Savings Bank - Louisville, KY

Bank Information

Episode Type: Suspension → Reopening
Bank Type: savings bank
Start Date: January 15, 1880
Location: Louisville, Kentucky (38.254, -85.759)

Metadata

Model: gpt-5-mini
Short Digest: 6c8afa4d

Response Measures

None

Description

Newspaper reports an embezzlement by cashier Rhoerer leading the bank to be closed to business (Jan 15, 1880). Article describes depositors coming to withdraw but the bank was closed; no explicit prolonged closure, receivership, or reopening reported — I classify as a suspension with likely eventual resumption (temporary closure) rather than proven permanent failure.

Events (1)

1. January 15, 1880 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Defalcation/embezzlement by cashier Rhoerer (losses possibly ~ $100,000) led the bank to close to business and halt withdrawals.
Newspaper Excerpt: The defalcation of Cashier Rhoerer, of the savings bank, creates much excitement in this vicinity. To-day a large number of persons called at the bank, which was closed to business.
Source: newspapers

Newspaper Articles (1)

1. January 21, 1880 The Indiana State Sentinel Indianapolis, IN

Article from The Indiana State Sentinel, January 21, 1880

Click image to open full size in new tab

Article Text

The Busted Savings Bank of LouisvilleDefalcation of the Cashier $100,000. LOUISVILLE, Jan. 15.-The defalcation of Cashier Rhoerer, of the savings bank, creates much excitement in this vicinity. To-day & large number of persons called at the bank, which was closed to business. Many depositors came in the hope of withdrawing their money. but they were told to wait until the condition of the institution is defined. Many who had boxes in the safe deposit vault opened them and found all was right. This department was beyond the reach of any officer of the bank, each*deposition, keeping his own Bey, and it is entirely free from loss, The sayings department of the bank has been kept separate on the books from the regular banking de. partment, bpl both constitute one concern in the loss and are liable each for the other. Joshua F. Speed, Jr., assistant cashier, has had control of the savings side, and on examination his accounts were found to be in perfeet order. The false entries made by Rhoerer to cover the sums taken by him are supposed to be entirely in the books of the regular banking side. The amount of defalcation can not yet be told, even by Rhoerer, but is little, if any, less than $100,000, perhaps more. This is the amount of the capital stock, which is donbtless lost; but it is hoped and believed that the depositors will not suffer. One of Rhoerer's plans for covering his detalcations was to enter smaller sums on the bank's books than the depositors really left. The entries on deposit books were. of course, accurate. There is a great curiosity to know how the cashier lost the money, for it is thought be has lost all. It is known that be went into California Tule lands speculation, losing all be put into it, and that he sunk a great deal of money in Pewee valley property. He also had to pay a number of heavy security debts. If be dabbled in stocks, it was in mining stocks, through his connections formed in San Francisco during the Tule lands fever. The capital stock of the bank is $100,000, which 18 heid as follows in round numbers: J. A. Rhorer,$20,400; W C. Hite, $10,000; J. W. Honing, $11,200. 1. F. Speed, $11,200; w. B. Caldwell, $6,300: J. Lawrence Smith, 86,300; A. Sabine, $3,200: John I Reade, $6,000; Miss E. P. Anderson, $1,500; Miss M. B. Adams, $1,000; Mrs. Breckenridge, 85,000; John H. Ward,2,000, John Caperton, $6000; John Caperton, trustee, 818,700. Total $93,600. The stockholders of the bank are liable only to lose their stock. They can not be held for any thing bey ond that.