5279. Shawneetown Bank (Shawneetown, IL)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: January 1, 1842*
Location: Shawneetown, Illinois (37.713, -88.187)

Metadata

Model: gpt-5-mini
Short Digest: fd31eeb7

Response Measures

None

Description

Articles report the Shawneetown Bank (Illinois) refused to resume specie payments on the 15th June 1842 (suspension, motivated by suspension of New Orleans banks/related regional banking distress). Later (early 1843 / Mar 1843 reporting) the Illinois legislature repealed the bank's charter and wound it up. No explicit depositor run on this specific bank is described in these excerpts (though 'panic raised' and rumors appear); sequence is suspension then permanent closure by legislative action.

Events (6)

1. January 1, 1842* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Contemporaneous reports speak of the bank's refusal to resume and resulting panic; mentions of state bank failures and counterfeit notes circulated, indicating loss of confidence and bank-specific distress.
Newspaper Excerpt: down goes the Shawneetown Bank--refused to resume-panic raised;
Source: newspapers

2. June 15, 1842 Suspension

Cause: Local Banks
Cause Details: Directors declined to resume specie payments on June 15 due to suspension/disasters of the New Orleans banks and fear of heavy specie demands.
Newspaper Excerpt: The Shawneetown Bank did not resume on the 15th inst. The only reason assigned by the directors for failing to comply with their promise is, a fear that there would be a greater demand for specie than could be met.
Source: newspapers

3. June 24, 1842 Other

Newspaper Excerpt: a rumor was current there that the Shawneetown Bank had failed.
Source: newspapers

4. September 1, 1842* Other

Newspaper Excerpt: secret of the late suspension of that Bank is now understood.—No. Reporter.
Source: newspapers

5. March 3, 1843 Other

Newspaper Excerpt: The most unjustifiable act of the session has been the violent repeal of the charter of the Shawneetown Bank ... The State compelled her to lend the Treasury $100,000, which caused a suspension of specie payments. ... down she came, by a vote of 2 to 1. Illinois has now no Bank within her confines.
Source: newspapers

6. March 18, 1843 Other

Newspaper Excerpt: The most unjustifiable act of the session has been the violent repeal of the charter of the Shawneetown Bank, which had 15 years to run. The State compelled her to lend the Treasury $100,000, which caused a suspension of specie payments ... The most unjustifiable act of the session has been the violent repeal of the charter of the Shawneetown Bank.
Source: newspapers

Newspaper Articles (12)

1. June 24, 1842 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, June 24, 1842

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Treasury Notes are selling at par and prem. We have a letter from Lexington, Ky., which states that a rumor was current there that the Shawneetown Bank had failed. Business at the Philadelphia Stock Board yesterday was active, and sales to a large amount were made. Considerable fluctuation in the prices of some descriptions was experienced. Sales U. S. Bank 31; Pennsylvania 58; Mechanics 12; Girard 24; Farmers and Mechanics' 20; Philadelphia 33; Northern Bank of Kentucky 65; Kensington 80; Reading Railroad 124; Chesapeak and Delaware Loan Sixes 20; State Fives 43 a 44. It is stated that the following banks--North America, Farmers and Mechanics' and the Philadelphia-have petitioned the Legislature to authorize a reduction of their respective capitais one-balt. The following was the result of the great sale of Bonds at Philadelphia: £113,000 sterling of the 6 per cent bonds of the Philadelphia, Wilmington and Baltimore Railroad Co. in bonds of 1.000 each, payable in 1855, amount secured in the mortgage lately given by the Company, the purchaser entitled to interest from the 1st of April last, calculating the £ sterling at $4 44-terms one-third cash, one-third on the 254 of Augest: £2,000 were sold for 765 per cent. 42,000..

2. June 25, 1842 The Radical Bowling Green, MO

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I The Shawneetown Bank did not resume on the 15th inst. The only reason assigned by the directors for failing to comply with their promise is, a fear that there would be a greater demand Prufor specie than could be met. dence(?) is the better part of valour.

3. June 30, 1842 Martinsburg Gazette Martinsburg, WV

Article from Martinsburg Gazette, June 30, 1842

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The Kentucky and Indiana Banks pos. itively commenced the paying of specie on the 15th inst., and it would be entirely successful in doing so, as was believed at Louisville. On the Louisville Bank there was no run, and the drafts for specie on the Indiana Branch Bank at New Albany (opposite Louisville) were light; but whatever they were, they were promptly met. It was understood that the Shawneetown (Illinois) Bank, would not resume the 15th, as agreed to, on account of the recent disasters at New Orleans.

