5528. Bank of Connersville (Connersville, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
December 13, 1860
Location
Connersville, Indiana (39.641, -85.141)

Metadata

Model
gpt-5-mini
Short Digest
bf6c3d2e

Response Measures

None

Description

Contemporary newspapers (Dec 13–14, 1860) report the Brookville Bank (one of several 'free banks of Indiana') as being 'thrown out' and 'winding up' with its notes surrendered and secured by bonds to the Auditor. No run is described; the bank is closing/winding up (permanent). Classified as suspension leading to closure; cause coded as voluntary liquidation (free-bank winding up).

Events (1)
1. December 13, 1860 Suspension
Cause
Voluntary Liquidation
Cause Details
Described as a 'free bank' of Indiana being 'thrown out' and 'winding up' with notes surrendered and secured by bonds to the Auditor (closure/liquidation of the free bank).
Newspaper Excerpt
The following free banks of Indiana have been thrown out :-Brookville Bank, at Brookville ... They are all winding up, and, it is said, have less than $1,000 each in circulation. The notes are secured by bonds given to the Auditor when the securities were surrendered.
Source
newspapers

Newspaper Articles (2)
1. December 14, 1860 The New York Herald New York, NY
Article from The New York Herald, December 14, 1860

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Article Text

FINANCIAL AND COMMERCIAL. THURSDAY, Dec. 13-6 P. M. The better feeling in mercantile circles which was remarked yesterday was prevalent to-day also, though we cannot quote any very marked improvement in paper. First class signatures continue to pass at 12 a 15 a 18 por cent, and the demand for paper is still quite light. Considerable surprise is expressed at the cool manner is which the news of our crisis seems to have been received II England. When the Europa sailed, the English had before them quotations of sterling exchange here at 101 a 102, with no demand at the decline, and quotations of stocks generally lower than any which have been sent over since. Yet in the face of this, the Bank reduces the rate of interest, not ½, but 1 per eent, and American stocks are maintained 5 a 6 per cent above our prices. The favorite theory in Wall street is that the English had not had time to realize the seriousness of our situation: that they were incredulous as to the purpose of the Southern States; and that when they receive the news by the Persia and the steamers which followed her, they will feel less hopeful, the Bank will raise the rate of interest, and cotton and stocks will fall. The stock market opened to-day with a better demand for State stocks, which are beginning to recover from the panic, but with an increased supply of New York Central, mainly in consequence of the unsatisfactory nature of the report. That document, of which we shall pub. Hsb 8 me extracts when our columns are less crowded, shows, DR we stated yesterday, a net profit for the year of only 6½ per cent. It will confirm the belief of those who have all along asserted that the Central was never run for FO small a proportion of the gross earnings as has been stated in the reports. The expenses have for some years been larger than was confessed, and the consequence is that now, with gross earnings largely increased over last year, the directors are forced to confess that their net earnings are less. still, notwithstanding the adverse effect of these dis. closures on the market, the scaroity of stock began to affect prices after the first board, and there was a general rally, which lasted till the close of business, the market being quite firm at the close. The following were the last quotations of the day:-United States 5's 1874, 89% a 90; Indianas, 90: Virginia 6's, 76 a 79; Tennessee 6's, 71% a72; Missouri 6's, 66 a 3/2; Canton, 13 a 14; Cumberland Coal preferred, 8 a 10: Pacific Mail, 79 a ½; New York Central, 73½ a 74; Erie, 28 a ½; Hudson River, 39 a %; Harlem, 1336 a %: Harlem preferred, 31% a 321/21 Reading, 32% a 33; Michigan Central, 47 a M; Michigan Southern and Northern Indiana, 12% a 13; Michigan Southern and Northern Indiana guaranteed, 27% a 28½; Panama, 112 a 116; Illinois Central, 583/4 a ½; Galena and Chicago, 62 & ½; Cleveland and Toledo, 24% a ½; Chicago and Rock Island, 471/2 a 48; Chicago, Burlington and Quincy, 63 a 64; Delaware, Lackawana and Western, 73 a 75; Ilinois Central bonds, 87 a ½. The business of the Sub-Treasury was as follows today $100,045 85 Receipts 36,000.00 -For customs 328,170 93 Payments Balance 2,685,995 72 The exchanges at the Bank Clearing House this morning were $17,673,192 90, and the balances $1,224,978 78. The Boston and Lowell Railroad has declared a semiannual dividend of four per cent, payable January 4. The Philadelphia Ledger of December 13 says:--There is no change in the money market. The only rates at which any paper sells at all are 15 a 18 a 24 per cent, and nothing but first class signatures can be passed at these rates. The discount brokers report absolute dulnees in their business. The applications at bank continue pressing, though the demand is met with more liberality than would be supposed, considering the current rates of paper on the street. Call loans are effected at 7 a 8 per cent. The Buffalo Commercial Advertiser says:The following free banks of Indiana have been thrown out :-Brookville Bank, at Brookville; Bank of Syracuse, at Syracuse: Bank of Indiana, at Michigan City: Indiana Reserve Bank, at Kokomo; Fayette County Bank; Bank of Connersville; Hoosier Bank, at Logansport. They are all winding up, and, it is said, have less than $1,000 each in circulation. The notes are secured by bonds given to the Auditor when the securities were surrendered. The New Orleans Picayune of Saturday last, December 8, says:Under the influence of the New York despatches, foreign exchange gave way 1a1% per cent this morning, and negotiations could only be effected with difficulty Clear sterling was dealt in moderately, at 95 a 98, the latter an extreme figure for the best. Drafts with doeumentary evidence are not offered. Francs are duil and tending downward. Probably the correct quotation would be 5f. 90 & 5f. 80, though an exceptional name might bring a fraction over. Time bills on the North are wholly unsaleable. Sight was transacted at 1½ a 1% per cent discount. Altogether the market closed heavily. The money market continues in statu quo. Outside loans are made in rare instances at extravagant rates, but, as a general rule, there is no settled price for anything. The suspension of several prominent houses has as hat lessened the pressing demand for money, with. out increasing the supply, 80 that practically we are no better off. But in the meanwhile the banks are daily growing stronger, and being already in a position to withstand any assault, they will shortly begin to look around for casual investments. In fact, there is an inclination to entertain proposals for new discounts, though on a limited

