5984. Government Stock Bank (Lafayette, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 9, 1855
Location
Lafayette, Indiana (40.417, -86.875)

Metadata

Model
gpt-5-mini
Short Digest
f416f358

Response Measures

None

Description

Newspapers (Jan 9 and Jan 19, 1855) report the failure/suspension of Messrs. Howard, Smith & Co., proprietors/owners of the Government Stock Bank at Lafayette. The articles state the bank suspension and note its circulation was trading at heavy discounts; no reopening is reported. Cause appears to be owners' failure (bank-specific adverse information). OCR errors in some articles corrected (La Fayette -> Lafayette).

Events (1)
1. January 9, 1855 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Failure/suspension of the proprietors Messrs. Howard, Smith & Co., who owned the Government Stock Bank, causing suspension affecting redemption of its circulation and bills trading at a discount (about 75 cents on the dollar).
Newspaper Excerpt
Mesers. Howard, Smith & Co., owned the Government Stock Bank at Lafayette, Indiana. This suspension will affect the value of its circulation, which amounts, however, to only about twenty thousand dollars.
Source
newspapers

Newspaper Articles (4)
1. January 9, 1855 The New York Herald New York, NY
Article from The New York Herald, January 9, 1855

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Article Text

Beekman Fire Insurance Company have declared a semi annual dividend of five per cent. The Monadnock Mills, Claremont, N. H., have declared a dividend of five per cent on their old stock and interest on new stock. From and after Dec. 1, 1854, holders of new stock receive divideads equally with the old stockholders. The Middletown and Middlesex County banks, of Middletown, and the Saybrook and Deep River banks, have declared semi annual dividends of four per cent each. The Rome Exchange Bank has:deolared a semiannual dividend of five per cent. The Bank of Albany has declared a dividend of fifty per cent on its capital, in stock, to its stockholders, who have nnanimously concluded to a cept the dividend in this form. This raises the capital of the bank from $240,000 to $360,000, and gives to each possessor of ten shares five in addition, and so in proportion. The value of imports into Boston during the fourth quarter of 1854, amounted to $9,468,289, against $8,523,208 for the corresponding quarter in 1853, showing an increase in 1854 of $945,081. An adjourned meeting of the General Railroad Convention will be held at the Astor House, on the 12th inst,, at 7 o'clock P. M. The warrants entered at the Treasury Department, Washington, on the 5th inst., were:-$2,123 33 For paying Treasury debts For the Customs 2,694 70 540 Covering into Treasury from mise. sources 191,790 20 For the War Department 208,314 09 For the Navy partment For the Interior Depar tment 17,387 97 The redemption of the public debt at the Treasury Department, Washington, for the week ending on Saturday, was as follows:-Loan of 1842, $9,500; loan of 1847, $42,400; loan of 1848, $29,000; Texan indemnity, $1,000-total, $81,900. The Detroit Free Press, in announcing the failure of Messrs. Howard, Leith & Co. of that place, says: What course of events has brought about the failure or suspension of this banking house, we are not well advised, though we have heard that it arises from the shortcomings of one of the members of the firm, or of the firm of Smith, Dwight & Co., in connection with lumbering operations in Ohio-the two firms being, as we understand, one concern. We have been informed, through another source, that such provision has been already made as will save depositors from loss. Mesers. Howard, Smith & Co., owned the Government Stock Bank at Lafayette, Indiana. This suspension will affect the value of its circulation, which amounts, however, to only about twenty thousand dollars. The stocks pledged for the ultimate redemption of this circulation are not sufficient, at the present market rates, to take it all up-not more, probably, than two-thirds or three quarters of it. The bills were purchased by some of the brokers yesterday at seventy-five cents on the dollar. The coal tonnage on the Reading Railroad last week, was 23,779 tons, making for the current fiscal year, 119,094 tons, against 120,683 tons to corres ponding time last year. We hear of no change of prices, but should the present mild weather com,