4. July 1, 1842 Richmond Enquirer Richmond, VA

Article from Richmond Enquirer, July 1, 1842

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days wonder had subsided, the notes of these institu- tions disappeared as the medium for business transac- tions, and the holders quietly submitted to the loss.- Why should the note-holders and the depositors of the Citizens' Bank be more favored by the Board of Cur- rency?—Advertiser. # CURRENCY IN THE WEST. The Banks of Kentucky resumed specie payments in full on the 15th instant. The Banks of Indiana also went into full resumption on the same day. Notice was given by the directors of the Shawneetown Bank of Illinois, that resumption on the part of that Bank would not take place, in conse-quence of the suspension of the New Orleans Banks. It is yet doubtful whether the Banks of Tennessee will resume.

5. September 3, 1842 The Radical Bowling Green, MO

Article from The Radical, September 3, 1842

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The Springfield Register of last Friday says a few men have lately bought up a majority of the individual shares of the Shawneetown Bank, in order to speculate upon its paper and the stock held by the State in that institution. The secret of the late suspension of that Bank is now understood.—No. Reporter. The Sept. No. of the "Lady's World of Fashion" was received at this office several days since. It is adorned with a splendid engraving, the "Eastern Princess," displaying both taste and skill. We lament exceedingly that the Aug. No. of this work has not come to hand—if this notice should meet the eye of any one having knowledge of the same he will confer a favor by forwarding it immediately.

6. September 20, 1842 Democratic Standard Georgetown, OH

Article from Democratic Standard, September 20, 1842

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# PAPER MONEY.-A Western adventur- er tells the following as his experience with paper money: "Hold your horses, and if you want to hear the greatest shaving story, yo ever did hear just keep cool. I never have, in all my life had much money on hand at any one time; bat just before the suspension of specie payments by the Miner's Bank of Dubuque, I had two hundred dollars of her bills, and when I heard the news of her failure I thought she would raise again, so I held on to my money. After a few weeks I saw it was going to ruin, I determindd to get rid of it; so I took it to a broker's, and exchanged it for Gairo, at thirty per cent discount. This I looked on as paying pretty dear for a shave but the next thing I heard, was that the Caito Bank had blown up-and-off I goes to a broker instanter, and off comes twenty five per cont more, and then I had the product of my speculations in the State Bank of Illinois money. Next thing away goes the State Bank-busted all to pieces-and hang me if I did'nt loose thirty per cent in obtaining Shawne-stown money, and then I thought I was safe with what little money I had got-but alas! for all worldly affairs!-down goes Shawnetown Bank-refused to resume-panic raised; and to prevent the broker from shaving me again I went to a private individual, and gave him all the Shawnetown money I had for twenty dollars in Ohio money, and on offering to pass it, I was told it was counterfeit. And now, whether you believe it or not I tell you it is a fact, there is the whole remains of my two hundred dollars. Upon this he produced two ten dollar bills on the Geauga Bank of Painesville, and exclaiming, "Yes them two cursed counterfeit notes on the bank of Geauga are the whole remains of my speculation;" rushing around the corner and up the street.

7. September 28, 1842 Southport Telegraph Kenosha, Southport, WI

Article from Southport Telegraph, September 28, 1842

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# Beauties of a Paper Currency. The following story is going the rounds in our exchanges. It is reported to have been narrated before a corner knot of politicians who were giving in their experience under a paper medium. The genius who tells it breaks in at a favorable pause thus: "Hold your horses, and if you want to hear the greatest shaving story that ever you did hear, just keep cool. I never have in all my life, had much money on hand at any one time, but a short time before the suspension of specie papments by the Miners Bank of Dubuque, I had $200 of her money, and when I heard the news of her failure, I thought she would rise again, so I kept her money. After a few weeks I saw she was going to ruin, and I determined to get rid of it; so I took it to a broker, and exchanged it for Cairo, at thirty per cent discount. This, I thought, was paying pretty dear for a shave; but the next morning I heard that the Cairo Bank had stopped-and I goes off to a broker instanter, and off comes twenty five per cent more, and then I had the product of my speculations in the State Bank of Illinois money. Next thing away goes the State Bank-and hang me if I didn't sink thirty per cent more in obtaining Shawneetown money; and then I thought I was safe, with that money; I had got-but alas!-down goes, the Shawneetown Bank-refused to resume -panic raised; and to prevent the brokers from shaving me again, I went to a private individual, and gave him what Shawneetown money I had for twenty dollars in Ohio money and on offering to pass it I was told that it was counterfeit. And now whether you belieze it or not gentleman it is a fact, there are the remains of my $200. Upon this he produced two twenty dollar notes on the Geauga Bank, and exclaiming, "Yes, them two cursed counterfeit notes on the Bank of Geauga are the remainder of money speculation," rushed around the corner and up street, while the company went right over to the Tontine and liquored.

