State Bank (New Brunswick, NJ)

Episode Information

Episode Type
Run → Suspension → Reopening
Start Date
September 25, 1873
Location
New Brunswick, New Jersey (40.486, -74.452)
Bank Type
state

Metadata

Episode ID
Bank ID
City ID
340878725
Model
gpt-5-mini
Short Digest

Events (3)
1. September 25, 1873 Run
Cause
Bank Specific Adverse Info
Cause Details
Defalcation/unauthorized large loan by cashier Greenleaf W. Appleton to R. N. Woodworth led depositors to withdraw large sums (reports cite $250,000+ withdrawn).
Measures
Directors/stockholders pledged funds and arranged to provide currency; stockholder subscription drives to cover deficits.
Newspaper Excerpt
Besides, its directors represented many millions of dollars. In case a run should be made on the bank to-day arrangements had been made to provide for it.
Source
newspapers
2. September 25, 1873 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Payments suspended after discovery of large misappropriation by the cashier (estimates $225,000–$500,000) and consequent heavy withdrawals.
Newspaper Excerpt
NEW BRUNSWICK, N. J., September 25.—The State Bank of New Brunswick suspended to-day.
Source
newspapers
3. November 7, 1873 Reopening
Newspaper Excerpt
The State bank of New Brunswick, New Jersey, has resumed.
Source
newspapers

Newspaper Articles (23)
1. September 5, 1873 The New York Herald New York, NY
Article from The New York Herald, September 5, 1873

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MORE BANK "IRREGULARITIES." An Old Jersey Bank Troubled Over $200,000-Most Accommodating Cashier-One Customer Allowed to Overdraw Enormously-What the Bank Officers Say. In 1813 the State Bank of New Brunswick, N.J., was established under a charter of the Legislature. Ever since the conduct of its officers has been such that its paper throughout the State has long been quoted as being as good as gold. There is not a bank in New Jersey which holds a higher rank for fair dealing and stability than "the old State" of New Brunswick. Hence it can easily be understood how great an agitation was occasioned in financial circles across the Hudson yesterday when the rumor spread that the old institution had been LET IN FOR TWO HUNDRED THOUSAND DOLLARS. and that, too, by its honored and trusted cashier, Mr. Greenleaf W. Appleton. The rumor reached Newark early in the day, but, while occasioning a great deal of talk in financial circles, caused no excitement. as it was well known that the bank had a surplus fund fully large enough to meet even so huge a discrepancy as the one reported. All sorts of stories noated around as to the character of the defalcation. One had it that Appleton had lately been keeping a stud of horses and a costly house on a salary of $3,000 or $4,000. Another was to the effect that the directors let him run the bank to suit himself, and he did, and his personal friends, too. In order to get at the true state of affairs a HERALD representative visited New Brunswick last evening about six o'clock, and struck out at once for THE FOUNTAIN OF TRUTH, the old bank itself, which is located at the corner of Albany and Peace streets. Just as the HERALD man arrived some of the directors, who had been holding a consultation, were preparing to go away. The former made himself known to the acting cashier and expert, Mr. J. U. Underhill, and stated his desire to obtain the facts about the alleged defalcation. and not be obliged to accept hearsay. Mr. Underhill looked very mysterious at first, but finally, without giving any reply, started off to hold a private conference with director Janeway as to whether he should open up or keep mum. Presently he returned and opened up after a fashion. At first he seemed to be afraid to say more than a word or two, but subsequently put aside his reserve and spoke out freely. Mr. Underhill stated that there had been going on AN INVESTIGATION of the bank's books even since last Saturday, when Cashier Appleton was suspended, and it was not possible to say exactly how matters stood. The only charge against Appleton was that he a had in an unaccountable manner allowed customer, Mr. Woodworth, President of the New Brunswick Carpet Company, to OVERDRAW HIS ACCOUNT $200,000. So far there was no evidence to show that Appleton himself had wrongfully appropriated a dollar. He and Woodworth lived near each other, and so were very intimate. Appleton kept one horse, and that was the extent of the "stud" rumor gave him. The amount overdrawn, Mr. Underhilll said, was covered by real estate securities of Woodworth, so that it was not possible that the bank could lose a dollar by the operation. Besides, its directors represented many millions of dollars. In case a run should be made on the bank to-day arrangements had been made to provide for it. The capital stock is $250,000 and the surplus about the same. Appleton entered the bank as bookkeeper five years ago. and two years ago last April was made cashier, and gave such thorough satisfaction that soon he ran the bank entirely to suit himself. without let or hindrance of the other officers. It appears that while he lived well and comfortably, that he was not extravagant nor ostentatious. He declares that beyond the overdraw everything will be found correct, and that that also will be satisfactorily explained. He is thirty years of age, or so, and has a wife and one child. He has many warm friends in the town. The story that the investigation was started while he was off on a vacation is pure fancy, as he has been away nowhere yet this year. The officers of the bank are John R. Ford, President: Henry Richmond, Vice President; Directors, Henry J. Janeway, Abraham and Ira C. Voorhees, John V. Bergen, Gustavus Anten, John Clark, Garret Conover, Clifford Morragh, Christopher Myer, James Bishop and J. H. Hutchings. President Ford and Messrs. Myers and Bishop are now in Europe.

