Hancock Bank - Boston, MA

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: January 13, 1838
Location: Boston, Massachusetts (42.358, -71.060)

Metadata

Model: gpt-5-mini
Short Digest: 910f944e

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Full suspension

Other: Associated banks decided to 'wind up' Hancock; essentially a coordinated suspension/closure by other banks accepting bills until paid.

Description

Articles (Jan–Apr 1838) report the Hancock Bank was run upon (Jan 13) amid failure of the Commonwealth Bank and general Boston banking distress; by later reports the associated banks decided to 'wind up' Hancock (reported Jan 1838), indicating permanent closure. OCR date oddities corrected (e.g., Jan'y 32 treated as Jan 1838 report).

Events (3)

1. January 13, 1838 Run

Cause: Local Banks
Cause Details: Run triggered by news of the Commonwealth Bank's failure/inability to pay balances and consequent panic among Boston banks.
Measures: Hancock is endeavoring to obtain assistance from the other banks; other banks decided to sustain Hancock and Fulton so they could 'go on again' (temporary interbank support).
Newspaper Excerpt: There was a good deal of excitement yesterday. The Fulton, Hancock and Commercial banks were run upon.
Source: newspapers

2. January 26, 1838 Suspension

Cause: Voluntary Liquidation
Cause Details: Associated banks (the 'Associated Banks') decided to wind up Hancock (closing it) and to receive its bills at par at their counters until paid; effectively a decision to close the bank.
Newspaper Excerpt: The Associated Banks have concluded to wind up three of the present banks, viz. the Fulton, Hancock and Commercial.
Source: newspapers

3. March 30, 1838 Other

Newspaper Excerpt: The banks to be wound up are the Washington Bank, Hancock Bank, and Oriental Bank; and many more, doubtless, will think it expedient to surrender, and die an honorable death rather than to linger on, and after all, be compelled to give up the ghost, in deep disgrace.
Source: newspapers

Newspaper Articles (3)

1. January 15, 1838 Morning Herald New York, NY

Article from Morning Herald, January 15, 1838

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Article Text

MONEY MARKET. Sunday, Jan. 14--1, P. M. A sensation was produced in Wall street yesterday by accounts received from Boston, of the failure or rather the inability to pay its balances in current bank bills, of one of the government banks in that city, the Commonwealth's Bank, and the consequent run and trouble among the other banks of the same place, almost bordering on panic and revulsion. It.soon became noised abro d in Wall street and great alarm was caused to the holders of all eastern bills, which, in consequence, were crowded upon the points of redemption in Wallstreet in large amounts. A letter received this morning by one of the mest respectable brokers in Wall street, gives the following particulars BOSTON, Jan. 13, 1938. We wrote you yesterday, just as the mail was closing, that the Conamonwealth's Bank had failed -we believe that the other banks would not sustain it. We understand that they owe government $400,000; they have the largest circulation of any bank in Boston as we advised you sometime ago. It is probably in a very bad state. There was a good deal of excitement yesterday. The Fulton, Hancock and Commercial banks were run upon. The Fulton we understand has obtained a loan from the other banks sufficient to take up all their circulation. The Hancock is endeavoring to obtain assistance from the other backs-the Commercial has reduced their circulation very much of late and may get along without assistance. P. S. The other banks have just decided to sustain the Hancock Fulton, &c. so that they all go en again except the Commonwealth. The failure of the Commonwealth Bank is no doubt a very bad one. It was the great "Pet Bank." Its failure can very clearly be traced to the government deposites-which deposites were all leaned to speculators of the party-3 persons, (directors) one of them to nearly the amount of their capital. In addition to these facts, coming from an undoubted source, and therefore reliable, we learn from other quarters, that the consternation and panic caused among the banks in Boston, was increased. by their own statements, developing their own condition, and the probability that the legislature now in session there, would overhaul them with great severity. The Boston and other eastern banks are composed, as with us, of two classes-the class chartered before the present locofoce party got into power at Washington-and that subsequently. The old banks throughout New England and in Boston, are generally conducted on the old principles of prudence -short loans-business paper-the new regime are managed to prop up bubbles in lands, town lots, and other speculations. Nearly half the assets of the Commonwealth Bank are paper on East Boston lots. Two years ago, the legislature of Massachusetts permitted the banks to issue post notes. By the exercise of this power, the new class of banks enlarged their circulation, which could not be contracted when the recent revulsion came. In consequence, there has been great heartburnings and dissatisfaction among the Bosten banks, and particularly since the Bank Convention of this city recommended a curtailment of loans. A large portion of the banks refused to curtail, while the sound basks insisted on such a policy. In this state of things, we learn that the State Bank of Boston put up a notice last week, refusing to receive on deposite or in payments, the notes of seven other banks, including the Commonwealth. The following are the seven and their condition by the last statement :-