8. September 29, 1842 Sentinel of the Valley Woodstock, VA

Article from Sentinel of the Valley, September 29, 1842

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I heard was that the Cairo Bank had blown up; and I goes off to a broker instanter, and off comes twenty-five per cent. more, and then I had the product of my speculations in the State Bank of Illinois money. Next thing away goes the State Bank-bursted all to pieces-and hang me if I didn't lose thirty per cent. more in obtaining Shawneetown money; and then thought I was safe, with what little money I had got-but alas! for all worldly affairs!-down goes the Shawneetown Bank--refused to resumepanic raised; and to prevent the brokers from shaving me again, I went to a private individual, and gave him all the Shawneetown money I had for twenty dollars in Ohio money, and on offering to pass it, I was told that it was counterfeit. And now, whether you believe it or not, I tell you, gentlemen, is is a fact, there is the whole remains of my $200." Upon this the produced two ten dollar bills on the Geauga Bank of Painesviile, and exclaiming, "Yes, them two cursed counterfeit notes on the Bank of Geauga are the whole remainder of my money speculation."

9. October 6, 1842 The Ohio Democrat New Philadelphia, OH

Article from The Ohio Democrat, October 6, 1842

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# PAPER MONEY. A Western adventurer tells the following as as his experience with paper money: 'Hold your horses, and if you want to hear the greatest shaving story that you ever did hear, just keep cool. I never have, in all my life, had much money at any one time on hand; but a short time before the suspension of specie payments by the Miner's bank of Dubuque, I had two hundred dollars of her bills, and when I heard the news of her failure, I thought she would rise again so I held on to the money. After a few weeks I saw it was going to ruin, and I determined to get rid of it; so I took it to a brokers and exchanged it for Cairo at 30 per cent. dicount. This I looked upon as paying pretty dear for a shave; but the next thing I heard was, that the Cario bank had blown up, and off I goes to a broker instanter, and and off comes twenty-five per cent. more, and then I had the product of my speculations in the State bank of Illinois money. Next thing away goes the State bank, busted all to pieces, and hang me if I did'nt loose thirty per cent. more in obtaining Shawneetown money; and then I thought I was safe with what little money I had got! but alas! for all worldly affairel down goes the Shawneetown bank; refused to resume, panic raised; and to prevent the brokers from snaving me again, I went to a private individual, and gave him all the Shawneetown money I had for twenty dollare Obio money, and on offering to pass it, I was told that it was counterfeit. And now, whether you believe it not, I tell you, gentlemen, it is a fact, there is the whole remains of my two hundred dollars.' Upon this he produced two ten dollar bills on the Geauga bank of Painesville, and exclaiming, 'Yes, them two cursed counterfeit notes on the bank of Geauga are the whole remainder of my money speculation,' rushed around the corner and up the street.

