4810. Bank of Elgin (Elgin, IL)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
September 14, 1857
Location
Elgin, Illinois (42.037, -88.281)

Metadata

Model
gpt-5-mini
Short Digest
b654715b

Response Measures

None

Description

Multiple September 1857 reports state the Bank of Elgin 'has suspended' (telegraphed Sept. 14) and link the suspension to eastern failures / the embarrassment of Mr. Yelverton (People's Bank of New York). Articles emphasize notes are secured, are still taken on deposit in Chicago, and predict the bank will likely resume operations — so this is a suspension with expectation of reopening and no explicit run reported.

Events (2)
1. September 14, 1857 Suspension
Cause
Correspondent
Cause Details
Suspension attributed to embarrassments and failures in the East, specifically connection with Mr. Yelverton and New York banking troubles (People's Bank of New York).
Newspaper Excerpt
The Bank of Elgin has suspended. Its circulation was small and its notes continue to be received on deposit in this city.
Source
newspapers
2. September 17, 1857 Other
Newspaper Excerpt
The holders of Bank of Elgin notes will lose nothing, or comparatively nothing by the failure. ... The bills of the bank are secured by State stocks, and are taken by all our principal banks as usual. It is thought that the bank will be able to resume operations in a short time.
Source
newspapers

Newspaper Articles (12)
1. September 17, 1857 Marshall County Republican Plymouth, IN
Article from Marshall County Republican, September 17, 1857

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SUMMARY OF LATEST NEWS. In consequence of the crowded state of our columns we are compelled to make a summary of the latest news. The Steamship Baltic bringing Liverpool dates of the 21 arrived at New York on the 14th inst. Extensive preparations were making in England to convey troops to India. Copions details of the news from India are published but they contain no new facts in regard to the progress of the revolt. The English forces in China were preparing to make à demonstration in order to bring the Emperor to terms. The U.S. frigate San Jacinto, and sloops of war Levant and Ports nouth were at Shanghai on the 4th of July. Business dull there. The price of new congou had advanced 70 per cent on the opening price of last season. Spain and Mexico will not have a collision. The Grand Duchy of Luxemburg, it is said, will be a by the King of Holland to Prussia. The Steamship Philadelphia fron California arrived at New Orleans on the 14th, bringing dates from San Francisco to the 20th. Market active. A settler's convention had nominated Stanley for Governor on a mixed ticket. Stephens, Democrat had been elected to Congress from Washington territory. The British Minister at Lima had been murdered by six Peruvians. The Citizens Bank of Smead and, and Collard & Hughes have suspended, says a telegraphic despatch from Cincinnati. The Banking House of Prairo & Nourse suspended payment this morning says a telegraphic despatch dated Washington, Sept 14; but their assets will largely exceed their liabilities. Three or four failures of Dry Goods, Hardware and Manufacturing firms occurred in New York and Philadelphia on the 14th. Mr. Jackson, the custodian of the Jackson gold snuff box, has declined to deliver it, and will return with it to Tennessee. H The Chicago Tribune of the 15th, says: Our money market presents no new features of special significance. The feeling on 'Change yesterday was decidedly better. Wheat was firm at 75e, with sales of 60,000 bushels-closing with sales last night at 76a764 on board next three days andall this week, sellers option, and orders from the East at 76a77 on board. The Bank of Elgin has suspended. Its circulation was small and its notes continue to be received on deposit in this city. The failure is, attributable to railroad operations and excessive breeding of wild cats on the part of its managers, one of whom was Mr. YELVERTON, of New York City, lately suspended. The Fontenelle Bank of Bellevue, Nebraska, was owned chiefly by these gentlemen, and goes down with the rest. The holders of Bank of Elgin notes will lose nothing, or comparatively nothing by the failure.-The telegraph reports the suspension of the Citizen's Bank of SMEAD, COLLARD & HUGHES, Cincinnati. A Providence despatch states that the embarrassment of the Bank of South Country, Rhode Island, are only temporary, and that it is abundantly able to meet all liabilities.