2. September 26, 1873 New Orleans Republican New Orleans, LA
Article from New Orleans Republican, September 26, 1873

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WHOLE NUMBER 1986. are on the way, which are expected to arboat and received the official decision of rive to-morrow. race: Brown and Biglin then rowed There is hope that the greenback strinward the shore together, and were recei gency will be over by Saturday morning, with cheers. In answer to the question if not sooner. The entire outlook is more a bystander Biglin acknowledged it wa fair beat. bright, and there is reason for saying that the temporary derangement of our financial houses will be of brief duration. ENGLAND The run on the savings banks has stopped and no new movement of the kind is The Madrid Government Demande threatened. The Secreity Trust Company Seized War Vessels. are maki arrangements to resume. The LONDON, September 25.-It is repor officers say they expect to open by Monday that a note has been received at the Fore next. Office from the Spanish government, urg The Lawrence Savings Bank. which susthe immediate restoration to the Mad pended yesterday. will resume in 2 few authorities of the frigates Victoria a days. Almanza, detained at Gibraltar. It is a Nashville. said. the relations between the two pow NASHVILLE, September 25.-The national will be ruptured if the British governm banks of this city, four in number, in view declines to release the vessels. of the present state of affairs. have agreed Captain Buddington and Party Sailed to suspend currency payments on all balHome. ances exceeding $200. Captain Buddington and compani The Board of Trade. at a full meeting to. sailed for America Tuesday in the stear day. unanimously approved of the course City of Antwerp. Several stean lines of the banks and adopted a resolution refered the party a free passage. questing that merchants and business men Bullion. would continue to deposit with and aid the banks by every means in their power. A The steamer Scandinavian, which general good feeling prevails among busiLiverpool to-day for Quebec. took $500. in bullion. ness men and there are no symptoms of a panic. A Persian Railway. Detroit. The cevemony of turning the first sod DETROIT. Mich. September 25. - Two the first railway in Persia took pl bankers in this city failed to-day. recently at Reshd. in the presence of Charleston. leading Persian officials and foreign suls. CHARLESTON. September 25.-There is no run on the banks here. The Freedmen's Savings Bank exacts sixty days notice be. FRANCE. fore paying its depositors. the other banks pay as usual. No Aid to the Carlists. Selma. PARIS, September 25.-The perman SELMA, September -The Savings Bank committee of the Assembly had a sitt has suspended. Its assets are belived to be to day. The Duke De Broglie was prese ample to meet all liabilities. In reply to an inquiry of a Republic Boston. member of the committee the duke.sta BOSTON. Septempher 35.-The course of that the government would not permit the banks is simply conservative; loans have armament of Carlists in France. He a been reduced. but the urgent wants of busisaid he had as yet received no compla ness are met. from Spain with relation to the alleged P New Brunswick. sage of the Carlist chief Seballos throu French territory. NEW BRUNSWICK. N. J., September 25.The State Bank of New Brunswick has Proposed Action of Republican Deputi failed. A meeting of the Conservatives was h

3. September 26, 1873 Elizabeth Daily Monitor Elizabeth, NJ
Article from Elizabeth Daily Monitor, September 26, 1873

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A BANK RUINED BY DEFALCATION. The announcement that the State Bank of New Brunswick, had suspended created a stir yesterday. It had been rumored that Greenleaf W. Appleton, the cashier, was a defaulter. It is now conceded that he has misappropriated over a quarter of a million. Appleton was born in New Brunswick, and was about two and a half years ago promoted from teller to cashier of the bank. Soon afterward the New Brunswick Carpet company established a manufactory in the town, and opened an account in the State Bank. The carpet company were understood to have a paid up capital of three hundred thousand dollars. After a time R. N. Woodsworth, the President of the company, and Appleton became intimate, and the latter allowed Woodsworth to largely overdraw. The discrepancy assumed such proportions that the cashier falsified his books to cover his indiscretion. The bank deposited with the Park Bank, New York, and about three weeks ago drew upon it for seven thousand five hundred dollars. The draft was protested, and the directors learned that their balance had been prostituted by the cashier to the use of R. N. Woodsworth. Appleton was suspended, and John U. Underhill, an expert, was employed to investigate the concerns of the bank. The capital stock is $250,000, and besides the amount misappropriated by the Cashier, the depositors have since, learning of the defalcation, withdrawn $250,000. Yesterday morning the currency balance was exhausted, and payments were suspended. A number of the stockholders pledged themselves to pay the depositors in full. The reliance of the officers is in Mr. John T. Ford, the President, and Mr. Christopher Meyer, a stockholder. Mr. Ford returned from Europe yesterday, and the directors say that if he will advance thirty thousand dollars in currency payment will be resumed. If they obtain no assistance bankruptcy is seemingly inevitable. Efforts have been made to obtain the attendance of Mr. Woodsworth. He failed upon several occasions to keep appointments with the Examining Committee of the bank, and at their request Gov. Parker had granted a requisition