2. January 26, 1838 Morning Herald New York, NY

Article from Morning Herald, January 26, 1838

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Article Text

[Fremour Boston Correspondent.) Associa'ed Banks-Th Bosion Banks be hung up to dry-Legisiature's Committee-Pressure and Failures. BOSTON, Jan'y 32, 1838. DEAR Sir:-Since I forwarded you my last letter, the "Associated Banks" have concluded to wind up three of the present banks. viz. the Fulton, Hancock and Commercial. The "associated" and combined wiedom of those who compose this dietatorial body, is wisely developed in their determination not only to knock the aforenamed banks in the head, but to receive their bills at par at their counters until they are all paid in. This circumstance goes to show very clearly, that these associated gentlemen have some regard for public opinion. Had such an exhibition of their precocity becen developed before the Commonwealth and others had stopped, it would have been much more to their credit as weil as to that of the Boston Banks. But no. The downfall of foor banks which were once ameng their number, and who have so recenty been "kicked out of the ring," has thrown upon the once undombted credit of Boston incorporated paper a stain which time cannot erase. At the sale of Bank stock, it was found exceedingly difficult to palm off some of the aforementioned stock, and for some indeed there was no offer of any kind. There were two or three banks which were sold not far from par, while the following were so slighted that no offer of any kind was made-Tre mont, American, Middlesex, State, Market, Hancock, Granite and Oriental Banks. Lest you may think that the above were not sold because they were not wanted. I would state, that the Fulton Bank brought as high as forty-three cents en a dollar. This bank, as you will at once recollect, is one which is speedily destined to go the way of all the earth. A meeting of the officers aud stockholders was held yesterday, and it was then concluded best to add four new directors, and for the purpose of hauling in their horns with as mueh expedition aspossible. Atthismeeting it was stated that there would probably be enough to pay bill-holders and depositors, in full, while the stock-holders will not receive more than fifty per cent. However, time will develope how they come out. It is selling at twenty cents. Our wise legislators have appointed a Committee to look into the affairs of the Coramonwealth, Lafavette, and Franklin Banks. They will soon report. Of the latter Bank, of all corruption, mismangement, carelessness, and, in every respect, censu able con duct, this caps the climax. The truth is, the people cheated, defrauded, and bamboozled by and banking to corrupt have been corrupting corporations. further As the Franklin Bank, I shall not give you any particulars until the Committee report; and I assure you that if the explosion is not loud and terrific enough to open the eyes of the people, then they are wrapt in a slumber that the mutterings of ten thousand thunders would never awake them from. The pressure in the money market 18 on the increase. For this there are several reasons. One or two I will give. 1. The Banks are preparing to resame the payment of specie. 2. The closing of three of the present banks, whose circulation is $800,000 very essentially decreases the amount of bills in the market. There have been some heavy steppages of large capitalists and merchants, which have greatly surprised us. But this is, in my humble opinion. but the beginning of sorrow. Failures almost daily occur. and there is scarcely any business doing. There is a story going the rounds here. that a New York broker had on hand $19.000 of the Commonwealth when the bank suspended. 1 regret that your citizens do, and will, get nipped by our city paper. B The Conservatives will undoubtedly succeed n their ultimate projects, and, in a few years, wield the destinies of this country. They are rather favorable to General Harrison too. One of the principal features of the conservative policy is the element of social life which they are introducing into their political movements with a fascination that is truly admirable. The late soiree at Stuyvesant Place is the beginning of a new era in political movements. I'r PAINE'S birth day will be celebrated next week. Will not somebody get up a celebration of Robespierre's birth day? He was a pure democratand as pure a devil. D A negotiation is now pending between the