2. September 17, 1857 Kenosha Tribune & Telegraph Kenosha, WI
Article from Kenosha Tribune & Telegraph, September 17, 1857

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FAILURE OF THE BANK OF ELGIN.-The Chicago Tribune says: The bank of Elgin has suspended. Its circulation was small, and its notes continue to be received on deposit in this city. The failure is attributable to railroad operations and excessive breeding in wild cats on the part of its managers, one of whom was Mr. Yelverton, of New York City, lately suspended. The Fontenelle Bank of Bellevue, Nebraska, was owned chiefly by these gentlemen, and goes down with the rest. The holders of Bank of Elgin notes will lose nothing, or comparatively nothing by the failure.

3. September 24, 1857 Quasqueton Guardian Quasqueton, IA
Article from Quasqueton Guardian, September 24, 1857

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HERRON Brothers, bankers, of DuNOT buque, have suspended. The Times says their assets will amount to $175,000, while their liabilities will not reach $100000. The Bank of Elgin, Illinois, has also suspended. Its circulation is said to be small, and its notes continue to be rcceived on deposit in Chicago. The Fontenelle Bank of Bellevue, Nebraska, is affected by this failure.

4. September 24, 1857 The Weekly Pioneer and Democrat Saint Paul, MN
Article from The Weekly Pioneer and Democrat, September 24, 1857

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COMMERCIAL MONETARY AFFAIRS.--The monetary difficulties of the country, which commenced three weeks since in New York, are gradually clear ing up at the starting point; but during the pas week have been darkening the Western sky to some extent. Several bankers in the Western Cities have temporarily suspended, and a number of banks are said to have closed their doors. Among the nearest suspensions. are those of Herron Brothers, of Dubuque. Their liabilities are between $90 and $100,000. and their assets, about $175,000, showing that depositors can lose nothing by them. They will resume business in a few days. The banking house of Carter & Co., Galena, Illinois, has suspended, caused by the failure of the Ohio Trust Company. In this City there is no excitement. and business men all appear to be well prepared for their engagements. Money is scaree, however. and is not to be had, except on the best of paper, and high rates. Exchange on the East is scarce, and commands 11 per cent. premium. Gold commands 2 per cent. on currency. The bankers of this city purchase no money of the various discredited banks, owing to the trouble of sending it home, and the want of money for home business. Some of the banks named below, are no doubt solvent, and holders will Lose nothing. They will only have to wait until the smoke clears away. In the meantime, however, bills on the following named banka embracing all the lately discredited ones, with a few of the older failures, are not current in this city: Tiverton Bank, MountVernon Bank. Farmers' Bank of Wickford. Bank of South County... Rhode Island. Warren County Bank. Bank of Middletown, Farmers' & Drovers' Bank--Pennsylvania. Wooster Bank. Bank of North America- -Connecticut. Hollister Bank of Buffalo. Sacket's Harbor Bank, Ontario Bank, Bank of Orleans, Huguenot Bank, Reciprocity Bank of Buffalo, Oliver Lee & Co.'s Bank, Buffalo, Chatauqui County Bank-New York. Bergin County Bank, Bank of New Jersey, Bank of America, Trenton - New Jersey. Kanawha Bank-Virginia. Warren County Bank, Honesdale Bank-Pennsylvania. Miami Valley Bank. Daytou, Norwalk Bank. Norwalk, Seneca County Bank, Tiffen--Ohio. Bank of Commerce.-Georgetown, D.C. Citizens' Bank--Gosport, Indiana. The Citizen's Bank of Gosport, is an individual concern, and the owner may be able and willing to redeem all his money, but it is not secured according to the Indiana law, and those who take it run their OWR risks. It is taken by some, but not generally current. Of Nebraska money, a number of dealers in the city have been taking it, while with others it won'tgo. It is not by any means a current money, and our country readers can govern themselves accordingly. The following Illinois and Wisconsin banks were down for a few days. but our brokers are now receiving the notes of all of them on deposit: Bank of Elgin, Bank of Aurora, Bank of Southern Illinois, Southern Bank of Illinois, Bank of Waperville, State Bank of Illinois-II. linois. Rock River Bank, Reloit, State Bank of Wisconsin, Farmers' Bank of Hudson-Wisconsin.