2. January 9, 1855 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, January 9, 1855

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91 614'08 *********38*4 18%) unuous Supproisation Increase % SLO IS The Middletown and Middlesex County Banks, of Middletown, and the Saybrook and Deep River Banks. have declared semi annual dividends of four cent each. The Rome Exchange Bank has declared & semi-annual dividend of five P cent. On the 19th inst. an adjourned meeting of the General Railroad Convention will be held at the Astor House, at 0 "clock, P. M. We have received a rumor. unofficial, that Messrs. Belcher Bros. of St. Louis, have made an assignment to three Trustees, of whom Mr. Bacon Page & Bacon) is one. Another failure in connection with this disaster is daily looked for. Messrs. Stanton & Wilcox, stock brokers, have been forced to suspend payment. They have generally operated for & fall, and have heretofore been very successful. Their embarrassment now is owing 1 Dateq suvour their go ;unours [v] $104 8.01 up in the Saratogaand Sacketts Harbor Railroad project, of which they were the main supporters. They anticipate being able soon to meet their engagements. The New-Haven Journal records the suspension of Messrs. Capron & Lathrop, of Griswold,Conn., manufacturers Their failure was caused by indorsements for Hill & Carpenter of Providence, R. I., to the amount of $40,000. The card of Messrs. Howard, Smith & Co., in the Detroit papers, announcing their suspension, states that they will be able to pay all their liabilities in fall at an early day. The Detroit Free Press says W hat course of events has brought about the AJR BM "esnoy sign 10 goisuadens 10 not well advised though we have heard that it arises from the shortcomings of one of the members of the -noo u! "" y Suith 10 may jo 10 mig ONE 041-0190 n! Suprequin] que поцоэн e M concern. 940 0.M SB Sureq surig have been informed. thr ugh another source, that GAUS IIIM BR open useq suq yous depositors from loss. Messis Howard Smith & Co. owned the Government Stock Bank at Lafayette, Indiana. This suspersion will affect the value of its circulation, which 810 unts, however, to only about twenty thousand dollars. The stocks pledged for the ultimate reeq: 18 you are sign jo nondwarp present market rates, to take it all up-not more, probably, than two-thirds or three quarters of it. The bills were purchased by some of the brokers yesterday at seventy-five cents on the dollar. Some of the parties interested in the affairs of Messrs. Wadsworth & Sheldon are in town from the West, and represent that it is feared the failure will be a very disastrous one for many houses in Illinois, although at first the susper was only looked upon as temporary. The Chicago Democrat says: This disaster has been anticipated for some time; sing n! esney the jo em 10 emos pus bard Supuadure SW.M 1! 1891 day 'Ano prepared for it by ithdrawing their funds. This house was one of the New York correspondents of the Exchange Bank of this city, and the agent of the Galena Railroad; but of the position of the present pesions you 9.19 OM weq: between relations The Marine Bank also kept an account with this sento 01 dn persod q8nour SEM 779 "esnoq the balance between them to be about even on NewYear Day. The Springfield papers state that the State is 80 cured by a bond with ample collaterals. Samuel M Blatehford, Esq. resigned the Treasurership of the Harlem Railroad Co., to accept that of the Chicago and Mississippi Co. The vacancy, as we stated some days since, has been filled by the election of Wm. B. Draper, Esq. The Board of Directors of the Harlem Road, upon the acceptance of the resigent passed 1 PN Jo подва following resolution: Resolved That the thanks of this Board be, and the same are em 103 IN consuage 01 personal Agarey my eq JOB us V 10) which pue TIME service eq pus !soup pas 819 -DOO dispuoy am поров 10 resears Men 810 or uny fidence and good wishes of the Directors of th Company. In the Senate of this State, Mr. Brooks has inIII 1849' ' Jo 108 our pueurs 01 189 B peonport 01 SU 08 Required Persua eq: Superodico permit the Company, in addition to the amount limited by said act, to borrow from time to time such sums as may be necessary to arry out the objects of their charter, provided the whole capital of the Company shall not exceed the sum of $7,000,000. For the imbursement of any amount that may be, or may have been borrowed, the Company is au thorized to issue bonds, and to mortgage any part of the property and privileges of the Company to secure the bonds. The Directors may confer upon the holders of any bonds the right to convert the same into stock at any time, not exceeding five years from the date of said bond, whenever any person holding a bond shall elect to convert the same into stock. The Directors of the Michigan Central Railroad have adjourned to Wednesday, without any decision on the subject of the dividend. The drafts drawn by Lucas & Simonds, of St. Louis, by Rhodes & Co., Read & Co. J. B. Buder & Co., and Lucas, Turner & Co., of San Francisco, and by the Alton Bank, on Messrs. Wadsworth & Sheldon, will be paid by the Metropolitan Bank. -10 MeN 07 1008 85.46 play III 000'0028 Surunday "O leans for the Canal Bank, and another $200,000 will "uoos of The stockholders of the Ontaria Lead Company hold a meeting on the 20th inst. A meeting of the tockholders of the Albion Mining Company will be held on the 31st inst. The annual election of Directors for the Breckenridge Coal Company will take place on Tuesday, 9th inst. The Williamsburgh City Bank has declared a dividend of 5 V cent., payable on the 10th inst. The Ohio Life and Trust Company has declared a Mebruary THE am uo dayable 000 4 is 10 purplaip The majority report of the Committee of the Board of Brokers, on the subject of contracts in Parker Vein

