Reapers Bank - Fairfield, IL

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: November 15, 1859
Location: Fairfield, Illinois (38.379, -88.372)

Metadata

Model: gpt-5-mini
Short Digest: b8ca5196

Response Measures

None

Other: Dispute over redemption of banknotes: bank paid in small coins; obtained injunctions to prevent auditor selling pledged U.S. bonds.

Description

Article (NY Herald, 1859-11-15) describes a large redemption demand by other bankers and the cashier paying out slowly in small coin; injunctions were sought to prevent the auditor selling securities. No suspension, closure, reopening or receivership is reported — classified as a run only (heavy redemptions).

Events (1)

1. November 15, 1859 Run

Cause: Local Banks
Cause Details: Large presentation of Reaper's Bank notes for redemption by two city bankers (other local banks), producing heavy withdrawals and inability to redeem all notes that day.
Measures: Cashier paid out slowly in small silver coin; Reaper's Bank served three injunctions on the Auditor to prevent sale of securities lodged with him.
Newspaper Excerpt: Some time ago two of our city bankers made up packages of five or six hundred dollars each, of the bills of the Reaper's Bank, of Fairfield, Illinois, and sent them down to that institution for redemption. The cashier of the Reaper's Bank commenced paying the bills, one at a time, and in small silver coin, the consequence of which was, that at the close of the day there remained a large quantity of the bills unredeemed.
Source: newspapers

Newspaper Articles (1)

1. November 15, 1859 The New York Herald New York, NY

Article from The New York Herald, November 15, 1859

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Article Text

Balances not on in'st 3,830,380 4,392,249 Inc.. 561,869 Due from banks.... 4,840,846 4,940,716 Гос.. 599,870 Due to banks. 454,057 437,391 Dec.. 16,666 Deposits... 8,290,883 8,771,003 Inc.. 481,120 Circulation 14,911,276 15,438,911 luc.. 527,635 *The decrease of capital is owing to ine omission of Bass River Bank, now being closed up. We read in the Chicago Press:- The statistics of our railways show that the receipts for freight have increased largely over those of last year, while the passenger traffic is considerably less. The fact proves that the people are sending their produce to market, while they stay at home to avoid the expense of travel. This is certainly the dictate of prudence, and let this wise policy be rigidly adhered to till old debts are paid. Mr. Fitch, the supposed manager of the International Bank at Toronto, Canada, which failed some time since, has issued the following card:- The International Bank of Cannda, at Toronto, is now, and was for some time previous to its suspension, under the control of new managers, myself and others having sold out our interest and transferred our stock in the same. I trust that the suspension is but for a few days. Should, however, the time granted by law be suffered to elapse and the bank not resume business, I may then consider it my duty, both to the public and myself, to make a full and explicit statement of the facts in the case. In the meantime I trust the public will suspend judgment. WM. FHCH. We find in the Boston Herald the following paragraph:- Leach, Schwartz and Cross, the parties to the Bonner check forgery, who were arrested in East Boston last week, just as they were about sailing in the English steamer, are wanted in Philadelphia, where they have been successful in committing forgeries upon banks to the amount of eight or nine thousand dollars. A requisition was sent by the Governor of Pennsylvania for the three men, but it did not reach Boston until, upon a hearing of the case, Leach and Schwartz were remanded upon a requisition of Governor Morgan, of New York State, and Cross had been discharged. The parties now in custody have been identified as being parties to the forgeries upon the Philadelphia banks; but Cross who has escaped, is believed to have been the principal in the matter. The earnings of the Cleveland and Mahoning Railroad in October were:- Earnings from all sources. $31,051 91 Operating expenses. 9,469 94 Officially reported net earnings.. $21,581 95 The Chicago Democrat has the following:- Some time ago two of our city bankers made up packages of five or six hundred dollars each, of the bills of the Reaper's Bank, of Fairfield, Illinois, and sent them down to that institution for redemption. The cashier of the Reaper's Bank commenced paying the bills, one at a time, and in small silver coin, the consequence of which was, that at the close of the day there remained a large quantity of the bills unredeemed. These bills were protested, and the auditor applied to, as usual, to sell the securities of the bank lodged in his hands, which consisted of United States bonds. Before he could do so, however, the Reaper's Bank served three injunctions upon the Auditor, obtained from the Superior Court of this city, enjoining him from selling the securities of the bank, on the alleged ground that the protests were illegal. The case thus made up is a very important one, and will, indeed, be made a test issue. If the Court should sustain the injunctions, the banks will hereafter feel themselves legally authorized in delaying all applicants for the redemption of their bills, when presented in any quantity, by paying them one at a time, in five cent pieces, and as slowly as the teller can count them out. On the other hand, should the Court dissolve the injunctions, and declare the protest legal, the Reaper's Bank must at once go into liquidation, and all the other minor banks must prepare themselves for redemption of their currency at sight, or have their business wound up by the Auditor.