10. February 10, 1843 Wheeling Times and Advertiser Wheeling, WV

Article from Wheeling Times and Advertiser, February 10, 1843

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following anecdote of this late eminent and gifted in dividual may be relied 0.1 as authentic The public has of endy been made acquainted with the fact that Mr Sergeant Spankie during the time he was keeping his terms, with a view to be called to the bar,, was employed as parliamentary reporter. Young Spankie (for such he was then) vas on his duty in the gallery of the House of Comnons at an early hour of the morning, after a proracted and important debate, when a division of the House took place, the regult of which was looked for with considerable anxiety throughout the conn try. The avenues to the House were crowde with strangers, and egress down the narrow stairease by which strangers reached the gallery in the old House of Commons was next to an impossibility.l'he hour of publication of journal to which he was attach ed was fast approaching, and Spankie.kno ing the importance to his proprietors that the conclusion of the debate and the division should be early before the public had recourse to a feat that surprised and astonished-thus who witnessed it.He climbed over the balustrade of the stairs which communicated from the old smoking Toom with the strangers' gallery. and suspending himself by the hands therefrom, dropped into the members' lobby below, a height of from Fixteen to eighteen feet, amidst a crowd of Senators. So suddenly was the affair accomplished, and 80 fleet of foot was the performer, that he escaped caption by any of the mym. idons of the sergeant at arms, and reached the office in safety and triumph. When Mr Sergeant Spankie sai in Parliament for Finsbury. the occurrence was frequently related by the late Mr Wright, an olu and well known messenger of the House, who was an eyewitness to the transaction. and who gen. erally pointed out the herot strangers whom enriosity nightly brought to SIS ephen's Chapel. ILLINOIS MONEY.-We extract the following from the Springfield correspondence of the Missouri Republican : "On yesterday Thomas Mather, Esq. as President of the State Bank, delivered to his Excellency. Gov Ford, two millions and fifty thousand dollars of our State Bonds, and indebtedness under the provisions of the act putting the State Bank into liquidation So soon t s the membeis return from their Jacksonville spree, which will be on Monday, the fact will be communicated to the two Houses, who will thereufon appoint a day upon which they will as. semble in the Hall of Representatives and destroy the same. This will create a new era in the finan cial history of the State of Illinois. It will be the comment of a reduction and liqnidation of her State debt. And if followed up by proper legislation. untrammelled by sectional jenlousies and party excite ment, will result in the further red action of a still. larger sum of our State debt. The Shawneetown Bank stands ready to liquidate a million of the debt upon terms advantageous to the State, and without asking on the part of the Legislature the slightest favor in return. If the bill of Dr Murphy. now before the House, succeeds, the above sum is irrecoverably lost to the State. If on the other hand it 18 defeated, and the chartered rights of this institution preserved, instead of being unconstitutionally violated by the aggrarians in the House, the State as well as the creditors of the Bank will be eventually protected No adjournment will in my opinion take place bofore the first of March, if then. Many have found their way into the Legislature without know. ing how, and believing that it will be he last time they will ever get a pull at the public crib, are anxious to stay as long as possible. and swell their pay to the largest amount." MYALISM.-The following is from the last Ja. maica papers "The negroes have set up what they term Myal. iam.' a series of religious, maniacal, and riotous dances. These are interspersed with songs. the most popular of which is "John Baptize in de Riber."Sixty four warrants were issued on the 26th of Sep tember for the apprehension of as many blacks. In the parish of St James the ramifications of this doctrine have extended from the Spring Estate to the Moor park, embracing a circuit of six'een planlations. The negroes attack all who attempt to restrain their antics. At Montego Bay "Obeaism" This is ne has been incorporated Myalism." gro witchcraft engrafted on religious fanaticista."

11. February 20, 1843 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, February 20, 1843

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doing any business. and as its charter expires in 1845, it is, by the provisions of the bill, utterly wound up." The Cashier of the Mobile Branch has given notice that the Bank would not receive any money on deposit, or any notes or bills for collection: and all personshaving either in Bank have been requested to withdraw the same. We understand that a member of the new Board, being uscomfortably 'short' OR Friday, was unable to fulfill his contracts. much to the dismay of the Bourse.' What was the result we do not know, but believe matters were compromised. Spanish Scrip to the amount of over $21,000 will be sold at the Exchange on Monday, 20th inst. The Madison County Bank has designated the New-York State Bank of the City of Albany as its agent for the redemption of its notes. The bill to reduce the capital stock of the Mechanics and Manufacturers' Bank of. Trenton passed the Council of N. Jersey on Wednesday. The bill to repeal certain bank charters was also passed, after exempting the Plainfield Bank, and the Mechanics and Manufacturer' Bank of Pat erson, from its provisions. Our favorite Monmouth, therefore, which had as many lives as a cat, having suspended and resumed at least three times during :be past week, is now entirely and dompletely defunct. We are afraid our neighbor of the Sun has burnt his fingers again in this CORcern. Not long since be bought half the Bank for $5,000, of which $2,000 he paid in cash, was to pay $1,000 on the 18th Feb., and $2,000 at some future day. He was elected a-Director, and his brother Cashier; and be received an accommedation discount of $5,000, which be was to put in circulation, and keep funds at the agency sufficient to redeem. This arrangement went on for a while, when the movements of the Legislature becoming somewhat alarm. ing, our financier began to push out his notes without providing for their redemption, and in this way got out some $800. We should think, with his experiments in Jacksonville, Ulster, Malone, Monmouth, and, we understand, Union Bank of Dover, that our neighbor would have become convinced that the science of finance is not just his forte; and although as motorious, he is not quite as celebrated as the Rothschilds or the Barings. A New-York correspondent of the Cincinnati Republican states that the largest portion of the balance of the twelve million loan, recently taken by John Ward & Co. was for West India account, through the Bank of St. Thomas, which has an agent here. We had not heard this mentioned in the street, but it may be correct. The following sales were made at Boston: 25 shares of Boston and Worcester Railread, it a 91 adv ; 45 do Boston and Maine Railroad, $84.1 a 85 pr shr; 15 do Eastern Rail. road, 004 a 91 pr slir; do Western Railroad 481 pr shr; 15 do Merchants' Bank, 14 adv; 3 do Shoe and Leather Dealers Bank, 993 pr shr. The Chillicothe Bank is now redeeming its notes by givIng Eastern exchange at 21 per cent premium. Four or five bills have been or will be introduced is the Illinois Legislature for winding up the Shawneetown Bank. A letter from Frankfort in the Louisville Gazette says"I am very happy to state that the decided impression in Frankfort now is that no valuation law or Commonwealth Bank is likely to succeed. The offer of our Banks to ex. tend their circulation, it is thought, will be accepted." The Editor of the Journal thinks there will be a Bank: and his regular Frankfort correspondent says: "The Safety Fund Bank bill passed to its third reading to-day, by a majority of five, having been so amended as to make the loans run six months instead of four. It will undoubtedly pass the House, and I fear the Senate will also pass it" The Merchants' Fire Insurance Company of Baltimore has declared a half yearly dividend of 5 per cent.