4. September 26, 1873 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, September 26, 1873

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have suspended operati buy cotton. The First National Bank paid out as usual, and there appears to be no serious run on it. The president will pay as long as there is a dollar of currency in the vaults. There is confidence that it will weather the storm. The suspended banks have ample as-ets, and will meet every dollar of their liabilities. A meeting of merchants has requested the banks to issue some medium to bridge over the present crisis. The banking house of John J. Cohen has suspended. Assets ample. ATLANFA GA. ATLANTA, September 25. The Dollar Savings Bank has suspended. Its securities are ample. SELMA, ALA. SELMA, September The Selma Savings Bank has suspended. The assets are believed to be ample. CHARLESTON, S. C. CHARLESTON. September 25.-No run on the banks. The Freedman's Bank exacts sixty days' notice. Other banks pay as usual. NEW ORLEANS. NEW ORLEANS, September meeting of all the bank presidents except two resolved to pay no checks of over $100. Larger checks will be certified. This lasts thirty days. CINCINNATI. CINCINNATI, September 25.-The Cincinnati Clearing-house Association has just adopted the following resolution Resolved, That for the protection of our commercial interests, and for the purpose of preventing a drain of currency from the banksand bankers of this city, we do hereby agree to adopt substantially the plan adopted in New York--viz.: they will not pay out currency on checks except for small sums. to be optional with the banks upon whom they are drawn: but they will certify checks drawn on balances in their hands, payable through the clearing-house only. Each member of the Clearing-House Association is required to deposit such sum in approved securities as will at all times cover the amount of his clearings. Government bonds are received at their par value. Rsilroad and other stock and bonds and bills receivable: are received at 75 per cent. of the value fixed on them by the committee, Balwhich can only be used in settlement. ances between the banks are not negotiable. Matters were in a condition on Change today to render it difficult to furnish quotations. There was no panicky feeling whatover, but there is a general- feeling to stand still on the part of buyers and sellers of everything. The action of the banks here was generally unexpected. The discussion of thissubject consumed time. Therearesome who believe the course not a wise one, but the prevailing opinion is that it was precautionary measure, justified by the obligation which the banks owe to the general business community. MEMPHIS. MEMPNIS, September 25.-The First Na tional Bank of Memphis has suspended. Later.-On account of the monetary panic and the run on all the bank<, two of which have suspended, business is almost entirely suspended. ST. LOUIS. ST. LOUIS, September 25.-It was decided last night at a meeting of brokers to suspend the payment of checks or drafts, either in currency or exchange, until the excitement in the East subsides. and the former condition of the markets is restored. BOSTON. BOSTON, September The course of the banks here is simply conservative. Loans are reduced, but the urgent wants of business were met. NEW BRUNSWICK, N.J. NEW BRUSSWICK, September 25. The State Bank of New Brunswick has failed. DETROIT. DETROIT, September 25.-Two bankers have tailed here. FURTHER FROM CHICAGO. CHICAGO, September 24 Although the day has been very quiet on 'Change, and prices of all grains have declined. there has' been a marked absence of excitement and continued feeling of confidence on the part of nearly all the members of the Board of Trade. Last evening there was some agitatiou of a proposition to close the Board for a day or two, but the movement amounted to nothing. The Board of Directors recommended to the membe rs that business be conducted on as conservative a basis as possible and efforts be made to adjust outstanding trades matu ring the present month on an equitable basis: that transactions be limited to the settlement of outstanding contracts and sales of property for cash, and that in ali transactions liberal and reasonable confidence be ex tended where the same would under ordinary circumstances be proper. Tlie recommendations were received with great expresstons of favor, and have been followed with great upantinity by members of the Board, so that there will by to-morrow night be very few outstanding trades to settle. There are now fewer outstanding trades to settle than at any time since the fire. Holders of cash grain are indisposed to sell at present prices, and this, together with an inability to negotiate exchange, prevents the filling of large orders for grain new here. There is general feeling of relief that the day has passed New York so satisfactorily, and renewed confidence in the ability of the banks and merchants of Chicago to come through all right. There have been no failures of merchants or grain dealers. The banks all went through the clearing-house to-day in good sliape, and there is almost universal feeling that the storm has passed by. CHICAGO, September 25 The Chicago clearing-house tias adopted the following resolution Resolvé That until further action, and in view of the disturbed condition of affairs in New York and other cities, and theidilliculty in converting balances into currency, and on the advice of the bank examiner, our members be recommended and authorized suspend currency payments on any large demands made upon them; either from the country banks or over their counters." [Bx Mail.] BALTIMORE, BROWN, LANCASTER & CO.-COMENTS OF THE ^PRESS UPON THEIR SUSPENSION-STATE OF TRADE, [Baltimore Sun 25th.] The only suspension is that of a private

5. September 26, 1873 The Rutland Daily Globe Rutland, VT
Article from The Rutland Daily Globe, September 26, 1873

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Suspensions. AT NEWARK. NEWARK, Sept. 25. The State bank at New Brunswick, N.J., suspended to-day. AT ATLANTA. ATLANTA. Ga., Sept. 25. The Dollar Savings Bank suspended today. It has ample securities. AT INDIANAPOLIS. INDIANAPOLIS. Sept. 25. The private banking house of Woolen, Webb & Co. has suspended, which occasioned a run on other banks, but all demands were met, and it is thought there will be no further trouble.

6. September 26, 1873 New-York Tribune New York, NY
Article from New-York Tribune, September 26, 1873

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IN NEW-JERSEY. SUSPENSION OF THE NEW-BRUNSWICK STATE BANK. NEWARK, Sept. 25.-The State Bank at NewBrunswick, (one of the oldest financial institutions of New-Jersey, suspended to-day, and it is said there is no hope of resumption. The failure, it is alleged, is not due to the crisis, but to the fact that the bank has been crippled by an unauthorized loan, made by the Cashier, Greenleaf W. Appleton, to a friend of his, R. N. Woodworth, President of the New-Brunswick Carpet Company, to carry on the business of the latter. The amount thus taken from the bank is about $225,000. It is said that Appleton and Woodworth, who are in New-York, will be arrested. In loaning the money Mr. Appleton accepted securities furnished by Mr. Woodworth, but these, it now appears, are worthless

7. September 26, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, September 26, 1873

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NEW BRUNSWICK, N. J. NEWARK, N. J., Sept. 25.—The State Bank of New Brunswick suspended to-day. This is the bank that was crippled by the irregularities of Appleton, its cashier.

8. September 27, 1873 Eureka Daily Sentinel Eureka, NV
Article from Eureka Daily Sentinel, September 27, 1873

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NEW JERSEY. NEWARK. Sept. 26. The State Bank of New Brunswick suspended to-dav. This is the bank which was crippled by the irregularities of Appleton, cashier.

9. September 27, 1873 The Rutland Daily Globe Rutland, VT
Article from The Rutland Daily Globe, September 27, 1873

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A number of stockholders of the State bank of New Brunswick, the suspension of which was occasioned by the defalcation of the cachier, have pledged themselves to pay depositors in full. Almost up to the last moment, depositors implicitly trusted the bank, and its trouble has thrown the town into a ferment.