5. September 26, 1857 The Weekly Minnesotian Saint Paul, MN
Article from The Weekly Minnesotian, September 26, 1857

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FAILURE OF THE BANK OF ELGIN.-The Chicago Tribune, of Tuesday says : The Bank of Elgin has suspended. Its circulation was small and i's notes continue to be received in deposit in this city. The failure is attributable to railroad operations and excessive breeding in wild cats on the part of its managers, one of whom was Mr. Velverton, of New Pork city, larely suspended. The Fontennelle Bank of Bellevue, Nebraska, was owned chiefly by these gentlemen, and goes down with the rest. The holders of Bank of Elgm notes will lose nothing by the failure.

6. September 26, 1857 The Council Bluffs Nonpareil Council Bluffs, IA
Article from The Council Bluffs Nonpareil, September 26, 1857

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The Elgin Bank. Our financial circles were not a little mortified to learn yesterday that the Bank of Elgin had been forced to suspend. It is believed the bank is mixed up with the suspension of Mr. Yelverton, the President of the People's Bank of New York. It is, therefore, owing to embarrassments at the East, that the bank was forced to suspend. The bills of the bank are secured by State stocks, and are taken by all our principal banks as usual. There is no cause therefore any excitement, and we should not be surprised if the bank were enabled in a few days to go on as usual. Mr. Town, its President, and one of its principal owners, is a most excellent and reliable man, and all who know him have the fullest confidence that he will act honestly and wisely in this and every other emergency.-Chicago Democrat. A new weekly has made its appearance at Superior. The first number was issued Aug. 27, under the title of the Superior Republican. Alanson P. Tyler is the editor. His salutatory is short and pithy. "To OUR READERS.-We came here to mind everybody's business, attend to our own, and make money. We know we are able to do the first, hope we are the second, and are bound to do the last. Yours, Superiorly, A.P. TYLER.

7. September 26, 1857 The Ottawa Free Trader Ottawa, IL
Article from The Ottawa Free Trader, September 26, 1857

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SUSPENSION OF THE BANK OF ELGIN.-This institution, located at Elgin, in Kane county, has closed its doors, being in some way involved by the Eastern failures. The bills of the bank are secured by State Stocks, and are taken by all the principal banks as usual. It is thought that the bank will be able to resume operations in a short time.

8. September 28, 1857 The Davenport Daily Gazette Davenport, IA
Article from The Davenport Daily Gazette, September 28, 1857

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Diecred Manko. The following is a corrected list to date, of recent euepended and discredited banks Nebracks money has been thrown out by our bro here. except the Bank of Florence Bank of the Capitol, Indianapolis, Indiana, e. . do Central Hank, do do Bank of Elgin. III as, email circulation Mechanics Banking Association N IY .. Ohio Life and Truel company, don't leetle notes. Bank of Kanewha, Va Reciprocity Bank Buffalo, N.Y now bank . . Hollister Bank, Buffalo N Y. . . Warren County Bank Pa. Bank of Middletown, Pa. Honeedale Bank. Pa Bank of North America, Conn. Ontario Bank. Utica, N.Y. Fort Plain Bank . . Farmers' Bank of Saratoga N Yee Farmers' and Manufacturere Bank Poughteepsie N Y Farmers' Bank Wickford R I M Vernon Bank, Providence R I Tiverton Bank, Fall River R I Wooster Bank, Dembury Conn. Borgen County Bank, N. Ellaworth Bank, Maine. Bank of the South County. R I Sackett's Harbor Bank N Y. This Bank which was an oid liner. was lately merged into the Recipro city Bank at Buffalo: but few of the notes of either were in circulation in the west. Exeter Bank N H South Royalton Bank, Vt. Chemung County Bank, Horseheads N Y .. Geneca County Bank, Ohio Oliver Lee & Co.'s Bank, Buffalo, N Y reported failed, e.e. Ningara River Bank Tonawanda N Y reported failed, Hancock Bank, Maine Maratime Bank, Maine America Bank, Trenton N J. Bank of New Jersey, New Brunewick; N J Huguenot Bank New Platz N Y . . Bank of South County, Wakefield R I Rock River Bank, Reloit, Wisconein . . Farmers Bank Hudeon. Wis . e. Bank of Colehester, Conn Western Bank Lockport N. Y Niagara Cocunty Bank, Lockport N Y Note means secured by Statestocks Our eubecribere ought to lose nothing by the euepension of these banks The others have but little circule tidn in the west Our readers are cautioned against exercificing notes of occured banks, as some of them will probably be reinstated, while those finally compelled to close up, in the ordinery couree of things, will pay a large proportion of their debt. -- Chicago Tribune 24th To these we may add the following Medius Hank, Medina. N Y Hank of Hallowell, Maine Girard Bank Philadelphia. Bank of Philadelphia Bank of Commerce, Philadelphia

