5269. Bank of Shawneetown (Shawneetown, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 1, 1837*
Location
Shawneetown, Illinois (37.713, -88.187)

Metadata

Model
gpt-5-mini
Short Digest
1f436b4a

Response Measures

None

Description

Sources report the Bank of Shawneetown suspended specie payments during the Panic of 1837, later resumed specie payments (reported to resume 1842-06-15), and was subsequently put into liquidation/charter repealed (state arrangement reported in 1843). No explicit depositor run on this specific bank is described in the articles; sequence is a suspension (1837) followed ultimately by closure/liquidation.

Events (3)
1. January 1, 1837* Suspension
Cause
Macro News
Cause Details
Panic of 1837 / widespread national financial crisis causing suspension of specie payments in Illinois banks.
Newspaper Excerpt
the banks of Illinois suspended specie-payments. ... The panic of 1837 occurred, and the banks of Illinois suspended specie-payments.
Source
newspapers
2. June 15, 1842 Reopening
Newspaper Excerpt
The Bank of Illinois at Shawnee town is to resume specie payments on the 15th instant, ... (New York Herald, 1842-06-12).
Source
newspapers
3. March 3, 1843 Other
Newspaper Excerpt
The State Government of Illinois has made the same arrangement with the Bank at Shawneetown ... The Bank is to go into liquidation, the charter to be repealed, the State Bonds cancelled and the specie paid out pro rata. (New-York Daily Tribune, 1843-03-03).
Source
newspapers

Newspaper Articles (4)
1. April 29, 1842 The New York Herald New York, NY
Article from The New York Herald, April 29, 1842

