Cataract City Bank (Paterson, NJ)

Episode Information

Episode UID
827724090732
Episode Type
Suspension β†’ Closure
Bank Type
state
Bank ID
82772409 hash
Start Date
December 11, 1860
Location
Paterson, New Jersey (40.917, -74.172)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
420e2d7fed955a3e

Response Measures

None

Description

Officials were later imprisoned for conspiracy, indicating bank-specific malfeasance.

Events (2)

1. December 11, 1860 Receivership
Newspaper Excerpt
M. Philip Rafferty has been appointed Receiver of the Cataract City Bank, at Paterson, NewJersey.
Source
newspapers
2. December 11, 1860 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Insolvency tied to conspiratorial conduct by bank officials (president and others later imprisoned).
Newspaper Excerpt
M. Philip Rafferty has been appointed Receiver of the Cataract City Bank, at Paterson, NewJersey.
Source
newspapers

Newspaper Articles (3)

Article from New-York Daily Tribune, December 11, 1860

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Article Text

The offerings at bank for to-morrow are large, the banks are doing all they think prudent to facilitate the payments of their dealers. The receipts of our merchants are much curtailed by the high rates of exchange ruling in various parts of the country, and this throws them upon the city banks for larger assistance. From the South the payments are very unsatisfactory. The open money market is without change from last week. On demand, money is moderately abundant at E@7 β‚± cent. Paper continues to go very slowly at 15@18 P cent for the best double name. Dry Goods signatures appear to be suffering under greater distrust than any other description, and we hear of none passing below 18 P cent. Treasury Notes are very much depressed, and have sold as high as 6 β‚© cent discount for those due next month. Importers are buying them for the payment of duties at 21@3 P cent discount. The domestic exchanges do not improve, except on Philadelphia, which is down to 2@24 P cent. On Baltimore the rate is worse, 3Ε‚@4 P cent. At Chicago the rate is 8@10 P cent, with but little offering merchants can scarcely expect to receive remittances, while exchange stands at these figures. At St. Louis two of the banks are drawing at 1 P cent to their customers. In the open market the rate is 21 P cent. At Milwankee 5 P cent is the nominal price, but no one is willing to sell any amount at that rate. The payment of the Illinois State interest is advertised at the American Exchange Bank on the 1st Monday of January, and for thirty days thereafter. Holders of Illinois and Michigan Canal Bonds," where coupons are exhausted, are required to present the bonds. M. Philip Rafferty has been appointed Receiver of the Cataract City Bank, at Paterson, NewJersey. The circulation of the bank is $80,000, for which there is full security. Messrs. Platner & Smith, the paper-makers of Lee, Massachusetts, have agreed to pay their creditors fifty cents on the dollar, payable in three years, without interest. Mr. Smith will go on with the business. Dispatches from New-Orleans announce further failures among cotton factors, and sight exchanges on NewYork @1 P cent. On Saturday and to-day $250,000 in gold went to New-Orleans, and $100,000 to the West. Mr. Cobb, it is understood, has at last finished his inefficient administration of the Treasury Department, and having brought it to bankruptcy has resigned. A letter from him, in which he comes out squarely for disunion, will soon be published. The following are Messrs. Thompson Brothers' closFnt


Article from The Penn's Grove Record, August 19, 1910

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Article Text

To Pay After Fifty Years. After half a century the creditors of the defunct Cataract City bank of Paterson are to get a portion of the money due them by identifying their claims with John L. Griggs, the present receiver. Mr. Griggshas $3,705.90 to disburse among claimants, this amount coming from money collected by Philip Rafferty, the receiver appointed immediately following the insolvency of the institution, and who died in 1872. The claims total approximately $25,000. When Rafferty died it became necessary to sue his estate. The bank was chartered in 1856 and failed four years later. Its president, Charles Sanford, and two other officials, William P. Sumner and J. M. Beach, were sent to the state prison for conspiracy. Sanford died in prison.


Article from Pierre Weekly Free Press, September 8, 1910

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Article Text

# Walt 50 Years for Payment. Paterson, N. J.β€”After waiting fifty years the creditors of the defunct Cataract City bank are to receive a first dividend on their claims. The receiver, John L. Griggs, has $3,705 to distribute, money obtained through a series of legal battles with the estate of a deceased receiver.