9. October 10, 1857 The Ottawa Free Trader Ottawa, IL
Article from The Ottawa Free Trader, October 10, 1857

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ILLINOIS BANKS.-There are no Illinois Banks whose bills are not current at our banks and among our business men. The brokers, for purposes of speculation, have undertaken to decry several Illinois banks, but people should not, as yet, allow theinselves to be shaved by them. The Belleville Bank and Bank of Elgin are the only banks of this state hat have suspended, but their circulation is abundantly secured, and no one need lose a dollar on their bills. We shall be glad to take the paper of any of the Illinois banks for amount that is due us.

10. October 15, 1857 The Potter Journal Coudersport, PA
Article from The Potter Journal, October 15, 1857

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We print in another column the Message of Gevernor Pollock to the Special Session of the Legislature, in regard to the Monetary troubles. We also give the telegraphic report of the latest action of that body in regard to the matter, It will be seen that the Legislature is disposed to adopt the Relief Measures suggested in the Governor's address, though the House is very backward in its action. The following is a brief summary of the main points of the proposed law to legalize the suspension of the Pennsylvania Banks: "The special correspondent of the NORTH AMERICAN states that the Comunittee of 13 appointed by the House, have agreed upon a relief bill, as follows -Legalize suspension until the 1st of March, 1858-extend stay of execution six months longer than is now allowed by law-compel all the Banks to receive the notes of other banks; no bank shall have power to discredit the notes of other banks, save upon a statement sworn to by the President and Cashier, and forwarded to the Governor, and filed in the Secretary's office; bank notes are to be receivable in payment for revenue by tax collectors; banks must redeem in specie their notes when paid for tolls or taxes." Should the above bill pass, it will relieve tho Banks from their presentstraight, but we think will ultim ately result to the great advantage of the New York bankers, as they will doubtless purchase the notes at a heavy discount from face, paying in their own currency; and at the time of the legalized suspension of the banks will present a large quantity of their notes for redemption in specie, thus transfering a large proportion of the specie capital of Pennsylvania to New York. The rivalry and jealousy existing between the cities of Philadelphia and New York will add much to the discomfiture of the Pennsylvania Banks in general. Business throughout the country is prostrated, and a general crash seems to be inevitable. When such houses as Harper & Brothers, Genin, Bowen, McNamee & Co., Choteau & Co., are obliged to suspend, even temporarily, there is evidentlyreal cause tofear a complete prostration of American business energy. It shows at once that a large amount of false capital is in use with us, and that when a business concern of any respectability fails, it is felt in business circles generally. The worst feature of this crisis is the great destitution it will produce among the working classes of the cities. Thou. sands are thrown out of employment, in the face of a probably severe winter, without 2 dollar to rely upon, and a chance of employment soon, beyond a possibility. Among the most recent bank failures WC notice those of the Grocer's Bank of New York, Pratt Bank of Buffalo and East River Bank New York, and some 12 other New York City banks have suspended. Western Banks are not yet much affected by the failures-indeed we do not see how they can be, as they have all the specie in their control. The following is a list of discredited Illinois Banks Bellville Bank, Bank of Chester, Stock Seenrity Bank, Corn Exchange Bank, Bank of Pike County, Bank of Elgin, The IIlinois Central Railroad has suspended payment. The N. Y. & Erie Railroad has also suspended, and the Directors call upon the Stockholders for aid to prevent the road from being sold. The State of New York has also failed to meet its estimates for