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Article Text

good, rates elosed as follows foreign exchange :- DeeD bills) 107 107 and Exchange on London, (city bills) Do Do on on Amsterdam, a 35 on Hamburg. the Do Do Louisville on Bremen, Journal 75 & 76 says that Clarksville, the Cashier Tenn, of has The of the Planters' Bank, funds at of the bank. branch appropriated We mentioned $20,000 recently of the that the The Real trustees Estate, named of Arkan are A C. Herris. saw, had made an assignment. 8. Conway, H. Samuel Davies, Helena as follows Principal Columbia office-A. L. Bis. office-H S.C. C. Roane, Faulkner, Silas Craig. Preston,jr. Washington office- Buren coe, W Moore, John Hill, Enoch J. Smith. Van Clark. D.T. Witter, George Robert S. Gibson, L. N an with office-John Drennen, Illinois, has which made $400, ar retired The Bank of Shawneetewn, the Bank of Missouri, previously by to an 000 rangement of its circulation will On the be 26th Feb last the circula alluded effort was at resumption. $1,300,000. Including the which arrangement is scarcely more tion it will be reduced to $600,000, hand at that time. est to, specie reported on discredit of the than One the of the greatest causes the of the scandalous conduct the ern state stocks, has their been negotiation. They the have, requisite for those in charge been of not only grossly to deficient a proper in discharge of of most part, and knowledge necessary been imbued with a recklees of particularly their skill duties, peculation but they that have has made them of the banks. easy prey Ohio havefallen spirit designing Illinois, men, but Arkanzas more and machinations Pennsy Ivania, of chartered the unscrupuleus United States, like The the pillars of the state of boundless pulled down fall. Ohio, although by the Indiana, victims institutions. son, to in the Bank of the of ruin credit, and Sam influ per re ished sources, itself was banks. decoyed The to agents the verge of American the State of Trust Arkansas Cominto the hands of the result was ruin. That this city and the Morris Canal ence fell pany tion, of in in connection its with the of North ruin to the State Company, of credit Indiana institu- has of the main instrument also destroyed the investigatThe been Morris Canal Bank of the late senatorial a series the and with Michigan. committee The of report the State of incredible. Indiana developes The committee board they of ing misconduct that is board almost of internal improvement. bring seto commence most of the members of of law, that and of interests; assumption they of Madison against rious charges of violation the injury of the state and Indianapolit power,greatly to the officers of of speculation and of fraud the then pass and develope disgraceful. scenes The officers for Railroad, the highest degree into a" Bon Company sale of of evading between road in organized themselves the in relation the to the fund comthe purpose bonds, and the transactions and this bond company of were the the missioners, Stapp & Scott; individuals at the expense materials as to enrich the spikes and other such By these people iron at double price, paying in State. for the road were purchased operations the state lost large were bonds par. By their the most barefaced transactions man while sums. But perhaps commissioner, Dr. Coe. This stockthose of the fund was also one of the Staten largest Island and Island fund holders commissioner in the Morris Canal also Bank, a director in the Staten has Whaling Bank. Company, By two and of these institutions the State lost the following sums $1,705,769 $0,000 Staten Morris Island Canal Whaling Co $1,785,769 a in The committee the Morris report Canal that at Dr. the Coe follo became wing dates, and for holder the amounts annexed 70 shares. Nov. and Dec. 1836 298 July, 1937 40 August, 1937 408 Total shares it is Now 1940. matter and reorganized These he held well until known, Oct. 19, that in the spring and and large sum at 50 of history, of 1837 the Morris Canal issued was to certain leading men street to directors give quantities mer of its stock cents was on the dollar, in order sufficient to procure in Wall the use of their names to enable 28 it to negotiate fall its due bonds in credit to the to company the amount of $1,261,777, became which stockholder in Europe that Dr. Cee Canal Company 1846. It seema now also that the Morris At the date the same in time- 1836 $899,824 of Indiana bonds. owed the State of received its report in Feb. 1937 1938 the the company amount was increased appears Dr to $684,890, and in Feb. during which period it at the same $733,138 or $148,258, 339 shares of stock, probably cents on the Coe rate received as the other influential" make an men, extract viz from 50 the report of dollar. We may now committee, as follows numerous the investigating obtained an account of Canal "The cemmittee received also by Dr. Coe upon from their the Morris face, evince benefactions Banking Company, which, his duties as fund will commis make anything and but a just exposition regard to of the facts alone sioner, evident. as mere with a commission of five per cent. $20.000 upon 11,200 Heis credited of $400,000, (supposed saleo stocks). 280 bonds. All his stock His sale half of profits 398 shares on in the were Morris not worth Canal Bank more about 33 680 than at par 15 which cents on at the the dollar, time making a difference 39 000 Also of his note for about $103,880 commisno sions Here and we Company profits have and evident alone benefits of that from Dr. than Coe $100,000. Morris received Canal It needs and Banking comment. that the Morris Canal stock error is put but down did Here it seen Coe stated that that item we have the that shown at par. Dr the error existed. price of Here par. not state wherein stock was given him at the there same is direct to the others, 50 cents Morris instead Canal Company of gave Indiana a bonus in evidence that the of the State of of $97,000 to the commissioner of the credits that order to obtain from him $1,705,769 paid. These identicalstocks State which havenever been those pledged by the U.S. Bank thus obtained are part of the Morris Canal being but for its loans in London- Bank. "cat'spaw" for the National of negotiating State credits, Such has been the process result. The disasters, ruin is the inevitable corruptions, emaand utter arising out of these horrible not redound to the disnating however, from Philadelphia, state, should any more than an individual disgrace credit of the suffering by his servent should bear the are of who the is theft. robbed The people and the discoveries government made, now and and indignant at the Patient in astonished not the extent of the disasters. point out the as yet know cool reflection will FOOD will finc's vestigation and there are no fears that the people integrity remelie1, from and the dictates of justice government and moral adds greatly to The position of which the fed surround ral the states at this! bank junc the difficulties extended to the delinquent bor ture. It's indulgence in their iniquitous suspension, manifest the to of the dietrict arowe !and the disposition instead rowing policy quackery and paper juggles, resert to common sense G resorting to the only serves to distract the G to py the divert them from the only of money financial debts, method of direct raising course taxa state the by D Io which legislators, their and honor to may be redeemed, viz by tion an payment.

