6225. Bank of Rensselaer (Rensselaer, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 1, 1854*
Location
Rensselaer, Indiana (40.937, -87.151)

Metadata

Model
gpt-5-mini
Short Digest
ea230b52

Response Measures

None

Description

Article 1 (1854) lists the Bank of Rensselaer among Indiana banks 'reported broken.' Article 2 (1861) explicitly states the Bank of Rensselaer suspended specie payments and that state deposits were transferred as a result. There is no clear description of a depositor run prior to the suspension in the provided text, and the bank is described as effectively insolvent/broken, so I classify as a suspension that resulted in closure/permanent failure. Dates of suspension are not explicitly given in the excerpts.

Events (2)
1. November 1, 1854* Other
Newspaper Excerpt
Bank of Rensselaer. Capital $500,000 total circulation $114,000. ... From the report ... those banks which are reported broken, extracted from the report of the Auditor of the State.
Source
newspapers
2. * Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension of specie payments due to the bank's deteriorated solvency/insolvency (bank described among those 'reported broken').
Newspaper Excerpt
Upon the suspension of specie payments by the Bank of Rensselaer, the deposits the were transforred by Mr. Nofsinger to Farmers' and Mechanics' Bank at Indianapolis.
Source
newspapers

Newspaper Articles (2)
1. November 7, 1854 Minnesota Weekly Times Saint Paul, MN
Article from Minnesota Weekly Times, November 7, 1854

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Article Text

FRANKLIN AND HIS CREW.From official information which we publish to-day, there no longer exists a doubt but the fate of the North-West Pas. sage explorers are forever sealed-they have been starved to death! In imagination we see them, pale and emaciated, wandering over the polar seas vainly searching for food, with no human eye to pity and no arm to save. At last nature's tired frame can no longer endure the pangs of hunger, and gently they lay them down on their cold beds and resign themselves into the arms of death.Perhaps as they closed their eye-lids visions of home, kindred, friends swept before them-perhaps they were once more in the midst of the family circle with their wives and little ones, and the fire blazed warmly on the hearth. Then, the vision vanished, and the awful reality crowded upon the brain that they must die! But why should we picture the scene? It is vivid enough in the minds of all. last fitful fever's o'er and they sleep well." Let them rest calmly in their icy graves. History will record their heroic efforts to discover the North-West passage, and thereby open new fields of interest to the civilized world. THE INDIANA BANKS. There is so much said now-a-days respecting the solvency and insolvency of the State Stock Banks of Indiana, that we give the following schedule of those banks which are reported broken, extracted from the report of the Auditor of the State. We think the bills of most of the Indiana Banks are good, and that the present panic will soon subside, still it would be well for our citizens to keep as much of the money out of their hands as possible-this is the safest course. Those who hold bills on those Banks not known absolutely to be broken, need not give themselves any alarm. By holding on they will be obliged to sacrifice no more than they will be by allowing the brokers to shave them. But hear what the Auditor says: Bank of Connersville. Capital $1,000,000: total circulation, $517,681. Secured by Indiana 5 and 21-2 per cents, and Ohio 6 per cents. Elkhart Co. Bank, at Goshen. Capital $500,000; total circulation $320,000. Secured by North Carolina 6 per cents, and Louisiana 6 per cents. Bank of Rensselaer. Capital $500,000 total circulation $114,000. Secured by Pennsylvania 5 per cents and Louisiana 6 per cents. Bank of America, at Morocco. Capital $500,000; total circulation $49,218. Secured by Pennsylvania 5s and Indiana 6 per cents stocks. State Stock Bank, at Jamestown. Capital $600,000; total circulation $337,000. Secured by Virginia and Ohio 6 per cents. Bank of Attica. Capital $300,000; total circulation $144,479. Secured by Indiana 5 per cents and Virginia 6. per cents. Northern Indiana Bank, at Logansport. Capital $200,000; total circulation $100,000. Secured by Indiana 5 per cents and Missouri 6 per cents. Western Bank, at Plymouth. Capital $200,000; total circulation, $100,000. Secured by Indiana 5 per cents and Virginia 6 per cents. State Stock Security Bank, Newport. Capital $250,000 total circulation $100,000. Secured by Indiana and Penn. 5s and Virginia 6 per cents. Drover's Bank, Rome. Capital $250,000; total circulation $49,798. Secured by Indiana 5 per cents. State Stock Bank, Marion. Capital $600,000; total circulation $75,000. Secured by Louisiana and Virginia 6 per cents. Public Stock Bank, Newport. Capital $200,000 total circulation $109,314. Secured by Indiana 1-2 and 5 per cents. Hosier Bank, Logansport. Capital $200,000; total circulation $49,985. Secured by Missouri and Louisiana 6 per cts. From the same report, says the Madison (Ind.) Daily Banner, it appears that the aggregate capital of the free banks is $32,900,000, and the total. circulation $7,426,067. Herewe have a " capital of nearly four and a half to one of debt," and yet the public must be shaved from two to ten per cent. on the paper of these banks.

