5985. Gramercy Bank (Lafayette, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 23, 1857
Location
Lafayette, Indiana (40.417, -86.875)

Metadata

Model
gpt-5-mini
Short Digest
944c911a

Response Measures

None

Description

Contemporary articles report Gramercy Bank 'suspended payment' and made an assignment for the benefit of creditors (i.e., effectively closed/placed in receivership). Causes mentioned include suspension/embarrassment of correspondent banks (Erie City Bank, Bank of New Castle) and speculative losses/fraud by owners; primary immediate cause in one dispatch is failure of correspondent banks. Deposit securities were removed from the Auditor's office amid allegations of fraud. Date of suspension inferred as 1857-01-23 (paper dated 1857-01-24 says 'suspended yesterday').

Events (2)

1. January 23, 1857 Receivership
Newspaper Excerpt
The Gramercy Bank suspended payment yesterday, and made an assignment ... to George Gardner and Theodore F. Goodman, for the benefit of its creditors.
Source
newspapers
2. January 23, 1857 Suspension
Cause
Correspondent
Cause Details
Immediate cause given as suspension of the Erie City Bank and embarrassment of the Bank of New Castle; articles also cite speculative losses and fraudulent management by owners.
Newspaper Excerpt
The Gramercy Bank suspended payment yesterday, and made an assignment, we understand, to George Gardner and Theodore F. Goodman, for the benefit of its creditors.
Source
newspapers

Newspaper Articles (6)

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.


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.


Article from Indiana American, January 23, 1857

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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.


Article from Daily Iowa State Democrat, January 24, 1857

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# SUSPENSION OF THE GRAMERCY BANK. -The Gramercy Bank suspended payment yesterday, and made an assignment, we understand, to George Gardner and Theodore F. Goodman, for the benefit of its creditors. The immediate cause of the failure was the suspension of the Erie City Bank, and the embarrassment of the Bank of New Castle. The Gramercy was established in our city under the Free Bank law, some four years ago, and in its management had gained the good will of our business community.-Laf. (Ind.) Journal. This is one of the greatest swindles of the day. The owners of the Banks a few days before they failed, applied to the Auditor of the State of Indiana for the loan of the stocks deposited with him as a security for the notes, and that officer loaned them. The Bank immediately closed, and its owners decamped. That Auditor ought not only to be dismissed, but if possible should be held responsible for the securities,-We need hardly add that he is a "Republican,"-Chicago Times.


Article from The Cadiz Democratic Sentinel, January 28, 1857

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# NEWS ITEMS. It is said that Santa Anna is intrieguing with Spain to place a Spanish Prince as Monarch over Mexico. We learn that the Farmers and Mechanics' Bank of Indianapolis has failed. For the year ending March, 1856, the tax on dogs in England yielded about one million dollars. Ex Governor Shannon has removed from Ohio to Lecompton, Kansas, and opened a law office. A Mr. Alexander, of Woodford, in Kentucky, recently paid $15,000 for the celebrated race horse, Lexington. The Etna Fire insurance Company has declared a semiannual dividend of 5 per cent., payable on the 15th ult. The new Post Office, at Cincinnati, opened on the 12th inst., contains over twenty-seven hundred boxes, at three, five and six dollars per year. The Toledo Times says they are sinking a well in that city which will be 2,500 feet deep. It will be the deepest well in the world. Sing Sing Prison is at present the hom of about nine hundred prisoners, of whom about eight hundred are men and boys, and nearly one hundred are women. MONTRELIER, January 15. Samuel Prentiss, Judge of the U. S. District Court of Vermont, and for many years, U. S. Senator, died here this morning. Francis S. Edwards, of New York, is said to be the member of Congress who offered Mr. Paine $1,500 for his vote. He is a Republican-Know Nothing in politics. A man named Lyons, who said he was from Wheeling, was found lying on the ice of the Ohio, near Steubenville, on Sunday night, nearly perished from freezing. The Philadelphia North American says that within the limit of three blocks on Third street, in that city, $24,000,000 worth of goods was sold during the last year. Mr. Grosvenor, a stock actor at the Broadway Theatre for several years, recently married a daughter of the celebaated Robert Schuyler. So says the Boston Post. WILMINGTON, January 14. The Democratic members of the Legislature met in caucus last night and nominated the Hon. James A. Bayard and Martin W. Bates for United States Senators from this State. The Louisville papers say the last bushel of coal has now disappeared from the coal yards, and the suffering among the poor for want of fuel is very great. A FORMER TIME. Distinctly marked tracks of men, birds and animals, all of gigantic size, it is said, have been discovered recently at Barnesville, Ohio, which have caused much curious speculation. We learn that the Ohio and Mississippi rail road will be entirely completed by the first of March. Cars will run directly through from Cincinnati to St. Louis on that day. UP-HILL LEGISLATION. -The St. Louis Democrat says the price of board at Jefferson City, Mo., is raised this winter to $30 a week. The pay of the members of the Legislature amounts to only $21. An article on education in France, published in the Constitutional, states that in the year 1855, more than 400,000 young girls-850,000 children from six to thirteen years of age, received no kind of instruction whatever. The Elitors of the State are under many obligations to the Editors of the Mansfield Herald, and the Mansfield Shield and Banner, for the attention and kindness bestowed upon them, during the late Convention. The Washington correspondent of the New York Tribune mentions a singular fact. He says: "The President gives a farewell dinner to-morrow to the whole diplomatic corps and their families, the ladies of which are all American but one." A Washington letter states that Mr. Cad-mowalader, member of Congress from Philadelphia, who recently made a speech against Know-Nothingism, was shot at in the evening while walking on 14th street, and the ball passed close to his head. FATAL DUEL. It is reported that a duel took place on Saturday weeek, near Columbia South Carolina, between Messrs. Bryan and Pope, two members of the House from Charleston. At the first shot Byran was killed, and Pope shot through the thigh. ST. LOUIS, Jan. 19. The Territorial legislature of Kansas was organized on the 12th. Thomas Johnson was chosen President of the Senate and W. G. Mathias Speaker of the House. The Governor's Message was to delivered on the 13th, NEW FIBM. The proprietorship of the Monroe House, says the Wheeling Argus, has been changed, by the inception of a gentleman named Heslip. The firm is now Barrett & Heslip, and both gentlemen being experienced in the business, the house cannot fail to transact even an increase upon its old and well established business. HONZ WMA CORRY. We understand, saye the Statesman, that this gentleman, whose illness we alluded to some days ago, is labouring under an attack of small pox. We hope Mr Corry will early recover from this most painful disease, and resume his seat in the House, where he can so illy be spared. CHICAGO, Jan. 17. Several city banks yesterday threw out the notes of the People's Bank Carmi, Rushville Bank, Prairie State Bank ane Washington Stock Security Band and of Danville, all Illinois. The latter is partially secured by California bonds. Others owned by Gramercy Bank, Lafayette. Total circulation $825,000. Securities $900,000


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.