2. June 12, 1842 The New York Herald New York, NY
Article from The New York Herald, June 12, 1842

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MONEY MARKET. Saturday, June 11-6 P. M. At the Stock Board this morning sales were moderate in extent, and prices in some instances gave way, Harlem declined 1/2 per cent ; Stonington Mohawk Railroad Patterson improved Long Island Railroad 1. The Bank of Illinois at Shawnee town is to resume specie payments on the 15th instant, and unless the State Bank is able to resume on the same day, her charter becomes forfeited according to law. The policy of those who control that institution in Wall street and elsewhere has been of late to speculate in their own paper, that is,by depreciating the paper as much as possible,buy it in at low prices themselves, and thus pay their debts with a small per centage. This one of the tricks of banking that is supposed to be for the benefit of the people. The State of Michigan,it will be remembered, issued in violation of the Constitution, State paper called "Scrip," to circulate as money. The issuers of this fraudulent paper were well aware that it would soon depreciate in the market. They also passed a law at the same time regulating the business of brokers, under heavy penalties. It is now charged that the brokers have caused the depreciation of the illegal State paper money, because they buy it for what it is worth nd they endeavor to throw upon it those who suffer the am of the transaction. If the State had honestly paid its ebts in the first instance, there would have been-no illege paper to depreciate. A large sale of Re yoad Bonds is to take place at Philadelphia, on the 22nd Instan consisting of the following Redeemable £113,000 Phila., Wilm. and Balt. R. R. bonds, 6 percent, 1855 1850 £92,500 " and Reading Rail Road bonds, £205,500 These Bonds the Reading Railroad are convertible into company shares, at the option of the holder, at any time before 1850. The interest of both descriptions payaple semi-annually in London. We extract the following from the New York Daily Express of this morning :The Committee of ways and Means propose to repeal the Land Distribution Law, which is the great peculiarity of their project. On this will arise the great contest in Congress, to be dignified with much more importance as a revenuematter just now than it deserves, inasmuch as the revenues for lands are not now of sufficient importance to af. fordany great income to the Treasury, or to materially effect what should be the proposed rate offduties upon any articles. The two lines we have italicised contain an instance of the flippant folly withwhich commercial matters are treated in the Wall street papers. The editor who conducts that part of the paper, with the most self sufficient gravity, proceeds to discuss a question of which his statement proves his entire and surprising ignorance. The 25th section of the bill of the Committee of Ways and Means is as follows :Sec. 25. And be it further enacted, That the proviso to the sixth section of the act entitled An act to appropriate the proceeds of the sales of the public lands, and to grant pre-emption rights," approved September fourth, eighteen hundred and forty-one, be, and the same is hereby, repealed. The following is the proviso to the 6th section of the land bill:Provided, That if, at any time during the existence of this act, there shall be an imposition of duties on imports inconsistent with the provisions of the act of March second. one thousand eight hundred and thirty-three, entitled " An act to modify the act of the fourteenth of July, onethousand eight hundred and thirty-two, and all other acts imposing duties on imports," and beyond the rate of duty fine ! by that act, to wit, twenty per cent on the value of SUCH imports, or any of them, then the distribution provided in this act sha!l be suspended, and shall so continue until this cause of its suspension shall be removed; and when removed, if not prevented by other provisions of this act, such distribution shall be resumed. The tariff bill of the Committee of Ways and Means raises the duties on imports to an average of 35 per cent, instead of 20, consequently the land bill would be inoperative by its own proviso, but with the trickery, vacillation, and deception," which always marks the legislation ema. nating from " Harry del occidente" that proviso having been iserte.1 in the original bill to secure its passage is now to be repealed by a clause in the law, the prospective creation of which was the cause of the insertion. It is such disgraceful mountebank legislation, that destroys the credit of the country at home, and its dignity and the respect due to tabroad. So tortuous is the course of our public men, that their partisans never know the nature of their measures. To be sure the editor above quoted was never remarkable for any degree of shrewdness, nor is it necessary that he should be possessed of it. The party press for a quid pro quo agree to support a certain politician, right or wrong, and it is therefore not necessary for them to scrutinise his principles. The New York Courier and Enquirer has at the head of its column the following motto: " Principles not men." What the signification of these words may be, probably the worthy editor has not ascer. tained. He possibly thinks it some missile used in the regular army. Accordingly, we find his editorial columns uniformly supporting the broadest principles of free trade as those best likely to promote the welfare of the country, and at the same time that man who is the rankest advocate for high and oppressive duties on foreign commerce, is supported for the chief magistracy of the nation. Now, whether is the principle or the man" that the redoubtable editor contends for, may puzzle the simple minded. It is such leaky vessels as these that keep the mercantile community in constant suspense in regard to the action of Congress upon commercial matters, and which stagnates trade, and paralyses the whole business of the country. Sales at the Stock Exchange. S1000 NYork 6's, 1362. 911 100 shares Harl. RR cash 161 $1000 do 53/2's 1851, 881 50 do do cash 163 do $1300 Ohio 6's, 1860, cash 801 45 do