10. September 27, 1873 Wilmington Daily Gazette Wilmington, DE
Article from Wilmington Daily Gazette, September 27, 1873

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Failure of n New Jersey Bank. THE STATE BANK OF NEW BRUNSWICK SUSPENDS-$250,000 MISAPPROPRIATED BY THE CASHIER. The announcement of suspension of the State Bank of New Brunswick, New Jersey, created a stir in that city at noon Thursday. During the last month the bank has been considered shaky, as it was known that Greenleaf W. Appleton the, cashier, was a defaulter in a large amount. His operations have extended over a year and a half, and it is conceded that he has misappropriated over a quarter of a million of the funds of the in stitution.

11. September 29, 1873 New-York Tribune New York, NY
Article from New-York Tribune, September 29, 1873

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adopted and transmitted to the Exchange in the follow" ing shape: THE REPORT. Garland, To Messrs. Baylis, King, Cutting, Chapman, and Committee of the New-York Stock Exchange: Associated Banks, GENTLEMENT At a meeting of the 11 o'clock held this morning at the Merchant ts' Bank at and the following resolutions were presented, approved, adopted To the Associated Banks, New- York City: The addressed Commit to whom was referred the communication the tee the New-York Clearing-house Committee from leave New-York to Stock Exchange, dated 24th instant, beg to report. The gravity of the subject and the high respectability Chapand intelligence of Messrs. Baylis, King, Cutting, deand Garland, who compose that Committee, a man, mand from the Committee of the Associated Banks the careful consideration of the points presented by Stock Exchange Committee. The first part of the communication is devoted to devising the means of makinz payments by action certifie of checks on banks, instead of greenbacks. The communica the Clearing-house on the very day the for all was received from the Stock Exchange provided Exchange that which the suggestions of the of the Stock therefore, Committee aimed to provide. It 18 obvious, that further comment on that point 18 unnecessary. for The Stock Exchange Committee suggest plan the adoption of the Associated Banks in the following terms, viz. The true plan in the present emergency is, with that those each clearances banks who were tent to make associated capital, other should, to the extent of their banks guarantee the payment of checks certified by the allowed to enter into the Clearing-house." the banks To your Committee this seems impracticable, who certification would be most desirable to all (whose and others) could deal with banks, merchants, brokers, payment be expected to voluntarily guarantee the not without reference to of checks of each and every bank control the amount, especially when they could have no corover the action of tellers, who might carelessly or could ruptly certify to millions more than the customer Banks, respond to particularly when the Associated action, not having it within their power to foresee such could never have security in hand to indemnify funds. them for such gratuitous hazard of their stockholders' the One of the safeguards set forth 18, that presbe made an hour earlier than bank ent." clearings This will shut out all the receipts from the morning and exchar mails which are now included in the delay in the the banks will consent to that of remittances. collection is not likely Indeed, it is far from that in law they would be instified in such change. The Committee say, also, that they would until possibly have to request the banks to remain open stocks, 30 o'clock if they change the hour of delivering to find out results of the clearings the previous The gentlemen order cannot fail to see that the adoption day of this change will lead to much derangement affairs which have been ruuning in grooves 80 long; esthe banks which have little noconpecially as many of Exchange, could nection with the operations of the Stock the not see why their business should be varied from cause. such from regular Associated course Banks are further requested to adopt resolution The that they will not for ten day aftert to loaus opening of the Stock Exchange call in any on the conbrokers which are sufficiently secured: but collateral trary will make new loans upon approved New-York the Bank Committee that the Stock It seems Exchange to Comm ttee could hardly have reflected in The banks their present on the full import of this condition are asked to make calling loans to the extent or their ability and to forbear those who are indebted to them. on Committee are quite sure that this proposition Your no comment, and they have only to add that requires hearties ishes to work in harmony with New-York with the Stock Exchange, whose action in closing the and keeping it closed the Bank Committe Exchange approve, they yet regret to say that the sugmost highly seem to your Comand modes of relief proj gestions mittee to look too exclusively to the nvenence and of the Stock Exchange without apparently comsafety prehending the extent of the dangers and inconve- Assoniences to which compliance would involve the ciated Banks, in all probability. JOHN E. WILLIAMS, Respectfully submitted. WM. JENKINS, R. H. LOWRY, HAYES. P. M. BRYSON. The Clearing-house banks finding that the $20,000,000 of loan certificates had been exhausted and that there was every prospect of a large demand for more authorized the Loan Committee to issue the additional certificates from time to time as circumstances might require. It is understood, however, that no further reports will be made public of the issue of such certificates. The banks made their clearances as usual in the The usual incident. special without morning statement of the Clearing house was not given, owing to want of uniformity in the returns, as publicly stated by Mr. Camp. At the meeting of the managers of the Hoboken Savings Bank Friday night no quorum was present. Charles Clinton, the President, told a reporter that the subject of the appointment of a receiver was not discussed, and confidence was expressed that the amount :posited with Fisk & Hatch would all be recovered. Several additional subscriptions were made on Saturday to the fund required to make up the deficiency caused by Secretary Klennon's defalcation. The statement of the State Bank of Brunswick has not yet been prepared. It is expected that a who receiver will be appointed by Chancellor Runyon, visited the bank on Friday with Gov. Parker. It is the understood that the visit was made at the request of Examining Committee, that requisitions should be issued for the arrest of certain persons W ho are accused of having been implicated in the defalcations, and who have fled from the State. The defalcation is believed to amount to nearly $500,000. Among the heaviest losers are John R Ford, the President, and Christopher Meyer, director, the former of whom advanced $200,000 and the latter $87,000 in securities. As previously reported, none of the banks would pay out legal tenders unless for pay-rolls of manufacturers In some cases when the pay-rolls were large the checks were not always cheerfully honored. In a number of instances checks certified and guaranteed as good by employers were paid to employés in lieu of legal ten This was because the bank officers had requested the ders. to use all the economy in of distribution the employers legal tenders, compatible with emtheir of and those their own help interes the banks through their present difficulty ployés, to the large workshops the men were paid In some of of their wages on account and appeared to be in portion satisfied. Herrings & Farrel checks, the safe greenbacks, manufacturers, and napaid their men partially J.B. & J. M. Cornell, iron founders, tional bank notes. corner of Tenth-ave., who employ in Twenty-sixth-st. men, paid them in legal tenders. Brewster & the carriageabout 600 paid their men. with few Co., portion of their wages on account, and do many like ceptions, firms of the same standing were forced to other Co., hat and straw goods manufaewise. Washburn corner of Canal and Elm-sts. paid large number tuters, female employe in currency, but were put of male and neonvenience by the banks refusing cash to checks some they held on country banks. The clothing house emDevlin & Co., Brooks Brothers, and others, who bled of hundreds clerks, eatters and tailors, were daily ploy them because they have been eiving large to pay amounts of currency from customers, and had reit for this purpose. served In the Workingmen's Lyceum, which met at Room No. 24, Cooper Union Saturday night, proposition are locked made up of currency, lack that wherea millions of bushels and of grain millions of eurrency are in the shut West up for by Eastern workingment in their pockets should and societies workingmen's reliable the savings banks, business the men for treasurers, put large choose their money in the hands of these treasurers, to say portion of them. Move this grain and other food pro and into our cellars and garrets to an amount sufficient duce Winter's use. Thus shall we supply ourselves for our food and unlock large amount of pro and with necessary greenback J. B. Hodgkins, Secretary of duce Atlantic and Great Western Railway, was suggested the friend of workingmen who would be fit man to be as funds to begin the work, and he was trusted with vited to address the ceum and the citizens generally next Saturday upon the remedies that should be adopted in this crisis. STOCK EXCHANGE GOSSIP. A PETITION TO HAVE THE STOCK EXCHANGE OPENED TO-DAY.