12. March 18, 1843 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, March 18, 1843

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Correspondence of The Tribune. SPRINGFIELD, III., March 3, 1843. Dear Sir : The bill which passed the Senate a few days since (by a vote of 5 to 1) for the adjustment of the account of Macalister & Stebbins and passed a third reading yester. day in the House, by a majority of 8, came up on its final passage to-day. Although I have seen a great deal of our State legislation. I have never seen as much excitement. The question was, Shall we pay a most sacred debt of some 260 to 300,000 dollars, or shall we evade it by defeating this bill, on account of some of its pretended objectionable fea. tures? The bill was carefully prepared, but the repudiators had succeeded in rendering it odious to a portion of the House by the insertion of a repudiating clause (in the preamble) of the bonds of 1865, and by a section repealing the 10 cent tax which was irrevocably pledged for the pay. ment of the interest on those bonds, but yet if the bill passed the money bad to be paid. Never did Napeleon's troops make more furious charges than did the repudiators on this day, and never were assailants more firmly repelled by a portion of the debt-paying people. The question was taken and the bill carried by one vote! The vote that decided it was that of Mr. Adams, whom Col. Macalister burried into the House just as the Speaker was about to announce the ayes and mays, and asked that his vote might be recorded. Col. M. has managed this business with great cooiness and ability, and has proved himself a skilful tactician. He had the aid of able coadjutors, but he showed wisdom in select ing proper men. It is marvelous to me how he succeedad at all, for I can account for the opposition to this bill upon 20 other principle than that there is a considerable portion of the people of this State opposed to paying debts of any kind. 1 will send you at an early day a copy of this bill. It proposes to pay M.ES. the sum of 2F9 to $279,000 in annual payments of $50,000, after 1843. You will perceive that it must take some 5 or 7 years before these gentlemen can reimbursed for their advances. The whole of their claim was not allowed them. Their charges of commission, &c, appear to have not been included. Whether they will be enabled to render the bill available, covering such a space of time, is a matter of some doubt. I should scarcely think they would be willing to surrender the bends of 1865, which represent so much more, and take in excbange the new promises of the State payable at such a length of time ahead for the amount of their advance. The Session will close to-morrow. The principal acts have been to dissolve the connection between the State and the Banks, by which three millions of State Bonds have been canceled. The most unjustifiable act of the session has been the violent repeal of the charter of the Shawoee+ town Bank, which had 15 years to run. The State com. pelled her to lend the Treasury $100,000, which caused a suspension of specie payments. The penalty by the charter for this, is the payment of 12 per cent per annum. This was not sufficient; down with the Banks! was the VOX popuii, and down she came, by a vote of 2 to 1. Illinois has now no Bank within her confines. The Canal bill is an important measure, but the doctrine avowed that one Le. gislature cannot bind another will, I fear, prevent any one embarking in the enterprise. What the amount of the State debt is no one can tell, as the Fund Commissioners issued as many bonds as they pleased. I think I mentioned to you on a former occasion that the taxes have been reduced one-halt. Who will here. Yours, T. after lend a State their money?