Bank of the Federal Union - Rock Island, IL

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: July 2, 1859
Location: Rock Island, Illinois (41.509, -90.579)

Metadata

Model: gpt-5-mini
Short Digest: 58182fbe

Response Measures

None

Description

Article (The Press and Tribune, 1859-07-08) reports the Bank of the Federal Union at Rock Island was protested for refusing to redeem a small amount of its notes in gold. No explicit run or receivership is reported. I infer a suspension of specie payments (refusal to redeem) occurred around Saturday before publication (1859-07-02). No evidence of permanent closure or receivership; classified as a suspension with presumed later resumption (suspension_reopening).

Events (1)

1. July 2, 1859 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Refusal to redeem notes in gold (specie); bank protested on under $1,000 of notes and would not pay in gold, indicating suspension of specie payments or liquidity problems.
Newspaper Excerpt: The Bank of the Federal Union, at Rock Island, Ill., was, we learn, protested on Saturday last, on less than $1,000 of her notes, which she refused to redeem in gold.
Source: newspapers

Newspaper Articles (1)

1. July 8, 1859 The Press and Tribune Chicago, IL

Article from The Press and Tribune, July 8, 1859

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Article Text

Financial and Commercial. MONETARY. THURSDAY EVENING. July :. There was a better supply of eastern exchange to-day, and rates were a shade easier. The banks generally charged 21 per cent. prem., but outsiders were selling freely at 2t per cent. Currency is plenty. CINCINNATL-The Gazelle of this morning states that the rates of eastern exchange yesterday were 1 and I per cent. prem. Post OFFICE Scrip.-Post office scrip in selling at a heavy discount. The Reporters say that $900 buys a certificate for $1,000, with 6 per cent. interest, which will probably be TCdeemed in seven or eight months at par. Gorernment scrip drawing 6 per cent. should hardly be selling for 90 cents on the dollar. -The bank at Lexington, Mo., keeps a negro employed to ring a bell in front of the bank when a broker appears, to alarm the populace and give notice that there is danger about. -The bank of Metropolis, III., has gone to protest. -The Attorney General of Missouri has decided that the banks of that State can legally redeem in new silver coin to the amount of five dollars on each and every note. -$40,000 of notes of the Corn Exchange Bank, III, went to protest last week, but were redeemed in a day or two thereafter. There was just an even bushel of protested paper, and the amount of gold furnished to redeem It weighed 140 pounds.-Phillips Money R-porter, 7th inst. BADLY OrF.-The Bank of the Federal Union, nt Rock Island, III., was, we learn, protested an Saturday last, on less t.an $1,000 of her notes, which she relused to redeem in gold. Rather an "irredecmable currency" that.-Reporter, 7th inst. CENTRAL BANK, HOLIDAYSECEGU, Ps.-Weare informed that this bank continues to redeem in specie at its counter, and that its suspension was caused by a run upon them for the purpose of breaking them, while their principal officers were at their quarterly meeting, they being Quakers.