals expected.
Newspaper Excerpt
Of the Illinois Banks, the notes of the following were thrown out: ... Prairie State Bank at Washington;
Source
newspapers

Newspaper Articles (6)
1. January 22, 1857 Marshall County Republican Plymouth, IN
Article from Marshall County Republican, January 22, 1857

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Article Text

Gramercy Bank Failed. The Indiana Journal, of the 15th inst has the following in reference to the fail ure of the Gramercy Bank. under its monetary and commercial head: The bills of the Gramercy Bank, at La fnyette. were thrown out yesterday by the Bankers of this city. The securities of the Bank are gone, and its notes, consequently, worthless. We understand that under misapprehension of the intention of the parties, and by seemingly fair rep. resentations made, the Auditor of State permitted the securities to be removed from his office. As matters stand at pre sent, the circulating notes of the Gram erey Bank are worth little or nothing. The Journal of the 16th, contains the following additional information in regard to the failure of the Gramercy and other Banks: The failure of the Gramercy Bank is attributable to speculations in State Stocks, in Wall street operations, and not to the failure of any Bank to pay claims held by the Gramercy Bank The owners of the Gramercy were, al. 80. the owners of the Shiwnea Bink at Attica, That Bank is now placed in the list of suspended and Broken Banks. The Gramercy owned four Illinois Banks, one of which [the Prairie State Bank, at Washington.] we noticed yes terday as having failed, Illinois money is generally discredited, not on account of the connection of the Genmercy with several of the banks of that State partic. ularly, but because a feeling of distrust has been prevalant for some time in ref. erence to their solvency. Some of our merchants receive Illinois money, but all the Banks throw it out or discount it heavily Both houses of the Legislature to-day passed resolutions asking the Auditer and Treasurer of State to lay before them the amount of circulation, bonds on deposite as securities, and the value of the same, belonging 10 the Gramercy Bank Another resolution calls for information of a similar character in reference to all the Free Banks of the State,When all the statements are made. it will then be seen who has been at fault, if fault there is, in the matter of the remo. val of securities, to which we alluded yesterday. The Free Banks of Indiana, in compliance with the law, have been publishing their semi-annual statements in the Journal for some days past. The stant. ing of the Banks can be learned from these statements They are all sound and safe. The failure of the Gramercy and Shawnea Banka should not affect the credit of any other of the Free Banks, or diminish the confidence that the people have in their stability. 11 the securities of the Gramercy were removed from the Auditor's office under false pretenses, that fact should not implicate the officers, or injure the credit of any other Bank.

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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Article Text

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

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Article Text

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.

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

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Article Text

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.