12. September 29, 1873 Elizabeth Daily Monitor Elizabeth, NJ
Article from Elizabeth Daily Monitor, September 29, 1873

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Gov. Parker, Chancellor Runyon, and the Directors of the State bank in New Brunswick concluded on Saturday that nothing could be done at present to resume business. A receiver will be appointed. The Meyer Rubber Company loses thirty-seven thousand dollars, which they had on deposit. According to the books the bank is debtor to the Carpet company one hundred thousand dollars. The defalcation is admitted to be five hundred thousand dollars. It is improbable that the bank will resume.

13. September 29, 1873 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, September 29, 1873

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RUIN OF A STATE BANK IN NEW JERSEY, The announcement that the State Bank of New Brunswick, N. J., had suspended created a stir on Friday. The suspension, it is alleged, was caused by the defalcation of the cashier, G. W. Appleton, to the extent of $500,000 to $600,000. It is charged that he was interested in a carpet manufactory, and allowed the concern to overdraw $300,000. The carpet company is also greatly involved. Appletor. is a native of New Brunswick, and, it is alleged, has fled to New York, and that Governor Parker, of New Jersey, has made requisition on Governor Dix, of New York, for him. Some reports say that Appleton has fled to Europe. Almost up to the last moment the depositors implicitly trusted the bank.

14. October 2, 1873 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN
Article from Memphis Daily Appeal, October 2, 1873

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MISCELLANEOUS. The Milwaukee chamber of commerce adjourned yesterday till Saturday, to enable wheat-buyers to accumulate curreney to pay for purchases. The Second national bank at Washington City resumed currency payments yesterday. Northrop & Chick, bankers of Wall street, New York, threw up the sponge yesterday, on account of heavy calls from western depositors. They have had no dealings with thestock exchange. A Philadelphia dispatch reports that at the request of the debtors, and by consent of the petitioners, the order requiring Jay Cooke & Co. to show why they should not be adjudicated bankrupts has been continued for a week. The Louisville clearing-house association dissolved yesterday by common consent, because of a lack of co-operatiou of the merchants. The Corehants' bank of Kentucky, at Louisville, ancounces that it will pay all checks on demand, as heretofore. A general improvement is quote in Kansas City, Missouri, financial affairs. The financial excitement has entirely disappeared from Atchison, Kansas. Thomas Kemp & Co., grocers of Baltimore, Maryland, suspended yesterday -liabilities, eighty thousand dollars; assets, sixty thousand do lars. The Danforth locomotive works, New Jersey, will place the employes in the foundry on half time, or work two gangs on alternate days. Forty employes of the Morris and Essex railroad, at Hoboken, were discharged yesterday, and about one hundred and fifty at other points, because of inability to obtain currency for disbursements. The stockholders of the State bank of Brunswick, New Jersey, held a meeting yesterday and heard the report of the examining committee. The export deficit amounts to five hundred and fifty-three thousand doilars. In addition to the entire capital of a quarter of a million dollars, the stockholders subscribed three-quarters of a million dollars, which insures the payment of the bank's liabilities and restores the capital of the bank. Business will be resumed immediately, and proceedings at once commenced against Appleton, the defaulting cashier, and R. W. Woodworth, president of the carpet company, as his accomplice.

