5447. Shawnee Bank (Attica, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 17, 1857
Location
Attica, Indiana (40.294, -87.249)

Metadata

Model
gpt-5-mini
Short Digest
3284d44e

Response Measures

None

Description

Multiple contemporaneous newspaper reports (Jan 1857) state the Shawnee Bank of Attica 'failed', was 'suspended' and 'broken' following fraud/speculation by owners tied to the Gramercy Bank. No article describes a depositor run prior to suspension; outcome described as failure/closure. 'Free Banks' in Indiana indicate a state-chartered (free) bank, so bank_type set to 'state'.

Events (1)
1. January 17, 1857 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Failure/suspension followed from fraudulent/speculative conduct by the owners (connected to the Gramercy Bank) and misapplication/removal of securities; insolvency due to speculation in state stocks and mismanagement noted in reports.
Newspaper Excerpt
the Shawnee Bank of Attica, and the Gramercy Bank of Lafayette, had failed.
Source
newspapers

Newspaper Articles (7)
1. January 17, 1857 The Evansville Daily Journal Evansville, IN
Article from The Evansville Daily Journal, January 17, 1857

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Article Text

Bank Failures. A dispatch was received in this city yesterday, that the Shawnee Bank of Attica, and the Gramercy Bank of Lafayette, had failed. These banks have always been among the best of the free banks and both have been tak on on deposit by the Crescent City and Canal banks. These failures will prove a considerable loss to many of our citizens, some of whom have several hundred dollars of the paper on hand. The Gramercy Bank failure is a bad one, and the failure of the Shawnee Bank at Attica followed from the fact that it was owned by the Gramercy Bank. The sante contern was also interested in the Branch of the new State Bank at Bedford. The State Board has promptly taken possession of this branch, so that no misapplication can be made of its funds. The Gramercy managers made it a business to start stock banks in this State and Illinois, upon the borrowing system. As long as their credit could be sustained, everything went on swimmingly, but when the cost of circulation exceeded the interest, the result was suspension.

2. January 21, 1857 Weekly Hawk-Eye and Telegraph Burlington, IA
Article from Weekly Hawk-Eye and Telegraph, January 21, 1857

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The Bank Pan ic. In regard to the Bank Failures a brief note of which appeared in our paper of yesterday, the probabilities are that the excitement will soon pass over and the notes of the discredited banks enjoy the same confidence as formerly. Of this panic the Democratic Press (Chicago) of Saturday thus speaks: "Dispatches were received here yesterday from New York by one of our Banking Houses, ansouncing that the New York brokers had thrown out the notes of the Gramercy Bank, Ind., Shawnee Bank of Attica, Ind., and the Zimmerman Bank, Canada. As a consequence the notes of the same institution were thrown out here. It is reunored that the same parties who own the Gramercy Bank of Indiana are also the owners of the People's Bank of Carmi, the Prairie State Bank, and the Rushville Bank, all of Illinois, which rumor induced some of the banks of this City to throw out the notes of the above named Illinois institutions yesterday. The Stock Security Bank at Danville, has among its securities $58,000 in California bonds. The Supreme Court of that State having recently decided that those bonds are illegal, some of our brokers, yesterday, refused to receive the bills of the Stock Security on deposit. The People's Bank, at Carmi, is secured by a deposit of the following State stocks: $15,000, Virginia ; $218,000, Missouri; $238000, Louisiana and $29,000 Tennessee. Total securities $500,000. Circulation $464, 515. The Rushville Bank has the following basis of circulation : $88,000, Missouri; $43,500, Louisiana. Total securities $81,500. Circulation $78,300 The following are the bonds pledged by the arity Bank, of Danville: Stock Sec. $55,000, V. orginia; 90, California; 82,000, Missouri; 15,000, Tennes- 45,000, Louisiana 58,00 see. Circulation $183,000. Total securities $200, 470. There was a movement on foot among our bankers yesterday, which we ha've reason to beliere will go far toward, if not eL tirely, restorThere is ing these four banks to sound credit. no reason why this may not be done with all of them except the Stock Security Bank, Dan Fille. As regards the latter if the owners replace the California stocks, with others that are good, or will promptly cancel them, its issues will cer tainly be as good as the average of Illinois Banks. Our advice to the holders of notes on the above banks is to keep perfectly cool, and submit to NO shave. We hope to be able very soon to quote their notes as good at the counters of our Chicago banks. In the meanwhile let our State Legislature proceed cautiously, yet firmly, to make such amendments of our general banking law as oxperience has demonstrated to be necessary.