3. March 3, 1843 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, March 3, 1843

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fell prices of State Securities were not susta ned. State 51s off 1 per cent; 6s 2; 5s 1; Ohio declined to 631, but recovered to 69,a fall of 1 per ct Kentucky fell off 3 per ct. The Government Loan sold at 41 prem; Harlem fell off 1/2 per ct; Paterson 3; Stenington 4, Long Island 1; Utica and Schenectady went up 1. Sterling is 5 a 6, and Francs 5 45 a 5 42}, both heavy. Sales good tobacco bills, endorsed by Bank of Virginia, were made at 31. The rate on Alabama to-day is 92 a 23 discount. Letters from Mobile give the rate on N York at 22 for sight bills. Considerable sensation was created in the street by the announcement of the failure of the Commercial Bank of N Orleans. The following letter is from a highly intellgent meichant Co respondence of The New-York Tribune. NEW-ORLEANS, Feb. 21, 1843 The Commercial B nk did not open her doors this morn ing. The notes were refused by the brokers at better than 35 to 40 per cent discount They will probably settle to 25 percent discount. The circulation is not, it it supposed, much over $100,000. This event has produced a run on all the remaining specie-paying Banks, but nothing serious is appreheaded, as it is confined to small sums held by the lower classes. There has been a considerable drain ON all the Banks for some time past, but nothing like a panic. The coie was needed for Mobile, &c. The Canal Bank, which is considered the next weakest after the Commercial, has but a few notes out, and these she has ample specie in her vaults to redeein. Exchange is without much change. On New-York no large amount of 80 day bills could be had at discount. Sterling i, 3 a 31 for leading bills, down to 14 a 2. About $190,000 in specie arrived here yesterday from Tampico, mostly for the purchase of Sterling. Yours, &c. Specie continues to arrive South. About $175,000 have gone iorward to N Orleans within a couple of days, and a considerable amount is going to Mobile. Spanish dollars are very scarce, and wanted for the East Indies at 31 a 4 premium. Mexican 1/4 prem. The following Stocks were sold at Boston yesterday :10 shares Eastern Railroad 941; 20 do Boston & Prov. do 97j; 5 do Boston & Maine do 883; 2 do Western do 48; 5 do Atlantic Bank, 86; 10 do City Bank 851; 5 do People's Bank 45; do Tremont Bank 87); 10 do Neponset Bank, 71; 10 do Phenix Bank 60 cts per share. The Lewis County Bauk is said to have reduced her circulation to $10,000. The Montgomery County Bank has appointed the Albany City Bank as its agent for the redemption of its circulating notes. In the Pennsylvania Legislature, the House non-concurred to the Senate's amendments to the bill to pay the interest on the State debt by the issue of new scrip, and the two branches are at issue. The Beston Courier says, " Money continues abundant, and domestic exchanges are very regular, exception Mobile, of which no one can give any quotations. There seems o be a disposition in the Sevate of this State to cripple the banks, by refusing them favors which have been granted in former Legislatures without much opposition. The chairman of the committee on banks and banking stands almost alone, in favor of allowing certain banks which have applied for that privilege, leave to reduce their capital stock, although be is himsel: no friend to corporations, and says that he does betown a dollar of bank stock. On Monday the bill to grant this favor to the Ocean Bank of Newburyport was rejected by a decided majority; and yesterday similar bills, respecting the Merchants' Bank of Newbury po and the Fail River Bank, met the same late. Exchange on New-York is scarce, in censequence ot the large amount of specie held in this city on account of New-York and other southern cities." The State Government of Illinois has made the Fame arrangement with the Bank at Shawneetown BS was made with the State Bank. The Bank is to go into liquidation, the charter to be repealed, the State Bonds cancelle and the specie paid out pro rata. At Savaunah the bank buying rate for Sterling Bills is without cha nge. 4 per cent prem. Domestic Exchanges have experienced a slight improvement. The Banks buy 30 days Bills at 1 per cent. off, and 60 days at 11 per cent. off and continue to check on Norther cities at par a & per C1. prem. In discussing the Illinois Revenue Bill, the St. Louis Re publican says: A most spirited debate ensued upon an amendment offered by Dolans, of Franklin, suspending unthe year 1845 the ten per cent tax levied for the purpose of paying interes' upon our State debt, and upon the sole and express faith of which law, Macalist & Stebbins loaned the money to the present Fund Commissioner, which enabl him to pay the July interest of 1841. Those in fa vor of suspension, or, to use more appropriate and proper language, the repudiation of this lebt, were Messrs. Koer ner, McClernand and Kuykeadall tho. opposing it were Messrs. Davis of Bo.d, Logan, Browning, and Arnold.These latter named gentlemen denounced the proposition in uninea ured terms, and demonstrated beyond controversy that a more glaring and unblushing act of repudiation, or gross injustice toward Macalister & Stebbias, could not well perpetrated by this Legislature than the adoption of this amendment. The House adjourned without taking the question, but I entertaio no reasouable doubt but what they will tionally adopt the repudiation amendment." The following statement of duties on American produce is at Liverpool will be ol interest. Five per ccut. extra charged on the undermentioned duties stated, bat provisions for export or ship stores pay no duty. Bacon and barns in pickle pay pork duty Barrel is 200 lbs; tierce is 300 lbs quarter is 8 busheis cwt is 112 lbs:

4. March 17, 1879 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, March 17, 1879

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STATE-BANKING IN ILLINOIS. An Old Story Retold by "Gath." Chrrespondence Cincinnati Enquirer. NEW YORK, March 13.-In this letter I shall give the history of State-banking Insome prountnent States neighborly to Ohio. Illinois has had n long experience with banks. The Industrious history of the State by Davidson and Stuve goes minutely into banking questions. The Drst Legislature met at Kaskaskin, composed of twelve members, who all boarded with one family and lodged In one room. Money was very scaree, and the common currency was raceoon and decrskins. In Imitation of the financial aspirations of Ohio and Kentucky, the young Legislature authorized several banks, as at Shawneetown, Edwardsville, and Kaskaskia, -all banks of issue. In addition, the Legislature forced the circulation of these banks by postponing the collection of debts unless the creditor would receive their notes. The Government deposited its receipts for public lands with the Edwardsville Bank, which stole 854,000 of it, and, notwithstanding a judgment, the sum was never collected. Money became flush and counterfelts green plentiful. A band of Regulators' was nasembled to punish counterfeiters. In 1817 the celebrated City of Calro, afterward commemorated by Dickens, was chartered by the Legisinture, with a bank of a capital of $200,000, secured by 'water-lots.' The bank soon expirect. In 1820 banks started all around Illinois; wold and silver were driven out of circulation by the wild-cat currency. A monster bank WAS created by the Legislature, with a capital of $2.000,000, but not a dollar of stock was ever subscribed for. The immigrants came into the State penniless, like the people among whom they settled: paper towns dotted the map everywhere, but would not grow. A second State bank was chartered and located at Vandalla, with four branches, and Its notes were made receivable for all taxes, costs, fees, and sularies: debtors were allowed three years stay by replevy unless the creditor took the bank's notes. People were encouraged to borrow money on their estate, and every politician got as much as he wanted. Nobody paid the bank anything back. and the State Legislature gravely inemoralized Congress to let their local paper. be used to buy public lands. The paper dopreciated to 25 cents on the dollar, and nonresidents paid all their taxes ID it. The State lost $500,000 by the bank experiment. In 1834 It was proposed to introduce slaves, 80 as to match the banks with something as discreditable socially. In 1818, when the State Government went into operation, its revenue was little more thau $7,000; a Fession of th Legislature cost $15,000. After Andrew Jack son crusbed the United States Bank, Gov. Dun can countenanced a new State Bank, with Biz branches and a capital of $1,500,000. The Dem ocrats got the Idea that Gen. Jackson's oppost tion to the Federal Bank Implied his favor of local banks. The stock was engerly taken, and ran up to a premium of 18 per cent. Immediately a reckless system of internal Improvements was entered upon; the State Banks were authorized to increase their stocks, and also the number of their branches. Most of the bankofficers were Whigs, and a political strife arose over those institutions. The Secretary of the Treasury was applied to to make the State Bank a Government depository. but political outagomism prevented It. Suddenly the panic of 1837 occurred, and the banks of Illinots suspended specie-payments. A special session of the Legislature legalized the -suspensions, and Intermal Improvements went on. These banks contained all the deposits of the State, which was now virtually bankrupt. Abraham Lineola was a member of the Legislature at that period. In 1842 the huge Institution falled, with a clrculation of $3,000,000. The Bank of Shawneetown, which had loaned the State $80,000 to build the State Capitol