3. January 19, 1855 Indiana American Brookville, Indianapolis, IN
Article from Indiana American, January 19, 1855

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sixteen. Did that widower run from that widow, last Saturday That is the question. Walter Mitchell, Esq., of White Water township, refuses to take stock money entirely He is sensible We are sorry that our friend Joseph Speer lost his pocket book and money on Christmas Thanks to Dr. Daily for the able addresses of Gov. Wright and himself, on the occasion of his inauguration 197 The Massachusetts Legislature has by vote, directed its clerks not to provide for themselves or members any but American stationery NY Howard, Smith & Co., bankers of Detroit, have failed. They owned the Government Stock Bank, at Laayette. A certain Doctor in town must have lots of sick folks under hischarge, from the number of times his door bell rings, especially after night. President Nutt, of Centerville, has taken charge of the congregation at Cambridge City, to which Rev. J. W.T Cullough was appointed. NT A bill has passed the Illinois House of Representatives by a vote of 51 to 21, abolishing the licensing of the sale of spirituous liquors. Dr. Daily says Gov. Wright has not withdrawn from the M. E. Church. He has only moved his membership from one church to another. The report that Dr. Daily had left the Methodist Church and joined the Church South is contradicted by Garber. We have been eating Brown flour long enough if we can do better. Or has flour got so high that no body makes good flour any more? NY The Assignees of Richard Tyner, have sold the store and dwellinghouse to Smead, Collard and Hughs, for 16,000.] Thanks to John S. Tarkington, Esq., Private Secretary to the Governor, for a copy of the Governor's message in advance of all other sources. NW The new Mayor of New York had the Sunday Liquor Law enforced in that city on Sunday last, and the consequence was, that but few drunken men were to be seen. MILTON GREGO says that he was not born in Franklin County, but at a very early period of his life, he was born at North Bend,'Ohio. He would make a good State Printer, nevertheless. The Plymouth Banner says that W. J. Burns, late of that paper, has bought the Madison Banner.Don't believe he will succeed, unless he has somersetted back again whence he started, on the Nebraska question. W. Allen Quick, the good looking Clerk at the Old Grind Stone Corner, is no Know Nothing inhis line He is particularly popolar with the ladies. and the editor, and other good looking people. The Ericans have been acting the fool again in tearing up!. the] rails near their home of thieves. At latest dates a special sheriff, by order of the Supreme Court, was superintending the relaying of the track. A much needed improvement on the Oxford road, is being made, by going up the hill by an easy grade, just in front of Mr. M'Clures house. It will be ready for use early in the Spring. GARBER, of the Mad. Courier, complains that the Madison banks pay