6. April 3, 1857 Evening Star Washington, DC
Article from Evening Star, April 3, 1857

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Article Text

Wuss boka lyk Viktory. And John hadd a pair of blue troughsiz on And a shanghi kote so neet, Ana big bosom pin stuk rite under his ohin An a pear uv boots on hys pheet. THE MINISTERS'"UNHUMUN" QUESTION The minister hee lookt rite at me And sez "will u be married wommun" will sez I, and begun to kri, it seemed soe kinder unhumun. Tu ask mee, when he nu soe wel ide bin waytin so long it WUZ horryd, But its oli now and how happy vough Tu thynke John and I has gott married. Tun "Prairie State Bank" at Washington, III., elosed doors on Friday last. ID The eighth Philadelphia trade sale began on Tuesday. The invoices are valued at $200,000. The whole number of persons killed at the late railroad accident in Canada was 93. 45 The Canadians are much exercised at the existence of American lottery agencies in Montreal. B Dudley observatory has received fresh donations. M. Mali, Belgian Consul, gives $100, and Thomas Suffeen $500. * The Legislatue of Louisiana asauthorized the issue of $70,000 State bonds for the school fund Within a radius of ten miles about the old State House in Boston, therearenear 154 churches of four denominations, having 27,519 members. The measles are very prevalent in Newark, N Two hundred new cases are reported this week. The number of emigrants that arrived at New York last week was 787; during the year, 7,538. 1,368-total 12,155. To the same date last year, 4a The boys' meetings, in Baltimore, have gathered in 150 street urchins, who are taught by members of the Young Men's Christian Association and others. POOR LITTLE THING infant prince of Naples has been baptized, receiving fifty names, among which the first were, Hennaro Maria Immacolata. b The Receivers of the Exchange Bank of Bangor, burned $140,000 of the bills of that institution on Thursday-keepinga heavy fire going in two stoves. ID" The reported sale of the White Sulphur Springs, is without foundation. The gentleman of this city, Mr. Macfarland, mentioned as a purchaser, is trustee for the sale of the property. and has no information of the reported sale.-Richmond Whig. b At Doylestown, Pa., on the 7th inst. a man set fire to his clothes with a spark from his pipe, and he was so badly burned that he died on the 16th. A cruel lad named Kenyon was fined 40s. at estminster, England, for roasting dog alive, by fire. pouring turpentine over him and setting it on SLEIONING.-A gentleman who passed through the Franconia Notch, in New Hampshire, Wednesday, reports six miles of very fair sleighing from House. one mile above the Notch to the Flume b John L. Craig, a lad of fifteen years, while out gunning at Rockland, Me., on 24th ult. aceidentally discharged his gun while loading, the ramrod entering his eye and passing through his head, and sticking SQ fast in the skull that it had to be driven back with a hammer. Notwithcover. standing this he is alive, conscious, and may reUPA Sioux Indian, to show his skill in shooting Chipewas, as he said, fired at two white men who were rowing a boat on Lake Pepin, Minnesota, and the ball passed through one of them, killing him instantly, and entered the breast of the other. inflicting a dangerous wound. The Indian was seized and summarily hung up by the neck to the nearest tree. SOMEHING RARB-We learn fuom the Louisiana papers that at the close of the session of the Legislature of that State a motion was made to allow Mr. S. A Warner, Secretary of the Senate, $500 extra compensation, when that gentleman immediately arose and requested the mover to withdraw it; said that he accepted the office with a knowledge of the salary, and wanted no anore. ID On Saturday evening, a drover from New York city, named Wm. P. MeIntire, put up at Stanwix Hall, Albany. On retiring he placed his bank-book, containing some $2,000, under his head. In the morning he arose and forgot it, went to breakfast, and after an hour or so returned to his room, uncovered the book. but found a package of $20 bills, on the Rhinebeck bank, amounting in all to $800, gone. A HARD STUGGLE FOR Liss-The Livingston (New York) Republican announces the death of John McDonnald, who resided in the town. and who was found on one of the coldescrights last winter lying in the highway nearly frozen to death. At that time both his hands and feet were amputated. Since then his legs have been amputated. This was certainly a remarkable struggle for life. ID" The editor of the Showhegan (Me.) Clarion went down to Augusta about two years since and did not get enough to eat, and he said so in the Clarion, whereupon a libel suit was commeneed against him. The suit falls through because it was proved that the hotel man had no license to keep his tavern; and an unlicensed man in Maine cannot be libeled. ID Near Gardiner, Me., recently, a son of Mr. Walster Stuart coursed on his play-sled upon a weak place ona pond, and went under. Analarm was immediately raised, and a hole was cut some afty feet below where he went in. He floated back to the first hole in the ice, feet foremost, and a young uran seized him by clothes, drew him out, and though apparently lifeless, animation was restored him. IN A telegraph union has been constituted by France, Bardinia, Switzerland and Spain. sweeping innovation has been made, a fresh zone À system decided upon, and a large reduction achieved. Approximating to the system of America, benceforth messages of fifteen words will be allowed to be transmitted between England Spain. and France, Sardinia, Switzerland and Seven years ago there was but little madder sent from Marseilles to the United States; now it is shipped by the cargo, and the demand for It steadily increases. Four years ago neither American flour nor American pork were to be found In the French market, but of late large quantities have been imported This importafion was not produced by the war, for it will tinue to exist, and its fluctuations will depend upon the natural laws of trade. Hoors SAVED HER-As the steamer Commonwealth came alongside the wharf at New London on Friday night, on the passage from Norwich to New York, a lady walked overboard and would have been drowned but for the hoops in her dress, which rendered the same somewhat balloonish, and withal answered the purpose of a more complicated life preserver. The night was be dark, and it was nearly an hour before she could which extricated from her perilous situation, during time the hoops were sufficiently strong to Y. Tribune. buoy her up, and prevent her from sinking.WHERE PEPPERMINT Comes FROM towns in St. Joseph's county, Mich., produce large oil is quantities extracted by of peppermint, from which the 25,000 pounds of the manufacturers oil was there. In 1855, brought in the New York market produced, which per pound From eight to twelve pounds three dollars dueed from an acre of the plant. The is prorequires a good deal of care, but the first next crop years it yields without attention. Afterthe third two year the crop must rotate in order to rest the land The mint is cut in August, and the oil extracted by distillation, filtered through flannel, and put up in tin cans for market