nt Springfield, was equally involved. A company of sharpers then bought the bank charter and speculated in State scrlp. A railroad system was then devised, to cost $10,000,000, but the liability ultimately amounted to about $20,000,000. In 1S40 the whole NVBtem of public imprevements collapsed. By the sale of several millions of the State bonds In New York the free banking-system of that State was introduced into Illinois, and mady wild-eat banks obtained credit. Most of this money was to be spent to build n canal. By the collapso of the improvement system the State Was left with a debt of more than $14,000,000. Indiana, in the same year, 1837, had disposed of $11,000.000 of her bonds to build only forty miles of rullroad and a few pieces of canal and turnpike. ran up her debt about the same time to $10,000,000, and before the Civil War Missouri had more than $20,000,000 debt. or the debt of Illinois, more than $0,000,000 was on account of the worthless banks. There was at annual deficit In the Illinois fluances of $830,000 and the State credit was exhausted. The peo ple were indebted to the merchants, the mer chants to the banks, and the banks owed every body who carried one of their rags in his pocket State bonds declined in the market to 14 cents on the dollar, and In 1843 the two leading banks went out of existence with $4,500,000 circulation. Utter dearth and stagnation in every kind of business prevailed. The cry broke out for repudiation. Gov. Ford afterward said: " It Is my solemn belief that, when I came into office, I had the Dower to make Illinois n repudiating State. The pollticlans on neither side would never have dared to risk their popularity by defending an increase of taxes. Some of the counties refused to pay taxes. In 1843 there WITH not over $200,000 to $300,000 m good money In the pockets of the whole people of Illinois. Illinois resuscitated herself by completing her canal, which brought Immigration into the State and encouraged the public character. The State compromised with the banks, and got rid or more than $2,000,000 of her debt. By prudence, and economy, and good fluanciering, the bonds arose from 14 to 40 per cent, the banks began to pay out their specle, and everything went well. Illinois soon had 700,000 population. The reviver of the State was undoubtedly Gov. Thomas Ford, who died in 1850 very poor. The Illinois & Michigan Central, estimated in 1852 tocost&610,000,reallv costnearly $18,000,000. The State debt of $14,000,000, in 1841, was equal to about $150,000,000 nt the present time. The Government helped the canal with more than $5,000,000 of public lands. That canal made Chicago. In 1856 the saine canal was deepened, and all the sewerage of Chicago went down to the Illinois Instead of out in the lake. The State revenues were much increased by taxing lands sold by the Government, which had been exempt from taxation for five years after their sale up to 1847. In 1850, for the first time since 1830, the accruing State reventie sufficed to meet the current demands пров the Treasury. Congress, in 1850, gave the Illinois Central Hailrond 3,000,000 neres of land, and all the swamp lands in the State, amountIng to half as much more. These donations created the State us it 18. Instantly, Illinois improvement bonds jumped up 10 per cent. The Government has realized on the alternate sections on land In the grant $0,000,000. A Free-Hanking bill WDS passed in 1851, based on State and Government stocks. Instantly the State was Hooded with paper money, property rose, and everybody went into speculation. The penalty of $50 was imposed on every foreign bank-bill of less denomination than $5 coming into the State. In 1854 the panic came, largely begotten by the decline of Missouri and Virginia bonds. Illinois was flooded with Georgia shipplasters. By 1857 there were sixty-one free banks, of which eleven had failed. By the panie of 1857 more than 204,000 firms failed in the Union, with liabilities of $300,000,000. and about