State Bank - Lafayette, IN

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: October 2, 1850
Location: Lafayette, Indiana (40.417, -86.875)

Metadata

Model: gpt-5-mini
Short Digest: d6e450552ca7b928

Response Measures

None

Description

Article (Oct 2, 1850) describes repeated large specie withdrawals from Indiana branches (including Lafayette) by agents of Cincinnati/OH banks. No suspension or closing is mentioned; board resolutions describe defensive measures to replenish specie and refuse redemption through hostile Ohio agency.

Events (1)

1. October 2, 1850 Run

Cause: Correspondent
Cause Details: Agents of Cincinnati and Ohio banks were drawing large amounts of specie from the Lafayette branch (interbank/correspondent withdrawals as part of 'bank war').
Measures: Board resolved branches should replenish vaults with specie, refuse redemption at Ohio agency except in specie, and sever hostile agency connections when practicable.
Newspaper Excerpt: some agent of the Cincinnati. and Ohio Banks. has drawn $25,000, or $50,000 in specie from the Lafayette ... Branch of our Bank.
Source: newspapers

Newspaper Articles (1)

1. October 2, 1850 Richmond Palladium Richmond, IN

Article from Richmond Palladium, October 2, 1850

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Article Text

BANK WAR. For some months there has been a savage warfare waged by the Cincinnati. and Ohio Banks, against the Indiana Banks. Scarcely a week passes that we do not see the announcement in our exchanges in this State. that some agent of the Cincinnati Banks. has drawn $25,000, or $50,000 in specie from the Lafayette. South Bend, Fort Wayne. or some other Branch of our Bank. The why or wherefore of this is not easily defined. If the merchants and Bankers of Cincinnati desire to insult our citizens and drive our trade from that city. they can continue their illiberal course. Our Banks can stand any run upon them. but the illiberality of the matter is getting up our blood. It will be seen our State Bank, at its late Session, after a long continued im. position. has made a declaration of war, offensive and detensive. And it is now the duty of every merchant of indiana to come up to the assistance of the Bank. If the Indiana Money our merchants take to Cincinnati in buy goods. is to be immedialy run back on the banks to draw the specie. it is the duty of merchants to go elsewhere to buy goods.---Brookville American. State Bank. The following are some of the resolutions passed at a session of the Board of Directors, at Indianapolis, Aug. 16: "Resolved, That the Ohio Life insurance and Trust Company in assuming the Agency of the Associated Banks of Ohio and Wheeling, occupies a hostile position in regard to the State Bank of and on account of the disty Indiana, Branches this of this Bank it having shall depos- be the ates in that Company to withdraw such deposites within the next thirty days, and, assoon as practicable to sever all connections with her which is not necessary for the convenience of their customers. "Resolved, That the counters of the respective Branches are the only proper, as they are the only legal places for the redemption of their notes, and that in such redemption from the Ohio Agency, or any hostile Institutions specie and nothing else, should be paid. "Resolved, That any arrangement, permanent or temporary, by which any of the Branches of this Bank redeem. or agree to redeem, their notes at the Ohio Agency with Exchange, is inconsistent with the dignity of the Bank, and tends to making her tributary to Cincinnati and her Banking Institutions. ..Resolved, That as long as the Ohio Agency continues its present operations, the Brauches of this Bank should, as far as practicable, replenish their vaults by specie, to be obtained at Cincinnati, and that the importation of coin from the East, for such purpose, is of doubtful expediency.