7196. Covington Trust Company (Covington, KY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust company
Start Date
October 23, 1854
Location
Covington, Kentucky (39.084, -84.509)

Metadata

Model
gpt-5-mini
Short Digest
6460ba79

Response Measures

None

Description

Newspapers from Oct–Nov 1854 report the Covington Trust Company stopped payment (suspended) during the wider 1854 state-stock bank panic. No explicit separate run on this specific bank is described in the excerpts; subsequent report shows its notes trading at 25 cents on the dollar, indicating failure/closure rather than reopening.

Events (2)

1. October 23, 1854 Suspension
Cause
Local Banks
Cause Details
Part of a regional panic affecting state-stock banks (runs and suspensions in Cincinnati, Louisville, and other local banks), prompting Covington Trust Company to stop payments during the crisis.
Newspaper Excerpt
In addition to the suspensions of Manchester, Sanford, and the Covington Trust Company, who stopped payment yesterday,
Source
newspapers
2. November 2, 1854 Other
Newspaper Excerpt
CHAS. HENKING, our Banker, is paying ... 25 cents on the dollar for Covington Trust Company Bank notes. Notes of the suspended bank notes ... we would advise holders of the suspended bank notes not to sacrifice them, as no doubt very little less can result by holding on to them. (Gallipolis Journal, 1854-11-02)
Source
newspapers

Newspaper Articles (2)

Article from The Evansville Daily Journal, October 24, 1854

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Article Text

They have been having a wild time of it up at Cincinnati. We have already noticed the closing of the doors of Manchester's Bank at Cincinnati, and the anticipated run on other Banks there, which might endanger them. On Thursday, there was a great run, and early in the day the Banking House of P. Outcalt & Co., closed its doors. The Columbian of Friday says: The busy crowd about Third street to-day, have manifested what a strong interest is felt in money matters just now. In addition to the suspensions of Manchester, Sanford, and the Covington Trust Company, who stopped payment yesterday, Messrs. P. Outcalt & Co., found themselves unable to meet the crisis to-day, and they also closed their doors. The Bank of Messrs. Hatch & Langdon, at the corner of Main and Court, Messrs. Ellis & Sturgess, and Messrs. Smead, Collard &: Hughes, experienced a tight run. Hatch & Langdon possess general confidence. Ellis & Sturgess, on two former OCcasions,have experienced similar occurences, and have always proved emselves competent to stand any degree of pressure. Smead & Co., are known as men of business, as a firm of long standing and experience, not immersed in personal frivolous expenses, but emulous above everything of a character for business integrity. The excitement towards these banks seems confined to that class of depositors whose situation, out of the commercial world, leaves them but little data on which to judgo for themselves. The readiness with which their demands were met, seemed to make them inclined to re-deposit what they had just drawn. Outcalt & Co., are gentlemen who enjoy the respect of the community; their business has been much in the real estate way. A house doing such a business has usually a good basis, but the nature of the property that they hold prevents the possibility of realizing large sums at a short notice. There are few men who could meet at a moments warning, every creditor they have, and pay them; yet this is what is expected of our monied men; our readers can judge how justly. Few persons in business, howe er wealthy they may be, have at every moment cash enough in their coffers to meet all their demands; yet this is what is expected of our bankers. Much anxiety exists with respect to the Kanawha Bank, whose issues are not bankable in this city; but its last exhibit present ed a f: ir appearance, and our bankerssay that its notes are good. Dispatches of the 20th say that the run has ceased, and no other failures reported. Our State Stock Banks appear to be kicking up an excitement all over the West.We have already given details of the excitement at Cincinnati and Louisville. The Louisville Journal of Saturday last says: THE CURRENCY.-The notes of the Indiana State Stock Banks are generally refused, though some of the wholesale dry goods houses take them in preference to sixty to ninety days' notes in exchange for goods. Some of the brokers are buying some of them at from 5 to 10 per cent. discount, while others refuse to touch them at any price. They are not considered valueless, but the impossibility of rendering them available for some time to come, and the large amount they already have on hand has forced most of the bankers to pursue this course. The stock bank at Madison and a few others are exceptions. They have funds deposited here for redemption of their notes, and so long as they continue to do so they will be taken at the same rates of discount as the notes of the State Bank of Indiana per cent. discount. The State Auditor at Indianapolis is redeeming the notes of the Bank of Albany. And at St. Louis the brokers are up in arms. The St. Louis News of the 19th says: The brokers, to-day, were throwing out several of the Indiana State Stock Shinplaster conerns. Those announced by telegraph as having failed, were of course not received on any terms. We understand a meeting of the brokers was held this forenoon to determine what would be received and what not. We nad not received the result up to the hour of going to press. Even away up in Chicago our Banks are receiving polite attention. The Chicago Tribune of a late date says: Nearly all of our city banks, and a portion of the brokers yesterday refused to receive the notes of the Indian Stock Security Banks as currency-Capt. Swift, Mr. Rogers. of the State Bank, and one or two others, not coming into the arrangement. What the result of all this is to be, we cannot anticipate with any great degree of certainty We presume the majority of these banks will gradually go into liquidation.— We notice a decline in Indiana State Stock already, as a natural result of a fall market, and an overflowing one being anticipated probably, as the State Stock forming the basis of the circulation of our Stock Banks is gradually offered for sale. Our Evansville Banks have been called upon lately to redeem immense amounts of their money, but they have always been prepared. An agent from Cincinnati was among them last week. He informed us that there were no Banks in the State prompter than ours in redeeming their notes. We consider their money, Canal, Crescent, and N. Y. & Va. State Stock Banks, as


Article from Gallipolis Journal, November 2, 1854

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Article Text

THE BROKEN BANKS.-CHAS. HENKING, our Banker, is paying 50 cents on the dollar for notes on the Bank of Connersville; 20 cents on the dollar for Newport Safety Fund Bank of Kentucky; and 25 cents on the dollar for Covington Trust Company Bank.Notes of the Indiana Stock Banks are taken at par by some of our merchants for Goods. We would advise holders of the suspended bank notes not to sacrifice them, as no doubt very little less can result by holding on to them.