15. October 2, 1873 The New York Herald New York, NY
Article from The New York Herald, October 2, 1873

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A WHOLE CITY MADE GLAD. The State Bank of New Brunswick, N. J., Saved. Public-Spirited Stockholders-Important Meeting Yesterday-Nearly $700,000 Subscribed to Restore the Institution-Great Rejoicing Throughout the Town. It is safe to say that the happiest city in New Jersey yesterday, or, to be more correct, last night, was New Brunswick, which, for a month past-but more especially since the beginning of the financial trouble throughout the country-has been in a leverish state over the old State Bank of that place. Several weeks ago, as duly recorded in the HERALD, the officers or the bank were discovered to be in a very disconsolate state, and the statement was made that, through the mismanagement of the officers, there was a defalcation of over $200,000, but as the bank had a handsome surplus fund and the Board of Directors aggregated over $10,000,000 in their own personal fortunes, no fears were entertained that any serious trouble would ensue. The cashier, Greenleaf R. Appleton, was suspended and the books given in charge of an expert named J. U. Underhill, from New York. Appleton, it was said, had been very intimate with Mr. R. N. Woodward, President of the New Brunswick Carpet Company, and hence the latter was allowed to overdraw his account. Several officers of the carpet company were also officers of the bank, and these, it was alleged, had been dovetailing matters between the two institutions so as to let the carpet company have the best showing. Business went on at the bank for several weeks. until finally it had to suspend. Meanwhile the most earnest individual efforts were made to save it from going into the hands of a receiver. The State was a creditor to the amount or nearly $9,000, and last Friday Governor Parker and Chancellor Runyon visited New Brunswick to inquire into the matter. Up to yesterday THINGS LOOKED VERY BLUE for the bank, but before night had fairly set in the blue cloud had lifted and the prospect was that the morrow would see brighter and more cheerrui skies. Yesterday a meeting of directors and other stockholders was held. It opened proceedings about eleven o'clock, and it was nearly six before it closed. Mr. Joseph Fisher, Sr., was chosen to preside, and Mr. G. D. McCoy acted as Secretary. The first business in order was the reading of THE EXPERT'S REPORT, which showed that the "available assets" of the bank were $380,947; the "other debits," including "overdrafts, irregular" ($621,002) and "cash short, or represented by carpet company vouchers," $1,403,552; the audited liabilities," $723,929; "other credits. $1,403,552, and "items not audited," $552,982. In his report the expert made some explanations which reflected severely on the directors for not looking properly into the affairs of the bank, examining the assets of the cashier, &c. Others besides directors were to blame also. After a desultory discussion, in which Messrs. Adrain, J. R. Ford, Abram Voornees, S. c. Bailard, Provost, Onderdonk, Anton and others participated, and in which some pretty severe things were said respecting the manipulating of the books and the lukewarmness of directors and others to cause the arrest of Appleton. the meeting settled down to the real, work, the raising of a fund to place the old institution on its legs again. A good many changed their offers as they saw their neighbors bowels of compassion expand, and, at last, the correct list of SUBSCRIBERS TO THE FUND was found to be as follows:-

16. October 2, 1873 New-York Tribune New York, NY
Article from New-York Tribune, October 2, 1873

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New-York Daily Tribune. FOUNDED BY HORACE GREELEY. THURSDAY, OCTOBER 2, 1873. Large numbers of Carlists are surrendering to the Republican troops. A revolution is anticipated in Panama. A revolution has been suppressed in Peru. The President of Costa Rica is accused of having aided the filibustering expedition against Honduras. The Democratic State Convention at Utica admitted the Tammany Hall delegation from this city, made ex-Gov. Seymour Permanent Chairman, and adjourned till to-day without adopting a platform or selecting a ticket. The excluded Apollo Hall delegation adopted a protest charging that they were rejected through trickery in the temporary organization. Ralph Waldo Emerson delivered an address at the dedication of a new library building in Concord. Dispatches from all quarters indicate a decided improvement in the financial situation. Cashier J. A. Stephen of the St. Louis Mutual Life Insurance Company is mysteriously missing, together with $6,500 in currency. Attorney-General Williams is anxious about the political muddle in Mississippi. Although a banking firm and a dry goods house suspended temporarily, there was a marked improvement in feeling in financial and commercial circles. Foreign exchange is easier, money is flowing back into the savings banks, breadstuffs are moving toward Europe, and the pressure upon the national and State banks has been removed. The deficit in the New-Brunswick State Bank has been made up by a subscription of nearly $700,000. A nolle prosequi is to be entered for Rodman, who is to be used as a witness against Sprague in the Brooklyn Treasury fraud trial. The Grand Jury is taking evidence against Sheriff Williams. McLaughlin's salary was retained on account of the back interest claim. The Aldermen and Supervisors are to be made to show cause why the repavement estimates should not appear in the budget. An unrestricted school system was advocated at a mass meeting. District-Attorney Britton stated that a person not previously suspected was implicated by the recent disclosures of Mrs. Meyers. Commissioner Van Nort presented his annual report, in which a retrenchment of expenses was shown. A woman was burned to death at a fire in Henry-st. The 12th Regiment Armory was damaged by fire about $10,000. Liberal Republican primaries were held. The annual meetings of the American Bible Union were held; the Universalist Sunday-school Association's Institute opened; the Rev. Newinan Hall lectured on "The Reasonableness of Prayer." Gold-111⅛, 110½, 210⅛. Thermometer-53°, 62°, 57°.