3. April 2, 1838 Morning Herald New York, NY

Article from Morning Herald, April 2, 1838

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Article Text

though the bank writer seems to be imprfectly acquainted with grammar. What was the design of the call on the part of the Senate, I have yet to learn, unless it was done to prejudice the minds of Congress against banks. Both houses have been exceedingly dull today. In one house, the Army Appropriation Bill, and in the HORACE. other, the Camberland Road. BOSTON, March 30, 1838. MR. BENNETT-We have little or no news in this region-still less business. Importing and jobbing, and, in fact, business of all kinds, seems to have paused in its operations. The banks are hauling in, and the merchants are obliged to pay the last dollar to cancel their liabilities. The associated banks here are determined to meet the Gothanites face to face; so that, whatever may be the determination on their part, they will agree upon, and act in concert. The managers of our banks have had some important private meetings, and from what can be learned out of doers, they intend to curtail and then resume, whether they have company or notin order, if possible, to re-establish the credit of the Boston banks. The Market Bank has published a statement, which is not very satisfactory to the public. That it is in difficulty, few question; and that it has been seriously run upon, is noterious. However, the report made by interested persons, is worth as much as any fairstory which was ever made by individuals who have property at stake. The banks here have fallen from an eminence which was once indeed a credit to Boston, but from which she will never recover. For instance, the exploded banks: American Bank will pay her bills in full. Commonwealth Bank (president deceased-cashier and some of the directors in pecuniary difficulties,) will pay about 40 per cent. Commercial Bank (president gone to Canada with $19,000 in gold,) will pay her bills probably in full. Their funds are loaned to a few individuals, which, if paid, will be favorable to the stockholders. Franklin Bank (president, cashier and directors, indicted, and are to he tried for mismanagement; president Dunham says he can't read or write so how,) will pay probably 15 cents. Fulton Bank (some of its officers are laboring under the pressure of the times.) will pay from 80 to 90 per cent. Kilby Bank (some of its officers have known what it is to be in hot water-funds of the institution distributed among the directors,) will pay not far from 90 cents. Lafayette Bank (the past and present presidents, with the directors, are indicted for mismanagement, and will have their trial in a few days one of their directors has just had his trial for stealing $10,000 of Lafayette bills, and has been acquitted; the bank has been miserably managed,) will pay possibly, 7 per cent. The banks to be wound up are the Washington Bank, Hancock Bank, and Oriental Bank; and many more, doubtless, will think it expedient to surrender, and die an honorable death rather than to linger on, and after all, be compelled to give up the ghost, in deep disgrace. Many failures have not taken place here within a short period, though in all probability they will occur in afew weeks to an alarming extent. Yet, indeed, the plan of mertgaging property is here all the go! The city clerk, with hisassistants, find but little leisure, while the lawyers are cudgelling their brains in devising howtheir clients can get out of a bad scrape, and not suspend payments. The mortgages of one large house which failed a short time since, covered one hundred and fifty pages. So, thus they contrive and plan. Many respectable houses, who are now in good standing, have get their stocks mortgaged The Misses Grimke are here and lecturing at the Odeon to crowded houses. Great anxiety is manifested to hear them. They are listened to with profound respect and attention. Abolition is making great headway in this State. I assure you, you might as well talk about putting spurs to the lightning, as even to (attempt to drive the thing faster, or to make Abolitionists more rapidly than they are ROW increasing in the East. The C. H. Lord prosper the cause of the just.