11. October 24, 1857 The Tipton Advertiser Tipton, IA
Article from The Tipton Advertiser, October 24, 1857

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We comply with the request of our "subscriber" so far as we have the data on hand. We may not have included all the failures, though we think the list is nearly complete. A few of those given failed previously to the suspension of the Ohio Life and Trust Company. The list embraces both suspended and discredited banks. It would be well for subscribers generally to cut out and preserve the list for daily reference : The following is a corrected list, to date, of recent suspended and discredited banks: Nebraska money has been thrown out by our brokers, exceping the Bank of Florence. Bank of the Capitol, Indianapolis, Ind., S.S. Central Bank, Indianopolis. Ind. S. S. Bank of Elgin, III., S, S., small circulation. Mechanics' Banking Association, N.Y., S. S. Ohio Life Trust Co., don't issue notes, Bank of Kanawha, Va. Reciprocity Bank Buffalo, N. Y., new Bank, S. S. Hollister Bank, Buffalo N. Y., S.S. Warren County Bank, Penn. Arcade Bank, Providence, R. I. Bank of Middletown, Penn. Honesdale Bank, Penn, Bank of North America, Conn. Ontario Bank Utica, N.Y. Port Plain Bank, S. S. Farmers' Bank of Saratoga Co., N. Y., S.S. Farmers' and Manufacturers' Bank Poughkeepsie; N. Y. Farmers' Bank, Wickford, R. I. Mt. Vernon Bank, Providence, R. I. Liverton Bank, Fall River, R. I. Wooster Bank, Danbury, Conn. Bergen County Bank, N. J. Ellsworth Bank Maine. Bank of South County, R. I. Sackett's Harbor Bank, N. Y. This Bank which was an old-I'ner was lately merged into the Recipriocity Bank at Buffalo, but few of the notes of either are in circulation in the west. Exeter Bank, N. H. South Royaltion Bank' Vt. Chemung County Bank, Horse Heads, N. Y., S. S. Seneca County bank, Ohio. Oliver Lee & Co., Bank, N. Y.-reported failed, S. S. People's Bank, N. Y. reported failed. Niagara River Bank, Tonawanda, N. Y., reported failed, S.S. Hammock Bank, Maine. Maratime Bank, Maine. America Bank, Trenton, N. J. Bank of New Jersey, New Brunswick, N.J. Huguenot of Bank, New Paltz, N. Y., S. S. Bank of South County, Wakefield, R. I. Rock River Bank, Belott, Wis.. S. S. Farmers' Bank Hudson, Wis., S. S. Bank of Colchester, Conn. Niagara Co., Bank, Lockport, N. Y. NOTE.-"S. S." means secured by state stocks. Our subscribers ought to lose nothing by the suspension of these The others have but little circulation in the west. Several, it will be noticed, are secured by stocks. Our subscribers are cautioned against sacrificing notes of this class, as some of them will probably be reinstated; while those finally compelled to wind up, in the ordinary course of things, will pay a large proportion of their debts. The issue of discredited banks, without stock security are york uncertain

12. October 24, 1857 The Ottawa Free Trader Ottawa, IL
Article from The Ottawa Free Trader, October 24, 1857

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CHICAGO MONEY MARKET.-The money market remains unchanged. Eastern exchange is selling at 5 per cent., and difficult to be had The banks, as a general thing, are not discounting. Gold is scarce and in demand. The use of shop-keeper's checks is on the incr ase. They are issued for small amounts only. There are some rumors in the street in regard to some of the Illinois banks which it may be well to correct. The Belleville Bank was not a bank of issue. All the notes of the Stock Security bank are redeemed in gold at a small discount, by the State Auditor, on presentation. The Bank of Elgin and the Bank of Belleville have suspended. All the other Illinois banks which have been hitherto taken are perfectly good.-Times, Oct. 22d.