17. October 2, 1873 New-York Tribune New York, NY
Article from New-York Tribune, October 2, 1873

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THE NEW-BRUNSWICK STATE BANK SOLVENT. THE DEFICIT MADE UP BY A SUBSCRIPTION OF NEARLY $700,000. The citizens of New-Brunswick were jubilant, last evening, over the redemption of the State bank by the subscription of nearly $700,000 by the President, directors, and friends of the institution, with the guarantee of $50,000 more to-day, or enough to- absolve the bank's entire indebtedness and restore the original capital. A few days since the bank was almost given up as ruined. and proceed ings which had been begun before Chancellor Runyon for the appointment of the receivers were only deferred to await the result of yesterday's meeting of the stockholders. It was found to be impossible to save the bank on the proposition of John R. Ford and Christopher Meyer-to give $100,000 each, provided the directors make up $100,000 more, and after adding this amount to the bank's total assets and meeting all liabilities, assess the stockholders 100 per cent - as the stock was in many cases inherited, and in others the property of widows and orphans. who would lose everything if the bank failed. By to-day if nothing was done the receivers would have possession, and the importance of immediate action was recognized. About seventy-five of the stockholders, including the President and directors, met in the bank at 10:30 yesterday morning, when a statement, dated Sept. 25, was presented as the result of Mr. Underhill's (the expert) examination of the bank's accounts. Mr. Underhill explained the items in detail, and said about $100,000 worth of Government bonds in special deposit had been misappropriated by the cashier, which in some instances had been credited to depositors, in others not. The cashier had negotiated special deposits with Henry Clews of New-York for loans, and his method had been to get bills discounted in New-York, and the money thus obtained credited to his account as cashier, he giving certified checks for the amounts. Some of the paper thus discounted, he added, had been discounted by the bank and held for payment, some sent to the bank for collection, and some manufactured by the cashier. The operations were concealed by false entries on the books either by Appleton personally or by the bookkeepers at his request. Mr. Underhill stated, in conclusion, that he discovered sufficient evidences of fraud to warrant Appleton's arrest the day he began the investigation. Some of the other employés of the bank, who had been implicated in altering figures, had been useful in detecting false entries. The matter of Appleton's escape was explained by Messrs. Meyer & Auten. It appears that Mr. A. V. Schenck, the bank's attorney, had been requested to secure warrants for both Appleton and Woodworth's arrest. and a requisition for the arrest of Woodworth, then in NewYork, was applied for, and the local police were instructed not to allow Appleton to leave the city. It was feared that Woodworth would escape if Appleton was arrested first. It was also thought that it would be best for the bank's future prospects to secure some of the stolen property before making any arrests. Mr. John R. Ford, in explanation of his position as President, a position which he had been pressed to assume by the Directors, said that he went abroad to save the health of his family, and denied sending the dispatch to sustain the bank at all hazards, but instructed his son to do what was right toward saving the institution. The question of subscribing $800,000 toward paying the indebtedness of the bank and restoring the original capital of $25,000 was then proposed, the subscribers to take the banks' debts and liabilities, and, after the stock was made good at par value. the balance to be divided among the subscribers pro rata. At halfpast five yesterday afternoon $695,750 was pledged as 10.000 follows:

18. October 3, 1873 Elizabeth Daily Monitor Elizabeth, NJ
Article from Elizabeth Daily Monitor, October 3, 1873

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NEW JERSEY NOTES. A man apparently a German was found with his skull fractured last evening on the line of the Morris and Essex railroad, near South Orange. He was suffering terribly, and was unable to speak. On his person was a letter directed to Henry Brown. He was taken to the hospital, where the physician says he cannot live. The police will investigate. Henry Hagedon, one of the most widely known Germans in Paterson, committed suicide by hanging on Wednesday evening. In consequence of the inability of certain railroad companies to pay for stock ordered, the Danforth Locomotive company, Paterson, will discharge two hundred men this week. Chancellor Runyon has appointed Henry Palmer, of New Brunswick, Elias A. Miller, of Newark, and Washington B. Williams, of Jersey City, receivers of the State bank of New Brunswick. The application was made by Attorney General Gilchrist on behalf of the State, which has eight thousand dollars deposit d in the bank. In view of the action of the stockholders yesterday, the Chancellor stayed action on the part of the receivers until further notice.

19. November 7, 1873 The Daily State Journal Richmond, Alexandria, VA
Article from The Daily State Journal, November 7, 1873

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BY TELEGRAPH NEW YORK Financial NEW YORK. November 7-Noon.The advance in the rate of discount of the Bank of England has a depressing effect on the market. Stocks have declined, and a feeling of insecurity prevails. Money 7 gold bid. Gold opened at 106 ; sold off at 1061; now 106g. Governments dull and not much doing. States quiet. Death of Laura Keene. NEW YORK, November 7. .-Laura Keene, the celebrated actress, is dead. Marine. NEW YORK, November 7.-Arrived, Gallic, New York, California, City of Merida, Trinicria, South Carolina. Items. NEW YORK, November 7.-The State bank of New Brunswick, New Jersey, has resumed. . The Southside railroad is in the hands of trustees. The hotels complain of exceeding dullness. With one or two exceptions, the hotels run on the European plan have made a reduction of twenty per cent. in the price of rooms. In the case of William A. Britton against General B. F. Butler, to recover the value of two drafts for $15,000, seized by Butler at New Orleans, Judge Woodruff decided for General Butler, holding that the General was justified in making the seizure.