4. June 11, 1855 The New York Herald New York, NY
Article from The New York Herald, June 11, 1855

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I Total $63,245,655 63,373,976 128,321 The cash receipts of the Morris Canal for the week ending on Saturday, 2d inst., were $8,816, against $7,570 for the corresponding work last year, being an increase of $1,276. The receipts for the year up to the 26th alt. were $51,312. against $45,458 to same date last year, being an increase thus far this year of $5,854. At a meeting of the Western Railroad stockhold ers, held on Tue day, the 5th inst., it was decided, by the large majority of two to one, not to accept the act of the Legislature which authorizes the company to issue six per cent bonds, to pay for the purchase of the Hudson and Berkshire Railroad, and construct a second track from Springfield to Albany. After this vote was decided, a reconside. ration was called for, on a "stock vote," and carried. The question or acceptance was then taken and decided in the affirmative. The Courier says:The opponents of this measure have used great exer. tionsto defeat it, but finding themselves in the minority, submit to the result in the cheerful spirit of true republicanism. doubtedly more The increasing. than c line un. formed without the completion of the second track, and the managers express the confident belief that there will be no curtailment of the regular dividends. The sinking fund already amounts to $30 per share, and the stock ought fetch par, including the July dividend. The state Treasurer of New Jersey has given no. nce that an injunction having been issued from the Court of Chancery restraining the Americau Exchange Bank at Cape May Court House from exerclaing any of the privileges or franchises granted under the State act, the notes will be redeemed at the Treasury office at Frenton. on and after July 20. The gross receipts of the Hudson River Railroad Company during the eight months ending May 31, 1855, amounted to $1,345,252 05, against $1,199,954 53 for the corresponding period the previous year, showing an increase of $145 297 52. The Newark Advertiser gives the following sy nopsis of the decision of the Chancellor of New Jersey in the case of the Morris and Essex Railroad. The company will probably appeal, as the points at issue are of the greatest importance:The Chancellor appears to have given much time and attention to the subject, which is not only important to this city, but of very general importance, inssmuch as it is deemed to settle the law in the case. The opinion, we are informed, is very erudite, and exhausts the subject. The court comes to the conclusion that no railroad company, in the absence of legislative permission, has a ight to lay its railway along any public highway, in town or country, with the consent of the proper authorities-it indeed, any other than legislative authority can effectually be given in the premises. If a company does, without such authority. thus lay down its track, the track becomes at once a public nuisance or obstruction to the street or highway, and as such may forth with be removed. The Chancellor, we understand, retains the injunction for a short time, to afford the complainants an opportunity to appeal from the decision, if they shall see fit to do so. The opinion and judgment of the court fully sustain the action of the city authorities in the matter and but . short time will elapse before the final adjudication of the matter will have taken place, even though an appeal be taken. Should no appeal be taken, however, in & rea. sonable time, the injunction will be removed. of course, and the Common Council permitted to remove the track. In this case it may be done, in fact, at the expense of the parties claiming to own the track, for it is provided, we believe, by section 5 of the ordinance, entitled "An ordinance to remove obstructions from the streets and for other purposes." that the Street Commissioner, Mayor. or any or either of the members of the Common Council, may order any article or thing whatsoever which they may deem an obstruction or nuisance in or upon any street of the city, to be removed, and if it be not removed forthwith, then to remove and seil the same, and out of the proceeds of the sale reimburse the city for the expense of the removal of the obstruction. We understand that the Chancellor has made no order yet to remove the track, and the city will not move fur. ther in the matter till official authority to do so is recoived. The receipts of the Beaver Meadow Railroad and Coal Company, since the commencement of the sea$54,429 58 son to the 2d inst, amount to 36,022 To correspending date last year $18,406 79 Increase (over 50 per cent) The coal tonnage for the past week was 14,641 tons, against 11,072 tons in the corresponding week last year. The State Auditor of Indiana notifies holders of the circulating notes of the Merchants' Bank at Lafayette, Merchants' Bank at Springfield, Greene County Bank at Bloomfield, Government Stock Bank at Lofayette, Laurel Bank at Laurel, Bank of Connersville at Connersville, Wabash Valley Bank at Logansport, Bank of T. Wadswortb, of Hartford, at Michigan City, to return the same to the office for cancellation, on or before the 15th day of July next, that the outstanding circulation may be determined as accurately as possible, and a pro rata dividend thereon declared. Certificates for the amount returned will be issued, and the dividend on the respective banks paid upon presentation of the certificates at the Auditor's office, after the 15th of August next. The Lancaster Daily says, in relation to the failure of the Lancaster Savings Instititution, through its Treasurer, Mr. Boughter:The amount of defalcation is reported to be $300,000. Before his arrest Mr. Boughter had assigned over to the trustees all his real estate and other property, amounting in value to $120,000, leaving an unbalanced deficit estimated at $180,000. The capital stock of the institution was $50,000, all paid which, taken from $180,000, leaves $130,000 to be lost by the depositors. The depo. aits are set down at $550,000; and from this statement it is estimated that the depositors will realize from 75 to 80 per cent on their deposits. Some seem inclined to believe that they will eventually realize the whole, and that the institution will be again put into operation. The Auditor of the State of Obto has just issued his report for the last fiscal year. The revenue and expenditures were as follows:-FINANCES OF OHIO-RECEIPTS AND DISBURSEMENTS. Receipts. Taxes of 1853, and delinquencies of pre$2,851,571 vious years. 477,264 26 Canal tolls, fines, water remts, &e 39,813 13 Dividends on railroads and other stocks 106,250 82 Surplus revenue-principal and interest 149,748 51 Proceeds of sales of school lands 93,455 Other sources 762,830 57 Balance in State Treasury Nov. 15, 1853