2. December 14, 1860 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, December 14, 1860

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Article Text

Brookville Bank, at Brookville; Bank of Syracuse, at Syracus Bank of Indiana, at Michigan City; Indiana Reserve Bank Kokomo Fayette County Bank; Bank of Connersville Hoosi Bank, at Logansport. They are all winding up, and. it is asi have learthan 6 1,000 each in circulation. The notes are seen by bonds given to the Auditor when the securities were surren dered." The N. O. Picayune says: Under the influence of the New ork dispatches/Foreign exchange gave way 1011 P cent this morning, and negotiations could only be effected with difficulty. Clear sterling was dealt in moderately, at the latter an extreme figure, for the best. Drafts with documentary evidence are not offered. Francs are dull and tending downward. Probably the correct quotation would be 5f.90@5f. 80, though an exceptional name might bring a fraction over. Time bills on the North are wholly unsalable. Sight RS transacted at Han centidiscount. Altogether the market closed heavily. The money market continues in statu gue. Outside loans are made in rare instances at extravagant rates. but, as a general rnle. there is no settled price for anything. The enspension of several prominent houses has somewhat lessened the pressing demand for money, without increasing the supply, so that practically we are no better off. But, in the meanwhile, the banks are daily growing stronger, and being already in a position to withstand any assault, they will shortly begin to look around for casual investments. In fact, there is an inclination to entertain proposals for new discounts, though on a limited footing, but this feeling is held in abeyance until we can arrive at some definite idea as to the course of the banks. The receipts of specie this week amount to $423,627, of which $16,427 was from Texas, $2,000 from Brazos. $180,200 from m Havana. and $225,000 from New York. The shipments comprise a few insignificant parcels not worth noticing. There is no market for unearrent money." The Bank officers of Louisville have had a meeting and decided not to suspend. Annexed is the report of the Committee of Stockholders of the New-York Central Road submitted to the meeting on Wednesday. The remarks in regard to the closing of the construction account are neteworthy: The undersigned, members of the Committee appointed by the Stockholders of the New York Central Railroad Company, for the purpose of examining into the accounts and transactions of the said Company, and to report thereon, respectfully report that they have devoted themselves to such an examination of the affairs of the Company in the general office as they have deemed needful and a portion of them have personally examined the oad and structures during the last month, and they are happy to say, that every facility for a thorough and minute examination of the accounts and management of the affairs of the Company as afforded by the officers and persons having charge of the Va jous partmer ts. The accounts of the Company have been found to be in the usual good order. and to correspond with the statements in the annual report for the last fiscal year. This report shows a net income, applicable to dividends, of 6 $ cent, and an expenditure, in maintaining and operating the road, of 61 49-100 cent of its gross receipts. These facts will, doubtless, be among the first to engage the attention of the stockholders, asshowings small per centage of net income upon the capital, and a large per centage of expenses, as compared with the receipts. They are, however, in a great degree the legitimate result of sound policy adopted by this Company, and which must eventually be adopted by all railroad companies that have their roads substantially completed, and mean to avoid ultimate bankruptcy, the policy of treating the account as substantially closed. Durin the past year only 380 have been charged to construction account, and that amount consists of $61,272 paid for real estate purchased, 106 paid for the construction of new engine and r-houses, chiefly on the grounds of the Company at West Albany, paid for new track toward completing the double track betw Syracuse and Rochester, and $1,555 ended on station buildings. These items we consider fairly chargeable to construction account, if such an account is allowable, being substantial additions to the value of the property. About twelve miles of the new double track have been