3. January 22, 1857 Marshall County Republican Plymouth, IN
Article from Marshall County Republican, January 22, 1857

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Gramercy Bank Failed. The Indiana Journal, of the 15th inst has the following in reference to the fail ure of the Gramercy Bank. under its monetary and commercial head: The bills of the Gramercy Bank, at La fnyette. were thrown out yesterday by the Bankers of this city. The securities of the Bank are gone, and its notes, consequently, worthless. We understand that under misapprehension of the intention of the parties, and by seemingly fair rep. resentations made, the Auditor of State permitted the securities to be removed from his office. As matters stand at pre sent, the circulating notes of the Gram erey Bank are worth little or nothing. The Journal of the 16th, contains the following additional information in regard to the failure of the Gramercy and other Banks: The failure of the Gramercy Bank is attributable to speculations in State Stocks, in Wall street operations, and not to the failure of any Bank to pay claims held by the Gramercy Bank The owners of the Gramercy were, al. 80. the owners of the Shiwnea Bink at Attica, That Bank is now placed in the list of suspended and Broken Banks. The Gramercy owned four Illinois Banks, one of which [the Prairie State Bank, at Washington.] we noticed yes terday as having failed, Illinois money is generally discredited, not on account of the connection of the Genmercy with several of the banks of that State partic. ularly, but because a feeling of distrust has been prevalant for some time in ref. erence to their solvency. Some of our merchants receive Illinois money, but all the Banks throw it out or discount it heavily Both houses of the Legislature to-day passed resolutions asking the Auditer and Treasurer of State to lay before them the amount of circulation, bonds on deposite as securities, and the value of the same, belonging 10 the Gramercy Bank Another resolution calls for information of a similar character in reference to all the Free Banks of the State,When all the statements are made. it will then be seen who has been at fault, if fault there is, in the matter of the remo. val of securities, to which we alluded yesterday. The Free Banks of Indiana, in compliance with the law, have been publishing their semi-annual statements in the Journal for some days past. The stant. ing of the Banks can be learned from these statements They are all sound and safe. The failure of the Gramercy and Shawnea Banka should not affect the credit of any other of the Free Banks, or diminish the confidence that the people have in their stability. 11 the securities of the Gramercy were removed from the Auditor's office under false pretenses, that fact should not implicate the officers, or injure the credit of any other Bank.

4. January 23, 1857 Indiana American Brookville, Indianapolis, IN
Article from Indiana American, January 23, 1857

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Article Text

Another Bank Panic! The failure of the Gramercy Bank, Lafayette, and the Shawnee Bank, Attica, under circumstances that reveal fraud, on the part of their owners, if not also corruption on the part of the Auditor of State, has caused another panic in regard to the Free Banks of Indiana and Illinois. No wonder. If these, which sustained the shock of two years ago, go down, what confidence can the public put in any of them? Alluding to the panic in Cincinnati, the Gazette of Monday says: "The notes of the following Indiana Banks were thrown out on Saturday :Central and Farmers' & Mechanics' Bank of Indianapolis; Tippecanoe Bank at Logansport; and Brookville Bank at Brookville. The latter Bank, however, was by some considered good, and some of the houses continued to receive the paper at par. It is owned and managed, we are informed, by good and responsible men.Of the Illinois Banks, the notes of the following were thrown:-State Stock Security Bank at Danville; People's Bank at Carmi; Prairie State Bank at Washington; Rushville Bank at Rushville; Agricultural Bank at Marion; Central Bank at Peoria. The Bank of the Capitol at Indianapolis, the Exchange Bank at Greencastle, Ind., and the Farmers's & Traders' Bank at Charleston, III., are received with distrust. What this excitement will lead to, it is difficult to say." We wish it would lead to an abandonment of the new-fangled patent-Democracy system of banking without capital. If the present Legislature does not do something to protect the people from the flood of spotted paper, called money, we wish they would go into "joint convention" in the penitentiary for two years, and let the people elect Legislators who would do some good.