2. March 21, 1861 The Richmond Palladium Richmond, IN
Article from The Richmond Palladium, March 21, 1861

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Article Text

State Affairs. TREASURER NOFSINGER AND THE MAY, AND DRAKE BILLS OF EXCHANGE. item of the the State consisted of certain A large suspended protested debt James of exchange. to which Allen May, P. Drake, and Michael G. Bright were par ties. will endeavor. within as narrow as we can, to state the which led to the execution of compass We the transactions paper thereto. in question, and our action in regard the When Mr Nofsinger entered upon his duties of Treasurer, he received from State, predeces-or, as funds belonging to the two certificates of deposite One of them was issued by the Bank of Rensselaer, pay able at sight in the sum of three thousand other one hundred dollars, (83.100) The the was upon the Br net at Lafayette of State of Indiana. It had been issued shortly before the expiration of Mr Newland's months term of ffice, and was payable in six after date, in the sum of nineteen thousand and five dollars and four cents, (819005,04) Upon the suspension of specie payments by the Bank of Rensselaer. the deposits the were transforred by Mr. Nofsinger to Farmers' and Mechanics' Bank at Indianap olis. The latter institution was at that time in good repute, had uniformly redeemed its circulation, and was regarded as a secure depository The certificate of the Branch Bank has been originally issued to Col. May, and the on falling due, Mr Nofsinger informed officers of the bank that he desired to have it paid in exchange on New York. This was declined except as to a part of the amount, and there is reason to believe that they conceived that the bank had a valid set off for the remainder, growing out of sub- an indebtedness contracted by Col. May, seqently to the date of the certificate Col May furnished, in lieu of the certificate, exchange on New York, and it was the intention of Mr. Noisinger to apply such the exchange in the purchase of bonds for Sinking Fund. Upon consultation with Gov. Wright, and the other State officers, it was deemed inexpedient to make such an investment, in view of the exhausted con dition of the Treasury and the large amounts that had been so applied by Mr. Newland. The united opinion of the officers of State was in favor of the application of the proceeds of such exchange towards the liquidation of the interest of the public debt, falling due in January, 1856. At that time, the funds in the Treasury banks consisted of notes issued by our own been and those of other States They had paid in by the respective county Treasurers, ho had received them in the collection of taxes. Such paper had formed the largest There element of our circulating mediumwas a growing distrust of the stability of of those banks and of their ability to of many redeem their circulation. No institution undoubted resources and high credit doubtful !would receive on general deposit, such a and depreciating currency. With it, exchange upon New York could only be pur- rechased at an exhorbitant premium, and taining it in the Treasury seemed likely to involve a heavy loss to the State. As the proceeds of the exchange were not needed until January, 1856, Mr. Nofsinger would have been compelled to deposit them in New York until that date. At this time. Mr May proposed to sell Mr. Notsinger bills upon New York, maturing in December. 1855. The proposition was accepted The bills were delivered, bearing date some time in September, 1855. The consideration therefor was the bill of exchange above referred to, the deposit in the Farmers' and Mechanics' Bank, and currency The latter was taken at its par value and the bills were purchased on advantageous terms to the Treasury. A few days before they fell due. Col. May called that Dr. Nofsinger and informed him and from upon the sudden fall of State stocks produce, in both of which he was largely interested, his credit was utterly prostrated it home and at New York, and therefore at was out of his power to pay those bills at maturity He stated further, that he Drake had placed his property in the hands of and Bright to pay those bills and other debts, for which they were liable, as his sureties. He appealed to him, in view of these facts to renew them, as well upon his own account, as that of his endorsers, and a as a reason therefor, that he had urged, thousand head of cattle. which he would put in condition for the June market of the of following year, and from the proceeds the sale of the same, meet the renewal bills in time for the payment of the semi-annual interest in July, 1856. His assurances had been as positive when the original bills were made, that they should be met, but Nofsinger knowing him to have the cattle. and again confiding in his promises, and believthat they could not sooner be collected the ing by suit, consented. In the renewal, old bills were consolidated into two, and the interest accrued added. The new bills were dated the 24th and 25th of December, 1855, and were drawn by M. G. Bright and J. P. Drake, to the order of Allen May. and by him accepted, Cornpayable in six months at the office of ing & Co, New York City. One was for twenty thousand dollars, and the other for ($27,195 45) twenty's en thousand one hundred and nienety-five dollars and forty five cents. NotwithstandS the reiterated assurances and declarations ing of May. the renewal bills were protested for non-payment. Mr. Nofsingersays that upon the occurrence in the first Court of jurisdiction. But his resolution again yielded the sale of his cattle had not been consummated, yet a contract for sale had been made and was then subsisting, and would be carried into effect in time for the S January interest of 1857, on the State debt. The argument prevailed and Nofsinger. upon the faith of a fresh promise, resorted to no measure to enforce the payment of them. it After the repeated defalcations of May, will excite no surprise that the bills were met. at the time s'ipulated. When or a the cattle were sold is of ly to this inquiry. consequence not where bills The but avails little the e' 1852 and (87 969 49) only paid the interest on the up to