constructed during the year, which, with side tracks and turn outs, amount to about twenty miles of new single track. It is desirable, no doubt, to have this line of double track completed as the means of the Company will admit. The expenditure for the construction of the machine-shop at West Albany, as we understand from the engineer, is already mostly made, and it seems to us that the next most pressing ne. ceasity of the Company is for further accommodations for the freight traffic in the City of Albamy. In regard to the expenses of the last year, it should also be borne in mind that the previous year was one of remarkable depression in the business of the road, necessitating the most limited expenditure, and consequently throwing an increased amount into the business of this year. We do not ourselves feel competent to say what proportion the expenditures of this road should bear to its receipts, nor do we believe that this question as to railroads generally can be determined with any degree of accuracy by any statistics as yet furnished. Nearly all the figures we have on the subject are derived from the experience of roads having a construction BC: count. and, where such is the case, they are entirely unreliable, as their accuracy is wholly dependent upon the charges to that account, and we think the experience of this road is beginning to show that a much larger allowance must be made out of the receipts of roads generally, for annual expenses, than has heretofore been thought necessary The income of the road from passenger receipts for the last three years had show but a very inconsiderable variation in amount, while the freight traffic varies in amount from year to year, according to circumstances beyond the control of the Company but has thus far shown. as will be seen by a table annexed, an almost invariable reduction in price. These considerations seem to us to suggest, with great force, the policy of avoiding all expenditures, except such as can be made from surplus income, and such as. when made, will diminish the annual expenditures to an amount equivalent at least to the interest of their costs. Under the operation of the sinking funds during the last year there have been extinguished: $180,000 Of the Debt Certificates. 90,000 Of the Bonds Issued for Railroad Stocks 20,000 Of the Bonds Issued for Real Estate Of the Bonds to Stockholders of Buffalo and Niagara 4,000 Road Falls All of which we have examined and found duly cancelled. Bonds of the old Companies have been extinguished as follows $1,000.00 Company Of the Albany and Schenecta 65,669 34 Of the kester and Syracuse Company 8,696 31 Of the Buifalo and Rochester 12,000.00 Of the Rochester, Lockport and Niagara Falls 10,000 00 Of the Buffalo and Niagara Falls. Also Bond Issued by this Company to Telegraph 10,000.00 Company $401,365 65 Total On the 13th of November three of your Committee commenced an examination of the track of the road, machine-shops, stations, &c. They found the track in good condition, and the bridging greatly improved: 580 lineal feet of iron superstructure has been substituted for old wood structures, and the remainder of the bridges required for immediate use have been repaired and strengthened, and nearly all have been covered. A considerable expense has been incurred in the substitution of embankment for trestle bridging, which is a permanent improvement. 349, 100 cross have been purchased and paid for during the fiscal year, at an average cost of 33 4 10 cents per tie, and most of these have been laid in thetrack. This is fair average of the number of cross ties required annually for keeping the track in good condition. The machine-shops were in good order, and the roadway and its management fully up to the standard reported last year; but whether more or less than the requisite number of men were employed to keep in good condition the road and rolling stock of the Company, is difficult for the Committee to determine. A good and substantial elevator has been erected at Buffalo, at a cost of about $80,000, which is of sufficient capacity for storing 500,000 bushels of grain. Markets.-CAREFULLY REPORTED FOR THE N. Y. THIRUNE. THURSDAY, Dee. 13, 1860. ASHES-The demand is moderate for both kinds; prices are nominalat $5. COTTON- market is steady, with a fair demand sales of 3,000 bales, 2,000 in transitu. We repeat quotations. Middling Uplands and Gulf 10@10fc. sales have been made BH follows: 30 bags St. Domingo at llgc.; 200 mats Java at 16@16fe., and 50 bags Laguayra 14a 14je.