5. January 28, 1857 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, January 28, 1857

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or the importations in 1851 there was a larger amount of specie than there has been in the last twenty years, excepting two years-say 1839 and 1842. We have the following from Louisville of last Tuesday. Some of the Indiana Banks have suspended payment. The Gramercy Bank, Lafayette, and the Shawnee Bank of Attica are included in the report. We suppose others will follow LOUISVILLE, Jan. 20, 1857.-With the river still closed by ice and extremely cold weather, nothing of any consequence could be expected to transpire in the market. The short crop in the hog product occasionally leads to some speculative purchases, but they are usually followed by holders advancing their prices, which give a check to further transactions. In tobacco, prices are a fraction better, but the business is entirely too limited, caused by a want of stock, to predicate for the future. Flour has advanced 15@25c per barrel, and wheat 5c. The stock of corn and oats is very light. The grocery market continues firm. Green hides have advanced 1/2c. There is nothing shipping. The ice is so heavy here that the ferry-boats are almost prevented from running. The railroads are now employed in carrying passengers, and bringing wood and coal to keep the inhabitants from freezing. The money market is tightening and exchanges are firm at our last week's quotations. The thermometer yesterday morning stood nine degrees below zero.

6. January 29, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, January 29, 1857

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SECOND BOARD. 200 Reading Railroad. $60 811 961 1,000 Erie R.R. Bds. 1875. 500 Clev. & Pittsb. b60 & 1,000 Erie R.R. Con Bs 1871 b3 55 200 do 50 Bk. State of New York 104 10 La Crosse and Mil. R.R 72b 50 Cumberland Coal Co... 19) 75 Mich.So. & Is. R.opg. 82 100 Canton Company b60 23/6 125 New York Cent. R. 94 100 Bruns City Land Co... b60 do 150 941 100 Mich. Central R. R.... 96 #80 250 do 96 93% bS0 50 b30 94 200 954 50 612 250 Erie Railroad 10 Chic. & Rock Isl. R.R. 99 62 560 300 do $60 66 50 97 2 50 Panama Railroad 99: 50 b60 97/ do 100 % 5 3 do 96} 81 900 Reading Railroad b30 80 Galena &Chicago R.opg 105 814 100 060 200 Cleve, & Tol. R. 76$ do 200 WEDNESDAY, Jan. 28-P. M. There was an active Stock market thismorning, and, without important change, the tendency of prices was downward. The Arago's advices and the arrival of gold by the Illinois not being satisfactory, an unfounded report was circulated between the Boardsthat the Arabia had arrived at Halifax, quoting Consols at 921, and this tended to increase the heaviness of the market. At the Second Board there was & fair amount of business transacted, and generally at some decline upon the figures of the morning. Reading shows a decline of 1 V cent since yesterday, and Erie I P cent. The Western roads show & decline, with some exceptions, of I to P cent. The movement in State Stocks is large, embracing about $215,000, including Missouri 6s at 861, Ohio's 1860, 1021 @ 103; Tennessee 6s, 1890, at 90; Virginias, 93; North Carolina 6s, 95, &c. Railroad Bonds were quiet and rather heavy. The business of the Sub-Treasury was: Receipts, $216,919 89, including $25,000 for transfer draft on Boston; Payments, $258,636 including $50,000 California drafts; Balance, 527,948 88. In Exchange there is but little yet doing for the Saturday steamers, and the market is firm under a small supply of bills, the result of the detention of nine NewOrleans mails which are now due. Freights are without material change; the business is light. To Liverpool, 1,000 bbls. Flour at 2s. 3d., 35,000 bushels Grain at 7d. in bulk, 300 bales Cotton at Id, 450 boxes Bacon at 25e., and 300 pkgs. Lard at 25s. To London, rates are unchanged; we quote Flour at 3s., Grain at 101d., and Heavy Goods at 30s. To Glasgow, 50 tuns Logwood at 32s. 6d. A vessel wastaken for Lisbon to load Grain at 22e., and Flour at $1. The Manhattan Gas Light Company has declared a dividend of 50 P share on the full, and 961c. P share on the scrip stock, payable on demand. The Leather Manufacturers' Bank has declared a dividend of P cent, payable February 2, The coupons due 1st February on the bonds of the Watertown and Milwaukee Railroad Company will be paid by Atwcod & Co. Mr. Nicolay will offer at auction to-morrow (Thursday) $165,000 of the Bonds of