20. November 8, 1873 New Orleans Republican New Orleans, LA
Article from New Orleans Republican, November 8, 1873

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NEW YORK. Resumed. NEW YORK, November 7.-The State Bank of New Brunswick, New Jersey, has resumed. The Southslde Railroad. The Southside railroad is in the hands of trustees. The road's debt is $3,000.000. Dend. Laura Keene, the actress, is dead. Complaints. The hotel proprietors complain of the exceeding duilness. One or two of them on the American plan made a reduction in the price of rooms of twenty per cent on the former prices. Judgment Rendered. In the case of William A. Britten against General B. F. Butler, to recover the value of two drafts for $15,000, seized by Butler at New Orleans, *Judge Woodruff vesterday gave a decision for General Butler, holding that the General was justified in making the seizure. Condition of the New York Banks. The banks have $23,065,000 in legal tenders and $15,000,000 in specie, making a total reserve of $38,065,000, which is $500,000 more than twenty-five per cent on their deposita. During the past six days the banks have gained about $6,000,000 in legal tenders. The Tweed Trial. Three jurors were obtained in the Tweed trial to-day, when the panel was exhausted, and the court adjourned until Monday. Relief for Memphis. In nine police precincts of this city over $4000 were subscribed for the Memphis sufferers on election day. The reports from the other precincts are yet to come in. The police have contributed $2200 for the Memphis police. Sub Treasury Balances. The sub treasury balances show-Gold, $49,267,427: currency $5,342,092. The Union Trust Company. The statement of the receiver of the Union Trust Company shows that the following securities were purchased with the company's funds by the defaulting secretary, Carlton: One thousand shares of Atlantic and Pacific railroad stock; 300 shares of Pacific Mail steamship stock; 2000 shares of the Union Pacific railroad stock: 600 shares of Western Union Telegraph stock; 400 shares of Columbus, Chicago and Indiana Central railroad stock. Amount due depositors. $5,229,185 18; the assets amount to $6,327,369 80; excess of assets over liabilities, $1,098,184 62. In the case of the application of Blake Brothers for a special order of the court protecting them from loss in the sale of the securities they held for money loaned Grinnell & Co., Judge Blatchford to-day decided that no such special order can be granted. Coin. Customs receipts to-day $255,000. The sub-treasurer paid out $265,000 gold on account of interest, and $79,000 for called bends. Indians Committing Depredations. The Mescalero Apaches, from New Mexico, are raiding in Texas and committing murders. The Late Cuban General Ryan. General Ryan, reported shot at Havana, with the other filibusters, was a noted and eecentric character of this city, and had been engaged in several similar undertakings successfully. He was a General in the Cuban army, and was once connected with newspapers here, and some three weeks since was arrested for forfeiting a bail bond, but released just in time to take passage on the steamer. Atlas, with quite a number of Cubans, for Nassau, where they joined the party on the Virginius. Arrested. Donobue, the alleged accomplice of Green in the murder of Graham, a shoemaker of Little Neck, Long Island, has been arreated. Funeral of Clarke. The funeral of the late Louis Gaylord Clarke took place this afternoon at Upper Piermont. The pall bearers were Parke Godwin, Manton Marble, R. H. Stoddard, Erastus Brooks, Hugh J. Hastings and Mr. Brown.

21. April 1, 1877 The Sun New York, NY
Article from The Sun, April 1, 1877

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CLOSING ITS DOORS. The State Bank of New Brunswick, N.J., Censing to do Business. NEW BRUNSWICK, March 31. -The State Bank of New Brunswick, N. J., closed its doors at 10 o'clock to-day. There had been rumors of its unsoundness for some time, and depositors had been withdrawing their money freely for the past few days. Nevertheless, the news of its suspension was a surprise to those not intimately connected with its position, and created somo consternation and much gossip. The bank suffered from the panic of 1873, and in 1875 instituted a suit against the Woodworth Carpet Company. for nearly $1,000,000. Col. Fellowsand Mr. Brooke were the counsel for the carpet manufacturers, and the bank was defeated. A temporary suspension was the result, but the bank again resumed business. and has struggled along till the present difficulty. The President, Mr. Abraham Voorhees, refuses to be seen. and the other officials are either invisible or hopelessly reticent. Mr. Hart Moore, the County Collector. attempted in the morning to draw out the county funds on deposit in the bank. but was unsuccessful. He declin to give the exact amount in possession of the institution. but acknowledges that it exceeds $5,000. One of the officialsdepreentes the publication of anything concerning what he wisties to be considered as a temporary trouble. He says that the bank has money on deposit in New York to an amount sufficient to enable it to resume business on Monday, but he seems to be alone in that opinion. It is understood that, owing to the dulness of the times, notes have been renewed instend of being paid in full. and the business men of the city appear to have little faith in the bank's future prosperity.

22. October 7, 1911 Newark Evening Star and Newark Advertiser Newark, NJ
Article from Newark Evening Star and Newark Advertiser, October 7, 1911

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TON OF $20 BANK NOTES SOLD FOR JUNK TO DEALER Worthless Now, but Got Into Circulation Throughout U. S. and Canada. all Selling nearly a ton of $20 notes to a junk dealer after the State Bank of New Brunswick failed forty years ago has resulted in thousands of these notes, which to all appearances are genuine, being circulated in this city, throughout the country and Canada. At the time they were issued the notes were genuine, but are now worthless. The sale of the notes was made by the receiver of the bank. How the junk dealer disposed of them is not known. That such notes were in circulation was brought to the attention of the police by a Mrs. Shaw, who keeps boarding-house at 123 Academy street. A young man called at her house sev eral days ago and engaged a room. He offered one of these bills, from which a deposit of $1 was to be taken. The money was changed by another boarder. He was unable to cash the bill and sent it to a friend who is employed in a bank in Passaic. From there the bill was sent to President Henry G. Parker, of the National Bank of New Jersey, in New Brunswick. He sent a letter to an employee of the Passaic bank reading in part as follows: "We are returning the bill herewith with the explanation that it has no value, and that the bank which issued it failed nearly forty years ago, and had no successor. No provision was made to meet its circulation outstanding, and in addition to this fact the inclosed bill was not regularly issued by the bank, but subsequently got into circulation through the carelessness of the receiver of the bank, who never destroyed the circulation which he found on hand, but sold it to a junk dealer, and in that way many thousands of these notes got into circulation throughout the United States and Canada, and have caused no end of trouble." Yesterday a man was arrested in New York for attempting to pass one of these notes. The notes were genuine in their time.

23. October 20, 1911 Norwich Bulletin Norwich, CT
Article from Norwich Bulletin, October 20, 1911

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NOTES OF 'A DEFUNCT BANK CIRCULATING The state bank of Brunswick, N. J., failed forty years ago, and its matters have all been settled up; and, yet, the economy of the receiver who settled up the affairs of the defunct bank prompted him to sell nearly a ton of $20 notes to a junk dealer, instead of destroying them, who apparently found a profitable way of disposing of them. The Newark Star calls attention to the fact that the proprietor of a Newark boarding house accepted one, a week ago, and returned nineteen dollars change, and a man was arrested in New York, last Friday, for attempting to pass one. They have been faithfully distributed, and a Boston paper says: "Prob. ably specimens could be found in many a tin bank and serving as stuffing for numerous stocking banks, and very likely the Last Man will have a State Bank of New Brunswick note among his assets."