the New-York, Peansylvania and Lackawanna Coal Company. The advertisement states: "This Company is chartered by the S ate of Pennsylvania. Their lands (665 acres in all) are situated in Luzerne County, Pa., being in the center of the noted Lackawanna coal-field. Tney are about a square mile in extent, and midway between the great coal centers of Carbondale, Scranton and Jessup. These lands are easy of access. Besides the Delaware and Hudson Canal Co. Railroads, already running through the property, the Lackawanna and Lanesboro' Railroad (recently chartered, and to connect with the Erie Railroad and the Binghamton and Syracuse Railroad) will pass over this property, 20 that coal can be taken direct from the mines to the interior of New-York State. They are also in ready connection(by plankroad) with all the valley towns from Wilkesbarre to Carbondale, and from New-York distant but eight hours. The Lackawanna River, running half a mile through the property, affords an abundant water-power for all mining and manufacturing purposes, and a saw-mill is already in full operation on the lands of the Company. The property of the Delaware and Hudson Canal Company immediately adjoins. That Company not long since obtained permission to investigate that portion of the property contiguous to their own, and they discovered a ten-foot vein but thirty-two feet from the surface to the bottom of the vein. The business of the Clearing was $22, 472,000. As a fair off set the bill just introduced in our Legislature to prevent the presentation of the circulation of the country Banks at their counters for redemption unta they have first been presented at the agencies in New-York, Albany or Troy for redemption at & P cent discount, it is proposed to make the annexed appeal to the Legislature: To the Honorable the Senate and House of Assembly of the State of New- York: Whereas, It is proposed by certain country Banks, that the Legislature, by enactment, shall grant them the privile of taking up their bills at less than the face of them; therefore, the undersigned, merchants, traders, and others, respectfully petition your honorable body, that they be allowed & like immunity with Banks, in regard to their promises to pay; and that they be authorized to appoint legal agents in Albany and Troy, at which places they shall have the right to redeem, or pay their notes at P cent discount; and, moreover, that it shall be illegal to demand payment for said notes at the merchant's office or place of business, at par (though retaining the right to pay there), until said notes shall first have been presented at the agency aforesaid, and payment there refused at 1 P cent discount. Money is still quite easy on call, bnt the Shoe and Leather Bar were calling in some loans in preparation for the city disbursements of the 1st of February. Paper is not plenty, of good character, and is in request at 10 P cent. A correspondent at Attica, Indiana, writes that one of the parties left in charge of the affairs of the broken Shawnee Bank, was attacked by an indignant depositor, who demanded the return of a deposit made & day or two before, and beaten until he returned a portion of it and promised to repay the remainder within & week. Our correspondent states that a coat of tar and feathers has been prepared for the managers of the bank if they should venture to return. We hear of no Gold engaged for the Saturday steamer and none went from Boston to-dav. The

7. February 5, 1857 Belmont Chronicle Saint Clairsville, OH
Article from Belmont Chronicle, February 5, 1857

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THE BANKS-Itwas our intention to have given the circulation and securities of the Illinois and Indiana Banks that are discredited, but the storm has prevented our doing 80 this week. The troubles in I Ilinois and Indiana have been precipitated by the Gramercy Bank, which concern, or its backers, owned several other banks, which, of course, all went over like a row of bricks. The Gramercy Bank owners, we see are at the head of one of the branches of the Bank of the State of Indiana." The discredited banks, as far as we are posted, are: Gramercy Bank, Lafayette, Ind.; Shawnee Bank, Attica, Ind.; People's Bank. Carmi, Ill.; Stock Security Bank, Danville, III.; Prairie State Bank, Washingtor, III.; Rushville Bank, Rushville, III. The Exchange Bank, Bangor, Me.. has gone into the hands of Receivers-Tomb of the Capulets."-Thomps Bank Note Reporter.